Re: [OPE] market socialism

From: Ian Wright (
Date: Tue Jul 01 2008 - 16:01:16 EDT

> In particular there will be pressure to allow either:
> 1. The enterprises which have large surpluses to lend at interest to other firms,
> 2. An indirect market for labour power in the form of subcontracting. High wealth co-ops
>    would hire low wealth ones to do work for them at unfavourable rates.
> Either of these would result in a dynamic polarisation process leading to the
> formation of a class of rentier co-ops and an exploited class of producer co-ops.

If the rich co-op gets equity-capital in the poor co-op then, yes, that
is exploitation. But if equity-capital is not a legal property form then
we would simply have rich co-ops lending money to poor co-ops.

Is this bad from a socialist point-of-view? (this is a genuine question,
not a rhetorical one).

It seems to me that lending money at interest is not exploitation. The
lender postpones their consumption for a future data, the borrower gets
to consume now, and effective demand is smoothed. A natural rate of
interest on the loan will preserve the lender's spending power through
time. This is an equal exchange.

I understand your concern that some kinds of income inequality will lead
to capital concentration and therefore a monopoly in capital.
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