Let me begin with Wright’s understanding of socialism as social empowerment. Without any discussion of class, the connection between the extension of social control over the economy and socialism remains unclear. Wright says that “social empowerment over the economy means broad-based encompassing economic democracy” and that “’socialism’ is the term for the subordination of economic power to social power.” In my view, whether the subordination of economic to social power leads to “economic democracy” depends heavily on who wields social power and what they try to do with it.
To put the same point a little bit differently, I do not believe that “class power” corresponds in any straightforward way to Wright’s three forms of power: economic, political, and social.
Capitalists and landowners in particular have historically been very effective at using social power. There are numerous examples of firms and agribusinesses cooperating to share technology, to control output and prices, to establish long-term relations with suppliers, to lobby the government to pursue their interests, or to exclude politically undesirable workers.
Therefore, it’s important to emphasize that the relevance of social power for socialism depends on the class that wields that power. Without this sort of specification, there is little reason to think that the extension of social power by itself is likely to lead to socialism or to even move society in the direction of socialism. As such, there is little reason to adopt it as a normative project. In doing so, Wright reproduces one of the main weaknesses of the Tocquevillian tradition: an uncritical embrace of “civil society” without an adequate specification of the way that class power shapes its political valence.
There is an additional problem with Wright’s concept of social empowerment. Associational power is not necessarily an independent source of power, but can be produced and conditioned by economic power. Capitalists can rather easily convert their resources into associational power.
As Wright notes, “the primary way that production in the social economy is financed is through charitable giving.” But a substantial part of charitable giving comes from capitalists, and indeed may serve to reproduce or bolster capitalist class power. Given this, social empowerment as Wright defines it is potentially compatible with the strengthening of capitalist class power.
Despite these problems, Wright’s core idea about socialism is still sound. But it needs greater specificity. The aspect of “social power” that really appears to attract Wright is deliberation. In discussing the concept of Empowered Participatory Governance in
Envisioning, he argues that social empowerment is important because it is a way of
rationalizing decision-making. From this perspective, the extension of social power is not really a value in itself but a means to establishing a
rational society — and I believe that socialism is nothing if not a rational society.
Using Wright’s formulation, then, it is possible to recast socialism as
Iván Szelényi describes it: a system of rational redistribution in which the allocation of the social surplus is legitimated through substantive rationality.
However, whereas Szelényi’s understanding of substantive rationality is embodied in the teleological doctrine of Marxism-Leninism, Wright’s conception is guaranteed by deliberative procedures. Only such procedures can guarantee substantively rational decisions in the sense that they are the product of a dialogue supported by reasons and evidence.
Socialism, therefore, is a system in which the allocation of the social surplus is determined not behind the backs of social actors, but according to agreements based on public discussions governed by the rules of rational critical discourse.
While it preserves the idea of socialism as based on deliberation, this formulation has two main advantages over Wright’s.
First, it makes clear that socialism requires not just an extension of “social power” but also the elimination of class power. Deliberative bodies only really work as designed where there is a fundamental homogeneity among participants so that debate unfolds according to reason, and not as the clash of pre-constituted interests. Socialism as “rational redistribution” can exist only where there is fundamental homogeneity of class interests in deliberative bodies. The extension of social power would mean the extension of deliberation only under these conditions.
Second, this characterization of socialism provides a much clearer foundation for the connection between democracy and socialism than that offered by Wright.It is not that there are two demands rooted in fundamental normative commitments: democracy and socialism. Rather, because decision-making can be rationalized only through a process of deliberation and socialism is a system of rational redistribution, it must necessarily include many deliberative institutions.
Images of Capitalism
Wright’s neglect of class is also evident in his conception of capitalism, particularly his view of its probable trajectory. It might seem surprising to object to Wright’s theory of trajectory since he explicitly denies the existence of one. A close examination of his book, however, reveals strong implicit views about the future development of capitalism as well as the relationship between capitalism and the state.
For Wright, capitalism is a “growth machine.” Capitalists tend to innovate in order to reduce unit costs and increase their profits because they face competitive pressures from other capitalists. If they fail to innovate, their businesses will be eliminated. This is an uncontroversial definition of capitalism, and it is a good summary of capitalism’s recent and not-so-recent history. But importantly, Wright’s position entails a belief in capitalism’s ongoing economic dynamism.
The notion that capitalism will continue to be a highly productive economic system also underlies Wright’s critique of ruptural transformation, or “smashing capitalism.” Among other reasons, Wright rejects ruptural transformation as a political strategy since it cannot avoid damaging the material welfare of the “median person.” Embedded in this claim is the idea that absent a transition to socialism that level of welfare will continue to rise. Wright thinks capitalist economies will continue to generate substantial economic growth into the foreseeable future and that this economic growth will tend to increase the material welfare of the masses.
Wright also has a strong theory of the relationship between states and capitalism. For him, one of the key reasons why Marx’s theory of crisis is wrong is because he underestimated the extent to which states can counteract business cycles.
Furthermore, in his view Marxists and radical anarchists alike have failed to appreciate the
relative autonomy of the state from capitalist class interests. This gives it the capacity to intervene in economic processes and “risk the continual politicization of the capitalist economy.”
As such, “there is unlikely ever to be a stable, sustainable equilibrium in the articulation of capitalist state power and the capitalist economy; the trajectory over time is more likely to involve episodic cycles of regulation/deregulation/reregulation.” Therefore, the state will continue to act in the future as it has in the past, periodically deregulating and then re-regulating capitalist production.
A tendency toward long-term growth and a state that is independent enough from the capitalist class to counteract the business cycle, but also tends to politicize economic issues: this is Wright’s basic vision of the “history of the future of capitalism.”
It is worth asking where this vision comes from. One could argue that this image of capitalism projects a highly specific period of economic history (the long postwar boom from 1945–1975) into the indefinite future. This period, however, was characterized by a highly specific balance of
class forces. The working class was relatively strong in those years, which limited the production of absolute surplus value and dramatically boosted productivity.
Further, one might suggest that the labor’s relative power was another major reason for the emergence of a relatively autonomous state. If these propositions are correct, then we should ask ourselves whether the capitalism of the future is going to resemble the capitalism of the postwar boom years.
One does not have to be a millenarian to doubt whether this is the case (at least in the US and Europe). Over the last thirty years, capitalism’s
basic economic performance has not remotely corresponded with its ideological triumph.
The fossil-fuel infrastructure established in the postwar period has not been fundamentally transformed. The “
new economy” keeps failing to appear. Who now remembers that Japan and northern Italy were supposed to have established a fundamentally new model of economic growth called “flexible specialization”? What is left of the idea that information technologies would open up a new frontier of productivity and prosperity? Where is biotechnology, or the green economy?
Wright’s work suggests one important reason for this distinctively unimpressive economic performance: the disintegration of the working class as a coherent actor. It is worth remembering that for Marx, class formation was never simply a sociological add-on to his basic account of capitalist development. Instead, class formation and class struggle played a key role in his description of the system’s dynamics.
By placing limits on the extension and intensification of the working day, class formation (unionization in particular), in addition to competition, was central to the shift from absolute to relative surplus value and therefore economic growth. If working-class associational power has been decisively weakened in recent decades, one would expect this to have a negative impact on growth and productivity.
Wright’s neglect of class, to summarize, doesn’t just distort his view of socialism — it also blurs his vision of capitalism. For Wright, capitalism is a timeless economic system, not one that has a specific history marked by sharp changes in the relative balance of class forces. Concretely, this means he tends to project the social conditions of the long postwar boom into an indefinite future, without acknowledging their specific historical underpinnings.