Korsch, Karl. What is Socialization

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    What Is Socialization? A Program of Practical Socialism

    Author(s): Karl Korsch, Frankie Denton and Douglas KellnerSource: New German Critique, No. 6 (Autumn, 1975), pp. 60-81Published by: New German CritiqueStable URL: http://www.jstor.org/stable/487654.

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  • 8/10/2019 Korsch, Karl. What is Socialization

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    What s Socialization?

    A

    Program

    f

    Practical

    ocialism*

    by

    Karl

    Korsch

    1. The Goal

    of Socialization

    The socialization

    demanded

    by

    socialism

    ignifies

    new

    regulation

    f

    production

    withthe

    goal

    of

    replacing

    he

    private apitalist

    conomyby

    a

    socialist communal

    economy.

    ts first

    phase

    consists

    f

    the socialization

    (Vergesellschaftung)

    fthe

    means

    of

    production

    nd

    the

    resulting

    mancipa-

    tion

    of

    labor. Its

    second

    phase

    consists f the

    socialization f

    labor.

    2. What is

    Production?

    The task

    of

    socialization s

    concerned

    with

    production.

    n

    this

    context

    "production,"

    however,

    does not

    signify

    he technical

    process

    of the

    manufacture

    f

    goods

    nd the

    relations etween uman

    beings

    nd

    (naturally

    given

    or

    artificially

    roduced)

    material.

    Rather,

    "production"

    ere

    simply

    signifies

    ocial

    relations etween everal

    people

    which

    are connected

    with

    every

    echnical

    production,

    .e.,

    the "social relations f

    production."

    The

    *

    The term

    ocialization

    n

    Korsch's

    ssay

    refers

    o the

    active,

    onscious

    ctivity

    f

    constructing

    socialist

    ociety

    nd

    thus

    efers

    o

    process

    f

    ocialist

    ocialization

    hich an be

    distinguished

    rom

    hat

    process

    f socialization

    n

    bourgeoisociety

    hat has become

    n

    increasingly

    entral

    oncernf ocial cientistshodiscuss ole

    behavior,

    olitical

    ocialization

    and ocializationy he amily,eer roups,chool,massmedia,tc.Korsch'smphasiss on the

    social

    elationsf

    production

    nd

    process

    f

    socializingociety"

    atherhan n

    the

    ocialization

    of

    he ndividualnto

    refabricated

    oles,

    ehavior,

    ttitudes,

    tc.which rediscussed

    y

    ocial

    scientists

    n

    their

    heories

    f

    ocializationnd criticized

    y

    Marxistsn their

    ritiques

    f

    false

    consciousness,

    lienation

    ndreification.hereassocialization"

    n

    bourgeois

    ociety

    erveshe

    function

    f

    tabilizing

    he

    urrent

    ystem

    f

    production

    nd

    thus

    nducing

    he

    ndividualo

    conform

    o

    the

    ystem,

    ocialist

    ocialization,

    n Korsch's

    iew,

    trivesor

    emocratic

    ontrol

    f

    the

    means f

    production

    y

    heworkersho ecide n theirocial se.An

    nteresting

    iscussion

    of

    the

    oncept

    f ocializations used

    by

    Korsch

    s found n

    FelixWeil's

    tudy

    ozialisierung

    published

    n

    Berlin n a

    series dited

    y

    Korsch

    n 1921

    nd reissued

    y

    Underground

    ress

    (Berlin,

    968).

    Weilnotes

    he

    onfusion

    urrounding

    he

    erm

    Sozialisierung"

    nd

    then

    n

    a

    study

    eavily

    nfluenced

    y

    Korsch

    ttempts

    o

    clarify

    he

    concept

    n

    terms f

    the

    task f

    constructinggenuinelyocialistnd thus socialized"ociety.his tudyspublishednKarl

    Korsch,

    chriften

    ur

    Sozialisierung,

    rich

    Gerlach

    d.

    (Europhiische

    erlagsanstalt,

    rankfurt

    am

    Main,

    1969),

    pp.

    15-42.

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  • 8/10/2019 Korsch, Karl. What is Socialization

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    WHAT IS

    SOCIALIZATION?

    61

    object

    of thenew

    regulation

    hrough

    socialization"

    s

    production

    s the um

    total of social relations.

    "In

    the

    process

    f

    production,

    uman

    beings

    work

    not

    onlyupon

    nature,

    but

    also

    upon

    one another.

    They produce

    only by

    working

    ogether

    n

    a

    specified

    manner

    and

    reciprocally

    xchanging

    heir ctivities.

    n order

    to

    produce,

    they

    nter

    nto definite

    onnections

    nd relations

    o

    one

    another,

    and

    only

    within

    hese ocial connections

    nd relations

    oes

    their

    nfluence

    upon

    nature

    perate,

    .e.,

    does

    production

    ake

    place."

    (Marx, Wage-Labour

    and

    Capital).

    The

    structure

    f the

    capitalist

    ociety

    which

    ocialism

    truggles

    gainst

    s

    determinedy

    the

    fact hat

    n

    a

    capitalist

    conomic

    rder

    hesocial

    processes

    of

    production

    re

    essentially

    iewed

    s the

    private

    ffair

    f

    ndividual

    ersons.

    In contrast

    ocialization

    aims

    at

    the creation

    of a socialist

    communal

    economy;

    hat

    s,

    an economic

    rder

    n which

    he ocial

    process

    f

    production

    is considered

    public

    affair

    f

    the

    producing

    nd

    consuming

    whole.

    3.

    What

    are the

    Means

    of Production?

    The

    first

    tep

    toward ocialization

    s

    the elimination

    f

    capitalistprivate

    property

    n

    the

    "means

    of

    production"

    used

    in

    production

    and

    its

    replacement y

    social

    property.The "meansof

    production"

    re all those

    physical

    bjects

    r

    goods

    thatare

    used for

    the

    purpose

    of

    production.

    According

    o

    the

    Erfurt

    rogram

    his

    includes

    above

    all:

    "Land,

    mines

    and

    quarries,

    raw

    materials,

    tools,

    machines

    nd

    means

    of

    transportation."

    ot

    the nner

    haracter

    f an

    object,

    but

    its

    use

    for

    the

    goal

    of

    production

    makes

    it

    a means

    of

    production.

    Generally

    peaking

    he

    entire

    arth

    n its

    naturally iven

    orm nd

    character

    (nature)

    can

    be

    a "means

    of

    production,"

    s

    well

    as all

    alterations

    nd

    improvements

    rought

    bout

    by

    conscious

    uman

    ctivity

    n,

    under

    or

    above

    the

    earth's

    surface

    plants).

    An

    object

    becomes seful or hegoal ofproductionwhen hroughtsuse a

    productive

    chievement

    Leistung)

    s

    brought

    bout.

    Productive

    chieve-

    ments

    an consist

    f

    performances

    r

    services

    hat re

    meant

    o

    directly

    atisfy

    a

    present

    eed;

    e.g.,

    the

    performance

    f a

    virtuoso

    n

    concert,

    taxi

    driver,

    or

    a railroad

    onductor.

    As a

    rule,

    however,

    roductive

    chievement

    onsists

    of

    bringing

    orth

    oods

    that

    erve

    s

    a

    means

    of

    atisfying

    uture

    eeds

    means

    of

    consumption).

    n

    the

    first

    ase

    "means

    of

    production"

    re

    those

    objects

    used

    n

    performances

    r

    services

    a

    grand

    piano,

    a

    taxi,

    a

    locomotive);

    n

    the

    second

    case

    they

    re

    objects

    used

    to

    produce

    consumer

    oods

    raw

    materials,

    machines, tc.). Directly r indirectly,very roductivechievementerves

    consumption.

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  • 8/10/2019 Korsch, Karl. What is Socialization

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    WHAT

    S SOCIALIZATION?

    63

    relations f

    production,

    ot

    the

    designation

    fcertain

    material

    ypes

    f

    means

    ofproduction. Capital" doesnotonly onsist f theproducts fpreviously

    performed

    abor

    "produced

    means

    of

    production," plants"),

    s

    in the

    usual

    designation

    f theword

    by

    bourgeois

    conomy

    which t

    contrasts

    o

    land,

    to

    thatwhich

    s

    originally iven.

    Land

    ("nature")

    tself

    an

    also

    be

    capital.

    Both

    "means

    of

    production"

    an become

    capital

    when

    they

    provide

    he material

    basis

    for

    production

    resting

    on unfree

    wage

    labor

    within

    an

    existing

    framework

    f

    private

    roperty.

    f

    that

    ncomewhich he

    capitalist

    wner

    f

    the means

    of

    production

    xtracts

    rom he social

    production

    hat

    has taken

    place

    with

    hismeans

    of

    production

    ut without

    is own abor

    s

    designated

    s

    his revenue Rente), any income attainedby the capitalistwithout abor

    belongs

    to

    this

    revenue,

    s well

    as

    the

    so-called

    and-rent

    Bodenrente).

    A

    capitalist

    s thusnot

    only

    he

    possessor

    f the

    production

    lant

    erected

    n

    the

    land

    fromwhich

    he obtains

    his

    "capital

    revenue"

    n

    the

    narrow

    ense,

    but

    he

    is

    also

    the

    private

    wner f

    the and

    on

    which

    he

    production

    lant

    stands s

    the

    one who

    ppropriates

    orhimself

    part

    ofthe

    profits

    f

    production

    nder

    the

    name of

    "ground

    rent"

    Grundrente).

    s

    social relations f

    production,

    "ground

    rent"

    nd

    "capital

    revenue n the narrow

    ense"

    are

    equivalent

    o

    "capital

    revenue."

    5. The CapitalistSocial Order

    When the ocial

    relation

    f

    production

    wage-labor"

    ecomes

    he

    universal

    foundation

    f

    ocial

    production

    n a

    society,

    hen

    very

    means

    of

    production

    that

    s

    privately

    wned

    becomes

    capital.

    All

    members

    f such

    a

    social

    order

    are

    divided

    nto

    two

    lasses:

    on

    the one

    side,

    the

    capitalists

    who

    exploit

    nd

    control

    roduction,

    nd the

    exploited

    proletarian

    wage-slaves

    n the

    other.

    Not

    only

    hedirect

    managers

    nd

    beneficiaries

    f social

    production

    elong

    o

    the

    apitalist

    lass,

    but

    n

    a more

    general

    ense,

    veryone

    ho,

    by

    controlling

    and

    profiting

    rom

    ocial

    production,

    irectly

    r

    indirectly

    as

    any

    share

    whatsoever hichrepresentsecompense ot earned romproductiveabor

    which

    e

    himself erformed

    n the

    production

    rocess.

    t makesno

    difference

    whether

    e obtains

    n

    income

    n

    addition o

    thatwhich

    partially

    ests n

    his

    own

    productive

    abor

    the

    so-called

    employer's

    rofit"),

    nd

    which

    he could

    also

    obtain

    without

    eing

    the

    private

    wner

    fthe means

    of

    production

    the

    collector

    f

    ground

    rent

    and other

    capital

    revenue).

    While

    it was

    normal

    n

    earlier

    tages

    of

    development

    f the

    "capitalist"

    social

    order

    for a

    single

    person

    to

    be both

    the

    manager

    and

    beneficiary

    f

    social

    production

    t

    once,

    today

    hese

    functions

    re

    normally arcelled

    out

    among everal ersons

    r

    groups

    f

    persons,

    ll of whom

    participate

    more

    or

    less

    directly

    n

    controlling

    nd

    profiting

    rom

    roduction.

    We have

    already

    become

    acquainted

    above

    with

    the case

    wherethe

    capitalist

    wner

    of

    land

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  • 8/10/2019 Korsch, Karl. What is Socialization

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    64 NEW GERMAN

    CRITIQUE

    shareswith he

    apitalist

    wner

    f the

    production lant

    n the

    exploitation

    f

    productionhattakesplace in theplant.Two othertypical ases ofsucha

    division f the

    capitalist

    unction re

    first,

    he

    case in which he real

    owners

    do

    not themselves

    anage production

    ut

    permit

    omeone lse to

    manage

    t

    for

    heir enefit.

    or

    example,

    s shareholders

    hey

    et the

    board of

    directors

    manage

    the

    ompany's

    ffairs.

    ven

    more

    widespread

    s

    another

    ase

    which s

    relevanthere: a

    production lant

    that

    works

    with

    credit.

    n

    this

    type

    of

    business

    s

    well,

    everal

    ersons

    articipate

    s

    "capitalists":

    irst,

    he

    o-called

    legal

    "owner" f the

    business;

    nd

    secondly,

    he

    provider

    f

    credit.

    Together

    both share

    n the

    control

    nd benefits

    exploitation)

    f

    the

    production

    n

    question.The

    replacement

    f

    private

    roperty

    n themeans of

    production

    hrough

    social

    property,

    he

    socializing

    f the

    means of

    production,

    s

    equivalent

    o

    the iberation f

    abor from

    lien

    capitalist

    omination

    nd

    exploitation,

    o

    which

    t is

    subordinated

    n

    the

    capitalist conomy

    during

    the

    processes

    f

    production.

    he

    socializing

    f

    the

    means

    of

    production

    s

    thus

    quivalent

    o

    eliminating

    he

    opposition

    etween

    apital

    and

    wage-labor

    hat

    dominates

    the

    present

    apitalist

    conomic

    order,

    as well

    as

    eliminating

    ocial

    class

    divisions,

    lass

    dominationand the

    class

    struggle

    hat

    arise from

    the

    opposition

    between

    apital

    and

    labor.

    6.

    Economic

    and Political

    Power,

    Private

    nd

    Public Law

    The

    demand

    for

    ocializing

    he

    meansof

    production

    nd the

    iberation f

    productive

    abor

    is the

    demand for

    the

    transformation

    f a

    historically

    emergent

    orm

    f

    the

    ocialrelations f

    production,

    property,"

    nto

    nother,

    only

    now

    emerging

    orm.

    Capitalist

    private

    property,

    s it

    appears

    in

    the

    opposition

    etween

    apital

    and

    wage-labor,

    s

    not an

    eternally

    alid

    form

    f

    social

    production

    but

    rather a

    temporary

    ne,

    valid

    only

    for

    a

    certain

    temporally

    ast

    period.

    The powerof the capitalistprivate property wnerto controlsocial

    production

    and to

    appropriate

    ts

    profits

    ppears

    as an

    economically

    grounded

    ower,

    n

    contrast o

    politically rounded

    ower

    elations,

    .e.,

    the

    right

    f

    the state to

    govern

    nd

    tax

    individual

    itizens.As

    we

    showed

    n

    section

    2,

    both

    forms f

    power

    are,

    however,

    t

    the same

    time

    social

    relationships

    f

    person

    o

    person.

    These

    are in

    their

    origin

    and

    continued

    existence

    ependent

    n

    the

    ocial

    principles

    hich

    erpetuate

    nd

    support

    t;

    especially

    n

    the

    recognition,

    nd if

    need

    be

    coercion

    y

    the

    aws

    of

    the

    tate.

    "The

    owner fan

    object

    an..,

    do with

    he

    object

    whatever

    e wants

    nd can

    excludeothersrom ny nterference.(?903 of theGermanCivilCodebook)

    (Deutsche

    Bi

    rgerliches

    esetzbuch).

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    WHAT

    IS

    SOCIALIZATION?

    65

    This

    equivalence

    etween

    conomic nd

    political

    ower

    has

    become

    obscured

    by

    the

    present

    ivision f theentire

    aw

    into

    public

    and

    private

    aw

    which s

    peculiar

    to the

    egal

    system

    marked

    by

    capitalist

    rivateproperty.

    "Publicum us

    est,

    quod

    ad

    statum

    ei

    Romanae

    spectat,

    privatum,

    uod

    ad

    singulorum

    tilitatem."

    Ulpian

    1

    ?

    2 De

    usto

    t

    ure,p.

    2)

    ("Public

    aw

    s

    directedowardhe

    well-being

    f he

    ntire

    olitical ommunity;

    rivate

    aw

    serves o

    benefit

    ingle

    ndividuals.")

    The treatmentfhuman elations

    n

    economic

    ife

    s the

    phere

    f

    private

    law could

    never

    nd nowhere e

    completely

    arried ut because

    tate nd

    society

    ould

    havefallen

    sunder s a result. he

    right

    fthe

    wner

    f the

    means f

    production

    todo with

    is

    hings

    hatevere

    wants" as

    onstantlyandeverywhereimitedypublicaw:by aws nd njunctions

    romulgated

    in the nterest

    f

    he

    ommon

    ood.

    Similarly

    hematerial

    nfreedom

    fthe

    propertyless

    age-laborer

    hich

    redominates

    uring

    he

    ocial

    processes

    f

    production

    nd derives

    rom

    he

    merely

    ormal

    freedom"

    f

    the

    workers'

    right

    f

    possession

    nd

    disposal

    ver

    is

    abor

    power

    was,

    n

    fact,

    lleviated

    everywherehrough andatory

    imitationsf

    wage

    contract

    reedom

    nd

    throughegal publicprotection

    f

    workers

    n

    some

    form r

    another.

    7.

    Socializationnd

    Social

    Policy

    From he reviousresentationtappears ofollowhat hererebasically

    twodifferent

    ays

    f

    "socializing

    he

    means f

    production,"

    f

    eliminating

    capitalistrivate

    roperty

    f

    he

    means

    f

    production.

    ne

    could ocialize

    y

    taking

    he

    means f

    productionway

    from

    he

    urisdiction

    f

    individual

    capitalists

    expropriation)

    nd

    by

    placing

    hem

    nder he

    urisdiction

    f

    public

    unctionaries

    nationalization,

    ommunalizationnd other

    ormshat

    we hall

    iscuss

    ater).

    Andone

    could

    ocialize

    y nternally

    ransforming

    he

    content

    f

    privateroperty

    f he

    means f

    production

    ithout

    xpropriating

    itsowners. ne would

    progressively

    reat

    roduction,

    hich

    ccording

    o

    privateaw,previouslyelonged o theprivate ropertyf thecapitalist

    owner s an affair f

    public

    aw,

    the

    regulation

    fwhich o

    longer

    epends

    exclusively

    n the

    private

    wner

    y

    virtue

    f

    his

    private

    ight

    ut nstead

    depends

    s

    well

    n

    public

    egal

    organs:

    ederationsfworkers

    rganized y

    professions

    nd

    territory,

    ederationsf

    mployers

    nd

    united

    ssociationsf

    workersnd

    employers

    labor

    partnerships,

    abor

    parliaments).

    The

    chief

    epresentative

    f this

    econd

    orm

    f "socialization"

    oday

    s

    EduardBernstein.

    ccording

    o

    him,

    the

    basic ssue

    f

    ocialization

    s

    that

    we

    place production,

    conomic

    ife,

    under

    he

    control

    f

    the

    public

    weal

    (Allgemeinheit)."n his iewocializationancome boutf the ubliceizes

    more and

    more

    control f

    economic

    ife with the

    help

    of

    laws and

    ordinances."

    nd

    he

    proclaims

    oday,

    s he didmore han

    wentyears

    go,

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  • 8/10/2019 Korsch, Karl. What is Socialization

    8/23

    66

    NEW GERMAN

    CRITIQUE

    that

    a

    good

    factory

    aw can containmore ocialism

    han the

    nationalization

    of several hundredbusinesses nd enterprises."

    Bernstein's

    osition

    maintains,

    n

    the

    formulation

    hich

    ppears

    here,

    he

    complete quation

    of "social

    policy"

    and "socialization."

    Through

    gradual

    limitations

    n

    the

    privileges

    Befugnisse)

    f

    private roperty

    wners

    y

    means

    of social

    policy,private

    property

    s

    supposed

    to be

    transformednd

    slowly

    develop

    nto

    public

    property.

    n

    reality,

    owever,

    ocial

    policy--which,

    n

    its

    very

    oncept presupposes apitalist

    privateproperty

    nd

    wants

    to

    merely

    settle

    schlichten)

    he

    conflict etween he

    ndividual

    ights

    f

    the

    capitalists

    and

    the

    claims

    of the

    public by

    arbitration-can never

    hange

    nto

    a

    true

    socialization

    without break nd radical

    change

    n

    direction. he

    important

    element for true

    socialization

    which Bernstein's

    onception

    nevertheless

    contains,

    part

    from

    his

    acceptance

    of

    capitalist

    modes of

    thought,

    will

    be

    discussed

    n the

    following

    ections.

    n

    the

    meantime his

    point

    must

    be

    emphasized:

    there

    an be no

    socialization

    f

    the

    means

    of

    production

    without

    either

    ll at

    once or

    gradually

    liminating

    ompletely

    he

    private

    property

    owner from he

    social

    process

    of

    production

    8.

    Socialization

    nd

    the

    Distribution f

    Property:

    Half-measures"

    From this

    negative

    ondition

    f

    anygenuine

    socialization he

    following

    emerges:

    no"socialization f themeansof

    production"

    uta mere

    hange

    of

    private

    roperty

    wners

    akes

    lace

    in

    all

    those

    rocedures

    hich

    nly

    present

    a

    more

    equitable

    distributionf

    private

    property.

    he

    transfer f

    property

    from

    singleperson

    o

    a

    so-called

    judicial

    person"

    f

    private

    aw

    must

    be

    included

    here;

    for

    xample,

    hetransferf a

    privately

    wned

    business o the

    common

    property

    of a

    corporation.

    Such

    procedures

    are no

    more

    socialization

    han

    ome

    imple

    projects

    f

    division

    ccasionally

    haracterized

    as

    "socialization"

    y

    the

    badly

    nformed

    pponents

    f

    socialism;

    for

    xample

    thedivision

    f

    arge

    states

    f

    and into

    mall

    ettlements

    ornumerous

    ingle

    owners.This kind of

    thing

    willnot, however, e consideredhere.

    The demandfor

    complete

    limination f

    the

    private

    roperty

    wner

    rom

    the

    process

    f

    production

    eveals he

    nadequacy

    f all

    such

    measures,

    which

    amount to

    a

    power

    and

    profit haring

    between he

    non-working

    roperty

    owners n

    the

    one

    hand,

    and the

    non-possessing

    orkers

    n

    the

    other.To

    such measures

    belong:

    1.

    Kautsky's

    roposal

    that

    "land,

    insofar s it is

    being

    utilized

    by

    large

    industrial

    lants,

    hould

    mmediately

    e

    nationalized,"

    ut

    that

    "the

    plants

    that

    exist n

    or

    upon

    it,"

    which

    have

    leased land

    from he

    State,

    should

    be

    allowedto continue s "private perations."' Othermeasures nclude:

    1.

    See

    Karl

    Kautsky,

    Richtlinien

    far

    ein

    sozialistisches

    ktionsprogramm

    Berlin,

    1919).

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  • 8/10/2019 Korsch, Karl. What is Socialization

    9/23

    WHAT S

    SOCIALIZATION?

    67

    2.

    All

    the

    projects

    f

    "profit-sharing"romoted

    ime

    and

    again,

    with

    or

    without uccess,during he last hundredyearsbywell-meaningapitalists

    who

    proposed

    paying

    a

    part

    of

    the total business

    profits

    o

    their

    wage

    laborers.

    3.

    The

    recently

    roposedparticipation

    often

    falsely

    abelled

    "industrial

    democracy")

    f

    the workers' nd

    employees'

    epresentatives,

    lected

    by

    the

    plant

    members

    or

    he

    ndividual

    lant

    labor

    commissions,

    actory

    ouncils,

    employee

    ommittees),

    n thecontrol nd

    administration

    f

    the

    plants,

    which

    are

    basically

    till eft

    to

    the

    capitalist

    owner.

    From

    the

    point

    of viewof

    socialism ll these half-measures"

    just

    as

    the

    Bernstein

    plan--can

    be seen as

    partial paymentsAbschlagszahlungen)

    t

    best.

    n

    lessfavorable ases

    they

    re

    directly

    pposed

    to the

    true nterestsf

    the

    working

    lass

    moving

    owards

    mancipation.

    his

    holds rue

    specially

    or

    most

    of

    the

    projects

    f

    so-called

    "profit-sharing."

    9.

    The Task

    of

    Socialization

    By

    demanding

    hat

    he

    private roperty

    wnerbe

    "completely

    liminated

    from the

    sphere

    of

    production"

    one does

    indeed secure

    the distinction

    between

    mere

    social

    policy"

    nd

    genuine

    socialization"

    cf.

    section

    ).

    One

    also

    avoids

    confusing

    ocialization

    with

    a

    simple

    distribution f

    private

    property

    ndwith ll sorts f half-measures"

    cf.

    section

    ).

    But

    beyond

    his,

    the

    demand

    n

    no

    way

    more

    precisely

    etermines

    he

    actual

    content

    f

    the

    task

    of socialization.

    Even after

    the

    complete

    elimination

    f the

    capitalist private property

    owner,

    he same

    means

    of

    production

    an

    only

    be

    used

    for

    production

    t

    a

    given

    ime

    by

    a determinate

    umber

    f

    producing

    workers as

    every

    means

    f

    consumption

    an,

    in

    the same

    way,

    be

    consumed

    or

    used

    only

    by

    a

    determinate

    umber

    of

    people

    at

    the

    moment

    when t

    fulfillsts

    purpose.

    The

    "socializing

    f

    the

    means

    of

    production,"

    which ocialism

    demands,

    cannotand doesnot wishto alter thisactual fact. In a socialist ommunal

    economy

    ne must

    lso decide which

    people

    may

    and should

    use the

    existing

    means

    of

    production

    for

    production,

    under

    what

    working

    conditions

    production

    hould

    proceed,

    and

    in

    which

    way

    the

    products

    f

    production

    should

    be

    distributed

    mong

    the

    totality

    f

    the

    producers

    nd consumers.

    n

    the socialist

    communal-economy

    oo

    there

    s a

    regulation

    of

    the social

    relations

    f

    production,

    n

    order

    f

    property.

    he establishment

    f

    this

    rder

    is

    the task

    of socialization.

    Depending

    on how a

    completed

    ocialization

    lan performs

    histask and

    how the above questions re decided, it will eithercreate a more or less

    complete

    ommunity

    roperty

    n

    a true ommunal

    conomy,

    r

    it

    will

    ndeed

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  • 8/10/2019 Korsch, Karl. What is Socialization

    10/23

    68

    NEW

    GERMAN

    CRITIQUE

    eliminate

    rivate

    roperty,

    ut

    only

    o

    replace

    it with ome

    kind of

    special

    propertySondereigentum).

    10.

    The Conflict

    f Interests etween

    Producers

    nd

    Consumers

    The

    greatest

    anger

    hat

    hetask

    of

    creating

    rue

    ommunityroperty

    ill

    nonetheless

    meet

    with

    failure

    n

    carrying

    ut

    a

    plan

    of socialization

    tems

    from he

    fact

    that

    even after

    he elimination

    f

    capitalistprivateproperty

    from

    roduction,

    wo

    opposing

    nterest

    roups

    will remain

    n

    the economic

    life

    f

    a

    human

    community:

    n

    the

    one

    hand

    the nterests

    f

    the

    producing

    workers

    f

    ach

    individual

    ranch

    f

    production,

    n

    the

    other,

    he

    nterests

    f

    thetotalityf theremaining roducersnd consumers.n short, he conflict

    of

    interests etween

    producers

    nd

    consumers.

    When the

    interests

    f

    either

    he consumers

    r

    the

    producers

    re

    given

    priority

    n

    the

    regulation

    f the social

    relations

    f

    production,

    nstead

    of a

    true

    "socializing"

    "Vergesellschaftung')

    f

    the means

    of

    production,

    he

    formerlyxisting

    rivate

    apitalism

    s

    merely eing

    exchanged

    for

    a

    new

    capitalism

    hrough lleged

    "socialization."

    his new

    capitalism, epending

    on

    circumstances,

    an be

    designated

    s

    a

    consumer-capitalism

    national,

    local

    or consumer

    ooperative apitalism)

    r

    as

    a

    producer-capitalism.

    nly

    by avoiding

    both

    dangers,through qual

    and

    just

    consideration f

    the

    interests

    f

    producers

    nd

    consumers

    like does true

    community roperty

    develop

    n

    the

    process

    f

    socialization,

    ather

    han

    special

    property

    f

    one

    class.

    Those

    forms

    of

    socialization

    which

    come closest

    to

    the

    danger

    of

    a

    consumer-capitalism

    re

    socialization

    by

    means

    of

    nationalization,

    communalization

    nd

    the

    affiliation

    f

    production

    plants

    with consumer

    associations.

    he

    danger

    of

    producer-capitalism

    n theother

    hand,

    arises

    n

    an

    attempt

    to socialize

    in the

    directionof the

    Workmen's

    Cooperative

    Production

    ociety

    movement

    nd modem

    syndication"the

    mines to

    the

    miners,"

    therailroads o the

    railway

    workers,"

    tc.).

    The

    goal

    of socializa-

    tion

    n

    the

    spirit

    f

    socialism,

    however,

    s

    neither

    onsumer-capitalism

    or

    producer-capitalism,

    ut rather rue

    community

    roperty

    or

    he

    totality

    f

    producers

    nd consumers.

    11.

    The

    Claims

    of

    Producers

    nd Consumers

    n

    the

    Regulation

    f theSocial

    Relations

    of Production

    The

    division

    f claims

    raised

    n

    the

    regulation

    f

    the social

    relations

    f

    production

    n

    the

    name

    of

    producers

    r consumers

    esults

    rom

    breaking

    down of

    capitalist

    private property-which

    ocialization s doing away

    with--into

    ts individual

    privileges.

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  • 8/10/2019 Korsch, Karl. What is Socialization

    11/23

    WHAT IS

    SOCIALIZATION?

    69

    "Private

    ownership

    f

    the

    means

    of

    production"

    s

    domination n the

    currentapitalist conomic rder ontains wo lements,s indicated bove:

    a)

    a

    right

    o

    the

    entire

    yield

    of

    the

    production

    arried

    out

    by

    using

    these

    means

    of

    production,

    ess ll the

    xpenditures

    or

    aw

    materials,

    wages,

    axes,

    etc.

    according

    o

    Marx

    right,

    surped

    y

    the

    capitalist,

    o

    the

    "surplus

    value"

    continually

    roducedby

    the

    unfree

    abor

    of

    wage-laborers);

    b)

    a

    right

    o the ontrol

    f

    he

    production

    rocess,

    imited

    nly ygeneral

    public

    aw,

    especially

    o-called

    ocial

    egislation.

    In

    contrast,

    he

    demand

    to abolish

    rivate

    wnership

    f

    the

    means

    f

    production,"

    nd to "socialize he meansof

    production"

    aisedfrom he

    standpointf theproducingaborer ikewiseignifieswo hings:

    a)

    a

    right

    o

    the

    yield

    f abor

    for he

    worker;

    b)

    workers'

    articipation

    n

    the control f

    the

    production rocess

    corresponding

    o the

    ignificance

    f abor

    for he

    productionrocess.

    The

    same

    demand,however,

    rom he

    standpoint

    f the

    consumer

    signifies:

    a)

    distributionf

    the

    yield

    f

    the

    entire ocial

    production

    mong

    he

    totality

    f

    the

    consumers;

    b)

    a

    transfer

    f he

    ontrollingights

    f

    he

    apitalist rivate

    wner

    o the

    organs

    f

    this

    otality.

    12. The

    Two Basic

    Forms

    f

    Socialization

    As a

    result

    f

    hese

    erspectives

    different

    ttitude

    ppears

    n

    the

    part

    f

    the

    producers

    nd

    on the

    part

    f

    he

    onsumers

    oward

    he

    various

    otential

    forms

    f

    "socialization."

    n

    thefirst

    ype,

    atisfaction

    or heclaims f

    the

    producing

    aborers

    s

    granted

    nly

    ndirectly

    hile

    the

    claims

    of the

    consumers,

    n

    contrast,

    re

    directly

    atisfied.

    n the

    second

    type

    of

    socialization

    he

    pposite

    s

    the

    ase,

    representing

    irect

    ocializing

    een rom

    the

    tandpoint

    f

    the

    producing

    aborers,

    ut

    only

    n indirect

    ocializing

    viewed romhe tandpointf thewhole fthe consumers.

    a)

    Socialization,

    s nationalization

    r ommunalization

    f

    plants,

    s

    well

    s

    in

    the

    ffiliation

    f

    production

    lants

    with onsumer

    ooperatives,

    s ndirect

    from

    he

    tandpoint

    f

    he

    producing

    aborers,

    irect

    rom

    he

    tandpoint

    f

    the

    otality

    f

    consumers.

    n none

    of

    these hree

    asesdoes

    the

    producing

    laborer

    mmediately

    chieve

    ny

    share

    n

    the

    control

    nd benefits

    f

    production,

    utrather

    emainss

    before

    wage

    aborer.

    his

    s

    due

    to the

    replacement

    f

    he

    apitalistrivate

    wner ith

    unctionaries

    f

    he

    tate,

    he

    community

    r

    the consumer

    ooperative.

    Ifthiswerehe xtentf hematter,ocommunityropertyf he otality

    would

    n

    reality

    e created

    hrough

    his

    lleged

    ocialization,

    ut

    rather

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  • 8/10/2019 Korsch, Karl. What is Socialization

    12/23

    70

    NEW

    GERMAN

    CRITIQUE

    special

    property

    f theconsumer lass.

    Private-capitalism

    ould be

    replaced

    byconsumer-capitalism.his isespeciallyruefornationalization,s well as

    for the other

    two aforementioned

    orms f socialization.

    The

    true

    relationship

    may

    be

    seen in

    the two

    terms

    requently

    sed as

    synonyms:

    ocialization and

    nationalization.We have

    already

    observed

    above:

    not

    every

    ocialization akes

    place

    in

    theform f

    nationalization. nd

    we observed here: mere

    nationalization lone

    and of itself

    cannot be

    recognized

    s

    socialist

    socialization

    sozialistische

    ergesellschaftung

    (Sozialisierung)].

    b)

    The form f ocialization

    hich

    s

    direct rom

    he

    tandpoint

    f

    aborers,

    and ndirectrom he tandpointf he otalityfconsumers,onsistsfthe

    transferf

    ownership

    f all

    means f

    production

    f

    a

    plant

    a

    branch f

    industry)

    o the

    laboring

    articipants

    n

    that

    plant

    (branch

    ndustry

    participants).

    hrough

    his

    ransfer,

    he

    aboring

    articipants

    n

    production

    achieve

    omplete

    ontrol ver

    heentire

    rocess

    f

    production

    nd over ts

    yield.

    rue

    community

    roperty

    an,

    of

    ourse,

    o

    more e

    created

    hrough

    this

    rocess

    lone,

    han

    hrough

    heform f

    ocialization

    iscussed

    nder

    )

    above. nstead

    he

    apitalism

    f

    he

    private

    apitalist

    ould

    nly

    e

    replaced

    by

    producer-capitalism,special

    wnership

    f

    ertain

    roups

    f

    producers.

    13. The NeedforBothBasicForms f Socializationo

    Complement

    ach

    Other

    The common haracteristicfthe wo

    iffering

    ypes

    f

    "socialization"s

    the

    following:

    ocializationf either

    ype

    lways

    liminates

    he

    private

    capitalist,

    ho

    previouslyretended

    o

    represent:

    a)

    the

    workers

    gainst

    he nterestsf the

    consumers;

    b)

    the

    onsumers

    gainst

    he

    nterestsfthe

    workerss

    producers;

    ut

    n

    actualitynly

    ssured

    imselfocial

    power

    nd

    a

    laborlessncome

    rom he

    profits

    f

    ocial

    roductiony urtailing

    he hare

    f he

    aboring

    orkerss

    wellas of the

    totality

    fconsumers.

    nly

    through

    heabolition f this

    superfluous

    ink, owever,

    oes he

    necessary

    nd

    natural

    onflictf

    nterests

    between

    roducers

    nd

    consumers,

    aborer nd

    beneficiariesake

    actual

    effect. his

    conflictf

    nterestsas to be settled

    y

    each

    of these

    orms

    f

    "socialization"

    f

    community

    roperty

    nd

    not

    merely

    pecial roperty

    f

    a

    single

    lass s

    to be

    created.

    This ettlementakes

    different

    orm

    n

    the

    nationalized,

    ommunalized

    plants

    ffiliated ith

    onsumer

    ssociations

    n the

    one

    hand,

    and

    in

    the

    plants

    ocialized

    y

    means f

    Workmen's

    ooperatives

    nd

    syndicates

    n

    the

    other.The endresultn bothcases mustbe thesame,however,f true

    socializing

    s to

    develop.

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  • 8/10/2019 Korsch, Karl. What is Socialization

    13/23

    WHAT IS

    SOCIALIZATION?

    71

    a)

    The

    same

    is true

    in

    regard

    to

    the

    distribution f the

    profits

    of

    production.tseems hat here re twovery ifferentuestions:how muchof

    the total

    yield

    of

    a

    plant

    a

    branchof

    ndustry),

    aken over

    by

    the laborers

    participating

    n

    the

    plant

    by

    meansof

    Workmen's

    ooperatives

    r

    syndicates,

    are

    the

    producers

    equired

    o deliver o the

    state,

    ommune

    r other

    rgan

    of

    the

    totality,

    nd how

    high

    should be the

    wages

    in

    a

    state,

    communal or

    consumer-cooperativeroduction lant?

    n

    reality

    oth

    questions

    im

    at

    the

    universallyecessary

    olution

    f one

    single

    problem:

    which

    percentage

    f the

    total

    yield

    should

    go

    to the

    producers

    s

    such,

    which

    percentage

    o the

    totality?

    b) And it is likewisewithregardto the distributionf control ver the

    production

    process.

    The

    control of

    social

    production

    s

    composed

    of

    a

    number

    of different

    ecision-making

    rocesses.

    Among

    these are:

    1)

    the

    decision s

    to what

    nd how much

    should

    be

    produced,

    hat

    s,

    which

    xact

    quantity

    f

    goods

    or

    services

    hould be delivered o

    the

    consumers

    y

    the

    branch

    of

    production

    n

    question;

    2)

    the

    decision bout

    the

    way

    n which

    production

    houldbe

    carried

    on,

    that

    s,

    the selection

    f

    material nd

    work

    processes

    nd human tools

    of

    abor;

    and

    finally

    )

    the

    establishment

    f the

    conditions

    under

    which these human tools of labor should

    be

    working

    (temperature,tmosphere,anitary egulations,

    uration

    and

    intensity

    f

    labor,

    wages

    and other

    considerations).

    n a

    purely

    private capitalist

    economy,

    ll

    thesedecisions

    re made

    by

    the

    private

    wner f

    the means of

    production

    as

    he

    pleases."Up

    to

    now

    the

    aboring

    lass could

    only

    ndirectly

    through

    political

    struggle

    and

    through

    the

    actual

    labor-struggle,

    .e.,

    through

    mplementation

    f

    legal

    decisions

    and collective

    abor-contracts

    (tariff-contracts),

    xercise

    certain

    nfluence n the

    content

    f

    the

    working

    conditions

    3

    above)

    and

    perhaps

    on the selection

    f the

    work

    processes

    2

    above)

    insofar s

    these ffect

    he

    working

    onditions.Outside

    the

    plant,

    as

    citizen

    nd member

    f the trade

    union,

    the worker tood

    on

    equal

    footing

    withthe

    employer;

    n the

    plant,

    thelatterwas master nd theworkerhis

    slave.

    Only

    after he

    Voluntary

    erviceLaw

    (Hilfsdienstgesetz)

    f 1916

    did

    that

    development

    egin

    which,

    now

    progressing

    t

    a

    faster

    ace

    since

    the

    November

    evolution,

    alled

    into

    existence

    within he

    plants

    elected abor

    representatives,

    abor

    commissions

    ("Arbeiterausschfisse")

    nd

    factory

    councils

    ("Betriebsrate"),

    with codecision

    rights

    Mitbestimmungsrechte)

    guaranteed

    by

    public

    law.

    Clearly,

    form f "socialization"

    with he

    goal

    of

    creating

    rue

    ommunity

    property

    ould not transfer

    he diverse

    rivileges,

    xercised

    n

    purely rivate

    capitalist conomy ya privatendividual, ntirelyo thepublicfunctionaries

    authorized

    by

    the

    totality

    f

    consumers

    state,

    community,

    tc.);

    the

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  • 8/10/2019 Korsch, Karl. What is Socialization

    14/23

    72

    NEW

    GERMAN

    CRITIQUE

    workers ho are

    first nd

    foremost

    ngaged

    n

    production

    would remain n

    theirfunction

    s

    workers

    nfree.

    Nor could

    it reserve

    ll

    these

    decision-

    making

    ights

    olely

    orthe

    producing

    aborers f a

    plant

    a

    branch of in-

    dustry),

    f

    the

    totality

    f consumers

    re

    not to

    be

    placed

    at the

    mercy

    f

    the

    workers

    f

    the

    ndividual

    lant

    the

    ndividual

    ranch

    f

    ndustry).

    Whatever

    means

    are

    employed

    o

    draw the

    boundary

    between

    he

    rights

    f the

    pro-

    ducers

    nd

    the

    totality

    f

    consumers,

    t is certain

    hat

    n

    the

    end it mustbe

    drawn

    uniformly

    n

    the two

    fundamentally

    ifferent

    orms

    f

    socialization,

    f

    ever a

    just

    settlement

    f the

    conflicting

    nterests,

    nd

    consequently

    true

    socializing

    f the

    means of

    production

    s to be achieved.

    14. Their Ability o Complement ach Other

    If

    it

    is

    possible

    o

    mutually

    reate

    true common

    property

    n all

    available

    means

    of

    production

    or

    he

    totality

    f

    producers

    nd consumers

    hrough

    n

    adequate

    settlement

    f the conflict

    f

    interests

    ith

    both basic

    forms

    f

    socialization

    nationalization,

    ommunalization

    n the one

    hand,

    and

    Workmen's

    ooperative

    roduction

    ocieties

    nd

    syndicalism

    n the

    other),

    then

    hese

    asic

    forms

    ave both

    roven

    o

    be

    appropriate

    oints

    f

    departure

    for

    socialist

    ommunal

    conomy

    Gemeinwirtschaft).

    hus

    both

    ways

    ould

    be

    adopted

    side

    by

    side

    with

    no offense

    o

    the socialist

    dea.

    a) It followsn particular hat all the arguments suallyraised by the

    professed

    dherents

    f nationalization

    gainst

    he

    socialization

    dvocated

    by

    the

    Workmen's

    ooperative

    roduction

    ocieties

    and syndicates)

    est

    n

    false

    assumptions.

    obody

    would

    onsider

    ividing

    he

    profits,

    hich

    re

    gained

    n

    a

    plant

    by

    using

    means

    of

    production

    elonging

    o

    the

    totality,

    xclusively

    among

    he

    plant's

    workers.

    nstead,

    t

    would

    be natural

    o

    designate

    portion

    of

    this

    profit

    or more

    general

    purposes.

    And

    while

    a

    mathematical

    al-

    culation

    of the

    absolute

    ize

    of this

    portion

    annot

    be

    made,

    it

    may

    be

    said

    of

    ts

    relative

    ize,

    that

    he

    portion

    f the total

    profits

    f

    a

    plant

    a

    branch

    of

    industry)o be specified orgeneralpurposes

    ould

    be

    larger,

    he

    arger

    he

    total

    worth

    land

    and

    building

    worth)

    n the

    plant

    in

    thebranch

    of

    ndustry)

    of the

    means

    of

    production

    sed

    n

    production

    s

    in relation

    o

    the number

    f

    workers

    mployed.

    n

    this

    way,

    the

    possibility

    ould

    be

    avoided

    that

    the

    workersf

    a

    single lant

    a

    branch

    f

    ndustry)

    hemselves

    ecome

    capitalists,

    exploiters

    f

    alienated

    abor,

    through

    he

    collection

    f

    and rent

    nd

    capital

    revenue.

    b)

    The

    opposite

    may

    qually

    be

    shown o

    be

    true,

    hat

    n

    the

    correct

    ppli-

    cation

    of

    nationalization

    communalization,

    tc.)

    those

    arguments

    re

    unfounded,

    hich re directed

    pecifically

    gainst

    his

    ype

    f ocialization

    y

    implacable

    pponents

    fthe

    ystem

    f

    wage

    abor.

    Wage

    labor snot n itself

    incompatible

    with

    ocialist

    ommunal

    conomy,

    ut rather

    s an

    element

    f

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  • 8/10/2019 Korsch, Karl. What is Socialization

    15/23

    WHAT IS

    SOCIALIZATION?

    73

    the

    opposition

    capital

    and

    wage

    labor";

    this s

    the case

    where

    apitalism,

    specialownership

    fthe

    means

    of

    production,

    xists nd

    can exploit hewage

    laborers

    who

    are excluded from

    uch

    ownership.

    Where no more

    special

    ownership,

    o more

    apitalist xploitation

    xists,

    he

    payment

    f

    wages

    s

    only

    a technical

    orm f

    distributionf the

    profits

    f

    production

    esignated

    or

    he

    producers.

    t

    is

    only

    a

    technical

    difference,

    whether n

    a

    Workmen's

    Cooperative

    roduction

    ociety

    lant,

    after

    etting

    side

    a

    considerable

    um

    to

    be

    paid

    out to the

    state,

    the

    community,

    nd

    miscellaneous

    public

    purposes,

    the remainder of the

    profits

    s

    divided

    among

    the

    plant

    participants,

    r

    whether,

    n

    a

    pure

    state

    plant,

    the

    aborers

    re

    paid

    a

    corre-

    spondingly igherwage.

    Moreover,

    histechnical

    orm f

    wage payment

    s

    not even

    necessarily

    nd

    inextricably

    ound to the socializationformof

    nationalization

    communalization,

    tc.).

    In

    the borderline

    ase,

    in

    which

    a

    pure

    state

    plant--exactly

    s

    many

    a

    capitalistplant

    has

    already

    done in

    private

    conomy--pays

    ts

    workers

    portion

    f the

    profit

    made

    by

    the

    plant

    in the

    form f

    "profit-sharing"

    n

    addition

    to the fixed

    workingwage,

    this

    technical

    differencelso

    disappears

    and,

    as far as

    the distribution f the

    production

    rofits

    s

    concerned,

    he two basic forms

    f

    socialization

    ollapse

    into

    one.

    c)

    It

    would be

    equally

    false, if,

    fromthe

    standpoint

    f

    the

    producing

    laborers, ne wanted o

    give

    preference

    o the ocialization orm

    epresented

    by

    the

    Workmen's

    Cooperative

    Production ocietiesor

    syndicates

    ecause

    they

    uarantee

    he

    worker

    more

    nfluential

    hare

    n the control f

    produc-

    tion

    han

    does

    nationalization.

    or,

    after

    ll,

    sucha

    preference

    f one

    form f

    socialization

    ver he other

    xists

    nly

    o

    long

    as

    the

    state

    plant,

    community

    plant,

    etc.,

    clings

    o

    theundemocratic

    orm f

    plant

    organization eveloped

    by

    private

    apitalism,

    which xcludes

    he worker rom

    ny

    codetermination

    whatsoever ithin

    he

    plant.

    Inherently,

    owever,

    t need

    by

    no means

    do

    this.

    The

    private

    apitalist

    as,

    as

    we

    saw

    n

    section

    3b

    above,

    already

    been

    forcedbythe atestdevelopmentsf our "social legislation," heVoluntary

    Service

    aw

    (Hilfsdienstgesetz)

    f

    1916 and the

    revolutionary

    evelopment

    f

    1918-19

    to

    accept

    a certain

    public-legally

    uaranteed

    participation

    f

    the

    "labor commissions"

    "factory

    ouncils"),

    lected

    by

    the

    plant

    members,

    n

    the

    administration

    f

    the

    plants.

    How much more

    capable

    and available for

    such

    organizational

    evelopment

    s

    the

    no

    longer

    capitalist,

    but

    already

    socialized

    plant,

    that

    is,

    the

    state

    plant,

    community

    lant,

    or

    consumer

    cooperative

    plantl

    A

    decisive nfluence

    n

    the establishment

    f

    working

    conditions,

    ooperation

    n

    thedeterminationf the

    work

    rocesses

    o be used

    and at least an advisorynd observationalkenntnisnehmend)hare n the

    remaining

    matters f

    plant management

    an

    immediately

    e

    granted

    o the

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  • 8/10/2019 Korsch, Karl. What is Socialization

    16/23

    74

    NEW GERMAN

    CRITIQUE

    elected

    representatives

    f theworkers

    nd

    employees

    f the

    plant

    n

    the

    state

    plant,communitylant,or consumer ooperative roduction lantas well.

    In

    other

    words: a

    division f control verthe

    process

    f

    production

    which

    s

    fair

    o

    the

    nterestsf both the

    producers

    nd

    consumers

    an be

    achieved

    s

    easily

    n

    the

    course

    f

    nationalization

    communalization,tc.)

    as

    in

    thecourse

    of

    syndicalization.

    15.

    The Settlement f the Conflictof

    Interests etween

    Producers and

    Consumers

    The most

    mportant

    esult

    f the

    foregoing resentation

    s the

    following:

    neither

    he

    transfer

    fthe

    means

    of

    production

    rom he

    private ower phereofthe

    capitalist

    ntothe

    power phere

    ofthe

    public

    organs

    of the

    totality

    (nationalization,

    ommunalization,

    tc.)

    nor the

    transfer f the

    means

    of

    production

    ut ofthe

    possession

    f

    private

    wners

    nto

    he ommon

    possession

    of all

    parties

    concerned

    in

    production

    (socialization

    by

    Workmen's

    Cooperative

    Production ocieties r

    syndicates)

    epresents

    n

    itself

    lone

    a

    replacement

    of

    capitalist

    special property

    by

    true socialist

    community

    property.

    ather,

    n

    addition o these

    measures,

    nternal

    ransformationf

    the

    concept

    of

    property

    s

    needed,

    a

    total

    subordination f

    every

    pecial

    property

    o the

    viewpoint

    f

    the

    ommon

    nterest

    f

    the

    otality.

    ere

    the dea

    promoted

    by

    Bernsteinreceivesdue credit: he

    emphasized

    the

    lasting

    significance

    f

    all those measures

    (so-called

    "social

    legislation")

    which

    attempted

    o lessen

    the

    generally

    amaging

    ffects f

    the

    capitalistprivate

    economy

    n

    the

    existing apitalist

    ociety.

    hese measures

    emain,

    s

    we now

    see,

    necessary

    or

    he

    completion

    f

    socialization ven

    when

    private

    apitalist

    property

    s

    totally

    liminated nd

    replaced by

    a social

    special

    property,

    whether his

    be the

    special

    property

    f

    the

    functionaries

    f the

    totality

    f

    consumers r

    the

    pecial

    property

    f

    partnership

    f

    producers.

    Vis-d-vis

    his

    type

    f

    special

    property

    s

    well,

    t

    remains

    necessary

    o

    provide

    or

    distri-

    bution of theprofitsfproductionn whichtheinterestsf all sections f

    society

    re

    ustly

    onsidered,

    nd

    in

    general

    to

    place production,

    conomic

    life,

    nder

    he

    ontrol

    f

    the

    general

    public."

    Only

    n

    this

    way

    s the

    develop-

    ment

    of

    social

    production

    elations arried

    urtherrom

    private

    wnership"

    by

    ndividual

    ersons

    hrough

    special

    ownership"

    y

    individual

    ections

    f

    society

    o

    "community

    wnership" y

    the

    entire

    ociety.

    16.

    The

    Socializing

    f

    the

    Means of

    Production

    s

    "Industrial

    Autonomy"

    Thus

    "socialization,"

    socializing"

    f

    the means of

    production

    onsists f

    two complementaryransformationsf the private capitalistmode of

    production

    to

    create

    true

    community

    property.

    First,

    the means of

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  • 8/10/2019 Korsch, Karl. What is Socialization

    17/23

    WHAT

    IS

    SOCIALIZATION?

    75

    production

    re transferredut of

    the

    power

    sphere

    of

    individual

    private

    owners

    nto

    the

    power phere

    f

    some ort

    f

    social functionaries

    nd

    second,

    there s

    a

    public legal

    limitation f the

    power privileges

    f the

    present

    directors

    f

    social

    production

    n the interest f the

    totality.

    Through

    the

    simultaneous

    ompletion

    f both

    of

    these

    transformations,

    neither that

    which one

    today commonly

    means

    by

    nationalization

    (communalization,

    tc.)

    emerges-which

    n

    reality

    s

    merely

    tate-capitalism

    (or

    anotherform

    of

    consumer-capitalism)

    nor that

    which one

    nowadays

    calls

    Workmen's

    ooperative

    roduction

    ociety

    ocialization

    r

    syndicalism,

    and

    which

    n

    reality

    s

    only

    producer-capitalism.

    nstead,

    a

    new

    and more

    complete

    orm f

    socializing

    hemeans

    of

    production evelops,

    whichwillbe

    designated

    here as "industrial

    utonomy."

    17.

    What

    is

    "Industrial

    Autonomy"?

    Industrial

    utonomy

    xists

    when n

    every

    ndustry

    "industry"

    s used here

    in

    the

    broad

    sense

    f

    any

    planned

    conomic

    ctivity

    ncluding griculture)

    he

    representatives

    f

    theworkers

    articipating

    n

    production

    tep

    n as

    executives

    controlling

    he

    production rocess,

    n

    place

    of the

    previous

    rivate

    wner

    r

    his

    appointed

    manager.

    At the ame

    time he

    imitations

    lready

    orced

    pon

    capitalist

    private

    ownership

    f the means

    of

    production

    by

    state

    "social

    policy"

    re furthereveloped obecomean effectiveublicpropertyfthe

    whole

    Obereigentum

    er

    Gesamtheit).

    t is

    of no

    inherent

    onsequence

    for

    the

    development

    f ndustrial

    utonomy

    whethert

    s

    envisioned

    s

    nationali-

    zation

    communalization,

    tc.)

    with

    ubsequent

    imitation

    for

    he benefit

    f

    those

    irectly

    articipating

    n

    production)

    fthe

    rights

    fcontrol

    iven

    ublic

    functionaries

    f

    the whole

    community

    r,

    vice

    versa,

    as the transfer

    f

    the

    means

    of

    production

    f an

    industry

    o the

    possession

    f its

    memberswith

    subsequent egal

    limitation

    f the thus

    created

    separate

    ownership

    f

    the

    partnership

    f

    producers

    in

    the

    interest

    f

    the

    consumers).

    18.

    The Realization

    of Industrial

    Autonomy

    The

    carrying

    ut

    of

    the

    socialization f

    a

    branch

    of

    ndustry

    n

    the

    form f

    "industrial

    utonomy"

    willturn ut

    differently

    ccording

    o

    the

    needs of the

    individual

    ase. It

    is

    possible

    to

    accomplish

    he socialization

    f

    individual

    plants

    n

    the

    form f

    "participatory

    rganization"

    Veranstaltlichung)

    thus

    designated

    y

    SchAiffle)

    ,

    the

    success

    f which ven within

    capitalist

    ocial

    order

    may

    be seen

    in

    the

    classic

    example

    offered

    by

    the

    "Carl

    Zeiss

    Foundation"

    lready

    n

    existence

    or everal ecades

    n

    Jena.

    For

    the

    present

    2.

    Albert

    Schaffle,

    Die

    Quintessenz

    es

    Sozialismus

    Gotha:

    F.A.

    Perthes).

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  • 8/10/2019 Korsch, Karl. What is Socialization

    18/23

    76

    NEW

    GERMAN

    CRITIQUE

    situation here s

    greater

    ignificance

    n the

    possibility

    hatentire

    ndustries,

    which re asyetnotripefor entralizednationalization,"ndperhapsnever

    will

    be,

    can

    immediately

    e

    socialized

    by way

    of

    industrial

    utonomy

    nd

    transferred

    nto he

    community

    roperty

    f

    ociety.

    n

    an

    industry

    ocialized

    in

    this manner

    autonomymay

    exist in

    several

    forms:

    1)

    the

    syndicate

    comprised

    f all

    plants

    f the branch

    of

    industry

    n

    question

    may

    possess

    n

    autonomy

    is-a-vis

    he

    nationalcentral

    government

    hich s

    limited

    nly

    by

    necessary

    onsideration or

    he nterest

    f

    consumers;

    )

    the

    ndividual

    lant

    may possess

    limited

    utonomy

    is-d-vis

    he

    syndicate

    which

    comprises

    he

    plants

    and

    partially

    etermines

    heir

    dministration

    y

    central

    means;

    3)

    within he administrativeodiesof the yndicate1) as wellas the ndividual

    plants

    2)

    the

    various

    evels

    f other

    roducers

    the

    employees

    nd workersn

    the narrow

    ense)

    may possess

    limited

    utonomous

    phere

    of

    rights part

    from

    he

    superior

    management,

    right

    o

    independent

    egulation

    f

    those

    matters

    f

    special

    concernto them.

    The manner n

    which he

    nterestsf the

    totality

    f

    consumers

    manage

    to

    prevail

    vis-a-vis

    hese

    "autonomous"

    ndustries

    will

    likewise

    be

    different

    according

    o the

    needsof

    the ndividual

    ase. Here the

    communal

    conomic

    goal

    is

    cooperation

    mong

    the

    consumer

    rganizations

    state,

    community,

    consumer associations

    and

    specially founded administrativeunions

    [Zweckverblinde])

    n

    a

    public

    assessment

    f

    demand,

    which

    s

    binding

    or

    he

    syndicates

    nd the

    ndividual

    lants,

    nd

    which

    replaces

    he

    production

    or

    the market

    n

    an

    exchange economy

    with

    pure

    production

    ccording

    to

    demand. To the

    extent

    hat uch

    pure

    demand

    production

    annot

    as

    yet

    be

    realized,

    the

    present

    exchange

    economy

    among

    individual

    persons

    is

    temporarily

    eplaced

    by

    an

    exchange conomy

    mong

    the

    different

    ranches

    of

    ndustry.

    n

    this

    phase,

    therefore,

    he

    ndividual

    ranches f

    ndustry

    o

    not

    produce

    xclusively

    ccording

    o

    demandbut

    still

    n

    part

    for

    he

    market

    (one

    may

    think

    here of

    the

    export

    business

    specially).

    Therefore

    he

    case

    might

    ome

    up,

    inwhich ne

    plant

    realized

    disproportionately

    ighprofits,

    while

    another

    could

    not even

    obtain

    the

    necessary

    profits

    or

    minima1l

    payment

    f

    tsworkers.

    nsofar

    s

    this ase

    concerns

    ifferent

    lants

    of

    one

    and the

    same

    syndicated

    ranchof

    industry,

    he loss

    suffered

    y

    one

    plant

    must

    naturally

    be

    made

    up

    from

    the

    surplus

    of

    the

    other;

    technically

    defective

    lants

    are

    closed down

    by

    the

    syndicate.

    Apart

    from

    his,

    every

    autonomous

    lant,

    and

    likewise

    very

    utonomous

    yndicate,

    must set

    the

    prices

    f ts

    products

    ufficiently

    igh,

    o that

    the

    total

    yield

    f

    the

    plant

    all

    the

    plants

    ncluded

    n the

    syndicate)

    uarantees

    ll

    working

    articipants

    n

    production continuous,dequatemeansofsupport. hat the pecial

    group

    of

    producers,

    which

    makes

    up

    the

    individual

    utonomous

    factory

    r

    the

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  • 8/10/2019 Korsch, Karl. What is Socialization

    19/23

    WHAT

    IS

    SOCIALIZATION?

    77

    autonomous

    yndicate,

    might vercharge

    he

    community

    f

    consumerss

    to

    be

    avoided

    by

    means of

    the egallyguaranteedpublic participation f the

    consumer

    rganizations

    n

    determining

    rices.

    A

    further orm f

    consumer

    participation

    n

    the

    management

    f

    production,

    which

    imits

    he

    autonomy

    of the

    groups

    f

    producers, rows

    ut of the

    principle mphasized

    n

    section

    14b: the

    two-part

    ivision

    f

    the

    total

    profits

    f

    every

    lant

    every

    ranch

    of

    industry)

    uch that

    only

    one

    part

    is available

    for

    the

    laboringproduction

    participants

    hile

    the

    other,

    n the form

    f

    taxation,

    or

    xample,

    s drawn

    upon

    for the

    general

    purposes

    f

    the

    community

    f consumers. here the

    principle

    was also

    stated,

    according

    o

    which

    the fixation

    f

    these

    portions

    takes

    place:

    after

    ssessing

    he absolute mount

    of the

    expenditure equiredto

    satisfy eneral

    consumer

    purposes,

    the

    coverage

    of thesecostswill be

    divided

    mong

    the ndividual ranches

    f

    industry

    the

    individual

    lants)

    n

    accordance with the basic

    principle

    that

    every

    branch

    of

    industry

    every

    plant)

    must ontribute

    roportionately

    ore

    from ts

    profits,

    he

    greater

    he

    total

    value

    resource

    nd labor

    value)

    of

    the

    utilizedmeans

    of

    production

    s

    in

    relation o the

    number fworkers

    mployed.

    nly

    hat

    part

    of

    the

    profits

    f a

    branch

    of

    industry

    or

    plant)

    still

    remaining

    s

    available

    for

    the

    special

    purposes

    f the

    partnership

    f

    producers

    e.g.,

    for

    reation

    f

    reserves,

    lant

    improvements

    nd

    expansion,

    workers'

    pay

    and

    pensions,

    among

    other

    things).

    Thus, in thisdirection s well, alreadyat this evel of communal

    economic

    development

    where as

    yet

    no

    true

    demand-economy

    xists,

    the

    autonomy

    f

    the

    producers

    inds

    ts

    imits

    n

    the consideration

    f

    the

    general

    consumer

    eeds

    which

    re

    to be satisfied

    y

    the total

    production

    f

    society.

    Making

    sure that these imits are observed

    s

    the

    task

    of

    the consumer

    organizations

    state,

    community,

    onsumer

    ooperatives,

    tc.),

    which,

    for

    this

    purpose,

    have

    been

    granted

    he

    right

    o share

    n

    the

    management

    f

    the

    autonomous

    ndustries

    cf.

    as one

    way

    n which

    the

    change

    can be

    executed

    practically,

    he

    excerpt

    from a

    proclamation

    f

    German-Austrian

    ocial

    democracy, s well as therelevant iscussionsn thereport f the German

    commission

    or

    ocialization

    n

    coal-mining

    ublished

    uring

    he

    printing

    f

    this

    publication).

    19. Industrial

    Autonomy

    etterthan "Nationalization"

    The

    implementation

    f

    "socialization"

    s

    usually

    nvisioned

    y

    the

    ayman

    in

    the form f

    simpl-

    nationalization.

    Most of the

    arguments

    onventionally

    raised

    gainst

    socialization" re based

    on

    this

    quation

    of

    socialization nd

    nationalization.

    Hence the

    argument ppears

    that

    nationalization f the

    3.

    Both

    texts

    were

    printed

    n an

    appendix

    to the

    German

    publication,

    the

    editors).

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  • 8/10/2019 Korsch, Karl. What is Socialization

    20/23

    78

    NEW

    GERMAN

    CRITIQUE

    means

    of

    production

    ithout

    ndangering

    rofitability

    ould

    only

    be

    feasible

    at all within rathernarrowlyimited roupofproduction ranches, hose

    plants

    "ripe"

    for centralized

    management.

    For all other

    branches

    of

    production

    period

    of

    gradual

    maturation

    would have

    to

    be observed nd

    many

    branches f

    production

    would

    not

    develop

    n

    the direction f

    gradual

    maturation

    for

    centralization t

    all,

    but rather

    n

    the

    exactly opposite

    direction;

    he atter

    ould, therefore,

    ever

    e

    "socialized"

    without

    inancial

    loss and a decrease n

    production otential.

    Further

    here

    s

    the

    argument

    that

    very

    ype

    f

    socialization" hatsoever ould ead to

    bureaucratization,

    schematization

    nd

    consequently

    o the death

    of

    private

    nitiative

    nd to

    stagnation.

    All

    these

    arguments

    make

    sense as

    objections

    to

    centralized

    "nationalization"

    f

    certain nsuitable

    ranches

    f

    production.

    hey

    have

    no

    significance

    s

    arguments

    gainst

    ocialization

    tself,

    gainst

    he

    replacement

    of

    capitalist rivate wnership

    y

    socialist

    ommunity

    wnership,

    hich s

    to

    be

    begun immediately

    n

    a wide scale. For

    as

    we

    have

    seen,

    this

    socialist

    community

    wnership

    s

    in

    no

    way

    synonymous

    ith

    state

    ownership.

    Nationalization

    was,

    fromour

    point

    of

    view,

    only

    one

    of

    the

    forms

    f

    socializing

    nd all forms f

    socializing

    whatsoever ere

    only

    ecognized

    y

    us

    as true socialist"socializing," f they ed as a resultto that particular

    regulation

    f

    the ocial

    relations

    f

    production,

    which

    we here

    designated

    s

    the

    formof

    industrial

    utonomy.

    Vis-d-vis

    his ocializationn

    the form

    f

    ndustrial

    utonomy,

    ll the

    usual

    arguments

    aised

    against

    centralized

    nationalization"

    rove groundless.

    Bureaucratic

    chematizationnd

    stagnation

    s

    precluded;

    private

    nitiatives

    notkilledbut

    rather urthered herever

    ossible,

    ince

    the

    opportunities

    or

    exercising

    uch

    nitiativere

    expended

    hrough utonomy

    o

    a

    group

    of

    plant

    participants,

    whichunder

    private

    capitalist

    conomy

    had no

    possibility

    f

    exercising ny

    nitiative.

    nd

    the

    danger

    f

    osingprofits

    ould

    only

    rise n

    the vent

    hat,

    following

    heexclusion fthe

    private

    wner rom

    roduction,

    private

    elf-interest

    ere

    to cease

    providing

    constant

    mpetus

    o

    the

    most

    profitable

    roduction

    ossible.

    The fact

    s,

    however,

    s will be

    illustrated

    immediately,

    hat he

    mere

    ocializing

    fthe

    means

    of

    production

    s

    n

    no

    way

    connected

    with

    he

    limination f

    private

    elf-interestrom

    he

    motivationsf

    production;

    nstead,

    hrough

    ocializing

    he

    means

    of

    production

    n

    this

    irst

    phase

    of

    communal

    economy,

    private

    elf-interestan

    be of

    even

    greater

    service

    s

    motivation or

    he

    most

    profitable