Labour voucher

This article is about an alternative to money and currency. For proposed method of economic calculation, seeLabor-time calculation.

Labour vouchers(also known aslabour cheques,labour notes,labour certificatesandpersonal credit) are a device proposed to governdemandforgoodsin some models ofsocialismand to replace some of the tasks performed bycurrencyundercapitalism.

Outline

Unlike money, vouchers cannot circulate and are not transferable between people. They are also not exchangeable for anymeans of production,hence they are not transmutable intocapital.Once a purchase is made, the labour vouchers are either destroyed or must be re-earned through labour. With such a system in place, monetarytheftwould become impossible.

Such a system is proposed by many as a replacement for traditional money while retaining a system of remuneration for work done. It is also a way of ensuring that there is no way to make money out of money as in a capitalistmarket economy.Additionally, the only kind ofmarketthat could exist in an economy operating through the use of labour vouchers would be anartificial market(arket) for mostly non-productive goods and services. As with the dissolution ofmoney,capital marketscould no longer exist andlabour marketswould also likely cease to exist with the abolition ofwage laborwhich would by necessity occur with the adoption of vouchers.

Author and activistMichael Albertand economistRobin Hahnelhave proposed a similar system of remuneration in their economic system ofparticipatory economics(parecon). A difference is that in parecon credits are generally awarded based on both the time spent working and the amount of effort and sacrifice spent during labour, rather than simple contribution. Some later advocates of participism and parecon have also proposed awarding more based on job difficulty or danger. In contrast to the physical note or cheque format used for labour vouchers in the past, parecon credits are proposed as being entirely digital in keeping with advances with technology and are stored in electronic accounts and usable through cards similar to current day debit cards.

History

Labour vouchers were first proposed in the 1820s byJosiah WarrenandRobert Owen.Two early attempts at implementing labour vouchers (called labour notes at the time by their proponents) were made by both following their experiences attempting to establish a utopian community atNew Harmony, Indianain which currency was prohibited.

In 1827, Warren established theCincinnati Time Storewhere goods could be purchased with labor vouchers representing an agreement to perform labor. However, he folded the store in 1830 in order to devote his effort to establishing communities that implemented his principles of labour-based prices.

Beginning in 1832, Owen and his followers attempted to implement labour notes in London and Glasgow by establishing marketplaces and banks that accepted them.

The followers of Owen stood for a society of co-operative communities. Each community would own its own means of production and each member of a community would work to produce what had been agreed was needed and in return would be issued with a labour voucher certifying for how many hours he or she had worked. A person could then use this labour voucher to obtain from the community's stock of consumer goods any product or products which had taken the same number of hours to produce.

Owen believed that this co-operative commonwealth could begin to be introduced under capitalism and in the first half of the 1830s some of his followers established labour bazaars on a similar principle in which workers brought the products of their labour to the bazaar and received in exchange a labour voucher that entitled them to take from the bazaar any item or items which had taken the same time to produce after taking into account the costs of the raw materials. These bazaars were ultimately failures, but the idea of labour vouchers appeared in substantially similar forms in France in the writings ofPierre-Joseph Proudhon.

Marx initially refused the idea in thePoverty of Philosophy,especially within the capitalism (I. chapter, 2. §). Marx stated that the time in itself separated from other people's time is not suitable to measure the value of work. The value "is constituted, not by the time needed to produce it by itself, but in relation to the quota of each and every other product which can be created at the same time" (3.§. A.). According to Marx, the introduction of labour vouchers would create a lazy society and economy as there would not be concurrency between employers and employees, so nobody would be able to tell what the optimal (minimal) time which was needed to produce something would be. For example, what if "Peter" works 12 hours per day, meanwhile "Paul" works only 6 hours. This means that "Peter" worked 6 unnecessary hours and his labour vouchers are not worth anything as this is regarded +6 hours, not to mention other factors of the work. To summarize Marx's opinion in thePoverty of Philosophy,the labour voucher is not suitable to create a new socialist society, and the theory of Proudhon and others is nothing more than autopianapology of theexisting capitalist system.ByFriedrich Engels,Proudhon himself tried to introduce the labour voucher system in 1849, but his attempt collapsed soon. Marx was adamant in saying that labour vouchers were not a form of money as they could not circulate—a problem he pointed out with Owen's system of labour-time notes.

However, they were later advocated byKarl Marx,despite disagreeing with the manner in which they were implemented by Owen, as a way of dealing with immediate and temporary shortages upon the establishment of socialism. Marx explained that this would be necessary since socialism emerges from capitalism and would be "stamped with its birthmarks". In Marx's proposal, an early socialist society would reward its citizens according tothe amount of labour they contribute to society.In theCritique of the Gotha Programme,Marx said:

[T]he individual producer receives back from society—after the deductions have been made—exactly what he gives to it. What he has given to it is his individual quantum of labour. For example, the social working day consists of the sum of the individual hours of work; the individual labour time of the individual producer is the part of the social working day contributed by him, his share in it. He receives a certificate from society that he has furnished such-and-such an amount of labour (after deducting his labour for the common funds); and with this certificate, he draws from the social stock of means of consumption as much as the same amount of labour cost. The same amount of labor which he has given to society in one form, he receives back in another.

During theGreat Depression,European communities implemented local currencies with varying success. The aptly-named economist SirLeo Chiozza Moneyadvocated for a similar monetary scheme in his 1934 bookProduct Money(Methuen) with notes or certificates being issued for productive work and destroyed once exchanged for consumption goods. InNazi Germany,Hjalmar Schacht(Adolf Hitlersfinance-minister and banker) applied a kind of labour-voucher named MEFO-bond, whose aim was to hide the rearmament program's expenditures before the Western world as the big trusts did not pay by money-transfer to each other, but bought MEFO bonds from the state and changed these bonds in closed circuit. More modern implementations astime-based currencieswere implemented in the United States starting in the 1970s.

Systems that advocate labour vouchers

The following political and economic systems propose the adoption of labour vouchers (in some form or another) either permanently or as a temporary means of remuneration during a transitional stage between a monetary economy and a completely moneyless economy based on free association.

• Owenism
• Marxism
• Mutualism
• Individualist anarchism
• Collectivist anarchism
• DeLeonism
• Participism
• Inclusive Democracy
• Neomarxism
• Technocracy Inc

Inclusive Democracy is unique in proposing two kinds of vouchers. Basic vouchers issued to each citizen according to need are used for essential goods and services such as health care while non-basic vouchers awarded to each worker for labor contributed are used to pay for non-essential commercial goods and services.

Criticisms

The system has also been criticized by manylibertarian socialists,particularlyanarcho-communists,who propose abolishing all remuneration and prices and advocate instead agift economywith the value determined bycalculation in kind.In criticizing collectivist anarchism's retaining of labour vouchers and cheques,Peter Kropotkinsaid:

[F]or after having proclaimed the abolition of private property, and the possession in common of all means of production, how can they uphold the wages system in any form? It is, nevertheless, what collectivists are doing when they recommend labour-cheques.

TheWorld Socialist Movementhas argued against using labour vouchers as either a permanent or a temporary system while transitioning to their desired anarcho-communist economy based on free access. They claim that seeing as most of the occupations that currently exist under capitalism will no longer exist,scarcitywould no longer be an issue. They also state:

Labour vouchers would tend to maintain the idea that our human worth is determined by how much or how many goods we can own (or produce). Labour vouchers imply that a very huge administrative organisation must police who takes the goods produced by society. In other words, there must be people who spend their time ensuring that other people do not take things without paying for them. That is normal in a profit-oriented society, but a waste of human labour in socialism.

See also

• Calculation in kind
• Labor-time calculation
• Ithaca Hours
• Local currency
• Local Exchange Trading System
• Socialist economics
• Time-based currency

External links

• "The Marxist Market Economy".De Leonist Society of Canada. From the Discussion Bulletin No. 107 (May–June 2001). pp. 21–22.