Socialist Optimism An Alternative Political Economy for the Twenty-F
Paul Auerbach's Socialist Optimism offers an alternative political economy for the twenty-first century. Present-day capitalism has generated growing inequality of income and wealth, persistent high levels of unemployment and ever-diminishing prospects fo
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Socialist Optimism An Alternative Political Economy for the Twenty-First Century Paul Auerbach Reader in Economics, Kingston University, UK
SOCIALIST OPTIMISM: AN ALTERNATIVE POLITICAL ECONOMY FOR THE TWENTY-FIRST CENTURY Copyright © Paul Auerbach 2016
All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2016 by PALGRAVE MACMILLAN The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500 New York, NY 10004–1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. ISBN: 978-1-137-56395-8 E-PDF ISBN: 978-1-137-56396-5 DOI: 10.1007/978-1-137-56396-5 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data Names: Auerbach, Paul, author. Title: Socialist optimism : an alternative political economy for the twenty-first century / Paul Auerbach. Description: Houndmills, Basingstoke, Hampshire ; New York, NY : Palgrave Macmillan, 2016. | Includes bibliographical references and index. Identifiers: LCCN 2015039321 Subjects: LCSH: Socialism. | Economics--Political aspects. Classification: LCC HX73 .A84 2016 | DDC 335—dc23 LC record available at http://lccn.loc.gov/2015039321 A catalog record for this book is available from the Library of Congress A catalogue record for the book is available from the British Library
To Caroline, for everything
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Contents Acknowledgements
x
Introduction
1
Part I
Socialism and Central Planning
15
Introduction
15
1
Planning and Spontaneous Order Planning as an aspect of rationality Hayek and the constructivist fallacy Social outcomes without planning? Spontaneity and planning
17 17 22 28 32
2
The Giant Firm and the Plan The Great Transformation Modernity and the giant firm The giant firm: size and complexity The giant firm: the creation of management Planning and the giant firm
37 37 39 42 48 54
3
Technocratic Plann
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