The meaning of Socialism in modern Britain
What is socialism in the 21st
century? A few years ago the question would have seemed an uninteresting one,
but now it is the talk about town. Whatever your associations with that word,
there seems to be agreement that following decades of decline, on both sides of
the Atlantic it is making a comeback. What is odd, this time round, is the meaning of the term is far from clear.
In the mid 20th Century, the
definition was fairly straight forward. Socialism was the commitment to the
nationalisation of the means of production and distribution, with the aim of
widespread improvements in living standards and conditions in the workplace, as
well as a reorientation of economic activity towards the some notion of human
needs. There were all sorts of disputes about the details of what this would
mean. Would socialism entail a centrally planned economy on a national level,
or could there be some measure of decentralisation and local autonomy? What role
would trade unions or workers play in administration? Could there be such a
thing as ‘market socialism’, where administrators of nationalised industries
responded to price mechanisms, rather than targets, essentially operating as in
a capitalist economy but with profits nationalised? These debates plagued both
socialist parties in the democratic world and the communist parties of the
Eastern block in times of relative liberalisation.
But no longer. Almost nobody is seriously
proposing any form of wholesale nationalisation of the economy, or any form of
bringing the economy into ‘collective ownership’ (e.g syndicalism) for that
matter. Questions of the meaning of socialism are not primarily about the
question of the broad picture of economic organisation. To the extent they are,
in the mass media that is limited to people like Paul Mason or Arron Bastani
talking about a future without scarcity due to automation. There is a long
history of this idea. Marx talked of a future where we could fish in the
morning and write poetry in the evening, Oscar Wilde suggested much the same in
The Spirit of Man Under Socialism,
and even Keynes made similar remarks in his Economic
Prospects for Our Grandchildren. Whether or not something like that will
eventually come to pass, the point is that what we are really talking about is
not the question of how to organize a society economically, but a (hopefully)
possible future in which such organization is more or less superfluous anyway,
as we have everything we need without really needing to work (in the 21st
Century we imagine this would involve robots and AI; in 19th Century it was mechanical machines).
This is not to say that left wingers aren’t
proposing the nationalisation of certain industries. In Britain, renationalisation of the rail network is something of a rallying call of the
left; a move which is politically astute as it is quite popular. Rather, unless
a very long game is being played, nobody seems to be that interested in the old
question of economic organisation. Not that there is anything wrong this.
Planned economies probably aren’t a great idea, for reasons fairly well
understood and broadly accepted. Tinkering around the edges, through redistributive
tax systems, nationalisation of certain natural monopolies or things deemed to
be public utilities has a lot going for it. But at least ostensibly, this isn’t
all that different to what mainstream social democratic, or even left liberal
parties subscribed to for most of the 20th Century. This would
represent a major organizational change in the economy if it weren’t for the
fact that that is already how the economy works, what is in discussion is
largely one of extent and degree. This does matter, of course, but it is not the same kind of debate as the one which was played out the last time round.
The strange death of Liberal Keynesianism
Why does this now come under the rubric of
“socialism”, rather than anything else? Partly it’s about who is leading the
charge. In the UK this means former backbench MPs who once upon a time really
did stand for socialism as it used to be defined, at least some of the time. Partly
it’s a to draw a distinction between themselves and is perceived to have come
before, be it neoliberalism , Blairism, the Third Way, or even simply the
Labour Party before Corbyn. To some extent, therefore, the term ‘socialist’ in
the UK may be seen as an identity marker- it is about who you identify with and
which side you come down on in internal disputes within the labour party. That
the term also seems like a plausible description of political beliefs owes more than anything else to
the strange death of liberal Keynesianism in the UK.
In the immediate aftermath of the financial
crisis, a debate raged on both sides of the atlantic over the proper response
of fiscal policy to the recession. This played out not just in the academic
field, but in politics as well. On both sides of the Atlantic there was a broad
(albeit likely inadequate) move towards fiscal stimulus as the appropriate
response, with the Obama stimulus package in United States, VAT cuts in the UK
and state funded employment subsidies in Germany. In the British context, this
meant that Gordon Brown’s Labour party went into the 2010 election taking the
Keynesian line on deficits.
Following Labour’s defeat, it became
received wisdom within the Labour party that Keynesianism was an electoral
nonstarter. While there was some resistance to this from Ed Balls, ultimately Labour
would go into the 2015 general election accepting the basic premises of the
Conservative line on government spending (Labour profligacy pre-crash caused
the deficits, austerity was necessary and growth neutral to positive). This
lead to the rather curious situation. The only people of political clout
actually making the mainstream Keynesian arguments about the need for stimulus
and folly of austerity were old leftists, many of whom actually had little
interest in such arguments previously (John McDonnell had at the time of the
crisis welcomed the destruction of the crisis as a means of destroying the
existing economic order, a number of other left wingers were initially
suspicious of Keynesianism as too much in league with business interests).
This meant that, for better or worse, the
argument about austerity became essentially an argument about the size of the
state, rather than deficits. Anti-austerity advocates are quite rightly
concerned primarily with the effect of austerity on the public sphere, and
austerity proponents are essentially interested reducing the size of the state
in the economy. In a different world the anti-austerity position might well
have found representation by centre-left social democrats, who were concerned
both by the erosion of public services and of growth, and saw these as
interrelated, but distinct. But that is not the world we live in.
It is in this context that Corbynism
offered the appearance of something radical and distinct, without actually
having to commit to anything more than bog-standard, textbook social democracy.
It could claim what social democracy for its own and call it socialism, largely because the social democrats weren’t
offering social democracy anymore. And the historical connotations of the word,
to its supporters, offers a kind of gravitas, a sense of association with
something bigger and different.
Does this matter? Doesn’t the meaning of
words change? This is certainly true, but the old connotations die slowly, and
for many, they aren’t positive. This certainly isn’t helped by the fact that
part of the appeal of the word socialism is precisely its associations with
historical developments that can rightly be criticised. It goes hand in hand
with claims of radical critiques of capitalism, with often only a vague notion
of what, precisely, is being critiqued (Finance? Private ownership of the means
of production? Markets? Neoliberal overreach?) And in the British context, it
also goes hand in hand with quite questionable measures to buy off sections of
the comparatively affluent middle classes (tuition fees). Perhaps over time the
connotations and meanings will change. Or perhaps if Labour does form a
government, those in the front bench who have more traditional, 20th
Century ideas of socialism, like John McDonnell, will become more dominant.
Until then, we will have to wonder.