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Building a Living Democracy
Beyond Socialism and Capitalism
by Gar Alperovitz
Sojourner, April 1990

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A New Way of Thinking About Politics and Economics

For most of the 20th century, the progressive vision of the future has in one form or another revolved around the socialist idea that equality and democracy can best be achieved by a system in which the ownership of society's wealth ("the means of production") is vested in a structure beholden to, and controlled by, society. In practice, for the most part, this structure has been the state.

The crisis in East European and Soviet socialism confronts progressives throughout the world with a fundamental challenge: What happens if the traditional socialist ideal collapses, particularly if socialism's "distant cousin"--the liberal welfare state--also loses its capacity to achieve fundamental value goals?

It is well to begin with an honest acknowledgment: In criticizing the socialist idea, thoughtful conservatives (as opposed to demagogues and self-serving right-wing politicians) have for more than a century argued that vesting both economic and political power in one institutional structure must inevitably lead to the destruction of individual rights, democracy, and the human spirit. They have applied a similar critique to the expansive welfare state. Freidrich Hayek, whose book The Road to Serfdom became a conservative bible, pushed the argument well beyond narrow economic ideas:

"The most important change which extensive government control produces is a psychological change, an alteration in the character of the people... the will of man is not shattered but softened, bent and guided; men are seldom forced by it to act, but they are constantly restrained from acting. Such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to be nothing better than a flock of timid and industrial animals, of which government is the shepherd."

Most progressives rejected the general conservative argument because it was largely oblivious to the moral and political importance of equality, and because it often served simply to mask a base form of hack conservatism willing to use any argument to justify private enterprise exploitation. They urged (correctly in my view) that to vest the ownership of the means of production in private hands inevitably produces great inequalities of income and wealth, very powerful private interests which tend to subvert democracy, the desecration of the environment, and an equally disastrous spiritual result--the worship of money, of materialism, and greed.

Most threw the important conservative "baby" out with the dishonest bathwater for these reasons. Only a very few argued the importance of listening to the main point of the honest critique, and of engaging serious conservatives in a serious dialogue on serious matters.

It is undeniably true that the socialist ideal in the Soviet Union and Eastern Europe was severely handicapped by the devastation of World Wars I and II, and because it was introduced into essentially underdeveloped societies which had only the most minimal historic experience with democracy. Further, the Cold War generated an environment that gave priority to national security, military expenditures, rigorous internal security measures, and a Soviet imperial occupation. The events of the last forty years provided numerous reasons that permitted many progressives to avoid reflecting deeply upon the conservative argument and upon similar themes in anarchist and libertarian anti-statist thought.

Now the fatal underlying flaw has demonstrated its tremendous importance, and millions in the East have begun a sweeping rush away from a disaster they know directly to a seeming solution they know only vaguely: "democratic capitalism."

But if--as many in the West know so well--democratic capitalism also contradicts important values, what possible alternative can we begin to conceive and affirm for the future? Access to the ballot, Western-style, and freedom of association, of the press, and of individual liberties, are fundamental requirements of Constitutional democracy. But they are only some of the building blocks of meaningful democratic participation, and the evidence that this is so is now abundant:

Any American reporter in any American city easily finds numerous people chosen at random who express an extraordinary depth of disillusionment with the actual operation of democracy. They do not need to be instructed in the limits of what some have called "electionism"--a process in which mud-slinging, distorted advertising, and a lack of significant issues make a mockery of the idea of "democratic" decision making in connection with important public matters.

Here, for instance, are selections from a few recent news interviews.

Construction worker Bobby Machicek, on politics and politicians: "When it comes time to vote they all pretend they care about people, and they start cutting on each other, but it's all just a rat race. It doesn't mean anything. One guy says he'll change things, he gets in, and then he leaves and the next guy talks about how bad the last guy was. It goes on and on like that."

Twila Martinzea, a 38-year-old San Franciscan: "It seems like another world to me. It goes on, it functions, but I don't feel like it really directly affects us."

Mechanic David Bradley: "I used to write in candidates when I was unhappy, but I decided that was a waste of time....Our political system is totally ineffective."

Lee Atwater, Republican Party Chair: "Bull permeates everything. In other words, my theory is that the American people think politics and politicians are full of baloney."

So, too, sociologists studying the "crisis of confidence" regularly discover rampant disillusionment with American institutions in general, and the political process in particular. The percentage of people who bother to vote, for example, even in presidential years, slips steadily. In the most recent presidential election, only one eligible person in two voted; this is down from the 80 percent range just before the turn of the 20th century.

And it was not a radical critic but Ronald Reagan who pointed out that in the U.S. House of Representatives, "with a 98% rate of re-election, there is less turnover...than in the Supreme Soviet"--before the recent Gorbachev reforms! It is not too much to say that democracy in America is a slowly dying form: It has all the constitutional appearances of a vital practice, but its heart seems quietly to be weakening.

Is there any meaningful way forward that promises to honor equality, liberty, democracy, ecological rationality--and, even perhaps community? A direction that might begin to define a viable third way beyond both traditional socialism and traditional capitalism as we approach a new century? What is needed is not simply a set of rhetorical goals, but the beginning outlines of an alternative system of institutions and relationships that might nurture, rather than erode, our most cherished values in an ongoing fashion over time.

More urgently and directly: What are the central elements of a new vision which must be considered if we are to replace the two once-great traditions, when the fatal underlying flaws of the capitalist model explode the superficial consensus in the West and a Western demand for true perestroika--for "restructuring"--also one day rushes into the open?

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