Wolff’s proposal is to legally convert private enterprises [I take it of some large size] into worker-owned enterprises on the model of the Mondragon enterprise in Spain.
Wolff is trying to satisfy a principle of equality in outcome.
I, in contradistinction, am not driven by any principle of an equality of outcome, but rather I am driven by a principle for an equality of opportunity. I want a universal right for access to subsistence, and I see this demand being satisfied by allowing everyone a right of free access to subsistence land.
Thus, I do not propose barring free enterprises, nor exploitation, nor surpluses, nor profits. In my arrangement, a private entrepreneur could actually be beneficial to those who cannot help themselves, i.e., those who cannot survive independently, but can do so by being directed.
And concerning those who can help themselves independently, the entrepreneur will have to lure them with a reward which is greater than that which they could eke out by their own efforts, or efforts of those who have combined in some co-operative manner. In other words, he will be compelled by the circumstances to minimize his profits. Thus, Wolff’s desire for eliminating “exploitation” in factories will tend to be achieved by my proposal.
In my thought experiment with Crusoe and Friday on an island, I imagined that they agreed to a division of the island into two equal parts, but that Crusoe possessed a rifle with bullets, and that the island had many feral pigs. Crusoe would let Friday use the gun on the condition that Friday share his kills with Crusoe.
Since this arrangement was better than what Friday could manage on his own without a rifle, he agreed to the deal. This is an example of an agreed to exchange where Crusoe is “exploiting” Friday. But this is not an example of capitalism because Friday is not forced to accept the deal at the cost of starvation (by not having free access subsistence land), because, after all, he still can hunt pigs with a spear, a bow, or some form of trap. It is simply that he can more easily shoot two pigs in a much shorter time than it would take to get even one pig by an alternative method.
We can generalize from this example to say that Crusoe will be “rewarded” if he can come up with some appealing invention or idea — including some form of entertainment. [As does Wilt Chamberlain in Robert Nozick’s Anarchy, State, and Utopia (1974)] But the reward will tend to be short-lived. For example, Friday could — hypothetically speaking — make his own rifle and bullets. And someone else can become more entertaining than Wilt Chamberlain.
In our current society, there are patent laws, which ensure a monopoly and profits. On the island, there are no patent laws.
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chatGPT summarizes:
This excerpt presents a comparison of two approaches to addressing economic inequality and exploitation: Richard Wolff’s proposal of worker cooperatives and the author’s own proposal based on providing a universal right to access subsistence land. The core difference here revolves around how exploitation is viewed and how it can be mitigated.
Richard Wolff’s Approach:
Wolff’s theory is rooted in Marxist economics, where the main issue is exploitation, specifically the extraction of “surplus value” or profits from workers by owners of capital. According to Wolff, in a capitalist system, factory owners, or CEOs, make profits by paying workers less than the value they produce, with this surplus being appropriated by the capitalist class. His solution is to transform enterprises into worker-owned cooperatives, where employees collectively own and manage the business, thereby eliminating exploitation by ensuring that workers share in the profits they generate.
The Author’s Proposal:
In contrast, the author rejects the idea of equalizing outcomes (such as eliminating profits or wealth inequality) and focuses on equality of opportunity. The author’s central proposal is based on granting universal access to subsistence land—meaning that everyone should have a right to access land that enables them to survive independently. This idea is meant to ensure that no one is left in a position of forced dependency, making it a guarantee of basic subsistence for all.
However, unlike Wolff, the author is not against private entrepreneurship or profit-making. The proposal suggests that entrepreneurs could still profit, but only if they offer rewards or incentives that are greater than what individuals could secure by their own efforts or in cooperative arrangements. This means entrepreneurs would be naturally compelled to minimize their profits to attract workers who could otherwise survive independently. In this sense, it aligns somewhat with Wolff’s desire to reduce exploitation, even though the approach is different.
The Crusoe and Friday Thought Experiment:
The author uses the Crusoe and Friday scenario to illustrate their idea. On a deserted island, Crusoe possesses a rifle and agrees to let Friday use it on the condition that Friday shares his kills. This is an example of exploitation, as Crusoe is extracting a portion of Friday’s labor, but the key difference from capitalist exploitation is that Friday is not forced into the arrangement—he has the option of hunting pigs without Crusoe’s help, albeit with more difficulty. The idea here is that exploitation does not necessarily imply coercion; it can be a voluntary exchange where both parties benefit.
This scenario also suggests that, in the absence of coercive laws (like patent law or monopolies), individuals could choose to improve their circumstances independently. For example, Friday could make his own rifle, or someone else could develop more appealing entertainment than Wilt Chamberlain, as referenced from Nozick’s thought experiment in Anarchy, State, and Utopia.
Key Differences in Perspective:
- Exploitation and Voluntary Exchange: The author argues that exploitation doesn’t always mean coercion or inequality of outcome. Instead, it can be a voluntary arrangement where both parties benefit, and the exploited party has an alternative means of survival. This contrasts with Wolff’s view, where exploitation is inherently tied to the unequal distribution of wealth and power.
- Equality of Outcome vs. Opportunity: Wolff is concerned with reducing inequality in outcomes (by redistributing profits and wealth to workers), while the author is more focused on ensuring equality of opportunity, particularly by guaranteeing access to basic resources, such as land. In the author’s view, if everyone has access to the means of subsistence, they are free to enter into voluntary economic exchanges without coercion.
- Private Entrepreneurship: The author is not opposed to the existence of private enterprises or profits, but believes that entrepreneurs will be forced to minimize their profits in order to compete with independent individuals or cooperatives who can survive without them. This is a kind of natural check on exploitative behavior, in contrast to Wolff’s call for legal and structural changes to eliminate private ownership of enterprises.
- Patent Law and Monopoly: The author points out that in the absence of patent laws, the natural competition would lead to innovation and reduce monopolies, making it harder for individuals or corporations to exploit others through exclusive control of intellectual property.
Conclusion:
The author’s proposal is a distinctive take on economic fairness, focused on providing universal access to subsistence rather than equality of outcome. By guaranteeing the basic right to land and survival, the author suggests that people would not be forced into exploitative labor conditions, and the need for coercive state intervention (e.g., worker cooperatives or redistribution) would be reduced. The emphasis is on freedom of opportunity and the idea that voluntary exchange (even if it involves exploitation in some cases) can still be fair if the parties involved have alternative ways to sustain themselve