Abstract
Otto Neurath was one of the most active participants in the debate about socialization that developed after the First World War. His name is mentioned most prominently in the context of two issues: “total socialization”/“Vollsozialisierung” (as opposed to partial socialization), and “in kind accounting”/“Naturalrechnung.” In both respects he is mostly seen as an advocate of strategies and concepts which aimed at changes in the economic system of a much more radical sort than those proposed by the main-stream Social democratic parties in Germany and Austria. Neurath maintained this position despite the early failure of “revolutionary” political experiments in Bavaria and Saxony until 1925. The present contribution is confined to the debate between Neurath and his critics from the Social democratic parties of Germany and Austria—to the part of the debate that took place “inside” the socialist movement. Responses from Karl Kautsky, Otto Leichter, Helene Bauer and others exposed the all too obvious deficiencies of Otto Neurath’s concepts of socialization and of calculation in particular, whereas they could not offer convincing solutions especially of the calculation problem, due to their consequent to the Marxian labour theory of value. The contribution makes only occasional references to contributions from “outside”, which are much better known nowadays due to the prominence which the interventions of Mises and Schumpeter came to acquire later.
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Notes
- 1.
For a survey of the Austrian debate on economic calculation in a socialist economy see Chaloupek (1990).
- 2.
Notice that Neurath uses “soft” formulations (survey, participate), thereby avoiding the impression that it might be necessary to establish central control over production and consumption by command backed by force.
- 3.
If Weber’s view on the applicability of in-kind accounting coincides with that of Mises, Weber’s concept of rationality differed from Mises’ (Uebel 2018).
- 4.
To support her argument, Helene Bauer (p. 200) quotes Engels (1894, 335): “Die Nutzeneffekte verschiedener Gebrauchsgegenstände, abgewogen untereineinander und gegenüber den in ihrer Herstellung nötigen Arbeitsmengen, werden den Plan schließlich bestimmen.” Engels’s argument is actually based on a utility theory of value. Engels’ argument is actually based on a utility theory of value.
- 5.
Alexander W. Chayanov, 1888–1939, director of the Petowskoje-Rasumowskoje inistitute of agricultural economics (near Moscow) 1919 till 1930, arrested under the charge of founding a peasant opposition party.
- 6.
- 7.
Neurath made a similar statement in his response to comments to his lecture to the World Social Economic Congress 1931: “If one speaks, in monetary calculation, of the increase of production measured in money terms, then it is unclear whether there is an increase in kind, for the increase in money terms can mean a decrease of production” (Neurath 1931b/2005, 500).
- 8.
National income not only includes tangible goods, but—to an ever increasing extent—also services of different kinds. Conventions have been developed to include private and public services in GDP on the basis of imputations which presently account for a large part of it.
- 9.
Compare the remarks in Kautsky (1922, pp. 165, 185, 234, 267).
- 10.
See his book “Bolschewismus in der Sackgasse” published in 1930.
- 11.
“Die gesamte Sozialstruktur einer Gesellschaft, ihre Lebensordnung ist eingebettet in den gesamten Kausalablauf, ist einerseits als Reiz, andererseits als Reaktion anzusehen” (Neurath 1931a/1979, 206).
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Chaloupek, G. (2019). Otto Neurath’s Concepts of Socialization and Economic Calculation and His Socialist Critics. In: Backhaus, J., Chaloupek, G., Frambach, H. (eds) The First Socialization Debate (1918) and Early Efforts Towards Socialization. The European Heritage in Economics and the Social Sciences, vol 23. Springer, Cham. https://doi.org/10.1007/978-3-030-15024-2_7
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