GUEST BLOG: Ian Powell – Why Socialism (why not New Zealand)

When people think of the German born Albert Einstein (1879–1955) usually this would as the theoretical physicist who is widely held as one of the most influential scientists in the world.

They would think of him being best known for developing the theory of relativity. Some would also be aware of his important contributions to quantum mechanics.

More people perhaps would be aware that he received the  Nobel Prize in Physics over 100 years ago (1921).

What many would not know, however, was his commitment to strong commitment to humanity generally and to socialism specifically.

He lived in the United States for several years where he developed strong relationships with American socialists.

Albert Einstein’s feature article in foundation issue of ‘Monthly Review’

In 1949, six years before his death, he wrote the feature article for the first issue of the new (still going strong) socialist publication Monthly Review. Its succinct title was ‘Why Socialism’.

Sixty years later it was republished in the May 2009 issue of Monthly Review: Albert Einstein on why socialism. It provides insights that are relevant to Aotearoa New Zealand, even in 2024.

Trying to summarise Einstein

In summary, his argument was that:

1. Societies in 1949 had not yet really overcome “the predatory phase” of human development.
2. Socialism is directed towards a “social-ethical end” which science on its own can’t create (it can help enable).
3. Individuals are dependent on society. While they are able to think, feel, strive, and work by themselves, they depend so much on society. It is impossible to think of individuals outside the framework of society.
4. This dependence on society is at the heart of an existing state of crisis.
5. Consequently “The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil.”
6. Private capital becomes concentrated in a few hands. An “oligarchy of private capital” is created with such “enormous power” that it can’t be effectively checked even by formal political democracy.
7. A planned socialist economy is needed but with the proviso that just being planned is not enough. Without an educated and participatory society, a planned economy on its own can lead to “enslavement”.

Profound conclusions that stand the test of time

Among his concluding paragraphs were the following:

Production is carried on for profit, not for use. There is no provision that all those able and willing to work will always be in a position to find employment; an “army of unemployed” almost always exists. The worker is constantly in fear of losing his job. Since unemployed and poorly paid workers do not provide a profitable market, the production of consumers’ goods is restricted, and great hardship is the consequence. Technological progress frequently results in more unemployment rather than in an easing of the burden of work for all. The profit motive, in conjunction with competition among capitalists, is responsible for an instability in the accumulation and utilization of capital which leads to increasingly severe depressions. Unlimited competition leads to a huge waste of labor, and to that crippling of the social consciousness of individuals which I mentioned before.

This crippling of individuals I consider the worst evil of capitalism. Our whole educational system suffers from this evil. An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his [sic] future career.

His short opening sentence says so much: “Production is carried on for profit, not for use.” Profit arises from exchange values.

I have previously discussed the respective roles of use and exchange values in the context of capitalism in Political Bytes (12 August): Towards an economy based on provision of human needs.

“Crippling of individuals” 

Einstein’s emphasis on the role of education systems contributing to the “evil” outcome of the “crippling of individuals” is pertinent in the context of the didactic Minister of Education Erica Stanford.

In effect she has banned the use of meaning to teach literacy to children by compelling schools to follow the rigid untested ‘structural literacy’ programme.

I have discussed this in two earlier Political Bytes posts (10 June and 9 July:  Hegemony, meaning and structured literacy  and How literacy rigidity flows from ideology.

In the process Stanford has also stopped the training of reading recovery programme on the grounds that it is inconsistent with ‘structured literacy’.

However, reading recovery is individualised teaching targeted at children with low literacy standards for their age.

Unfortunately even a successful remedial programme as reading recovery, which of itself was no threat to ‘structural literacy’, did not fit in with Stanford’s didactically crippling mindset.

Einstein 1949 and New Zealand 2024

In 2024 Einstein’s article remains as insightful as it did in both 1949 and 2009, both for the United States in particular but also capitalism generally.

As in 1949, in 2024:

• human development remains predatory;
• individuals continue to be dependent on society which is driven by the same economic system;
• “economic anarchy” prevails; and
• private capital remains concentrated in the hands of a few who still possess “enormous power.

Although Einstein was living in an economically developed country where the destructive impact of raw capitalism was most pronounced, it remains relevant to the understanding and future direction of Aotearoa today.

New Zealand needs a transformation from an economy served by its people to an economy planned to serve its people.

Ian Powell was Executive Director of the Association of Salaried Medical Specialists, the professional union representing senior doctors and dentists in New Zealand, for over 30 years, until December 2019. He is now a health systems, labour market, and political commentator living in the small river estuary community of Otaihanga (the place by the tide). First published at Political Bytes