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Anarchist economics entails theory and practice relating to economic activity within the philosophical outlines of anarchism. Anarchists (most notably anarcho-syndicalists and anarcho-communists) primarily oppose capitalism because they claim that its characteristic institutions promote and reproduce various forms of oppression, including private property, hierarchical production relations, collecting rents from private property, taking a profit in exchanges, and collecting interest on loans. Individualist anarchists are mutualist rather than collectivist or communist; they support possessive property rights but oppose usury - defining usury as profit from others' labor through rent, capital, interest, and wage-labor not paid "full" price. Finally, anarcho-capitalists fully support capitalism, but only the totally free-market laissez-faire kind.

Contents 1 Anarchist Critique of Capitalism 2 Alternative Theories of Value and Currency 2.1 Gift Economy 2.2 Labor Theory of Value 2.3 Energy Theory of Value 3 Examples of Anarchist Economies 4 Theoretical Anarchist Economic Systems 4.1 Participatory Economics 4.2 Mutualism 4.3 Technological LTV Networks 4.4 Panarchist Synthesis 4.5 Laissez-faire capitalism 5 Economics as Anarchist Strategy 6 Further reading 6.1 Books 6.2 Articles 7 See also 7.1 Concepts 7.2 Ideologies 7.3 Theories 7.4 People 8 External links 8.1 Alternative Currency 8.2 Ostensibly Anarchist 8.3 General Left-Wing Economic Reporting

Main article: Anarchism and capitalism

Many anarchists advocate the abolition of money, but others call for a replacement of it with new value systems, still others, such as Benjamin Tucker, want simply the end of the government money monopoly, i.e. privatization of minting and banking and the repeal of legal tender laws.

Gift economies are those based of free distribution of goods and services. Anarcho-communists are the main proponents of such. However many times this is said to refer to a planned economy which ensures everyone's needs are satisfied in a way that allows a good quality of life (the kind of planning advocated by most if not all anarchocommunists differs from that of firms and the so called command economies in that it is democratic and voluntary). There are a number of variations on the concept, but they are centered on the notion of "From each according to ability to each according to need". Primitivists also advocate this kind of economy (although they believe that it is not possible with current modes of production and thus advocate a return to pre-industrial and often pre-agricultural modes of production).

A labor theory of value (LTV) was notably advanced in different forms by David Ricardo and Karl Marx. Ricardo held that the relative prices of most reproduceable goods and services were proportional to the amount of present and past labor time required to obtain, manufacture, process, distribute, and transport them. Marx's "Law of Value" is often interpreted as an analytic device elucidating the ways in which capitalism as a whole distributes socially necessary abstract labour time, while revealing that an important characteristic of commodities and their value relations is commodity fetishism obscuring an underlying reality of exploitative social relations.

Recently, some local currencies have taken on LTV characteristics by having a currency based on time although participants are not primarily anarchists. Critics point out that in many of these Time-dollar based currencies, it is really easy to inflate the currency, that there is no way to ensure that people are not paid more than an HOUR per hour, and conversely it ignores factors like value-added work (work that incorporates past labor in order to perform, such as the time spent by a dentist in school). One of the reasons that the IRS has chosen not to tax local currencies is that they are used for charitable purposes, such as community-building.

Some anarchists are interested in LTV currency systems because they make complex free market, fair trade systems possible, although in their current practices they are not applicable for anything other than local (ie. town-sized) economies. Detractors argue that the definition of a free market precludes usage of a normative pricing system, but some anarchist point out that since participation in an LTV currency network is voluntary, any LTV system is merely another choice in a free market of markets.

The theory that all values can be evaluated in terms of joules. In the same vein as LTV, this is an attempt to make a normative basis for value by accounting for embodied energy. Accounting for such a system would be vastly more complex than current or other theoretical currency systems because all energy output of workers and energy expenditure on goods/services must be tracked (something that is thought impossible and useless by many anarchists).

One group that has advocated a system using energy is the Technocratic movement with a system based on energy-credits where energy is used to "buy" a product or service without being exchanged, so the effect is that products or services are distributed to the user without gain by the provider (who has the same amount of energy in his or her account regardless) so allegedly making profit impossible.

Utopia (sometimes known as Trialville) was an individualist anarchist colony begun in 1847, by Josiah Warren and associates, in the United States on a tract of land approximately 30 miles from Cincinnati, Ohio. see also: mutualism and Cincinnati Time Store.

The anarchist collectives formed during the Spanish Civil War is the most famous example of an anarchist economy operating on a large scale. The collectives were formed under the influence of the anarcho-syndicalist union the CNT in rural and urban areas and successfully practised self-management for a number of years in extremely difficult economic and political circumstances. Other examples of self-management include the factory committee movement during the Russian Revolution and the workplace occupations in Argentina during its crisis at the turn of the 21st century. Attempts at forming co-operatives also appeared during the Paris Commune of 1871 and the Italian Factory Occupations of 1920.

It has also been suggested that Chiapas under Zapatista rule exercises a working anarcho-socialist economy.

Main article: Parecon

Michael Albert and Robin Hahnel began to write about Parecon in the 1980s. This work builds on their earlier critiques of both market-based and centrally planned economies suggesting instead allocation by participatory planning created by the democratic interaction of a network of production and consumption councils. Parecon is a market abolitionist theory. Though not strictly an "anarchist" idea, its core features of decentralized democratic planning, institutions and remuneration based upon egalitarian norms and self-management, balanced job roles, environmental responsibility, and social efficiency, appeals to many anarchists.

Main article: Mutualism (economic theory)

Mutualism is a political and economic theory or system, largely associated with Pierre-Joseph Proudhon, based on a labor theory of value which holds that when labor or its product is sold, it ought to receive in exchange, an equal amount of labor or a product that required the same amount of labor to produce (receiving anything less is considered exploitation, theft of labor, or "usury"). Mutualists believe that a natural economic consequence of a truly laissez-faire economy, would be that income to individuals would be proportional to the amount of labor they exert. Mutualists oppose the idea of individuals receiving an income through loans, investments, and rent, as they believe these individuals are not laboring. They hold that that if state intervention ceased that these types of incomes would disappear.

A revision of LTV that incorporates information technology, cryptography, and open-source software to create a medium of exchange that precludes all forms of usury and thus requires no oversight or ideological guidance. In contrast to Parecon, there is no planned economy because users of the system will approve of labor that they feel is necessary and so production happens as people fill the labor market as they will.

Crucial to this system is the premise that money (credit for work done) can be improved with the addition of identity, information, and transparency, i.e. all credits created are associated with a particular individual (they are non-transferable), they inform users of the work done to create it, and can be viewed by any user on the system.

There are no specifications for how decisions are made within these Technological LTV Systems - each one is tasked to create its own ruleset. Joining such a network would be akin to signing a contract or EULA so revision of rulesets would resemble the open-source paradigm of updating software and having the user agree to a new ruleset. Decision making would then be implicit in any user's ability to participate in the revision of the system software, even though this approach could be elitist.

Prices on goods and services would be evaluated by the amount of credit earned by laborers involved--requiring that every individual item or service be tracked. Production then represents a mirror of the credit creation, so physical items would require their "negative" credit to be cancelled by a person wishing to own it. Since income distribution would be relatively flat in this system, it is hoped that most of the problems of capitalist accumulation and class structure will be avoided.

This is the theory that all alternative economic systems could exist simultaneously. Though it may imply accepting a greater complexity of day-to-day living, anarchists predicate this overlapping of systems on the removal of states and corporations, and the presence of multiple currency paradigms. In effect, this would be analogous, on an individual level, to having various subscriptions or club memberships--a level of complexity surpassed by the average American middle-class consumer that holds several credit cards with various debts, owes mortage and car payments, and so forth.

The motive to adopt a panarchist approach to economics is the theory that not all goods, services, or resources are best exchanged/regulated within a single system, i.e. energy production is best tracked in kilowatt-hours, but collectible items have highly subjective values and therefore require a different exchange medium. Even Parecon could be incorporated in this approach.

Main article: anarcho-capitalism

Separation of economics and State is the goal of anarcho-capitalists. They want an economy free from any coercive regulation or control. Anarcho-capitalists generally see the State as the cause of all monopoly. Anarcho-capitalists reject the labor theory of value as flawed and archaic. Thus, like most modern economists, they do not believe that there is any proper price for labor or goods other than what someone is willing to pay. According to Murray Rothbard, in an interview with New Banner, "capitalism is the fullest expression of anarchism, and anarchism is the fullest expression of capitalism."^[1] The place of anarcho-capitalism within anarchism is hotly debated.

Some anti-capitalist anarchists believe that it is not radical political activity that will transform society, but radical economic activity that will make true change. They regard boycotts, consumer advocacy, and class-action lawsuits to be merely liberal actions that do not address the core problem which is capitalism itself.

Some anarchists believe that changing the nature of work itself is the crux of defeating capitalism. Parecon addresses the division of labor question by advocating balanced job complexes wherein all workers at a production facility share in all aspects of labor, i.e. everyone takes part in labor, management, maintenance, and all related work in order to ensure equality and that skills are shared amongst workers

Some anarchists believe that changing personal consumption habits to minimize (or eliminate entirely) involvement in the prevailing capitalist economy is essential to practicing anarchism in their lives. Withdrawing from the system by living on scavenged, stolen, or scammed resources is often touted by situationists, such as CrimethInc., as a viable means of survival and non-participation in the system. Many anarchists support counter-economics, that is, participating in the "black" illegal market.

Use of alternative currencies is growing, largely due to digital currencies offered on the internet, and availability of software to manage local currency systems like LETS.. Since States cannot collect taxes and revenue through use of alternative currencies they will theoretically lose power to the point of collapse. Some of these alternative currencies are designed to prevent usury, others are designed simply as alternatives to state-issued fiat money, as a hedge against inflation. Thus alternative currencies range from labor-time notes to specie-backed warehouse receipts. Three popular alternative currencies are: community currency, local currency, and time-based currency.

• Albert, Michael Parecon: Life After Capitalism. W. W. Norton & Company (April, 2003). ISBN 1-85984-698-X
• Dolgoff, Sam, editor, The Anarchist Collectives: Workers' Self-Management in the Spanish Revolution. Montreal: Black Rose Books. ISBN 0-919618-21-9
• Dolgoff, Sam The Relevance of Anarchism to Modern Society . Chicago: Charles H. Kerr, 1989.
• Kropotkin, Peter Fields Factories and Workshops (The Collected Works of Peter Kropotkin, V. 9) Black Rose Books (January 1, 1996). ISBN 1-895431-38-7
• Kropotkin, Peter The Conquest of Bread . New York: New York University Press.
• Leval, Gastón Collectives in the Spanish Revolution . London: Freedom Press. ISBN 0-900384-11-5
• G.P. Maximoff, Program of Anarcho-Syndicalism. (extract from his Constructive Anarchism, published in English in 1952; this section is not included in the only edition of the work now in print.) Sydney: Monty Miller Press, 1985
• Proudhon, Pierre What Is Property? (B. Tucker, translator). Cambridge University Press. ISBN 0-521-40556-4

• Open Source Currency - article by Douglas Rushkoff on The Feature Archives
• The Future of Payment Systems - discussion paper by Bernard Lietaer (the chapter on Complementary Currency Systems starts on page 23)

• currency
• economics
• free store
• free trade
• fair trade
• Inclusive Democracy
• safe trade
• commodity markets
• market share
• supply and demand
• time-based currency

• anarchism
• autonomism
• capitalism
• marginalism
• anarcho-communism
• mutualism
• communism
• anarcho-syndicalism
• syndicalism
• primitivism
• EcoCommunalism

• Labor theory of value
• Subjective theory of value
• General equilibrium
• Austrian school
• Community-based economics
• Anthropological theories of value

• Karl Marx
• David Ricardo
• Michael Albert
• Robin Hahnel
• Pierre-Joseph Proudhon
• Benjamin Tucker
• Peter Kropotkin
• Alexander Berkman
• Alfie Kohn
• Silvia Federici

• Complementary Currencies
• Helger Lipmaa's links on electronic cash
• NeuMoNe (The Neutral Money Network)
• LETS Systems
• OpenMoney Project

• Institute for Social Ecology
• Infoshop.org on Money & Economics
• Participatory Economics
• Libertarian Communist Library Economics Section
• The Alternatives To Wall St. Project and Democratic Retirement Systems.

• Dollars & Sense - "The Magazine of Economic Justice"
• Left Business Observer - "accumulation & its discontents"
• Left Turn - "Notes from the Global Intifada"
• Financial Sense
• Industrial Workers of the World - Industrial Worker newspaper