Einstein the pinko

While making no profound exhibition of economic theory, Albert Einstein presented a thoughtful argument for the establishment of a socialist economy. In so doing, he openly identified the contradictions inherent in both capitalism and popular democracy, and socialism and private freedom, advocating that the problems of planned economies be discussed openly. His essay appeared in the inaugural May 1949 Monthly Review:

Private capital tends to become concentrated in few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of smaller ones. The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate the electorate from the legislature. The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights.

Reinforcing the weakness of labor, capitalist economies produce a constant supply of unemployed:

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.

Boldly calling for the creation of a planned socialist economy, Einstein squarely identified the contradictions to personal freedom inherent in such a model, calling on further discussion to overcome the contradictions:

Nevertheless, it is necessary to remember that a planned economy is not yet socialism. A planned economy as such may be accompanied by the complete enslavement of the individual. The achievement of socialism requires the solution of some extremely difficult socio-political problems: how is it possible, in view of the far-reaching centralization of political and economic power, to prevent bureaucracy from becoming all-powerful and overweening? How can the rights of the individual be protected and therewith a democratic counterweight to the power of bureaucracy be assured?

Clarity about the aims and problems of socialism is of greatest significance in our age of transition.

Still reading? You haven't called my name in to Homeland Security yet? Read more interesting remarks on capitalism by Pope John Paul II in an earlier People Get Ready post.