Tag Archives: postcapitalism

Questioning capitalism

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Since the heyday of McCarthyism, any suggestion that capitalism is flawed has been met with overt hostility. In the United States, capitalism has become more a religion than an economic system.

There’s recently been much ado about millennials preferring socialism to capitalism, but what many commentators are overlooking is that people aren’t railing against markets, they’re sick of living with “cancer as the model of our social system.” You can wrangle definitions, but at the end of the day capitalism isn’t the only way to have a market.

Citizens from all over the political map see problems with increasing economic disparity but are laying the problems at the feet of different political scapegoats. The left blames the rich, and the right targets government as the source of their woes. If we take a step back and look at the situation, a clearer picture emerges. The collusion of big government and big business has formed one of the strongest corporatist government/economic hybrids the world has ever seen, excluding perhaps the Dutch East India Company.

A comic I blatantly stole from the internet. I can't read the signature, so if it's yours I can take it down if you don't like it here.

A comic I blatantly stole from the internet. I can’t read the signature, so if it’s yours I can take it down if you don’t like it here.

In the richest country the world has ever known, why are there people dying because they can’t afford their medicine while billionaires have so much money they don’t know what to do with it all? I don’t believe that taxing the rich is the answer. Rethinking our economic system is. As one person said, “If you’re talking about wealth redistribution, you’re already too late.”*

Capitalism as it’s currently practiced in the United States, where “all animals are equal, but some animals are more equal than others,” is reaching a breaking point. Cutting back federal programs could allow subsidiarity to guide more tailor-made policies crafted at a local level. Even environmental protection can be carried out as compacts between states as has been done with the Regional Greenhouse Gas Initiative (RGGI). Our current reliance on the federal government for regulations has led to a regulatory monoculture that allows national and international megacorps to grow out of control. This would be a lot less likely if companies had to meet 50 different sets of business regulations or even more in state’s that don’t restrict municipal regulations through use of the Dillon Rule.

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In 1888, Benjamin Tucker defined two forms of socialism: state socialism, and what is today known as anarcho-socialism. His essay reads as a prophecy of the horrors committed by the USSR in it’s pursuit of “equality.” It also shows that even 130 years ago, socialism didn’t have one “correct” definition. A lot of the tension in US politics right now is from people using the same words to mean different things. In a living language such as English, this isn’t unexpected. If we spent a little more time listening before opening our own mouths, we might find we have more in common than we think.

As someone who grew up as a devotee of free market capitalism, I’ve grown more and more suspicious that any one economic ideology is really suited for something as complex as human society. Maybe capitalism can be reformed, but dismissing alternatives out of hand is not a responsible way forward when we’re discussing something that so greatly influences the outcomes of people’s lives. No one is suggesting Soviet-style socialism, so conservatives should stop using the USSR as a bogeyman to distract from good-faith conversations regarding postcapitalism. Capitalism served us well for a time, but that doesn’t mean it’s the end of economic evolution. As they say, “Insanity is doing the same thing over and over again and expecting different results.” Capitalism as it is has failed marginalized groups as it was designed for wealthy white people. This is evident in prison slavery and the continued existence of tipping for service work in the United States. I think we can do better for a solarpunk future.

Are you critical of capitalism? Do you still believe that markets are an effective tool for managing scarce resources, or have you seen something else that could help us manage those things that still can’t be produced in abundance? Let us know below!


* I heard this attributed to the CEO of Mondragon, but can’t seem to find it anywhere, so consider it apocryphal for the time being. It might originally be in Spanish or Basque, so if anyone out there has seen the original, let me know and I’ll update this article.

A Better Way to Pay

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As Adam Flynn said back in 2014, solarpunk takes infrastructure as a form of resistance. One of the biggest pieces of infrastructure that people interact with on a daily basis is payment systems. Payments aren’t as visible roads, or as tangible as housing, but decentralized, democratic payments are an important part of ensuring a brighter future.

We’re at a turning point for money. Since the middle ages, money has been controlled by the nation-state through fiat currency. The first experiments with digital-first money started in the 1980s, and we have seen an explosion in the availability of cryptocurrencies since the Bitcoin whitepaper was released in 2009. While Bitcoin hasn’t lived up to its original goal of being a replacement for fiat currency, it did revolt against the idea that only the state can create money.

Nation-states are now looking into developing crypto-fiat hybrids, and large corporate actors like Facebook are developing their own cryptocurrencies as well. The additional pressure of countries considering bans on cryptocurrencies that shield user identities makes me feel that governments see the danger that a truly decentralized monetary system would pose to their monopoly on power.

Brett Scott at Roar wrote about gentrification of payments from centralized issuers, “Put bluntly, digital payment facilitates a vast new frontier of financial surveillance and control, while also exposing users to new risks not present in the cash infrastructure.” He points out that the current trend for countries to emphasize digital (fiat) money over cash puts people’s finances increasingly into the hands of a small number of banks and state actors.

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I’ve previously touched on the subject of designing appropriate incentives into a monetary system, but for now I’m going to focus on how true digital cash could work. Bitcoin is the opposite of private since every transaction ever made with Bitcoin is recorded to its public ledger. Privacy coins allow for transactions to remain private by being recorded to the blockchain with the details obfuscated to all but those who performed the transaction. This has major benefits, particularly for the fungibility of a currency, which is a fancy way of saying that every unit of the money is created equal. For completely public blockchains like Bitcoin, certain Bitcoins may become “stained” due to their use in criminal activities in the past, meaning they may become harder to trade or spend than a “clean” Bitcoin. There is no such distinction between the status of a specific unit of Monero, for instance, since its past is unknown. The MimbleWimble protocol is a new blockchain which greatly simplifies the privacy aspects of a blockchain resulting in less power and data consumption.

The problem with most cryptocurrencies right now, however, is that they typically use what is called Proof of Work to verify transactions on the chain. Proof of Work burns large amounts of energy in an effort to “prove” the validity of the blockchain. Various other schemes have been developed to secure blockchain networks including Proof of Stake, Delegated Proof of Stake, and Proof of Cooperation. Proof of Cooperation was developed for FairCoin to enable a less energy-intensive verification method for blockchains. I think that a Proof of Cooperation-based MimbleWimble coin could provide the privacy and lower energy consumption that would be desirable for digital cash.

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This digital cash would restore the peer-to-peer nature of cash and avoid the data-mining perils of current digital payment companies like Visa or PayPal. It is still dependent on computing technology to work, which makes me feel like it would be less inclusive than actual cash. In an increasingly digital-first world, however, thoughtfully-designed cryptocurrencies will be more inclusive than the options designed by corporations or governments. For more on the subject of post-capitalist money, check out In each other we trust: coining alternatives to capitalism by Jerome Roos.

Money is often considered a taboo subject, but feel free to let us know your thoughts below. How do you think a separation of money and state could be liberating?

The Rules: Capitalism, UBI, and the Blockchain

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The Rules Blog recently posted an excellent piece about the relationship between extractive capitalism, universal basic income (UBI), and blockchain technologies. Climate change, pollution, and exploitation of the workforce are largely a function of the incentives baked into the current version of centralized currency and capitalism that we have today. Blockchain technology and cryptocurrencies offer a beacon of hope that by wresting control of money away from centralized governments and big banks we can remake the economy in a way that serves the people instead of the current system where people serve the economy.

While governments dicker about the merits of UBI and small-scale experiments are starting in some jurisdictions, the blockchain community is already developing some cryptocurrencies with UBI built in. The people writing at the Rules Blog have connections to one of the solutions, Circles, but many others exist such as Manna* and UBU. A short list can be found in this Reddit post.

As I mentioned before, the best chance for UBI in the United States is the FairTax. I think that circumventing the ponderous bureaucracy of government will probably result in a more expedient and fair system than anything we would get from Washington. The other advantage of blockchain-based systems is that they will be truly international and not locked down by the draconian laws of any one given government.

What do you think? Is blockchain over-hyped? Is it the next big thing? Sound off below, and thanks for visiting!


*Affiliate link – I may receive extra Manna if you sign up for the Manna UBI project through this link