The role of the state in economic life (anarchism): The concept of the state and the economy in anarchism

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:46

The role of the state in economic life and anarchism are mutually exclusive concepts. At present, the role of the state in any economy is obvious. One of the basic principles of anarchism is the absence of coercion of power, the freedom of a person from any kind of coercion, which contradicts the concept of the state. Today, it participates in economic life everywhere, in addition, it uses various methods of regulation.

The state, the economy and anarchism

The role of the state in economic life is denied by anarchism as a whole, as a concept. First of all, because from the point of view of this trend, any state is an exploiter and oppressor even more cruel and sophisticated than any capitalist. The state in his concept is not an abstract entity, but a hierarchy of officials andmilitary, observing, first of all, the will of those who control them, but in no case a single individual.

Anarchism also applies negatively to the market economy that exists in the vast majority of countries. Does not recognize a planned economy (central planning). The economy, according to anarchists, is the production of this or that product, produced according to need, which takes into account the desires of members of society, without outside interference.

Anarchism sees the role of the state as the actions of the most cruel exploiter. The state manages society, relations within it, takes care of the security of the country, ideally it should look after the interests of every citizen, which is not observed in life, and, of course, control economic relations. For this, as mentioned above, various methods are used. Let's take a look at some of them.

Legal

Anarchism denies the state as an instrument of coercion of power, affirms the freedom of man from any kind of coercion. The absolute freedom of a person, not bound by the norms of morality and law, is the main postulate of anarchism. The role of the state in economic life consists of creating a legal framework, which, according to anarchists, restricts human freedom.

The main way to regulate the economy are laws, which coordinate relations between participants in the market. The main role here is played, as it were, by antimonopoly legislation, which should restrain monopolists, laws in support of small andmedium business. All this makes the economy diverse. But, as we know, from the point of view of anarchism, the role of the state in economic life is nothing more than the exploitation of man, the restriction of his rights and freedoms. The same monopolists, through their representatives in the legislature, lobby for any laws that are beneficial to them. Therefore, anarchism denies the state itself as a cruel exploiter.

Financial and economic ways

There are many ways in which the state is able to regulate economic life. Applying them, the state significantly affects both the economy of its country and other countries participating in the process. In the hands of the state, in addition to legal ones, there are financial and economic methods that anarchism denies in principle. These include:

• Taxes. By reducing or increasing their size, the state can significantly influence the commodity producer.
• Monetary policy. This is, first of all, the ability of the state to manage the money supply and loans. Responsibility for its implementation lies with the central bank of the state. Its function is to regulate the interest rate.
• Customs duties. By regulating the introduction of customs duties on goods, raising or lowering them, the state supports its own commodity producer, making his goods more competitive.
• Public investment. This is a kind of support for a project beneficial to the state.

Production and consumption

The role of anarchism inthe economic life of any modern country is difficult to imagine, since it completely denies the market economy, as well as the planned one. He has his own principle of economics, which is based on two basic postulates: federation and autonomy of the masses. That is, certain groups of people (associations, communes) make lists of the needs of a given society, all this is combined together, the need is calculated, in accordance with which the required product is produced. Not to be confused with planning or modern economic programs.

At one time, Prince Kropotkin formulated the principle that consumption is primary, production is secondary. That is, these are not programs or plans drawn up by someone, but a necessary need approved by the “lower classes”. In a modern state, on the contrary, production is primary, consumption is secondary.

Modern economic programs, which are advisory in nature, are a kind of method for regulating economic life.