Cooking the Books 2 – Should tokens make the world go round?
In 2022 Jan Philipp Dapprich, a researcher at a German university, published a paper entitled ‘Tokens make the world go round: socialist tokens as an alternative to money’ in which he argued that ‘non-circulating tokens should be used as an alternative to money for distributing consumer products to the population in a socialist economy’.
That he is talking about a socialist or communist society (terms which he says can be used interchangeably) is clear from how he envisages the production of all goods taking place. The places where they are produced ‘are collectively administered by the people or by institutions accountable on their behalf. Since all firms would share the same owner, there is no need for firms to exchange goods, as the general public would remain the owner of those goods either way’; ‘production units would simply receive raw materials and pass on their finished products, as specified by the plan without paying or receiving payment. There would thus be no need for money as a medium of exchange within the realm of production’; ‘The constraints, benefits and costs of production are to be evaluated in purely physical terms.’
So, he is recognisably talking about what we (and Marx) mean by socialism.
Marx, writing 150 years ago in some private notes published after his death as The Critique of the Gotha Programme, did discuss the possible need for a system of non-circulating tokens (vouchers that would be cancelled after being used to redeem some product) to distribute consumer products in the early days had socialism been established at the time, though he envisaged it eventually being abolished in favour of distribution according to self-determined needs.
Marx may have had a point had socialism been established in 1875 but it wasn’t, so this could be regarded as an academic issue. Dapprich, however, thinks that some token system (not necessarily the one mentioned by Marx) would still be required if socialism were to be established today; in fact he thinks that this should be a permanent feature of a society based on the common ownership and democratic control of the means of production. He goes so far as to describe free access as envisaged by Marx as ‘pie in the sky’.
His argument is that this is unnecessary anyway ‘because the ‘needs principle’ of the higher phase can be sufficiently realised within the token system’. This can be done, he suggests, by the wider provision of free services such as health care and by giving tokens to those unable to work or to work fully. But why? His hidden assumption is that, with free access, there might not be enough to go round and that therefore the consumption of some will need to be limited, even if at a generously high level, so as to ensure that more urgent needs of others are met.
He does mention the argument that ‘since we have seen significant increases in productive capacities since the nineteenth century, during which Marx was writing, perhaps the token system is already outdated’. This is precisely a point we have made but Dapprich dismisses this, rather too offhandedly, as ‘unconvincing’ without saying why.
But whether or not society has the capacity to produce enough consumer products to satisfy likely self-assessed needs is the crux of the matter at issue. If it has, as we contend, then the case for a permanent non-circulating token system falls.
In any event, once common ownership and production directly for use have been established, should there arise some temporary shortage of some products it would be up to those around at the time to settle how to deal with it. Drawing up a blueprint for this now, without knowing the exact circumstances or the preferences of people then, is literally academic.