Berlinpaper | Page 5

Let us summarise key features of our conception of mature socialism: 1. 2. 3. The economy is based on the deliberate and conscious application of the labour theory of value as developed by Adam Smith and Karl Marx. It is a model in which consumer goods are priced in terms of the hours and minutes of labour it took to make them, and in which each worker is paid labour credits for each hour worked. The consistent application of this principle eliminates economic exploitation. Industry is publicly owned, run according to a plan and not for profit. Retail enterprises for example, work on a break-even rather than profit making basis. We envisage the transition to publicly owned enterprises as being a gradual process that will occur after rather than before the abolition of the wages system. Decisions are taken democratically, at local, national and Union levels. This applies in particular to decisions about the level of taxation and state expenditure. Such democratic decision making is vital to prevent the replacement of private exploitation with exploitation by the state. In addition we take seriously Marx’s aphorism that the liberation of the working classes must be the work of the working classes themselves. This is reflected in our advocacy of direct participative democracy rather than cabinet or party government and also affects our philosophy of how a transition to socialism has to take place. Instead of the old Social Democratic emphasis on the direct action of the state in nationalising and taking over private companies, we advocate the establishment of positive legal rights for labour. These rights will, when collectively exercised by workers, bring to an end the exploitation of labour by capital. 2 Money and exploitation The European economy will still based on money at the point at which the socialist movement comes to power. In Capital, Marx showed how money was at the root of the evils of capitalism. The essence of capitalism is to start out with a sum of money at the beginning of the year and end up with a larger sum at the end. Marx denoted this by M->M’ where M might be £”£” 1,000,000 for example and M’=£”£” 2,000,000. Transition to 21st Century Socialism in the European Union 5