Page - 116 - in Otto Bauer (1881–1938) - Thinker and Politician

116 chapter 3 commodityandmoneyexchangeinthesocialisteconomy–theirgoalwasnot tomaximiseprofits,buttoexpandproduction.85 BaueradoptedHilferding’s statementswithminor reservations, towhich I shall return later.86Hewasconvincedthat theSovietUnionhadassumedthe roleof a central planner andaccomplishedeconomic transformations in the spirit of socialism.87 This explainswhy he attached somuch importance to rationalisationprocessesintheussrandobsessivelyclungtotheideathatonly theworldrevolutioncouldendcapitalismforgood.Thisclearlydistinguished himfromthe revisionists.Whathehad incommonwith them,however,was his belief that there couldbenoquestionof a sudden transition fromcapit- alismto socialism in theeconomy.As late as 1928, hedefended themodel of amixed economywhereby economic decisions aremadeby representatives ofcartelsandthegovernmentat jointconferences (Iwilldiscuss this inmore detail inChapter5).88Bauerprefiguredtheso-calledconvergencetheory that wouldbecomepopularinthe1970sandwhoseproponentswouldincludeJohn KennethGalbraith,WalterBickingham,PitrimSorokinandRaymondAron.Its keyconceptalludedtoaconvergencebetweencapitalismandsocialismthanks tothescientific-technologicalrevolution.Convergencetheoryalsorecommen- ded the creation of amixed socio-economic system that unites positive ele- mentsofbotheconomicmodels. Toconcludemyobservations, Iwould like tociteanother interestingcom- mentofBauer’s.Althoughhebelievedthattheprocessofrationalisationwould eventuallyleadtoasocialisteconomy–afashionableideaamongSocialDemo- crats at the time–another popular viewwas alien tohim: the idea that the economic goal of socialismwould beproduction for themarket, but not for profit.According toBauer, socialismwouldnot raise thestandardof livingby modifying thedistributionof surplusvalue (whichmustbeused foraccumu- 85 TheworksofLuxemburgandBukharinalsocontainthenotionofmoneylessexchangein thesocialisteconomy. 86 SeeBauer1931.Bauerbrokewiththenotionof‘growingintosocialism’ofthecapitalisteco- nomyundertheimpressionofNaziGermany’sarmamentpoliciesinthemid-1930s.Note, however, that thiswork of Bauer’s containedoriginal studies of theproblems concern- ingcycles inagriculture,cycles in theproductionofgold,cycles in thewareconomy, the influenceofthecreditsystemuponthemodificationofthecourseofcycles,andtherela- tionshipbetweenprofits,prices,andwages.Furthermore, itboastedhisownformulation of the ‘lawoftherateofprofit’.MichaelR.Krätkediscussesthesequestionscomprehens- ivelyandtransparently–seeKrätke2008,pp. 173–8. 87 SeeBauer1976p,p. 117. 88 CompareMattl 1985,p.95.SeealsoBauer1976q,p.375.