👉The table of contents so far is here.
Chapter 13: Planned Economy and Working Life
13.1. Labor allocation
The major difference between capitalist market economies and communist planned economies in terms of labor is the presence or absence of labor allocation. In a capitalist market economy, labor relations are structured along market lines (i.e., the labor market), meaning that labor is "freely" bought and sold as a kind of intangible commodity.
As a result, labor surpluses and shortages are commonplace in response to the business cycles inherent in capitalist market economies. Furthermore, because job seekers essentially conduct their own job search—selling their labor as a commodity—so-called mismatches are inevitable.
Economic plans that do not assume a monetary economy are expressed in terms of production volume rather than monetary standards, and are therefore also, in a sense, labor plans. Labor plans are implemented through planned labor allocation. However, in areas outside the scope of the planned economy, labor plans are not formulated, but labor allocation is applied to prevent labor surpluses and shortages.
Therefore, in a planned economy, there is no labor market that may appear "free" but is unstable and random. Instead, a systematic system of labor allocation that assumes unpaid work is established. A good analogy is to think of the allocation of volunteers.
The actual allocation of labor may change depending on the stage of development of a communist society. In the earliest communist societies, the possibility of some regulated labor allocation in order to ensure an adequate labor force cannot be ruled out, but in a fully developed communist society, work will be completely voluntary and more selectable allocation will be implemented.
In any case, under a planned economy, employment agencies are the central labor allocation institutions. Unlike capitalist employment agencies, communist employment agencies are not simply job placement agencies. Job placement services merely provide an opportunity for workers and managers to meet, assuming the existence of a labor market. On the other hand, employment agencies under a planned economy are a structured system that scientifically matches the aspirations and aptitudes of individual job seekers in light of economic plans and the environmental and economic situation, while also coordinating with educational institutions to introduce and allocate suitable jobs. In that sense, labor allocation equals occupational allocation.
If this system functions properly, labor shortages and excesses will be resolved, and people will be able to live close to work, eliminating the need for long commutes. Furthermore, by guaranteeing the introduction of suitable jobs through psychological career counseling, rational career choices will be encouraged.
👉The papers published on this blog are meant to expand upon my On Communism
