Chapter 14.3.

👉The table of contents so far is here.

Chapter 14: Planned Economy and Consumer Life

14.3. Consumer business cooperatives

The main actors in consumer planning are the consumer business cooperatives (CBC) established in each broader local area. While we briefly looked at their internal structure in Chapter 11, let's take a closer look at their organizational structure and activities here.

A CBC is similar to consumer cooperatives (co-ops) under the current system. However, unlike co-ops, it also operates more fixed supply points, making it more functionally similar to distribution capital like supermarkets.

A CBC under a sustainable planned economy is operated non-profit, but it differs from co-op in that residents of the relevant area are automatically registered as members. For example, residents of the A province are automatically registered as members of the A provincial CBC, giving them the right to use its services.

Here, membership means not just being a beneficiary who uses services, but also being the operator of the cooperative. Therefore, a CBC is run with the Members' General Meeting as its highest authority, but because it is logistically difficult for local residents to hold general meetings, the Members' General Meeting is composed of representatives selected by lottery.

The consumption plan, which refers to the three-year economic plan for production and is formulated by the Board of Directors, the responsible operating body of a CBC, is discussed and adopted by the Members' General Meeting. It then officially comes into effect after being approved by the Provincial Commons' Convention, the local people's representative body.

In accordance with this consumption plan, a CBC outsources production to consumer goods production companies that partner with the cooperative. 

An important role of the Board of Directors is to publicly solicit and select partner companies, and environmental sustainability and human safety are the main criteria for selection.

The Board of Directors shall conduct regular inspections to determine whether these standards are being met. As basic information for these inspections, delegates to the Members' General Meeting and monitors selected by lottery on a city, town, or village basis report on the quality of the goods supplied to the cooperative on a monthly basis, and whenever necessary.

If the inspection reveals any problems, the Board of Directors can take necessary measures such as recommending improvements or suspending or terminating the partnership with the production company in question, and to that extent, it can be said that the CBC has supervisory authority over its affiliated production companies.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 14.2.

👉The table of contents so far is here.

Chapter 14: Planned Economy and Consumer Life

14.2. Consumption planning

In the Soviet-style planned economy, there were production plans but no consumption plans. This was because the Soviet-style planned economy was biased toward production, particularly heavy and large-scale industries such as military and military production. As a result, there were noticeable defects in the production and distribution of consumer goods, which contributed to the poor quality of consumer life.

However, the new, sustainable planned economy pays attention to consumption. Consumption is not simply the result of production, but, as Marx pointed out, "it is itself the catalyst for productive activity." A planned economy extends not only to production but also to consumption.

As mentioned earlier, this consumption plan is formulated at the local level, separate from the domestic—and ultimately global—production plan. This is because consumption patterns have local characteristics, and planned local production and consumption that takes these characteristics into account is environmentally sustainable.

The main actors in consumption planning are the Consumer Business Cooperatives, which serve as cooperative consumer organizations established in each local area (such as the Provincial Area or the Zonelet in federal Zone). We will discuss the actual organization in the next section, but here we will provide an overview of the contents of the consumption plan.

This consumption plan sets demand forecasts for standard daily necessities needed for basic food, clothing, and shelter in the form of a three-year plan, taking into account the characteristics of each local area. Criteria for doing so include consideration of the environmental sustainability of products and their safety for the human body.

Such consumption plans come into effect after approval by the local representative body, the Commons' Convention, and serve as guidelines for the production and consumption of consumer goods for the next three years. In accordance with these, orders are placed with production companies that have business partnerships with each Consumer Business Cooperative, and products are supplied.

In a capitalist market economy where commercial mass production takes place, there is a general tendency for overproduction. While there are almost no shortages in normal times, there are large amounts of unsold goods and waste. However, in a communist planned economy, production is carried out in appropriate quantities based on consumption plans based on strict demand forecasts.

 In sustainable consumption plans, emergency supplies are always kept on hand in case of disasters, and the actual demand outlook is overestimated as a policy measure, taking into account the possibility of a sudden major disaster, resulting in a relative overproduction system - a surplus production system.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 14.1.

👉The table of contents so far is here.

Chapter 14: Planned Economy and Consumer Life

14.1. Mode of production and mode of consumption

In the introduction to the Grundrisse der Kritik der Politischen Ökonomie, Marx states that "consumption creates the desire for new production and is thus the prerequisite for production," and points out that "the manner of consumption is produced not only objectively but also subjectively by production." In other words, the mode of consumption also depends on the mode of production.

In this passage, Marx cites an interesting example contrasting hunger satisfied by eating cooked meat with a fork and knife with hunger satisfied by devouring with one's hands, nails, and teeth. However, this example is somewhat inaccurate. This is because the former presupposes that meat and tableware are products, regardless of their form, while the latter suggests the consumption behavior of hunter-gatherers who do not engage in productive activities.

Even in the former example, there is a significant difference in the mode of consumption between when meat and tableware are self-sufficient and when they are mass-produced as commodities. The former corresponds to the consumption pattern of pre-capitalist agricultural societies, while the latter corresponds to the consumption pattern of commodity production societies.

In today's capitalist mode of production, as is well known, the mass production-mass consumption mode, in which mass-produced goods and services are acquired and consumed in exchange for money, has taken root, and people normally purchase mass-produced meat and tableware.

In contrast, in the communist mode of production, where commodity production is abolished, meat and tableware are not produced as commodities, but are supplied free of charge as non-commodities.

Turning to the method of acquisition of products, in a capitalist market economy, products are, in principle, acquired in exchange for money on the market, and ordinary consumers usually provide the monetary compensation earned through wage labor as a means of exchange.

In contrast, in a communist society, wage labor, which commodifies labor power, is abolished, and so labor and consumption are separated. In slogans, it is "from each according to his ability (work), to each according to his needs (distribute)."

Therefore, regardless of the type of work, everyone can acquire the goods and services they need free of charge. In the previous example, each person would be able to obtain as much meat and tableware as they needed.

However, with this type of consumption pattern, there is no restraint like the amount of money on hand, which in a capitalist market economy is also used to limit consumption, and so there is a risk of falling into a "shortage economy" where shortages of goods become chronic, with people monopolizing everything or high-demand items running out. Therefore, in order to avoid such problems, it is essential to take measures to limit the amount of acquisition at the supply end.

This type of consumption pattern is similar to a rationing system, but unlike a rationing system, which limits the types of goods supplied, there is no limit to the types of goods and services supplied, and everyday necessities and services are generally supplied free of charge. However, for unusual luxury or rare items, barter practices will likely be used.

👉The papers published on this blog are meant to expand upon my On Communism.