Property Is Theft!

by Pierre-Joseph Proudhon

  Historian Robert Tomes notes that Proudhon was “the greatest intellectual influence on French socialism” whose “ideas had durable influence on the working-class elite”12 while Julian P. W. Archer considered him “the pre-eminent socialist of mid-nineteenth century France.”13 Sharif Gemie recounts that for many workers in France “Proudhon was the living symbol of working class self-emancipation.”14 His ideas “anticipated all those later movements in France which, like the revolutionary syndicalists during the late nineteenth century and the students of 1968, demanded l’autogestion ouvrière. Their joint demand was that the economy be controlled neither by private enterprise nor by the state (whether democratic or totalitarian), but by the producers.”15 Even Friedrich Engels had to admit that Proudhon had “a preponderating place among the French Socialists of his epoch.”16

  The aim of this anthology is to show why Proudhon influenced so many radicals and revolutionaries, and why Proudhon should be read today. His work marks the beginning of anarchism as a named socio-economic theory and the libertarian ideas Proudhon championed (such as anti-statism, anti-capitalism, self-management, possession, socialisation, communal-economic federalism, decentralisation, and so forth) are as important today as they were in the 19th century.

  PROUDHON’S IDEAS

  ANARCHISM DID NOT spring ready-made from Proudhon’s head in 1840. Nor, for that matter, did Proudhon’s own ideas! This is to be expected: he was breaking new ground in terms of theory, creating the foundations upon which other anarchists would build.

  His ideas developed and evolved as he thought through the implications of his previous insights. Certain ideas mentioned in passing in earlier works (such as workers’ self-management) come to the fore later, while others (such as federalism) are discussed years after What Is Property?. His ideas also reflected, developed and changed with the social and political context (most notably, the 1848 revolution and its aftermath). However, “contrary to persistent legend, Proudhon was not the egregious eccentric who continually contradicted himself... Proudhon had a consistent vision of society and its need... which revolves around his desire to instil a federal arrangement of workers’ associations and to instil a public regard for republican virtue.”17

  Regardless of the attempts by both the propertarian right and the authoritarian left to reduce it simply to opposition to the state, anarchism has always presented a critique of state and property as well as other forms of oppression.18 All are interrelated and cannot be separated without making a mockery of libertarian analysis and history:Capital... in the political field is analogous to government... The economic idea of capitalism, the politics of government or of authority, and the theological idea of the Church are three identical ideas, linked in various ways. To attack one of them is equivalent to attacking all of them... What capital does to labour, and the State to liberty, the Church does to the spirit. This trinity of absolutism is as baneful in practice as it is in philosophy. The most effective means for oppressing the people would be simultaneously to enslave its body, its will and its reason.19

  Proudhon’s two key economic ideas are free credit and workers’ associations. To quote economist John Kenneth Galbraith’s excellent summary:Scholars have regularly assigned Proudhon a position of importance in the history of socialism, syndicalism and anarchism but not in the history of economic theory. It is a distinction without merit. Two ideas of influence can be found in the modern residue of Proudhon’s theories. One is the belief, perhaps the instinct, that there is a certain moral superiority in the institution of the co-operative. Or the worker-owned plant. When farmers unite to supply themselves with fertilisers, oil or other farm supplies, and consumers to provide themselves with groceries, the ideas of Proudhon are heard in praise. So also when steel workers come together to take over and run a senescent mill... And Proudhon is one among many parents of the continuing faith in monetary magic—of the belief that great reforms can be accomplished by hitherto undiscovered designs for financial or monetary innovation or manipulation.20

  In terms of politics, his vision was one of federations of self-governing communities. He repeatedly stressed the importance of decentralisation and autonomy to ensure effective liberty for the people. “Among these liberties,” Proudhon argued, “one of the most important is that of the commune.” A country “by its federations, by municipal and provincial independence... attested its local liberties, corollary and complement of the liberty of the citizen. Without the liberty of the commune, the individual is only half free, the feudal yoke is only half broken, public right is equivocal, public integrity is comprised.”21

  He called this socio-economic vision “mutualism,” a term Proudhon did not invent.22 The workers’ organisations in Lyon, where Proudhon stayed in 1843, were described as mutuellisme and mutuelliste in the 1830s. There is “close similarity between the associational ideal of Proudhon... and the program of the Lyon Mutualists” and it is “likely that Proudhon was able to articulate his positive program more coherently because of the example of the silk workers of Lyon. The socialist ideal that he championed was already being realised, to a certain extent, by such workers.”23

  In short, Proudhon “was working actively to replace capitalist statism with an anti-state socialism in which workers manage their own affairs without exploitation or subordination by a ‘revolution from below.’”24

  ON PROPERTY

  Proudhon’s analysis of property was seminal. The distinction he made between use rights and property rights, possession and property, laid the ground for both libertarian and Marxist communist perspectives. It also underlay his analysis of exploitation and his vision of a libertarian society. Even Marx admitted its power:Proudhon makes a critical investigation—the first resolute, ruthless, and at the same time scientific investigation—of the basis of political economy, private property. This is the great scientific advance he made, an advance which revolutionises political economy and for the first time makes a real science of political economy possible.25

  Proudhon’s critique rested on two key concepts. Firstly, property allowed the owner to exploit its user (“property is theft”26). Secondly, that property created authoritarian and oppressive social relationships between the two (“property is despotism”). These are interrelated, as it is the relations of oppression that property creates which allows exploitation to happen and the appropriation of our common heritage by the few gives the rest little alternative but to agree to such domination and let the owner appropriate the fruits of their labour.

  Proudhon’s genius and the power of his critique was that he took all the defences of, and apologies for, property and showed that, logically, they could be used to attack that institution. By treating them as absolute and universal as its apologists treated property itself, he showed that they undermined property rather than supported it.27

  To claims that property was a natural right, he explained that the essence of such rights was their universality and that private property ensured that this right could not be extended to all. To those who argued that property was required to secure liberty, Proudhon rightly objected that “if the liberty of man is sacred, it is equally sacred in all individuals; that, if it needs property for its objective action, that is, for its life, the appropriation of material is equally necessary for all.”28 To claims that labour created property, he noted that most people have no property to labour on and the product of such labour was owned by capitalists and landlords rather than the workers who created it. As for occupancy, he argued that most owners do not occupy all the property they own while those who do use and occupy it do not own it.

  Proudhon showed that the defenders of property had to choose between self-interest and principle, between hypocrisy and logic. If it is right for the initial appropriation of resources to be made (by whatever preferred rationale) then, by that very same reason, it is right for others in the same and subsequent generations to abolish private property in favour of a system which respects the liberty of
all rather than a few (“If the right of life is equal, the right of labour is equal, and so is the right of occupancy.”) This means that “those who do not possess today are proprietors by the same title as those who do possess; but instead of inferring therefrom that property should be shared by all, I demand, in the name of general security, its entire abolition.”29

  For Proudhon, the notion that workers are free when capitalism forces them to seek employment was demonstrably false. He was well aware that in such circumstances property “violates equality by the rights of exclusion and increase, and freedom by despotism.” It has “perfect identity with robbery” and the worker “has sold and surrendered his liberty” to the proprietor. Anarchy was “the absence of a master, of a sovereign” while proprietor was “synonymous” with “sovereign” for he “imposes his will as law, and suffers neither contradiction nor control.” Thus “property is despotism” as “each proprietor is sovereign lord within the sphere of his property”30 and so freedom and property were incompatible:The civilised labourer who bakes a loaf that he may eat a slice of bread, who builds a palace that he may sleep in a stable, who weaves rich fabrics that he may dress in rags, who produces every thing that he may dispense with every thing,—is not free. His employer, not becoming his associate in the exchange of salaries or services which takes place between them, is his enemy.31

  Hence the pressing need, if we really seek liberty for all, to abolish property and the authoritarian social relationships it generates. With wage-workers and tenants, property is “the right to use [something] by his neighbour’s labour” and so resulted in “the exploitation of man by man” for to “live as a proprietor, or to consume without producing, it is necessary, then, to live upon the labour of another.”32

  ON EXPLOITATION

  Proudhon’s aim “was to rescue the working masses from capitalist exploitation.”33 However, his analysis of exploitation has been misunderstood and, in the case of Marxists, distorted. J.E. King’s summary is sadly typical:Marx’s main priority was to confront those ‘utopian’ socialists (especially... Proudhon in France) who saw inequality of exchange as the only source of exploitation, and believed that the establishment of equal exchange in isolation from changes in production relations was sufficient in itself to eliminate all sources of income other than the performance of labour... [Marx proved that] exploitation in production was sufficient to explain the existence of non-wage incomes.34

  Yet anyone familiar with Proudhon’s ideas would know that he was well aware that exploitation occurred at the point of production. Like Marx, but long before him, Proudhon argued that workers produced more value than they received in wages:Whoever labours becomes a proprietor... And when I say proprietor, I do not mean simply (as do our hypocritical economists) proprietor of his allowance, his salary, his wages,—I mean proprietor of the value he creates, and by which the master alone profits... The labourer retains, even after he has received his wages, a natural right in the thing he has produced.35

  Property meant “another shall perform the labour while [the proprietor] receives the product.” Thus the “free worker produces ten; for me, thinks the proprietor, he will produce twelve” and thus to “satisfy property, the labourer must first produce beyond his needs.”36 This is why “property is theft!”37 Proudhon linked rising inequality to the hierarchical relationship of the capitalist workplace:I have shown the contractor, at the birth of industry, negotiating on equal terms with his comrades, who have since become his workmen. It is plain, in fact, that this original equality was bound to disappear through the advantageous position of the master and the dependence of the wage-workers.38

  Thus unequal exchange did not explain exploitation, rather the hierarchical relationship produced by wage-labour does. This can be seen from another key aspect of Proudhon’s analysis, what he termed “collective force.” This was “[o]ne of the reasons Proudhon gave for rejecting ‘property’ [and] was to become an important motif of subsequent socialist thought,” namely that “collective endeavours produced an additional value” which was “unjustly appropriated by the proprietaire.”39 To quote Proudhon:It is an economic power of which I was, I believe, the first to accentuate the importance, in my first memoir upon Property [in 1840]. A hundred men, uniting or combining their forces, produce, in certain cases, not a hundred times, but two hundred, three hundred, a thousand times as much. This is what I have called collective force. I even drew from this an argument... that it is not sufficient to pay merely the wages of a given number of workmen, in order to acquire their product legitimately; that they must be paid twice, thrice or ten times their wages, or an equivalent service rendered to each one of them.40

  Proudhon’s “position that property is theft locates a fundamental antagonism between producers and owners at the heart of modern society. If the direct producers are the sole source of social value which the owners of capital are expropriating, then exploitation must be the root cause of... inequality.” He “located the ‘power to produce without working’ at the heart of the system’s exploitation and difficulties very early, anticipating what Marx and Engels were later to call the appropriation of surplus value.”41

  So even a basic awareness of Proudhon’s ideas would be sufficient to recognise as nonsense Marxist claims that he thought exploitation “did not occur in the labour process” and so “must come from outside of the commercial or capitalist relations, through force and fraud” or that Marx “had a very different analysis which located exploitation at the very heart of the capitalist production process.”42 Proudhon thought exploitation was inherent in wage-labour and occurred at the point of production.43 Unsurprisingly, he sought a solution there.

  ON ASSOCIATION

  Given an analysis of property that showed that it produced exploitation (“theft”) and oppression (“despotism”), the question of how to end it arises. There are two options: Either abolish collective labour and return to smallscale production or find a new form of economic organisation which ensures that collective labour is neither exploited nor oppressed.

  The notion that Proudhon advocated the first solution, a return to precapitalist forms of economy, is sadly all too common. Beginning with Marx, this notion has been vigorously propagated by Marxists with Engels in 1891 proclaiming Proudhon “the socialist of the small peasant or master craftsman.”44 The reality is different: On this issue, it is necessary to emphasise that, contrary to the general image given in the secondary literature, Proudhon was not hostile to large industry. Clearly, he objected to many aspects of what these large enterprises had introduced into society... But he was not opposed in principle to large-scale production. What he desired was to humanise such production, to socialise it so that the worker would not be the mere appendage to a machine. Such a humanisation of large industries would result, according to Proudhon, from the introduction of strong workers’ associations. These associations would enable the workers to determine jointly by election how the enterprise was to be directed and operated on a day-today basis.45

  To quote Proudhon: “Large industry and high culture come to us by big monopoly and big property: it is necessary in the future to make them rise from the association.”46 He did not ignore the economic conditions around him, including industrialisation, and noted in 1851, of a population of 36 million, 24 million were peasants and 6 million were artisans. The remaining 6 million included wage-workers for whom “workmen’s associations” would be essential as “a protest against the wage system,” the “denial of the rule of capitalists” and for “the management of large instruments of labour.”47 Rather than seeking to turn back the clock, Proudhon was simply reflecting and incorporating the aspirations of all workers in his society—an extremely sensible position to take.48

  This support for workers’ self-management of production was raised in 1840 at the same time Proudhon proclaimed himself an anarchist. As “every industry needs... leaders, instructors, superintendents” they “must be chosen from the labourers by
the labourers themselves, and must fulfil the conditions of eligibility” for “all accumulated capital being social property, no one can be its exclusive proprietor.”49

  In subsequent works Proudhon expanded upon this core libertarian position of “the complete emancipation of the workers... the abolition of the wage worker”50 by self-management (“In democratising us,” he argued, “revolution has launched us on the path of industrial democracy”51). Co-operatives 52 ended the exploitation and oppression of wage-labour as “every individual employed in the association” has “an undivided share in the property of the company,” “all positions are elective, and the by-laws subject to the approval of the members” and “the collective force, which is a product of the community, ceases to be a source of profit to a small number of managers and speculators: It becomes the property of all the workers.”53