The Rudolf Steiner Archive

23. Proposals for Socialization

Flyer, February 1919

Term:

[ 1 ] 1. The essence of the socialization of the economy is that the organization of production and sales are regulated in accordance with the economic laws inherent in them, and that no "rights" or powers of authority are involved in the resulting economic organism. All "rights" are exercised by the political organism, which is equal to the economic organization and is based on the equality of all men before the law. All intellectual achievements, including technical ideas, are to be placed under the free, individual administration of a third, equal intellectual organism.

[ 2 ] 2. The representatives of the economic organism shall be the elected members of the associations established on the basis of the classification of occupations and the distribution of labor. Representatives of the political organization may be elected on the basis of universal, equal (secret) suffrage. Representatives of the spiritual organization shall be the personalities placed by circumstances at the head of the individual spiritual branches. Delegations elected from the representatives of each of the three bodies serve to connect them. (The three bodies stand side by side like three relatively independent states that organize their common affairs through envoys.)

Practical implementation:

[ 3 ] 3. The transfer of branches of the economy from the present to the future state shall be effected with due regard to the present economic condition, in such a manner that all factors (employers and employees in every form) shall participate in the fundamental (constituent) reorganization, and that the present possible economic organization shall be established on opportunistic conditions.

[ 4 ] 4. The new economic order thus sought must under no circumstances lead to an interruption of consumption by breaking off economic continuity.

[ 5 ] 5. Everything that intervenes in the economic organism as a law that is the same for all people (such as accident prevention, damage through usury and so on) is subject to the powers of the political organization. The general taxes shall be expenditure taxes (which is in no way to be confused with indirect taxes). Revenues as such do not become taxable; they become so at the moment when the public has an interest in them, i.e. when they are transferred into circulation.

Branches of the economy:

[ 6 ] The following can be considered as the most necessary economic sectors to which point 3 should be applied immediately:

1. Mining
2. Iron
3. Electricity
4. Hydropower and its land
5. Gas and water supply
6. Aeronautics
7. Trams; all types of roads
8. Canalization and canal shipping
9. Chemical industry
10. Grain growing and grain processing
11. Sugar industry, brandy and so on
12. Tobacco industry
13. Everything relating to the cultivation of land (whereas the ownership of land belongs to the political body)
14. Insurance
15. Money institutions

The peace treaty

[ 7 ] It is to be effected in such a way that representatives of the three corporations negotiate with foreign countries from the German side with independent mandates emanating entirely from their corporation. A unilateral socialization based on aspects other than those mentioned is also impracticable for Germany for reasons of foreign policy. On the other hand, a justification of foreign policy for the establishment of the three corporations is quite promising.