Beyond the Profits System: Possibilities for a Post-Capitalist Era

by Harry Shutt

While many have claimed that no one could have foreseen the financial crisis, Harry Shutt was predicting just such a collapse as far back as 1998 in his book, The Trouble With Capitalism. In Beyond the Profits System, Shutt offers a radically different analysis to the mainstream, establishment commentators who have struggled to come to terms with the crisis. Arguing that we need to move away from a system based on compulsive addiction to growth and obsession with the profit motive, towards a collectivist, more humane economic mode, the book provides not merely a comprehensive background to the flawed ideologies of that precipitated the collapse, but also a radical, though realistic, way forward in light of the catastrophe.

192 pages, Hardcover

First published February 11, 2010

About the author

Harrry Shutt was educated at Oxford and Warwick universities. He worked for six years in the Development and Planning Division of the Economist Intelligence Unit (EIU). He then moved to the Research Department of the General and Municipal Workers’ Union (1973-76) and subsequently became Chief Economist at the Fund for Research and Investment for the Development of Africa (1977-79). Since then he has been an independent economic consultant.

Reviews

[David · Rating 4 out of 5]

It's a short book (< 200 p.) Written in non-technical English, it gives an economist's explanation of the dynamics of capitalism which leads to economic crises (which will tend to become more problematic) and other social / survival crises. There's a lot of info, but it's not dry or dull. A major theme is capitalism's unending hunger for more production, more markets and using elite influence to minimize limitations on exploiting every resource, manipulating every consumer, and generally pushing all boundaries until it crashes. He discusses the various areas which are affected including medicine, politics, environment and developing nations.

He believes in an "evolutionary" approach to escaping the problems. That is, change beginning through the existing governmental and legal structures - although he realizes these would need to be modified to allow more majority rule and less elite dominance in order to make all the necessary changes. At least in those countries which have elections that aren't structured to favor the elite, it is in theory possible to legislate structural changes. But, among other issues, Shutt has told us that we need to make changes on an international scale, so even if countries with fair elections make changes, countries which don't have genuine elections could hold back international changes. And in the US, the biased system (Electoral College, two-Senators-per-state, gerrymandering, voter suppression, big money in politics, etc.) will make it hard to make any changes. Just in order to eliminate the biasing mechanisms would be very difficult because of the high hurdles required to amend the Constitution. Under other circumstances, we could argue the pros and cons of attempting to work within these systems, and the pros and cons of experiencing the problems of the profit system for a longer period of time as a result. However, we are speeding toward a time of crises - climate, economic and intra-national and international conflicts which wil result from the impacts of the other crises. I doubt we have time for "evolution."

Shutt suggests that as the crises get worse, those in power may come to appreciate the need for change (although he doesn't promise that they will.) It's essential to be clear: Shutt's proposed changes would end having a social layer of super rich people with great economic and political power. As best as I understand history, elites may allow less extensive reforms, but (aside from rare individuals) do not come to see the sense in eliminating their own social class. Even to accept changes such as the New Deal, they need to feel their social class is at risk if they don't allow some reforms. In the 1930's, the rich felt at risk because of the radicalized labor union movement, and large Socialist and Communist parties. I think it's a serious weakness in Shutt's presentation that he doesn't argue for the need for a radicalized union movement and other mass organizations to push for the his changes and be ready to take needed action if the system doesn't.

Shutt presents an interesting set of proposals for how the post-capitalist society should be constructed. Whether or not Shutt's evolutionary approach or particular proposals are the right choice, they may stimulate thinking on what we should be doing. The changes he tells us are necessary are far beyond anything you've heard from mainstream sources, both in domestic and international areas. Each reader can consider them, think over Shutt's proposals and alternatives, and then look at Shutt's path forward and other possible paths.

[รพีพัฒน์ อิงคสิทธิ์ · Rating 3 out of 5]

The profit maximization scheme has many flaws and these may lead to the crisis. However, this book proposals are far to be called 'beyond profit maximization' because most of ideas are similar to Marxist utopia.