Silvio Gesell: Beyond Left Versus Right

ABSTRACT Many people think of the range of economic ideas as lying along a linear spectrum with capitalism on one end and communism on the other, otherwise referred to as Left versus Right. This is an artificially narrow framework, which has a variety of harmful consequences. It implies that there are only two possible directions in which we can move in order to solve our problems. It also divides people into two opposing camps, each of which refuses to engage in constructive criticism of their “side.” And it excludes any perspectives, which do not fit within that artificially narrow framework. Silvio Gesell developed an analysis of the problems with the capitalistic status quo, which cannot be located within the Left‐vs‐Right spectrum. If his analysis was correct, the first thing that must be done in order to create the conditions necessary to implement his proposals is to dismantle the framework itself. In order to do this, we must revisit some basic terms and refine our definitions of capitalism, the “free‐market system,” socialism and Marxism. Once we have done so, it becomes clear that, far from being opposed or mutually exclusive, the ideals of free markets and of socialism are in fact compatible and complementary. This is, of course, completely contrary to conventional economic thinking. That does not reflect any analytical shortcomings of Gesell's perspective. Rather it highlights the fact that the framework within which we think about the subject of economics is one of the most important obstacles to finding and implementing the solutions we need to build a more robust, fair and stable economy.