Mutualism
Mutualism: A system of fair and equitable exchange, in which individuals or groups bargain with one another, trading goods and services without profiteering or exploitation
The anarchist idea of social solidarity has supported different types of cooperative actions. On one end, this belief has inspired the concept of pure communism, while on the other, it has led to more moderate ideas like mutualism, linked to Pierre-Joseph Proudhon. Proudhon’s version of libertarian socialism sits between individualist and collectivist anarchism, sharing similarities with American individualists such as Josiah Warren. (see below)
In his work, What Is Property? published in 1840, Proudhon famously claimed that "Property is theft," criticizing an economic system that exploits through capital accumulation. However, unlike Marx, Proudhon did not reject all forms of private property; he made a distinction between property and what he referred to as "possessions." He admired small communities of peasants, craftsmen, and artisans, especially Swiss watchmakers, who traditionally operated on mutual cooperation. Proudhon aimed to create a system through mutualism that would foster property ownership without exploitation, promoting social harmony. In this framework, interactions would be voluntary and beneficial, eliminating the need for government regulation. Proudhon’s supporters put these ideas into action by establishing mutual credit banks in France and Switzerland. These banks offered affordable loans to investors and maintained interest rates only high enough to cover operational costs, ensuring no profit was generated.
On May 18, 1827, Warren put his theories to the test by establishing an experimental "labor for labor store" which locals soon began calling the "Time Store." It was located in Downtown Cincinnati, which facilitated trade by notes backed by a promise to perform labor. This was the first store to use a labor-for-labor note.
The Time Store worked as follows: every item had a clear price tag, reflecting its cost price plus a nominal percentage for expenses like shipping, shrinkage, rent, etc., typically around four cents on the dollar. The customer picked out what they needed with minimal help from the salesperson and paid in standard currency. The store owner then calculates the time spent assisting the customer, consulting a clock for accuracy. In exchange, the customer gives a labor note, formatted something like this: "Due to Josiah Warren, on demand, thirty minutes in carpentry work – John Smith," or, "Due to Josiah Warren, on demand, ten minutes of sewing – Mary Brown."
Josiah Warren is regarded as the first American philosophical anarchist; he took an active part in Robert Owen's experimental community at New Harmony, Indiana, in 1825–1826. Later, Warren rejected Owenism, giving birth to the Time Store Cooperative Movement (historically known as "Equity Movement"). His own ideas were partly implemented through the establishment of the Cincinnati Time Store, followed by the founding of the Utopian Community of Modern Times. In his 1863 work titled True Civilization, Warren outlines his philosophy founded on the "sovereignty of every individual."
Case Study: Food Not Bombs
Food Not Bombs is a global movement that provides vegan and vegetarian meals to anyone in need. Volunteers are driven by the belief that no one should go hungry when so much food is available. They also aim to cut down on food waste by using typically discarded ingredients. The organisation operates in regions such as Africa, the Americas, Asia, Australia, Europe, and the Middle East. Each branch is independently run and engages in group decision-making for the greater good of the network. Many people have benefitted from their efforts, including activists during the Orange Revolution in Ukraine (2004-2005), those affected by Hurricane Katrina in New Orleans (2005), and participants in the Occupy Wall Street protests in 2011. Since 2021, Food Not Bombs London has been offering free vegetarian meals on the first and third Saturday of every month at their stall outside Seven Sisters underground station.
Mutualism
Mutualism's core principles
Reciprocity
Proudhon believed that a free market should be based on reciprocity, without coercion.Mutual exchange
Proudhon believed that the value of a product or service should reflect the cost of its production.Voluntary cooperation
Proudhon believed that individuals and communities should cooperate voluntarily and mutually respect each other.Fair exchange
Proudhon believed that goods and services should be exchanged fairly.Mutualism's goals
End exploitation
Proudhon believed that mutualism would end the exploitation of labor and the arbitrary domination of one person by another.Promote equality
Proudhon believed that mutualism would promote equality and fairness in economic relations.Eliminate hierarchical power structures
Proudhon believed that mutualism would eliminate hierarchical power structures and the need for a state.
Proudhon also envisioned a nationalistic view of liberty, where local citizens would be treated better than foreigners in all dealings.
However, his concept of liberty had a strong male focus. Feminists would label it as patriarchal since he viewed women as inferior and subordinate to men.