Pierre-Joseph Proudhon (1809-1865)
Proudhon developed the idea of an economic system he called mutualism . This form of anarchism differentiates between private property — exploiting others — and possessions — the tools of trade. The skilled artisan would enter voluntary economic contracts with others and he (Proudhon did not include women) would also be able to borrow from a non-profit-making credit bank
Pierre-Joseph Proudhon is well-known for his phrase “property is theft,” from his 1840 book, What is Property? He was the first to call himself an “anarchist” and played a significant role in the anarchist movement during the nineteenth century. He thought that privately owned productive resources, insofar as their ownership could always be traced back to some act of arbitrary violence, were all stolen goods.
Proudhon believed that the state was inherently unjust, too, as it provided violent security for the owners of capital and tended to violate the individual freedom of its citizens. In making this case, Proudhon became the first influential political thinker to describe himself as an “anarchist”.
Proudhon famously claimed that “Property is theft,” arguing against a system that exploits people through the accumulation of wealth. However, unlike Marx, Proudhon did not reject all forms of private property. He made a distinction between property and what he termed “possessions.” He admired small communities of peasants, craftsmen, and artisans, particularly Swiss watchmakers, who managed their work through mutual cooperation. Proudhon aimed to create a system of property ownership that would prevent exploitation and foster social harmony through mutualism. In this system, social interactions would be voluntary and mutually beneficial, requiring no government regulation. Proudhon’s supporters attempted to implement these ideas by establishing mutual credit banks in France and Switzerland. These banks offered low-cost loans with interest rates set only to cover operating expenses, ensuring they did not make profits.
Proudhon didn’t completely reject private property. He opposed property used to exploit workers or create inequality. He believed that workers and peasants could own what they needed for their own production. He called this “possessions” to differentiate it from “property.”
Proudhon's most famous work, What Is Property? (1840), criticized both traditional property rights and the idea of collectivisation. He argued for mutualism, a system where production meets needs rather than profits, organised in self-governing communities. In The Federal Principle (1863), he suggested that these communities should work together through ‘federal’ agreements, though the federal state would have limited roles. Proudhon strongly opposed Marx, claiming that Marx's ideas led to authoritarianism. He preferred gradual change from the ground up and rejected violence, linking it to the state. His writings often sparked debate, leading some to view him as a revolutionary, while others saw him as a champion of the lower middle class or a defender of traditional values.
'There was a big, high wall there that tried to stop me
A sign was painted said "Private Property"
But on the backside, it didn't say nothing
This land was made for you and me'
The verse above tends to be left out when Woody Guthrie's most famous song is used as a patriotic anthem rather than an anarchist song.
Unlike many anarchists of his time, he favored a peaceful end to the state and even served in the French Parliament after 1848.
Proudhon connected anarchism and socialism and is often seen as a “libertarian socialist.” He agreed with socialists that production should be shared and that capitalism should be replaced. However, he differed from socialists by advocating for the elimination of government altogether. Socialists view the state as crucial for protecting workers’ rights, while Proudhon believed the state would lead to oppression. He envisioned a decentralized society made up of cooperative worker communities.
Proudhon also linked individualist and collectivist anarchism. He favored a system of federated communes supported by a “people’s bank” that would distribute surplus funds to these groups. At the same time, he believed in individuals and groups freely making contracts for labor and goods. He wished for harmony between individualist and collectivist ideas. In his work What is Property?, he claimed that a true anarchist society would blend politics with daily life. What benefits the individual would benefit society as a whole, aligning both personal and collective goals.
Today, Proudhon is considered the “ultimate” anarchist. His ideas still resonate, influencing movements like the cooperative efforts of the twentieth century and the communes of the 1960s and 1970s. The modern “fair trade” movement, which ensures fair compensation for producers in developing countries, reflects Proudhon’s principles. His views on decentralization can also be seen in some non-governmental organizations that encourage workers in developing nations to resist pressure from global companies. These organizations motivate workers to prioritize their own needs by producing what they truly want.
Proudhon was born into a poor family in the French city of Besançon, near the border with Switzerland.
His father was a brewer, and the young Pierre-Joseph worked in the family tavern during his childhood.
Proudhon received little formal education – his parents couldn’t afford it – but his mother, Catherine, taught him to read.
Catherine’s efforts left a mark, as Pierre-Joseph developed an interest in literature and writing.
In 1827, Proudhon became an apprentice at a printing house. And through the world of books he soon came into contact with the world of politics.
Proudhon, who was born in Besançon, was a printer who taught himself Latin in order to better print books in the language. His best-known assertion is that "property is theft!", contained in his first major work, What Is Property? Or, an Inquiry into the Principle of Right and Government (Qu'est-ce que la propriété? Recherche sur le principe du droit et du gouvernement), published in 1840. The book's publication attracted the attention of the French authorities. It also attracted the scrutiny of Karl Marx, who started a correspondence with its author. The two influenced each other and they met in Paris while Marx was exiled there. Their friendship finally ended when Marx responded to Proudhon's The System of Economic Contradictions, or The Philosophy of Poverty with the provocatively titled The Poverty of Philosophy. The dispute became one of the sources of the split between the anarchist and Marxist wings of the International Working Men's Association. Some such as Edmund Wilson have contended that Marx's attack on Proudhon had its origin in the latter's defense of Karl Grün, whom Marx bitterly disliked, but who had been preparing translations of Proudhon's work.
Proudhon favored workers' council and associations or cooperatives as well as individual worker/peasant possession over private ownership or the nationalization of land and workplaces. He considered social revolution to be achievable in a peaceful manner. In The Confessions of a Revolutionary, Proudhon asserted that "Anarchy is Order Without Power", the phrase which much later inspired in the view of some the anarchist circled-A symbol, today "one of the most common graffiti on the urban landscape". Proudhon unsuccessfully tried to create a national bank, to be funded by what became an abortive attempt at an income tax on capitalists and shareholders. Similar in some respects to a credit union, it would have given interest-free loans.
Summary:
We are characterized by our productive abilities and our creativity as producers.
The state is oppressive and must be abolished. This could happen through peaceful, democratic means but might be achieved by force
Mutualism is the basis of a strong society. This involves people being bound together by mutually beneficial economic and social relations.
People should be divided into independent productive units, trading with each other on a mutually beneficial basis