By Pyotr Malatesta
Under capitalism, money serves as a rationing system for freedom in the market economy. Money, as a form of social power, dictates access to resources and opportunities, thereby rationing freedom. The disparities in financial resources lead to unequal access to freedom, creating a system where the wealthy have more social and economic power. This dynamic effectively controls the distribution of freedom, perpetuating inequalities and limiting the potential for a truly free and equal society.
Money functions not just as a medium of exchange, but as a system of rationing access to goods, services, and opportunities, thereby directly impacting the distribution of freedom within the society.
Money is a form of social power; money is an abstract representation of social entitlements and access to resources. The possession of money confers the ability to obtain goods, services, and opportunities, thus acting as a form of social license or entitlement.
The amount of money one possesses directly correlates with their access to various freedoms within the market economy. For instance, money allows individuals to travel, purchase necessities, access education, and participate in various social and economic activities. Conversely, a lack of money restricts these freedoms, creating a clear dichotomy between those who are financially empowered and those who are not. Thus, money rations freedom by limiting access for those without sufficient funds.
In essence, money functions similarly to ration tickets in a state-controlled economy. It determines who can access what resources and to what extent. While ration tickets explicitly state the goods they entitle the holder to, money implicitly carries this information. The purchasing power of money allows for various combinations of goods and services, and those with greater financial resources have a broader range of choices and freedoms.
The structuring of freedom through money is less overt than through explicit state rationing, but it is equally significant. A five-pound note does not list the specific freedoms it confers, but it embodies a range of potential actions and choices. This implicit nature of monetary freedom makes it less apparent but no less real. The freedoms conferred by money are determined by societal structures and the decisions of others within the economy, which the state ultimately supports and legitimizes.
The market economy inherently produces and perpetuates economic inequalities, which in turn create significant disparities in freedom. The poor, with limited financial resources, face extreme unfreedom. Their lack of money translates to restricted access to essential services, goods, and opportunities, leading to a cycle of poverty and disenfranchisement. This extreme unfreedom of the poor under capitalism is the means by which capitalism restricts freedom to the poor for purposes of control of a labor source.
Ultimately, money under capitalism functions as a system of control within the market economy. By rationing access to resources and opportunities based on financial capacity, money dictates the extent of individuals' freedom. Those with more money wield greater social power, while those with less are constrained and controlled by their lack of financial means. This dynamic creates a hierarchy where financial power translates to social and economic dominance, reinforcing existing inequalities and limiting the agency of the less wealthy.