The world as I see it by Albert Einstein (first e reader .txt) 📕

the community. That, in essentials, is what is being
attempted in Russia to-day. Much will depend on what results this mighty
experiment produces. To hazard a prophecy here would be presumption. Can
goods be produced as economically under such a system as under one which
leaves more freedom to individual enterprise? Can this system maintain
itself at all without the terror that has so far accompanied it, which none
of us "westerners" would care to let himself in for? Does not such a rigid,
centralized system tend towards protection and hostility to advantageous
innovations? We must take care, however, not to allow these suspicions to
become prejudices which prevent us from forming an objective judgment.

My personal opinion is that those methods are preferable which respect
existing traditions and habits so far as that is in any way compatible with
the end in view. Nor do I believe that a sudden transference of the control
of industry to the hands of the public would be beneficial from the point of
view of production; private enterprise should be left its sphere of
activity, in so far as it has not already been eliminated by industry itself
in the form of cartelization.

There are, however, two respects in which this economic freedom ought
to be limited. In each branch of industry the number of working hours per
week ought so to be reduced by law that unemployment is systematically
abolished. At the same time minimum wages must be fixed in such a way that
the purchasing power of the workers keeps pace with production.

Further, in those industries which have become monopolistic in
character through organization on the part of the producers, prices must be
controlled by the State in order to keep the creation of new capital within
reasonable bounds and prevent the artificial strangling of production and
consumption.

In this way it might perhaps be possible to establish a proper balance
between production and consumption without too great a limitation of free
enterprise, and at the same time to stop the intolerable tyranny of the
owners of the means of production (land, machinery) over the wage-earners,
in the widest sense of the term.

Culture and Prosperity

If one would estimate the damage done by the great political
catastrophe to the development of human civilization, one must remember that
culture in its higher forms is a delicate plant which depends on a
complicated set of conditions and is wont to flourish only in a few places
at any given time. For it to blossom there is needed, first of all, a
certain degree of prosperity, which enables a fraction of the population to
work at things not directly necessary to the maintenance of life; secondly,
a moral tradition of respect for cultural values and achievements, in virtue
of which this class is provided with the means of living by the other
classes, those who provide the immediate necessities of life.

During the past century Germany has been one of the countries in which
both conditions were fulfilled. The prosperity was, taken as a whole, modest
but sufficient; the tradition of respect for culture vigorous. On this basis
the German nation has brought forth fruits of culture which form an integral
part of the development of the modern world. The tradition, in the main,
still stands; the prosperity is gone. The industries of the country have
been cut off almost completely from the sources of raw materials on which
the existence of the industrial part of the population was based. The
surplus necessary to support the intellectual worker has suddenly ceased to
exist. With it the tradition which depends on it will inevitably collapse
also, and a fruitful nursery of culture turn to wilderness.

The human race, in so far as it sets a value on culture, has an
interest in preventing such impoverishment. It will give what help it can in
the immediate crisis and reawaken that higher community of feeling, now
thrust into the background by national egotism, for which human values have
a validity independent of politics and frontiers. It will then procure for
every nation conditions of work under which it can exist and under which it
can bring forth fruits of culture.


Production and Purchasing Power

I do not believe that the remedy for our present difficulties lies in a
knowledge of productive capacity and consumption, because this knowledge is
likely, in the main, to come too late. Moreover the trouble in Germany seems
to me to be not hypertrophy of the machinery of production but deficient
purchasing power in a large section of the population, which has been cast
out of the productive process through rationalization.

The gold standard has, in my opinion, the serious disadvantage that a
shortage in the supply of gold automatically leads to a contraction of
credit and also of the amount of currency in circulation, to which
contraction prices and wages cannot adjust themselves sufficiently quickly.
The natural remedies for our troubles are, in my opinion, as follows:--

(1) A statutory reduction of working hours, graduated for each
department of industry, in order to get rid of unemployment, combined with
the fixing of minimum wages for the purpose of adjusting the
purchasing-power of the masses to the amount of goods available.

(2) Control of the amount of money in circulation and of the volume of
credit in such a way as to keep the price-level steady, all special
protection being abolished.

(3) Statutory limitation of prices for such articles as have been
practically withdrawn from free competition by monopolies or the formation
of cartels.

Production and Work

An answer to CederstrЖm

Dear Herr CederstrЖm,

Thank you for sending me your proposals, which interest me
very much. Having myself given so much thought to this subject I
feel that it is right that I should give you my perfectly frank
opinion on them.

The fundamental trouble seems to me to be the almost unlimited
freedom of the labour market combined with extraordinary
progress in the methods of production. To satisfy the needs of
the world to-day nothing like all the available labour is wanted.
The result is unemployment and excessive competition among
the workers, both of which reduce purchasing power and put
the whole economic system intolerably out of gear.

I know Liberal economists maintain that every economy in
labour is counterbalanced by an increase in demand. But, to
begin with, I don't believe it, and even if it were true, the
above-mentioned factors would always operate to force the
standard of living of a large portion of the human race doom to
an unnaturally low level.

I also share your conviction that steps absolutely must be taken
to make it possible and necessary for the younger people to take
part in the productive process. Further, that the older people
ought to be excluded from certain sorts of work (which I call
"unqualified" work), receiving instead a certain income, as having
by that time done enough work of a kind accepted by society as
productive.

I too am in favour of abolishing large cities, but not of settling
people of a particular type--e.g., old people--in particular
towns. Frankly, the idea strikes me as horrible. I am also of
opinion that fluctuations in the value of money must be avoided,
by substituting for the gold standard a standard based on certain
classes of goods selected according to the conditions of
consumption--as Keynes, if I am not mistaken, long ago
proposed. With the introduction of this system one might
consent to a certain amount of "inflation," as compared with the
present monetary situation, if one could believe that the State
would really make a rational use of the windfall thus accruing to
it.

The weaknesses of your plan lie, so it seems to me, in the sphere
of psychology, or rather, in your neglect of it. It is no accident
that capitalism has brought with it progress not merely in
production but also in knowledge. Egoism and competition are,
alas, stronger forces than public spirit and sense of duty. In
Russia, they say, it is impossible to get a decent piece of
bread.…Perhaps I am over-pessimistic concerning State
and other forms of communal enterprise, but I expect little good
from them. Bureaucracy is the death of all sound work. I have
seen and experienced too many dreadful warnings, even in
comparatively model Switzerland.

I am inclined to the view that the State can only be of real use to