Pierre-Joseph Proudhon
Mutualism

Proudhon adopted the term mutualism for his brand of anarchism and socialism which involved control of the means of production by the workers. In his vision, self-employed artisans, peasants and cooperatives would trade their products on the market. For Proudhon, factories and other large workplaces would be run by "labor associations" operating on directly democratic principles. The state would be abolished and instead society would be organized by a federation of "free communes" (a commune is a local municipality in French). In 1863, Proudhon wrote: "All my economic ideas as developed over twenty-five years can be summed up in the words: agricultural-industrial federation. All my political ideas boil down to a similar formula: political federation or decentralization".

Proudhon called this use-ownership possession (possession) and this economic system mutualism (mutualisme), having many arguments against entitlement to land and capital, including reasons based on morality, economics, politics and individual liberty. One such argument was that it enabled profit which in turn led to social instability and war by creating cycles of debt that eventually overcame the capacity of labor to pay them off. Another was that it produced despotism and turned workers into wage workers subject to the authority of a boss. In What Is Property?, Proudhon described the liberty he pursued as "the synthesis of communism and property ", further writing:

Property, acting by exclusion and encroachment, while population was increasing, has been the life-principle and definitive cause of all revolutions. Religious wars, and wars of conquest, when they have stopped short of the extermination of races, have been only accidental disturbances, soon repaired by the mathematical progression of the life of nations. The downfall and death of societies are due to the power of accumulation possessed by property.

Proudhon continued to oppose both capitalist and state property. In Theory of Property, Proudhon maintained that "ow in 1840, I categorically rejected the notion of property for both the group and the individual", but then he also states his new theory of property that "property is the greatest revolutionary force which exists, with an unequaled capacity for setting itself against authority" and the "principal function of private property within the political system will be to act as a counterweight to the power of the State, and by so doing to insure the liberty of the individual". However, the authors of An Anarchist FAQ write that "this is a common anarchist position. Anarchists are well aware that possession is a source of independence within capitalism and so should be supported". At the same time, Proudhon continued to oppose concentrations of wealth and property, arguing for small-scale property ownership associated with peasants and artisans. Proudhon also still opposed private property in land, writing: "What I cannot accept, regarding land, is that the work put in gives a right to ownership of what has been worked on." In addition, Proudhon still believed that property should be more equally distributed and limited in size to that actually used by individuals, families and workers associations. Proudhon supported the right of inheritance and defended it "as one of the foundations of the family and society", but he refused to extend this beyond personal possessions, arguing that "nder the law of association, transmission of wealth does not apply to the instruments of labour".

As a consequence of his opposition to profit, wage labour, worker exploitation, ownership of land and capital as well as to state property, Proudhon rejected both capitalism and state socialism, including authoritarian socialism and other authoritarian and compulsory forms of communism which advocated state property. The authors of An Anarchist FAQ argue that his opposition to "communism" was because " libertarian communism ", while having some forerunners such as François-Noël Babeuf, would not be as widespread until after his death and so, like Max Stirner, "he was directing his critique against the various forms of state communism which did ". While opposed to the charging of interest and rent, Proudhon did not seek to abolish them by law, writing: "I protest that when I criticized the complex of institutions of which property is the foundation stone, I never meant to forbid or suppress, by sovereign decree, ground rent and interest on capital. I think that all these manifestations of human activity should remain free and voluntary for all: I ask for them no modifications, restrictions or suppressions, other than those which result naturally and of necessity from the universalization of the principle of reciprocity which I propose."
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