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Karl Marx identified two economic systems that resembled his understanding of Communism, the Incan Empire and the Iroquois Nation. Marx favored the Iroquois, but both systems are important.
The Incan Empire covered a large part of South America from lowland plains to high mountainous areas. The empire was led by an absolute ruler claimed to have descended from the Sun God. Supporting the emperor was a contingent of loyal priests. The emperor and the priests controlled the empire and many communities. A few million people lived in the Incan territory.
The problem of feeding and sheltering the people was managed by the priests. The priests ordered each community to grow, raise, or make food and materials from each region. These necessities were stored in silos all over the Incan territory and distributed to everyone based solely on need. There was no need for money.
The Iroquois Nation consisted of six relatively small tribes located around the Great Lakes. The tribes acted as a confederation with working agreements between the tribes. The job of managing the well-being of all the members was delegated to each tribe.
The senior women of each tribe controlled the work of keeping their tribe fed, clothed, and sheltered. The women also appointed the male chiefs, who did everything else. The clear division of labor between the men and women ensured a level of equality and stability in the tribes. And there was no need for money.
The Communism we think we know is the Communism practiced in the USSR. Russian Communism looks more like the Incan system than the Iroquois system. There was central control in the form of the Communist Party and Five-Year Plans, so workers were more like second-class citizens as was the case in the Incan system. The Russians tried a non-monetary system but failed. Workers were paid a salary in the USSR. As with the Priests in the Incan Empire, Communist party members had privileges not available to workers. And obtaining membership to the Communist Party wasn’t easy. Communism in the USSR didn’t exactly match Marx’s ideal.
All three systems had one common element. Each system had members who benefited by their roles. The senior women and the chiefs benefited by their leadership roles and as managers of production in the Iroquois Nation. The emperor and the Priests benefited by their roles as managers of production outputs and their religious status in the Incan Empire. And Communist Party members benefited as managers of production in the USSR. There was an intangible capital in all three systems. The benefits gained by the managers represented value that workers lost in the same way factory workers lost wages in Capitalist factories.
Intangible capital exists in the Communist systems as well as the Capitalist system with or without money. It isn’t the fault of any system. The existence of intangible capital is just human nature.
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