mutualism (economic theory)

Mutualism, as an anarchist school of thought, can be traced to the writings of Pierre-Joseph Proudhon that envisioned a society where each person might possess a means of production either individually or collectively, with trade representing equivalent amounts of labor. Integral to the scheme was the establishment of a mutual credit bank which would lend to producers at a minimal interest rate only high enough to cover the costs of administration. Mutualism is based on a labor theory of value which holds that when labor or its product is sold, it ought to receive in exchange, goods or services embodying "the amount of labor necessary to produce an article of exactly similar and equal utility" (receiving anything less is considered exploitation, theft of labor, or "usury"). Mutualists believe that a natural economic consequence of a truly free labor market is income to individuals being received proportionally to the amount of labor they exert. Mutualists oppose the idea of individuals receiving an income through loans, investments, and rent, as they believe these individuals are not laboring. They hold that if state intervention ceased, these types of incomes would disappear.