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Fundamentally it is a question of how much property and how many rights we can allow a person to possess even under the very inhuman conditions of much of modern economy. But nobody can tell me that there is such a thing as workers “owning their factories.” Collective ownership is, if you reflect for a second, a contradiction in terms. Property is what belongs to me; ownership relates to what is my own by definition. Other people’s means of production should not, of course, belong to me; they might perhaps be controlled by a third authority, which means they belong to no one. The worst possible owner would be the government, unless its powers in this economic sphere are strictly controlled and checked by a truly independent judiciary. Our problem today is not how to expropriate the expropriators, but, rather, how to arrange matters so that the masses, dispossessed by industrial society in capitalist and socialist systems, can regain property. For this reason alone, the alternative between capitalism and socialism is false—not only because neither exists anywhere in its pure state anyhow, but because we have here twins, each wearing a different hat.

The same state of affairs can be looked at from a different perspective—from that of the oppressed themselves—which does not make the result any better. In that case one must say that capitalism has destroyed the estates, the corporations, the guilds, the whole structure of feudal society. It has done away with all the collective groups which were a protection for the individual and for his property, which guaranteed him a certain security, though not, of course, complete safety. In their place it has put the “classes,” essentially just two: the exploiters and the exploited. Now the working class, simply because it was a class and a collective, still provided the individual with a certain protection, and later, when it learned to organize, it fought for and secured considerable rights for itself. The chief distinction today is not between socialist and capitalist countries but between countries that respect these rights, as, for instance, Sweden on one side, the United States on the other, and those that do not, as, for instance, Franco’s Spain on one side, Soviet Russia on the other.

What, then, has socialism or communism, taken in its pure form, done? It has destroyed this class, too, its institutions, the unions and the labor parties, and its rights—collective bargaining, strikes, unemployment insurance, social security. In their stead, these regimes offered the illusion that the factories were the property of the working class, which as a class had just been abolished, and the atrocious lie that unemployment no longer existed, a lie based on nothing but the very real nonexistence of unemployment insurance. In essence, socialism has simply continued, and driven to its extreme, what capitalism began. Why should it be the remedy?

REIF: Marxist intellectuals often emphasize that socialism, in spite of alienation, is always capable of regeneration through its own strength. As an ideal example of this regeneration there is the Czechoslovakian model of democratic socialism.

In view of the increase in military weapons by the Soviet Union and Soviet hegemony in other areas as well, how do you judge the chances of a new initiative for democratic socialism in the East, oriented in the spirit of the Czechoslovakian or Yugoslavian models?

ARENDT: What you just said in your first sentence really shocked me. To call Stalin’s rule an “alienation” seems to me a euphemism used to sweep under the rug not only facts, but the most hair-raising crimes as well. I say this to you simply to call your attention to how very much this jargon has already twisted the facts: to call something “alienation”—that is no less than a crime.

Now so far as economic systems and “models” are concerned, in time something will emerge from all the experimentation here and there if the great powers leave the small countries in peace. What that will be we cannot of course tell in a field so dependent on practice as economics. However, there will be experimentation first of all with the problem of ownership. On the basis of the very scanty information at my disposal, I would say that this is already happening in East Germany and in Yugoslavia with interesting results.

In East Germany, a kind of cooperative system, which does not derive at all from socialism and which has proved its worth in Denmark and in Israel, has been built into the “socialistic” economic system—thereby making it work. In Yugoslavia we have the “system of self-management” in the factories, a new version of the old “workers’ councils,” which, incidentally, also never became part of orthodox socialist or communist doctrine—despite Lenin’s “all power to the Soviets.” (The councils, the only true outgrowth of the revolutions themselves as distinguished from revolutionary parties and ideologies, have been mercilessly destroyed precisely by the Communist Party and by Lenin himself.)

None of these experiments redefines legitimate property in a satisfactory way, but they may be steps in this direction—the East German cooperatives by combining private ownership with the need for joint property in the means of production and distribution, the workers’ councils by providing job security instead of the security of private property. In both instances individual workers are no longer atomized but belong to a new collective, the cooperative or the factory’s council, as a kind of compensation for membership in a class.

You ask also about the experiments and reforms. These have nothing to do with economic systems—except that the economic system should not be used to deprive people of their freedom. This is done when a dissenter or opponent becomes “unemployable” or when consumer goods are so scarce and life so uncomfortable that it is easy for the government to “buy” whole sections of the population. What people in the East do care about are freedom, civil rights, legal guarantees. For these are the conditions for being free to say, to write, and to print whatever one likes. The Soviet Union marched into Czechoslovakia not because of the new “economic model” but because of the political reforms connected with it. It did not march into East Germany, although today people there, as in other satellite countries, live better than in the Soviet Union and perhaps soon will live just as well and eventually even better than those in West Germany. And then the difference will be “only” that in one country people can say and, within limits, also do what they like and in the other they cannot. Believe me, that makes an enormous difference to everyone.

The Soviet Union has an interest in striking home wherever these economic experiments are joined to a struggle for freedom. Without doubt this was the case in Czechoslovakia. It is not the case in East Germany; therefore the German Democratic Republic is left in peace. Under Ulbricht’s rule,[‡] the German Democratic Republic has become constantly more tyrannical ideologically the greater its economic concessions.

The Soviet Union must also strike home whenever it fears that one of the satellite countries is breaking away from the Warsaw Pact. Whether this fear, certainly present, was justified in the case of Czechoslovakia I do not know, but I consider it possible. On the other hand, I do not believe that the Soviet Union will intervene militarily in Yugoslavia. It would encounter there a very considerable military opposition, and it cannot today afford this kind of confrontation. It is not that firmly seated in the saddle, being a great power.

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Walter Ulbricht, first secretary of the Socialist Unity Party and de facto leader of East Germany from 1950 to 1971.