Did socialist policies leave the economies of Eastern Europe unprepared for current privatization efforts? Under communist rule, were rural villages truly left untouched by capitalism? In this historical ethnography of rural Hungary, Martha Lampland argues not only that the transition to capitalism was well under way by the 1930s, but that socialist policies themselves played a crucial role in the development of capitalism by transforming conceptions of time, money, and labor.

Exploring the effects of social change thrust upon communities against their will, Lampland examines the history of agrarian labor in Hungary from World War I to the early 1980s. She shows that rural workers had long been subject to strict state policies similar to those imposed by collectivization. Since the values of privatization and individualism associated with capitalism characterized rural Hungarian life both prior to and throughout the socialist period, capitalist ideologies of work and morality survived unscathed in the private economic practices of rural society. Lampland also shows how labor practices under socialism prepared the workforce for capitalism. By drawing villagers into factories and collective farms, for example, the socialist state forced farmers to work within tightly controlled time limits and to calculate their efforts in monetary terms. Indeed, this control and commodification of rural labor under socialism was essential to the transformation to capitalism.

At the heart of today’s fierce political anger over income inequality is a feature of capitalism that Karl Marx famously obsessed over: the commodification of labor. Most of us think wage-labor economics is at odds with socialist thinking, but as Martha Lampland explains in this fascinating look at twentieth-century Hungary, there have been moments when such economics actually flourished under socialist regimes. Exploring the region’s transition from a capitalist to a socialist system—and the economic science and practices that endured it—she sheds new light on the two most polarized ideologies of modern history.
            Lampland trains her eye on the scientific claims of modern economic modeling, using Hungary’s unique vantage point to show how theories, policies, and techniques for commodifying agrarian labor that were born in the capitalist era were adopted by the socialist regime as a scientifically designed wage system on cooperative farms. Paying attention to the specific historical circumstances of Hungary, she explores the ways economists and the abstract notions they traffic in can both shape and be shaped by local conditions, and she compellingly shows how labor can be commodified in the absence of a labor market. The result is a unique account of economic thought that unveils hidden but necessary continuities running through the turbulent twentieth century.