Saturday, October 7, 2023

Briefing: What is Capitalism? (1984)

The Briefing Column from the October 1984 issue of the Socialist Standard

Money trick
All wealth is the product of labour. Every house, car, loaf of bread, everything that we use is brought into being by men and women applying their energies to the resources that other men and women have extracted from the environment. It is one of the contradictions of the class system, though, that the great majority of people — the wealth-producing class — consume and enjoy only the crumbs of the wealth they produce. The construction workers who build the palaces and the mansions return at the end of a hard day’s work to live in council hovels or at best an up-market suburban slum. The wealth producers are trapped in poverty because of the wages- system of legalised robbery. The factories, farms, mines, offices, communications systems — in fact, the means of life — are owned and controlled by a small minority of the world's population. The wages or salaries with which the wealth producers are fobbed off are worth less than the value of what has been produced, so that the boss receives a value from the efforts of the worker over and above what is paid for. The surplus value kept by the owners of industry becomes profit when the goods are sold on the market.

When the social system is looked at from this point of view, a couple of important points become apparent: first, that whether wages are “high” or "low" the people working for them are being exploited; and second, that it is the system of producing goods and services for a profit which condemns the majority to live lives of unnecessary poverty. Occasionally, the absurdity of the class system exhibits itself in stark madness. A couple of years ago the workers who produced the engines for the Concorde aeroplane were given a special concession by their bosses. The workers who, although they were responsible for making the plane would never be able to afford to travel in it. were permitted to take their families on a tour of their work for a price of 50p. The tours would need to be brisk as they could not keep the wealthy ticket holders hanging about drinking champagne in the departure lounges for too long.

Rolls Royce is now trying the same sort of thing:
A big pools win would be the only way most workers could get to own a Rolls Royce. but 3.800 employees at the firm's works in Crewe. Cheshire, now get a 90-minute taste of high life. (Daily Telegraph, 8 August 1984)
The scheme will operate for about 18 months while all the workers whose efforts actually produce the cars will be able to cruise about the countryside for an hour in a £56,000 ice-green Silver Spirit. The chief executive of Rolls Royce, Richard Perry, observed that: "People have worked here for forty years and have said afterwards that this had been their first chance to sit in one of the cars".

Capitalism commits a continuing con-trick on the working class every moment that it is allowed to carry on. It is only fallacy and prejudice that obstruct the path to a classless society.

False Images
From the time when we are first shown an atlas or a globe we are given a false image of the world. The map is divided into over 150 separate countries and we are indoctrinated with the idea that is is only right and proper to develop an allegiance to "our" country. We are taught that we should use possessive vocabulary in relation to the country although we own nothing of it. We are taught to have respect and admiration for a sterile, stately-home culture of which we have no part and most importantly we are taught to accept the possibility that one day we might be called on to fight and kill strangers (who will have been similarly misled) in furthering the cause of our bosses if economic rivalry is extended from the conference table to the battlefield.

There is one working class comprised of men and women all over the globe who share an economic condition: we own nothing except our mental and physical energies and we need to try to sell these on a weekly or monthly basis, to a boss, in order to make a living. We may have different languages and different cultures but what we have in common is much greater and more significant than how we differ. A print worker in England will share more experiences and problems with a French print worker than he will with an English Press tycoon. There are other illusions flowing from an image of the world as lots of independent nations. The world now has a highly integrated industry. The labour which goes into producing most articles is divided among many men and women performing specialised jobs. This fact, taken with the restriction of certain products to particular global regions and climates, means that the energies which go to produce a particular item can come from all over the world.

Take the example of a typewriter and consider what was needed to make it: the different types of metal, the plastic, the rubber and the technology of its design. Each of these could trace its origins to a different place and then the same analysis could be applied to the ships and aeroplanes which were used to transport the various materials and components around the world. Because of the way commerce and world trade operate, countries with apparently opposed political ideologies in fact are engaged in trade. American farm owners sell wheat to the Russian ruling class; the Russian ruling class colludes with its counterpart in South Africa to fix the price of diamonds on the world market and the Russian Empire even helps to arm American missiles by playing a part in manufacturing plutonium which is later used for American warheads. Western governments. including Britain, have been shipping uranium to Russia for enrichment (of the government as well as the uranium) knowing it was for nuclear warheads.

The Left Wing of Capitalism
"Yes. I agree that a classless society is a good idea but the reason I support the Labour Party is that while we have got capitalism things are marginally better if there is a Labour government.”

Socialists firmly reject this sort of argument. The profit system is a way of running society which is against the interests of the working class, the majority of people. It works on the basis of producing wealth only if there is the prospect of selling it for a profit on the market, not simply because there is a need for it. So if you have a need which you cannot afford to have satisfied then your need will continue. In this system there is a constant antagonism of interest between master and servant, or to use the more decorous expression for the same relationship, between employer and employee. The bosses strive to get as much as possible from the workers while paying them as little as they can get away with whereas the workers seek to reduce the extent to which they are exploited.

The Labour Party has never sought to do anything but run capitalism and consequently when it has formed the government (as has happened seven times) it has found itself doing all the anti-working-class things which it vehemently opposes when they are carried out by Conservative governments. Apart from supporting wars, introducing the atomic bomb in Britain and establishing the Special Patrol Group (SPG), the Labour Party does not enjoy a proud record on the industrial front. Labour supporters who are rightly sickened by the sort of problems being faced by the miners and the dockers would do well to look at their party’s record on these issues. The National Coal Board has plans to shut unprofitable or “uneconomic” pits for the same reasons that pits were shut before 1945 by private capitalist owners and for the same reasons that 48 Welsh pits were closed and 50,000 miners made redundant under the Labour government between 1964 and 1970.

Then consider the struggle of the dockers. The last time troops were used to break a dockers' strike anil unload ships was under a labour government during a spate of dock strikes in 1949-50. In May 1949, after an outbreak of unofficial strikes in support of Canadian dockers, the Labour government invoked Defence Regulation 1304 and used troops to unload fruit and refrigerated food at Avonmouth. The use of troops caused the strikes to spread. By July 8 10,000 men were on strike and the government announced that unless wage-slavery was resumed a state of emergency would be declared. The Labour government invited the King to sign such a declaration three days later.

Despite this, the number of men on strike rose to 15,000. Prime Minister Attlee became angry. Who did these workers think they were, telling the bosses they were not satisfied! Attlee proclaimed that he was prepared to send 35,000 troops into the docks and the strike collapsed within two weeks. Troops were used again by the Labour government in April 1950 when another strike was thwarted in the Port of London. Troops have been used by governments since then during strikes, for instance in the emergency services, but never for wholesale strike breaking. During the firemen's strike 1977-78 the Labour government again sent in the troops with the Green Goddess fire engines to undermine the industrial action of members of the working class struggling to stop their standard of poverty becoming even worse. The economic hardships of this society have not been personally engineered by Margaret Thatcher and cannot be talked away by Neil Kinnock. These problems are an intrinsic part of a class-divided society.

Inhuman priorities
As this social system grinds on the contradiction between a society potentially geared to abundant production and a society poised on self-destruction becomes more stark. We could produce so much. We could meet all the needs of the population of the world. But we continue in artificial scarcity and to add further horror to the nightmare we continue to amass the means of destruction.

According to Oxfam. (Guardian, 5 August 1981) over 30,000,000 people die of hunger every year, more than half of them children under five. Every year 780.000.000 people are suffering from hunger and malnutrition. At the current rate these figures will have doubled by the end of this decade. In the last hour about 1,700 children have died unnecessarily, victims of malnutrition, disease and war. Figures are often formulated to express the grotesque priorities of the profit system by contrasting the expenditures on the industry of health and the industry of death: the Defence Research and Development programme of £1.8 billion is 16 times greater than that given to the Medical Research Council; one Army General is paid more than five State Enrolled Nurses; the upkeep of one nuclear submarine is greater than the annual cost of local authority libraries and UNICEF working in 112 countries has a total income of under £200 million which is the equivalent of what the world spends on military ventures every four hours.

These facts exemplify the priorities of capitalism. What should be done about this? Socialists do not advocate that more money be spent on welfare as a solution to the problem. Capitalism, based on producing for profit not need, creates these tragic disasters as a matter of course. Trying to solve them with charity or adjustments in spending cannot work, despite all the energy and drive which has been contributed by the people who work for the various voluntary and charity organisations. The way to solve these problems is to establish a society which will work on the principle of “from each according to ability to each according to need", a society in which our productive forces will be used directly to satisfy our needs.
Gary Jay

1 comment:

Imposs1904 said...

A bit of a mix bag of an article.