Sunday, April 9, 2017

The Economics of Unemployment (1973)

From the April 1973 issue of the Socialist Standard

There is much confusion about the causes of unemployment and almost as much about how many unemployed there actually are. Early last year when the official figures stood at about a million several unofficial estimates put it much higher. The official figures told us how many men and women there were who were available for work and were on the Register. But what about those who for one reason or another were not on the Register? One estimate was that the real total was a million and a quarter. The Observer (23 January 1972) thought it was a million and a half and the same newspaper (20 February 1972) estimated that there were two million fewer people at work than there had been three years earlier. Harold Wilson (Financial Times, 8 April 1972) capped it with his own estimate that if you included all the people who were not looking for a job because there were no vacancies, the real figure “was nearer three million than the government’s figure of one million”.

There is nothing new about this kind of discrepancy between official figures and unofficial estimates in times of heavy unemployment and, provided it is borne in mind, the official figures do give a sufficient indication of how the level of unemployment alternately rises and falls as trade and production decline and expand.

Karl Marx from his study of nineteenth-century capitalism gave a summary description of what goes on:
The enormous extensibility of the factory system, the way in which it increases production by leaps and bounds, and its dependence upon the world market, necessarily give a febrile impetus to production, with a glutting of the markets, a subsequent relative inadequacy of demand, and therefore a paralysis of industry. The life of industry becomes one characterized by a succession of periods of moderate activity, prosperity, overproduction, crisis, and stagnation.
(Capital, Vol. I, page 456. Allen & Unwin edn.) 
Earlier economists had maintained that this kind of trade cycle did not and indeed could not happen. Later critics of Marx, who were compelled by events to admit that it did happen, then maintained that it was not necessary and that it only required certain kinds of corrective action to be taken to prevent it.

Try these Pills
Every variety of “corrective action” has been tried and all have failed because they all come up against certain inescapable aspects of the capitalist system. In a very abstract way it could be said that if all branches of all industries in all the world were planned to be kept in line with market demand and if technical improvements which reduced costs in one country were shared with all other countries and if wages, prices and levels of efficiency were the same everywhere, the trade cycle could be eliminated; but it is only necessary to state this to see that it is impossible. Individual capitalists fight for their own interests and national groups of capitalists have overwhelming economic and military reasons not to be submerged in such an all-embracing scheme. In practice nobody treats seriously ideas of that kind.

In the sphere of what is considered practicable the cures for unemployment fall into a few main groups. One is for the government to prop up ailing firms or industries with subsidies, or to promote employment in particular regions by the same means. These schemes are however not preventives of unemployment but ways of keeping the unemployed on the pay roll and off the dole queue. In effect they are payments to particular employers to employ people they otherwise would not employ. They are a burden on the rest of the capitalist class since they have to be paid for out of taxation. Frances Cairncross (Observer, 28 May 1972) in an article on the cost of promoting employment in the “development areas” in the ten years 1960 to 1970 stated that it was over £2,000 million and “the average cost of each new job created came to £678”; in spite of which unemployment in those areas jumped from 85,405 in June 1961 to 206,740 ten years later. “Looking at those figures, one might well ask whether regional policy was anything more than an expensive attempt to keep marginal constituencies in the backwoods sweet.”

Fewer Hands Make Less Work
A second idea for curing unemployment has been the Labour Party and trade-union belief that workers would be given job security if industries were taken out of the hands of private employers and nationalized. Hugh Scanlon, President of AEUW, voiced this in an attack on the General Electric Company. He pointed out that in the past three years GEC had cut their labour force in Britain from 245,000 to 181,000 while their profits increased (Financial Times, 14 December 1972). He described the company as “the largest unemployer of labour in this country". He seems to be singularly ill-informed. For years the nationalized industries — coal, gas, railways and electricity supply — have been reducing staff by tens of thousands; now joined by the Steel Corporation’s estimated 50,000 redundancies. The forces pressing the nationalized industries to cut staff are exactly the same as those affecting private industry, the need to be competitive and profitable.

The most spectacular of the schemes to obviate the trade cycle has of course been the Keynesian idea that the government can take action to keep up the demand for goods by its own investments and by stimulating consumption and private companies’ investment — the policy of Full Employment. Now that it has manifestly failed it is hard to believe how confident the Keynesians were that it would work. A typical claim was that made in 1946 by Barbara Wootton (now Lady Wootton) when she wrote: “It is now generally accepted, even at the highest academic and political levels, that there can be enough jobs to go round.” (There are still a few "true believers”. Michael Foot, MP, said on the radio, 24 January 1972: “By following Keynes’ doctrine it is a simple matter to make work.”)

Falls on Deaf Ears
Events of the past two years have shown how right Marx was when he pinpointed the fact that what alone will induce the capitalists to increase production is the confidence that what they put on the market will be sold at a profit. No amount of exhortation by the government and assurances that the banks will advance money to aid them will have any effect, and increases of the governments’ own expenditure make no difference if at the same time companies are holding back on investment.

In a speech on 4 February 1973 Prime Minister Heath was chiding businessmen for their reluctance “to expand and invest”, but he and the Chancellor of the Exchequer and other Ministers had been saying the same for the past two years, back to 1971. On 5 December 1971 the Observer published the results of an enquiry into the extent to which industry was, or rather was not, expanding its investment; under the title “Anthony Barber has been begging industry to invest . . . no-one is listening.” They quoted Barber’s claim in the House of Commons that “never before has a government taken so much action to stimulate employment”.
Mr. Barber was so right in telling the Commons this. He has cut taxes, stepped up spending, urged bewildered nationalized industry bosses to get out and spend, and maintained a brave front about economic progress. But Barber missed the point. No one, especially in industry, is arguing about how much he has done. What they are sweating about is whether it is working.
It was left to the City Editor of the Daily Mail to make the appropriate cynical observation on the situation:
Businessmen are not going to invest their own money or shareholders’ funds just because men are out of work or the Government asks them to.
(Daily Mail, 28 Feb. 1972)
He added that businessmen would not change their line until “prospects of better profits emerge”.

Now indeed, helped by the sacking of thousands of workers and the tightening up of work processes, expectation of profit has risen again and unemployment has fallen. But it comes after several years of stagnation which, if the Keynesian idea had been valid, would never have happened in the first place.
Edgar Hardcastle

Must Man Starve? (1974)

From the April 1974 issue of the Socialist Standard
For six months the peasants of the drought-stricken regions of Wello and Tigro in Ethiopia have been suffering from famine . . .  In the five months from April to August between 50,000 and 100,000 died. (Guardian 18 October 1973)
Malnutrition in the Bangladesh villages has reached near-starvation levels among the poor and landless. “I have seen village children who look like Biafro babies”, said a senior official. (Guardian 19 October 1973)
In large parts of Africa, Asia, and South America malnutrition is the norm and starvation common, while even in industrially developed countries considerable numbers eat badly and too little. In Britain’s “affluent society” it is reckoned that 50 to 60,000 old age pensioners die each year through lack of food and warmth.

Most experts estimate that two-thirds of the world’s population are undernourished — and that the situation is getting worse.

Is It Inevitable?
Yes say many. It’s a popular view that there are just too many people and too few resources for everyone to eat well. This is demonstrably false.

At the Second World Food Congress (June 1970) United Nations experts stated that if present technology were used to the full the world’s population could certainly be fed. Then years ago the International Agricultural Centre at the Hague announced that the earth could support a population of 28,000 million if food production were organised on lines then known to be practical (Times 24 July 1962) (Present-day population is under 4,000 million).

The many studies undertaken by various food production experts leave us in no doubt that it is possible to produce enough good-quality food for everyone.

Why Then Hunger?
Simply because in this society food is not produced to feed people but to make a profit for the farmers and other investors in the food industry. This results in: —
  • People starving amidst a sufficiency of food — because they’ve not got the money to buy it. “The problem in Bangladesh, as elsewhere on the subcontinent, is not that the food is not there but that the poor (and especially the landless) cannot afford to buy it” (Guardian 19 October 1973).
  • Food being produced, then either left to rot in warehouses or deliberately destroyed — because it can’t be sold profitably. 300,000 tons of “surplus” butter are considered a "grave problem” in the EEC while in Britain perfectly good fish and apples have recently been destroyed.
  • Quotas being set to limit foodstuffs production and farmers being paid to keep perfectly good land unused. "It is a known fact that, to avoid overproduction of grain, an attempt has been made in various parts of the United States to apply the principle of subsidizing farmers to leave a percentage of their arable land fallow. The same method has been used with other agricultural products”. (Hugo Osvald, The Earth Can Feed Us All).
  • Land that could be brought into production by irrigation, and new methods (such as underwater farming) that could be employed, not being used due to the general effort to keep production below a certain level to maintain high prices.

What's The Solution?
Since it’s the basic economic structure that causes the problem all petty reforms merely tinkering with the superstructure are bound to fail. The land and the means of food production, along with all the natural and man-made resources of society, must come under the democratic control of the whole world community. The sole aim of food production must be to satisfy the food requirements of the world and to provide satisfying work for those involved. The buying and selling of food, and the other needs of life, should be abolished and a system of free distribution adopted. Eating is a natural function, not a privilege. In a world based on the common ownership of the means of wealth production, food production would be merely a technical problem — and we already have the technology to meet the task. With the fetters of profit-making removed, today’s potential plenty would be made a reality.

How Can This Be Achieved?
No leader can usher in such a society on your behalf. Its establishment depends on YOUR understanding and effort. Nothing less than conscious political action by a majority of the working class can create World Socialism. The Socialist Party of Great Britain and its Companion Parties overseas are striving to this end.
Aberdeen Socialists

Kicking Out Cant (1975)

Book Review from the April 1975 issue of the Socialist Standard

Christianity and Socialism by Horace Jarvis. Published by the author. 30p.

This 80-page pamphlet should please many people and enlighten many more. It concentrates on attacking religious superstition and the idea of divine authority, and is well furnished with quotations and examples from the author’s extensive knowledge of Christian teachings. Socialism is defined and explained, and the reader is told why the Socialist Party of Great Britain does not admit people holding religious beliefs. There is a short but-to-the-point chapter on "Was Jesus a Socialist?”, and the pamphlet ends with a survey of some modern revivalist and splinter groups.

We are asked to say that it is obtainable from 72 Beechwood Road, Sanderstead, Surrey, and that the price includes postage.

Socialists in Ireland Battle On (1976)

From the April 1976 issue of the Socialist Standard

Explanation of failure to reply to earlier communication . . .

CIRCULAR RECEIVED BY A SPGB MEMBER FROM THE WORLD SOCIALIST PARTY OF IRELAND, BELFAST :

Some time ago our premises at Pimm Street, Belfast suffered bomb and fire damage and had to be vacated. The proprietor of a small printery, whose basement workshop in the same building was only slightly damaged, decided to continue in business and agreed to accept incoming mail on our behalf.

Last week this printer decided to go into the unoccupied part of the building in search of some timber and there he came on the front door of the rooms we had occupied. The door had been blown from its hinges and had actually fallen into a lower floor of the building but it still had affixed to it the mail box. Later examination revealed some letters in the box including yours of 29th March 1974.

It is a crazy little chapter from the sad and crazy world we live in; however we now enclose our reply and our apologies.

ACCOMPANYING LETTER FROM SECRETARY :

The enclosed circular will explain why we did not reply to your letter of the 29th March 1974.

The circular gives an insight into the problems we face in N. Ireland at present. We did manage to maintain premises up to two years ago but even this was a dodgy proposition. Our “meeting” night was Tuesdays but most evenings people were afraid to come out and I have memories of sitting long hours alone beside a dirty paraffin stove. Sometimes the foot on the stairs brought mixed feelings; “Good! Someone . . ." but there was the fear that the "someone” might not be good! Just before the premises were blown up they were vandalized by the military and, on another occasion when I foolishly took my seventeen-year-old daughter (who was a Party member) with me, we had a visit from some worthies who were obviously confident that if they could provoke us into starting something they could handle both of us.

Finally, our “national heroes”, the Provos, in pursuit of their “economic war” or their equally intelligent counterparts, the Loyalists, blew the place up. It must have been a victory for something.

After that we tried to get an old slum shop and dwelling in a “borderline” area. It had been vandalized and was going very cheap and I had arranged with the agent to accept £200 deposit and the £500 balance by weekly instalments of £2. Unfortunately, when the crunch came, the woman who owned the place refused to sign the contracts.

Now we have learnt that the premises at Pimm Street have been bought by a tyre trader who carries on his business in the adjoining property. The place is being re-roofed and repaired in a make-shift way and we are hopeful that we might get our old room back.

Of course normal political activity is impossible at present in this lunatic asylum but, still, an address that could be used openly would open some avenues. At present, apart from putting the case to individuals in general conversation (and this with some caution!) we confine our activities to sending the Socialist Standard to various groups and individuals and to the principal newspapers. It is dangerous to write to the papers; both morning and evening newspapers print most of their letters under pen names but require that the writer enclose his name and address; a friend of mine who had a letter published criticizing the Loyalist “strike” of ’74 received a threatening telephone call the following day — this despite the fact that his letter had been published over a pseudonym. Obviously one does not want to put one’s family at risk by identifying one’s home address but, if we get premises, we will use the address openly for letters and the occasional leaflet.

I am convinced that we must show some evidence of our continued existence during this period, however slight or sporadic. To fail to do so will leave us open to the charge of deserting our case when it was dangerous to stand by it. Honest explanation of our smallness and lack of resources can be made for little activity in the present period but we would have no excuse for total silence.

Over the past two months I have engaged in an exchange of letters with the Secretary of a Dublin group who call themselves the Socialist Party. Some progress has been made but the issues of nationalism and religion still prove tortuous (what a dis-service the “Marxist” Connolly did for Socialism!). In my last letter I suggested that I would like to visit the group and, if I get a favourable response, I will take a week-end in Dublin.

Bad as the situation here is I feel it is not without a glimmer of hope. Some of the old loyalties are being scrutinized more incisively than heretofore by many on the political touchlines; the anger of the moment may not reflect this but there is much evidence to show that it is true. Some — indeed, many — of the Loyalists have lost some of their intractable “Britishness” and, equally, many of the Catholic Nationalists have been disillusioned by blatant indifference shown to their plight by a self-preserving Southern capitalism. True, the battles go on; today’s fought in the bitterness of last night’s memories. Increasingly, however, it is only the scarred and the most deeply committed who can maintain the fight on a no-hope diet of hatred. When the anger ebbs the old values will be in the melting pot and while, then, Socialist hands may be few, they will at least be clean.
Richard Montague

Queen Capital's Jubilee (1977)

From the April 1977 issue of the Socialist Standard

In June 1911, when George Wettin was crowned, the Socialist Standard carried an article with the title “King Capital’s Coronation”. This article was reproduced in the September 1964 anniversary issue of the Standard and so is still obtainable. A Socialist classic and a masterpiece of erudition, wit and irony. In about eighteen hundred words it takes in every facet of Socialist education. History, economics, parasitism, exploitation, class-struggle. It explains why the capitalist class preserve an obsolete and costly monarchy. An institution whose origins stretch back to barbarism, whose rituals and incantations are at once primitive and ludicrous and whose great wealth has been built up on centuries of plunder, piracy and wholesale murder. That the monarchy survived the onslaught of such an article is a tribute to the control exercised by the capitalist propaganda machine over the thinking of the working class. Working on the theory that meaningful education begins with class-consciousness, we think the article would have an electrifying effect if reproduced in the Times and Guardian education supplements.

Here we are sixty-six years later and the workers still dragging their feet. After twenty five years as the royal mascot of British capitalism, what can be said about Elizabeth? She has been all over the world as the commercial representative and prestige symbol of the ruling class, visited hundreds of places, travelled scores of thousands of miles and been received by all the heads-of-state and civil “dignitaries” on earth, and yet has probably never uttered a word in public, apart from casual conversation, that was her own. Apart from the obligatory built-in grin, what accomplishments does she need? Riding side-saddle for the trooping of the colour ceremony must be quite arduous, but who could not memorize a line like “I name this ship ‘Servitude’ may god bless her and all who sail in her”? (Swinging the bottle of champagne is not like driving home the rivets.) With every advantage money can buy, she needs proficiency at nothing. In terms of social usefulness, the girl in the typing pool or the woman who cleans lavatories makes a far greater contribution. Yet it is such useful members of society who denigrate themselves by lining the gutters to wave and cheer as she passes. She is regarded as some great White Mother whose grin protects us from evil and stimulates “our” trade. It is argued that if we did not have a monarch we would have a president and that might even be worse. This of course is an argument for scrapping both, not for maintaining either. The working class will only be prepared to get rid of the trappings, when they have come to reject the private-property relationships of capitalism which require these elevated nonentities.

The twenty-five years since 1952 have seen the world in a state of unprecedented turmoil. Untold millions have died from starvation while vast surpluses of unsaleable food have been systematically destroyed. Millions more have perished in wars. The Korean war was raging when Elizabeth was crowned, and was supported by her Labour and Tory ministers of state. These same ministers have tested and built up the British arsenal of nuclear weapons, for “her” armed forces. But she just reads their speeches; all this has nothing to do with her.

Whilst old people after a working life dependent on wages, producing wealth for sale and profit, live in deprivation and often die for the want of life's simplest needs of food and warmth, she represents every excess of conspicuous consumption. The exploitation of countless millions in this country and throughout the world is the foundation upon which rests the grotesque accumulation of wealth belonging to the class of socially useless people, whose cover-up is the monarchy. The queen’s cloistered existence hidden from reality makes a mockery of stricken humanity. Even public toilets have to be disguised when she passes. Yet, despite the squalor of the Walworth Road and Brixton, and many more such slum areas, at the time of the Coronation one could hardly see the slums for bunting. Even the kerbstones were painted red, white, and blue. This was the message the parasite class wanted. This made it all worth their while. Bread and circuses. Now there will be more beakers and mugs — always plenty of those — and sundry souvenirs to make profitable business and remind the workers how lucky they are.

The women’s magazines conjure up a phoney sense of delight as if they were treating some small children to their first Punch and Judy show. The television and radio put on special programmes which help project the illusion that something important has happened. The press, servile and sycophantic as ever, carries more stories and pictures than usual, which is no easy task. The Guardian on 7th February published a eulogy by the Poet Laureate, which is reminiscent of the grovelling non-sense that Pravda used to print about Stalin. In his day, William Morris turned down the job of Poet Laureate; as a Socialist he would not lend himself to such humbug. When it is understood, that no less a luminary (and there are no lesser luminaries) than Mary Wilson had a poem read at the Albert Hall at the same do which launched the above mentioned epic, and that she has been hinted at as a possible future Laureate, perhaps the ruling class and their mascot are more up against it than we realize.
Harry Baldwin

Saturday, April 8, 2017

Obituary: Sammy Highams (1978)

Obituary from the April 1978 issue of the Socialist Standard

The death took place on 17th February of our old comrade Sammy Highams. He was 80.

Sammy joined the East London branch of the Party in 1928. Later he was in Hackney branch, and after it closed a few years ago he transferred to Camden. He was a ship’s carpenter and travelled widely, and was in Canada for some years. An active and lively-minded man, he had several interests. He was a keen trade-unionist; he studied French and made visits to France; in his mid-seventies he still went swimming regularly. He was a prolific letter-writer to newspapers, and also wrote to engage politicians and academics in arguments about statements they made.

Sammy’s chief Party activity was selling the Socialist Standard, and he did this with unflagging zeal until a short time before his death. He attended demonstrations, travelled to political parties’ conferences, stood at street-corners and in the London School of Economics, and was often remarkably successful.

He will be remembered by many members — and opponents — as a choleric man. He castigated members for not equalling his efforts with the Socialist Standard, and voiced his boredom when branch-room discussions went on too long for him. In arguments in Hyde Park, he flourished his umbrella alarmingly; and he made an impression on a “Right to Work” demonstration two years ago by shouting alongside it “What about the right to be lazy?” Those who knew him more closely, however, were well aware of his warm and kindly nature. His work for the socialist cause will certainly be missed; so will his person be, by a lot of us.

Anarchism and Socialism (1979)

From the April 1979 issue of the Socialist Standard

Plekhanov’s book Anarchism and Socialism is a treasure. Not only did he clearly state the case against the anarchists of his day but he also analysed utopian socialism. For Plekhanov, Anarchism was a decadent form of utopianism. For Eleanor Marx Aveling, who translated his book in 1895, "under any circumstances Anarchism is but another word for reaction; and the more honest the men and women who play this reactionist game, the more tragic and dangerous it becomes for the whole working class movement".

The book's central point, made equally effectively in the translator’s preface and the introduction by Robert Rives La Monte, to the 1907 Kerr edition, is the importance of political action. Both Eleanor Marx and La Monte point to the failure of the Socialist League as evidence that "every revolt from the Socialist Party in America, which is based on disgust with the fact that it is a ‘pure and simple’ political party of ‘ballot-worshippers’ is destined to repeat the history of the Socialist League” (La Monte).

Plekhanov begins, however, not with the Anarchists at all but with an analysis of utopian socialism:-
The Utopian is one who, starting from an abstract principle, seeks for a perfect social organisation.
The abstract principle on which utopian socialists like Morelly, Fourier. Owen and Saint Simon based their arguments was "human nature.” But scientific socialism showed that this was not constant: “while man, in order to maintain his existence, acts upon nature outside himself, he alters his own naure”. Since Marx, wrote Plekhanov, the revolutionary socialist movement was no longer founded on an abstract principle or an ideal of a "perfect legislation” in total conformity with human nature, but on “a scientifically demonstrable economic necessity”. The struggle between workers and the capitalist class, he declared, must become a political one:-
Every class war is a political one. In order to do away with feudal society the bourgeoisie had to seize upon political power. In order to do away with capitalist society the proletariat must do the same. Its political task is therefore traced out for it beforehand by the force of events themselves, and not by any abstract consideration.
Rooted in the class struggle and the interests of the working class, Plekhanov lashed into the Anarchists, dealing in some depth with their naive, crazy notions. There was Max Stirner: "for me there is nothing above myself”. Stirner’s League of Egoists, wrote Plekhanov, was "the Utopia of a petty bourgeois in revolt". Some of Stirner’s ideas still surface from time to time in eccentric Tory circles and leagues of small shopkeepers, imbued with the same spirit of "bourgeois individualism".

Proudhon's ideas on the social constitution and on ending capitalism without political action or class struggle are debunked by Plekhanov, who points out with irony the many blatant contradictions in Proudhon's theories.

Bakunin is dealt with next. "I detest Communism, because it is the negation of liberty, and I cannot conceive anything human without liberty”, he declared, thus revealing his basic utopianism. "I am not a Communist, because Communism concentrates and causes all the forces of society to be absorbed by the State, because it necessarily ends in the centralisation of property in the hands of the State".

Bakunin also expressed clearly the characteristic mistake of Anarchist thinking, that is, the idea that the State should be smashed since its oppression is the cause of exploitation. In this belief can be seen the Utopian’s ignorance of hard economic facts, of the historical process and of the role of the State, as necessary to class-based economic systems. As capitalism has become an intolerable fetter on the productive forces, the working class must abolish it. The State will not be abolished: it will wither away, like an uprooted weed. Rut as long as class ownership of wealth exists, smashing the State is futile—a new form of State will always arise, as weeds do when their roots are left in the soil.

The Anarchists are mistaken in believing the abolition of the State would achieve emancipation. The events of 1917, when Lenin, destroying the old State with his programme "All power to the Soviets", only succeeded in creating a new form of State, and new methods of exploitation, are evidence of the futility of such tactics. Capitalism can only be ended by the working class taking political action, not to smash the State, but to abolish the wages system.

Bakunin distinguished between social revolution and political revolution. Plekhanov answered, in memorable terms:-
Every class struggle being necessarily a political struggle, it is evident that every political revolution, worthy of the name, is a social revolution; it is evident also that for the proletariat the political struggle is as much a necessity as it has always been for every class struggling to emancipate itself.
Adrift from political action. Bakunin and his followers encouraged terrorist tactics—the "propaganda by deed” which still sporadically hits the headlines in many countries—Italy, Spain, Germany, Japan. Mexico, Argentina, US and England.

"Error has its logic as well as truth. Once you reject the political action of the working-class, you are fatally driven —provided you do not wish to serve the bourgeois politicians—to accept the tactics of the Vaillants and the Henrys", observed Plekhanov. After parliamentarism was discarded, the tactics of riots and isolated uprisings were abandoned since workers, sensibly, did not want anything to do with such suicidal tactics. What was left? For the Anarchist, either syndicalism (equally disastrous) or the individual gesture, the assassin with a bomb in his briefcase—"doing the work if not receiving the pay of a spy”, as La Monte put it.

The result of the Anarchist movement’s rejection of political struggle in favour of syndicalism or terrorism is to weaken the working class movement and to encourage the forces of reaction. Special police agents infiltrate all working class organisations, laws are passed and special measures enforced which handicap socialists in their activity. Workers become hostile and reactionary. Revolution becomes a dirty word. Socialism is seen as dangerous lunacy. As Plekhanov said, "An Anarchist is a man who—when he is not a police agent—is fated always and everywhere to attain the opposite of that which he attempts to achieve".

For its chapter on scientific socialism alone, clear and concise, this book deserves to stand alongside the best-known works of Marx and Engels.
Charmian Skelton

El Salvador (1982)

From the April 1982 issue of the Socialist Standard

The present crisis in El Salvador must be seen against its historical background. Not just the “local oligarchy” of fourteen families like the Duenas and the Hills, who own most of the country’s coffee exporting and other industries. Not just the particular American corporations, such as Exxon, Texaco and Westinghouse Electric, who have capital invested in El Salvador. But the market system of production for profit, which has come to dominate the entire world in the twentieth century.

The present Salvadorean capitalists arose with the integration of Central America into world trade at the end of the last century. Land which had been farmed in common by villages was transferred by the government into large private holdings for the cultivation of coffee for export. Some capitalists from other countries also joined the venture, and by the early twentieth century the increasingly powerful land-owners began to complement their activities will the creation of financial institutions, such as a central bank. The depression of world capitalism in the ’thirties brought diversification into other industries, in response to falling coffee prices. It also brought the peasant uprising led by Farabundo Marti, the massacre of thirty thousand people by the troops of Martinez, and the beginning of fifty years of military dictatorship.

The imperialist efforts of the Russian dictatorship have generally not been too subtle. Hungary, Czechoslovakia, Afghanistan, Poland . . .  to control the profitable resources of these countries is naturally of strategic advantage to any capitalist power, including Russia. The American empire, on the other hand, is rather sophisticated. Capital is invested, puppet regimes are installed, arms provided, complete with “technical advisors”, and the dividend freely drawn. If a few peasants are shot, if a few workers starve, it will be in the name of “freedom”, and the investors are certainly “free”.

The American ruling class has long had particularly lucrative and strategic interests in the Caribbean basin. In 1964, the US Agency for International Development and the Department of Defense produced a document entitled Winning the Cold War The US Ideological Offensive. The unfortunately named USAID Deputy Administrator, Mr. Coffin, is quoted as saying:
Our basic, broadest goal is a long range political one. It is not development for the sake of sheer development . . .  An important objective is to open up the maximum opportunity for domestic private initiative and to insure that foreign private investment, particularly from the United States, is welcomed and well treated.
American “military and economic aid” to the Caribbean area this year will total almost one billion dollars, of which more than a third is directed at El Salvador. A request for an additional $100 million military aid for the Duarte regime was included in the foreign aid bill sent to Capitol Hill by the White House. The US Secretary of State, Alexander Haig, has tried to rouse his fellow American capitalists with suggestions that the opposition movements in El Salvador and similar Central American countries are secretly being sponsored by the Russian government. The fact is, when you are living under a regime where the state forces can kill 30,000 in two years, and where one in fifty people possess three-fifths of the land, you don’t need Tsar Brezhnev to tell you of the need for change. But despite Haig’s hysteria, American capitalists seem to have learnt some caution since Vietnam. One hundred and four members of Congress have signed a statement urging Reagan to support negotiations between El Salvador’s government and what they call “left-wing insurgents":
The escalating crises in El Salvador, Guatemala and Nicaragua are reaching a critical juncture and run the risk of involving the United States in a major regional conflagration.
Haig responded to this by insisting on the importance of “investment in foreign assistance" for future American security:
The overwhelming portion of our aid programme will go to nations which share our strategic concerns. (The Guardian, 4 March, 1982.)
Cartoon by George Meddemmen.
As with every other military conflict in the world, what is at stake is the profits of minorities. Guatemala, for example, another US-backed dictatorship, contains much oil and other minerals, and has a vital strategic position near the huge oil fields of Southern Mexico. Many ports in the region are heavily used for US trade.

In El Salvador, then, there is a civil war. Those who oppose the maintenance of the Duarte regime and the particular interests it protects are now represented by the joint Revolutionary Democratic Front and its military wing, the Farabundo Marti National Liberation Front. Many thousands have died in this war. The United States government has supplied arms and “advisers” to the army and has claimed that the uprising is part of a “Communist" plant to take over the region. In their campaign the FMLN-FDR has publicised information about El Salvador. By 1961, for example, six families owned as much land as eighty per cent of all landowners, and nearly three-quarters of young children are still malnourished. But the workers and peasants in El Salvador must look at the backcloth of world capitalism against which they have suffered so much, and question carefully the FMLN-FDR leaders who are now offering to lead them to “national liberation" and “independence”. Mario Sandoval Alarcon, who is reported to control about three thousand armed civilians in a number of “anti-Left" death squads, has long been the leader of a “National Liberation Movement” in Guatemala, and the hated Christian Democrat President Duarte of El Salvador himself was exiled in 1972 for his “subversion”. Social revolution has not taken place if one dictator is simply replaced by another, the system of society remaining the same.

Liberation from capitalism cannot be achieved on a national scale. Socialism will not be introduced by yet another set of military leaders acting “on behalf of the people", whatever their slogans or proclaimed allegiances. This was unwittingly admitted by Luis de Sebastian, European representative of the FDR-FMLN, speaking at their anniversary meeting in London:
The economic model proposed for El Salvador will be a mixed economy. By this we mean that along with a state-owned sector, there will be a private sector . . . We will not yet be socialist . The people‘s views are very much present in the FMLN-FDR’s leadership of the process. We sincerely hope that we will never become detached from the masses, that we will never become an empty bureaucracy dictating to the masses what to do. (Quoted in El Salvador News Bulletin, 13.)
All of the indications are that this “sincere hope” will not be fulfilled. The US government backed the March elections in an attempt to legitimise the process of exploitation without the expense of sending in troops. But any party standing had to present a list of twenty thousand members—not the sort of information any opposition party would want to hand over to the government forces, with their incarceration and torture of political opponents. Taking part in the elections was made potentially so dangerous that the Electoral Council advised candidates to campaign through “paid advertisements in the press, radio and TV, and remain outside the country” (El Diario de Hoy, 16 July, 1981). In the midst of a civil war, and organised by a particularly vicious dictatorship desperate to retain its power, the elections were a travesty of democracy. In solidarity with workers throughout the world, the subjects of that dictatorship would do well to challenge the world capitalist system which cannot tolerate genuine socialist democracy, in the spirit of their anonymous folk poem:
What I'm telling you is true. The rich
   will never lift a finger to help us,
that would be like trying to cover the
   sun with a five-penny piece.
The big merchants, the money lenders
The factory owners, the landowners
The bank owners, the Military Mr. President
Don't wash our shirts stained
   with sweat after our day’s toil,
Don’t fetch us water from the river
Don't build our shacks
Nor will they set the factory machines in motion
Nor till the soil
Nor sow or harvest the seed
All this we do
and it's the same with everything.
If we, with that same fervour with
which we plough the earth,
don't organise and keep fighting
no one will do it for us 
                                    (Poesia Rebelde) 
Clifford Slapper

Stephen Hawking: No Anthropologist (2017)


From the April 2017 issue of the Socialist Standard
In an interview with the Times (7 March) world-famous scientist Stephen Hawking opined:
'"Since civilisation began, aggression has been useful inasmuch as it has definite survival advantages," he said. "It is hard-wired into our genes by Darwinian evolution. Now, however, technology has advanced at such a pace that this aggression may destroy us all by nuclear or biological war. We need to control this inherited instinct by our logic and reason."'He may know a lot about theoretical physics but in stating that human aggression is 'hard-wired' and an 'inherited instinct' he has merely echoed popular prejudices cultivated by certain scientists, as this extract from our pamphlet Are We Prisoners of Our Genes? explains.
After leaving a respectable time for people’s memories of Nazism to dim a little, the defenders of a muscular biological determinism began to make a reappearance. One of the first was the Austrian naturalist Konrad Lorenz. A book he had written in German in 1963 was translated into English and published in 1966 under the title On Aggression. In it he argued that humans were naturally aggressive, or, as he put it, that they were 'phylogenetically programmed' for aggressive behaviour.
In a chapter entitled 'The Spontaneity of Aggression', Lorenz claimed that aggression in humans was an internally-generated 'drive' that was part of their genetically-inherited physiology:
'Knowing of the fact that the aggression drive is a true, primarily species-preserving instinct enables us to recognise its full danger: it is the spontaneity of the instinct that makes it so dangerous. If it were merely a reaction to certain external factors, as many sociologists and psychologists maintain, the state of mankind would not be so perilous as it really is, for, in that case, the reaction-eliciting factors could be eliminated with some hope of success' (On Aggression, Methuen, 1969, p. 40).
This assertion was based on his own studies of non-human animals, mainly birds and fishes, and on his personal belief in Freud's view that 'we are still driven by the same instincts as our prehuman ancestors' (p. 193).
His fellow scientists were highly critical of the book. They pointed out that in talking about 'instincts' in humans he was having recourse to a notion long since discarded as unhelpful; that his view about there being 'phylogenetically evolved patterns of social behaviour' in humans went against the evidence of anthropology and history; that it by no means followed that what applied to other animals therefore applied to humans; that in any event the behaviour he described as aggressive didn’t apply to all animals; that even in those to which it did apply it was not always clear that it might not be learned.
On the key issue of whether aggressive behaviour in humans was triggered in response to external factors or, as Lorenz asserted, in response to some internal 'drive' that had to be 'discharged', opinion (apart from a few die-hard Freudians) was unanimous: Lorenz had drawn the wrong conclusions from the facts. There was no 'fighting instinct' or 'aggression drive' in humans; aggressive behaviour in humans was triggered by external causes. This being so, the situation was not as dangerous as Lorenz had imagined since, on his own admission, this meant that these external aggression-eliciting factors could be eliminated 'with some hope of success'.
Ironically, but fittingly, it is the science of genetics itself that is undermining the speculations and prejudices of the biological determinists. Its advances are discovering that the parts of the brain involved in human social behaviour are 'wired' after birth, depending on the social environment in which the human child grows up. It is this biological capacity to get wired after birth that is gene-governed, not the content of the wiring. In other words, the findings of genetics are confirming those of anthropology that the main biological characteristic of humans that distinguishes us from non-human animals is the capacity, as a species, to engage in a great variety of social behaviours.
(Pamphlet can be obtained from us at 52 Clapham High St, London SW4 7UN, price £5 postage included)

Friday, April 7, 2017

Pin-stripe power (1983)

From the April 1983 issue of the Socialist Standard

Civil servants have always had many detractors and few defenders. Among the latter was Bernard Shaw, with his back- handed tribute that “even those public departments that were bywords for incompetence and red tape were far more efficient than the commercial adventurers who derided them”, and Sir Leo Chiozza Money who, with experience to guide him, presented an argued case on the same lines of comparison with private industry. Among the criticisms may be listed that the numbers of civil servants needlessly keep on increasing and that they enjoy a privileged position in respect of pay, holidays and pensions and finally, that it is they and not the government who run the country. The criticisms are mostly based on ignorance of the facts and disregard of the purposes for which capitalism needs a civil service and the interest capitalists have in running the service as cheaply as possibly.

The numbers of civil servants have indeed increased enormously, from 21,300 in 1832 to 521,000 in 1982. As the population is now four times what it was in 1832 this means that, relative to population, the civil service has been multiplied by six. (These figures all exclude the postal and telecom services whose staff were, until 1969, civil servants, and the industrial civil servants employed in government dockyards and the Ordnance factories.) But the increases have all been the result of the government taking on additional functions called for by capitalism as, for example, in the fields of Income Tax. Customs & Excise, Education, Factory Acts and latterly the social services.

Governments have always been aware of their need to overhaul and reorganise the civil service periodically, to bring it into line with new functions and to keep the cost down. This began with a Report on the Civil Service in 1853 and a corresponding report in 1854 on the Post Office staff, and has been followed by several other enquiries including three Royal Commissions in this century, 1912, 1931 and 1955. Further enquiries and reorganisations have been undertaken under the present government. Some of the recommendations of the 1854 Report have a modern ring. It proposed paid holidays for lower grade Post Office staff—not in their interest, but in that of efficiency. The principle was laid down that it is possible to recruit suitable staff at low rates of pay by holding out the inducement that some of them may get promotion to a more highly paid grade. It observed that “subsistence allowances" to meet necessary out-of-pocket expenditure arising out of the job were not intended to be an undercover method of getting more pay.

The idea that civil servants are privileged appears to be based on the suspicion that this half-million strong army is a self-governing body which fixes its own pay and conditions in defiance of efforts of Parliament and government to control them. There was some justification for this in respect of the smaller body of civil servants before 1853. Each department had its own arrangements, appointment was by patronage or influence or the actual sale of jobs, and there were no qualifying examinations. This was progressively altered between 1853 and 1870, by which time most features of the modern system had been established. Successive governments and committees of enquiry have considered all sorts of methods for fixing pay and conditions, including leaving them to market forces, so that pay need only be enough to attract a sufficient number of applicants

Of course the civil service would, if it could, be "privileged" but no government or committee has accepted the claim made by civil service unions that the government should be “a model employer" in the sense of setting a "good" example to all other employers.

The idea of fixing civil service pay in relation to movements of outside pay, which had long been operated in the Post Office, was recommended by the Tomlin Commission in 1931 and in a much more elaborate form by the Priestley Commission in 1955. Under the latter comparison is made grade by grade with outside comparable work, taking into account not only pay but hours, annual leave, pensions and so on. Two particular points of criticism have been that full account in making the comparisons has not been given to the fact that civil service pensions are kept in line with the rise in prices ("index-linking”), and that in the depression little or no weight has been given to the civil servant's security of employment. Both have been under review.

Have governments then been unable to control the size and pay of the civil service? Actual events show otherwise. All awards of the arbitration tribunals have been subject to what is called "the overriding authority of Parliament", meaning that the government reserved the right to disregard an award. When the Thatcher government, at the end of the abortive strikes of civil servants in 1981, promised arbitration it was "on the understanding that the government reserves the right . . .  to ask the House of Commons to approve setting aside the Tribunal's award on grounds of overriding national policy". On occasion awards have been disregarded, arbitration itself has been suspended, as also the agreed application of the "fair comparison" operatives. Civil service pay was subjected to the "economy" cuts in 1931 and the present government has fixed overall limits on expenditure. From time to time the numbers have been drastically reduced as between 1945 and 1960 with the loss of 80,000 jobs and again under the Thatcher government with a reduction from 571,000 in 1977 to 521,000 in 1982. More cuts are threatened.

If Sir Chiozza Money were alive today and making his comparison between the size and efficiency of the civil service and the position in industry he would certainly want to look into what happened in the fourteen years 1953-1967. For those years the government Statistical Office published figures showing the changes that had taken place in respect of the staff employed in manufacturing industry as a whole. The staff were divided for this purpose into "wage-earners" and “salary-earners" and presumably a large proportion of the latter were doing jobs similar to those of the clerical civil service.

While during those fourteen years there was hardly any increase in the number of civil servants, manufacturing industry showed a fall in the number of wage earners from 6,160,000 to 5,780,000 but the number of salary earners in manufacture went up from 837,000 to 2,040,000, an increase of 1,203,000.

No doubt the employers would say that the increase resulted largely from the masses of paper work thrust on industry through legislation on taxation, factory acts, and the provision of information to government departments; but it is factors like these which have explained the increase in the number of civil servants in those periods when the civil service was growing.

All of the above relates to the civil service as a whole. A different interpretation of civil servants "running the country" concerns only the permanent officials at the top of each department who are in direct contact with the political heads, the Ministers. Professor Brian Chapman has defined their role as being "To advise, warn, and assist those responsible for State policy and when desired, to provide the organisation for its implementation. The responsibility for policy decisions lies with the political members of the executive, and customarily civil servants are protected from public blame or censure for their advice". In the modern British civil service it has been accepted that, whatever their own political views may be, those permanent officials will give their advice objectively, irrespective of the politics and policy of the government. (In America the "spoils" system has operated, under which the incoming administration appoints its own political supporters in place of the old lot.)

In practice governments have not always been satisfied to rely on the permanent officials either to carry out their internal administrative responsibilities or their work of advising Ministers, as when Thatcher appointed Derek Rayner from Marks and Spencer to secure economies of staffing and Professor Walters as adviser on economic matters.

Ministers in charge of departments are there to see that the permanent officials carry out cabinet policy. They work under considerable disadvantage. They are not, and are not intended to be, expert in the work of the Department, and may be shifted, at the will of the Prime Minister, from one Department to another. That they immediately make speeches about the work of their new department is possible only because the permanent officials provide them with informed briefs.

Opinions on how the system works vary greatly. Some politicians have said that they have had the fullest co-operation. Others (the late Richard Crossman is one) have complained of greater or less degrees of obstruction. The Times, (20 December 1982) pin-pointed the problem in relation to the Defence Department when John Nott resigned and a successor had to be chosen: “There is undoubtedly a mammoth administrative challenge if the Secretary of State is to run the three services, rather than the three services running the Secretary of State". In the Defence Department and all other departments the government has its remedies. It can change the Minister, choose the men it wants to be the top permanent officials and of course it controls the finance.

So what remains of the charge that government policies are determined by the permanent officials in the Civil Service? The case with which different governments adopt different policies, and the same government goes in for U-turns, shows it to be baseless. The same, or the same kind of. permanent officials were there when steel was nationalised by the Labour Government. de-nationalised by the Tories and re-nationalised by the next Labour government. The same applies to the “privatisation" policies introduced by the Thatcher government. The permanent officials went along with Labour and Tory Keynesian policies for thirty years after 1945 and then fell in with monetarist policies when the Thatcher government came to power.

If there are Labour Party members who complain that the old Keynesian rubbish did not solve the unemployment problem, and Tory Party members who complain that the Thatcher government's old monetarist rubbish has likewise failed, they really cannot blame the Civil Service permanent officials. They brought it all on themselves, as the determination of both parties to perpetuate capitalism.
Edgar Hardcastle 

Commodity production and its abolition (1985)

From the April 1985 issue of the Socialist Standard
In July 1979 we published extracts from a pamphlet published in France Un monde sans argent: le communisme ("A World Without Money. Communism") — as evidence that the spread of socialist ideas does not depend exclusively on our own efforts since capitalism itself generates the idea of socialism as a classless, stateless, moneyless society. We publish below a chapter from another pamphlet published in France last year, entitled Communisme: éléments de reflexion, as a further confirmation of this view (though in this case, as certain references in the text show, the authors were clearly aware of our existence). As in 1979, we are once again compelled to record our difference with the views expressed elsewhere in the pamphlet as to how communism (or socialism, the same thing) should be achieved.
In traditional societies, whatever the status of their members, the hierarchy, rules and norms which divided human beings into rulers and ruled were counterbalanced by a whole collection of rights and duties and were regularly transgressed by social practices (festivals, etc.). Further, the relationships of dependence and authority which bound people together were essentially personal relationships. Oppression was real but it was transparent. On the other hand, from the moment that commodity relations became widespread and extended to the buying and selling of labour power through the wages system (an extension which both allowed and accompanied the establishment of capitalist relations of production) it was no longer the relationships between persons that was decisive but the production of commodities.

With the domination of capitalism, human relationships seem no longer to depend on men and women, but are realised and determined by a symbol: money. As all human activities can be represented and transformed by money they become a collection of objects subject to laws independent of the human will. Relationships between people take place through produced things and through the relations between these commodities.

In capitalist society all goods are produced for sale, for profit. They can therefore only exist as commodities, defined by their value. Thus the millions of different kinds of objects produced by human activity are reduced to a common denominator — their commercial value — measured by a common standard: money. This allows them to be compared and exchanged, to be entirely dominated by the market.

Money becomes the universal abstraction through which everything must pass so that people are most often led to see themselves as potential competitors whose absence of relationships finds compensation in the fetishism they have towards commodities. By a proliferation of objects which have no other use than to bring in money, and which are at the same time substitutes replacing human activity, the commodity and the desire to own present themselves as expressions of a person s individuality. Capital responds to human needs by a profusion of artificial satisfactions: to individuals who want to "rediscover" nature capital offers it to them functional and mechanised; to individuals stifling under the weight of constraints capital provides leisure; the individuals seeking love as a refuge for their emptiness are submerged by capital under a cheap eroticism. Never has any society so united, so linked human beings to each other, to the extent of making their activities depend on those of others; yet never has any society made people so indifferent to other people, and more hostile to them too since the links which join them the market. competition — also divide them.

The logic of commodity domination is also a system of widespread waste and destruction: goods are made not to last and to lead to other sales, natural resources are plundered, food is no longer natural, the "surplus" agricultural products of one part of the globe are destroyed while the other part is kept in a state of shortage, the war economy becomes general, etc.

The internal logic of capitalism is such that the goods it produces cannot be considered independently of the commodity process. Commodities are not "neutral" goods (use value) which it suffices to rid of their subjection to money (exchange value). Commodity exchange and use are only two aspects of the same social relation. Capitalism has fused production, sale and use into a coherent whole. People prefer to deprive themselves of what might logically appear to be essential rather than deprive themselves of the latest gadget which makes them be "in fashion". Through consumption a process of distinction takes place with regard to those who do not buy such and such a product, and a process of identification with the group of those who have bought the same product, whose use is supposed to let us live the moments we don’t live and to allow us the relationships we don’t have. The important thing is that the advantage should be apparent and it matters little that it is only apparent.

The point has been reached where the necessary degradation of objects is calculated and decided. The market must not be clogged with products that last too long. These represent money that is tied up. The faster capital turns over — the faster it resumes the form of money to lose it once again in becoming a concrete commodity again — the more it brings in. It is reinvested increased by a profit. Everything must circulate quickly.

For this, the commodities offered on the market form an extremely hierarchised whole. There is not one or several commodities for a given need but a whole multitude of them of the same or of competing marks. This diversity claims to respond to the variety of people's needs: "the customer must have a choice!" In fact, customers only have the choice allowed by their financial means and social roles. Many commodities respond to the same need but are differentiated by their quality and price. Different products may correspond to different uses, but these different uses are not available to the same individuals. Like production these uses are socially determined.

In order to disguise the alienation of the human being, reduced to the role of producer and then of consumer, capitalism has to maintain the illusion of a separation between production and consumption. The separation between production and consumption thus appears as a natural division between two quite distinct spheres of social life. Nothing is less true. First, the frontier between what is called production time and what is called consumption time is moving. Into which category come cooking and a number of other activities? Secondly, every act of production is also necessarily an act of consumption. It is only matter that is being transformed in a certain way and for a certain purpose. In destroying, or if you want in consuming certain things, other things are at the same time obtained, or if you want produced. Consumption involves production; production involves consumption.

The concepts of production and consumption are not neutral. The capitalist use of the concept of production obscures the fact that the human being is a part of his milieu and of the whole of nature. A chicken becomes an egg-making factory. Everything is then interpreted in terms of domination and use. Man the producer—supposedly conscious and master of himself—sets out to conquer nature: he wishes to be his own master just as he is the master of the object he fashions, but in fact he does not cease to be an object himself, his own object.

As communism is the creation of new social relationships between people which would bring about a quite different human activity, it must be understood that production would not be what it is today without money. If we can, for want of a better term, still speak of production to express the process by which a part of human activity would be devoted to reproducing existence and in which would be expressed the human ability to create, to innovate and to transform, the disappearance of exploitation and the abolition of money would mean that this production would not involve the subjection of people to it since it would be they who would decide its aims, its means and its conditions. It would therefore be an expression of their humanity and would not strip them of their other dimensions (love, play, dreaming, etc.). Within the co-operative society based on common ownership of the means of production, the producers would not exchange their products, just as little would the labour employed on the products appear as the value of these products, as a material quality possessed by them. These goods, not having the quality of value, would not be able to be hoarded nor exchanged (in accordance with this value, whatever its method of measurement), nor, even less so, sold. They would have no other role than to satisfy human needs and desires as these would be felt in a given period.

With the elimination of commodity production would disappear the domination of the product over the producer. People would rediscover the links with what they make. With the disappearance of money goods would be freely available and free of charge. It would no longer be a question of having to have a certain amount of money in order to have the right to obtain such and such a thing. But communist society would not be an extension of our "consumer" society. It would not be an immense supermarket in which passive human beings would only have to help themselves. There would no longer be a scramble for exploitable resources without concern for the future, nor a rush for useless gadgets which give the illusion of inventiveness and newness. If it was decided to save one or two well-made articles from this pile of rubbish, human activity would be both simpler and richer. Thus would be eliminated a number of the consequences of production linked to the "necessity" of profitability and competitiveness: the decrease in the importance of human activity in the production of things, waste, pollution, the international division of labour, etc.

Communism is not an appropriation of value by the producers but its negation. The fact that a product had been produced by such and such a person would not at all imply the persistence of the principle of property, not even "decentralised ”. Productive activity would no longer be linked to the idea of ownership, but to individual and collective creativity, to the consciousness that human needs, individual and communal, have to be provided for.

With the substitution of common ownership for exchange, goods would cease to have an economic value and would simply become physical objects which human beings would be able to use to satisfy some need or other. In this respect these objects would be fundamentally different from those (even those of the same appearance) which capitalism has created and developed. It would not be a question of simply taking over the goods of the past, but of rethinking them, sometimes replacing them, according to the criterion of enjoyment rather than that of profit. To this change of aim would correspond just as profound a change in the productive process and thus a rethinking of technology involving in addition to the use of the "achievements" left by capitalism, the rediscovery of technologies previously abandoned as unprofitable, and innovation which does not subject human beings to machines.

This new organisation of productive activity would not eliminate the need to estimate the needs and possibilities of the community at a given time. But these would no longer be reduced to a common denominator measured by a common unit. It would be as physical quantities that they would be counted and would interest people. But once again communism must not be reduced to problems of calculation. If this were to be done, this would be to substitute a technocratic ideal for the perspective of a human community, to perpetuate work as a social activity external to men and women.

In the past communists have put forward the idea that the distribution of products could be settled by the introduction of labour vouchers corresponding, after making certain deductions for the common funds, to the average social labour-time undertaken by the individual. In fact, the existence of a common standard to measure products and work cannot amount to a real abolition of the wages system and exchange. and so not of value. Further — to be "fair" — variations (which, besides, would be quite arbitrary) would have to be introduced in respect of the difficulty of the work, its degree of interest, etc. So there would be a return to an "economic calculation", requiring a “unit of value" whether this was expressed in money or directly in labour-time. Communism, as a moneyless society, would, on the contrary, not need any universal unit of measurement but would be able to calculate in kind. The attraction of such and such an object would then come from the object itself and no longer from a value attributed to it more or less arbitrarily. Its production and use would be determined according to what they implied for human beings and nature.

Along with the disappearance of commercial value would disappear the division of the human being into a producer and a consumer. In communist society, consumption would not be opposed to production since there would be no contradiction between being concerned with oneself and concerning oneself with someone else. The group or the individual would express themselves through what they did. Unless this was imposed by the very nature of a product, people would no longer need to hurry all the time as they would no longer be constrained by the necessity to produce commodities. The "consumer'’ would not be able to blame the "producer" for what he or she did by invoking the money that had been paid since none would be given in exchange, but simply to criticise from the inside. not from the outside. What would be at issue would be their common effort.



Poverty in the USA (1963)

From the September 1963 issue of the Socialist Standard

From time to time the London Times draws attention to admissions of poverty in America. One such article from their correspondent in Washington appeared in the issue of April 19.

It starts off with the statement: ‘‘Every fifth American lives in poverty, and many more in deprivation, according to official statistics. Altogether 77 million are either poor or are denied an adequate standard of living.”

Criticising Professor Galbraith for his over optimistic assumptions about iminishing inequality, the Times article goes on:--
  The starting point could well be the figures of the United States Bureau of Labour Statistics which draw the line between poverty and deprivation at $4,000 a year (£1,428) for a family of four and $2,000 (£714) for an individual living alone. These figures do not necessarily mean cash income, but include the price of food grown by small farmers, and in 1960 nearly 10,500,000 families received less.
  The line drawn between deprivation and a modest but adequate standard of living was drawn at a family income level of about $6,000 a year (£2,142). Again according to the Labour Department, in 1960 an urban family of four required between $5.036 and $7,678 a year to live adequately. More than two-fifths of the population do not earn $6000 a year.
  The areas of poverty and deprivation are easily defined. Studies of the Conference of Economic Progress showed that 37.2 per cent. lived in the south; 18.3 were unemployed; 16.2 per cent. were elderly; 16.2 per cent, were non-white; and 12.1 per cent. lived on farms.
    Circumstances have changed little since 1959 when two-thirds of all farm workers earned less than $1,000 (£357) and some migratory workers earned less than $500. Nearly 80 per cent. of all non-white families lived in poverty or deprivation, and about 32 per cent, earned less than $2.000. Retired couples received social security pensions of $1.500 a year but many poor people do not contribute to the scheme.
Among other interesting details it is stated that in the years since 1929 inequality of income has in one respect increased: “If the poor did not become poorer the rich became richer.”

It is hardly necessary to remind readers that Socialists do not think that poverty is a peculiarity of any one part of the world. All countries are good to live in for the rich and all countries have the poor for the rich to shed tears over.
Edgar Hardcastle

Cooking the Books: Bill Gates on Robots (2017)

The Cooking the Books column from the April 2017 issue of the Socialist Standard
The online magazine Quartz (17 February) put up a video interview with Bill Gates under the headline 'The robot that takes your job should pay taxes, says Bill Gates'.
Gates didn't say anything particularly profound. The point he made was that robotisation would release workers for other kinds of work, but that this would have to be paid for, one source of money for this being a tax on robots, i. e., on capitalist firms installing them. The other kind of work he had in mind was catering better for some particular human needs:
'what the world wants is to take this opportunity to make all the goods and services we have today, and free up labor, let us do a better job of reaching out to the elderly, having smaller class sizes, helping kids with special needs. You know, all of those are things where human empathy and understanding are still very, very unique. And we still deal with an immense shortage of people to help out there.'
It does make sense to use work resources freed up by robotisation to meet these, and other, needs. This is what would happen in socialist society since it would a society directly geared to meeting human needs. But we are not living in socialist society, only under capitalism where this is not the case. So it's not that simple.
Robotisation is no different in principle from the mechanisation that has gone on since the beginning of capitalism. It is, in fact, the latest application of machines to production. Machines have always displaced living labour but, despite dire predictions by some, this has not led to steadily increasing unemployment. Capital accumulation has continued, with the displaced labour (though not necessarily individual displaced workers) being transferred to other industries (making the machines as well as in new industries) and also in the 'service sector'.
This sector includes providers of personal services to workers (and capitalists) for profit, but, also, in large part, services provided by the government and paid for from taxes. Apart from its own administration, national and local, the government provides for health care and education, for the benefit of the capitalist class by providing and maintaining an educated and healthy workforce to produce their profits.
These are part of the necessary expenses of running the capitalist system which capitalists are prepared to pay for out of taxation, which in the end is a burden on their profits. But there are limits. They want these expenses kept to the minimum necessary to benefit them, not to provide an adequate service for workers and their dependants.
Gates favours some of the benefits of the increased productivity that robots bring being used to 'do a better job of reaching out to the elderly, having smaller class sizes, helping kids with special needs.' He should ask himself why this has not happened already. Why are services for the elderly and those with special needs not adequate? Why are there not smaller classes in schools? After all, sixty years ago automation was said to hold out the same promise.
The answer is that capitalism is not a system geared to meeting human needs, certainly not the needs of worker's dependants who don't contribute to production. As a profit-making system, its priority is profits and conditions for profit-making.
Robotisation under capitalism will not benefit people in the way Gates said he would like. The service sector may well expand but mainly for those who can pay. The needs of those who can't will still be neglected and grossly inadequate.

Thursday, April 6, 2017

Riding for a fall (2017)

Book Review from the April 2017 issue of the Socialist Standard

'Corbyn. The Strange Rebirth of Radical Politics'.  By Richard Seymour. (Verso. 2016. 248 pages)

Although written early last year and so missing developments since – Corbyn's re-election, the Brexit vote, Labour's victory in London mayor elections – this book still has some relevant things to say.

Seymour explains Corbyn's election as Labour Leader as a reaction to Tony Blair's New Labour project of turning the Labour Party into an openly pro-capitalist party with no other ambition than to win elections to run capitalism more or less as it is. This uninspiring project had no appeal to young people outside the party who wanted change, and who were able to join under new rules for electing the Leader, but neither to many existing Labour Party members.

Despite the almost unanimous and merciless opposition from the media, Corbyn and his supporters were able to use instead social media to rally support for meetings. So, his election was one in the eye for the mainstream media as well as for the unprincipled career politicians that most Labour MPs are. Seymour refutes the idea that Corbyn won because of Trotskyist infiltration (if only because there are not that many of them), seeing most as the sort of people who would otherwise support the Green Party. In fact, the Labour Party bureaucracy excluded many on the grounds that they had previously openly supported the Greens.

Seymour, a former SWP member, has no illusions about the Labour Party which he sees as having always been a non-socialist party out to manage capitalism – his dissection of the Labour Party is the best part of the book – and so doesn't hold out much hope of Corbyn being able to achieve much. He doesn't think he will be able to democratise the Labour Party or is likely to win the 2020 general election or, if he did, that he would be able to change capitalism.

He is not unsympathetic to Corbyn, seeing him as a socialist (even though he admits that Corbyn's programme is no more radical than Harold Wilson's) leading a non-socialist party and for that reason doomed to fail. If true, that would be what the classical continental Social Democratic parties were and why they failed. Reverting to his Trotskyist roots, Seymour sees this predictable failure as positive in that Corbyn's supporters will thereby come to see the Labour Party as useless as a vehicle for socialism and so turn elsewhere but, now as an ex-Trotskyist, not to a vanguard party but to some grass-roots extra-parliamentary anti-capitalist social movement.
Adam Buick