Tuesday, June 22, 2021

Cooking the Books: Lights Out (2021)

The Cooking the Books column from the June 2021 issue of the Socialist Standard

Arising out of our review in February of Aaron Benanav’s Automation and the Future of Work, in which he mentions companies like Tesla ‘pushing toward “lights out” production, in which fully automated work processes, no longer needing human hands, can run in the dark’, a reader has asked:
‘How can a production facility without human labour power (variable capital), as the only commodity capable of adding surplus value in production, possibly be profitable?'
Although in Marx’s day a ‘lights out’ factory was not an issue, it is an extreme case of something that he did consider when, in chapters 8-10 of volume III of Capital, he dealt with the emergence of an average rate of profit which all capital would tend to make.

Our reader is correct. Labour power, when activated, is the only source of surplus value, and so of the profits capitalist enterprises make. Thus Marx called the capital invested in buying it ‘variable’ capital as its value ‘varied’, increased in size, in the course of the production process. The value of the capital invested in plant, machinery, materials, power, etc was transferred unchanged into the value of the product; so Marx called it ‘constant’ capital.

But there was a problem. Assuming that the productivity of all labour power was the same in that any given amount produced the same amount of surplus value, this would mean that industries using more would make a larger profit than those employing less.

To illustrate this point Marx compared five different industries with different average combinations of constant and variable capital. Two will suffice to illustrate his point: one 60 constant and 40 variable; the other 90 constant and 10 variable. The surplus value produced in the first would be 40 and in the second 10, meaning that, if each retained the surplus value produced in it, the rate of profit in the first would be 40 percent and in the second 10 percent.

However, this is not what happens. Industries with a lower proportion of variable capital do not make less profits and, if they did, there would be no incentive for capitalist enterprises to adopt the less labour-intensive, more technologically advanced production methods that is one of capitalism’s observable tendencies.

What happened, Marx explained, was that, as capital flowed into the industries producing more surplus value and out of those producing less, this led to changes in amounts produced and their price that meant in the end that capital of the same size invested in any industry would tend to make the same rate of profit. It was as if all the surplus value produced was pooled and shared out in proportion to the size of the total capital (constant plus variable) invested. In our example, with the total capital invested of 200 and total surplus value produced of 50, the rate of profit in both industries would be 25 percent.

As Marx put it,
  ‘However an industrial capital may be composed, whether a quarter is dead labour and three-quarters living labour, or whether three-quarters is dead labour and only a quarter sets living labour in motion, so that in the one case three times as much surplus labour is sucked out, or surplus value produced, as in the other, ….in both cases it yields the same profit’. (Chapter 9, Penguin edition, p.270)
The same would apply to capital invested in a ‘lights out’ factory. The fact that it would be composed of 100 percent dead labour would be irrelevant; it would still tend to attract the same rate of profit as any other industrial capital of the same size, despite not contributing anything to the pool of surplus value as it did not use any value-producing, living labour.

Capitalism and Automation: Progress Perverted (2021)

Book Reviews from the February 2021 issue of the Socialist Standard
We discuss two recent books on the effects of automation under capitalism.
Aaron Benanav’s Automation and the Future of Work (Verso) is one of a significant number of books published in recent years offering serious critiques of modern capitalism that tend to have one thing in common. While usually describing themselves as ‘anti-capitalist’, in the solutions to the problems they point to in the capitalist system they almost always end up with recommendations not on how to end the system but on how to improve it, how to make it run more ‘caringly’, more ‘fairly’, more ‘equitably’. Lacking a vision of a wholly different kind of world than the current one based on buying and selling, money and wages, and profit, these books advocate action to achieve various reforms, for example – in the most recent popular thinking among authors and activists – what is usually called Universal Basic Income. This idea has been discussed in this journal on a number of occasions and rejected for its inability to bring about any qualitative change in social organisation and for constituting at best a way of redistributing poverty and at worst a sure-fire way of exerting downward pressure on wages and salaries.

Now, however, we have a book that does something different. Not only does it offer an original and thoroughgoing critique of the current social system, but to the never-ending problems it throws up it proposes a truly radical solution: the abolition of the wages system and a ‘post-scarcity’ society of abundance. Readers of this journal will of course know that this is the very non-market-based remedy advocated by socialists such as Marx and William Morris towards the end of the 19th century and which the Socialist Standard has kept alive uninterruptedly since 1904. The author of this book recognises this idea’s pedigree in stating that the ‘vision of post-scarcity was what “socialism” and “communism” had come to mean before later identification with Stalinist central planning and breakneck industrialisation’, and, in his final chapter, entitled ‘Necessity and Freedom’, he describes it variously as, ‘the abolition of private property and monetary exchange in favor of planned cooperation’, ‘a world of fully capacitated individuals … in which every single person could look forward to developing their interests and abilities with full social support’, ‘a world in which democratic associations of women and men replaced the rule of the market with competitive production – and taking advantage of capitalist technologies – reduced the common labors of necessity to expand a realm of individual freedom’, ‘a new form of life that does not organize itself around wage work and monetary exchange’, a society in which ‘everyone can go to the social storehouses and service centers to get what they need’, and finally ‘for most people (…) the first time in their lives that they could enter truly voluntary agreements – without the gun to their heads of a pervasive material insecurity’. In such a society ‘dis-alienating community life – by taking that life under democratic control and collective care – becomes the way to ensure that individual freedom is shared by all’.

While consistently advocating just such arrangements, the Socialist Party has never sought to put forward detailed plans of how the new society of free access will be organised, since we would not seek to dictate now to the majority of socialist-minded workers at the time how to put into practice the plans they will have previously worked out about how to organise production and distribution cooperatively and democratically. Benanav, while not proposing detailed plans either, does, however, have some interesting insights as to how this could be organised or, as he puts it, ‘how the pieces of this defunct world can be reassembled into a new mode of social existence’. For example: ‘We would divide up responsibilities while taking into account individual aptitudes and proclivities. Some tasks would need to be performed locally, but many could be planned on a regional or global scale, using advanced computer technologies.’ Further: ‘The realm of freedom would be the one giving rise to all manner of dynamism: that is where human beings would invent new tools, instruments, and methods of accounting, as well as new games and gadgets, rapidly reallocating resources over time and space to suit changing human tastes (…). The world would then be composed of overlapping partial plans, with interrelated necessary and free activities, rather than a single central plan.’ He concludes, nevertheless, in a way that echoes closely the approach the Socialist Standard has taken in dealing with this subject over the years, by saying: ‘But these issues, as well as the related question of what counts as necessity and what as freedom, would be matters for a free humanity to resolve for itself, politically.’

Much of this follows from the ‘Future of Work’ element in the book’s title. Benanav’s argument about work in capitalism is that the ‘rise of the robots’ discourse common to those he terms ‘automation theorists’ is overblown and that the reason why workers of all kinds, whether in countries of advanced capitalist production or in less developed ones, are seeing increasing pressure on pay, job security and work conditions is not principally that the work is being done by automation (so-called ‘long-run technological unemployment’) but that capitalism in recent decades has experienced ‘deindustrialisation’, that is the number of jobs in the service sector consistently outstripping those in manufacturing side by side with global industrial over-capacity, ongoing wage stagnation, rising inequality and a proliferation of ‘bad jobs’. He sees this, together with the ‘angry ethnonationalisms’ it tends to bring with it, as an inevitable feature of the system’s trajectory leading to increasingly worse conditions for workers at all levels, incapable of remedy by vogue ideas such as Universal Basic Income and only capable of resolution by a movement of new social consciousness uniting ‘around a new emancipatory social project’ to bring in the kind of non-market post-scarcity society outlined above.

Theories of capitalist decay are of course debatable. Capitalism in its history has gone through numerous phases and crises and on the whole has managed, even if in an extremely uneven and irregular way, to improve living standards and conditions for large numbers of its wage slaves. What is not debatable, however, is that, under the current system, as the author puts it, ‘even in the richest countries most people are so atomized, materially insecure and alienated from their collective capacities that their horizons are stunted’ and that the kind of society he recommends to replace capitalism would be far superior to anything that has so far existed or that capitalism could promise in the future. In addition, though it would be, unlike capitalism and as socialists have always maintained, a society of abundance, it would not be – and would not need to be – a society of super-abundance, and this is something that Benanav captures effectively by stating that ‘a literal cornucopia is not required’. He goes on to explain that ‘it is only necessary that scarcity and its accompanying mentality be overcome’ and how ‘abundance is not a technological threshold to be crossed’ but ‘a social relationship, based on the principle that the means of one’s existence will never be at stake in any of one’s relationships’.

The sources drawn upon by Benanav in writing this book are wide and diverse with a good number of charts, graphs and tables and almost 40 pages of extensive documentation. Yet none of this weighs heavily on the reader, since both the thrust and the details of his arguments are laid out in a clear, engaging fashion making them easy, indeed pleasurable, to follow and take in, and causing the whole to hang together in a way that makes it a highly satisfying and persuasive read both for socialists and for anyone open to radical ideas about social development.
Howard Moss


Why no abundance or more free time?

One thing that has puzzled academic economists is why, given the spread in recent years of IT, AI and automation generally, productivity has hardly gone up. In Smart Machines and Service Work: Automation in an Age of Stagnation (Reaktion Books) Jason E. Smith offers an explanation which also challenges those like Paul Mason who see a society of abundance and leisure as in the process of gradually evolving.

Productivity should mean physical output divided by the amount of labour-time required to produce it. Thus, if output increases while the amount of labour-time remain the same or if output remains the same while the amount of labour-time falls, then productivity goes up. This works for a particular factory or industry producing the same product but can’t work for the economy as a whole because what is produced is so different. To get round this, economists measure productivity by dividing the money value of total production by the total number of hours worked. For them, productivity at this level is GDP divided by the hours worked by all workers; which is a pretty meaningless figure, not least because it does not distinguish between hours worked to produce the output and hours worked by workers paid out of the output. It is, however, how ‘productivity’ is defined in this context.

Smith’s explanation as to why the increase in productivity in this sense has been so sluggish in recent decades is that, while productivity has gone up in the sector of the economy producing material goods, it has not gone up by anything like the same amount in the service sector which now accounts for as much as 80 percent of economic activity in the advanced capitalist parts of the world. Most services are labour-intensive and involve personal attention and inter-personal skills that can’t be replicated by machines. In addition, many of these jobs are low-paid, which reduces the incentive for employers to automate them.

Automation since the 1960s, or ‘cybernation’ as it was called, led neither to the mass unemployment nor to the leisure society that was variously predicted but, says Smith, to the growth of the service sector, many of whose jobs are unskilled and low-paid. Smith expects this to continue to be the trend despite all the hype about AI.

That increased productivity in the sense of physical output per hours of productive labour worked should result in the growth of low-paid service jobs is a perverse outcome. Marx had already noted this in the 1860s as, in a passage, Smith quotes from chapter 15 of Volume I of Capital:
  ‘[T]he extraordinary increase in the productivity of large-scale industry, accompanied as it is by both a more intensive and a more extensive exploitation of labour-power in all other spheres of productions, permits a larger and larger part of the working class to be employed unproductively. Hence it is possible to reproduce the ancient domestic slaves, on a constantly extending scale, under the name of a servant class’.
Today the ‘servant class’ is composed not of domestic servants (these still exists and their number is growing) but of those employed by the state – the appropriately called ‘civil servants’ and others – some of whom are engaged in very socially useful work such as teaching and health care but who are nevertheless still paid out of taxes levied on the output of the productive sector of the economy.

Taking less and less time to produce material things and the means to produce them does open up the possibility of a world of plenty, better and more extensive public services and amenities, and free time for people to develop their talents or pursue what interests them. However, this is not achievable on the basis of the present-day class ownership of the means of life and their use to produce wealth for sale with a view to profit. It requires what Smith calls ‘a non- or post-capitalist society’ (and we call ‘socialism’) in which production is directly geared to satisfying people’s needs on the basis of the common ownership and democratic control of society’s productive resources.
Adam Buick

Marx vindicated (2021)

Book Review from the June 2021 issue of the Socialist Standard

Unlearning Marx: Why the Soviet failure was a triumph for Marx. By Steve Paxton, Zero Books, 2021

In August 1918 the Socialist Standard carried an article which made this argument about the recent revolution in Russia:
  ‘Is this huge mass of people, numbering about 160,000,000 and spread over eight and a half millions of square miles, ready for socialism? Are the hunters of the north, the struggling peasant proprietors of the south, the agricultural wage slaves of the Central Provinces, and the industrial wage slaves of the towns convinced of the necessity and equipped with the knowledge required, for the establishment of the social ownership of the means of life? Unless a mental revolution such as the world has never seen before has taken place, or an economic change has occurred immensely more rapidly than history has ever recorded, the answer is “No!”’
Following Marx, the Socialist Party’s contention that Russia’s revolution could not be socialist was twofold: that the number of people who wanted socialism anywhere was extremely small, and Russia being predominantly feudal was economically underdeveloped. At this time, anyone who regarded themselves as Marxist would have agreed that socialism was not possible in one country.

The Socialist Party went on to argue that the Bolsheviks oversaw the eradication of feudalism and the development of capitalism in what became known as the ‘Union of Soviet Socialist Republics’. The USSR was replaced by the Commonwealth of Independent States in 1991. The Socialist Party has always argued that the best analysis of the former USSR is a Marxist one: it reveals its exploitative nature with a ruling class drawn from the ‘Communist’ Party. It was a dictatorship over the proletariat and it was always going to fail. It is a vindication of Marx and the position taken by the Socialist Party.

For some this will involve ‘unlearning’ or learning what Marx had said. Steve Paxton doesn’t mention the Socialist Party’s Marxist analysis of the former USSR. He bases his book mainly on GA Cohen’s Karl Marx’s Theory of History: A Defence, first published in 1976. Cohen’s book has been accused of presenting Marx’s theory of history as a form of technological determinism, though Paxton rejects this interpretation. But when Cohen wrote in his book that ‘high technology was not only necessary but also sufficient for socialism’, it certainly looks like technological determinism. And in the final sentence of Paxton’s Conclusion he writes that he is:
  ‘advocating an overthrow of capitalism by changing the economic structure in the only way it ever really changes – slowly, and in response to changing circumstances, by utilising technological developments created within the existing system.’
So, we sit back and wait for the gadgets to overthrow capitalism. Paxton’s error (and Cohen’s) is in supposing that the socialist revolution will be like previous revolutions, such as the change from feudalism to capitalism. The socialist revolution will be crucially different in that ‘All previous historical movements were movements of minorities, or in the interest of minorities. The proletarian movement is the self-conscious, independent movement of the immense majority, in the interest of the immense majority.’ (Communist Manifesto). The objective is uniquely different too: common ownership of the means of life, with the consequent abolition of wage labour and capital.

It’s a pity that Paxton has allowed himself to be misled because there is much here that is worthwhile. He provides a wealth of data on why Russia under Communist Party rule couldn’t be socialist. Some of it closely parallels arguments the Socialist Party has used for over a century.
Lew Higgins


Blogger's Note:
GA Cohen’s Karl Marx’s Theory of History: A Defence was reviewed in the August 1979 issue of the Socialist Standard.

Monday, June 21, 2021

A Look Round. (1925)

From the July 1925 issue of the Socialist Standard

The Meaning of Capital.

A study of past and present human society shows it to be marked off by distinctly different methods of producing and distributing the wealth that maintains such society. Each social economy, chattel slavery, serfdom, capitalism, has had its own particular religion, morals, philosophy, etc., and each system has developed within itself the elements that made possible the revolutionary change to the new social order. These changes mark important steps in the development of mankind.

To analyse and understand the workings and the forces within the capitalist system is the mission of the Socialist. The capitalists and their agents will fight such a method at every step, for it reveals them as a useless but property-owning class. Their wealth is used primarily for their own profit, irrespective of societies’ needs. Such profit is obtained without effort on their part, because the value of the workers’ means of subsistence for a given time is a minute proportion of the values he can produce in that same time.

Production is carried on to-day for the world’s markets, and profit is derived from the unpaid labour of workers who sell their energy in the labour market as a commodity. Only the capitalist system has presented these features in general, and it was not until the present system prevailed that economic wealth became known as capital. (Evolution of Property Lafargue.)

Capital is not a thing, it is a definite social relation, it presupposes a working class who possess nothing but labour force. In order to spread confusion our opponents often claim that we all possess capital of a sort, we are all capitalists; capital they say may be the workers’ health, the poor woman’s sewing machine, the navvy’s shovel; others, like the I.L.P. and the Labour Party, believe it ought to be publicly owned, while the university professors say it is wealth used to produce further wealth. All fail or pretend to be unable to see that capital is the wealth owned by the capitalists and used to exploit the working class for profit. As Socialism stands for the abolition of exploitation, it stands for the abolition of capital.


A Doctor's Dope.

According to a Dr. Shadwell (Quoted Observer, 17/5/26), there are over two hundred definitions of Socialism, which he says are cities of refuge to its apologists since:—
  “It is always possible to shift the ground and to say when any particular aspect is criticised that it is not Socialism.”
Fortunately Socialists do not rely on definitions, but facts, though there is a maxim that “all colours look alike in the dark.” Our pedantic doctor is eager to find some redeeming features of capitalism, especially as there are still Marxians who adhere to the doctrine of the inevitable “increasing misery.” He can dispose of them in a few words, thus :—
  “There has been a levelling up at one end and a levelling down at the other. It stares one in the face in visible matters of houses, clothes, and locomotion . . . As for clothes, it is no longer possible as it used to be to distinguish classes by clothes . . . and if Capitalists dash about by road in their own cars the proletariat do the same in charabancs.” (Ibid.)
We need not weary you with details of the delightful houses you habitate, every snob in the country has said that the dear workers must be better housed (some day), and the object of the Housing Bill, we were told, was to provide cheap houses for “us” (bye and bye). Clothes (sic)—we do not judge classes by clothes, but by methods of living, hirers and hired, robbers and robbed, but locomotion—ah ! the charabanc, what profligates ! Even the publican says, “No charabancs served here.” And, despite all, we still adhere to the fact that the workers’ conditions can only be measured in relation to the wealth and the pleasures they provide for their hereditary enemies, the capitalists. We fail to find consolation in the fact that when we are dead, other workers may have better houses. We do not appreciate the shoddy, bad fitting garments that cover our ill-fed bodies. Ungrateful scoundrels that we are, we cannot be soothed, because the growth of poverty and pauperism keeps pace with the increase in millionaires. We still want, and will fight on to obtain, the full use of the best that the skill and dexterity of the workers makes possible. We want the world for the workers.
W. E. MacHaffie

Saturday, June 19, 2021

Prejudice and Equality (2006)

From the June 2006 issue of the Socialist Standard

Knowing the history or etymology of a word does not always tell anything about its current usage or meaning. Silly, for instance, used to mean ‘blessed’, but that is just irrelevant to the way it is used now. Sometimes, however, a word’s origin or structure can be quite revealing. Prejudice, for instance, means ‘pre-judge’: to form an opinion about a person or idea or thing in advance without the benefit of a proper understanding.

A prejudice may well involve categorising someone in a particular way, perhaps just because of their appearance: they may be black, Jewish, female, gay, shifty looking, ‘foreign’, or whatever. They may be wearing clothing which suggests that they are a Muslim, or a shirt of a football team you dislike, or just a hoodie. Or you may hear them say a few words and decide that you don’t think much of their accent. In all these cases, a person is being judged – and perhaps dismissed or ignored – by being seen as a member of some group of people, rather than as an individual. Such a prejudice might be justified by saying that ‘they’ are all lazy or untrustworthy or potential terrorists, or just not the sort of person you want to be in any way associated with.

Stereotyping along these lines is one of the foundations of prejudice and bias.Ideas like racism and sexism are not respectable these days, and most people will deny being prejudiced – if you think you aren’t, try the online test at NEW LINK

Prejudice may be merely a matter of dislike, but when it influences the way you behave and leads to some disadvantage for the other person, then that’s discrimination.
 
Someone may be denied a job for reasons quite unrelated to their ability to do it, or they may be refused service in a shop, or made to wait in a queue. And there are far worse things, too, such as racist murders or attacks on anyone who belongs (or appears to belong) to some demonised group. Capitalism is full of examples of prejudice and discrimination. Gender and race have been the most obvious examples, with women being confined to the home, earning lower wages than men, having fewer educational opportunities, being subjected to domestic abuse, and so on. People with dark skins have been treated as less than human, enslaved, confined to the worst housing and worst jobs, lynched and brutalised. The Nazi onslaught on Jews and many other groups, such as Slavs and Roma, is probably the most notorious and despicable example.

Where there is a problem, capitalism often sees the chance of a reform, designed to alleviate some of the worst excesses and make it look as if the system and those who run it care about the most downtrodden. So there is now plenty of legislation against discrimination. For instance, the Equality Act, which came into force earlier this year, covers discrimination on the grounds of religion or belief, sexual orientation, gender, disability and race. Yet it illustrates the point that government legislation cannot in itself change people’s attitudes. Many Christians who run bed-and-breakfast establishments have objected that they can no longer ban ‘undesirables’ from their premises: gays, satanists, Muslims, even other brands of Christian – all may be viewed as not the right kind of person (Observer 26 March).

But it’s not just a matter of likes and dislikes. So often prejudice and discrimination under capitalism can be traced back to competition, for jobs, houses or government handouts. If ‘they’ come over here and take jobs that belong to white workers, then unemployment among whites could be reduced or eliminated by sending ‘them’ back or at least by putting them at the end of the line for jobs. The housing problem would surely be far less serious if ‘they’ were not allowed to jump the queue for council houses. Some group of people can be selected as scapegoats who are blamed for all the ills of society: unemployment, homelessness, crime, violence, insecurity, poverty. Tragically, workers who suffer from these problems will often put the blame onto fellow workers, who in fact may well be even worse off than they are.

Not all prejudice can be said to be caused by competition. Religious bigots, such as the christian B&B owners, can introduce their own forms of intolerance, backed up by nothing more than a dislike of anybody who is in some way different from themselves. And ideas can change, however slowly. Gays and lesbians, for instance, rarely have to keep their sexuality secret nowadays (though in plenty of countries this is not the case). Discrimination against disabled people is far less widespread than it once was. But of course, nobody could pretend that racist ideas are a thing of the past.

And there is one form of discrimination that cannot disappear under capitalism, because it is built in to the system’s very bones. This is discrimination on the grounds of wealth and power: a relatively small number of people have a great deal of both, while the vast majority (the working class) have little of either. It’s only workers who have to worry about discrimination in terms of jobs and housing: if you live off profits and have several luxury apartments and a country mansion, then you hardly need to worry about not being ‘one of us’. Equalising pension arrangements for men and women doesn’t affect you if you’re a millionaire whose post-‘retirement’ standard of living will barely take a cut.

The Socialist Party’s Declaration of Principles claims that a Socialist society will involve ‘the emancipation of all mankind, without distinction of race or sex’. In a world where competition for housing and jobs is no more, where all take an equal part in producing for need and running society democratically, it will be  absurd to suggest that any kind of prejudice could still exist. Maybe we will still form first impressions of a person we meet, but that will be based on their own character and behaviour, not on lumping them in with some ill-defined grouping.

Being a Socialist implies opposition to all kinds of prejudice and a determination to treat people as equals and as individuals.
Paul Bennett

Cooking the Books: Towards an economic crash? (2006)

The Cooking the Books column from the June 2006 issue of the Socialist Standard

“Imbalances ‘pose risk of recession’” ran a headline in the Times on 28 April. The US has a “huge” balance of payments deficit “heading for 7 percent of national income this year”, explained another article. “In turn, Asia has built up vast current account surpluses and foreign exchange reserves”.

The balance of payments is basically the balance between payments coming into a country from the sale abroad of its exports (visible and invisible) and payments going out to pay for its imports (visible and invisible). A deficit exists when imports exceed exports. To pay for exports from the country, dealers in other countries have to acquire the country’s currency while importers into the country have to acquire foreign currency. If a country has a balance of payments deficit, the demand for its currency will be less than that for foreign currencies, so its currency will tend to fall in value (whether through formal devaluation or through floating downwards). The opposite will be the case for a country with a balance of payments surplus; the value of its currency will tend to rise.

Given the US payments deficit and the Asian countries’ surplus, what would normally happen is that the dollar would fall and the Asian currencies rise in value. That this has not happened yet to any great extent is because the countries involved find the present situation to be in their interest. The Asian countries, especially China, with their undervalued currencies benefit from being able to export more (because the price of their exports is lower than it would normally be, making them more competitive), while the US benefits from the Asian countries using part of their surpluses to fund the US government by lending it money (through purchasing its Treasury Bills).

There is a general recognition in international capitalist circles that this situation cannot continue indefinitely – that, sooner or later, in one way or another, the exchange rate adjustments must take place. The big question is how. The ideal solution of “a relatively stable adjustment”, according to Mervyn King, the Governor of the Bank of England appearing before the House of Commons Treasury Committee, would be for this to “happen gradually over ten years in fits and starts”.

But he went on to outline another possible scenario:
  “You can certainly imagine cases where the sharp fall in exchange rates could well lead to a fall-off in financial stability, and start to lead to a disorderly adjustment which could be very costly and might involve recessions in some countries”.
Some critics of capitalism are arguing that this is what is inevitably going to happen (for instance, Loren Goldner in an article predicting an “inflationary blow-out”). This is certainly a possibility, as King admits. But it is not inevitable. King’s other scenario for a “relatively stable adjustment” is also a possibility.

Monetary matters are the froth and bubbles on the real economy. Even so, mismanaging them can provoke an economic crash that might not otherwise occur. But mismanagement is not inevitable. Slumps are only inevitable when caused by movements in the real economy.

Exhibition Review: Modern Times (2006)

Exhibition Review from the June 2006 issue of the Socialist Standard 

‘Modernism 1914-1939: Designing a New World’, Victoria & Albert Museum, London, until 23rd July, £9 adults.

This is an engaging, varied and well structured exhibition put together by the V & A, focusing on ‘modernist’ approaches to architecture, art and the application of science between the wars. The exhibits, ranging from paintings and posters, through to recreated designs and excerpts from film shows like Fritz Lang’s Metropolis and Chaplin’s Modern Times, are suitably and accurately described throughout, generally being set in an appropriate theoretical context.

Although modernism was a varied and dynamic movement, its central themes were an important part of early twentieth century life. In particular, the search for human improvement (if not perfectibility) through the application of the scientific method, rationalist approaches to problem solving and the consideration for human progress that permeated art and architecture, were important milestones in the history of capitalism. With modernism, they probably reached their fullest expression so far.

Some sections examine the link between modernism and concepts of social and political utopia, particularly those emanating from the workers’ movement, and others invite consideration of how authoritarian regimes in Russia, Germany and Italy either enthusiastically used – or reticently accommodated themselves to – modernist precepts.

The work of modernist artists such as Mondrian and architects such as Le Corbusier are stunning and prominently featured, along with subsequent applications of their work. Indeed, it is evident (and telling) just how often the design innovations and imaginative approaches of such individuals were limited or distorted by a social and economic system with its own imperatives and strictures, from giant ‘social housing’ projects to the commercialisation of art.

Not everything that came out of modernism was commendable by any means – the ‘Taylorism’ of the modernist factory production line being a particularly mixed blessing. But it is interesting to imagine how a socialist society – which could have been far more closely aligned to the general modernist approach – might have utilised and applied modernist ideas and techniques for the benefit of humanity. In fact, it is difficult for a socialist to take a tour of the exhibition without thinking this at almost every turn.

By the early twentieth century, the capitalist system had developed a worldwide division of labour and sufficient productive capacity for a socialist society built on abundance to be viable as a possible alternative to it. In this sense, capitalism had become politically obsolete. But at a social and technological level, modernism in this period represented both the struggle to transcend and improve capitalism at the same time, to ensure that forward-thinking, scientific and structured methods were applied for the improvement of society. In the absence of socialist revolution, this took the form (even if by default) of trying to renew or perfect commodity society for the perceived needs of humanity.

In many respects, this represented the apogee of conscious, coherent planning and scientific application within capitalism. Thereafter, it influenced post-war reconstruction before being buried by the eclecticism, anti-rationalism and general scepticism towards grand projects for human advancement typified by the anti-scientific backlash of ‘postmodernism’.

Today, postmodernism represents the incoherence and chaos of a capitalist society that has spurned systematic attempts at social improvement, being a product of the commodification and isolation of everyday life, with the attendant breakdown of social relationships and coherence this has involved.

For all its faults, modernism represented a hope for a brighter future through the search for collective human improvement by scientific, rationalist methods and planning. In rejecting this, postmodernism has since confirmed capitalism’s inability to progress in a sustained and coherent manner, and is symbolic of its general descent into impotent micro-politics, disorder and the intellectual void.
Dave Perrin

50 Years Ago: The Mosley Movement Today (2006)

The 50 Years Ago column from the June 2006 issue of the Socialist Standard

British Fascism’s New Look

1932 saw the birth of the “British Union of Fascists,” with their black shirts and uniforms, armoured cars, their provocative marches through the East End of London, and their Mass rallies. To-day, over 20 years later, the movement is still with us. They still hold out-door meetings, and recently Sir Oswald Mosley, held a number of indoor meetings in Birmingham, Kensington, Brixton, and elsewhere. True, it does not have the membership it had in the ‘thirties. No longer are members allowed to wear uniforms.

Since the war, when over 800 of its members spent a number of years in prison, the movement has been re-organised and renamed. The B.U.F. is now “Union Movement.” The word “Fascism” has – for the time being? – been dropped; no doubt because of its unpopularity. But the British Fascists continue to call themselves “Blackshirt.” At the London County Council Elections 1955, their candidates in Shoreditch and Finsbury urged electors to “Vote Blackshirt.” And “Wake ’Em Up at County Hall.”

“Union Movement” retains its pre-war “Flash” sign on its literature, banners, flags and badges.

To-day we no longer see “British for the British,” or “Britain First,” chalked or whitewashed on walls; although such slogans as “Slump or Mosley,” or the letter “K.B.W.” (Keep Britain White) can sometimes be seen in Kensington, Hackney, Brixton, and elsewhere.

“National Socialism,” the phrase under which the German Nazis operated, has given way to Mosley’s latest: European Socialism”—yet another contradiction! British Fascism wears a New Look!

(From an article by “PEN”, Socialist Standard, June 1956

Greasy Pole: Panic Aboard ‘SS New Labour’ (2006)

The Greasy Pole column from the June 2006 issue of the Socialist Standard
A strategically timed withdrawal from government need not ruin a political career
If Tony Blair had been an officer on board the Titanic it is quite likely that, as the liner subsided into the icy sea, he would have occupied himself in re-arranging the seating on the deck. In that way, he might have hoped to convince the richer and more influential passengers that he was taking action to compensate for the design flaws which had made the ship so sinkable. This may even have persuaded the Cunard Steamship Company to overlook the fact that he had failed to notice the iceberg which ripped open the ship’s hull while he was on watch. But that’s quite enough on maritime disasters; what about this latest reshuffle in the government? (Of course “reshuffle” is another felicitous word – using the same dog-eared set of cards with the same paltry values but flicking them out in a different order hoping for a change of luck).

When it comes to political parties like New Labour “luck” means government ministers being able to give the impression that their control over capitalist society is such that that they can neutralise causes of concern like crime, sickness and pollution. If they can parade statistics which support their self assessment of the effect they have, they are rated as a success and can look forward to promotion to other, more important and more attention-attracting, jobs. But if they can’t provide those statistics they face the sack. And if the government as a whole are in a crisis of inability there is liable to be a tidal wave of sackings, washing away some prominent politicians and encouraging the impression that we are ruled by a fresher, more energetic, government.

This was how it was with Harold Macmillan’s “Night of the Long Knives” in 1962, when the supposedly unflappable Prime Minister was so panicked by some spectacular by-election defeats that he fired,  among others, his Chancellor of the Exchequer and odd-job man Selwyn Lloyd.

Clarke
There have been similarities between Macmillan’s panic and Tony Blair’s recent blunder into the minefield of political reality in conflict with party imagery. Among the prominent victims of Blair’s reshuffle was Charles Clarke, the third in a succession of Home Secretaries who have all pledged to cure crime with a mixture of symptom repression and social surgery. Before he became Home Secretary Clarke, living down his reputation as a fiery student leftwinger, held a succession of increasingly important posts. He became Education Secretary after Estelle Morris had resigned – or sort of been sacked – because she could not keep up with the job. Clarke, who obviously could do the job, put down his marker as a convert to the opponents of a range of traditional Labour policies when he supported the concept of specialist secondary schools and argued that state funding should not be available for “unproductive” humanitarian research. In case there was any misunderstanding he also said that “Universities exist to enable the British economy and society to deal with the challenges posed by the increasingly rapid process of global change.”

Which at least signalled that he had grasped the proper role of schooling in capitalism’s competitive, commodity-based system without any nonsense about developing individual talents. And to drive the point home he introduced the Bills which established topup university fees – even although his party’s election manifesto had solemnly promised not to do this. Clarke had to be one of the favourites to succeed David Blunkett when the latter finally had to give up being Home Secretary. This must have been very satisfying to the one-time Head Boy of the exclusive Highgate School, afterwards President of the Students’ Union at Cambridge, which was a kind of apprenticeship for the job of President of the National Union of Students.

As the Home Office is one of the three big government jobs anyone who gets there might assume they will one day make it to Number Ten. Except that the Home Office is known as a graveyard of political ambition, with quite a few career corpses – like Rab Butler, Roy Jenkins and Douglas Hurd. That fact puts Clarke’s sacking – or rather part-sacking, part–resignation – in another perspective. As Anthony Eden, Harold Wilson and Aneurin Bevan learned, a strategically timed withdrawal from government need not ruin a political career. It is no coincidence that soon after Clarke had left the Home Office he was said to have a promise from Gordon Brown of a prominent job in a future Brown government.

Reid
As a canny, long term operator Clarke will be aware that he has to keep an eye on a particular rival – John Reid, his successor as Home Secretary. Since he came into the job Reid has devoted himself, while being careful to formally salute Clarke’s industry and skill in the Home Office, to undermining Clarke’s hopes of reviving his career, by publicising higher and higher figures for the foreign nationals who should have been deported after release from prison. He has recently described the situation he inherited at the Home Office as having “…some very serious and systemic underlying problems…” and there is no secret about who he considers to be the likeliest person to sort them out.

Like Clarke, Reid is a fully paid up member of the Left Wing to Right Wing Tendency. “I used to be a Communist,” he once said; “I used to believe in Santa Claus”. Not that he is averse to a little gift, like in 1993 when, during the Bosnian war, he spent three relaxing days at a luxury hotel beside a lake in Geneva with his friend the indicted war criminal Radovan Karadzic. At home he has keenly supported measures calculated to raise the blood pressure of the most placid Old Labour devotee – like compulsory Identity Cards, top-university fees and the Iraq war. Speaking on plans to introduce the American company Kaiser into the Health Service, he sneered at anyone having doubts about this privatising measure with the hint that they suffer from intellectual rigidity: “I believe that a preparedness to learn and improve is a sign of strength, not of weakness”.

The ex-Education overlord Reid is as well known for his robust vocabulary as for preparedness to refashion his principles; told that he had been promoted to secretary of State for Health he responded: “Oh fuck. Not Health”. So far he has been too busy undermining Clarke’s reputation to let on about how he feels at being Home Secretary; no doubt he was mollified by the fact that, as MP Frank Field put it, he would “certainly” be among those to challenge Gordon Brown for the Labour leadership.

Beckett
Reid’s enemies (and there are plenty of them) in the Labour Party will be hoping that his intention to unravel the chaos at the HomeOffice will come to grief in face of what Clarke called its “seriously dysfunctional” style of operation, once cursed by David Blunkett as “a culture of incompetence and deliberate undermining of official policy”. Others have had much the same opinion about the Foreign Office and perhaps that was why Margaret Beckett was promoted to take over there – the first ever female Foreign Secretary. Beckett is known (or should that be damned?) as “a safe pair of hands”, which means she can be relied on to bat away any inconvenient questions about Labour’s doomed attempts at efficiently managing British capitalism.

She is another reborn left-winger, who once savaged Neil Kinnock for his refusal to back Tony Blair against Denis Healey for the Deputy Party leadership.On another occasion she deeply upset Joan Lestor (herself no stranger to making massive adjustments in her political standpoint) by accepting Callaghan’s offer of the very job in Education that Lestor had resigned over expenditure cuts. Beckett is well known for her unpretentious demeanour, what with her caravan holidays and her readiness to repair her make-up while sitting chatting in the pub.

But nobody should be deceived that she will fail to represent the international interests of British capitalism for if the ups and downs, as well as the moves from left to right and back again, prove anythingit is her steely resolve to do whatever her job demands.

So these are the new seating arrangements on the deck of the crippled ship. The lifeboats are filling up; being privileged and ruthless helps with getting a seat in them. But there is no prospect that anyone can repair that massive gash in the plates below water. Apart from the few socialists, nobody seems able to offer any idea other than waiting to be picked up by another, equally unhopeful, crew.
Ivan

Saturday, June 12, 2021

Taxation and the workers. The budget and the bottom dog. (1925)

From the June 1925 issue of the Socialist Standard

The introduction of the Budget has once more provided the Labour Party with an opportunity of demonstrating their utility to the master-class and their utter uselessness to the workers ; and right nobly have they risen to the occasion. While hundreds of delicate, half-starved women are being told by unemployment committees that they are not genuinely seeking work these redoubtable champions of the under-dog can find nothing better to do than to kick up a shindy over a tax on silk stockings !

Not only do they find themselves in the company of Liberals such as Runciman and Co. and Tories such as Colonel Gadie, of Bradford and other representatives of the employers of the West Riding, but that notorious organ of democratic enlightenment, the “Daily Mail” also rallies to their support and condemns the fiscal folly of the chameleon Chancellor. How inspiring ! What enthusiasm the spectacle must awaken in the breasts of those who seek to persuade us that the Labour Party is entitled to the support of Socialists !

Now, frankly, fellow-worker, what do these taxes matter to you? Have you ever known them make any practical difference to your condition in the long run? When, for instance, the man who won the war (you know who I mean, of course) bilked the tyrannous landlords of a halfpenny in the pound on the unimproved value of their estates, to provide money for battleships, did you buy a car or take a tour to the Riviera? Of course not ! You went along to your job just as you always had done or you lined up at the Labour Exchange along with hundreds of thousands of others in a similar plight; and such has been your lot whatever taxes have been put on or taken off. Nor is the reason far to seek.

Why are taxes imposed at all? That is the question you must first answer if you are to arrive at any understanding of the matter. As hinted above they are imposed for the purpose of providing for the expenditure of the State. The Labour Party themselves have on occasion shown that the greater proportion of that expenditure is upon the armed forces. Do those forces exist for your benefit? Is it for your sake that the Navy guards the products of the farms and ranches overseas, of the tribute of the gold-fields and of the cotton, cocoanut and other tropical plantations? Is it on your behalf that aircraft terrorise the inhabitants of India and Iraq, where the oilfields are? You only need to remember what happens when a large strike is on to find your answer. Then another branch of the services is told off to see that you do not lay unholy hands on the products of the labour of your class. You are forcibly reminded that in the land of your birth you are the bottom-dog whenever you seek to challenge the "justice” of your subsistence wages.

Of course there are not lacking fatuous boobs who profess to believe that taxation can be and is used for what they are pleased to call “social amelioration” as a primary object. The facts are all against them. Take any form of non-militant expenditure such as that on education, sanitation, the relief of destitution and the like and you will invariably find that such expenditure is manifestly totally inadequate to raise the workers above the level of mere profit-producing machines.

The “education” provided is such as will fit the child for absorption in due course into the factory, shop, or office of the boss. It is primarily an education in discipline necessary to capitalism. The instinctive curiosity of the child is smothered under a heap of “facts” systematically loaded with the cant and prejudice of religion and patriotism. That is all that education means to the workers beyond the rudimentary three r’s.

The sanitation provided in working class areas is the minimum necessary to prevent the spread of infectious diseases to the areas occupied by their exploiters. It is notoriously inadequate to prevent the workers sinking to the C3 level ! After a century of sanitary legislation the slum still survives, a standing menace to healthy social development.

As for the relief of destitution by such methods as insurance, these have been shown in these columns repeatedly as being nothing more than attempts to economise by centralisation—the alternative to extra police protection. Once again the sums given are nothing more than will actually prevent the masses of the destitute from raiding the food stores.

The entire machinery of government thus exists simply for the purpose of preserving the system by which the workers are robbed of the greater portion of the fruits of their labour. It is, therefore, a matter of indifference to the workers how taxes are raised. The essential point to bear in mind is that the sums raised are utilised in opposition to the interests of the workers.

Reformers and taxation-tinkerers of all kinds endeavour to establish some connection between taxes and the workers’ condition in order to claim their electoral support. Protectionists try to maintain that certain forms of taxation will increase employment. Free Traders pretend to oppose them on the ground that such taxes will increase the workers’ cost of living. Neither side have ever proved their case; but even if they had the fact would contain no consolation for the worker.

Whether the workers are busy or idle they are poor and the boom is inevitably followed by the slump. So much for the Protectionist. America is eloquent testimony to the fallacy of his arguments. The Free Traders, whether they call themselves Liberals or Labour men have nothing better to offer. Even were it true that taxes on commodities materially affected their prices for any length of time (which is a mere assumption) how does that affect the workers? Wages are based upon the cost of living of the working-class as shown in last month’s issue of this paper. If there is any truth in the dogma that “the consumer pays” then a rise in the cost of living is “passed on” to the consumer of labour-power, i.e., the capitalist employer ! In actual practice, however, quite irrespective of the incidence of taxation, the workers are engaged in a continual struggle to prevent wages sinking beneath the level of subsistence.

Protectionists and Free Traders alike simply represent the interests of different sections of the exploiting class. The Cobdens and the Brights no less than the Chamberlains were concerned with screwing the maximum amount of profit out of their slaves and simply used the cry of “Taxes” as a means to dupe them on the political field. The triumph of Free Trade was the signal for an all-round reduction in wages.

The Labour Party claims to have inherited the mantle of these Liberal hypocrites. So far as the Socialist is concerned they are very welcome to it. Socialism remains the only means by which the workers can achieve their emancipation from poverty and subjection. The Socialist therefore does not advocate this or that method of financing the State, but only the capture of the machinery of government by the consciously organised working class for the purpose of establishing Socialism and ridding us of the instrument of oppression for ever.
Eric Boden

Editorial: The conflict between religion and Socialism. (1925)

Editorial from the June 1925 issue of the Socialist Standard

Much space has been devoted to this subject in the correspondence columns of the “Daily Herald” since the appearance of an article in which Mr. Wheatley expressed his opinion that there is no reason at all why a Catholic should not be a loyal member of the Labour Party. On this occasion Mr. Wheatley chose to pretend that the Labour Party is a Socialist Party, and that to show that the Labour Programme is compatible with the acceptance of Catholicism is the same thing as showing that Socialism is likewise compatible with it. The force of Mr. Wheatley’s argument is completely destroyed by his own definite assertion elsewhere that the Labour Party is not a Socialist Party. (See April Socialist Standard and Forward, 3rd November, 1923). It is, therefore, not surprising that the Editor of the “Daily Herald” declined to insert a letter pointing out Mr. Wheatley’s contradiction of his own argument. This is strictly in accordance with the “Herald’s” well-known principle of throwing open its columns to all shades of opinion—which agree with the Editor’s. If the opinion disagrees the columns are still open to those who can afford to pay the usual advertising rates.

The controversy was carried a stage further by the assertion of Mr. C. Diamond that a Catholic could not be a Socialist, but could be a member of the Labour Party because that body is not a Socialist Party. Mr. Diamond is the Editor of the “Catholic Herald,” and has three times stood as a Labour candidate with the official endorsement of the National Labour Party. He was accepted each time
  “In face of the fact that he distinctly declared that while he was a Labour man he was not a Socialist Candidate” (Catholic Herald, 23rd May, 1925).
He wrote to the “Daily Herald” (8th May) and after quoting from our pamphlet. “Socialism and Religion,” in support of his views, went on :—
  “Mr. E. Van der Velde, leader of the Belgian Socialist Party in his “Essais Socialistes,” p. 148, says: “To be at the same time Catholic and Socialist, is not only a contradiction but a practical impossibility.” ….
   Cardinal Mercier declares “all the Popes who were witnesses of the dissolving action of Socialism—Pius IX, Leo XIII, Pius X, Benedict XV—condemned Socialism. The present Pope, Pius XI, condemns it.”
  It is surely only fair to Catholics and Socialists that the truth should be known.”
The Editor of the “Herald” added his comment as follows :—
  “Mr. Diamond, who has been three times a Labour candidate, must know that the Socialist Party of Great Britain is a small organisation which has no authority to commit the Labour Movement to any point of view. He must know also that the controversies between Catholics and Socialists (and, indeed, Liberals as well) on the Continent have no counterpart in this country.
   Mr. Diamond accused Mr. Ben Spoor of having stated that the Labour Party was not Socialist. Mr. Spoor has denied that in our columns, but Mr. Diamond offers him no apology.”
With regard to Mr. Spoor and the statement he was alleged to have made, Mr. Diamond informs his readers that he is still engaged in a search for the exact quotation (23rd May). But surely the request for an apology is a piece of impudence, coming as it does from the “Daily Herald” Editor in view of his refusal to publish the admission made by Mr. Wheatley or to publish a similar admission made by Mr. Snowden and sent to him after the publication of Mr. Diamond’s letter. Other correspondents whose letters the “Herald” selected for insertion claimed Father O’Meara, of Corpus Christi Church, Brixton, and Father Hagerty, as Catholic priests, who are also Socialists.

Mr. Diamond accordingly approached Fr. O’Meara, who was a Labour candidate and is still an active Labour supporter, for his views. The reply is a plain denial.
  “You can deny most emphatically that I am a Socialist” (Catholic Herald, 23 May).
As for Father Hagerty, it seems, according to Mr. Diamond, that he has ceased to be a Catholic Priest “in good standing,” and it is therefore as reasonable to quote his views as representing those of the Catholic Church as it would be to quote the secularist Mr. McCabe on the ground that he had once been a monk.

As the “Herald” made some misleading remarks about the Socialist Party, the following letter was addressed to them, but they refuse to publish it :—

May 19th, 1925.
The “Editor,”
Daily Herald,”
2, Carmelite Street, E.C.


Dear Sir,

re ” SOCIALISM & RELIGION.”

Our attention has been called to a letter written by Mr. C. Diamond which dealt with the antagonism between Socialism and Religion, and was published in your columns on the 8th inst. .Your Editorial comment contains the following passage :— “Mr. Diamond . . . must know that the Socialist Party of Great Britain is a small organisation which has no authority to commit the Labour Movement to any point of view.” In view of probable misunderstanding arising from this, we ask that you insert this letter in order that your readers may know that while the Socialist Party claims to represent the Socialist view on religion as on all other matters, it has not claimed and has no desire to speak in the name of the Labour Party to which it is opposed.

As too, smallness of numbers is no proof of mistaken opinions, we would welcome the opportunity to state in the “Daily Herald” the Socialist attitude of opposition to religion because so far only one side of the case has been given publicity.
Yours faithfully,
General Secretary.


What plainly divides Socialism from all kinds of religious belief is that “Socialism is a naturalistic and materialistic philosophy. It entirely excludes the supernatural.” What causes the Catholic and Protestant Church as institutions and the Labour Party as a political body to oppose Socialism is equally plain.

Socialism stands for the abolition of private property in the means of wealth production and distribution; it involves therefore the abolition of the right to “live by owning,” which is at present enjoyed by the propertied class. The Labour Party, while advocating certain reforms which meet with the approval of the Churches do not advocate Socialism. They advocate Nationalisation or State Capitalism, which permits the capitalist to continue living on his investments, the only real difference being that he lends the money to the Government instead of investing it in privately-controlled companies. It is ultimately of no importance to the Churches as property owners or to the rest of the propertied class, how they get their income so long as they do get it. It is equally immaterial to the workers whether they are exploited by private companies to provide that income or whether they are exploited directly by the State. What they must recognise is that the Labour Party and the Churches are in favour of a continuance of the exploiting system with certain minor alterations. Moreover it is not simply a question of material interest. Anyone who cares to enquire into the economic doctrines which underlie the Labour Party programme will find that those doctrines do not treat profit and interest as exploitation, and do not recognise the possibility of abolishing them. Thus Mr. MacDonald in his “Socialism and Society” and Mr. Tawney in his “Acquisitive Society” are agreed that industry cannot be carried on unless the capitalist is paid for the use of his property. Interest is for them not a feature of capitalism which can now be dispensed with along with the system to which it belongs, but a feature of modern industry inevitable unless we destroy that industry and revert to peasant and handicraft production.

Here is a fundamental cleavage between the Socialist and the Labour Party. It is also a cleavage between the Socialist and the Catholic Church.

In his Encyclical “The Condition of the Worker,” Pope Leo XIII. clearly recognised this. Dr. Cohalan, Bishop of Cork, preaching on the Encyclical (see Freeman’s Journal, Oct. 12, 1916) pointed out that most people who describe themselves as Socialist do not deny rights of private property and therefore do not come under the Pope’s ban : Taking over railways, tramways, water supply, etc.
  “By the State … is not Socialism. It does not imply a denial of private ownership, or of succession, or of the wage-earning system. The employees of the State are wage-earners.”
Socialism on the other hand means the abolition of the wages system. It may suit the Labour Party to get votes by pretending on the one hand to be Socialist, and on the other repudiating Socialism in order to attract religious people, but for their own sake the sooner the workers recognise the real facts the better for them. We stand for Socialism with all its implications, the Labour Party from confusion of thought and dishonesty of purpose is not even willing to have the Socialist view towards religion stated in the pages of the “Daily Herald.”

There are, of course, other aspects of this vital antagonism to be considered. Fraser, in the Golden Bough,” draws attention to one of them.
  “It might with some show of reason be maintained that no belief has done so much to retard the economic, and thereby the social progress of mankind as the belief in the immortality of the soul, for this belief has led race after race, generation after generation, to sacrifice the real wants of the living to the imaginary wants of the dead. The waste and destruction of life and property which this faith has entailed are enormous and incalculable” (Psyche’s Task).
Mentally and materially the obstruction of effort and waste of resources caused by the superstitions of religion and the conflict of sects is still holding back the human race. The believer in a mythical future life will never whole-heartedly devote himself to perfecting the real life here, which is all he will ever know.

Marx coined the striking phrase “Religion is the opium of the People,” and Lenin in our own day was forced to see the necessity of freeing the workers’ minds from the effects of this drug. He held it to be
  “Of paramount importance …. That a magazine devoting itself to problems of militant materialism should at the same time be conducting an untiring campaign of propaganda for atheism. . . ” (see Communist International, Congress Number, 1922).
Those who want to understand the Philosophy of Socialism and the theoretical and practical relations between Socialism and Religion should read our pamphlet advertised in this issue.

Economics and Ideas. Their influence on Political Institutions. (Part 3) (1925)

From the June 1925 issue of the Socialist Standard

(Continued front last month).

Divine Right or Social Contract.

The struggle of the bourgeoisie for political emancipation culminated in England in the Great Rebellion of 1642-48. The chief immediate cause of the outbreak was the dispute over the right of the crown to levy charges upon property owners either by taxes or forced loans without the consent of their representatives. Its general social causes however must be sought in the developing antagonism between the domination of hereditary privilege and kingly prerogative and the political needs of an increasingly commercial society.

As the crisis approached Parliament definitely demanded the right to appoint and dismiss Ministers, and the control of the army. In the six years’ Civil War which followed, the established regime—the “King’s cause” was defended by the nobility and the more old-fashioned of the landed gentry, whilst to the Parliamentary forces adhered the traders of the cities allied with the freehold farmers.

At this stage no purely political doctrine had an appeal wide enough to rally all revolting sections, and we find the morale of the Cromwellian Army—the backbone of the Parliamentary forces, provided by “puritanism,” which in belief was the antithesis to the Catholicism of the crown and in its attitude to life the mirror of the needs of the yeomen farmers and the small traders.

It was not until the first phase of the struggle had ended in a bourgeois victory, and the question of “divine right” answered emphatically in the negative by the execution of Charles, that its theoretical expression was forthcoming. As Stopford Brooke says,
  “the opposition to the theory of the Divine Right of Kings did not enter into literature till after it had been worked out practically in the Civil War. During the Commonwealth and after the Restoration it took the form of a discussion on the abstract question of the Science of Government, and was mingled with an enquiry into the origin of society and the ground of social life.” (“English Literature” p. 132.)
The result of this enquiry showed clearly the wide influence commercial relations of life now had in the sphere of political thought. The productive organisations and customs of feudalism had their origin in the remote and misty past. Through unnumbered generations they persisted with little change and they were looked upon with veneration and believed to have a supernatural origin.

But commerce and money had brought a new form of organisation. The firms and companies of the traders and manufacturers had a perfectly well-known origin. They were deliberately established as a result of definite agreements between men. The law of “contract,” not of “status” or custom, was their basis and safeguard. What more natural then than that the theorists of the new order should suggest that human society and the State were originally formed by a common agreement for the social good and that therefore the governing authority could be repudiated if it violated the terms of the “original contract.”

Such a theory was put forward by Hobbes in his “Leviathan” (1651) and later taken up by Locke and Rousseau. Though Hobbes’ materialistic views met with much opposition on religious grounds the effect of the idea of the “social contract”
“at the time of its first appearance was immense. Its almost universal acceptance put an end to the religious and patriarchal theories of society, on which Kingship had till now founded its claim of a Divine right to authority which no subject might question.” (Green’s “Short History,” p. 615).
In the next phase of the struggle ending in the “Glorious Revolution” of 1688, the argument of the “social contract” was used with effect in the Parliamentary debates on the abdication of James II. and, in the final indictment against the King, his violation of the “contract” was specifically mentioned.

The Revolution with its “Bill of Rights” vested supreme authority in the House of Commons—the representative assembly of the propertied classes. Following it came another advance in bourgeois political theory by Locke, who cast into more acceptable form Hobbes’ ideas and definitely declared the supremacy of legislative assemblies. Again fact preceded theory. Locke’s “Essay on Civil Government” was the outcome
“not of a pure development of scientific ideas, but of the necessity for having a theory to justify accomplished facts.”
It was
“in truth an elaborate apology for the Revolution of 1688; not ostensibly for its righteousness or policy in the particular circumstances, but for the possibility of such a proceeding being rightful in any circumstances.” (Pollock, “Science of Politics,” p. 65.)
In the new regime the landowners were still predominant but the commercial and banking interests were a great and a growing social power. In the Commons the two rival groups faced each other as the Tory and Whig parties. But many of the wealthier landowners were by now interested also in commerce and finance and the antagonism between the two orders of property tended to become less. The power of the capitalists was manifested in the founding in 1694 of the Bank of England—originally a whig finance company; in the commercial laws based on the “mercantile” principle of accumulating bullion by restricting imports of manufactured goods whilst encouraging their export; and in the trade wars against France which the landed class generally discouraged.

The British Constitution now remained without serious modification for a century and a half, the most important development being the “cabinet system” which placed the executive under the control of the Commons. As an instrument giving political liberty to the exploiters of labour whilst securing the suppression of the producing masses the Constitution was one of the most perfect pieces of machinery in political history. The ruling’ classes rightly revered it as a perpetual guarantee of their wealth and privileges. They lavished adulation upon it. To Blackstone, the jurist, it was—”this noble pile,” whilst Burke went into ecstatic when he contemplated its “delicate equilibrium.” Based upon the right to representation of only a wealthy handful of the population—with an electorate of merely some 12,000 this allegedly democratic constitution was in reality an oligarchic despotism of the few over the many.

Through it was carried out by all due forms of law one of the most callous examples that history records of the spoliation and starvation of a helpless class through the enclosure and appropriation by the large landowners of millions of acres of the “common lands” used by the peasants of England for centuries. As a result of the growing numbers of landless and propertyless and the intense poverty of the new labouring class laws of unprecedented stringency were enforced for the protection of property. Thousands of working-class “criminals” were hanged for stealing no more than five shillings or a sheep, or for firing a rick of hay.

The “Rights of Man.”
The success of the mercantile interests in England in establishing their rule through Parliament gave a stimulus to the bourgeoisie in France—oppressed by economic fetters imposed by a despotism raised upon the remnants of feudalism, bearing the chief burden of a heavy taxation and excluded entirely from political power. Along with the smouldering discontent of the bourgeoisie developed a vigorous attack by the French intellectuals upon all the institutions and traditions of the established regime. Montesquieu, Voltaire, Rousseau and the authors of the great “Encyclopedia ” directed their shafts of criticism and satire upon the “unreason” of social relations, the despotism of the State over men’s bodies and of the Church over men’s minds.

The English Constitution was eagerly discussed and applauded. In it the French bourgeoisie and their theorists saw the ideal framework of society. Buckle in his “History of Civilisation” gives a detailed account of the extraordinary influence that English literature and institutions had at this time in France. Even Rousseau’s famous work the “Contrat Social,” which became the text book of the revolution, was little more than a development of the ideas of Hobbes and Locke. In it Rousseau declared the irrationality and tyranny of all existing social structure and idealised the “free, independent individual” — the “natural” man. The book had an immense vogue with all the disaffected and its popularity was so feared by the authorities that it was accorded the honour of being burnt by the public hangman.

The philosophers of the “age of reason” were sincere enough in their fierce denunciations of tyranny and glorification of “liberty”—but they could not transcend the times in which they lived. When Rousseau wrote his famous words, “Man is born free and is everywhere in chains,” he was not thinking of the same “chains” as those of the equally famous declaration —”The proletarians have nothing to lose but their chains. They have a world to win.” Rousseau and those who thought with him denounced the chains of obsolete conventions and beliefs and of legal and political restrictions upon the individual and his goods. They did not conceive of property as a means of enslavement—to them it seemed the guarantee of freedom, of personal independence. Their utopia was a society of independent farmers, craftsmen and traders, and it was from this ideal basis that they formulated the inalienable Rights of Man— “to liberty, property, security and resistance to oppression.” It required machinery and the “great industry” to demonstrate the titanic power of slavery latent in the “free rights of property” and the “liberty of the individual,” and thus to lay the basis for the slogan of Marx.

But while the philosophers were indulging themselves with universal principles the merchants, lawyers and politicians were concerning themselves with practical realities. They were not troubled with abstract intellectual problems but with urgent economic, legal and political ones. But the main problems that confronted the revolutionary bourgeoisie in France, though the same in essence as those their English comperes had faced differed in historical setting.

The “grand seigneurs” had not been “corrupted” by commerce to the extent of the English aristocracy. They were still an exclusive, arrogant caste, despising trade, holding ancient feudal rights over the peasantry such as were long extinct in England, and—a most important point, they were entirely exempt from taxation. While the English nobility had faced merely a check to their political domination, only affecting: them indirectly in an economic sense, the French nobility were confronted with a threat to their economic security, to their feudal dues and fiscal privileges—with virtual expropriation. Hence the com¬promise that was achieved with little difficulty in England was in France next to impossible.

When the crisis was upon them the bourgeoisie were reluctantly compelled to ally themselves with the stirring propertyless populace of the cities. It was the “common mob” who took the Bastille. But the traders, the lawyers and the politicians had a wholesome dread of the hungry masses—inflamed with revolutionary phrases and extravagant promises and freed for the moment from their customary habits of subjection. Mirabeau warned the assembly against its “seditious allies.”

Whilst they had need the bourgeoisie readily used the multitude as a threatening weapon against the crown and the aristocrats, but when the strength of the old regime was broken, when
  “the King could no longer collect an army, the force of the crowd was no longer necessary to the Assembly. A kind of Riot Act was accordingly passed under which certain officials might at any time proclaim Martial Law ; to restrain the forces of agitation a censorship was established over newspapers and public meetings and even over the sale of literature.” (Packwood Adams—”The French Revolution,” p. 100.)
Thus the bourgeoisie endeavoured to maintain its newly-acquired and precarious power, to stay the surging forces of revolt that it itself had done so much to unleash and to secure “order”—the bourgeois order of peaceful exploitation.

The great rallying cry that stirred all the sections opposed to the old regime was “liberty ! equality ! fraternity !” But these vague words meant different things to different men. In the mouth of a bourgeois they had a definite, limited meaning. “Freedom” meant—liberation from the tyrannical control which the autocratic rule of the Bourbons had exercised over the lives and property of its unprivileged subjects. “Equality” implied the abolition of hereditary privilege and the guarantee of legal and political equality for all “responsible citizens”—all who possessed property and paid taxes.

When, in June, 1789, the deputies of the “third estate” constituted themselves the National Assembly of France their general aim was nothing more than the abolition of feudal restrictions and the erection of a representative Constitution with a limited Monarchy on the lines of that in England. And when, three years later, the Constitution of 1791 was framed, though prefaced by the “Declaration of the Rights of Man” it divided the people into “active” and “passive” citizens; the former consisted of men who owned property and contributed taxes, and who alone were to exercise the franchise and bear arms in the National Guard; the “passive” citizens were the propertyless multitude who were allowed neither representation nor legal means of resistance. But the “have-nots” proved not quite so “passive” as the “haves” were desirous they should be.

With the further developments—the war, the republic, the inability of the bourgeoisie to consolidate its power, the temporary domination of the propertyless of Paris followed by the dictatorship and “order” of Bonaparte—we need not here concern ourselves.

[Thirteen] years before the Revolution in France, a bourgeois republic—untrammelled by any effete feudal structure, had been set up in America. In spite of its “Declaration” that “all men are born equal” its political system gave the franchise only to property owners, and to show how cynically inconsistent its founders could be, it established the legality of the slave-trade.
R.W. Housley