Letter: Controlling interests (1977)

Letter to the Editors from the April 1977 issue of the Socialist Standard

Controlling interests

In his book The Social Fabric of British Politics, Jean Blondel asserts that Marx’s concept of social class, as far as the ownership and control of the means of production, is no longer valid. He puts this down to the growth of the joint-stock companies in which the ownership and control of the means of production become more and more divorced. He went on to say that large quantities of people acquired shares without being interested in the control of the company of which they legally owned a portion.

Can the SPGB throw some light on this statement?

F. Edwards

London N.15

Reply:

The growth of joint stock companies is a reflection of the continual accumulation of capital. Capital can only accumulate as a result of the exploitation of the working class, which exists to serve it. The joint stock company allows for greater concentrations of capital by the investors (shareholders) who overwhelmingly are members of the capitalist class; the only people who own capital.

The fact that members of the working class own shares will only affect their class status if they can live on the dividends of those shares without the necessity of selling labour-power.

The sale of labour-power is the test. There are approximately 22 million wage workers in this country. Even if a greater number of workers acquired shares, the dominant and controlling interest will always remain with the owners of capital—about 10 per cent of the population who own 90 per cent. of the wealth. It also ought to be borne in mind that not all wealth, or even the bulk of it, exists in the form of company shares. Large private companies, and rich family businesses are not quoted on the Stock Exchange or share market.

Jean Blondel is talking nonsense when he says that Marx’s concept of social class is no longer valid. If this is so, how does he explain the existence of the present class struggle between capital and labour? A class is an economic category. The personnel may change, but the economic category must be defined according to the relationship of its individual members to the ownership or non-ownership of social wealth together with its means of production and distribution. The fact that some workers feel superior because they own a few shares, or because they hold a pawn ticket (known as a mortgage) for a piece of land does not remove them from the working class, whether or not they identify themselves with it.

The suggestion that people buy shares without being interested in the control of the company is not true of the large shareholders, as any shareholders’ meeting will testify. If Blondel’s remarks specifically refer to workers who own shares it is as meaningful as saying that workers who acquire a piano are not interested in playing like Arthur Rubenstein.

Editors.