Showing posts with label Counterpunch. Show all posts
Showing posts with label Counterpunch. Show all posts

Sunday, August 9, 2026

Material World : Reformism in the USA: Bernstein rides again (2026)

The Material World column from the August 2026 issue of the Socialist Standard

In an article in Counterpunch in June on ‘What’s Wrong with the American Left’ David Schultz says he is writing in the tradition of ‘the democratic socialism of Eduard Bernstein, who tied the classless society to the ballot rather than the barricade, and of Michael Harrington whose The Other America forced a prosperous country to look at its own poor’.

Bernstein, he says, was ‘betting that universal suffrage could be turned into economic democracy’. Bernstein, Harrington and others he mentions ‘believed, as I do, that the point of the left is to assert that capitalism does not get to dictate how democracy operates, but the reverse’. The reverse is of course that democracy gets to dictate how capitalism operates. Which is what Bernstein’s reformism set out to try and do. Whatever else might be said about US self-confessed reformists, they are more theoretically minded than their counterparts this side of the ocean. Ask a reformist here who Bernstein was and they wouldn’t know (unless they had been in some Trotskyist sect when they were a student).

Eduard Bernstein (1850-1932) was a member of the German Social Democratic Party (SPD) who, in exile in London, had worked closely with Engels. He had even written a book in 1895, applying the materialist conception of history to the English revolution, published in English in 1930 as Cromwell and Communism which introduced its readers to the Levellers and the Diggers. At the turn of the 20th century, however, he sparked off a controversy in the German and international Social Democratic movement by suggesting that Marx and Engels had been wrong on certain key points and criticising those who argued that socialism would result from a violent revolution following a catastrophic collapse of capitalism. Instead, it would come about, and was in fact already coming about, as a result of democracy gradually spreading to all aspects of society, including the organisation of the production and distribution of wealth. The book in which he expounded this ‘Revisionist’ position was given the English title of Evolutionary Socialism. Rosa Luxembourg’s pamphlet Reform or Revolution is a polemic directed against Bernstein. We joined in the ‘Revisionist controversy’ with an article in the October 1909 Socialist Standard entitled ‘Bungling Bernstein’.

An article in the January 1956 Socialist Standard on ‘The Fabians, Bernstein and Revisionism’ summarised Bernstein’s views as:
‘That the numbers and wealth of large and small Capitalists tended to increase and society to become more democratic. That class antagonisms were being modified by ethical and patriotic considerations. That crises were decreasing in size and frequency through a process of adaptation largely influenced by trusts, cartels and the like. That the Materialist Conception of History overestimated the economic factor; the influence of the economic factor was diminishing whilst the influence of ideological factors, including the ethical, was increasing. That Capitalism had undergone fundamental changes since the middle of the 19th century when Marx made his analyses, but, though true for the time of which he was writing, they no longer applied. That the theory of surplus value was incomplete and needed the addition of the theory of final utility. That the workers have now become citizens of the country and therefore have a fatherland to defend. That as Germany is becoming more and more dependent upon products from the colonies, these colonies should be developed and protected. Savages have only a conditional right to the land occupied by them; the higher civilization of advanced countries can claim a higher right. That Socialism is a long way ahead and will only come by a process that is gradual and almost imperceptible; consequently we should not worry about the future but concentrate on the present, on the extension of the political and economic rights of the working classes and “In all Advanced countries we see the privileges of the Capitalist bourgeoisie yielding step by step to democratic organisations” (Preface, page XI). That the Social Democratic Party should form alliances with the Capitalist parties nearest to them.’
It is easy to see from this why Bernstein is regarded by Social Democrat reformists as their mentor. He anticipated what after WW1 became the practice of all European Social Democratic parties, including the SPD, despite some of them still being committed on paper to Marxism. It was also the practice of the Labour Party even though they never made a theory of it.

Bernstein’s gradualism has been tried for over a hundred years now. But the result has not been any progress towards socialism. Production is in still the hands of profit-seeking companies and oligarchs. The economy is still driven by the pursuit of profits. There may be a ‘welfare state’ of sorts but that’s being eroded not extended. There is no democracy in workplaces. Rather than the Social Democratic reformists gradually changing capitalism it has been the other way round. Experience of governing under capitalism has changed them into mere managers of the capitalist economic system, accepting and applying its logic that priority must be given to profit-making.

Although Bernstein was not all bad — he did oppose WW1 and he was right about capitalism not collapsing of its own accord — his gradualist reformism must be pronounced a failure. Political democracy has not got to dictate how capitalism operates and never will. It is rather that capitalism dictates how governments act by giving them only the choice of putting profits first. He bet that ‘universal suffrage could be turned into economic democracy’ and lost.
Adam Buick

Wednesday, April 8, 2026

Tiny Tips (2026)

The Tiny Tips column from the April 2026 issue of the Socialist Standard

‘Ukraine is being devastated… The threat of escalation to nuclear war intensifies. Perhaps worst of all, in terms of long-term consequences, the meager efforts to address global heating have been largely reversed. Some are doing fine. The US military and fossil fuel industries are drowning in profit, with great prospects for their missions of destruction many years ahead… Meanwhile, scarce resources that are desperately needed to salvage a livable world, and to create a much better one, are being wasted in destruction and slaughter, and planning for even greater catastrophes’.


‘We really don’t have time for the Marxists, Leninists, Trotskyists, Bolsheviks, Mensheviks, Spartacists, Revolutionary Communists or whatever sect in Your Party to get their shit together in order to take on the challenges we face – they might never overcome their miniscule differences or the battle of the £1 newspapers,’ Mish Rahman, a former Labour politician-turned-Your-Party-insider who defected to the Greens last month, told Novara Media. Rahman said he doubts the differences between the two camps are as substantive as they’re made out: ‘[Sultana and Corbyn] are not far off each other [politically], it’s just a proxy war for control’. 


‘”They say they don’t have enough homes, but look at how many empty ones there are – [the council] just doesn’t want to fix and repair them,” says mother-of-one Vanessa. She lives on Central Hill estate in Lambeth but only in temporary accommodation and says she’s been left “in limbo”. Dozens of properties on the south London estate are unoccupied, one for eight years, and yet the borough has the third-highest housing waiting lists in the capital – something that Vanessa, who has been waiting for a social home for three years, describes as “outrageous”’. 


Los Angeles spent about $418 million on homelessness programs in 2025, yet only a small share went toward helping people leave the streets for good, according to the New York Post. A recent City Hall report suggests most of the money supports short-term services that manage homelessness rather than resolve it. 


In 2021, there were only two diagnosed silicosis cases in California. In 2025 there were 214. ‘The number of cases is rising rapidly’ Dr. Michaels wrote to me, ‘That’s the important point’. Here’s the more tearful description from Dr. Michaels..: The hallmarks of the disease: shortness of breath and diminished exercise capacity that progresses to an inability to climb even one flight of stairs. A short walk that should take just 20 minutes can take an hour. Working is difficult or impossible. People cough incessantly. They can’t sleep because it is difficult to breathe and they are kept awake coughing. Over time, people with more advanced silicosis require supplemental oxygen and can’t leave home without an oxygen tank. And they are at increased risk of dying from lung cancer. The crime behind this slaughter is that safer, profitable substitutes are available. 


(These links are provided for information and don’t necessarily represent our point of view.)

Sunday, December 14, 2025

Tiny Tips (2025)

The Tiny Tips column from the December 2025 issue of the Socialist Standard 

Brazil, Russia, and South Africa top the list for wealth inequality, each posting Gini coefficients around the low 0.8s. These scores imply a highly concentrated distribution of assets relative to the rest of the population. Several energy-rich economies—such as the UAE and Saudi Arabia—also rank high, reflecting significant concentrations of financial and real assets among upper tiers of wealth holders. Country Gini Coefficient 2024: Brazil 0.82, Russia 0.82, South Africa 0.81, United Arab Emirates 0.81, Saudi Arabia 0.78, Sweden 0.75.


. . . Latin America remains the only region in the world that has not shown a clear decline in child marriage over the last three decades. Nicaragua has the highest rates within the region and ranks 14th globally with 10% of girls marrying or entering a union before age 15. Among boys, 19% marry or enter a union before the age of 18. Here are the main reasons for child marriage in Nicaragua… Poverty continues to affect a large portion of Nicaragua’s population. The United Nations reports that 48% of people live below the poverty line. Continual climate disruptions devastate the environment and worsen economic conditions. High levels of organized crime and human trafficking also contribute to insecurity. Many families marry off their children to ease financial hardship and improve their economic situation, resulting in increased levels of child marriage in Nicaragua. Furthermore, Nicaraguan society continues to enforce cultural and gender norms that pressure girls to marry young and bear children.


At the centre of the criminality in Gaza today are armed gangs, whose members are often drawn from the territory’s powerful clans. These clans are extended families that have historically played leading roles in their communities – but have also, at times, operated like local mafia. During the recent conflict, clans have settled old scores with violence. Gangs associated with the clans have expanded into racketeering, drug dealing, kidnapping, robbery and extortion. 


The rally was a good time with a positive vibe, and I’m glad to see Americans coming together in opposition to one tyrant. But until and unless we start coming together in opposition to tyranny itself — the state per se — and in support of liberty for all, the only question is how much more kingly and despotic our next ruler will get than the previous one got. 


(These links are provided for information and don’t necessarily represent our point of view.)

Monday, October 6, 2025

Tiny Tips (2025)

The Tiny Tips column from the October 2025 issue of the Socialist Standard

In spite of momentous historical changes, the fundamental patterns of inequality reemerge across the centuries with remarkable consistency, the patterns of extreme wealth concentration, class immobility, surplus value extraction, special privilege, and ideological systems capable of masking the contradictions. This suite of social traits seems almost constant. 


Write, but do not offend. Speak and comment, but do not divide. Observe cruelties, barbarities and murder, yet refrain from having an opinion. This is the constipating, stifling regime being put in place via suggested codes of conduct for organisers of writer events in Australia. The object of this intellectual veiling: discussing the exterminating war in Gaza. Across the country, the straitjacket of forced social harmony is being applied. 


Vietnam raises over $13 million for Cuba in historic charity drive. 


Asked whether Gazans would be allowed to leave, Al-Hayek was unequivocal. “The Palestinian people do not want to leave Gaza,” he told The Media Line. “We repeat each time: We will remain in Gaza until Judgment Day. Here we were born, and here we shall die.” 


Hotel accommodation benefits large contractors like Clearsprings, Serco and Mears, while Britannia Hotels made over £150 million in profit since it started to accommodate asylum seekers in 2014. Such contracts even brought the founder of Clearsprings to the Sunday Times Rich List. This company provides housing services to the Home Office that were associated with the highest mortality rate among resident asylum seekers between 2020 and 2023. 


Ah, those pro-lifers. Walking, talking, shooting oxymorons. You can tell the pro-life extremists. They’re the ones who want their enemies – the women and men who support a woman’s sovereignty over her own body – dead by any means at their command. Hard to get more pro-life than that. Mike Lee, the brilliant Republican US Senator from Utah, went on Elon Musk’s social media platform, X, and posted about the fatal shooting of Democratic politicians in Minnesota, that, “This is what happens when Marxists don’t get their way”. 


U.S. Attorney General Pam Bondi announced Wednesday that the United States has seized nearly US$700 million in assets connected to Venezuelan President Nicolás Maduro. Confiscated property includes multiple luxury homes in Florida, a mansion in the Dominican Republic, two private jets, a horse farm, nine vehicles, luxury yachts, jewelry, watches, and cash. 


This is the humanist vision of Alien: Earth, which recognizes our distinctiveness is not in the power of our minds or the machines that we produce. Rather, it is found in humanity’s ability to transform itself, to create and recreate its own internal nature for new conditions, including those yet to come. In doing so, the show goes beyond mere anti-corporate sentiment and instead asks if we can create a new purpose for ourselves, unburdened by the demons of our past and the demons that our future might hold.


(These links are provided for information and don’t necessarily represent our point of view.)

Tuesday, March 11, 2025

Tiny Tips (2025)

The Tiny Tips column from the March 2025 issue of the Socialist Standard

Kylie Jenner, the 27-year-old billionaire and car enthusiast, was recently spotted with her sister Kendall Jenner driving her $3 million Bugatti Chiron in Beverly Hills. Known for her impressive car collection, Kylie gave fans a rare glimpse of herself behind the wheel rather than posing next to her fleet. 


‘Everything outside the Christian framework — including secular music, television, and books — was discouraged. Just as I signed multiple purity pledges throughout my preteen and teen years, promising to avoid not just sex, but even impure thoughts, we were taught to practice absolute abstinence from dangerous ideas’. 


While official data is still somewhat sketchy, it’s estimated that 12,000 illegal transplants are performed annually, about 10% of the total number of transplants conducted each year. The organ trade is immensely profitable, generating between $840 million to $1.7 billion in revenue for a relatively small number of traffickers, according to estimates compiled in 2017. Organ trafficking survives, in part, because the demand from affluent consumers in the advanced capitalist West is so high and the legal supply of organs – primarily (about 80%) kidneys, but also lungs, livers and cornea – barely keeps pace. Many people wait at least two years to qualify to receive an organ transplant legally and thousands die every year – about 25 daily, according to the World Health Organization – because no organ becomes available in time to save them. Where do the illegally harvested organs come from? Primarily from North Africa and South Asia. Organ traffickers prey on poor and vulnerable rural dwellers, offering cash in exchange for an organ, usually a kidney. 


This is about the Arctic. You have Russia that is trying to become king of the Arctic with 60-plus icebreakers, some of them nuclear-powered. Do you know how many we have, Jesse? We have two, and one just caught on fire. This is about critical minerals. This is about natural resources. This is about, as the polar ice caps pull back, the Chinese are now cranking out icebreakers and pushing up there as well. So, it’s oil and gas. It’s our national security. It’s critical minerals. 


The response provided by South Africa’s elected officials has so far been both lacking and sinister. It targets migrants with few political allies in the country’s fractured political scene, increasingly characterized by populism, highlighting problems without solutions. 


As long as the capitalist system continues, we will never be able to escape from the shackles of economic crisis, war and massacre, ecological destruction, and workers’ sacrifice. The only solution is the revolutionary overthrow of the capitalist system and its replacement with communism, a society in which the means of production are no longer in the hands of capitalists or the state, but are socialised, in which production and distribution are in harmony with humanity and nature. 


(These links are provided for information and don’t necessarily represent our point of view.)

Sunday, November 3, 2024

Tiny Tips (2024)

The Tiny Tips column from the November 2024 issue of the Socialist Standard

‘I cried deep inside of my heart’, said Nisa, now 32, recounting her first contract wedding. ‘Who wants to sleep with an old man? I did this purely for the money, so my parents can eat and my siblings can go to school.’ With her encouragement, her sister also became a contract bride, bringing in a dowry of $3,000 for her first marriage because she was a virgin. Nisa estimated that she herself has been in 20 contract marriages (‘Sex tourism in Indonesia sells itself as Islamic temporary marriage’.) 


‘Interestingly, some of these people were supporters of the communist regime only a few years ago. There are of course others who are still convinced by CCP propaganda, who believe that China is the safest place in the world and that everywhere else is in chaos’, Cui adds. He attributes China’s economic development to “the hard work of the people” who are exploited by Party leaders. As an example of the lack of political rights, he cites the fact that the regime has taken away the freedom and wealth of nouveau riche figures like Xu Jiayin and Jack Ma. He cites the words of late Premier Li Keqiang, who made public in 2020 that some 600 million Chinese live on less than US$140 a month. 


As for national liberation, all one can say is that with friends like Hamas, Palestinians do not need enemies. Rather than freedom, the so-called ‘Islamic Resistance’ has nothing to offer them but poverty and bloodshed. Hamas’s position is crystal clear. ‘These are necessary sacrifices’, military commander Yahya Sinwar said of the mass. destruction in Gaza in a communication with fellow Hamas leaders in Doha, Qatar. 


‘While Ukraine presses on with its incursion into Russia’s Kursk region, its troops are still losing precious ground along the country’s eastern front – a grim erosion that military commanders blame in part on poorly trained recruits drawn from a recent mobilization drive, as well as Russia’s clear superiority in ammunition and air power. “Some people don’t want to shoot. They see the enemy in the firing position in trenches but don’t open fire. … That is why our men are dying,” said a frustrated battalion commander in Ukraine’s 47th Brigade’. 


Ahn Chang-ho, who opposes anti-discrimination laws, also rejects the theory of evolution and wants creationism lessons in schools. A former judge nominated to lead South Korea’s human rights body has sparked outrage with his comments against the LGBTQ community and the theory of evolution, with observers citing him as proof of the country’s flawed system for official appointments. Ahn Chang-ho, 67, is under scrutiny for his statements in parliament suggesting that homosexuality is a tool used by communists to incite revolution. 

In a healthy ecosystem, the various sets of animal … get along with each other without the need of any system of authority or dominance—indeed, without overriding structure or organization of any kind soever. 


(These links are provided for information and don’t necessarily represent our point of view.)

Monday, May 23, 2022

The Rear View: Same the whole world over (2021)

The Rear View Column from the November 2021 issue of the Socialist Standard

Same the whole world over

‘The Green Party, the Socialist Left and the Marxist-inspired Reds – all pro-environmental – are all expected to make gains and will seek to influence the next government, as will the rural Centre Party. Climate, wealth gap in focus as Norway go to polls’ (yahoo.com, 9 September). A similar Red-Green Coalition ruled 2005-2013 with Labour Party leader Jens Stoltenburg as Prime Minister. He has since become NATO’s General Secretary. The party’s current leader is the capitalist Jonas Gahr Støre. Once upon a time, Labour was considered ‘radical’: in 1919 it joined the Third International which had its headquarters in Moscow. Similarly, the Green Party was once concerned with alternative economics (who remembers BD Brochmann?), alternatives to military service, alternative energy, partial opposition to whaling (whale meat is still for sale) as well as going some distance towards the decriminalisation of certain drugs. The Socialist Left, formed in 1975, has its origins in a group which left the Labour Party over NATO membership. Interestingly, they were predictably against the US invasion of Afghanistan and Iraq but the Party leadership favoured NATO air strikes against Serbia over that country’s role in Kosovo (killing thousands and causing as many as 1.5 million people to flee as refugees). The ‘Marxist inspired’ Reds are, as history shows, anything but. The Red Electoral Alliance was formed in 1973 as an electoral front organisation for the Workers’ Communist Party. Much can be said about the WCP, but the Norwegian newspaper Aftenposten’s headline from 28 August 2005 probably cannot be bettered: ‘They worshipped Stalin, Mao and Pol Pot’. And one Vidkun Quisling was a Minister in government for the populist Centre Party’s earlier incarnation as the Farmer’s Party. He later led Nazi-occupied Norway. Eugene Debs’ WW1 remark remains apposite: ‘Yes, a change is certainly needed, not merely a change of party but a change of system, a change from slavery to freedom and from despotism to democracy, wide as the world’.


A Better World is Possible

This is the title of an essay by Dr. Cesar Chelala, which concludes: ‘We have the resources. What we need is a new look at life and its wondrous possibilities. I may be called naïve. But those who are not naïve are the ones that have led us into these wars. We can create a better world, if we truly want it’ (counterpunch.org, 3 September). Indeed. This call echoes others made in the past:

1859: ‘There must be something rotten in the very core of a social system which increases its wealth without diminishing its misery…’ (Marx in the New York Daily Tribune, 16 September). He observed that the ‘Irish famine of 1846 killed more than 1,000,000 people, but it killed poor devils only. To the wealth of the country it did not the slightest damage’ (Capital, Vol. 1, ch. 25).

1898: ‘Hence it has happened that the development of steam navigation, of railroads and telegraphs, of mechanical and chemical science, and the growth of the population, while enormously increasing productive power and the amount of material products—that is, of real wealth—at least ten times faster than the growth of the population, has given that enormous increase almost wholly to one class, comprising the landlords and capitalists, leaving the actual producers of it—the industrial workers and inventors—little, if any, better off than before’ (Alfred Russel Wallace, The Demon of Greed).

1923: ‘Such a great [socialist] production is already possible, with the knowledge already possessed by mankind’ (Sylvia Pankhurst).

1948: ‘A world of peace and friendship, a world with the plenty which modern science had made possible was a great ideal. But those in power had no patience with such an ideal. They said it was not practical politics’ (John Boyd Orr, former director of the Food and Agriculture Organisation).

1951: ‘It is time for mankind to ensure itself of material abundance by establishing a free, self-managed world society of productive labour, thereby freeing its mental powers for perfecting its knowledge of nature and the universe’ (Anton Pannekoek, A History of Astronomy).

All that is missing from achieving this is ‘the conscious will and action of the majority of the proletariat’ (Rosa Luxemburg).


Comrade Speaker?

‘You cannot have a system where the success of some springs from the exploitation of the workers and springs from the exploitation of the environment and the rest, and we have to correct that’ (yahoo.com, 17 September). Indeed, but our fellow socialists in the WSP(US) do not expect Nancy Pelosi to join them anytime soon as she makes clear elsewhere that she wishes to reform capitalism, not replace it. Other, sadly long-dead Democrats stated: ‘ All men are brethren. We denounce all political and hereditary inequalities and distinctions of castes… We believe the earth, with all its natural productions, to be the common property of all… We believe that the present state of society, which permits its idlers and schemers to monopolise the fruits of the earth and, the production of industry, and compels the working class to labour for inadequate rewards, and even condemns them to social slavery, destitution, and degradation, to be essentially unjust… We condemn national hatreds which have hitherto divided mankind… Convinced that national prejudices have been, at all ages, taken advantage of by the people’s oppressors to set them tearing the throats of each other when they should have been working together for their common good, this society repudiates the term ‘foreigner.’ We recognise our fellow-men, without regard to country, as members of one family, the human race, and citizens of one commonwealth, the world’ (Manifesto of the Fraternal Democrats, 1845).

Friday, October 2, 2020

Cooking the Books: Socialism in one enterprise? (2020)

The Cooking the Books column from the October 2020 issue of the Socialist Standard

In an article in Counterpunch (28 July) Richard D. Wolff, of ‘Capitalism hits the fan’ fame, criticised the widespread definition of capitalism as ‘private’ or ‘free’ enterprise on the grounds that it ignores state enterprises and that ‘free’ is a loaded term that in any case only applies to those who own enterprises. He offered instead:
  ‘A key unique quality of capitalism is the employer/employee relationship between two different groups of the people engaged together in the economic system. That relationship entails an exchange of wages or salaries for labor power (the ability of an employee to work). A contract between employer and employee covers that exchange plus the employee’s exertion of brains and muscles over lengths of time and to ends specified by the employer. ’.
A defining feature of capitalism is indeed the wages system. Ending capitalism does involve the ending of this employer/employee relationship. Wolff, however, sees this as being implemented at enterprise level, describing as ‘instances of communist enterprises’ worker co-ops where ‘one and the same community designs, directs, and performs the work of an enterprise such that each community member has one vote and enterprise decisions are made democratically.’

His justification for calling worker co-ops ‘communism’ is that they are commonly owned by those working in them and end the employer/employee relationship as far as their members are concerned. But if the common ownership of something by a group is ‘communism’ then there are many other examples of it within capitalist society. What socialists aim at, however, is the common ownership of the means of life by society as a whole – a communist society.

Marx wasn’t opposed to workers forming co-operatives. In fact he saw their emergence as one of the signs that society was becoming ripe to move from a capitalist to a communist society; they showed that the individual private owner/employer was redundant and that workers were quite capable of organising production without them. He was, however, opposed to the reformist demand that the state should subside them. In his own words:
  ‘The co-operative factories of the labourers themselves represent within the old form the first sprouts of the new, although they naturally reproduce, and must reproduce, everywhere in their actual organisation all the shortcomings of the prevailing system. But the antithesis between capital and labour is overcome within them, if at first only by way of making the associated labourers into their own capitalist, i.e., by enabling them to use the means of production for the employment of their own labour’ (Capital, Volume III, Chapter 27).
In other words, under capitalism, workers co-ops had to function like a capitalist enterprise with all the shortcomings this involves such as, we can specify, having to make a profit to re-invest in up-to-date methods of production so as to remain competitive and stay in business.

Wolff’s conception of the role and significance of ‘co-operative factories’ is different. He envisages them as producing for the market alongside private and state enterprises both under capitalism and in ‘socialism’ (by which, going completely off the rails, he seems to mean places like the old USSR). He advocates co-operative enterprises as a way forward for workers within capitalism in the same way that other reformists used to advocate state enterprises.

This brings out that his definition of capitalism is incomplete. It needs to include as well as the employer/employee relationship that production is carried on for sale with a view to profit. Capitalism is a market society in which everything is bought and sold, not just labour power.

Common ownership on a society-wide scale implies that the democratically-run productive units would not be producing for a market, precisely because what they produced would belong to society and be available to be distributed in non-market ways, whether free distribution, free use or taking according to need.

Friday, April 2, 2010

Cooking The Books: A Nobel Prize for Marx? (2010)

The Cooking The Books column from the April 2010 issue of the Socialist Standard

“If Karl Marx and V. I. Lenin were alive today, they would be leading contenders for the Nobel Prize in economics”, wrote Paul Craig Roberts, former editor of the Wall Street Journal and an Assistant Secretary of the Treasury under Reagan, in an article on Counterpunch last year.

“Marx”, he added in explanation, “predicted the growing misery of working people, and Lenin foresaw the subordination of the production of goods to financial capital's accumulation of profits based on the purchase and sale of paper instruments.”

Lenin first. He didn’t write much on economics but the two books he published on the subject are not too bad. Both rejected “underconsumptionism”. The first, The Development of Capitalism in Russia (1899) was a refutation of the Narodnik view that capitalism could not develop in Russia because of a lack of markets. The second, Imperialism, the Highest Stage of Capitalism (1916), argued that the imperialism that characterised the thirty or so years till the WWI was caused by profits in colonies being higher than at home. (The nonsense about some workers in the imperialist countries sharing in the exploitation of the colonies was only added in the introduction to the 1920 French and German editions). It was heavily based on a work, Finance Capital, A Study in the Latest Phase of Capitalist Development (1910), by the Austrian Social Democrat Rudolf Hilferding. So, if anyone deserves a Nobel Prize for analysing financial capital (at least in continental Europe) it would be Hilferding rather than Lenin.

As to Marx, he did write of the “increasing immiseration” of the working class as capitalism developed, but he did not intend this to be understood as the whole class necessarily becoming worse off materially. “Misery” included the quality of life and work and social factors such as the gap between rich and poor and not just the quantity of goods consumed. So misery could increase along with increased consumption. If Marx had meant “increasing pauperisation” (a view long supported by the old Communist Party) then he would have been proved wrong and so be out of the running for a Nobel Prize.

Even so, Roberts wrote that the working class in America is now materially worse off than it was twenty years ago:
“In this first decade of the 21st century there has been no increase in the real incomes of working Americans. There has been a sharp decline in their wealth. In the 21st century Americans have suffered two major stock market crashes and the destruction of their real estate wealth. Some studies have concluded that the real incomes of Americans, except for the financial oligarchy of the super rich, are less today than in the 1980s and even the 1970s. I have not examined these studies of family income to determine whether they are biased by the rise in divorce and percentage of single parent households. However, for the last decade it is clear that real take-home pay has declined.”
The explanation he offers is “financial capital’s power to force the relocation of production for domestic markets to foreign shores. Wall Street’s pressures, including pressures from takeovers, forced American manufacturing firms to ‘increase shareholders’ earnings.’ This was done by substituting cheap foreign labor for American labor.”

There could be something in this but there’s no way of reversing it. Capital will always flow where the profits are highest. That’s its nature.