Another world war? (2026)

Book Review from the April 2026 issue of the Socialist Standard

The Economic Foundations of Capitalism’s Rise and Decline. Communist Workers Organisation. 2026.

‘For global capitalism the devastation of world-wide imperialist war is the solution to its ineluctable profitability crisis’. This — that a third world war is needed for capitalism to continue — is the position that this 100-page book seeks to defend.

The argument starts from the view that under capitalism there is a tendency for the rate of profit to fall as capital accumulation proceeds, due to an increasing proportion of capital being invested in plant, machinery and materials rather than in employing workers (whose labour is the only source of profits). This was something noted by Marx but he also noted other tendencies, arising too from capital accumulation but conversely tending to raise the rate of profit, such as plant, machinery and materials becoming cheaper and increasing surplus value per worker. So, what happens over any given period — which tendencies prevail and so whether the rate of profit does actually fall — is unpredictable. There are also other factors that reduce profitability, such as overproduction in an important industry having a knock-on effect on the rest of the economy resulting in a general slump in production.

The book hopelessly mixes up all the various tendencies, elevating a theoretical slow long-term tendency for the rate of profit to fall into ‘the drive towards the collapse of the capitalist system’. The authors also see this as, in the shorter term, the cause of slumps but to do that there would have to have been a fantastically rapid increase in mechanisation and productivity. They are correct, though, that an important way out of a slump is the restoration of the rate of profit due to devaluation of the capital invested in the plant and machinery.

According to the CWO, a new factor entered into the equation at the beginning of the 20th century: capitalism, after coming to dominate the whole world and creating the basis for a world socialist society, passed its peak and entered into a period of decline which they call ‘decadence’. In this period, the boom/slump cycle continues but:

‘Capitalist competition is no longer a purely economic battle between firms but imperialist rivalry between “great powers”; where, in short, the massive devaluation of capital required to assuage the crisis of low profitability and achieve a new round of accumulation is obtained by the destruction of capital values via war’.

‘The history of capitalism since the start of the twentieth century’ we are told, ‘has been this cycle of crisis-war-reconstruction’. That the First World War was caused by imperialist states being driven to war as the only way out of a fall in the rate of profit doesn’t hold. Conflict between the ‘great powers’ over sources of raw materials, markets and investment outlets makes more sense. Replacing the destruction caused during the Second World War will have been one explanation for the resumption of capital accumulation in the postwar period but by no means the only one and would have been completed within a decade or so. Another, more significant factor will have been the expansion of the world market as more and more parts of the world were industrialised.

Whether or not the rate of profit has fallen since the 1970s is a moot point since it is not easy to calculate. On some assumptions it has; on others it hasn’t. In any event, a hard-to-calculate and unknown average rate of profit will not have been a factor influencing decisions to invest by those in charge of capitalist enterprises; shorter-term and particular sectoral considerations will have been the deciding factors.

The question also arises as to why the long gap between the end of reconstruction and the outbreak of the Third World War. The authors provide an economic history of the period since the 1970s but don’t answer this question. They describe well enough the extent of the non-productive, financial sector that has grown on the basis of the real, productive sector of the capitalist world economy, but can’t explain away the real capital accumulation that has taken place.

When they write that, if socialism is not established, ‘capitalism could continue on its demented course for centuries’, it is not clear what they mean. Is it that capitalism could continue after a nuclear world war or that capitalism might not lead to one for centuries?

In short, the CWO have not proved their claim that present-day capitalism must, for capital accumulation to continue, lead to a Third World War (they are suggesting it’s going to be between China and the US). As long as capitalism continues, there will be wars but there is no compelling reason why there should be another world war, this time between states armed with nuclear weapons. It is not entirely impossible of course, but it wouldn’t be to restore the rate of profit.

Adam Buick

Old Fallacies — A Look at the International Communist Current

From the October 1977 issue of the Socialist Standard

The organization called International Communist Current is a mixture of perceptiveness towards some aspects of capitalism, blindness to others, and a belief in long-exposed fallacies. It recognizes that nationalization is state capitalism, that the so-called national liberation movements are anti-socialist and that Russia, China, Cuba, etc. are “just so many capitalist bastions” — “There are no socialist countries on this planet”.

ICC claims to be Marxist but shows no appreciation of Marx’s analysis of capitalism’s economic laws. Politically it belongs to the early 19th-century world of Louis Blanqui (originator of ICC’s slogan “Dictatorship of the Proletariat”) and the young and inexperienced Marx and Engels. It rejects the mature Marx’s view of the necessity to gain control of “the machinery of government, including the armed forces”, and offers instead confrontation with the state power and “world civil war” to be waged by “armed workers’ councils” (see ICC pamphlet Nation or Class).

A basic difficulty about establishing Socialism is that such a social system, involving as it does the disappearance of buying and selling, wages and prices, and the coercive state, could only be operated if the mass of the population understood and wanted it and were ready to accept all the new responsibilities of voluntary co-operation that would rest on them. If the working class as they are at present, most of them attached to capitalism, preoccupied with wages and prices, wage differentials and trade-union demarcation lines, and dependent on management direction and trade-union leadership, were suddenly faced with Socialism there would be chaos and no alternative but to return to capitalism.

Two solutions were offered. One was the Blanquist and early Marxist view—a transition period during which the mass of the population would be “educated to Socialism”. This is the ICC policy. The other, the mature Marxist, view was stated by Engels in his 1895 Introduction to Marx’s Class Struggles in France:

“The time is past for revolutions carried through by small minorities at the head of unconscious masses. When it gets to be a matter of the complete transformation of the social organisation, the masses themselves must participate, must understand what is at stake and why they are to act. That much the history of the last fifty years has taught us.”

And again, referring to France:

“Socialists realize more and more that no durable success is possible unless they win over in advance the great mass of the people, which, in this case, means the peasants. The slow work of propaganda and parliamentary activity are here also recognised as the next task of the party.”

ICC rejects the Marxist idea of socialists gaining control of Parliament on the ground that Parliament is nothing but “mystification of the working class”. Of course defenders of capitalism use Parliament to mislead the working class, just as they use religion, sport and the bogus economic theories of J. M. Keynes. They can do this only because the workers lack socialist understanding—which fact ICC fails to see. It thinks that if non-socialist workers spontaneously throw up workers’ councils these can’t be “mystified”. Experience has shown how wrong ICC is. Lenin, in State and Revolution, complained that his political opponents had

“managed to pollute even the Soviets, after the model of the most despicable middle-class parliamentarians, by turning them into hollow talking shops.”

ICC greatly admire the Workers’ Councils set up in Germany after the first world war. At the Workers’ Councils National Congress in 1918, and again in 1919, they were bamboozled by Social Democratic politicians into voting their support for the Social Democrat Government, which government then sidetracked the Councils and used state forces to crush resistance.

The argument that because the franchise has been used to trick the workers they should not use it was sensibly answered by Marx in the preamble he wrote for the French Workers’ Party. In it, he commended transforming the vote “from a means of duping, which it has been hitherto, into an instrument of emancipation”.

As ICC are not going to wait until there is a socialist majority, they have to find some other spur to working-class action. Like the young Marx and Engels, and like the British Communist Party in the 1930s, they find it in capitalism’s periodic crises and depressions which stir up discontent about unemployment and falling living standards. But, as Engels pointed out in a letter to Bernstein (25th January 1882), when the depression passes and production and employment expand again “returning prosperity also breaks the revolution and lays the basis for the victory of reaction”.

Are depressions permanent?

ICC think they have an answer to this. They say that the present depression is permanent, that it throws up problems the capitalists are impotent to deal with, and that capitalism cannot afford any more concessions to the workers. The great changeover is supposed to have happened in 1914, after which capitalism became “decadent”, ICC evidently does not know that all these themes are almost as old as capitalism itself.

In every one of capitalism’s depressions there have been people, capitalists as well as workers, who have been convinced that it would be permanent. In the “Great Depression” of the last quarter of the 19th century, which lasted for twenty years, it was widely believed. Lord Randolph Churchill, shortly before he became Chancellor of the Exchequer, declared in 1884: “We are suffering from a depression of trade extending as far back as 1874, ten years of trade depression, and the most hopeful either among our capitalists or our artisans can discover no signs of a revival . . . Turn your eyes where you will, survey any branch of British industry you like, you will find signs of mortal disease.”

Even Engels in 1886 temporarily abandoned Marx’s view of crises and announced a theory of “permanent and chronic depression”. Marx’s own view was tersely summed up in his statement: “There are no permanent crises.”

ICC’s example of the supposed impotence of the capitalists to deal with a problem relates to inflation. In International Review No. 10 (page 10) ICC says that “the bourgeoisie” is equally terrified of more inflation and of ending inflation by “restriction of credit”. From which it is evident that ICC does not understand the cause and purpose of inflation, rejects Marx’s demonstration that inflation is the result of excess issue of inconvertible paper currency, and has—like the Labour Party—fallen for the Keynesian nonsense about the supposed consequence of expanding or contracting credit. Inflation, like free trade, is just a way of operating capitalism. It suits some capitalists and not others. Inflation serves the interests of borrowers, including industrial capitalists, who take up loans and repay them later in depreciated currency.

Inflation and Credit

Inflation, at least for a considerable period, also enables many employers to get away with paying reduced real wages. Deflation, on the other hand, suits financial interests and lenders. If and when inflation reaches dangerous levels, or when those who favour deflation get their way, inflation will be curbed or ended as it has been on scores of occasions in the past, in this and other countries.

Marx showed what he thought of the people who held ICC’s superficial view about credit.

“They looked upon the expansion and contraction of credit, which is a mere symptom of the periodic changes in the industrial cycle, as their cause.” 

(Capital Vol. 1, p. 695, Kerr edn.)

To show that capitalism is not what it used to be before 1914, ICC points to recent falling production and living standards, and rising unemployment, but this is what has taken place at the beginning of every depression for nearly two hundred years.

Capitalism did indeed change in 1914. As Professor E. H. Carr puts it, up to 1914: “Britain was the pre-eminent Great Power, and the directing centre of the worldwide capitalist economy.” Now the industrial and military centres of power have shifted to New York, Moscow and Brussels; but this has not altered capitalism’s economic laws or introduced a new “decadence”.

ICC’s belief that since 1914 capitalism cannot afford to make concessions to the workers is belied by the facts, and betrays a failure to understand the economics of capitalism. The capitalists (supported by ignorant or servile academics) have always “proved” that they could not afford to concede anything, as for example giving up the twelve-hour working day and the employment of small children: but the concessions have continued since 1914 as before, and particularly since the second world war.

As output per head of the workers increases (a process speeded-up during the present depression) of course the capitalists can afford to let the workers have some of the increase—as ICC will discover when the depression lifts and in the programmes at the next General Election.

Regarding “the Dictatorship of the Proletariat”, ICC admit that during their prolonged “transition period” the dictatorship will be operating capitalism all over the world (see Nation or Class). They have, however, not seen its implications. How will the dictatorship deal with the next normal capitalist crisis and the strikes that will accompany it? Will they have an “incomes policy”? or suppress the unions?

The peasants are not to be allowed to share in governmental power. What if they seize the land? And what will the ICC dictatorship do when workers, discontented with the effects of capitalism, carry on ICC policy and set up “armed workers’ councils” to fight the dictatorship?

All of ICC’s assumptions about capitalism are wrong; but let us suppose that they are right. Suppose that a minority of workers sets up armed councils all over the world, and suppose (absurd as it is) that they could win against the massive combined armed forces of all the world’s governments, and suppose they succeeded in setting up their world dictatorship—what would have been gained? The problem of winning over the mass of the population before Socialism could be established would still be there, its completion put back a few more years by ICC’s unnecessary and useless war.

Edgar Hardcastle

Blogger's Note:

In the original issue of the October 1977 Socialist Standard, this article had a notice attached below it advertising a cassette tape recording of a recent debate between the ICC and the SPGB. Though the SPGB and the ICC debated each other twice in 1977 - once in Leeds and once at the SPGB's Head Office - my guess is that the advertised recording is of the debate in London between Alan Ward of the ICC and Edgar Hardcastle ('E. Hardy') of the SPGB. That recording of the London debate is available on the SPGB's website at the following link:

Debate with the I.C.C.  – Which way Socialism? 

Debate at Head Office with the International Communist Current; Hardy (SPGB) v. A. Ward (I.C.C.)

Date: 20th August 1977

Letter: Capitalism’s Endgame: a reply to our review (2023)

Letter to the Editors from the November 2023 issue of the Socialist Standard

Dear Socialist Standard,

I’m writing in reply to your recently published review of Capitalism’s Endgame. We all appreciate the time you have taken to read the book, and on the whole – given our political disagreements – it is a fair and balanced review.

There are nonetheless a few points which we would like to take issue with.

Your first two paragraphs read to us more like a settling of accounts with specific groups in the UK rather than a response to the book itself, or indeed to the historical Left Communist tradition which is a far broader current than you seem to suggest. Individually we may have been members of the ICC at different times but we hold no brief for this or any other group.

As for their ‘minuscule size’… in the grand scheme of things (a world population of 8 billion) the SPGB is equally insignificant. I would even hazard a guess that there are more model railway enthusiasts in Britain than there are members of the SPGB, but I would hardly draw any conclusions from that as to the SPGB’s political importance, or indeed the quality of its writing.

Where we do stand four-square with the whole Left Communist tradition, is in the intransigent defence of internationalism and the refusal to sanction imperialist war under any circumstances, including in Ukraine. You say that ‘capitalism’s massive and continued expansion in recent decades… has not plunged humanity, as predicted, into another barbarous world war’. Whether or not war actually breaks out will be determined by a multitude of factors, including whether or not the workers are prepared to fight in it. However, anyone who cannot today see the dangers arising from the growing military tension between the USA and China – which incorporates the Ukraine war – is either naive or asleep at the wheel.

You say that the book is ‘not an easy read’, and this may be true – but is it relevant? Anyone who wants an easy read can buy a potboiler in the best-seller section. We’ve tried to avoid unnecessary jargon but nobody should expect it to be easy to understand capitalism today. Nor do we subscribe to the often popular idea that difficult questions need to be ‘pre-digested’ for the benefit of workers – we prefer to rely on workers’ intelligence and appetite for understanding.

Your reference to ‘dead Russians and Germans’ is merely a cheap jibe, unworthy of a serious review. Have physicists stopped using Hooke’s Law or Maxwell’s Equations just because their authors are no longer in the land of the living?

We make no apologies for trying to ground ourselves in Marx. As we state explicitly in the Introduction, ‘If we cite Marx extensively it is simply because on almost any subject of social evolution, Marx has thought about it already, and in impressive depth, if only still in outline’. Nonetheless, ‘while the immense fertility of this most powerful of social thinkers gives us our starting point, we have no qualms in trying to push his premises further or even in contradicting them should this seem necessary’; we go on to identify three aspects of Marx’s premises which seem to us to be inadequate. This, for us, is an integral part of any theoretical, or indeed historical, approach: to build critically on what has been handed down by previous generations. As Newton said, if we can see further it is only because we stand on the shoulders of giants.

You claim to be ‘in the Marxist tradition’. Perhaps a little more ‘poring over Capital and The German Ideology’ would do you good.

You consider the last chapter, ‘Imagining the Future’ to be the weakest, and you may well be right. As the author, I take full responsibility for this; perhaps it was a mistake to try to combine a summary of the previous chapters and what is intended to be essentially an introduction to a more future-oriented effort to come.

That said, I disagree profoundly with what seems to be your approach to how we can envisage a future communist (or socialist, as you prefer) society. While you are absolutely right to insist on the importance of the ‘interconnected world-wide division of labour’, you seem to think that in the end it all comes down to technology (3D printing, AI or what have you), and that ‘mass sufficiency’ and ‘free access’ can be taken for granted.

This seems to me to be grounded in the assumptions common to socialists at the beginning of the 20th century when the world’s population was 1.6 billion. Today, with a world population approaching 8 billion and projected to rise to 10 billion and in a situation where – as Phil Sutton’s chapter on the environment makes abundantly clear – human society is pushing beyond the boundaries of the planet’s physical capacity to sustain it, the whole notion of ‘abundance’ needs to be called into question and rethought.

In two famous and oft-quoted phrases, Marx described communism as a world where ‘society would at last inscribe upon its banners “from each according to his abilities, to each according to his needs”’, and where ‘the free development of each will be the condition for the free development of all’. This may seem like ‘philosophical meandering’ to you. To me, it is a good starting point.

In capitalist society, the sole aim behind the development of technology is to increase profit (or to make war). In communism, it will be to satisfy human need, but this immediately poses the question of what exactly human need is. This in turn is a social not a natural question.

Any discussion about the nature of communism which hopes to go beyond science-fiction, or Utopian dreaming à la William Morris, must therefore begin by laying a theoretical, materialist foundation which alone can make such discussion possible. And such a discussion would have to engage not just with ‘luxury communism’, but with the arguably far more popular and influential ‘degrowth socialism’.

The chapter as a whole apparently fails to make this point sufficiently comprehensible. We hope to do better in a forthcoming, more developed volume.

Communist greetings

Lars Torvaldsson.

Reply:

We will let the debating points stand and comment on the more substantial points.

The way we express ourselves is important as the point of it is to communicate clearly and effectively to aid understanding. The idea that Marxists can only do this with quotations from selected texts on almost every other page is a failure of communication. Marxism is a method for understanding the world and acting on it, not a catechism with sacred texts that are regurgitated, interpreted and reinterpreted endlessly. And we are far from alone in making this criticism of Left Communism generally and the ICC in particular.

We do not accept the view, inherited from the ICC, that capital accumulation has only been possible since 1914 to replace physical means of production destroyed in world wars nor the implication that sooner or later another one will be needed if capitalism is to continue. This flies in the face of the facts. Capital accumulation has expanded immensely since 1914 and has continued now for nearly 80 years without a world war. As long as capitalism lasts there will be wars but a third world war is not inevitable for capitalism to survive economically.

We look forward to seeing how you develop the view that ‘mass sufficiency’ and ‘free access’ cannot be taken for granted and what you are going to propose in the event of them not being possible. — Editors

Checkmate? (2023)

Book Review from the September 2023 issue of the Socialist Standard

Capitalism’s Endgame. By Mark Hayes, Phillip Sutton and Lars Torvaldsson. Old Moles Collective. 2023.

This is by three writers who stand in the Left Communist tradition, the main organisations of which in the UK are the International Communist Current and the Communist Workers Organisation. They tend to agree with us that socialism or communism means a society of common ownership and free access to wealth without wages, prices, markets etc and also oppose reformism, state capitalism, nationalism and so on. Both groups are very small and they have a tendency (particularly the ICC) to express themselves using difficult, abstract terminology that found its height during the Third International period. It doesn’t make for an easy read and it’s equally easy to come to the conclusion that their minuscule size is as much to do with their inability to move beyond archaic language and formulas as it is about the substance of their political ideas.

Interestingly, this book seems to be an attempt to move a little beyond their established political positions and draws on the ideas of both groups while indicating that their previous formulations might be in need of some revision. Left Communists (like many Trotskyists) tend towards catastrophising – capitalism is forever in its death throws because of its internal contradictions and all that remains is for the proletariat to raise its combat to the level that the vanguard party can guide the revolution towards communism – indeed this is one of their key points of difference with the SPGB. The ICC has long held the view of Rosa Luxemburg that capitalism cannot meaningfully expand once it has integrated all the previously non-capitalist areas of the world economy (such as peasant economies) because in ‘pure capitalism’ the workers and capitalists combined are unable to buy back all the products of industry. This means external markets are necessary and once these have been exhausted then capitalism will enter a period of glutted markets and permanent crisis (said to have been around the time of the First World War). The authors dismiss this erroneous theory as we have done, as it simply does not correspond with the facts – and as we have demonstrated previously, it is also flawed at a theoretical level. They also take issue with the alternative theory adopted by the CWO and originally developed by Grossman and Mattick that the falling rate of profit (and eventually, falling mass of profit) due to technological innovation is the key reason why capitalism is fatally flawed, leading to the need to purge excess capital from the system in destructive wars.

To the credit of the authors, they are at least living in the real world when they realise there is a need to account for capitalism’s massive and continued expansion in recent decades and that it has not plunged humanity, as predicted, into another barbarous world war (though periodic economic crises and more localised wars have continued). They note that the genuine globalisation of capitalism (markets, financial superstructures, the labour market, etc) has underpinned periodically strong growth rates. They also note the massive and related expansion of energy usage, which has risen exponentially since the 1950s and led to a mass of climate change issues.

Indeed, it is here, more than in the pure economics, that they seem to locate capitalism’s potential ‘endgame’, as the competitive drive to accumulate profit leads to ever more environmental destruction. These sections of the book are good and worth reading. This comes with a caveat though – like many of those in the broad Marxist tradition that may be seen to be developing or applying ideas in a slightly different way, there’s a sense that they feel the need to justify everything they write with near constant reference to dead Germans and Russians. This, for instance, leads to endless poring over Marx’s German Ideology, Capital, Communist Manifesto and other texts – the sections where they have more obviously extended their reading a little beyond this tend to be the best. There’s nothing fundamentally wrong with the Marxist method – we sit in that tradition ourselves of course – but it’s not entirely helpful if it turns into the political equivalent of an autistic tic.

There is another caveat too. We would agree with them that capitalism is a decadent social system in that it has long outlived its usefulness. By this we mean that by creating an interconnected world-wide division of labour and raising the forces of production to unparalleled heights, capitalism has created the conditions of mass sufficiency necessary for the construction of a socialist society to replace it. The last chapter of the book is called ‘Imagining the Future’ and it could reasonably be expected that the contents would be reflected by the title, but it is a disappointing chapter and a missed opportunity, being mainly philosophical meanderings about the revolutionary process and the ‘realm of freedom’ beyond the ‘realm of necessity’. There is nothing about the recent growth of the Fully Automated Luxury Communism idea, and certainly nothing on how 3D printing, digitalisation or even AI can help underpin a society of sufficiency and free access, which seems odd. However, the authors do say another, follow-up volume is being prepared, on ‘the nature and perspective of communism’. We just hope they put down the German Ideology for a minute, reflect on their more recent reading and let their imaginations take over for a while.

DAP

Time for capitalism to go (2006)

From the July 2006 issue of the Socialist Standard

Up until the time when capitalism had created the potential for the establishment of a truly socially democratic society it had, despite its awful costs in terms of human misery, been a progressive system.  Inevitably, like earlier social systems, class interest, and the power and influence to enforce that interests, makes it resistant to change and inevitably it became a reactionary, anti-social system.

But its rules and its values predominate in our world establishing their own social morality and we cannot judge capitalists by the social morality of an equitable system predicated on human need when such a system does not yet exist.  Indeed the nature of capitalism, its response to competition, its compulsion for expansion and its imperative for profit, gives it a dynamic beyond the control of either those who profit from it or those who suffer under it. 

The capitalist class does not seek to create things like unemployment as a punishment on the working class – after all its profits ensue from the wealth created by employed workers.  The capitalist class does not want wars and the colossal costs which are a burden on taxation which, in turn, is a charge on the surplus value accruing to the capitalist class.  The capitalist class does not want crime (other than the ‘legal’ variety it itself perpetrates!) which, like armaments and wars, are a charge on capital. Capitalism would be a more secure and socially restful system without the multiplicity of evils it creates but its nature precludes human control even by the capitalists or their political agents and within itself it is a system of fiercely conflicting interests.

Political unanimity within the capitalist class is limited to the need to protect its class interests.  Individual capitalists might feel constrained towards some charity or amelioration of some facet of a situation the system creates but such a response to social ‘conscience’ does not question the values and the priorities of the system itself and certainly the capitalist class, like their historical predecessors, are hostile to the idea of revolutionary change.  That change – again, like previous socially revolutionary changes – must be the work, and, thus, the politics, of those on whom capitalist exploitation is based: the working class.

Even if they wanted to – which of course they don’t – the capitalists could not institute the next phase in the social evolution of human society.  That job is the task of the working class, not because of its ‘moral’ superiority but because of its overwhelming numerical superiority and its historic imperative.

Foot soldiers

Previous social revolutions have occurred when the political and economic basis of a new phase of social evolution have matured in the womb of the old society and the means used has been the physical overthrow of the dominant class by the class representing the new phase for which history has prepared it.

The situation that determines the means of social revolution in modern capitalism is, however, markedly different in several respects to that of earlier societies and earlier revolutions.  The purpose of these latter was to overthrow an existing minority class and replace it with another minority class in order that the new class could establish political conditions that would facilitate a new mode of production.  The chattel slave and the feudal slave may each in turn have been the foot soldiers of revolution but only the conditions of their slavery was changed.

There is now no further minority class interests pressing the norms and social structures of capitalism for new relations in the mode of production and the working class can not turn the system on its head and carry through a revolution that would allow it to exploit the relatively small capitalist class!

At this stage we should define in general terms – because it is only thus it can be defined – what we mean by the working class.  We mean all those who in order to live are obliged to sell their physical or mental abilities to an employer for a wage, salary or commission.  Within that context there is a great variety of income but the common denominator is the compulsion to be and to remain a hired hand.  Conversely, a capitalist can be defined as someone who can live by profit, rent or interest and who works only if he or she wishes to do so.  Again, as with the working class, there is a great variety of income within the capitalist class and there are occasional situations that do not lend themselves to this form of categorisation but it is the only form of general classification that fits the situation as it is.

Capitalism made production social; now history imposes on the working class the task of making distribution social which is the sole means by which the myriad problems of society can be resolved.  It is this change to social distribution that establishes socialism and the politics governing the revolutionary role of the working class in bringing about this change is not only conditioned by the nature of the change itself but distinct from all previous revolutionary changes in the social organisation of society.

End of buying and selling

This can best be appreciated by an understanding of what socialism involves.  Briefly, socialism will be a system of society in which the means of life, the entire productive and distributive resources, will be owned and democratically controlled by society as a whole on the principle of “from each according to their ability and to each in accordance with their self-determined need” The establishment of that principle will mean that the wages system will be ended as will buying and selling and, hence the need for money as a means of exchange.

It needs little thought to appreciate all the wasteful functions that capitalism’s buying and selling world makes necessary.  Hundreds of millions of people are currently occupied in jobs and in entire industries that would disappear with the ending of the marketing system.  Similarly, with the ending of competition for markets, resources and areas of strategic interest, the cause of wars would no longer exist; armed forces and the vast and wasteful array of weaponry these employ would be redundant.  Equally, in a world of free access to needs most crimes would disappear along with the personnel on both sides of that industry.

Whereas in capitalist society the ending of hundreds of millions of jobs would be ruinous, in socialism the freed workers could be absorbed into the workforce ensuring firstly that the social infrastructure needed to end the appalling poverty that currently afflicts the lives of billions of people throughout the world could be speedily ended.  Thereafter, they would augment the workforce to lighten the burden of producing the goods and services needed in their communities and elsewhere.

It will be obvious that the society here envisaged could only be established and maintained on the broadest voluntary human co-operation.  Once established it will create, like all other forms of social organisation its own social conventions affecting human behaviour.  Initially, the ‘politics’ of its revolutionary establishment will require the endorsement of the overwhelming majority organised consciously within the general ambience of a political movement.

Richard Montague

Why society is falling apart (1997)

From the May 1997 issue of the Socialist Standard

Dave Perrin continues the series of articles describing why capitalism is a reactionary, decadent social system ripe for overthrow.

Socialists contend that capitalism is a politically decadent and obsolete social system, wracked by periodic world crises, constant warfare and characterised by unprecedented inequality and exploitation. Having brought about a huge development in the forces of production unparalleled in human history, it has proved itself incapable of utilising its vast resources and technologies properly. Capitalism’s method of distribution is in open rebellion to the vast productive forces built up over the last two centuries, because the market and the profit motive are no longer a stimulus to progress as they once were, but a barrier and fetter.

The market economy has carried out its historic mission of providing the technical conditions for the establishment of a new, higher, social order based on common ownership, democratic control and production for use. Indeed, scarcity should no longer be a problem for the human species: free access to wealth can replace the fetter of the money system and its outdated categories of profits and wages, so that human needs, desires and potentialities can at last be fulfilled in a world of material abundance. But until the working class of wage and salary earners organises itself to put an end to the absurdities of the market economy, capitalism will continue, and the owning class will reap the benefit.

The twentieth century has been an era of growth in global inequality, of world economic crises and world wars, and yet capitalism continues to stagger on even though the basis for its continued existence — working class support — is undermined more and more by the dynamic of capitalist development. Nothing provides a better example of this than the development of capitalism in the industrialised countries over the last 30 years or so.

Surplus value
The most significant economic phenomenon in the major capitalist economies in recent decades has been the decline in the number of workers directly producing surplus value (rent, interest and profit) for the capitalist class, together with the massive and concomitant growth in the number of unproductive workers and expenditure in the economy. In a country like Britain those engaged in manufacturing production — where the vast bulk of wealth and profits are created — has halved during the last 30 years so that today barely 4.5 million work in manufacturing. This is not a phenomenon exceptional to Britain, and it has led to a massive attempt by the capitalist class to increase the rate at which the remaining workers creating surplus value are exploited. It has not, however, entirely succeeded.

While workers are more heavily exploited than ever before, giving more and more unpaid labour to their bosses, profit rates are barely two thirds of what they were in the 1950’s, 60’s and early 70’s for the major capitalist powers. What is worse is that the burden of necessary unproductive expenditures has at the same time risen in nearly all capitalist states with higher welfare bills, huge demands on state pensions and rising state expenditure generally — expenditure which in the last analysis has to be financed from profits. The result has been a massive squeeze not just on the ‘headline’ rate of profit, but the real rate of profit after tax. Privatisation of state concerns eased the pressure of this problem for a while in the 80’s, but in most states including Britain that is a temporary tactic which is already worn out. The economic significance of this trend has been profound and it is a phenomenon which has in many ways dominated economic thinking and policy making since the early 1970’s whether on tax or health service expenditure.

But its importance for the capitalist system and the workers who suffer under it has not been purely economic at a social level capitalism is now in serious crisis and it is this squeeze on profit rates which has played a more important part than anything else in bringing this situation about.

Social decadence
The drive to maintain an adequate rate of profit has increasingly led to a situation where money and commercial considerations have intruded into more and more human activities. Far from capitalism extending sectors of the economy where goods and services are given away free e.g. in health care or transport, the market economy has spread its tentacles everywhere. There is barely a human activity, good or service left which does not now have a price. Everything has become a commodity and the bottom line revolves around cost and profit

A whole host of reformers from the Labour Party to the Trotskyist movement have been proven wrong about the ability of the capitalist state to provide resources based on need rather than ability to pay. The ultimate source of all state finance is surplus value, and when profit rates fall during economic crises and when the burden on profits rises in the form of added demands on the state to ease poverty, unemployment and provide health care, then commercialisation and cutbacks proliferate.

When forces like these are unleashed — as they have been across the world over the last 30 years or so — they have profound social consequences. In particular, the social and moral codes which developed alongside the rise of the capitalist class during the system’s ascendancy have been undermined. The nuclear family, the bourgeois work ethic and the sanctity of private property have all taken a battering under pressure from the rampant and ruthless individualism unleashed by the market itself. For any system of society to survive and prosper it needs its own codes and regulations of behaviour, but those that developed within bourgeois society are now being ceaselessly undermined by the market, the profit motive and rampant competition, yet another example of the contradictions of the capitalist system.

No sector of society appears more worried by this phenomenon than the capitalist class. Capitalism the world over is in economic and social crisis to varying degrees and yet all their old so-called ‘solutions’ are played out — state intervention, nationalisation, Keynesian economies, monetarism, protectionism … it is a long list. Today the capitalist class has nowhere to go except market forces, market forces and more market forces. And yet it is these very same market forces — the only ‘solution’ the system comprehends — which are undermining the entire social cohesion of bourgeois society. Every other columnist in the serious newspapers sings from the same hymn sheet — “society is falling apart — what can be done?”

At present, society is in deadlock. The capitalist class have no perspective to offer society other than even more of that which is causing the problems. And for its part the working class has been unable to implement its own historic solution to the contradictions of capitalist society – socialism. The result of this situation on the political field is a form of political stalemate, and on the social level the descent of capitalism not just into the type of political decadence already discussed, but a very real social decadence too. Society does indeed seem to be rotting on its feet, and nobody has been able to do anything to stop it.

This putrefying of capitalism’s social basis and codes has taken on a number of forms, all of which are symptomatic of a society which is, to paraphrase, “ill at ease with itself”. Here are some of the most obvious manifestations of capitalism’s social decadence:

• the ongoing break-up of community relationships and the atomisation of the individual. This has been particularly characterised by the development of a competitive “every man for himself” type culture as the dominant one in society, and by the appearance and consolidation of seemingly unbridgeable generation gaps.
• the massive explosions of crime and drug taking, phenomena which were once peripheral or isolated in pockets, but which are now generalised throughout the market economy. Even in ‘tranquil’ Britain the official crime rate has more than doubled in the last 15 years alone, and drug culture and youth culture are now virtually synonymous.
• the increases in violence and social disorder, spurred on by the horror and violence infecting the media (especially for children), and the re-appearance — generally for the first time since capitalism’s turbulent infancy — of mass rioting on a regular basis. The worst of these riots, such as in Los Angeles, have turned major cities at the heart of capitalism into uncontrollable war zones.
• the continuing, if not increasing political vacuity of the capitalist class which has been mirrored in the rise of a nihilistic “no future” culture among large sections of young dispossessed workers who see no progress and no hope beyond their pint glass or next ‘hit’.
• the massive corruption of capitalism’s political apparatus, which is particularly evident in Britain with the succession of ‘sleaze’ scandals, but which is in fact a feature of the modern nation state virtually across the globe, from the US to France to Japan (let alone in Africa or Latin America).
• the revival of religious fundamentalism, creationism and the spread of mystical and millenarian sects, this being based on a loss of confidence in science and human progress together with a general rejection of rational thought and problem solving.
• and lastly, though certainly not least, heightened nationalism, racism and inter-ethnic violence, engendered and encouraged by the rampant competition eating away at the social fabric of society.

It is in these ways that capitalism is undermining the principles and continued existence of collective life. Social decadence has eventually followed on from political decadence and all the signs are that it will continue and probably deepen, for there are few if any forces or tendencies within capitalism operating in the opposite direction. Filling the prisons is no long-term solution on many grounds, not least of which is cost, and no government following this line has yet really succeeded in reversing the process which the market has started. None of the TV evangelising by Tony Blair or political appeals to “family values” are likely to succeed either as the very continued existence of capitalism and the forces it has unleashed make that near impossible. Appealing to some sort of higher morality or set of values within the context of the market is clutching at straws, a long way from a considered and practical response to the problem. If the social decadence infecting society is to be overturned it has to be tackled at source — and that means the abolition of the market and the poisonous relationships which spring from it.

Dave Perrin

“World Revolution”: another confused group (1980)

From the August 1980 issue of the Socialist Standard

Recent years have seen the emergence of groups who recognise that by socialism Marx meant a society in which goods would no longer be produced for sale and in which people would no longer work for wages. They have not, however, acknowledged that the Socialist Party of Great Britain has been pointing this out for over seventy years. In fact they have some harsh things to say about us. The journal World Revolution, for instance, which styles itself “the British group of the International Communist Current” is on record as describing us as “a completely degenerate bourgeois organisation which can only play a counter-revolutionary role within the working class” and as “a parliamentarian leftist sect renowned for their Menshevism” (WR3). Recently, however, they seemed to have had second thoughts and have upgraded us from “a completely degenerate bourgeois” organisation to a “confused proletarian” one:

  The SPGB has survived since 1904 as a proletarian organisation. While its rigid sectarianism from the beginning tended to inhibit any real contribution to the clarification of the tasks of the working class, it nonetheless stood against both world wars, attacking them as capitalist wars in which the working class had no interest, and denouncing anti-fascism for the anti-working class movement it was. The SPGB also recognises Russia and China as state capitalist, and sees parties of the left and extreme left as parties of state capitalism. But against these class positions it also holds to the view that the working class can only come to power through Parliament and that it can defend itself through trade unions. It is even confused about who the working class is – for example, it sees the repressive arms of the state, the police, as members of the working class simply because they are paid wages (WR11).

The so-called “International Communist Current” is an organisation with supporters in North America and a number of European countries, centred on the French journal Révolution Internationale which has tried to combine the Italian and German “leftwing communist” traditions, both dogmatically anti-parliamentary, attacked by Lenin in 1921 in his pamphlet Leftwing Communism: An Infantile Disorder.

WR holds that capitalism is, and has been since the first world war, in a state of economic collapse due to its inability to find new markets on which to sell its products at a profit. This view is based on an uncritical acceptance of the analysis made by Rosa Luxemburg in her book The Accumulation of Capital first published in 1913. We are told: “As Rosa Luxemburg showed, surplus value cannot be realised within the context of a purely capitalist economy” (WR1).

Rosa Luxemburg did indeed try to demonstrate this, but her argument was based on a simple fallacy. According to her, under “pure” capitalism (an economy where there are only capitalists and wage workers) market demand was determined by consumption (what the workers spend on consumer goods plus what the capitalists spend on consumer goods). If the capitalists were to consume all their surplus value, so her argument ran, there would be no problem, but as soon as they re-invest a part of it – which, the accumulation of capital, is after all the purpose of production under capitalism – market demand is no longer equal to what has been produced. For, the consumption of the capitalists having been reduced, so, according to Luxemburg, has market demand. The result, she concluded, was that there was nobody to buy the products in which the re-invested profits were embodied (new machinery, raw materials and consumer goods for the extra workers taken on).

This argument makes accumulation impossible under “pure” capitalism and Luxemburg did not shrink from this conclusion. In fact it led her to the basic theme of her book: that for capital accumulation to take place there must be non-capitalist areas to buy the part of the surplus product not consumed by the capitalists. It followed for her that capitalism would collapse at the point when there were no more non-capitalist areas left in the world. It is WR’s contention that precisely this collapse began to occur at about the time of the first world war.

Luxemburg had the intellectual honesty to admit that this theory conflicted with the rough notes Marx had made at the end of Volume II of Capital which implied that long-term growth (accumulation) was possible under “pure” capitalism. She therefore tried to show where Marx had gone wrong, but only succeeded in exposing her own utter confusion about economics. She made the silly mistake of assuming that the level of market demand was determined exclusively by consumption (the spending of workers and capitalists on consumer goods) whereas in fact it is determined by consumption plus investment (capitalist spending on new means of production). Thus, when a part of the surplus value is re-invested rather than consumed, market demand is not reduced; it is merely re-arranged: what the capitalists formerly spent on consumer goods they now spend on means of production. Marx had made no mistake.

Of course, to say that capitalism could in theory exist without external non-capitalist markets is not to say that it always has done. External markets did play a key role in the birth and early growth of capitalism. Similarly, to say that there is no permanent underconsumption built-in to the capitalist system is not to say that there is therefore always a smooth crisis-free accumulation of capital. Far from it. Accumulation under capitalism proceeds by fits and starts, but these crises are caused by other reasons than underconsumption: by disproportions between the different branches of production leading to a fall in the rate of profit or, at times, to a temporary retraction of the market demand for consumer goods. Finally, to deny that capitalism is in a state of collapse through inability to find new external markets is not at all to deny that, since about the turn of the century, it has been a reactionary, “decadent” system with no further positive role to play in the history of mankind. By that time, it had already built up the material basis for a world socialist society and so had fulfilled its historic role.

According to WR theory, the period after the first world war was one of imminent “proletarian revolution” sparked off by the collapse of capitalism. In fact, however, capitalism was not collapsing nor were the workers revolutionary in any meaningful sense of the term, that is, imbued with socialist understanding. They were merely discontented with the terrible conditions they had to endure. A minority were indeed prepared to take violent action to try to rectify the situation, but this did not mean they were revolutionary in the sense of wanting and understanding socialism. The great majority of workers, however, as the results of elections held in Britain, France and Germany at the time showed, remained loyal to the political parties which openly upheld capitalism, including by now the Labour and Social Democratic parties.

Lenin too made the mistake of assuming that a socialist revolution in the West was imminent. His justification for the Bolshevik seizure of power in November 1917 was that it was the first step in the world proletarian revolution, a breakthrough by the working class where the link in the imperialist chain was weakest, to be followed fairly rapidly by revolutions in the other countries of Europe and in particular in Germany. In reality the Bolsheviks’ coming to power was nothing of the sort, but was rather the seizure of power by a determined group in the conditions of chaos following the collapse of the Tsarist State under the impact of the war. Certainly, the Bolsheviks claimed to be socialists, but their support amongst the workers had been built up not for socialism but on the slogans “Peace, Bread and Land”. Once in power they never had any choice but to develop capitalism in Russia which they proceeded to do in the form of state capitalism as Lenin was to frankly admit. Thus their coup d’état was essentially only a point in the process of the development of capitalism in Russia, Russia’s equivalent of the French bourgeois revolution of 1798 or rather of the coming to power of Robespierre and the Jacobins in 1793.

WR, however, and the “International Communist Current”, reject this view and proclaim that the Bolshevik seizure of power was a “proletarian revolution” which later “degenerated” into the state capitalism we see in Russia today:

  Its [the Bolshevik Party’s] coming to power in October was one of the highest moments of the proletarian revolution” (WR1). 

  With the recognition of the proletarian character of the October Revolution must come the realisation that the Bolshevik party . . . was a proletarian party of the revolutionary wave” (International Review No.3, p. 1).

The fact that WR regards the Bolshevik seizure of power as a “proletarian revolution” and the Bolshevik vanguard party as (at that time) a “proletarian party” reveals a lot about their own conception of majority, conscious revolution (as WR claims), yet points to the Bolshevik coup (where an unconscious majority was manipulated by a conscious minority as in all previous bourgeois revolutions) as an example of the sort of revolution they have in mind, then their claim, or their understanding of its implications, must be open to serious question. That, despite what they say, they don’t really stand for a majority conscious revolution will be confirmed when we examine their attitude to Parliament and elections.

WR is vehemently opposed to Parliament describing it as a “circus” and us as “parliamentary cretins” for saying that the working class can make some use of it. They favour instead “workers councils” in which their organisation would play a “vanguard” role. Once again this results from the fascination the Bolsheviks have for them.

Tsarist Russia was a political autocracy which did not permit the organisation of normal political parties or trade unions. Thus when it collapsed in March 1917 there were no mass parties or trade unions, or even local government bodies, through which the workers and soldiers could express their views. To fill this gap they formed make-shift representative bodies called “soviets” (which is merely the Russian word for “council”) as they had done before in 1905. The fact that these bodies were make-shift without any formal democratic structure (though there is no reason to believe that they were not more or less representative till the Bolshevik coup) made it easier for them to be manipulated by a determined minority such as the Bolsheviks were.

Lenin cynically proclaimed these councils as a superior form of democracy to Parliament just because their unstructured nature had made it easier for a minority calling itself revolutionary to come to power by manipulating them. WR has inherited this tradition and has not entirely freed itself from the Bolshevik tactic of organising as a “vanguard” to manipulate the “workers councils” they want set up.

On the other hand, socialists reject all forms of minority action to attempt to establish socialism, which can only be established by the working class when the immense majority have come to want and understand it. Without a socialist working class, there can be no socialism. The establishment of socialism can only be the conscious majority, and therefore democratic, act of a socialist-minded working class.

In these circumstances the easiest and surest way for such a socialist majority to gain control of political power in order to establish socialism is to use the existing electoral machinery to send a majority of mandated socialist delegates to the various parliaments of the world. This is why we advocate using Parliament; not to try to reform capitalism (the only way Parliaments have been used up till now, which has inevitably failed to do anything for the working class since capitalism simply cannot be reformed to work for their benefit), but for the single revolutionary purpose of abolishing capitalism and establishing socialism by converting the means of production and distribution into the common property of the whole of society.

No doubt, at the same time, the working class will also have organised itself, at the various places of work, in order to keep production going, but nothing can be done here until the machinery of coercion which is the state has been taken out of the hands of the capitalist class by political action.

In the passage from WR11 quoted at the beginning of this article we are criticised for saying that the working class “can defend itself through trade unions”. We do indeed say this. The existing trade unions are certainly not perfect – they are bureaucratic, they often collaborate with employers and governments, they engage in reformist politics – but at the moment, given the existing low level of consciousness among the working class, they are all workers have to defend themselves. Actually, we do not support the existing trade unions as such; what we say is that we are in favour of workers organising democratically and taking industrial action to defend their wages and conditions, and where possible improve them, against the encroachment of capital, an activity that has in the past sometimes brought them into conflict with the existing trade unions.

And it is not socialists who are “confused about who the working class is”. We say that the working class is composed of all those who are excluded from ownership and control of the means of production and who are consequently forced, in order to live, to sell their mental and physical energies for a wage or salary, irrespective of the job they do. The working class thus includes office workers and civil servants as well as factory workers and miners and, yes, policemen and members of the armed forces. Indeed, it is partly because we know that the state machine is manned largely by members of the working class that we are confident that the socialist working class majority will be able to establish socialism peacefully. For, when socialist ideas begin to spread among the working class it is most unlikely that those in uniform will remain unaffected. When a majority of workers generally are socialists, so will most of their fellow workers in the armed forces be.

Adam Buick

Capitalism and the Comet (1993)

From the January 1993 issue of the Socialist Standard

This is the way the world ends This is the way the world ends This is the way the world ends Not with a bang but a whimper.—The Hollow Men.

T.S. Eliot, it seems, was wrong. Dr Steel, an expert on asteroids and leader of the world's largest team involved in sighting new pieces of celestial debris, recently informed the second Australian Space Development Conference that Comet Smith- Tuttle, first sighted in 1862 and rediscovered in September 1992, is on course to collide with the planet Earth on 14 August 2116.

Comet Smith-Tuttle is a 3.1-mile-wide ball of rock and ice travelling through space at a speed of 37 miles per second. The comet’s collision with the Earth will create an impact force of 20 million megatonnes, or about 1.6 million times the force of the bomb dropped on Hiroshima. A head-on crash could destroy up to 95 percent of humanity.

With the plot of a thousand sci-fi novellas becoming fact, is any action likely to be immediately instigated to safeguard the future of our children's children’s children? Having been given one hundred and twenty four years’ notice of this impending event, do we agree with Samuel Johnson that “when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully”? Or, is it pointless to concern ourselves with something which will not directly affect a single person alive today?

Putting one in mind of Sir Boyle Roche who asked "what has posterity done for us?’’, the leader column in the Times (26 October) takes a very facetious view of the whole affair. Whilst contemplating the effect of Comet Smith-Tuttle’s arrival upon the stock market and property prices in 2116, the paper concludes that placid contemplation of the world’s fate has always worked up to now. The Times is, however, surprised at the prospect of civilization being brought to and end by a comet. It shares the existing belief that Armageddon is likely to occur through man-made pollution or nuclear war.

Should we placidly accept that the present world-wide system of society— capitalism—will still exist in the twenty-second century? Will the natural competitive elements of a system dedicated to the exploitation of the planet’s resources for financial gain, and to the economic exploitation of the majority of people living on the planet, be suspended whilst global co-operation is exercised in finding some way of averting the threat to ruling class and working class alike?

The odds of a head-on collision with Comet Smith-Tuttle are calculated at 400 to 1. The odds on the world being destroyed by an “internal’’ agency rather than an external one must be considerably shorter. Contemplate the effect of another hundred years of a social system based upon production for profit, not need. A system where political and economic control rests with a small minority. A system where the majority are forced to sell their mental and physical labour power to that minority in order to live. A system where the increasing wealth created by the majority is appropriated by the minority.

Threat from down here
Although no-one now living aged one hundred years has ever experienced the effects of a major collision with the Earth of an extraterrestrial object, they would certainly have experienced several times over the effect of a capitalist crisis of over-production. The same edition of the Times that carried the report of Comet Smith-Tuttle. carried stories with a more contemporary significance. We learn that George Soros, an Hungarian-American financier made £589 million profit from Sterling speculation during ‘‘Black Wednesday”. There are reports covering the march through London of 200,000 workers in support of the redundant miners.

The protests and demonstrations by workers against the effect of yet another capitalist crisis of over-production are understandable but misplaced. Instead of agitating for a fair day's pay for a fair day’s work the working class should be engaged in political action with the object of abolishing the wages system completely. It must be obvious that the bumblings and blusterings of hypocritical politicians and “labour leaders’’ can no longer disguise the fact that they arc powerless to influence the actions of the market system.

Capitalism has run its course. The only question is how much longer the working class are prepared to see capitalism thrash about continuing to do untold harm to millions of workers. The working class has a choice. It can continue to choose to support a social system which brainwashes them, which bullies them, which suppresses them, which makes them homeless, which makes them hungry, which makes them poor, which exploits them and which kills them. Or the working class can choose to realize that we are many and they are few. It can choose to stop its own exploitation and decide to hasten the demise of capitalism and bring about a social system based upon common ownership of the means of production and distribution. The working class can choose to abolish poverty, abolish famine, abolish want, abolish lack of opportunity, abolish the wages system. abolish capitalism.

Without an understanding of the present social system and a desire to bring about the social changes needed if we are all to have a future, simply rioting in the streets will not bring about the social revolution required to implement real global cooperation. After bringing about, and winning, that revolution, the task of preventing a comet from colliding with, and destroying the world must surely be a simple task for a world which by then has known many years of working together to clear up the mess left by capitalism.

There is evidence that the dinosaurs, rulers of the Earth in their time, were made extinct when an asteroid collided with the Earth sixty-five million years ago. We are not dinosaurs, but the social system has become one. It needs to be made extinct. Human beings are the most highly evolved species which has ever inhabited this planet. It seems ludicrous and unlikely that we should allow capitalism, which long ago fulfilled its historical purpose, to continue to prevent us all from progressing toward a collective and individual potential which individuals in the past could only dream about.

Nemesis is not a comet named Smith-Tuttle. Nemesis is the world-wide working class deciding that capitalism has served its purpose and that the time has come to end capitalism now before capitalism has any more opportunities to put an end to us.

Dave Coggan

A World of Waste, War and Want (1997)

From the March 1997 issue of the Socialist Standard

We continue our series of articles describing why capitalism is a reactionary, decadent social system ripe for its abolition and replacement by a genuine socialist society.

In order to end the contradiction at the heart of capitalism between socially interconnected production carried out by the majority (the working class who produce but don’t possess) and private ownership of the means of living by a tiny minority (the capitalists who possess but don’t produce), socialists argue that the working class must become conscious of their real class interests. This means they must become conscious of the need for socialism, a new system of society based on common rather than class ownership, democratic control rather than minority power and leadership, and production for use rather than for sale and profit. If capitalism with its manifold inadequacies and contradictions is to be ended, the working class must organise itself for the capture of political power from the dominant capitalist class, and then must transform the economic structure of society by abolishing the capitalists' ownership and control of the means of living

In putting forward such an analysis of society and reasons for fundamental social change, socialists are not advancing a disembodied theory which reality does not match. This is because the material conditions for socialism already exist, having been created by capitalism itself. Firstly, there is a highly developed productive potential in the world, so much so that capitalist agencies like the United Nations and its Food and Agricultural Organisation declare that given the level of productive development brought about by the working class under capitalism, there is no reason why anyone on this planet should not live a full and satisfying life free from hunger, poverty or preventable disease.

Secondly, a class exists which has a clear material interest in bringing about a new social arrangement based on common ownership and production for use, where human activity is geared solely towards meeting people’s needs and desires. This class—the working class— exists the world over, is the largest class in society, and performs all necessary social functions, making, administering and distributing all the goods and services that exist in capitalism, not directly for themselves but for the enrichment of the capitalists.

Because of these two factors socialists maintain that capitalism has created the conditions for its own abolition. In a political sense it is now an unprogressive, decadent social system, wracked by its own contradictions and ripe for replacement by a more advanced social order. Today it is no longer natural scarcity or humankind’s inability to master nature which causes death, poverty, stress and insecurity, let alone the other evils of modem life—it is the way in which society is organised.

Production for profit, the very thing which spurred on capitalism to conquer the world and develop technology to the level it is now at, is precisely the factor which prevents that technology and productive potential from being used to satisfy the needs of the majority in society. Illustrations of this abound, and this journal for one is always full of them. Hundreds of thousands of building workers on the dole while there is a major housing problem and homeless roaming the streets; famine and starvation amid overproduction of foodstuffs across large sectors of the globe; millions dying from preventable diseases while the most advanced medical technology that has ever existed could cure them—these are all the inevitable products of a system based on the competitive accumulation of profit for the capitalists rather than for the wider satisfaction of social need. And none of it is either inevitable or natural.

Contradictory system 
It is clear that the system of ownership land distribution that exists in capitalism is entirely inappropriate and outdated given the level of the productive forces in society. For this reason alone capitalism can be termed ‘decadent’, and it probably has been a decadent social system acting as a real barrier to human progress since the beginning of this century—and most certainly by the time of the First World War in 1914. At this time a highly developed global productive system had been developed on the basis of the world market and an international division of labour The factor preventing the establishment of socialism from this point on was political rather than technical, specifically the lack of socialist consciousness among the world's working class.

That the working class has not succeeded in overthrowing capitalism has been the greatest tragedy of the twentieth century. However, human organisation has not frozen at this point and the development of capitalism did not grind to a halt at the moment it created the potential for its own demise. Indeed, it was at the advent of capitalism as a truly world system that the contradictions of capitalism started to become most pronounced and its obsolescence most apparent. For instance, it has been in the period since capitalism has become in a political sense decadent that economic crises and slumps—which have always been endemic to the system of production for profit—have become truly world events plunging the working class into greater misery while production of useful articles is curtailed, not because too much has been produced for need, but too much for the market at an adequate rate of profit.

In the progressive, ascendant capitalism of the nineteenth century, crises and slumps tended to be more localised. The crises of 1848, 1873 and 1895—the most severe and significant in that they extended well beyond one region or country—were not sufficient to halt the overall growth of the productive forces being built up under the reign of the market economy. Though these crises seemed severe at the time and had devastating enough consequences for the working class, it was only in the decadent capitalism of the twentieth century that an event such as the October 1929 Wall Street Crash could have occurred with the subsequent massive world slump and banking crisis of the early 1930‘s. On that occasion total world production fell catastrophically, registering significant declines in all the major industrialised countries, while world trade fell by a colossal two thirds from its 1929 level.

As capitalism has become more interconnected on a world basis, economic crises have had the opportunity to spread and deepen more than previously, shaking virtually the whole system itself rather than just a minority of its component parts. The sectors of the globe not under the hold of the market have diminished rapidly this century, providing less opportunity than in capitalism’s heyday for the system to plunder at little cost vast resources from undeveloped areas. This phenomenon played an important part in kick-starting the rapid (and still unprecedented) period of capitalist development in the fifty or sixty years after 1850, but its influence has waned considerably and nearly all capitalist growth is now “internal” to the system itself—in other words, dependent purely on the exploitation of wage labour rather than annexation and imperialist plunder.

Since capitalism became a world system the only sustained period when real overall production increased at anything like the rate of the last half of the nineteenth century was in the wake of the massive post-WWII reconstruction. Since then capitalism has entered another phase of periodic world crises—1968, 1974-5, 1980-2, and 1990-3, with only a comparative handful of developing countries on the Pacific Rim being in any way able to buck the effects. These countries have had the advantage of cheap labour and have been unencumbered by welfare payments and other sources of high state expenditure, all of which the more advanced states have sought to cut back on to bolster sagging profit rates.

During this time of renewed global economic crisis, world inequality, poverty and indebtedness have grown at an unprecedented rate. Just 358 people in the world now own as much wealth as half of the rest of the global population put together—2,800,000,000. Meanwhile the majority in society exist on inadequate diets with insufficient medical care, with hundreds of millions living in appalling conditions of absolute poverty. Large tracts of the planet—over 100 countries—see their real incomes falling year on year, with little sign of improvement. Never before has the gap between the wealth of the richest and the poorest on this planet been so huge, or the consequences of it so disabling and destructive.

Law of the jungle

Decadent capitalism is the system that has brought about devastating world economic crises and it is also the system that has brought with it another new phenomenon—the world war. In decadent capitalism the world is entirely divided up between competing capitals and nation states. Since the imperialist scramble of the late nineteenth century there has simply been nowhere else left to conquer. Wars were barbarous enough in capitalism's ascendancy with several million killed in conflicts ranging from Crimea, to China, to the civil war in the United States. But given the increased tensions and competition that have appeared as the capitalist class has vied for control of an already carved-up planet, the twentieth century has seen the very existence of the human race put in jeopardy. This century has become the era of truly world wars and twice already the world has been plunged into orgies of destruction and barbarity the scale of which has never before been experienced. The 1914- 18 conflict left at least ten million dead, the 1939-45 war at least 40 million. 

According to the politicians whose job it is to deceive us, the period since 1945 has been one of unprecedented peace. This view, in actuality, could not be further from the truth. Since WWII the wars between the various capitalist states and blocs haven’t stopped and since 1945 there have been over 150 major armed conflicts. Indeed, since 1945 there has not been a single day’s peace on this planet. Today, at least 25 wars are raging across the globe.

On an average yearly basis the number of deaths from war in this period has been more than double that of the nineteenth century and seven times greater than in the eighteenth century. This has reflected the greater populations involved in wars and the more destructive nature of the weaponry involved, although significant medical advances have meant that many lives have been saved during wars that would have certainly been lost in earlier conflicts.

The nature of warfare has changed in many ways in decadent capitalism. In particular, civilian casualties have increased dramatically. As an illustration, over 2 million children have been killed in wars in the last decade alone, actually more than the number of soldiers killed. However, the key point is this—whereas periods of decadence in earlier systems of society led to the devastation of entire countries or even empires, world capitalism threatens the whole planet with annihilation, increasingly tailoring its production towards destruction and the development of ever more hideous weapons of war. It is horrendous enough that the policeman of the world, the United States, should be stocked up with nuclear warheads and other mass instruments of death. That the up-and-coming gangster states from the Middle East, the Far East, Africa and Latin America are developing such capabilities is a truly chilling thought And even more chilling still is that it is now only a matter of time before a terrorist organisation gets its hands on them. Terrorists in Japan have already been prepared to use chemical weapons. Who will be first with a nuclear device?

Nuclear capability for the land of Walt Disney is terrifying indeed, for the gangster states and terrorist groups it may be of literally earth-shattering import. In the light of such prospects socialists say what the ruling class increasingly think but are usually afraid to admit to the mass of the population—a society with such awesome weapons of destruction in the hands of Iraq, Iran, North Korea or even one day the IRA or the US militia men is not a society that offers humankind a serious future.

Dave Perrin

Why Capitalism is Decadent (1997)

From the February 1997 issue of the Socialist Standard

Socialists refuse to be taken in by the assertions that capitalism is not only the most viable economic system possible but that it also represents continuous progress. After all, the evidence to the contrary is everywhere — inner-city nightmarish conditions, beggars in the streets, homelessness, increasing violence and drug abuse. . . .  and, of course, to deal with this 'progress', more police officers!

For most of the politicians, economists and historians this century, “the future” has been equated with progress. Even those who have never expressed a belief in the miraculous have invariably claimed that there has never been any reason to think that the future will bring anything other than development and advancement in the overall condition of the human species. While many have recognised that capitalism is not perfect, and have thus spent time trying to perfect it, they have never seriously countenanced an alternative to it because none seemed necessary or relevant. So long as capitalism is defended and emerges victorious, they have argued, humankind will prosper; thus to defend capitalism is to support progress. One historian—Francis Fukuyama—was so confident of the invincibility of capitalism as a progressive social system that a few years ago he pronounced that history had ended with the triumph of the world market and the rise of bourgeois liberal democracy, claiming that minor difficulties notwithstanding, human progress was assured.

While such an attitude has been the prevailing establishment view it has not always been held quite so enthusiastically by the rest of the population. It is, after all, the working class majority in society who have most direct contact with—and experience of—the system's inadequacies, being a subject class with little or no economic power. Today, the ruling class view of progress has less resonance among the working class the world over than perhaps ever before. Recent opinion polls in ‘advanced’ states like Britain have suggested that 60 per cent and more of the population now believe that the kind of world today’s children will inherit will be worse than their own generation inherited, apparently the highest number to take this view since records began. It is a view replicated in a great many industrialised countries let alone in the less developed ones and in the ‘Third World', where meaningful progress for the majority has long been a sick joke indeed.

Is progress still possible?
For our part as we watch the twentieth century draw to a close, socialists do not argue that progress is assured or that, contrariwise, we are all doomed. Socialists contend that lasting progress is possible for humankind—but only under certain conditions. These conditions do not appertain at the moment and most people are right to recognise this and right to question the traditional ruling class viewpoint they have been fed. They are right because we are no longer living in a society that is progressive in any real sense, but one that is reactionary or decadent.

In using the term ‘decadent' to describe modern society some explanation is necessary. Standard dictionary references to this term elicit the following definitions: “a state of decay”, “lacking in physical and moral vigour”, and “decline—especially in sexual morality”. To those most familiar with the word it probably conjures up visions of a society resembling something out of the Borgias or the hit musical set in 1920's Weimar Germany, Cabaret. In popular usage decadence, sexual licentiousness and moral decline are synonymous. For our purposes the wider definition of decadence being taken to refer to something in a state of decay, and existing without vigour, is the most useful.

For instance, over many decades—in fact about 100 years—socialists have argued that the type of society we live in today is decadent. Indeed, it is because we think that capitalism is decadent that we are politically organised to help bring about its overthrow. But that does not necessarily mean we contend that capitalism is drowning in an ocean of sexual immorality. Instead, we say capitalism is decadent because as a way of organising human affairs it is now outdated or obsolete.

To understand this it is necessary to briefly examine the socialist view of historical development, derived in the main from the pioneering work of the early socialists Karl Marx and Friedrich Engels. For without an understanding of the socialist view of social change it is impossible to fully comprehend why we say that capitalism is a decadent social system.

The key to history
During the last century Marx and Engels developed what is usually termed their Materialist Conception of History, an analytical tool which has since been used by socialists to explain historical events and social changes. 'The basis of Marx and Engels’ contention—derived from an investigation of past social changes and the forces that motivated them—was that society is not basically a static entity, changing only superficially, but is periodically subject to dynamic change and development. These changes are characterised chiefly by alterations in the way in which humans organise themselves to get what they need to live—food, clothing, housing, entertainment and so on.

The chattel slave society of Ancient Rome and the feudal society of the Middle Ages were organised on a very different basis to modern capitalist society, for example. Whereas once the dominant form of social organisation was for slaves to be physically owned and compelled to work for the benefit of their masters—often in appalling conditions—the inefficiency of this arrangement led at a later stage in human history to the development of feudalism, where feudal serfs worked part of the week for their own upkeep and livelihood and the rest for the feudal lord. Today we have capitalist society where there is still a class division between two main classes, the difference being that now the majority subject class ‘freely' sells its ability to work on a market in return for wages and salaries in order to live. Like in the other private property systems of Ancient society or feudalism, this subject class is still exploited by a dominant and unproductive class—in this case, the capitalists. However, the nature of social organisation has clearly changed.

Utilising Marx’s analysis, socialists contend that the motive force for such changes in society are the material forces of production. These chiefly consist of the instruments of production themselves (tools, machines, etc.) and the productive skills and knowledge at society’s disposal. In the last analysis, it is technological change which periodically revolutionises the productive skills and tools of society as humankind attempts to increase its power over production. But it is important to stress that this theory is not mere technological determinism—while technological change does tend to ultimately lead to major social change, it does not do so automatically, since humans make history. Any wider social change made necessary by technological development will only come about when struggled for by a group of humans—usually a new social class with a unique relationship to the means of living. Indeed, it is precisely the social grouping which comes to play the key organising role for the new productive methods as these methods are transformed by technological development, that will tend to emerge as the new dominant class in society. This grouping will not achieve dominance automatically and will have to struggle for this position by becoming conscious of its own interests and by then capturing political power from the old dominant class.

We argue that it is this scenario which broadly explains historical change through various social epochs. It explains, for instance, the demise of feudalism and the rise of the capitalist class and capitalist relations of production, and similarly it can be used to chart the decline of capitalism and the rise of the forces in society that have a class interest in its abolition and in the establishment of socialism.

Inventing history

The conditions which gave rise from the seventeenth century or so onwards to the capitalist mode of production—based on wage labour, market exchange and capital accumulation—have now clearly changed in an important way. This is because the role of the dominant class in society—the capitalists—has significantly altered. When the capitalist class emerged as the ruling class in society it was because they originally played a key technical role in the rise of the market economy as it superseded feudalism. Most people arc taught at school the stories of inventors and entrepreneurs such as Arkwright, Watt and others who played such a notable part in the development of the Industrial Revolution. In fact the view of the capitalist class as being the key innovators and inventors in society still persists to a degree, and was used by Margaret Thatcher among others as a form of modern-day justification for the free market It is, however, a view which is no longer to any significant extent supported by reality. Today, very few indeed of the richest men and women in the world have invented or introduced anything to hasten productive development. For every capitalist like Bill Gates of Microsoft there are many times more like the Duke of Westminster, George Soros or the Sultan of Brunei, who only work—if at all—at overseeing their finances.

This was a phenomenon noted in a work which was in many ways a fine application of the Materialist Conception of History, where Friedrich Engels argued in his Socialism: Utopian and Scientific that the transformation of industry and the means of distribution into large joint-stock companies, trusts and state property demonstrated the increasing irrelevance of the capitalist class regarding the management and development of society’s productive forces. He argued from the perspective of the late nineteenth century that as capitalism takes hold:

   "All the social functions of the capitalist are now performed by salaried employees. The capitalist has no further social function than that of pocketing dividends, tearing off coupons, and gambling on the stock exchange, where the different capitalists despoil one another of their capital. ”

In other words, as capitalism takes root, the more isolated and independent nature of human activity in feudalism is replaced by a huge network of socially interconnected production, initially spurred on by a class of entrepreneurs, but then sustained by the mass of the population who come to operate capitalist society from top to bottom, even performing the tasks that the capitalists once did themselves. The capitalist class achieve an economically privileged position in society, and do not have to work or directly involve themselves in the productive process any longer. Hence the key organisational role in society clearly passes from the class of capitalists to the wage and salary earning working class who create all the wealth, including the large part of it appropriated by the capitalists for their own purposes.

As capitalism develops in this way its fundamental contradiction becomes ever more apparent—a socially operated and highly interconnected means of living based on the collective effort of the majority on the one hand, private ownership of this means of living by a tiny parasitic minority on the other. Socialists argue that this fundamental contradiction of capitalism, from which much else follows, can only be solved by the replacement of the capitalist class’s private monopoly of the means of production and distribution by collective ownership by society as a whole—socialism.

(To be continued)

Dave Perrin