Wednesday, January 17, 2007

Blair is Right!

From the SPGB blog, Socialism Or Your Money Back:

Former Labour Cabinet Minister, Clare Short, describes Tony Blair as "delusional". We don't know about that, but he does seem to think that he too, like his buddy George Bush, is the commander in chief of his country's armed forces.

Last Friday he was televised making a speech on board a warship in the Plymouth naval base surrounded by khaki-clad soldiers and camouflaged armoured cars. Exactly the sort of background Bush chooses to make his pro-war pronouncements, but he has an excuse in that, constitutionally, he is the commander-in-chief. Blair is just the Queen's first minister.

Blair told the assembled military personnel that he wanted them and the rest of Britain's armed forces to be "warfighters" and not mere "peacekeepers" and pledged, to prepare for the future wars he foresees, "increased expenditure on equipment, personnel and the conditions of ourarmed forces".

It was an extraordinary display of gung-ho militarism from the head of a Labour government whose first Foreign Secretary declared that Labour, unlike the Tories, would pursue "an ethical foreign policy" and from the leader of a party that once used to pride itself on being the peace party. But, given world capitalism, his argument has a ruthless logic.

Blair drew a distinction between "hard power" (military might) and "soft power" (diplomacy) and argued that if Britain "retreated" into maintaining its armed forces merely for peace keeping then "inexorably" its "soft power" would be weakened too. According to the Financial Times (12 January), he said that "the main risk for the future was not gung-ho leaders too keen to embark on military adventure - but those who concluded that military engagement was too difficult and thereby fall into a passivedis engagement"; in which case "the result would be 'Britain's reach, effect and influence qualitatively reduced'".

It's an argument that can't be faulted. Capitalism is a world-wide system involving a competitive struggle for profits in which all states vie with each other to influence the course of events in favour of profit-seeking enterprises from within their borders. Normally this takes the form of diplomatic initiatives and manoeuvrings but the weight other states attach to these depends on whether they think the state in question has the means - and the determination - to back them up.The means can be - still in the realm of Blair's "soft power" - economic retaliation or sabre-rattling, but to be credible a state must ultimatelybe prepared to do more than merely have big sabres or just rattle them. Blair's model, Mrs Thatcher, understood this well (even if at the time he himself didn't, sporting as he then did a CND badge). Which is why when third-rate power Argentina took over the Falkland Islands she sent out the"task force" to recover them. If she hadn't, Britain's credibility and standing in the international pecking order would have gone down.

So Blair is right. Without armed forces trained and equipped for "warfighting" (and killing and dying) beyond its frontiers, Britain's "reach, effect and influence" to further the interests of its capitalist class in the international arena will be weakened. The terrifying fact is that it is not him who is deluding himself (at least not on this point) but those who believe that an ethical foreign policy is possible. The international state-system that world capitalism has engendered is not one where there are any rules. It's every state for itself, no favours given and woe to the weak. If Britain's rivals on the world stage thought that its government had moral scruples about going all the way in employing its armed forces they would give less weight to its diplomatic initiatives in defence of its capitalist class.

So, what are we to conclude? By all means let those who want a world without war denounce every war that takes place but without the illusion that we can get states within capitalism to renounce war as a policy option. This will never happen as it goes against the whole logic of the capitalist state-system. Once again, it is quite literally true that world-wide socialism is the only framework within which a lasting peace can exist. Let us, therefore, work for it as the priority of priorities.
Adam Buick

Thursday, January 11, 2007

Zapata

Book Review from the WSM Website

Zapata of Mexico. Peter E. Newell. Freedom Press, London.

The Mexican Revolutionary War which began in 1910 saw political power transferred from a reactionary military dictatorship allied to foreign capital to the liberal constitutionalists of the rising national bourgeoisie.

Zapata supported the overthrow of dictatorship but once this was achieved his Liberation Army of the South refused to disband his until their primary objective had been fulfilled. That objective was the return of communal lands that had been appropriated by plantation owners during theperiod of dictatorship. The new government refused to redistribute landand so fighting continued for the rest of the decade until Zapata's peasant forces, a people in arms, could no longer maintain a guerrilla war against the larger and better armed government forces.

Zapata resisted entering the politics of the national government, though he encouraged the tradition of direct democracy in the communities he fought for. At the height of Zapatista military success they conquered the country's capital. When Zapata was invited to sit in the presidential chair in the National Palace, he is quoted as saying 'It would be better to burn it, for I have seen that everybody who has sat in this chair has become an enemy of the people'. Despite opportunity and popular support Zapata refused to install himself as national president.

Though Zapata's political writings and speeches are restricted to the aims of the revolutionary peasant army it is thought that he was influenced by the ideas of Ricardo Flores Magon, a Mexican anarchist whowas then publishing a newspaper from the USA. The Zapatista slogan oftierra y libertad - land and liberty - was taken from Magon. However, the Casa del Obrero Mundial (House of World Workers), an anarcho-syndicalist industrial union founded originally by Magon considered Zapatismo to be reactionary. They politically and militarily opposed the peasants until increasing industrial action led to the new liberal government proscribing the union. Many members subsequently switched sides. Zapata did use the examples of the new governments repression of industrial workers as evidence of the counter-revolutionar ynature of Mexico's new political leadership.

Zapata is not thought to have been religious, in fact he is said to have written " . . . ignorance and obscurantism have never produced anything other than flocks of slaves for tyranny . . .", but deplored the anti-clerical violence of the new liberal government which aimed to reduce the power of the churches. The banner of his 'Death Legion' depicted 'Our Lady of Guadalupe', a Mexican apparition of the Virgin Mary, above a skull and crossed bones.

Since the revolutionary war, inspired by the popular image of Zapata's heroism and virtue as a leader, rhetoric from anarchists to governments promising reforms have invoked the name of Zapata. Zapata has even appeared on banknotes. Newell's respected biography does not dwell on personality traits, military aptitude or leadership skills but describes the material history that produced Zapata, the revolutionary war and its outcome.

This republication of Newell's book of 1979 begins with a new introduction which relates Zapata to the contemporary Zapatista movement, the Ejercito Zapatista de Liberacion Nacional. The book contains a list of sources, references, bibliography and internet links and an appendix which discusses the land question in greater detail.

Further Reading:
From the February 1994 Socialist Standard 'Class War in Mexico'
From the November 2005 Socialist Standard 'Are We All Zapatistas?'

Tuesday, January 9, 2007

The Road To Hell

From the Socialist Courier blog

Michael Moore, American TV programme and movie maker, is a compassionate guy who hates what capitalism does to people and strives to right what he sees as wrongs. Sadly, he hasn't a clue about how capitalism works and is a prime example of the idealist who fights effects but leaves causes untouched.

He thinks that corporations and the filthy-rich should be content with less wealth and should share profits with their workers. What a hope, but here in Scotland we have our own version of Michael Moore the showbiz personality of Elaine C. Smith.

In her column in the Sunday Mail (December 31st) Elaine, having applauded "the risk-takers" and endorsed the capital-labour relationship, lambasts business fat cats who pocket huge sums of money and asks, "Do they really need all that money? Couldn't they have just put a couple of hundred quid in the pay packets of their workers?"

What Elaine doesn't realise that those fat cats get their wealth by trying to ensure that their business maximise their profits and keep shareholders happy. What investors want is not smaller but bigger profits and dividends.

It's not just fat cats and shareholders who want more: everybody does, even working class savers with, say, building societies look for the highest rate of interest. That's what capitalism is all about.

Michael Moore and Elaine C. Smith want a caring, sharing capitalism and although they mean well they should remember that the road to hell is paved with good intentions.
Vic Vanni

Sunday, January 7, 2007

SSP Tames Capitalism!

From the Socialist Courier blog

Reformist political parties in opposition always claim how much better everything would be if only they were in power and the Scottish Socialist Party (SSP) is no exception.

One of their policy documents tells us they would provide free public transport and that this, on it's own, would bring fabulous benefits in just about every area of life.

Everything would be better: the NHS, the environment, the economy, business efficiency, productivity, road safety, more tourists, etc. On top of all this there would be savings of many millions, even billions, of pounds, giving us all more spending power as well as big savings for businesses.

And how is all this to be achieved? By two old leftist illusions; taxing the rich and nationalisation (disguised as public or social ownership). Apparently, nationalisation would be more efficient and cheaper, despite the evidence of past experience, and taxing the rich must mean that we'll still have them. The source of their riches is the surplus value wrung from the working class but the SSP seem not to have noticed this.

We are grateful that the word "socialism" isn't mentioned once in this document because its contents have nothing whatever to do with socialism. The SSP's aim is really just the same as all the other reformist parties - they try to solve capitalism's problems by merely re-organising it. If all their proposed reforms were adopted - nationalisation, the multitude of changes in the tax system, defence budget cuts, etc., we'd still be living in a money-driven, buying and selling economy, still working for wages and salaries, still insecure, being hired and fired, in short, in capitalism.

Free transport for all can really only be achieved in a worldwide, moneyless, production for use society in which ALL goods and services would be freely available to everyone. That's what genuine socialists campaign for and what the SSP NEVER does.
Vic Vanni

A Socialist Looks At Unions (1947)

The following article is from the archives of the socialist press, and is an example of the revolutionary socialist movement's longstanding commitment to class struggle politics both in the workplace and on the political field. It can be read in conjunction with the more recent Q & A article, 'Class Politics in the USA: interview with a WSPUS and Union Activist'

From the June 1947 issue of the Western Socialist


What should be the attitude of socialists toward trade unions? This not a mere academic question. There are well-informed Marxists who contend that unionism should regarded in much the same light as reforms, since unions, like reforms, cannot abolish the ills of capitalism. Regarding unionism, the following proposition was posed by a socialist recently:
"The evils which exist within present society. Be they war, crime, poverty. Or exploitation, have no solution other than the abolition of private property relationships. To fight anyone specific evil is not only a losing battle in itself, but a divergence from the real fight. Hence the only job of a socialist organization is to make possible the speedy introduction of socialism and destroy with one fell swoop the cause of war, crime, poverty and exploitation."

According to this proposition, the emphasis put by Marx on union activity was misplaced, in as much as such activity was "a divergence from the real fight." it is not the purpose of this article rationalize the position taken by Marx. His position on unions may have been wholly incorrect. Or, again, his position may have been valid in the nineteenth century and yet he completely untenable today. Marx's formulations were not infallible. They must be tested in the light of reality, do the present economic and social conditions warrant that socialists look at unions in the same perspective that Marx did?

What were Marx's views on unionism?
The workers have discovered that the union is the only way for them to withstand the overpowering pressure of capital - Karl Marx

Everyone who is acquainted with the life of Marx and with his writings knows that he took a keen interest in developments of the trade union movement in almost every country, coming out openly with letters on the actions taken by unions when engaged in strikes, making suggestions, correcting mistakes. It was Marx's idea that trade unions should be affiliated with the first international and he made it his business to keep in dose contact with locals of the british unions. So important did Marx deem union activity that he felt it urgent to clear away any theories likely to inhibit the struggle of workers on the economic field. Minutes of the first international record that Marx took up the cudgels against that "fine old scout" and old "Owenite named Weston" who propagated the paralyzing doctrine that strikes for higher wages are futile since any increase in wages will of necessity be offset by a corresponding increase in prices -- a doctrine, by the way, which is still heard so much today, out of the Weston controversy came the pamphlet Value, Price and Profit. An incisive brochure whose theoretical and practical conclusions apply today as much as they did when they were written. In this pamphlet Marx phrased his stand on unionism in succinct language. After pointing out that "trade unions work well as centers of resistance against the encroachments of capital" he warned
"At the same time and quite apart from the general servitude involved in the wages system, the working class ought not to exaggerate to themselves the ultimate working of these everyday struggles. They ought not to forget that they are fighting with effects. But not with the causes of these effects; they are retarding the downward. Movement but not changing its direction; that they are applying palliatives, not curing the malady. They ought, therefore, not to be exclusively absorbed in these unavoidable guerrilla fights increasingly springing up from The never ceasing encroachments of capital or changes of the market. They ought to understand that with all the miseries it imposes upon them, the present system simultaneously engenders the material conditions and the social forms. Necessary for an economic reconstruction of society. Instead of the conservative motto. A fair days wage for a fair days work! They ought to inscribe on their banner the revolutionary watchword abolition of the wages system!"

Why did Marx place so much value on union activity, not withstanding the fact that he was au too aware of the limitations of such activity? The answer, obviously, is that unions function at the focal paint of the economic phase of the class struggle - at the paint where the fight occurs over the division of the labor product. Unions are the workers most effective means of defense under capitalism. In the absence of unions, the workers have no way of braking the downward pressure on their living standards and their working conditions. Only by means of their combined numbers in labor unions are the workers able to put up same form of resistance against the insatiable drive of capital for mare land mare surplus value. Only through unions can the workers ease the strain on their nerves and mussels in the factories, mills, and mines. Since surplus value is produced at the paint of production, the most violent manifestations of the class struggle break out at that point.* At that point the organized resistance of labor meets the combined onslaught of capital. So important is organization that in a letter to Bebel, dated March 18, 1875, Engels wrote in reference to the Gotha Program:
"Nothing is said about the organization of the working class, as a class. By means of trade unions. This is a very important point, because these, as a matter of fact, are the real class organizations of the proletariat, in which the latter wages its day to day struggle against capital; in which it schools itself, and which even today, under the most ruthless reaction (as now in Paris) simply can no longer be knocked to pieces."

The history of the American movement is rich with examples of the importance of unions to Workers. The struggles waged and the gains won by workers in the auto, steel and needle trades industries afford excellent case studies of improvements through organizing on the economic field. Before the united automobile workers union was formed, conditions in the auto industries were far worse than are today. The speed-up notorious and the slogan "too old at forty" was a guiding policy of Supervision. When a worker approached that age and could no longer keep up with the fierce pace an the production line, he was usually laid off and his place taken by a younger man. Health hazards in the industry took a alarming toll. Many workers in the metal body departments became afflicted with lead poisoning, a disease which the patient never wholly recovers. Respiratory diseases and speed-up neurosis fetched a larger percentage of victims than is the case today, it must not be assumed that the union succeeded completely eliminating industrial hazards. As long as profits are given priority rating over human welfare, industrial health and safety hazards will remain to menace workers.

Before the union, wages were substandard levels, since unemployment ran into the tens of thousands and manufacturers could hold wages dawn by taking advantage of the desperate competition for jobs. In the absence of, any kind of seniority, a worker could be fired at the slightest whim of the foreman. Consequently boss favoritism was rampant. To ingratiate themselves with supervision, a considerable number of workers would their foreman drinks or repair his garage, or perform other services gratis, the auto workers toiled under conditions characterized by no check on their exploitation save the natural limitations of their endurance. It was under such circumstances that they spontaneously rebelled, and by strength of their organized numbers formed a union, compelling one corporation after another to engage in collective bargaining and to sign contracts which netted substantial wage increases, a measure of security through seniority, amelioration of the speed-up and the end of "red-apple polishing" or boss favoritism.

Lessons of the class struggle
The history of the labor movement proves the Marxian contention that wages are not regulated by any "iron law" but can be modified by organized militant action on the part of the workers, the value of the workers labor-power is not only determined by biological limitations of the human organism, but also by what Marx calls historical and social factors. One of the most weighty of these factors is the relationship of the class forces, the interplay of social conflict. A comparison of the living standards of organized to those unorganized workers tells the story in a nutshell. The US Bureau of Labor Statistics issues statistics showing a breakdown of figures proving that wages are lowest in those occupations in which the workers are not organized or are at best only partly organized.

Those socialists who argue that unions are only institutions of capitalism are correct, but they miss a salient point. Unions are class struggle institutions, and a s such serve as a fertile field for socialist education and propaganda. To a self-styled middle class citizen living in a typical american community, the police are guardians of law and order. But organized workers who have been victims of police brutality on the picket line have no illusions as to whose side the police are on. School teachers may believe the text books which say the interests of labor and capital are identical but the workers of general motors, us steel and even american telephone and telegraph company know from their struggles that their interests conflict with those of their employer. Editorial writers may rhapsodize on the subject of individualism, but the men and women in the auto plants know that as individuals they would be as helpless before the mighty corporation that hire them as a canoe in the path of a battle ship. Abstract preachments about the desirability of labor unity regardless of race or nationality seldom impress anyone. But the necessity of native born whites and foreign workers, negroes and whites, to march together on picket lines, work together in strike committees and hold out together until their demands are won - all this constitutes an object lesson in class solidarity.

To be sure, participation in the class struggle does not automatically make workers class conscious. And this brings us to the question of the role of the socialist in the trade unions. As a union member the socialist can participate in union affairs and in the course of doing so he can clarify events for his fellow workers in the light of socialist knowledge. No matter what issue happens to be under consideration, the socialist can explain it from the standpoint workers of class interests. Is the union engaged in negotiating with management for a wage increase? Then the socialist can make clear that wages represent only a portion of what workers produce, and that the unpaid portion is surplus value appropriated by the employing class.

Is seniority next on the agenda? Then here is an appropriate occasion for the alert socialist to take the floor and explain that seniority is at best a necessary evil in an economic system that breeds job insecurity and unemployment. After laying bare the roots of the trouble the socialist can indicate the cure. Or perhaps a union brother rises to bring to the attention of the union membership the existence of a grave case of discrimination in his department. This ought to provide the socialist an occasion to show how racial discrimination arises out of economic conditions, out of the struggle to get jobs and to hold them after they have been obtained.

And when the top ranking union bureaucrats seek to line up the members in support of the democratic party - or any other political party dedicated to perpetuating capitalism - the socialist can expose that party, pointing out to the workers that their only real hope lies in joining and working for the abolition of the wage system. "Unions fail partly from the injudicious use of their powers" wrote Marx, and the socialist can and should warn their fellow unionists what pitfalls are in store for them and their class if they give their time, money and votes to a party which can only work in the interests of their masters.

Oppose bureaucracy
Another duty of socialists in the union is to wage an unceasing fight against the trend towards bureaucracy, urging the workers to be eternally vigilant in the defense of their democratic rights, opposing high salaries for the officials, proposing limited tenure of office, insisting that all major decisions be ratified by the membership - in a Word demanding that the the unions be conducted of, for and by its members in fact as well as theory. To the extent that a union gets settled with dictatorship, free expression is restricted, the rights of the membership are treated with contempt, major policies are formed at the top, and the bureaucracy tends to increasingly to act as a disciplinary agents for the employers, using such devices as the check-off and no-strike provisions to hold the workers in line. Socialists should consistently impress upon the workers the urgency of restoring the union to the membership, in whose democratic control it belongs.

The leadership fetishism propagated by certain so-called left wing groups who would have the workers believe that everything depends on the "right kind of leaders" must be vigorously combatted. Blaming union officials and yelling "labor fakirs" when incorrect policies are followed will solve nothing, a union is no better than the members who form it. The character of the leadership is to a large degree a reflection of the maturity or lack of maturity of the rank and file. For this reason socialists should seek to raise the understanding of the rank and file, to imbue them with an awareness that their elected representatives should be the servants, not the masters, of the membership.

There is one thing that socialists should avoid like the plague in their union activity, namely, the unfortunate practice practiced resorted to by avoid bolshevik groups of maneuvering and conniving to use unions as their vehicle for carrying out their political "line". Unions are first last and all the time economic organizations operating within the framework of capitalism. Attempts to use them for purposes other than this can only react to the detriment of the unions and their members. The tragic consequence that follows when communists gain control of a union is a matter of sorry record. The unions should belong to the members, and not be dominated by any clique, political or otherwise. Sometimes such cliques rationalize their drive to worm their way into key union posts on the grounds that once in top positions they will be better able to advance the cause of socialism. Actually the only thing they advance is their party "line" or else themselves. Such "vanguard" outfits care not a whit about educating the workers, but are only interested in indoctrinating them and mobilizing them in accordance with the latest party shibboleths. They are not concerned wit making the workers class conscious but only slogan conscious.

The socialist does not sloganize workers, nor do we use the union simply as a soapbox from which to harangue the membership. We participate in the union, seek to give good account of our actions, and when issues arise we offer a class conscious interpretation of them. Fortified by the socialist outlook, we do not succumb to opportunism, and never cease to do what we can to make socialists out of trade unionists, instead of allowing the union to water down our socialism. By keeping clear of underhanded deals and political shenanigans, by taking a principled stand on controversial questions, however unpopular such a stand may be at the moment, by fearlessly opposing proposals inimical to the workers interests, and, finally, by judiciously presenting the socialist analysis of day-to-day problems confronting labor - this constitutes socialist activity in the union.

When workers are lock in combat with their employer, through strike action, socialists as an organized group should assist their fellow workers in whatever way they can, such as writing articles and leaflets from the workers point of view, speaking on pertinent working class issues when invited to do so at union meetings; offering the party headquarters to strike committees, etc.

The suppression of labor unions in any country usually signifies the suppression of all organized working class resistance. This fact should make apparent how deserving unions are of socialist support.This is the answer to the question what attitude should a socialist take towards unions.
R. Parker
*However, the exploitive nature of capitalism gives rise to the need for unions wherever workers labor for wages.

Friday, January 5, 2007

Marxian Economics in the Modern World (1973)

From the September 1973 issue of the Socialist Standard


Economists claim that they can get behind surface appearances and tell us what really determines such things as prices, wages, profits, foreign exchanges, market demand, unemployment and so on, and what will be the consequences of developments in industry, or of government measures in the field of taxation, currency, and wage and price controls. The test for any economic theory is a practical one. Was Marx right, for example, in denying the proposition that wage increases are useless because they put up prices? Or was Keynes right in claiming that if governments take certain action they can ensure continuous full employment? With this practical consideration in mind the question presents itself: have Marx's economic doctrines, elaborated a hundred years ago, any relevance today, or was Keynes right when he described Marxian economics as "not only scientifically erroneous but without interest or application for the modern world"?

Before answering the question it is useful to note how and why the study of Marxian economics has changed with the passage of time.

In Britain and other countries in the "Western" world interest in Marx's philosophical and political writings has never been so great as it is now, as is shown by the flood of reprints and of new works about Marx. Partly this is a sympathetic interest but partly also a by-product of the "Cold War". In the nineteen-sixties influential American politicians (among them Richard Nixon when Vice-President, and Allen Dulles, Director of the Central Intelligence Agency) were urging the need for schools to include the study of Marx in their curriculum so that there would be a better understanding of the then "enemy", Soviet Russia, its leaders and their policies. But interest in Marxian economics has followed a different course from that of other Marxist studies. The twenty-year "Great Depression" of the last quarter of the nineteenth century forced governments, economists and business men to look for an explanation of the seeming universal "overproduction", an explanation they could not find in the works of older economists, and Marx came in for a great deal of attention if only to combat the growing interest in him shown by dissatisfied workers and their organisations. This continued right into the years of the next acute depression in the nineteen-thirties. Then the scene was drastically changed by Keynes' rise to fame, based on his confident demonstration that governments need no longer put up with idle factories, falling profits and mass unemployment, with all their devastating economic and political consequences.

Keynes ousts Marx
The effect of the Keynesian upsurge on the study of and interest in Marxian economics was striking, not only in the universities but also in the political parties and trade unions. At the universities further study of Marx became irrelevant - why waste time on reading difficult works such as Capital, that "obsolete textbook" as Keynes called it? What happened was that Marx came to be regarded as an example of discarded error. As Professor Robert Freedman put it in 1961: "Most students of Marxian economics rarely read the master, but are content to let his critics speak for him".

In Britain the Tory, Labour and Liberal Parties found common ground as disciplines of Keynes, or of what they (sometimes mistakenly) believed to be Keynesian doctrine. The official Labour Party version in 1944 was in the following terms:

If bad trade and general unemployment threatens, this means that total purchasing power is falling too low. Therefore we should at once increase expenditure, both on consumption and on development, i.e. both on consumer goods and capital goods. We should give people more money and not less, to spend.

The trade unions were delighted to welcome the prospect that a future Labour government (or even a Tory one) would encourage them to press for higher wages. How much more pleasing this was to them than the customary action of employers (backed by the 19th-century economists) of seeking to restore profit margins in a depression by reducing wages; or than the teachings of Marx that capitalism's periodic crises and depressions happen anyway and neither higher nor lower wages will prevent them. The trade union enthusiasts for Keynes failed to notice that what he was proposing to meet such a situation was to reduce the workers' real wages by putting up prices instead of reducing their money wages.

One effect of the Keynesian cult was that a number of people who had called themselves Marxists recanted (John Strachey, for example, who took office in the Attlee Labour government) and the group of trade union officials and Labour MPs who had studied Marxian economics became silent. The Communist Party of Great Britain, which continued to urge the study of Marxian economics by its members, had no difficulty in simultaneously supporting the incompatible Keynesian doctrines of the Unions and the Labour Party.

But now the scene is changing again and there is the beginning of a revival of interest in Marxian economics. Two happenings have brought this about, the growing recognition of the failure of full-employment policy and the unprecedented and uncomprehended rise of prices.

Because, for other reasons, unemployment happened to be very low in Britain and many other countries in the first decade after the second world war, it was easy to represent this as a proof that Keynes was right, but in Britain the steady climb of the peaks of unemployment since 1955 back at least to pre-1914 levels, has induced re-examination of the problem. The rise of registered unemployed to over a million in 1972 with probably another half-million not registered could not be disregarded, and some who had written Marx off are now wondering whether perhaps he was right and that capitalism inevitably creates unemployment; low in boom times and rising in depressions to peak levels.

Keynes and Marx confront each other about the problem of unemployment and, in an indirect way, about the problem of inflation. When Keynes formulated his theories in the nineteen-thirties unemployment was in the region of two million, but prices had been falling for most of twenty years, so not high prices but high unemployment was the preoccupation of governments and economists.

In 1944 when the three parties in the wartime coalition government issued their joint Keynesian statement on post-war policy it held out the prospect of full employment, steady growth of production and more or less stable prices. The one they were then most apprehensive about was unemployment but now successive governments feverishly grapple with all three problems together. As prices are more than five times what they were in 1938 and rising fast, inflation is declared to be enemy No. 1 in 1973. It finds most of the politicians and economists completely baffled, so that they offer such childish explanations as that the general price rise is caused by wage claims or by the greed of the bankers, manufacturers and retailers - as if trade unions were not doing their utmost to push up wages and employers doing their utmost to push up prices in the nineteen-twenties when prices and wages were falling fast in spite of all their wishes to the contrary.

Marx in Capital provided a comprehensive explanation of the factors which govern prices, including general rises of the price level caused by an excess issue of an inconvertible note issue. It was an application of his labour theory of value. Most economists not only reject it but see no need for any theory of value, yet ironically Keynes accepted it completely. His exposition of inflation in his Tract on Monetary Reform reads like a paraphrase of Marx, as indeed perhaps it was. Although Keynes advocated a short-term deliberate increase of prices in certain circumstances he was not a crude inflationist and if he had lived into the post-war inflation it is probably that he would have disowned what was being done in his name. Yet the responsibility was largely his because it was he who influenced economists and through them governments to take off all formal restrictions on the note issue in the belief that it is not necessary.

To complete the comparison between Marx and Keynes it must be remembered that while Keynes concluded from his studies that capitalism can be controlled and managed in such a way as to avoid booms and slumps and secure continuous full employment, Marx held no such view. Keynes said that capitalism could and should be saved, Marx held that it had outlived its role in human society and should be replaced by Socialism.

Marx made many other valuable contributions to economic theory. His explanation of the cycle of booms and depressions removes the mystery from the superficial appearance that the population sometimes seems to be too small and at other times too large; and that in one phase there appears to be "too much money" and at others "too little", the reality being that in a boom the capitalist wants to turn his cash into means of production and in a slump wants urgently to turn his commodities into cash.

His analysis showed how the periodical big expansions of production depend on the existence of a "reserve army" of unemployed - something being demonstrated at the present time when the short-lived boom is already being threatened by shortage of workers.

One of the failings of many modern economists is their confusion about what constitutes an increase of productivity. The labour theory of value shows that the amount of labour needed to produce a commodity includes the labour at all stages, not merely the final stage of the production process. For a table or chair, for example, this includes the growing and felling of the timber, its processing and transportation as well as the final process in the furniture workshop, and an increase of overall productivity per worker cannot be measured by technical changes in the workshop alone. Appreciation of this would have obviated the common wildly-exaggerated estimates of the effects of mechanisation and automation.

Marx also showed the fallacy of the belief that booms are created by bank lending; the expansions and contractions of credit being not the causes but the symptoms of the trade cycle.

Marxian economics in Russia
Trying to estimate the influence of Marxian economics on the administration of State capitalism in Russia and other Comecon countries in which the study of Marx is official dogma comes up against many difficulties, not the least of which is the difficulty of deciding whether the official reason given for any government policy is the real one: government double-talk is at least as common in Russia as in the rest of the world. In Russia it takes the form that publicly everything the government does has to be presented as "Marxist" and when the policy is reversed that too is "Marxist".

We can take for example the question of depreciation of the currency. As sometime students of Marxian economics Russia's rulers should know that an overissue of inconvertible paper currency causes inflation, and they used to claim that this could only happen elsewhere, not in Russia - until it did happen in Russia and was drastically dealt with in 1947 by the issue of a new currency. What we don't know is whether they blundered into their inflation in ignorance, or whether it was by design as the easiest method of financing government expenditure.

A specific charge that the Russian government has been influenced by, and led astray by, Marxian economics is made by Harry Schwartz in the Introduction to Marxian Economics edited by Robert Freedman (Pelican Books 1961). The charge is that the labour theory of value led the Russian government to suppose that "interest on capital" does not need to be taken into account as a cost. He says that the Russian planners chose hydro-electric power stations in preference to coal or oil-fired stations because the latter need fuel and the former do not and therefore the hydro-electrical stations must produce electricity more cheaply; but they disregarded the much larger amount of capital required for hydro-electric stations.

All this proves, if true, is that the Russian government, like Mr. Schwartz, did not understand the Marxist labour theory of value; for it includes in the value-forming socially-necessary labour required to produce a commodity (in this case electricity) the value transferred from the plant and machinery.

Like any other constituent of constant capital, machinery does not create any value, but yields up its own value to the product it serves to beget. In so far as it has value and therefore transfers value to the product it forms an element in the value of the product. (Capital Vol. 1, Alien & Unwin edition, p.410)

Schwartz also charges that the labour theory of value has not "provided any very useful guidance for the setting of prices by Soviet planners".

This is not surprising and does not support Schwartz's belief that there is something wrong with the theory. Marx was describing a capitalism in which the prices of commodities are determined under the play of market forces, not a state-capitalist form in which the kinds of commodities, their quality and their prices are centrally fixed by the planners. If this has resulted, as recently reported, in there being millions of pairs of shoes in the shops which customers do not want this has nothing to do with Marxian economics.

Marx and the Vulgar Economists
Marx made a distinction between such men as Petty, Adam Smith and Ricardo and their successors. He wrote of the former that they devoted their efforts "to the study of the real interrelations of bourgeois production", while the latter were "content to elucidate the semblance of the interrelations" and to act in effect as apologists for the capitalists (Capital Vol. 1, Alien & Unwin edition p.55). His use of the terms "classical" and "vulgar" to describe them was one of the very few things that Keynes acknowledged having borrowed from Marx.

What of the modern economists, now numbering many hundreds? Few of them even claim to be serious students in the way that Smith, Ricardo, Marx and Keynes were. To quote what Marx wrote of their predecessors, "they spend their time in chewing the cud of materials provided by others", and "proclaiming as eternal verities, the most trivial and self-complacent notions which the agents of bourgeois production entertain with regard to their own best of all possible worlds".

Some who do have a better understanding of capitalist problems complain that they are talking to the deaf ears of politicians. Nothing written by Marx about the vulgar economists of his day was more harsh than criticisms of modern economists recently made by Samuel Brittan, himself an economist, and by The Economist.

Samuel Brittan, contrasting modern economists with Smith and Ricardo, had this to say:

Economists do not exist mainly to promote enlightenment, to discover how the economy works or for other such vague and worthy purposes. Like other producers, economists survive and prosper by studying the market and supplying what it appears to want. (Financial Times, 28th October 1971)

And The Economist (2nd June 1973) in an unsigned editorial, also making comparison with Adam Smith, wrote:

If economists today took more trouble to explain in simple language what they are trying to prove and what relevance it might have, the gulf between theory and practice might be closed somewhat. As it is, more and more economists fill more and more pages of learned journals with an endless stream of ill-written, verbose, half-baked mumbo-jumbo which has as much value to policy makers as the chattering of starlings.

When modern economists dismiss Marxian economics as difficult, unscientific and without application it is fitting to bear in mind who are the people who make the charge.
Edgar Hardcastle

An Edgar Hardcastle page has just been opened on the Marxist Internet Archive.

Thursday, January 4, 2007

Some Recent Additions

Part of the purpose of setting up this unofficial page for the Socialist Standard on MySpace was so that it could provide an outlet for publicising old articles from the Socialist Standard on the internet. On a number of occasions, many of these articles have appeared on the net for the first time.

Great minds thinking alike - and all that jazz - has meant that other members of the 'World Socialist' tradition have also been using the internet to dust down old articles from the revolutionary press to bring to a wider audience.

The following links are to articles from the Socialist Standard that are appearing on the internet for the first time. Apologies to the non-British readership for the heavy slant towards British and Irish politics but hopefully, in time, there will be reprints from such old socialist journals as 'The Western Socialist', 'Socialist Clarion' & 'Fulcrum', to name but three journals published in North America down the years.

As a point of information, the International Socialists, the group referred to in the articles from the Socialist Courier blog, are the modern day British Socialist Workers Party.

Hope people find the articles of interest.

Yours for Socialism,
Darren

Recent reprinted articles posted on the Mailstrom blog:

  • James Connolly: an Assessment (from the October 1973 issue of the Socialist Standard)

  • Scotch Mist (from the July 1969 issue of the Socialist Standard)

  • Recent reprinted articles posted on the Socialist Courier blog:

  • Inside the Bolshevik Cul-de-Sac (from the April 1970 issue of the Socialist Standard)

  • Report of a debate with the International Socialists (from the July 1970 issue of the Socialist Standard)
  • Tuesday, January 2, 2007

    Class War in Mexico (1994)

    From the February 1994 issue of the Socialist Standard
    Peter Newell, author of a biography "Zapata of Mexico", gives the historical background to the recent peasant uprising in the south of Mexico
    The Mexican government appears to have been taken by surprise at the recent events in the state of Chiapas, three hundred miles east of Acapulco, in southern Mexico. Indeed, as late as October last year the Interior Minister was denying the existence of insurrectos in Chiapas.

    Yet on New Year's day, hundreds of guerrilleros, calling themselves the Zapatista National Liberation Army, captured the town of San Cristobal. They carried a variety of mostly old hunting rifles, home-made grenades and machetes. Many were women. On the same day, Canada, the United States and Mexico signed the North American Free Trade Agreement (NAFTA).

    The Land Question
    When the Spaniards first arrived in Mexico, in 1517, the Indians still held the land in common. The idea of private property in land did not exist. The common lands were usually located on the outer edges of the pueblos or settlements. They were called "ejidos", which means exit or "way out".

    New Spain, as Mexico was called, was largely conquered by private adventuruers known as conquistadors, who were firmly controlled by a group of agents of the Spanish Crown known as "gachupines" (Wearers of Spurs), together with the leaders of the Catholic Church. At first, the conquistadors numbered only a few hundred,and even after a generation only a few thousands. The conquistadors soon made the Indians work on their land, which in theory now belonged to the Spanish Crown, whilst the Indians, later called peones (People of the Earth), were expected to live on the produce of their ejidos.

    As time went by, the Spanish Crown granted legal titles of ownership of the land. But since most of the Indian pueblos could not obtain grants, the conquistadors grad ually enlarged the boundaries of their estates, claiming that the land that they were occupying belonged, not to the peones, but to the Spanish Crown:
    "By a slow process of attrition extending through generations, the relatively small holdings of the original conquistadors were gradually enlarged into enormous haciendas which covered most of the fertile lands of Central Mexico." (Henry B. Parkes, A History of Mexico).

    Probably 40 percent of the Indian population were compelled to become labourers on the haciendas and large estates. They became debt-slaves, and their debts were inherited from generation to generation.

    The hacienda owners, or "hacendados", were not generally interested in improving their methods of production. And the Indians were deprived of farm implements and domesticated animals such as oxen. Agriculture, therefore, stagnated. But early in the nineteenth century, a form of "plantation capitalism" slowly began to emerge. Within a still largely feudal economy the haciendas developed, whose aims were purely commercial.

    After a long and bitter struggle, Mexico achieved its independence from Spain in 1821. Following independence, the Catholic Church was forbidden to own land; but it was paid compensation for its former estates. The Indian peones were unable to purchase the former Church land (which, before the Spanish conquest, was theirs anyway); only the already wealthy landowners could afford to. The result was to increase the concentration of land ownership on a scale hitherto unknown.

    By 1889, twenty-nine landowners obtained 27.5 million hectares, or 14 percent of the total land area of Mexico. By 1900, about 50 haciendas comprised more than 100,000 hectares each. Meanwhile, the Indians continued to lose their common lands; and more and more of them were forced to work on the large estates.

    Dictatorship
    On November 21, 1876, Porfiro Diaz became President of Mexico. He was to remain virtual dictator until May 1910. Nevertheless, under Diaz, Mexico underwent profound change. He encouraged the flow of foreign capital into the country. Money flowed in from Britain, the United States and elsewhere. Vast sums were invested in the construction of railways, the mining of silver and, after 1900, the production of coffee, sisal and sugar. Between 1880 and 1890, foreign capital outpaced Mexican investment. Public works were undertaken, including harbours, canals, drainage works and telephone and telegraph lines. A new industrial working class was recruited from the former peones dosplaced from the land. Indeed, by 1907, there were 40,000 textile workers and 100,000 miners in Mexico.

    Naturally, this emphasis on industrialization increased the already clearly defined differences between rich and poor.

    Industrial capitalism was very largely imposed upon the hacienda system, under which half the population was bound by debt-peonage. Modern capitalism was developing within the shell of a buereaucratic, corrupt and decadent feudalism. In cooperation with foreign interests, Mexico's economy was tightly controlled by a small group of businessmen and financiers known as "cientificos".

    But by 1904, there were signs, tenuous at first, of economic instability. Between 1907 and 1910, inflation was rampant. Yet there was no ascertainable rise in wages. Trade unions were banned or severely restricted; but in 1906, the first industrial conflict in Mexico broke out at Cananea, in the state of Sonora. The workers of Mexico had begun to move. Other strikers, in the textile industry, followed in 1908 and 1909.

    Without quite realizing it, Porfirio Diaz began to lose support.

    Revolution
    The first to rebel against Diaz was Francisco Madero, the son of rich landowners in northern Mexico. Madero had a passion for education and radical reform. In June 1910 he challenged Diaz for the presidency; but first, he was arrested, then he was said to have received only 196 votes throughout the country. (Later on, in 1913, he was to be murdered by supporters of the by then deposed Diaz.) Madero, however, had begun a movement which would not only overthrow Diaz, and the ancient regime, but would result in a bloody and violent conflict lasting ten years. To the casual observer, the Mexican revolution seemed quite chaotic and purposeless. Small armies and guerrilla bands appeared to be rushing about in all directions; and the whole country seemed to be in a state of disintegration. But by 1911, a distinct pattern began to emerge. Mexico was, in fact, rent into three completely irreconcilable socio-economic classes.

    The first was the deeply-entrenched hacendado, land-owning element, supported by the Catholic Church, a few home-grown financiers, and a powerful coterie of foreign concessionaires, chiefly British and American. Politically, they were Porfiristas; and they were looking for a new and yong dictator. The second was the emergent, rising bourgeoisie - the businessmen and small land-owning class, including a few propserous rancheros. They were generally nationalistic, which meant being anti-British and anti-American. And, like the bourgeoisie of seventeenth-century England and eighteenth-century France, they favoured a somewhat limited constitutional democracy that would free them from the fetters of a largely feudal absolutism,and give them a modern administration responsive to their needs.

    The third was the great mass of Mexico's dispossessed - the peones and debt-slaves, the small rancheros, and the new class industrial wage-slaves, such as the miners and railway workers. Among these, there was a distinct, and very independent group, mostly confined to the state of Morelos and a few neighbouring states, who would later be called Zapatistas.

    Zapata
    Morelos lies just over 60 miles south of Mexico City. Since the sixteenth century, sugar plantations have dominated its life. Unlike elsewhere in Mexico, the great hacendados produced sugar-cane for profit and the market, and not for immediate consumption. After 1880, more and more of the Indians were forced off their common lands. Many of the haciendas developed into "company" towns, employing from between 250 and 3,000 workers. Such was the environment into which Emiliano Zapata was born, in San Miguel Anencuilco, in 1879.

    Zapata was not a landless peon; his family owned a modest rancho, and his parents lived in a small adobe-and-stone house (the remains of which still exist, as I discovered when I visited Anencuilco). The Zapata family were poor, but, unlike most of the people in Morelos, not depressed to the verge of want. Emiliano also had a little schooling. And he became an expert horseman. He was a bad orator, but he became a good organizer. And soon came to hate the rich landowners. Nevertheless, he was far more patient than many of his companions, even after he had been elected Supreme Chief of the Liberation Army of the South.

    Emiliano Zapata was, of course, not a socialist. Nor was he an ideologue. He wanted, and fought for, the return of the common lands stolen from the Indians; and, as time went by, he was influenced to some extent by the ideas of the anarcho-communist Ricardo Flores Magon. If anything, Zapata was a rather backward-looking utopian communist. But he could not be bought. He was offered almost anything to give up the struggle against the rich, the powerful and the Mexican state; but he never gave up, even after ten years. In 1919 he was lured into a trap by government agents and murdered.

    By 1920, after ten years of struggle, insurrection and civil war, Mexico was in a very poor way indeed. The power of the hacendados had been largely broken; but the people were exhausted. Even the Zapatistas had had more than enough. But, as recent events have shown, Zapatismo lives on.

    New Mexico
    Between 1920 and 1933, almost eight million hectares of arable land was returned to the peones. But between 1934 and 1940, during the presidency of Lazaro Cardenas, more than twelve million hectares was distributed. He also organized an "ejidal" bank to give credit to new farmers.

    However, with what was to be the slow, but irreversible, development of industrial capitalism in Mexico, the few existing, as well as newly-created ejidos, tended to become merely cooperative farms, largely financed by the government. Since 1940, more land has been distributed; but, in the main, the plots have been so small that they are economically unviable.

    Feudalism in Mexico has gone. A new, bourgeois, capitalist class has emerged, as well as its opposite, a propertyless, working class. But there are still millions of peones and former peones often living in appalling poverty. Many are, in the words of Franz Fanon, the "Wretched of the Earth", waiting, if they are lucky, to be used as cheap, exploited labour in a increasingly capitalist economy. For decades following the end of the civil war, they had became apathetic, demoralized, even frightened. Meanwhile the Mexican government had become more powerful, efficient and, therefore, more repressive. Then, things began to change. In October 1968, on the eve of the Olympic Games, over 200 student demonstrators were killed by units of the army.

    After 1969, numerous Zapatista-type groups began to operate in various parts of the country. There was considerable unrest in the state of Puebla, following land occupations. In the state of Guerrero, a guerrilla "party of the poor", another Zapatista-type organization, had considerable grassroots support in the vast, almost impenetrable mountain and jungle areas between Acapulco on the Pacific Coast and Morelos.

    Still Active
    Although its leader, Lucio Cabanas, was finally killed by the army in 1974, remnants of the "party of the poor" were still active in Guerrero when I was there in 1980. Throughout the 1970s, there was considerable unrest in at least five states. And hundreds of peones were killed by the Mexiacan army. In 1981, there were violent demonstrations against the state oil company, Pemex - in the state of Chiapas.

    Chiapas
    Chiapas is in the extreme south-east of mexico, and borders Guatemala, with which it has more in common than northern and central Mexico. It has the highest percentage of "pure" Indians, largely of Maya origin, in the country. Many of its people do not speak Spanish, the official language of Mexico, but up to 20 local languages.

    Although capitalist relationships prevail in Chiapas, as elsewhere in Mexico, semi-feudal, conditions continue to exist. There are also still vast cattle ranches, controlled by a small clique, with the Indian villages administered by pro-government caciques or village bosses. Only about 65 percent of households have any electricity; and, particularly in the rural areas, there is little main drainage or running water. In a manifesto issued by the Zapatista Liberation Army, they claim" "we possess nothing, absolutely nothing, not land, not work, not education. Today, we say: enough". It is not surprising, therefore, that some at least have rebelled.

    They have claimed up to 2,000 guerrilleros, but this is obviously an exaggeration. Most of their weapons have been stolen from army depots. Originally, they captured about six towns, including San Cristobal de la Casa and Guadalupe Tepayac.

    The army have drafted in up to 15,000 troops. Over 200 people have been killed, much of them from bombing by the Mexican air force.

    Modern State Power
    It is obvious that such a movement will fail against the power of a modern state. Furthermore, it has no positive, forward-looking objective.

    The people know what they are against, but that is about all. Now that, especially with the signing of NAFTA, Mexico is being integrated into the North American capitalist orbit, the workers of Chiapas, and elsewhere in Mexico, have no alternative but to organize with their fellow workers throughout the world, in order to abolish capitalism completely. Violent rebelling can achieve nothing of value, neither in the short nor the long run.
    Peter E. Newell

    Nonprofit Production: Wave of the Future? (2007)

    From the January 2007 issue of the Socialist Standard

    Each year half a million people in India and other tropical countries catch visceral leishmaniasis, also known as black fever. Infected by the bite of a sand fly, they rapidly weaken and lose weight before dying with painfully swollen livers and spleens.

    A safe and effective treatment for black fever was found long ago: the antibiotic paromomycin (cure rate 95 percent). But the firm that developed it -- Pharmacia, a precursor of Pfizer -- shelved it in the 1960s for lack of a "viable market." What that means is that the people who need it cannot afford to pay for it. It is simply not profitable for pharmaceutical companies to fight diseases that afflict the poor. Less than 1 percent of the new drugs developed in 1975-99 were for tropical diseases (Joel Bakan, The Corporation, p. 49).

    Lack of effective demand is not the only thing that makes many useful drugs unprofitable. In general, a capitalist firm can only make big profits by selling drugs on which it has a patent -- that is, an exclusive right to make, use, and sell a new product for a certain period (in Britain and the US it is 20 or even 25 years). Firms are not interested in making drugs that cannot be patented.

    An interesting recent development is the emergence of a new kind of charity that raises money not just to distribute but to produce things that people need but can't afford. One such organization is the Institute for One World Health (IOWH), founded in San Francisco in 2000 by Dr. Victoria Hale. A pharmaceutical chemist, Dr. Hale had felt frustrated watching the industry abandon badly needed and promising but unprofitable drugs. At about the same time, James Fruchterman, an electrical engineer, set up Benetech, another "nonprofit company," in Palo Alto, California, to produce new types of equipment for the disabled.

    The first program of IOWH aims to make paromomycin available to black fever sufferers in the north Indian state of Bihar. The program is being funded (to the tune of $4,700,000) mainly by Bill and Melinda Gates. The Indian government has given its approval and an Indian firm (Gland Pharma of Hyderabad) has agreed to manufacture the drug at cost. Other programmes are planned to tackle Chagas disease, malaria, and diarrhea.

    It is hard not to sympathize with well-meaning projects of this kind. But we also have to consider the problems faced by nonprofit organizations as they operate under the constraints of a profit-driven economy.

    The first problem is how to raise enough money. IOWH is asking the Gates for another $30 million. They can't take out loans or raise funds on the capital market because that would force them to operate on a profit-oriented basis. But unfortunately only a few of the very wealthy are willing to give to charity on a really major scale and the demands made on those few are legion. And doesn't it seem perverse first to accumulate profit and then use it to ameliorate the ills constantly generated by that same profit-making process? Does the left hand know what the right hand is up to?

    It also bears noting that the paromomycin is not going to be provided free of charge. The aim is only to make it as affordable as possible. Dr. Hale hopes to keep the cost down to $10 for a 21-day course of treatment, but the website of the World Health Organization merely says "below $50." We shall see. The point is that in the context of India - and especially in that of Bihar, India's poorest state - these are by no means paltry sums. The average per capita income in Bihar is $120 (5,500 rupees) a year. As the distribution of income is highly unequal, even $10 will be well beyond the means of many sufferers.

    In his enthusiastic report in the Guardian Weekly (October 20-26, 2006, p. 29), Ken Burnett asks why nonprofit pharmaceutical companies should not be followed by nonprofit seed companies, water companies, travel companies, and so on. Why not, indeed? But if this is supposed to be a process that develops under capitalism, we can't avoid asking: "Where is the money coming from?" So far all we have is one small nonprofit pharmaceutical company and one small nonprofit engineering firm.

    Nevertheless, it is encouraging to see people trying to move in this direction, people who crave meaningful work for the benefit of the community. The very existence of nonprofit companies is a protest against and challenge to the system of production for profit. We would only take the argument to the next logical step. Why not extend the principle of production for need to the world economy as a whole?
    S. Shenfield

    Sunday, December 31, 2006

    Editorial: Professional Revolutionaries (1987)

    Editorial from the October 1987 issue of the Socialist Standard

    A recurrent criticism levelled at leftist politicians and parties is that their philosophies - or what pass for them - are rooted in a conviction that they know better what is good for the workers that the workers do themselves; indeed, the electoral success of the Conservatives since 1979 is said to be the fruit of a populist appeal to "set the people free", to let the punters sink or swim in a juice of their own making. Whether or not we accept the good intentions of the left, it is undeniable that the carefully constructed, major projects of modern reformists have everywhere been crushed by the sobering realities of capitalism, to a point where cynicism and caution are as widespread as seaside sewage.

    The damage done by piecemeal improvers to the movement for a truly free society has been more than matched by the programmes of self-styled vanguards, who share with them a belief in strong leadership and its unstated corollary, a contempt for the passive and malleable prole. Utterly discredited as their doctrines are, they still draw support from those impatient with argument and democracy and attracted by theories that purport to offer a short cut to the new society by placing organisation above the battle of ideas. For what, after all, could be more thoroughly twentieth-century than revolution to order, eruption by instalment and instruction, and the transfer of the power of decision to a brain outside the body to be moved? As somebody famous should once have said, the worst torture is to have your head filled with ideas that may never be applied in your lifetime.

    The idea that an intellectual elite could lead a politically ignorant majority into a new society was inimical to the founders of the socialist movement, who always advocated an extreme form of democracy. They wanted the revolution made in the fullness of time by an immense and politically organised class, and their programme would have made violence unnecessary in the capture of political power. When Marx called the communists "the advanced section of the proletariat", he had nothing in mind like the bolshevik doctrine about the proper relation between "the party of the proletariat" and the class. He was wanting, rather, to emphasise the importance of theory, to show that the workers could not, until they understood the society they lived in, create any real alternative. The victory of the idea is the effect of its persuasive power and its relevance to workers' experience; it is won in open competition with other theories; it can never be imposed from above.

    The intellectual vanguard is modelled on the structure of the army, and borrows some of its characteristic and typical features: strict discipline, subordination, hierarchy, unity of command. The most active elements, the special instruments of historic change, are militarised and in command of an obedient majority. The working class is replaced by the party; the party is replaced by party organisation; the party organisation is replaced by the general staff. Ostensibly a triumph of the working class, in reality it confirms their impotence.

    Bolshevism is the doctrine, not of a working class party in highly industrialised society, but of a specifically Russian group of intellectuals, professionally trained and working in perfect harmony; an exclusive and irresponsible elite. Most of the workers who gave them support did so because their promises were attractive, and not out of shared ambition. Having taken power in the name of the proletariat, they quickly discovered that the class whose vanguard they claimed to be would not always follow them; and seeing the class were ignorant of the obvious, did not hesitate to drive where they could not lead.

    Professional revolutionaries of our time have not, then been the midwives of a new world but incompetent and bloody surgeons who have not been able to foretell the results of their operations. Their apologists - including those who ended up with scalpels in their heads - place after the revolution what should come before it. This simple inversion, which makes nonsense of historical materialism, is the essence of an ideology as relevant to the socialist task as ballroom dancing.

    All the enemies of freedom are repulsive, but few more so than those who destroy it for the sake of an objective they have themselves distorted and debased. As the big dipper of capitalism hurtles on in the dark, there is still no shortage of self-appointed champions of the people offering to lead us all to securer ground, but with no guarantee that it won't be below the surface. Political education, on a wide scale and of sufficient depth and continuity, may be utopian to the left; it is the only course for socialists.

    Shelley: a socialist poet


    From the World Socialist Movement website

    I became acquainted with Shelley in 1944. At the time I was eighteen years of age and a Republican remand prisoner in Belfast jail. I liked poetry and, searching for something readable in the prison library - a cupboard which they opened twice weekly to the accompaniment of bawling screws, who could see no justification for delay in lifting one of the books - I found a treasure: The Complete Works of Percy Bysshe Shelley. Eventually I got my own copy of Shelley and, over many, many years, I have prized it as the first real socialist literature I ever read. It is, I think, fitting that, on the bi-centenary of his birth, an appreciation of his life's work should appear in a socialist journal.

    Poets, with their abstract notions of freedom and justice, can momentarily help a prisoner transcend the ignominy and degradation that the prison system imposes. But Shelley's ideas of freedom and justice were no way abstract; his was no mere solace for the soul. Yes, there were the odes To The West Wind, To A Skylark, To A Cloud; beautiful word music in the classical tradition of English metrical composition.

    But, more importantly, there was the wisdom that stripped to its essential ugliness a system of society that dissipates, wastes and destroys wealth in order to make its rich richer while mentally and physically impoverishing the producers of that wealth. There was the vision of a new world, a world of dignity and equality where cash would not be the measure of human need. And there was the indignation, the anguish, even the pain - sometimes written in a spontaneity of anger that defied the discipline of well-marshalled prosody. Here was a text book of revolutionary thought that showed the futility of the cause for which I was imprisoned and extended my vision beyond the empty rhetoric of nationalism.

    During his lifetime Shelley had come to Ireland to protest at the misery of the peasantry. Some Irish nationalists have equated this with sympathy for Irish nationalism but Shelley, whose constituency was the toiling masses everywhere, did not subscribe to the myth that the English working class were the beneficiaries of English imperialism. Thus, after hearing of the Peterloo Massacre at Manchester in 1819, Shelley wrote the Masque of Anarchy in which he describes the contemporary condition of the working class in England:

    Asses, swine have litter spread

    And with fitting food are fed;

    All things have a home but one -
    Thou, Oh Englishman, hast none!

    This is Slavery—savage men, Or wild beasts within a den Would endure not as ye do—But such ills they never knew.


    This poem, consisting of some ninety one short stanzas of varying lengths was written at Leghorn in Italy. According to his wife, Mary, when Shelley heard how the military murderers had waded into a peaceful reform protest "it… aroused in him violent emotions of indignation and compassion". According to some purists, that anger adversely affected the quality of the poem.

    Whatever its poetic qualities, Shelley's Masque of Anarchy must rank, from a working class standpoint, as the most chdactic of English poetical works. His verse castigates every rotten facet of capitalism: its law, its judiciary, its priests, its parasite class and the foulness of its oppression. His words bear the reader along the path of anger and frustration seeking, it would seem, retribution, revenge. But Shelley, in an age when violence was the tool of revolution, was too deeply perceptive of the need for democratic action if the revolution which he craved was to realise his vision. True, he makes us angry, makes us loathe this evil that murders people for profit but, on the crest of our anger, he stops us:

    Then it is to feel revenge

    Fiercely thirsting to exchange

    Blood for blood -and wrong for wrong -

    Do not thus when ye are strong.

    What then? What should we do when "we are strong"? Shelley, the democratic socialist says we should use the unassailable power of our numbers. Poetically, he says we should think . . . decide:

    Stand ye calm and resolute,

    Like a forest, close and mute,

    With folded arms and looks which are

    Weapons of unvanquished war.

    (… )

    Rise like Lions after slumber

    In unvanquishable number

    Shake your chains to earth like dew

    Which in sleep had fallen on you

    Ye are many - they are few.

    In 1888 Marx's daughter, Eleanor, and her partner, Edward Aveling published an appreciation of Shelley under the title Shelley's Socialism. The justification for their assumption is abundant throughout Shelley's poems and prose writings. In one of his notes to Queen Mab, Shelley quotes Godwin with approval: "there is no real wealth but the labour of man".

    Prometheus Unbound, The Masque of Anarchy, Queen Mab, The Ode to Liberty, these, with his prose writings, his prologues, his sonnets and his songs chronicle the misery of the peasant and the wage slave but always, there is the optimism of the true revolutionary; the clarity of vision, as here in Prometheus Unbound, of a future where:

    The Loathsome mask has fallen the man remains

    Sceptreless, free, uncircumscribed, but man

    Equal, unclassed, tribless and nationless,

    Exempt from awe, worship, degree, the king,

    Over himself, just, gentle, wise.

    Queen Mab is a vision of the past, present and future of mankind. In it Shelley attacks kings, war, commerce and, in particular, priests and religion. In fact the criticism of christianity, in the poem as well as in prose notes attached to it was so hard-hitting that when it was republished in the 1820s the publisher was sent to prison for blasphemy. Queen Mab became the work that publishers used in defiance of the restrictive press laws of the time. Each time they were convicted of blasphemy. But as a result Queen Mab, and thus Godwin's social ideas, came to be widely read in Chartist and radical circless.

    In this passage from Queen Mab he criticises the way money contaminates all human relationships:

    All things are sold: the very light of Heaven Is venal;

    Earth's unsparing gifts of love,

    The smallest and most despicable things

    That lurk in the abysses of the deep,

    All objects of our life, even life itself,

    And the poor pittance which the laws allow

    Of liberty, the fellowship of man,

    Those duties which his heart of human love

    Should urge him to perform instinctively,

    Are bought and sold as in a public mart

    Of undisguising selfishness, that sets

    On each its price, the stamp-mark of her reign.

    He saw money, "paper coin - that forgery of the title deeds", as capitalism's instrument of theft; he saw slavery as a natural result of property society; he saw the poverty and alienation of the masses and, especially, did he decry the intellectual poverty and deception which capitalism inflicted on its wage slaves.

    In part V of Queen Mab Shelley attacks commerce which he sees as a product of selfishness in the sense of people wanting to sell their surplus for money rather than give it to others to satisfy their needs:

    Commerce! Beneath whose poison-breathing shade

    No solitary virtue dares to spring,

    But Poverty and Wealth with equal handScatter their withering curses, and unfold

    The doors of premature and violent death,

    To pining famine and full-fed disease,

    To all that shares the lot of human life,

    Which poisoned, body and soul, scarce dragsthe chain,

    That lengthens as it goes and clanks behind.

    It is quite clear that Shelley was expressing Godwin's idea that, in a just society, producers would give away their surplus produce free rather than sell it for money. Hence his opening description of commerce as "the venal interchange of all that human art or nature yield; which wealth should purchase not, but want demand, and natural kindness hasten to supply". When he later describes what will happen when people are motivated by the "consciousness of good" he naturally states that they will have no need of "mediative signs of selfishness" - of money - and that "every transfer of the earth's natural gifts shall be a commerce of good words and works".

    This commerce of sincerest virtue needs

    No mediative signs of selfishness,

    No jealous intercourse of wretched gain,

    No balancings of prudence, cold and long;

    In just and equal measure all is weighed, One scale contains the sum of human weal, And one, the good man's heart.


    Part V of Queen Mab ends as follows:

    But hoary-headed Selfishness has felt

    Its death-blow, and is tottering to the grave:

    A brighter morn awaits the human day, When every transfer of earth's natural gifts Shall be a commerce of good words and works;

    When poverty and wealth, the thirst of fame,

    The fear of infamy, disease and woe,

    War with its million horrors, and fierce hell Shall live but in the memory of Time,

    Who, like a penitent libertine, shall start,

    Look back, and shudder at his younger years.

    In one sense this argument as to whether or not Godwin and Shelley were socialists is anachronistic since the modern idea of socialism, as the solution to the problems of a majority wage-working class within a capitalist industrial society, had not yet come into being. This is partly why in this article we have used the word "communist" rather than "socialist" to describe the moneyless equal society advocated by critics of the essentially agrarian class society that existed before industrial capitalism developed. It was of course the low level of development of the means of production that accounts for the frugal, even Spartan, character which the pre-industrial communists were obliged to give to the egalitarian society they advocated, but it still remains true that people like (in England) More, Winstanley and Godwin and Shelley and (in France) Morelly, Babeuf and Buonarotti were forerunners of the socialist industrial society of abundance that we modern socialists now advocate.
    Richard Montague

    Chavism (2007)

    Book Review from the January 2007 issue of the Socialist Standard

    Democracy and Revolution: Latin America and Socialism Today. By D. L. Raby. (Pluto Press.)

    Though relatively unknown in Europe, Latin America has its own tradition of Marxism or, rather, of "Marxism-Leninism". Descended from the bourgeois-democratic ideology that motivated those who "liberated" Latin America from Spanish rule in the first part of the 19th century, it has been more nationalist and anti-imperialist than pro wage-working class even though committed to trying to improve the lot of "the people".

    As this book inadvertently shows, Cuba illustrates this well. The Cuban revolutionaries who overthrew the Batista dictatorship in January 1959 did so in the name of the anti-Spanish Cuban revolutionary tradition and adopted the cry of "Patria o Muerte" (Fatherland or Death). It was only later that the revolution was declared to have been "socialist".

    In Venezuela too, Chavez, who was first elected president in 1998, did not declare himself a "socialist" till some years later (in December 2004). But, unlike Castro, Chavez does not claim to be either a Marxist or a Leninist, but a new type of socialist - "a socialist of the 21st century". For leftwingers, after deceived hopes placed in Yugoslavia, then Algeria, then Vietnam, then Nicaragua, Venezuela has become the new Mecca. Raby's book is, in fact, an attempt to defend "Chavism" as a socialist strategy.


    Her argument is that the strategy of traditional "Marxism-Leninism", with the indispensable role it attributes to an all-knowing, centralised vanguard directing everything, as exemplified not only by the old pro-Moscow Communist Parties but also by Trotskyists and Maoists, has never worked and never will. Using Cuba and Venezuela as examples, she says that, while a vanguard is still necessary, the main thrust must come from the popular masses having a special relationship with a charismatic leader such as Castro and Chavez have proved to be. According to her, this relationship is not a simple one of leader and followers, but one where the leader somehow interprets and expresses the inchoate wishes of the people (which seems rather mystical).

    In what most people wouldn't immediately regard as a flattering comparison, Raby likens Castro and Chavez to other charismatic Latin American leaders such as Peron in Argentina. There may be something in this since Peron, too, praised the workers and enjoyed considerable working class support.

    Raby also examines three unsuccessful revolutions - Chile, Portugal and Nicaragua. Of particular interest to us is Chile since what happened to Allende in September 1973, when he was overthrow and died in a coup led by General Pinochet, is always being used as an argument against the possibility of establishing socialism through peaceful, democratic means. Raby confirms the analysis we made at the time: that (quite apart from having state capitalism rather than socialism as its aim) a key factor was that Allende had become president in 1970 with only 36 percent of the popular vote and that he never enjoyed majority popular support:

    "with a president voted in by only 36 per cent of the electorate and a coalition which only briefly achieved a little more than 50 per cent (in April 1971), there was no real mandate for revolutionary change."

    So it wasn't an example of a successful coup in the face of a determined majority such as would exist before socialism could be established.

    Venezuela, being a leading oil-producing country, enjoys considerable income as rent, which the Chavez government has redirected from the luxury consumption of the rich towards improving education and health provision for the mass of the people. We don't want to belittle this but it's not socialism. Raby agrees but says that, as "an eventual worldwide defeat of capitalism" is "an ideal which may or may not be realisable some time in the future", this is the best socialists can hope for at the present time. Socialists should therefore, she says, lower their sights and not go for socialism but only for what one of the writers she quotes, Antonio Carmona Baez, calls a "state-led economy run by socialists". We don't agree. Surely, one of the lessons of the 20th century has been that national state capitalism is not a step to socialism and is in fact unsustainable in the long run.
    Adam Buick