economic

Is Marxism "Leftist"?

By Kate Woolford


Republished from Challenge Magazine.


A Marxist approach to leftist moralism

Many self-styled communists view Marxism-Leninism more as a set of moral and ethical values than a science firmly grounded in material reality. To them, Marxism is the ultimate embodiment of liberal and ‘progressive’ values, while those with more conservative values are nothing more than ‘chauvinists’ who should be excluded from the cause. 

However, this moral interpretation of Marxism is inconsistent with Marx’s own understanding, which asserts that the driving force behind human society is contradictions between classes, rather than a moral dichotomy of ‘good’ versus ‘evil’. In this respect, Marx did not abstract capitalism outside of its historical context but instead showed that it could be both historically progressive and regressive depending on its stage of development. Within its early stages, the progressive nature of capitalism is tied up with its need to constantly revolutionise the instruments of production, the relations of production, and therefore also the whole relations of society. This, in turn, replaces the scattered, less-effective feudal mode of production with capitalist production and allows production to be carried out at an unprecedented scale. Nevertheless, as capitalism matures, and the proletariat grows into a fully developed class concentrated together in huge numbers, a contradiction arises between the social process of production and the private ownership of production. 

The contradictions inherent within capitalism are demonstrated through recurrent crises, during which huge amounts of goods and machinery are needlessly destroyed and wasted. Capitalism’s incompatibility with the future development of society can only result in a revolution led by the class capable of bringing about a higher mode of production, that is, the modern working class. Therefore, the inevitability of the socialist revolution is not tied up in capitalism’s moral shortcomings, but on the objective laws governing the development of human society. 

In a similar vein, Engels criticised, “every attempt to impose on us any moral dogma whatsoever as an eternal, ultimate, and forever immutable moral law on the pretext that the moral world too has its permanent principles which transcend history and the differences between nations”, and disapproved of a theory of morals “designed to suit all periods, all peoples, and all conditions” arguing that “precisely for that reason it is never and nowhere applicable.” Both Marx and Engels upheld that the communist movement unified workers based on the material conditions of their life; their nation, their workplace, and their commonly experienced exploitation as proletarians, not on the basis of a shared set of moral values.

Therefore, those within the communist movement who uphold their personal morals as eternally and indisputably correct, or, even worse, seek to elevate their personal morals to the position of communist morals in general, clearly do not view morals in a materialist way. Nor do they approach it in an anti-imperialist way, with notions of moral superiority giving way to imperialist interventions on the countries alleged to be morally inferior, often on the basis of their cultural and religious values.


What is Marxism?

Marx understood that changes in society, like changes in the natural world, are far from accidental and follow certain laws. This understanding made it possible to work out a scientific theory of human society; to study why it is the way it is, why it changes, and what changes are to come. The scientific method of Marxism, dialectical materialism, regards the world as both a living organism in a state of constant development and composed of matter existing beyond human perception. 

Like all sciences, Marxism is based on the material world around us. Therefore, it is not a finished theory or a dogma, but must be continuously applied to new conditions, new problems, and new discoveries to draw from them the correct conclusions. The value of Marxism lies in its ability to form conclusions capable of changing the world, just as all scientific discoveries can be used to change the world. 


Defining Left and Right 

While Marxism historically belongs to the definite left tradition, that is, it finds much of its origins in the Jacobin radical left of the French Revolution, today’s leftism is understood more as an indefinite set of moral values than a clearly defined ideology. 

Delineating what values belong to the left and what values belong to the right is a challenging task given that these terms mean different things within different contexts. One study found that conservatism can be associated with a left-wing or right-wing orientation depending on the cultural, political, and economic situation of the society in question. Another study found that, within the former Soviet republics, “traditionalism, rule-following, and needs for security are more strongly associated with the old (left-wing) ways of doing things than with right-wing preferences. It is also possible that openness would be associated with a right-wing political orientation in Eastern Europe, rather than with a left-wing orientation, as in the West.” In other words, in the former Soviet republics, the Soviet Union is often associated with values the West considers to be right-wing. 

In this respect, understandings of left and right are subjective and vary widely depending on time and place. Therefore, it is important to clarify that this article will be considering values associated with modern “leftism” in the West today. The cultural values considered in this article are liberation through love, openness, and equal rights, and the policy matters considered are equality, government intervention, and high taxes. 


Love and inclusivity

Notions of love as an all-liberating force find popularity among leftists, an outlook prevalent among 18th and 19th-century philosophers and revitalised during the counterculture movement of the 1960s and 70s. Engels, however, criticised the “religion of love” and, in the End of Classical German Philosophy, denounced Feuerbach’s idea that mankind could be liberated through love alone instead of the economic transformation of production. To Engels, the idea that love could function as a reconciling force for all differences “regardless of distinctions of sex or estate” had no plausibility. 

Despite what leftists proclaim, the act of loving one another, including beyond traditional boundaries, does not inherently constitute a revolutionary act. Engels reinforced this idea in On the History of Early Christianity, which disapproved of the pacification of Early Christianity and its transformation from a revolutionary, working-class religion of “undiluted revenge” into a petit-bourgeois religion of “love your enemies, bless them that curse you.”

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The same principles Engels applied to the “religion of love” can be applied to the leftist values of openness and inclusivity. The proponents of these ideas suggest that the working class should be accepting and accommodating to the ideas, values, traditions, and mindsets of everyone, including the class exploiting them. In the Manifesto of the Communist Party, Marx and Engels deemed this position as belonging to the “socialistic bourgeoisie,” and criticised the belief “that the proletariat should remain within the bounds of existing society but should cast away all its hateful ideas concerning the bourgeoisie.” Therefore, Marxism has little to do with absolute ‘inclusivity’ and notions of ‘liberation through love’, making it distinct from the leftist counterculture movement borne out of the 1960s and 70s. 


Equal rights

One of the most misunderstood aspects of Marxism is its stance on the concept of equal rights. Despite the prevalent use of ‘equal rights’ as a leftist buzzword, Marx’s work, the End of Classical German Philosophy, outlines that, within bourgeois society, equal rights are, in fact, formally recognised. However, social satisfaction does not depend upon equal rights but material rights – and “capitalist production takes care to ensure that the great majority of those with equal rights shall get only what is essential for bare existence.” In this respect, if the interests of classes in conflict are irreconcilable, the material rights of one class impede on the material rights of another. Therefore, better conditions are not brought about through platitudes of equal rights, but through material rights and the abolition of classes. In Anti-Dühring, Engels traced the origins of the demand for “equal rights” to the bourgeoisie’s struggle against feudalism. During this period, the bourgeoisie called for the abolition of “class privileges” and the proletariat demanded the abolition of classes themselves. 

Furthermore, while leftists uphold equal rights on the basis that all people, by virtue of being human, should be treated the same, Marxism recognises that, within class society, individuals do not relate to each other solely as humans but also as members of a class. In this respect, during the epoch of capitalism, the bourgeoisie uses the state apparatus to suppress the working class. Likewise, during the epoch of socialism, the new state apparatus is used by the working class to suppress the bourgeoisie. 

Moreover, socialism and communism does not seek to enforce complete equality in the everyday life of members of society regardless of how driven and hardworking one might be compared to another. As per Marx and Engels in the Manifesto of the Communist Party, “Communism deprives no man of the power to appropriate the products of society; all that it does is to deprive him of the power to subjugate the labour of others by means of such appropriations.” Thus, Communism allows for individuals to enrich themselves over others, so long as this enrichment does not come at anyone else’s expense. Therefore, it is a widespread misconception that hard works reaps no reward under socialism and communism – in fact, hard work can only truly be rewarded under socialism and communism.


The state and taxes

Another policy often associated with leftists is ‘big government’, that is, that the government should play a more active role within society. However, as Marx and Engels explained in the Communist Manifesto, as the proletariat raises itself to the position of ruling class, it sweeps away the conditions of class antagonisms and classes generally, abolishing its own supremacy as a class. At this stage, the state, which functions as an organ of class domination, becomes obsolete as classes do not exist. Consequently, communism does not necessarily involve government intervention into the personal lives of members of society. While the early stage of socialism requires a strong state to centralise production and defend the gains of the revolution, as socialism develops, the state is increasingly stripped back.

In practice, efforts to shift power away from the state into the hands of the people is reflected within Mao Zedong’s little red book, which was published and distributed with the aim of strengthening the peoples understand of Marxism, thus empowering them as the real movement in charge of building a communist society – bottom up, not top down.  

Leftists also often advocate for high taxation as the grand solution to all domestic problem without realising, however, that the scale and direction of taxation is determined first and foremost by the class characteristic of the state. 

Under capitalism, the state serves the interests of the bourgeoisie, and is parasitic in that it sustains a superfluous class of individuals who do not produce material value for society such as the bourgeois police; the military; the whole judicial apparatus; members of parliament, who get paid disproportionately high salaries; etc. Additionally, the state revenue necessary for war and overseas military bases is generated through taxing the working class, while monopolies pile up war profits. Only a fraction of revenue is allocated to production, and to things like the maintenance of roads, railways, buildings, hospitals, schools, etc. 

On the other hand, under socialism, the state serves the interests of the working class and functions mainly to administer economic life. The socialist state is concerned with the production and distribution of goods, the advancement of the wellbeing of working people, and the maintenance of a limited military apparatus to protect the gains of the revolution. 

In the Civil War in France, Marx described the Paris Commune as having made the “catchword of bourgeois revolutions – cheap government – a reality by destroying the two greatest sources of expenditure: the standing army and state functionalism.” The ‘cheap government’ of socialism is financed partly through state owned industry and trade, money which would overwise be retained as private profit under capitalism, and partly through taxation. However, as the state becomes stripped back to the minimum of its functions, taxation is still considerably low as there is no superfluous, parasitic class living off the state as there is under capitalism. 

Furthermore, in the Critique of the Gotha programme, Marx stated that “taxes are the economic basis of the government machinery and of nothing else.” Therefore, as socialist society progresses towards communism and the state, along with its government machinery, gradually withers away, high taxes cease to have an economic basis. For example, no great war machinery is necessary under communism as the international community has a shared future with common interests. In this respect, while a heavy income tax serves as a progressive demand within capitalist society, socialism and communism eventually leads to a society free from the burden of high taxes on working people. 

As the writings of Marx and Engels do not align with, or go beyond, many leftist cultural and economic values, the idea that Marxism is a leftist ideology in the popular understanding of the term should, at the very least, be questioned. Marxism should instead be upheld by communists as a scientific method of analysis existing outside of the political spectrum.


Kate Woolford is the editor of Challenge.

No Letup In Economic And Social Decline: How Capitalism is Pushing the U.S. and World to the Brink of Disaster

By Shawgi Tell

Economic and social conditions have been worsening for decades at home and abroad, especially in the context of the neoliberal antisocial offensive which was launched more than 40 years ago by the international financial oligarchy. But they have been getting even worse in recent years and over the past two years in particular.

Inequality, poverty, and debt, along with homelessness, unemployment, and under-employment are on the rise in an increasingly interconnected globe. It is no surprise that suicide, depression, illness, and anxiety persist at very high levels. There is an unbreakable connection between economic, social, and personal conditions. As economic and social conditions decline, so too do people’s mental, emotional, and physical well-being.

Below is a current snapshot of deteriorating economic and social conditions in the U.S. and elsewhere. The U.S. population currently stands at 332,403,650. The world population is 7,868,872,451 (December 30, 2021. https://www.census.gov/newsroom/press-releases/2021/news-years-day-2022.html). 

CONDITIONS IN THE U.S.

American student loan debt increased at a rate of 20 percent in the last ten years, leaving college graduates with hefty payments. The student loan debt in the US is a growing crisis with college graduates owing a collective $1.75 trillion in student loans. In 2021, there are 44.7 million Americans who have student loan debt averaging about $30,000 at the time of receiving their undergraduate degree (December 22, 2021. https://www.the-sun.com/money/4271983/how-many-americans-have-student-loan-debt/). 

The number of Americans living without homes, in shelters, or on the streets continues to rise at an alarming rate (December 28, 2021. https://www.pbs.org/newshour/show/whats-behind-rising-homelessness-in-america). 

The $5 trillion in wealth now held by 745 billionaires is two-thirds more than the $3 trillion in wealth held by the bottom 50 percent of U.S. households estimated by the Federal Reserve Board (October 18, 2021. https://inequality.org/great-divide/billionaires-2-trillion-richer-than-before-pandemic/). 

The official poverty rate in 2020 was 11.4 percent, up 1.0 percentage point from 10.5 percent in 2019. This is the first increase in poverty after five consecutive annual declines. In 2020, there were 37.2 million people in poverty, approximately 3.3 million more than in 2019 (September 14, 2021. https://www.census.gov/library/publications/2021/demo/p60-273.html). 

After the longest period in history without an increase, the federal minimum wage today is worth 21% less than 12 years ago—and 34% less than in 1968 (December 21, 2021. https://www.epi.org/blog/epis-top-charts-and-tables-of-2021/). 

CEOs were paid 351 times as much as a typical worker in 2020 (August 10, 2021. https://www.epi.org/publication/ceo-pay-in-2020/). 

[F]or seven months of 2021, workers have been quitting at near-record rates (December 8, 2021. https://www.businessinsider.com/how-many-why-workers-quit-jobs-this-year-great-resignation-2021-12). 

More than 4.5 million people voluntarily left their jobs in November [2021], the Labor Department said Tuesday. That was up from 4.2 million in October and was the most in the two decades that the government has been keeping track (January 4, 2022. https://www.nytimes.com/2022/01/04/business/economy/job-openings-coronavirus.html). 

According to a report by UCLA’s Latino Policy & Politics Initiative, Latinas are leaving the workforce at higher rates than any other demographic. Between March 2020 and March 2021, the number of Latinas in the workforce dropped by 2.74%, meaning there are 336,000 fewer Latinas in the labor force (December 28, 2021. https://www.refinery29.com/en-us/2021/12/10759406/latinas-leave-jobs). 

The adult women’s labor force participation rate remains blunted at 57.5%—well below pre-pandemic levels. In fact, it’s worse than pre-pandemic levels (January 5, 2022. https://www.fastcompany.com/90710355/where-are-all-the-women-workers). 

U.S. job openings jumped in October to the second-highest on record, underscoring the ongoing challenge for employers to find qualified workers for an unprecedented number of vacancies. The number of available positions rose to 11 million from an upwardly revised 10.6 million in September (December 8, 2021. https://www.bloomberg.com/news/articles/2021-12-08/u-s-job-openings-rose-in-october-quits-rate-dropped#:~:text=Meanwhile%2C%20the%20quits%20rate%20fell,to%2010.5%20million%20job%20openings).  

As of November [2021], 15.6 million workers in the US are still being affected by the pandemic’s economic downturn; 3.9 million US workers are out of the labor force due to Covid-19, 6.9 million workers are still unemployed, 2 million workers are still experiencing cuts to pay or work schedules due to Covid-19, and another 3 million workers are misclassified as employed or out of the labor force, according to the Economic Policy Institute (December 17, 2021. https://www.theguardian.com/us-news/2021/dec/17/americans-coronavirus-unemployment-holidays). 

About 2.2 million Americans remain long-term unemployed — about 1.1 million more than in February 2020, according to the U.S. Bureau of Labor Statistics (December 3, 2021. https://www.cnbc.com/2021/12/03/long-term-unemployment-fell-again-but-at-slowest-pace-since-april.html). 

[I]n 2021, the Centers for Disease Control and Prevention estimated in November that more than 100,000 people died of drug overdoses in the first year of the COVID-19 pandemic, May 2020 to April 2021, with about three-quarters of those deaths involving opioids — a national record (December 27, 2021. https://www.pbs.org/wgbh/frontline/article/opioid-crisis-2021-insys-kapoor-sackler-purdue-record-deaths/). 

U.S. death rate soared 17 percent in 2020, final CDC mortality report concludes (December 22, 2021. https://www.nbcnews.com/health/health-news/us-death-rate-soared-17-2020-final-cdc-mortality-report-concludes-rcna9527). 

Life Insurance CEO Says Deaths Up 40% Among Those Aged 18-64 (January 3, 2022. https://www.zerohedge.com/medical/life-insurance-ceo-says-deaths-40-among-those-aged-18-64-and-not-because-covid). 

Suicide rates increased 33% between 1999 and 2019, with a small decline in 2019. Suicide is the 10th leading cause of death in the United States. It was responsible for more than 47,500 deaths in 2019, which is about one death every 11 minutes. The number of people who think about or attempt suicide is even higher. In 2019, 12 million American adults seriously thought about suicide, 3.5 million planned a suicide attempt, and 1.4 million attempted suicide. Suicide affects all ages. It is the second leading cause of death for people ages 10-34, the fourth leading cause among people ages 35-44, and the fifth leading cause among people ages 45-54 (https://www.cdc.gov/suicide/facts/index.html#). 

Alarming Anxiety & Depression Toll making All Time Record Highs Impacting 30% of all Americans (December 29, 2021. https://www.einnews.com/pr_news/559441306/alarming-anxiety-depression-toll-making-all-time-record-highs-impacting-30-of-all-americans). 

[Depression] has been rising for well more than a decade in teens and hiked further during the pandemic. And after a pandemic-induced spike, depression symptoms now plague more than a quarter of U.S. adults. More than 13% of Americans were taking antidepressants before Covid hit and during the pandemic, prescriptions shot up 6% (June 17, 2021. https://elemental.medium.com/the-real-problem-with-antidepressants-898e83133bbc). 

At least 12 major U.S. cities have broken annual homicide records in 2021 (December 8, 2021. https://abcnews.go.com/US/12-major-us-cities-top-annual-homicide-records/story?id=81466453). 

Private health insurance coverage declined for working-age adults ages 19 to 64 from early 2019 to early 2021, when the nation experienced the COVID-19 pandemic (September 14, 2021. https://www.census.gov/library/stories/2021/09/private-health-coverage-of-working-age-adults-drops-from-early-2019-to-early-2021.html). 

In 2020, 4.3 million children under the age of 19 — 5.6% of all children — were without health coverage for the entire calendar year (September 14, 2021. https://www.census.gov/library/stories/2021/09/uninsured-rates-for-children-in-poverty-increased-2018-2020.html). 

INTERNATIONAL CONDITIONS

Even as tens of millions of people were being pushed into destitution, the ultra-rich became wealthier. Last year, billionaires enjoyed the highest boost to their share of wealth on record, according to the World Inequality Lab (December 26, 2021. https://www.cnn.com/2021/12/26/business/global-poverty-covid-pandemic-intl-hnk/index.html).

Global wealth inequality is even more pronounced than income inequality. The poorest half of the world’s population only possess 2 percent of the total wealth. In contrast, the wealthiest 10 percent own 76 percent of all wealth, with $771,300 (€550,900) on average (December 9, 2021. https://www.wsws.org/en/articles/2021/12/09/sfpa-d09.html). 

The pandemic has pushed approximately 100 million people into extreme poverty, boosting the global total to 711 million in 2021 (December 9, 2021. https://www.wsws.org/en/articles/2021/12/09/sfpa-d09.html). 

More than half a billion people pushed or pushed further into extreme poverty due to health care costs (December 12, 2021. https://www.who.int/news/item/12-12-2021-more-than-half-a-billion-people-pushed-or-pushed-further-into-extreme-poverty-due-to-health-care-costs). 

World leaders urged to halt escalating hunger crisis as 17% more people expected to need life-saving aid in 2022 (December 2, 2021. https://reliefweb.int/report/world/world-leaders-urged-halt-escalating-hunger-crisis-17-more-people-expected-need-life). 

33% of Arab world doesn't have enough food: UN report. The Arab world witnessed a 91.1 per cent increase in hunger since 2000, affecting 141 million people (December 17, 2021. https://www.middleeastmonitor.com/20211217-33-of-arab-world-doesnt-have-enough-food-un-report/). 

The 60% of low-income countries the IMF says are now near or in debt distress compares with less than 30% as recently as 2015 (December 15, 2021. https://www.weforum.org/agenda/2021/12/how-to-spare-low-income-countries-from-economic-collapse/). 

According to a recent Gallup poll, 63 percent of Lebanese would like to permanently leave the country in the face of worsening living conditions (December 15, 2021. https://www.aljazeera.com/features/2021/12/15/lebanese-look-to-cyprus-as-local-economy-crumbles). 

25% of households in Israel live in poverty (December 21, 2021. https://www.middleeastmonitor.com/20211221-25-of-households-in-israel-live-in-poverty/). 

Turkey's annual inflation rate is expected to have hit 30.6% in December, according to a Reuters poll, breaching the 30% level for the first time since 2003 as prices rose due to record lira volatility (December 28, 2021. https://www.reuters.com/markets/asia/turkish-inflation-seen-above-30-december-amid-lira-weakness-2021-12-28/). 

Kazakhstan government resigns amid protests over rising fuel prices (January 5, 2022. https://www.ft.com/). 

Pakistanis squeezed by inflation face more pain from tax hikes (December 13, 2021. https://www.reuters.com/markets/rates-bonds/pakistanis-squeezed-by-inflation-face-more-pain-tax-hikes-2021-12-13/). 

November saw inflation rise by 14.23 percent, building on a pattern of double-digit increases that have hit India for several months now. Fuel and energy prices rose nearly 40 percent last month. Urban unemployment – most of the better-paying jobs are in cities – has been moving up since September and is now above 9 percent (December 28, 2021. https://www.aljazeera.com/news/2021/12/28/india-economy). 

Sri Lanka is facing a deepening financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices rocket and its coffers run dry (January 2, 2022. https://www.theguardian.com/world/2022/jan/02/covid-crisis-sri-lanka-bankruptcy-poverty-pandemic-food-prices). 

Index shows South Africa’s economy is shrinking (December 14, 2021. https://businesstech.co.za/news/finance/546978/index-shows-south-africas-economy-is-shrinking/). 

COVID-19 spike worsens Africa's severe poverty, hunger woes (December 24, 2021. https://www.npr.org/2021/12/24/1067772373/covid-19-spike-worsens-africas-severe-poverty-hunger-woes). 

Latin America’s biggest economy [Brazil] is seen remaining stuck in recession as it confronts double-digit price increases (December 11, 2021. https://www.wsj.com/articles/brazil-grapples-with-old-nemesis-inflation-amid-pandemic-11639234804). 

Japan admits overstating economic data for nearly a decade (December 15, 2021. https://www.aljazeera.com/economy/2021/12/15/japan-admits-overstating-economic-data-for-nearly-a-decade). 

New Zealanders are feeling pessimistic about the economy, worried about rising interest rates and the prospect of new Covid-19 variants, Westpac’s latest consumer confidence data shows (December 20, 2021. https://www.stuff.co.nz/business/300482163/pessimism-reigns-as-nz-ponders-2022-economy-without-elimination-strategy). 

Canadians’ optimism towards their financial health and the economy at large reached its lowest point in more than a year during the final work week of 2021, according to Bloomberg and Nanos Research (January 5, 2022. https://www.mpamag.com/ca/mortgage-industry/market-updates/canadian-financial-and-economic-sentiments-reach-new-low/321010). 

Polish Inflation to Rise Sharply in 2022, Central Bank Boss Says (December 30, 2021. https://www.bloomberg.com/news/articles/2021-12-30/polish-inflation-to-rise-sharply-in-2022-central-bank-boss-says?srnd=economics-vp). 

Inflation is at its highest level in the UK since 2011 (December 21, 2021. https://www.wsws.org/en/articles/2021/12/22/cost-d22.html). 

The Resolution Foundation predicts higher energy bills, stagnant wages and tax rises could leave [U.K.] households with a £1,200 a year hit to their incomes (December 30, 2021. https://www.businessghana.com/site/news/Business/253660/UK-cost-of-living-squeeze-in-2022,-says-think-tank). 

Air travel in and out of UK slumps by 71% in 2021 amid pandemic. Report from aviation analytics firm Cirium shows domestic flights were down by almost 60% (December 29, 2021. https://www.theguardian.com/business/2021/dec/29/air-travel-in-and-out-of-uk-slumps-in-2021-amid-pandemic). 

Annual inflation in Spain rises 6.7% in December, the highest level in nearly three decades (December 30, 2021. https://english.elpais.com/economy-and-business/2021-12-30/annual-inflation-in-spain-rises-67-in-december-the-highest-level-in-nearly-three-decades.html). 

Germany's Bundesbank lowers 2022 economic growth forecast (December 17, 2021. https://www.dw.com/en/germanys-bundesbank-lowers-2022-economic-growth-forecast/a-60156000). 

OECD predicts Latvia to have the slowest economic growth among Baltic States (December 2, 2021. https://bnn-news.com/oecd-predicts-latvia-to-have-the-slowest-economic-growth-among-baltic-states-230531). 

While deteriorating economic, social, and personal conditions define many other countries and regions, the main question is why do such horrible problems persist in the 21st century? The scientific and technical revolution of the last 250 years has objectively enabled and empowered humankind to solve major problems and to meet the basic needs of all humans while improving the natural environment. There are a million creative ways to affirm the rights of all safely, sustainably, quickly, and on a constantly-improving basis. There is no reason for persistent and widespread instability, chaos, and insecurity. Living and working standards should be steadily rising everywhere in the 21st century, not continually declining for millions. Objectively, there is no shortage or scarcity of socially-produced wealth to meet the needs of all.

Under existing political-economic arrangements, however, systemic instabilities and crises will persist for the foreseeable future, ensuring continued anxiety and hardship for millions. The rich and their political representatives have repeatedly demonstrated that they are unable and unwilling to solve serious problems. They are out of touch and self-serving. As a result, the world is full of more chaos, anarchy, insecurity, and violence of all forms. The rich are concerned only with their narrow private interests no matter how damaging this is to the natural and social environment. They do not recognize the need for a self-reliant, diverse, and balanced economy controlled and directed by working people. They reject the human factor and social consciousness in all affairs.

It is not possible to overcome unresolved economic and social problems so long as the economy remains dominated by a handful of billionaires. It is impossible to invest socially-produced wealth in social programs and services so long as the workers who produce that wealth have no control over it. Every year, more and more of the wealth produced by workers fills the pockets of fewer and fewer billionaires, thereby exacerbating many problems. Wealth concentration has reached extremely absurd levels. 

It is extremely difficult to bring about change that favors the people so long as the cartel political parties of the rich dominate politics and keep people out of power. Constantly begging and “pressuring” politicians to fulfill people’s most basic rights is humiliating, exhausting, and ineffective. It does not work. No major problems have been solved in years. More problems keep appearing no matter which party of the rich is in power. The obsolete two-party system stands more discredited with each passing year. Getting excited every 2-4 years about which candidate of the rich will win an election has not brought about deep and lasting changes that favor the people. It is no surprise that President Joe Biden’s approval rating keeps hitting new lows every few weeks. People want change that favors them, not more schemes to pay the rich in the name of “getting things done” or “serving the public.” “Building Back Better” should not mean tons more money for the rich and a few crumbs for the rest of us.

A fresh new alternative is needed that actually empowers the people themselves to direct all the affairs of society. New arrangements that unleash the human factor and enable people to practically implement pro-social changes are needed urgently. All the old institutions of liberal democracy and the so-called “social contract” disappeared long ago and cannot provide a way forward. They are part of an old obsolete world that continually blocks the affirmation of human rights. This law or that law from this mainstream party or that mainstream party is not going to save the day. The cartel parties of the rich became irrelevant long ago.

We are in an even more violent and chaotic environment today that is yearning for a new and modern alternative that affirms the rights of all and prevents any individuals, governments, or corporations from depriving people of their rights. People themselves must be the decision-makers so that the wealth of society is put in the service of society. Constantly paying the rich more while gutting social programs and enterprises is a recipe for greater tragedies.


Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

The Base-Superstructure: A Model for Analysis and Action

By Derek Ford

Although Marx himself only mentioned the “base” and “superstructure” in (by my count) two of his works, the base-superstructure “problem” remains a source of serious contention for Marxists, our sympathizers, and our critics. Despite its outsized role in Marxist debates, the model can, when contextualized and understood in its nuances, be quite useful for analyzing capitalist society and organizing for socialism [1].

Marx explicitly introduces the distinction between the base and superstructure in the preface to his 1859 A Contribution to the Critique of Political Economy. In the preface, Marx builds on his previous work with Engels, The German Ideology, writing:

“In the social production of their existence, humans inevitably enter into definite relations, which are independent of their will, namely relations of production appropriate to a given stage in the development of their material forces of production. The totality of these relations of production constitutes the economic structure of society, the real foundation, on which arises a legal and political superstructure and to which correspond definite forms of social consciousness. The mode of production of material life conditions the general process of social, political and intellectual life. It is not the consciousness of men that determines their existence, but their social existence that determines their consciousness” [2].

The base of society—which is also translated as “infrastructure”—includes the relations of production and the productive forces. Productive forces name labor-power, instruments or tools used by workers, and the materials workers transform in the production process. The relations of production entail the social organization of production and reproduction, or how the re/production of life is structured. It’s important to emphasize that the base isn’t just the forces of production but production relations, which are not only economic but social.

The superstructure comprises the political-legal system of the state and consciousness—or ideology—in general, which manifests in culture and art, religion and spirituality, ethics and philosophy, etc. The superstructure emerges from the totality of the relations of production. Political activity and intellectual processes and products are conditioned by the mode of production (the relations and forces of production). And as we’ll see below, elements of the superstructure in turn impact the base.

According to Engels, he and Marx laid so much emphasis on the importance of the base because of their historical and material context, because they were responding to those who denied the importance of production. In an 1890 letter to the German socialist Joseph Bloch in which Engels clarifies their model, he notes that “we had to emphasize the main principle vis-à-vis our adversaries, who denied it” [3]. Earlier in the letter, he writes that “the ultimately determining factor in history is the production and reproduction of real life,” and that “if somebody twists this into saying that the economic factor is the only determining one, he transforms that proposition into a meaningless, abstract, absurd phrase” [4].

Engels infers that Bloch’s questions come from his study of secondary literature only, and he asks Bloch to read the primary sources, referring him in particular to Marx’s 1852 book, The Eighteenth Brumaire of Louis Bonaparte, perhaps the only other place Marx mentioned the superstructure explicitly (although he alludes to it elsewhere). In this earlier work, Marx formulates the superstructure like this:

“Upon the different forms of property, upon the social conditions of existence, rises an entire superstructure of distinct and peculiarly formed sentiments, illusions, modes of thought, and views of life. The entire class creates and forms them out of its material foundations and out of the corresponding relations” [5].

Classes, that is, collectives defined by their location in the totality of social production, produce ways of feeling, thinking, and understanding life.

The context and relations of the base and superstructure

That the model isn’t a mechanical formula—in which the base unidirectionally produces the superstructure—is evident when we consider the context in which it appears.

A Contribution to the Critique of Political Economy was the product of Marx’s ongoing work on Capital. What were some of Marx’s main critiques of political economy? First, it took appearances for granted and didn’t ask about the underlying structures that generated such appearances. Second, it viewed political economy and the world as a series of independent objects and subjects, when they were interconnected and interrelated parts of a unity or totality that was in constant motion. Third, and as a result of the first two critiques, it didn’t take a historical-materialist approach to understanding these transformations, projecting present categories back into the past and the future, so that capitalism as a social system was figured as eternal.

Those who take the base as independent and static thus side with Marx’s bourgeois adversaries. It’s not an economistic formula in which changes in the economy automatically and predictably lead to changes in society. The base-superstructure is a “spatial metaphor” that serves descriptive purposes [6]. While it can lend itself to a reading whereby what happens below determines what happens on top, if read as a Marxist model it’s helpful for understanding and analyzing the dynamics of the class struggle.

This is why Marx used the superstructure in The Eighteenth Brumaire of Louis Bonaparte: to “distinguish still more the phrases and fancies of parties from their real organism and their real interests, their conception of themselves from their reality” [7]. He goes on to partially locate the failure of the 1848 Paris revolution and the success of the 1851 coup of Louis-Napoléon Bonaparte in the emergence of social-democracy, which

“is epitomized in the fact that democratic-republican institutions are demanded as a means, not of doing away with two extremes, capital and wage labor, but of weakening their antagonism and transforming it into harmony. However different the means proposed for the attainment of this end may be, however much it may be trimmed with more or less revolutionary notions, the content remains the same” [8].

The social-democratic forces, while using revolutionary phrasings, didn’t seek to overthrow the existing relations of production but to manage them in a more equitable manner through the capitalist political and legal superstructure.

Marxism and the base-superstructure model

Given the above, it’s clear that the model is dialectical. As a historical-materialist, Marx understood that the base and superstructure of society change over time and are context-dependent. Neither the base nor superstructure, nor the relationship between the two, are unified, static, or ahistorical.

The relations of production in U.S. capitalism are neither unified nor even strictly economic in the sense that they’re structured and divided by race, nationality, gender, dis/ability, sexuality, and other hierarchies. Engels affirms that the relations of production are social (and racial) in an 1894 letter to the German anarchist Walther Borgius. Responding to Borgius’ request for clarification on the role of the base, Engels acknowledges that “economic conditions… ultimately determine historical development. But race itself is an economic factor” [9]. Clearly race is part of the base, yet it’s obviously superstructural as well, in that 1) race is a historically constructed and evolving category and 2) it’s maintained and ordered not just by economic forces and relations but by elements like culture, the media, and the legal system.

In fact, Engels soon after says that “political, juridical, philosophical, religious, literary, artistic, etc., development is based on economic development. But all these react upon one another and also upon the economic base” [10]. The boundaries between the base and superstructure are not static or fixed, and superstructural elements in society work to reproduce elements of the base.

Capitalism requires, for example, the legal system of the state to enforce private property rights. In this instance, it’s crucial to the reproduction of the base. Because the capitalist legal system arises from capitalist relations of production, changes in the legal system might alter the existing relations of production, but they can’t fundamentally overthrow them, for that requires the creation of a new social and economic system.

Although Marx didn’t spend much time studying the political economy of cultural activity, another example of the dynamism of the model appears in his argument that artists and other cultural workers are productive agents. He distinguishes those who produce surplus value from those who don’t, although both can be forms of wage-labor (for example, working for the state doesn’t produce surplus value but is a form of labor-power sold to another). Marx conceptualizes intellectual work, dancing, writing, singing, and other “artistic” or “cultural” actions, when performed through the commodity of labor power, as forms of wage labor [11]. Such forms of work can thus be viewed through the prism of the base or superstructure.

All of this highlights that the base and superstructure is a metaphor and model for Marxists, a way to analyze and approach society and social transformation rather than an easy explanation.

Smart phones: An example

To get a better handle on the relationship between material production and ideas or mental conceptions, think about the proliferation of “smart phones.” When, in order to e-mail, we used to have to sit at a computer and connect via cables to the internet, we had a different idea of time and communication than we do now that many of us can e-mail wherever and whenever. A 2021 Pew Research Poll found that 85 percent of people overall (and 73 percent of people earning less than $30,000 annually) in the U.S. have smart phones, so this isn’t a minor phenomenon [12].

The technology makes it possible for your boss to require you to respond to e-mails (e.g., to work) at night. It blurs the distinction between work and life, let alone between work and leisure. How many of us respond to work e-mails on vacation? The smart phone makes it possible for me to ask you a minor question or a series of them throughout the day, rather than wait and type one single e-mail. We begin to think of time differently, and we begin to relate to each other differently. When I was a student, for example, it was normal for teachers to respond to e-mails within a few days. Now the expectation is that teachers respond within hours.

Even our feelings and bodies change. Have you ever felt your phone vibrate in your pocket only to realize it didn’t? This is called “phantom vibration syndrome.” A 2011 study of 290 undergraduate students found that around “89% of the sample had experienced phantom vibrations, and 40% experienced these vibrations at least once a week” [13]. Yet the smart phone didn’t arise spontaneously, it wasn’t dropped from the heavens. Workers conceived of it, designed it, produced it, and made it all possible. It’s a productive material force that changes our forms of consciousness, ways of feeling, senses of time, and more. Yet the reason smart phones were produced and subsequently distributed throughout society is because they increase the productivity of labor. The same object that, when used for work, enters into the base, when used for non-work purposes, enters into the superstructure.

Utilizing the model for the revolutionary movement

The socialist revolution can’t come without changing the base of society, as it entails transforming private ownership into collective ownership, abolishing capitalist relations and constructing socialist relations. But the superstructure reacts on the base and informs it. There’s a dynamic interplay between the two, and the question is not so much what is located in which part of the model as what is the most strategically significant for advancing the class struggle in a particular setting? The abolition of wage labor—the socialist revolution—has to focus on the superstructure and the base and understand their composition, contradictions, and potentials.

In the chapter on the working day in Capital, Marx describes the decades-long struggle for a “normal” working day. He quotes horrific details about the abuses of industrial capitalism on workers from factory inspectors. At the end of the chapter he declares that “the labourers must put their heads together, and, as a class, compel the passing of a law, an all-powerful social barrier that shall prevent the very workers from selling, by voluntary contract with capital, themselves and their families into slavery and death.” In other words, the tactical objective is to establish “a legally limited working-day” [14].

This is a clarion call for a change in the superstructure, for a legal reform. It’s a significant fight to reduce the working day, not only to protect workers from the abuses of bosses but also to give workers more time to organize. At the same time, it impacts the base of society as well, because given a limited working day, capital has to pursue other avenues to accumulate extra surplus value. In fact, it’s with these limitations that capital turns to the production of relative surplus value, which is when capitalism as a mode of production properly comes into being [15].

Another example is Marx’s critique of Alfred Darimon, a follower of Proudhon, who wanted to introduce a “socialist form” of money that would represent the actual time that workers labored. While Marx acknowledged that “one form [of money] may remedy evils against which another is powerless… as long as they remain forms of money” they’ll reproduce these evils elsewhere in the same way that “one form of wage labour may correct the abuses of another, but no form of wage labour can correct the abuse of wage labour itself” [16]. Capitalism can’t be overthrown without changing the relations of production.

Revolutions require objective and subjective conditions. Without changes in mass consciousness—which are superstructural but relate to and impact the base—no crisis of capitalism will lead to a new mode of production. A crisis in the capitalist system can, in turn, help change that consciousness, but is not in itself sufficient. Neither can be viewed or approached in isolation, and have to be approached as interacting within the shifting totality of capitalist society. In response to these approaches, our tactics and strategies change.

References

[1] Thanks to Jon Greenway for feedback on an earlier draft of this article.
[2] Marx, Karl. (1859/1970).A contribution to the critique of political economy(New York: International Publishers), 20-21.
[3] Engels, Friedrich. (1890/1965). “Engels to Joseph Bloch.” InMarx-Engels selected correspondence(New York: Progress Publishers), 396.
[4] Ibid., 394, 396.
[5] Marx, Karl. (1852/1972).The eighteenth Brumaire of Louis Bonaparte(New York: International Publishers), 47.
[6] Althusser, Louis. (1995/2014).On the reproduction of capitalism: Ideology and ideological state apparatuses, trans. G.M. Goshgarian (New York: Verso), 54.
[7] Marx,The eighteenth Brumaire of Louis Bonaparte, 47.
[8] Ibid., 50.
[9] Engels, Friedrich. (1894/1965). “Engels to W. Borgius in Breslau.” InMarx-Engels selected correspondence(New York: Progress Publishers), 441.
[10] Ibid., 441-442.
[11] Marx, Karl. (1939/1990). “Appendix: Results of the immediate process of production.” In Karl Marx,Capital: A critique of political economy (vol. 1), trans. B. Fowkes (New York: Penguin), 1044.
[12] Pew Research Center. (2021). “Mobile fact sheet.”Pew Research center, April 7 Availablehere.
[13] Drouin, Michelle, Daren H. Kaiser, and Daniel A. Miller. (2012). “Phantom vibrations among undergraduates: Prevalence and associated psychological characteristics.”Computers in Human Behavior28, no. 4: 1493.
[14] Marx, Karl. (1867/1967).Capital: A critique of political economy (vol. 1): A critical analysis of capitalist production, trans. S. Moore and E. Aveling (New York: International Publishers), 285, 286.
[15] See Majidi, Mazda. (2021). “Relative surplus value: The class struggle intensifies.”Liberation School, 18 August. Availablehere.
[16] Marx, Karl. (1939/1973).Grundrisse: Foundations of the critique of political economy (rough draft), trans. M. Nicolaus (New York: Penguin), 123.

There Is No Substantive Economic Recovery In Sight: Capitalism and Its State Are Running Out of Tricks

Pictured: A Maricopa County constable escorts a family out of their apartment after serving an eviction order for non-payment on Sept. 30 in Phoenix. [John Moore / Getty Images]

By Shawgi Tell

One of the fundamental economic laws under capitalism is for wealth to become more concentrated in fewer hands over time, which in turn leads to more political power in fewer hands, which means that the majority have even less political and economic power over time. Monopoly in economics means monopoly in politics. It is the opposite of an inclusive, democratic, modern, healthy society. This retrogressive feature intrinsic to capitalism has been over-documented in thousands of reports and articles from hundreds of sources across the political and ideological spectrum over the last few decades. It is well-known, for example, that a handful of people own most of the wealth in the U.S. and most members of Congress are millionaires. This leaves out more than 95% of people. Not surprisingly, “policy makers” have consistently failed to reverse these antisocial trends inherent to an obsolete system.

At the same time, with no sense of irony and with no fidelity to science, news headlines from around the world continue to scream that the economy in many countries and regions is doing great and that more economic recovery and growth depend almost entirely, if not entirely, on vaccinating everyone (multiple times). In other words, once everyone is vaccinated, we will see really good economic times, everything will be amazing, and we won’t have too much to worry about. Extremely irrational and irresponsible statements and claims of all kinds continue to be made in the most dogmatic and frenzied way by the mainstream press at home and abroad in a desperate attempt to divert attention from the deep economic crisis continually unfolding nationally and internationally. Dozens of countries are experiencing profound economic problems.

While billions of vaccination shots have already been administered worldwide, and millions more are administered every day (with and without people’s consent), humanity continues to confront many major intractable economic problems caused by the internal dynamics of an outdated economic system.

A snapshot:

1.      More rapid and intense inflation everywhere

2.      Major supply chain disruptions and distortions everywhere

3.      Shortages of many products

4.      “Shortages” of workers in many sectors worldwide

5.      Shortened and inconsistent hours of operation at thousands of businesses

6.      Falling value of the U.S. dollar and other fiat currencies

7.      Growing stagflation

8.      Millions of businesses permanently disappeared

9.      More income and wealth inequality

10.  High dismal levels of unemployment, under-employment, and worker burnout

11.  Growing health insurance costs

12.  Unending fear, anxiety, and hysteria around endless covid strains

13.  More scattered panic buying

14.  The stock market climbing while the real economy declines (highly inflated asset valuations in the stock market)

15.  Spectacular economic failures like Lehman Brothers (in the U.S. 13 years ago) and Evergrande (in China in 2021)

16.  All kinds of debt increasing at all levels

17.  Central banks around the world printing trillions in fiat currencies non-stop and still lots of bad economic news

18.  And a whole host of other harsh economic realities often invisible to the eye and rarely reported on that tell a much more tragic story of an economy that cannot provide for the needs of the people

The list goes on and on. More nauseating data appears every day. Economic hardship, which takes on many tangible and intangible forms, is wreaking havoc on the majority at home and abroad. There is no real and substantive economic improvement. It is hard to see a bright, stable, prosperous, peaceful future for millions under such conditions, which is why many, if not most, people do not have a good feeling about what lies ahead and have little faith in the rich, their politicians, and “representative democracy.” It is no surprise that President Joe Biden’s approval rating is low and keeps falling.

What will the rich and their political and media representatives say and do when most people are vaccinated, everyone else has natural immunity, and the economy is still failing? What will the rich do when economic failure cannot be blamed on bacteria or viruses? To be sure, the legitimacy crisis will further deepen and outmoded liberal institutions of governance will become even more obsolete and more incapable of sorting out today’s serious problems. “Representative democracy” will become more discredited and more illusions about the “social contract” will be shattered. In this context, talk of “New Deals” for this and “New Deals” for that won’t solve anything in a meaningful way either because these “New Deals” are nothing more than an expansion of state-organized corruption to pay the rich, mainly through “public-private-partnerships.” This is already being spun in a way that will fool the gullible. Many are actively ignoring how such high-sounding “reforms” are actually pay-the-rich schemes that increase inequality and exacerbate a whole host of other problems.

It is not in the interest of the rich to see different covid strains and scares disappear because these strains and scares provide a convenient cover and scapegoat for economic problems rooted in the profound contradictions of an outmoded economic system over-ripe for a new direction, aim, and control. It is easier to claim that the economy is intractably lousy because of covid and covid-related restrictions than to admit that the economy is continually failing due to the intrinsic built-in nature, operation, and logic of capital itself.

There is no way forward while economic and political power remain dominated by the rich. The only way out of the economic crisis is by vesting power in workers, the people who actually produce the wealth that society depends on. The rich and their outmoded system are a drag on everyone and are not needed in any way; they are a major obstacle to the progress of society; they add no value to anything and are unable and unwilling to lead the society out of its deepening all-sided crisis.

There is an alternative to current obsolete arrangements and only the people themselves, armed with a new independent outlook, politics, and thinking can usher it in. Economic problems, health problems, and 50 other lingering problems are not going to be solved so long as the polity remains marginalized and disempowered by the rich and their capital-centered arrangements and institutions. New and fresh thinking and consciousness are needed at this time. A new and more powerful human-centered outlook is needed to guide humanity forward.

Human consciousness and resiliency are being severely tested at this time, and the results have been harsh and tragic in many ways for so many. We are experiencing a major test of the ability of the human species to bring into being what is missing, that is, to overcome the neoliberal destruction of time, space, and the fabric of society so as to unleash the power of human productive forces to usher in a much more advanced society where time-space relations accelerate in favor of the entire polity. There is an alternative to the anachronistic status quo.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

The "Green New Deal" Means More Public-Private Partnerships and, Thus, More Economic and Social Destruction

By Shawgi Tell

These days there is no shortage of hype surrounding the “Green New Deal” (GND). The “Green New Deal” has become a major buzz-phrase that has ensnared many along the way.

Like so many top-down schemes, the GND is being promoted by many world leaders in unison. This alone should be worrisome. History shows that this is usually a red flag. Few pro-social things come out of movements that are not real grass-roots movements. These world leaders are the main representatives of the international financial oligarchy—a tiny ruling elite obsessed with maximizing private profit no matter the damage to society and the environment. These are the same forces responsible for tragedies such as high levels of inequality, poverty, unemployment, under-employment, inflation, debt, homelessness, hunger, racism, war, occupation, pollution, de-forestation, anxiety, despair, alienation, depression, and suicide worldwide.

The GND is being presented by the rich and their political and media representatives as something great for society and humanity; everyone is under pressure to “just embrace it.”

The GND uses the “New Deal” language of the 1930s and ostensibly addresses climate change, inequality, energy efficiency, job creation, labor rights, racial injustice, and other social aims. This includes a GND for public schools, healthcare, and housing as well.

The GND is supposed to improve conditions for humanity and help us all “build back better”—a major slogan of the World Economic Forum (WEF), which is dominated by millionaires and billionaires. Alongside this disinformation, the WEF is also promoting disinformation about “reinventing capitalism” to fool the gullible. The GND is supposedly rooted in the principles of economic justice, puts the planet ahead of profits, and provides a “blueprint for change.” It is said that Green Projects will cost hundreds of billions of dollars annually.

Europe has its own version of the GND. “Variations of the [“Green New Deal”] proposal have been around for years,” says the New York Times (https://www.nytimes.com/2019/02/21/climate/green-new-deal-questions-answers.html). The so-called Kyoto Protocol to reduce greenhouse gas emissions was introduced more than 20 years ago, for example. In 2007, the imperialist journalist, Thomas Friedman, wrote the following in the New York Times:

If you have put a windmill in your yard or some solar panels on your roof, bless your heart. But we will only green the world when we change the very nature of the electricity grid – moving it away from dirty coal or oil to clean coal and renewables. And that is a huge industrial project – much bigger than anyone has told you. Finally, like the New Deal, if we undertake the green version, it has the potential to create a whole new clean power industry to spur our economy into the 21st century. (https://www.nytimes.com/2007/01/19/opinion/19friedman.html)

Pollution, inequality, and 50 other problems have worsened since this observation was made 14 years ago. The quote rejects economic science and fails to help workers, youth, students, women, and others make sense of the economy in a way that favors their interests.

 

GND Means More PPPs and Tragedies

“Green New Deal” goals are to be attained through “joint” public sector and private sector “investments.” The disinformation from the rich is that the public can’t achieve the lofty goals of the GND on its own and that “investors” from the so-called “efficient,” “entrepreneurial,” “innovative,” and “smart” private sector are needed to achieve these big goals. It is by working “together” that “we” will supposedly achieve what the GND sets out to do. “New Deals” are purportedly too big for either sector to pull off alone and thus some sort of “partnership” or “alliance” is “needed.”

In reality, private competing owners of capital are unwilling and often unable to pay for major infrastructure projects and want the government to guarantee them big investments and returns using the public purse. PPPs essentially guarantee risk-free profits for various monopolies and further diminish control of the economy by workers and the public. PPPs enable major owners of capital to seize more of the added-value produced by workers through “infrastructure projects” guaranteed by the state at public expense. This further enriches a handful of people, intensifies inequality, and leaves workers and the public with less wealth and less control over the economy.

This is not how “partners” work. This is how an unequal relationship works.

Terms such as “alliance” or “partnership” are designed to fool the gullible and hide the enormous financial gain made by a handful of billionaires through PPPs that purport to advance the goals of the GND. In this, way the door is nonchalantly and pragmatically opened to imposing private alien claims on the wealth produced collectively by workers. The rich are given greater access to public funds and resources that belong to the public, all in the name of “partnership.” We are to believe that without a “Public-Private-Partnership” the GND will not become reality, meaning that the GND is possible only if the ultra-rich pocket more public wealth and resources. This is cynically called a “win-win.”

“Public-Private-Partnerships” promote the illusion that the public sector and the private sector can harmonize their philosophies, interests, aims, operations, activities, and results when in fact PPPs are antisocial, antiworker, and undercut a modern nation-building project.

The public and private sectors cannot be partners; they rest on different foundations, goals, world outlooks, operations, and legal frameworks; they are different categories and phenomena with different properties and characteristics. These differences are not trivial and cannot be reconciled or harmonized. Don’t believe neoliberals and privatizers whey they self-servingly claim that the two distinct spheres can “work together.”

Public and private are antonyms; they mean the opposite of each other; they are not synonymous. Public refers to everyone, non-competition, transparency, the common good, and society as whole (e.g., public parks, beaches, and roads). The public is pro-social and human-centered. It approaches life and relations with a big modern vision. Private refers to exclusivity, for a few, not for everyone, and usually involves rivalry and hierarchy. Private is also often associated with secrecy, not transparency, especially in business. The private sector pertains to relations between private citizens, whereas the public sector has to do with relations between individuals and the state. This distinction is critical. These spheres represent two profoundly different domains. The rights belonging to each sector are different.

Blurring the critical distinction between public and private should be avoided at all costs. It is irresponsible and self-serving to treat the public and private as being synonymous and easy to harmonize without big disadvantages for the public. The public does not benefit from blurring this distinction. The public suffers when the dissimilarity between public and private is obscured and not grasped in its depth.

PPPs conceal harsh irreconcilable class differences and interests in society. They reinforce a “no-class” outlook of society and, in doing so, distort reality at the ideological level, leaving many disoriented, unclear, and confused about their interests, which makes them vulnerable to disinformation from the rich and their media. In the world of PPPs, everyone is merely a “stakeholder.” There are no workers or owners of capital. There are no antagonistic irreconcilable social class interests. There are no classes and class struggle. There are no millionaires and billionaires on one side and workers on the other side who produce all the wealth of society.

Not surprisingly, PPPs form a big part of the antisocial “Great Reset” agenda of the world’s billionaires, which has been publicly articulated by the main leaders of the World Economic Forum such as Klaus Schwab. Many prime ministers, presidents, and prominent state leaders around the world continue to parrot the same tired slogans of the “Great Reset” agenda.

In practice, PPPs use the neoliberal state to funnel more public funds than ever to the private sector under the banner of “partnerships” and “making the world better for everyone.”

This funneling of more public funds to narrow private interests will not only solve no problems, it will intensify many problems that are already serious. The existing all-sided crisis will keep deepening under such a set-up.

As a main form of privatization, the “Green New Deal” will significantly intensify inequality, increase costs for everyone, reduce efficiency and quality, lessen accountability and transparency, increase corruption, and diminish the voice and wealth of workers and the public. It will not enhance democracy or improve the environment in any way because it will further concentrate greater economic and political power in even fewer hands, if that is even possible at this point in history. Funneling more public funds, assets, and authority to competing private interests in a highly monopolized economy is a disaster for the social and natural environment. It is the claims of workers, the public, and society that must be expanded and affirmed, not the narrow claims of competing owners of capital obsessed with maximizing their own profits at the expense of everyone and everything else.

The “Green New Deal” will not challenge the entrenched class privilege of the rich. It will not increase the power of workers or give them greater control of the wealth they produce. It will not make the economy more pro-social, balanced, diverse, and self-reliant. Pollution and de-forestation will still persist under the GND. Experience has repeatedly borne out that capital-centered environmental plans and activities ensure that things keep going from bad to worse.

A 2016 United Nations report highlights many ways that PPPs undermine the public interest and produce more problems (https://www.un.org/esa/desa/papers/2016/wp148_2016.pdf). Global Policy Forum states that:

PPPs are used to conceal public borrowing, while providing long-term state guarantees for profits to private companies. Private sector corporations must maximize profits if they are to survive. This is fundamentally incompatible with protecting the environment and ensuring universal access to quality public services. (https://www.globalpolicy.org/en/article/why-public-private-partnerships-dont-work)

Public and private simply do not go together. The organization In The Public Interest offers many reports, articles, and documents that expose how PPPs harm the public interest and benefit major owners of capital at the public expense (https://www.inthepublicinterest.org/). Numerous other organizations around the world have also described and explained how PPPs make things worse for the public while enriching a handful of people.

In the context of a continually failing economy, competing owners of capital have no choice but to cloak their egocentric drive to maximize private profit by seizing public funds from the state as a “win-win” for everyone, as something great for the natural and social environment. The neoliberal state is increasingly being used to divert public funds and assets to major owners of capital as they compete with each other for domination of the economy in an increasingly unstable and dangerous environment. The old ways of profit-taking are no longer as lucrative as before, so the rich have to use PPPs to seize public funds for private financial gain under the banner of “working together” to “build back better.”

As always, the rich will not brook any opposition to their narrow private interests. They will not support anything that places a greater portion of the social wealth in the hands of those who actually produce the wealth of society: workers. They will continue to act like they have a natural right to the wealth produced collectively by workers.

Major owners of capital have no human-centered interest in improving the environment or social conditions. They pragmatically strive for what will best serve their narrow private interests and class privilege without any consideration for the well-being of all sectors of the economy as a whole. Modern nation-building cannot take place in such a context. The human-centered resolution of social, economic, and environmental problems requires confronting powerful private interests and their outdated economic system if humanity is to have a bright future.

To fix the economy and to reverse social and environmental problems requires a public authority worthy of the name. There is no reason why a real public authority cannot use the wealth and resources produced by workers to improve the social and natural environment for the nation. Planned public investment for the public and for modern nation-building is not possible under the direction and influence of competing owners of capital obsessed with maximizing private profit. Such forces are only looking out for their narrow interests, not the needs of a balanced self-reliant crisis-free economy that consistently and responsibly raises the material and cultural well-being of all.

There is no need to involve powerful private interests in social programs, social investments, or green projects. The rich are not only the cause of many problems the GND ostensibly seeks to remedy, they also have no valid and legitimate claim to any public funds, resources, and assets. The rich mainly seize and control the wealth produced by workers; they themselves do not produce the wealth of society.

The rich are an historically superfluous and exhausted force blocking social progress. Without the rich, their entourage, and their outdated political and economic system, the social product could be wielded by people themselves for the benefit of the natural and social environment. The impact of this shift and change on time and space would be monumental.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

 

Economic and Social Crises Keep Deepening: 48 Points That Will Shape the Future

By Shawgi Tell

Not only have the policies of the rich at home and abroad not stopped economic and social decline, the rich are actually taking social irresponsibility to new levels and making things worse worldwide. They are unable and unwilling to solve serious problems plaguing humanity. Opening the path of progress to society is not on their agenda.

Connecting just a few dots in an intelligible way produces a clear picture of the destruction unfolding worldwide. It is no accident that more people are writing about a miserable dystopian future where people will have to develop new creative ways of defending the rights of all. The information below is especially timely given the cheap euphoria displayed recently by the short-sighted rich and their political and media representatives about the “solid” 850,000 jobs the U.S. economy “added” in June 2021.

  1. Inflation is increasing rapidly at home and abroad and the dollar’s purchasing power is still falling.

  2. Globally, supply chains affecting many sectors are not operating smoothly; many are worried about contrived and non-contrived disruptions lasting for months, even years.

  3. Ransomware incidents and major cyberattacks are not diminishing.

  4. Millions of U.S. workers are misclassified as contractors, which means that they do not have (generally weak) protections.

  5.  Thousands of companies at home and abroad are “zombie companies”—i.e., they don’t make a profit after paying down their debts, they just live a dead life.

  6. Student debt in the U.S. keeps soaring.

  7. College tuition in the U.S. and elsewhere keeps climbing.

  8. Marriage rates in the U.S. are at an all-time low.

  9. Birthrates are declining globally.

  10. The U.S. experiences a higher infant mortality rate and a higher prevalence of obesity compared with most OECD member countries.

  11.  The number of Americans who have moved back in with family or friends over the past 18 months is extremely high.

  12. Homelessness is high nationwide and increasing significantly in some major U.S. cities; crime is also up.

  13. Various “reforms” in countless sectors in many countries are superficial, phony, and non-substantive.

  14. Anxiety and depression remain widespread worldwide.

  15. Anti-depressant use remains high.

  16. Mass murders and killings have increased in recent years in the U.S.; so have social and civil unrest.

  17. Everyone everywhere is skeptical of the mainstream media and struggling not to be confused, ambushed, and humiliated every hour.

  18. Around the world hundreds of millions have joined the ranks of the poor over the past 18 months.

  19. Globally, well over ten million business have disappeared permanently and thousands more will disappear in the next five years.

  20.  Leading economic experts and officials have no real solutions for anything and people continually have low levels of trust in “experts” and government; the rich continue to operate with impunity.

  21. There is more polarization, division, and anger in society.

  22. Poverty and inequality keep growing worldwide; wealth concentration is staggering and unprecedented.

  23. Digital addiction and attendant problems won’t stop increasing.

  24. More U.S. college and university administrators, trustees, and leaders are abandoning the intellectual mission of colleges, restricting faculty voice, and turning college into Disney and fun.

  25. Getting simple things done is taking longer and becoming more convoluted and frustrating, especially when dealing with retailers, companies, and various agencies.

  26. Surveillance and police-state arrangements are multiplying rapidly and becoming more diverse and sophisticated at home and abroad.

  27. The media blackout on thousands who continue to experience serious side effects from vaccines continues.

  28. Newly-elected “progressive” politicians in the U.S. and elsewhere are proving to be as ineffective as the “old guard.”

  29. Privatization and deregulation keep increasing and wreaking havoc worldwide.

  30. Anglo-American imperialism thinks that constantly treating China and Russia as bogeymen will keep fooling the gullible and divert attention from deep problems in the Anglo-American world.

  31. The unionization rate of American workers is at a historic low, which is bad for all workers in all sectors.

  32. More than 130 million working Americans can live off their savings for six months or less before going broke.

  33. Mergers and acquisitions continue apace in 2021, concentrating even more wealth in even fewer hands.

  34. Central banks around the world keep printing phantom money while stock market bubbles grow larger.

  35. The U.S labor force participation rate remains low.

  36. The number of long-term unemployed (27 weeks or more) in the U.S. is still increasing.

  37. Millions of Americans have started to lose their jobless benefits.

  38. More than 40% of Black families and Latino families in the U.S. have no access to an employer-sponsored retirement plan.

  39. Black and Latino Americans are experiencing the biggest decline in life expectancy in decades.

  40. In recent years, overall job quality for Americans has deteriorated significantly.

  41. At least thirty million Americans lack access to high-speed internet.

  42. The U.S. opioid overdose crisis, which pharmaceutical companies were recently found guilty of sponsoring, persists.

  43. In Africa, nearly 40% of employed youth are considered poor.

  44. Around the world, nearly one out of ten people experience hunger and the number of undernourished people has grown by millions in recent years.

  45. The official unemployment rate exceeds 10% in at least 12 countries in (Western and Eastern) Europe. Fourteen countries fall into this category for North and South America. The real numbers are higher.

  46. More than 27% of youth in Central Asia and Southern Asia are not in employment, training, or education.

  47. In the past five years more countries have experienced violent conflict, while violent crime across the world has also increased.

  48. Despite endless happy economic news in the mainstream media, economies around the world are far from recovering; many never recovered from the Great Recession of 2008 and mass vaccinations will not solve deep structural economic problems.

The list goes on and on. This is the tip of the iceberg. Numerous problems persist on all continents. The facts above do not paint a picture of a bright and promising future for humanity. Widespread destruction prevails in the obsolete neoliberal world.

But there are also openings and contradictions that people from all walks of life are being compelled to harness in order to advance the public interest and restrict the illegitimate control and authority of major owners of capital. The desire for real progress is palpable and growing; it emerges from the concrete conditions as they present themselves today. The international financial oligarchy cannot provide any solutions to the problems plaguing humanity today, they just have more catastrophes in store for everyone and are blocking the empowerment of the people. None of these serious problems can be solved, however, so long as the people remain marginalized and disempowered. A new direction, orientation, and public authority are urgently needed.

Humanity is entering a new and deeper crisis with qualitatively different and more dangerous features. Crisis is a turning point that contains both peril and opportunity. Crisis is not always just a negative thing; it means things cannot continue in the old way and something significant is going to have to eventually give. It usually takes a serious crisis or trauma to catalyze and propel much-needed change. In this way, crisis overcomes stagnation and complacency and sets the stage for something new. The negation of the negation operates with a greater vengeance in such defining moments, giving rise to a new synthesis, a new equilibrium, which gives rise to yet another dynamic which must assert itself sooner or later. The dialectic lives and cannot be extinguished. What comes next in the complicated here and now is unfolding consciously and spontaneously.

The pace and rate of change today is exhilarating and people’s desire to protect the social and natural environment is growing. The trial of strength between capital-centered forces and human-centered forces is bound to increase because conditions are demanding a new authority that affirms the rights of all. An alternative is necessary and possible. What this will look like is in the hands of the people themselves. Only they can be relied on to usher in a bright future for humanity free of privileged private interests wrecking the social and natural environment.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

The Stimmy and the State

By Tyler Zimmer

Republished from Rampant Magazine.

In a recent piece in Jacobin, Matt Bruenig hails the new stimulus bill as a “watershed moment” in the fight against poverty in the United States. This dramatic “ideological reversal,” “a revolution in welfare state thinking,” as he describes it, has shattered a “25-year bipartisan consensus” against direct cash payments to the poor. “The fact that we had this debate and the pro-welfare side won is something to be happy about.”

Certainly there are provisions in the bill that benefit poor and working class people. But is this a major turning point in an ideological battle over the legitimacy of welfare state policies? Hardly.

It would be nice if our system of government was a forum for debating the merits of various ideological proposals to advance the common good. But this is simply not how the state under capitalism functions. 

Other things being equal, the state tends to promote the interests of the capitalist class at the expense of the working class majority. 

It does this for at least two reasons. First, the capitalist class spends enormous amounts of money influencing politicians—and this is why the two parties that dominate U.S. politics prioritize the interests of their corporate donors, not the majority of voters. 

Indeed, the 2020 election was the most expensive election in history, with more than $14 billion spent up and down the ballot, most of it paid for by super-PACs and extremely wealthy individuals. As Kim Moody noted in January, “the nation’s rich paid for the 2020 election, and they will be its major beneficiaries.”

Secondly, we’ve got to keep in mind that the state under capitalism depends upon tax revenue generated by capitalist economic activity—and this, in turn, puts governments under enormous pressure to promote a profitable investment climate for the ruling class. Because when profitability dips too low, capitalists lay people off, stop investing, tax revenues drop and a crisis ensues. 

This is a powerful barrier against reform absent sufficient pressure from below. 

These two reasons, then, are why capitalist states tend to consistently prioritize the interests of capital above those of workers. This explains, among other things, why huge banks were given enormous bailouts in 2008 whereas working class homeowners were left high and dry.  

Seen in this light, then, we have to ask: why has the government, which as we know is awash in corporate cash, recently decided to spend money on cash transfers and tax credits for the poor? And why has the ruling class itself been so vocal in supporting these measures? 

Context is important. As Bruenig himself points out, the most recent stimulus bill is not the first, but the third time in the last year that the government has sent out direct cash transfers, the first two coming when Donald Trump was still in the White House and Mitch McConnell was still Senate Majority Leader.

So, rather than representing a dramatic shift, the newest stimulus bill builds on what the previous ones already did. And far from having poverty reduction as their goal, these measures seemed quite obviously aimed at propping up demand and keeping the corporate profits afloat amidst the disruptions caused by the pandemic.

Let’s not forget that each infusion of stimulus had the effect of boosting the stock market—and, last I checked, these markets respond not to ideology as such but to expectations of profit. Indeed, at moments when deliberations over stimulus bills began to stall, markets often took a sudden plunge downward. 

There is indeed a shift going on, but it’s not an ideological shift in politician’s attitudes toward poverty—instead, what we’re seeing is better described as a shift in ruling class attitudes toward government spending and deficits as a way of stabilizing corporate profitability. 

This shift was well underway before Biden took office. As Robert Brenner pointed out months before Trump left office, “some $4.586 trillion, roughly 75 per cent of the total $6.286 trillion derived directly and indirectly from CARES Act money, [went to] the ‘care’ of the country’s biggest and best-off companies.” 

That’s “revolutionary” in a certain sense, but not in the sense that we (socialists) like. 

Still, the question remains: what explains the shift? The background is crucial: long-term stagnation and historically low rates of profit, combined with the sudden shock of the pandemic, caused the U.S. economy to shrink by 4-5% in 2020—the largest contraction since the 1930s. In these circumstances, the ruling class has come to prefer government deficit spending to the thin gruel of austerity, but not because they’ve experienced a sudden conversion to the cause of welfare and poverty reduction. On the contrary, massive infusions of cash from the government—whether in the form of fiscal or monetary policy—appear to be all that’s propping up their economic position. 

Of course, these inconvenient facts haven’t stopped the political boosters of the Biden Administration from engaging in a full-court press to tout the progressive credentials of the stimulus bill. Why they should be so eager to paint it as a historic move to eliminate poverty is obvious: the Democrats, in control of the White House and both chambers of Congress, have reneged on a slew of promises they made to voters in November. For example, they declined to raise the minimum wage to $15 an hour, they have more or less maintained most of Trump’s draconian anti-immigrant measures—we could continue. 

Meanwhile, economic inequality continues to soar as billionaires get richer; rates of unionization continue to stagnate or fall; unemployment and underemployment remain persistently damaging to millions of workers; and come September when the temporary measures from the stimulus will have run their course, bills, rent, mortgages and debts will still be there.

The only way to turn things around is to increase the organization and disruptive power of the working class. Hoping shifts in elite opinion about fiscal policy will morph into a new era of social democratic renewal is not going to cut it. 

Now, someone might reply that insurgent left politicians—like Bernie Sanders and “the Squad”—are the reason this shift in elite opinion is occurring. The idea would be this: Because Sanders ran a campaign that popularized certain pro-worker policies, politicians have been forced to make concessions to our side and reluctantly pass bills sending cash transfers to the poor.  

This strikes me as thoroughly unconvincing. Sanders relentlessly campaigned on a $15 minimum wage and even helped force Biden to give rhetorical support for the measure as a way of securing votes in the November election. But the $15 federal minimum wage is currently dead in the water, despite Sanders’s dogged support for it and despite the fact that the measure is enormously popular with voters. Denying a raise to tens of millions of underpaid workers isn’t exactly what you expect from a government that has been allegedly won over to the imperative of poverty reduction. 

It’s instructive to think about Amazon here. Certainly, Amazon’s owners don’t want a minimum wage hike, since this would dramatically increase their wage bill and eat into profits. But government deficit spending that temporarily boosts the purchasing power of the poor during a recession is clearly worth supporting. 

And let us not forget, of course, that Amazon is a major donor to the Democratic Party—as are similarly large corporations that would suffer a dip in profits if wages were suddenly hiked to $15/hr. Though unions donated a measly $100 million to support Biden’s campaign, the corporate employers who profit on the backs of non-union, low-wage workforces gave much, much more. 

The moral of the story, then, is that we should probably hold off on celebrating the stimulus bill as a major ideological shift to the left or as a substantial victory for our side. After all, capitalist economic expansion often results in some benefits for workers in the way of decreasing unemployment and rising wages—but we don’t celebrate cyclical upswings as victories for the left. 

Victories for the left occur when workers and the oppressed organize themselves, confront the powers that be and force them to grant us concessions. Genuine victories don’t simply make the lives of ordinary people better: they also teach them that, collectively, they have the power to push back against the ruling class and win. 

Though I’m happy that there are self-avowed socialists in Congress making arguments in favor of reform, this layer is currently small and lacks the power to veto policy or force through measures that the corporate-friendly majority opposes. And, outside the halls of government, the organization and combativity of social movements is not presently at a high enough level to wrest concessions from the ruling class. This means that we aren’t in a position to exert a strong influence on policy-making at the moment. 

To change that, we need more power. So in its relative absence, it doesn’t do the left any favors to pretend that we’re winning. And it certainly isn’t good to pretend, when it plainly isn’t true, that the Biden Administration and the Democratic establishment are our allies. 

What, then, is the alternative? 

There aren’t any shortcuts that I can see. But we’ve got to continue to recruit people to join socialist organizations. We’ve got to keep building on the explosion of activism against white supremacy from last summer. We need to find a way to renew the labor movement and spark a drive to organize the unorganized. And we’ve got to elect more self-avowed socialists to government. 

But none of these goals are well served by pretending that the current administration is sympathetic to our cause. The way forward has to include a sober assessment of the obstacles we face. 

Fascism, and How to Fight It

[PHOTO CREDIT: John Minchillo/AP]

By Peter Fousek

Both the name and the ideology of fascism originated in Italy in the early 20th century, where it arose as a spontaneous mass movement. It relied on a combination of large-scale, militant mobilization of working-class and middle-class people, with organization and financing provided by a wealthy elite. Its leader Benito Mussolini, having learned the power of popular discontent during his socialist days, was elevated to ruling status without any government background, in a time and place where such ascendancy was all but unheard-of.

The present Trumpist movement in the United States is analogous to this origin story of fascism. It is a movement relying on mass support, on a populist appeal to working and middle-class people who are terrified of losing an undue sense of social superiority, itself the product of longstanding practices of systemic racism and discrimination against marginalized minorities. Such practices of bigoted repression serve, more than anything else, to provide that angry and exploited demographic with an enemy based on racial sectarianism, such that they are convinced to direct their anger at the alien other designated thereby, rather than at their true exploiters and oppressors.

Those angry, white, working-class masses are the fuel of the fascist fire. They are not the directors but rather the foundation of the movement; the members of the society convinced that they stand to gain the most from the preservation of the present order. They are privileged by the longstanding system, kept complacent in the belief that they are not an exploited proletariat, but rather members of the ruling class. They are convinced of such a blatant lie (that is, their status as rulers, rather than their systemic privilege, which itself is quite real) only in being elevated above the marginalized minorities who they are told, quite falsely, are the enemy at fault for their own sufferings and shortcomings. In Italy, these masses of the privileged-oppressed were the landed peasantry and the petty-bourgeoisie. It does not take much imagination to locate them in the United States today.

In drawing this parallel, it is important to consider the underlying social and economic currents that lead to the rise of fascism, which provide its appeal as a popular movement. Broadly, fascism becomes possible only when the standard resources of an existing government prove unable to maintain the equilibrium of society. In such times, under such conditions, it is easy for a small contingent of the elite, acting as the agent of fascism, to inflame a group of people already in the throes of desperation on account of economic hardship and poverty within a world where they have been told over and over that their success, or lack thereof, is entirely up to them. When this proves false, when an elite few grow richer while they become more and more destitute, these masses need someone to blame. It is antithetical to the worldview that they have been taught, to consider their suffering a necessary byproduct of market fundamentalism, and it would be suicidal for them to consider it a personal failure.

As Hannah Arendt writes, “men in the midst of social disintegration and atomization will do anything to belong” (Origins of Totalitarianism). Due to their worldview of individualism, the belief that hard work alone necessarily begets success, the financial hardship they experience in times of economic instability (instability and hardship both necessary products of the “free market”) forces them to question their own value as they have come to understand it. Here we must remember that, however obvious it might seem that the exploitative economic system is at fault for their suffering, the ideology of that system forms the basis of their reality. To call that reality into question is a far more difficult task than to assign the blame to some other place or group, however imaginary the link may be. The ingenuity of the fascist is the ability to provide such a scapegoat, coupled with a promise of salvation through the fight against that designated “other”.

In Italy, fascism only filled this role because of the failure of their socialist movement at the time. In the years after the First World War, working-class revolutionaries took power over factories and gained political power, stagnating only due to a lack of organization and progression, and their abandonment by the social democrats. Subsequently, to keep their members out of direct conflict and combat, the worker’s movement made concession after concession, making way for an antithetical mass movement ready to promise ambitious goals and, more importantly, to project a sense of natural aristocracy. Mussolini succeeded by appealing to the historical glory of Rome, by associating his followers with that legendary state. Such an appeal came at the welcome cost of demonizing their enemies as lesser, in so doing providing to the in-group that sense of belonging and superiority that they had lost in the period of instability.

In the United States, Trumpism appeals to the revolutionary movement that founded the nation. We see a parallel appeal to that employed by Mussolini, in response to mirrored crises of economic origin, occurring simultaneously with disorganized left-populism. The noble struggle of the Left in this country, advocating for long-needed alterations to a repressive state apparatus rooted in the slaveholding origins of the nation and its exploitative economic tendencies, have been again and again abandoned by the supposed “left” establishment (Democrats), which exists blatantly as a neoliberal, center-right party dedicated to maintaining the status quo. On top of that abandonment, massive for-profit media machines foment division through overt and omnipotent identity politics, furthering the divides among factions of the working class along sectarian lines.

Thus, the clear and decisive rhetoric of the new American Right has been welcomed with open arms by many frustrated and alienated members of the working class. They have been drawn in by anti-establishment slogans and promises of radical change; worse still is how readily Trumpists have heralded temporary economic upswings (largely ones for which the Right is not responsible) as material evidence of the truth behind their claims. This temporary and false sense of material success is necessary for the fascist to come into power fully. Its mass-movement supporters act as a battering ram, thoroughly destroying political and social obstacles in its path. We have seen this in the Trumpist destruction of the Republican Party, the undermining of the rule of law, and the delegitimization of the most basic truths. A state’s transition to fascism does not mean that the state apparatus itself is dismantled or dissolved; instead, it means that the apparatus is transformed into a tool for the suppression of political opponents, and for the defense and propagation of its own ideology.

These trends have clearly been shockingly evident as products of the Trumpist movement. Trump has put 234 federal judges into office, hand-picked according to ideological leanings. He has appointed three Supreme Court justices, with his party taking unprecedented measures to push them through against popular mandate and in direct hypocrisy to their own procedural convictions. He carried out an unheard-of ten federal executions this year alone, while doling out 92 pardons to partisan criminals as personal favors. He has deployed police and military to violently suppress peaceful protesters, and attempted to enact education reform in order to force a rightist ideological curriculum on public school students; he has suppressed minority voters while actively engaging in the most devastating attempt in history to destroy the democratic processes of the United States. And now, in a final effort to achieve that end, he incited his followers to an act of insurrection, their dogmatic devotion (the direct result of the fascist appeals explained above) making them all too willing to attempt a violent overthrow of the government, for his sake.

All the while, he has used the tools of the state—the police, the military, the courts—to further his fascist ends. The state apparatus, with its own origins deeply intertwined with racist and classist repression, leapt to attack and suppress the marginalized and the left with neither prompt nor justification. With nearly one trillion dollars in federal defense spending (more than the next ten countries combined), and similarly outsized police expenditures dominating local budgets as well, the repressive state apparatuses of the military and police forces have been used abroad as agents of imperialism, and domestically to attack minorities and activists on the left. Nonetheless, when the Trumpist insurrection stormed the Capitol, these state forces all but ushered them in, alleging that they were overwhelmed by the rioters despite the vast resources at their disposal. That hypocrisy, far from accidental, is the foremost symptom of fascism; the willingness of the state to assent to the fascist mob indicates that this trend not only enabled Trump, but will outlive him.

The times of social crisis which facilitate the rise of fascism may alternately be moments of dramatic progressive upheaval. In order to achieve that greater end, though, the lower-middle and working class must unite in the direction of their own liberation. The fascist tendency will win when one contingent or sub-contingent shifts instead towards the Right. Considering the present right-wing terrorism and violence, we can no longer fail to actively address the threat illustrated by the results of the most recent election. Trump lost, yes, and his party lost the house and senate as well. Nonetheless, in the face of the greatest social and economic chaos this country has seen in modern times, nearly 11 million more voters felt compelled to keep Trump in office than had sought to elect him in 2016. The fascist trend is moving definitively upward, and while Trump is an incoherent and unstable loudmouth guided more by hatred and narcissism than any ideology, there are plenty of far more intelligent, ideologically driven, and capable politicians, pundits, and celebrities on the right, willing and able to step into the spotlight and turn an already devastating movement into something from which we will never recover.

But all hope is not lost! It is crucial, if we are to reach a better end, a brighter, just, and egalitarian future, rather than one of despair, that we recognize this fascist movement for what it is, and that we recognize the state apparatus that gave birth to it. We cannot return to the old status quo if we are to be redeemed. Its failings, which not only enabled this fascist Trumpism but made it inevitable, cannot be simply reformed. A system based on market fundamentalism is innately tied to an individualist ideology, to the fundamental belief that one’s prosperity is a reflection of one’s worth, and therefore that exploitation is justified along with obscene excess in the face of terrible poverty and starvation. Such a corrupt moral mandate makes an eventual breakdown unavoidable: the cavalier risks taken by financial institutions for the sake of their own gain will, as we have seen in the past decade, push the exploited masses to the point of demanding change. And the time for change, whether we want to accept it or not, has now arrived—that much is clear.

If we ask ourselves, then, what combination of circumstances can turn the working class towards progress rather than reactionary repression and division, we wouldn’t find a more favorable set of conditions than those facing the USA today: economic instability, vastly inflating the wealth of an increasingly marginal elite while over a fifth of our country goes hungry, the blatant state-sanctioned racism assailing people of color, the disintegration of the rule of law and of sociopolitical norms, the crisis of democratic republicanism made clear by the rise of Trump, and the self-exposure of the Democratic establishment as unwilling to enact radical change. These conditions will only continue to ripen as corporations trend towards legal monopolization, as financial interests dominate more and more of our “representative” politics, as automation eliminates jobs and the effects of climate change wreak more and more devastation and increase resource scarcity. If we, the Left, are to have any hope of winning out, then we must accept the inadequacy of our present party and state institutions to handle the current crises, much less those to come. That basic fact can no longer be denied. Once it has been accepted, we can begin to engage with alternatives that might work better, and to organize with the goal of enacting them. But we must act fast, with the exigency of a people fighting for their very survival, because the Right is well on its way to dragging us down the opposing path.

As the Global Hegemon Collapses, Can Private Property Be Far Behind?

[PHOTO: Al Drago/Getty]

By Steven Miller

Tuesday’s Presidential debate showed the world how the politics of collapse are determining the election of the next President of the US. It was reminiscent of the Roman Senate when the Goths sacked Rome in 410 AD. Senators gathered in the Forum, protected by the Praetorian Guards. Suddenly one Senator would leap up and cry, “I propose a law making sacking the city illegal.” Everyone voted and the resolution passed unanimously.

The world was watching Tuesday and was shocked at how low the politics have sunk in the US.

There are actually real issues these days — COVID, systemic economic collapse, institutional racism, rampant police murder. But instead we saw the leadership of the most powerful country in the world, the global hegemon for the last 70 years, collapsing in real time right there on television. The candidates could not have an intelligent discussion of the tremendous issues that face the country. No vision, no ideas, no dialogue, no programmatic solutions. The Democrats, of course, agree with Trump on 80% of the issues and therefore dare not make programmatic attacks. The debate proved nothing more than the old adage that when you lay down in the gutter, you do not wind up smelling like a rose.

Meanwhile the organs of the State are fighting themselves. This is characteristic of an objectively revolutionary situation. The FBI openly counters and reports to the American people to disprove the President. The President constantly usurps authority he does not legally have, including creating his own private police force aided and abetted by the most privatized elements of ICE and Homeland Security. The CDC, the Post Office and the Justice Department, every organ of the State, are politicized and coerced into being part of Trump’s election campaign.

The Senate and the House are in stalemate and cannot figure out how to help the American people now that 50 million are unemployed, have lost their healthcare, and are facing a looming Rent Apocalypse. Paralysis is another characteristic of an objectively revolutionary situation. The Republicans are risking losing the Senate as they try to jam through a new Supreme Court Justice before the election. People are beginning to see that these “honored institutions of democracy” are far from neutral.

Twenty-six million people hit the streets in righteous wrath over the murders of George Floyd, Breonna Taylor and so many others. Their demands crystalized around defunding or abolishing the police, which acts like an occupying army in a country that treats non-violent civilians with the tactics of the War of Terror, while white supremist vigilante gangs stalk them in the dark.

The institutions of the US State were forged in slavery and infused with structural racism. One of these, the Electoral College, was established to prevent the popular vote from determining the President. It will begin to tear itself apart after election day on November 3. No one knows whether or how the institutions of government will hold up in the coming months before a President is inaugurated on January 20… or after.

A major indicator of how things are going will be the actions of the corporate media industrial complex, perhaps the most sophisticated thought-control apparatus ever devised. These corporations have given Trump billions of dollars of free advertising, and give credence to his slightest whim. They now work in tandem with social media, which openly operates with malign intent to confuse the situation even more. It was therefore significant that one day before the debate, the New York Times, released information about Trump’s taxes that reveal he doesn’t pay any.

Property Depreciation as a Legal Invention

Now the political exposures are beginning to enter the sacred zone of private property, an issue the capitalist class prefers to keep in the dark. The very State, legal system and tax code that is coming under public scrutiny is designed to give uber privileges to private property. This is what the Trump crime family exploits, as does every corporation in America.

Tax laws allow tangible private property, used for business, to be depreciated. Personal property, like a home, cannot be depreciated, but a landlord can depreciate rental property because the theory is that tangible property is “used-up” over time, so the property owner can “depreciate” it.

But depreciation is simply a legal figment. How do we know? When an owner sells business property, the depreciation starts all over again from the top! And anyone who is forced to rent knows quite well that the value of property appreciates and gets more expensive over time. It doesn’t depreciate at all.

Then the property owner gets to deduct the cost of maintaining the property, so s/he gets a double dip. And since depreciation is a business expense, it is a deduction from business income. The law allows the owner to get cash generated in the current year without paying any tax on an amount of income equal to the amount of depreciation.

The legal scam then is elaborated. Trump (and every corporation) borrows money to purchase property, like a golf course, say for $100 million. They take the depreciation of course. Then they get an appraisal of the property that claims the property is actually worth $300 million. The appraisal, say, is three times what it should be, but the inflated appraisal can be used to provide collateral for additional loans.

In other words, the happy capitalist buys property with other peoples’ money, gets paid in tax breaks, ie public money, to depreciate it, and then falsely appreciates the value, to borrow more money to buy more property, etc etc. What a deal!

Inanimate private property in itself has these rights, not people. They are not the rights of the owner, because if the owner sells the property, they no longer get the privilege of depreciating it. So private property is a legal entity that has far more rights than human beings, just because the law says so. OMG – if ordinary citizens can challenge a system of legal institutions that are infused with systemic racism, how far can they go? That is part of the transformative power and the danger to the capitalists of this moment.

Alone in the world in its COVID response, the US put private property in control of the emergency. America is learning the hard way that there are issues that absolutely need a federal government to take control, propose a single strategy and coordinate resources. This is something that private property can never do.

Extractive Capitalism

Since the capitalist system collapsed in 2008, it has been sustained on life support by public money. US corporations, especially the financial sector, have received $25 trillion to $39 trillion in direct payments (David Sirota, Jacobin, “We've Always Had the Money for Medicare for All - We've Just Given It to Corporations Instead”, 18 June 2020). Capitalists got to onshore $23 trillion of profit two years ago. Add in direct subsidies through the military budget of $1+ trillion a year and massive billion-dollar subsidies to the petroleum and pharmaceutical industries.

Yet the economy collapsed after the advent of the virus in one week, the biggest collapse in history. Add in the actions of a criminal President and suddenly the wheels are coming off the bus. Or are they?

Is it really true that the most powerful capitalist class in history, with an unsurpassed military and three centuries of experience in maintaining its rule both legally and illegally, is so inept that they can do nothing about an unpredictable leader that destabilizes everything?

The government is clearly the last profit center left in capitalism. Just as with depreciation, the actions of government alone can create the legalities that create markets for private property. Hence the battles within the government and the State apparatus. The various capitalist gangs do not have real strategic differences, but they certainly differ tactically on whether to maintain bourgeois democracy to achieve their goals.

Corporations merged with the government long ago; now they are rapidly merging with the State, as the provision of police services are increasingly under the control corporations. Since 2003, the Department of Homeland Security has been spending billions a year to affect this change. Private property is unified in the vision of disaster capitalism: take advantage of the situation to re-organize society to augment private profits. They are not moving slowly. They are re-creating the economy as an extractive industry.

Trump’s Secretary of the Treasury, Steve Mnuchin, for example, was instrumental in creating the “rentership society”. After 2008, financiers understood that there could never be broad home ownership again in the United States. So they evicted millions from their homes, while graciously letting some stay as long as they paid rent, a sum that was dramatically higher than what they paid before. These policies drove millions out of the communities they had lived in for decades even as large amounts of new housing was built. But that housing was built to be empty, to be speculative property that supported hedge funds and not people. That is an extractive industry that sucks wealth out of communities, just as petroleum corporations extract wealth out of the ground.

US capitalism has big plans to transform other branches of the economy into an extractive machine. Constant privatization of every aspect of life is the method. Serious observers of England’s Brexit insanity recognize that when the dust settles, US-style privatized health care intends to invade and try to take over. Trump’s new Supreme Court nominee will likely vote to end Obamacare, and eliminate health care for another 25 million people or so. What can possibly arise to fill the void? What can allow US corporations to further invade public European health care systems?

Maybe it’s the new Apple watch?

Apple released the latest device during all this turmoil, and proudly stated that it was after long discussions with their “partners” in the insurance industry. Why? Could it be because the insurance industry is the main organizer of health care in the US? What is the connection here?

Haim Israel is a strategic director of Bank of America and head of the report, “The World After Covid Primer.” (www.bofaml.com/.../the_world_after_covid.pdf)

The report notes that 1/3 of the world’s data resides in the healthcare industry. It notes that value of data to the economy will increase from 30l billion euros in 2018 to 829 billion euros in 2025.

“We found that while the data generated is rising exponentially, just 1% of it is analysed or monetised effectively. The post Covid era could benefit technology companies who can analyse and monetise such data, but adoption is likely to vary by region owing to privacy concerns and regulations.”

And..  

“Big Government: a new social contract -- Growing surveillance, inequality and the current inadequacy of some healthcare systems versus others highlighted by the current crisis will act as a catalyst for change in politics, furthering populism trends and increasing the risk of social unrest. Covid-19 has handed governments a new social mandate to protect their citizens. Governments will exert greater influence on businesses with shareholder supremacy potentially eroding in favour of stakeholders. Further, this crisis has made the technology industry useful – if not vital – for implementing government power. We think this is unlikely to reverse…”

How far can this go? Vandanta Shiva reports in her article, “The Pandemic Is a Consequence of the War Against Life” (September 21, 2020):

On March 26, 2020, at a peak of the coro­n­avirus pan­dem­ic and in the midst of the lock­down, Microsoft was grant­ed a patent by the World Intel­lec­tu­al Prop­er­ty Orga­ni­za­tion (WIPO). Patent WO 060606 declares that ​“Human Body Activ­i­ty asso­ci­at­ed with a task pro­vid­ed to a user may be used in a min­ing process of a cryp­tocur­ren­cy system….”

The ​“body activ­i­ty” that Microsoft wants to mine includes radi­a­tion emit­ted from the human body, brain activ­i­ties, body flu­id flow, blood flow, organ activ­i­ty, body move­ment such as eye move­ment, facial move­ment, and mus­cle move­ment, as well as any oth­er activ­i­ties that can be sensed and rep­re­sent­ed by images, waves, sig­nals, texts, num­bers, degrees, or any oth­er infor­ma­tion or data.

Intellectual property rights, which is what a patent is, are just as much a creation of government as depreciation. It is another form of privilege for private property.

This step turns health care based on bio-data, especially privatized health care, into an extractive industry. We see this approach as well as corporations racing to develop vaccines. Corporations have long developed vaccines for pets and farm animals, but have resisted developing human vaccines, since they do not produce much profit as compared to “treatments” that you pay for across your lifetime.

One reason that government becomes the market of last resort is because economic production is increasingly done by computer systems and robots. As machines replace human labor, that labor cannot be exploited, which is the source of capitalist private profit. But maybe monetized data and data devices allow humans to be exploited for their information, not dissimilar to the exploitation of animals.

So — given these very real developments, with future potential for private profit, is it really likely that the financial industry, which is the major shot-caller in capitalist planning, going to put up with an incompetent, narcissistic, erratic fool for a US President? These boys have run the world since the advent of the Marshall Plan that re-built Europe after World War II. Are they going to give up now? Without even hardly trying?

Unlikely.

The battles we are living through today are a prelude to the battles that will ensue, regardless of who wins the election. The capitalist agenda will remain on the table. They fully intend to culminate their strategy of total privatization. But the story is not over, and the man behind the curtain is private property. The US hegemon is truly fumbling. The rising global popular movement to hold government accountable for public safety and the basic necessities of life in a time of collapse may be diverted for a bit, but it cannot be stopped.

All it requires is class consciousness and abandoning the notions that the status quo will maintain, that incrementalism and piecemeal solutions work and that we can reform our way into a world that puts healing at the top of the agenda.

Why Do Stocks Rise While the Country Burns?

By Contention News

This is a special edition of Contention News, a new dissident business news publication, shared exclusively at the Hampton Institute. You can read more and subscribe here

A reader sent us a brief, important request this week: “would like to see more on why markets are up when the world is on fire.” 

This is, in many ways, the theme of almost every edition of Contention, and we’ve pulled it apart a number of times:

But let’s elaborate the reasons for this disconnect yet again, because new explanations emerge all the time. Multiple phenomena are causing this contradiction, all part of the same basic force: state manipulation of markets to protect concentrated wealth.

First, let’s be clear: “markets” are not up in every sense. The major indexes are up: the S&P 500 and Nasdaq are already back at record levels and the Dow is not far off its all-time-high. But this is a reflection of the exceptional performance of very few components in each index, not broad-based gains. As of last week:

This international perspective highlights another crucial, largely unreported aspect of the alleged stock rally: pricing the S&P 500 in euros instead of dollars wipes out all of its record performance

The bull run is closely associated with the devaluation of the dollar, because inflated liquidity is being blasted directly at equity markets. 

Remember: stock prices reflect discounted future cash flows. Cash flow means income left over after expenses, so if investors have reason to believe that income will increase or expenses decrease in the future, stock prices move up. Monopoly pricing power means higher income, suppressed wages mean lower expenses, so large-scale bankruptcies and unemployment can actually benefit large firms.

Earnings expectation beats have moved stock prices upwards, but only 1% of that outperformance has come from increased income. The rest has come from cutting expenses, i.e. the very layoffs and cancelled purchases that make the rest of the economy miserable.

Because forecasts around cash flows aren’t certain, prices take into account a risk factor closely associated with interest rates. The larger the risk, the bigger the discount for the future cash flows, and the lower the stock price goes.

The Federal Reserve has taken emergency action this year to suppress interest rates. It dropped the rate it charges banks to near-zero levels, but more importantly it bought up trillions of dollars in bonds — including corporate bonds for the first time. 

Bond prices and their interest rates move inversely to one another, so this single-payer bond market bids up prices and sets a ceiling for rates. This squeezes investment out of safe assets, and makes riskier investments — like stocks — artificially more secure-looking

The implicit — sometimes explicit — assumption is that the Fed won’t let markets crash for long. We now have central planning for capital, so why wouldn’t you buy? 

But if the cost cuts that drove earnings beats in the last quarter have now hit bone, if failed fiscal stimulus means a big drop in aggregate demand, or if accelerating political chaos raises volatility too much and markets do drop, what can the Fed do? Their only card left may be to intentionally depreciate the dollar in even more aggressive ways. 

That is to say, the most likely outcomes of our present condition are that things keep burning like they are or the people that started the blaze will throw gasoline on it. Either way Contention will be here to sound the alarm. 

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