The Publishing Problem: Reading Between the Lines of Industry Self-Censorship

By Chris Richards

Republished from the author’s substack.

At first I didn’t know what to make of Judd Legum’s piece on what he calls “Scholastic’s Bigot Button.” It raises some interesting ideas about whether or not a publisher should pander to conservative political biases by allowing them to hide liberal titles. It shows how not offending certain kinds of white people continues to be an important cultural priority. It informs readers of a right wing pressure campaign against Scholastic Corporation, spearheaded by a conservative Christian publisher of children’s books called “Brave Books.” What it doesn’t really engage with is who Scholastic Corporation is and why the company has so much power.

This is important because who Scholastic is, what they do, and the power they have is central to the right wing pressure campaign to which Scholastic is capitulating. At the moment, Scholastic is selling at $37.48 a share. As Judd Legum points out in his article, it is a publicly traded company with more than a billion dollars of market capitalization. What that means in plain English is that Scholastic’s division Arthur A. Levine Books is the original US publisher of JK Rowling and Philip Pullman. Levine himself left Scholastic in 2019 to establish his own company, but Scholastic still handles the back catalog. That means Harry Potter and “The Golden Compass” are controlled by Scholastic here in the US. In addition, Scholastic itself is the publisher of Suzanne Collins. That’s a lot of Young Adult literary culture in one place.

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That’s just one of Scholastic’s four main business lines. Children’s and Young Adult publishing is big money as it is, but the media rights for those books is big money too. Which is why Scholastic Entertainment exists, to develop intellectual property from Clifford the Big Red Dog, to Harry Potter, the Hunger Games, and the Golden Compass, to Goosebumps. There’s a lot of money in this area too, and a lot of power, but this isn’t why Kirk Cameron’s publisher is going after Scholastic.

You see, Scholastic pretty much controls school book fairs. It turns out that schools don’t just hold book fair themselves using decorations made by teachers and librarians. They pay someone to run the book fair for them. Usually that someone is Scholastic Book Fairs. So nearly every time a public school holds a book fair, Scholastic makes a buck. Scholastic also has book fair packages designed to appeal to different schools as different markets. Here is where Brave Books and their pressure campaign targeting Scholastic comes in.

According to its website, Brave Books was founded by Trent Talbot. Dr. Trent Talbot was a practicing ophthalmologist who was so disgusted by “the inappropriate content being pushed upon children”that he just needed to found a right wing Christian kids’ book and YA publishing company to give parents and schools “a wholesome alternative.” So he naturally decided that Kevin Sorbo and Kirk Cameron were the people he should turn to for help. I think of “wholesome” and I immediately want Kevin Sorbo to teach my kids about masculinity, right?

Because being an obnoxious conservative bigot is a brand in today’s America, Brave Books opened its own book club and book fair divisions to compete with Scholastic and chose an openly confrontational marketing tactic. Brave decided to accuse Scholastic of advancing the LGBTQ+ agenda, because we all know that blatantly accusing your competition of wanting to groom parents’ kids is one way to stake out your own recognizable brand. It also makes it clear that you value the thoughts, feelings, and spending money of the Christian conservative market.

This is the basic background of the specific issue that Legum is writing about. I want to be clear about this background before touching on the specifics of his piece and the core problem left unaddressed by his piece. That core problem, imo, is more important than the immediate specifics of what Scholastic is doing under pressure from Brave. The problem is one of capitalism, and of how the fiduciary responsibilities of corporate officers are seen in the modern business culture.

The specifics of this news are simple. In the face of a marketing offensive from a competitor accusing Scholastic of marketing “inappropriate material” at book fairs, Scholastic has introduced an easy button that school employees planning a book fair can use to eliminate any “objectional content” from their school’s book fairs. Naturally the “objectional content” is all about racial inclusion, the lives of Black people like Ketanji Brown Jackson and John Lewis, and teaching kids that LGBTQ+ families are as valuable as traditional Christian families.

It’s important to keep this in the proper context and look at the material underpinnings of what is happening. This isn’t about Scholastic executives being afraid they will be censored by an out of control state governor like Ron DeSantis. This isn’t even about complaints being made by vigilante parents. This is about a corporate competitor of Scholastic choosing to compete by condemning the morality of Scholastic, as a company, in order to try to sell some schools Christian book fair packages. This is the business of capitalism as usual, with Brave Brooks choosing to brand themselves as the “choice for Christians who want their kids to be safe at the book fair.” It’s a marketing gimmick.

When Scholastic adds a button to their system to exclude liberal content to which conservatives might object, they aren’t knuckling under to any public censorship campaign. They aren’t bowing to the forces of a repressive state. No, it’s much simpler.

They are protecting their market share by giving conservative Christian school employees the easy and quick option to keep liberal material out of the book fair. They don’t want to lose market share because the school districts in Texas and Florida go with the conservative book fair option. So they are making sure their interface allows conservative Christian school employees to feel comfortable with their buying decisions.

There’s a conversation that we should be having about corporate control of our “public” education system that we’re not having.

Teaching Politically and the Problem of Afropessimism

[Protesters at the Open Housing March, Chicago. Getty Images/Chicago History Museum]

By Nino Brown and Derek Ford

Republished from Black Agenda Report.

As teachers, we’re tasked with educating our students, students who are increasingly, like their teachers, becoming politically conscious and called to act. Yet the dominant political theories and forms of action are inadequate for real revolutionary transformation. In other words, the schools and universities in capitalist society are all too ready to accommodate and guide this consciousness and energy into forms it can accommodate. This is not a new phenomenon, but one that’s accelerated since the 1960s in particular.

For example, Charisse Burden-Stelly documents how Black Studies emerged in the 1960s “to fundamentally challenge the statist, imperialist, racist, and Eurocentric underpinnings of the traditional disciplines in westernized universities,” but that it was soon “more or less fully incorporated into the westernized university.”[1] What facilitated this absorption was the erasure of political and economic critique and action with cultural and literary analysis, which “reify the abstraction of Blackness” and divorce it from political struggle, not even questioning its relationship to and basis in the material conditions and struggles of the people.[2] As we wrestle with political pedagogy, then, our guiding orientation has to be one that resists such subsumption within capital.

Yet it’s not only that the “scholastic ideological apparatus” provides its own official pathways for “resistance” and “transformation,” from reading groups to Diversity and Equity Initiatives and intergroup dialogues. Perhaps a more fundamental problem for us--as our students participate in protest movements--are the academic theories and politics that they encounter there and often unconsciously absorb. We regularly hear students say “anti-Blackness” and, when we ask them what it means and what political orientation it comes from and reproduces, they’re not sure. Or we hear students say in regards to protests against particular forms of oppression that we have to “listen to and follow” the people who face that oppression. White and non-white students alike believe they have to “follow and listen to Black leaders” at protests against racist police terror and white supremacy. We’re told to cite Black scholars. In either case, the question of politics is completely effaced, as there’s almost a prohibition against asking: “which Black people?” Yet this is not a defect but a feature of Afropessimism, a feature that opens the arms of white supremacist imperialism.

The happy marriage of capitalism, Afropessimism, and liberal identity politics

We and our students want radical transformation, and so many often jump to the latest and seemingly most radical sounding phrases, slogans, and theories. In education, as in so many other disciplines, one of the increasingly dominant phrases is “anti-Blackness” and the theory of Afropessimism. The two foundational theorists here are Frank Wilderson and Jared Sexton. For Wilderson, Afro-pessimism contends that “Blackness cannot be separated from slavery,” and that “the Slave’s relationship to violence is open-ended, gratuitous, without reason or constraint,” whereas “the human’s relationship to violence is always contingent.”[3]

There are crucial problems with this framework that make it perfectly acceptable to capitalism and perfectly antithetical to those who want to change the world. For one, they are completely Eurocentric in that Africa and the African diaspora are flattened into “Blackness” as a condition of the “human.” As Greg Thomas notes, this is “the [B]lackness and humanism of white Americanism, specifically and restrictively, an isolationist or exceptionalist Americanism.”[4] In other words, Afropessimism takes aim at a civil society and takes refuge in a Blackness that are both uniquely American. The U.S. historical and political experience is transformed into a transcendent, static, and universal ontological status or structure. More specifically, the theories of academics in highly prestigious and exclusive institutions in the U.S. are presented as ahistorical and global realities.

As identities, Black and Blackness are, in the U.S., fairly recent developments. The earliest recorded appearances are in Richard Wright’s 1954, Black Power and in 1966 as the first words spoken by Black Panther Stokely Carmichael when he left his jail cell after imprisonment for registering voters. White and whiteness are older but still relatively recent. Theodore Allen writes that he “found no instance of the official use of the word ‘white’ as a token of social status before its appearance in a Virginia law passed in 1691, referring to ‘English or other white women.’”[5] The point here, as Eugene Puryear observes, “is that the ideology of white supremacy emerged not because of timeless antagonisms based on phenotype differences, but in a precise historical context related to the development of racial slavery.”[6] This is precisely the historical context that Afropessimism erases and precisely the phenotypes they use to define Blackness.

Afropessimism addresses an apparent radical omission in the primary theory that oppressed people have utilized for liberation: Marxism. Wilderson’s work, however, is based on a fundamental misreading of Marxism, such as his contention that in “Marxist discourse” (whatever that is) “racism is read off the base, as it were, as being derivative of political economy.”[7] To be sure, there’s an unfortunate history of some Marxist groupings asserting “class first” politics, but Marx and Engels, and Lenin, together with the history of the international communist movement, always asserted the primacy of race.  Marx’s theory of class was a theory of race and colonialism, as was his communist organizing. 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 are unified, static, or ahistorical. The relations of production in the U.S. are neither unified nor even strictly economic in the sense that they’re structured and divided by hierarchies of race, nationality, gender, dis/ability, sexuality, and other divisions.In an 1894 letter, Engels clarifies yet again the base-superstructure model, what it entails, how it works, and exactly what it’s supposed to do. First, he says that “economic conditions… ultimately determines historical development. But race itself is an economic factor.”[8]

Marx not only supported anti-colonial uprisings in India and China but even said that they might ignite the revolution in Britain. “It may seem a very strange, and very paradoxical assertion,” Marx wrote about the 1850-53 Taiping Rebellion in China, “that the next uprising of the people of Europe, and their next movement for republican freedom and economy of government, may depend more probably on what is now passing in the Celestial Empire.”[9]

Marx fought ruthlessly against racism and national chauvinism, particularly as he experienced the deep-seated racism of English workers against the Irish. He “argued that an English workers' party, representing workers from an oppressor nation, had the duty to support an oppressed nation’s self-determination and independence” and that “English workers could never attain liberation as long as the Irish continued to be oppressed.”[10] He recognized that the fate of Black slaves, Black workers, and white workers were bound together when he wrote in Capital that “Labour cannot emancipate itself in the white skin where in the [B]lack it is branded.”[11] Marx even organized workers to support the abolitionist struggle by galvanizing them to oppose a British intervention in the U.S. Civil War on behalf of the slaveocracy, an intervention that, because the British had the largest Navy in the world, could have altered the war drastically.[12]

Perhaps the real problem is that Marx treats race as a dynamic and contingent social production rather than a fixed and abstract ontological category. Black people face particular forms of oppression in the U.S. and elsewhere, as do other oppressed and exploited peoples. These change over time and are in a dialectical relationship with the overal social totality. Iyko Day got it right by equating economic reductionism to Afro-pessimism, insofar as it “frames racial slavery as a base for a colonial superstructure” and “fails to take into account the dialectics of settler colonial capitalism.”[13]

Why the neoliberal university loves Afropessimism

The reason anti-Blackness critique is welcome in schools is because it is devoid of praxis and politics, or, to be more precise, because it celebrates its lack of politics. The impossibility of praxis and the rejection of organizing are fundamental tenets for two reasons. The first is that there is no answer to the question “what is to be done?” and the second is that the mass movements necessary for transformation are “from the jump, an anti-black formation,” as Wilderson told IMIXWHATILIKE.[14] Of course, the only thing to do is to condemn every attempt at fighting oppression and improving material conditions. For example, when a student group at one of our schools staged a protest when Condoleeza Rice came to speak, they were denounced as “anti-Black.” There was no political criteria for such a denouncement, no defense of Rice, and likely no knowledge of the reasons behind the protest. It didn’t matter that Rice was a key figure of the white supremacist imperialist power structure, or that she played a major role in the murder of hundreds of thousands of Iraqis, the torture of thousands of Arab and African people.

Examples of “anti-Blackness” that often come up in organizing are that non-Black people of color are to be met with suspicion when organizing on issues that sharply affect Black people. One such issue is immigration. In the struggle for immigrant rights, which is often overcoded as a “Latinx” issue, some Black activists and organizers point to the fact that 44% of those caged by ICE, for example, are Haitians. Instead of directing their ire towards the racist state that holds many Black immigrants in horrendous conditions, the focus then becomes the irrevocable anti-Blackness that exists in Latinx communities. Ideologies like Afro Pessimism have working class people of color (Black people included) fighting amongst each other, with the same framework as liberal identity politics. They both reduce solidarity to checking one’s privilege and fashioning oneself as the consummate ally of Black people and their liberation. So, instead of building a united front against the racist state, the lack of corporate/mainstream media focus on the fact that there are many Black immigrants, and immigration is a “Black issue” unnecessarily shifts attention to other workers who are subjected to the same “anti-Black” ideology of the ruling class and it’s media apparatuses. Instead of calling out the “Latinx community” for their “anti-Blackness” a revolutionary perspective frames the issue as not one stemming from any said community, but from the ruling class which oppresses the vast majority of immigrants in this country.

Capital in these instances are let off the hook. The problem is no longer that the ruling class owns the means of production and thus the means of ideological production that reinforce anti-working class ideologies such as racism. The problem is the “anti-Blackness”--and the often posited “inherent” anti-Blackness--of non-Black communities. It’s a structural feature of society, but apparently one that can’t be changed. As a result, there’s no need to do anything except critique.

No wonder, then, that Afropessimism is so welcome in the neoliberal university and the increasingly corporatized public school system in the U.S. It’s incredibly easy to call something anti-Black, to condemn anti-Blackness, and to play more-radical-than-thou. It’s more than easy, it’s what academia is about. Moreover, and this is related to the Rice protest mentioned earlier, when “Black faces” do appear in “high places,” they’re immunized from any possible critique from any group that isn’t Black (enough). It doesn’t matter if the head of a school, corporation, or any other entity has the same politics as the imperialist and racist power structure, because they’re black and so to critique or challenge them would be an act of anti-Blackness.

This last reason is why white people love Afropessimism so much. The vague calls to “follow Black people'' not only fulfill racist tropes that all Black people are the same (in, for example, their unruliness and “threat” to society) but moreover let white people off the hook for doing any real political investigation and work. The real response to “Follow Black people'' is: “Which Black people?” Should Derek follow his comrade Nino or John McWhorter? Should he go to the police protest organized by the local Black Lives Matter group or the one organized by the local Congress of Racial Equality? Should he get his racial politics from Barack Obama or Glen Ford? He certainly shouldn’t get his politics--or take his lessons in class struggle--from today’s Afropessimists.

None of this is to devalue Black leadership in the Black liberation movement, to be clear. Black people have and will lead the Black struggle and the broader class struggle. Nor is it to claim that random white people should show up to a Black Lives Matter protest and grab the microphone. Then again, how much of a problem is that really? Shouldn’t we forget the myth that we can learn all the proper rules before we struggle and instead just go out and struggle? And as we struggle, be conscientious of our actions and how they could be perceived; know that we’ll make mistakes and own up to them; and most importantly build with those whom this racist society has segregated us from so we can unite against a common enemy. Black people will lead the Black struggle and the class struggle. So too will Asian Americans, Indigenous people, and Latino/a/xs. So too will the child of an African immigrant and a Filipino domestic worker. So too will some white people. The key ingredients are unity, political clarity, and strategic proficiency.

Such a recipe entails a necessary risk in that, first, politics are divisive and draw lines between friends and enemies and that, second, achieving unity and strategic proficiency takes hard work without any guarantees of success. Educators who are or want to be radical, however, have no choice but to accept this risk. We need to be rooted in movements and resist incorporation into neoliberal structures, refusing to allow them to guide our political decisions. Only if we have hope and faith in the power of the masses to change the world does it make sense to struggle at all. We choose to struggle! And we hope our students do too.

Nino Brown is a public school educator and labor activist in Boston. He is also an organizer with the ANSWER coalition, the Jericho Movement and the Boston Liberation Center. He's a member of the Liberation School Collective and is an editor of the forthcoming book on Marxist pedagogy, Revolutionary Education: Theory and Practice for Socialist Organizers (2021).

Derek R. Ford is assistant professor of education studies at DePauw University, where he teaches and researches at the nexus of pedagogy and political movements. He’s written six books, the latest of which is Marxism, Pedagogy, and the General Intellect: Beyond the Knowledge Economy (2021). He’s also the lead editor of Liberation School’s “Reading Capital with Comrades ” podcast series.

Notes

[1] Charisse Burden-Stelly. “Black studies in the westernized university,” in Unsettling eurocentrism in the westernized university, ed. J. Cupples and R. Grosfoguel, pp. 73-86 (New York: Routledge, 2019), 73.

[2] Ibid., 74.

[3] Frank B. Wilderson III, Afropessimism (New York: W.W. Norton & Co., 2020), 217, 216.

[4] Greg Thomas, “Afro-Blue Notes: The Death of Afro-pessimism (2.0)? Theory & Event 21, no. 1 (2018): 291.

[5] Theodor Allen, The Invention of the White Race (vol. 2): The Origin of Racial Oppression in Anglo-America (New York: Verso, 1997), 161-62.

[6] Eugene Puryear, “The U.S. State and the U.S. Revolution,” Liberation School, November 01, 2018. Available at: https://liberationschool.org/the-u-s-state-and-the-u-s-revolution/.

[7] Frank WIlderson III. “Gramsci’s Black Marx: Whither the Slave in Civil Society?” Social Identities 9, no. 2 (2003): 225.

[8] Friedrich Engels, “Engels to W. Borgius in Breslau.” In Marx-Engels Selected Correspondence (New York: Progress Publishers, 1894/1965), 441

[9] Karl Marx, “Revolution in China and Europe,” in K. Marx and F. Engels, Collected works (vol. 12), 93-100 (London: Lawrence & Wisehart, 1979), 93.

[10] Gloria La Riva, “Lenin and the Right of Nations to Self-Determination,” in Storming the Gates: How the Russian Revolution Changed the World, ed. J. Cutter (pp. 75-83) (San Francisco: Liberation Media, 2017), 76, 77.

[11] Karl Marx, Capital: A critique of political economy (vol. 1): The process of capitalist production, trans. S. Moore and E. Aveling (New York: International Publishers, 1867/1967), 284.

[12] ​​See Gerald Runkle, “Karl Marx and the American Civil War,” Comparative Studies in Society and History, 6, no. 2 (1964): 117-141.

[13] Iyko Day, “Being or Nothingness: Indigeneity, Antiblackness, and settler colonial critique,” Critical Ethnic Studies 1, no. 2 (2015): 112.

[14] Frank B. WIlderson III, “‘We’re Trying to Destroy the World’: Anti-Blackness and Police Violence After Ferguson,” in Shifting Corporealities in Contemporary Performance: Danger, Im/mobility and Politics, ed. M. Gržinić and A. Stojnić (New York: Palgrave, 2018), 55.

Dear Black America, Don't Let Them Fool You: We Cannot Vote Ourselves Out Of This Problem

By Christian Gines

Voting is not the way to solve anything for black people, oppressed people. First, reform does not work in a white supremacist capitalist patriarchy. Every issue we hear talked about on the news, "this [issue] disproportionately affects people of color, women, the LGBTQ community, etc." This statement shouldn't be that mind-boggling. This system isn't made to benefit us in the first place, so why would a change in that system work in the first place. When a car breaks down, you put in new parts. If you continue to put new parts in a car, it will eventually break down. That is all these reformist polices are doing. If you're not abolishing the system, then you're just allowing the car to keep on going with new parts that will enable the car to run on fumes until it breaks down. Calls to abolish and defund the police are already being coopted into reformist policies to appease the ruling class. It shouldn't be that radical to call for an abolishment of a system that kills over 1,000 people a year despite being "reformed."

Second, voting is to subdue the masses to choosing between two evils and allowing them to decide what's acceptable and what's not acceptable in the realm of discussion. As Noam Chomsky eloquently put it, "The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum — even encourage the more critical and dissident views. That gives people the sense that they have free thought, but the presuppositions of the system are being reinforced by the limits put on the range of the debate." As a people, we have been taught and sold that voting is the only way to make a change in society. From talking to my parents, family members, and community members doing the peak of the 2020 Democratic primary, and now they are sold on voting as our only means of creating change. Saying we have to make the change within the system. Their stance on voting has been fed to them for so long that they will fight you to the grave on this, but it is so ahistorical that we need to disprove it today. Our ancestors didn't have the right to vote, and they achieved the abolition of slavery, end of segregation, right to citizenship, right to work, right to own property, the Civil Rights Act of 1964, and the removal of Jim Crow Legislation, the right to vote.

When you look at any change that has happened within the The US, the change has come from outside the system, not within. As James Connolly Said, "Governments in capitalist society are but committees of the rich to manage the affairs of the capitalist class." When we vote, we are voting for whoever the ruling class has told us to vote for. Whether through endless spending with SuperPAC's or "black faces in high places," telling us who to vote for, we have no say in Democracy. As Malcolm X said, "Democracy is Hypocrisy." Voting is the way that the empire can keep us under control and keep themselves in power. The Black Panther Party couldn't vote, yet they had a Free Food, Free Housing, Free Medical Care, Free Busing, Free Clothes, and 50 other programs that we hear white liberals advocate for today. They were doing that within their community, and that's why Herbert Hoover fought to get rid of them. The BPP's initial government surveillance started because of their Free Breakfast Program. The settlers have taught us that's their way of governance is the best way, and we have fallen for that. We believe that we, the masses, and oppressed people can vote and change the system that was set up with the thought that either we weren't citizens, we weren't humans, or that we were too dumb, so there should be a safeguard.

The ruling class had a chance to maybe postpone a revolution in our lifetime with the compromise candidacy of Bernie Sanders. Sanders, running on a political revolution, had a tremendous amount of support from young people in general, but especially young black people. With his calls for Medicare for All, a Green New Deal, and other social democratic policies, they had a chance to satisfy the short term wants of most Americans. They had an opportunity to assuage the masses for a while, as they did with FDR's candidacy. The ruling class, though, was so caught up with their money and profits that they failed to see that Bernie Sanders was offering them. They were so scared that he would tax them that they colluded against him as they did in 2016 to ensure that their establishment candidate won. Now we are stuck choosing between the lesser of two evils again. We have one person who has been accused of sexual harassment and assault, an architect of mass incarceration (who refuses to apologize for it), and full of blunders. On the other hand, we have Donald Trump. I remember when people were saying that they will vote for Joe Biden over Trump because at least we can push him left. Now, this isn't an essay on whether you should vote or not, but I will say that we have had weeks of protest worldwide, and Joe Biden has not even inched to the left. He doesn't support abolishing or defunding the police department. Even Bernie Sanders said that he doesn't support defunding the police and says that they need more funding. This was the candidate who claimed that he was for the people, and he doesn't even support our demands. The Democratic Party has sold out black people for so long that it shouldn't be controversial not to support them, but we continuously have for decades. 

The façade that we can vote our problems away is one that we cannot fall victim to today. We have tried that time and time again, and what happens? The politicians run on something, go in there and don't do anything for our community. Black and white politicians alike have sold us out time and time again. To get real change, we must stay in the streets. As you see in Minneapolis, with protesting, burning, rioting, and looting, the change will come. If you support non-violent or violent protest is your prerogative. If you support the liberation of the black community and think that we must vote to get Trump out of office, that is your choice. But one thing is for sure. We cannot vote ourselves out of this situation because if we think that is the way to solve our problems, we will end up in the same place we started.

Christian Gines is a published student writer, poet, and activist whose writings discuss race within the black community and its effect on black youth.

Capitalism's Overproduction Problem: A Primer

By Prabhat Patnaik

Republished from Monthly Review.

It is in the nature of capitalism to have “over-production crises”, i.e., crises arising from “over-production” relative to demand. “Over-production” does not mean that more and more goods keep getting produced relative to demand, so that unsold stocks keep piling up. This may happen only for a brief period in the beginning; but as stocks pile up, production gets curtailed, causing recession and greater unemployment.

“Over-production”, in short, is ex ante, in the sense that if production were to occur at full capacity use (or at some desired level of capacity utilisation), then the amount produced could not be sold because of a shortage of demand. But it manifests itself in reality in terms of recession and greater unemployment.

It is a mistake to believe that such crises are only cyclical in nature, i.e., that they get automatically reversed after a certain period of time. On the contrary, the Great Depression of the 1930s, which was a classic over-production crisis, lasted nearly a decade and was finally overcome because of the war, or, to be precise, because of military expenditure in preparation for the Second World War.

Since 2008, there has again been an over-production crisis that has persisted with varying intensity right until now. There is, thus, no question of an over-production crisis under capitalism automatically disappearing. But what was striking about the erstwhile socialist economies of the Soviet Union and Eastern Europe is that they were free from over-production crises. The question is why?

Over-production crises under capitalism arise because of two main reasons. One, investment decisions under capitalism depend upon the expected growth of demand, for which the current growth of demand is taken as a clue: if demand slows down then investment gets restrained. Two, whenever investment gets restrained, so does consumption and hence total income (this is called the “multiplier” effect of investment).

Both these factors were eliminated under socialism. Investment was undertaken according to a plan and not the dictates of profitability; hence, there was no question of investment being curtailed when the growth of demand slowed down for any reason. This is not to say that there were no fluctuations in the level of investment. These fluctuations, however, arose not in response to profit expectations, but for entirely exogenous reasons, of which, two in particular were important.

One was agricultural output fluctuations. In years when the agricultural output went down for weather-related, or some other, reasons, investment was cut, in order to prevent excessive upward pressures on food prices; correspondingly when agricultural output revived, so did investment. These investment fluctuations, however, had nothing to do with any calculations of profitability on investment; they were unavoidable even in a planned economy.

The second reason was the operation of “echo effects”. Suppose, for instance, that a whole lot of new investment had been installed in a bunched manner at a certain date, say the beginning of the planning period. These pieces of equipment would become due for retirement again in a bunched manner around the same time some years later, which would, therefore, push up the investment plan, and hence the real gross investment around that time, so that both net investment and replacement needs are accommodated. The investment figure, therefore, would not show a steady growth but would exhibit fluctuations. But these fluctuations again had nothing to do with any calculations of profitability; they arose because of past investment history.

But even when such investment fluctuations occurred, socialist economies ensured that they did not lead to fluctuations in consumption and income, i.e., those economies snapped the multiplier relationship that necessarily characterises capitalism. This is because all firms in the economy were asked to produce to their capacity, and, if demand was low because of investment being curtailed, then they were asked to lower their prices until whatever they produced got sold.

At these “market-clearing” prices, some firms would make losses, while others would still make profits; but this would not matter since both the profit-making and the loss-making firms belonged to the State, which could, therefore, cross-subsidise the loss-making ones from the profits of the profit-making ones. And taking both groups of firms together, there would always be positive net profits as long as investment was positive (even if lower than would have been otherwise).

This was a remarkable break from what happens under capitalism, and provides a clue to why output and employment fall in a crisis there. Under capitalism, a firm does not produce when prices do not cover costs; and when demand is low, prices do not fall, because they are “administered” through collusion among the oligopolistic firms. Instead, output, and hence employment, fall in order to equate supply with demand, and to eliminate stocks which might have got built up briefly.

The matter can be looked at somewhat differently. A fall in price, with money wages and employment given, which is what happened under socialism, meant a rise in the share of wages in total output; income distribution in short shifted in favour of the workers. Since workers more or less consume their entire wages, such a shift in income distribution in favour of the workers raised the share of consumption in total output. Thus, socialist economies never experienced over-production crises because even when investment fell for some reason, output was kept unchanged and the share of consumption rose to compensate for the fall in investment (through a rise in the workers’ share in output).

This, however, can never happen under capitalism because capitalists would never voluntarily agree to a lowering of their share in output and a corresponding increase in workers’ share, even in a situation of inadequate aggregate demand. This is why capitalism experiences over-production crises: income distribution here is a matter of intense class-struggle where there is no question of capitalists agreeing to lower their own share and correspondingly raise workers’ share for the sake of overcoming a situation of over-production.

The “multiplier” that operates under capitalism, whereby a reduction in investment causes a reduction in consumption and hence total output, occurs because of income distribution not being adjustable. The “multiplier”, in other words, is predicated upon the relative shares among capitalists and workers being given.

In fact, under capitalism, far from the workers’ share rising to offset the problem of insufficient demand, the tendency in periods of crisis is the exact opposite, namely, to cut wages and raise the share of profits, which, in a situation of reduced investment that brought about the crisis in the first place, actually compounds the crisis. A 10% fall in investment in such a situation does not just bring about a 10% fall in output, as the “multiplier” analysis would suggest, but a more than 10% fall in output, say a 15% fall, because an additional squeeze on consumption through a fall in workers’ share (via the wage cut) is further superimposed upon the reduction in investment.

The fact that the relative share of the workers is not allowed to increase in order to offset the tendency towards over-production, which is a basic characteristic of capitalism, also shows its supreme irrationality as a system. It shows that the system would rather have larger unutilised capacity and unemployment, i.e., a sheer waste of productive resources for lack of demand, than produce as before by avoiding this waste through giving more to the workers. From its point of view, wasted resources are preferable to using these resources to improve workers’ consumption. True, not being a planned system, it does not make such calculations consciously; but that is what its immanent tendencies amount to. Socialism avoids any waste or slack, such as is caused by a crisis, by raising the consumption of workers appropriately to avert it.

As the collapse of the Soviet Union recedes further into history, people increasingly forget that a system had existed there, which, notwithstanding its many limitations and defects, had nonetheless been free of unemployment, of over-production crises and of the irrationality of capitalism.

Prabhat Patnaik is Professor Emeritus at the Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi. His books include Accumulation and Stability Under Capitalism (1997), The Value of Money (2009), and Re-envisioning Socialism (2011).