unrest

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. 

For more anti-imperialist business analysis, subscribe to Contention

If Death Doesn't Push Politicians Left, Then What Can?

By Christian Gines

I am sick and tired of seeing black bodies dead in the street for absolutely no reason at all. It is traumatic and exhausting to continue to see wanton violence perpetuated every single day. Every time I see a black person that has been killed from structural violence I think back to the first point of Afropessimism: “The slave, as an object, is socially dead, which means they are open to gratuitous violence, as opposed to violence contingent upon some transgression or crime.” Black people are killed daily without any justification. How can a representative of the state apparatus represent and legislate on behalf of the black community if we are socially dead in the eyes of the state? If wanton violence keeps occurring to us and nothing is done, what other means do we have other than Abolition?

In the eyes of the state, black people are seen as a commodity, not something that they represent, but something that they use when they need too and dispose of us when we aren’t required anymore. We are not seen as human in the country’s eyes, so why would a state actor actually represent us and our needs? How would the figurehead of the country not see us as anything but socially dead? When another black brother or sister dies, they see that as a side effect of the system. Instead of looking toward Abolition, they look towards performative action to subside the masses, and in the best scenario, they think that minor reforms will solve the issue. Arresting a police officer after they have killed a black person is not justice. Justice is a system that doesn’t allow that killing to happen in the first place. Justice is living in a system where you don’t have to worry about structural violence and gratuitous violence daily. There will never be justice in a system that feeds off of black death. We shouldn’t expect politicians, courts, voting booths, and other state-run apparatuses to do anything other than uphold anti-blackness. The state’s only goal is self-preservation. Whether that is defending capitalism, white supremacy, the (cis-hetero)patriarchy, and any other tentacles of oppression, it will do anything to stay intact. 

With talks of politicians being pushed left, I wonder how. If you look outside and see black bodies slain every day and aren’t moved left, what will move you? When we have had protest throughout the country since the killing of George Floyd, Ahmaud Arbery, and Breonna Taylor, these politicians haven’t moved to the left an inch. In some cases, they are moving to the right. In the case of Minneapolis, change only came because of the destruction of property. Does the destruction of property outweigh the killing of an innocent black body? How many black bodies have to pile up before they wake up and realize that we need different solutions. Police without body cams kill us. Police with body cams kill us. No matter what reform we try to make, the police still are killing us. America is inherently anti-black. It is a country founded off the backs of Native Genocide and Slavery. Every single institution founded in the U.S. was based on racism and oppression. From the foundation of police deriving from slave catchers. The Prison Industrial Complex, deriving from slavery. The Immigration system, founded in settler colonialism and the exclusion of Asians. The Supreme Court and its racist rulings. The medical system and experimental surgeries on slave women. The U.S. military and its imperialism that devastates countries to the brink of land degradation, starvation, and death. Every US institution has its founding in either racism, settler colonialism, misogyny, homophobia, and xenophobia, which means that the U.S. itself is a system of oppression that we should work to dismantle. That affects of that foundation is something that we still have to deal with daily. Black people are open to violence on the regular. If the police don’t kill us, we are killed by prisons, homelessness, starvation, disease, and many other forms of violence. Knowing this and seeing this on an everyday basis, what more does a person need to be pushed left. 

If a person is apathetic and sometimes even supports the senseless use of bombings and drone strikes on our brothers and sisters in the Global South, what makes you think they will become susceptible to the calls for the end of death within the country.  How would anyone be held accountable inside of office when we can’t even keep them accountable when running for office. If they won’t meet the voter’s demands when they need our so-called votes to win in the first place, then why would they listen to us when they get into office? Politicians will run on a platform that seemingly seeks to change things when they get in office, but when they get in, they turn their backs on the everyday person. How are we then to hold them accountable? They have gained access to more power. They have gained access to more capital. They have gained access to the most extensive domestic and foreign military apparatus on the planet. They have gained access to the FBI and CIA, which allows them to undermine any effort at resistance or liberation. How will they be held accountable by constituents when the only thing they serve is the White Supremacist Capitalist Patriarchy? How are they going to be held responsible when to maintain the structures that they benefit from and control the production cost is your life? There is no accountability in a system that is set up like that. You cannot expect a change in bourgeoisie politics because the only thing they are beholden to is money. 

How can you make someone acknowledge your humanity? Acknowledge that you have the right to a life free from the threat of death or oppression? We have been trying this for centuries, and it hasn’t worked. Why? It hasn’t worked because the foundation of this country was the foundation of our social death. When slavery emerged in conjunction with blackness, anti-blackness emerged as well. Slavery necessitated the condition for our blackness, because how else could you justify putting someone into slavery unless they aren’t seen as human. How many videos do you need to see black people being shot by the police to believe that we need to abolish the police? Blackness’s participation in civil society is a contradiction because for civil society to exist, blackness has to be subjugated and oppressed. It has to be seen as nonhuman. To validate civil society, you must also validate anti-blackness because one necessitates the other. For a time now, we have invited people to see what is what it’s like to live at the bottom of the totem pole. Most people never take the time to even try to go through what we experience daily, and those that might help here us out do so out of their interest most of the time and come out with small reformist goals. Now that isn’t to knock any effort of reform. We should be advocating for some of our pain and oppression to be alleviated here and now, but in the long term, reform is nothing but fascism, as George Jackson says. You cannot elect and legislate away oppression. Minneapolis proves that when civil society starts to become disrupted, then change might come. Civil society only exists to maintain structures of oppression and normalize oppressive violence and demonize revolutionary violence. 

If a person or party only acknowledges your existence as a commodity or, in this instance, a voting block that allows them to get power, then you are already on the losing side. If you, after decades of loyally supporting them have nothing in return except void representation and worsened oppression, then why are you supporting them in the first place. Bourgeoisie politics will never be a mechanism for change and ending oppression. You cannot legislate away anti-blackness when that is in the foundations of something. It’s either Abolition or oppression. The representatives of the state apparatus don’t see you as anything but a tool for power. You are not human to them. “That is why you will always be open to gratuitous violence, as opposed to violence contingent upon some transgression or crime; and generally dishonored, or disgraced before any thought or action is considered.” If they don’t see you as actual people, then your death at the hands of state-sanctioned violence is nothing but a casualty of their power, and we have had far too many deaths to not fight back anymore. That is why, no matter how many black people die, politicians will not be pushed to the left. To go to the left is to go against the core institutions that they seek to uphold, and if they were to do that, they wouldn’t have power in the first place.

Late-Stage Capitalism and the Pedagogical Resurgence of Anti-Fascism

By Colin Jenkins

This essay originally appeared in Keywords in Radical Philosophy and Education: Common Concepts for Contemporary Movements (2019, BRILL)

Social unrest is a daily part of American life. Between the alarming regularity of mass killings and school shootings and the violent street clashes between right-wing fascists and left-wing anti-fascists, it seems as though America’s chickens are finally coming home to roost. Despite its uniqueness, the United States is heading down the same path as so many hegemonic empires of the past, quickly approaching its demise through a combination of exhaustive military campaigns abroad and chronic neglect of a majority of its citizenry at home. Mainstream American culture is inadvertently responding to its empire’s demise. Dystopian-based “entertainment” is on the rise again, millennials are abandoning the traditional American lifestyle en masse, virtual lives based in gaming culture and social media have seemingly grabbed a hold of many wishing to escape and withdraw from the drudgery of real life, and political poles are becoming more polarized as extremist centrism intensifies to protect the status quo.

While many recognize that something is wrong, most have difficulties pinpointing what it is, let alone what is causing it. The pronounced social unrest and emergence of mainstream nihilism have sparked a cavalcade of typical, cutesy, click-bait articles online, claiming “millennials are killing [insert here]” and pushing for “minimalist lifestyles” while hawking shipping-container homes, and superficial corporate news analysis which resembles more of tabloid “journalism” than anything approaching substance. Even so-called “progressive” movements that have formed within this climate, such as Black Lives Matter, the Poor People’s Campaign, and the Women’s March, have failed to reach a substantive level of resistance by ignoring the roots of the people’s problems while insisting on operating within the narrow confines of the mainstream political arena.

The good news is that these social phenomena are not mysterious forces rising out of thin air. They have roots. They have causes. And with multiple political forces coming to a head, many are starting to not only search for these causes, but are starting to identify them. The sudden resurgence of socialism in the United States – after laying dormant since the counterinsurgency of the US government during the 1960s, which resulted in violent state repression against radical resistance groups, the subsequent “Reagan revolution” and rise of the neoliberal era, and Francis Fukuyama’s infamous suggestion that “history had ended” — signifies a much-needed counter to capitalist culture. The wave of counter-hegemony that has come with it defies capitalism’s insistence that we are nothing but commodities — laborers and consumers born to serve as conduits to the rapid upward flow of profit — and has begun to construct a wall against the spread of fascism that is inevitable with late-stage capitalism, as well as a battering ram that seeks to bring this system to its knees once and for all.

Capitalism’s Destructive Path

Humanity has been on a collision course with the capitalist system since its inception. While Marx’s famous prediction that capitalists would eventually serve as their own gravediggers has been delayed by a multitude of unforeseen forces, most notably the overwhelming power and adaptability of the imperialist and capitalist state, it is nonetheless charging toward fruition. As the term “late-stage capitalism” has become widely used among the American Left, it is important to understand what it is referring to. This understanding may only come through systemic and historical analysis, and especially that of the basic mechanisms of capitalism, the social and economic conditions that birthed capitalism, and the subsequent stages of capitalism over the past few centuries.

Referring to capitalism as being in a “late stage” is based on the understanding that the system – with all of its internal contradictions, its tendency to concentrate wealth and power into the hands of a few, and its increased reliance on imperialism and domestic control – is nearing an inevitable implosion. However, the implication that capitalism naturally develops on a path toward fascism is both accurate and potentially misleading. On one hand, this idea suggests that capitalism, in its most basic state of operating, does not already possess inherent fascistic qualities. This is incorrect, and it’s important to understand this. Capitalism, in its orthodoxy, is a system that relies on authoritative, controlling, and exploitative relationships, most notably between that of capitalists and workers. The latter, in its need to survive, must submit itself to wage labor. The former, in its wanting to accumulate a constant flow of profit, uses wage labor as a way to steal productivity from the worker in a perpetual cycle that moves wealth upwards into a relatively tiny sector of the population, while simultaneously impoverishing the masses below. Scientific socialists have always known this to be true, and now that the trickery of “trickle-down economics” has been exposed, many others are beginning to realize it.

Capitalism’s authoritative tendencies are far-reaching throughout a society’s development. Because of this, the system has relied upon and reproduced social inequities that fortify its economic woes. Friedrich Engels touched on its effects for the family unit in The Origin of the Family, Private Property and the State, Silvia Federici brilliantly illustrated its reliance on patriarchy in Caliban and the Witch: Women, the Body, and Primitive Accumulation, the emergence of social reproduction theory has provided insight on the layers of exploitation that effect women in the home, and many have written about the cozy relationship between capitalism and white supremacy, most importantly noting that the system’s birth in the Americas relied heavily upon the racialized chattel slave system. In fact, it is impossible to accurately discuss the inherent problems of capitalism without discussing its propensity to drive social oppression in a variety of forms. If oppression can be defined as “the absence of choices,” as bell hooks once said, then our default status as members of the proletariat is oppression. And when compounded with other social constructs such as patriarchy, white supremacy, heteronormativity, and able-bodiedness, this oppression becomes even more pronounced and marginalizing.

The inherent fascism built into capitalism is rooted in wage labor, which is maintained through coercive means. This coercion that drives capitalism comes from the dispossession of the masses of people from not only the means of production, but also from the means to sustenance and land. The Enclosure Acts tell us all we need to know about this foundation. The fact that feudal peasants had to be forced to participate in wage labor through a legislative destruction of the commons, which kicked them off the land and immediately transformed human needs from basic rights to commodities, says a lot about the requisite landscape of a capitalist system. As such, feudal peasants in Europe viewed capitalism as a downgrade. They were consequently prodded into factories and mills like cattle. In many other parts of the world, stripping entire populations of sustenance for the sake of private property was unheard of. Yet capitalism required this mass dispossession in order to proceed on its desired path. Thus, “between 1604 and 1914, over 5,200 individual enclosure acts were passed, covering 6.8 million acres of land,” all designed to systematically erase the idea of common land. (Parliament of UK)

Understanding that capitalism is a system built on a foundation of oppression, and that it operates on natural internal mechanisms of coercion and exploitation, allows us to also understand that its development has not created these qualities, but rather intensified them. Therefore, the idea of “late-stage capitalism” makes sense from an analytical point of view, as it simply refers to an evolutionary path that has brought its nature to the forefront and, most importantly, in doing so, has resulted in severe consequences for the majority of the global population. And whether we’re talking about late-stage capitalism, or monopoly capitalism, or corporate capitalism, or “crony capitalism,” it all refers to the same thing: capitalism’s natural conclusion. A natural conclusion that is a breeding ground for fascism.

Realizing Fascism

“When the bourgeoisie sees that power is slipping out of its hands, it brings up fascism to hold onto its privileges.” - Buenaventura Durruti

There are many definitions and aspects of and to fascism, but perhaps the best way to identify it is as an effect. In terms of capitalism, the development and strengthening of fascistic tendencies are tied directly to the sociopolitical structures that form in its defense. Or as Samir Amin puts it, “Fascism is a particular political response to the challenges with which the management of capitalist society may be confronted in specific circumstances.” (Amin, 2014) But this only describes one of the major aspects of fascism – that being the systemic and structural; or more specifically, the capitalist system and the capitalist state that naturally forms to protect and promote it. There is also a cultural aspect to fascism that forms from within the populace. It is shaped by structural operations, being the main force of culture, and it manifests as an emotional and defensive response from individuals within this system that naturally coerces, exploits, and dispossesses them from their ability to sustain. In other words, the mass insecurity that stems from capitalism naturally produces reactionary responses of misdirected angst from the people it serves, or rather disserves.  

During these late stages of capitalism, “fascism has returned to the West, East, and South; and this return is naturally connected with the spread of the systemic crisis of generalized, financialized, and globalized monopoly capitalism.” (Amin,2014) The reactionary, right-wing response to the capitalist degradation of society is to target the most vulnerable of that society, viewing them as “drains” on public resources without realizing that such resources have been depleted by the pursuit for profit from those above, and most intensely during the era of neoliberalism, which opened the door for rampant greed to extract nearly everything of value from society in the name of privatization. In this structural sense, fascism comes to its complete fruition through a blindness that develops under capitalist culture, whether intentional or subconscious; a blindness that seeks every type of remedy imaginable for the problems created by the system without ever questioning the system itself.

The fascist regimes that surface during these times of crisis “are willing to manage the government and society in such a way as not to call the fundamental principles of capitalism into question, specifically private capitalist property, including that of modern monopoly capitalism.” (Amin, 2014) And that is why fascism intensifies under this pretense of “managing capitalism” and not simply in “political forms that challenge the latter’s legitimacy, even if ‘capitalism’ or ‘plutocracies’ [are] subject to long diatribes in the rhetoric of fascist speeches.” (Amin, 2014) This shows how the fascist tide is fundamentally structural; and the cultural developments that parallel it do so as a byproduct of capitalism’s systemic failures. Because of this, analyses “must focus on these crises.” And any focus on these systemic crises must also focus on the fundamental coercion inherent in the system’s productive mechanisms — that which former slave and American abolitionist Frederick Douglass once referred to as “a slavery of wages only a little less galling and crushing in its effects than chattel slavery,” and “a slavery of wages that must go down with the other.”

The notion of wage slavery has been all but lost over the course of the last century. Once understood among the masses as a common-sense recognition of capitalist coercion, it has given way to the insidious nature of capitalist propaganda, which intensified in a very deliberate way after the cultural revolution of the 1960s, culminating in a neoliberal wave that has dominated since. While the originators of anti-capitalist theory and scientific socialism had exposed this form of slavery inherent in the system – with Marx referring to workers as “mere appendages to machines,” and Bakunin illustrating its ever-shifting nomenclature, from “slavery” to “serfdom” to “wage earners” – there was a brief resurgence of this analysis in the 1960s and 70s, from a variety of leftist radicals. One of the most under-appreciated of these analyses was the one provided by the imprisoned Black Panther, George Jackson, who in his extensive works made reference to the condition of “neo-slavery” that plagued the working-class masses. In a rather lengthy excerpt from Soledad Brother: The Prison Letters of George Jackson, Jackson uncovered the forgotten importance of this coercive element that drives capitalism:

“Slavery is an economic condition. Today’s neo-slavery must be defined in terms of economics… [in the days of chattel slavery], the slaveowner, in order to ‘keep it (the slave) and enjoy all of the benefits that property of this kind can render, he must feed it sometimes, he must clothe it against the elements, he must provide a modicum of shelter.’ The ‘new slavery (capitalism), the modern variety of chattel slavery updated to disguise itself, places the victim in a factory or in the case of most blacks in support roles inside and around the factory system (service trades), working for a wage. However (in contrast to chattel slavery), if work cannot be found in or around the factory complex, today’s neo-slavery does not allow even for a modicum of food and shelter. You are free – to starve.

…The sense and meaning of slavery comes through as a result of our ties to the wage. You must have it, without it you would starve or expose yourself to the elements. One’s entire day centers around the acquisition of the wage. The control of your eight or ten hours on the job is determined by others. You are left with fourteen to sixteen hours. But since you don’t live at the factory you have to subtract at least another hour for transportation. Then you are left with thirteen to fifteen hours to yourself. If you can afford three meals you are left with ten to twelve hours. Rest is also a factor in efficiency so we have to take eight hours away for sleeping, leaving two to four hours. But – one must bathe, comb, clean teeth, shave, dress – there is no point in protracting this. I think it should be generally accepted that if a man or woman works for a wage at a job that they don’t enjoy, and I am convinced that no one could enjoy any type of assembly-line work, or plumbing or hod carrying, or any job in the service trades, then they qualify for this definition of neo-slave.

…The man who owns the [business] runs your life; you are dependent on this owner. He organizes your work, the work upon which your whole life source and style depends. He indirectly determines your whole day, in organizing you for work. If you don’t make any more in wages than you need to live (or even enough to live for that matter), you are a neo-slave.” And most of us who find ourselves in this precarious position as a working-class person under capitalism have no mobility, whether in a literal or figurative sense. We are “held in one spot on this earth because of our economic status, it is just the same as being held in one spot because you are the owner’s property.” (Jackson, 1994)

The era of neoliberalism, with its insistence of re-imagining laissez-faire economics, has revved up the authoritarian and oppressive underpinnings of the capitalist system by loosening historical constraints stemming from the age-old social contract — the idea that bourgeois governments had a minimal degree of responsibility for the well-being of their citizenries. In the United States, this has amounted to private entities (individuals, corporations, conglomerates) accumulating unprecedented amounts of wealth and power over the course of a few decades, while the majority of people have been thrown to the wolves. During this process, the structural basis of fascism – the merger of corporate and governmental power – has been fully realized, buoyed by the internal coercion of the capitalist system.

The Pedagogical Resurgence of Anti-Fascism

As capitalism’s internal contradictions continue to drive us deeper into a fascist reality, counter-hegemonic movements have aptly pivoted into anti-fascist forces. The most visible of these forces has been the anarchist-led “antifa,” which cracked into the mainstream-US consciousness during its numerous street clashes with reactionary groups during and after Donald Trump’s electoral rise. By heeding to a strategic tactic known as “no-platforming,” these black-clad resistance fighters deploy offensive attacks against both fascist speakers/leaders and marches to prevent them from gaining a public platform and, thus, legitimacy and momentum.

In a 2017 piece for In These Times, Natasha Lennard explained the philosophy behind no-platforming, how it extends from an all-encompassing radical abolitionist movement, and how it differs from liberalism:

“While I don’t believe we can or should establish an unbendable set of rules, I submit that a best practice is to deny fascist, racist speech a platform. It should not be recognized as a legitimate strand of public discourse, to be heard, spread and gain traction. And we must recognize that when the far Right speaks, the stage becomes an organizing platform, where followers meet and multiply. For this, we should have no tolerance.

No-platforming is only useful if it is contextualized in a broader abolitionist struggle, which recognizes that white supremacy will not do away with itself by virtue of being ‘wrong.’ Surely by now liberals have realized the folly in assuming justice is delivered by ‘speaking truth to power’? Power knows the truth, and determines what gets to be the regime of truth. The ‘truth’ of racial justice will not be discovered, proved or argued into lived actuality, but fought for and established.” (Lennard, 2017)

The physical tactics carried out under “no-platforming” are only a small part of a broader movement. While anti-fascists continue to confront fascists in the streets, a pedagogical resurgence of anti-fascism must continue to guide the movement as a whole by providing an intellectual, philosophical, and strategic battle plan. This plan must include: (1) a deep understanding of systemic forces generating from capitalism, imperialism, and white supremacy; (2) an understanding of power dynamics and the need to form and deploy power effectively; (3) an understanding of the two major fronts of the anti-fascist war, which include the systemic and upward-focused class war and the anti-reactionary, horizontally-focused culture war; (4)an understanding of anti-capitalist ideology, including but not limited to Marxism, socialism, and anarchism; and, most importantly, (5) a mass push for class consciousness.

Class Consciousness

Building class consciousness is the most crucial task of our time, being citizens within the capitalist and imperialist empire that is the United States, facing down the impending fascist tide, and attempting to confront and defeat this tide along with the capitalist and imperialist systems as a whole. Recalibrating a working class that has been deliberately detached from its role is imperative. Regardless of how one prefers carrying out this task, whether through the formation of a vanguard of trained cadre or a direct engagement toward mass consciousness, it must be carried out within the proletariat itself, where much of capitalist and reactionary culture has become blindingly influential. This must be done not by rejecting theory and deeming it “too elite and alien for the masses,” but rather by embracing the organic intellectualism that is inherent within the masses and serving as facilitators to awaken this abundance of untapped potential. This must be done by realizing the working class is more than capable of thinking, understanding, and comprehending our position in society, if only given the chance to do so, free from the capitalist propaganda that drowns and consumes us.

In creating a working-class culture that not only embraces its inherent intellectualism, but does so in a way that explicitly challenges the dominant intellectual orthodoxy that fortifies capitalist relations, we may look to Gramsci, the Italian Marxist who provided a clear and convincing relationship between counter-hegemony and working-class, or organic, intellectualism that is rooted in “spontaneous philosophy”:

“It is essential to destroy the widespread prejudice that philosophy is a strange and difficult thing just because it is the specific intellectual activity of a particular category of specialists or of professional and systematic philosophers. It must first be shown that all [people] are ‘philosophers,’ by defining the limits and characteristics of the ‘spontaneous philosophy’ which is proper to everybody. This philosophy is contained in:  (1) language itself, which is a totality of determined notions and concepts and not just of words grammatically devoid of content; (2) ‘common sense’ and ‘good sense’; and (3) popular religion and, therefore, also in the entire system of beliefs, superstitions, opinions, ways of seeing things and of acting, which are collectively bundled together under the name of ‘folklore.’” (Gramsci, 1971)

The formation of class consciousness, therefore, rests on this notion, sprouts from the lived experience of proletarian life in the capitalist system, and may essentially replace Gramsci’s already-existing third parameter of “popular religion,” by simply substituting “folklore” with a materialist perspective. This process reminds us of Fred Hampton’s insistence that we proceed in “plain, proletarian English,” which is not to say that revolutionaries must “dumb down” their message in order to appeal to the masses, but rather return revolutionary theory to where it belongs: within working-class culture. Prior to Gramsci and Hampton, Marx had already gone through this process of realizing the existence of organic intellectualism. This process, the subsequent views that developed within Marxist circles throughout the 20th century, and the sometimes-regressive ideology that formed from such is effectively illustrated by Raya Dunayevskaya’s critique of Jean-Paul Sartre in her book, Philosophy and Revolution: From Hegel to Sartre, and from Marx to Mao:

“Methodologically, Sartre’s organic petty-bourgeois inability to understand what it is that Marx meant by praxis has nothing whatever to do with the Ego, much less with not being able ‘to read’ Marx. It has everything to do with his isolation from the proletariat.

The very point at which Sartre thinks that Marx, because he had to turn to ‘clarifying’ practice, stopped developing theory is when Marx broke with the bourgeois concept of theory and created his most original concept of theory out of ‘history and its process,’ not only in the class struggles outside the factory but in it, at the very point of production, faced with the ‘automation’ which was dominating the worker transforming him into a mere ‘appendage.’ Marx’s whole point what that the worker was thinking his own thoughts, expressing his total opposition to the mode of labor instinctually and by creating new forms of struggle and new human relations with his fellow workers. Where, in Marx, history comes alive because the masses have been prepared by the daily struggle at the point of production to burst out spontaneously, ‘to storm the heavens’ creatively as they had done in the Paris Commune, in Sartre practice appears as inert practicality bereft of all historic sense and any consciousness of consequences. Where, in Marx, Individuality itself arises through history, in Sartre History means subordination of individual to group-in-fusion who alone know where the action is. Sartre the Existentialist rightly used to laugh at Communists for thinking man was born on his first payday; Sartre ‘the Marxist’ sees even as world-shaking an event as the Russian Revolution, not at its self-emancipatory moment of birth with its creation of totally new forms of workers’ rule – soviets – but rather at the moment when it was transformed into its opposite with Stalin’s victory, the totalitarian initiation of the Five-Year Plans with the Moscow Frame-Up Trials and forced-labor camps.” (Dunayevskaya, 2003)

Organic Intellectualism and Political Consciousness

The process of tapping organic intellectualism is perhaps best described by Paulo Freire in his crucial text, Pedagogy of the Oppressed. To Freire, revolutionary class consciousness can only be realized through an embrace of radicalism, or as Angela Davis once phrased it, “simply grasping things at the root.” Applying our intellectualism and relating it to our lived experiences is only a partial awakening on the revolutionary path. To complete the transition, understanding the roots, or systems, that represent the foundational causes of our problems is crucial, not only for identifying the magnitude of the ultimate solution, and thus avoiding spending time and energy on inconsequential activities, but also for understanding that there is a solution. “The more radical the person is, the more fully he or she enters into reality so that, knowing it better, he or she can transform it,” Freire tells us. “This individual is not afraid to confront, to listen, to see the world unveiled. This person is not afraid to meet the people or to enter into a dialogue with them. This person does not consider himself or herself the proprietor of history or of all people, or the liberator of the oppressed; but he or she does commit himself or herself, within history, to fight at their side.” (Freire, 2014)

With this realization in mind, we can better understand the four levels of consciousness and identify the pedagogical route, or remedies, that can be applied to ourselves and others. From the “magical consciousness,” where political impotence is maintained by inconceivable forces like gods and mythology, through the “naive consciousness,” where the material world becomes realized, and our interactions with others, with nature, within society, begin to take on some semblance of control, to “critical consciousness,” which introduces four distinct qualities that may be applied to this material reality: power awareness, or knowing and recognizing the existence of power and who possesses power in society; critical literacy, which leads to the development of analysis, writing, thinking, reading, discussing, and understanding deeper meaning; de-socialization, which allows one to recognize and challenge forms of power; and self-organization/self-education, which amounts to taking initiative to overcome the anti-intellectualism and indoctrination of capitalist “education.” (Wheeler, 2016; Daily Struggles, 2018) And, finally, the realization of a “political consciousness,” or class consciousness, which brings us to the understanding of a shared reality with most others, as well as the need for collective struggle to break our interlocking chains of oppression.

Ultimately, the path through these levels of consciousness are about power; moving from an impotent position to a powerful position — a powerful position that can only be forged through the realization of collective struggle. Freire describes this transition as a break from the “banking concept of education” that is designed to perpetuate ignorance to a critical pedagogy that is designed to empower the oppressed; a pedagogical process that, again, can only be carried out in a proletarian environment:

“In their political activity, the dominant elites utilize the banking concept to encourage passivity in the oppressed, corresponding with the latter's ‘submerged’ state of consciousness, and take advantage of that passivity to ‘fill’ that consciousness with slogans which create even more fear of freedom. This practice is incompatible with a truly liberating course of action, which, by presenting the oppressors slogans as a problem, helps the oppressed to ‘eject’ those slogans from within themselves. After all, the task of the humanists is surely not that of pitting their slogans against the slogans of the oppressors, with the oppressed as the testing ground, ‘housing’ the slogans of first one group and then the other. On the contrary, the task of the humanists is to see that the oppressed become aware of the fact that as dual beings, ‘housing’ the oppressors within themselves, they cannot be truly human.

This task implies that revolutionary leaders do not go to the people in order to bring them a message of ‘salvation,’ but in order to come to know through dialogue with them both their objective situation and their awareness of that situation—the various levels of perception of themselves and of the world in which and with which they exist. One cannot expect positive results from an educational or political action program which fails to respect the particular view of the world held by the people. Such a program constitutes cultural invasion, good intentions notwithstanding.” (Freire, 2014)

And this task must be done in a collective manner, with the clear intention of not only challenging power, but creating our own collective, working-class power that has the potential to destroy the existing power structure emanating from authoritative systems like capitalism, imperialism, white supremacy, and patriarchy. After all, “freedom is acquired by conquest, not by gift,” and “nobody liberates themselves alone; human beings liberate themselves in communion.” (Freire, 2014)

Understanding Collective Power, Separating Radical from Liberal, and Exposing Centrist Extremism and Horseshoe Theory

“There is a whole apparatus that controls the presidency that is absolutely resistant to change. Which isn’t to excuse Obama from taking bolder steps. I think there are steps that he could have taken had he insisted. But if one looks at the history of struggles against racism in the US, no change has ever happened simply because the president chose to move in a more progressive direction. Every change that has happened has come as a result of mass movements – from the era of slavery, the Civil War, and the involvement of Black people in the Civil War, which really determined the outcome. Many people are under the impression that it was Abraham Lincoln who played the major role, and he did as a matter of fact help to accelerate the move toward abolition, but it was the decision on the part of slaves to emancipate themselves and to join the Union Army – both women and men – that was primarily responsible for the victory over slavery. It was the slaves themselves and of course the abolitionist movement that led to the dismantling of slavery. When one looks at the civil rights era, it was those mass movements – anchored by women, incidentally – that pushed the government to bring about change.” (Davis, 2016)

This excerpt is from an interview with Angela Davis, where she shares some knowledge on how to deal with power. Davis’s point is that people create and force change, collectively and from the bottom. This is an inherently radical perspective that comes from a development of political consciousness and the realization that representative democracy, in all of its supposed glory, is a reactionary system that has rarely if ever carried through on its “democratic” advertisement. It is a radical perspective that comes from a place of understanding why and how the founding fathers, in all of their land-owning, slave-owning elitism, chose this system of governing: “to protect,” as James Madison put it, “the opulent of the minority against the majority.” (Madison, 1787)

Davis’s point is reiterated by Noam Chomsky, in his peculiar declaration that Richard Nixon was “the last liberal President” of the United States — a statement that also comes from a radical perspective which realizes the systemic influence of capitalism and, more specifically, of the intensified capitalist period known as neoliberalism. And it comes from an understanding that Nixon the man, cantankerously racist and temperamentally conservative, did not create the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA), set employment quotas on affirmative action programs, propose employer-funded healthcare, sign the Fair Labor Standards Act, and approve a series of regulations on big business because he personally championed these causes, or even believed in them. (Conetta, 2014; Fund, 2013) Rather, he was pressured from below, in the same way that Reagan, the Bushs, Clinton, and Obama have been pressured from above to enact and maintain the corporate stranglehold on politics ever since.

Systemic pressure always supplants personal philosophies, beliefs, ideologies, and preferences; and our systemic default, which is predetermined by the capitalist order, will always prevail over electoral and representative politics. Political consciousness exposes this fact, separating radical from liberal. The cases of Lincoln and Nixon, while signifying how pressure from below can force change, are outliers. They were chinks in the system. And since Nixon, these chinks have seemingly been fortified by the “whole apparatus that controls the presidency that is absolutely resistant to change.” The legislation passed by Nixon, as well as the legislation that came about through the New Deal era, the “Great Society,” and Civil Rights movement of the 1960s, have all been tamed by this apparatus. Our environmental crisis has intensified, white-supremacist terror remains prevalent in American streets, economic inequality has reached unprecedented levels, and our racialized prison industrial complex has grown by a rate of over 600 percent since the Civil Rights movement – all realities suggesting that “progressive” legislation is ultimately toothless. Thus, any reforms that develop through the electoral system, as a result of pressure from the bottom, are ultimately curtailed and circumvented by capitalism’s economic base, which always seeks to undermine a common good in the pursuit of never-ending growth and profit. The so-called “liberal reforms” that occurred during the Nixon years were largely rendered useless during the proceeding neoliberal era, which represents a deliberate plan to unleash the capitalist system.

This fact does not render grassroots power useless; it merely suggests that it needs to be redirected. Returning to Davis’s comments, the case of Abraham Lincoln is perhaps one of the best examples of the impotence built into the political system. Lincoln the individual had vacillated on his stance regarding slavery, expressing personal “dislike” for the institution and even displaying empathy for slaves (Lincoln, 1855) during a time when such empathy was often lost on many Americans. At the same time, Lincoln the president recognized his duty to protect the rights of slaveowners as the executive administrator of the United States and its constitution, and ultimately admitted that his institutional duty, which was to “save the Union” and maintain the power structures as created by the founders, even if it meant that slavery would stay intact, far outweighed any personal misgivings he may have had toward slavery. The same logic, when coming from cogs within the power structure, can be applied to capitalism and imperialism, and has been for centuries.

Both Nixon’s and Lincoln’s yield to external pressure illustrates two important points: (1) the personality, ideological leanings, and personal beliefs of a politician, even if the most powerful politician, have no real consequence within the US political system; and (2) the foundation of US politics and government, as arranged by the founders of the country, will never allow for genuine democratic elements to materialize. The first point often represents the most telling demarcation between radical and liberal, with the former realizing this fact, and the latter unable to realize and thus placing focus on individual identity. Because of the liberal’s inability to understand this systemic reality, damaging electoral strategies such as “lesser-evilism” have established a firm place in the American political arena, inevitably causing a gradual deterioration toward more reactionary political platforms designed to protect the decaying capitalist system, which in modern times translates to a very real fascistic slide. Hence, we now have modern Democratic Party politicians that resemble 1970s/80s conservatives, and Republicans that continue to push the envelope of fascism.

Since Nixon, the flock of modern presidents who have bent the knee to multinational corporate and banking power further illustrate the utter insignificance of identity; ironically, during a political era where “marketing personalities” is usually the only determinate for “success.” This contradiction cannot be understated, and it is an accurate barometer that can be used to measure class/political consciousness in the United States, or the lack thereof. Ironically, the fact that voter turnout throughout the country has maintained such low levels during the tail-end of the neoliberal era and late-stage capitalism is a sign that class and political consciousness are actually rising. For when the working class realizes en masse that there is no change coming through electoral politics, and thus have shed the capitalist elite’s “banking concept,” we know that revolutionary change is on the horizon. And any such period must include mass education and a mass movement toward political consciousness – an understanding once echoed by Lucy Parsons: “[radicals] know that a long period of education must precede any great fundamental change in society, hence they do not believe in vote begging, nor political campaigns, but rather in the development of self-thinking individuals.” (Lewis, 2017) Self-thinking, in this case, simply means realizing our inherent political consciousness that is based in our material position in the socioeconomic system beyond the construction and obstruction of capitalist ideology and culture.

As we collectively separate ourselves from a mainstream political arena that has been established to ensure our continued demise as working-class people, we also must be wary of blowback from the system. The most common response to a delegitimizing of the power structure is an appeal to authority, safety, and stability. This defensive posture forms from within the power structure, with corporate-political unity between both major political parties, in an attempt to construct an extremist center. At this stage, the extremist center has one task at hand — to protect the status quo at all costs. In the US, this means keeping the white-supremacist capitalist/imperialist system intact, as well as the bourgeois class that both maintains these systems and benefits from them. To do so, this extremist center exploits the fear of instability in order to build mass support, labels both fascist and anti-fascist ground movements as enemies of the state (although does not necessarily respond to them in the same ways), indecipherable from one another in their mutual “extremism,” and proceeds with an all-out attack on civil liberties in order to suppress popular movements that may challenge the embedded systems.

We have seen this response materialize over the past decade. In the aftermath of 9/11, civil liberties have been systematically removed from members of both political parties. During the street clashes between white nationalists and anti-fascists, we witnessed politicians from both parties as well as media denounce “both sides” as extremists, creating a convenient false dichotomy that completely ignores the most common-sense discussion – what the two sides actually believe in or are trying to accomplish.  And we have seen “horseshoe theory” enter into the mainstream arena as “philosophical justification” for this false dichotomy.  “In the current state of things, the electoral successes of the extreme right stem from contemporary capitalism itself. These successes allow the media to throw together, with the same opprobrium, the ‘populists of the extreme right and those of the extreme left,’ obscuring the fact that the former are pro-capitalist (as the term ‘extreme right’ demonstrates) and thus possible allies for capital, while the latter are the only potentially dangerous opponents of capital’s system of power.” (Amin, 2014) The result of this has been a strengthening of the system as we know it, a virtual circling of the wagons around our reality of corporate politics, inequality, joblessness, homelessness, racism, misogyny, and all of the oppressive social phobias that accompany them.  Still, the resistance looms, it is radical in nature, and it is growing.

Conclusion

The current state of the world — socially, politically, economically, and environmentally — indicates that we have entered the late stages of the global capitalist system. In the heart of the capitalist empire, the United States, social unrest has become the norm. Capitalism’s systemic contradictions, as well as its coercive and authoritarian core, have become increasingly uncontrollable for the country’s capitalist political parties. Social inequities are becoming more pronounced, the political arena is showing irregularities like never before, and an overtly fascist tide is starting to rear its ugly head.

The American working class has responded in various ways. On one side, reactionary mentalities have intensified among hordes of newly-dispossessed whites, thus leading them into the arms of the state’s fascist slide. On another side, a mass awakening has developed among many who have decided instead to tap into our organic intellectualism, turn to radical analysis, and return to anti-capitalist, anti-imperialist, and anti-racist class politics. In response to the fascist tide, a formidable wave of anti-fascist action has sprung to life. To bolster this, a pedagogical resurgence of anti-fascism has formed both organically and through the forging of this new collective political and class consciousness. Rosa Luxemburg’s 1916 ultimatum has suddenly reached the ears of many within the American working class – will we transition away from capitalism and toward socialism, or will we regress further into barbarism?

Capitalism, imperialism, and white supremacy know where they stand. Politicians from both capitalist parties have regrouped to form and extreme center. Corporate executives, bankers, bosses, business owners, arms manufacturers, hedge-fund operators, landlords, military officials, police, and the prison industry have all placed their bets on barbarism. The ball is now in our court. The time is ripe for the people to seize power, but the process of a political awakening, anchored by a mass shaping of class consciousness, must gear up. And, most importantly, our army must be built from the ground-up, from within the proletariat, with the understanding that we are all leaders in this struggle.

A war for consciousness must continue, and must be won, while we proceed in building mass political power. And this must be done with an all-out rejection of capitalist culture and the conditioned mentality that comes with it, because the people’s struggle is doomed to fail if it does not develop “a consciousness of the insidious promotion of capitalist individualism.” In doing so, “it is essential to resist the depiction of history as the work of heroic individuals in order for people today to recognize our potential agency as a part of an ever-expanding community of struggle.” (Barat, 2014) We are on the precipice. The world and its future literally rest on our collective shoulders.

All power to the people.

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