Social Economics

Post-Pandemic America: Prelude to Socialism or Fascism?

By Werner Lange

May 8 marks the 75th anniversary of the defeat of fascism in Europe, a historic victory over modern despotism that catapulted American capitalism to world domination by default. As the only combatant country with its cities and infrastructure left intact, the United States emerged from this colossal bloodbath as the single most potent economy on earth. Europe, especially Germany, lay in utter ruins and tens of millions, half of them civilians, lay in early graves. By contrast, the US economy flourished adding some 11 million jobs within the seven years following the war; the minimum wage increased; the poverty rate fell; farm incomes, dividends and corporate profits hit all-time highs; and bank failures along with unemployment had all but disappeared. American capitalism entered a Golden Age.

Fast forward to 2020, and suddenly everything has changed with the explosive advent of another worldwide war, an unprecedented and unforeseen one against an invisible enemy wreaking havoc upon the health and welfare of nearly every nation on earth, especially the USA. The tables have turned, irrevocably. No nation has been hit harder by this insidious invasive enemy than America; and none has suffered more from gross government malfunction and dire social dysfunction. The glittering structure built by American capital since its brief golden age exposed itself in this pandemic to be a top- heavy house of cards on the verge of collapse. What follows the coming collapse is open to debate. Objective forces favor socialism, but subjective ones point toward fascism.

The US economy suddenly hit a solid brick wall this fateful year bringing large sectors to a virtual standstill and driving countless small businesses into bankruptcy. The GDP fell by nearly 5% in the first quarter and is conservatively estimated to minimally shrink at annual rate of 30%, a disastrous decline not experienced since the Great Depression. As of early May, well over 30 million American workers have applied for unemployment insurance, and overwhelmed agencies are hard-pressed to deliver the desperately needed relief on time. Millions more, those either ineligible for such temporary survival compensation or blocked from applying, are also jobless and face destitution. The official unemployment rate, a gross underestimate of actual joblessness, stands at 17% and will likely skyrocket to well over 30% by summer, exceeding Great Depression levels. Loss of a job translates into loss of health insurance for millions of Americans who are now only one medical problem away from family bankruptcy. Soup lines common during the Great Depression now increasingly appear as miles-long stretches of cars lined up for emergency food supplies.

Whatever safety net there once was to absorb such economic shocks, inhumane concentration of wealth without work and politics without principle, both grave social sins, evaporated it. After some 50 years of steadily increasing class inequality, the richest 400 Americans now own more wealth than the bottom 150 million of us; the 5% at the top of our grossly stratified society own 66% of the nation’s wealth, while nearly 70% of US adults have less than $1,000 in savings and 20% have more credit-card debt than emergency savings; over 16 million Americans have negative net worth and one in four African-American families have zero net wealth. Such obscene concentrations of wealth and glaring gaps of inequality have not been experienced since 1928, right before the Great Depression.

Rather than enhance assistance to victims of this drastic decline, the Trump regime proposed massive cuts to America’s meager welfare programs - SNAP, TANF and WIC - which help keep millions of impoverished citizens from utter destitution. However, when it comes to corporate welfare, the flood gates of public funds are thrown wide open. The recently enacted CARES legislation is a thinly disguised gargantuan gift to America’s super-rich; some $500 billion in so-called loans are simply given to America’s largest corporations with no meaningful oversight or accountability. Because of a tax loophole an additional $1.2 million goes, on average, to 43,000 millionaires each, while struggling Americans may receive a one-time $1200 check. That generous gift to the super-rich comes on top of the $1 trillion generated for them by the 2017 statutory corporate tax rate cut and largely deposited in lucrative stock buybacks. Even during this pandemic billionaire wealth increased by nearly 10% and continues to do so.

At the other end of this unsustainable and unstable pyramid of parasitism are 150 million Americans living from paycheck to paycheck and 40 million officially poor Americans living day from day. An astounding 52% of US children are impoverished or low-income and 11 million children live in food insecure households; 50% of renters spend one-third of their modest income on housing; and some 49 million families carry a collective debt of $1.5 trillion in student loans. The richest country on earth harbors highly volatile levels of toxic financial insecurity on a pandemic trajectory toward eruption.

These objective conditions of unprecedented inequality and insecurity have generated subjective conditions of unprecedented mass frustration increasingly giving rise to displaced aggression, scapegoating directed against the victims not victimizers of the crisis. Every economic decline is coupled with a rise in racism to some degree. Yet the looming collapse of our failing capitalist economy carries with it the potential to unleash and empower even more nefarious social forces. Fascism in America is a possibility, thanks to the openly racist Trump regime and mass false consciousness among its rabid base. To prevent this calamity, defeat of Trump this November is necessary, but not sufficient. The social and psychological roots giving rise to his pathetic presidency and sustained popularity despite its abysmal failures need to be addressed. And these run deep within the American psyche and society. Racism, a stepping stone to fascism when unchecked, remains securely at home within the American social fabric, far beyond Trump’s nationalist base. So does its uterine twin, social darwinism. The coronavirus pandemic has stimulated this ideological virus in forms not witnessed since the heyday of the eugenics movement.

Inspired by resurgent social darwinist thought, there is an expanding willingness to let select populations die from the pandemic just so the ailing capitalist economy may be restored to health. According to the barbaric billionaire in the White House, the cure must not be worse than the disease and holding the pandemic death count to 100,000 would be a “great win”; according to one of his cheerleaders in elected office in Texas, grandparents are willing to die to save the economy; according to a popular right-wing pundit, those dying from the pandemic were on their last legs anyway; and another conservative commentator claims everyone is making “actuarial deductions about the costs” in human lives by lifting lockdown orders. Precious little institutional concern is expressed over the rising body count of prisoners, like the 30 year-old Lakota woman who died in federal custody after giving birth while on a ventilator in late April. To accelerate re-opening the country for business, a group of former health officials recently urged Congress to pay infected low-income Americans $50 per day to self- isolate in empty hotel rooms.

Such passive measures in thinning out the herd, a plan straight out of the social darwinist handbook, are slowly and steadily taking their toll in prisons, jails, nursing homes, VA facilities, warehouses, and food-processing plants throughout our troubled land. A more active approach to thinning and targeting certain cohorts manifested itself recently at several state capitals. Angry protestors, many armed with military assault weapons, demanded an immediate end to pandemic containment policies wisely imposed by state governments. Some invaded state capital buildings brandishing their weapons motivating some legislators to wear bullet-proof vests; others vociferously called for select governors to be locked up or even strung up; and among the ubiquitous Trump/Pence flags were occasional swastikas. While not officially a gang of brown shirts, the armed thugs of intimidation at these right-wing rallies, embraced as “good people” by Trump, are their functional equivalent.

Our embattled country is deeply divided and its political polarization grows with each passing day. Yet there is a way out of the current crisis, one decisively declared by a courageous group of American revolutionaries facing another bitter tyranny: “But when a long train of abuses and usurpations pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government and to provide new Guards for their future security”. If Americans heed this historic patriotic call to duty during this despotism, then a new America, a socialist one, will eventually emerge from the coming collapse of capitalism. If not, the despotism will intensify diabolically and decay into fascism. The struggle continues, and the fate of a people caught in the belly of a wounded beast hangs in the balance.

Revolution in the Twenty-First Century: A Reconsideration of Marxism

By Chris Wright

In the age of COVID-19, it’s even more obvious than it’s been for at least ten or twenty years that capitalism is entering a long, drawn-out period of unprecedented global crisis. The Great Depression and World War II will likely, in retrospect, seem rather minor—and temporally condensed—compared to the many decades of ecological, economic, social, and political crises humanity is embarking on now. In fact, it’s probable that we’re in the early stages of the protracted collapse of a civilization, which is to say of a particular set of economic relations underpinning certain social, political, and cultural relations. One can predict that the mass popular resistance, worldwide, engendered by cascading crises will gradually transform a decrepit ancien régime, although in what direction it is too early to tell. But left-wing resistance is already spreading and even gaining the glimmers of momentum in certain regions of the world, including—despite the ending of Bernie Sanders’ presidential campaign—the reactionary United States. Over decades, the international left will grow in strength, even as the right, in all likelihood, does as well.

Activism of various practical and ideological orientations is increasingly in a state of ferment—and yet, compared to the scale it will surely attain in a couple of decades, it is still in its infancy. In the U.S., for example, “democratic socialism” has many adherents, notably in the DSA and in the circles around Jacobin magazine. There are also organizations, and networks of organizations, that consciously repudiate the “reformism” of social democracy, such as the Marxist Center, which disavows the strategy of electing progressive Democratic politicians as abject “class collaboration.” Actually, many democratic socialists would agree that it’s necessary, sooner or later, to construct a workers’ party, that the Democratic Party is ineluctably and permanently fused with the capitalist class. But the Marxist Center rejects the very idea of prioritizing electoral work, emphasizing instead “base-building” and other modes of non-electoral activism.

Meanwhile, there are activists in the solidarity economy, who are convinced it’s necessary to plant the institutional seeds of the new world in the fertile soil of the old, as the old slowly decays and collapses. These activists take their inspiration from the recognition, as Rudolf Rocker put it in his classic Anarcho-Syndicalism, that “every new social structure makes organs for itself in the body of the old organism. Without this preliminary any social evolution is unthinkable. Even revolutions can only develop and mature the germs which already exist and have made their way into the consciousness of men; they cannot themselves create these germs or generate new worlds out of nothing.” The Libertarian Socialist Caucus of the DSA is one group that identifies with this type of thinking, but there are many others, including the Democracy Collaborative, the Democracy at Work Institute (also this one), Shareable, and more broadly the New Economy Coalition. Cooperation Jackson has had some success building a solidarity economy in Jackson, Mississippi.

The numbers and varieties of activists struggling to build a new society are uncountable, from Leninists to anarchists to left-liberals and organizers not committed to ideological labels. Amidst all this ferment, however, one thing seems lacking: a compelling theoretical framework to explain how corporate capitalism can possibly give way to an economically democratic, ecologically sustainable society. How, precisely, is that supposed to happen? Which strategies are better and which worse for achieving this end—an end that may well, indeed, seem utopian, given the miserable state of the world? What role, for instance, does the venerable tradition of Marxism play in understanding how we might realize our goals? Marx, after all, had a conception of revolution, which he bequeathed to subsequent generations. Should it be embraced, rejected, or modified?

Where, in short, can we look for some strategic and theoretical guidance?

In this article I’ll address these questions, drawing on some of the arguments in my book Worker Cooperatives and Revolution: History and Possibilities in the United States (specifically chapters 4 and 6).[1] As I’ve argued elsewhere, historical materialism is an essential tool to understand society and how a transition to some sort of post-capitalism may occur. Social relations are grounded in production relations, and so to make a revolution it is production relations that have to be transformed. But the way to do so isn’t the way proposed by Marx in the Communist Manifesto, or by Engels and Lenin and innumerable other Marxists later: that, to quote Engels’ Anti-Dühring, “The proletariat seizes state power, and then transforms the means of production into state property.” Or, as the Manifesto states, “The proletariat will use its political supremacy to wrest, by degree, all capital from the bourgeoisie, to centralize all instruments of production in the hands of the State, i.e., of the proletariat organized as the ruling class.”

Instead, the revolution has to be a gradual and partially “unconscious” process, as social contradictions are tortuously resolved “dialectically,” not through a unitary political will that seizes the state (every state!) and then consciously, semi-omnisciently reconstructs the economy from the top down, magically transforming authoritarian relations into democratic ones through the exercise of state bureaucracy. In retrospect, this idea that a “dictatorship of the proletariat” will plan and direct the social revolution, and that the latter will, in effect, happen after the political revolution, seems incredibly idealistic, unrealistic, and thus un-Marxist.

I can’t rehearse here all the arguments in my book, but I’ve sketched some of them in this article. In the following I’ll briefly restate a few of the main points, after which I’ll argue that on the basis of my revision of Marxism we can see there is value in all the varieties of activism leftists are currently pursuing. No school of thought has a monopoly on the truth, and all have limitations. Leftists must tolerate disagreements and work together—must even work with left-liberals—because a worldwide transition between modes of production takes an inordinately long time and takes place on many different levels.

I’ll also offer some criticisms of each of the three broad “schools of thought” I mentioned above, namely the Jacobin social democratic one, the more self-consciously far-left one that rejects every hint of “reformism,” and the anarchistic one that places its faith in things like cooperatives, community land trusts, mutual aid, “libertarian municipalism,” all sorts of decentralized participatory democracy. At the end I’ll briefly consider the overwhelming challenge of ecological collapse, which is so urgent it would seem to render absurd, or utterly defeatist, my insistence that “the revolution” will take at least a hundred years to wend its way across the globe and unseat all the old social relations.

Correcting Marx

Karl Marx was a genius, but even geniuses are products of their environment and are fallible. We can hardly expect Marx to have gotten absolutely everything right. He couldn’t foresee the welfare state or Keynesian stimulation of demand, which is to say he got the timeline for revolution wrong. One might even say he mistook the birth pangs of industrial capitalism for its death throes: a global transition to socialism never could have happened in the nineteenth century, nor even in the twentieth, which was the era of “monopoly capitalism,” state capitalism, entrenched imperialism, the mature capitalist nation-state. It wasn’t even until the last thirty years that capitalist relations of production fully conquered vast swathes of the world, including the so-called Communist bloc and much of the Global South. And Marx argued, at least in the Manifesto, that capitalist globalization was a prerequisite to socialism (or communism).

All of which is to say that only now are we finally entering the era when socialist revolution is possible. The earlier victories, in 1917, 1949, 1959, and so on, did not achieve socialism—workers’ democratic control of the economy—and, in the long run, could not have. They occurred in a predominantly capitalist world—capitalism was in the ascendancy—and were constrained by the limits of that world, the restricted range of possibilities. Which is doubtless why all those popular victories ended up in one or another form of oppressive statism (or else were soon crushed by imperialist powers).

If Marx was wrong about the timeline, he was also wrong about his abstract conceptualization of how the socialist revolution would transpire. As he put it in the Preface to A Contribution to the Critique of Political Economy, “At a certain stage of development, the material productive forces of society come into conflict with the existing relations of production… From forms of development of the productive forces these relations turn into their fetters. Then begins an era of social revolution.” The notion of fettering, despite its criticism by exponents of Analytical Marxism, is useful, but not in the form it’s presented here. For to say that relations of production fetter productive forces (or, more precisely, fetter their socially rational use and development) is not to say very much. How much fettering is required for a revolution to happen? Surely capitalism has placed substantial fetters on the productive forces for a long time—and yet here we all are, still stuck in this old, fettered world.

To salvage Marx’s intuition, and in fact to make it quite useful, it’s necessary to tweak his formulation. Rather than some sort of “absolute” fettering of productive forces by capitalist relations, there is a relative fettering—relative to an emergent mode of production, a more democratic and socialized mode, that is producing and distributing resources more equitably and rationally than the capitalist.

A parallel (albeit an imperfect one) is the transition from feudalism to capitalism. Feudal relations certainly obstructed economic growth, but it wasn’t until a “competing” economy—of commercial, financial, agrarian, and finally industrial capitalism—had made great progress in Western Europe that the classical epoch of revolution between the seventeenth and nineteenth centuries burst onto the scene. Relative to capitalism, feudalism was hopelessly stagnant, and therefore, once capitalism had reached a certain level of development, doomed.

Crucially, the bourgeoisie’s conquest of political power wasn’t possible until capitalist economic relations had already, over centuries, spread across much of Europe. There had to be a material foundation for the capitalist class’s ultimate political victories: without economic power—the accumulation of material resources through institutions they controlled—capitalists could never have achieved political power. That is to say, much of the enormously protracted social revolution occurred before the final “seizure of the state.”

If historical materialism is right, as it surely is, the same paradigm must apply to the transition from capitalism to socialism. The working class can never complete its conquest of the state until it commands considerable economic power—not only the power to go on strike and shut down the economy but actual command over resources, resources sufficient to compete with the ruling class. The power to strike, while an important tool, is not enough. Nor are mere numbers, however many millions, enough, as history has shown. The working class needs its own institutional bases from which to wage a very prolonged struggle, and these institutions have to be directly involved in the production and accumulation of resources. Only after some such “alternative economy,” or socialized economy, has emerged throughout much of the world alongside the rotting capitalist economy will the popular classes be in a position to finally complete their takeover of states. For they will have the resources to politically defeat the—by then—weak, attenuated remnants of the capitalist class.

Marx, in short, was wrong to think there would be a radical disanalogy between the transition to capitalism and the transition to socialism. Doubtless the latter process (if it happens) will take far less time than the earlier did, and will be significantly different in many other respects. But social revolutions on the scale we’re discussing—between vastly different modes of production—are always very gradual, never a product of a single great moment (or several moments) of historical “rupture” but rather of many decades of continual ruptures.[2] Why? Simply because ruling classes are incredibly tenacious, they have incredible powers of repression, and it requires colossal material resources to defeat them—especially in the age of globalized capitalism.

Building a new mode of production

What we must do, then, is to laboriously construct new relations of production as the old capitalist relations fall victim to their contradictions. But how is this to be done? At this early date, it is, admittedly, hard to imagine how it can be accomplished. Famously, it’s easier to imagine the end of the world than the end of capitalism.

But two things are clear. First, a significant amount of grassroots initiative is necessary. The long transition will not take place only on one plane, the plane of the state; there will be a tumult of creative energy on sub-state levels, as there was during Europe’s transition into capitalism. (Of course, in the latter case it was typically to establish predatory and exploitative relations, not democratic or communal ones, but the point holds.) The many forms of such energy can hardly be anticipated, but they will certainly involve practices that have come to be called the “solidarity economy,” including the formation of cooperatives of all types, public banks, municipal enterprises, participatory budgeting, mutual aid networks, and so on. In a capitalist context it is inconceivable that states will respond to crisis by dramatically improving the circumstances of entire populations; as a result, large numbers of people will be compelled to build new institutions to survive and to share and accumulate resources. Again, this process, which will occur all over the world and to some degree will be organized and coordinated internationally, will play out over generations, not just two or three decades.

In the long run, moreover, this solidarity economy will not prove to be some sort of innocuous, apolitical, compatible-with-capitalism development; it will foster anti-capitalist ways of thinking and acting, anti-capitalist institutions, and anti-capitalist resistance. It will facilitate the accumulation of resources among organizations committed to cooperative, democratic, socialized production and distribution, a rebuilding of “the commons,” a democratization of the state. It will amount to an entire sphere of what has been called “dual power” opposed to a still-capitalist state, a working-class base of power to complement the power of workers and unions to strike.

The second point is that, contrary to anarchism, it will be necessary to use the state to help construct a new mode of production. Governments are instruments of massive social power and they cannot simply be ignored or overthrown in a general strike. However unpleasant or morally odious it may be to participate in hierarchical structures of political power, it has to be a part of any strategy to combat the ruling class.

Activists and organizations will pressure the state at all levels, from municipal to national, to increase funding for the solidarity economy. In fact, they already are, and have had success in many countries and municipalities, including in the U.S. The election of more socialists to office will encourage these trends and ensure greater successes. Pressure will also build to fund larger worker cooperatives, to convert corporations to worker-owned businesses, and to nationalize sectors of the economy. And sooner or later, many states will start to give in.

Why? One possible state response to crisis, after all, is fascism. And fascism of some form or other is indeed being pursued by many countries right now, from Brazil to Hungary to India to the U.S. But there’s a problem with fascism: by its murderous and ultra-nationalistic nature, it can be neither permanent nor continuously enforced worldwide. Even just in the United States, the governmental structure is too vast and federated, there are too many thousands of relatively independent political jurisdictions, for a fascist regime to be consolidated in every region of the country. Fascism is only a temporary and partial solution for the ruling class. It doesn’t last.

The other solution, which doubtless will always be accompanied by repression, is to grant concessions to the masses. Here, it’s necessary to observe that the state isn’t monolithically an instrument of capital. While capital dominates it, it is a terrain of struggle, “contestations,” “negotiations,” of different groups—classes, class subgroups, interest groups, even individual entities—advocating for their interests. Marxists from Engels, Kautsky, and Lenin to Miliband and Poulantzas to more recent writers have felled forests writing about the nature of the capitalist state, but for the purposes of revolutionary strategy all you need is some critical common sense (as Noam Chomsky, dismissive of self-indulgent “theorizing,” likes to point out). It is possible for popular movements to exert such pressure on the state that they slowly change its character, thereby helping to change the character of capitalist society.

In particular, popular organizations and activists can take advantage of splits within the ruling class to push agendas that benefit the populace. The political scientist Thomas Ferguson, among others, has shown how the New Deal, including the epoch-making Wagner Act and Social Security Act, was made possible by just such divisions in the ranks of business. On a grander scale, Western Europe’s long transition from feudalism to capitalism was accompanied by divisions within the ruling class, between more forward-thinking and more hidebound elements. (As is well known, a number of landed aristocrats and clergymen even supported the French Revolution, at least in its early phases.) Marx was therefore wrong to imply that it’s the working class vs. the capitalist class, monolithically. This totally Manichean thinking suggested that the only way to make a revolution is for the proletariat to overthrow the ruling class in one blow, so to speak, to smash a united reactionary opposition that, moreover, is in complete control of the state (so the state has to be seized all at once).

On the contrary, we can expect the past to repeat itself: as crises intensify and popular resistance escalates, liberal factions of the ruling class will split off from the more reactionary elements in order to grant concessions. In our epoch of growing social fragmentation, environmental crisis, and an increasingly dysfunctional nation-state, many of these concessions will have the character not of resurrecting the centralized welfare state but of encouraging phenomena that seem rather “interstitial” and less challenging to capitalist power than full-fledged social democracy is. But, however innocent it might seem to support new “decentralized” solutions to problems of unemployment, housing, consumption, and general economic dysfunction, in the long run, as I’ve said, these sorts of reforms will facilitate the rise of a more democratic and socialized political economy within the shell of the decadent capitalist one.

At the same time, to tackle the immense crises of ecological destruction and economic dysfunction, more dramatic and visible state interventions will be necessary. They may involve nationalizations of the fossil fuel industry, enforced changes to the polluting practices of many industries, partial reintroductions of social-democratic policies, pro-worker reforms of the sort that Bernie Sanders’ campaign categorized under “workplace democracy,” etc. Pure, unending repression will simply not be sustainable. These more “centralized,” “statist” reforms, just like the promotion of the solidarity economy, will in the long run only add to the momentum for continued change, because the political, economic, and ecological context will remain that of severe worldwide crisis.

Much of the ruling class will of course oppose and undermine progressive policies—especially of the more statist variety—every step of the way, thus deepening the crisis and doing its own part to accelerate the momentum for change. But by the time it becomes clear to even the liberal sectors of the business class that its reforms are undermining the long-term viability and hegemony of capitalism, it will be too late. They won’t be able to turn back the clock: there will be too many worker-owned businesses, too many public banks, too many state-subsidized networks of mutual aid, altogether too many reforms to the old type of neoliberal capitalism (reforms that will have been granted, as always, for the sake of maintaining social order). The slow-moving revolution will feed on itself and will prove unstoppable, however much the more reactionary states try to clamp down, murder dissidents, prohibit protests, and bust unions. Besides, as Marx predicted, the revolutionary project will be facilitated by the thinning of the ranks of the capitalist elite due to repeated economic collapses and the consequent destruction of wealth.

Just as the European absolutist state of the sixteenth to nineteenth centuries was compelled to empower—for the sake of accumulating wealth—the capitalist classes that created the conditions of its demise, so the late-capitalist state will be compelled, for the purposes of internal order, to acquiesce in the construction of non-capitalist institutions that correct some of the “market failures” of the capitalist mode of production. The capitalist state will, of necessity, be a participant in its own demise. Its highly reluctant sponsorship of new practices of production, distribution, and social life as a whole—many of them “interstitial” at first—will be undertaken on the belief that it’s the lesser of two evils, the greater evil being the complete dissolution of capitalist power resulting from the dissolution of society.

It is impossible to predict this long process in detail, or to say how and when the working class’s gradual takeover of the state (through socialist representatives and the construction of new institutions on local and eventually national levels) will be consummated. Nor can we predict what the nation-state itself will look like then, what political forms it will have, how many of its powers will have devolved to municipal and regional levels and how many will have been lost to supra-national bodies of world governance. Needless to say, it is also hopeless to speculate on the future of the market, or whether various kinds of economic planning will, after generations, mostly take the place of the market.

As for “the dictatorship of the proletariat,” this entity, like the previous “dictatorship of the bourgeoisie,” won’t exist until the end of the long process of transformation. Marxists, victims of impatience as well as the statist precedents of twentieth-century “Communist” countries, have traditionally gotten the order wrong, forgetting the lesson of Marxism itself that the state is a function of existing social relations and can’t simply be taken over by workers in the context of a still-wholly-capitalist economy. Nor is it at all “dialectical” to think that a group of workers’ representatives can will a new economy into existence, overcoming the authoritarian, bureaucratic, inefficient, exploitative institutional legacies of capitalism by a few acts of statist will. Historical materialism makes clear the state isn’t so radically socially creative![3]

Instead, the contrast that will appear between the stagnant, “fettering” old forms of capitalism and the more rational and democratic forms of the emergent economy is what will guarantee, in the end, the victory of the latter.

An ecumenical activism

In a necessarily speculative and highly abstract way I’ve tried to sketch the logic of how a new economy might emerge from the wreckage of capitalism, and how activists with an eye toward the distant future might orient their thinking. It should be evident from what I’ve said that there isn’t only one way to make a revolution; rather, in a time of world-historic crisis, simply fighting to humanize society will generate anti-capitalist momentum. And there are many ways to make society more humane.

Consider the social democratic path, the path of electing socialists and pressuring government to expand “welfare state” measures. Far-leftists often deride this approach as merely reformist; in the U.S., it’s also common to dismiss the idea of electing progressive Democrats such as Alexandria Ocasio-Cortez because supposedly the Democratic Party is hopelessly capitalist and corrupt. It can’t be moved left, and it will certainly never be a socialist party.

According to Regeneration Magazine, for instance, a voice of the Marxist Center network, “Reformism accepts as a given the necessity of class collaboration, and attempts to spin class compromise as a necessary good. One of the more popular strategic proposals of the reformist camp is the promotion of candidates for elected office running in a capitalist party; a clear instance of encouraging class collaboration.”

There are a number of possible responses to such objections. One might observe that if the left insists on absolute purity and refuses to work with anyone who can be seen as somehow “compromised,” it’s doomed to irrelevance—or, worse, it ends up fracturing the forces of opposition and thus benefits the reactionaries. It is a commonplace of historiography on fascism that the refusal of Communist parties in the early 1930s to cooperate with socialists and social democrats only empowered the Nazis and other such elements—which is why the Stalinist line changed in 1934, when the period of the Popular Front began. Then, in the U.S., began Communist efforts to build the Democrat-supported CIO (among other instances of “collaboration” with Democrats), which was highly beneficial to the working class. Leftists, more than anyone else, should be willing and able to learn from history.

Or one might state the truism that social democracy helps people, and so if you care about helping people, you shouldn’t be opposed to social democracy. It may be true that the Democratic Party is irredeemably corrupt and capitalist, but the more left-wing policymakers we have, the better. Democrats have moved to the left in the past, e.g. during the New Deal and the Great Society, and they may be able to move to the left in the future. One of the goals of socialists should be to fracture the ruling class, to provoke splits that provide opportunities for socialist organizing and policymaking.

At the same time, the strategy of electing left-wing Democrats or “reformists” should be complemented by an effort to build a working-class party, not only for the sake of having such a party but also to put pressure on the mainstream “left.” Anyway, the broader point is just that the state is an essential terrain of struggle, and all ways of getting leftists elected have to be pursued.

Personally, I’m skeptical that full-fledged social democracy, including an expansion of it compared to its traditional form, is possible any longer, least of all on an international or global scale. Thus, I don’t have much hope for a realization of the Jacobin vision, that societies can pass straight into socialism by resurrecting and continuously broadening and deepening social democracy. Surely Marxism teaches us that we can’t resuscitate previous social formations after they have passed from the scene, particularly not institutional forms that have succumbed (or are in the process of succumbing) to the atomizing, disintegrating logic of capital. The expansive welfare state was appropriate to an age of industrial unionism and limited mobility of capital. Given the monumental crises that will afflict civilization in the near future, the social stability and coherence required to sustain genuine social democracy will not exist.

But that doesn’t mean limited social-democratic victories aren’t still possible. They certainly are. And in the long run, they may facilitate the emergence of new democratic, cooperative, ecologically viable modes of production, insofar as they empower the left. Even something like a Green New Deal, or at least a partial realization of it, isn’t out of the question.

On the other hand, while mass politics is necessary, that doesn’t mean we should completely reject non-electoral “movementism.” As I’ve argued, the project of building a new society doesn’t happen only on the level of the state; it also involves other types of popular organizing and mobilizing, including in the solidarity economy. The latter will likely, indeed, be a necessity for people’s survival in the coming era of state incapacity to deal with catastrophe.

Not all types of anarchist activism are fruitful or even truly leftist, but the anarchist intuition to organize at the grassroots and create horizontal networks of popular power is sound. Even in the ultra-left contempt for reformism there is the sound intuition that reforms are not enough, and we must always press forward towards greater radicalism and revolution.

An ecological apocalypse?

An obvious objection to the conception and timeframe of revolution I’ve proposed is that it disregards the distinct possibility that civilization will have disappeared a hundred years from now if we don’t take decisive action immediately. For one thing, nuclear war remains a dire threat. But even more ominously, capitalism is turbocharged to destroy the natural bases of human life.

There’s no need to run through the litany of crimes capitalism is committing against nature. Humanity is obviously teetering on the edge of a precipice, peering down into a black hole below. Our most urgent task is to, at the very least, take a few steps back from the precipice.

The unfortunate fact, however, is that global capitalism will not be overcome within the next few decades. It isn’t “defeatist” to say this; it’s realistic. The inveterate over-optimism of many leftists, even in the face of a dismal history, is quite remarkable. Transitions between modes of production aren’t accomplished in a couple of decades: they take generations, and involve many setbacks, then further victories, then more defeats, etc. The long march of reactionaries to their current power in the U.S. took fifty years, and they existed in a sympathetic political economy and had enormous resources. It’s hard to believe socialists will be able to revolutionize the West and even the entire world in less time.

Fortunately, it is possible to combat ecological collapse even in the framework of capitalism. One way to do so, which, sadly, is deeply unpopular on the left, is for governments to subsidize the massive expansion of nuclear power, a very clean and effective source of energy despite the conventional wisdom. The rollout of renewable energy is important too, despite its many costs. Meanwhile, it is far from hopeless to try to force governments to impose burdensome regulations and taxes on polluting industries or even, ideally, to shut down the fossil fuel industry altogether. Capitalism itself is indeed, ultimately, the culprit, but reforms can have a major effect, at the very least buying us some time.

Climate change and other environmental disasters may, nevertheless, prove to be the undoing of civilization, in which case the social logic of a post-capitalist revolution that I’ve outlined here won’t have time to unfold. Nothing certain can be said at this point—except that the left has to stop squabbling and get its act together. And it has to be prepared for things to get worse before they get better. As Marx understood, that’s how systemic change tends to work: the worse things get—the more unstable the system becomes—the more people organize to demand change, and in the end the likelier it is that such change will happen.

The old apothegm “socialism or barbarism” has to be updated: it’s now socialism or apocalypse.

But the strategic lesson of the “purifications” I’ve suggested of Marxist theory remains: the path to socialism is not doctrinaire, not sectarian, not wedded to a single narrow ideological strain; it is catholic, inclusive, open-ended—both “reformist” and non-reformist, statist and non-statist, Marxist and anarchist, Democrat-cooperating and -non-cooperating. Loath as we might be to admit it, it is even important that we support lesser-evil voting, for instance electing Biden rather than Trump. Not only does it change people’s lives to have a centrist instead of a fascist in power; it also gives the left more room to operate, to influence policy, to advocate “radical reforms” that help lay the groundwork for new economic relations.

It’s time for creative and flexible thinking. The urgency of our situation demands it.

Notes

[1] Being an outgrowth of my Master’s thesis, the book over-emphasizes worker cooperatives. It does, however, answer the usual Marxist objections to cooperatives as a component of social revolution.

[2] If someone will counterpose here the example of Russia, which didn’t require “many decades” to go from capitalism and late-feudalism to a “Stalinist mode of production,” I’d reply that the latter was in fact like a kind of state capitalism, and therefore wasn’t so very different after all from the authoritarian, exploitative, surplus-extracting, capital-accumulating economy that dominated in the West.

[3] This is why I claim in the above-linked book that my “revisions” of Marxism are really purifications of it, eliminations of mistakes that finally make the properly understood Marxist conception of revolution consistent with the premises of historical materialism.

Sanders Supporters: It’s Time to get Disillusioned

By J.E. Karla

The word ‘disillusioned” has a negative connotation in our society, implying that illusions are good for us. In a life-or-death situation, however, illusions are fatal, and the fantasy that capitalism will give us the tools we need to destroy it threatens billions of lives. The oppressed of the world need actually radical Bernie Sanders supporters to snap out of it, right now. The rest of this essay is addressed directly to these earnest, disappointed supporters.

Your greatest illusion is probably the belief that Bernie Sanders somehow advanced the left over the last five years. He did not. Mass political energy rising up in the Occupy, Black Lives Matter, Standing Rock and other mass movements got pushed into this campaign, now with nothing to show for it. This is an empirical fact, with vote counts and delegate totals to prove it. Even after tens of thousands of dedicated volunteers and hundreds of millions of dollars raised, Bernie regressed badly since his last failure in 2016. 

Yes, the coronavirus wreaked unforeseen havoc, but why should a crisis of capitalism work against an allegedly anti-capitalist campaign? It’s because Bernie’s style of opportunism is an open compromise between the ruling system and mass demand for change. When this contradiction erupts, the opportunists have to choose between either their imagined aims or their concrete collaborations with the class enemy. 

Bernie chose the latter, standing down in order to protect the system. The ruling class needs immediate unity behind the state in the broadest sense — not just the government, but the entire apparatus of capitalist power — if it is to survive this crisis. Bernie immediately fell in line, just like a US Senator is supposed to. Now his supporters can choose to follow this lead or to denounce this surrender. Which will you choose? 

If you believe that the exploited masses have the power to rise up and set ourselves free — i.e the basic idea of all revolutionary politics — then the question becomes which choice validates that concept: advancing Joe Biden’s ambitions, or refusing to further play the capitalist game? Bernie’s primary political objective is now the election of Joe Biden as president. Sticking with him out of a sense of reflexive loyalty is a clear betrayal of the masses.   

This is also the answer to the “lesser of two evils” logic Bernie and his allies in the Democratic Party are trotting out, now for the umpteenth time. For a child in a Palestinian refugee camp, a woman working in a Sri Lankan sweatshop, someone toiling in a coltan mine in Central Africa, or a Yemeni family praying that the drones miss them again today, the US elections change nothing. Not only is there no difference between Biden and Trump, there was no hope even in Bernie Sanders after all. 

Indeed, when it comes to key questions like the struggle against NATO, the IMF, WTO, and the US dollar, Biden may actually be to the right of Trump. This looks topsy turvy until you get good and disillusioned. Marx and Engels say in The Communist Manifesto that communists “are distinguished from the other working-class parties by this only… in the national struggles of the proletarians of the different countries, they point out and bring to the front the common interests of the entire proletariat, independently of all nationality.” We either take this materialist perspective, or fall into the same opportunist trap over and over again. 

If you’ve spent any time over the last five years enthralled by the Bernie campaign, you’ve seen the consequences of this error. All of your work and money has been handed over to a befuddled rapist hack for the credit card companies and military industrial complex. The only way out of this hole is to stop digging. It’s time for you to give up on this illusion, once and for all.

The good news — kinda — is that we’re in great collective shape for a period of study. Start with the great dissector of opportunism — Vladimir Lenin. Read State and Revolution, and then Imperialism: the Highest Stage of Capitalism. For a great look at how those dynamics have developed into our present age give John Smith’s Imperialism in the Twenty-First Century a read, followed by Utsa and Prabhat Patnaik’s A Theory of Imperialism. Get some disillusioned former Bernie supporters together and study as a group — it will help you stay accountable. 

It may feel less “active” than what you were up to with Bernie, but remember that you would have done much less harm if you’d done nothing at all. If there’s any hope of a silver lining in this experience it will be folks like you turning this heartbreak into a spirit of real resistance. Follow that spirit the next time a mass movement is urged to go electoral, and remind them of your one-time folly.  

We know that this will come up again sooner or later because no one comes out of this system without thinking a lot of very destructive things. Bernie supporters often point out the isolation and self-absorption of much of the left. You’re right; we have our own illusions we need to snap out of too. But the same system that worries about you being “disillusioned” tells you that it’ll help you slit its throat if only you play by its rules. Remember what you’ve learned, and don’t believe it again.

Bernie is Dead, Long Live the Revolution: A Few Thoughts

By Zach Medeiros

The jig is up. Caught between the pincers of a corporate media and the Democratic establishment, and hopelessly hamstrung by his own unwillingness to launch full-frontal attacks on the system, Bernie Sanders has been defeated again. As in 2016, the individuals and classes who run the Democratic Party, along with those who lick their boots and deposit their checks, have chosen to lose to Donald Trump again rather than tolerate the most lukewarm form of “socialism” imaginable. They did everything in their power to convince voters that Bernie Sanders was less electable than a racist rapist fossil who can barely string a coherent thought together, a man who is intimately involved in some of the most destructive domestic and foreign policy decisions undertaken by the United States in recent generations. Joe Biden is a step down from Hilary “Super Predator” Clinton, if such a thing seems possible.

The callousness of this decision is matched only by its stupidity. If Bernie Sanders had managed to win the presidency, the kinds of reforms he champions would probably give the shambling corpse that is US capitalism and imperialism a much needed shot in the arm, while distracting those who might otherwise join an actual revolutionary movement. Alternatively, the right-wingers in the courts and Congress could have squashed any changes a Sanders administration tried to get through. They had many options, but they decided to go with Joe Biden. Think about that for a moment, and let the horror that passes for democracy in this empire wash over you.

Now, I'm not going to gloat about Bernie dropping out. I’ve written about Bernie’s profoundly flawed ideology elsewhere, and the threat he didn’t pose to this monstrous system. There are far too many good, decent, struggling people out there who backed Sanders for understandable reasons for me to drive the knife in deeper. In Bernard Sanders, millions of people, particularly young people, saw something and someone different than the usual filth that characterizes Amerikan politics. While there are some who only backed him because they wanted some decent health care on top of the usual imperialist, colonialist pie, there were and are many others who saw in a Sanders presidency the possibility for transformative change that would make a meaningful difference in their lives and the lives of their loved ones. Many of these supporters are working class or precariously positioned colonized people, with real reason to fear a second Trump term but sick to death of the Bidens of the world.

Intellectually, US Americans are trained to be passive, idealist, and hyper-individualistic in our understanding of politics. We’re taught to look to pro-capitalist politicians, and particularly presidents, as almost magical saviors able and willing to vanquish all of our designated enemies and cure all our ills, real and imagined. Voting them into office is supposedly our highest political duty, and when they fail or disappoint, we must only use the systems, tactics, and strategies the ruling class allows to “hold their feet to the fire,” or some other such nonsense. This is how most of us, including the most diehard revolutionaries, are raised from birth, and it would be hypocritical to play the enlightened ones and chastise those outside the radical Left who believed in Sanders now. Politics are about nothing if not education, and we must be mindful of everyone’s capacity to develop.

All of that said, we need to recognize what actual socialists and other revolutionaries, above all colonized people, have been saying for years: you cannot and will not build past-its-prime social democracy, let alone real socialism, from inside the Democratic Party. You cannot and will not win power except through the mass leadership of the most oppressed and marginalized people in this society. You cannot and will not save Amerika from itself, and it does not deserve to be saved. Bernie Sanders has lost two presidential elections in a row now. There have been many before him who tried to push this country to the left from within the Democratic Party and failed. It is no shame to make a mistake; the shame lies in repeating it again and again. If you ever had a shred of hope in the Sanders campaign, refocus that. Multiply it a thousand fold, and put it into action building and supporting genuine revolutionary movements. Destroy imperialism. Smash colonialism. Grind capitalism into dust. Fight for the liberation and emancipation of the millions and billions of human beings kept down by every form of chauvinism and exploitation.

As Mariame Kaba said, let this radicalize you rather than lead you to despair.

Capitalism Needs Another Bailout. It's Time to Let It Sink.

By J. E. Karla

There’s an old saying that leftists have predicted seven of the last three economic downturns. We know that capitalism is doomed to crisis, but we are often disconnected from how that crisis actually comes to pass. Now that we face a looming depression that’s surprised nearly everyone, it’s a great time to try thinking about production a little like a businessperson. It actually yields some pretty communist results.

The trick to thinking this way is pretty simple: businesses exist to make money, and the finer points of Marxist political economy notwithstanding, they make money by bringing in more revenues than expenses. These expenses can be broken down into the costs of goods and services, costs of revenue, operating costs, taxes and interest.

The costs of goods and services were the very things Marx focused on in his critiques of political economy – the costs of raw materials supplied by nature and the human labor-power used to transform them. This is the source of all value, and even capitalists understand that the surplus here pays for everything else. That’s why “gross profit,” total sales minus these costs, is their primary measure of profit. Even service businesses – airline, hotels, lawyers, etc. – have to make their money from gross profits generated by a commodity manufacturer somewhere else in the system.

With production gutted right now, this surplus isn’t getting generated, and that’s why the entire system is in big trouble. Demand-side problems caused by everybody isolating are bad enough, but Marxists know it’s the production side that runs the whole thing. On a micro level it’s true that their costs of goods and services aren’t being accrued right now, but debts on materials already purchased and perishable materials rotting in warehouses threaten to sink enterprises, nonetheless. Add in their other costs, and their options without a bailout are to dig into savings, sell off assets, or go bankrupt – an option with cascading consequences throughout the supply chain.

These other costs include “costs of revenue,” including salaries for managers, payments on long-term purchase agreements for raw materials, and – crucially – all of the income for service businesses. They also include operating expenses such as the costs of making sales and the overhead for the business. If businesses are renting space, paying mortgages on idle facilities, on the hook for service contracts or supply arrangements, having to ship mostly empty trucks, or still getting utility bills without the sales to cover them they either have to default and go bankrupt, or get outside help. As for taxes and interest, the government is going to want their money sooner or later, and not paying the bank now means the debtor can’t borrow after the pandemic, when credit will be more necessary than ever.

The system as a whole definitely does not have the reserves to cover all of these costs for very long, and they can’t sell assets for enough money to cover them either. They’re still trying, of course, which is why pretty much all asset prices dropped in recent weeks. Capitalists have been trying to get whatever they can to pay as many bills as possible, and their slide has only been halted by the promise of incoming bailout funds.

So, the only alternatives the businesspeople of the world can see are either a global decimation of production with no real prospect of restarting in the foreseeable future – an economic depression – or bailouts. The word “bailout” refers to the process of rescuing a sinking ship by dumping water from a leak overboard, a process that only works if you can collect and dump water at a faster rate than the ship takes on.

Central banks and governments are – as a result – furiously printing money in the hopes that it will be enough to keep the system afloat. At the same time they are also hoping that the consequences of uncharted economic policy won’t make things worse in ways they haven’t anticipated. Will it work? Nobody knows, but it’s a good time for one of our customary predictions of doom.

A much surer alternative would be to simply use state power to suspend contractual obligations, debts, rents, utility charges, and taxes – plugging the hole instead of bailing out the ship. They could then provide a universal basic income and guarantee delivery of necessary services without payment. They could compel the continued delivery of vital goods through government order and compensate all the necessary workers at a level commensurate to the benefit they are providing to society. They could further streamline things by eliminating unnecessary marketing and management positions.

At most a much smaller bailout might be needed to pay for ramping up operations after the pandemic has passed. In return, the government could claim an equity stake in all of these enterprises, using their ownership to serve the public interest.

Some caveats aside, the name for such a system is socialism, and the businesspeople of the capitalist class would rather endure a depression or kill millions of people than tolerate even a limited experience of socialism. Even the plausibility of such an arrangement – virtually every element of that description has been officially proposed or adopted somewhere in the last few weeks – terrifies them, because it makes it clear how close a socialist society really is. We could, conceivably, have it tomorrow.

The biggest caveat, of course, is that the existing bourgeois state will never do this. And smashing it while building a new one makes the task much harder. But the state’s legitimacy is eroding more and more every day, and a protracted depression is sure to swell the ranks of the proletariat, creating the very solution to our primary problem. Even if they pull off the bailout, they’ll only leave the system as a whole less prepared for the next crisis.

That's why the same business guys so enamored of up-by-the-bootstraps tales of rugged settler individualism are so desperate for government checks right now. We may have called more shots than we’ve made, but that’s only because we have always known one thing they are just now learning: capitalists are trapped on the high seas of crisis, surrounded by a world ready to throw them overboard, soon.

Donald Trump and Erik Prince's Privatization of War

(Pictured: Corporate mercenaries in Afghanistan)

By James Richard Marra

During my career as a business analyst, I learned much about why and how some businesses succeed while others fail. Failure may result from higher wage levels, employee health insurance costs, or market conditions. Nevertheless, it generally occurs due to poor management: owner incompetence, arrogance, and greed, insensitivity to fundamental business factors and best practices, or a flawed understanding of their markets and competitors.

I bring this up because the neofascist governance in Washington and its corporate partners are wooing Americans toward another imperial catastrophe in the Middle East, this time involving Iran. For these capitalists, much is never enough. So as expected, the military-technology-surveillance complex (MTSC) wishes to expand its profitable productive capacity into new or under-exploited war-commodity markets. The success of this expansion depends upon careful attention to geographic, material, and operational considerations. Best business practices demand that the MTSC develops a sound plan by first consulting experts in these areas. These factors might include those identified by the famous military theorist Carl von Clausewitz. For von Clausewitz, the three pillars of warfare are strategy, operations, and tactics. Within the MTSC’s production and marketing plans, these required military functions are transformed into profitable exchange values - money. If this program is managed well, the sky is the limit. If not, failure will likely come.

With these thoughts in mind, we might consider the case of Erik Prince, the ex-Navy Seal and founder/CEO of the failed and criminally mercenary service provider Blackwater. In 2018, Prince, the brother of Education Secretary, and public-education privatizer, Betsy DeVos, approached the Trump Administration with a proposal to privatize the Afghan War. Prince’s dog-and-pony show claimed that the war could be waged more economically and efficiently, while deploying fewer troops in smaller specialized units. 

Neofascists, like Steve Bannon, invited further discussion and exploration. This is not surprising because fascism of any sort, including today's neofascism, is an artful alliance of an anti-conventional and zealous "Leader," a hyper-nationalistic culture, and an exceptionally exploitative form of capitalism. Trump's fascism gets its "neo" in part from the fact that today's capitalism is largely unfettered, "neoliberal," finance-and-service-dominated, and monopolized. This current form differs from the manufacturing capitalism that dominated the world economy from the 1920s to the 1980s. Furthermore, history reminds us that, while Hitler disliked “industrialists,” he admired Henry Ford to the extent that, in 1938, he bestowed upon him the Grand Cross of the German Eagle.

Now, capitalism opposes worker control over their labor power. The military command structure epitomizes this, as unions are banned and the demands made upon military labor (soldiers) go unquestioned. Likewise, fascist governance requires that workers absolutely obey the will of the political Leader, as it is transformed into the productive operations in which workers participate.

Both Prince and Bannon recognized a profitable business opportunity enabled by the structural efficiencies fascism offers within a privatized war market. In this model, military needs are continually identified and marketed by the Leader and the MTSC through their political minions and the capitalist media. Once workers are indoctrinated to the benefits of war, the MTSC transforms those needs into corresponding commodities. Vast amounts of capital are provided by taxes largely levied upon the working class. Politically trumped up fears of the working class not only provide a market incentive, but also mobilize workers’ labor power, both on and off the battlefield.

Trump’s military and other members of the MTSC balked at Prince’s scheme. Generals Mattis, Kelly, and McMaster ensured that Prince’s folly was a non-starter. Given this, a question arises: How could a neofascist mercenary's neofascist proposal to a neofascist Leader fail? Prince is neither an idiot nor a novice. His operational capabilities have been successfully field-tested, are marshaled by a highly skilled cadre of special-forces experts, and bolstered by significant international technical and political support.

It occurs to me that Prince’s business failure significantly resides in his misunderstanding of the contemporary war market and its players. He doesn’t understand his competitors’ collective business model, its functional role within the neofascist governance, or its monopolistic structure. Prince’s arrogance leads him to believe he can slither his way directly to the top of the neofascist food chain, biting off a prime piece of the war market without complaint from the big players. That might work if the market were immature, and competition largely relevant to profitability. But today’s market is both mature and well organized. Leading participants synergistically avoid price wars, fight unions and organizing efforts, fund think tanks and lobbyists, contribute to the campaign coffers of servile politicians, and meet together at national and global conferences to determine market rules.

Dominant corporations viscously defend themselves from the competitive risks presented by new and less mature companies. Thus, corporations join in a “co-respective” market behavior that largely guarantees their continuing control and profitability.

Alex Hollings asks:

So why didn’t Trump...a business man that values bottom-line savings, sign off on it?...Steve Bannon, Trump’s recently fired chief strategist, was said to support Prince’s plan, but the Generals Mattis, Kelly, and McMaster have all dismissed it.  For those in Bannon’s corner, they argue it’s because he’s the outsider, free from the political pressures of the military industrial complex.

A congressional aide attending the meeting reported, “The adults hate it.”

There is another potential problem, although one that might offer a silver lining for Prince: the laws that govern American wars. These pesky laws make it more difficult for any privatized war business to control production, supply, and operational management. For a privatized war commodity to be successful, businesses require that civilian leadership regularly deliver new war-needs, which would motivate market demand. While both Democrats and Republicans are quick to fund occasional “short” wars, that isn’t enough. What is needed is a government that will go to war as unhesitatingly and continually, as Hitler did devouring the nations of Europe. A fascist leadership is ideal because it considers war to be among the noblest of human endeavors, and resists conventional or legal restraints imposed by “decadent” liberal democracies.

However, today’s renewed calls for limits upon the now imperial presidency from the American left illustrate the business risk represented by not appreciating the vicissitudes involved in political strategy. Prince’s short-term thinking led him to largely ignore the fact that presidents come and go. Public opinion changes with the lifting of a TV remote, and politicians the chase political winds like a bloodhound after a jackrabbit through a lush Kentucky meadow. Prince failed to appreciate that his business success hinged on controlling the dance card at a capitalist senior prom to which he is not invited.

My references to “neofascism” may annoy some folks: "You’re calling Trump a neofascist just because you don’t like his politics!” Although I find Trump's politics uniquely vile, that fact doesn’t inform my understanding of a “Futurist”-inspired fascism. To understand Futurism, let's allow it to speak for itself.

Futurists wish to

...sing the love of danger, the habit of energy and boldness.

...extol aggressive movement, feverish insomnia, the double-quick step, the somersault, the box on the ear, the fisticuff.

...to destroy the museum, the libraries, to fight against moralism, feminism and all opportunistic and utilitarian malignancy.

...glorify war - the only health-give [sic] of the world - militarism, patriotism, the destructive arm of the Anarchist, the beautiful ideas that kill, and contempt for woman.

These pleasantries might well have come from Donald Trump or one of his torch-bearing neo-Nazi devotees. But, they are offered by the founder of the Futurist movement, Filippo Tommaso Marinetti, in Futurist Aristocracy (1923), edited by the Italian Futurist Nanni Leone Castelli. As such, they illuminate a frightening Futurist thread between contemporary Trumpian neofascism and its historical roots. Benito Mussolini was a Futurist of sorts, and was seen by many contemporaries, Italian or otherwise, as the epitome of the aggressive and spontaneous Futurist hero. Here are a few priceless insights from Benito Mussolini’s (with Giovanni Gentile) 1932 article “Doctrine of Fascism.”

[Fascism]...repudiates the doctrine of Pacifism....[W]ar alone brings up to their highest tension all human energies and puts the stamp of nobility upon the peoples who have the courage to meet it.

For Fascism the tendency to Empire, that is to say, to the expansion of nations, is a manifestation of vitality...

Fascism attacks the whole complex of democratic ideologies and rejects them both in their theoretical premises and in their applications or practical manifestations. [F]ascism denies that the majority, through the mere fact of being a majority, van [sic] rule human societies; it denies that this majority can govern by means of a periodical consultation; it affirms the irremediable, fruitful and beneficent inequality of men, who cannot be leveled by such a mechanical and extrinsic fact as universal suffrage.

Against individualism, the Fascist conception is for the State; and it is for the individual in so far as he coincides with the State, which is the conscience and universal will of man in his historical existence.

Fascism, in short, is not only the giver of laws and the founder of institutions, but the educator and promoter of spiritual life. It wants to remake, not the forms of human life, but its content, man, character, faith. And to this end it requires discipline and authority that can enter into the spirits of men and there govern unopposed.

These happy thoughts tighten the historical thread that connects Mussolini’s historical fascism to Trump’s regime, as transmitted through pseudo-intellectuals like Steve Bannon and Sebastian Gorka. This fascist mentality now commands the most powerful military force in human history. Trump’s behavior in both deed and word is a litany of fascist, and therewith Futurist, virtues.

Possessing the legal and political prerequisites for endless warfare, war enterprises need capital to fuel ongoing accumulation. War profiteers understand that citizens purchase war commodities in the sense that they accede to the Constitutional requirement that they pay war costs through taxation. In the current war market, temporary wars no longer provide the required market potential or capital. Fighting temporary wars no longer makes market sense. Instead, the working class must purchase a product that is always urgently needed, requiring continuing maintenance, like the family car. To ensure the needed profitability, war is sold as an indispensable civic need, based upon a continually present danger. That danger comes conveniently from “terrorists,” a term whose meaning is so muddled that it can apply to anyone, anywhere, anytime, anyhow.

With the proper social and political indoctrination, and product marketing, citizens happily surrender their Constitutional right to decide against whom, where, when, and how they sacrifice themselves to the god of imperial war. They are invited by a monopoly of war service providers to choose between column A or column A. Americans now enjoy a neofascist Leader in the White House, and a semi-fascist congress willing to pass mushrooming military budgets. If there were a Constitutional challenge to this state of affairs, the matter would be decided by a Supreme Court infested with neoliberal sycophants. Thus, endless war, as always under capitalism, becomes a good business investment, and therefore good governance.

Under Trump's neofascism, the Leader commands the “supply side” of the war market. Taxes on war businesses are deeply cut, while those enterprises become decreasingly deregulated and increasingly empowered. Under contemporary capitalism, the distinction between the sales effort, which invents new needs, and commodity production is largely dissolved. With the rise of a privatized war market, the traditional relationship between democratic governance and the “invisible” divine hand that supposedly guides markets is, to echo Mussolini, "repudiated." The MTSC is now fully absorbed within the structural operations of the governance, and vice versa. The business role of the Leader is to manage a permanent war-marketing project that inspires the continuing development of new war commodities. Thus, the US Defense Department is “deconstructed” (to use one of Bannon’s favorite words), only to emerge refreshed as the Fannie Mae of American global capitalist dominance.

In sum, Prince’s business proposal was ill conceived, misinformed, and poorly timed. It suffered from management problems that most failed businesses experience. While Prince, like Trump, may have obtained some measure of business success by bullying the defenseless and lying about much, both have left an ultimate legacy of business failure and bankruptcy. Unfortunately, Trump was provided a place at the head of the capitalist table by a rapacious Republican Party and its white nationalist supporters. It will remain to be seen if Prince learns some lessons and abandons his unprofitable arrogance in favor of sound business judgment. For the sake of the American working class, I hope that won’t happen.

The Money Has Always Been There: Coronavirus Response Reveals Capital’s Lies

By Olivia Wood

Republished from Left Voice.

In the past weeks, companies and governments alike have begrudgingly been forced to provide minimal relief to workers suffering under the coronavirus pandemic. Inboxes are filled with emails from dozens of corporations about the steps they are taking to “protect” their employees and the public; these emails are nothing but damage control in the face of public demands. 

Corporations and governments of all sizes are realizing that under such extreme conditions, they cannot hide the disastrous consequences of their actions like they once could. The need to “flatten the curve” is of course vital to protecting everyone’s health, but the capitalists are only struggling to flatten the curve of suffering under their own hegemony in order to keep people from connecting the dots. The old arguments — blaming the working class for their own financial irresponsibility or lack of work ethic — don’t work as well when entire sectors are getting shut down. 

Already, we are seeing rapid changes in political consciousness across sectors. Many people now support measures — like free healthcare, guaranteed paid leave, and universal basic income — that they considered “too radical” only a few weeks ago. They are realizing that all people deserve more. And now they are demanding it. 

Just in the last few weeks, airlines have been repeatedly revising their refund policies. Employers have been allowing more and more people to work from home. Health care providers are beginning to offer telehealth, and insurance companies are starting to provide coverage for telehealth where they didn’t before. These changes didn’t come from the goodness of their hearts. They came in response to a rapid loss in profits, fear of public backlash, and mass public outcry, both through piles of individual complaints and mass organized actions. 

Many workplace protections that we are accustomed to today — such as the 8-hour workday, minimum wage laws, and unemployment and disability benefits —  as inadequate as they are, were won in the 1930s when mass movements and organized labor put pressure on the capitalist class. By offering small, affordable concessions now, subsidized by government bailouts, companies hope to appease the newly agitated workforce and foreclose the possibility of even stronger organized revolt. 

These concessions are not enough to prevent the serious physical, emotional, and financial harms that people around the country (and the world) are facing, but they do reveal just how many policies that were previously called “not feasible” or “too expensive” could have been rapidly implemented in our workplaces and in our lives all along. 

This partial list of concessions demonstrates that while there are no lasting solutions under capitalism, working people can still win valuable gains that improve their lives and strengthen their ability to fight for even more. 

Many of these items are courtesy of @frnsys‘s compendium of concessions that they shared on Twitter.

Workplace Benefits

  • Some companies, such as REI, are continuing to pay their workers while stores are closed. At the same time, Congress has refused to provide paid sick leave for most employees, and other companies like Ann Taylor and American Eagle have failed to provide the paid leave they promised.

  • Many schools and workplaces are now allowing students/workers to connect from home, even in cases where teleworking accommodations were previously denied to disabled students and workers because these accommodations were not considered “reasonable” under the ADA.

Economic Interventions

  • Interest and payments on federally-subsidized student loans have been suspended.

  • Some U.S. citizens — excluding gig workers, many college students, sex workers, and others– will receive a one-time check of $1,200, adjusted based on number of children

  • The U.S. federal government is now subsidizing state-run unemployment insurance by $600 per week per person.

Shelter and Public Health Protections

  • California is commandeering hotels to house the homeless and create extra space for COVID patients, as well as sending 450 trailers around the state to provide additional shelter. Notably, this is not the case in places like Las Vegas, where homeless people are in a “socially distanced” parking lot.

  • Several municipalities have suspended evictions.

  • Many health insurance companies are now providing coverage for digital medical care (telehealth) and teletherapy, regardless of the person’s previous coverage plan

Law and Order

  • A county jail in Ohio released hundreds of inmates, although the terms of their release vary 

  • The Portland police department is no longer responding to calls unless lives are in danger.

  • Bexar County, Texas is officially suspending arrests for all minor offenses, and many other locales are informally changing their responses

  • TSA has created an exception to rules regarding the amount of liquids that can be taken in a carryon bag to allow for large bottles of hand sanitizer. (Of course, this was already an arbitrary rule)

Services and Utilities

  • Comcast and T-Mobile are lifting all internet data caps for 60 days

  • Several municipalities have suspended utility shut-offs, and Detroit turned the water back on for families who had previously had their water service cut off.

  • Cities like New York and San Francisco are implementing government-sponsored childcare

  • Some internet service providers are providing free internet service for children who are now attending school from home. 

These concessions are not enough — not even close. We need to have universal paid leave, a quarantine wage, a layoff freeze, and the cancellation of rent and debt. These concessions are nothing but crumbs being thrown by the bourgeoisie in the hopes that it will be enough to quell our rage. However, these concessions do reveal that all of these reforms that governments and business leaders have for so long insisted are impossible to implement are, in fact, things that they always had the power to do. The money has always been there. 

More than 10 million people have filed new claims for unemployment benefits in the last two weeks alone. The crisis is only going to get worse, and we need massive changes now. The way that the necessary concessions will be won is not by sitting idly by and hoping that the capitalists will take mercy on us. As the price gouging around food and medical equipment, landlords’ insistence on continuing to collect rent, and the many employers forcing workers to labor in unsafe conditions demonstrate, capitalist pity is hard to come by in the face of profits. We need to have widespread collective action to win the things we need to survive the coronavirus crisis. We should look to the powerful examples of workers at Amazon, Whole Foods, and General Electric who, this week, walked off the job, went on strike, or staged protests in their workplace to gain safer working conditions or, in the case of GE, switch over production from airplane parts to the much-needed ventilators. 

It is important, as the crisis continues and worsens, to draw certain conclusions about what is happening and why. The concessions listed above are protections that could have always been in place, the bailout bill shows that there is always money, and the increased safety measures show that businesses always had the ability to improve conditions. These things didn’t happen before because they didn’t want to do them. They are giving us crumbs now because they are afraid; they are afraid of us. They know that we have the power to shut down production, to attack capital, and to take power for ourselves. They are hoping that if they give us some crumbs now, then we will forget and forgive them. But we won’t, and we can’t. These concessions should only add to our anger, because now we know, without a doubt, that they could have done this the whole time and chose not to. The money has always been there.

Coronavirus and the Path Beyond Post-Industrial Society

By Connor Harney

“We must do away with the absolutely specious notion that everybody has to earn a living. It is a fact today that one in ten thousand of us can make a technological breakthrough capable of supporting all the rest. The youth of today are absolutely right in recognizing this nonsense of earning a living. We keep inventing jobs because of this false idea that everybody has to be employed at some kind of drudgery because, according to Malthusian-Darwinian theory, we must justify our right to exist. So we have inspectors of inspectors and people making instruments for inspectors to inspect inspectors. The true business of people should be to go back to school and think about whatever it was they were thinking about before somebody came along and told them they had to earn a living.”

- Richard Buckminster Fuller

It has been a little over a week since President Trump deemed my co-workers at Whole Foods and I critical infrastructure during the global Coronavirus pandemic, and already, any sense of appreciation that title conferred—both in being categorized as essential in combating COVID-19 and better everyday treatment by customers—has already dissipated. In the place of that gratitude, our customers seem as entitled as ever toward the labor we thanklessly provide.  At the same time, any supply-chain issue or corporate-rationing policy out of our control means we face their ire, rather than the faceless executives and middle management responsible.

Taking aside that this global outbreak has everyone on edge, this sort of behavior is not at all surprising given the highly-stratified nature of class in the United States. There is a massive gulf in wealth, even among those that work. That is, the pay differential between say a software engineer and grocery stocker like myself is immense: the stock clerk can expect a median pay of just over 12 dollars an hour and the software developer, on the other hand, can expect just under $58. Even the lowest paid developer makes twice that of the clerk. Of course, none of this takes into account benefits connected to employment in the U.S. like healthcare and retirement, which widens this gap even further.

As Zizek wrote recently, “the impossible has happened, our world has stopped,” and yet, as we are expected to provide a sense of normalcy for the rest of country during what can only be described as a breakdown of all norms, workers in the service sector still struggle for basic human dignity. It was only after public shaming that my company offered paid sick leave, and only for the extent of the pandemic. Even our hazard pay is laughable, two dollars more an hour to put ourselves and our families on the front lines of this biological battle.

Given that, it has been nearly a decade since Fight for $15 began their campaign to raise wages and unionize typically-unorganized workers. And as the minimum still sits at under eight dollars, it should come as no surprise that conceptions of the nature of the work constitute a major dividing line among American workers. As a society, we fetishize technology, and its presence looms large over our national consciousness. For that reason, those who work in that sector of the economy find themselves held in high esteem by the public.

Unfortunately, this reverence is almost always accompanied by a zero-sum view, whereas only certain workers deserve dignity. Just like the literal wealth of the nation, there is only so much goodwill to go around—low-skilled workers, or the ones that make sure that everyone is clothed, fed, and sheltered, are barred from pride in their work that those in other sectors are allowed. This belief in the lowly nature of the service worker is by no means a new one.

Dolores Dante, a waitress interviewed by Studs Terkel in the early-1970s for his famous book Working, speaks to this long-standing state of affairs when she described her response to those who would say she was “just a waitress.” According to Dolores, “people imagine a waitress couldn’t possibly think or have any kind of aspiration other than to serve food,” but for her the job fulfilled a sense of purpose to the point that: “I don’t feel lowly at all. I myself feel sure. I don’t want to change the job. I love it.”

As human beings, we need to engage with the material world for our survival. Under capitalism, the way we meet our material needs is determined by factors like where we live, our level of education, skills we have, jobs available on the labor market, as well as the social networks we are a part of.  All of these things set the stage for where and how we work. That a game of chance governs our career trajectories should highlight how arbitrary the barriers to respectability we create are: the Dolores Dantes of the world should find dignity in their work.

However, the strongly-held belief in the connection between “skill” and compensation remains an obstacle to a world where such self-worth for service workers is publicly embraced. In many ways, this problem comes out of the notion of the United States as reaching a new level of economic development—a concept that would not have been foreign to our waitress. During the 1970s, manufacturing began to shift from the core to the periphery of the capitalist world system, and what are often called the service and knowledge economies emerged as the dominant growth sectors. With a certain optimism, Daniel Bell and other thinkers responded to these changes by predicting the coming of the Post-industrial society.

Under these new social arrangements, making things no longer mattered. That the U.S. could provide the bare necessities of life was a foregone conclusion. The focus of the new economy would be on ideas and technical know-how. What this view did not consider is that, rather than a transcendence of industrial society in one country, it represented more its international universalization. This was at least Harry Braverman’s response to the idea of Post-industrial society. In Labor and Monopoly Capital, released in the same year as Bell’s book, he argues that the theory is just another in a long line of “economic theories which assigned the most productive role to the particular form of labor that was most important or growing most rapidly at the time.”

Most importantly, rather than a decline in Taylorism or scientific management in the world of work, the rise of the service economy symbolized its universal application. He describes the segmentation of work similar to that used on an assembly line as “a revolution…now being prepared which will make of retail workers, by and large, something closer to factory operatives than anyone had ever imagined possible.” Not only was American society still reliant on that manufacture of commodities, other workplaces were beginning to look more like the shop floor.

Even so, the link between knowledge and the so-called new economy placed a certain import on those with higher levels of education—as it was often assumed the technology used in the growth sectors of the American economy required more formal learning. Such a view still prevails, but considering the level of technology that has been integrated into our daily lives and the abundance of people with advanced degrees working behind Starbucks counters and driving for Uber, it should be left in the past along with the myth of the post-industrial society the current pandemic has clearly laid bare.

Instead, we should use the current crisis to break down barriers between working people—highlighting the work of all that keeps our economy in motion.  Moving past these antiquated notions, we can come together to forge new social bonds to fight for an economy that works for the working class and not just the rich.

Capitalist Disinformation: The Inherent Contradictions in Profit-Based "Journalism"

By Marcus Kahn

When you work as an employee, you do what your boss tells you to do. If you didn’t, you’d get fired. You occupy a specialized niche tied to the actual production process, while your boss manages multiple projects and employees from above. Unlike you, who will often only see a sliver of the larger priorities and direction of these projects as it pertains to you executing your function, your boss has access to a broader picture. Your boss’s boss (the owner) gets an even larger picture than that. 

As you move up the ladder priorities change. As an employee, your highest aspiration might be to fulfill your position to an admirable degree with the aim of acclaim and eventually promotion. Your boss might want to see their projects executed successfully and have an incident-free, productive staff. And the owner is concerned with the overall profitability of the company, aka their own pockets. Actions performed at your level and your boss’s level reflect the immediate goals of the individual in that specific role, as it relates to the larger priorities of the owner. And the owner can act purely in their own interests, though the pattern of profit-seeking is decently predictable. You on the other hand, only get to perform as well as you can in the role you’ve been designated, allowed to continue in this role so long as you contribute to the overall profitability of the company through your continued labor (*you’ll probably get paid the same amount no matter how much you produce). 

This is an obvious abstraction of common corporate business models, but the structure is essentially the same across the board. Employees take their directives from managers (an elite and highly stratified subset of employees), who take their orders from owners. The totalitarian, elite-oriented structure of large privately owned companies is either the world’s worst kept secret and everyone passively accepts it, or the best kept secret because elites have managed to subdue our awareness of its existence through various iterations of capitalist ideology. In either case, this structure is ubiquitous in the corporate world. If we apply these principles of hierarchy, domination, and control over production to media corporations, we would expect to find a similar elite-orientation in the behavior of employees (corporate journalists)  and consequently their products (news). 

Take every instance of ‘you’ in the first paragraph and swap it with ‘corporate journalists’, ‘boss’ with ‘editor’ and you have a good sense of the implicit structural pressures facing journalists in large media conglomerates. It’s easy to forget that these media giants are still corporations at their core, and not bastions of objectivity. While the journalists (employees) focus on crafting their story (product), they often have no sense of the larger objectives of their piece due to inadequate information and the ideological constraints on their perspective that likely qualified them for the job in the first place. The distance between the implicit (and perhaps explicit) directives of the executives to editors and the execution of an article in the newsroom and on the ground allows journalists to maintain a cognitive dissonance between the ethical standards and motivations they claim, and the journalistic bias they reproduce.

Though they are often sincere in their commitment to journalistic integrity, journalists’ claims of objectivity are irrelevant given their limited view of the larger corporate entity, and the journalist’s ultimate lack of control over content and direction. Media giants are profit-seeking entities directed by owners and governing boards concerned with the bottom line not only for their name-brand media outlet, but also for a litany of closely associated corporations. By virtue of their vertical command orientation, they will ultimately produce a media product and accompanying ideology that is designed to increase profitability for the owners rather than promote general welfare, in the same way a Big Mac is formulated with profit in mind rather than nutrition or consumer health.

The news we’re getting isn’t good for us, but corporate journalists continue to operate regardless of the dangerous contradiction between their self-image and the impact of their product.

Why Coronavirus Could Spark a Capitalist Supernova

By John Smith

Republished from Open Democracy. This article is part of Open Democracy’s 'Decolonising the economy' series.

“Global yields lowest in 500 years of recorded history. $10 trillion of negative rate bonds. This is a supernova that will explode one day,” tweeted Bill Gross, the ‘bond king’, in 2016.

This day has come closer. Capitalism now faces the deepest crisis in its several centuries of existence. A global slump has begun that is already devastating the lives of hundreds of millions of working people on all continents. The consequences for workers and poor people in Asia, Africa, and Latin America will be even more extreme than for those living in Europe and North America, both with respect to lives lost to coronavirus and to the existential threats to the billions of people already living in extreme poverty. Capitalism, an economic system based on selfishness, greed and dog-eat-dog competition, will more clearly than ever reveal itself to be incompatible with civilisation.

Why is supernova – the explosion and death of a star – an apt metaphor for what could now be about to unfold? Why could the coronavirus, an organism 1000th the diameter of a human hair, be the catalyst for such a cataclysm? And what can workers, youth and the dispossessed of the world do to defend ourselves and to ‘bring to birth a new world from the ashes of the old’, in the words of the US labour hymn, Solidarity Forever?

To find answers to these questions, we need to understand why the ‘global financial crisis’ that began in 2007 was much more than a financial crisis, and why the extreme measures taken by G7 governments and central banks to restore a modicum of stability – in particular the ‘zero interest rate policy’, described by a Goldman Sachs banker as “crack cocaine for the financial markets” – have created the conditions for today’s crisis.

Global capitalism’s ‘underlying health issues’

The first stage of a supernova is implosion, analogous to the long-term decline in interest rates that began well before the onset of systemic crisis in 2007, which has accelerated since then, and which fell off a cliff just as coronavirus began its rampage in early January 2020. Falling interest rates are fundamentally the result of two factors: falling rates of profit, and the hypertrophy of capital, i.e. its tendency grow faster than the capacity of workers and farmers to supply it with the fresh blood it needs to live. As Marx said, in Capital vol. 1, “capital’s sole driving force [is] the drive to valorise itself, to create surplus-value… capital is dead labour which, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks.”

These two factors combine to form a doom loop of awesome destructive power. Let us examine its most important linkages.

Many things both mask and counteract the falling rate of profit, turning this into a tendency that only reveals itself in times of crisis, of which the most important has been the shift of production from Europe, North America and Japan to take advantage of the much higher rates of exploitation available in low-wage countries. The falling rate of profit manifests itself in a growing reluctance of capitalists to invest in production; more and more of what they do invest in is branding, intellectual property and other parasitic and non-productive activities. This long-running capitalist investment strike is amplified by the global shift of production – boosting profits by slashing wages rather than by building new factories and deploying new technologies. This enables huge mark-ups, turbo-charging the accumulation of vast wealth for which capitalists have no productive use – hence the hypertrophy of capital.

This, in turn, results in declining interest rates – as capitalists compete with each other to purchase financial assets, they bid up their price, and the revenue streams they generate fall in proportion – hence falling interest rates. Falling interest rates and rising asset values have created what is, for capitalist investors, the ultimate virtuous circle – they can borrow vast sums to invest in financial assets of all kinds, further inflating their ‘value’.

Falling interest rates therefore have two fundamental consequences: the inflation of asset bubbles and the piling up of debt mountains. In fact, these are two sides of the same coin: for every debtor there is a creditor; every debt is someone else’s asset. Asset bubbles could deflate (if productivity increases), or else they will burst; economic growth could, over time, erode debt mountains, or else they will come crashing down.

Since 2008, productivity has stagnated across the world and GDP growth has been lower than in any decade since World War II, resulting in what Nouriel Roubini has called “the mother of all asset bubbles,” while aggregate debt (the total debt of governments, corporations and households), already mountainous before the 2008 financial crash, has since then more than doubled in size. The growth of debt has been particularly pronounced in the countries of the global South. Total debt for the 30 largest of them reached $72.5tn in 2019 – a 168% rise over the past 10 years, according to Bank of International Settlements data. China accounts for $43tn of this, up from $10tn a decade ago. In sum, well before coronavirus, global capitalism already had ‘underlying health issues’, it was already in intensive care.

Global capitalism – which is more imperialist than ever, since it is both more parasitic and more reliant than ever before on the proceeds of super-exploitation in low-wage countries – is therefore inexorably heading to supernova, towards the bursting of assets bubbles and the crashing of debt mountains. Everything that imperialist central banks have done since 2008 has been designed to postpone the inevitable day of reckoning. But now that day has come.

10-year US Treasury bonds are considered the safest of havens and the ultimate benchmark against which all other debt is priced. In times of great uncertainty, investors invariably stampede out of stock markets and into the safest bond markets, so as share prices fall, bond prices – otherwise known as ‘fixed income securities’ – rise. As they do, the fixed income they yield translates into a falling rate of interest. But not on March 9, when, in the midst of plummeting stock markets, 10-year US Treasury bond interest rates spiked upwards. According to one bond trader, “statistically speaking, [this] should only happen every few millennia.” Even in the darkest moment of the global financial crisis, when Lehman Brothers (a big merchant bank) went bankrupt in September 2008, this did not happen.

The immediate cause of this minor heart attack was the scale of asset-destruction in other share and bond markets, causing investors to scramble to turn their speculative investments into cash. To satisfy their demands, fund managers were obliged to sell their most easily-exchangeable assets, thereby negating their safe-haven status, and this jolted governments and central banks to take extreme action and fire their ‘big bazookas’, namely the multi-trillion dollar rescue packages – including a pledge to print money without limit to ensure the supply of cash to the markets. But this event also provided a premonition for what is down the road. In the end, dollar bills, like bond and share certificates, are just pieces of paper. As trillions more of them flood into the system, events in March 2020 bring closer the day when investors will lose faith in cash itself – and in the power of the economy and state standing behind it. Then the supernova moment will have arrived.

The left’s imperialism-denial, and its belief in the ‘magic money tree’

The gamut of the left in imperialist countries – the Jeremy Corbyn-led wing of the Labour Party in the UK; the motley crew of left-Keynesians such as Ann Pettifor, Paul Mason, Yanis Varoufakis; supporters of Bernie Sanders in USA – are united on two things: they all acknowledge, to one degree or another, that imperialist plunder of colonies and neocolonies happened in the past but do not acknowledge that imperialism continues in any meaningful way to define relations between rich and poor countries.

And they believe in one or other version of the ‘magic money tree’, in other words, they see the decline of interest rates into negative territory not as a flashing red light showing the extremity of the crisis, i.e. not as the implosion phase of a supernova, but as a green light to borrow money to finance increased state investment, social spending, a Green New Deal, and even a bit more foreign aid. In fact, there is no magic money tree. Capitalism cannot escape from this crisis, no matter how many trillions of dollars governments borrow or central banks print. The neoliberals rejected magical thinking, now they embrace it – this shows the extent of their panic, but it does not make magical thinking any less fantastical. The trillions they spent after 2007-8 bought another decade of zombie-like life for their vile system. This time they will be lucky to get 10 months, or even 10 weeks, before the explosion phase of the supernova begins.

Coronavirus – catalyst for cataclysm

The coronavirus pandemic occurred at the worst possible time: growth in the eurozone had shrunk to zero; much of Latin America and sub-Saharan Africa were already in recession; the sugar-high from Trump’s huge tax-giveaways to US corporations was fading; the US-China trade war was causing serious disruption to supply chains and was threatening to entangle the EU; and tens of millions of people joined mass protests in dozens of countries across the world.

Interest rates are now deep in negative territory – but not if you are Italy, facing an enormous increase in its debt/GDP ratio, not if you are an indebted corporation trying to refinance your debts, not if you are an ‘emerging market’. Since March 9, corporate interest rates have gone through the roof; in fact few corporations can borrow money at any price. Investors are refusing to lend to them. Corporations are now facing a credit crunch – in the midst of global negative interest rates! That’s why the ECB decided to borrow €750 billion from these same investors, and use it to buy the corporate bonds which these same investors now refuse to purchase, and why the USA’s Federal Reserve is doing the same on an even bigger scale. Italy’s (and the EU’s) fate now depends on the willingness of the Bundesbank to replace its private creditors. Their refusal to do this would be the final stage of the EU’s death agony.

During the middle two weeks of March, imperialist governments announced plans to spend $4.5 trillion bailing out their own bankrupt economies. An emergency online summit of the G20 (the G7 imperialist nations plus a dozen or so ‘emerging’ nations, including Russia, India, China, Brazil, and Indonesia) on 26 March, declared “we are injecting over $5 trillion into the global economy.” These are weasel words; by ‘global’ they actually mean ‘domestic’! The response of the ‘left’ in the imperialist countries is to clap its hands and say, we were right all along! There is a magic money tree after all! – apparently not realising that this is exactly what happened post-2008: the socialisation of private debt. Or that, unlike post-2008, this time it will not work.

Yet, as imperialist governments belatedly mobilise – and monopolise – medical resources to confront the coronavirus crisis in their own countries, they’ve abandoned poor countries to their fate. The left in the imperialist countries (or we could just say ‘imperialist left’, for short) has also ignored the fact that there is nothing in these emergency cash injections for the poor of the global South. If you are an ‘emerging market’, well, fuck off and join the queue for an IMF bail-out! As of March 24, 80 countries were standing in this queue, waiting for some of its $1tr lending capacity. $1 trillion sounds like a lot of money, and indeed it is, but, as Martin Wolf, chief economic correspondent for the Financial Times, points out, “the aggregate external financing gaps of emerging and developing countries are likely to be far beyond the IMF’s lending capacity.”

Furthermore, as Wolf suggests, the purpose of IMF loans is to help with “external financing gaps” – in other words, to bail out imperialist creditors, not the peoples of debtor nations; and they invariably come with harsh and humiliating conditions that add to the crushing burden already pressing down on the peoples of those countries. In this sense, they are just like the vast government bailouts of private capital in the rich countries – but without anything added on to finance welfare payments or partially replace wages. The aim of the latter is to purchase the docility of the working class in the imperialist nations, but they have no intention of doing this in Africa, Asia and Latin America.

On March 24, the United Nations issued an appeal for $2bn to fight the coronavirus pandemic in Africa, Asia and Latin America. This money, which the U.N. hopes to raise over the next nine months, is 1/80 of the annual budget of the U.K.’s NHS, and less than 1/2000 of the $4.5tr they plan to spend keeping their own capitalist economies alive. It is also less than 1/40 of the money which imperialist investors have taken out of ‘emerging markets’ during the first three weeks of March, “the largest capital outflow ever recorded,” according to IMF managing director Kristalina Georgieva.

The maximum extent of relief for the collateral effects of the coronavirus epidemic on the peoples of poor countries in Africa, Asia and Latin America was indicated by World Bank president, David Malpass, who said after the G20 summit ended that his board is putting together a rescue package valued at “up to $160 billion” spread out over the next 15 months – a minuscule fraction of the economic losses that the coming global slump will impose on the peoples of the absurdly-named ‘emerging markets’.

“We have a revolutionary duty to fulfill" – Leonardo Fernandez, Cuban doctor in Italy

So, what is to be done? Instead of applauding the bailout of big corporations, we should expropriate them. Instead of endorsing a temporary moratorium on evictions and the accumulation of rent arrears, we should confiscate real estate so as to protect workers and small businesses. These, and many other struggles to assert our right to life over the rights of capitalists to their property, are for the near future.

Right now the priority is to do whatever is necessary to save life and defeat the coronavirus. This means extending solidarity to those who are most vulnerable to the pandemic – homeless people, prisoners, asylum seekers enduring ‘hostile environments’ – and to the dispossessed and victims of imperialism in the slums, shantytowns and refugee camps of the global South. Raghuram Rajan, former governor of the Bank of India, points out that “pending a cure or a reliable vaccine, the world needs to fight the virus into submission everywhere in order to relax measures anywhere.” The Economist concurs: “If covid-19 is left to ravage the emerging world, it will soon spread back to the rich one.”

The coronavirus pandemic is just the latest proof that we need not so much an NHS, but a GHS – a Global Health Service. The only country that is acting on this imperative is revolutionary Cuba. They already have more than 28,000 doctors providing free health care in 61 poor countries – more than the G7 nations combined – and 52 in Italy, 120 more to Jamaica, and are helping scores of other countries to prepare for the pandemic. Even the far-right Bolsonaro government in Brazil, which last year expelled 10000 Cuban doctors, branding them terrorists, is now begging them to return.

To defeat coronavirus we must emulate Cuba’s medical internationalism. If we are to defeat this pandemic we must join with its revolutionary doctors and revolutionary people, and we must prepare do what Cuba did to make this internationalism possible – in other words, we must replace the dictatorship of capital with the power of working people. The coronavirus supernova makes socialist revolution – in imperialist countries and across the world – into a necessity, an urgent practical task, a life and death question if human civilisation is to survive and if the capitalist destruction of nature, of which the coronavirus epidemic is merely the latest symptom, is to be ended.

Thanks to Andy Higginbottom, Shih-yu Chou, and Walter Daum for comments on earlier drafts of this article.