What the Political Realignment Suggests About the Prospects for Fascism

By Ashton Rome

The multiple deep crises we currently face are producing huge fractures in the capitalist system's regular operation. In Wage Labor and Capital, Marx wrote that crises “carry the most frightful devastation in their train, and, like an earthquake, cause bourgeois society to shake at its very foundations.” The more fundamental the crisis, the more profound that everyday life and economic and political relationships are disrupted. Crises produce phenomena like we see today: the open calls for political violence, protests, and the growth of socialist and far-right groups; and the shifts in power within the global economic system. These phenomena play themselves out within political parties as the ruling classes and subordinate classes struggle to determine what direction the crisis will resolve itself. Within this process, the ruling class may attempt to reconfigure its hegemony through new political alliances and reformations, and new interplays between force and consent to bring social peace. This is what we see playing out as we see the realignment within the Democratic Party – or, more specifically, the shift of the traditional Republican establishment to Biden and the Democratic Party.

Organic Crisis

Gramsci used the term ‘organic crisis’ to describe periods where the capitalist system produces a crisis where the ruling class and its system can no longer function as it normally does. The crisis occurs at all levels of society – economic, social, political, and ideological. Because the ruling class cannot resolve the crisis, it poses challenges to the fundamental ideas, values, and organizations on which the previous order was maintained. A ‘crisis of representation’ also emerges where traditional parties are hollowed out because they lack legitimacy; and with them, the rules, norms, and legal constructions that they built. The depth of the crisis means that it is usually not enough to defend or conserve the “normal” but to construct a new settlement. The new settlement needs legitimation which simultaneously appeals to a new set of values and the “common sense” (ideology, beliefs, etc). They require cross-class alliances. Realignments typically occur in relation to crisis, as political parties attempt to respond to the new political, economic, and ideological conditions. They can occur as new parties emerge, or within traditional parties themselves.

The crises of the 1920s to the 1940s in the United States, for example, were resolved partially in the New Deal system - a coalition of unions, the black and white working class, white southern farmers, and intellectuals. To secure a U.S. global hegemony, the Brenton Woods system and security agreements like NATO were constructed. Once that system entered crisis, the ruling class used it as an opportunity to reshape relations which in the U.S. and Britain was settled firstly as Thatcherism and Reaganism and later on ‘Third Way’ and ‘New Labour’ as tech and financial service became dominant forces in the economy.

The Fascist Threat

There are debates today, like in 2016, about whether Trump is simply a right-wing populist, fascist, or traditional Republican. Furthermore, many have looked at whether he has a party apparatus or is an isolated leader. Many of those that are quick to call Trump a “fascist” reject the demands of the workers movement and especially their role in any anti-fascist struggle. For them, the key is securing the prevailing capitalist system through a vote for Biden. A discussion about the relationship of elites to parties is important for what it can reveal about the depth of the crisis, the balance of power between classes, and whether the ruling class sees the possibility of resolving it using existing institutions. The movement of part of the Republican establishment to Biden and the Democrats should not be looked at as temporary, but instead a representation of changing alliances in the face of multiple deep crises.

The danger lurking in a crisis period is that if the ruling class is not capable of maintaining power through its normal means, and the working class cannot take power, due to defeats, lack of organization and leadership, the emergence of ruling-class politics in the form of the far right becomes inevitable. The far-right in the form of authoritarian populism or outright fascism requires a crisis that radicalizes all subordinate classes, and a crisis of representation and authority, allowing its leader to speak in a sense "directly to the people" against a corrupt establishment. Trump proclaims to the middle and working class that the global elite and party establishment have embarked on policies of globalization which has offshored jobs and brought in cheap labor to drive down wages. According to the discourse of authoritarian populists like Trump, the existing institutions subvert the interests of the people and a leader, who reflects the will of the people, is needed to “make America great again”.

The movement from authoritarian populism to fascism as seen in Germany and Italy occurs when there is a socialist movement or more correctly the illusion of a strong socialist movement, which is threatening enough to mobilize an anti-socialist movement. It also requires a mass base to draw support from. As well it requires a ruling class convinced that it cannot rule through the existing democratic state apparatus. A September 22 poll from USA TODAY/Ipsos Poll that revealed that roughly 64% percent of respondents believe “protesters and counter-protesters are overwhelming American cities” should bring concern.

This is a laughable overestimation of the strength of the socialist movement today but one echoed by right wing media, Trump, the Department of Homeland Security, and Federal Bureau Investigations (FBI) in particular. Unfortunately, the left enters this crisis in a position of weakness, despite the 2008 and 2016 periods of radicalization that produced the 2018/19 strike wave, massive increases in membership of left groups, a near win for a self-professed "democratic socialist" presidential nominee, and the recent election of several left democrats throughout the country.

So far, compared to the tasks ahead, the left has not been able to translate those gains into the needed mass movements or independent working organizations like unions or a workers' Party, which could be used to shift the balance of power. The unfortunate thing is that we have yet to shift the balance of power leftward from a four decades-long slip rightward. If Trump and his brand of authoritarian populism has captured the Republican Party, during this period of crisis, it would mean that the far right has a powerful tool to beat back any counter-hegemonic movement.

The 2020 Realignment

When it was evident in 2016 that Trump was the nominee, some delegates and establishment figures like Erick Erickson conspired to block his nomination. Many were skeptical of Trump's lack of political experience. Many were concerned about the unrest that his racist scapegoating of immigrants and his history of sexual violence and sexism would cause. Others were and still are concerned by his flirtations with the alt-right and fascists, and especially of his outright criticism of the Post-9/11 national security state and neoliberal commonsense. Trump represents to them a wild card that can not be easily managed. For the ruling class that supported him, Trump's outsider status was suited for the task of maintaining the current order. Once his nomination was official, about 20% of Republican House members refused to endorse him, and a significant numbers of establishment Republicans like Richard Hanna of New York and Meg Whitman rallied around Clinton.

The Republican Party is now the Party of Trump. Since assuming the office Trump has confirmed part of the establishment's fears and relaxed them in other regards.  He has worked to build a cabinet of loyalists and effectively remade the Party into his own.  For the first two years he had to battle the party establishment like John McCain and Jeff Flake, but by 2019 Trump built a cabinet of loyalists and won the trust of many that opposed his initial run. This was exemplified by the fact that every Republican member of the House opposed his impeachment. Also, by 2019, congressional GOP had become more and more aligned with Trump, as opposition members retired and were replaced by more pro-Trump figures. As well the 2020 Republican Party is simply Trump’s platform from 2016. Trump in office was able to reassure the establishment by governing largely according to neoliberal orthodoxy as with his Tax Cuts and Jobs Act of 2017 and record stock market.

For the ruling class that supports Trump, he is useful. Trump's populism and discourse avoids naming and placing blame squarely on the capitalist system at the heart of the Great Recession and the austerity regime that gave rise to the anger that brought him into office. Trump, like other populists makes vague promises to various sections of society to win office and once in power, works to secure the position of the ruling elite and old power structure.  Trump's scapegoating divides the subordinate classes. His discourse whips up sections of the state and mostly middle class into action and violence against counter-movements like the left. This is crucial in a period of increasing polarization of wealth and more unequal distribution of wealth and goods.

The COVID19 pandemic, in accelerating crisis of legitimacy, and the dramatic decline of the Post World War 2 global system of governance has begged serious questions of Trump. The ruling class is concerned about the decline of the Post World War 2 institutions and alliances like North Atlantic Treaty Organization (NATO), United Nations (U.N.), International Monetary Fund (IMF), and other multilateral cooperation that have sustained U.S. global hegemony. Though Trump has continued Obama's Pivot to Asia meant to challenge China's growing military and global influence, Trump has also undermined the alliances thought to be needed to accomplish it.

For years, Trump has allegedly spoken about withdrawing from NATO, and has questioned the U.S. commitment to allied states in the case of war. Trump unilaterally withdrew from the Iran nuclear agreement, Paris Agreement, took the U.S. out of the World Health Organization, and supported the commitment of right-wing populist figures in Europe to abandon the European project. 

At the same time, to some, Trump simply represents a hyper-realism about the possibility and sustainability of the post-World War 2 international order. Trump reflects a realization of the limits of American power and the domestic frustration of foreign conflicts brought by the wars in Iraq and Afghanistan. The U.S. hegemony since WW2 is built on its monetary dominance, control of international institutions, expanding domestic consumer market, and through its full spectrum dominance (land, sea, air, space and cyber). The 2008/9 crisis exposed the limits of the U.S.'s ability to maintain that structure in the same way.

The ruling order is also concerned by the polarization and infights within and amongst governmental institutions like the Department of Homeland Security (DHS), Department of Justice (DOJ), FBI and intelligence agencies like the Central Intelligence, Agency (CIA). Some are concerned by Trump’s alleged usurping of the independence of Homeland Security and DOJ as seen in a recent IG complaint which alleges that top political appointees in the DHS repeatedly instructed career officials to modify intelligence assessments on the George Floyd protests to suit Trump's agenda.

With COVID, Trump's decisions have reflected a breakdown of normal governance. Trump and his administration, along with Democratic leadership, were able to inject Wall Street and the rich with $135 billion in tax breaks, $2.2 trillion in the Coronavirus Aid, Relief, and Economic Security Act (CARES) in late March, $500 billion Federal Reserve program, and the Paycheck Protection Program (PPP). Trump, however, has strayed away from mainstream capitalist economists and refused to continue negotiations on a second round of stimulus whilst promoting conspiracy theories and misinformation around the virus.

The Ruling Class Case for Biden  

One of the main tasks of the ruling class is to figure out how best to place the cost of the crisis on the backs of ordinary people without arousing their anger. One section of the ruling class sees the Democratic Party and Biden as the last hope of preserving the neoliberal order, using traditional institutions of power, negotiation, and reform. Having survived a 'civil war' that first erupted after the failed 2016 presidential election, the Party has shown itself able to manage the crisis and bring legitimacy back to the system. With Biden as the nominee and the establishment still retaining their leadership, the Democratic Party has seemingly accomplished the impossible – a revival of centrism in the midst of its collapse.

The economic crisis and pandemic have exacerbated the ruling class fear of a resurgence of labor militancy like in the 1930s and 1960s. The last economic crisis brought waves of protests, new political formations, and levels of organization. In 2008, Obama was able to use rhetoric and symbolism, along with repression, to stop the emergence of large-scale mass movements. Similarly, Trump has used his outsider status and promises to a portion of the bottom 90%, scapegoating, and repression to avoid creating mass movements. This ‘peace’ was initially helped to be achieved by low unemployment. The crisis and the potential for an explosion of movements has brought urgent questions about whether the ruling class can govern in the old way or if something new is needed. They hope that Biden will be able to bring a political equilibrium using the concessionary and coercive powers of the state. In the same way, on the economic front, there is a hope that Biden will be more “rational” and listen to his advisers, appointed from the banking industry and Ivy League institutions.

Biden and the Democratic Party may have enough union and social movement support to conceivably tame any movements that threaten to go outside of its boundaries. This is mostly because the Democratic Party elites hopes to utilize ‘lesser evilism’ and ‘popular front’ type anti-fascism strategies to defend the state. It is also because the reformist character of the left wing of the party feels that it needs a left consensus in the halls of power to put forth its agenda. To keep their positions, they will need to play it safe with the establishment or risk being primaried or facing discipline from the Party. They also hope that the left of the Party and labor unions will translate concessions into “reforms”, which will placate the working masses. But as Gramsci once warned, “the crisis consists precisely in the fact that the old is dying and the new cannot be born; in this interregnum a great variety of morbid symptoms appear.”

As such, Biden has received numerous establishment Republican, national security, and finance establishment support heading into the 2020 election. At this years' Democratic National Convention, more of the establishment than 2016 came out in support of Biden; these included: Cindy McCain, John Kasich, Susan Molinari, and Meg Whitman, former eBay and Hewlett-Packard CEO, and former Republican Secretary of State Colin Powell. On the final day of the convention, groups of over one hundred McCain 2008 and thirty Romney 2012 campaign staffers endorsed Biden, in addition to a group of nearly two dozen George W. Bush campaign and administration staffers.

In addition, Biden received the endorsement of seventy-three former U.S. national security officials in the Republican administrations, including former heads of the CIA and FBI and Trump administration officials. A group of a hundred prominent Republicans and independents, including Todd Whitman, former Michigan Gov. Rick Snyder, and former Massachusetts Gov. Bill Weld, launched ‘Republicans and Independents for Biden’ to campaign for Biden. With his support in the union and social movement, Biden is the only candidate that can seem like a political alternative to one element of their base, and a person capable of preserving the existing status quo to another. Although cross-party endorsements have been common in the last few conventions, the alliances have been temporary.

Trump and Authoritarian Populism’s Stable Base

Trump has been able to build a solid base amongst downwardly mobile white working and middle classes. It should be noted that working-class whites are not Trump’s only base or even main base. Though for example, neoliberalism was, as David Harvey argues a “political project to re-establish the conditions for capital accumulation and to restore the power of economic elites”, it required a new “common sense” and a cross-class alliance. Typically, periods of crisis lay bare the contradictions inherent in capitalist society and more specifically within uneasy coalitions such as Trump’s.

The middle class may feel dominated by banks and sections of big business, and workers may grow angry at the austerity that is a part of the ‘recovery’. One can see that the recovery packages were aimed at delivering for big business by giving bits to different sections of the base. When anger broke out that the 80 percent of the stimulus tax cuts went to millionaires and the Small Business Association’s Paycheck Protection Program largely went to powerful companies instead of providing relief to millions of American small businesses, Trump was able to divert the anger instead to the alleged intransigence of the Democratic Party and at governors who wouldn’t reopen the economy. It should be noted that the nativism Trump embodies was once relegated to a small faction of the Party (paleoconservatives such as Pat Buchanan), but has since been mainstreamed as neoliberalism has devastated their living standards. The nativism, as well as nationalism, acts in a way like W.E.B. Dubois’s “psychological wage”, used to maintain the middle class of the base that feels beaten down.

This nativism allowed Trump to secure so many union votes that Hillary Clinton lost Pennsylvania, Wisconsin, and Michigan. Despite COVID and massive unemployment, Trump's approval rating has averaged around 40%. By comparison, a CBS News/New York Times poll showed President Bush’s final approval rating was twenty-two percent, due to views on the Iraq war and Great Recession. This shows that Trump and his authoritarian populism has a solid base, which could be mobilized. Conversely, an important caveat is there are indications from national polls and from swing states that working-class white voters aren’t as likely to vote for Trump as in 2016.

It should be noted as well that 2016 showed most of Trump’s supporters were largely affluent Republicans and come from the middle class. This is consistent with most authoritarian populists whose base is typically the middle class, who during times of crisis vacillate between the working class, which is engaging in struggle, and the capitalist class seeking to restore its order. Clearly, Trump, like other authoritarian populists, win support from sections of working class as well. This fact informs the prospect and strategy of building a socialist movement.

Right-wing populists use their platform to win the support of different classes to get into office. Once in office they accommodate to the old power structure and big business whose interests they try to protect, and whose financial support they require. Within the classical authoritarian populism of Italy, once in power, they supported the development of cartels and monopolies like FIAT and Montecatini.

There is nothing new about working-class whites supporting a Republican. The movement of working-class whites away from the Democratic Party occurred as the Civil Right's movement embraced the Democratic Party and its power was in decline. The Republicans starting in the 1950s were able to exploit the divisions that began to appear within the Democratic Party due to the Party's national leadership calling for de-segregation, while the Southern Party opposed it. The New Deal coalition undercut the Republican Party's traditional support in the industrial Northeast while maintaining the Democratic Party's base in the South. This left Republicans in the wilderness as exemplified by the fact that the Republicans only managed to win the White House in 1952 and 1956 (Pres. Dwight Eisenhower) and in 1968 and 1972 (Pres. Nixon) and controlled the Senate for only four years, 1947 to1949, and 1953 to 1955.

Trump was able to capitalize on the disappointment of Obama's failures to deliver on his progressive platform by partially playing on the racism latent in U.S. society. Obama's 2008 "Coalition" was unprecedented because it was built on a new consensus and a new set of alliances that brought in white working-class voters from the Midwest. With his 2008 victory, Obama included a big majority in the House and a post-neoliberal consensus that many thought would be the basis for a reversal of the 40 years of economic policy. Even though Obama lost the white working class vote by 18 points, this was a significant improvement over 2004 when they lost them by 23 points and he was able to win because of the turnout of voters of color and students. Obama’s election and subsequent base were buoyed by a movement to the left on war and health care issues and a discrediting of the neoliberal orthodoxy. If the New Deal Coalition was broken by “race” and white backlash to Civil Rights in the 1960s, Obama's victory seems to have meant a decrease in importance to “race” and the beginning of an economic populism.

Many people today forget the astronomical expectations of Obama when he got into office. Obama’s election occurred during the biggest recession since the Great Depression, which challenged the neoliberal “common sense” of the past four decades.  Obama’s popularity was nearly 80 percent on the eve of the election. His utterance that the “age of conservatism is through” seemed real. A USA Today/Gallup before the election showed that most Americans believe that Obama would be able to achieve every one of his ten major campaign promises, “from doubling the production of alternative energy to ensuring that all children have health insurance coverage.” However, because Obama and the Democratic Party weren’t willing to deliver a definitive break from neoliberalism, and the left wasn’t able to present a real political alternative, a year later, the Right were able to begin gain back seats and lay the basis for right populism.

Trump was able to win the backing of some white workers largely through playing on their disappointment and promises to reverse the past forty years of austerity and neoliberalism. Through theatrics and vague populist statements, Trump imbues the aura of fighting for working people instead of trimming around the edges like Obama.  A 2017 Harvard Business Review textual analysis of Trump’s campaign speeches showed that the word “workers” appeared more frequently than any other word other than “donors”, even going as far as promising to make the Republican Party a “Workers’ Party” .

The Republican establishment and the left backing Biden are on an impossible quest to defend institutions that no longer have legitimacy. Democrats like AOC are happy to frame the contest as one between ‘fascism’ on one hand and ‘democracy’ on the other. The left backing Biden tend to be reformist who see crises as cyclical but short term and don’t require radical change or the self activity (strikes, protests, etc) of working people. The capitalist economic and political systems are crisis prone, and will cause misery and pain in the service of finding a resolution. The huge unemployment rate, skyrocketing sovereign debt, global pandemic, and crisis of legitimacy, not to mention the ecological crisis, make it likely that this Recession will be deeper than even 2008.

As we have learned in other periods, things getting worse do not necessarily lead to increases in political struggle and victories for the left. The crisis of the 1970s brought a neoliberal settlement – a victory for the Right and capital.  The threat of fascism today can only be countered by a political strategy. Recognizing that the balance of power is by far stacked against the workers movement, the left must urgently provide the basis for a political alternative. The left must have an answer to unemployment, COVID, and the threat of war outside of simply defending capitalist institutions from the far right that seeks to remake them. It means taking away the fascist base.

One Hundred Years of Indian Communism

By Prabhat Patnaik

Republished from International Development Economic Associates.

A theoretical analysis of the prevailing situation, from which the proletariat’s relationship with different segments of the bourgeoisie and the peasantry is derived, and with it the Communist Party’s tactics towards other political forces, is central to the Party’s praxis. A study of this praxis over the last one hundred years of the existence of communism in India, though highly instructive, is beyond my scope here. I shall be concerned only with some phases of this long history.

While the Sixth Congress of the Communist International (1928) analysed the colonial question, advancing valuable propositions like “Colonial exploitation produces pauperization, not proletarianization, of the peasantry”, it put forward a line of action for Communist Parties that was sectarian in character; indeed the period following the Sixth Congress, often referred to as the Third Period, is associated with sectarianism. It was at the Seventh Congress in 1935, in the midst of the fight against fascism, which had claimed Ernst Thaelman, Antonio Gramsci and many others among its victims, that this sectarianism was rectified and the need to form united fronts was emphasized. The Seventh Congress tendency was translated into the Indian context by the Dutt-Bradley thesis calling for the formation of an Anti-Imperialist People’s United Front.

The economic programme suggested for such a front included the right to strike, banning reductions of wages and dismissals of workers, an adequate minimum wage and 8-hour day, a 50 per cent reduction in rents and banning the seizure of peasant land against debt by imperialists, native princes, zamindars and money lenders.

Communists being clandestine members of the Congress (the Indian case differed from South Africa in this respect where dual membership, of the SACP and ANC, was possible), and working in cooperation with the Congress Socialist party, were the outcome of this understanding.

This phase came to an end with the German attack on the Soviet Union. The Communist Party’s understanding that the nature of the war had changed because of this attack, though striking a sympathetic chord among many leading Congressmen, was officially rejected both by the CSP and the Congress, which actually launched the Quit India movement at this very time (in which many Communists who had been members of the Congress were also jailed for long periods).

With independence, the question of the nature of the new State and the relationship with the bourgeoisie came to the fore. It caused intense inner-Party debate and ultimately divided the Party. The CPI(M)’s theoretical position, enshrined in its programme, took off from Lenin’s position in pre-revolutionary debates within the RSDLP, a position that was to underlie, one way or another, all third world revolutionary programmes in the twentieth century. Lenin’s argument had been that in countries where the bourgeoisie came late on the historical scene, it lacked the capacity to carry through the anti-feudal democratic revolution, for fear that an attack on feudal property could well rebound into an attack on bourgeois property. It therefore could not fulfil the democratic aspirations of the peasantry. Only a revolution led by the working class in alliance with the peasantry, could carry the democratic revolution to completion, by breaking up feudal property, smashing feudal privileges, and redistributing land. This, far from holding back economic development, would in fact make it more broad-based by enlarging the size of the home market through land reforms, and also more rapid, by accelerating the growth of agriculture.

The post-independence Indian State’s eschewing of radical land redistribution, and its encouraging feudal landlords instead to turn capitalist on their khudkasht land, along with an upper stratum of the peasantry that acquired ownership rights on land from large absentee landlords, was reflective of the bourgeoisie’s entering into an alliance with landlords. Since it was a bourgeois-landlord State under the leadership of the big bourgeoisie, that was pursuing capitalist development, which in the countryside entailed a mixture of landlord and peasant capitalism, the task for the proletariat was to replace this State by an alternative State formed by building an alliance with the bulk of the peasantry, and to carry the democratic revolution forward, eventually to socialism. While the bourgeoisie had ambitions of pursuing a capitalist path that was relatively autonomous of imperialism, it was, the Party noted, collaborating increasingly with foreign finance capital.

Two aspects of this characterization deserve attention. First, it recognized that while capitalist development was being pursued, it was not under the aegis of imperialism. The bourgeoisie was by no means subservient to imperialism, a fact of which the use of the public sector against metropolitan capital, economic decolonization with the help of the Soviet Union, in the sense of recapturing control over the country’s natural resources from metropolitan capital, and the pursuit of non-alignment in foreign policy, were obvious manifestations. Developing capitalism at home in other words did not mean for the post-independence State joining the camp of world capitalism.

Second, the State, while it manifested its class character in defending bourgeois and landlord property and ushering in capitalism, including junker capitalism, did not act exclusively in the interests of the bourgeoisie and the landlords. It appeared to stand above all classes, intervening even in favour of workers and peasants from time to time. Thus while it presided over a process of primitive accumulation of capital, in the sense of the landlords evicting tenants to resume land for capitalist farming, it prevented primitive accumulation in the more usual sense, of the urban big bourgeoisie encroaching on peasant agriculture or artisan production. On the contrary, it not only reserved a quantum of cloth to be produced by the handloom sector, but also intervened in agricultural markets to purchase produce at remunerative prices, an intervention of which the agricultural capitalists, whether kulaks or landlords, were by no means the sole beneficiaries. Likewise, a whole array of measures for agriculture, such as protection from world market fluctuations, subsidised inputs, subsidized institutional credit, new practices and seed varieties being disseminated through State-run extension services, though they conferred the lion’s share of benefits on the emerging capitalist class in the countryside, also benefited large numbers of peasants.

The capitalist development that was pursued was thus sui generis. It was a capitalist development from within, not necessarily with the blessings of imperialism, and, notwithstanding increasing collaboration, often even at the expense of metropolitan capital. Because of this peculiar character, it did not cause an unbridgeable hiatus within society, i.e. within the ranks of the classes that had fought imperialism together during the anti-colonial struggle. Put differently, while the bourgeoisie betrayed many of the promises of the anti-colonial struggle, such as land to the tiller, it did not as long as the dirigiste regime lasted, betray the anti-colonial struggle altogether. This is also why the Party while putting itself in opposition to the regime, supported many of its measures, such as bank nationalization, the development of the public sector and its use for recapturing control over natural resources from metropolitan capital, FERA, and others.

This sui generis character of the capitalism that was being developed has misled many into thinking that it was an “intermediate regime” that presided over it and not a bourgeois-landlord State; but this mistake itself is testimony to its sui generis character. This development could not last for at least four reasons: first, the collapse of the Soviet Union that had made such a development trajectory at all possible; second, the fiscal crisis that the post-independence State increasingly got into inter alia because of massive tax evasion by the bourgeoisie and the landlords; third, the formation of huge blocks of finance capital in the banks of the advanced capitalist countries, especially after the “oil-shocks” of the seventies, which went global after the overthrow of the Bretton-Woods system (itself partly engineered by this finance capital), and which took advantage of the fiscal crisis to push loans to countries like India; and fourth, the fact that the dirigiste regime could not garner the support of the poor, notwithstanding its many pro-poor achievements compared to the colonial period.

The neo-liberal regime under the aegis of the now globalized finance capital represents the pursuit of capitalism of the most orthodox kind, as distinct from the sui generis capitalism of the dirigiste period. The State under neo-liberalism promotes much more exclusively the interests of the ruling classes, especially the corporate-financial oligarchy that gets closely integrated with globalized finance capital, and directly also of globalized finance capital itself (owing its fear that there may be a capital flight otherwise). An unbridgeable hiatus now develops within the country, with the big bourgeoisie aligning itself much more closely with metropolitan capital, having abandoned its ambition of relative autonomy vis-à-vis imperialism.

The neo-liberal regime withdraws to a large extent the support it extended to petty production and peasant agriculture, making it much more vulnerable. A process of primitive accumulation of capital is unleashed upon peasant agriculture not from within the rural economy (through landlords evicting tenants) but from agri-business and big capital from outside; likewise the neo-liberal State facilitates an unleashing of primitive accumulation upon the petty production sector, for instance through demonetization and the shift to a GST regime. Reservation of products for this sector is abandoned. The displaced peasants and petty producers move to towns in search of employment, but employment becomes increasingly scarce because of the abandonment of all constraints on technological-cum-structural change in the economy which the system of licensing had imposed earlier. The swelling reserve army of labour worsens the lot of the organized workers. The fate of the peasants, the agricultural labourers, the petty producers and organized workers get inextricably linked, and this fate worsens greatly, leading not only to a massive widening of economic inequality but also to an accentuation of poverty.

At the same time however neo-liberalism has entailed the shift of a range of activities, especially in the service sector (IT-related services) from the metropolis to the Indian economy which inter alia has increased the growth rate of GDP in the economy. This poses a fresh challenge before the Party because of the following argument.

Marx in his Preface to A Contribution to a Critique of Political Economy had talked of a mode of production becoming historically obsolete when the relations of production characterizing it become a fetter on the development of productive forces. A conclusion is often drawn from this that as long as productive forces continue to develop, that mode of production continues to remain historically progressive. An obvious index of the development of productive forces is the rate of growth of the GDP, whence it follows that as long as this growth remains rapid, opposing a regime in the name of its inequity and exploitative character is historically unwarranted. The Communists on this argument should not oppose neo-liberal globalization, but should join other political forces in accepting it, albeit critically.

This argument however cannot stand scrutiny. Economic historians agree that Russia before the revolution was experiencing unprecedented rates of economic growth, especially industrial growth, and the advanced capitalist world as a whole had witnessed a prolonged boom; yet Lenin had no hesitation in calling capitalism of that time “moribund”. In short to take GDP growth as the marker of the historical state of a mode of production is a form of commodity fetishism; it seeks to locate in the world of “things” phenomena that belong to the world of “relations”.

While other political forces accepted neo-liberal globalization, the Party accordingly steadfastly opposed it. It, along with other Left political forces, stood by the workers and peasants who are victims of neo-liberal globalization instead accepting it as a sign of progress, as many Left formations in other countries have explicitly or implicitly done.

This has brought practical problems. Under the dirigiste regime one measure that separated Communists from others was land reforms. When a Communist government came to power, its task was clear, namely to carry out land reforms. But when land reforms have been completed to a significant extent, the next task is not clear. While industrialization is required, what form it should take and in what way it should be effected, are matters on which the state governments (where Communists are typically located) have very little say within a neo-liberal regime. Hence, Communist state governments within such a regime are often forced to mimic, to their cost, other state governments for effecting industrialization. This is an area where much more thinking and experimentation needs to be done.

Neo-liberal globalization itself however has reached a dead-end, a symptom of which is the mushrooming of authoritarian/fascist regimes in various parts of the world, for the preservation of moribund neo-liberal capitalism, through a combination of repression and of distraction of attention towards the “other” as the enemy. Overcoming this conjuncture is the new challenge before Indian Communism in its centenary year.

"It is Totally Naive to Want to Humanize Capitalism": An Interview with Frei Betto

[Photo: Frei Betto meets with Fidel Castro in the 1990s]

By Barbara Schijman

Originally published at Internationalist 360.

Carlos Alberto Libanio Christo, better known as Frei Betto, is a recognized Latin American progressive reference and one of the main figures of the Theology of Liberation. A writer, journalist and Dominican friar, he was imprisoned for four years during the military dictatorship in Brazil, which he opposed with body and soul. During his work as a friar he met, in the favelas of Sao Paulo, the former president Luiz Inácio Lula da Silva, of whom he was an advisor, and in whose government he participated in the Zero Hunger program. He has written more than 60 books, including Fidel and Religion. Conversations with Frei Betto (1985); Mysticism and Spirituality (1997); The Artist’s Work. A Holistic Vision of the Universe (1999); and The Lost Gold of the Arienim (2016).

What thoughts does this pandemic world open up for you?

I believe that the pandemic is nature’s revenge, resulting from years of human domination and devastation. Absolutely everything that we have been doing for the last 200 years, the search for profit and the maximum exploitation of nature’s resources without any care for environmental preservation, results in a lack of control of the chain of nature, which is completely disrupted by human intervention. Many speak of the “anthropocene”, that is, the era of total human intervention in nature; but I prefer to call this situation “capitalocene”. In other words, the total hegemony of capital, of the search for profit, for gain; all of which causes a total imbalance in the natural environment.

This whole process of environmental devastation is the fruit of private capital gain. The problem is not the human being; the problem is neoliberal capitalism. And we must remember that nature can live without our uncomfortable presence; we cannot, we do need nature.

How do you analyze the situation in Brazil?

In my country, the situation is catastrophic because we have a neo-fascist government. I call President Jair Bolsonaro, the “Bagman”, I even gave him this nickname before the Economist Magazine did. Brazil is in a total fire, in the Amazon, and in other areas, and the president has no interest in improving the situation or changing the course of what we are experiencing. Everything that means death suits him. We are living under a genocidal and lying government.

He is so brazen that in his last speech at the UN he said that the culprits for the fires in the Amazon are the peasants, the small farmers of the area and the indigenous people. For this reason there is no doubt that here in Brazil we are living a catastrophic situation managed by a neo-fascist government, which is using more and more religious fundamentalism to legitimize itself. Health matters as little as education. Bolsonaro knows very well that an educated people is a people that has a minimum of critical consciousness. And so it is better for him that the people have no education at all so that they can continue as guides to an ignorant mass. Of course not because of the masses themselves, but because of the conditions of education that are not properly offered to the people. As if all this were not enough, we are now back on a map of hunger, with a tremendous number of people who do not have the minimum necessary of the nutrients provided by the Food and Agriculture Organization of the United Nations (FAO). In short, we are in a tremendous situation. We’ll see what happens in the municipal elections in November.

What scenario do you envision?

I think the elections will be an interesting thermometer to evaluate how our people look at it. But the truth is that, in this, I am not very optimistic. The pandemic has helped a lot so that Bolsonaro has the hegemony of the narrative, because public demonstrations do not exist, they are prohibited, or they are not convenient, so only the voice of the government is heard.

By voting in favor of the political trial against former President Dilma Rousseff, Bolsonaro dedicated his vote to the memory of the Army torturer, Colonel Carlos Brilhante Ustra. His behavior should not be surprising. But what explains that he still maintains a considerable level of popular support?

I have two explanations for this situation. First, the right wing has mastered the electronic system of digital networks, which I prefer not to call “social” because they do not necessarily create sociability. I believe that many people on the left, progressive, have not yet mastered this mechanism. And also, since the owners of these platforms are favorable to sectors close to the government, many use algorithms and other devices to disseminate fake news and all kinds of lies. This has a lot of force because today people find out much more about the news and facts through the digital networks than through the traditional press. This is the first factor. The second factor is related to the mobilization of the poorest people by conservative evangelical churches. And then there are people who have abdicated their freedom to seek safety. That is the proposal of the global right: that each person should abdicate his freedom in exchange for his security.

In the face of the latter, and the hegemonic narrative it describes, what about the voices of the left?

On this we, these who feel part of the left, have a certain responsibility because we have abandoned the work of the base. We have abandoned work with the poorest people in this country. In the thirteen years that we have been in government we have not increased that base work, and this space has been occupied by those evangelical churches and some conservative fundamentalist Catholic sectors. These churches have made a lot of progress. And this also has to do with a project of the United States intelligence since the 1970s. In two conferences that took place in Mexico, the CIA and the State Department already said that the Liberation Theology was more dangerous than Marxism in Latin America and that a counteroffensive had to be made. This counteroffensive comes from the appearance of these electronic churches that were exported to Latin America, Africa, Asia, and other places.

Religion is the first system of meaning invented by the human being. There is no other sense more powerful and globalizing than religion. That is why so many people today are seeking to master this system. And we, who are progressives of the Theology of Liberation, have done here in Brazil an intense and very positive work at the base between the 70’s during the military dictatorship and also during the 90’s, but after that have come two very conservative pontificates, those of John Paul II and Benedict XVI. These were 34 years of demobilization of the basic church, of that church of the basic ecclesial communities; they were 34 years of prejudice against the Theology of Liberation. All of this opened space for this counteroffensive by the evangelical right.

Do you argue that “there is no future for humanity outside of socialism?” How do you build socialism at this juncture?

We must not wait for the end of capitalism to build socialism. We have to build socialism within the capitalist system, that is, to begin popular initiatives of economic solidarity, of sharing goods, of strengthening popular bases. That is where we are starting, there is no other way. We cannot return to the Leninist concept of an assault on the Winter Palace. We have to denounce the capitalist system but create effective alternatives to this system, as far as possible from the popular bases. In that way I believe that we can manage to break this system in the long term, but we have to have initiative and pressure and political forces. This is a long-term, essential task, and I don’t see any other way out at this juncture.

What examples of these initiatives do you claim?

There are many initiatives from popular sectors in different places. In Brazil, the Landless Movement has initiatives that are typically socialist. Recently, with the tremendous rise in the price of rice in Brazil, the MST, which is a big rice producer, has not raised its prices and had a terrible sale. Many people were able to discover the advantages of their family farming, where services and profits are shared among the families that are settled or camped. They are small initiatives that we have to strengthen, and look for spaces in the governments again, because it is very important and immense to work from the government, as we have done during the presidencies of Lula and Dilma.

Unfortunately, we have not taken advantage of all the possibilities, and above all, we have not done work, which for me is fundamental, that has to do with the political literacy of the people. We should have invested much more in that. If we have another opportunity to return to the government we will have to face that work, which is fundamental. If on the one hand the thirteen years of the Workers’ Party government promoted many social advances in Brazil – and they are the best in our republican history – but on the other hand, we have not worked on the political literacy of the people, the strengthening of the popular movements, and the democratization of the media.

There are those who argue that capitalism must be humanized. Is that possible?

It’s a totally contradictory idea. Humanizing capitalism is the same as taking the teeth out of the tiger, thinking that this will take away its aggressiveness; it is totally naive to want to humanize capitalism. There is no possibility of that; capitalism is intrinsically evil. Its own endogenous mechanism is a necrophiliac mechanism. It is a system that feeds on those who work, on those who consume, on the poor. It is a question of arithmetic: if there is not so much wealth there is not so much poverty; if there is not so much poverty there is not so much wealth. It is impossible to humanize capitalism; it is a very naive postulation and unfortunately there are still people who believe in this myth.

How do you generate democratic awareness? How do you work on the democratization of society in times like these?

By means of communication systems -digital, printed, audiovisual, etc.-, translating into popular language many of the concepts disseminated in the mass media. Simple people often do not understand concepts such as public debt, foreign investment, exchange rate fluctuations, and market mechanisms. This requires methodology – which Paulo Freire teaches – and popular education teams.

Can you imagine Lula being the president of Brazil again?

Maybe he will have the opportunity because they are reviewing his judgments and convictions, filled with so many prejudices. Hopefully, he will have the possibility to be a candidate again; it is our hope here.

Can you imagine a less conservative Catholic Church, attentive in fact to the proclamations it defends?

As I said, the Catholic Church has spent 34 years of conservative pontificates that have demobilized much of that popular work of the ecclesial base communities, the raw material of Liberation Theology. This does not come from the heads of theologians, it comes from the bases. All of this has been demobilized. It may be different times since the changes proposed by Pope Francis, but still the intermediate hierarchy between the bases and the people who have power in the church has not been totally changed. We still have a large number of bishops and priests who are very conservative and who do not want to get involved in the popular struggles, are afraid or in search of their comfort, their convenience, and do not want to put themselves at risk. There is a lot of work to be done, but there are sectors of the Catholic Church and of Latin America that are very committed to these struggles for the defense of the rights of the poorest, of human rights; this is very strong in many sectors.

How do you think about the immediate future?

I believe that in the immediate future there is going to be an exacerbation of individualism. The pandemic has required cutting off face-to-face relationships, so people are going to be increasingly isolated, with fewer opportunities to connect with each other and to come together in the streets, in the unions, in the social movements, at least until a vaccine comes to take us out of this situation. And here again the importance of knowing how to manage the digital networks appears. We, the progressive left, have to learn more and more to manage these networks and to change them, because we know that many of them are there only to favor consumption or even linked to services of espionage, intelligence, control of the people. There is a lot of struggle to be done around this because it is a factor that came to stay. Many people are informed through these digital networks. We have to create groups with the ability to dominate these networks, to disprove the fake news and disseminate the truth, the real facts. This is the only way we can do a virtual job of political education.

Is there a Liberation Theology today?

Yes, of course. Liberation Theology has opened its range to other topics that are not only social struggles, but also addresses the issue of ecology, questions of nanotechnology, astrophysics, cosmology, and bioethics. The problem is that we have rather lost the popular foundations, which were the basis of the Theory of Liberation. These foundations have been lost during these 34 years of conservative pontificates. Our main task is to return to the bases, to return to the slums, to return to the peripheries, to return to the poor people, to the oppressed, to the excluded, like black people, the indigenous, the LGBT. We all have to be in this struggle; that’s where we have to walk.

Are you optimistic?

I have a principle and that is we have to save pessimism for better days. We can’t play into the hands of a system that wants us to be quiet, depressed, discouraged; we have to keep fighting. History has many twists and turns. I have been through a lot of things, some very tremendous, others positive. The prison under the Vargas dictatorship, the strength of the popular movements, the election of Lula, the election of Dilma… I am optimistic, yes. We cannot consider any historical moment as definitive.

Translation by Resumen Latinoamericano, North America Bureau

The Austerity Election

[Photo: Morry Gash-Pool/Getty Images]

By Ezra Brain

Republished from Left Voice.

As the 2020 presidential election is approaching its climax, both Joe Biden and Donald Trump are continuing to try to sell this election. For Biden and his supporters, this election is about rescuing democracy from the creeping authoritarianism of Donald Trump. For Trump and his supporters, this election is about continuing the “great American comeback” and fighting back Biden’s supposed “radical socialism.” However, as we enter the final stage of the election, we should be very clear what this election is actually about for the capitalists: deciding which of the candidates will be better at demoralizing and attacking the working class through the implementation of austerity.

It’s The Economy, Stupid

James Carville’s famous 1992 saying that “it’s the economy, stupid” in regards to the Bill Clinton campaign rings more true today than ever. The full impact of the current economic crisis is still unknown. What is generally understood is that Trump’s promise of a “V-shaped recovery” — a recovery where the economy recovers as fast as it crashed — is not happening. In an October 3 article, the New York Times declared that while the “pandemic depression” is over, the “pandemic recession” is beginning. 

In that article, Neil Irwin points to the deep ongoing unemployment crisis, writing, “[the jobs numbers imply] that even as public health restrictions loosen and as vaccines get closer, the overall economy is not poised for a quick snapback to pre-pandemic levels. Rather, scarring is taking place across a much wider range of sectors than the simple narrative of shutdown versus reopening suggests.”

Even this statement could be overly optimistic. In a September 30 article for the Financial Post, David Rosenberg argues that “We are in a depression — not a recession, but a depression. The dynamics of a depression are different than they are in a recession because depressions invoke a secular change in behavior. Classic business cycle recessions are forgotten about within a year after they end. The scars from this one will take years to heal.”

The current crisis is the deepest in decades as successive waves of mass layoffs have left millions without work. Indeed, many of these layoffs were due to industry-wide shutterings such as in airlines, hospitality and the arts. It is unclear if some of these jobs will ever return, adding to the scars of the crisis In addition, an untold number of small businesses have closed due to this crisis as even major corporations filed for bankruptcy. For a period during the height of the first wave of the pandemic, the capitalists were in bad shape.

This crisis isn’t just limited to the United States. In recent weeks, the New Zealand economy has shrunk more than it has any time since the Great Depression, and the European recovery has become a “summer memory,” in the words of the New York Times. In Argentina, about half the country is in poverty as Latin America experiences their worst economic contraction ever. 

In short, the impacts of the crisis are deep and on-going. Add to this the very likely fact that another shutdown could be looming on the horizon, and it becomes clear that whoever occupies the White House next will be principally tasked with addressing the economic crisis before essentially anything else. The next president will be the “Pandemic Recession President.”

Austerity on the Horizon

Given that either Trump or Biden will be charged with addressing the current crisis, it is important to understand that — on economic matters — they are largely unified. Both men support bailouts for big business and austerity for the working class. Indeed, in the current moment, the bailouts for businesses are even larger than they were in 2008, there’s been essentially no oversight on how businesses use this money, and it’s all funded with taxpayer dollars. So, essentially, the government is fleecing the working class, who are deeply struggling, in order to funnel more money to the capitalists. They will then throw up their hands about the deficit and how we need to decrease spending, and rather than stop writing corporations blank checks, they will “balance the budget” through cutting programs for the most vulnerable. 

This is what austerity is:  the government slashes government spending (almost always on social services), ostensibly in order to get out of an economic crisis. However, austerity is really just an excuse for capitalists to find ways to grow their profits through increasing exploitation of the working class. Unsurprisingly, under austerity, it is the working class and the most vulnerable who disproportionately pay the price. 

Austerity was most famously in the news during the economic crisis of 2008. Europe specifically was devastated by austerity imposed by politicians of both the Left and the Right. As an example, the United Nations expert on extreme poverty wrote a report about the impact of austerity on the UK. The report says:

It thus seems patently unjust and contrary to British values that so many people are living in poverty. This is obvious to anyone who opens their eyes to see the immense growth in foodbanks and the queues waiting outside them, the people sleeping rough in the streets, the growth of homelessness, the sense of deep despair that leads even the Government to appoint a Minister for suicide prevention and civil society to report in depth on unheard of levels of loneliness and isolation. And local authorities, especially in England, which perform vital roles in providing a real social safety net have been gutted by a series of government policies.  Libraries have closed in record numbers, community and youth centers have been shrunk and underfunded, public spaces and buildings including parks and recreation centers have been sold off.  

That’s just a taste of the wreckage that austerity brings. It destroys the social safety net in the midst of an economic crisis that plunges millions into poverty. As more and more people are thrown into precarious situations, things like health, education, and retirement become underfunded and overburdened. The results are disaster and despair. 

Both the Democrats and the Republicans are unified behind austerity. We can see this in the fact that the bailouts passed so far have bipartisan support. Another example is how, in their recent city budget, the almost entirely Democratic New York City Council voted for a devastating austerity budget. Indeed, we too soon forget that the crippling austerity that was forced upon Puerto Rico was done under Obama. 

Both Trump and Biden will oversee deep cuts to the practically non-existent social safety net of the United States. Education will be gutted, and so-called “entitlements” programs may be privatized. Any bailout money that comes will continue to be funneled into the pockets of big capital.  

Biden is the Man for the Job? 

While the race for president is far from over — and if 2016 taught us nothing else, it taught us not to call the race before it’s over — the chance of Biden taking power is seeming increasingly likely. He’s ahead by an average of 10.8% nationally and is leading in most swing states. In addition, Biden has more support among billionaires and sectors of the capitalist class than Trump does and is raising significantly more money from Wall Street than Trump.

The answer to why Biden is drawing this support from capital is clear: they think that he will be the best at implementing austerity. The rich and big businesses want to ensure that there is a smooth implementation of austerity so that they are able to continue to enrich themselves off of our labor without pushback. Their hypothesis that Biden is the man to do that certainly has precedent.

In the UK, Labour Prime Minister Tony Blair was able to continue the devastating policy of Thatcherism and use his “left” trappings to solidify it. Indeed, Blair didn’t just continue Thatcher’s austerity; he added to it. Two months after promising during the election to not introduce university tuition fees, he did — marking the first time that British universities had tuition fees since 1962. While Blair faced some pushback for his austerity, because he was a member of a supposedly left-wing party, he didn’t face nearly the amount of public pushback that Thatcher did before him. 

In the United States, Bill Clinton was able to escalate Reaganism and deepen the neoliberal offensive but faced little public backlash because, as a Democrat, he had a shield against criticism. Thomas Frank put it best when he said: “Bill Clinton was not the lesser of two evils, he was the greater of them. The magic of him being a Democrat was that he did things that Republicans could have never accomplished. Welfare reform, the crime bill, NAFTA—things that injured members of his coalition. Clinton got done what Reagan couldn’t do and what Bush couldn’t do.”  

However, we don’t just need to look to past examples to see that Biden intends to be no friend to the working class in the current crisis. Biden’s website touts his experience running the “recovery” in 2009, but for working people, there never really was a recovery. Instead, an entire generation was forced into precarious labor and crippling student debt while millions lost their homes. That is the legacy of the Obama-Biden “recovery.”  And Biden is proud to have overseen it. Obama was an austerity president, and Biden will be the same. 

Frank’s words have a disturbing resonance in the current moment. As Biden is leading a coalition that includes most of the Black Lives Matters movement, much of the organized left, and all of the progressive wing of his party, what will he be able to do with them as a shield? Capital is supporting him for a reason. What will he be able to do that Trump can’t? 

We’ve been down this road before, and we cannot go down it again. We cannot — we must not — give our faith and support to a candidate who promises his capitalist donors that “nothing [will] fundamentally change.” We are in the midst of the worst economic crisis since the Great Depression, and both Biden and Trump are going to ensure that there is more money for big business and more austerity for the working class. 

However, it is important to note that the current moment is very different from the 1990s. The global capitalist crisis is deeper, and years of neoliberalism have begun to polarize people to the left. Additionally, Biden’s control over his coalition is much weaker than Clinton’s was. Indeed, while the prevalence of lesser evilism is helpful for whipping votes for Biden but it does lead to a large sector of Biden’s electoral base who disagree with policies. This could result in him being in a very weak position as president as his coalition is held together by opposition to Trump, not support for Biden. All in all, the task seems much harder for Biden than it did for Blair or Clinton.

In addition, if Trump is able to pull out a win, we should be very clear that he will also bring crippling austerity. His first term has already shown him to be a tireless ally of capital — especially given that many of his policies seem intended to specifically enrich himself and his family personally — and he is already withholding aid as part of a political tactic. However, Trump’s instability is leading him to be a more erratic ally to capitalists than Biden would be. Especially in the face of both the pandemic and the uprisings against police violence over the summer, Trump showed that he was not able to calm the situation, leading to frequent crashes in the market. While it is not set in stone yet, it does seem like a growing sector of capital is done with Trump and have decided to put their eggs into Biden’s steadier basket.

To resist the coming austerity, we must mobilize and organize to resist the coming onslaught of austerity. The only way to do this is through using the power of the working class to attack the capitalists and their politicians where it hurts: we need to withhold our labor through strikes and work stoppages. The capitalists are counting on the fact that Biden will be a more stable servant of capital who will receive less resistance as president when he implements austerity. We have to prove them wrong. Biden or Trump, we must be ready to fight back every single time the capitalists try to make us pay for their crisis.  

Socialism's Increasing Popularity Doesn't Bring Media Out of McCarthy Era

By Joshua Cho

Republished from FAIR.

Ever since the Great Recession in 2008, and accelerating with Sen. Bernie Sanders’ 2016 presidential run, there has been a resurgence of popularity and interest in socialism in the US, and an increasing skepticism of capitalism. A 2019 Pew poll (6/25/19) reported that 42% of respondents had a favorable view of socialism, with particular sympathy shown among people who are Black (65%), Latino (52%), have family incomes below $30,000 (50%) or are between the ages of 18-29 (50%). In a 2019 Gallup survey (12/18/19), 38% saw socialism positively—more than the 34% who identify as conservatives (Gallup, 7/27/20). Gallup (11/25/19) noted that Millennials were especially attracted to socialism, with slightly more viewing socialism positively than capitalism.

Democrats across the country view socialism more positively than capitalism, with a large majority willing to vote for a socialist as president. Despite questions of what the term “socialism” means to Americans, this growing interest has provoked articles decrying the “problem” that socialism doesn’t freak out Democratic voters the way it does other Americans (Slate, 2/24/20). The Columbia Journalism Review (5/8/18) noticed that while “the radical left in the U.S. has felt invigorated in recent years,” it still hasn’t “earned left-wing voices column inches in most mainstream outlets,” with coverage limited to being “about those voices, rather than by them.”

Looking at the representation of socialism among the hundreds of pundits in corporate media, one can be forgiven for almost thinking socialist pundits don’t exist.

The New York Times opinion writer Elizabeth Bruenig appears to be the only pundit employed by corporate media who both explicitly identifies as a “socialist” and makes arguments for some form of socialism in the U.S. (Washington Post, 3/6/18).

Laurence O’Donnell, host of MSNBC’s Last Word, identifies as a “practical European socialist,” and argues that “we’re all socialists now,” because even Bill O’Reilly is in favor of “socialist programs” like Social Security and Medicare. The MSNBC host claims to “embrace” the label in order to “counterbalance” the excessive influence of McCarthyism in the U.S. (LA Times, 3/16/13), but it’s difficult to discern a distinctly socialist perspective in his commentary.

Straightforward advocacy of socialism is something you very rarely see in corporate media (Washington Post, 3/6/18).

The Hill’s Krystal Ball (2/17/19), cohost of the show Rising, criticized Trump’s remarks claiming that “America will never be a socialist country” for presenting the false dichotomy of “smash-and-grab capitalism” or “what’s happening in Venezuela.” The class-conscious commentator described Sanders and other democratic socialists like Rep. Alexandria Ocasio-Cortez as “messengers for a compelling message with an actual vision.” Although she seems not to explicitly embrace the “socialist” label like Bruenig or O’Donnell, it may be fair to describe her as a democratic socialist pundit, because she often speaks favorably of the ideology, and provides a friendly platform to socialists on her show.

It appears corporate media give some degree of space for pundits to call for replacing capitalism with a new system, so long as they don’t identify themselves or that new system as “socialist.” Times columnist Michelle Alexander hasn’t explicitly identified as a socialist, but has argued (6/8/20) that “transforming our economic systems” is necessary to achieve “racial justice” and a “secure and thriving democracy,” while approvingly citing figures like W.E.B. Du Bois, Albert Einstein, Hellen Keller and Paul Robeson, all of whom argued that the U.S. “must move toward some form of socialism.” The Post’s Katrina Vanden Heuvel also hasn’t called herself a socialist, but has argued (12/10/19) that “capitalism is broken,” and that we need a “new system to better serve the common good,” without describing this new system as “socialism.”

Although CNN’s Van Jones was involved in the early 1990s with Standing Together to Organize a Revolutionary Movement (STORM), a defunct Maoist Bay Area group, since 2000 or so, he’s identified with the “green capitalist” movement instead (Green America, Fall/2007).

“Socialism” itself is a very contested term, and many self-described socialists may not consider some or all of these pundits to be genuine socialists. Conservatism is also a broad range of ideologies, not all of which are consistent with each other, which also has self-identified conservatives who denounce others as unworthy or inconsistent with the label (New York Times, 1/14/15; The Hill, 12/16/19). Conservative audiences are not expected to approve of all pundits who identify as conservatives, or who speak favorably of conservatism. Likewise, while some socialists may be unsatisfied with these figures, it is still significant that there are pundits who embrace being labeled a “socialist” and explicitly call for alternatives to capitalism within the US.

Venezuelan opposition figure Juan Guaidó has remarked that “socialist” figures like Ocasio-Cortez would be considered social democrats in his own country (New Yorker, 6/10/20). The Times’ Paul Krugman (2/13/20) is no socialist, but he has criticized Bernie Sanders for presenting himself as a “socialist,” rather than a “social democrat,” making himself “an easy target for right-wing smears.”

It’s more common to see criticism of capitalism (New York Times, 12/4/17)—but still not very common.

One can find criticisms of capitalism in corporate media, but that is ideologically consistent with liberals or progressives who call for government intervention to deal with market failures. Columnists like the New York Times’ Michelle Goldberg (12/4/17), who noted that “capitalism looks like the god that failed” to young people because of the “increasingly oligarchic nature of our economy,” and the Times’ Nicholas Kristof (5/23/20), who condemned “dog-eat-dog capitalism for struggling workers and socialism for the rich,” are critics of capitalism in corporate media who aren’t necessarily calling for socialism.

Other pundits have normalized socialism by claiming it already exists in a limited form, because they conflate all government spending on social programs with socialism—not advocating for socialism so much as claiming that it already exists in the US. Thus the Times’ Roger Cohen (3/8/19) and the Post’s Catherine Rampell (3/21/19) argue that “Europe” demonstrates how “socialism and the free market are compatible,” and dismiss the capitalist/socialist dichotomy as not being a “meaningful binary,” because “all modern countries have elements of capitalism and socialism.” These pundits make arguments similar to O’Donnell’s, defending a socialism that’s hard to distinguish from liberalism, though without identifying with the label as O’Donnell does.

A few other commentators have praised socialism and defended figures who identify as socialists. MSNBC’s Chris Hayes defended Bernie Sanders from McCarthyite criticisms, and praised the Democratic Socialists of America. MSNBC’s Stephanie Ruhle has made remarks on-air that appear to defend democratic socialism, in addition to explaining why it is a more desirable alternative to communism (NBC News, 2/27/20). The Washington Post’s Eugene Robinson has written several columns urging Democrats to embrace the party’s more progressive base (7/2/18, 7/1/19), and described “democratic socialism” as something that is “perfectly appropriate” for Ocasio-Cortez’s district, in addition to endorsing (1/15/15) Martin Luther King, Jr.’s call for “economic equality”—which King suggested could be called “democratic socialism” (In These Times, 1/15/18).

Like Hayes and Ruhle, Times’ columnists like Jamelle Bouie and Farhad Manjoo have published numerous columns that appear to praise socialism or policies associated with socialists, but that appears to be the farthest they can go, as neither of them have ever embraced the label (New York Times, 2/6/19, 2/14/19, 10/22/19, 3/11/20).

“Open advocacy of socialism is now a normal part of our political discourse,” writes the Washington Post‘s E.J. Dionne (2/10/19)—but it’s still not a normal part of our media conversation.

When socialism or socialists are discussed favorably, or at least not adversely, it’s often in opposition to revolutionary socialist ideologies like Marxism-Leninism (the official ideology of around 20% of the world’s population, and of the US’s greatest geopolitical rival). Democratic socialism is often contrasted with socialist states of the Global South, whether Communist countries like China or Vietnam, or multi-party systems like Venezuela or Nicaragua, which are frequently presented by even the left-most pundits as justifiable targets of imperialism. Instead, wealthy, predominantly white Scandinavian countries like Denmark and Norway are often upheld as the preferable socialist ideal (New York Times, 4/27/19).

Although the Washington Post’s E.J. Dionne Jr. (2/10/19) argued that Trump and the Republican Party’s attempts to tar all Democrats as “socialist” and antithetical to “American values” will fail because “open advocacy of socialism is now a normal part of our political discourse,” it’s quite clear that McCarthyism is still constricting political discourse in the US. While socialism is being discussed more often, there’s a huge disparity between its acceptance among the U.S. population and the representation of socialists among pundits at the biggest news outlets in the country. There are almost no pundits employed in corporate media who feel comfortable openly identifying as a socialist and calling for socialism as an alternative to capitalism.

Perhaps it’s no surprise that corporate media outlets owned by oligarchs and the investor class are hostile to socialism, but when socialist pundits are virtually nonexistent at these agenda-setting outlets, despite 76% of Democrats being willing to vote for a socialist, it’s clear that these institutions are intended to propagandize the U.S. population into accepting the status quo. Even when politicians and policies often described as “socialist” are presented in a positive light, the fact that these journalists are uncomfortable embracing the label is evidence that McCarthyism still exercises a formidable restraint on the U.S. political imagination and discourse.

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

[PHOTO: Al Drago/Getty]

By Steven Miller

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

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

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

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

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

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

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

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

Property Depreciation as a Legal Invention

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

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

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

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

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

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

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

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

Extractive Capitalism

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

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

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

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

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

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

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

Maybe it’s the new Apple watch?

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

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

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

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

And..  

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

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

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

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

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

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

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

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

Unlikely.

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

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

The Left, the Election Crisis, and the 'Elephant in the Room'

By Larry Holmes

Republished from Workers World.

The head of the U.S. Postal Service is sabotaging delivery of ballots through the mail. Trump is acting like he won’t step down even if he’s defeated in the elections. And it appears that right-wing and neo-fascist forces, who have guns, are getting ready to go into the streets after the elections to support an attempted coup. Every group and activist ready to fight fascism in the streets should be making preparations right now to intervene in the event of any fascist developments in November.

The political crisis in the ruling class that is playing itself out in the presidential election is not really about Trump, any more than it’s about saving democracy, decency and all the other stuff that Democratic Party leaders are shouting about.

This crisis is about the capitalist system starting to break down and fall apart, and what must be done to rescue capitalism and U.S. imperialism from demise.

This crisis has been building for a long time.  The COVID-19 pandemic has accelerated the course of the crisis; it’s like pouring gasoline on a burning police station.

What will the working class do?

The working class is the elephant in the room. In the past, when communist and socialist political parties were strong, especially in developed imperialist countries with large working classes, when a political crisis developed in the ruling class, the response by a militant communist would be: “What is the working class going to do about this?”  Communist leaders like Rosa Luxemburg, Antonio Gramsci, or Harry Haywood would ask their comrades: “How can the working class intervene in this crisis to defend its own class interests?”

During the times when these noted revolutionaries were active in Germany, Italy, and the U.S., it was understood by all the cadre and militants in the working class that the working class was ultimately the only class that could change the big equation — and finally, end capitalism. Moreover, it was understood that if the working class did not intervene during a political crisis, something very bad might happen, like the faction within the capitalist class prevailing that was considering the desperate option of turning to fascism.

On the other hand, there was the prospect that if the working class intervened in the political crisis in a correct and strong way, the political crisis could be turned into a revolutionary crisis, meaning that the working class would exploit the differences within the capitalist class, as well as its instability and weakness, to  make a socialist revolution.

The expression “the elephant in the room” means that people are talking around the real issue because they don’t know what to do about that issue. Very few revolutionaries are asking what the working class will do about the current election crisis because the question seems irrelevant.

Notwithstanding the amazing work stoppages that many pandemic frontline workers have engaged in to protect their safety, and the many other signs that militants in the working class are pushing back and carrying out more strikes, the working-class movement as a whole in the U.S. is weak organizationally and politically.

Thus, the expectation is that the working class is not going to intervene in defense of its class interests beyond voting for the Democrats, with some even voting for Trump. Militants should be neither angry nor frustrated with workers for voting for Biden. The way that they see it, they don’t have any other choice.

For revolutionaries, the main political battle regarding support for the Democratic Party is with other forces on the left who say that they are socialists and are opposed to capitalism, but will find some rationale, mostly fear, for supporting the Democratic Party. The Democratic Party’s abandonment of the working class to globalization, austerity and pauperization, paved the way for Trumpism. The Democrats will not change, cannot change, and exist these days mostly to co-opt movements and then kill them.

The only way that the working class is going to find a way out of being held hostage to the Democrats is to begin learning how to organize as a class and act like a class that is independent of the capitalist political parties. This is true, not only in relation to the electoral struggle, but even more importantly, to the full rebirth of the class struggle against capitalism. This rebirth is already underway. However, it will not advance to the next level without the intervention of revolutionary class-conscious militants.

There’s no end to the questions surrounding the election crisis. What’s going to happen before the elections? What’s going to happen during and after the elections? How can progressives and revolutionaries respond to any development? From the perspective of a Marxist-Leninist, the biggest question is still: What can be done to insure that the U.S. working class begins to do all that is necessary to intervene in a crisis? Not now when it’s too weak, but soon, and the sooner the better.

Even in countries where the labor movement is close to one of the capitalist political parties, or there is a social democratic party that mostly supports what the capitalists want it to support, if an attempted coup or a fascist attack occurs the labor movement calls a general strike.

The election crisis should serve as a wake-up call. Yes, the working-class movement is weak. But revolutionaries can no longer afford to use that as an excuse to remove the working class from the discussion. Once we do that, we have surrendered.  Whatever ideas or demands revolutionaries put forward, they are of only symbolic and educational value if there is no army capable of fighting and defeating the enemy. That army is the working class, and the battlefield is the class struggle.

It should come as no surprise that many people, especially women, are saddened by the death of Ruth Bader Ginsburg, and are worried about who Trump will choose to replace her. When the working class is not organized as a class to defend its own class interests, who else can the people turn to in order to defend themselves but politicians and important individuals?

How did this happen to the working class?

Over a long period that began after the U.S. established itself as the dominant imperialist power in the world, generally speaking, the leaders of the labor movement – who were once relatively militant, and some even anti-capitalist — underwent a transformation that rendered them in many cases little more than appendages to the capitalist system.

Explaining how this happened over the course of the past three-quarters of a century is too much to go over here. But make a note:  How this happened should be studied and discussed. It’s important for every militant to know what happened.

Also important to know is that appearing to become an appendage to the system and the status quo is neither a natural nor a permanent state for the organized labor movement. It is an aberration that must — and will – be reversed. The conditions that led to the conservatism of the labor movement no longer exist, and as such, their conservatism is going to be replaced with revolutionary class struggle.

It should be noted that by and large, most of the left, including organizations that consider themselves Marxist and even revolutionary, have tended to base themselves on movements and struggles that were incorrectly seen as separate from the working class and the labor unions. The reason for this is that the labor movement seemed dormant.

Organizing and activity that seemed friendly to anti-capitalist views and organizational recruitment existed in the antiwar movement — and to some extent in the anti-racist movement and the women’s and LGBTQ2S+ movements. In truth, all of these movements are different fronts of the working-class movement, although that is not how they are viewed in most cases.

This unfortunate view is a product of the political weakness of the existing working-class movement. It’s time for such narrow and exclusionary views to give way to more inclusive and revolutionary views of who and what make up the working class today.

To some extent, the origins of these narrow and false ideas about what the working class is and who is in the labor movement are products of a tacit (and sometimes not so tacit) agreement that union officials and leftists made after the anti-communist witch hunt – which forced many communists and socialists out of the unions – began to lift somewhat in the early 1960s.

The agreement was this: Radicals must stay out of the labor unions and refrain from trying to influence the working class with their radical ideas.  In exchange for agreeing to stay away from the working class, progressives and radicals could organize against the war in Vietnam and around other issues, but apart from obtaining some labor endorsements and having a few labor speakers at a rally, antiwar organizers were to stay away from the workers.

Opening of struggle over need for strikes

The examples of professional athletes protesting racism by refusing to play, and health care workers, Whole Foods and Amazon workers, and other workers walking off the job to protest being forced to work in unsafe conditions, has ignited a new struggle within and outside the organized labor movement over the need to carry out more and bigger work stoppages, and bring back the general strike.

Around Labor Day, a group of about 40 regional labor unions representing millions of workers issued a statement calling for conducting mass, nationwide work stoppages in solidarity with Black Lives Matter. While no concrete plans or dates for these actions has been announced, this development is a clear challenge to the conservative top leadership of the AFL-CIO and the unions that formed Change To Win.

This is good news, and it’s about time. These developments in the labor movement must be supported, joined, and pushed strongly by everyone who considers themselves progressive. It is nothing less than scandalous — and unacceptable — that the AFL-CIO’s top leadership has done little more than release a statement or two in response to the worldwide uprising sparked by the police murder of George Floyd in May, and the murders of others like Breonna Taylor and Elijah McClain.

How is it possible that millions of people could be marching in the streets day after day on every continent, and yet the leaders of the U.S. labor movement cannot bring themselves to organize a one-hour nationwide work stoppage in support of this uprising?

A strategy to fuse all movements into a new working-class movement

 The scope of the election crisis is too big.  The scope of the COVID-19 pandemic is too big.  The scope of the capitalist crisis is too big.  And the scope of the racist attacks, whether by the police, FBI, or fascists, is too big to be addressed without a serious strategy towards the development of a revitalized working-class movement.  The attacks on the working class that are already underway — with much more to come — are too big for anti-capitalist radicals not to have such a strategy.

No matter how long it takes, or how many obstacles there may be, it is imperative that a fusion of the mass movement in the streets develop against racism and fascism, and that it include all sectors of the working class that are either not organized or are under-organized: migrant workers, incarcerated workers, gig workers, street vendors, sex workers, the unemployed, people with disabilities, the homeless, the most oppressed people — and the organized labor movement.

It should be understood that the global uprising against racism this past spring and summer was, at its root, a working-class uprising.  The participants may not have  been conscious of this — and the uprising was not called in the name of the working class. But that does not change the fact that it was the multinational working class protesting in the streets. Going forward, future uprisings will be more class-conscious, with more of the many sectors of the working class in motion.

This fusion must come from below, and must not be led by the Democratic Party, or any other organization that is tied to the status quo and is an obstacle to real struggle. It is not necessary, and, in fact, it would be a mistake for the movement in the streets, or any other section of the working class that is not in the organized labor movement, to subordinate itself to conservative labor leaders.

The goal of fusion is to expand the working-class movement, to tear down the boundaries and antiquated conceptions that limit and divide the working class, and to push the entire working class in a revolutionary direction.

The formation of Workers Assemblies and a Workers Assembly movement may prove very helpful in this process

Whatever happens on or after Nov. 3, organizing the working class is the prize we must work for and stay focused on. We should be confident about our victory.

Larry Holmes is First Secretary of Workers World Party.

Seven Theses on "Re-opening the Economy": Further Notes on Viral Dialectics

By Bryant William Sculos

1.  The economy is not—and never was—closed or shutdown.

At the peak of the global economic shutdown, it is likely that less than 50% of the economy actually shutdown. And for most of the initial “lockdown” period, much much less than 50% of the economy was inactive. Unskilled workers, sometimes having their hours cut, sometimes increased without overtime pay, magically became “essential workers.” While there is national and regional global variance, this is nearly universally true. Of course, many millions—if not billions—have lost their jobs around the world. Some of these are entertainment or hospitality/comfort service workers, but many are truly essential care and educational workers. The real backbone of the capitalist economic system has been endangered, hyper-exploited, or otherwise cast off. The stock market thrives all the while. Maybe, just maybe, we should actually shutdown this foundationally unjust world order.

2.  The cure is worse than the disease.

The shutdown—and this weird post-shutdown partial shutdown period—has caused enormous harm to countless people. Actually, we could count them, but the people who make those decisions about what to count (and what counts) don’t care enough. It is because of the literal insanity of our system that people are literally being driven insane, into the depths of emergent and exacerbated mental illness. People are killing themselves because of the responses to COVID-19. But that isn’t because we shut down, but rather it is because of how we shutdown, without coming close to addressing long-preexisting social inequities that were barely below the surface—if below the surface at all. This is no cure at all. The most vulnerable are either dead or more vulnerable; the safe and secure are, for the most part, at least as safe and secure as they were before.

3. The disease is worse than the cure.

An economy isn’t a thing that is capable of caring. In the midst of a mass pandemic where likely well-over a million people have already died, we should care about something that has never cared about us? How could it? Economies are systems that reflect the distributions of power and then the character of the values and priorities of that society. The responses to COVID-19 are perfectly in-line with the systemic values of capitalism. As the infamous graffiti reminds us, capitalism is the virus. A COVID-19 vaccine won’t change that. There is a vaccine for capitalism, and it is up to all of us to find it (really, to create it, in practice) together.

4. Yes, the economy is more important than your grandma.

And it always has been. It is more important than you too! It shouldn’t be though. It doesn’t have to be, but if we look at the absolutely wretched state of elder care in the US and around the world, we shouldn’t be surprised to hear actual alive human beings—elected officials and policymakers no less—suggest that grandparents should be willing to sacrifice their lives on the altar of capitalism. Think about that. These people have been made completely fucking psychotic. Then again, before COVID-19 too many of us accepted this basic logic on a daily basis.

5. We really should compare this to the flu.

Not that COVID-19 is as serious as the seasonal flu—a mistaken thought I had and quickly abandoned in early March 2020. And yet, seasonal flu is an enduring civilizational challenge that we too easily accept as intractable, beyond what we’ve achieved thus far with the existing vaccination protocols. We have, occasionally more than 50% effective, vaccines that people need to take every year. Still, we have hundreds of thousands of people dying annually from the flu. Perhaps millions are saved, yes. But how many billions of dollars are made by the health care companies that make and distribute these vaccines? Vaccines that—while better than nothing—are still wildly inadequate. There are political-economic lessons we must learn from how the flu is treated, and we must refuse to allow the same things to happen with COVID-19, a much more serious problem.

6. Don’t let them bring evictions back.

We should be paying more attention to the fact that right now, in many places (but, perhaps, most notably in the US), evictions are effectively non-existent. As banks, landlords, and local sheriffs still try to find a way to evict people, we should fight to get the prohibition against eviction accepted as a new political norm—even if the result of such a struggle is a compromise that simply makes it harder for people to be evicted.

7.  Physical distancing is new. Social distancing has been going on for a while. Since the late 1700s probably.

With the urbanization associated with the industrial revolution people have, over the past several centuries, lived increasingly close to one another. Physical proximity has increased along with the development and spread of global capitalism. During that same period, humanity has become increasingly socially-isolated. Family ties are less. Friendship bonds, while they may be maintained in more mediated form through social media, are perhaps stronger and more significant than ever before. Still, these bonds are not as powerful or enduring at this stage of historical social development as family bonds were prior to the advent of global capitalism—however oppressive and violent they indeed were. COVID-19 has merely exacerbated a problematic sociological pattern that was already with us. One wonders whether social ties will experience a jump in strength once COVID-19 is under better control, epidemiologically and medically speaking (likely only possible once mass vaccination is achieved).

Bryant William Sculos, Ph.D. is the founding curator and editor of LeftHooked, a monthly aggregator and review of socialist writing, published by the Hampton Institute, where he is also a contributing editor. He is a visiting assistant professor of global politics and theory at Worcester State University. Bryant is also the politics of culture section editor for Class, Race and Corporate Power and co-editor (with Prof. Mary Caputi) of Teaching Marx & Critical Theory in the 21st Century (originally published with Brill and now available in paperback with Haymarket Books).

What's Good for Tech Stocks is Bad for the Economy

By Contention News

Tech stocks deepened their recent skid this week, and the fear among market watchers right now is the bubble may have already burst. Investments that could do no wrong just last month now look somewhat suspicious.

What these observers don’t know is that things are actually much worse than they think. There is a deep and important connection between these high-flying tech investments and the crappy economy their shareholders hope to escape.

Drawing this out requires a big picture outlook, and connecting some dots in ways that Wall Street can’t.  

How society works

Let’s start as big as we can: all human societies have to constantly reproduce themselves to survive. Our society reproduces itself through a system of market exchanges. Each completed purchase validates the good or service exchanged as necessary for the reproduction of our society.

Investors use their capital to command some portion of society’s existing resources to produce something new they think society also demands. If they’re right, then the product will sell and they’ll get a return on their investment. If the new product isn’t socially necessary — i.e. valuable — it won’t sell, and they lose their investment.

Where investors gain value, and where they don’t

These investors don’t gain any additional value from the inputs they buy for their products. Buying these inputs just validates their necessity. To create new value the investors need to combine the inputs together to create new, value-added products, and this requires human input — labor.

Labor power is an exceptional input because the workers selling it can’t realize its value without the machinery, facilities, and other inputs owned by private businesses. This means those businesses get to buy labor power at a discount, and investors pocket the difference. 

This has an important implication: each enterprise is some combination of produced inputs and labor power. If the enterprise sinks a larger share of its investment dollars into inputs rather than labor, then over time they should return less investment. This is why labor-intensive “emerging markets” can have such extraordinary rates of growth as compared to capital-intensive advanced economies.

Why investors love “operating leverage”

This is the level where this impact emerges — in the aggregate, over time. At the level where equity markets operate — individual firms and sectors over short terms — a different perspective emerges.

There, “valuation” has everything to do with expected future cash flows. Operating income — the money left over after paying out all the costs of production and overhead costs of the business — is the name of the game. The more operating income a company expects, the more valuable its stock should be.

Every company delivers this cash flow differently. Companies with low variable costs (the labor and input costs of each unit produced) and high fixed costs (the administrative expenses necessary to keep the lights on) are said to have a high degree of “operating leverage.” These businesses are efficient at turning their revenue into operating income.

Why tech stocks look so hot

Tech companies tend to have high operating leverage. Each additional unit sold adds very little to their variable costs — Facebook can sell thousands of ads before they have to add any hardware or staff, for example — which means that for every percentage point of revenue growth, they get more than a point of cash flow growth.

So when the economy is growing — the norm for capitalist economies — rising sales mean growing revenue, which means even faster cash flow growth and equity value. Investment gets disproportionately drawn into high fixed-cost, low variable-cost firms.

But produced inputs don’t add value, remember, and yet these high fixed costs — attractive to investors — include only those inputs. Labor power does add value, but that’s covered in the variable costs they seek to minimize.

Bottom line: investments at the firm level favor a capital allocation that produces less value throughout the economy overall.

Where the zombies come from

And it gets worse: when sales drop, these companies’ high overhead costs put them at increased risk of default. Since they are also the ones with disproportionate levels of investment, leaders seek to bail them out, mainly in the form of interest rate suppression by central banks. The companies can borrow and issue bonds more easily, but this debt only adds to their fixed costs.

Soon you have an economy full of companies that make just enough to cover their debt service — so-called “zombie” firms.

So now we can connect the dots: high levels of operating leverage made tech stocks sexy investments for years, but this contributed to a capital-intensive economy with lower aggregate returns on investment. When downturns came, central bank rescues only created more long-term deadweight, hence the slow, sleepy growth of the last “recovery.”

Now that the recent speculative boom has paused, we’re left with a terrifying question: what do we do with an economy founded on a basis that can’t perform for the future, especially in light of all the debt — i.e. future earnings — that we’ve accumulated to build it?

One thing is certain: the leaders that can’t deliver a relief package everybody wants definitely can’t figure this one out either. Watch out for your own bottom line while they try nonetheless. 

Contention News produces original anti-imperialist business news every week. Read more and subscribe here.

On the Anti-Racist Economy

By Joshua Briond

In the aftermath of the state-sanctioned executions of Breonna Taylor and George Floyd, we have witnessed arguably the largest and most sustained mobilization of protests and political demonstrations across the country in the movement for Black lives. In the midst of an era of drastically increased performative and opportunistic "activism," where "spreading awareness" is prioritized over human lives and dignity—which was helped ushered in by the Shaun King’s of the world—where capital(ism) does what it has done to everything: commodify, celebritize, and corporatize any and everything, by any means necessary. Such has been done for “social justice" rhetoric and activism. We have seen, in real time, Black Lives Matter be co-opted, commodified, watered down, and flat-out defanged in the face of capital, as the simple passivity of the hashtag and movement demands—if you can call it such—has become socially acceptable in the mainstream arena, specifically so in the post-Kaepernick era.

With increasing pressure for bourgeois public figures to “speak out” and “spread awareness” from fans, the sociopolitical moment has forced historically apolitical figures and brands alike to momentarily step outside their bubble of privilege, power, and wealth to release uninspired and bland political statements vaguely condemning violence and pledging their rhetorical support for the Black lives matter movement. Such acts are met with comment sections filled with bleak and dystopian undue and unjust adulation for bare minimum performances of intellectually insulting public political theater—that is yet typical for the celebrity worship present here in the US. As the limits of neoliberal political imagination have once again depicted, in this crucial sociopolitical climate, the best the professional liberal class could offer as a solution to the prevalence of racialized state violence—was not the political interrogation of the white power structure we live under and its constant terror and antagonization to non-white life—but to vote for uninspired Democratic candidates, donate to NGOs and non-profits with zero ties to communities most largely affected by said violence, and read “ally” self-help books, written largely but not exclusively by and for white people.

One of the books in question is Robin DiAngelo’s White Fragility. Published the summer of 2018, it went viral during the rise of the protests (stated to have sold at least a million copies in the matter of a few months). Others have grappled with the glaring contradictions and violence inherent to the act of a white person raking in millions under the guise of “anti-racism” and “anti-bias training”—that has been largely proven ineffective; while also charging anywhere from $30,000 to $45,000 on public speaking gigs for corporate conglomerates like Bill Gates and Amazon. So I’m not here to speak on that. Yet, DiAngelo’s public persona and prominence is arguably the perfect depiction of the co-optation of the politics of “anti-racism” into its own industry for corporate diversity initiatives without addressing structural root causes. The issue with books, panels, infographics, and the discourse surrounding race that centers and targets “allies” is that so many of them still fundamentally misunderstand rac[e/ism], whiteness, and anti-Blackness as just a matter of individual feelings, ignorance, and morality—instead of what it is: a structural organizing tool that the US political economy—built on and inseparable from slavery and genocide—necessitates.

“We who were not black before we got here, who were defined as black by the slave trade—have paid for the crisis of leadership in the white community for a long time & have resoundingly, even when we face the worst about our­selves, survived & triumphed over it."

—James Baldwin

How can one be an anti-racist if the historical precedence of race and racialization as a colonial society organizing device and regime isn’t widely understood amongst those who proclaimed to identify or align with anti-racist values? And when the vast majority of this country’s population—including self-proclaimed anti-racists’ understanding of race is wrongly and harmfully understood as that of a biological marking, rather than a sociopolitical tool meticulously and conveniently constructed and manipulated through legislation? As W.E.B. Du Bois, amongst other historians and critical race thinkers have noted: Whiteness, as stated since its historicized legislation, marks power and dominance. Blackness marks the powerless, slave, and dispossessed.

The United States of America, as we know of it, cannot function or exist without the racial regime: whiteness and anti-blackness. The entire economy, politically and otherwise—going all the way back to the cotton industry; which introduced the world to the US as a global imperial-capitalist project—is predicated & sustained through racial violence. The subjugation of imperialized nations and peoples, the dispossessed, and the enslaved, is how America and therefore the American knows that they are free. The coloniality of American freedom and the subjugation of those racialized and colonized nations and peoples cannot be divorced from one another. The entire concept of freedom and democracy—as espoused as principle by the American project—is predicated on the denial of such, of the Other(s).

“Africanism is the vehicle by which the American self knows itself as not enslaved, but free; not repulsive, but desirable; not helpless, but licensed & powerful; not history-less, but historical; not damned, but innocent; not a blind accident of evolution, but a progressive fulfillment of destiny.”

—Toni Morrison

I want to say that when I speak of the “America(n),” I am referring to that of the white. America(n) means white. I would like to also infer that the American, and white identity, ideology, and structure, is founded upon not just the systemic exploitation of the Other, namely the Black or otherwise the slave, the native, the dispossessed, and the colonized—and the moral and political justification of it—but also defined entirely by said positionality of the subjugated. As Toni Morrison has written, “Black slavery enriched the country’s [creative] possibilities. for in that construction of blackness and enslavement could be found not only the not-free but also, with the dramatic polarity created by skin color, the projection of the not—me. The result was a playground for the imagination. What rose up out of collective needs to allay internal fears and to rationalize extemal exploitation was an American Africanism—a fabricated brew of darkness, otherness, alarm, and desire that is uniquely American."

The liberal anti-racist economy is fundamentally unwilling and ill-equipped to grapple with this and racial[ized] contradictions of capital(ism)—the likes of which Black radicals of the Black radical tradition have theorized and highlighted on for decades now. Racism is not just a matter of individual ignorance or feelings that can be changed or eradicated via “understanding,” “diversity and anti-bias training,” “tough conversations,” or a quick fix in morality and finally seeing subjects of its violence as human; as so many prominent “anti-racists” would like to have us believe. The ‘antiracist’ economy, lucrative as may be, is incapable of birthing white ‘anti-racists’ because it refuses to grapple with the inherent racism of the project, or rather regime of race, racialization, capital(ism), and whiteness-as-power, in and of itself. You cannot manufacture solidarity—which a radical anti-racist movement necessitates—on the simple passivity of moral posturing. Solidarity must be built on, not just through shared struggle or basic figurations of empathy, but also on recognizing the humanity of those in which it has been historically denied to and ultimately coming to an understanding and agreement that we are worth fighting for.

“As long as you think you are white, there is no hope for you.” —James Baldwin

To teach white people to be ‘antiracist’ is to teach white people to betray everything that they have ever known about their very existence, the world order, and life itself; it is to quite literally antagonize everything that they are and sense empowerment from. Therefore, you cannot ‘teach’ white people to be ‘antiracist’ through moral and virtue signaling—especially when whiteness itself, as politically constructed, is, has always been, and will always be, immoral. It is why becoming an anti-racist is, or at least should be, a choice one makes through rigorous study of the history of race, racialization, whiteness, and liberation movements, etc. White people cannot be guilted into antiracism—this is why the “spreading awareness” tactic—deployed by Shaun King and his ilk—that bombards people with pornographic visualizations of black terror and death have been largely ineffective but on the contrary quite in fact, historically libidinal—a source of entertainment and collective joy. The politics of moralism has proven futile. You cannot moralize oppression—especially when the source and basis of said oppression is that of capital and whiteness—both of which are categorically immoral.

In a sociopolitical moment where we have seen Donald Trump’s violence exceptionalized; making it out to be unlike anything we have ever seen before—despite his political crimes largely (and simply) being an extension of the order and requirements of the US presidency—by the liberal media apparatus; terroristic political legacies resuscitated, war criminals, regime changers, and COINTELPRO state agents become faces of resistance. All of which depict a moment in which the standard for “good doers,” “morality,” and human rights and social justice advocate is deeper in the gutter than ever before. I’m afraid that the anti-racist economy, the ally industrial complex—as a result of commodification of social justice has ushered in an “anti-racism” and a human right advocacy that is inseparable from the social, political, and economic capital that it often leads to.

I’m afraid the anti-racist economy has, ironically enough, failed to create any substantial “allies” or “anti-racists.” But instead created a culture of unadulterated and uncontested political performativity, groomed more benevolent self-aggrandizing white people—who are smarter, more clever than their forebears at disguising such racism; to avoid backlash, consequences, or even the mildest forms of confrontation; just enough to navigate situations with and around subjects of racial oppression without exposing the psychopathy and immorality of structural and ideological whiteness—but not enough to materially and substantially dedicate themselves to and sacrifice their own power and capital towards an anti-capitalist, anti-racist, and anti-imperialist struggle.

I’m afraid that there has been little to no progress, remorse or lessons learned—on the part of individual whites or the white power structure at-large as evidenced by the continuation of the legacy of colonialism, slavery and historicized violence—as the tactics and acts wielded against the initial racially marked and subjugated would serve as a template of what would occur in the centuries to follow—being exported to other racialized and colonized people domestically and across the globe; while still being enacted on the initially marked, i.e., African, Black, and Indigenous subjects.

I’m afraid with the consequences of slavery, which is that of whiteness-as-power, the racial regime and racism that is inherent to it depict white remorselessness on the part of the perpetuators and continued beneficiaries of the historicized economic industry; to paraphrase one of my favorite James Baldwin quotes from 1970: the very sight of black people in white chains and cages—both proverbial or otherwise—houseless, neglected, and structurally subjugated, and terrorized; would struck such anger, such intolerable rage, in the eyes, minds, and bodies of the American people, that they would themselves spontaneously rise up and strike off the manacles. But instead, as we know of it all too well, the existence of said chains, cages, and racial subjugation, is how the American measures their own safety and sense of comfort. It is how they know they are free.