Social Economics

A Beginner's Guide to Bank Failures

By Ahjamu Umi

Republished from Hood Communist.

According to a February 2023 Federal Deposit and Insurance Corporation (FDIC) audit, 563 U.S. banks have failed and/or come under regulatory authority since 2021. Here in California, U.S., the latest casualty has been the Silicon Valley Bank (SVB). This latest rash of bank failures, especially within the software start up SVB, have alarmed apologists for capitalism all over the world. With this piece, we are hopeful we can bring some fundamental understanding of “bank failure” and what’s happening for everyday working people.

First, it should be explained that the Federal Deposit Insurance Corporation (FDIC) is an institution of the U.S. federal government. It exists to provide some level of guarantees against bank failure. They do this by regulating banks, auditing them, and insuring bank deposits for up to $250,000 USD (aggregate deposits per institution). 

What Does This Mean?

Let’s say for example, you have $275,000 in liquid asset deposits in any U.S. bank. If that bank fails and/or comes under FDIC jurisdiction, your deposits for up to $250,000 are insured by the federal government, meaning the government should issue you a check for that amount. The remaining $25.000 in deposits that you had in the failed bank makes you now a creditor for that bank. This means they owe you that money, just as you owe your credit card companies, car finance institutions, etc.

Of course, like any creditor/borrower relationship, your ability to get repayment has no guarantee. The bank can come under bankruptcy protection, etc., which means you would lose all or most of that $25,000 in this hypothetical example. But that is a fundamental definition of the role of the FDIC. It’s worth noting that credit unions are governed by the National Credit Union Administration (NCUA), which serves the same general purpose for credit unions that the FDIC serves for banks, including insuring deposits for up to an aggregate $250,000 per customer/member per institution.

It’s important to also note that the FDIC was formed in 1933 as a result of the Banking Act legislation. This happened four years after the great stock market crash of 1929 which means the FDIC was created as a vehicle to encourage renewed trust in the U.S. banking system. It’s that question of trust that provides the basis for creating a simple way of analyzing and understanding what is happening with banks within the capitalist system and how to interpret these bank failures.

The Origins of the Banking System 

Contrary to popular opinion, the international banking system, and the concept of capital as the foundation of that system, did not start from the creative and intellectual genius of the fathers of the capitalist system. Instead, the start up capital for the international banking system came directly from proceeds produced from the enslavement of kidnapped Africans. The labor of their work was converted to revenues that were invested to initiate the banking system and the capital it would rely on to facilitate its existence. Every large international bank today from Chase to Barclays owes its origins to this nefarious beginning. If we understand and accept this irrefutable history, it should be easy to understand that the capitalist banking system, from its beginning, has been about exploitation and its that reality that paves the way for greater understanding of what’s happening today.

How Banks Work 

Banks operate by taking your deposits, no matter how large or small, and investing those deposits to generate capital. The more money you have to deposit, the greater incentives the banks provide you for doing so, for example: no fees, more services, slightly higher dividends (returns on your deposits), etc. Whether you have $250,000 deposited in a bank, or $25, the process works the same. Your money is used by the bank to invest in any number of financial projects designed to provide a positive return for the bank on your deposit. For the overwhelming majority of us, this is done with little to no return to you. 

Let’s say you have a job where your paycheck is directly deposited into your bank account every two weeks, say $2500 twice per month, and from each check you have $300 automatically transferred into your savings account. That means you are saving $600 USD per month. You will receive next to nothing for that money sitting and growing in that bank, but the bank will use your deposits and invest them in any number of profit generating projects— primarily exploitative projects around the world because those types of investments are the best suited to produce the highest return on the dollar. Think exploitative companies that steal resources from Africa for example. Companies like Dutch Royal Shell (Shell Oil) rob Nigeria’s Niger Delta blind drilling for oil. There is no oversight and the workers are paid peanuts. As a result, Shell’s profits continue to break records. Well, a bank will invest in Shell’s stocks and profit from Shell’s theft of resources from Nigeria. As Shell’s profits grow, the bank’s profits grow. And, by profits we mean capital i.e. money the bank earns that serves the sole and specific purpose of being reinvested for additional profits.

That’s why when the capitalist commentators talk about most U.S. banks being “well capitalized” they are actually telling the truth. These banks have millions of dollars – dollars they made investing your deposits – sitting around ready for them to invest to make even greater profits. Meanwhile, you get slim to nothing from them using your money and you will even be penalized if you come upon rough times and cannot maintain the minimum requirements they demand to keep your account(s) going. They have to make those demands of you because if your money isn’t available to them, they have nothing to invest and profit off of it. If you think about it, the banking model is basically the same as someone coming to you, taking your paycheck when you cash it, using your money to make additional money from it, and just returning to you what they took from you in the first place. And, if they are unable to get a return on your paycheck, they are usually supported by the government in their financial challenges while you are left to figure out how to proceed on your own with no help or support.

Silicon Valley Bank & Banks Playing With Your Money

That’s still not even the full story. Besides the example of investing in the exploitative practices of Shell and other criminal multi-national exploitative capitalist corporations, the banks invest heavily into shady and high risk ventures like securities from the secondary market. These types of investments are often bundled high risk mortgage loans, meaning loans provided to buyers who’s repayment potential is questionable, but who agreed to repayment terms at much higher, and profitable, interest rates. These types of unscrupulous business practices by banks have resulted in devastating consequences, such as the 2008 mortgage crash in the U.S. where everyday consumers were left houseless while the banks were bailed out by the 2009 multi-billion dollar gangster deal – compliments of the Obama Administration – one of the most lucrative welfare schemes in human history, recently eclipsed by the $2.2 trillion CARES Act of 2020. As it relates to banks like the Silicon Valley Bank in Santa Clara, California, U.S., the same principles apply. This bank was the home for software startup companies who invested incredible sums of money in highly questionable ventures for most of its 40 year existence. As has been alluded to, this has always been the program of capitalist banks, but in recent years we are seeing the limitations of this strategy much easier because the decline of capitalism has created conditions where the once assumed stability of capitalist banks is now more and more in question. 

Let the Banks Fall While We Rise  

This is a reality that will continue to create hardship for millions of people worldwide, but in the long run, this also has the potential to represent a new day for the masses of humanity where capital no longer controls the narrative everywhere on earth. There are a lot of variables to unpack in order to create that reality, but for now, the best thing all of us can do is engage every effort that we can to educate our communities about the role of banking institutions to profit from our continued exploitation and how the system is set up to support their existence, while making us the main source of accountability for ourselves and their greedy exploitative practices. This problem, like every other problem we face, cannot be resolved through any level of individual initiative. It cannot be resolved by any other approach to stabilizing the capitalist system. This problem is a reflection of the exploitative basis from which capitalism developed hundreds of years ago and it’s simply a manifestation that this profit over people model of operation is existing in its final days. This may be a scary thought to many, but at the end of the day, Kwame Ture was 100% correct when he said that “if we don’t struggle for revolution, we suffer so why don’t we organize and take the suffering as a pathway to our liberation and forward progress instead of just continuing to suffer with no end in sight?”  Capitalist banks are viewed as vehicles to provide us with houses, cars, loans, etc. What they are in reality is a criminal operation that is 100% supported by the U.S. government which is nothing more than a mouthpiece for international capitalism. The sooner we can do the necessary work to create broader consciousness around this, the sooner we can reclaim the resources that rightfully belong, not to a small and criminal elite, but  to the masses of people on earth. 

Ahjamu Umi is revolutionary organizer with the All African People's Revolutionary Party, adviser, and liberation literature author.

The "Manifesto of the Communist Party" 175 Years Later

By Derek Ford

Republished from Peace, Land, and Bread

There’s perhaps no better crystallization of the revolutionary origins of Marxism than the 1848 publication of the Manifesto of the Communist Party (later referred to simply as the Communist Manifesto to please the censors). There’s perhaps no better reason to re-read the text than today, on the 175th anniversary of its publication, on what we now celebrate, thanks to LeftWord Books, as Red Books Day.

The Communist League, a small underground group, tasked Marx and Engels to draft a manifesto that would not only serve as a program of the “party” or political organization but would also potentially intervene in the battles they anticipated coming. As the economic crisis intensified, those clashes did come out into the open, in fact just days after the Manifesto’s publication.

The plan to immediately translate the text into several languages, as indicated in the introduction, went unrealized, and the Manifesto didn’t have an impact on the 1848-49 revolutions (although perhaps it had some influence in Germany). After its initial run in February 1848, it was reprinted a few times by May; but, by then, the initial victories disintegrated. The revolutionary hopes of the bourgeois-democratic struggles were met with fierce counterrevolutionary violence against the workers and the general democratic forces of other exploited classes. Everywhere reaction set in, from France and Prussia (Germany) to Italy and Switzerland, a sequence that pushed developments in communist theory and organizing, affirmed the central tenets of the Manifesto (including the international nature of the class struggle), called for a refined approach to the tactics and strategies of struggle and the national question, and decidedly shifted the center of European revolutionary potential to England. [1]

With the counterrevolution cemented, the League’s leadership suspended its activities, some of which it resumed before officially disbanding in 1852. The text was read by a handful of revolutionaries at the time, most of whom were not in agreement with Marx and Engels, and was written for an even smaller grouping. It wasn’t until the early 1870s that the Manifesto appeared in Europe for widespread distribution. This is partly because of Marx’s prominent role in the First International, beginning in 1864, and his widely acclaimed analysis of the Paris Commune. The main reason, however, was more ironic. The German government put several leaders of the German Social Democratic Party on trial in 1872, and to make their case the prosecution ended up entering the Manifesto into court records. Doing so allowed radical publishers to “evade the censorship laws and embark upon the Manifesto’s republication.” [2] With the Social Democratic Party’s leadership fighting charges of treason, the conditions weren’t favorable to an open call for a communist party to achieve the objectives set out in Marx and Engels’ pamphlet. The new circumstances compelled publishers to change its title to Communist Manifesto. It wasn’t until the Soviet Union’s republication in the early 20th century that the original title came back.

The Manifesto eventually spread across the globe rapidly, from China and Japan to Latin America and the U.S., but only after the specter of communism materialized with the 1917 Bolshevik Revolution. With state power, a dedication to worldwide liberation and socialism, concentration on theoretical study, and general education, among other duties, the Soviets translated it into numerous languages and sold it on the cheap. Since the Bolshevik Revolution, every revolutionary movement has adopted the text for its unique conjuncture, in keeping with the overall ethos of the Manifesto’s content.

Any expression of historical materialism–the method and guide of communists–is, it unfortunately needs to be stated, historical. Nothing holds for all time everywhere. Marx and Engels say as much when they close their preface to the 1872 reissue by listing what they wanted to update 25 years later, a list that is quite extensive especially given its brevity. They didn’t edit the text because it had, by then, “become a historical document which we have no longer any right to alter.” This presents a problem for some readers insofar as it is a very early text, written before Marx’s real study of political economy, and thus one from which the key theoretical developments of Marx are absent. However, in the same preface Marx and Engels also make it clear that “the general principles laid down in this Manifesto are, on the whole, as correct today as ever.” [3] Despite any deficiencies in political clarity or theoretical coherence, its precise, energizing, and careful formulations still exert force today.

Like any work, the Manifesto was determined by its particular context of production. The fact that its distribution and reception have only increased over time (and in ways favorable to our class) testifies to its ongoing relevance. It remains a foundational pillar in the development of Marxism—or revolutionary socialism, a mission we continue to realize on the global scale. The Manifesto comes to life whenever the class struggle intensifies or wherever rapid shifts in political consciousness occur, like in the radical transformation we’re undergoing in the U.S., where the fog of anti-communism is lifting—that’s why Red Books Day has, every year, expanded and flourished. Prompted by this opportunity to revisit the text afresh, this short article doesn’t summarize the content as a whole but rather contextualizes some of the Manifesto’s main principles within some of the later works of Marxism and the Marxist movement more generally, providing clarity and correcting some common misinterpretations of the work that oftentimes falsely justify premature dismissals of Marxism, socialism, and communism. [4] In conclusion, I place the key tasks we inherit from the Manifesto and how later developments in the radical Black and communist theory are absolutely pivotal to pursuing this project today in that they help us understand the links between anti-communism and white supremacy and aid our project in uniting all working and oppressed people for the common liberation of the many.

The Pedagogy and Form of the Manifesto

Marx and Engels met in 1842 on Engels’ way to Manchester, reuniting two years later after Engels returned to the city. Both were fellow travelers of the Young Hegelians. Marx edited a radical paper, Rheinische Zeitung, to which Engels contributed an article on political economy. The next few years of their collaboration were remarkably transformative: by 1846 they had decisively broken with the Young Hegelians and initiated their development of historical materialism and the origins of a more mature revolutionary theory, informed as it was by decades of ongoing practical struggle and study. While Marx and Engels broke with their younger Hegelian selves in 1845-46 to articulate the historical-materialist method of communism, the Manifesto links that method with its objective and organizational form.

The pamphlet was penned primarily by Marx in January 1848 in Brussels, although it was a collaborative project. Notwithstanding the debates about to what extent Engels’ initial drafts contributed to the final project—and in particular his “Draft of a Communist Confession of Faith” for the Communist League’s First Congress in 1847—it was Engels’ overall writing, theorizing, and organizing that provided Marx with the requisite knowledge about modern industry and also that helped both formulate the historical materialist method, and it was largely Engels’ interventions that enabled him and Marx to join the League. [5]

Marx and Engels formally joined the Communist League after the spring 1847 conference agreed to the main points they advocated, which were formally adopted at another congress later that year. These points included the principle that members of the League act “in the interest of the Communist Party, the overthrow of the bourgeoisie.” Along with this, they agreed to change the name from the League of the Just—formed in 1837—to the Communist League. In an internal document on the congress, the change of name is granted significance insofar as communists “are not distinguished by wanting justice in general—anyone can claim that for himself—but by our attack on the existing social order and on private property, by wanting community of property, by being Communists.” [6] The Manifesto marked the first real distinction between communists, on the one hand, and utopian socialists (and social democrats), on the other, a distinction hinging on a systematic understanding of the capitalist class struggle, the need to overthrow our class enemy, and the seizure of power.

The Pedagogy and Conjuncture of the Manifesto

Attending to the Manifesto’s style and pedagogical form is important politically and educationally. By doing so, we prevent or inhibit misreading it ourselves, especially given the dominant and enduring role anti-communism plays in the modern U.S. state. Over the last few years, a multiplicity of differing factors and forces in the U.S. have no doubt radically advanced socialism in the battle of ideas. The popularity and acceptance of—or non-antagonism to—socialism is an incredible, promising, and progressive development. I can definitely divide my own life thus far along the lines of this shift, as it has radically impacted essentially all aspects of it. The waters are open for the word, idea, and even the movement of socialism, but that comes with an unavoidable muddying of those waters. Such conditions are openings for the necessary task of clarifying Marxism, giving definition to socialism, ideologically and organizationally reuniting us with the centuries-long class struggles against oppression and, for a much shorter time, against capitalist exploitation, of which we are a part.

Anti-communism’s role in the U.S. is too expansive to locate in one place; too broad to be reproduced in one form or by way of some other political orientation. Many well-meaning but ultimately insufficient, reformist, or ill-conceived “radical” theories today are premised on a rejection of Marxism and the historical project of socialism and liberation, the twists and turns and the heroism and tragedy of such class struggles. This rejection is reproduced by way of the repetition of incorrect critiques and caricatures, such that when Marx is read it comes through the glasses of an anti-communist orientation. In addition to contextualizing it within some aspects of Marxist theory and the movement, I’ve found that attending to the document’s pedagogical form helps me get what’s happening in these relatively few pages.

The work is, first of all, a manifesto, rather than a fleshed-out and fully developed systematic analysis, a comprehensive program of action, etc. As a specific literary genre, manifestos are “always addressed to the masses, in order to organize them into a revolutionary force.” [7] They are written for the yet-to-be subjects of history with no pretension as to what actual people and groups will occupy that subjecthood or what the outcome of the struggle will be. They are orientations and frameworks, not prescriptions or fixed formulas.

The Manifesto was a specific intervention in a concrete time and in a specific place and moment in history. For the Communist League, the pamphlet served as a preliminary program to organize revolutionaries of different stripes around a set of political aims and objectives—potentially into a party. Because we are part of the legacy it inaugurated, because our primary task is to continue the project to overthrow exploitation and eliminate oppression at the national and global levels, it is a pillar in maintaining our legacy and memory. It can also be a short and accessible introduction to Marxism we can read with others and those new to the struggle.

Manifestos, and this one in particular, embody a specific pedagogical form that utilizes several different tactics, all of which are important to acknowledge. The text is addressed to us: the masses of working and oppressed peoples of the world.

One main tactic employed is the didactical method, which for manifestos must be condensed, a kind of schematic and necessarily reductive account of centuries of history, time, and social formations. The didactic method appears as a quick narrative providing the lay of the land, a portrait that, while not exhaustive, is honestly more in alignment with capital today than in 1848.

For this reason, our enemies cite the Manifesto as evidence of Marxist “stageism”—or the accusation that Marx and communists adhere to a fixed, linear, developmental, and chronological conception of history that runs from lower to higher levels, that goes from the past to the future—that is often clumsily equated with “Eurocentrism.”

Stageism was often present before Marx and Engels severed ties with the Hegelians, a break that required creating an alternative conception of history and temporality, one without any destiny, predetermination, causality, or final conclusion. Thus, when Marx and Engels write about “pre-history” they don’t refer to a past and finished state of a society or the world. They employ it as a conceptual tool used to differentiate capital from previous modes of production, and the same goes with Marx’s later critique of “so-called primitive accumulation.” Differentiating theoretical containers from empirical declarations lets us stay true to the Marxist method and prevents us from reading their concepts—like formal and real subjection—as actual processes happening.

That in the 1840s they broke with the dominant Enlightenment frame of history is quite remarkable, and their response was spelled out most potently in the 1857 “Introduction” to the Grundrisse. Marx criticized bourgeois political economy for following the “rule, on the fact that the latest form regards the previous ones as steps leading up to itself” because, in particular, in capitalist societies contradictions are the rule rather than the exception, which means it is a development that is founded on “relations derived from earlier forms” that are still “found within it only in an entirely student form, or even travestied.” [8] Another way to think about it is that Marx acknowledged that the “present” isn’t an interregnum between a “past” and a “future,” but a time, place, and social location where various temporalities and histories play out in complex ways. The principle of unevenness is a primary element of Marxism, and it applies to development, production, struggle, and our sense of time. Capital, not Marx, tries to homogenize and synchronize time by presenting it as abstract and ahistorical, naturalizing capital and its structures. In the 1883 preface to the Russian translation of the Manifesto, Marx and Engels argue that the Russian Revolution, based on communes or the common ownership of land and resources, doesn’t need to go through a “stage” of capitalist development because “the present Russian common ownership of land may serve as the starting point for a communist development.” [9]

Another pedagogical tactic is the call-and-response. In the second section, Marx and Engels clarify the relationship between communists and the proletarians and address criticisms directed toward the former. They announce the charges against them and their defense, which sometimes validates the accusation through clarification. For example, the capitalists charge the communists with wanting to abolish private property, but under capitalism the vast majority don’t have any private property; “in one word, you reproach us with intending to do away with your property. Precisely so; that is just what we intend.” [10] The reader is engaged in a conversation that is still happening today (including through Red Books Day), but with different coordinates.

The third section takes the form of a literature review, a comradely yet critical survey of different strands of socialist thought by which Marx and Engels can differentiate communism. By placing each in their historical context, we learn some of threads woven throughout the long history of the communist project, some of the different eras and forces that articulated the desire for emancipation and equality, and why their historical and material conditions of thought couldn’t set up the foundations for their fuller elaboration.

Another pedagogical tactic deployed is the rallying call to arms. Section four, the last and shortest part of the text, embodies a pedagogy of mobilization, providing immediate tactical decisions that entail engaging with non-communist forces to serve serve the pressing issues of the working and oppressed so that “in the movement of the present, they [the communists] also represent and take care of the future of that movement.” The Manifesto, addressed to us, the masses that make history, closes out by opening up a new horizon: “Let the ruling class tremble at a Communistic revolution. The proletarians have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!” [11]

A Clear Call for Global Emancipation and Liberation

Marx and Engels open the Manifesto with a sweeping declaration: “The history of all hitherto existing society is the history of class struggles.” Struggles between the classes of the slavers and enslaved, lords and serfs, or “in a word, oppressor and oppressed” are generally latent but erupt into visible confrontations that lead to either “a revolutionary reconstitution of society at large, or in the common ruin of the contending classes.” [12]

As Marx openly acknowledged, he wasn’t the first to discover or theorize the existence of classes or the class struggle [13]; that the goal of the class struggle was the political supremacy of the proletarians, however, was a main point of contention between various socialist forces, particularly between the utopians and the communists, as the latter insisted that only through open struggle and the achievement of political power could we achieve equality.

The character of the class struggle changes under capitalism, as do its avenues of struggle. The capitalist epoch is distinct insofar as it generally simplifies class antagonisms. “Society as a whole is more and more splitting up into two great hostile camps, into two great classes directly facing each other: Bourgeoisie and Proletariat.” [14] In this conjuncture of the class struggle, the latter class is revolutionary—or potentially revolutionary.

As a text written for the imminent European crises, its immediate horizon was the workers and militants across Europe. They were writing largely and somewhat schematically about Europe because it was the place, stake, and audience of the battles; but it is clear that the development of European capital wasn’t confined to the continent, that it included the colonization of the Americas and the opening up of the Indian and Chinese markets, as the overall development of production and distribution propelled new developments in communication and transportation, new railways, and created new markets for their commodities and new sources of raw materials and labor, etc. To power such production required new energy sources and inputs, and former ‘middle-class’ independent workers and middle-class operatives of capital were replaced by the modern capitalist class. Each technological revolution within the capitalist revolution cohered a capitalist class that, with its quickly increasing power and reach, captured “the modern representative State,” which “is but a committee for managing the common affairs of the whole bourgeoisie.” [15] The state, that is, serves as a mechanism for the capitalist class to manage its internal and external contradictions.

Marx and Engels survey the revolutionary role played by the bourgeoisie in the struggle against feudalism in Europe, although this is sometimes more sarcastic than serious. The capitalist class overthrew feudal rule, abolishing small-scale patriarchal relations that could be explained away by the Church and replaced them with “naked self-interest” and “substituted naked, shameless, direct, brutal exploitation” for previous labor relations clouded in personal relations and ideological mysticism or immediate dependency. [16] While capital cannot hide its exploitation, it can provide cover for it through abstract legal notions like equality and freedom.

Capital’s growing power also catalyzed the extent of crises of overproduction “because there is too much civilization, too much means of subsistence, too much industry, too much commerce.” [17] The capitalist’s only solution to their own crises is to lay the foundations for more intensive and protracted ones. Because of the competitive laws of capitalism, the bourgeoisie always looks upon the current productive and social relations as transitory and in need of constant change:

Constant revolutionizing of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones. All fixed, fast-frozen relations, with their train of ancient and venerable prejudices and opinions are swept away… All that is solid melts into air, all that is holy is profaned. [18]

Capitalism is dynamic; in order to expand—which is its modus operandi—it has to continually reinvest in changes to technologies, transportation, and communication, overcoming the isolation of feudal life and concentrating large numbers of workers in cities and factories, facilitating communication, and organizing. In 1848, this was still a minor and ascendant tendency, although today it is fully realized. The League couldn’t send a pamphlet across the globe in a manner of seconds.

The incessant revolutions in the forces, means, and relations of production “chases the bourgeoisie over the whole surface of the globe,” a phenomenon bourgeois commentators only realized about 130 years later. As capital nestles everywhere, it brings “under the feet of industry the national ground… All old-established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries, whose introduction becomes a life and death question for all civilized nations, by industries that no longer work up indigenous raw material, but raw material drawn from the remotest zones.” [19]

Capital is a colonizing world power, and Marx and Engels recognized this as a contradictory and also forthcoming development:

The bourgeoisie, by the rapid improvement of all instruments of production, by the immensely facilitated means of communication, draws all, even the most barbarian, nations into civilization. The cheap prices of commodities are the heavy artillery with which it batters down all Chinese walls, with which it forces the barbarians’ intensely obstinate hatred of foreigners to capitulate. It compels all nations, on pain of extinction, to adopt the bourgeois mode of production; it compels them to introduce what it calls civilization into their midst, i.e., to become bourgeois themselves. [20]

This is not a welcoming reception but a warning signal, because “civilization” for Marx and Engels is British or European civilization, one founded on colonialism and slavery, theft and dispossession. The reference to the Chinese Wall is, similarly, not literal in terms of the actual wall nor how capital breaches it, as capital deploys both the “free market” and the coercive and repressive military power that backs that market up.

Marx and Engels certainly appreciate how the generation of productive forces provides the material basis for providing for all of the world, although they were referring to Western Europe in the text. The elimination of scarcity as an inescapable reality and the means to provide not only the basic necessities for the present but additional wants and even stocks of goods for the future is a historic accomplishment. They also celebrated the mixing of lives and cultures owed to urbanization and the dominance of the city over the country, as it “rescued a considerable part of the population from the idiocy of rural life.” [21] The English translation “idiocy” refers to a lack of communication and brevity of social relations, rather than any “intelligence” status. In fact, the increasing comingling of people in cities and countrysides produced a broader and more sophisticated intellectual arena for all.

Moreover, Marx and Engels are responding to the utopian socialists’ critique of bourgeois society by demonstrating the structural reasons for the suffering of such “advanced civilizations” to which the utopians attributed the ills of society. The utopian socialists’ intentions were good but their understanding was guided by morality and their methods were limited to the construction of communes that would, by reason and rational argumentation, win the ruling class over to their side.

Capital’s Production of Our World

The accumulation of capital is the accumulation not only of production and property but of political power, producing a “national” being or a state entity by which the oppressed must conquer—and have conquered—to acquire political supremacy.

In this way, the Manifesto’s assertion that capital “creates a world after its own image” continues to explain much of our global situation today. [22] This is not because capital reproduces itself everywhere and in the same manner, but rather because capital is an inherently uneven system. Consider the absolute general law of capitalist accumulation that creates “accumulation of wealth at one pole” and “accumulation of misery, agony of toil, slavery,” and so on, at the other pole. [23] The accumulation of capital is simultaneously “increasing concentration of the means of production, and of the command over labour” and the “repulsion of many individual capitals one from another.” This, in turn, is offset by the centralization of capital, whereby many smaller capitals are combined into larger capitals. [24] The limit here is, of course, capital’s, insofar as capital can’t accept the complete centralization into a single entity.

The state is key to this and other processes of capital accumulation, which is evident with an example Marx gives of the productive capacity of capital’s centralization: “The world would still be without railways” so long as their production was in the hands of a large number of smaller capitalists, but centralization “accomplished this in the twinkling of an eye.” [25] Railways are forms of immobile and fixed capital, which “assigns it a peculiar role in the economy of nations.” Fixed capital is national capital because it “cannot be sent abroad, cannot circulate as commodities in the world-market.” [26] In order for capital to circulate, it must also be fixed in space; in order for capital to accumulate in one place, it must diminish somewhere else. Hence, the important economic function of war: it literally destroys capital to allow for renewed accumulation.

Marx and Engels articulate some of their knowledge at the time on the dynamics of capital, which never map onto history. The reason the world isn’t a complete image of capital is, additionally, due to the historic resistance of working and oppressed peoples who have achieved political supremacy, although in a different manner than the Manifesto and, later, Marx and Engels, held.

Proletarianization

About halfway through the first section, after discussing the developments of capital, Marx and Engels switch to how the bourgeoisie produced the class who can abolish it and class society: the proletarian class, one continually changing and faced with the task of political consciousness and organization. As capital increases, so too do the ranks of the proletariat, as even smaller independent capitalists can’t compete with modern industry while any unique skills are rendered redundant by technological transformations.

Returning to the opening lines, where they assert that class struggle is the motive force of history, and that capitalism increasingly polarizes society into two antagonistic classes or camps, can better clarify some of the central but often overlooked or misunderstood elements of this formulation.

The first is that the splitting up into two classes is a process rather than a finalized or even finalizable state. In other words, proletarians aren’t produced once and for all; capitalism divides society into two antagonistic groupings. The second is that they refer to both as classes and “camps.” Despite the absence of a fully worked-out definition of classes in the text or in Marx’s work overall, they perhaps called them camps to account for their non-exclusionary character. Indeed, what is remarkably notable in the opening lines are the reduction of various class struggles to that between the oppressor and the oppressed. Even as they acknowledge several classes, some of which include more complicated hierarchies and layers or levels, they recognize a continuity that is more than a repetition of the same and, perhaps, by equating the capitalist class struggle with the struggle between the oppressor and oppressed.

No more do special places in the social division of labor exist—they mention priests and lawyers, scientists and doctors—as a revered and privileged position; they too are reduced to proletarians. [27] Today, 175 years on, my colleagues at DePauw University, facing yet another invented “crisis” and another round of cuts and layoffs, realize that we are workers, not “professors” or “teachers.” Such surprise is explained by the withering away of any material basis for middle-class status and the increasing deskilling of our labor-power. Engels’ similarly accounted for any awe in his 1845 work, The Condition of the Working Class in England, where he recounts how capitalist development in colonial Britain deprived even workers of the illusion they could attain a decent standard of living, thereby collecting “together those vast masses of working men who now fill the whole British Empire.” [28]

The technological dynamism propelled by the need to increase the social productivity of labor through machinery, similarly, swells the ranks of the unemployed and “dangerous classes” and make all proletarians’ “livelihood[s] more and more precarious.” [29] Again, 175 years ago Marx and Engels located precarity as a primary condition we, as workers, are forced to grapple with—well before the “gig economy.”

Oppressor and Oppressed

In the first section, the discussion of the proletarian class comes immediately after Marx and Engels mention how capital tries to solve its contradictions through “the conquest of new markets.” This demonstrates that, even this early on, communists centered the colonial question, even if it wasn’t refined at this time. As Lucia Pradella, among others, has forcefully demonstrated, Marx gave increasing attention and weight to the anti-colonial revolutions happening in the mid-late 19th century. Colonization, for Marx, was not a ‘North-South’ or ‘East-West’ issue; it was, and is, an issue of domination and exploitation.

Neither Marx nor Engels only attended to Europe, nor did they abstract Britain or Europe away as self-enclosed entities. In the Grundrisse, for example, Marx addresses the concentration of labor-power into collective labor, which explains “the violent rounding-up of the people in Egypt, Etruria, India etc. for forced construction and compulsory public works.” [30] Over time, Pradella shows, they extended their position on national liberation and class struggle—both struggles between the proletariat and the bourgeoisie—to other colonial territories, including China and India. During the Taiping Revolution, “Marx changed his previous unidirectional view of international revolution, tracing a relation between proletarian struggle in the metropolis and anti-colonial movements in the colonies.” He welcomed the revolution and the detrimental impacts it would have on British colonialism, the same reason for which he supported—and “was probably the first major European intellectual and political activist to support the national liberation struggle in India.” [31] In a direct rebuttal to allegations of Eurocentrism and a privileging of the ‘working-class’ as the revolutionary subject, Marx argued that the anti-colonial rebellions would come before and would ignite the socialist revolutions in the colonizing countries. [32]

One could argue that the equation of the class struggle with the struggle between the oppressor and oppressed anticipated their forthcoming incorporation of the colonial question and the centrality of national liberation, something featured in the Manifesto itself.

The closing section of the pamphlet addresses how communists in different nations relate to other opposition parties. “In Poland,” they write, communists “support the party that insists on an agrarian revolution as the prime condition for national emancipation.” [33] Just a few lines up from the closing clarion call for “working men of all countries, unite!” we read that, wherever they are, communists “support every revolutionary movement against the existing social and political order of things.” [34] Certainly, they didn’t have a fully fleshed out theory of national liberation and socialism, although later on they did. [35]

Same Objectives, Different Conjuncture: Anti-Racism and the Socialist Struggle

Marx and Engels open the Manifesto not with a preordained future but an indeterminate future that will be produced through struggle: if the proletarians don’t overthrow the bourgeoisie there is “the common ruin of the contending classes.” [36] These options are translated in various ways (e.g., barbarism or socialism; humanity or capitalism), but they are still the base options available to us today. The central question, then, is how do we ensure the victory of our class?

The Manifesto offers no prescriptions and, indeed, the League lacked the depth and breadth of experience from which to draw on to even reflect on their previous organizational forms. Yet it is clear that the proletarians can’t fight it out alone or even on the scale of the workplace, industry, community, or state.

Capitalism, as a system of oppression, requires a collective and organized revolutionary struggle to overthrow it by foreclosing any individualistic or particularistic forms of resistance. As capital grows, so too does its class enemy: “a class of labourers, who live only so long as they find work, and who find work only so long as their labour increases capital.” [37] Independent artisans, shop-owners, peasants, and small producers are thrown into this lot through the production of machinery, which ultimately incorporates the workers’ skill and knowledge into a form of fixed capital. However we rebel and develop, we have to recognize that “every class struggle is a political struggle,” and whenever we fight the bosses and oppressors we’re engaged in the class struggle and in a political project. [38]

The key task, then as now, is to organize the working and oppressed peoples “into a class, and consequently into a political party” that, “organized as the ruling class” will implement a program for the oppressed. [39] This task is, to be sure, complex, sensitive, and contingent on time, place, and society. In the U.S., no communist party or communist movement can unite working and oppressed people into a class unless it represents the diverse characteristics of our class and fights tooth-and-nail for the national and racial liberation projects against white supremacy, settler-colonialism, and the emancipation of all oppressed identities.

By doing so, we confront head-on the ties between anti-communism and white supremacy that Gerald Horne makes clear. Racism to this day is linked with the emancipation of the formerly enslaved because Reconstruction–even after its counterrevolutionary overthrow—was “one of the largest uncompensated expropriations” until, that is, the Bolshevik Revolution in 1917. As such, Horne asserts that “African Americans are living reminders of lost fortunes,” and so “the reaction to socialism–which has also involved expropriations of property—is difficult to separate from race and racism.” [40] For this reason, the primary obstacles to overcome are the long and ongoing legacies of racial slavery and white chauvinism. If we don’t understand their links with what Charisse Burden-Stelly calls “modern U.S. racial capitalism,” we can neither understand contemporary capitalism nor overthrow the capitalists class. [41]

The Communist Manifesto announced the need for the proletariat to win political supremacy and rule over their former oppressors without, however, saying how to pursue this task or what role the state played in it. It was precisely “the defeats of the revolutions in 1848 that allowed Marx to go beyond the Manifesto’s general formula and sum up that experience with greater clarity” rather than “an abstract formula.” [42] Marx and Engels admit as much in the 1872 Manifesto preface, as the Paris Commune made it clear that workers can’t use the existing state for our project but must smash that state and construct a new one in our interest. We can’t rely on the contemporary U.S. state, founded and maintained as it is by white supremacy, capitalist exploitation, imperialist plunder to provide either the avenue to socialism or the apparatus by which to achieve it.

Let’s read the Manifesto of the Communist Party today, and tomorrow, for our history, present, and our future common and universal emancipation and freedom.

Endnotes

[1] One of Marx’s main disputes with other members of the League was his assertion that, because the German bourgeoisie was so inactive and powerless, that country could undergo a bourgeois and subsequent proletarian revolution in 1848 (a “permanent revolution”).

[2] Jones, Gareth Stedman. “Introduction.” p. 17.

[3] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. pp. 198, 197.

[4] For more background and context, see The Peoples Forum. “History of The Communist Manifesto with Brian Becker.” Available here.

[5] Ireland, David. The Communist Manifesto in the Revolutionary Politics of 1848. pp. 37-68.

[6] Wolff, Wilhelm, and Schapper, Karl. “A Circular of the First Congress of the Communist League to the League Members. June 9,1847.” pp. 599, 595.

[7] Althusser, Louis. Machiavelli and Us. p. 17.

[8] Marx, Karl. Grundrisse. pp. 105, 106.

[9] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. p. 196.

[10] Ibid., p. 237.

[11] Ibid., p. 258.

[12] Ibid., p. 219.

[13] Marx, Karl. “Marx to Joseph Weydemeyer.” pp. 2-65.

[14] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. p. 220.

[15] Ibid., p. 221.

[16] Ibid., p. 223.

[17] Ibid., p. 226.

[18] Ibid., p. 222.

[19] Ibid., p. 223.

[20] Ibid., p. 225.

[21] Ibid., p. 224.

[22] Ibid.

[23] Marx, Karl. Capital (Vol. 1). p. 604.

[24] Ibid., pp. 586, 575.

[25] Ibid., p. 588.

[26] Marx, Karl. Capital (Vol. 3). p. 162.

[27] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. p. 228.

[28] Engels, Friedrich. The Condition of the Working Class in England. p. 30.

[29] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. p. 229.

[30] Marx, Karl. Grundrisse. p. 528.

[31] Pradella, Lucia. Globalisation and the Critique of Political Economy. pp. 120, 122.

[32] Marx, Karl. “Revolution in China and Europe.” p. 93.

[33] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. p. 257.

[34] Ibid., 258.

[35] La Riva, Gloria. “Lenin and the Right of Nations to Self-Determination.”

[36] Marx, Karl, and Engels, Friedrich. The Communist Manifesto. p. 219.

[37] Ibid., p. 227.

[38] Ibid., p. 230.

[39] Ibid., p. 230, 242.

[40] Horne, Gerald. “White Supremacy and Anti-Communism.” pp. 282-283.

[41] Burden-Stelly, Charisse. “Modern U.S. Racial Capitalism Some Theoretical Insights.”

[42] Becker, Brian. “How the Ideas of ‘The State and Revolution’ Changed History.” p. 11.

Bibliography

Althusser, Louis. Machiavelli and Us. Trans. F. Matheron. Verso, 2000.

Becker, Brian. “How the Ideas of ‘The State and Revolution’ Changed History.” In B. Becker (Ed.), Revolution Manifesto: Understanding Marx and Lenin’s Theory of Revolution. Liberation Media, 2015.

Burden-Stelly, Charisse. “Modern U.S. Racial Capitalism Some Theoretical Insights.” Monthly Review, Vol. 72, No. 3, pp. 8-20.

Engels, Friedrich. The Condition of the Working Class in England. Oxford University Press, 2009.

​​Horne, Gerald. “White Supremacy and Anticommunism.” Science & Society, Vol. 62, No. 2, 1998, pp. 282-283.

Ireland, David. The Communist Manifesto in the Revolutionary Politics of 1848: A Critical Evaluation. Palgrave Macmillan, 2022.

Jones, Gareth Stedman. “Introduction.” In Karl Marx and Friedrich Engels, The Communist Manifesto. Penguin Books, 1967.

La Riva, Gloria. “Lenin and the Right of Nations to Self-Determination.” In J. Cutter (Ed.), Storming the Gates: How the Russian Revolution Changed the World. Liberation Media, 2017.

Marx, Karl. Capital: A Critique of Political Economy (Vol. 1): The Process of Capitalist Production. Trans. S. Moore and E. Aveling. International Publishers, 1967.

Marx, Karl. Capital: A Critique of Political Economy (Vol. 2): The Process of Circulation of Capital. International Publishers, 1967.

Marx, Karl. Grundrisse: Foundations of the Critique of Political Economy (Rough Draft). Trans. M. Nicolaus. Penguin Books, 1993.

Marx, Karl. “Marx to Joseph Weydemeyer.” In Marx and Engels Collected Works (Vol. 39): Letters 1852-1855, Lawrence & Wisehart, 2010.

Marx, Karl. “Revolution in China and Europe.” In Marx-Engels Collected Works (Vol. 12): Marx and Engels 1853-1854. Lawrence & Wisehart, 2010.

Karl Marx and Friedrich Engels, The Communist Manifesto, trans. S. Moore (New York: Penguin Books, 1967).

Pradella, Lucia. Globalisation and the Critique of Political Economy: New Insights from Marx’s Writings. Routledge, 2015.

Wolff, Wilhelm, and Schapper, Karl. “A Circular of the First Congress of the Communist League to the League Members. June 9,1847.” In Marx-Engels Collected Works (Vol. 6): Marx and Engels: 1845-1848. Lawrence & Wishart, 2010.

Corporate Personhood, Monopoly Capital, and the Precedent That Wasn't: The 1886 "Santa Clara" Case

By Curry Malott

Republished from Liberation School.

Editor’s note: Beginning with overturning Roe v. Wade, the ultra right-wing Supreme Court continues to attack hard-won and elementary democratic rights in the United States, from affirmative action to the Indian Child Welfare Act. The following article is the third in our series “Crimes of the Supreme Court,” which demonstrates the fundamentally reactionary and anti-democratic nature of the Supreme Court. By examining key decisions in the Court’s history, we explain their historical and political context, the legal concepts and frameworks used to justify their decisions, and lay out their implications for later cases. This entry focuses on an 1886 Supreme Court ruling that is often cited as the precedent guaranteeing corporations the same protections as “natural persons,” although it did no such thing. Nonetheless, this case and several preceding ones demonstrated how the struggle for corporate personhood—particularly under the “Equal Protection Clause” of the 14th Amendment—was intimately bound up in the transition to U.S. monopoly capitalism.

How do the actual people in charge of corporations manage to remain protected from the consequences of the countless crimes they commit year after year? How is it that when CEOs make clear and obvious decisions that habitually violate every existing worker-won regulation, from the Clean Air Act to the Civil Rights Act, with very few exceptions, they charge the corporation—the “artificial” or “unnatural” person—instead of the CEO—the actual, “natural person” who made those decisions?

The legal grounds that corporations have the same protections and rights as “natural persons” is commonly justified by the 1886 Supreme Court ruling in Santa Clara County v. Southern Pacific Railroad Company. As we’ll see, the Court’s decision in the case didn’t establish any precedent for corporate personhood, nor did the Court make any ruling on it. To the extent that the Supreme Court even debated “artificial,” “corporate,” and other kinds of personhood, they did so to facilitate the transition from “free competition” to monopoly capitalism in the country.

In this article, we explore the Santa Clara case before turning to debates within the institutions of power in the U.S. over the Equal Protection Clause of the 14th Amendment. These debates can only be understood if situated within their historical, political, and economic context: the transition to monopoly capital in the U.S. To conclude, we explore the case’s destructive legacy, or the way it was illegitimately used to set precedent for the growth of monopoly capital.

The facts and outcome of the case

During the 1878-79 California Constitutional Convention, the state enacted a new tax code that, in part, prevented railroad corporations from factoring existing debts and mortgages into their total taxable value. The Southern Pacific Railroad Company, along with the Central Pacific Railroad Company, refused to follow the new code. They did not pay the additional tax, nor did they pay the back taxes they subsequently owed.

The first point of contention were back taxes—including the interest on them—that railroad companies refused to pay in California, specifically the taxes being levied on the fencing along the railroads’ right-of-way. Among the handful of complaints brought forth, lawyers representing the railroads argued that it was the county and not the state that should have assessed the value of the fencing. As Thom Hartmann points out, “the railroad was refusing to pay taxes of about $30,000,” which is “like having a $10,000 car and refusing to pay a $10 tax on it—and taking the case to the Supreme Court” [1].

Faced with the loss of revenue, a number of counties in California, including San Mateo County, filed suit against the railroad companies in an attempt to collect the taxes that the railroads refused to pay. According to Southern Pacific’s executives, they were being treated unfairly relative to “legal” or “natural” persons who could deduct debts and mortgages from their taxable income or value. The cases were consolidated before reaching the California Supreme Court, which ruled mostly in favor of the counties and against the railroad companies. The one exception concerned the fences constructed around the railroads. The Court affirmed that the fences “were improperly included by the State Board in its assessments” and, as a result, there was no legal basis for the counties to collect additional taxes [2].

The origins of corporate personhood?

Interestingly, however, the Santa Clara decision is rarely remembered for the issue of taxation and, more specifically, the role of railroad monopolies, and is instead mostly cited as the first instance of the Supreme Court upholding “corporate personhood.”

One of the railroad’s defenses at the Supreme Court hearing included arguing that the “Equal Protection Clause” of the 14th Amendment applied to corporations, so therefore the state couldn’t tax them differently from other citizens. Yet this was only a minor point among the six arguments presented by the railroads.

Moreover, it seems Chief Justice Morrison Waite quickly dismissed the argument in the case by stating that it is a general, agreed upon principle that the clause applies to corporations.  According to the ruling’s “headnote,” Waite stated the Court would not even consider “whether the provision in the 14th Amendment to the Constitution, which forbids a State to deny any person within its jurisdiction the equal protection of the laws, applies to these corporations. We are all of the opinion that it does” [3].

Did the Supreme Court, then, establish a legal precedent that corporations have the same legal protections as natural persons? Despite the Supreme Court citing it as precedent for a century, and despite that it was routinely taught to law students as precedent, the ruling did no such thing.

Waite’s comment above was not part of the official ruling. Instead, it was included in a headnote written by the Court’s Reporter of Decisions, journalist J.C. Bancroft Davis, former president of the Newburgh and New York Railway Company. Headnotes are introductory summaries of cases added to Court rulings to make it easier for legal professionals and others to sift through cases.

Headnotes, therefore, are not legally-binding and hold no legal authority. It wasn’t until the 1906 ruling in United States v. Detroit Lumber Co. that the Supreme Court officially ruled in its majority opinion that headnotes aren’t part of the Court’s rulings or findings. As then-Chief Justice David Brewer wrote, “the headnote is not the work of the court, nor does it state its decision… it is simply the work of the reporter, gives his understanding of the decision, and is prepared for the convenience of the profession in the examination of the reports” [4]. This, however, hasn’t prevented the U.S. courts in general, and the Supreme Court in particular, from citing the headnote as precedent.

The headnote is significant in a few ways. First, the report of Waite’s comments didn’t include any legal or constitutional justification; it was a mere assertion. As a result, since 1886 the status of corporations as “people” protected under the Constitution has been a source of controversy. Moreover, “the concept of the corporate person lacks a principled definition and, therefore, seems to expand, or contract, depending on the circumstances and on the personal predilections of the speaker” [5].

The headnote is especially significant because of Waite’s sweeping acceptance that corporations are protected by the Equal Protection Clause of the 14th Amendment. This differs from a previous Court ruling in the 1873 Slaughterhouse Cases that made their way to the U.S. Supreme Court after an 1869 Louisiana legislature decision to issue a charter confining slaughterhouse operations in New Orleans to a single corporate entity, the Crescent City Live-Stock Landing and Slaughter-House Company.

Crescent City’s charter required the company to run its waste downstream, ordered other slaughterhouses, most of which were much smaller, to close, and forbid the establishment of any new slaughterhouses in the area for the next 25 years. In effect, the legislature produced a monopoly on slaughterhouses for the time period. This meant that all workers, including butchers, had to work for Crescent or find work elsewhere. As a result, hundreds of members of the Butchers’ Benevolent Association, which represented smaller or independent slaughterhouses, filed suit in the Louisiana Supreme Court on the basis that the monopoly violated the 13th and 14th Amendments by forcing butchers into “involuntary servitude” and taking away their property without compensation or due process.

When the U.S. Supreme Court took up the cases, the majority opinion explicitly stated that the Amendments did not apply in this instance. The dissenting opinion by Justice Stephen Field proposed a broad definition of the Amendments at stake, one that would become more expansive as the overthrow of Reconstruction solidified. The crucial issue, he stated, was “whether the recent amendments to the Federal Constitution protect the citizens of the United States against the deprivation of their common rights by State legislation.” Field closed the dissenting opinion by asserting that the 14th Amendment applies to corporations and monopolies. He wrote that the Amendment “does afford such protection, and was so intended by the Congress which framed and the States which adopted it” [6].

Between his time on California’s Ninth Circuit Court and the Supreme Court, “Field worked tirelessly to expand the 14th Amendment to include the rights of corporations.” He was driven by careerism and a desire to reach the country’s highest court and maybe even the presidency “with the support of railroad money” [7].

In his dissenting opinion in a related railroad case, Fields expressed his outrage that the Court was neglecting the crucial question, which was if “an unlawful and unjust discrimination was made . . . and to that extent depriving it of the equal protection of the laws” [8].

Whether or not the original drafters of the post-Civil War amendments explicitly considered if and how the 14th Amendment—or the 13th— could apply to corporations or any group other than Black people is unclear. Based on available records, some argue that Congress may indeed have considered or intended for corporations to be included in the 14th Amendment, as the original drafters “were inundated with petitions from insurance companies and railroads complaining about protectionist state measures” [9]. That the 14th Amendment makes a distinction between “persons” and “citizens” is also significant, as the former “are entitled to due process and equal protection” while the latter are only “guaranteed the privileges and immunities of national citizenship” [10].

What is certainly true, however, is that almost none of the 14th Amendment cases heard by the Supreme Court concerned the rights of Black people. The Supreme Court itself affirmed this in 1938. In his dissenting opinion on Connecticut Gen Life Ins C. v. Johnson, Justice Hugo Black cited Miller’s majority opinion in the 1873 Slaughterhouse cases, doubting that the 13th and 14th Amendments would include anyone except Black people. “Yet,” he continued, “of the cases in this Court in which the 14th Amendment was applied during the first fifty years after its adoption, less than one-half of 1 per cent. invoked it in protection of the negro race, and more than 50 per cent. asked that its benefits be extended to corporations” [11].

Further, recent history affirms that the U.S. ruling class considers and treats corporate entities much more humanely than they treat Black people.

Corporate personhood and a new phase of U.S. capitalism

The period leading up to the 1886 case was characterized by monumental shifts in the political, social, economic, and racial order of the U.S. This included the heroic Reconstruction era as well as its tragic defeat and the rapid growth of monopoly capital in the country.

In the decade leading up to Santa Clara case, railroad barons emerged as a new faction of the capitalist class that provided the model for monopoly capital. This is why, just before the 1878-79 California Convention, California allowed the Southern Pacific Railroad Company to absorb several other corporations. Prior to that, Congress granted 11 million acres of land to Southern Pacific, although for their expansion the company acquired additional debts through a mortgage on its construction, equipment, railcars, and so on. Southern Pacific was also granted the legal authority to construct a line connecting San Francisco to Texas.

The trend toward monopoly predated the Civil War and coincided with the ongoing conquest of the continent. Large corporations, with state funding, facilitated the expanding interstate commerce through railways and canals, which in turn led to a larger and more integrated national economy. Federal and state legislatures promoted this centralization of capital insofar as it took the economic burden off the state while still allowing the state to use the new networks for postal and military purposes.

The pressing question for the U.S. ruling class was whether or not the government-backed monopolists would ultimately represent a unique and temporary phenomenon or provide a model for capital as a whole.

There was a clear struggle between the ideologues of small enterprises that formerly dominated the economic landscape and operated similarly to the idealistic “free competition” phase of capitalism and those of monopoly capital, where the various enterprises dispersed throughout different entities were consolidated into large ones.

As Morton J. Horowitz details in his account of how legal structures raced to keep up with the latest changes in capital, in the 1880s there wasn’t any precedent about “natural” or “corporate” persons because these categories threatened individualism and free-market competition. By the turn of the century, however, the struggles over “political economy between small entrepreneurs and emergent big business over the legitimacy of large scale enterprise” erupted [12].

The debates taking place within the ruling class had to do with whether or not there was an inherent tendency for capital to centralize. At the time, most political economists didn’t give credence to the inevitability of monopolization, seeing the railroads as exceptional. It didn’t take long until politicians, bourgeois economists, and others rightly interpreted the railroad’s economic trajectory as a precursor to a coming phase of industrial monopolization.

There was a shift in power and influence within the capitalist class from the old “free enterprise” capitalists to the new monopolists:

“By the late nineteenth century in America, fundamental changes had already taken place in the legal treatment of the corporation. First, and by far the most important, was the erosion of the so-called ‘grant’ or ‘concession’ theory of the corporation, which treated the act of incorporation as a special privilege conferred by the state for the pursuit of public purposes. Under the grant theory, the business corporation was regarded as an ‘artificial being’ created by the state with powers strictly limited by its charter of incorporation. As we shall see, a number of more specific legal doctrines were also derived from the grant theory in order to enforce the state’s interest in limiting and confining corporate power” [13].

From this point of view, the rise of monopoly capitalism, or the centralization of larger and larger sectors of the means of production into fewer and fewer hands, is driven by the self-expansive and competitive nature of capitalist production. The Supreme Court provided the legal grounds for facilitating this transformation.

Legacy of the case

In the immediate aftermath of Santa Clara, “the Court did away with 230 state laws that had been passed to regulate corporations” [14]. It was clear evidence monopoly capital was in control of politics. Supreme Court decisions in the years between 1908 and 1914, often citing corporate personhood, struck down minimum-wage laws, workers’ compensation laws, utility regulation, and child labor laws—every kind of law that a people might institute to protect its citizenry from abuses” [15].

For over a century now, the state has continued to take power and rights away from working and oppressed people and transferred it to capital. They have even perverted the hard-won gains won by people’s movements into justifications for increasing corporate power, perhaps none more disgusting than the misuse of the 14th Amendment.

While even to this day there is no clear legal basis for corporate personhood, that hasn’t stopped the Supreme Court from waging class war against the people on behalf of corporations. Because the nine unelected judges determine the law, they can legally justify whatever tactics they deploy against us.

The misuse of Santa Clara’s headnote has not only severely inhibited the ability to regulate corporations, but it has created a space for CEOs and shareholders to operate with near impunity. For example, Joel Bakan notes that “corporate illegalities are rife throughout the economy…By design, the corporate form generally protects the human beings who run corporations from legal liability, leaving the corporation, a ‘person’…the main target of criminal prosecution” [16].

The Supreme Court was created to serve the interests of the capitalist class. Its very existence stands as a barrier to the working and oppressed peoples’ desire for a true democracy. As the Supreme Court unleashes its most current wave of attacks on our basic democratic rights, we will continue to fight for a new system.

References

[1] Thom Hartmann,Unequal Protection: How Corporations Became People–and How You can Fight Back(San Francisco: ‎ Berrett-Koehler Publishers, 2010), 18.
[2] Santa Clara County. v. South Pacific Railroad, 118 U.S. 394 (1886), 411. Availablehere.
[3] Ibid., 396.
[4] United States v. Detroit Lumber Co., 200 U.S. 321 (1906). Availablehere.
[5] Malcolm J. Harkins III, “The Uneasy Relationship of Hobby Lobby, Conestoga Wood, the Affordable Care Act, and the Corporate Person: How a Historical Myth Continues to Bedevil the Legal System,”Saint Louis University Journal of Health Law & Policy7, no. 2 (2014): 204.
[6] Ibid.
[7] Nicholas S. Paliewicz, “How Trains Became People: Southern Pacific Railroad Co.’s Networked Rhetorical Culture and the Dawn of Corporate Personhood,”Journal of Communication Inquiry43, no. 2 (2019): 204-205.
[8] Cited in Ibid.
[9] Matthew J. Zinn and Steven Reed, “Equal Protection and State Taxation of Interstate Business,”The Tax Lawyer41, no. 1 (1987): 89-90.
[10] Ibid., 90.
[11] Connecticut General Life Ins. Co v. Johnson, 303 U.S. 77 (1938). Availablehere.
[12] Morton J. Horowitz, “Santa Clara Revisited: The Development of Corporate Theory,”West Virginia Law Review88, no. 2 (1986): 187.
[13] Ibid., 181.
[14] Howard Zinn,A People’s History of the United States(New York: Perennial Classics, 1980/1999), 261.
[15] Hartmann,Unequal Protection, 24.
[16] Joel Bakan,The Corporation: The Pathological Pursuit of Profit and Power(New York: The Free Press, 2004), 75-79.

Currency Crisis In The West (1965)

By Hsiang Chung

Republished from Black Agenda Report.

Editor’s Note from BAR: This 1965 essay appeared in Kwame Nkrumah’s journal, The Spark. If it were around today, The Spark would probably carry a warning in the US that it was “state-affiliated media.” Its editors probably wouldn’t care. The Spark was published by Kwame Nkrumah’s Bureau of African Affairs and its explicit mission was to build socialism in Ghana and to aid in fomenting working-class revolution throughout Africa.

The Spark’s content reflected this mission. The weekly paper ran essays articulating the theory of Nkrumaism and published detailed analysis of neocolonialism and imperialism, and of socialism and development. It considered the class struggle in Africa and examined anti-colonial struggles across the continent. In its pages appeared statements of solidarity with Cuba, Algeria, and Black America, and contributions from Amilcar Cabral, Fidel Castro, and Che Guevera. When W.E.B. Du Bois passed away in 1963, an issue appeared in his honor.

For the US State Department, The Spark represented a dangerous tendency within Nkrumah’s Ghana.  In January, 1964 the US Central Intelligence Agency issued a classified report titled “The Leftward Trend in Ghana .” The report noted that the US Embassy in Ghana had characterized a recent speech of Nkrumah’s “as perhaps his most extreme anticapitalist and revolutionary performance.” The speech, according to the CIA, “included [Nkrumah’s] first known specific use of such phrases as ‘class interests’ and ‘class politics,’” it criticized the US “as the citadel of reactionary opposition to progressive forces everywhere,” and it aligned Ghana with “the international ‘socialist’ fraternity.” “Subsequently,” the report continued, “[Nkrumah]  has increasingly tended to mouth the Communist-derived jargon appearing continually in The Spark.”

In their summary of the situation in Ghana, the CIA concluded that, “Barring a successful coup against his regime, it will probably be increasingly difficult for the West to maintain an effective presence in Ghana.”

Nkrumah was overthrown by a CIA-backed military on February 24, 1966.

Below we reprint an article from The Spark titled “Currency Crisis in the West.” Its author is Hsiang Chung, a Chinese economist of whom, we admit, we know little more than his name. Even so, the essay has a crystalline analysis of how monetary policy has been used as a tool of imperial and neocolonial rule. Moreover, in charting the historical reasons for the rise of the dollar’s global supremacy in the twentieth century, it establishes the historical conditions precipitating the dollar’s imminent twenty-first century fall. This is being republished for both historical perspective and relative analysis to the current state of the US dollar. It is important to note that much has changed since this was written in 1965, most notably the varying methods of imperialism/colonialism that have developed by the US and West, the fall of the USSR, and the abandoning the gold standard in 1971.

***

Hsiang Chung, “Currency Crisis in the West,” The Spark: A Socialist Weekly of the African Revolution, January 29, 1965.

The imperialist scramble for world domination is usually marked by a struggle for financial supremacy, for monetary policy is one of the heavy weapons of the imperialist countries in their drive, for expansion--a weapon they use to strangle their rivals and extend their spheres of influence.

In the struggle for monetary supremacy, an imperialist country invariably uses its political and economic power to establish a monetary bloc in which its own currency is made to take a leading position while the currencies of its colonies and dependencies as well as other states associated with it are reduced to a subordinate status.

It has to link to currencies of the monetary bloc members with its own, and at the same time to make them keep their gold and foreign exchange reserves in its central bank to be used by them for “unlimited buying and selling” on foreign exchange market at fixed rates. Consequently, its commodity in capital exports will not have to suffer from the fluctuation of the currency of the monetary bloc members and it will not have to pay more for raw material imports because of the devaluation of its own currency.

Moreover, since the gold and foreign exchange reserves of its monetary bloc members are deposited in its own central exploitation, and this leads to the formation of a financial centre within its own sphere of influence over which it is able to establish its financial supremacy. That is why currency warfare in capitalist international finance is an important means in the imperialist scramble for markets, outlets, for investment and sources for raw materials, as well as an indispensable factor in their constant redivision of the capital of this world.

The Monetary System Crisis Sharpened

The deepening of the general crisis of capitalism, especially the emergence of the crisis in the capitalist monetary system, has intensified the monetary warfare among the imperialist powers. As a result of the world economic crisis of 1929–33, normal financial relations among the capitalist countries were disrupted as never before; the gold standard completely collapsed, and the monetary system of the capitalist countries became chronically unstable.

From that time onwards, in their efforts to maintain currency stability, and to ward off the crisis in the monetary system, monopoly capitalist groups in the imperialist countries were compelled to resort to government intervention on a larger scale than before and adopt such measures in the field of international finance as  moratoria on foreign debts currency depreciation, foreign exchange  restrictions and control etc., in order to consolidate their position in the better struggle for markets and spheres of influence. However, all the steps, which were designed to shift the crisis onto others failed to extricate the imperialists from their plight, but instead made the struggle still sharper and more complicated.

Following the end of World War II, as a result of the formation of the socialist camp and the upsurge of the national liberation movement the areas dominated or exploited by the imperialist countries have become smaller and smaller. In this predicament, the inter-imperialist struggle for markets and spheres of influence has become more acute and currency has been used on a still larger scale as an instrument in defeating their adversaries. Not only have they subjected the currencies of their colonies and dependencies to their own as in the past; they have also exerted great efforts to make their own currency the dominant one within the shrinking imperialist camp. At the same time, the deepening of the general crisis of capitalism has been accomplished by an intensified crisis in the monetary system, and the imperialist countries have been forced to take further steps to intervene in various forms in the field of international finance. However, whenever they are taken by the strong to bully the weak or the weak to counteract an adversary’s pressure, the steps are bound to aggravate the imperialist monetary struggle, and make it more severe than was the case before World War II.

Domination vs Independence

The characteristic of postwar inter-imperialist relations is that US imperialism has increasingly endeavored to consolidate and extend its dominant position while the other imperialist powers refused to reconcile themselves to US control from which they have done all they can to free themselves. This rivalry between US imperialism and the other imperialist powers struggle between domination and independence— is also reflected in capitalist, world finance.

During World War II, US imperialism amassed enormous wealth and greatly expanded  its productive capacity and export trade. In the early post-war years, Washington took advantage of the temporary disappearances of three fascist countries, Germany, Italy, and Japan from the capitalist world arena of competition and of the heavy destruction suffered by the two old imperialist powers, Britain and France; it went all out for economic expansion abroad and consequently had a huge surplus in its balance of international payments and piled up vast gold reserves. In 1938 the US gold reserves amounted to $14,594 million or 56.1 per cent of the gold reserves of the capitalist world. In 1948, they jumped to $24,399 million, or 70.3 per cent of the capitalist world’s total. During this period, the other capitalist countries incurred huge deficits in their international accounts with the United States, resulting in a serious “dollar shortage” and massive gold outflows to the United States.

In the decade between 1938 and 1948, the gold reserves of Britain, the sterling area and the West European countries dropped from $9,511 million to $5,707 million, and their share of the capitalist world's gold reserves fell from 36.6 per cent to 16.4 per cent. At that time the disruption of domestic production, the heavy increases in budgetary deficits, and the impact of deficits in the payment of international payments brought about serious currency depreciation in most of the capitalist countries except the United States. Under the circumstances, the governments of these countries were constrained to their foreign exchange restrictions and controls to achieve, and to stabilize the value of their currencies by artificial means. The result was that they’re currencies became “soft”, i.e., could not be freely converted into other foreign currencies, they were in no position to compete with the dollar, a hard currency which was freely convertible.

Shift in Economic Power

This shift in economic power was much to the advantage of US imperialism in its greedy bid for world leadership. It has made every effort to form a big dollar bloc to dovetail plans to build an unprecedentedly big empire in the world. In addition to adopting political, military, economic and other measures, US imperialism, in order to fulfill this grandiose plan, must take the following steps in the monetary field. On the one hand, it needs to consolidate the external value of the dollar and maintain its “free convertibility” so that fixed exchange rate between the dollar and other currencies can be preserved, and the dollar can have the same status as gold in the capitalist world's current reserves.

This would provide favourable conditions for New York to become the capitalist world’s sole international financial centre.

On the other measures both at home, and in the currency blocs, they control in order to check economic penetration by their competitors. US imperialism therefore found it necessary to do the utmost to intervene in their international financial policies and foreign exchange systems, thus enabling it to maintain normal trade relations with them, and paying the way for its further economic expansion.

In effect, this US imperialist rapid plan is nothing but a refurnished version of the currency blocs established by Britain, France, and other old imperialist powers in their colonies and spheres of influence. But in order to ward off the strong opposition of other imperialists, the United States had to resort to more covert and slyer tactics in pushing forward this plan in the capitalist world.

Price of Gold Kept Down

In the first place, relying on its substantial gold reserves, US imperialism artificially kept down the price of gold in its dealings with other governments or their central banks. It is common knowledge that as early as 1934 the US government prescribed the external value of the dollar, i.e., the parity between the dollar and gold, at $35 an ounce. But since the latter part of the 1930s and particularly since World War II, the value of the dollar has been frequently devalued internally because of inflation. In 1948 the purchasing power of the dollar was only 57.8 per cent of what it was in 1939. In 1963 it further dropped to 44 per cent. In order to stabilize the external value of the dollar by artificial means, the U.S. government, irrespective of the frequent devaluation of the dollar internally, has always exchanged it for gold at the official rate of $35 percent ounce in its dealings with other countries. And so the external value of the dollar has long been out of tune with the extent of its internal devaluation while the price of gold has been greatly kept down.

Other capitalist countries were then suffering from a widespread “dollar shortage” and they virtually had very little or no dollars with which to buy US gold. Therefore, keeping the price of gold down actually meant compelling other capitalist countries to sell gold cheaply to the United States in order to make good their dollar deficits. This increased the surplus in the US balance of international payments, and gave it the opportunity to rake in gold at a low price made it difficult for the latter to relieve their “dollar shortage”. And this also became a pressure under which they had to accept the Marshall plan and other types of “aid,” and thus subject themselves to enslavement by US imperialism.

Another major aim of US imperialism in keeping down the price of gold is to irrigate the same role as gold to the dollar, whose external value was artificially stabilized, and serving as a world currency. Since the currencies of most other capitalist countries were unstable and their foreign exchange reserves, along with, and in preference to pound sterling. This facilitated US imperialism control of their currencies in one way or another, and it’s becoming the biggest International exploiter in capitalist world finance.

Washington’s Building Tactics

In the second place, in the early post-war years, Washington spread such false ideas as “the elimination of foreign exchange control,” “the stabilization of exchange rates,” and “avoidance of competitive currency depreciation.” These were designed to compel other countries to abandon their foreign exchange restrictions and controls, and relatively stabilize their exchange rates in a way advantageous to the United States. It pushed this policy in order to ensure that the proceeds of America commodity exports and the remittance to the United States of profits from overseas investment may be protected from other countries’ foreign exchange restrictions.

It is true that US imperialism, at least on the surface, has not imposed downright control over the currencies of its “allies.” In reality, however, it did all it could to achieve this purpose by bullying tactics and cajolement. As mentioned above, Washington compelled the recipients of its “aid“ to accept such terms as the introduction of free convertibility within a certain period of time and the scrapping of their foreign exchange controls and restrictions.

A notable example of this took place when Britain received a big US loan amounting to $3,750 million in 1945 and two years later was compelled to introduce free convertibility for the pound sterling, which lasted for only five weeks. Of great importance is the fact that the International Monetary Fund set up in the early postwar years— a major instrument of US imperialism in the international monetary field— dangled the bait of short term loans before member states in order to induce them to accept conditions involving the loss of national sovereignty. These included the abolition of foreign exchange, controls and restrictions, the definition of the foreign exchange value of a currency in terms of the dollar containing a specific weight of gold and the obligation to obtain the funds agreement to specific changes in foreign exchange rates.

Struggle Between Dollar and Pound

All these measures were naturally resented by other imperialist powers. However, West Germany and Japan were then dominated by Washington, and it was on the basis of formulas prepared by the US government that the exchange rates for the West German mark and the Japanese yen were established. Inflation of considerably serious proportions and a rapid deterioration in the balance of international payments overtook France and Italy; the franc and the lira were frequently devalued; it was difficult for them to compete with the dollar. Only the pound sterling could initiate limited counter- offensives against it. Although Britain’s power has declined since World War II, it still has the backing of the sterling area in international finance, the pound remains the reserve currency of sterling area countries and a number of other capitalist countries in the world network of overseas banks, which was set up by Britain in the last century, retains considerable influence. In these circumstances, the struggle between the dollar and the pound was naturally the most prominent one in the imperialist currency warfare.

The comprehensive system of foreign exchange restrictions and control set up by Britain in the sterling area was a powerful fulcrum strengthening British imperialist exploitation of the commonwealth countries and checking US economic penetration. And it was a serious handicap to US imperialist expansion in the capitalist world.

In the first few years since World War II, by means of loans, “aid” and pressure by different US controlled international organizations, Washington devised every possible means to compel Britain to open the door to the sterling area, and restore the free convertibility of the pound so as to pave the way for the control of the whole sterling area, including Britain itself. For a time British imperialism refused to take orders from Washington and adopted delaying tactics. But in 1949 a pound was devalued by 30.5 per cent against the dollar, followed by a corresponding currency to valuation by 35 other capitalist countries–to a large extent the result of pressure from Washington.

Nevertheless, Britain and other imperialist powers, wherever possible, dealt Washington’s high-handed policy, a rebuff. The sterling area and the currency blocs of other imperialist countries—such as the franc bloc—clung stubbornly to their spheres of influence. Moreover, on the question of the price of gold, because gold produced in the sterling area makes up more than 70 per cent of the total annual production of the capitalist world, Britain and South Africa have more than once battled for a rise in the gold price as a countermeasure to US control. They eventually succeeded in wrestling some concessions from Washington and were permitted to sell their gold for industrial purposes on the free market at a higher price than the official US price of $35 per ounce. The International Monetary Fund's demand for the abolition of foreign exchange controls, and for the institution of a fixed parity between the dollar and other currencies were ignored by many countries. France and Italy, for instance, did not institute fixed exchange rates until the mid-1950s. This shows that, despite Washington’s desperate efforts to put the capitalist world's monetary system under its control, other imperialist powers have been unwilling to accept permanent subordination, they have exerted every effort to free themselves from the claws of the dollar. With the shift in the balance of forces between the United States and other imperialist powers, both Washington’s efforts at domination in the monetary field, and the other imperialist’s resistance are growing more intense.

No More Dollar Dominance

With the advent of the 1950s and the aggravation of the uneven development of capitalism, new changes have taken place in the balance of forces among the imperialist countries. Propped up by the United States, West Germany, Italy, and Japan, have recovered from their position as defeated countries. The power of France has steadily increased, enabling it gradually to speak on equal terms with the United States. Although it keeps getting weaker, Britain too has no desire to be at the mercy of Washington. US dominance, which was attained during and immediately after World War II, has begun to falter.  

This shift in the balance of forces which is unfavorable to US imperialism is also reflected in international finance. After the war of aggression against Korea broke out in 1950, deficits began to appear in the US balance of payments and outflow of gold started, because its policies of war and aggression made it increasingly difficult for its trade surplus and proceeds from overseas investment to meet its huge military expenditures, foreign “aid” commitments and private capital export.

A similar situation recurred during US economic crisis of 1953–54. After 1956, taking advantage of the Anglo-French aggression against Egypt, the United States sold a large amount of oil and cotton to Western Europe, and this helped to bring about a turn for the better in the US balance of payments. However, from 1950 to 1957, the US gold flow to other countries amounted to $1,700 million. Added to this were mounting short term debts, and the annual rate of deficit in its balance of payments averaged about $1,200 million. During the same period the gold reserves of other capitalist countries increased by $3,700 million and their dollar reserves by $6,400 million. By the 1950s, the widespread “dollar shortage” of the early posts were years had virtually become a thing of the past.

A New State

After 1958, a new state was reached in the struggle between the United States and other imperialist powers to strengthen their respective positions in world finance. On the one hand, as a result of its intensified policies of war and aggression, US imperialism had to spend on an average more than $10,000 million a year for its overseas military expenditures, foreign “aid” and private capital export. This led to an increase in the serious dollar crisis, which was manifested in the form of balance of payment deficits, and of gold outflows. The dollar crisis and the recurrent economic crisis erupted either simultaneously or alternately.

Whatever methods it uses, it is impossible for US imperialism to prevent a continual deterioration in the position of the dollar. On the other hand, with the rapid growth in their political and economic power, the tremendous improvement in the balance of payment, and the big increase in their gold reserves, other major capitalist countries, and particularly several of the Common Market Six with France and West Germany as their nucleus, were able greatly to strengthen their currencies on the international finance market. From 1958 to 1962 the gold flowing from the United States to other countries totaled $6,800 million. These rises in the short term debts owed to other countries made for an average annual rate of deficits of about $3,000 million from 1950 to 1957. At the same time, the increase in the gold reserves of other capitalist countries amounted to $8,700 million. If increases in foreign exchange holdings are added to this the total increase in their gold and foreign exchange reserves during the period was $14,500 million. Most of these increases went to West European countries. France’s increases amounted to $3,400 million, Italy’s $2,200 million, and West Germany’s $1700 million. Next came Britain, the Netherlands and Belgium.

Dollar Crisis— Incurable Disease

By 1963, the incurable disease of the dollar crisis remained serious. The deficit in the US balance of payments in that year still stood at $3,000 million. At the end of December, its gold and foreign exchange reserves totaled $32,179 million, of which gold accounted for $19,790.million, or 47% of the capitalist world's total. Thus US gold reserves are far below their pre-war level while those of the West European countries are far above it.

A Fraternal Hand: The American Tradition of Socialist Democracy and Chinese Socialism

By Carlos Garrido

Republished from the Midwestern Marx Institute.

​There is a glaring paradox at the core of the American project. On the one hand, it proclaims its national self-determination with the values of life, liberty, pursuit of happiness, right to revolution, and to a government of, by, and for the people. On the other hand, the rights to life, liberty, and pursuit of happiness have never been guaranteed for anyone but the white, male, capitalist class (which is slowly being racially and sexually diversified). The leading thinkers of the American project, from Jefferson to Martin Luther King Jr., have warned about the corrupting influence the interests of capital can play in preventing the concretization of these rights.

Thomas Jefferson, for instance, understood that the ‘enormous inequality’ in property relations was the cause of the ‘misery [of] the bulk of mankind,’ and that, as Herbert Aptheker notes, this concentration of capital was ‘the central threat to democratic rights.’[1] In noticing how the interest of capital can turn a government of, by, and for the people into a government of, by, and for big business, Jefferson would go on to draw a distinction between the democratic man and the aristocratic man. The former, he argued, trusts the people’s will, the latter distrusts it and turns towards big business elitism. Jefferson believed the aristocratic man, if he came to dominate the American government, would undermine the ideals of the 1776 anti-colonial revolution. The first generation of home-grown socialists, flowering in the 1820s and 1830s, saw Jefferson’s prediction actualize itself in the embryonic industrialization period of the US. In the face of growing inequalities and disparities, thinkers like Langdon Byllesby, Cornelius Blatchley, William Maclure, Thomas Skidmore and others, developed the ideals of the declaration of independence into socialism, what they considered to be its practical and logical conclusion.

Throughout the ages, generations of American socialists have appealed to the declaration of independence to argue for socialism in a way that connects with the American people’s common sense. Leading historians and theoreticians of the American socialist tradition, thinkers like Staughton Lynd, Herbert Aptheker, W.E.B. Dubois, Eugene Debs, William Z. Foster and others, have elaborated on the subject, noting that regardless of the limitations encountered in the founding of the American experiment, it was a historically progressive event, whose spirit should be carried forth today by socialists and communists.

As the US is increasing tensions against China, leading to what many consider a ‘new cold war,’ it is important to look back at the values the American people accept, to the thinkers the American people consider their own, and to consider how different China’s practices – which our ruling class and its media constantly estrange to the American public – are from the ideals which founded our country. What we will find, I believe, is the values prioritized by the leading thinkers of the American experiment, from Jefferson to Dewey to Martin Luther King Jr., are best embodied today in Chinese socialism. This truth, in my view, should be brought forth to the American people. No longer should their consent continue to be manufactured to fight against peoples whose practices align with our ideals more than those we encounter in our own country.

John Dewey (1859-1952), known as ‘America’s philosopher of democracy,’ wrote that we must stop thinking about democracy as something ‘institutional and external;’ instead, we should treat democracy as a ‘way of life,’ one governed by the ‘belief in the common man.’[2] For Dewey, genuine democracy is a consistent practice; it has less to do with showing up to a poll every two to four years and more to do with the ability of common people – what in Spanish we call el pueblo – to steadily exert their collective power over the affairs of everyday life. Dewey understood that this genuine form of democracy was largely inexistent in the US, where the democratic spirit is reduced to voting every four years in political elections which, as he argued, function more as a ‘shadow cast on society by big business.’[3]

In line with the long tradition of home-grown American socialists, Dewey would conclude that the ideals of the founders – especially the radical flank commonly known as the ‘dissenters’ – would be realized ‘only as control of the means of production and distribution is taken out of the hands of individuals who exercise powers created socially for narrow individual interests.’[4] In the context of the US, Dewey held that this required ‘a radical change in economic institutions and the political arrangements based on them.’ ‘These changes,’ said Dewey, ‘are necessary in order that social control of forces and agencies socially created may accrue to the liberation of all individuals associated together in the great undertaking of building a life that expresses and promotes human liberty.’[5] For Dewey, in short, only socialism could make actual the radical, and for its time, deeply democratic, spirit of the declaration of independence.

A similar sentiment can be found in Martin Luther King Jr., the only American to have his own holiday (every third Monday of January). In one of his last sermons, whilst reflecting on the rights upheld in the declaration of independence, King would note that ‘if a man doesn’t have a job or an income, he has neither life, nor liberty, nor the possibility for the pursuit of happiness. He merely exists.’ America, for King, had desperately failed to fulfill its promise, not just for the black souls it kept enchained for more than two centuries, but for all poor and working people who continued to ‘perish on a lonely island of poverty in the midst of a vast ocean of material prosperity.’[6] This division was representative of what King called the ‘two Americas,’ the America of the poor working majority and the America of the few owners of big capital.[7]

Like Dives in the parable of the rich man and Lazarus, King held that ‘if America does not use her vast resources of wealth to end poverty and make it possible for all of God’s children to have the basic necessities of life, she, too, will go to hell.’[8] The stranglehold monopoly capital has over the American state turned the American dream – that is, the individual’s quest for life, liberty, and pursuit of happiness in harmony with the human community – into the American nightmare. No number of victories in the sphere of civil rights could change, in King’s view, the fundamentally polarizing character of the system. As King would argue years after the victories of the civil rights movement: ‘I have found out that all that I have been doing in trying to correct this system in America has been in vain… I am trying to get at the roots of it to see just what ought to be done… The whole thing will have to be done away with.’[9] For all its claims of being a beacon of democracy, for King, as Cornel West argues, ‘America’s two main political parties, each beholden to big money, offer merely alternative visions of oligarchic rule.’[10] Like Dewey and many others within the tradition of American socialism, King considered the values of the declaration of independence to only be universally applicable if America is able to move beyond the capitalist mode of life.

The American ruling class ignores and/or sanitizes this tradition of home-grown socialism which permeates even through the most universally admired of American figures. It wishes to hide the working class’s and oppressed people’s history of struggle in our country, for only in doing so can it perpetuate the McCarthyite lie that socialism and the values the American people accept are wholly incompatible. The truth is that, on the contrary, it is on the basis of the values the American people already accept that American socialism has developed. By showing the American people the positive role socialism has played in their national past – and how these struggles have seen themselves as continuations of the revolutionary tradition of 1776 –  the similarities in Chinese socialist construction and this unique tradition of American socialism become apparent. 

Martin Luther King Jr., for instance, found it condemnable to sustain poverty amidst material abundance; the rights to life, liberty, and pursuit of happiness require the abolition of poverty for their genuine fulfillment. In just 40 years, Chinese socialism has been able to lift more than 800 million people out of poverty, abolishing that horrendous condition the capitalist mode of life makes necessary for the vast majority of people. While building a poverty-free world with common prosperity, China has been able to realize a condition for its people which looks a lot more like what the leading American minds (like Dr. King) stood for than what can be found in America itself.

As we approach the 55th anniversary of King’s assassination (which the FBI helped orchestrate), we should ask: has America – which celebrates King once a year – heeded to King’s concern for poverty and the condition of the working class? The answer is a resolute No! In no state of the US, for instance, is the federal minimum wage ($7.25) enough to survive; even if it is raised to $15 – as the democratic socialists and other progressives have called for – the minimum wage would still not be enough for a working class family to survive anywhere in the country. With stagnant wages and inflation at a 40 year high, almost 60% of Americans are currently living paycheck to paycheck. Many of these people are on the brinks of joining the 600,000 homeless people wandering around in a country with more than 17 million empty homes. It is not surprising, in a country where there are 33 times more empty homes than homeless people, that 34 million people, including one in eight children, experience hunger while 30-40% of the U.S.’s food supply (40 million tons of food) is wasted every year. For all the tokenization of King we find in America’s political circus, we can say that after 55 years since his state-sanctioned death, America has still not listened, and much less realized, the demands of Dr. King. However, China has!

Likewise, Dewey, perhaps the most prominent philosopher America has produced, felt that to carry forth today the democratic creed of the declaration of independence, we must deepen our understanding and practice of democracy. A mode of life where the same small group of monopolists owns most of the property, controls most of the media, and decides who gets elected and what they do when elected, can hardly be called democratic. For Dewey, we are not living up to the democratic creed if ‘democracy’ only matters every two to four years when elections come about and working people are bombarded with reasons why they should vote for one puppet of the ruling class over another. Dewey would wholeheartedly agree with Xi Jinping in asserting that ‘democracy is not an ornament to be used for decoration; it is to be used to solve the problems that the people want to solve.’ As Xi has noted,​

If the people are awakened only at the time of voting and go into dormancy afterward; if the people only listen to smashing slogans during election campaigns but have no say afterward; if the people are only favored during canvassing but are left out after the election, such a democracy is not a true democracy.

​One could see words like these coming out of the mouths of a John Dewey or a Martin Luther King Jr. These ideas governing China’s socialist whole-process people’s democracy should seem anything but foreign to Americans – it is what our leading democratic theorists hoped the US system would develop into. If Americans are faithful to the democratic creed of the declaration of independence, and to the leading theorists of our country who’ve developed these into notions of socialist democracy with American characteristics, then we should be praising China for how incredibly comprehensive their socialist democracy (which is still humbly considered a work-in-progress) is. Far from thinking about democracy in the reductive, election-only sense, China’s system of socialist democracy is embedded in ‘seven integrated structures or institutional forms (体制tizhi): electoral democracy; consultative democracy; grassroots democracy; minority nationalities policy; rule of law; human rights; and leadership of the Communist Party.’ A comprehensive study of this whole-process people’s democracy would lead any unbiased researcher to the conclusion Roland Boer has (along with a plethora of Chinese scholars) arrived at: namely, that ‘China’s socialist democratic system is already quite mature and superior to any other democratic system.’

Not only does the US lack this seven-tiered democratic system, but even in the one realm it does have, namely, electoral democracy, the results it produces could hardly be called ‘democratic.’ For more than a decade studies from bourgeois institutions have themselves confirmed what Marxists have known since the middle of the 19th century, namely, that the essence of capitalist ‘democracy’ is ‘democracy for an insignificant minority –  democracy for the rich.’[11] The U.S., which spreads its blood soaked hands around the world plundering in the name of democracy, has been outed as a place where the dēmos (common people) do anything but rule (kratos). As a Princeton study headed by Martin Gilens and Benjamin I. Page shows,

In the United States, our findings indicate, the majority does not rule—at least not in the causal sense of actually determining policy outcomes. When a majority of citizens disagree with economic elites or with organized interests, they generally lose. Moreover, because of the strong status quo bias built into the U.S. political system, even when fairly large majorities of Americans favor policy change, they generally do not get it.[12]

​In societies divided by class antagonisms we can never talk about ‘pure democracy,’ or abstract democracy in general; we must always ask - as Lenin did - ‘democracy for which class’?[13] The ‘democracy’ and ‘democratic freedoms’ of capitalist to exploit and oppress will always be detrimental to working and oppressed peoples. Only an all-people’s democracy (a working and popular classes democratic-dictatorship) can be genuinely democratic, for it is the only time ‘power’ (kratos) is actually in the hands of ‘common people’ (demos).

To claim – as American capitalists, their puppet politicians, and their lapdog media does – that the US is a ‘beacon of democracy,’ and China an ‘authoritarian one-party system,’ is to hold on to a delusional topsy turvy view of reality. Only by holding explicitly the idea of democracy as democracy for the rich – an oxymoronic truth which they must continue to conceal from the American public – would any part of their assessment contain truth. If democracy is considered from the standpoint of the capitalist’s ability to arbitrarily exert their will on society at the expense of working people and the planet, then, of course, the US is a beacon of this form of so-called ‘democracy,’ and China an ‘authoritarian’ regime. If instead, democracy is considered from the standpoint of common people’s ability to exert their power successfully over everyday affairs, that is, if democracy is understood in the people-centered form it etymologically stands for, and in the way leading American thinkers like Jefferson, Dewey, and Dr. King understood it, then it would be indubitable that China is far more democratic than the US (and any other liberal-bourgeois ‘democracy’).

As the US increases its anti-China rhetoric and actions – a symptom of its empire’s moribund stage – it becomes an imperative for all sane people to counter the propaganda setting the stage for, at best, a new cold war, and at worst, a third world-war. As Julian Assange – whose treatment reminds us everyday of how much the West cherishes its so called ‘individual rights’ to speech and press – once eloquently stated: ‘if wars can be started by lies, peace can be started by truth.’

It is the duty of American communists, socialists, and progressives, to show the American people the truth; to show them that China is not the enemy of the American people, that the real enemy of the American people are those who would like us to see China as an enemy. It is not China who has our country surrounded by military bases. It is not China who is funding and inciting separatist movements in our autonomous regions. It is not China who is slandering us with baseless accusations of the most heinous crimes of genocide humanity can imagine. It is not China who is creating international military alliances a la global NATO to militarily threaten us. It is the US empire who is doing this to China. The only interests which China threatens are those of our finance capitalists, who have spent the last century impoverishing both our people at home and our brothers and sisters in the global south. China is a friend of the American working men and women; just like it is a friend of the African peoples, and the peoples in the Middle East and in Latin America, whose win-win, mutually beneficial relations in international trade with China have afforded them the ability to turn away from predatory neoliberal debt-trapping loans which have been systematically forced on them for half a century by the capitalist West.

In sum – to be faithful to the democratic creed of the declaration of independence and of the greatest minds our country has produced, we must realize today that China is not our enemy; instead, it is the place wherein the ideals which guide this democratic creed are best embodied. Instead of buying into the easily confuted lies of Western pundits, who hope we are foolish enough to accept them and dance to the drums of a war to sustain Western capitalist-imperialist hegemony, we must learn from China and work together to build a peaceful, cooperative, and ecological shared future for mankind.

References

[1] Herbert Aptheker, The American Revolution: 1763-1783 (New York: International Publishers, 1960), 105.

[2] John Dewey, The Collected Works of John Dewey, 1882-1953, ed. by Jo Ann Boydston (Carbondale and Edwardsville: Southern Illinois University Press, 1967-1990), LW 14:228.

[3] Dewey, LW 6:163.

[4] Dewey, LW 11:28.

[5] Dewey, LW 11:28.

[6] Martin Luther King Jr, The Radical King, ed. and introduced by Cornel West (Boston: Beacon Press, 2015), 246- 247. 248.

[7] King Jr, The Radical King, 236.

[8] King Jr, The Radical King, 248.

[9] King Jr, The Radical King, xi.

[10] King Jr, The Radical King, xiii.

[11] V. I. Lenin, Collected Works Vol. 26 (Moscow: Progress Publishers, 1977) 465. 

[12] Gilens, M., & Page, B. (2014). Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens. Perspectives on Politics, 12(3), 564-581. doi:10.1017/S1537592714001595

[13] V. I. Lenin, Collected Works Vol. 28 (Moscow: Progress Publishers,1974), 249.

Carlos L. Garrido is a Cuban American PhD student and instructor in philosophy at Southern Illinois University, Carbondale (with an M.A. in philosophy from the same institution). His research focuses include Marxism, Hegel, early 19th century American socialism, and socialism with Chinese characteristics. He is an editor in Midwestern Marx Institute for Marxist Theory and Political Analysis and in the Journal of American Socialist Studies. Carlos edited and introduced Marxism and the Dialectical Materialist Worldview: An Anthology of Classical Marxist Texts on Dialectical Materialism (Midwestern Marx Publishing Press, 2022). 

In Brazil's Class War, Will Lula Fight Back?

[Photo credit: Pedro Vilela/Getty Images]

By Bernardo Jurema

It’s not an exaggeration to say that, with Lula da Silva's razor-thin victory over incumbent President Jair Bolsonaro, Brazil dodged a bullet. As it has in other countries like Hungary or India, another term of far-right rule would have meant a more reactionary police and military, accelerated environmental destruction, further evisceration of individual rights, and a serious blow to the prospects for restoring democracy. It’s also fair to say that the world dodged a bullet, given the Bolsonaro government's fervent support for mining and other extractive activities that threaten the Amazon rainforest, a crucial link in the global climate system. 

Although the final result was very close, with Lula at 50.9% and Bolsonaro at 49.1%, Lula won by a large margin among the poorest segments of the population. The former president carried 977 of the 1,003 least developed cities. And a poll right before the second round of voting showed Lula winning the lowest income bracket with 61% to Bolsonaro’s 33%.

Lula shied away from presenting a clear economic program during the campaign, explaining that “we don’t discuss economic policies before winning the elections.” He made vague promises to increase public spending, with a focus on infrastructure and social welfare. His main pledges were directed toward the segment of society that supported him most heavily. Lula called for removing Brazil from the Hunger Map, increasing the minimum wage, boosting employment, and improving access to healthcare. 

The challenges Lula now faces cannot be overestimated. He will take office on January 1st, 2023 under circumstances remarkably different from those of twenty years ago when he began his first term. With a global recession on the horizon, interest rates are on the rise worldwide and Brazil's largest trading partner, China, has seen its demand for commodities subside. On top of that, the outgoing Bolsonaro leaves in his wake "shaky public finances, with debt projected to reach almost 89 per cent of gross domestic product next year, and an economy forecast to slow sharply."

How will Lula address this poor state of affairs? A cursory look at his economic transition team raises some red flags. The team was led by Vice President-elect Geraldo Alckmin, a former rival of Lula’s Workers' Party, who is socially conservative, economically liberal, pro-police, and anti-labor. He was handpicked by Lula in a clear nod to Faria Lima (Brazil’s Wall Street), signaling to the market and conservative voters that "there would be no radical economic measures." As Glenn Greenwald noted in 2018, "For the powerful, it is impossible to dream of a better guardian of the status quo [than Alckmin].” 

Other members of the transition team included André Lara Resende, who headed Brazil's public investment bank under the center-right government of Fernando Henrique Cardoso. Resende infamously played a key role in repressing the 1995 oil workers' strike. He served on the transition team alongside Pérsio Árida, a longtime economic advisor to Alckmin who, in 2018, supported then-President Michel Temer’s radical neoliberal government. Árida has publicly opposed taxing large fortunes, instead backing privatization and neoliberal reform efforts. 

These neoliberals were counterbalanced in the transition team by members of a  "developmentalist" profile, who favor state planning and expanding public spending. Guilherme Mello, a professor at the University of Campinas Institute of Economics (known as the main intellectual hub of dissent against neoliberal orthodoxy), was one of them. Mello has since been appointed as the new Secretary of Economic Policy at the Ministry of Finance. Another developmentalist member of the transition team was Nelson Barbosa, who served as Minister of Finance from the end of 2015 into the first months of 2016 under the Rousseff government.

Most members of the transition team will not go on to become ministers or even occupy government posts. But the team nonetheless helped set the terms of political possibility, offering a choice between neoliberalism and developmentalism. While such a choice is hardly auspicious in the face of the climate crisis, Brazilians can at least be cautiously optimistic that developmentalists in the administration will pursue redistributive policies. 

Thanks to an historic commodities boom, redistribution efforts during Lula’s first two terms in office passed with relatively little friction. But what if the extractivist pie stops growing? These days, any redistributionist policies will almost certainly require some degree of confrontation. From the transition team, there is no clear vision of what must be done in terms of economic policy. As Roberto Andrés, an urban planner at the Federal University of Minas Gerais, has rightly pointed out:

There will hardly be a favorable economic scenario for a new stage of inclusion without class struggle. It will be necessary to take from the richest to raise the level of the poorest. A tax reform that corrects the unfair Brazilian taxation may be the first step. To do so, the new government will have to face the dissatisfaction of the privileged classes, who will lose income. If it fails to do so, it runs the risk of not delivering the improvements it promises to the poorest."

On December 9th, Lula announced Fernando Haddad as his finance minister. Haddad previously served as Lula’s Minister of Education from 2005 to 2012. In that role, Haddad’s signature achievement was the PROUNI program, which expanded scholarship opportunities for poor students. This policy is a microcosm of Haddad’s conciliatory politics. While PROUNI helped disadvantaged pupils access higher education, the influx of government money was a major boon to private universities. 

For his second stint in a Lula administration, Haddad looks set to continue placating private interests. Recent comments suggest he’s open to privatizing airports and highways, saying that public-private partnerships “have to get on the agenda.” Despite this pro-business rhetoric, the markets reacted negatively to Haddad’s appointment. As one financial analyst explained, worries abound that Haddad will work to expand public spending and increase the national debt. In an attempt to quell these fears, Haddad recounted his time as Mayor of São Paulo, during which he reduced municipal debt and strengthened the bond market.

The new finance minister’s agenda appears syncretic, embracing the full spectrum of beliefs found in the transition team, from mild center-left Keynesianism to hardcore neoliberalism. Similarly mixed are the plans of Bernard Appy, the new special secretary for tax reform. While Appy seeks commonsense adjustments to Brazil’s notoriously anti-poor tax structure, his fixation on taxing consumption promises to preserve substantial regressivity.

There are also concerns to be had about Gabriel Galípolo, who will serve as the executive secretary of Lula’s economic ministry. Previously a professor at the Federal University of Rio de Janeiro, Galípolo is close with corporate interests. In the past year, he has served as a mediator between the Workers’ Party and big business.

Galípolo won’t be alone in representing the financial sector within Lula’s economic ministry. O Globo, a Brazilian daily newspaper, reports that “at least one more member of Faria Lima” will receive an appointment. A countervailing influence, however, takes the form of Aloízio Mercadante. A close Lula ally and noted center-left Keynesian, Mercadante has been nominated to chair the National Bank for Economic and Social Development, a key instrument for long-term financial planning.

In addition to internal ideological disputes, the incoming Lula administration also faces external constraints. As journalist Diego Viana explains, the government will be “under siege by the Right, who are ready to pounce at the first sign of weakness.” This leaves little room for radical experimentation. It is mostly likely, Viana says, that the administration will “insert some distributive policies within an essentially traditional political economy.”

Seeking compromise has been a Lula trademark ever since his days as a union organizer in the 1970s. With Brazil now at a crossroads, it remains to be seen how much longer this balancing act can persist. Given the combination of the climate crisis, the rise of the far Right, and a looming global recession, only bold action is commensurate with the urgency of the moment. But that not only goes against Lula’s realpolitik penchant; it also would not be consonant with the balance of power, whereby the reactionary forces of agribusiness and finance are very strong, while working-class social movements find themselves demobilized, demoralized, and under constant attack.

Such a context calls for measured and realistic goal-setting. According to Viana, “What Lula needs to deliver, first and foremost, is to not be succeeded by another fascist like Bolsonaro. In addition, the coalition that elected Lula expects stability in employment, prices, and exchange rates. That can be achieved. But is it enough to obtain the most important outcome?”

Maybe not. But, to paraphrase Peggy Lee, that's all there is for today. 


Bernardo Jurema is a Brazilian political scientist based in Germany. He earned his PhD from the Free University of Berlin and has worked for international organizations and think tanks throughout Latin America and Europe.

On Income and Wealth Inequality in Capitalism's Neoliberal Stage

By Prabhat Patnaik

The fact that income and wealth inequalities have increased quite dramatically under the neo-liberal regime is beyond dispute. The empirical work by Piketty’s team bears out the increase in income inequality. They use income tax data to infer about the share of the top 1 per cent of the population of a country in its national income. One may raise objections to this method of estimation, but the conclusions are so overwhelming that one can scarcely quarrel with them. In India’s case for instance Piketty and Chancel find that the top 1 per cent which accounted for just 6 per cent of national income in 1982 increased its share to over 22 per cent in 2013 and a similar figure in 2014, the latest year for which they have estimates. In fact the share in 2013 was the highest it has ever been since income tax was introduced in India in 1922.

Piketty’s theoretical explanation for such increases in income inequality however is totally untenable, as it is based on the presumption that a capitalist economy always operates at full employment, which is not only empirically false but also logically flawed, for in such a case the system would lack any disciplining device without which production cannot occur under it. One does not have to go far however to find a proper theoretical explanation for the increase in income inequality: the removal of all constraints on technological-cum-structural change under a neo-liberal economy increases the rate of growth of labour productivity to a level where, notwithstanding whatever increase occurs in GDP growth, the rate of growth of employment falls compared to earlier and also falls below the natural rate of growth of the work-force, so that the relative size of the labour reserves in the work-force increases; this keeps the real wage rate tied to a subsistence level even as the rise in labour productivity growth increases the share of surplus in total output, and hence the level of income inequality. Piketty’s findings about an increase in personal income inequality are rooted in this increase in class income inequality that neo-liberalism entails (see also Economic Notes in People’s Democracy December 8).

Likewise there has been a dramatic increase in wealth inequality under neo-liberalism at least in the countries of the global south. Between 2000 and 2021, according to Credit Suisse data, wealth inequality increased even in the United States; but this increase was less pronounced than the increase in countries like India and Brazil. True, wealth inequality estimates are always somewhat dicey, since they are influenced by stock market fluctuations. In a period of stock market boom not only does the estimate of total wealth gets artificially inflated even when there has been no change in the physical stock of assets; but, since the rich are much more active in the stock market, their share in wealth also goes up, showing an increase in wealth inequality which gets reversed in a period of stock market collapse. Even so however when India shows an increase in the share of the top 1 per cent in total wealth from around 32 per cent in 2000 to 40.6 per cent in 2021, and when Brazil shows an increase from around 43 per cent in 2000 to 49.3 per cent in 2021, this increase cannot be explained by any evanescent accrual of capital gains to the top 1 per cent of the population. There are clearly more fundamental factors at work.

One such fundamental factor is the rise in income inequality itself that is rooted in the rise in the share of economic surplus in output. If we leave aside the accrual of transitory capital gains, any rise in wealth occurs through savings. This may at first sight appear odd: it may be thought that the rise in wealth would occur only through investment in physical assets; but saving may occur, and hence a rise in wealth, even when there is no investment in a country during a particular period, if it lends these savings abroad, that is, increase its wealth in the form of claims on another country. When the share of the rich in national income rises, since the rich save a higher proportion of the income accruing to them than the poor, their share in the total savings of the country rises even faster. This means that the share of the rich at the margin in the increase in a country’s wealth rises compared to what it had originally been, which means that their share in a country’s total wealth increases. A rise in income inequality in other words ipso facto entails a rise in wealth inequality.

A second factor works in the same direction, and that is what Marx had called “centralisation of capital”. Because of technological-cum-structural change, business shifts over time from small capital to big capital. This happens because new processes and products become available over time which require a growing minimum size of capital for their introduction and which therefore can only be introduced by big capital and not small capital, leading over time to a shift of business from the latter to the former. This shift has exactly the same effect as the rise in the share of economic surplus in total output discussed above: with the shift of business there is also a shift in the distribution of profits from small to big capital (that is, if small capital at all remains in business and is not totally eliminated in which case its entire profits are captured by big capital); since the proportion of savings out of profits is higher for big capital than for small capital, this raises the share of savings in output and also the share of the top 1 per cent within total savings and hence at the margin in total wealth. Wealth concentration therefore is simply implicit in the process of centralisation of capital.

So far we have been talking of changes in wealth concentration at the margin through changes in the distribution of savings. It may be asked: what if investment falls short of savings at the base level of capacity utilisation so that there is a realisation problem? But if there is a realisation problem, i.e., if there is insufficient demand when output is produced at the base level of capacity utilisation, then the realised savings will be lower than the savings that would have been generated from output at the base level of capacity utilisation; but its distribution across classes, i.e., between petty producers and the big capitalists, or between small capitalistsand big capitalists, will remain the same as if all of it was being realised. The tendency towards wealth concentration therefore would remain unaffected by whether or not there is a realisation problem.

A third factor works towards making wealth distribution more unequal, in addition to the two we have mentioned till now. And that is what Marx had called primitive accumulation of capital, which covers not only cases where land is acquired from peasants gratis or at throwaway prices by big capital, but also cases where any land acquired at the then prevailing market price increases in value when industrial units are set up on them or townships are built upon them. This case of an increase in the price of land may at first sight be thought of as being identical with capital gains made on the stock market; but there is a basic difference: while stock market booms may collapse reversing the capital gains, land prices have generally only an upward movement. The acquisition of land even in such cases therefore has to be seen as primitive accumulation, since the peasants are paid a price way below the now-prevailing market price of land (that enters into the calculation of wealth).

The numerous ways that public resources are transferred gratis into the pockets of big capitalists are these days an important source of primitive accumulation of capital. This is done in the name of providing incentives for promoting growth, which is supposed to benefit everyone. But quite apart from such open ways of effecting increasing wealth inequality, big capital also engages in various forms of skulduggery for this purpose. There are instances of communal riots being engineered so as to evict people from their land that is then acquired at a throwaway price by big capital not necessarily directly but at some remove.

All these ways of deliberately effecting an increase in wealth inequality get a fillip in the period of neo-liberalism. All objections to them are brushed aside by the neo-liberal apotheosis of private expropriation as benefitting everyone, while simultaneously vilifying public enterprise.

Prabhat Patnaik is an Indian political economist and political commentator. His books include Accumulation and Stability Under Capitalism (1997), The Value of Money (2009), and Re-envisioning Socialism (2011).

Women, Birth, and Labor: An Introduction to Social Reproduction Theory

[Painting: Detail from Jean-François Millet, Des glaneuses, 1857. via Wikimedia Commons.]

By Tithi Bhattacharya

This essay was first published in Social Reproduction Theory: Remapping Class, Recentering Oppression (Pluto Press), to which it forms the introduction. Edited by Tithi Bhattacharya, Social Reproduction Theory brings together essays by Lise Vogel, Nancy Fraser, David McNally, Susan Ferguson, Cinzia Arruzza, and Salar Mohandesi and Emma Teitelman, among others, that reveal the ways in which daily and generational reproductive labour, found in households, schools, hospitals and prisons, also sustains the drive for accumulation.

Life itself appears only as a means to life.

—Karl Marx, Economic and Philosophical Manuscripts of 1844

A working woman comes home from work after an eight hour day, eats dinner in 8 to 10 minutes, and once again faces a load of physical work: washing linens, cleaning up, etc. There are no limits to housework . . . [a woman is] charwoman, cook, dressmaker, launderer, nurse, caring mother, and attentive wife. And how much time it takes to go to the store and drag home dinner!

—testimonies of factory women in Moscow, 1926

This [unpaid care work] is the type of work where we do not earn money but do not have free time either. Our work is not seen but we are not free as well.

—woman in Patharkot, Nepal, 2013

If our kitchens are outside of capital, our struggle to destroy them will never succeed in causing capital to fall.

—Silvia Federici, Revolution at Point Zero: Housework, Reproduction and Feminist Struggle

Let us slightly modify the question “who teaches the teacher?” and ask this of Marxism: If workers’ labor produces all the wealth in society, who then produces the worker? Put another way: What kinds of processes enable the worker to arrive at the doors of her place of work every day so that she can produce the wealth of society? What role did breakfast play in her work-readiness? What about a good night’s sleep? We get into even murkier waters if we extend the questions to include processes lying outside this worker’s household. Does the education she received at school also not “produce” her, in that it makes her employable? What about the public transportation system that helped bring her to work, or the public parks and libraries that provide recreation so that she can be regenerated, again, to be able to come to work?

The goal of social reproduction theory (SRT) is to explore and provide answers to questions such as these. In doing so, SRT displays an analytical irreverence to “visible facts” and privileges “process” instead. It is an approach that is not content to accept what seems like a visible, finished entity — in this case, our worker at the gates of her workplace — but interrogates the complex network of social processes and human relations that produces the conditions of existence for that entity. As in much of critical theory, here too we “build from Marx,” for both this approach and the critical interrogation mirror the method by which Marx studies the commodity.

The fundamental insight of SRT is, simply put, that human labor is at the heart of creating or reproducing society as a whole. The notion of labor is conceived here in the original sense in which Karl Marx meant it, as “the first premise of all human history” — one that, ironically, he himself failed to develop fully. Capitalism, however, acknowledges productive labor for the market as the sole form of legitimate “work,” while the tremendous amount of familial as well as communitarian work that goes on to sustain and reproduce the worker, or more specifically her labor power, is naturalized into nonexistence. Against this, social reproduction theorists perceive the relation between labor dispensed to produce commodities and labor dispensed to produce people as part of the systemic totality of capitalism. The framework thus seeks to make visible labor and work that are analytically hidden by classical economists and politically denied by policy makers.

SRT develops upon the traditional understanding of both Marxism and capitalism in two transformative ways.

First, it proposes a commodious but more specific reading of the “economy.” SRT, as Susan Ferguson has recently pointed out,

insists that our understanding of capitalism is incomplete if we treat it as simply an economic system involving workers and owners, and fail to examine the ways in which wider social reproduction of the system—that is the daily and generational reproductive labor that occurs in households, schools, hospitals, prisons, and so on—sustains the drive for accumulation.1

Marx clearly marks for us the pivotal role played by labor power, for it is that which in effect sets the capitalist production process in motion. He also indicates how, unlike all other commodities under capitalism, the “unique” commodity labor power is singular in the sense that it is not produced capitalistically. The implications of this insight are, however, underdeveloped in Marx. Social reproduction theorists begin with these silences in Marxism and show how the “production of goods and services and the production of life are part of one integrated process,” as Meg Luxton has put it. 2 If the formal economy is the production site for goods and services, the people who produce such things are themselves produced outside the ambit of the formal economy, in a “kin-based” site called the family.

Second, and following from above, SRT treats questions of oppression (gender, race, sexuality) in distinctly nonfunctionalist ways precisely because oppression is theorized as structurally relational to, and hence shaped by, capitalist production rather than on the margins of analysis or as add-ons to a deeper and more vital economic process.

The essays in this volume thus explore questions of who constitutes the global working class today in all its chaotic, multiethnic, multigendered, differently abled subjectivity: what it means to bind class struggle theoretically to the point of production alone, without considering the myriad social relations extending between workplaces, homes, schools, hospitals — a wider social whole, sustained and coproduced by human labor in contradictory yet constitutive ways. Most importantly, they address the relationship between exploitation (normally tethered to class) and oppression (normally understood through gender, race, etc.) and reflect on whether this division adequately expresses the complications of an abstract level of analysis where we forge our conceptual equipment, and a concrete level of analysis, i.e., the historical reality where we apply those tools.

Renewing Social Reproduction Theory in the Shadow of Neoliberalism

Since the financial crisis of 2008 and 2009 and exacerbated by the government bailouts of those who perpetrated the crisis, there has emerged a renewed interest in Marx and Marxism. Major news sources of the Global North, from the New York Times to the Guardian and even to the conservative Foreign Policy have declared that Marx, without a doubt, “is back.” 3

Within this generalized interest, there has been a revival of more specific attention to Marx’s Capital. Even aside from Thomas Piketty’s 700-page Capital in the Twenty-First Century becoming a runaway bestseller, the period following 2008 has seen an unprecedented rise in scholarly publications on Marx’s seminal text. 4

While this is an unqualifiedly welcome development, there remains room — indeed, an urgency — to redraw the contours of some of these conversations about Capital in particular and its object of study, capitalism, in general. This book is an attempt to begin that process by highlighting the critical contribution of SRT to an understanding of capitalist social relations.

There is a limited but rich literature by Marxists and feminists across disciplinary boundaries which has, since the 1980s, developed the insights of the social reproduction framework in very productive directions. 5 The republication in 2014 of Lise Vogel’s classic work Marxism and the Oppression of Women: Toward a Unitary Theory has given a new lease of life to this growing body of scholarship. While this literature embodies instantiations of SRT in a range of critical areas, there remains a need for a text that can act as a map and guide to this vivid and resonant body of work. Indeed, it is precisely because social reproduction scholars have so effectively applied and extended its theoretical insights to a diverse set of concerns in such creative ways that it is useful to compile and outline its key theoretical components along with its most significant historical applications.

That said, this volume stands in a very specific relationship to the recent literature on oppression. We see our work as furthering the theoretical conversation with this existing body of scholarship in two kinds of ways: (a) as a conversation between Marxism and the study of specific oppressions such as gender and race, and (b) as developing a richer way of understanding how Marxism, as a body of thought, can address the relationship between theory and empirical studies of oppression.

Let me elaborate. We make two central proposals in this volume about SRT: first, that it is a methodology to explore labor and labor power under capitalism and is best suited to offer a rich and variegated map of capital as a social relation; further, that this is a methodology that privileges process, or, to use Lukács’s words, we believe that the “developing tendencies of history constitute a higher reality than the empirical ‘facts.’” 6

Many recent studies similarly grapple with elaborating on these. Cinzia Arruzza, in her book Dangerous Liaisons (2013), offers a summary of the historic relationship between Marxism and feminism and tries to plot precisely where the tributaries of analysis about the system as a whole (capitalism) meet or diverge from analyses of categories produced by the system (gender and/or race). Arruzza’s work refuses the reduction of this complex dynamic to a simple question of “whether class comes before gender or gender before class,” but points the way toward thinking about how “gender and class intertwine in capitalist production.” 7

Similarly, Shahrzad Mojab, in her recently edited volume Marxism and Feminism (2015), alerts us to the actual dangers of theoretically severing the integrated relationship between class and gender. Contributors to Mojab’s volume show how decoupling feminism from capitalism carries the twin perils of emptying out the revolutionary content of feminism which “reduces gender to questions of culture” and of “reduc[ing] gender to class relations.” 8

A slightly older edited volume by Nancy Holmstrom (2002) likewise takes a integrative approach to the relationship between the oppression and the source of oppressions: capitalism. Holmstrom clarifies that although Marxism’s “basic theory” does not require “significant revision,” it does need to be “supplemented.” The volume thus seeks to champion a specific deployment of historical materialism that “gives a fuller picture of production and reproduction than Marx’s political economic theory does, that extends questions of democracy not only to the economy but to personal relations.” 9

Kate Benzanson and Meg Luxton’s edited collection Social Reproduction (2006) is perhaps the closest theoretical kin to our project. This is not solely because Benzanson and Luxton deal explicitly with SRT, but because they restore to it a “thick” description of the “economy” and “political process.” The volume is premised upon the understanding that “in capitalist societies the majority of people subsist by combining paid employment and unpaid domestic labor to maintain themselves . . . [hence] this version of social reproduction analyzes the ways in which both labors are part of the same socio-economic process.” 10

While Benzanson and Luxton problematize the concept of labor and the role it plays in the constitution and disruption of capitalism, Kathi Weeks (2011) has usefully drawn our attention to the most common articulation of labor under capitalism, namely, work. Weeks’s approach coincides with our own in that it is dissatisfied with efforts to align “work” with “a more equitable distribution of its rewards” — in other words, to think about how our working lives might be improved. Instead, Weeks points to the fundamental incommensurability of capitalism with any productive or creative sense of work. Hence her volume urges us to think about how the right to work and the right of refusal to work can be reimagined under the sign of an anticapitalist political theory.

This brings us to how this volume, while in conversation with the above scholarship, is nonetheless about developing a set of theoretical concerns that are related but different. The contributing essays of the volume can be said, broadly, to do three kinds of work: determining the definitional contours of SRT, using SRT to develop and deepen Marxist theory, and exploring the strategic implications of applying SRT to our current conjuncture. It is to an elaboration of those themes that we now turn.

Mapping Social Reproduction Theory: The Work of Definitions

All the essays in this volume are in some way engaged in the task of sketching out the contours of what exactly social reproduction theory is and what kinds of questions it seeks to answer.

In Marx’s own writing, the term social reproduction is most often deployed to refer to the reproduction of the capitalist system as a whole. Johanna Brenner and Barbara Laslett therefore suggest a useful distinction between societal and social reproduction, with the former retaining the original meaning as Marx has used it, and the latter referring to

the activities and attitudes, behaviors and emotions, and responsibilities and relationships directly involved in maintaining life, on a daily basis and intergenerationally. It involves various kinds of socially necessary work—mental, physical, and emotional—aimed at providing the historically and socially, as well as biologically, defined means for maintaining and reproducing population. Among other things, social reproduction includes how food, clothing, and shelter are made available for immediate consumption, how the maintenance and socialization of children is accomplished, how care of the elderly and infirm is provided, and how sexuality is socially constructed. 11

The primary problematic of what is meant by the social reproduction of labor power is, however, only a preliminary start to this definitional project. Simply put, while labor puts the system of capitalist production in motion, SRT points out that labor power itself is the sole commodity — the “unique commodity,” as Marx calls it — that is produced outside of the circuit of commodity production. But this status of labor power as a commodity that is simultaneously produced outside the “normal” productive cycle of other commodities raises more questions than it answers. For instance, Marx is very clear that every commodity under capitalism has two manifestations: one as use value, the other as exchange value. Indeed, when the commodity appears in its social form we only encounter it in its second manifestation because the capitalist circulation process, through an act of “necromancy,” turns use value into its direct opposite. But labor power becomes a “commodity” (that is, it becomes something that is not simply endowed with use value) without going through the same process of “necromancy” as other commodities, which raises a question about the very ontology of labor power beyond the simple questions of its “production” and “reproduction.” If the totality of the capitalist system is shot through with this “commodity” that is not produced in the manner of other commodities, what then are the points of determination and/or contradictions that must necessarily be constitutive of the system, yet must be overcome within it?

One way of resolving this problem is through a spatial understanding: that there are two separate but conjoined spaces — spaces of production of value (points of production) and spaces for reproduction of labor power. But then, as we gestured above, labor power is not simply replenished at home, nor is it always reproduced generationally. The family may form the site of individual renewal of labor power, but that alone does not explain “the conditions under which, and . . . the habits and degree of comfort in which” the working class of any particular society has been produced. 12 Public education and health care systems, leisure facilities in the community, and pensions and benefits for the elderly all compose together those historically determined “habits.” Similarly, generational replacement through childbirth in the kin-based family unit, although predominant, is not the only way a labor force may be replaced. Slavery and immigration are two of the most common ways capital has replaced labor in a bounded society.

The complex concatenation of social relations making up the reproduction of labor power has led some theorists to define social reproduction to include “the processes necessary for the reproduction of the workforce, both biologically and as compliant wage workers.” 13

How can labor be made “compliant”? Relatedly, if labor power is a “unique” commodity in the sense of being produced noncapitalistically, then does that countervailing fact work against the manufacture of compliance? Susan Ferguson’s essay in this volume seeks to explore the dynamic, often contested relationship between capital and childhood. Ferguson takes us beyond the trope of consumerism under which capitalist childhoods are most often studied. Instead, she asks a more difficult question: “What exactly are capitalist productive relations? And how are children implicated in them?” (Emphasis mine.) While she argues that “capitalist productive relations determine the terrain upon which children and childhoods are produced and reproduced,” Ferguson avoids any functionalist correlation between capital’s vision of/need for children as pre-workers and the actual historical delineation of childhood. Instead, the essay illuminates the “deeply contradictory relationship between the social reproduction of children and childhoods, on the one hand, and the continued thriving and expansion of capital, on the other.” Like Walter Benjamin in his Berlin Childhood, Ferguson urges us to reconsider the child as a liminal, ambiguous figure, one capable of both compliance with capital and collusion with chthonic revolutionary energies.

If under capitalism the child will always be a figuration of what could be, then the retired worker is perhaps, in capitalist terms, the termination of all possibilities. But a social reproduction framework that extends analysis beyond both wage labor and spaces of production suggests a more robust understanding of human labor. Serap Saritas Oran’s essay in this volume hence theorizes pensions as “not simply deferred wages or individual savings” but “from a political economy perspective.” Oran’s essay reframes the question of what constitutes labor power: is it composed of a set of use values represented by the labor time necessary for its production, or can we determine its value through its exchange value, or wage? She locates a lacuna in both approaches, for they fail to adequately theorize those goods and services that have “use value but not exchange value, such as reproductive household activities or state services” such as pensions. Since pensions are not necessarily commodities, nor do they correspond neatly with labor time; they cannot be considered the direct equivalent of an individual worker’s labor power during the worker’s work life. Oran thus urges us to look at pensions as “a component of the broader understanding of the value of labor power as a standard of living for the working class that consists of the payments and benefits necessary for generational social reproduction.”

Theorizing pensions is one way to reveal the superficial nature of the neat spatial divisions between production (public) and reproduction (private), for the two separate spaces — spaces of production of value (point of production) and spaces for reproduction of labor power — while they may be separate in a strictly spatial sense are actually united in both the theoretical and operational senses. They are particular historical forms of appearance in which capitalism as a process posits itself.

The question of separate spheres and why they are historical forms of appearance is an important one, and we will reflect upon it at length in this volume. One understanding of social reproduction is that it is about two separate spaces and two separate processes of production: the economic and the social — often understood as the workplace and home. In this understanding, the worker produces surplus value at work and hence is part of the production of the total wealth of society. At the end of the workday, because the worker is “free” under capitalism, capital must relinquish control over the process of regeneration of the worker and hence the reproduction of the workforce. The corpus of social relations involving regeneration — birth, death, social communication, and so on — is most commonly referred to in scholarly as well as policy literature as care or social care.

If, as we propose, the spatial separation between production (public) and reproduction (private) is a historical form of appearance, then the labor that is dispensed in both spheres must also be theorized integratively.

The classical Marxist example that outlines the relationship between the two forms of labor is Marx’s discussion of the working day. The reduction of the working day (time of production), for Marx, is the first step toward humanity developing any rudimentary notion of freedom or its own human potential. In the third volume of Capital he argues that “the realm of freedom really begins only where labor determined by necessity and external expediency ends... . . . the reduction of the working day is the basic prerequisite.” 14 Thus Marx famously describes the effects of alienation in the productive sphere, as “the worker . . . only feels himself outside his work, and in his work feels outside himself. He is at home when he is not working, and when he is working he is not at home.”

Some scholars have gone as far as to claim that concrete labor, as opposed to abstract labor, is nonalienated labor, as it is not producing for profit or exchange. 15 This sort of interpretation conflates the relationship between “work” and “leisure” in commonsensical terms with abstract and concrete labor in Marxist terms. For example, I may garden in my own yard during the weekend (concrete labor) and work at Starbucks during the week (abstract labor). Is this gardening then nonalienated? A strong reading of Marx may suggest otherwise.

In my reading, along with the useful distinction between concrete and abstract labor, Marx is also proposing that our performance of concrete labor, too, is saturated/overdetermined by alienated social relations within whose overall matrix such labor must exist. Hence even my concrete labor (gardening) is not performed during and for a time of my own choosing or in forms that I can determine, but has to “fit in” with the temporal and objective necessities of other social relations. Indeed, if we go back to the epigraphs with which this essay begins, then it seems that the time after work (time of reproduction) is equally tedious. Lenin, usually not one to mince words, refers to the woman worker as a “domestic slave” precisely because “petty housework crushes, strangles, stultifies, and degrades her, chains her to the kitchen and the nursery, and she wastes her labor on barbarously unproductive, petty, nerve-wracking, stultifying and crushing drudgery.” 16 Was Marx then wrong, or simply sexist, to indicate this sphere as a point of departure for freedom?

It is certainly true that Marx reserves both his developed theorization and his rage against the form that labor assumes in the sphere of production. 17 But since under capitalism the wage-labor relation “suffuses the spaces of nonwaged everyday life,” the time of reproduction must necessarily respond to the structuring impulses of the time of production. Structuring impulse, however, is not simple correspondence, and it is important to highlight this point — for, while capitalism limits our horizon of possibilities in both spheres, it simultaneously does have to relinquish absolute control over the time of reproduction.

Marx recognizes this weak link of capitalism but, like many analytical categories of social reproduction, leaves it undertheorized. Consider his oft quoted statement about the bestiality of capitalist social relations. The worker, says Marx,

no longer feels himself to be freely active in any but his animal functions—eating, drinking, procreating, or at most in his dwelling and in dressing-up, etc.; and in his human functions he no longer feels himself to be anything but an animal. 18

Certainly, Marx recognizes that “eating, drinking, procreating, etc., are also genuine human functions.” But “in the abstraction which separates them from the sphere of all other human activity” these activities are turned into their “sole and ultimate ends”: that is, they come to seem purely biological and, in that, they can be likened to animal functions. That abstraction is the conditioning impulse of wage labor. But there is more to this passage, for note how Marx states that the worker does feel “freely active” in her time away from production. From this Bertell Ollman correctly summarizes:

Eating, drinking and procreating are occasions when all man’s powers may be fulfilled together; yet, in capitalism, they only serve their direct and most obvious functions as do their equivalents in the animal kingdom. Despite their depraved state, however, the individual exercises more choice in these activities than he does in those others, work in particular, which distinguish him as a human being. As unsatisfactory as eating and drinking are from a human point of view, the worker feels at least he is doing something he wants to do. The same cannot be said of his productive activity. 19 

Capitalism, then, generates a set of two distinct relations that are nevertheless unified: the particular relations that adhere to production and to reproduction. Ollman’s description of Marx’s method is of use to us in addressing this contradictory unity. Marx’s practice, says Ollman, “of seeing the whole in the part links all particular relations together as aspects in the full unfolding of any one of them.” 20

Much more theoretical attention needs to be paid to the relationship between the physical body in all its acts (such as “eating, drinking and procreating”) and the social relationships of capital that such a body finds itself in. Insights from queer theory are useful in this regard to draw out how far the social implicates the physical and vice versa. Alan Sears’s essay in this volume grapples with a particular aspect of the physical-social question. Sears perceptively imbricates the horizons of sexual freedom with freedom from capitalism, thus making one the condition of possibility for the other. The essay shows why sexuality under capitalism is always-already organized as a “paradoxical double freedom, in which control over one’s own body is always combined with forms of compulsion.” Contradictory impulses of the capital-labor relation shape and mirror body-consciousness expressions, such as sexuality. Sears roots the paradoxes of capitalist sexuality, the constant shadow dance between freedom and repression in a systemic contradiction:

Members of the working class are free in that they own their own bodies, yet are subjected to systemic compulsion because they must sell their capacity to work in order to gain access to the basic requirement for subsistence. The combination of consent and compulsion that underlies basic labor relations under capitalism also shapes the realities of sexual freedom within the bounds of that system.

Nancy Fraser’s essay similarly theorizes this constitutive and contradictory impulse that is indicative of capitalism as a system. While the neoliberal moment is marked by a crisis of social provisioning, Fraser challenges the notion that this is simply a “crisis of care” or a crisis of “the capacities available for birthing and raising children, caring for friends and family members, maintaining households and broader communities, and sustaining connections more generally.” Instead Fraser offers a much darker thesis that this is a generalized crisis of the system’s ability to reproduce itself, brought on by the depletion and decimation of social reproductive functions. The crises evidenced in care work, then, is “not accidental but have deep systemic roots in the structure of our social order.” They have been generated and accelerated by “unlimited accumulation” that “tends to destabilize the very processes of social reproduction on which it relies.” Fraser, like many other contributors to the volume, offers us a deeply gendered vision of capital, one in which the resolution to the crisis of care can only proceed by way of a resolution of the inherent injustice of the system as a whole and “requires reinventing the production/reproduction distinction and reimagining the gender order.”

This line of theorization about the nature of waged and unwaged labor also touches upon critical branches of feminist thought and activism, the most prominent of course being the wages-for-housework movement. Carmen Teeple Hopkins’s essay discusses the important contributions of scholar-activists such as Mariarosa Dalla Costa, Selma James, and Silvia Federici and addresses the theoretical challenge that autonomist feminists posed to the Marxist schema of social reproduction. 21

Teeple Hopkins’s study of immigrant domestic workers in Montreal adds another layer of theoretical questions to the complex issue of domestic labor. She argues that while we owe the autonomist feminists “a debt of gratitude” for their serious consideration of housework, we need to have a renewed conversation about the very category of “care” in an age where care is increasingly becoming commodified and sold on the market for a price. Here, Teeple Hopkins denaturalizes paid care work in two important ways. The first is by reminding us that such work takes very specific forms under the current conjuncture, in that it is mostly performed by “working-class women of color and migrant workers,” a fact that rightly locates “race and citizenship status” as central determinants of both societal and social reproduction. Second, her essay places the racialization process in its historical context of “unpaid labor of enslaved African American women during US slavery” and the “ paid domestic labor that many African American women performed in the post-slavery period,” thereby putting the “recognized social reproduction canon” in a productive dialogue with Black feminist writing.

One challenge to defining SRT is a more literal one. The content of this volume deals with issues (such as domestic labor and the informal economy) that have been addressed under theoretical rubrics other than social reproduction, such as anthropology, labor studies, and certain his- toriographic traditions, such as subaltern history. Should we continue to think of this tradition specifically as a social reproduction framework or should we think more broadly? This raises an important question that goes to the heart of what this theoretical tradition stands for as well as its scope.

Social reproduction theorists, who by no means represent a unified political or theoretical tradition, are generally concerned with one particular aspect of the reproduction of the capitalist production cycle as a whole. Marx famously concentrates on the cycle of production of commodities to show how surplus value is produced through this process of or production undertheorized (M – the C (Mp,Lp) – P – C' – M'). 22 He leaves undeveloped or undertheorized the production and reproduction of labor power. It is this part of the total reproduction of the system that is of concern to social reproduction theorists. In this sense, it is perhaps more accurate to think of this theoretical tradition as a series of reflections on the political economy of labor power, a recasting of the labor theory of value from the point of view of wage labor (as opposed to from the side of capital).

Nevertheless, I believe, social reproduction theory, as a term, still carries an important analytical charge to which we should be attentive. First, it is not simply an attempt to explore the relationship between social relations established through the market and extramarket social relations. It represents an effort to develop Marx’s labor theory of value in a specific direction. SRT is primarily concerned with understanding how categories of oppression (such as gender, race, and ableism) are coproduced in simultaneity with the production of surplus value. In this aspect, it seeks to overcome reductionist or deterministic representations of Marxism while at the same time creatively exposing the organic totality of capitalism as a system. It is important thus to retain the term social reproduction theory, as it declares its heritage to be within the Marxist tradition. Second, several new terms have been in circulation among social theorists to describe the sphere of extramarket relations. Moral economy, shadow economy, the social factory, and the unwaged work sector are among some of the terms employed. 23 SRT is unique in the sense that it theorizes the relationship between the market and extramarket relations rather than simply gesturing toward their distinction.

Mapping Social Reproduction Theory: Defending a Theory of Totality

Following from above, a basic element that troubles the relationship between market and nonmarket categories is surely the thorny problem of reality itself. For instance, the reality I can see tells me that the worker and her boss are fundamentally and juridically equal, and the difference in their wages or life situations are the consequence of personal choices. Similarly, a slightly darker version of the same reality tells me that, because white workers in the Global North typically earn more than workers of color, there can never be common grounds of struggle uniting them, as the very real, material, empirically documented difference between them will always fuel white racism. The same can be said about the real material differences between men and women. What is interesting about these very real situations is that to try to challenge them within the context set by capitalism — or capitalist reality — would have two consequences: either failure (for example, as in the numerous historical instances where sexism and/or racism overwhelm or choke the workers’ movement) or a political strategy that seeks to overcome such differences of race/gender between workers by moral appeals, asking people to “do the right thing” even if it is not in their immediate interest to do so: Even though the male worker earns more than his female counterpart, he ought to join in a struggle on her behalf because it is the right thing to do, even if it does not further his own interests.

In contrast to this vision of the world and politics, Marx argues that to try to act upon our world on the basis of an empirical or factual knowledge of reality, as it is perceived, involves a category mistake. Instead, he presents us with a more disconcerting idea: that the reality we perceive is only the partial truth, and that it appears to us in a particular, historically specific form. Capital concerns itself with demonstrating this “difference between everyday experience of the surface phenomena determined by the prevailing mode of production and a scientific analysis of which goes beneath this surface to grasp an essence.” 24 We thus need “science” to fully grasp the phenomena that remain hidden behind this appearance of the real. But as Ben Fine and Laurence Harris have reminded us, the hidden phenomena are not “simply there waiting to be found.” Indeed, it is the task of science to forge tools so as to produce “concepts appropriate to these hidden phenomena” and knowledge that explains how such phenomena give rise to and determine the specific appearance of reality. 25 To develop this further: What is the logic of the relationship between us (subjects) and empirically apprehended facts (objects)?

Empirical appearances, then, do not simply shroud some unspoiled “truth” or essence. There is, rather, a relationship between hidden phenomena and empirical appearance. “The question then becomes,” as Lukács puts it,

are the empirical facts — (it is immaterial whether they are purely “sensuous” or whether their sensuousness is only the ultimate material substratum of their “factual” essence) — to be taken as “given” or can this “givenness” be dissolved further into rational forms, i.e. can it be conceived as the product of “our” reason?

As far as SRT is concerned, we can draw two important conclusions from this discussion: first, that the way reality appears in all its racialized and gendered form is neither accidental nor complete; and second, that our tools to understand that reality can neither consist of a rejection of said empirical facts nor a simple aggregation of them. Instead, following Marx, we ought to think of reality or the “concrete” as “concrete because it is the concentration of many determinations, hence unity of the diverse.” David McNally’s essay approaches intersectionality theory from this understanding of a concrete totality to explore whether intersectionality is an adequate tool, or the science we need, to expose the hidden phenomena that shape our apprehension of reality and whether such a theory can explain the relationship between the diverse “real” elements that form a unified “concentration of many determinations.” While McNally acknowledges at the outset the “deep theoretical flaws” of intersectionality theory, his essay is particularly notable for its rejection of dualist (often pugilist) approaches to the problem. While many recent debates around the efficacy of intersectionality as a theoretical tool pit it against Marxism or SRT, this essay situates it analytically as a body of critical thought. For instance, to take just one example out of many, a left that ignores Patricia Hill Collins’s detailed study of postwar racism in the United States does so at the risk of its own impoverishment; Hill Collins draws a masterful picture of “globalization, transnationalism, and the growth of hegemonic ideologies within mass media [that] provide the context for a new racism that has catalyzed changes within African, Black American, and African-Diasporic societies.” 26 McNally thus begins by acknowledging the rich empirical work done by scholars of intersectionality that arose in response to inadequate scholarly attention to race as a central dynamic of capitalism.

But how should we situate these empirical data in our understanding of reality?

Martha Gimenez points out that Marx, in one of his rare methodological propositions, argues that if we started our investigations from aspects of social reality that seem to us the most concrete and real, like say, the family, then we would in fact be beginning with “a very vague notion of a complex whole.” Instead, Marx suggests that we produce knowledge about reality when we advance from such “imaginary concrete concepts” (the family, childcare, etc.) to “increasingly simple concepts” or abstractions (such as, for example, domestic labor). Such abstractions then have to be investigated at an empirical level, keeping in mind their historic conditions of production and thereby their limits. But then a reverse theoretical movement must take place. We must return to the phenomena we started out with, but now they can be understood as “a totality comprising many determinations and relations.” The concept is now a “real concrete” because it is “a synthesis of many definitions, thus representing the unity of diverse aspects.” 27

Intersectionality theory, however, shows us a world where race, gender, and other oppressions “intersect,” thereby producing a reality that is latticed — a sum total of different parts. At first glance this “whole,” as an aggregate of different parts, may appear to be the same as the Hegelian-Marxist concept of totality. An elementary question about the nature of intersections, however, reveals the distinction between the two concepts. If, as intersectionality theory tells us, race and gender intersect like two streets, then surely they are two separate streets, each with its own specificities? What, then, is the logic of their intersection?

I suggest that the insights or conclusions of intersectional theorists actually contradict their methodology. Instead of race and gender being separate systems of oppression or even separate oppressions with only externally related trajectories, the findings of Black feminist scholars show how race and gender are actually co-constitutive. Intersectionality theory’s methodology belies its own findings, for its theoretical model, as McNally shows, is a social Newtonian one — of discrete parts colliding, intersecting, or interlocking to produce a combined, an externally related whole. In contrast, McNally’s essay is a powerful discussion of how SRT offers us a way to “retain and reposition” the insights of intersectionality, yet reject its theoretical premise of an aggregative reality.

The understanding of totality as an organic whole rather than an aggregate of parts is important precisely because it has real material implications for how we must choose to act upon that world. Are struggles against racism and sexism internally or externally related? Does the white worker have a material, not moral, interest in challenging racism? The next section is about how and why, in a praxis-predicated philosophy such as Marxism, what we theoretically determine has strategic import in the lived experience of our world.

Mapping Social Reproduction Theory: Strategy as a Heuristic Principle

How can our theoretical understanding about whether production and reproduction belong to separate processes impinge upon our ways of grasping the nature of labor as well as its organizational impulses?

The materials necessary to produce the worker in the image of her own needs and goals — be they food, housing, “time for education, for intellectual development” or the “free play of his [or her] own physical and mental powers” — cannot be realized within the capitalist production process, for the process as a whole exists for the valorization of capital and not the social development of labor. 28 Thus the worker, due to the very nature of the process, is always-already reproduced as lacking in what she needs. Hence the struggle for higher wages (or, to call it by its more agentive name, class struggle) is built into the fabric of wage labor as a form.

Here we arrive at the strategic implications of SRT, or how an integrative sense of capitalism is central to our actual battles against capital. In this volume we approach the question of class struggle from this standpoint in order to address the conceptual and strategic totality of workplace struggle, along with struggle that erupts away from the point of production. My own essay theoretically explores the analytical category and historical processes of “class formation.” While it is easy to state that workers have an existence outside of the circuit of commodity production or point of production, the challenge the essay takes up is to clarify “the relationship between this existence and that of their productive lives under the direct domination” of capital, for that relation between spheres has the potential to chart the path of class struggle.

Similarly, Salar Mohandesi and Emma Teitelman’s essay is based on a longue durée approach to class struggle upon what they call the “terrain of social reproduction” in the United States. Tracing a counterintuitive history of labor struggles in the early twentieth century, Mohandesi and Teitelman show how the work of life-production — “household budgeting, food shopping, managing household needs” — acquired a new political charge in this period in response to earnings from wage labor emerging as the dominant component of total household income. Whereas, in previous decades, keeping animals in the backyard or growing vegetables in family plots had always supplemented wage earnings for families, the expansion and consolidation of the social relations of capital undermined or even outlawed such practices, eventually forcing households to become primarily dependent on wage labor. As the activities to reproduce life (unwaged) and the activities to produce commodities (waged) grew to be strictly separated and the latter began to determine the former, “rent, food, and cost of living” developed as “key points of contestation that inspired a variety of actions, such as boycotts, rent strikes, and the organization of cooperatives.” Mohandesi and Teitelman’s rich account of the past allows us to review our current political conjuncture through the framework of SRT, for the present moment is a map of political protest that is united in its extreme unevenness, where militant workplace strikes (China and India) are combined with political struggles against various forms of dispossession (water rights in Ireland, land rights in Latin America) and forms of oppression (the Black Lives Matter movement in the United States).

Cinzia Arruzza’s contribution to the volume is a vibrant instantiation of SRT in practice. As one of the national organizers of International Women’s Strike on March 8, 2017, Arruzza brings to the volume a productive urgency. Her essay, on the one hand, outlines the theoretical framework that informed the national mobilization for the strike; on the other, it boldly rejects what Engels once called “specific tactics of hushing up the class struggle.” Indeed, the political methods of the Women’s Strike, Arruzza shows, could be one of our lineaments of hope. SRT, then, offers us an opportunity to reflect upon the manifold ways that the neoliberal moment has forced us to reassess the potency and efficacy of certain previously uncontested terms in the Marxist tradition. Conceptual categories such as “class,” the “economy,” or even the “working class” can no longer be filled with the historical data of the nineteenth century that were available to Marx. This does not invalidate them as categories. Instead, our own historical moment demands that we engage rigorously with these categories and make them represent our own politico-historic totality.

SRT is especially useful in this regard because it reveals the essence-category of capitalism, its animating force, to be human labor and not commodities. In doing so, it exposes to critical scrutiny the superficiality of what we commonly understand to be “economic” processes and restores to the economic process its messy, sensuous, gendered, raced, and unruly component: living human beings, capable of following orders as well as of flouting them.

Like all worthwhile Marxist projects, it is important to state that this project to develop SRT is both ongoing and collective. It is ongoing in the sense that our understanding of Marxism ought to be paradigmatic rather than prescriptive, where we see Marxism as a framework or tool to understand social relations and thereby change them. This means, necessarily, that such a tool will sometimes need to be sharpened and honed to fit new, emerging social realities. The revolutionary Marxist tradition has always used Marxism in this manner, which has allowed it to rejuvenate and add to itself in new moments of crises. Lenin’s theory of imperialism, Luxemburg’s understanding of the mass strike, and Trotsky’s thesis on the permanent revolution are all examples of this constant revivification of Marxism in different epochs because these thinkers employed the Marxist method to understand the social reality of their own time.

The present volume is similarly animated by this sense of the historical materialist approach as, essentially, a method of analysis that applies itself to concrete historical situations. As the global neoliberal economy continues to foreclose real living alternatives for the vast majority and centers of resistance start developing from within its matrix, we hope SRT will continue to develop Marxism as a real tool for understanding our world in order to change it.

Such a project must also, of necessity, be collaborative. So we see this as the start of a conversation about SRT, one that will contribute to and continue that tradition of practicing critical thinking in open and exploratory ways to combat the challenges of our sly and dangerous times.

While this book is very much about excavating and recuperating the revolutionary Marxist tradition from the past, like Ernst Bloch, we reserve our greatest excitement for the “not yet.”

Notes

1. Susan Ferguson, “Capitalist Childhood, Anti-Capitalist Children: The Social Reproduction of Childhood,” unpublished paper, 2015.

2. Meg Luxton, “Feminist Political Economy in Canada and the Politics of Social Reproduction,” in Social Reproduction: Feminist Political Economy Challenges Neoliberalism, edited by Kate Bezanson and Meg Luxton (Montréal: McGill-Queen’s University Press, 2006), 36.

3. “Marx Is Back” was the headline for Foreign Policy (January 21, 2014), while the Guardian led with “Why Marxism Is on the Rise Again” (July 4, 2012), the New York Times with “Marx Rises Again” (April 19, 2014), and Salon.com “Believe It or Not: Karl Marx Is Making a Comeback” (June 22, 2014).

4. These include, among others: Elmar Altvater, Marx neu entdecken (Rediscovering Marx) (Hamburg: VSA Verlag, 2012); David Harvey’s A Companion to Marx’s Capital (New York: Verso, 2010) and A Companion to Marx’s Capital Volume 2 (New York: Verso, 2013), Wolfgang Fritz Haug, Das Kapital lesen—aber Wie? Materialien (Reading Capital—But How? Materials) (Hamburg: Argument-Verlag/Ariadne, 2013), the English translation of Michael Heinrich’s introductory book to Capital: An Introduction to the Three Volumes of Marx’s Capital (New York: Monthly Review Press, 2012), originally published in German in 2004; Fredric Jameson, Representing Capital: A Reading of Volume One (New York: Verso, 2011); Alex Callinicos, Deciphering Capital (London: Bookmarks, 2014).

5. This literature is too vast to be reported in its entirety here, but some key representational texts are: Veronica Beechey, Unequal Work (New York: Verso, 1987); Dorothy Smith, “Feminist Reflections on Political Economy,” Studies in Political Economy 30 (1987); Johanna Brenner, Women and the Politics of Class (New York: Monthly Review Press, 2000); Antonella Picchio, Social Reproduction: The Political Economy of the Labor Market (Cambridge: Cambridge University Press, 1992); and work by Canadian Marxists such as Heather Jon Maroney, Bonnie Fox, Kate Bezanson, and Isabella Bakker.

6. György Lukács, History and Class Consciousness: Studies in Marxist Dialectics (Cambridge, MA: MIT Press, 1971), 181.

7. Cinzia Arruza, Dangerous Liaisons (London: Merlin, 2013), 128.

8. Shahrzad Mojab, ed., Marxism and Feminism (London: Zed Books, 2015).

9. Nancy Holmstrom, ed., The Socialist Feminist Project: A Contemporary Reader in Theory and Politics (New York: Monthly Review Press, 2002), 7.

10. Kate Benzanson and Meg Luxton, eds., Social Reproduction (Montreal: McGill-Queen’s University Press, 2006), 37, emphasis mine.

11. Johanna Brenner and Barbara Laslett, “Gender, Social Reproduction, and Women’s Self-Organization: Considering the US Welfare State.” Gender & Society 5, no. 3 (1991): 314.

12. Karl Marx, Capital, Vol. 1 (Washington, DC: Gateway Editions, 1996),139.

13. Ben Fine and Alfredo Saad-Filho, Marx’s ‘Capital,’ 6th ed. (London: Pluto,2017), 60.

14. Karl Marx, Capital, Vol. 3 (London: Penguin, 1981), 959.

15. John Holloway, Crack Capitalism (London: Pluto Press, 2010).

16. V.I. Lenin, “A Great Beginning,” Collected Works, Vol. XXIX (London: Lawrence & Wishart, 1965 [March–August 1919]), 429.

17. As Ollman points out, given that Marx variously described capitalist labor “as ‘torment,’ a ‘sacrifice of life’ and ‘activity as suffering,’ it is not to be wondered at that no one in capitalism works unless he is forced.” Bertell Ollman, Alienation (Cambridge: Cambridge University Press, 1977), 141.

18. Karl Marx, Economic and Philosophic Manuscripts of 1844 (Moscow: Progress Publishers, 1959), 69.

19. Bertell Ollman, Alienation: Marx’s Conception of Man in Capitalist Society (Cambridge: Cambridge University Press, 1971), 141.

20. Ibid.

21. For more details, see Bonnie Fox, ed., Hidden in the Household: Women’s Domestic Labor Under Capitalism (New York: Women’s Press, 1980); Maxine Molyneux, “Beyond the Domestic Labor Debate,” New Left Review 116 (1979).

22. In which money (M) is exchanged for commodities (C), that is, a combination of means of production (Mp) and labor power (Lp). The two elements combine through capitalist production (P) to produce new commodities and surplus value (C')  to be then exchanged for a greater amount of money (M').

23. For details, see George Caffentzis, “On the Notion of a Crisis of Social Reproduction,” in Letters of Blood and Fire: Work, Machines and the Crisis of Capitalism (Oakland, CA: PM Press, 2013).

24. Philip J. Kain, Marx and Ethics (Oxford: Oxford University Press, 1988), 160.

25. Ben Fine and Laurence Harris, Rereading Capital (London and Basingstoke: McMillan Press, 1983), 6.

26. Patricia Hill Collins, Black Sexual Politics: African Americans, Gender and the New Racism (New York: Routledge, 2004), 65.

27. Quoted in M. Dobb, “Introduction,” in Karl Marx, Appendix to A Contribution to the Critique of Political Economy (Moscow: Progress Publishers, 1970 [1857]), 206.

28. Marx, Capital, Vol. 1, 284.

Revisiting Eric Williams' 'Capitalism and Slavery' and Dismantling the Accepted Narratives of History

By John Burns

Republished from Monthly Review.

When British capitalism depended on the West Indies,” Eric Williams wrote in 1938,

they ignored slavery or defended it. When British capitalism found the West Indian monopoly a nuisance, they destroyed West Indian slavery.

Williams had no time for sentimental views on the abolition of slavery. The history he dealt in was more honest, more straightforward, and unafraid to confront the accepted narratives, wherever these might be found.

And confront he did. His 1945 work, Capitalism and Slavery, systematically destroyed the traditional, rose-tinted views of abolition in the UK, replacing the cozy and humanitarian with the cold and pragmatic, substituting empathy and egalitarianism with hard economic necessity. In Williams’s view, the United Kingdom reaped the immense benefits of slavery—for centuries, in fact—and dropped the practice only when it no longer served its lucrative purpose. To look at the facts in any other light is simply a pretense.

There are voices of humanitarianism within Williams’s work. There are voices of empathy, of egalitarianism. There are people whose consciences are clear, who’s hearts are true, people who fought against slavery and the British Empire’s grim association with it. There are all of these things because there were all of these things in real life. These voices existed in Georgian and Victorian Britain, and so they are present in Williams’s writing. It’s just that these voices, these notes of discord, were lost in a far larger choir. Those making all the noise—those who truly influenced governors and policymakers—were motivated by very different factors, such as economics, geopolitics, imperialism, and capitalism.

Williams received his early education in his native Trinidad and Tobago, then still part of the British Empire. As a student, he was awarded a scholarship to Oxford University, where he excelled as a student and refined many of ideas that would characterize his later work. In 1956, Williams formed the People’s National Movement (PNM), becoming the Prime Minister of Trinidad and Tobago that same year, and eventually led the country to independence in 1962. He continued to serve at the helm of the new nation right up until his death in 1981 at age 69, in the nation’s capital, Port of Spain.

His achievements as a freedom-minded politician and global head of state may have overshadowed his earlier work in academia, but these two aspects of his career cannot be separated. His clear-eyed and honest approach to history, and to his own people’s place within that history, shaped the path he would take in the following decades. By deconstructing UK attitudes to the slave trade, and its eventual abolition, Williams laid the foundations for dismantling British imperialism in the Caribbean. His contribution to our historical understanding, and to nationhood for Trinidad and Tobago, are inextricably linked.

Williams’s ideas are not new anymore. Capitalism and Slavery was written largely as a doctoral thesis in 1938, refined and published in 1945, and has been discussed for decades since. But Penguin’s relaunch of the book in 2022 is the first mass-market edition of the work to hit the shelves in the United Kingdom. It has, deservedly, become a bestseller.

But why does this matter now? Because we are still in danger of falling under the sway of accepted truths and fantastical narratives of history. The book is a timely reminder that history is a science that helps us better understand the culture and politics of our own age—it is not sculptor’s clay, ready to be molded into whatever shape or form best suits our own blinkered, and often prejudiced, aesthetic vision. History does not owe us anything. It is not ours to manipulate or distort.

In June 2020, the statue of enslaver Edward Colston was toppled by demonstrators in Bristol—a city that appears again and again in the pages of Capitalism and Slavery, thanks largely to the profits from the trade in sugar and enslaved people that flowed across its docks. This trade was so lucrative that Bristol became the Crown’s “second city” until 1775. It was men like Colston who helped achieve this status—hence the statue.

Colston had been, but his work as a merchant, slave trader, and subsequently, a Member of Parliament is etched into the stone upon which Bristol stands. He was almost three centuries dead by time his bronze likeness was lobbed into the Bristol Channel, and he likely had very little opinion on the matter.

Fortunately for Colston, there were plenty of people in 2020 who did have opinions on the matter. History—their history—they cried, was being erased. The “armies of wokeness” and “politically correct groupthink” were destabilizing the proud heritage of the United Kingdom, they claimed. Sure, Colston traded in slaves, but it was a different time, and Colston was a great man—a true hero of the city and its people—not to mention the criminal damage, public order offenses, or the rights of the sculptor himself.

This is an example of historical distortion and manipulation at work, pursuing ends that are nothing short of racist. History has provided us with a figure—Colston—whose great wealth led to the rise of one of the UK’s most important cities. History has provided us with the facts regarding the sources of that wealth—the slave trade; the theft of dignity from our fellow human beings. History does not provide us a way with which we can separate the two—we cannot have one without confronting the other. Erecting a statue to Colston—celebrating Colston for his efforts and his achievements—means erecting a statue to the slave trade, too.

Nor does history provide us with icons who are beyond reproach. By searching history for unimpeachable icons—symbols of a particular set of values or ethics—we are destined only for failure. If, in response to our disappointment at finding flawed human beings in lieu of the pristine icons we seek, we resort to mythologizing and hagiography, we play a very dangerous game, indeed. In another of the twentieth century’s great social texts, Women, Race and Class, Angela Y. Davis examines the relationship between feminist heroes Elizabeth Cady Stanton, Susan B. Anthony, and the “women first, negroes last” policies of Democratic politician Henry Blackwell.

Blackwell spoke in support of women’s suffrage in the South, asserting that “4,000,000 Southern women will counterbalance 4,000,000 negro men and women”, retaining the “political supremacy of the white race.” Davis writes about the “implicit assent” of Anthony and Stanton to Blackwell’s racist logic as she explores the troubling and complex nature of women’s suffrage during its gestation.

Like Williams and his deconstruction of accepted beliefs regarding abolition, Davis’s analysis of racist attitudes in the women’s suffrage movement leads to an awkward confrontation. Stanton and Anthony made incredible contributions to the rights of women in the United States, and this should never be forgotten—but to turn a blind eye to the gross inequality that formed the backdrop to the movement is to deny this injustice altogether, leaving us with a flawed and incomplete understanding of our own history.

This approach—this honesty, this meticulousness—is found within the pages of Capitalism and Slavery, too. This is not simply an attack on the white establishment of the United Kingdom and their forbears in the heyday of the empire; this is a methodical analysis of the key drivers behind the rise and fall of the British slave trade. Williams’s work is certainly not an attack on abolition—a critical moment in establishing of a better world for all human beings—but neither does it seek to perpetuate false ideas of who and what made the moment of abolition a reality.

Two centuries before the slave trade reached its peak, the very concept of slavery was decried by the uppermost echelons of power in the British Empire. Queen Elizabeth I herself said that enslavement would “call down the vengeance of heaven,” and yet, by the eighteenth century, all sorts of mental gymnastics were deployed to justify the trade. Church leaders, Williams said, proposed that slavery could bring “benighted beings to the chance of salvation,” while conservative thinker Edmund Burke—himself a rigorous supporter of religion’s place in society—expounded on the slaveholder’s right to maintain ownership of “their property”, that is, the human beings they had paid for. It seems ethics and morality are not absolutes, and can be manipulated to support economic prosperity.

When such leaps of logic and desperate justification can support the rise of the slave trade, why should these moral contortions suddenly cease? Why should the voices of humanity win the day, defeating the barbarism of trans-Atlantic slavery and achieving a resounding—if delayed—moral victory? The answer is simple: they didn’t. Williams foreshadows the eventual collapse of the trade by presenting the views of contemporary economists Josiah Tucker and Adam Smith, who declared the trade to be expensive and inefficient. In the end, it would be economics, not ethics, that would defeat the United Kingdom’s plantations and slave ships.

If the going was good, the slave trade would continue, no matter how many horrific acts were perpetrated on the shores of Africa and on the islands of the Caribbean. When the market stopped being profitable—when the fiscal engine driving slavery forwards started to cough and sputter—the trade would cease. The laws of business and enterprise, as cold and inhuman as they are, were far stronger than any moral outrage.

More than eight decades have gone by since Williams completed his doctoral thesis, and it is pleasant to think that we have moved on a great deal since those days. After all, Williams was then a subject of the British Empire. Now, the citizens of Trinidad and Tobago—along with the citizens of other former colonies—are free to determine their own path in the world. In 1965, the United Kingdom passed the Race Relations Act, outlawing discrimination on the “grounds of colour, race, or ethnic or national origins”—a positive step towards a better, more welcoming nation.

But we should not wrap ourselves too tightly in this comfortable blanket of pleasant thought. In 1968, three years after the Race Relations Act was passed, Enoch Powell made his rivers of blood speech in Birmingham. Throughout the 1970s and ’80s, division and discrimination led to violent flashpoints as riots ripped through urban centers. In 1993, the tragic murder of Stephen Lawrence exposed the systematic racism at the core of UK policing. In 2018, the so-called Windrush Scandal, overseen by then-Home Secretary Theresa May, saw immigrant UK citizens stripped of their rights and their dignity. The fight against discrimination and prejudice is far from over, and no amount of historical airbrushing can compensate for this.

This is why Williams’s work is so relevant today: It reminds us to question the comforting and convenient narratives of accepted history. Twisting historical narratives to fit our own agenda—to reflect our own view of what Britain represents—is deceitful at best, and dangerous at worst. A more critical, clear-eyed, analytical approach to the past is necessary if we are to truly understand the challenges of the present.

John Burns is a freelance writer and editor from Nottingham in the United Kingdom, now residing in Yunnan, southwest China.

Sources

Whose lessons? Which direction?

[Pictured: Poster, 1962, by Nina Vatolina. The text reads: 'Peace, Labor, Freedom, Equality, Brotherhood, Happiness.']

By Jodi Dean

Republished from Liberation School.

As obituaries for neoliberalism pile up on our nightstands and Antonio Gramsci’s adage that the old is dying and the new cannot be born appears newly profound, we turn to the past for direction. What successes should guide us? What can we learn from our failures? If we are to advance politically in the twenty-first century, we need to learn the correct lessons from the twentieth. But what are they?

For some on the left, the problems we face today are as they have ever been failures of organization and collective commitment. A disciplined and organized working class could do more than compel concessions from capital; it could transform society. What’s needed is the revolutionary party. Others on the left blame labor’s political weakness on refusals to compromise. Militant organizations aren’t solutions. They’re errors. Only when unions and left parties accept capitalist social property relations do workers earn their seat at the table and engage in the bargaining that increases their share. Communist parties hinder such acceptance.

Forty years of neoliberalism reveals the bankruptcy of the latter perspective. Capital makes concessions only when it has no other choice. Ruling classes across the Global North have dismantled public sectors and decimated middle classes rather than provide the tax support necessary for maintaining social democracy. They’ve rolled back hard-won political and social gains, treating basic democratic rights as threats to their power. While strong tendencies on the right recognize radicalization as necessary for politics in a period of uncertainty and double down on their various illiberalisms, opponents of revolution insist that the lesson of the twentieth century is the necessity of compromise. Presuming there’s no alternative to capitalism, left Thatcherites declare that progress depends on leaving behind our communist baggage.

One instance of this perspective is Jonah Birch’s “The Cold War Made it Harder for the Left to Win” [1]. Criticizing Gary Gerstle’s argument in The Rise and Fall of the Neoliberal Order, Birch rejects Gerstle’s claim that it was the communist threat that made significant reform possible in the twentieth century [2]. With homogeneous Sweden as his example of social democratic success, Birch asserts that conditions were worse for labor in countries with large communist parties. He concedes that the socio-economic context that led to economic growth after World War II is unlikely to reappear. Nevertheless, Birch advises the left to accept the lesson that communists hurt the working class.

The struggle against white supremacy and fascism is class struggle

Birch’s deeply conservative message moves to the right of mainstream liberal recognition of the impact of the court of world opinion during the Cold War. It is widely accepted that competition with the Soviet Union for hearts and minds pushed the U.S. to take steps toward the abolition of Jim Crow apartheid and institutionalized white supremacy. The denial of voting rights and violent repression of activists damaged the country’s reputation as democracy’s global defender. As soon as one acknowledges the multiracial and multinational character of the working class, one realizes how the Swedish fantasy operates (even in Sweden, as Tobias Hϋbinette demonstrates in a recent piece in the Boston Review) to make a small subset of struggles—the wage struggles of white workers—stand in for the broad array of struggles of the diverse multinational working class [3].

In the U.S., for example, communist involvement in the fight against lynching, segregation, and Jim Crow was more than a propaganda point in the Cold War’s great power conflict. From its early years, the Communist Party recognized that workers would only prevail if they were united. So long as Black workers were paid lower wages than white workers and so long as Black workers excluded from unions were available as strikebreakers, the position of all workers was insecure. The struggle against white supremacy was thus central to building the collective power to win the class struggle. This analysis of the national composition of the working class under conditions of white supremacy and racism committed communists to deepening engagement in “Negro work” in multiple arenas. These arenas included organizing agricultural and domestic workers, taking on legal campaigns on behalf of the falsely accused, and drawing out the connections between the conditions facing Black people in the U.S. and oppressed and colonized people all over the world. Even more broadly, the Party demonstrated how anti-fascist, anti-colonial, and anti-imperialist movements for peace were indispensable to class struggle insofar as they all took aim at U.S. monopoly capital [4].

Communists were at the forefront of the struggle against fascism and its doctrine of Aryan superiority. Birch treats the French and Italian Communist Parties as divisive organizations. He blames them for splitting the labor movement in their respective countries, thereby marginalizing the left and isolating the working class. On the one hand, Birch’s charges are belied by his own evidence: in both countries the communists regularly won around twenty percent of the national vote in elections, hardly an indication of marginalization and isolation. Multiple localities and municipalities had communist leaders. On the other hand, Birch’s myopic focus on the expansion of social programs as the single measure of political success leads him to neglect central communist contributions. The partisans who gave their lives in the war against European fascisms, the thousands who carried out a heroic resistance in occupied countries, are erased from view. Surely their achievements are as noteworthy as the collective bargaining institutions, and generous social services that preoccupy Birch. And since Birch concedes that the economic conditions that prevailed in the post-war heyday of social democracy are unlikely to appear again, what is the political cost today of failing to acknowledge and learn from the courage of communist resistance?

Internationalism as the ground of struggle

The significance of the communist contribution continues to expand as we zoom out from a narrow focus on Europe. No one can deny the role of communist-led national liberation movements in the colonized world. In virtually every liberation struggle Marxist-Leninists played an indispensable part. Angola, Mozambique, Vietnam, Korea, Cuba, Congo-Brazzaville, Ethiopia, Indonesia, and China are not insignificant data points just because they are not from Europe.

For decades critics of colonialism and neocolonialism have pointed out that the capitalist class has been able to secure the political passivity or even support of a large layer of the working class in the imperialist core through benefits accrued from the global exploitation of Black and brown people. These critics continue a line of argument already prominent in Lenin’s analysis of the enormous super-profits generated by imperialism. That capital is international and the struggle against it must be as well is a lesson from communists in the twentieth century that remains indispensable in the twenty-first. Workers couldn’t afford nationalist myopia then and surely cannot in today’s setting of global supply chains, mass migration, and climate change.

In the U.S., Black women in and around the Communist Party in the first half of the twentieth century demonstrated the practical implications of internationalism in their organizing. As early as 1928, Williana Burroughs emphasized concrete tasks related to engaging foreign-born Black workers in the U.S. (West Indies, South America, Cape Verde Islands, Africa) and using anti-imperialism as a point of connection (“Thousands of Negroes from Haiti, Cuba, British possessions, Virgin Islands and Puerto Rico have felt the iron heel of British or American Imperialism”) [5].

The Party took the view that Black workers in the U.S. were an oppressed national minority with a right to self-determination. While controversial within and without the Party, this line constituted a fundamental ground for unifying Black and white workers because it recognized the centrality of the struggle for Black liberation. Organizing Black workers meant organizing Black women because most Black women worked for wages to support their families. Organizing Black women meant organizing immigrants and farm workers and attending to the housing, education, and neighborhood conditions impacting workers’ lives. Organizing immigrants and farm workers meant building an understanding of the patterns of oppression and resistance facing all workers. Internationalism was more than an expression of solidarity. It was a principle with repercussions for domestic organizing.

Claudia Jones’s famous International Women’s Day speech from 1950 described the global peace movement and signature campaign against the A-bomb, Marshall Plan, and Atlantic war pact. Jones noted women’s organizations’ opposition to NATO, “which spells misery for the masses of American women and their families.” She advocated rousing the internationalism of American women in protest against “Wall Street’s puppets in Marshalized Italy, in fascist Greece and Spain.” And she linked the Justice Department’s attack on the Congress of American Women as “foreign agents” with the group’s long-standing advocacy of women’s equal rights, Negro-white unity, and child welfare and education [6].

The resolute internationalism of communists in the twentieth century was indispensable to confronting imperialism and colonialism. We build the power of the working class by emphasizing the patterns of oppression and resistance, linking struggles, and targeting capitalism as the system to be defeated.

Anti-communism is the enemy

Over the last decades of neoliberalism, the right has advanced. In the U.S., UK, Brazil, Hungary, India, Israel, Italy, Poland, Sweden, and elsewhere, conservative parties use nationalism to reach out to those left behind by globalization. When socialists take as their measure of success the wages of an outmoded, masculinist, and Eurocentric image of the working class, they undermine their capacity to build mass unity, strengthening the hand of the right. Insistence on the multinational composition of the labor force of all the so-called developed countries gives the lie to nationalist and isolationist fantasies as well as to the patriarchal conceptions of the family that support them.

A component of right-wing advance has been its relentless assault on communism. Thirty years after the defeat of the Soviet Union, conservatives attack even the most common sense of public measures as communist plots. More subtle but no less reactionary are the epistemological dimensions of anti-communism, what Charisse Burden-Stelly theorizes as intellectual McCarthyism [7]. Anti-communism persists today in the suppression of knowledge of the continuities between anti-capitalist, anti-racist, anti-colonial, and anti-imperialist struggles. Instead of the site where those struggles were unified, communism is treated as a dangerous and alien ideology. Its role in the fight against white supremacy domestically and internationally is buried.

For anti-communists disorder is foreign—the refugee, the immigrant, the Black, the Muslim, the Jew. Anti-communists disavow the capitalist disorder of competition, markets, innovation, dispossession, foreclosure, debt, and imperialist war. Dramatic changes in the character of work, communities, and life that accompany disruptive and ubiquitous technology; urbanization and rural depopulation; shifts from industry and manufacture to services and servitude; the intensification of competition for decreasing numbers of affordable houses and adequately compensated jobs—these all congeal into a disorder to be dealt with by the assertion of police, family, church, and race. Anti-communism remains the lynchpin of this assertion.

The fear that anti-communism mobilizes is a fear of loss, a fear that what you have will be taken from you, what Slavoj Žižek refers to as the “theft of enjoyment” [8]. Marx and Engels call out this mobilization of fear in The Communist Manifesto when they address charges that communists want to take people’s property. They write, “in your existing society, private property is already done away with for nine-tenths of the population; its existence for the few is solely due to its non-existence in the hands of those nine-tenths” [9]. The anti-communist mobilization of fear conceals the absence of property, wealth, job security, success, sovereignty, and freedom. It posits that we have them by positioning them as stolen. Communism is what prevents you from being rich, widely admired, having lots of sex, and so on. The “theft of enjoyment” fantasy obscures the fact that under capitalism a handful of billionaires have more wealth than half the planet. By positing communism as a source of deprivation, as an ideology based on taking something away, anti-communism conceals that we don’t have what is ostensibly being stolen.

Anti-communism is not confined to the political right. It often seeps into progressive and self-described socialist circles. Left anti-communists proceed as if communism were the barrier to workers’ success, as if we would all live in a Swedish social democratic paradise but for those damned communists. Not only does this deny the multiracial and international reality of the working class, but it conceals broader left political division and weakness. Virtually nowhere does the left face the choice of reform or revolution. Virtually nowhere is the left in a position where class compromise is on the table. Anti-communism obscures this basic fact.

Communism is that modern political ideology always and everywhere on the side of the oppressed. When labor begins to appear strong, when those who have been racially, sexually, ethnically, and colonially oppressed become more visible, more organized, and more militant, anti-communism intervenes to set up barriers. On the left as well as the right, anti-communism attempts to structure the political field by establishing the terrain of possibility: which political paths are available, which are unthinkable. Even in settings where communism is dismissed as itself impossible, anti-communism mobilizes social forces to oppose it. This fight against the impossible is an ideological signal: the discussion isn’t aimed toward seriously evaluating lessons and goals. It’s about shoring up the status quo, disciplining working-class imagination by preemptive arrest of any challengers to capitalist social property relations.

The political and economic situation that prevails today differs significantly from the postwar era. The U.S. has lost both its preeminent economic status and the moral position it assumed following the end of WWII (a position always fragile and contested given the U.S.’s use of atomic weapons, backing of dictatorships, imperialist and neocolonial foreign policy, and domestic police state). Unions have lost their prior bargaining power and workers their hard-won rights and benefits. Today the issue is building organizations and movements with power sufficient to compel the socialist reconstruction of the economy in the context of a rapidly changing climate. This fight is multinational and international or it is lost.

References

[1] Jonah Birch, “The Cold War May It Harder for the Left to Win Social Democratic Reforms,”Jacobin, 15 November 2022. Availablehere.
[2] Gary Gerstle,The Rise and Fall of the Neoliberal Order(Oxford University Press, 2022).
[3] Tobias Hϋbinette, “Race and Sweden’s Fascist Turn,”Boston Review, 19 October 2022. Availablehere.
[4] See the contributions toOrganize, Fight, Win: Black Communist Women’s Political Writing, ed. Charisse Burden-Stelly and Jodi Dean (London: Verso, 2022).
[5] Williana Burroughs, “Negro Work Has Not Been Entirely Successful,”  inOrganize, Fight, Win,21-25.
[6] Claudia Jones, “International Women’s Day and the Struggle for Peace,” inOrganize, Fight, Win,181-197.
[7] Charisse Burden-Stelly, “OnBankers and Empire: Racial Capitalism, Antiblackness, and Antiradicalism,”Small Axe24, no. 2 (2020): 175-186.
[8] Slavoj Žižek,Tarrying With the Negative(Durham, NC: Duke University Press, 1993), 200-237.
[9] Karl Marx and Friedrich Engels,The Communist Manifesto, trans. S. Moore (New York: Penguin Books, 1988/1967), 237.