Firm Level Price Determination: A Comparison of Theories (Perfect Competition, Imperfect Competition, and the Theory of Real Competition)

By Ezra Pugh

“The best of all monopoly profits is a peaceful life,” (John Hicks, 1935).

“The division of labor within society brings into contact independent producers of commodities, who acknowledge no authority other than that of competition…the ‘war of all against all,’”      (Karl Marx, 1867)

George Stigler defines the term competition as “the absence of monopoly power in a market,” (Stigler 1957, 14). This could seem a curiously narrow definition to the businessperson or the worker. But this notion has been ubiquitous in the teaching of economics for decades. It originates, of course, from the Neo-Classical theory of perfect competition. Abstraction is necessary to any theoretical investigation. Assumptions must be made for the purpose of conducting analysis. But in flattening the meaning of a term like competition in such a way, is there a risk that some essential insights may be lost?

Perfect Competition

Perfect competition is the foundational parable of orthodox economics. A perfectly competitive market is an abstract ideal with a number of specific attributes:

•          There is a very large number of firms, such that no single firm can affect the overall market for its product.

•          There is a very large number of buyers for the industry’s product.

•          Each firm produces exactly the same undifferentiated product.

•          Firms, and their consumers, have perfect knowledge of all relevant economic information related to their industry and its product.

•          Firms have unrestricted power of entry and exit in their industry.

•          Firms are entitled to a ‘normal rate’ of profit, which is included in its operations costs.

• ·         Marginal costs drop at first then eventually increase with each unit sold. As a result, average cost is also upward sloping.

From its perspective, a firm in perfect competition is just a speck, dwarfed by the size of the market it competes in. The market can absorb whatever the firm can produce, provided it is sold at market price. The firm’s perceived demand curve is horizontal, or perfectly elastic. As a result, the demand curve is identical to its supply curve. The overall demand curve of the market, however, is downward sloping.

The firm must accept the prevailing market selling price for its good. If it sets its price above the prevailing price, even by an iota, the firm will lose all of its sales to the myriad other sellers. If it sets its price below, it will not be able to make enough profit to survive. A firm in a perfectly competitive market is therefore known as a price-taker, as it is powerless in the face of market pressures. Consequently, “a perfectly competitive firm has only one major decision to make—namely, what quantity to produce,” (Greenlaw 2018, 189).

Being rational, the firm’s motivating goal is to generate profit. Its profit (r), is defined as total revenue (TR) minus total cost (TC). Total revenue is made up on the products price (P) multiplied by the quantity produced (Q) minus the average cost per unit (AC) multiplied by the quantity produced. This can be written as:

To maximize its profit, the firm must continue producing more output up until the point its marginal revenue equals its marginal cost – the point where an additional unit of output contributes no more profit. Marginal revenue (MR) and marginal cost (MC) are defined thus:

Because the market price the firm experiences does not change based on its output, the firm’s marginal revenue is a constant. Each additional unit sold adds the same value, which is equal to the price of the product. If marginal revenue is equal to price, and profit maximization occurs when marginal revenue equals marginal cost, the firm should produce up until the point where its marginal costs equals the price of its product.

The firm’s average cost is its total cost divided by quantity produced, and is assumed to initially fall then eventually be upward sloping. Because innumerable sellers all sell the same good, in the long run (which generally does not have a specific definition), all ‘economic’ profits—those which are above the assumed ‘normal’ profits—are eventually eroded completely away. If positive economic profits existed, more firms would enter the market, increasing supply and lowering price. If economic profits are negative, firms would leave the market, causing the opposite effect. As a result, in the long run perfect competition causes sellers to produce their goods at the lowest point on their average cost curve.

“When profit-maximizing firms in perfectly competitive markets combine with utility-maximizing consumers, something remarkable happens,” we are told, “the resulting quantities of outputs of goods and services demonstrate both productive and allocative efficiency,” (Greenlaw 2018, 206). Productive efficiency is attained because in the long run, firms produce at their absolute lowest cost. Allocative efficiency is achieved because the resulting goods’ price is equal to its marginal cost—precisely the value of the ‘social cost’ of producing it.

Imperfect Competition and Monopoly

But of course, this state of affairs does not resemble the world in which we live. This utopian optimality, we are told, is distorted and mutated by the anti-competitive behavior of firms and government. Due to that meddling, we live in a world of imperfect competition—monopoly, monopolistic competition, and oligopoly. Paradise lost. In monopoly, a firm is the lone provider of a good, in monopolistic competition many firms produce differentiated products, and in oligopoly a small cabal of firms control the marketplace and exert price pressure.

The culprit which creates each of these distorted market types is barriers to entry. Whether natural or legal, barriers to entry prevent firms who would otherwise enter a market from entering. The few firms which are active in the market have control of too large a slice. As a result, they can affect the market price based on how many units they produce. Instead of a horizontal perceived demand curve, the firms in imperfect competition face a downward sloping demand curve.

To maximize its profit, the imperfectly competitive firm still produces at the level where MR = MC. But because of its outsized effect on the market, P no longer equals MR. With each unit produced, the increased supply exerts downward pressure on the price, which effects the price of all other units produced by the same amount. If such a firm produces too much, it can hurt its own bottom line. Because it supplies as much as it wants and not what consumers want, a true monopoly will have perpetual positive economic profits at a level which depends on the elasticity of the product’s demand schedule. Monopolistic competition, however, will in the long run result in a total erosion of economic profit as firms enter the market, all producing at a point on the AC curve, albeit not at its minimum point. As a result, none of these markets is productively or allocatively efficient. The amount of goods produced is below what consumers would have wanted under perfectly competitive conditions, they are more expensive than they are socially worth, and firms inefficiently do not produce at their minimum average cost. Customers are robbed of potential utility. Such markets are sadly the norm, because, we are told, “firms have proved to be highly creative in inventing business practices that discourage competition,” (Greenlaw 2018, 220). This is a great state of affairs for the firms, however, because “once barriers are erected, once a barrier to entry is in place, a monopoly that does not need to fear competition can just produce the same old products in the same old way,” (Greenlaw 2018, 229). Managers can kick back and watch the profits roll in.

Historical Overview

Sketched out above is the dominant parable in economic thought and teaching. Interestingly, almost none of this resembles the real world. How did we get here? An outline is sketched below.

Adam Smith is generally credited with establishing economic thought, or Political Economy, as a distinct field of study. His work An Inquiry into the Nature and Causes of the Wealth of Nations (1776) is regarded as the first modern work of economics. A key figure in the Scottish Enlightenment, Smith was interested in observing economic phenomena, describing them, and discovering the hidden patterns within. David Ricardo furthered and built on Smith’s ideas, advancing theories on rent, trade, and value. Over the course of the three volumes of Capital (1867), Karl Marx extended this theoretical framework even further with sharpened historical and class analysis, building a signature value theory in the process. Along with others, these thinkers are referred to as the Classical economists.

But in the 1870’s there occurred what is known as the Marginalist Revolution. The Long Depression (1873-96) caused a crisis of confidence in the capitalist world. Interestingly, it was during this period that the most utopian theoretical depictions of capitalism were popularized. W.S. Jevons (1871), Carl Menger (1871), and Leon Walras (1874) independently and almost simultaneously developed this new theoretical paradigm. They perceived fundamental flaws in the theoretical framework and methodologies of the Classical economists and sought to “pick up the fragments of a shattered science and to start anew,” (Jevons 1879/1965, Preface lii). The Classicals believed that the ultimate source of an item’s value was the amount of labor embodied in it and that market prices were connected to costs—prices of production. The Marginalists vehemently disagreed. “Value,” wrote Jevons, “depends entirely upon utility” (Jevons 1871/1965, 1). Echoing this sentiment, Menger wrote “there is no necessary and direct connection between the value of a good and whether, or in what quantities, labour and other goods of higher order were applied to its production” (Menger 1871/2007, 146). Value then stemmed from a buyers utility gained from a good; that utility being an index of the good’s scarcity.

Jevons and Walras both used advanced mathematics to express their ideas. Adopting algebra and calculus, they could express complex ideas with greater accuracy than was possible previously. "Why should we persist in using everyday language to explain things in the cumbersome and incorrect way, as Ricardo has often done,” wrote Walras, “when these things can be stated far more succinctly, precisely, and clearly in the language of mathematics?" (Heilbroner 1997, 226). Walras pioneered what is known as general equilibrium theory—the notion that a complex balance of supply and demand can exist in and between markets.

It is during this period that supply and demand curves and the modern theory of perfect competition are introduced. In order to make their highly abstract models functional and defined, economists had to make assumptions that did not necessarily fit with, and often outright contradicted economic reality. "The pure theory of economics, it must precede applied economics,” wrote Walras, “and this pure theory of economics is a science which resembles the physic-mathematical sciences in every respect," (Heilbroner, 224). Actual people and actual societies faded from the picture in favor of platonic ideals. This fundamental methodological shift opened up many new avenues of exploration for economists, but the descriptive and predictive usefulness of the new models was not necessarily clear. Perfect competition became the theoretical jumping off point for all ‘rigorous’ analysis, and Marshall (1890) systematized the theoretical structure into what would recognize as modern Neo-classical economics. Dobb notes, "at the purely formal level, there can be little doubt that the new context and methods, with their mathematical analogy if not mathematical form, resulted in enhanced precision and rigor of analysis…the cutting knives of economic discussion became sharper -- whether they were used to cut so deeply is another matter" (Dobb 1973, 176).

In the 1920s, unease with the dominance of perfect competition was growing. Sraffa (1925) aimed a potentially devastating critique at the then-dominant Marshallian partial equilibrium theory, demonstrating that the theoretical structure was not capable of dealing with non-constant returns (increasing or decreasing costs) adequately (Mongiovi 1996). The next year, Sraffa (1926) suggested a solution might be found using the lesser utilized monopoly theory as a starting point. Even in competitive markets, monopolistic tendencies could easily be observed because 1.) firms can exert some control over their own prices, and 2.) they frequently experience increasing returns (decreasing costs). Sraffa argued that these circumstances are not the exception, “rather they are normal and persistent features of the economic landscape, with 'permanent and even cumulative' consequences for market equilibria. When these influences are operative, each firm is to be viewed as having its own distinct market; prices are set so as to maximise profits on the supposition that the relevant demand curve is not perfectly elastic,” (Mongiovi 1996, 214). Building on these ideas, Robinson (1933) and Chamberlain (1933) independently, but simultaneously, developed the theory of imperfect competition that is taught today. Eventually abandoning Marshallian theory altogether, Sraffa’s publication of Production of Commodities by Means of Commodities (1960) is credited with establishing a distinctive Sraffian or Neo-Ricardian school.

Real Competition

In Capitalism: Competition, Conflict, Crises (2016), Anwar Shaikh erects a theoretical framework independent of perfect and imperfect competition. Formalizing insights developed by the Classical economists, a theory is built which is both analytically sound and corresponds to observed economic phenomena. The theory of real competition, as it is called, “is as different from so-called perfect competition as war is from ballet,” (Shaikh 2016, Ch. 7.I.). The classical economists stressed themes that were either diminished or omitted completely by Neo-classical economists, including conflict, class, and temporality. In Capital, Volume 1, Karl Marx writes that the economic realm is bellum omnium contra omnes, ‘war of all against all,’ (Marx 1867/1990, 477). All evidence of this is lost in the parables of perfect and imperfect competition. But in Capitalism, the theory of real competition “pits seller against seller, seller against buyer, and buyer against buyer. It pits capital against capital, capital against labor, and labor against labor,” (Shaikh 2016, Ch. 7.I.). Abstracting away from the essentiality of conflict to capitalist production and distribution makes Neo-Classical analysis not only unrealistic, but totally misleading.

But even on pure theoretical grounds there are issues with the theory of perfect competition. For one, there is a fundamental contradiction within the assumptions. Firms are assumed to have perfect knowledge of the market in which they are competing, yet their perceived demand curve is assumed to be flat. These two assumptions cannot hold at the same time. “If firms are assumed to be sensible in their expectations, then the theory of perfect competition collapses. More generally, even mildly informed firms would have to recognize that they face downward sloping demand curves under competitive conditions,” (Shaikh 2016, Ch. 8.I). If a firm in a perfectly competitive market has perfect knowledge, it would quite easily deduce that the market signals it is receiving are being received by every other firm, and those firms will react in a predictable manner. As a result, the firm would know that it does not face a flat, perfectly elastic demand curve, and would act in exactly the same manner as a monopolistic firm, with just the same results.

Another problematic assumption within the orthodox framework is that firms are entitled to a normal rate of profit, which is included within its cost structure. The action of competition completely erodes excess profits away but leaves normal profits intact. This, of course, is wildly unrealistic because “no capital is assured of any profit at all, let alone the “normal” rate of profit. Indeed, all capitals face losses at some point, and a certain number drown in red ink in every given interval. It is therefore completely illegitimate to count “normal profit” as part of operating costs,” (Shaikh 2016, Ch. 7.I.). The prospect of making a loss is the dark cloud that hangs over every business manager, driving them unceasingly into conflict with agents both inside and outside the firm. Abstracting away from this motive force fundamentally misdiagnoses the motivations of economic agents.

In the theory of perfect competition, a firm’s only decision is how much to produce. Likewise, in imperfect competition, pricing and quantity decisions are mechanically connected. But in the works of the Classicals and in the theory of real competition, firms are active price setting, cost cutting entities. Neo-Classical theory stresses that firms will flock to higher profit rates at a given price. But once firms have the power to set their own price, the picture becomes more complicated. In their endless search for higher rates of return, firms cut prices to attract more buyers and increase market-share. In the process, “the advantage in this perpetual jousting for market share goes to the firms with the lowest cost,” (Shaikh 2016, 7.II.). If firms have the power to cut their own prices, they have the power to starve out other firms—even ones that are potentially more profitable at initial prices. Neo-Classical theory stresses that firms will adopt whatever method yields the highest profit at a given price, but “when costs differ, there is always a set of prices at which the lower cost firm has the higher profit rate. This does not mean that [it] has to drive the price down to that level. It has only to get the message across to its competitor that the future has arrived,” (Shaikh 2016, 7.VII.). This is demonstrated in Table 1 below. Pricing wars, which are extremely common occurrences in the real economy, highlight the conflictual nature of economic relations—"these are the operative principles of warfare: attackers try to impose greater losses on the other side. We will see that such behavior is the norm in the business world. It follows that the highest profit that is sustainable in the face of price-cutting behavior is generally different from the price-passive profit assumed in theories of perfect and imperfect competition,” (Shaikh 2016, 7.II.). Only the theory of real competition deals with this common behavior adequately.

Conclusion

Contrary to Hicks’ assertion, a peaceful life is not included in a firm’s profit—no matter their degree of monopoly. There is perpetual conflict generated both inside and outside of the firm that must always be contended with. For real firms, “price is their weapon, advertising their propaganda, the local Chamber of Commerce their house of worship, and profit their supreme deity,” (Shaikh 2016, 7.II.). Abstraction is a necessary tool for analysis. But the specific method of abstraction used in the theories of perfect and imperfect competition does not serve to elucidate truths that would be otherwise unattainable. Neo-Classical economics was formulated during a crisis of capitalism to create a utopian vision in order to justify capitalist social relations. Capitalist relations have been shown to be the most powerful and productive in history, but that does not justify obscuring their fundamentally destructive and chaotic elements. Competition is not merely the absence of monopoly power—it is the struggle of all against all.

References

Dobb, M. (1973). The ‘Jevonian Revolution’. In Theories of Value and Distribution since Adam Smith: Ideology and Economic Theory (pp. 166-210). Cambridge: Cambridge University Press. doi:10.1017/CBO9780511559457.007

Cohen, A. J., & Harcourt, G. C. (2003). Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies? Journal of Economic Perspectives, 17(1), 199–214. doi: 10.1257/089533003321165010

Greenlaw, S. A., Taylor, T., & Shapiro, D. (2018). Principles of Microeconomics. Houston, TX: OpenStax, Rice University.

Heilbroner, R. L. (1997). Teachings from the Worldly Philosophy. New York: W.W. Norton.

Hicks, J. (1935). Annual Survey of Economic Theory: The Theory of Monopoly. Econometrica, 3(1), 1-20. doi:10.2307/1907343

Jevons, W. S. (1965). The Theory of Political Economy (5th ed.). New York, Ny: Augustus M Kelley.

Marx, K., Fowkes, B., & Fernbach, D. (1990). Capital: a Critique of Political Economy; vol.1. London New York, N.Y: Penguin Books in association with New Left Review.

Menger, C. (2007). Principles of Economics. Auburn: Ludwig von Mises Institute.

Mongiovi, G. (1996). Sraffa’s Critique of Marshall: a Reassessment. Cambridge Journal of Economics, 20(2), 207–224. doi: 10.1093/oxfordjournals.cje.a013613

Sen, A. K. (1977). Rational Fools: A Critique of the Behavioral Foundations of Economic Theory. Philosophy and Public Affairs, 6(4).

Shaikh, A. (2016). Capitalism: Competition, Conflict, Crises [Kindle version]. New York: Oxford University Press.

Smith, A., Heilbroner, R. L., Malone, L. J., Smith, A., & Smith, A. (1987). The Essential Adam Smith. New York: W.W. Norton.

Sraffa, P. (1926). The Laws of Returns under Competitive Conditions. The Economic Journal, 36(144), 535. doi: 10.2307/2959866

Sraffa, P. (1960). Production of Commodities by Means of Commodities: Prelude to a Critique of Economic Theory.

Stigler, G. J. (1957). Perfect Competition, Historically Contemplated. Journal of Political Economy, 65(1), 1–17. doi: 10.1086/257878

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

By Colin Jenkins

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

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

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

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

Capitalism’s Destructive Path

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

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

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

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

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

Realizing Fascism

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

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

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

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

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

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

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

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

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

The Pedagogical Resurgence of Anti-Fascism

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

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

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

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

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

Class Consciousness

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

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

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

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

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

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

Organic Intellectualism and Political Consciousness

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

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

All power to the people.

Bibliography

Amin, Samir (2014) The Return of Fascism in Contemporary Capitalism, Monthly Review, September 1, 2014. Accessed at https://monthlyreview.org/2014/09/01/the-return-of-fascism-in-contemporary-capitalism/

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Davis, Angela (2016) Freedom is a Constant Struggle (Haymarket Books)

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Freire, Paulo (2014) Pedagogy of the Oppressed: 30th Anniversary edition (Bloomsbury)

Fund, John (2013) Nixon at 100: Was He America’s Last Liberal? (National Review online, January 11, 2013) Accessed at https://www.nationalreview.com/2013/01/nixon-100-was-he-americas-last-liberal-john-fund/

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Hampton, Fred (1968) Speech at Northern Illinois Unversity. Accessed at http://www.lfks.net/en/content/fred-hampton-its-class-struggle-goddammit-november-1969

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Against Akon's New Liberia: Class Remains The Key Link

By Christopher Winston

This was originally published at Hood Communist.

There has been much confusion regarding the character, purpose, and benefit of projects in Africa such as those launched by multimillionaire musical artist Akon in Senegal. This project is described by the New York Post as being “run entirely on renewable energy” and Akon himself is quoted as saying: “With the AKoin we are building cities, the first one being in Senegal…we’re securing the land and closing out all the legislation papers for the city. We want to make it a free zone and cryptocurrency-driven as a test market.” Essentially, this is a capitalist project. This is an old strategy, one of wealthy diasporic Africans (Akon himself is of Senegalese extraction) returning to the motherland, buying up property, and trying to construct little Wakandas. The recolonization movement in the early 1800s (backed by wealthy colonizers in the UK and US) led to the formation of two “independent states” on the West Coast of Africa, Liberia, and Sierra Leone. These countries were not independent, they can be seen as the first neocolonial test cases. In the case of Sierra Leone, initially populated by diasporic Africans who self-liberated from slavery during the American “Revolution”, it remained a colony of Britain until 1961. Both countries lacked native control over their natural resources. Liberian rubber was the property of Yankee corporations, diamonds from Sierra Leone remained in the grasping hands of the British. One of the main reasons that the Americans sought to destroy the movement led by Marcus Garvey was that it promoted, encouraged, and developed strategies for African economic self-determination in the US, in the Caribbean and Latin America, and in the Continent. The imperialists simply could not allow this, and it is to the eternal demerit of Communists that we failed to develop mass links and a United Front with this movement which captured the energy and support of tens of millions of Africans, instead of working for its destruction because we saw it as an ideological and political rival. 

Back to the Akon City project. Akon’s goals, I believe, are not willfully malicious. I begrudge no African that thinks they are genuinely helping their people. However, this project is a capitalist project and thus is doomed to either fail or set up a wealthy utopia for Europeans and Africans with the means to play around with cryptocurrency and such. In essence, Akon is hamstrung by his class position and class stand. Rich Africans returning to the Continent and seeking to set up what are essentially little Liberias and little Wakandas is a strategy that does not take into account the presence and insidious machinations of neocolonialism and bureaucratic capitalism (compradorism). Africa is poor not because the people there are bad capitalists. Africa is poor because of capitalism and imperialism and its lackeys on the Continent who are installed to ensure the flow of resources to the old colonial metropoles. Akon City is closed to the tens of thousands of Congolese youth who mine the coltan which will fuel Akon’s cryptocurrency. Akon City is closed to the hundreds of thousands in Dakar who live in shipping containers and do not have running water, or electricity. Akon City is as real to the majority of Africans as Wakanda is. For all Africans to enjoy a high standard of living it is essential to replace capitalist pipe dreams with Pan-African socialist reality. Africans, working-class and peasant Africans, must have control of our wealth and our Continent. Neocolonialism and imperialism must be buried with armed force. As long as colonizers continue to loot our continent we will see no peace, millions of us will continue to die no matter how many glass and concrete monstrosities Akon constructs. Look to Liberia and Sierra Leone as negative examples, and study the works of those such as Kwame Nkrumah, Malcolm X, and other Pan-African revolutionaries. Apply them to our day to day reality, analyze and criticize everything, and seize the time. Take class as the key link.

Zimbabwe's Political, Social, and Economic Prospects: 2019 in Review

By Mafa Kwanisai Mafa

Political landscape

After the 2018 harmonized elections which gave the ZANU PF party the mandate to rule, President Emmerson Mnangagwa appealed to all political party Presidents who contested in the elections to come together in a national dialogue and find a way to stop the toxic political polarization which continues to divide the Zimbabwean nation. Another reason for the national dialogue was to provide a viable platform for contributing towards lasting solutions to the challenges that confront the country. All the 19 political parties accepted the President’s invitation to Political Actors Dialogue (POLAD) and the main opposition Movement for Democratic Change (MDC) refused on the basis that they don’t recognize the Presidency of Emmerson Mnangagwa.

They claim that Mnangagwa is an outcome of a rigged election despite the fact that they were deemed free and fair by many international observers and also by the Constitutional Court of Zimbabwe. A southern Africa bloc, Southern Africa Development Commission (SADC) is in support of the POLAD platform created by the government of Zimbabwe and support a full inclusive dialogue. Former South African President Thabo Mbeki who brokered the Global Political Agreement (2008) before was in the country towards year end to bring all stakeholders to the table and consult. President Thabo Mbeki is pushing for talks to end economic crisis. Mbeki held marathon meetings with the protagonists in Harare as well as other political, civic society, and church leaders. The opposition MDC says it is committed to “real dialogue” to solve the political and economic morass in the country and will not be part of President’s Mnangagwa’s POLAD platform.

The opposition, in cahoots with their international allies through foreign embassies and civil society groups, are escalating their efforts to topple the government of Emmerson Mnangagwa. These organizations are fighting in the opposition corner by supporting and funding the MDC destabilization agenda. The same organizations have been urging USA and EU to maintain the illegal economic sanctions on Zimbabwe, citing alleged human rights violations by the government and security services. The MDC opposition leadership has been on the whirlwind tour in western capitals asking for more sanctions to put pressure on the Zimbabwean government.

Economic Situation

Zimbabwe is in the throes of its economic decay in a decade characterized by acute shortages of cash, medicine, fuel and rolling power cuts of up to 20 hours a day. Inflation skyrocketed to 481.5% in November 2019, in the process eroding salaries and decimating pensions. Zimbabwe is also grappling with price increases which are changing every day. In the interim, salaries have remained depressed, with consumer spending severely curtailed. Zimbabwe economic morass constitutes one of the biggest threats to ZANU PF's continued hold on power. United Nations expert Hilal Elver, the UN special rapporteur on the right to food, noted that Zimbabwe is on the brink of starvation, a crisis that has been compounded by hyperinflation, poverty, natural disasters and economic sanctions. The ZANU PF Central Committee report of 2019 noted that the most latent security threat that has great consequences is the unstable economy, which is largely propelled by the parallel market (black market). Formal trading prices are determined by the parallel market exchange rate, which has been sharply rising on a daily basis. Prices of all commodities and services have followed suit to unsustainable levels.

The report admitted that most people are failing to make ends meet, so poverty levels are rising very much throughout the year. As a result anger is brewing among the citizens while there is loss of confidence on the direction the economy is taking. In January a steep hike in fuel prices led to violent demonstrations across the country which the army and police ruthlessly put down. The human rights groups estimated that about 17 people were shot down with live ammunition by the security forces during the three days protests.

Zimbabwe is suffering from massive power cuts which has brought a number of businesses to a standstill. The power utility in 2019 went on to increase tariffs by 320%. The increase in tariffs was meant to solve the power crisis in the country but failed dismally with some businesses bearing the brunt as they lost productive hours.

Economic Sanctions and the Regime change agenda

This is a sad chapter in Zimbabwe's recent history which marked the beginning of a well-organized, meticulously coordinated and generously funded campaign of economic sabotage and misinformation designed to mislead both the Zimbabwean population as well as the international community with the ultimate aim of overthrowing the elected government. Activists are being trained in foreign lands by intelligence forces on how to organize and apply strategies to undermine the government and its economic policies. This is meant to render the country ungovernable and incite the population to revolt and overthrow a legitimate government.

October 25, 2019 was declared a national holiday in Zimbabwe for people to march against western sanctions. Sanctions are causing more harm as they have affected people, companies, and schools. Zimbabwe has for the past two decades failed to access lines of credit from IMF and the World Bank. Some banks in the country are restricted from trading with international financial institutions. Under the USA Zimbabwe Democracy and Economic Recovery Act, American companies are not allowed to deal with Zimbabwe entities on the sanctions list. Some companies associated with the state have had their money intercepted and blocked when they attempt to do business with international institutions. Companies are finding it difficult to move money into the country because banks can be fined for dealing with sanctioned countries.

In April 2019, the USA fined the Standard Chartered Bank US$18 million for dealing with a sanctioned country. Many companies have been forced to close shop or to scale down their operations. This has led to a loss of jobs. Many international investors are shying away from investing in the country.

In the past two decades, various opposition leaders from the MDC party have been consistently calling for and instating on the maintenance of the illegal economic sanctions with the aim of regime change. SADC set October 25, 2019, as the SADC day against Zimbabwe sanctions which marks the start of a sustained call for the unconditional lifting of sanctions against Zimbabwe through various activities.

There is an organization based in Belgrade called Centre for Applied Non Violent Action and Strategies (CANVAS) which is clandestinely training antigovernment activists with strong umbilical links to the Zimbabwean main opposition MDC. Its mission is to layout the groundwork for civil unrest. Srdja Popovic is the founder and executive director of this organization. He is based in Belgrade, Serbia and his job is to foment revolutions in countries such as Sudan, Swaziland (Eswathini), Venezuela, Libya, Egypt, Tunisia, Burma, Vietnam, Belarus, Syria, Somalia, and Zimbabwe. Most of the activists which were arrested in Zimbabwe in the aftermath of the January 14 and 16, 2019 violent protests and charged with treason and subversion received their training in Czech Republic and the Maldives. Their training involves organizing mass protests, the use of small arms, and counter intelligence. Most of the organizations which are engaged in these nefarious and subversive activities to topple the government of Zimbabwe are also funded by the National Endowment for Democracy (NED), an American private and nonprofit organization which focuses on “strengthening democratic institutions.”

CANVAS was founded in 2003 by Srdja Popovic and Ivan Marovic and ever since it has been training antigovernment activists in Azerbaijan, Belarus, Georgia, Iran, Lebanon, Tibet, Ukraine, and Venezuela. Srdja Popovic was one of the key founders and organisers of the Serbian nonviolence revolution group called Otpor! Otpor! Campaign which toppled the Serbian President Slobodan Milosovic in October 2000. CANVAS has been successful in most countries mentioned in fomenting uprisings save for Swaziland, Belarus, and Zimbabwe, which are still enjoying some peace. Foreign organizations are coordinating workshops and trainings in the country, the region, and overseas to topple the Zimbabwe government.

Austerity and the International Monetary Fund

Zimbabwe launched its austerity measures under the Transitional Stabilization Programme (TSP) in October 2018 when it was presenting the 2019 national budget. The time frame of the programme is scheduled to run from October 2018 to December 2020. The purpose of the austerity measures are meant to implement cost cutting measures, and to reduce the public sector wage bill. In addition to that, austerity reforms are aimed at increasing tax revenues by introducing the unpopular 2 % Intermediated Monetary Transfer (IMT) tax, restructuring the civil service and the privatization of ailing state enterprises and parastatals. These reforms are meant to bring about fiscal balances in the public sector. These reforms are meant to reduce government spending, increase tax revenues or to achieve both. The International Monetary Fund is keeping an eye on these reforms through a Staff Monitored Programme which covers a period from May 2019 to March 2020. These measures are very unpopular with the masses as they have proved to be anti-developmental, self-defeating, and have an adverse effects on the toiling working class.

The civil service has been affected by the austerity measures in terms of salaries which are now pegged at less than US$30 a month. Persistent threats of strikes and demonstrations have crippled important sectors such as health, education and even provision of documents such as passports. These austerity reforms shrink economic growth and cripple public service delivery. From past experiences IMF is unlikely to offer any bailout to the Zimbabwe economy, which means the country will have to lift itself out of any economic slowdown caused by the austerity measures. Critics of austerity measures fear that the reforms are acting as a double edged knife that leads to economic recession, job cuts, and company closures whilst failing to tackle runaway government expenditure. Its most likely that history is going to repeat itself, cognizant of the 1990 Economic Structural Adjustment Programme (ESAP) which left the economy worse off, further marginalizing the poor and vulnerable groups.

The impact of austerity measures are likely to widen the already high income inequality gap in Zimbabwe. Zimbabwe is worsening social suffering as the government cuts social spending by 62%. Low income households are the most affected through expenditure cuts on social protection programmes which are mend for the children, elderly and the disabled and beneficiaries of Basic Education Assistance Programme (BEAM) and health facilities. In the current budget the government prioritized Defense and Home Affairs. The impact of taxation policy on distribution and equality is so glaring. Big companies are being offered several investment incentives under the 2019 national budget, the citizens under distress of the additional 7c and 6.5c per litre of diesel, petrol and paraffin. Implications of the 2c on Intermediated Money Transfer above Zimbabwe $10 are similar. This shows the repressiveness of the Zimbabwe tax system, where the poor contribute more than the rich.

By experimenting with TPS the government is repeating the mistakes of 1990 under ESAP and it’s expecting different outcomes. The commercialization and privatization policy is being smuggled into the fiscal policy under the government mantra of “Zimbabwe is open for business.” The Transitional Stabilization Programme, just like the previous Economic Structural Adjustment Programme, is affecting the economic opportunities for the urban middle income and the working class while marginalizing the poor further, especially women and children. The combination of privatization with the proposed labour market reforms under the Special Economic Zones, further exposes labour to exploitation. The Public Private Partnerships model in public hospitals has led to segregation and deepening inequality between the haves and have nots.

The austerity measures have failed to stabilize the economic situation as the cost of living has increased to extreme levels. The ever increasing prices of basic commodities has become a breeding ground for more poverty and vulnerability amongst the masses. The persistent hard economic situation is reversing and derailing some of the progressive plans the government has put in place to attain the UN sustainable development goals. The Zimbabwean government is a signatory to the United Nations Sustainable Development Goals and the 2020 Agenda and it is committed to ensure that no poverty or hunger exists by 2030. It looks like there is no reprieve for the masses as fuel prices are continuing to rise due to the weakness of the Zimbabwean dollar against the US dollar and other foreign currencies.

The Zimbabwe government must come up with socialist policies that ensure that all citizens afford to live a dignified lifestyle. The economic hardship are causing moral decadence and erosion of social norms and values. The urban areas are becoming dangerous as incidents of robberies and prostitution are on the increase as well as reports of drug abuse amongst the youths. By intruding the TPS government is trying to please the IMF because since 2016 the government has been implementing the IMF staff monitored programmes.

Social services

Upon attainment of independence in 1980, Zimbabwe experimented with Socialism as it pursued a free primary school education and primary health care policies. This contributed to the high literacy levels which the country boasts as the highest in Africa, but the withdrawal of government support as recommended by ESAP climaxed in the introduction of school fees and user fess even in government hospitals. This had serious repercussions on women and children, as this contributed to gender inequality as parents were forced to prioritize educating the boy child at the expense of a girl child. Child mortality heightened as expecting mothers could not afford the hospital fees. These reforms mainly target social services, and even now in Zimbabwe it is the social services that are bearing the brunt of the austerity measures. Under the TPS, the government has removed fuel and electricity subsidies and this has caused the skyrocketing of prices of basic commodities and services.

The removal of subsidies are greatly affecting the companies on production as many companies are closing shop because it’s now difficult to sustain operations using diesel and petrol power generation. Inflation is rising at an alarming speed and the living standards, life expectancy, and economic production are plummeting. These hardships are causing increase in inequality, disaffection and exclusion. Opposition to the ruling class is deepening each day. The government economic crisis is becoming more pronounced, with a mounting foreign debt, declining experts and urban strife due to increased food prices, unemployment, the rising cost of living and brain drain. Many educated Zimbabweans are leaving the country for the foreign countries where they are being subjected to xenophobic attacks and precarious labour and exploitation.

The government under the direction of TPS intends to privatize some parastatals. With the high levels of corruption in Zimbabwe it is likely that these companies will be sold to acolytes, fronts and elites. This could be reminiscent of what happened in Russia in the 1990s, a period that gave rise to the oligarchs who stripped Russia of its gas and oil resources leading to the emergency of overnight billionaires. The Russian ultra-rich, such as Chelsea Soccer Club owner Roman Abramovich, amassed wealth during the economic and social turmoil that followed the collapse of the Soviet Union and the introduction of the free market economy. Oligarchs are monopolistic by nature. These are the pitfalls of privatization.

Greece is a good example of a country which experimented with austerity measures. In 2010, Athens imploded after its Parliament voted and approved the draconic austerity measures which they thought would unlock 120 billon Euros of emergency loans for the debt stricken country to avoid insolvency. Up to this day Greece is feeling the negative effects of austerity measures nine years later. The Greece story is a good example of how negative and cruel the austerity measures could be. The experimenting with TSP will leave most of the Zimbabwean population in dire straits. The public expenditure cuts, linked with this year’s drought and the effects of Cyclone Idai, will leave many people destitute. Pro-poor and socialist policies are the only way that is going to redeem the toiling masses and bring social development. The government vision of an upper middle class by 2030 under its slogan Vision 2020 remains a pie in the sky, influenced by western imperialist privatization efforts. The reality for most Zimbabweans is an economy that is regressing at an unprecedented rate.

Drought and Climate Change

Zimbabwe is grappling with a nationwide drought that h” The government vision of an upper middle class by 2030 under its slogan Vision 2020 remains a pie in the sky as the economy is regressing at a faster, unprecedented rate.

Drought and Climate Change

Zimbabwe is grappling with a nationwide drought that has depleted dams, cutting output by hydro power generation at Kariba dam. The has caused harvests to fail as most crops are wilting and this has prompted the government to appeal for US$464 million in aid to stave off famine. These prolonged droughts, dry spells, and heat waves are a result of climate change. Most major cities in Zimbabwe are rationing water in an effort to stretch the water supplies. The world over more than 2 billion people live in countries experiencing high water stress and the UN has warned that the problem is set to worsen with demand expected to grow as much as 30% by 2050. A combination of drought and economic meltdown are pushing Zimbabwe to the brink of humanitarian catastrophe. In the rural areas, 5.5 million farmers are struggling to find food. In urban areas, the inflation rate of 480% is forcing the poor families to survive on just one meal a day. The crisis is being made worse by a formal unemployment rate of 90% and also by an indebted government that is struggling to provide basic services, perennial shortages of fuel and foreign currency, and regular 20-hours daily power cuts.

Zimbabwe is marching towards unprecedented food insecurity levels in its history, the 2018/19 was the driest season in 40 years and these are the signs of climate change. Approximately 8 million Zimbabweans are now dependent on food from the World Food Programme and other donor agencies from western countries. Water and electricity are in short supply and basic health services close to collapse. The rising inflation has made the imported food in the shops unaffordable to many.

Zimbabwe was also ravaged by Cyclone Idai which devastated the eastern parts of the country leaving 259 people dead and thousands displaced. The storm caused destructive winds and heavy precipitation causing riverine and flash floods, deaths, and destruction of property and infrastructure. According to official figures, 250,000 people were affected by the cyclone. The forecast was done two months before the cyclone struck but authorities were “caught off guard.”

Trade Unionism, Picketing and Demonstrations

As the nation is falling in a deeper economic abyss, trade unions have come under spotlight and clashes with the government and business over the working conditions are increasing. The Zimbabwean working class is dwindling with 10% employment rate. The working class in Zimbabwe is starving, failing to pay rent, and has no access to health care. The purpose of trade unions among other things are to negotiate for living wages and better working conditions, regulating relations between workers and the employer, taking collective action to enforce the terms of collective bargain, raising new demands on behalf of its members, and helping to settle grievances.

Trade unionism in Zimbabwe has been hijacked by politicians and no longer serves the interests of the working class. The Zimbabwe Congress of Trade Unions (ZCTU) came into existence on 28 February 1981, after joining of six unions, namely African Trade Union Congress (ACTU), the National African Trade Union Congress (NACTU), Trade Union Congress of Zimbabwe (TUCZ), United Trade Unions of Zimbabwe (UTUZ), Zimbabwe Federation of Labour (ZFL) and the Zimbabwe Trade Union Congress (ZTUC). These unions came together to form the now Zimbabwe Congress of Trade Unions. The ZCTU is now being used by the western governments as a tool for the regime change agenda which saw it becoming a bedrock of the opposition party, the Movement of Democratic Change (MDC) which was formed and launched in September 1999.

The birth of the Movement of Democratic Change (MDC) on September 12, 1999 was the genesis of the ZCTU participation in politics. This unwarranted meddling in politics has left the working class poorer. Trade unionism in Zimbabwe has become a stepping stone for individuals to gain political power at the expense of the poor working class whom they claim to represent. The unions are failing to address the working class needs yet they must be the voice of the working class. Majority of the working class in Zimbabwe are being subjected to exploitation, unions must negotiate for higher living salaries, and jobs must be dignified and productive with adequate social protection. The unions have been captured by western government forces seeking to topple the government so that they can exploit the natural resources freely. Currently, Zimbabwe is reeling from the economic sanctions wrought by illegal economic sanctions imposed by USA and EU. The ZCTU must join calls and demand the lifting of the sanctions that are severely affecting its membership. The current crisis in Zimbabwe is exacerbated by the disputed 30 July 2018 elections, economic collapse, high prices and cash shortages, high unemployment, and public health crisis. The local authorities in major cities are failing to provide adequate clean water to residents and even basics such as regular garbage collections have been delayed.

Company closure and the slowing down of production in most sectors of the economy has led to a decline of trade union membership, and those that are still working are earning very low wages. Most workers are now in the informal sectors such as vending. Factory shells in the light and heavy industrial sites in major cities are deserted. Manufacturing and industrialization has stagnated and been replaced by importation of finished goods from neighboring countries.

Zimbabwe currency collapsed in 2009 which led to the adoption of the US dollar as legal tender but the Reserve Bank of Zimbabwe lacked the foreign currency reserves to meet this obligation. Prices of basic commodities have risen dramatically and the purchasing power has been eroded. In January 2019, the country’s 305,000 civil servants gave notice to strike after they were paid in the local currency which is called the bond note instead of the US dollars. During that same period the government raised fuel prices by over 200%, which made Zimbabwe fuel to be the most expensive in the world. The following day, the ZCTU called a three-day general strike, which was supported by many civil society organizations. Many people joined this nationwide strike because of widespread anger over economic decay but there was massive looting and property destruction. This provoked a brutal crackdown by the security forces, and the government shut down the internet to prevent social media coordination of the demonstrators.

Between the period of 1996 and 1999, George Linke of the Danish Trade Union Council came to Zimbabwe with an agenda to transform the ZCTU into a political party. Part of his mission was to identify other groups in the country which were to join the proposed new political formation. This party was to spearhead the regime-change agenda. The transformation of the ZCTU as a political formation brought together employers, workers, students, and former white farmers. This new party was also formed as a response to a government resolution to designated 1,500 white-owned farms for expropriation and the increased emphasis on black empowerment and the draft constitution which would enable the government to acquire white-owned farms compulsorily without compensation. The ZCTU allowed itself to be transformed into a political party so that it can serve the interests of the former white farmers and western capital. Labour unions are being funded by the arms of the US government through conduits such as the National Endowment for Democracy, International Republican Institute, and National Democratic Institute, which have nothing to do with strengthening workers’ rights and everything to do with toppling governments.

In September 2019 the Zimbabwe health care system became shambolic, characterized by an acute shortage of drugs and an indefinite industrial action by doctors over salaries. The country’s public hospitals, already beset by a myriad of challenges, degenerated into death traps after doctors embarked on a strike that is still ongoing. In response, the government dismissed 448 doctors while it pursued disciplinary action against 1,000 others.

Also in August, Zimbabwe was hit by another wave of protests, which saw the security forces brutally squashing the demonstrations. The ZANU PF ruling party and the main opposition party MDC both feel the way forward and out of this economic crisis is to impose neoliberal austerity measures against the working class and the poor. The right-wing organizations that are currently pushing for social dialogue are fronts of the imperialist countries and are funded by them.

Demands

The Zimbabwe working class are demanding a living wage and pensions.

Workers are demanding that never again should they allow the workers’ struggle and trade unions to be hijacked by politicians.

Workers demand the immediate stoppage of harassment of street vendors who are trying to make a living to support their families.

Workers stand against the government mantra of “Zimbabwe Is Open for Business” as this is tantamount to selling the country to imperialist investors.

No to privatization of government companies, as this will benefit the elite connected to the government who will buy the company for a song.

The rich, which include huge mining companies, multinational corporations and foreign investors, must be taxed more to finance developmental interests of the poor

The only way forward is to smash the system of capitalism which breeds wars, poverty, and misery and replace it with Socialism. This can only be achieved by building an International Workers Socialist Revolutionary Party. This is the time as capitalism is in deep crisis globally.

Aluta Continua!

The author may be contacted at cdemafa@gmail.com

What's Wrong With the "Right to Work": A Marxist Critique

By James Richard Marra

At this writing, 28 US states have instituted "Right to Work" laws (RTWLs). These laws prevent labor unions from excluding non-union workers from receiving improved wages and benefits gained through union negotiations with employers, as well as worker-empowering services such as grievance assistance. These laws also bar unions from requiring non-union employees to pay a fee to unions to offset the costs of union work and services. This legislation extends established Federal law that protects a worker's right not to join a union, and the Taft-Hartley Act, which requires that unions exclusively represent all employees regardless of union membership status.

Neo-liberals dislike unions and wish to diminish their ability to organize and advantageously negotiate contracts with employers. They disparage union demands that all employees who the receive benefits of union work pay their fair share. Neo-liberals cast these complaints in legal language rights, which resonates among Americans. In 2014, GALLUP found that 71% of those polled approve of RTWLs because they agree with proponents that no American "should be required to join any private organization, like a labor union, against his will." RTWL advocates such as The National Right to Work Legal Defense Foundation remind workers that the Foundation defends the workers' right to personally bargain with employers, and celebrates the right of every American to employment without the government compelling them to join a union.

For Neo-liberals, workers' labor power is their exclusive private property and the law should insure its unrestricted sale to employers. In contrast, Marxists argue that appeals to a right to sell labor power rest upon an established a capitalist conception of private property, which is a structural basis of the capitalist wage system. Marx argues that capitalist law invests workers with an exclusive ownership and control over their labor power. However, upon exchanging that labor power (as a commodity) for money (wages), it becomes the private property of the employer. It is upon these dimensions of ownership rights that Marx's bases his class explanation of the exploitive and alienating capitalist economic system.

These rights obtain meaning and scope within a capitalist legal superstructure, described by Gerald Allen Cohen as "a set of non-economic institutions, notably the legal system and the state." (p. 216) This legal order defines rights within the capitalist economic structure (the forces and social relations of production), and institutionalizes private property rights and production relations in legal terms. The legal superstructure enshrines rights in way that insure the best "fit" between capitalist social relations and the prevailing forces of production to maximize the effectiveness of the prevailing productive forces.

It is indispensible to capital that workers freely sell their labor power. The superstructure sanctions this right because capitalists wish to legally expedite a "free circulation of labor," which facilitates the centralization of sufficient labor power to maximally exploit the prevailing productive forces. Concerning the growing scale of agriculture and, with it, the end of "settlement laws" in Medieval Europe, Cohen explains:

The productive forces demanded "large scale production on modern lines" with larger aggregation of labor, and therefore new material relations of production. These in turn required "free circulation of labor," the right to move, which was then denied. Since the law forbade movement, it was broken, ignored, and finally scrapped, new social production relations forming on its ruins. (p. 167)

The legal superstructure determines the power relations of private property. It enables the good working order of the prevailing economic structure through legal means by establishing rights over the ownership and sale of labor power. RTWLs institutionalize a power asymmetry between employers and unions; financially encumbering unions and diminishing their ability to organize effectively and negotiate for improved wages and benefits from a position of financial strength.

A central problem for Marxists who wish to explain RTWLs with reference to class dynamics is to recognize and avoid the biased preconceptions of capitalist rights talk. As Cohen suggests, "The problem…is to (i) formulate a non-legal interpretation of the legal terms in Marx's characterization of production relations, in such a way that (ii) we can coherently represent property relations as distinct from, and explained by, production relations ." (p. 219) [Author's italics]

To do this, Cohen develops a "rights free" semantic that renders rights as "powers." Powers are just the ability of persons to do A, regardless of whether A is normatively a legal or moral act. A revealing way to explore how laws reflect capitalist power relations is to consider Cohen's three "dimensions of subordinate status." Cohen defines the working class as comprising people who (p. 69):

1) Produce for others [superiors] who do not produce for them

2) Within the production process,…are commonly subjected to the authority of the [superiors]

3) In so far as their livelihoods depend on their relations to their superiors,…tend to be poorer than [their superiors]

To transform these dimensions in to talk of power, we simply replace the word "right" with a matching "power." Then, in order to divorce rights talk from powers, we also require that the:

Possession of powers does not entail possession of the rights they match [nor vice versa]…Only the possession of a legitimate power entails the possession of the right it matches, and only the possession of an effective right entails the possession of its matching power. (p. 219)

Considered in this way, the workers' right to sell their labor becomes the power to produce for their superiors, acquiesce to the authority of employers and managers, and generally be poorer than their superiors. Cohen makes clear the relevance of this perspective to class struggle:

No superior has rights over his [the worker's] labor power. His subordination ensues because, lacking means of production, he can ensure his survival only by contracting with a capitalist whose bargaining position enables him to impose terms which effect the worker's subordination. Through unionization proletarians improve their bargaining position and their consequent lot in all three dimensions of subordination. When the reduction of subordination is substantial, we may also speak of a reduction of proletarian status. (p. 70)

For unions to break free of the dimensions of capitalist subordination, organizing and worker solidarity are crucial. Cohen argues that workers can establish "a self-aware" group consciousness whose political dispositions reflect the Marxist critique (p. 77), one that views union membership outside of the Neo-liberal narrative of rights that dominates the American culture . This consciousness would realize that the right to private property remains a Neo-liberal legal construct whose function is to institutionalize beneficial social relations for the capitalist.

The Economic Policy Institute reported on the benefits non-RTW states offer to workers and their unions.

No matter how you slice the data, wages in RTW states are lower, on average, than wages in non-RTW states. As shown in great detail in Gould and Shierholz (2011), these results do not just apply to union members, but to all employees in a state. Where unions are strong, compensation increases even for workers not covered by any union contract, as nonunion employers face competitive pressure to match union standards. Likewise, when unions are weakened by RTW laws, all of a state's workers feel the impact

If socialism intends to replace the economic structure of capitalism, these data suggest that opposing RTWLs leads to significant economic and political gains for workers. Socialist activists and union organizers struggling against the enactment of RTWLs can bolster their advocacy by illuminating that Neo-liberal semantic of rights that conceals the subordinating power relations of capitalism.

J. Richard Marra lives in Connecticut. He received his Doctoral degree from Cornell University in 1977, majoring in Musical Composition and the History of Music Theory. While on the Faculty of the Peabody Conservatory of Music in Baltimore, he completed graduate work at Johns Hopkins University, majoring in the Philosophy of Science. He is a member of the Socialist Party USA, the Southern Poverty Law Center and the Philosophy of Science Association. He is also a contributing writer for the Secular Buddhist Association. He is a member of the Socialist Party - USA, and has served as the Convener of the Editorial Board and Managing Editor of The Socialist. He is a 2014 recipient of the SPUSA's Eugene V. Debs Award.