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Like What, Exactly? Part Two: Fascism, or the state as the direct exploiter of labor

January 7, 2013 2 comments

FDRLABOR

Part Two: Fascism, or the state as the direct exploiter of labor

One of the recurrent comments to my writing is the statement, in one form or another, that my use of the terms “the fascist state” is off-putting to the average reader — which is to say, the commenter thinks I am engaging in needless hyperbole. However, the question, “Like what, exactly?”, can only be answered if we have a common set of assumptions regarding the social context within which we are acting. One of those assumptions is a common definition of fascism and why the existing state can only be understood as entirely fascistic.

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#OtMA: Wolff’s and Resnick’s “Marxian Interpretation” of the Crisis

February 14, 2012 4 comments

I have been contemplating these two paragraphs for a week now, because they seem to me to sum up the disconnect between Academic Marxism and the actual problems facing the working class today. The quote is taken from an article written by Richard Wolff and Stephen Resnick in 2010, titled “The Economic Crisis: A Marxian Interpretation”.

Indeed, the repeated oscillations between the two theories and their associate policy prescriptions emerge also from a fundamental perspective both sides share. They largely agree that the market system is the best of all known mechanisms to allocate resources efficiently. Many would add that markets also allocate resources equitably. They claim that fully competitive markets enable those who contribute to wealth production to receive rewards (incomes) exactly equal to the size of their contribution. Where the two sides differ is in how to insulate and protect the market system from the criticisms and movements for state economic interventions that flow from citizens who suffer from the economy’s recurring recessions and inflations. Against the criticism and movement, one side argues to ‘‘leave the market alone so that it can find its way to a new, efficient, and just solution.’’ ‘‘No,’’ says the other. ‘‘We need state intervention to help guide the market’s search for a new and efficient solution.’’ Capitalism-defined as private enterprise and free markets-remains the optimum system for both sides in terms of wealth creation and social welfare.

Both sides thus share a profound conservatism vis-a`-vis capitalism, despite holding radically different views on the need for state intervention. The oscillation between them serves their shared conservatism. It prevents crises in capitalism from becoming crises of capitalism, when the system itself is placed in question. It does this by shaping and containing the public debate provoked by crisis-caused social suffering. When serious crises hit a deregulated capitalism, the two sides debate whether the solution is regulation or letting the system heal itself. When serious crises hit a regulated capitalism, the two sides debate whether the solution is deregulation or more or different regulation. This effectively keeps from public debate any serious consideration of an alternative solution to capitalism’s recurring crises: namely, transition to an economic system other than and different from capitalism.

The argument Wolff and Resnick are making is not particularly original; in fact it simply repeats, without any critical analysis, the received wisdom of the two alleged competing views of fascist state economic policy — Keynesian and neoclassical — regarding their policy differences. The Keynesian school wants to regulate the economy, while the neoclassical wants to deregulate it. The neoclassical school wants to leave the market alone, while the Keynesian school wants the state to intervene in the market.

Wolff and Resnick then tell us that the two schools share a common belief in “private enterprise and free markets”, that makes them conservative capitalist alternatives, because they prevent crises from developing to the point where “the system itself is placed in question”, “by shaping and containing the public debate provoked by crisis-caused social suffering”.

Frankly, I don’t know what to make of this “Marxian interpretation” of the division within fascist state economic policy pundits.

First, even if Wolff and Resnick were correct that there is indeed two wings within fascist state economic policy pundits, it is not at all clear to me that these differences amount to “Regulate, regulate” versus “Deregulate, deregulate”. Wolff and Resnick never even bother to discuss whether there even is “private enterprise and free markets”.

Second, Wolff and Resnick argue these differences play merely an ideological function of containing the debate in society within certain tolerable limits. Their argument seems to suggest the point of the division itself is to serve as a safety valve that allows dissent from placing the “system” in question by redirecting public debate. Are there really no policy differences of material significance between the two schools? Is the debate over fascist state policy really all just misdirection?

Third, the last question gets to the heart of what is wrong with this “Marxian interpretation”: Wolff and Resnick offer an argument of sorts the explains the prescription differences within fascist state economic policy, but it does not explain fascist state economic policy itself. Why is there fascist state economic policy? Why was it necessary for the state to undertake a more or less continuous intervention in the economy since the Great Depression?

By contrast, Engels, speaking from the grave fully fifty years before the state undertook this continuous intervention in the economy, described it as the inevitable result of the working out of the historical materialist law of value:

In any case, with trusts or without, the official representative of capitalist society — the state — will ultimately have to undertake the direction of production. This necessity for conversion into State property is felt first in the great institutions for intercourse and communication — the post office, the telegraphs, the railways.

If the crises demonstrate the incapacity of the bourgeoisie for managing any longer modern productive forces, the transformation of the great establishments for production and distribution into joint-stock companies, trusts, and State property, show how unnecessary the bourgeoisie are for that purpose. All the social functions of the capitalist has no further social function than that of pocketing dividends, tearing off coupons, and gambling on the Stock Exchange, where the different capitalists despoil one another of their capital. At first, the capitalistic mode of production forces out the workers. Now, it forces out the capitalists, and reduces them, just as it reduced the workers, to the ranks of the surplus-population, although not immediately into those of the industrial reserve army.

But, the transformation — either into joint-stock companies and trusts, or into State-ownership — does not do away with the capitalistic nature of the productive forces. In the joint-stock companies and trusts, this is obvious. And the modern State, again, is only the organization that bourgeois society takes on in order to support the external conditions of the capitalist mode of production against the encroachments as well of the workers as of individual capitalists. The modern state, no matter what its form, is essentially a capitalist machine — the state of the capitalists, the ideal personification of the total national capital. The more it proceeds to the taking over of productive forces, the more does it actually become the national capitalist, the more citizens does it exploit. The workers remain wage-workers — proletarians. The capitalist relation is not done away with. It is, rather, brought to a head. But, brought to a head, it topples over. State-ownership of the productive forces is not the solution of the conflict, but concealed within it are the technical conditions that form the elements of that solution.

Not to be misunderstood, Engels emphasizes in a footnote that this intervention would mark a new and different stage for the mode of production and would not just be a policy preference designed to play some ideological function:

I say “have to”. For only when the means of production and distribution have actually outgrown the form of management by joint-stock companies, and when, therefore, the taking them over by the State has become economically inevitable, only then — even if it is the State of today that effects this — is there an economic advance, the attainment of another step preliminary to the taking over of all productive forces by society itself.

Engels argues the continuous intervention in the economy forced on governments in all countries, beginning with the Great Depression, was the inevitable result of economic laws, having nothing to do with containing public debate within tolerable limits. He stated it would mark the displacement of the capitalist class by the state, which would from that point itself function as the capitalist exploiting labor. His argument suggests the debate between the camps within fascist state policy pundits is not merely playing the role of misdirecting public opinion. Instead, these two wings are arguing among themselves over the best policy the fascist state should adopt to maximize the exploitation of the working class.

Anarchism, libertarianism, Marxism and Unpaid Labor

January 22, 2012 Leave a comment

Here is something I culled from Marx’s paradox of capitalist price — i.e., the so-called transformation problem — that all present variants of critical communist theory rejects (and, by all variants, I mean the usual suspects: libertarianism, Marxism and anarchism). All conflict in society is directly or indirectly a struggle over the length of the social working day. We could call this Marx’s basic theorem of social development. Marx stated his theorem this way:

The history of all hitherto existing society is the history of class struggle.

But, this class struggle has always more or less directly or indirectly revolved around the uncompensated labor of one portion of society.

All three variants of communist consciousness have advanced their petty demands, while remaining mute on this pivotal issue. However, there is not a single demand advanced by any of them that does not touch on the length of the social working day. The libertarian complaint on taxes, the anarchist complaint on force, and the Marxist complaint on profit all come down to this. Moreover, each variant’s hostility toward the other is wholly rooted in the struggle over working time. It seems logical to assume since all three are only divided by which function of the state they oppose they must all share an ignorance regarding the premise of this state.

That common ignorance can be stated as follows: Each cannot imagine that the premise of the state is the uncompensated labor time of society. Each, therefore, imagines it possible to abolish the present state of things without abolishing its premise — uncompensated labor. Each imagines it possible to ignore abolition of uncompensated labor time, or reduce it to a mere byproduct of the state’s own abolition. Engels made the clearest argument against this ignorance in his argument against Bakunin:

Bakunin has a peculiar theory of his own, a medley of Proudhonism and communism. The chief point concerning the former is that he does not regard capital, i.e. the class antagonism between capitalists and wage workers which has arisen through social development, but the state as the main evil to be abolished. While the great mass of the Social-Democratic workers hold our view that state power is nothing more than the organization which the ruling classes-landowners and capitalists-have provided for themselves in order to protect their social privileges, Bakunin maintains that it is the state which has created capital, that the capitalist has his capital only by the grace of the state. As, therefore, the state is the chief evil, it is above all the state which must be done away with and then capitalism will go to blazes of itself. We, on the contrary, say: Do away with capital, the concentration of all means of production in the hands of the few, and the state will fall of itself [fällt von selbst]. The difference is an essential one: Without a previous social revolution the abolition [Abschaffung] of the state is nonsense; the abolition of capital is precisely the social revolution and involves a change in the whole mode of production. Now then, inasmuch as to Bakunin the state is the main evil, nothing must be done which can keep the state-that is, any state, whether it be a republic, a monarchy or anything else-alive. Hence complete abstention from all politics. To commit a political act, especially to take part in an election, would be a betrayal of principal.

Uncompensated labor, Engels is arguing, is the essential precondition for the state. Marxists have used this quote as the dividing line between it and all other variants of communist consciousness. But, Marxists no more grasp it than either of the other two — hence, not a single Marxist sect raises demands on the working day. Even when they might, on occasion, weakly argue for it, it is nevertheless accompanied by a demand for money wages to remain unchanged. As if the question is not the uncompensated labor, but the worthless paper dollars exchanged for necessary labor.

In fact, paper money is a worthless token having no relation whatsoever to the real compensation the worker receives for her labor power — the only measure of the value of labor power is gold or another commodity money. Currency was debased precisely to make sure there would be no relation between the value of labor power and its price (wages). Keynes says this very thing in his “General Theory”, and I have pointed out the paragraph in which he makes his argument to Marxists time and again without penetrating their dull brains.

Though the struggle over money-wages between individuals and groups is often believed to determine the general level of real wages, it is, in fact, concerned with a different object. Since there is imperfect mobility of labour, and wages do not tend to an exact equality of net advantage in different occupations, any individual or group of individuals, who consent to a reduction of money-wages relatively to others, will suffer a relative reduction in real wages, which is a sufficient justification for them to resist it. On the other hand it would be impracticable to resist every reduction of real wages, due to a change in the purchasing-power of money which affects all workers alike; and in fact reductions of real wages arising in this way are not, as a rule, resisted unless they proceed to an extreme degree. Moreover, a resistance to reductions in money-wages applying to particular industries does not raise the same insuperable bar to an increase in aggregate employment which would result from a similar resistance to every reduction in real wages.

In other words, the struggle about money-wages primarily affects the distribution of the aggregate real wage between different labour-groups, and not its average amount per unit of employment, which depends, as we shall see, on a different set of forces. The effect of combination on the part of a group of workers is to protect their relative real wage. The general level of real wages depends on the other forces of the economic system.

Thus it is fortunate that the workers, though unconsciously, are instinctively more reasonable economists than the classical school, inasmuch as they resist reductions of money-wages, which are seldom or never of an all-round character, even though the existing real equivalent of these wages exceeds the marginal disutility of the existing employment; whereas they do not resist reductions of real wages, which are associated with increases in aggregate employment and leave relative money-wages unchanged, unless the reduction proceeds so far as to threaten a reduction of the real wage below the marginal disutility of the existing volume of employment. Every trade union will put up some resistance to a cut in money-wages, however small. But since no trade union would dream of striking on every occasion of a rise in the cost of living, they do not raise the obstacle to any increase in aggregate employment which is attributed to them by the classical school.

If Marxists can’t grasp the significance of these paragraphs for fascist state political-economy, what hope is there for those who imagine wages can be exchanged for labor power without wages slavery? The struggle against the state is nothing more than a struggle against the theft of uncompensated labor by the state in whatever form. If we cannot grasp this, we will continue to wander around as tiny little isolated sects, or sink further into lonely pessimism: The economic policy of the fascist state is nothing more than a device for compelling increasing quantities of uncompensated labor time from society.

The Black Hole: Marxism, the State and the Social Revolution (3)

August 13, 2011 Leave a comment

“…the more does it actually become the national capitalist, the more citizens does it exploit.”

In the first part of the series, I made three critical assumptions about present political-economic relations.

First, in 1929, Capitalism suffered a general breakdown, brought on by absolute over-accumulation — absolute over-production. This crisis, known popularly as the Great Depression, occurred in every major industrialized nation in the world market, and constituted a global over-accumulation of capital that was irreversible. It took the form of a great mass of unemployed workers, side by side with a mass of unemployed means of production and subsistence.

Second, the fascist states which emerged from this economic catastrophe took the form of the ‘political rule of the proletariat over itself’, effected through its suffrage in the nations where it formed the largest class.

Third, the only alternative solution to the breakdown of capitalism and the “political rule of the proletariat over itself” was and remains the reduction of labor hours.

I also attacked the “Marxist theory of the state” and argued this “theory” is, in fact, not supported by Marx’s critique of capitalist society. So far as I can determine, not a single point of Althusser’s 1970 statement of the ‘Marxist theory of the state’ is found either in Marx’s or Engels’ writings of the state. While it is true, Althusser agrees with historical materialism that the state is an organ of class rule, this simplistic description of the state is ahistorical and does not satisfy the historical materialist description of the capitalist mode of production as a distinct historical stage in the development of the forces and relations of production.

Althusser’s statement can be applied to any epoch of human civilization, and to every known mode of production. It does not explain what of the capitalist state is specific to the capitalist mode of production and the social relations within society that are founded on this mode. What is specific to the state under the capitalist mode of production is not merely, or even primarily, that it is an instrument by which the ruling class imposes its will on society: in the writings of Marx and Engels, the state under the capitalist mode of production is “essentially a capitalist machine,” that displaces and renders the capitalist class itself superfluous to the mode of production and functions as the national, i.e., social, capitalist.

Althusser treats the state as an ahistorical category, not as a real thing situated in the capitalist epoch. The state is reduced to an instrument of repression, which appears in the capitalist epoch already in its complete and unchanging form. Essentially, Althusser recycles Duhring’s argument on force and dresses it in 20th Century “Leninist” clothing. While he does not go so far as Duhring and Anarchism to give force the determining role in historical development, he treats the state itself as essentially unchanged by the material changes in society.

This essentially static view of the state can not help us understand our present condition, as it throws no light on existing social relations.

*****

In the second part of the series, I examine Lenin’s and Kautsky’s argument that the class conflict takes place completely within the bounds of a commercial transaction and confirm it as agreeing with my understanding historical materialism. The recognition by Lenin and Kautsky of the limits of the purely economic struggle — of the struggle with the capitalist over the terms and conditions of the sale of labor power, however, is converted by Leninism into an argument that the proletariat is incapable of carrying out its historical mission of burying capital without theory. And, since the proletariat is not “the bearer of theory”, into an argument for a vanguard party.

The argument for a Leninist vanguard party on these grounds, however, is a non-sequitur, since, despite the limitations of the economic struggle, historical materialism insists the working class abolishes capital based on empirical comprehension of their circumstances — not on a theory purporting to describe these circumstances.

Marxists take Kautsky’s and Lenin’s arguments completely out of context of the capitalist mode of production itself, and abstracted from the impact the mode of production has on the state. Although the conflict between capitalist and wage laborer is essentially a commercial conflict, Engels description of the State shows how the capitalist (as personification of the relationship) is progressively displaced by the state as Capital develops. The marginalization of the capitalist does not resolve — overcome — the class conflict; rather, it converts it into a directly political struggle. Which is to say, the worker to assert her purely commercial interests in the class conflict, must also assert her political interest against the state.

If, on this basis, historical materialist investigation of the Fascist State refutes the arguments of the Marxists who trace their thinking to Lenin, still more clearly does it refute the European Social-Democrats who, having thrown Marx and Engels out the window entirely, propose to tinker with existing relations to render capitalism more humane. This latter gang of opportunists aspire to nothing more than perfecting the Fascist State as the social capitalist.

Against both failed variants of this tradition, we demand not a new brand of sectarian organization, nor reform of politics, but the abolition of the state.

*****

While the historical task of the worker is simplified by the convergence of Capital and the State power and the emergence of the Fascist State, it is obvious this fascist state rests on universal suffrage of the proletarian majority. To put it bluntly, in her political activity the worker constitutes the very machinery of exploitation against which she fights. Her commercial interest as a seller of labor power, sparks her political activity to ensure this sale is consummated; the terms and conditions of this sale, and the prerequisites of these, figure as this or that economic policy of the fascist state. On the other hand, the enlargement of the state, its increasingly pervasive economic role, is no more than the expansion of the state as social capitalist and must lead to the ever increasing exploitation of the worker. The more she struggles to realize political relations to satisfy her requirements as a seller of labor power, the more indifferent the State becomes to her needs as a human being.

This must lead to two results that I can think of:

In the first instance, what was once concealed beneath purely monetary relations must become increasingly obvious to the proletarians: that their activity is the enlargement of an alien power standing over against them. As the state becomes the social capitalist, what was previously only a theoretically derived conclusion regarding the relationship between capital and wage labor is made explicit and comprehensible to the worker.

In the second instance, the increasingly comprehensible relation between capital and wage labor appears, not in its commercial form, but in the form of increasing antagonism to the fascist state, and to its role as social capitalist, stated in a political form, i.e., as demands against the state. However, expressed in this purely political form, it is now the empirical expression of a radical critique of all existing relations.

The Black Hole: Marxism, the State and the Social Revolution (2)

August 11, 2011 1 comment

Karl Kautsky

(I want to clarify that I am discussing certain writers, while withholding judgement on their overall work. It is not my intention to assert they were wrong in their time and place, only that their arguments have been taken out of context by what is currently referred to generally as “Marxism”. Moreover, by “Marxism” I include the body of work that traces its origins to both the Soviet experience and to Western Social-Democracy.)

Convergence of the economic and political conflict in society

In the first part of this series, I introduced some fundamental assumptions about 21st Century society. I also took issue with the Marxist theory of the state, as elaborated by Louis Althusser in his 1970 work, Ideology and Ideological State Apparatuses. Now, I want to sketch out my understanding of the historical materialist conception of both the State and Capital, in order to trace the error in the ‘Marxist theory of the State’ back to its likely roots.

The nexus of the relation between the two appears to arise just before Lenin and his work, What is to be Done. In chapter II of this book, Lenin quotes Karl Kautsky on the relationship between Marxist theory and the practical economic struggle of the working class:

“Many of our revisionist critics believe that Marx asserted that economic development and the class struggle create, not only the conditions for socialist production, but also, and directly, the consciousness of its necessity. And these critics assert that England, the country most highly developed capitalistically, is more remote than any other from this consciousness. Judging by the draft, one might assume that this allegedly orthodox Marxist view, which is thus refuted, was shared by the committee that drafted the Austrian programme. In the draft programme it is stated: ‘The more capitalist development increases the numbers of the proletariat, the more the proletariat is compelled and becomes fit to fight against capitalism. The proletariat becomes conscious of the possibility and of the necessity for socialism.’ In this connection socialist consciousness appears to be a necessary and direct result of the proletarian class struggle. But this is absolutely untrue. Of course, socialism, as a doctrine, has its roots in modern economic relationships just as the class struggle of the proletariat has, and, like the latter, emerges from the struggle against the capitalist-created poverty and misery of the masses. But socialism and the class struggle arise side by side and not one out of the other; each arises under different conditions. Modern socialist consciousness can arise only on the basis of profound scientific knowledge. Indeed, modern economic science is as much a condition for socialist production as, say, modern technology, and the proletariat can create neither the one nor the other, no matter how much it may desire to do so; both arise out of the modern social process. The vehicle of science is not the proletariat, but the bourgeois intelligentsia: it was in the minds of individual members of this stratum that modern socialism originated, and it was they who communicated it to the more intellectually developed proletarians who, in their turn, introduce it into the proletarian class struggle where conditions allow that to be done. Thus, socialist consciousness is something introduced into the proletarian class struggle from without [von Aussen Hineingetragenes] and not something that arose within it spontaneously [urwüchsig]. Accordingly, the old Hainfeld programme quite rightly stated that the task of Social-Democracy is to imbue the proletariat (literally: saturate the proletariat) with the consciousness of its position and the consciousness of its task. There would be no need for this if consciousness arose of itself from the class struggle. The new draft copied this proposition from the old programme, and attached it to the proposition mentioned above. But this completely broke the line of thought…”

Kautsky’s statement concerns the formation of consciousness under the capitalist mode of production. In it he proposes a dual track model of communist consciousness, where the direct conflict between wage labor and capital coexists side by side with, but separately from, the understanding of the implication of this conflict. The worker is engaged in the direct struggle, the intellectual brings to her a consciousness of the implications of her struggle — the need for her to assume control of the state.

In chapter III of the above book, Lenin imports Kautsky’s statement into his argument against what would later become the Mensheviks in Russian communism. However, we now have a problem: societies do not imagine themselves into existence. (I got this statement from somewhere, but can’t remember who, perhaps the Marxian writer Chris Cutrone) This is, in my opinion, a restatement of the fundamental historical materialist assumption — material conditions first, ideas second.

Kautsky’s statement, therefore, violates a fundamental assumption of historical materialism — its most important assumption. Perhaps a correction is in order: he does not directly violate this assumption, since he is only talking about Marx’s theoretical conclusion. As a theory, he may be correct, but communism cannot possibly rest on general acceptance of a theory. Which is to say, communism, as a real movement of society, must have been inevitable even if Marx had not discovered it. If the science had advanced no further than, say, Ricardo or Hegel or St Simon, the emergence of communism would still occur.

Discovering this inevitability, of course, was science, and this is a product of the intelligentsia — but not the historical process itself. The result is, if all communists were to disappear tomorrow, this process would still unfold according to its own logic. Communists are superfluous to it — a fifth wheel. We can no more change the outcome than can Ben Bernanke over at the Federal Reserve Bank.

I tried this argument out at Kasama.org and (after having a collective seizure) they asked me if this was true why was I a communist? More importantly, Why was Marx a communist? Why did he organize the working class movement? I had no real answer for this at the time.

I do now, because a tweep, @, asked how I would explain 1929 from a materialist perspective.

I think it was because Marx saw 1929 coming, and the implications of the Event — Engels actually stated it explicitly. At a certain point, both knew, the State would have to seize control of the entire machinery of production. Whether this ended in a social revolution, or what I now call the Fascist State would depend on the “political consciousness” of the class. How much of the theory of its own material condition it had absorbed would decide the outcome — not the final outcome, but the intermediate outcome.

That was the Event that should have seen the Paris Commune reborn on a global stage — a form for the proletariat to work out its final liberation — a liberation, not just from wage slavery, but from labor itself.

Marx was notorious for not talking about the future, only the immediate was important — because he was not given to making blueprints. The world did not need another utopian system — it only needed to understand its actuality and the process inherent in it. In Volume 3, however, and Engels in “Utopian and Scientific Socialism” we get a glimpse into the implications of his theory.

The fact is, in historical materialism properly understood, the Proletarian never even realizes she is a wage slave. As individuals, they act exactly like any other commodity seller, like small commercial players. The worker sells her one commodity over and over again and the conflict with the capitalist over the terms of this sale falls completely within the bounds of commercial rivalry.

Lenin explicitly states this idea in chapter III of What is to be Done; he argues that the trade union fight alone is insufficient for the development of a communist consciousness among the working class:

“The overwhelming majority of Russian Social-Democrats have of late been almost entirely absorbed by this work of organising the exposure of factory conditions. Suffice it to recall Rabochaya Mysl to see the extent to which they have been absorbed by it — so much so, indeed, that they have lost sight of the fact that this, taken by itself, is in essence still not Social-Democratic work, but merely trade union work. As a matter of fact, the exposures merely dealt with the relations between the workers in a given trade and their employers, and all they achieved was that the sellers of labour power learned to sell their “commodity” on better terms and to fight the purchasers over a purely commercial deal. These exposures could have served (if properly utilised by an organisation of revolutionaries) as a beginning and a component part of Social-Democratic activity; but they could also have led (and, given a worshipful attitude towards spontaneity, were bound to lead) to a “purely trade union” struggle and to a non-Social-Democratic working-class movement. Social-Democracy leads the struggle of the working class, not only for better terms for the sale of labour-power, but for the abolition of the social system that compels the propertyless to sell themselves to the rich. Social-Democracy represents the working class, not in its relation to a given group of employers alone, but in its relation to all classes of modern society and to the state as an organised political force. Hence, it follows that not only must Social-Democrats not confine themselves exclusively to the economic struggle, but that they must not allow the organisation of economic exposures to become the predominant part of their activities. We must take up actively the political education of the working class and the development of its political consciousness. “

What does Lenin’s statement imply about the empirical relation between these two great classes of capitalist society, and for the mode of production itself?

The capitalist as buyer of labor power confronts the worker as seller; and, later, the worker as buyer of subsistence commodities confronts the capitalist as seller. Both poles of this relationship rests on the successful exchange of labor power for wages. The sale of labor power appears, in the first instance, as the direct result of the exchange of labor power for wages. And, the sale of labor power appears, in the second instance, as the condition for the exchange, as means of purchase in the form of wages for commodities.

Historical materialism states that labor power has undergone a change between the first instance and the second instance. This change is both qualitative: labor power is consumed and this consumption turns it into various useful objects — shoes, cars, etc. But, there is also a quantitative change: the value of the latter — shoes, cars, etc. — is greater than the former — the initial labor power.

Empirically, however, it appears otherwise: while a qualitative change has taken place, there has been no quantitative change. This is because all the quantitative change has taken place outside the purview of the commodity sellers — outside of exchange.

Everything which, from the standpoint of the law of value, appears as a necessary result of the improvement in the productivity of social labor, appears to the society of commodity sellers in its inverse form: theoretically, there is creation of surplus value, but, empirically there is “not enough money in circulation”. Society is constantly threaten by overproduction and crises.

The entirety of the reality of the material relations of production is hidden behind money, not only from the capitalist but also the worker. Both classes are fucking clueless. And, they are engaged in this meaningless, never-ending, commercial squabble over terms of a filthy transaction. But, as repulsive as the relationship is, they are both trapped in it: without it, the capitalist cannot be a capitalist, while the worker starves.

The reproduction of the relation, the purchase/sale of labor power, is their entire, and intimately shared, basis for existence. And, as Engels shows, and many writers like Kevin Carson recount, the relationship becomes increasingly dependent on the state. Now let’s look again at the quote from Engels, I referred to in the previous part of this series:

But, the transformation — either into joint-stock companies and trusts, or into State-ownership — does not do away with the capitalistic nature of the productive forces. In the joint-stock companies and trusts, this is obvious. And the modern State, again, is only the organization that bourgeois society takes on in order to support the external conditions [my emphasis] of the capitalist mode of production against the encroachments as well of the workers as of individual capitalists. The modern state, no matter what its form, is essentially a capitalist machine — the state of the capitalists, the ideal personification of the total national capital. The more it proceeds to the taking over of productive forces, the more does it actually become the national capitalist, the more citizens does it exploit. The workers remain wage-workers — proletarians. The capitalist relation is not done away with. It is, rather, brought to a head. But, brought to a head, it topples over. State-ownership of the productive forces is not the solution of the conflict, but concealed within it are the technical conditions that form the elements of that solution.

What Engels is predicting here is an Event: that impending convergence of the purely commercial relation between the wage worker and the capitalist over the purchase/sale of labor power, with the incremental expansion of state management of the process of production itself. Stated simply: in 1880, Engels was predicting that the purely commercial conflict between the two great classes would be converted by the convergence with increasing state control over production into a directly political struggle — into a direct fight against the national — i.e., social — capitalist, the state.

In 1929, capitalism enters its end-stage, and becomes absolutely dependent on the State. The state, in turn, becomes the fascist state, representing not capitalist or worker, but Capital — the relationship itself. And, this happen 50 years after Engels wrote these words:

“The more it proceeds to the taking over of productive forces, the more does it actually become the national capitalist…”

From the moment this process culminates, the capitalist class is a side-show, lacking any real role in production beyond clipping coupons. Everything is being managed by the state. The fight against capital is now immediately political — expressed directly in the conflict with the state itself.

The Black Hole: Marxism, the State and the Social Revolution

August 8, 2011 Leave a comment

Louis Althusser

There is a massive black hole in the center of Marxism that cannot be ignored, since it touches on the question of social revolution itself. That question can be posed this way: What happened to the Soviet Union? But, the better formulation is this:

Why didn’t the Great Depression touch off a revolution in the West?

Numerous explanations of this failure have been offered by commentators of every variety within and without Marxism. During the Great Depression, it is clear, capitalism suffered an irreversible breakdown due to absolute over-accumulation. And, it is also clear that effective control over the state was already in the hands of the proletarian majority through its suffrage. Moreover, as now, the solution to the general crisis of capitalism was already obvious, and universally recognized: reduction of labor hours.

The principal explanations now fashionable within Marxism deny one or more of these facts. They propose: There is,

  1. no general crisis; or,
  2. no effective control over state power by the proletariat; or,
  3. that reduction of hours of labor will not work.

Every one of these explanations violate the assumptions of historical materialism.

If you deny there is a general crisis of capitalism, you are making the argument there can be absolute over-accumulation in one country leading to export of capital to the less developed regions of the world market, but there cannot be absolute over-accumulation in the world market itself. And, since Lenin’s theses on imperialism is entirely based on the concept of global over-accumulation, you have to reject his conclusions. Not too mention a materialist explanation of the more than 130 million dead in two world conflicts and the numerous conflicts following this.

If you want to deny universal suffrage of the proletarian majority is the sufficient condition for its effective political rule you must then impose conditions on this rule other than those that stem from its material position in society. You must then deny Marx’s thesis that the proletariat’s historical mission stems from who they are, not what they think. This position, as in the “Bolshevik model”, denies the capacity of the proletariat to empirically determine their own role in history.

Lenin advances the “Bolshevik Model” in “What is to be Done.” Which, I think, is a reaction to social-democratic reformism. No matter what the cause, this idea becomes embedded in Marxism so firmly that it has been enshrined as the concept of “vanguard party”. Anarchists rightly ridicule this by pointing out Marxism leads either to reformist social-democracy or despotic Leninism.

On the other hand, Marxism borrows from the argument of Anarchists like Noam Chomsky that, somehow, the effective power of the proletariat is a manufactured consent — the working class is indoctrinated. Their leaders are bribed, their organizations are co-opted, and their reality is hidden from them by deceptions spread in the media.

Finally if you deny reduction of hours of labor is the only solution to the general crisis of capitalism you can’t explain the fascist state. The fascist state emerges simultaneously in all industrial nations during the Great Depression despite their numerous historical differences. It clearly emerges as the political response to the general crisis, which is nothing more than massive unemployment a glut of productive capacity and intense competition between national capitals over division of the world market.

But, absolute over-accumulation is just accumulation of capital that can no longer function as capital that cannot expand its own value through exploitation of labor power, cannot realize the surplus value extracted as profit. It takes the form of a mass of superfluous means of subsistence, means of production, and idled workers, who are now available for war.

This surplus of mean of subsistence, means of production and idled workers is produced during the period of the social work day beyond that required for the wages of the productively employed population. Absolute over-accumulation simply means the work day can’t be longer than that needed to satisfy the material requirements of the laborers.

I think, any attempt to explain why the Great Depression did not end in a social revolution must begin with these assumptions. This explanation must, at the same time, account for the failure of the Marxist-Leninist model of revolution. The first failure is only the second failure presented in another form.

We can probably best begin to account for what happened during the Great Depression by examining the flaws in the Marxist theory of the state. For this, I want to use Althusser’s 1970 work, Ideology and Ideological State Apparatuses.

Althusser has this formulation of the ‘Marxist theory of the state’ (the quotation marks are his, not mine):

To summarize the ‘Marxist theory of the state’ on this point, it can be said that the Marxist classics have always claimed that (1) the state is the repressive state apparatus, (2) state power and state apparatus must be distinguished, (3) the objective of the class struggle concerns state power, and in consequence the use of the state apparatus by the classes (or alliance of classes or of fractions of classes) holding state power as a function of their class objectives, and (4) the proletariat must seize state power in order to destroy the existing bourgeois state apparatus and, in a first phase, replace it with a quite different, proletarian, state apparatus, then in later phases set in motion a radical process, that of the destruction of the state (the end of state power, the end of every state apparatus).

The problem with this statement by Althusser of the ‘Marxist theory of the state’ is that it is a fantasy; and is not historical materialism. To figure out why, we have to work backwards in Althusser’s formulation — from (4) to (1)

With regards to (4), I have never encountered the formulation in Marx or Engels that the workers replace the bourgeois state apparatus with their own. In fact, I have never encountered Marx or Engels speaking of any state apparatus but the present bourgeois state apparatus. And, their verdict on this, based on the Commune, was definitive: It must be broken.

Not reformed, not replaced, not refurbished — broken.

What made the proletarian state power different from all preceding forms is that this apparatus itself was abolished at the outset. The Anarchists of the Commune replaced it with a working body combining both deliberative and executive functions. Marx could have differed with this, but he explicitly did not — he endorsed it.

With deliberative and executive functions combined, there is no state apparatus as distinct from state power. But, the present state consists of this division — of a useless legislative body and power concentrated in the executive. Since, there was no stand-alone executive in the Commune, the idea that the state is destroyed only in later phases is complete bunk. For this reason, Marx referred to what Anarchists created in the commune as no longer a state.

This has to be emphasized: Marx looked at what the Communards created and said it was NOT a state.

And why was this: because the Anarchists had abolished the historical division between the executive and deliberative functions of the state. The new society was itself both the deliberative body and the means for executing its decisions. In both the Soviet despotic and the Western democratic forms of proletarian rule, we find exactly that this division is not done away with.

In (3), Althusser argues that the objective of the class struggle is to wield the state apparatus as a function of class objectives. But, as early as 1845, in The German Ideology, Marx described the proletariat as a class which was not a class, but the dissolution of other classes. In 1851 work, Reflections on Money, he explains how money relations conceal relations of production and classes.

Both classes shop the same stores, pay the same prices for the same goods — the only apparent difference is the amount of money in their wallets. While material relations of production determine society, these relations are buried deep beneath purely monetary ones. Given that, for the proletariat, it is not a class in any real sense, and given that its relation to other classes is concealed from it how is historical materialism to conclude that the proletariat wields state power as a function of its class objectives?

Since all interests are only interests in the exploitation of labor under given relations, how is labor itself to express such an interest? Against what class is this interest to be expressed other than itself?

In (2), Althusser expresses the opinion that state power and state apparatus must be distinguished. So, how are we to do this? Until the Commune had state power ever been exercised in any other form than through the state apparatus? Was there a discovery in 1970 of some epoch in which the state power of the ruling class was exercised directly and not through an apparatus?

Althusser is wrong on this, I think.

Throughout history, state power has consisted of an armed body of men to enforce the domination of the existing ruling class. This special interest, which having raised itself to position of the general interest, must become the objective of all special interests seeking to impose themselves on society as the general interest. The competition between classes over control of this apparatus only expresses the fact that the history of society is the succession of one after another special interests.

In (1), Althusser defines the state as “the repressive state apparatus”. But, Engels, in his 1880 work, Socialism: Utopian and Scientific, is already describing the state as much more than this: “The modern state, no matter what its form, is essentially a capitalist machine — the state of the capitalists, the ideal personification of the total national capital.”

If the crises demonstrate the incapacity of the bourgeoisie for managing any longer modern productive forces, the transformation of the great establishments for production and distribution into joint-stock companies, trusts, and State property, show how unnecessary the bourgeoisie are for that purpose. All the social functions of the capitalist has no further social function than that of pocketing dividends, tearing off coupons, and gambling on the Stock Exchange, where the different capitalists despoil one another of their capital. At first, the capitalistic mode of production forces out the workers. Now, it forces out the capitalists, and reduces them, just as it reduced the workers, to the ranks of the surplus-population, although not immediately into those of the industrial reserve army.

But, the transformation — either into joint-stock companies and trusts, or into State-ownership — does not do away with the capitalistic nature of the productive forces. In the joint-stock companies and trusts, this is obvious. And the modern State, again, is only the organization that bourgeois society takes on in order to support the external conditions of the capitalist mode of production against the encroachments as well of the workers as of individual capitalists. The modern state, no matter what its form, is essentially a capitalist machine — the state of the capitalists, the ideal personification of the total national capital. The more it proceeds to the taking over of productive forces, the more does it actually become the national capitalist, the more citizens does it exploit. The workers remain wage-workers — proletarians. The capitalist relation is not done away with. It is, rather, brought to a head. But, brought to a head, it topples over. State-ownership of the productive forces is not the solution of the conflict, but concealed within it are the technical conditions that form the elements of that solution.

Already, under the pressure of the capitalist mode of production, the state was undergoing a profound transformation. The state was not eclipsing the two great classes in bourgeois society, but coming more to function as the social capitalist.