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Guglielmo Carchedi’s bad advice for activists

December 16, 2012 Leave a comment

kelley

Keynesian economic policies don’t work, but fighting for these policies will?

Guglielmo Carchedi’s essay on the so-called Marxist multiplier has me bugging. He is handing out bad advice to activists in the social movements and telling them this bad advice is based on Marx’s labor theory of value. The bad advice can be summed up concisely: Keynesian policies do not work and cannot work, but the fight for these policies (as opposed to neoliberal policies) can help end capitalism:

From the Marxist perspective, the struggle for the improvement of labour’s lot and the sedimentation and accumulation of labour’s antagonistic consciousness and power through this struggle should be two sides of the same coin. This is their real importance. They cannot end the slump but they can surely improve labour’s conditions and, given the proper perspective, foster the end of capitalism.

Frankly, Carchedi’s advice is the Marxist academy’s equivalent of medical malpractice. (For the record, Michael Robert’s has his own take on the discussion raised by Carchedi’s essay.)

Read more…

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Class War in Madison? Not so fast… (Final thoughts)

March 9, 2011 1 comment

The argument i have tried to make in the previous parts of this series ( one, two, three and ) is simple: What is taking place in the battle in Wisconsin, and the battle against austerity generally has nothing to do with Capital directly, but instead is concerned with the massive population of working people rendered completely redundant by the progress of Capital’s development, and a huge mass of capital that must stand idle as a result of this progress. The specific problem at hand is that under existing social conditions this idle capital and redundant population can only be employed if the capital is wasted, consumed unproductively and absorbed by a population of working people whose daily labor creates nothing, satisfies no human need — not even their own.

This catastrophe expresses itself, first, in the monstrously bloated body of the State that grows to such proportion that it chokes off the employment of the productive capacity of society; and, second, that the State, however bizarrely swollen — as can be seen in the US accounting for 48% of global defense expenditures — is still not bloated enough; that it has not, despite the glaring obscenity of such wasteful spending in the face of growing poverty, grown to the proportion necessary to ensure the continuing purchase and sale of labor power, i.e., to ensure employment of capital for the extraction of surplus value.

The first aspect of this crisis, however, can only be resolved by the further expansion of the State — on pain of a growing class conflict and to suppress this conflict — and not through austerity. So it is not surprising that politicians, acting under the slogan “Jobs, Jobs, Jobs”, blindly offer every manner of silly and contradictory policies to effect this expansion: tax increases and tax reductions; new public debt issues and urgent calls to balance the budget; committees formed composed of senior politicians and academics, corporate CEOs, and wealthy contributors to discuss “investment” in public education, infrastructure and new technologies said to offer society the opportunity to “win the future”, and, at the same time, efforts to dismantle existing State public services, and protections for workers and the environment. In short, a relentless effort by the capitalists to dump the entire burden of the crisis onto the shoulders of working women and men; and, an equally vigorous struggle by working people to avoid this burden.

The second aspect of this crisis places a material demand on the State to increase its burden on society. For all the bleating of politicians about how the country must increase its competitiveness the State grows, but it grows in a way that does not add to the productive capacity of society in any fashion. The nation must become poorer not richer as a result of this growth, less productive, less competitive, more dependent on imports from nations where the continuing employment of oxen in agriculture is not uncommon, and where — owing to the low productivity of labor — daily wages are a fraction of the American average hourly wage.

The method employed by the State to increase its size and overcome the rising antagonism between production and consumption, no matter whether the method adopted is the issuance of new public debt — as advocated by Keynesians like Paul Krugman — or the wholesale creation of new money directly through State expenditures — as advocated by Modern Monetary Theorists like Billy Mitchell — is depreciation of money; a depreciation that is only possible because the State previously debased money from the gold standard.

No other object in society touches on commodities more intimately than the ratio by which these commodities exchange for money itself. Absent crises, Capital presents itself in the form of the ceaseless, uninterrupted, and expanding dense network of interrelated transactions whereby money and commodities are exchanged — and within which any particular commodity may pass through many such transactions before falling out of circulation and being consumed.

However, what concerns every member of society is that she receives some definite amount of money in return for her commodity. If she is a worker, she seeks only an agreed upon wage; if she is a capitalist, she seeks only a return of her capital plus an average rate of profit in the form of some definite quantity of money. With its authority to determine what serves as money, the State can “purchase” the labor power of a worker, or the commodity of the capitalist by exchanging these commodities for money created out of thin air.

Thus, the ratio between the sum of money in circulation and the sum of commodities in circulation is upset in proportion to the injection of the new ex nihilo pecuniam; while, on the other hand, a portion of the existing capital and labor power in circulation is consumed without being replaced. The total sum of commodities in circulation are reduced, and the prices of the remaining commodities increase. In this way, both the existing capital and labor power are devalued simultaneously and together in proportion as the expenditures of the State increase.

Yet, despite this devaluation of the existing capital and labor power by the State, it should not be forgotten that devaluation must take place on any account. It is not the State that forces this devaluation on Capital, but Capital which forces it on itself. The antagonism between the conditions of production and those of consumption are such that without this devaluation Capital would altogether collapse in on itself.

The fact stands as follows: the problem posed by the antagonism between the conditions under which society produces and consumes cannot be resolved in any way other than a general reduction of hours of work. Absent this general reduction of hours of work it becomes necessary for the State to increase its expenditures of wholly superfluous employment of both capital and labor power — to devalue both through inflation in order to overcome the contradictions inherent in the capitalist mode of production itself.

We who favor a stateless society should be absolutely clear on these points and never back down from them:

First, the State does not grow to care for the sick, feed the hungry, or add to and repair the roads, bridges and communications of society. It grows DESPITE these pressing social needs. Only by wasting productive resources on an ever increasing scale can any economic activity take place on the existing basis — the State indeed grows, but so do all of these nagging social ills.

Second, thirty million are unemployed not because there is no work to be done, but because it is not profitable to do those things that need to be done given the overly long hours work mandated by law. Factories are shuttered not because there is no need for their products, but because satisfying those needs intensifies the problem of recovering the capital laid out in their production plus an average rate of profit. The further expansion of the State addresses these problems only by intensifying them — by bringing into still greater antagonism the contradiction between production and consumption.

Should the thirty million unemployed find jobs it is only on the basis that their addition to the labor force comes directly or indirectly at the expense of the wages of the already employed 130 million, such that this larger labor force of 160 million now enjoy no more wages (or even less wages) than the 130 million did before — that the total wages formerly shared by the 130 million is now shared by 160 million, so that each suffers a proportional drop in their material standard of living.

There is no route out of this crisis through State economic policy: not through senseless battles to defend the coddled unions in the public sector, nor by stupid progressive slogans to tax the rich. The struggle against austerity cannot be won by defending the public unions, nor by silly attempts hold the line on public budget cuts or increase State expenditures. Only by reducing hours of work can we extricate ourselves from the deepening crisis of Capital and the relentless expansion of the repressive, aggressive and parasitic State.

Eleven points on productive and unproductive labor

March 4, 2011 Leave a comment

From the standpoint of Capital, productive labor is solely that labor that produces surplus value. For my purpose, unproductive labor is identical with superfluous labor — i.e., expended labor that is not undertaken for the purpose of producing surplus value.

1. The mass of unproductively employed labor-power cannot exceed the mass of surplus value produced by the productively employed labor power, and it depends on the growth of the mass of surplus value for its own growth.

2. While the rate of profit is decreasing, the rate of surplus value is increasing

3. While the rate of profit is less than the rate of surplus value, superfluous labor presupposes that both the rate of profit and the absolute mass of profit is less than the rate and absolute mass of surplus value.

4. The mass of surplus value, therefore, must not only be greater than the mass of profits, but the difference between the two grows faster than the rate of surplus value.

5. From the mass of surplus value, however, we must also deduct the mass of profit. Thus the mass of unproductively employed labor-power cannot exceed the mass of surplus value produced by the productively employed labor power minus the mass of profits.

6. Unproductively employed labor-power can only increase to the limit imposed by the average rate of profit such that the mass of profits itself is increasing despite the fall in the average rate of profit — although the rate of profit  (s/v+c) is declining, nevertheless it is increasing in absolute mass.

7. Both the mass and the rate of surplus value is increasing, but an increasing portion of this produced surplus value is realized only on condition that it is consumed unproductively; leaving an ever smaller proportion to reenter circulation as capital.

8. The mass of surplus produced increases, but the amount of this surplus which is consumed unproductively increases still faster, i.e., the rate at which superfluous labor increases is greater than the rate of surplus value — and this is true even given the extension into fresh areas of the World Market.

9. Once the entirety of the surplus product can no longer enter into circulation as capital, the rate and mass of profit must equal zero.

10. Once the rate and mass of profit falls to zero, both the rate and the mass of surplus value must fall to zero — i.e., the production of surplus value comes to a standstill.

11. At some point before this, the mass of profits absolutely decreases, along with the rate of profit — or, what is the same thing, even for the very biggest capitals the mass of profits no longer compensates for the falling rate of profit.

Class War in Madison? Not so fast… (Part four)

March 2, 2011 Leave a comment

In part one, two and three, I have made several observations which can be summarized this way:

First, the argument that the event unfolding in Wisconsin, Ohio and other states are a battle over public union rights is disproved once we realize that these public unions are not and never were unions. The public unions are organs of the State, no different than the unions of the old Soviet Union, or the People’s Republic of China — organs for the management of public labor, entirely composed of a portion of the working class who, under this miserable mode of production, live on the surplus labor of the productively employed portion of that class. Although we may violently disagree with Walker and his political thugs, we still must acknowledge that the fight to defend the unions is essentially, and for all practical purposes, nothing more than a fight to defend the State itself and its parasitic domination of society.

Second, by the same token, without in any way standing with capitalists like the Koch Brothers, the argument that, in their hostility to the burden of the State, the Koch Brothers’ libertarian attitudes differ significantly from working class dissatisfaction with the burden of the State is belied by the very slogan raised by supporters of the working class themselves, “Make the Rich Pay”. Although the Left makes the argument that the hostility of capitalists like the Koch Brothers to the State is unique to the capitalist class, in the very slogans they raise the Left actually acknowledge this same hostility to the State among the working class. Neither of the two classes want to bear this burden; particularly in times of economic distress every member of society seeks to minimize the tax bite of the State. This reaction from the mass of the working class was entirely predictable, and explains the reluctance of writers like Felix Dzerzhinsky to wage the battle over austerity on the flimsy basis of defense of the public unions.

I now turn to the question of how this fight must resolve itself, and why, as events are proving in both the United Kingdom and Ireland, the austerity currently being pursued by Walker cannot work.

While the battle over the burden of the State on society assumes the form of a conflict between the classes over how this burden should be distributed, it would be wrong to say the events in Wisconsin arise from the conflict among members of society over the division of this burden between the two classes; rather, the truth is precisely the opposite: the conflict between the two classes produces a tendency toward the expansion of the State. We should not mistake the two: what is expressed in the austerity battle is not the conflict between the two classes, but their common hostility to the burden of the State; but, this ever expanding State is itself only the general social expression of the irreconcilable conflict between the two classes. The State is at once both the constantly expanding expression of the conflict between the two classes and a burden on them that each tries to cast off.

These two aspects of the relation between the State and society do not simply exist side by side, but influence each other: on the one hand, the growing conflict between the two classes presupposes the growing fascist character of the State — what Marx refers to as the employment of “democratic-republican institutions .. as a means, not of doing away with two extremes, capital and wage labor, but of weakening their antagonism and transforming it into harmony.” This implies the constant expansion of the State. On the other hand, this growing domination increases the burden of the State on society, and, therefore, the conflict between the two classes over the division of this burden; as well as the more or less constant struggle by each class to cast that burden off entirely.

At the same time, since the expansion of the State is the increasingly necessary condition for the relation between the two classes — the increasingly necessary condition for the purchase and sale of labor-power, without which neither class can exist; and which implies the further reproduction of all the fundamental contradictions within Capital on an increasing scale — the expansion of the State presupposes the further immiseration of the mass of workers and the further centralization and concentration of capital into fewer hands. Any given expansion of the State, therefore, is always insufficient, and merely intensifies the inherent tendency toward the law of the falling rate of profit even as it works to counter this tendency; producing still more pressure for the further expansion of the State and of the World Market. Each new expansion of the State and of the World Market merely compels the further expansion of both.

What makes this a crisis of the State, i.e., something more than a mere economic crisis, is that it presupposes certain definite economic conditions which, on the one hand, cannot be resolved simply by austerity, i.e., reducing the total wages of the working class, as might be sought by capitalists like the Koch Brothers; nor, on the other hand, can it be resolved simply by reducing or taxing the excessive profits of capital, as is demanded in the sophomoric slogan, “Make the Rich Pay”. Only by imposing such conditions as reduce both the mass of wages and the mass of profits together and simultaneously — that is, by the devaluation of both variable and constant capital — through the expansion of purely wasteful State expenditures — by the still greater accumulation of absolutely superfluous labor; of labor-power that neither serves to produce new value, nor, on this basis, as self-expanding value, as capital — is the resolution of the crisis possible.

If those who want a stateless society are to offer a way out of this nightmare, it can be done only on the basis of a clear-headed understanding of the unfolding process. We cannot simply base our advice to working men and women on stupid progressive slogans. And, this is the subject of the final part of this series.

To be continued