Part Three: Conceived in Nazi Germany, Born in the USA
The search for a solution to the financial crisis
You probably are not aware of this, but in 2008-2009, when the world market faced its darkest hours of the financial crisis, the attention of many mainstream economists, who were desperately looking for a way out of that mess, turned to the halcyon years of the early Nazi regime. Yep, that’s right — economists scrambled to study fucking Nazi economic policies. Most Marxists don’t realize this, but the template for their cherished “social state” was the Nazi policies of the Great Depression.
Really, I am not making this up. Have a look at this quite interesting article from the New York Times in 2009:
“Every so often, history serves up an analogy that’s uncomfortable, a little distracting and yet still very relevant. In the summer of 1933, just as they will do on Thursday, heads of government and their finance ministers met in London to talk about a global economic crisis. They accomplished little and went home to battle the crisis in their own ways. More than any other country, Germany — Nazi Germany — then set out on a serious stimulus program. The government built up the military, expanded the autobahn, put up stadiums for the 1936 Berlin Olympics and built monuments to the Nazi Party across Munich and Berlin.”
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.
Or, why Zizek believed, ‘We must not succumb to the temptation to act’
Between Kliman’s critique of the Occupy movement, Ollman’s critique of Marx on working class consciousness and Zizek’s critique of Negri, I notice something of a pattern. Ollman in his piece, which I examined in my last blog, argues “between determining conditions and determined response is the class consciousness of the actors”. Action without this class consciousness is insufficient to accomplish the revolutionary project.
Similarly, in his 2001 critique of Negri, Zizek warns us not to yield to the temptation to act without questioning the hegemonic ideological coordinates because, as he argues,
“If, today, one follows a direct call to act, this act will not be performed in an empty space”.
The space within which we act is dominated by the “liberal-parliamentary consensus” where the only rule is “say and write whatever you want-on condition that what you do does not effectively question or disturb the predominant political consensus.” To act against existing social relations without calling into question the political expression of these social relations is not sufficient.
As part of my continuing occupation of the Marxist Academy, I have been looking at various Marxist theories of the crisis of neoliberalism. I am now reading the late Chris Harman’s “The rate of profit and the world today”, written in 2007, just prior to the big crash. This is part two of my examination.
Before we go any further, let me reiterate one thing: In Marx’s theory, the law of the falling rate of profit is not expressed in “stagnation of economic growth” directly or indirectly. The so-called “stagnation thesis” appears no where in the body of Karl Marx’s works on the capitalist mode of production spanning more than 40 years. Nor does it appear in any of Frederick Engels works on the same subject spanning nearly fifty-five years. It is not even an indirect result of the laws of motion of the capitalist mode of production. Moreover, in addition to the idea of “stagnation“, no Marxist can point to a single reference in the collective body of work by these two writers — together amounting to a century of research and publication — where either the terms “financialization” or “globalization” appear.
So, why the fuck are Marxist academics trying to explain these nonexistent phenomena? I think the answer to that question is simple: they are trying to explain stagnation, financialization and globalization because they can’t explain this:
As part of my continuing occupation of the Marxist Academy, I have been looking at various Marxist theories of the crisis of neoliberalism. I am now reading the late Chris Harman’s “The rate of profit and the world today”, written in 2007, just prior to the big crash.
Harman appears to be one of a group of the influential Marxist thinkers in the last quarter of the 20th Century, and especially the period leading to this crisis, who helped refocus Marxist academic attention to Marx’s rate of profit theory. In this paper, to some extent an outline of his book, published in 2009, on the same topic in the middle of the crash, Harman presents the result of his research on the rate of profit and offers some ideas to explain his findings.
In Harman’s view Marx’s argument that the rate of profit falls over the life of capitalism has far reaching implications because it argues capitalist crises result, not from some sort of failure in the mode of production, but from its successes:
The very success of capitalism at accumulating leads to problems for further accumulation. Crisis is the inevitable outcome, as capitalists in key sections of the economy no longer have a rate of profit sufficient to cover their investments. And the greater the scale of past accumulation, the deeper the crises will be.
For some reason Harman does not follow up on this very interesting argument — if in fact capitalism’s crises are not a sign of failure but a sign of success, this indicates capitalist crises themselves should not be the focus of attention when studying the mode of production.
Crises are no more than a interval during which the mode of production resolves the contradictions produced by its previous successes. As such, these crises cannot be the reason why Marx labeled the mode of production a relative, historically limited, form of development. While the recurrent crises of increasing scale demand our attention because they momentarily bring economic activity to a near standstill these crises in no way are the source of processes leading Marx to his conclusion regarding the fate of the mode of production.
The conclusion resulting from this realization are pretty staggering: for all of its social consequences, the depression of 2001 is not the harbinger of the demise of capitalism, but an interval during which the mode of production prepares for its further expansion. This may explain why Marxists, when looking at the recurrent explosions of capitalism, see no reason why they cannot continue indefinitely.
They are looking at the wrong thing.
As part of my continuing occupation of the Marxist Academy, I have been looking at various Marxist theories of the crisis of neoliberalism. This is the final part of my critique of Andrew Kliman’s “Neoliberalism, Financialization, and the Underlying Crisis of Capitalist Production” (PDF).
As can be seen in the chart above, most bourgeois economists look at fascist state economic data and conclude we are experiencing nothing like the sort of economic event that occurred in the Great Depression. The Great Depression was just that — a depression — while what we are experiencing is perhaps a more severe than normal recession generated in the aftermath of a financial crisis. For the bourgeois economist this description of the situation may or may not be entirely satisfactory.
For anyone attempting to understand the fascist state economic data using Marx’s theory of the capitalist mode of production it is less than worthless — it can turn Marx’s theory into a useless glob of shit that describes nothing — least of all what is occurring within the capitalist mode of production.
There is a lot of material out there produced by Marxists trying to get their head around Neoliberalism and its role in the current crisis. So as part of my Occupy the Marxist Academy I am going to do a few posts on it.
First up: Alfredo Saad-Filho’s “Neoliberalism in Crisis: A Marxist Analysis”, which can be found here. Saad-Filho argues Neoliberalism is not simply an ideology or a set of policies, but the “current configuration” of capitalist accumulation. In particular, Neoliberalism is a response to the “structural problems of capitalist reproduction after the displacement of Keynesianism”.