Posts Tagged ‘The State’

Cat Brain at Work: How Chris Harman explains the “Marxist theory of stagnation”

April 6, 2012 Leave a comment

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:

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Chasing Unicorns: Chris Harman and the “Marxist theory of stagnation”

April 4, 2012 2 comments

"Friesian Unicorn" by Katrina Lasky

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.

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Marxist Academic Error 101: “A term is undefined and has no properties”

March 29, 2012 1 comment

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.

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Theories of the Current Crisis: David Harvey and the Left’s search for a new master

March 4, 2012 1 comment

I have been reading David Harvey’s “Organizing for the Anti-Capitalist Transition” (2010). Harvey’s theory of the current crisis differs somewhat from the other Marxists I have been following. I actually rather enjoyed reading Harvey because he is simple to read without being simplistic like Wolff’s and Resnick’s piece. Harvey gave this originally as a talk to the World Social Forum in 2010,

Harvey opens his talk by stating boldly:

The historical geography of capitalist development is at a key inflexion point in which the geographical configurations of power are rapidly shifting at the very moment when the temporal dynamic is facing very serious constraints.  Three percent compound growth (generally considered the minimum satisfactory growth rate for a healthy capitalist economy) is becoming less and less feasible to sustain without resort to all manner of fictions (such as those that have characterized asset markets and financial affairs over the last two decades). There are good reasons to believe that there is no alternative to a new global order of governance that will eventually have to manage the transition to a zero growth economy.

I liked his argument here, but, I think, he could have clarified things by explaining what he meant by “three percent compound growth…” Growth is one of those terms from bourgeois economics that has been adopted into the lexicon of Marxism as a category without critical examination. When Harvey then proposes that “compound growth” must sooner or later give way to “zero growth”, he unwittingly injures his own argument.

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Theories of the Current Crisis: John O’Connor, Neoliberalism and the Long Painful Death of the Nation State

February 25, 2012 1 comment

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.

Frederick Engels, Socialism: Utopian and Scientific

I am now reading John O’Connor’s “Marxism and the Three Movements of Neoliberalism” (PDF)

O’Connor proposes what he calls a “Marxian conceptual and empirical framework for understanding the disparate research on neoliberalism”. As with Saad-Filho’s work, John O’Connor’s is deeply flawed and is not in any fashion based on Marx’s theory of the Capitalist mode of production. Rather than an exercise in historical materialist analysis, O’Connor serves up a rehash of progressive nostalgia for a mythical pre-1970s Keynesian social compact, combined with a laundry list of ideological and policy crimes by the Neoliberal world order. We end with no more understanding of this thing, Neoliberalism, within the context of history, than we did at the beginning. O’Connor fails the essential test of the historical materialist critique of the capitalist mode of production.

If Neoliberalism is simply an ideological, policy, or governance construct, why is this construct the necessary form of ideology, policy and governance at this stage of development of the mode of production?

Fascism and the Myth of Keynesian Social Accommodation

For some strange reason, O’Connor arbitrarily begins his narrative in 1950 — completely bypassing a decade of depression ending in world war . He wants us to ignore this catastrophe and the war of redivision of the planet that ended in the destruction of much of Europe and Japan — 80 million dead and the productive capacity of Europe and Japan laying in ruins. He also wants us to ignore the rise of the fascist state and the debasement of currency that made that war possible. This allows him to portray the period roughly from 1950 to 1974 as a “Golden Age of Capitalism” following Glyn and Hosbawm.

Completely ignoring the fact that Europe and Japan lay in ruins at the end of the war — and, therefore, that any measure of post-war expansion begins from a base determined by this previous horrific loss of productive capacity — O’Connor tells us the “post-war economic boom was exceptional in capitalist history for its explosive growth, high profits, technological innovation, and reliance on government policy.” This last thing “reliance on government policy” is the kicker, because O’Connor is now going to use it as a crutch to get him to 1974. The “Golden Age” was made possible by two things: class accommodation at home and state involvement in the accumulation process. We don’t get any critical look at this so-called class accommodation nor state involvement in the accumulation process. In fact, both are filler material, placed there solely to let O’Connor to segue into the “crisis” of 1974-82. With this filler material O’Connor can stuff in the typical myth-story about a “Golden Age”” which he finds already present in our national political discourse.

Gone is the Great Depression, the debasement of the currency and the rise of the fascist state, the catastrophic wars of the 30s and 40s, US aggression in Korea, and a series of other police actions and coups, the red scare, the arms race, the Suez incident, Vietnam and the horrors of the United States’ Southeast Asian murderous rampage. What was blood red in reality, becomes a hazy faint shade of pink in O’Connor’s make-believe world of “I Love Lucy”. At some point, someone is going to have to call Marxists out on their patriarchal, racist, elitist, Anglocentric, rewrite of history. Frankly, the shit is just fucking unnerving — there was no “Golden Age” of capitalism! For John O’Connor, Saad-Filho, Richard Wolff and the rest of the Marxist Academy to continue referring to this myth is just bizarre!

The period under question begins not in 1950, but in 1929 with the collapse of capitalism world-wide, from which capitalism never recovered. Rather, all industrial states stepped in as the national capitalist and immediately imposed a continuous wage reduction regime across the board on their respective working classes in a ruthless act of class warfare. Then each fascist state turned on its neighbors and slaughtered everyone they could get their hands on in an orgy of bloodletting. It wasn’t enough to kill them — NO! — they then leveled their cities, destroyed their  factories and productive capacity, and stole their resources to starve them out.

You want to see the “Golden Age” of Keyesianism — just look at World War II. Thanks to Lord Keynes the United States was able to devote 40% of its GDP to slaughter and pillage, and still have “economic growth”. In the United States alone 1500 factories were built from scratch to murder strangers — not feed them and ourselves. Sixteen million men were withdrawn from all productive labor and sent to murder, fully outfitted and fed by American industry — the same American industry which, just months earlier, could neither hire nor feed them — that’s your fucking Keynesian “Golden Age”, bitches.

The insult to the 100 million dead in two global wars of redivision cannot be worst than out of the mouth of a Marxist who states, as John O’Connor does, “the USA and Britain took steps to ensure that a stable liberal world order was recreated”.

The Second Great Depression

Having used this “Golden Age” of capitalism as a crutch to get him to 1974, O’Connor misses the beginning of the crisis in the 1960s. Had he done the least bit of analysis on the period 1929 to 1950 he might have noticed a little event called debasement of the currency. With this debasement, and the devaluation of wages by 70% that accompanied it, American capitalism went through an expansion phase. That expansion was not just fueled by the devaluation of wages, but also the war expenditures of World War II and the absorption of a hefty section of post-war Europe and Japan into the newly emerging fascist American Empire. This expansion phase comes to a head not in 1974, but in the mid-sixties with the collapse of the London gold pool in 1968 (pdf) , which facilitated manipulation of gold bullion price and allowed the US to share in the extraction of surplus value wrung from the European and Japan working classes — the so-called “exorbitant privilege”, a term coined by the French. (Of course, since Marxists are MARXist in name only, they have ignored the implications of the French critique.)

The crisis begins in the mid-sixties with a run on US gold reserves, and culminates in the collapse of Bretton Woods, and the end of dollar convertibility for settling international obligations. But this is just its superficial expression — what really happened is that the new productive capacity of Europe and Japan came online. For a period this overaccumulation was disguised by the murderous war on Vietnam and the swelling of American domestic spending to stem protests. But all of this comes to a head with the opening moments of the Second Great Depression of the 20th Century — the Great Stagflation. This depression triggers the collapse of Bretton Woods and the end of dollar convertibility by the Nixon administration. And it occurs not in 1974 but years earlier, although the actual expression of this crisis in unemployment is itself triggered by the massive inflation that occurs as Washington tries desperately to spend its way out of the contraction. Those of a certain age will remember Nixon declaring fatuously, “I am now a Keynesian in economics”.

The attempt to slow the contraction by a massive expansion of government spending ultimately fails and the Federal Reserve has to choke off credit in the midst of a depression to slow the inflation of prices. Nixon is gone, Gerald Ford is running around handing out “Whip Inflation Now” (WIN) buttons, and the Fed is trying to douse inflation with unemployment. None of this has any effect on the depression, however, which continues unabated for the next five or six years  — in other words Keynesian economic policy is overcome by the growing productive capacity of society and the dissolution of nation-state economic management begins.

Only at this point do we finally reach O’Connor’s dating of the initial emergence of what eventually becomes neoliberalism — the crisis has, by this time, gone on for nearly a decade.

Neoliberalism and the Demise of the Nation State

The easiest way to understand neoliberalism is to understand exactly what the fascist state accomplished that can now only be accomplished by its demise. The success of the fascist states rested on what O’Connor terms a “distinct structural, institutional, and class foundation.”

This state led monopoly capitalism, as described by Fine and Harris (1979), was marked by the socialization of economic activity, in which the state took an active role in the accumulation process. Economic socialization helped offset the unproductive costs of accumulation and the reproduction of the labor force (Gough and Eisenschitz 1996). Through a wide variety of non-market mechanisms, the state balanced the social nature of production with the private appropriation of capital.

Okay, I admit I haven’t a clue what this means — so I am going to parse it.

“State led monopoly capitalism” appears to be some sort of a distinction from the state-as-capitalist — a concept that is apparently alien to Marxists. What role does the state play in this “state led monopoly capitalism” – clearly it is not the capitalist, so is it leading the capitalists? So how is it leading them? And to where? Well, it appears to be leading them toward some “socialization of economic activity” — which is clearly not socialism, but “socialization”. Which is to say, the capitalist accumulation process, having grown beyond the control of various forms of private management, must at some point fall under the direct management of the state. How does this work? Well, the state takes “an active role in the accumulation process”.

Okay, now I am stumped. What exactly is “an active role in the accumulation process”?

O’Connor tells us that it “helped offset the unproductive costs of accumulation and the reproduction of the labor force”. So what are these unproductive costs of accumulation and the reproduction of the labor force? Clearly by “the reproduction of the labor force” O’Connor can only mean wages and (perhaps) a meager provision of public education and a national health system. Can the state add to wages, educate, or cure illness? Not likely, since it is a bloated parasite on society, it can’t even put a chicken in a single pot. Since the state creates nothing, and produces nothing, it can only “offset … the reproduction of the labor force” by driving wages down. Perhaps I got this wrong; perhaps the state can magically whip up a subsidy for wages by creating food, clothing, and shelter out of nothing. I am not as educated as fucking Marxists Academics, but it seems to me all O’Connor is suggesting is that the state devalues labor power!

Of course, I could be wrong. Maybe Obama is feeding the working class from that victory garden over at the White House.

And what are the “unproductive costs of accumulation”? How does the fascist state “offset” these costs pray tell me? Frankly, I have never heard of the term “unproductive costs of accumulation” before I read this paper — the term appears nowhere in Marx. Nowhere in three fucking volumes of Capital does Marx ever mention an animal going by the name of “unproductive costs of accumulation”. Even if we assume the state plays some role in offsetting these mysterious costs, there are only two classes for the distribution of the social product of labor: workers and capitalists. If the state is “offsetting the unproductive costs of accumulation” for the capitalists, it has to be taking it from the working class.

So when I parse O’Connor’s argument, “Economic socialization helped offset the unproductive costs of accumulation and the reproduction of the labor force”, I only get two things out of it: “devaluation of the wages of the working class” and “more devaluation of the wages of the working class”. Since I am not a Marxist, you probably can understand why I come to that ‘absurd’ conclusion. If I were a Marxist, I could invent another phantom source of value for the state to redistribute as wages and profits.

Once we get past the silliness about the Keynesian “Golden Age” of capitalism, it is clear neoliberalism is not in the least a switch from social accommodation between capital and wage labor to coercive competition as O”Connor argues, but simply an intensification of systematic impoverishment of wage labor, for which Keynesian state policy was, by the 1960s and 1970s, insufficient to realize. This does not in the least require any modification of Marx’s labor theory of value, nor any special explanations. It simply requires us to grasp national capitals behave just like privately owned capitals, but with grim consequences for both national sovereignty and national fiscal/monetary policy. Which means these national capitals, although for a time appearing quite permanent features of economic analysis, were always transitory and subject to the very same laws as determine the capitalist mode of production generally: equalization of the rate of profit, concentration and centralization of capital, overaccumulation, falling rate and mass of profit, a growing superfluity of capital, a growing mass of workers who fill the ranks of the industrial reserve, etc.

What is distinct about these national capitals, however, is the constitution of purely national political class struggles. The political contest between any class of wage laborers and their national capital is fought out within the context of a nation-state form that is rapidly approaching extinction. Already countries very close to the core of Europe have been stripped of their national sovereignty, not to mention peripheral nations. And the more these nations lose their sovereignty, the more indifferent they become to both their domestic working class and domestic capitalist class.

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 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.