Marx Was Right: Five Surprising Ways Karl Marx Predicted 2014 February 2, 2014Posted by rogerhollander in Marx and Marxism, Revolution.
Tags: capitalism, communist manifesto, corporate profits, economic cycles, economics, globalization, industrial labor, karl marx, marxism, marxist economics, Marxist Humanism, monopoly, monopoly capitalism, progressive income tax, Raya Dunayevskaya, roger hollander, sean mcelwee, unemployment
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Roger’s note: I find it interesting that journalists cannot write positive things about Marx with a caveat to show, I guess, that they are not slavish ideological Marxists. Marx did not consider himself to be a prophet or a maker of blueprints for the future. If so much of what he projected has come to be true it is because of his profound intellectual and analytic digging and not because he was some kind of a seer into the future. First of all Marx was a philosopher, not an economist. More specifically a philosopher of human liberation. He realized that he needed a complete understanding of the history of human development and economics (he read and absorbed every one of the political economists of his day, from Adam Smith and Ricardo and Malthus to names you and I have never heard of) in order to develop a philosophy that contained the theory and practice for human individual and social liberation. Furthermore, it is not untrue but rather misleading to state that “Most of his writing focuses on a critique of capitalism rather than a proposal of what to replace it with.” With a particular reference to the Paris Commune, he often wrote of a future of “freely associated labor.” He wrote about the “withering away of the state” and, of course, his most profound “vision” of a future classless world was described in his classic: “from each according to his/her need; to each according to his/her ability” (I added the gender neutrality of which Marx would have approved). I found the best introduction to Marx was through his so-called “early writings” or “economic manuscripts” (I have the old Bottomore edition); and for a deeper understanding of Marx, the writings of Raya Dunayevskaya, the founder of Marxist-Humanism.
There’s a lot of talk of Karl Marx in the air these days – from Rush Limbaugh accusing Pope Francis of promoting “pure Marxism” to a Washington Times writer claiming that New York City Mayor Bill de Blasio is an “unrepentant Marxist.” But few people actually understand Marx’s trenchant critique of capitalism. Most people are vaguely aware of the radical economist’s prediction that capitalism would inevitably be replaced by communism, but they often misunderstand why he believed this to be true. And while Marx was wrong about some things, his writings (many of which pre-date the American Civil War) accurately predicted several aspects of contemporary capitalism, from the Great Recession to the iPhone 5S in your pocket.
Here are five facts of life in 2014 that Marx’s analysis of capitalism correctly predicted more than a century ago:
1. The Great Recession (Capitalism’s Chaotic Nature)
The inherently chaotic, crisis-prone nature of capitalism was a key part of Marx’s writings. He argued that the relentless drive for profits would lead companies to mechanize their workplaces, producing more and more goods while squeezing workers’ wages until they could no longer purchase the products they created. Sure enough, modern historical events from the Great Depression to the dot-com bubble can be traced back to what Marx termed “fictitious capital” – financial instruments like stocks and credit-default swaps. We produce and produce until there is simply no one left to purchase our goods, no new markets, no new debts. The cycle is still playing out before our eyes: Broadly speaking, it’s what made the housing market crash in 2008. Decades of deepening inequality reduced incomes, which led more and more Americans to take on debt. When there were no subprime borrows left to scheme, the whole façade fell apart, just as Marx knew it would.
2. The iPhone 5S (Imaginary Appetites)
Marx warned that capitalism’s tendency to concentrate high value on essentially arbitrary products would, over time, lead to what he called “a contriving and ever-calculating subservience to inhuman, sophisticated, unnatural and imaginary appetites.” It’s a harsh but accurate way of describing contemporary America, where we enjoy incredible luxury and yet are driven by a constant need for more and more stuff to buy. Consider the iPhone 5S you may own. Is it really that much better than the iPhone 5 you had last year, or the iPhone 4S a year before that? Is it a real need, or an invented one? While Chinese families fall sick with cancer from our e-waste, megacorporations are creating entire advertising campaigns around the idea that we should destroy perfectly good products for no reason. If Marx could see this kind of thing, he’d nod in recognition.
3. The IMF (The Globalization of Capitalism)
Marx’s ideas about overproduction led him to predict what is now called globalization – the spread of capitalism across the planet in search of new markets. “The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe,” he wrote. “It must nestle everywhere, settle everywhere, establish connections everywhere.” While this may seem like an obvious point now, Marx wrote those words in 1848, when globalization was over a century away. And he wasn’t just right about what ended up happening in the late 20th century – he was right about why it happened: The relentless search for new markets and cheap labor, as well as the incessant demand for more natural resources, are beasts that demand constant feeding.
4. Walmart (Monopoly)
The classical theory of economics assumed that competition was natural and therefore self-sustaining. Marx, however, argued that market power would actually be centralized in large monopoly firms as businesses increasingly preyed upon each other. This might have struck his 19th-century readers as odd: As Richard Hofstadter writes, “Americans came to take it for granted that property would be widely diffused, that economic and political power would decentralized.” It was only later, in the 20th century, that the trend Marx foresaw began to accelerate. Today, mom-and-pop shops have been replaced by monolithic big-box stores like Walmart, small community banks have been replaced by global banks like J.P. Morgan Chase and small famers have been replaced by the likes of Archer Daniels Midland. The tech world, too, is already becoming centralized, with big corporations sucking up start-ups as fast as they can. Politicians give lip service to what minimal small-business lobby remains and prosecute the most violent of antitrust abuses – but for the most part, we know big business is here to stay.
5. Low Wages, Big Profits (The Reserve Army of Industrial Labor)
Marx believed that wages would be held down by a “reserve army of labor,” which he explained simply using classical economic techniques: Capitalists wish to pay as little as possible for labor, and this is easiest to do when there are too many workers floating around. Thus, after a recession, using a Marxist analysis, we would predict that high unemployment would keep wages stagnant as profits soared, because workers are too scared of unemployment to quit their terrible, exploitative jobs. And what do you know? No less an authority than the Wall Street Journal warns, “Lately, the U.S. recovery has been displaying some Marxian traits. Corporate profits are on a tear, and rising productivity has allowed companies to grow without doing much to reduce the vast ranks of the unemployed.” That’s because workers are terrified to leave their jobs and therefore lack bargaining power. It’s no surprise that the best time for equitable growth is during times of “full employment,” when unemployment is low and workers can threaten to take another job.
Marx was wrong about many things. Most of his writing focuses on a critique of capitalism rather than a proposal of what to replace it with – which left it open to misinterpretation by madmen like Stalin in the 20th century. But his work still shapes our world in a positive way as well. When he argued for a progressive income tax in the Communist Manifesto, no country had one. Now, there is scarcely a country without a progressive income tax, and it’s one small way that the U.S. tries to fight income inequality. Marx’s moral critique of capitalism and his keen insights into its inner workings and historical context are still worth paying attention to. As Robert L. Heilbroner writes, “We turn to Marx, therefore, not because he is infallible, but because he is inescapable.” Today, in a world of both unheard-of wealth and abject poverty, where the richest 85 people have more wealth than the poorest 3 billion, the famous cry, “Workers of the world unite; you have nothing to lose but your chains,” has yet to lose its potency.
Class War??? Elect “Progressive” Democrats??? November 7, 2013Posted by rogerhollander in Democracy, Political Commentary, Revolution.
Tags: 2013 election, class war, de blasio, democratic party, democrats, elections, Foucault, Gramsci, ideology, karl marx, marxism, new york city, new york government, new york politics, progressives, revolution, richard goldin, roger hollander, tom hayden
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THE FIRS WEB SITE I GO TO EVERY DAY IS COMMON DREAMS. I DON’T READ EVERYTHING BECAUSE I HAVE OTHER WEB SITES TO CHECK OUT, BUT I TRY TO FIND WHAT SPEAKS TO THE CRISES IN OUR WORLD TODAY AND WILL HAVE A UNIVERSAL AND HUMANISTIC APPEAL TO THE READERS OF MY BLOG. AS HAPPENED TODAY, SOMETIMES I READ WHAT I HAVE A FEELING WILL BE SOMETHING I CANNOT AGREE WITH. AS WITH THESE KINDS OF ARTICLES, AS WELL AS THOSE WHICH FOR ME ARE RIGHT ON, MORE OFTEN THAN NOT THE COMMENTS AT THE END OF THE ARTICLE FOR THE MOST PART CONTAIN AS MUCH OR MORE WISDOM AS THE ARTICLE ITSELF. THIS GIVES ME LOTS OF HOPE BECAUSE THESE ARE NOT OPINIONS OF THE SO-CALLED EXPERTS, BUT RATHER ORDINARY JANES AND JOES LIKE YOU AND ME.
I AM NOT GOING TO POST THESE TWO ARTICLES, RATHER GIVE YOU THE LINKS AND SUGGEST YOU DO AS I DID AND TAKE THE TIME TO READ ALL THE COMMENTS. JUST READING THE TITLES OF THESE TWO ARTICLES GOT MY DANDER UP: “Bill de Blasio: Harbinger of a New Populist Left in America” AND “Class War is a Bad Strategy for Progressive Politics.”
JUST CLICK ON THESE TITLES TO READ THE ARTICLES AND I PROMISE YOU IT WILL BE WORTH YOUR WHILE TO READ ALL THE COMMENTS (THE GREAT PERCENTAGE OF WHICH I CONSIDER TO BE WELL STATED). THERE IS A QUOTE IN THE COMMENTS OF THE SECOND ARTICLE BY FREDERICK DOUGLAS, WHICH I GIVE YOU HERE AS AN APPETIZER:
“The whole history of the progress of human liberty shows that all concessions yet made to her august claims have been born of earnest struggle. … If there is no struggle, there is no progress. Those who profess to favor freedom, and yet deprecate agitation, are men who want crops without plowing up the ground. They want rain without thunder and lightning. They want the ocean without the awful roar of its many waters. This struggle may be a moral one; or it may be a physical one; or it may be both moral and physical; but it must be a struggle. Power concedes nothing without a demand. It never did and it never will. Find out just what any people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress.” – Fredrick Douglas – 1857
Marxists Must Stand Firm Against Ahmadinejad July 16, 2009Posted by rogerhollander in Iran, Labor, Latin America, Revolution, Venezuela.
Tags: ahmadinejad, anti-imperialism, bolivarian movement, Hugo Chavez, imperialism, Iran, iran capitalism, iran democracy, iran election, iran labor, iran protests, iran unemployment, iran workers, Khamenei, marxism, Maziar Razi, nationalisation, nationalization, roger hollander, shah, U.S. imperialism, Venezuela, venezuela democracy, venezuela labor
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By Maziar Razi
London Progessive Journal (http://www.londonprogressivejournal.com/issue/show/78?article_id=481), July 10-16, 2009
Open letter to the workers of Venezuela on Hugo Chávez’s support for Ahmadinejad
Honourable workers of Venezuela,
The Revolutionary Marxists of Iran are aware of your achievements as part of the Bolivarian Movement and have always supported this movement against the widespread lies and the open and covert interference of imperialism. In order to defend your invaluable movement and to confront the attacks and interference of US imperialism in Venezuela, labour and student activists in Iran have set up the ‘Hands Off Venezuela’ campaign in Iran and during the past few years have stood together with you in confronting the imperialist attacks. It is obvious that your achievements were gained under the leadership of Hugo Chávez and, for this reason, you reserve deep respect for him.
In terms of his foreign policy, however, Chávez has made a mistake. With his support for Ahmadinejad he has ignored the solidarity of the workers and students of Iran with your revolution, and in a word, made it look worthless. Most are aware that two weeks ago Ahmadinejad, with the direct support of Khamenei, committed the biggest fraud in the history of presidential elections in Iran and then, with great ferocity, spilt the blood of those protesting against this fraud. You just have to take notice of the international media reports to be aware of the depths of this tragedy. All over the world millions of workers and students, and also those of Marxist and revolutionary tendencies (which mostly are the supporters of the Bolivarian revolution), protested against these attacks.
In of spite this, Chávez was one of the first people to support Ahmadinejad. In his weekly TV speech he said: “Ahmadinejad’s triumph is a total victory. They’re trying to stain Ahmadinejad’s victory, and by doing so they aim to weaken the government and the Islamic revolution. I know they won’t be able to do it.” And that “We ask the world for respect.” These rash and baseless remarks from your President are a great and direct insult to the millions of youth who in recent days rose up against tyranny. Some of them even lost their lives. Many of these youths came out on the streets spontaneously and without becoming infected with the regime’s internal disputes, or becoming aligned with the policy that US imperialism is following for taking over the movement. In addition, the remarks of your President are an insult to millions of workers in Iran. Workers whose leaders are today being tortured in the prisons of the Ahmadinejad government and some of them are even believed to be being punished with flogging. Workers who were brutally repressed by the mercenaries of the Ahmadinejad government for commemorating May Day in Tehran this year are still in prison.
So far Chávez has travelled to Iran seven times and each time he has hugged one of the most hated people in this country and called him his “brother”. He does not realise that the economic, social and political situations of Venezuela and Iran are going in opposite directions. Although both countries have seen a similarly significant boost to their oil (and gas) revenues the contrast between the ways in which this extra money has been used by the two governments could not be more marked. In Venezuela this income is used for building hospitals, schools, universities and other infrastructure of the country, but in Iran it is used for lining the pockets of just a few parasitic capitalists.
On the one hand, in Venezuela, we have seen the nationalisation of an increasing number of companies and factories, the free provision of healthcare, education, civil liberties and so on. By contrast in Iran privatisation is on the government’s agenda, even at the cost of trampling on Article 44 of the Constitution of the country and using the excuse of inefficiency and low productivity of state companies and factories. All these advances of the workers and the poor in Venezuela have given them greater control over the way they work and the way they live. Most importantly, the expropriation of factories and the encouragement of workers’ control and participation have transformed the character of the workers’ movement in Venezuela, advancing it by many stages. The Bolivarian movement and the policies of the government have brought about a huge shift in the balance of class forces in Venezuela in favour of the working class. Not only has the government encouraged the Venezuelan workers to build the Unión Nacional de los Trabajadores as an alternative to the Confederación de Trabajadores de Venezuela (CTV), but the workers have become involved in running and managing factories and other enterprises. The whole world knows that your government has even drawn up a list of 1,149 closed-down factories and given their owners an ultimatum: re-open them under workers’ control or the government will expropriate them.
In Iran, on the other hand, on top of the lack of many basic democratic rights, the workers are also without any independent trade union rights. Today the workers of Iran do not even have a confederation like the Confederación de Trabajadores de Venezuela. All they have are the Labour House, the Islamic Labour Councils and other anti-working class bodies tied to the state.
But this has not always been so: the overthrow of the Shah brought about many freedoms for workers including, in some cases, control over production and even distribution. Then, however, through repression the Islamic hierarchy managed to take back all the workers’ gains. The leaders that your President hugs killed thousands of workers, destroyed the workers’ movement and pushed it back by several decades. In Iranian society even the ‘yellow’ pro-boss unions – that the Shah had tolerated – became and remain illegal. Even a CTV-style trade union confederation is illegal in Iran.
In Iran the official (and underestimated) unemployment rate stands at 10.85 per cent, with unemployment among the youth (15-24 year-olds) standing at 22.35 per cent. Even when workers are employed they are often not paid – in many cases for more than a year. Even those who get their wages face an impossible task in paying for the basic necessities of life, because their wage is not enough for living costs. For example, with the rent for a two-bedroom flat at $422 a month, a civil servant on $120 wages, or a teacher on $180, or even a doctor on $600 a month struggle to survive. It is no wonder that some 90 per cent of the population live below the poverty line.
The capitalist government of Iran has no fundamental disagreements or contradictions with US imperialism. It is in a ‘cold war’ with America and when it receives enough concessions, it will quickly enter into political dealings with the US and will turn its back on you. Indeed, the Iran regime has already helped the Americans in their military invasion and occupation of Afghanistan and Iraq – and installing the puppet regimes of Karzai and Maliki through significant trade, security and other deals. The capitalist government of Iran, despite the current apparent differences, is busy in close negotiations with the Obama government on resolving the problems of Afghanistan. This government, despite the “anti-imperialist” rhetoric, is heading towards re-establishing old links with the US. Ahmadinejad’s selection demonstrates the final turn of the regime towards resolving its problems with imperialism. Despite all the “enmity” and “anti-imperialist” gestures the regime is ready to resolve all its differences with America. The government of Iran wants to turn Iran into a society like Colombia (in Colombia thousands of trade unionists have been killed so that multinational companies can exploit workers and plunder the country’s natural resources without any obstacles). It is not without reason that the Iranian government has been implementing the bankrupt neo-liberal prescriptions of the World Bank and International Monetary Fund and counting the minutes until it joins the World Trade Organisation.
The close and regular links of your leader, Chávez, with the leaders of this regime will eventually make the Iranian masses turn their back on the great lessons of the revolutionary process in Venezuela. Winning the hearts and minds of the masses in Iran and similar countries is the best long-term solution to breaking Washington’s stranglehold on Latin America. Your leader’s closeness with the capitalist government of Iran, a government that has the blood of thousands of workers and youth on its hands, shows that his anti-imperialist foreign policy has a major flaw. Being close to reactionary regimes will never be able to bring the anti-imperialist foreign policy to a successful conclusion. Only the unity of the real representatives of the workers and toilers can confront imperialism.
Stand together with the Iranian workers and condemn the foreign policy of your leaders. Support for Ahmadinejad means support for the repression of Iranian workers and youth. Challenge the flawed positions of Chávez and reject them. Support for the government of Ahmadinejad, especially after the recent events, is at worst an open betrayal of the toilers of Iran and at best a political blunder in foreign policy.
The Concept of Other in Latin American Liberation: Fusing Emancipatory Thought and Social Revolt, by Eugene Gogol December 31, 2008Posted by rogerhollander in Concept of Other in Latin American Liberation.
Tags: bartra, capitalism, chiapas, CONAIE, dussel roig, Ecuador, eugene gogol, hegel, Latin America, liberation, lucio gutierrez, mariategui, marx, marxism, Marxist Humanism, paz, quijano, revolt, revolution, roger hollander, salazar, semo, Zapatistas, zea
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(This book review was published in the August-September 2003 of “News & Letters,” the bi-monthly publication of the U.S. Marxist Humanist organization of the same name)
Anyone who has lived and/or followed the Latin American experience/reality in the post-World War II era will have experienced a Sisyphean frustration with respect to the rise and fall of liberation movements and the hope for new human relations to which they aspire. In the eight years I have lived in Ecuador I have witnessed two successful “leftist” coup d’etat that have resulted in absolutely no fundamental social, political, or economic change whatsoever – to the contrary, the economic/political crisis deepens.
In Ecuador, the 1980s saw intense grassroots organization within the indigenous community that culminated in the formation of a national indigenous organization, CONAIE, whose power was expressed in the 1990s through massive protests against oil exploitation in the Amazon rainforest, privatization of social security, and reactionary agricultural laws.
The indigenous revolt of 2000, its contradictions and the reasons for its ultimate failure is taken up in The Concept of Other in Latin American Liberation (Lexington Books, 20002). Gogol points out the contradictions within the leadership of the indigenous movement between those who relied on the creativity of the masses and those who allied themselves with government power. This has come to a tragic fruition with the Gutiérrez government, causing disunity within the indigenous movement that may take decades to repair. These events in Ecuador are in a sense a paradigm of the failures encountered in post-World War II Latin America.
In the first section of the book, Gogol argues that the Hegelian-Marxian dialectic is a sine qua non of truly liberatory revolutionary activity that intersects most dramatically with Latin American historical reality. To those who dismiss Hegel, Gogol shows that they do so at the peril of sacrificing the methodology that can keep revolutionary thought and revolutionary activity dynamic and in sync with social reality.
He takes us upon a philosophical journey touching upon the concept of Other and consideration of the dialectic in the writings of Latin American thinkers including Octavio Paz, Leopoldo Zea, Augusto Salazar Bondy, Anibal Quijano, Enrique Dussel, and Arturo Andrés Roig. He outlines the unique, important and positive contributions made by each, but concludes that in each one encounters an inability or unwillingness to delve deeply into Hegel’s “voyage of discovery.”
In the second section – “Imprisonment of the Other: the Logic of Capital on Latin American Soil” – we find a review of major Latin American thinkers of the 20th century–like José Carlos Mariátegui, Enrique Semo and Roger Bartra. Again, we encounter a richness in thought and analysis of capital’s stranglehold on the masses, showing us that the work of Marx as well as Hegel has taken root in Latin American soil. But we do not yet see the Other unbound. What we find again is the failure to recognize the second negation, the positive in the negative, the pathway to genuine liberation.
In discussing liberation theology’s inability to sustain its momentum in the face of the changing realities and setbacks of movements in Nicaragua, Guatemala and El Salvador, Gogol asks: “If one develops a concept of social change, without such a theoretical labor flowing from a fullness of philosophy of revolution, then what happens to one’s theory when the social movement, the historic moment, has changed?” (p. 115).
Referring to Marx’s economics, not as economic determinism, but rather as a “unity of humanism and philosophy;” not a mere sociology but as a philosophy of liberation. Gogol demonstrates how one expression of revolutionary subjectivity after another has fallen prey to the dead end of state-capitalism or reformist accommodation with different forms of capitalism.
The third section of the work is a journey through selected contemporary liberation movements in Latin America. From the Rio Grande to Tierra del Fuego, we see different forms of revolutionary subjectivity in action: urban, rural, indigenous, women, workers, students, and others. In each of these, be it the tin miners in Bolivia, campesinos in Guatemala, labor organizers in Bolivia, labor organizers in Mexico’s maquiladoras, the Madres de la Plaza of Argentina, or the Landless Workers’ Movement in Brazil, Gogol shows us how self-liberation re-creates itself in its own social environment, creating new pathways towards liberation.
In the Zapatistas of Chiapas, he finds the freshest and most innovative expression of revolutionary subjectivity. In their rejection of focoism, and in aiming not to take state power for themselves but rather to unify the various expressions of Other in Mexico, the Zapatistas broke new ground. Instead of adopting the dead-end, vanguardist “dictatorship of the proletariat” strategies and philosophies which the original urban radicals had brought to Chiapas, what emerged was a re-creation of the principles of collectivity in decision making, that were already inherent and deeply seated in the ways of the indigenous peoples of Chiapas.
As one concerned with understanding and changing Latin America, I see this work as of supreme importance. Although there are a few omissions (the most glaring being a failure to discuss the Colombian situation), the work is comprehensive and probing.
The book concludes with a discussion of philosophy and organization, noting, “It is the theoretician-philosopher(s) who catches the mass self-activity from below, and labors to give it meaning by rooting it within the Marxist-Hegelian philosophic expression…Marx was not afraid to speak of ‘our party’ even in the times when it was only he and Engels” (p. 343).
As one who lives and observes on a daily basis both the ravages of globalized capitalism and the frustration of liberation movements in Ecuador, I can attest to the urgent need for new beginnings in Latin America. And in the light of the Bush doctrine of permanent war and his plans to augment existing U.S. military force in Ecuador, Colombia, Peru, Aruba, Puerto Rico, Cuba and Honduras, and with new bases in the Galápagos, Brazil, El Salvador and Argentina, the Marxist-Humanist primary task takes on renewed urgency: “To the barbarism of war we pose the new society.”