Karl Marx’s alternative to capitalism part 27 – forces and relations of production 10

The endorsement of workers’ cooperatives by Marx with which the previous post in this series finished needs emphasis because all too many of today’s Marxists fail to acknowledge their place in Marx’s alternative to capitalism. To take just one example: the Irish Marxist Kieran Allen, in his ‘Karl Marx and the Alternative to Capitalism’, references workers’ cooperatives under the heading of ‘Marx and Utopianism’, and with a view that appears to see these cooperatives as ‘islands of socialism’ within a capitalist sea, that “could not break with the logic of capitalism.”  The endorsement of workers’ cooperatives by Marx is not referred to by him, which is more than remiss given the title of the book.

Instead trade union organisation is endorsed and the perspectives of Marx described thus:

“Marx’s approach, therefore, was not to build alternatives within the existing mode of production but to overthrow it”

This is a view common to many of today’s Marxists.  However, by using this example of this approach, a number of points can be made, by way of illustration how it may be contrasted to the approach set out so far in these posts.

First, it might be pointed out that while cooperatives may not break completely with the logic of capitalism, this was well understood by Marx, as the first sentence of the extensive quote from the last post makes plain – “The co-operative factories of the labourers themselves represent within the old form the first sprouts of the new, although they naturally reproduce, and must reproduce, everywhere in their actual organisation all the shortcomings of the prevailing system.”

Second, it may be noted that not only do trade unions enforce the logic of capitalism, by bargaining the price of labour power in the labour market, but they are obviously built within the existing system and generally do not seek to overthrow it, a criticism levelled at cooperatives.

In this sense, it is equally obvious that unless the alternative is built “within the existing mode of production” there will be nothing with which “to overthrow it”.   Something as true of a working class party as of cooperative workplaces.  Without material foundations for example, there will be no revolution, certainly not one that is successful.  This will be the case because it is not just a question of overthrowing capitalism but of replacing it, and the replacement cannot be conjured out of nothing.  It cannot arise from empowering the state to take control – because this is not socialism, as the series of posts on the Russian revolution demonstrated.  But it will also not arise from within the heads of the working class unless the real world outside their heads, the’being that determines consciousness’, propels them to it.

Both within workers’ consciousness and the real world that creates this consciousness there must be a viable alternative, one that the creation of workers’ cooperatives within capitalism can represent.  In this sense, such cooperatives can be made, if not islands of socialism, then sites of struggle to win workers to ownership of the means of production right across society, and a giant step towards it within the existing system.

Allen argues that “unlike the capitalist class, workers need direct political power to begin the process of liberating themselves” (emphasis added), but this confuses the requirement for revolution, and the conquering of political power by the working class, with the process to get there, and what the working class needs to do afterwards in order to rule, not just in the political sense but as a ruling social class.  Much of the Marxist movement has been handicapped by failure to properly understand the necessity to advance the economic, social and political power of the working class, in the way Marx sought to do, within capitalism, as a prerequisite of, and prior to, overthrowing and replacing it.

Since this is a necessity whether one believes it is required or not, the vacuum created by lack of such understanding is filled by reformist and statist conceptions of working class struggle and socialism, which are as routinely condemned as much as they are advanced in practice.  These statist conceptions of socialism were opposed by Marx, as by many Marxists today, but he had conceptions of the alternative, which many of today’s Marxists do not. They thus lapse into Keynesian remedies and calls for nationalisation, ignoring experience of the latter when it happens and results in enforcement of the logic of capitalism – as in Ireland with bank nationalisation and creation of an enormous property development company by the state – NAMA.

This yawning gap in the conception of how the working class prepares itself to be the ruling class, to carry out a revolution, has all sorts of other deleterious consequences, leading not just to reformist capitulation but alternatively to ultra-left isolation, and retreat into vanguardist conceptions that amazingly can include reformist politics as well.  Since the real prerequisites for socialist revolution are ignored, the experience of heightened episodes of class struggle are continually misapprehended as revolutionary outbreaks when they are not.  Their failure leads to a search for scapegoats, for villains who have betrayed, without pausing to ask how this betrayal could have been allowed if the working class was already revolutionary.

It means that even those parties with the purest revolutionary programmes will be compelled to retreat and betray their revolutionary beliefs because the working class they seek to lead, and may even succeed in leading for a time, is simply not in a position to make a revolution, a weakness inevitably reflected in their political consciousness.  Retreat in such circumstances is inevitable regardless of subjective wishes and intentions.

In practice, such realisation affects the most radical parties long before they are in a position to claim outright leadership of the majority of the working class, whereupon the left section denounces the right as betraying socialism and the right denounces the left as lacking in realism.  Meanwhile the decisive question is how the working class has prepared itself for political power, because it is the class that creates the party, not the other way round.

The prevailing general conception of many Marxists is presented by Allen this way:

“It was only in the process of revolution that the mass of people learnt to clarify their own interests and develop a different understanding of their society. In normal times, the majority accept the legitimacy of their rulers and at least some of their ideas.  This cannot be changed simply through preaching, teaching or good example.  A new consciousness cannot emerge on a mass scale by workers ‘waking up’ and then passively following the teachings of their intellectual masters or clever television presenters.  Experience of class struggle is the only way in which people can learn, and, as Draper put it, ‘revolution speeded up the curriculum and enriched the course.’”

What this says is that only revolution can bring about the consciousness within workers that a revolution is required, which is actually partly true but obviously hardly adequate; in other words inadequate.  Read in reverse, the paragraph quoted above makes the weakness of this conception clearer; for it reads – revolution becomes the means of ‘waking up’ the workers, while revolution is the result of their ‘waking up’.

As a more or less sudden and abrupt process, of greater or shorter duration, a revolution alone cannot equip the working class with the consciousness that society must be organised by themselves and that they have the capacity to do so.  Marxists often note that consciousness lags behind material changes in the real world, and stand firmly on the ground that such material reality is the soil upon which consciousness grows.  It is therefore the case that anticipations of the new socialist society must appear within capitalism for the consciousness of the new society to also appear and grow, and to achieve hegemony within the working class.  As we have noted, of all the developments of the forces and relations of production under capitalism, it is cooperative production, working class control of the means of production – even within the capitalist system – that Marx notes should be considered one of the“transitional forms from the capitalist mode of production to the associated one.”

The creation of workers’ cooperatives raises the potential for increasing numbers of workers to understand the possibility of working class ownership of the means of production.  Such ownership also has the potential to demonstrate the benefits of increasing the scale and scope of cooperative production within capitalism – the benefit of cooperative enterprises cooperating with each other.

It also has the potential to demonstrate the ultimate requirement to defend this working class control through rejecting a capitalist state that exists to defend capitalist ownership and control.   The need for the working class to have its own state can be demonstrated when it becomes clear that it needs it to defend its own cooperative property.

Cooperative production has the potential to burst asunder the existing relations of capitalist production and release the fetters on the forces of production increasingly under strain from the limitations imposed on the socialisation of production by capitalist property relations. So, for example, the savings of workers, including their pension funds, can be mobilised using the existing system of socialised capital to provide the funding for workers to create their own cooperatives.

Workers’ cooperatives are not however a ‘magic bullet’ and do not replace the various other means by which workers must organise, in trade unions and political parties etc. as the example of Marx and Engels’ own lives demonstrates.  Cooperative factories were however important for how they conceived of the transition from capitalism to socialism and clearly fit their conceptions relating to the forces and relations of production that we have reviewed in these last number of posts.

Back to part 26

Karl Marx’s Alternative to capitalism part 26 – forces and relations of production 9

In the previous series of posts I have set out Marx’s views on the contradictions of capitalism, between its productive forces and the relations of production, and have gone to some length to explain the concepts involved.

Much of this might seem rather tenuously related to the issue of Marx’s alternative to capitalism.  Previously, however, I have explained that this alternative can only arise out of existing society, and not from any sort of blueprint, either based on high moral values of equality and justice etc. or more or less elaborate plans for the a society, for example how a planned economy might be made to work more efficiently than capitalism.

More particularly, this alternative cannot be conceived as simply political revolution, for such a revolution presupposes the grounds for its success – on the development of the forces and relations of production as set out in these previous posts, this one and the next one.

The development of the forces and relations of production explains how the alternative that grows within capitalism and will supersede it might be conceived, and on these grounds that political revolution might be considered a reasonable objective.

In this way, Marx explains how the development of capitalism creates the grounds and tendencies of development of an alternative society:

“The conditions for production become increasingly general, communal and social, relying less on the individual capitalist. We have seen that the growing accumulation of capital implies its growing concentration. Thus grows the power of capital, the alienation of the conditions of social production personified in the capitalist from the real producers. Capital comes more and more to the fore as a social power, whose agent is the capitalist. This social power no longer stands in any possible relation to that which the labour of a single individual can create. It becomes an alienated, independent, social power, which stands opposed to society as an object, and as an object that is the capitalist’s source of power.”

“The contradiction between the general social power into which capital develops, on the one hand, and the private power of the individual capitalists over these social conditions of production, on the other, becomes ever more irreconcilable, and yet contains the solution of the problem, because it implies at the same time the transformation of the conditions of production into general, common, social, conditions. This transformation stems from the development of the productive forces under capitalist production, and from the ways and means by which this development takes place.”

Marx sets out “Three cardinal facts of capitalist production:

1) Concentration of means of production in few hands, whereby they cease to appear as the property of the immediate labourers and turn into social production capacities. Even if initially they are the private property of capitalists. These are the trustees of bourgeois society, but they pocket all the proceeds of this trusteeship.

2) Organisation of labour itself into social labour: through co-operation, division of labour, and the uniting of labour with the natural sciences.

In these two senses, the capitalist mode of production abolishes private property and private labour, even though in contradictory forms.”

Marx notes that the bigger, more concentrated and centralised capital becomes, the less important is the role of the capitalist himself, while this process simultaneously involves the centralisation of capital in a few hands including through the decapitalisation of many.  Although “this process would entail the rapid breakdown of capitalist production, if counteracting tendencies were not constantly at work alongside this centripetal force, in the direction of decentralisation.” (Capital Volume III, p 354 – 355)

Ernest Mandel, in his introduction to Volume III of Capital, sets out a flow-diagram putting forward the elements of Marx’s analysis and placing them within separate boxes, with the end point being ‘socialism’, and with the penultimate box the ‘tendency towards collapse of capitalist system’.

While useful as a graphical presentation of the elements of Marx’s analysis, it is misleading if it is assumed that socialism is simply a result of capitalist collapse, rather than capitalist collapse being the result of socialism, in other words the actions of the working class.

It is however useful to sum up the last few posts by itemising these different elements that are  included in Mandel’s schematic, with the understanding that socialism is not the result of the automatic working out of any or even all of these factors, but rather the conscious intervention of the working class, not in a voluntarist way, but arising out of (at least some of) the factors set out below, and in particular ways that we shall later explore.

  • Growing difficulty of maintaining market economy, value realisation, under conditions of growing automation.
  • Periodic crises of overproduction.
  • Tendency to growing centralisation of capital in fewer and fewer hands.
  • Tendency of average rate of profit to decline.
  • Tendency to growing objective socialisation of labour.
  • Growing contradiction between socialised labour and private appropriation.

The contradiction between capitalist relations of production and its productive forces is evident every day, in the inability of capitalism to secure permanent full employment, in fact its inability to function without a reserve army of labour that helps regulate its functioning.

The tendency to the socialisation of production through, for example, the growth of monopoly might be seen as anticipation of socialism, which in a negative fashion it is, but while it entails increased planning within enterprises, it does not otherwise prevent capitalist crises.

Likewise, increased state ownership and intervention also anticipates resolution of the contradiction between the forces and relations of production, but does not resolve it and does not represent a model of future society.  As Engels notes:”

“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 organisation that bourgeois society takes on in order to support the external conditions of the capitalist mode of production against the encroachments as well of the workers as of individual capitalists.”

“The modern state, no matter what its form, is essentially a capitalist machine — the state of the capitalists, the ideal personification of the total national capital. The more it proceeds to the taking over of productive forces, the more does it actually become the national capitalist, the more citizens does it exploit. The workers remain wage-workers — proletarians. The capitalist relation is not done away with. It is, rather, brought to a head. But, brought to a head, it topples over. State-ownership of the productive forces is not the solution of the conflict, but concealed within it are the technical conditions that form the elements of that solution.”

The true anticipation and herald of the new mode of production is contained in the development of workers’ production, anticipation of the associated workers’ mode of production, through the growth of workers cooperatives, as argued by Marx:

“The co-operative factories of the labourers themselves represent within the old form the first sprouts of the new, although they naturally reproduce, and must reproduce, everywhere in their actual organisation all the shortcomings of the prevailing system. But the antithesis between capital and labour is overcome within them, if at first only by way of making the associated labourers into their own capitalist, i.e., by enabling them to use the means of production for the employment of their own labour.”

“They show how a new mode of production naturally grows out of an old one, when the development of the material forces of production and of the corresponding forms of social production have reached a particular stage. Without the factory system arising out of the capitalist mode of production there could have been no co-operative factories. Nor could these have developed without the credit system arising out of the same mode of production. The credit system is not only the principal basis for the gradual transformation of capitalist private enterprises into capitalist stock companies, but equally offers the means for the gradual extension of co-operative enterprises on a more or less national scale.”

“The capitalist stock companies, as much as the co-operative factories, should be considered as transitional forms from the capitalist mode of production to the associated one, with the only distinction that the antagonism is resolved negatively in the one and positively in the other.” (Capital Volume III)

Back to part 25

Forward to part 27

Reflections on the Russian Revolution 6

While the dominant view among the Bolsheviks was a statist one: that socialism would be the further development of the tendencies towards socialisation of production within capitalism – through centralisation and concentration of production by the state, including large private trusts supported by it, this was not the view of Marx.

For him it was not a task of replacing capitalist state ownership of the productive forces with ownership by a workers’ state, although some formulations of his would have led to this conclusion.  Even for Lenin, the question could be asked – how on earth could the state wither away, as set out by Lenin in his 1917 work ‘State and Revolution’, if the economy was to be directed and developed as part of the state?  As a body separate from, and on top of, society, the state could not be the representative of the community as a whole, a point Marx had argued from his earliest years.  Neither could it play such a role by becoming totally predominant: it could not become one with society and erase its separate character.

The transitional road from capitalism to socialism was not to come through a new socialist state simply replacing and increasing the growing economic role of the capitalist state.  As Marx explained:

“The co-operative factories of the labourers themselves represent within the old form the first sprouts of the new, although they naturally reproduce, and must reproduce, everywhere in their actual organisation all the shortcomings of the prevailing system. But the antithesis between capital and labour is overcome within them, if at first only by way of making the associated labourers into their own capitalist, i.e., by enabling them to use the means of production for the employment of their own labour.”

“They show how a new mode of production naturally grows out of an old one, when the development of the material forces of production and of the corresponding forms of social production have reached a particular stage. Without the factory system arising out of the capitalist mode of production there could have been no co-operative factories. Nor could these have developed without the credit system arising out of the same mode of production. The credit system is not only the principal basis for the gradual transformation of capitalist private enterprises into capitalist stock companies, but equally offers the means for the gradual extension of co-operative enterprises on a more or less national scale. The capitalist stock companies, as much as the co-operative factories, should be considered as transitional forms from the capitalist mode of production to the associated one, with the only distinction that the antagonism is resolved negatively in the one and positively in the other.” Marx Capital Vol III)

At the end of 1917 Lenin had declared that “The first step towards the emancipation of the people from this penal servitude is the confiscation of the landed estates, the introduction of workers’ control and the nationalisation of the banks. The next steps will be the nationalisation of the factories, the compulsory organisation of the whole population in consumers’ societies, which are at the same time societies for the sale of products, and the state monopoly of the trade in grain and other necessities.”

He announced that “accounting and control–this is the main economic task of every Soviet of Workers’, Soldiers’ and Peasant’ Deputies, of every consumers’ society, of every union or committee of supplies, of every factory committee or organ of workers’ control in general”.

He went on to say that “one of the most important tasks today, if not the most important, is to develop this independent initiative of the workers, and of all the working and exploited people generally, develop it as widely as possible in creative organisational work. At all costs we must break the old, absurd, savage, despicable and disgusting prejudice that only the so-called “upper classes”, only the rich, and those who have gone through the school of the rich, are capable of administering the state and directing the organisational development of socialist society . . . The workers and peasants are still “timid”, they have not yet become accustomed to the idea that they are now the ruling class; they are not yet resolute enough. The revolution could not at one stroke instill these qualities into millions and millions of people who all their lives had been compelled by want and hunger to work under the threat of the stick.”

The only way this can be read is that state control did not necessarily entail control and management by the working class itself.

But then, at the beginning of 1923, Lenin wrote that – “we have to admit that there has been a radical modification in our whole outlook on socialism”; which, on the face of it, is a pretty radical admission to have made.

Giving the phrase its fuller context explains how much of a change was involved –

“Now we are entitled to say that for us the mere growth of cooperation (with the “slight” exception mentioned above) is identical with the growth of socialism, and at the same time we have to admit that there has been a radical modification in our whole outlook on socialism.”

“The radical modification is this; formerly we placed, and had to place, the main emphasis on the political struggle, on revolution, on winning political power, etc. Now the emphasis is changing and shifting to peaceful, organisational, “cultural” work. I should say that emphasis is shifting to educational work, were it not for our international relations, were it not for the fact that we have to fight for our position on a worldscale. If we leave that aside, however, and confine ourselves to internal economic relations, the emphasis in our work is certainly shifting to education.”

“Two main tasks confront us, which constitute the epoch—to reorganise our machinery of state, which is utterly useless, in which we took over in its entirety from the preceding epoch; during the past five years of struggle we did not, and could not, drastically reorganise it.”

“Our second task is educational work among the peasants. And the economic object of this educational work among the peasants is to organise the latter in cooperative societies. If the whole of the peasantry had been organised in cooperatives, we would by now have been standing with both feet on the soil of socialism. But the organisation of the entire peasantry in cooperative societies presupposes a standard of culture, and the peasants (precisely among the peasants as the overwhelming mass) that cannot, in fact, be achieved without a cultural revolution.”

Lenin thus reevaluated the role of cooperatives:

“Why were the plans of the old cooperators, from Robert Owen onwards, fantastic? Because they dreamed of peacefully remodeling contemporary society into socialism without taking account of such fundamental questions as the class struggle, the capture of political power by the working-class, the overthrow of the rule of the exploiting class.”

“In the capitalist state, cooperatives are no doubt collective capitalist institutions. Nor is there any doubt that under our present economic conditions, when we combine private capitalist enterprises—but in no other way than nationalised land and in no other way than under the control of the working-class state—with enterprises of the consistently socialist type (the means of production, the land on which the enterprises are situated, and the enterprises as a whole belonging to the state), the question arises about a third type of enterprise, the cooperatives . . . Under our present system, cooperative enterprises differ from private capitalist enterprises because they are collective enterprises, but do not differ from socialist enterprises if the land on which they are situated and means of production belong to the state, i.e., the working-class.”

“It is forgotten that owing to the special features of our political system, our cooperatives acquire an altogether exceptional significance. If we exclude concessions, which, incidentally, have not developed on any considerable scale, cooperation under our conditions nearly always coincides fully with socialism.”

Lenin now put forward a different overall perspective arising within the New Economic Policy (NEP), which had been introduced as an admitted retreat on behalf of the Bolsheviks:

“All we actually need under NEP is to organise the population of Russia in cooperative societies on a sufficiently large-scale, for we have now found the degree of combination of private interest, of private commercial interest, with state supervision and control of this interest, that degree of its subordination to the common interests which was formerly the stumbling block for very many socialists. Indeed, the power of the state over all large-scale means of production, political power in the hands of the proletariat, the alliance of this proletariat with the many millions of small and very small peasants, the assured proletarian leadership of the peasantry, etc. — is this not all that is necessary to build a complete socialist society out of cooperatives, out of cooperatives alone, which we formerly ridiculed as huckstering and which from a certain aspect we have the right to treat as such now, under NEP? Is this not all that is necessary to build a complete socialist society? It is still not the building of socialist society, but it is all that is necessary and sufficient for it.”

“We went too far when we reintroduced NEP, but not because we attached too much importance to the principal of free enterprise and trade — we want too far because we lost sight of the cooperatives, because we now underrate cooperatives, because we are already beginning to forget the vast importance of the cooperatives from the above two points of view.”

However, cooperatives were not in themselves the answer to the backwardness of Russian economic development – “There are now no other devices needed to advance to socialism. But to achieve this “only”, there must be a veritable revolution—the entire people must go through a period of cultural development. . . . But it will take a whole historical epoch to get the entire population into the work of the cooperatives through NEP. At best we can achieve this in one or two decades. Nevertheless, it will be a distinct historical epoch, and without this historical epoch, without universal literacy, without a proper degree of efficiency, without training the population sufficiently to acquire the habit of book reading, and without the material basis for this, without a certain sufficiency to safeguard against, say, bad harvests, famine, etc.—without this we shall not achieve our object.”

The new importance given by Lenin to cooperatives was clear – “given social ownership of the means of production, given the class victory of the proletariat over the bourgeoisie, the system of civilised cooperators is the system of socialism.’

Today, unlike Russia in 1923, there has been no socialist revolution, in the sense that the capitalist state has been smashed and replaced, even if only by an unreconstructed one that Lenin admitted to in 1923.  On the other hand, for many countries, the peasantry is small or insignificant, while for others it is larger but not so preponderant as it was in Russia one hundred years ago.

The mass of the population is also more advanced and cultured than one hundred years ago, so that any successful revolution will not suffer from the same debilitating backwardness that Lenin believed would require another revolution taking “a distinct historical epoch.”

But before that, the question of a socialist revolution does not even arise among  today’s more advanced population, unless it becomes fully and completely committed to such a project.  It is not therefore the objective conditions for socialism that today are absent, in the sense of the broad cultural development of the working class, although this is far from fully developed, but the subjective perspective of the working class, recognising that this too has its own objective basis.

Rather than cooperatives being the sequel to socialist revolution, it may be better now to think of cooperatives as vital preliminary grounds upon which can be developed the political consciousness necessary to make socialist revolution a practical proposition.  The subjective ignorance of the working class of its interests in creating a new self-managed society might have its own objective roots in capitalist domination and in the lack of the prior development of cooperative production within existing class society.

In the final reflection on the Russian Revolution I will look at the key inspiration of that revolution – that it was a revolution desired and fought for by the majority of the working class.

Back to part 5

Forward to part 7

James Connolly, Socialism and Sinn Fein

The front-page headline of ‘The Irish News’ yesterday read ‘Sinn Fein and DUP accused of ‘political carve-up’ of £4m’ – a report on the joint decision of the two parties in Belfast City Council to spend £2m on museums and a ‘training hotel’.  The training hotel is a ‘social economy training hotel’ in the loyalist Shankill area and the museums include an Orange Hall museum and a ‘James Connolly Interpretive Centre.’

The latest collaboration between the two best of enemies has not been prevented by their failure to agree terms on a return to Stormont rule, and has been compared to the paramilitary slush fund that is the Strategic Investment Fund.  Opponents have claimed that the funding of the projects in the home base of the two parties has not offered “even an illusion of fairness” and has been put forward with a “complete lack of transparency”. According to ‘The Irish News’, Belfast City Council could not provide minutes of the committee meetings at which the decisions were taken.

The justification for the museums etc. is that they will hugely develop tourism and promote heritage.  So very Irish and very peace-process; money to oil the wheels of ‘peace’.

What James Connolly would have thought of his relatively short stay in Belfast being employed as part of a political carve up, with him on one side and an Orange museum on the other, is not hard to guess.  A report of the new ‘interpretive centre’ has a link to a speech by Martin McGuinness, stating that the centenary celebrations of the 1916 Rising and subsequent events should be “mature and inoffensive”.  One must therefore look forward to any new centre providing such an interpretation of Connolly’s views on Orangeism, with which his memory will now be twinned.

I also look forward to its interpretation of Connolly’s socialism, which is the very opposite of Irish republican and of much socialist opinion as well, and which is particularly apposite to this proposed municipal initiative.  The following article – ‘State Monopoly versus Socialism’ – written by Connolly in the ‘Workers Republic’ in 1899 is more relevant today than when it was written over a century ago:

“One of the most significant signs of our times is the readiness with which our struggling middle class turns to schemes of State or Municipal ownership and control, for relief from the economic pressure under which it is struggling. Thus we find in England demands for the nationalisation of the telephone system, for the extension of municipal enterprise in the use of electricity, for the extension of the parcel system in the Post Office, for the nationalisation of railways and canals.”

“In Ireland we have our middle class reformers demanding state help for agriculture, state purchase of lands, arterial draining, state construction of docks, piers and harbours, state aid for the fishing industry, state control of the relations between agricultural tenant and landlord, and also nationalisation of railways and canals.”

“There is a certain section of Socialists, chiefly in England, who never tire of hailing all such demands for state activity as a sign of the growth of the Socialist spirit among the middle class, and therefore worthy of all the support the working-class democracy can give. In some degree such a view seems justifiable. The fact that large sections of the capitalist class join in demanding the intervention of the State in industry is a sure sign that they, at least, have lost the overweening belief in the all-sufficiency of private enterprise which characterised their class a generation ago; and that they have been forced to recognise the fact that there are a multitude of things in which the ‘brain’, ‘self-reliance’, and ‘personal responsibility’ of the capitalist are entirely unnecessary.”

“To argue that, since in such enterprises the private property-holder is dispensed with, therefore he can be dispensed with in all other forms of industrial activity, is logical enough and we really fail to see in what manner the advocates of capitalist society can continue to clamour for such state ownership as that alluded to – ownership in which the private capitalist is seen to be superfluous, and yet continue to argue that in all other forms of industry the private capitalist is indispensable. For it must be remembered that every function of a useful character performed by the State or Municipality to-day was at one time performed by private individuals for profit, and in conformity with the then generally accepted belief that it could not be satisfactorily performed except by private individuals.”

“But all this notwithstanding, we would, without undue desire to carp or cavil, point out that to call such demands ‘Socialistic’ is in the highest degree misleading. Socialism properly implies above all things the co-operative control by the workers of the machinery of production; without this co-operative control the public ownership by the State is not Socialism – it is only State capitalism.”

“The demands of the middle-class reformers, from the Railway Reform League down, are simply plans to facilitate the business transactions of the capitalist class. State Telephones – to cheapen messages in the interest of the middle class who are the principal users of the telephone system; State Railways – to cheapen carriage of goods in the interest of the middle-class trader; State-construction of piers, docks, etc. – in the interest of the middle-class merchant; in fact every scheme now advanced in which the help of the State is invoked is a scheme to lighten the burden of the capitalist – trader, manufacturer, or farmer.”

“Were they all in working order to-morrow the change would not necessarily benefit the working class; we would still have in our state industries, as in the Post Office to-day, the same unfair classification of salaries, and the same despotic rule of an irresponsible head. Those who worked most and hardest would still get the least remuneration, and the rank and file would still be deprived of all voice in the ordering of their industry, just the same as in all private enterprises.”

“Therefore, we repeat, state ownership and control is not necessarily Socialism – if it were, then the Army, the Navy, the Police, the Judges, the Gaolers, the Informers, and the Hangmen, all would all be Socialist functionaries, as they are State officials – but the ownership by the State of all the land and materials for labour, combined with the co-operative control by the workers of such land and materials, would be Socialism.”

“Schemes of state and municipal ownership, if unaccompanied by this co-operative principle, are but schemes for the perfectioning of the mechanism of capitalist government-schemes to make the capitalist regime respectable and efficient for the purposes of the capitalist; in the second place they represent the class-conscious instinct of the business man who feels that capitalist should not prey upon capitalist, while all may unite to prey upon the workers. The chief immediate sufferers from private ownership of railways, canals, and telephones are the middle class shop-keeping element, and their resentment at the tariffs imposed is but the capitalist political expression of the old adage that “dog should not eat dog.”

“It will thus be seen that an immense gulf separates the ‘nationalising’ proposals of the middle class from the ‘socialising’ demands of the revolutionary working class. The first proposes to endow a Class State – repository of the political power of the Capitalist Class – with certain powers and functions to be administered in the common interest of the possessing class; the second proposes to subvert the Class State and replace it with the Socialist State, representing organised society – the Socialist Republic. To the cry of the middle class reformers, “make this or that the property of the government,” we reply, “yes, in proportion as the workers are ready to make the government their property.”

 

 

Workers’ cooperatives as an alternative to Capitalism – 2

10698536_420301091453164_5593204590190940624_nMarxists believe that conditions determine consciousness.  The ideas that most people have are products of their circumstances.  Currently workers sell their labour power as a commodity.  That is why they concentrate efforts on the price of their labour power (wages) and the terms and conditions at which it is sold.

It is why they value those services that they cannot provide for themselves individually but are unable to provide collectively because they lack the consciousness and organisation to do so.  This includes such things as unemployment insurance, pensions, health care and education.

The sanctification of capitalist private property means that the former is not strictly political while the distribution of the revenue from capitalism is.  Through the latter the working class is made dependent on the state for these services, including through employment in their delivery.  The welfare dependency culture repeated like a mantra by the right has this much basis in fact.

What there is not therefore is the material basis for the growth of a consciousness that workers should own, manage and control the productive activities of the economy and the state.  Instead the growth of the state and its acknowledged political leadership are the grounds for the view that the redistributive powers of the state are the basis for a solution.  This mistaken view takes the extreme form on the Left that the state should take over production itself.  Of course this has been tried.  It didn’t work well.

What we have with the Keynesian alternative then is an expectation, doomed to disappointment, that the capitalist state will divide the fruits of capitalism to benefit those who have first been exploited in opposition to those who have carried out the exploitation, which must remain in place in order to continue funding the redistribution.

Marxists believe that the future socialist society is not utopian because current society contains its anticipation in various ways.  Capitalism is pregnant with the future socialism; except that if the state is the embryo then the pregnancy taken to full term does not result in socialism but something else entirely.

Workers’ cooperatives are one of the crucial elements of this anticipated new society growing within the womb of the old.  It reunites workers with the means of production and removes the capitalist from the workplace.  It gives ownership to the workers and elevates their power, confidence and consciousness.  It can prepare the workers involved and other workers for the task of making the whole economy the property of the working class, which is socialism.

Workers ownership can provide the basis for workers to provide the services that are currently provided by the state and which leaves them at the mercy of the state and the politicians who preside on top of it.  Such services include education, health, welfare and pensions.  Workers self-provision of this would result in their own priorities being imposed on their provision.

However to posit this as the alternative immediately demonstrates a major difficulty.  While it is possible to envisage workers cooperatives supplanting individual capitalist production it is much more difficult to envisage this in regard to the services now provided by the State.  What this once again demonstrates is the role of the state as defender of the capitalist system – through exclusion of the working class from direct control within society and protection of the accumulation needs of capitalism.

Workers’ self-provision of what are now services provided by the state would necessarily lead not to demanding more taxation by the state but less, so that workers would have more control of their earnings and would have more to pool together and employ to their collective benefit.  In short workers would take more and more responsibility for their own lives, even when temporarily or permanently unable to work.  The dependence on the capitalist state would be weakened, at least in this respect.

In Ireland workers would have the grounds for recognising that there is an alternative economic development model to reliance on US multinationals.  They would have an example of a model of development that didn’t rely on the state.  They would have a living alternative to the threats that they need the capitalist banks.

Instead of workers relying on the state to provide for them by taxing the rich or investing in infrastructure to promote private capitalist investment they would have an alternative in which it is their own activity which is the alternative to capitalist crisis.

Is this the viewpoint of a reformist and utopian scenario?  I think not.

Firstly thousands of cooperatives already exist; they are not purely idealistic mental constructions.  What’s more they can be, and many are, very successful; providing hundreds of thousands of jobs.  Living proof that workers can do without capitalists to tell them what to do.  Workers can take control, can make decisions and can be successful.

The spread of workers’ cooperatives in entirely possible, their growth and development is not precluded by any necessarily limiting factor in capitalist development, at least to the point where capitalist accumulation appears threatened by it.

The trade union movement and the political organisations of the working class can play an important role in their development.  Workers’ cooperatives are therefore not an alternative to the existing workers movement but are something that can be complementary to its development, freeing it more and more from dependence on private capital and the state.

In fact workers’ cooperatives will inevitably demonstrate through their development the antipathy of the state to workers ownership and the power that workers as a class will develop as a result of its development.  The state will inevitably be used by the class it serves, the capitalist class, to undermine competition from workers cooperatives and support private capitalist accumulation.  Such a development will clarify the lines of battle between the workers’ movement and the capitalist system.

Workers’ cooperatives are not an alternative to class struggle but a means of carrying it out.  The creation of workers’ cooperatives in Argentina following its capitalist crises is evidence of this – how much better to promote workers’ cooperatives before such cataclysmic crises rather than in their midst or aftermath.

When workers say – “where is your socialist alternative after over a 150 years of your movement?”, we might have a living movement to point to rather than a simple promise for the future.

And such a movement will be an international one because just as capitalist development has become international there is every reason why workers’ cooperative production should also be international.  Every bit of such development will strengthen the international bonds between workers and undermine nationalist solutions that are currently growing.

In other words workers’ cooperatives provide the living link between resistance against the injustice of the current system and the creation of a real alternative.  Instead of simple rejection of cuts and lack of democracy workers’ cooperatives not only posit employment and democracy within the cooperative but the transition to a new society.  Workers’ cooperatives thus provide the material basis for linking the struggle against capitalism to the creation of socialism.

Workers’ cooperatives are not a magic bullet answer to the current crisis on the Left.  There is no simple or singular programmatic answer to a crisis that exists at the level of working class consciousness and organisation.  But for the Left a programmatic answer is currently by far and away the most important contribution that it can provide to workers.

Traditionally the revolutionary left has rejected workers’ cooperatives because they have been seen as an alternative to revolution – a militant class struggle against capitalists and the state culminating in an insurrection, the smashing of the capitalist state and creation of a new one.  I don’t think anyone can credibly claim that the patient work of class organisation involved in union organising, party building and creation of workers’ cooperatives would get in the way of a burgeoning revolutionary movement.  Anyway, when was the last revolution in an advanced capitalist state, one in which the working class is the vast majority of society?

It can be legitimately claimed that workers in existing cooperatives lack socialist consciousness so how can they provide the material basis for socialism?  This objection however must also take on board the reality that decades of union organisation has also not turned the majority of trade unionists into socialists.  However no one advocates abandoning the organisation of trade unions.

Finally an objection is made that workers’ cooperatives will simply teach workers to exploit themselves within a market economy based on competition.  They will simply become their own capitalists.

However, at the extreme, the ownership of all production by the working class would not only remove the capitalist class but would also remove the need for all allocation by the market, or by socially necessary labour time, to use the strictly Marxist definition.  In other words workers’ cooperatives would cooperate with each other.  Such competition as would exist would not play the same role as capitalist competition just as the continued existence of money tokens would not make it a capitalist system.

So for example, a factory making shoes that became unfashionable would not close down and throw its workers into unemployment but would see them transfer to either production of shoes that were in demand or to some entirely different branch of production.  Other workers would support this because they would all know that what they produce might equally go out of fashion, become technologically obsolete or have its workforce reduced by automation.  In the same way the receipt of money as salaries and wages would not mean that this money would exist as capital, able to purchase labour power in the pursuit of profit.

The current value of workers’ cooperatives is not just as living practical examples of socialism but that they allow theoretical and political clarification of just exactly what socialism is.  They shine a light on the difference between workers power and all the solutions that rely on the state – from Keynesianism to nationalism.

This is the second part of the post.  The first part appeared here.

Workers’ Cooperatives as an alternative to capitalism – 1

420389_494371703955556_1654331871_nIn October I was invited to speak at a meeting organised by the Glasgow South branch of Left Unity on the subject of workers’ cooperatives.  The post below is the first part of the text on which the speech delivered was based.  I would like to thank the comrades for the invitation and for the couple of pints in the pub afterwards.

 

The first thing I want to do is look at two problems to which I think workers’ cooperatives can play an important role in providing an answer.

In 2008 the Irish banking system was on the verge of complete collapse.  It had lent exorbitant amounts of money to commercial property development and for the construction of houses.  Not only finance but employment and state revenue became overly dependent on construction.  When the price of houses rose beyond a certain point, and when the commercial property market became saturated, the over-extension of property developers became evident in bad loans that bankrupted the banks.

This was an international problem because much of the financing of Irish banks came from Britain, the US and Germany for example.  The bankruptcy of the Irish banks would thus have had severe repercussions for investors in these and other countries, including the financial institutions in these countries.

To save the Irish banking system, to bail out the native bankers and foreign investors, the Irish Government launched a bailout of the banks through a state guarantee of all their liabilities, worth around €440 billion in an economy nominally producing €154 billion a year.  It was declared ‘the cheapest (bailout) in the world’ by the Irish Finance Minister.  This could not possibly be afforded and has so far cost an estimated €64 billion, although the exact figure is still a matter for development.

This bill and the huge budget deficit caused by the collapse of construction resulted in a series of attacks on working class living standards involving seven austerity budgets consisting of a variety of tax increases, cuts in public services and investment, the robbery of workers’ pension funds, massive unemployment, emigration and lots of praise from around the world at how well the Irish swallowed the austerity medicine.  From poster boy for the boom the Irish have become poster child for austerity.

In the following election the ruling Fianna Fail party was badly mauled and a coalition of Fine Gael and Labour Party was elected on the promise of a ‘democratic revolution’ and by Labour the promise it would reign in Fine Gael.  The vote was a choice between ‘Labour’s way or Frankfurt’s way.’

In truth however no one could really be surprised that this coalition continued and intensified the policies of austerity began by Fianna Fail.  That anyone thought differently demonstrated only a very low political awareness.

On the ‘left’ 5 United Left Alliance candidates were also elected and 14 Sinn Fein TDs out of a total of 166, although Sinn Fein had also voted for the bail-out.

In 2012 the Irish State was compelled to hold a referendum on the new EU Fiscal Compact that limited state deficits and debt.  It basically required signing up to continued austerity which is why it was called the ‘austerity treaty’.  Despite the unpopularity of austerity it was approved by 60% to 40%.  In my view a crucial reason for this was the complete lack of a convincing alternative.

What was the alternative proposed?

This consisted of a number of elements – repudiating the debt, opposing austerity, taxing the rich, and increasing public expenditure in order to improve public services, boost employment and further economic growth.

There are two points to note about this alternative – first it doesn’t change the nature of the economic system, it is what is called Keynesianism.  This does not mean that socialists should not support some of these measures, or point out the hypocrisy in their not being implemented.  But the question is, if the problem is capitalism and this alternative doesn’t threaten the system then quite obviously it cannot be a solution.

The second flows from this, because if it isn’t a solution would it actually work?  I’ll just take two examples from this programme – why on earth would the rich allow their wealth and income to be taken off them?  And how then could the state increase public sector investment when it was heading towards budget deficits of over 13%?

This illustrates a deeper problem with looking to the state as a solution.  This is because the burden placed on Irish workers was not simply, or even mainly, carried out by the banks and property developers.  It was the State that made their debts the debts of the Irish people and it has been the State that has increased taxes and cut services, making their own particular contribution to cutting wages and increasing unemployment.

Since the state is a capitalist state, funded and staffed at the highest levels by the propertied classes this can really be no surprise.  The actions of the capitalist state are not therefore the answer.  Not only does it not have any interest in providing a solution but it is incapable of being the solution.  State ownership, bureaucratic ownership, is not democratic and is totally unsuited to running productive activities the civil servants that staff it have no knowledge of.

There is no point calling for the state to nationalise the banks – they did and that was precisely the problem!

At bottom this is the root of the failure of resistance to austerity and is why it has not only failed in Ireland but in every other country affected by the financial crash.

The second point is connected to all this.  If the Keynesian alternative is not a road to socialism what is the road to it?

The alternative to the view that the capitalist state will reform society is that the state is actually the mechanism for enforcing oppression and exploitation and should therefore be smashed.  In this scenario of revolution the oppression of capitalist society breeds resistance which develops into a revolutionary seizure of power by the working class that then proceeds to build a new socialist society.  In this society the market is replaced by planning and capitalist economic crises become history.

But how are workers to become aware that their own ownership and control is the alternative?  How does it not only come to consciousness of this but is actually trained, ready and able to play this role?  How in the middle of crisis is a workers’ economy supposed to rise from the ashes more or less fully formed and present itself as a qualitative advance on what has went before?

Of course in some ways capitalism itself anticipates this planning through the growth of big business with advanced forms of planning within it, increased cooperation between companies that ostensibly are in competition and increased interdependency of different firms and different countries, encapsulated in the term globalisation.  This has all been demonstrated negatively through the simultaneous near collapse of the financial system, world trade and economic growth through the credit crunch plus the increased role of the state despite privatisation.

There is however one thing missing from this anticipation of the new society in the existing one and one thing missing from the scenario of revolutionary overthrow.

The missing factor is what the new society, the harbinger of socialism, actually is – the rule of the working class and its allies; the rule of the majority of society in place of the capitalist class and its managers, bureaucrats and politicians who all currently administer its rule.

Where in the anticipation of socialism within existing capitalist society is the growth of workers participation in running the economy, in preparation for taking over complete control?  Where are the grounds for workers to build a new society before, during and after revolution?  Where is the alternative that would avoid a new version of Stalinism where the State rules society rather than a society ruled by workers subordinating the state? Where even arises the motivation for workers to see that their own rule is the only valid unfolding of their resistance to the exploitation, oppression and iniquity of current society?

How are workers to come to see that it is they that not only can but must take control of society and its productive powers if they do not first take initial steps now through workers’ cooperatives?  Are we to believe they will suddenly come to realise through a revolution – an episode of at most a few years – that they must take over the economy?  How will they come to seek this as their solution unless many of them have already tried to do it and become committed to it?

 

The Scottish referendum result – Part 2

ftdownload (1)In the first part of this post I noted that some ‘Yes’ voters said that their decision was not a vote for nationalism.  I said that in one sense this is very important but that in another it doesn’t matter.  It doesn’t matter because, as I explained, the objective significance of an action is often very different from the subjective intention of the person acting it out.

On the other hand subjective intentions are important because if these voters were really for social justice, and saw independence only as a means to this, then these voters are open to arguments that there is a very different and much better road to take in order to fight against austerity and for a new society, one based on internationalism and not on nationalist division.

It must be clear to such people that the referendum was deeply divisive not only between Scotland and England and Wales but also within Scotland itself.  Much has been made of the bullying of the British establishment and big business, and I will come to this, but it is also clear that big sections of Scottish nationalism ran an aggressive campaign that is incapable of seeing political questions in other than rancorous and bitter nationalist terms in which the Scottish people are either courageous or fearties, confident or scared, proud or filled with low self-esteem.  Many No voters claim to have felt intimidated.

The nationalists have lost the vote but they clearly believe the relative success of their campaign may allow them to continue to push the nationalist agenda.  Already Salmond is claiming the promises of the ‘No’ parties are a trick, and by implication calling into question the basis of the referendum result.

The promises of the Labour, Conservative and Liberal Democrat parties were one of two factors at the end of campaign which appear to have made some difference to the vote, with this one being the most important in this respect.  It is also therefore important that the promises of these parties are carried through and that additional devolution is given to Scotland.

The purpose of this is not to make the lives of Scottish workers better.  The SNP and nationalist movement have made much of getting increased powers for the Scottish parliament but such is the political shallowness of Scottish nationalism that it hasn’t even used the powers it already has.  The SNP has refrained from increasing taxation, and spending more on state services, for the same reason the Tories in England have opposed it.  Political attitudes are not so very different north of the border.

This is not the sign of a popular movement bursting with ideas to transform Scotland into a social democratic nirvana but a cynical populist one that damns Thatcherism while stating “we didn’t mind the economic side so much”; condemning Labour for sharing platforms with the Tories while the SNP relied on them as a minority administration to stay in office, and now demanding more powers when it hasn’t used existing ones.

The main purpose of ensuring the promises are kept is to confirm the validity of the result and to stymie the nationalist project.  This project has already engendered division within Scotland but has also fanned the flames of English nationalism.  That there is nothing inherently progressive about devolution is demonstrated by the Tories attempt to compete with the nationalism of UKIP by demanding ‘English votes on English laws’ and a diminution of the role of Scottish and Welsh MPS at Westminster.

The plans being hatched by the Tories have implications for the spread of resources across the UK and most of them aren’t good.  The demand for redistribution of such resources demanded by Scottish nationalists is a game that can be played by English nationalists, although of course the former can easily see through the greed, selfishness and divisiveness of the latter.  Other people’s nationalism always looks narrow-minded and egotistical.

For Scottish workers, and for their English and Welsh brothers and sisters, the fight against austerity and for improvements in their position cannot be won either by relying on the combined promises of the Labour, Tory and Liberal Democrat parties on devolution or by deepening nationalist division within and without Scotland.  An entirely different road needs to be taken.

If, for example, the Radical Independence Campaign is sincere that independence was not a goal in itself, but only because its supporters believed it made social justice and equality easier to achieve, will it now fight as equals with workers in the rest of Britain against austerity?  Or will it divide these forces by seeking change only within Scotland?  Will it argue that English and Welsh workers should join them in a campaign or will they maintain that these workers should remain separated and do their own thing?

Do they believe that justice and equality relies on independence or that such ideals are by their very nature international ones?  Do they really believe that further nationalist demands will further workers unity or will even be successful?

Is self-determination only the right to say ‘Yes’, and just what sort of self-determination would this amount to?

If they maintain the demand for independence as a necessary part of their work against austerity then they not only cut themselves off from English and Welsh workers, they also cut themselves off from half of Scottish workers.

The second new element in the latter days of the campaign was the prominence of threats by big business in the event of a Yes vote.  The pound sterling fell in value, dropping over 2 per cent against the dollar in the days following an opinion poll showing the ‘yes’ campaign with a small lead.  A fall in the value of the currency would mean that Scottish workers would pay more for imported goods.

Five Scottish banks said they would relocate their headquarters south of the border in the event of independence.  The chair of the BT group, deputy chairman of Barclays and president of the Confederation of British Industry said independence would destabilise investment in Scotland and Aegon and Standard Life also said they would move their registered offices.

The ‘Financial Times’ (FT) reported that funds data provider EPFR had said that $672m had left UK equity funds during the week, the second biggest since its records began in 2001, and one of Germany’s biggest asset managers was going to reduce its holdings of UK equities and bonds.  Share prices were therefore falling.

The FT also reported that Trusts with investments in fixed assets in Scotland such as wind farms had been engaged in an investment strike and that corporate investors had pulled more than $14bn from 36 funds with primary operations in Scotland since January.  The FT also pointed out that big Scottish companies have more customers in England than in Scotland, such as Standard life, which has 90% of its British clients south of the border.  Seventy per cent of Scotland’s external trade is with the rest of the UK and in a survey, 65% of 200 of the City of London’s top investors believed Scotland’s economy was ‘at risk’ if it voted Yes.

The message was that in the event of  a ‘Yes’ vote big business would stop investing, would move out, tax revenues of the new state would fall, its currency would devalue and jobs would be lost.

The reaction of Alex Salmond and the SNP was revealing.  Just like its response to the UK-wide parties’ claims that they would not participate in a currency union, Salmond and the SNP did not accuse big business of bullying and threatening behaviour but of ‘scaremongering’ in a campaign orchestrated by David Cameron.

In other word big business didn’t really mean what it was saying and there was nothing to worry about – an independent Scotland would be good for them.  Of course they didn’t address the problem that it wasn’t just a matter of what big business were saying but of what they were actually doing.

Salmond and the SNP could not directly challenge big business aggression because their whole case is that an independent Scotland would benefit it.  The leadership of Scottish nationalism is not anti-business, it is not ant-capitalist.  Its reaction to opposition by big business to their plans demonstrated that they are pro-capitalist, hence the weakness of their response.

The capital that supports the SNP and Scottish independence is generally small sized and there is nothing more progressive about small business with its more parochial political outlook and big business with its more global concerns.

Only one prominent independence supporter took up a different response.  Jim Sillars, a left nationalist, stated that the oil company BP would face a “day of reckoning” and nationalisation because of its opposition to independence.  However by and large the mainstream nationalist movement left him on his own and the last thing the SNP wanted were threats to business in its campaign for a business-friendly Scotland.

Not that Sillars threat was any sort of alternative.  Nationalisation would either be limited or it would produce a flight of capital.  In itself, unless there is fixed assets in the country, investment and money can move quickly out of the country and avoid nationalisation.  The Scottish State is in no position to pursue such a strategy to utmost effect and would sooner rather than later back down in the very, very unlikely event it pursued any sort of nationalisation.  The Scottish state cannot manage and operate the Scottish economy.  It would be the Soviet Union writ small.

In any case the nationalisation of the Scottish economy would not be the introduction of socialism but would rather represent a move towards national autarky with a more and more internationally isolated economy.  This is the road to regression, not to the future.  State ownership is not socialism; it is not the exercise of workers’ power.  Look at the activities of the State today?  Do Scottish workers run the state currently?  Do they have any hands –on control of it now?

The state is a strictly hierarchical structure with a bureaucracy and it is this bureaucracy that would manage and run state-owned industry under such a policy, not its workers.  That’s how all nationalised industry has worked.  In effect the state becomes the capitalist.

Real socialism on the other hand would mean BP workers owning and managing the company just as workers across the economy would own and manage their own workplaces and firms, joining together to reproduce the cooperative character of their company outside it across the wider economy.

Unfortunately the cooperative movement is currently too small and politically undeveloped to step up to the challenge of running society and the labour movement has not taken upon itself the task of making this its goal.  The sabotage of big business and the strangulation of bureaucratic state control would both produce disaster but the working class is not yet in a position to put its own rule forward as the solution.

This is nevertheless the real solution to the problems posed in the referendum debate.  The alternative to austerity is a new social system that priorities the satisfaction of social needs and not private profitability.  The answer to the demand for a democracy that satisfies the demands of the majority is a society where this majority controls society itself, not seeks the promises of career politicians to do it all for them.

Only a state structure and apparatus that isn’t separated from workers but whose management and control is a part of their working lives can end the subordination of working people to the bureaucratic state.  A country that really is ‘ours’ can only exist where the productive infrastructure of society that satisfies it varied needs is owned directly by society itself and directly managed by it.

The possibility that such a society can exist is demonstrated by existing cooperative production.  What such production needs is its extension, its politicisation by socialists and the creation of a new workers’ cooperative State that protects this form of production.

It is ironic that Monday’s ‘Financial Times’ contained an article in the Fund Management section of that paper which was headlined ‘power to the (working) people works’.  This provided evidence that even financial asset investment it is firms that are majority owned by their workers or have some form of workers’ ownership that perform best.

Rather than seeking a new capitalist state as the answer, the lesson of the referendum is that the most impressive power comes from working people themselves when they begin to organise.  Instead of falling in behind any variety of nationalism working people should set out a programme that advances and develops their own power so that one day it is their own independent power that becomes the alternative.