The comment below to a previous post is almost perfect in illustrating the illusions that exist on the role of the state and for which the series of posts were written. It is therefore worthwhile bringing greater attention to it along with my response:
=====================================
I would have reservations about what you say about the State and capital relationship. Both sides of the equation seem to be too general, categories that are not specific to time and place. I find the categories of the public sector versus the private sector a little more specific. The key thing here is that there has occurred over the last thirty years a major transformation in the relation between the two sectors. In short hand, there really is no public sector to talk about in the way we once did. One should preface talk about the public sector with the phrase ‘so called public sector’. The public sector has been taken over by the private sector yet throws over this capture an appearance of being in the hands of and being managed in the interest of the public.
When you use the public health service it is easy to believe that you are being served by what used to be known as the public sector, when in fact your are not, most of the services are provided to the hospital you are using by many private companies. This is just one example of many. It is interesting to see how in Britain many of what you would once have thought of as classic public services are in fact in the hands of private companies like SERCO.
I read the policy documents of the World Economic Forum and everything is dressed up in the clothes of Public Private Partnerships, something designed to deceive. What we mostly end up with, are private companies extracting money from what used to be called the Public Purse. Even the Dole broadly defined is operated by private companies pretending they are public bodies.
In a nut shell it is important to keep up with changes that have only recently occurred, over the last 30 years, not to get stuck using doctrines about State and Capital that are so universal that they pass over the particularities that now prevail.
RTE was once upon a time a part of the public sector, yet the funding came from both the licence fee and income raised from commercials. A model I have to admit I never liked, when I watch it I can’t stop moaning about the deluge of commercials, I have to sit through, more frequent than the those you get with British commercial television, four breaks for ads every hour. So the public broadcaster always had one foot in the commercial private sector. I wonder if State capitalism ever actually existed in the Republic of Ireland. When I travel from the North to the South I am struck by how more commercial the South seems to be, maybe this is too is deceptive.
=================================================
You write that the categories of State and Capital “are not specific to time and place” and that “the categories of the public sector versus the private sector [are] a little more specific”, and that the public sector gives “an appearance of and being managed in the interest of the public.” Of course, the opposite is the case.
“Public” and “private” in these contexts are empty abstractions designed precisely to obfuscate the real situation and to give appearances that essentially deceive. So-called public sector organisations are presented as if they serve the public but experience illustrates otherwise, as the posts on RTE demonstrate. The reformist left pretends that failures are due to the corruption of ‘public’ sector ownership by ‘private’ interests but the ‘public’ (however understood) does not own or control it; as we have seen from their sale and from the complete and utter lack of democracy and accountability in their operation.
Even ‘private ownership’ is no longer dominated by single ‘private’ capitalists but by collective pools of capital, including pension funds of workers, as well as pools of money of separate capitalist companies and ultra-rich individuals. Capital is being socialised but is still capital, so operates according to the laws set out by Marx, while the state is not the depository of the ’public’ or general interest but of the interests of the capitalist class as a whole. Again as set out by Marx.
It is a body separate and above society, which, while it rests on society, has its own interests that are intimately tied to the capitalist system and to various fractions of the capitalist class or to individual capitalists. Precisely in what way permits greater specification of their forms that are “specific to time and place”, which you see as the shortcoming of these categories. The general abstractions of ‘public’ and ‘private’ go nowhere, while the Marxist categories of ‘state’ and ‘capital’ have engendered whole libraries of analysis and empirical studies.
As I wrote on Facebook about the controversy at RTÉ – ‘it wasn’t commercial interests that decided to pay one presenter over €500,000 per year. It wasn’t they who doctored the accounts to hide this. It wasn’t they who cut other RTÉ workers’ salaries and conditions, and it wasn’t these interests who wasted millions by, for example, buying thousands of euros worth of flip flops on ‘barter accounts’. So what is it with “public service broadcasting” that requires so much forgiveness and support?’
Illusions in the ‘public sector’ are deep. Consider these facts:
During the Covid-19 lockdown everyone was invited to clap for the NHS in the North and in Britain when it had closed its doors to other services, with lasting effects we still suffer from, while it spent billions of pounds on useless equipment from the cronies of the Tory Party. Everyone now complains that they struggle to get a GP appointment, and that the service is crumbling, while more and more are signing up for private healthcare if they can afford it. If the ‘public’ sector really was there to serve the public none of this would be happening. If it really belonged to ‘the public’ it could be stopped but it can’t in its present form of state ownership.
The NHS is a bureaucratic monster. We recently learned of the neonatal nurse, Lucy Letby, who murdered at least seven infants and attempted to murder at least six others in her care between June 2015 and June 2016. The worst serial killers in British history have been ‘public sector’ employees paid to care for the public. It would be possible to write these off as tragic anomalies were it not for the fact that such scandals are exposed on a regular basis and are certain to recur. Only when workers and patients have the power to control and make accountable these services will this change, and this will only happen when these services are removed from bureaucratic state control.
You write that “most of the services are provided to the hospital you are using by many private companies” but this has always been the case. One of my first jobs was processing invoices from these companies in the NHS, from medical devices to food to pest control. The use of agency staff, employed indirectly through private companies, has certainly increased, but this is because the terms and conditions are better in some ways so workers such as nurses would rather work for an agency. In the last year millions of ‘public sector’ workers have gone on strike to get higher wages in defence of living standards ravaged by inflation, in the teeth of opposition by their state employers. Many workers in the private sector have already achieved higher pay increases without even having to go on strike.
You are correct to say that many previous state services have been privatised and often this leads to attacks on workers’ terms and conditions as well as deterioration in services. This often obscures the poor services previously provided under state ownership, as evidenced by telecoms in the South of Ireland. Much of the left opposed the creation of a single water authority in the Irish State, forgetting the failure of the previous mode of state ownership.
While it is correct to oppose privatisation it is no alternative to champion ownership by the state. The use of the term Public Private Partnerships, which you state is “something designed to deceive” is only true in one sense, for those with the illusion that state ownership is on behalf of the public. The purpose of the capitalist state is to protect capitalist ownership of the means of production, which is a sort of partnership. The use of the term Public Private Partnership is therefore not “something designed to deceive” but is actually a more accurate description of the relationship between State and Capital.
The alternative is workers’ ownership and not the belief that capitalist state ownership can be made democratic. This, of course, does not prevent us furthering any democratic changes that are possible without illusion that they are adequate or any sort of solution.