Karl Marx’s alternative to capitalism – part 13 Mandel vs Warren

neoliberalismnCertain aspects of the debate between Mandel and Warren obviously reflect the period in which it occurred, particularly post-war social democracy, Keynesianism and the accepted role of the state in economic policy.  Some of this would appear to have been misunderstood as simply due to the power of the working class in defining the priorities of society; as opposed to the socialisation of capital and production noted by Marx as a developmental law of capitalism, with an increased role for the capitalist state in this process.  In this development the priorities being asserted were primarily those of capital and capitalism.

The period commonly called neoliberalism has demonstrated both that the working class does not shape economic and social policy through the capitalist state but against it, and that even when it has been unable to assert its interests as much as previously, the welfare state may have reduced and become more strict and punitive but it has not been abolished.

The economic role of the state despite the rhetoric has continued to be large and no one now should be confused that this somehow signals the presence in its operation of the predominance of social priorities set by the working class.  All this should be apparent from the experience of the last 50 or so years, at least with hindsight, although the renewed appearance of a Labour Party left demonstrates the need to learn these lessons again.

This period has also demonstrated that the need for capitalist profitability conflicts with the social needs of working people and that Mandel is surely correct that there are limits to the extent which the latter can be accommodated within the former without instability and explosive conflict.

While both Mandel and Warren are keen to emphasise the political nature of the means by which capitalism will transition to capitalism – class struggle and revolution in the case of Mandel and class struggle and reform, particularly of the state (within limits set by capitalism) in the case of Warren – both appear to take for granted that the productive forces and relations of production have laid the grounds for their particular approach.

Except however that Warren does integrate the development of the productive forces into his analysis of the development of socialism out of capitalism better than Mandel, for whom they are simply a precondition already achieved.  Warren envisages their further development, which has been the case since he wrote, but suggests a means by which this can be the growth of the socialist alternative within the capitalist system.

He argues that socialism will not be the result of a revolution, which must provide its own grounds for success, but from the working class developing itself and its role, to be the leading class in society based on the growth of the productive forces.  Mandel is correct that ultimately working class direction of these forces is not compatible with capitalism, the working class cannot be hegemonic within capitalism, but Warren is correct that the working class needs to develop its social and political power in advance of a political contest for state power.  How far this might go is not predetermined even if its limits are.

Warren is wrong to have seen the developing role of the state as reflecting the increasing role of the working class and its priorities within capitalism but not wrong to see that the latter could take place.  The working class must seek to take a greater and greater conscious role in directing society, within capitalism, firstly by creating and directing its own organisations – its trade unions and political parties.  Its imposition of reforms upon the capitalist state is entirely secondary.

But it should also seek to direct the forces of production themselves through worker-owned cooperatives.  In this way it begins to challenge the capital-labour relationship even if only, as Marx says, to be its own exploiter.  In doing so it becomes its own boss, it raises the horizon of cooperation outside the cooperative enterprise as well as within it – in other words a cooperative economy, and it raises the need for a state that can defend, extend and advance workers ownership, a workers’ state that really does reflect working class priorities.

Otherwise the desire to control society upon which a socialist revolution is predicated is presumed to arise from a pure inability to have any control whatsoever; from disempowerment and failure of capitalism.  But the failure of capitalism to do what?  To deliver the goods in terms of standard of living?  But both Mandel and Warren agreed that this will not be the case, at least not in terms of immiserating the working class.

The case for workers’ cooperatives, as also with trade unions, is not reduced but can actually be strengthened during periods of capitalist prosperity.  Their possibility is not reliant for credibility or purpose purely on capitalist crises, which, Marx noted, are not permanent.  The growth of such cooperative production thus does indeed place the working class in a position to more and more become the leading, hegemonic class in society, even if this must be consummated by capturing political power, an objective to be fought for by a mass working class party.

Of course, it is extremely unlikely that either the capitalist class or its state will facilitate or allow the development of workers’ ownership and of a cooperative sector within the economy that would grow to such scale that it determines the overall dynamic of society’s productive forces and its productive relations; that simply needs completion by creation of a new workers’ state for there to be a new working class mode of production, one that is the direct road to socialism.  But such capitalist opposition is testament to the objective role of the growth of cooperative production in digging the grave of capitalist production.

In all this however it is clear that it is the development of political consciousness that is key.  Only through its development will workers become active makers of their own future, seeking greater and greater control over their lives and thus greater and greater control of society.

break-glass

Marxists believe that it is material conditions that generate consciousness and the purpose of the last number of posts in this series has been to argue that it is not at all clear that conditions of crisis can generate socialist consciousness.  They have not done so in Ireland and some of the first posts on this blog were a record of how previous capitalist crises generated reactionary solutions.  The growth of xenophobic and racist solutions today are testament to this.

Back to part 12

Karl Marx’s alternative to capitalism – part 12 Mandel vs Warren

mandel3In 1969 the Belgian Marxist Ernest Mandel wrote an article for ‘New Left Review’ that discussed the question “when, why and how will the great majority of the American working class (the white working class) revolt . . . by making a socialist revolution.”

He went on to say that “in the history of the world socialist movement, there are only three fundamental answers to this question. One is the answer given by utopian socialists, and various propaganda sects of very different colours and origins, who all agree on one basic point: that the working class (or mankind for that matter) will never move towards socialism as long as it has not ‘seen the light’—i.e. let itself be persuaded by the particular creed of the particular sect in question.”

“The second answer, diametrically opposed but parallel to the first one (and as fundamentally wrong) is that ‘when objective conditions are ripe’ (when ‘the productive forces have ceased to grow’; or when ‘misery has become unbearable’; there are many variations of fatalism), the ‘workers will become socialists’ and ‘make a revolution’.”

“The third and correct answer, that of the classical socialist movement, perfected by Lenin, says that workers will make a revolution when (a) socialist consciousness has been introduced in their midst by an organized vanguard; (b) this consciousness merges with a growing militancy of the whole class, which is a function of growing social contradictions, and (c) that militancy emerges into an objective situation of sudden and extreme instability of the ruling class (a ‘prerevolutionary situation’, a ‘revolutionary crisis’).”

I don’t agree with this third answer.  Experience has been that point (a) has been very much like the first answer; that (b) is just a restatement of the second answer and that (c) is an inadequate basis for socialist revolution, as this series of posts on capitalist crises has hopefully demonstrated.

The introduction of socialist consciousness by an organised vanguard can only be something more than a propagandistic sect if there is some material basis for the generation of socialist consciousness among the working class.  By the latter I mean recognition that workers must own the means of production, not capitalists and not the state, and that they need to rule politically, through their own state.  A small propagandistic group cannot generate and convince millions and a vanguard would need to be so large that it needs explanation itself and is not an explanation.

Militancy is necessary arising from social contradictions but this militancy is never without purpose so the nature of the contradictions on which it is propelled plays a large role in determining this purpose, in channelling the militancy along certain lines, towards certain solutions and with a certain consciousness and political understanding appropriate to it.  Militancy usually takes the form of action around the role of the workers as seller of his or her labour power – over wages, conditions or the inability to sell labour power at all and suffering from unemployment.

Since the key to socialist consciousness is rejection of labour power as a commodity, the ‘wages system’, there is a qualitative leap in consciousness required from such militancy. Reformist politics which simply seeks better terms for the sale of workers’ labour power is normally better placed to represent and capture such consciousness, whether this reformism genuinely seeks to achieve the aims of the militancy or not.

So whatever contradiction exists within capitalism that brings to the fore workers’ lack of ownership of the means of production is best placed to provide the soil and nourishment for the socialist consciousness out of the militancy generated by this contradiction.

So a better definition of the conditions conducive to socialist revolution would involve, if we take Mandel’s approach: (1) a socialist vanguard which is a mass movement that is derived from a fundamental objective feature of capitalism committed to the conscious building by workers of a mass party plus (2) a wider militancy that is based upon a contradiction of capitalism that points to socialism as the resolution. These are two expressions of the same process with different levels of consciousness characterising different layers of the working class arising from the relevant capitalist contradiction, which is necessary for (3) any crisis of class rule, which is to lead to socialist revolution.

The key is not therefore the crisis or, as Mandel puts it at the end of the article: “these subjective factors, reacting from the social superstructure on class relations, cannot be the main cause of a new mass radicalization of that working class. The main cause can only be found in a change of material conditions. The growing crisis of American imperialism can only transform itself into a decisive crisis of American society through the mediation of a growing instability of the American economy. This is our key thesis.”

Crises are an intrinsic part of capitalism; like troubles, we do not have them to seek.  What we do have to seek is the objective contradictions of capitalism upon which a subjective socialist movement of workers can be built.  And like crises, the contradictions of capitalism are also not hard to find. The creation of a workers movement that seeks their resolution in socialism is the task and not a vanguard that can lead workers to take advantage of episodic crises, which are not permanent, to seize political power without first having established that for the working class itself this is what its objective should be.

Just as capital is both a thing and a social relation; money, commodities, machinery and factories etc. while also the relation of the exploitation of workers labour power to create more value than that which they are paid; so the movement that overcomes capital will be both a thing that demonstrates the objective overcoming of capitalism and also the relation of workers breaking from capitalist exploitation through breaking the monopoly ownership of the means of production.

In 1974 Mandel engaged in a debate with Bill Warren, a writer with quite different views, about the capitalist crisis that had developed at that time and about what the crisis meant for the strategy for a working class conquest of power.

Warren argued that capitalism and its development of the productive forces was less and less effective in responding to the social needs of workers which the system itself had developed.  This incapacity of capitalism was reflected in the increasing role of the state which carries out roles of economic distribution that allocation through the market cannot.  The working class develops new aspirations for itself and becomes a decisive factor in the direction of this increasing state control.

Warren therefore writes that “It therefore seems to me that the long-run strategy of the working class must be to centre the struggle around the control of economic policy. To put it somewhat differently: if the working class is to develop as the leading class within society, as a hegemonic class, it must itself become a leading class within capitalism before it conquers state power. . . it seems to me that the present characteristic of Western capitalism is not one where the working class can rely on stagnation, slump or decline in order to conquer power, but, on the contrary, must rely upon its ability to increasingly lead society in such a way as to control the economy in a fashion more relevant to social need.”

Mandel disagrees and comes straight to the point:

“I would agree with Bill Warren that the case for socialism should not be based on the fact that capitalism produces increasing misery, or even a decline in material wealth . . . I do not think that the working class can become the leading class in society before it has taken political and economic power. I think that the very characteristic of the capitalist economy is that you cannot run that economy on basic lines other than those of capitalist interest. That is to say: on the lines of profit.”

Warren’s reply is that the British economy had already changed dramatically since the 19th century, that a large proportion of the population was employed in non-profit sectors and a large part of investment was state led.  This is a process that had taken a long time but one which had gradually been able to impose working class social priorities on capitalism.  The problem has been that the working class had not attempted to carry out these changes within capitalism as a leading class, as a class leading society in order to bring about its social priorities.

Nevertheless, despite the fact that it has not acted as a dominant class within society, but rather as a subordinate class, it had nevertheless brought about extremely fundamental changes in capitalist society. What’s more to the point, it had been able to bring these changes about without any major disruption in the ability of capitalist society to continue to work relatively effectively. These extremely fundamental changes had been compatible with the operation of the profit motive.

He went on to argue that “The kind of process that I am invisaging, in other words, is one in which the working class actually intensifies class struggle over the imposition of social priorities, but does so in a way which is consistent with a realistic way of keeping the capitalist economies operating. This has already happened in the past.”

Mandel concludes by recognising that “the might of the working-class movement has enabled it to realize through society, to impose on the capitalists, a certain number—I would be much less optimistic than he in my assessment of its achievements—but a certain number of social priorities. That is the main contribution which the working-class movement has made up to now, through the improvement of the situation of the working class and to the change in social conditions in general. There is no dispute about that. People who dispute that would dispute the very existence of more than 100 years of mass organization of the working class. But I would strongly deny the possibility that this process can grow in an unlimited way without bringing social and economic contradictions within the capitalist system to an explosive point.”

to be continued

Back to part 11

Forward to part 13

Karl Marx’s alternative to capitalism part 11 – crises and contradictions V

paris-communeWhen we consider the role of capitalist economic crises in the creation of a new society we are not short of guidance.  Capitalism has had so many crises that there have been innumerable opportunities to investigate just how such crises prompt or accelerate the socialist alternative.  In Ireland, the economic crash of 2008 destroyed the credibility of the main capitalist Party, Fianna Fail, whose Finance minister had hailed “the cheapest bail-out in the world” before it bankrupted the state and brought in the IMF, European Central Bank and European Commission to determine the state’s response to the crisis.

Yet this enormous crisis and exposure of the credibility of the economic and political system did not lead to any qualitative increase in the power of the Irish working class or of those political forces seeking to replace capitalism with socialism.  Indeed there appears to be a greater chance of more or less the same economic and political crises happening again, with an overheated property market, massive debt, and the working class responding only to the rhythms of the capitalist boom and bust, currently by attempting to make wage gains during the boom but without any perspective for the bust.

In this its short-sightedness is understandable and so is that of the left that claims to be far more far-seeing and which would claim that, like Marx, “in the movement of the present, they also represent and take care of the future of that movement.”

But only if the left learns that it must properly prepare for such crises and not simply await them, hoping that they push workers into its arms, will it have learnt something.  The experience of previous generations of socialists should be drawn upon to see what lessons must be learned.  It is clear that Marx himself learnt from crises and from the role they could play in ushering in or assisting workers’ revolution.

Even as a young man Marx understood the need for patience and preparation – “we must expose the old world to the full light of day and shape the new one in a positive way. The longer the time that events allow to thinking humanity for taking stock of its position, and to suffering mankind for mobilising its forces, the more perfect on entering the world will be the product that the present time bears in its womb.”

A few years later Engels made a similar observation:

Question 15: Do you intend to replace the existing social order by community of Property at one stroke?

Answer: We have no such intention. The development of the masses cannot he ordered by decree. It is determined by the development of the conditions in which these masses live, and therefore proceeds gradually.

The point is not that both Marx and Engels sought to delay revolution but that they understood its prerequisites.  At this time they believed that not all countries were ripe for social revolution, which would depend mainly on the fate of Britain.

Even in the democratic revolution in Germany in 1848 Marx was clear that revolution could not be decreed, even if certain lines of march could be advanced:

“We do not make the utopian demand that at the outset a united indivisible German republic should be proclaimed, but we ask the so-called Radical-Democratic Party not to confuse the starting-point of the struggle and of the revolutionary movement with the goal. Both German unity and the German constitution can result only from a movement in which the internal conflicts and the war with the East will play an equally decisive role. The final act of constitution cannot be decreed, it coincides with the movement we have to go through. It is therefore not a question of putting into practice this or that view, this or that political idea, but of understanding the course of development. The National Assembly has to take only such steps as are practicable in the first instance.”

Marx also believed that capitalist prosperity could rule out revolution, which could only come from crisis:

“Given this general prosperity, wherein the productive forces of bourgeois society are developing as luxuriantly as it is possible for them to do within bourgeois relationships, a real revolution is out of the question. Such a revolution is possible only in periods when both of these factors – the modern forces of production and the bourgeois forms of production – come into opposition with each other. . . . A new revolution is only a consequence of a new crisis. The one, however, is as sure to come as the other.”

But this does not mean that out of each and every crisis would come revolution and it is apparent that as he got older Marx became less sanguine about the impact of crisis itself as the harbinger of workers’ revolution.  The recent biographer Jonathan Sperber notes that “after the disappointment of his hopes of revolution to follow in the wake of the global recession of 1857, Marx rather downplayed the importance of crises for the end of capitalism.” (Karl Marx, a Nineteenth Century Life)

Marx was aware that revolution was not merely an exercise of will and might need decades for the working class to train itself for the exercise of power.  His attitude to the situation facing French workers in 1870 when the Prussian army had defeated France is instructive of his serious attitude to revolution and his understanding of the conditions for success.  He noted that in relation to the new French republican Government that “any attempt at upsetting the new Government in the present crisis, when the enemy is almost knocking at the doors of Paris, would be desperate folly.  . . . Let them calmly and resolutely improve the opportunities of Republican liberty, for the work of their own class organisation.”

Nevertheless, when French workers rose up and created the Paris Commune Marx leapt to its defence, explaining the attitude that all sincere socialists take when workers enter struggle: “World history,” he wrote, “would indeed be very easy to make, if the struggle were taken up only on condition of infallibly favourable chances.”  As Engels noted of the events in the 1848 revolutions:

“A well-contested defeat is a fact of as much revolutionary importance as an easily-won victory. The defeats of Paris in June, 1848, and of Vienna in October, certainly did far more in revolutionizing the minds of the people of these two cities than the victories of February and March. The Assembly and the people of Berlin would, probably have shared the fate of the two towns above-named; but they would have fallen gloriously, and would have left behind themselves, in the minds of the survivors, a wish of revenge which in revolutionary times is one of the highest incentives to energetic and passionate action. It is a matter of course that, in every struggle, he who takes up the gauntlet risks being beaten; but is that a reason why he should confess himself beaten, and submit to the yoke without drawing the sword?”

We cannot always pick our battles, but if we can we should, and it is on the basis of what we want that we should plan and prepare, what we should build for and base our politics on.  As Marx said of the First International:

“The political movement of the working class has as its object, of course, the conquest of political power for the working class, and for this it is naturally necessary that a previous organisation of the working class, itself arising from their economic struggles, should have been developed up to a certain point.”

“On the other hand, however, every movement in which the working class comes out as a class against the ruling classes and attempts to force them by pressure from without is a political movement. . . .  On the other hand the movement to force an eight-hour day, etc., law is a political movement. And in this way, out of the separate economic movements of the workers there grows up everywhere a political movement, that is to say a movement of the class, with the object of achieving its interests in a general form, in a form possessing a general social force of compulsion. If these movements presuppose a certain degree of previous organisation, they are themselves equally a means of the development of this organisation.”

“Where the working class is not yet far enough advanced in its organisation to undertake a decisive campaign against the collective power, i.e., the political power of the ruling classes, it must at any rate be trained for this by continual agitation against and a hostile attitude towards the policy of the ruling classes.”

In speaking of the results of the Paris Commune Marx noted that:

“The working class did not expect miracles from the Commune. They have no ready-made utopias to introduce par décret du peuple. They know that in order to work out their own emancipation, and along with it that higher form to which present society is irresistably tending by its own economical agencies, they will have to pass through long struggles, through a series of historic processes, transforming circumstances and men.”

dead-communards

It would be wrong to see this prognosis as out of date, made archaic and obsolete by almost 150 years of intervening history.  This is obviously not the case.  The working class of today is very different from that of the late 19th century, with the many struggles the latter gained consciousness from a matter of history and not lived experience.  In many ways it has to painfully learn lessons previously acquired through bitter and desperate struggle.  It has also to “pass through long struggles” and “through a series of historic processes” through which it will be transformed and be transforming.

In terms of economic and social development the objective grounds are today much more favourable across the world.  In terms of the social and political power of the working class, in many countries it is no more stronger now than it was 100 years ago or 50 years ago.  This is a glaring contradiction and it is one that requires explanation, although not only that.

As Marx famously said  “the philosophers have only interpreted the world, in various ways; the point is to change it.”  So it is not so much explanation as practical solution that is required, which necessitates increased organisation and heightened political consciousness.  Crises throw up the need for this and do not offer solutions but simply opportunities to face the challenges that either success or failure in developing this organisation and consciousness make workers more or less ready for.

In the next post I will look at a couple of Marxist contributions to this problem written in the late 1960s and mid-1970s.

Back to part 10

 

 

 

 

 

 

 

 

Ireland – the Apple Republic part 2

apple-taxWhen a left wing TD called the decision of the Irish Government to appeal the decision that gives it €13+ billion “economic treason” against the Irish public he contributed nothing to clarifying for Irish workers the role of the state, which is precisely to defend big business against that part of the Irish public made up of workers, their families and small businesses, who mostly have little choice but to pay the state’s taxes.

Much better would be a socialist campaign to rally trade union branches, community groups, tenant associations, consumer groups and campaigns etc. to put together their own proposals as to how exactly the €13 billion should be spent.  The purpose would be to demonstrate that the needs of workers should come before those of multinationals and before the reputation and interests of the state and its ‘national interest’.  A campaign that sought to unite with the workers of other countries swindled out of tax receipts by Apple would go a long way to demonstrating that this is not about a race to the bottom that pits workers of one nationality against all others.

This would also allow working people to show, not least to themselves, that they can plan effectively how to spend the money, not just for their own benefit but in the interest of all working people. Its purpose would be to begin to instil a view within them that they should take control of society themselves rather than relying on the state to do the big things for them.

On this count the view expressed by another left wing TD was much closer to the mark.  Speaking in the Dáil Paul Murphy said: “Governments in capitalist societies are but committees of the rich to manage the affairs of the capitalist class. It is as simple as that …. All of the establishment parties represent the rich and the 1 per cent. We need to be rid of this committee of the rich, and we do not need it replaced with a reconfigured committee of the rich.”

The creation of a desire for, and mechanisms to achieve, an alternative to a “reconfigured committee of the rich” is precisely the objective of this proposal for working class activity.  Only by workers increasingly taking control over their lives now can we conceive an alternative that is real, compared to reliance on a state that always has your best interests as far away from its mind as possible.  The motto of socialists in this regard should be the famous quip of the British actor David Niven who, when speaking of Errol Flynn, once said “you always knew precisely where you stood with him because he always let you down.”[i]

A wider claim in relation to the Apple judgement and reaction to it is that such sharp practices are part and parcel of a policy of neoliberalism which is past its use by date.  The exhaustion of this policy has been expressed in the crisis of financialisation in 2008 and the failure of Eurozone austerity policies and similar policies in Britain, where their effects have not been quite so damning only to the extent that the Tories have failed to follow through fully on their austerity rhetoric.  In this view we will see a return to a class compromise that was supposedly the cornerstone of Keynesian policies practiced among the most developed countries after the Second World War.  Among these will be fair taxation of capital and the rich.

Against this it might be pointed out that the Apple ruling did not uphold any principle that taxes should be levied where real economic activity takes place and that in fact it was justified through an objection to state intervention, on the grounds of unfair state aid.

In 1997, even during the neoliberal era, EU Finance Ministers set up a Code of Conduct Group on business taxation that was charged with examining unfair tax practices and in succeeding years it abolished nearly 100 tax incentives across the EU.  Today it is the OECD which is supposed to be spearheading cooperation between governments on tax avoidance and evasion but this body has been a consistent supporter of neoliberalism.

In so far as there has been a trend in corporate taxation it has been a lowering of rates:

“Corporate tax is falling, both as a share of GDP and in the global tax take. . .  Within the last 20 years, corporate tax rates have fallen from around 45% to less than 30% on average in OECD countries. And lately, with increased mobility of multinational corporations, tax competition has intensified. Thus from 2000 to 2005, 24 out of the 30 OECD countries lowered their corporate tax rates while no member economy raised its rates.”

Closing or restricting some ‘loopholes’ is perfectly consistent with lowering rates because the loopholes become less and less relevant.  Reliance on the state to produce ‘fair’ taxation is like relying on Errol Flynn.  The Apple case, precisely because of its scale, is instructive in this and other respects.

The Left has pointed out the sheer scale of the windfall that the Irish Government is potentially spurning, pointing out its hypocrisy in demanding that the Irish people must do what the EU wants when it comes to austerity, bailing out the banks, ensuring no bond-holder is left behind and their demand that water charges simply must be paid.  When it comes to standing up for the Irish people no demand from the EU is too big but when it comes to standing up for the wealthiest multinationals no claim is too disreputable, no sacrifice too large and no neck so shiny and hard.

Commentators have pointed out that €13 billion would make up the budget for the health service for a year or it could take a significant chunk off the national debt of €200 billion.  It could pay the equivalent of a few years of the unpopular Universal Social Charge or it could mean a cash donation to everyone in the state of around €2,800 each, so that a household of four would get over €11,000.  A tidy sum for everyone in the State, or a significant boost to public services.

What it isn’t, despite its unprecedented size, is fundamental or transformative.  While it is a godsend of an example of taxing the rich, which much of the Left repeatedly presents as the answer to austerity and an exemplar of socialism, the Apple example shows that it is not.  Or not if one thinks of socialism as a fundamental change to society and a transformative change in working people’s lives.

What it is, is confirmation of the point made by Karl Marx many years ago, about the limits of distributing existing income or wealth, as opposed to changing the fundamentals of the ownership of productive resources that creates and recreates, again and again, this income and wealth.

“Any distribution whatever of the means of consumption is only a consequence of the distribution of the conditions of production themselves. The latter distribution, however, is a feature of the mode of production itself.

The capitalist mode of production, for example, rests on the fact that the material conditions of production are in the hands of nonworkers in the form of property in capital and land, while the masses are only owners of the personal condition of production, of labor power. If the elements of production are so distributed, then the present-day distribution of the means of consumption results automatically. If the material conditions of production are the co-operative property of the workers themselves, then there likewise results a distribution of the means of consumption different from the present one.

Vulgar socialism (and from it in turn a section of the democrats) has taken over from the bourgeois economists the consideration and treatment of distribution as independent of the mode of production and hence the presentation of socialism as turning principally on distribution. After the real relation has long been made clear, why retrogress again?”

This is the argument that goes to the root of the nonsense peddled by Michael Noonan that taxing Apple would mean “eating the seed potatoes” or Micheál Martin that “This model supports hundreds of thousands of jobs and pays for teachers, nurses and pensions in every part of our country.  What’s more, it has done so for decades.`’

Such is the significance of any battle over Apple’s taxes.  Reliance on multinational capital and all the crap that goes with it or a cooperative economy owned and controlled by workers not just in Ireland but everywhere.

[i] Of course the parallel isn’t exact – Niven and Flynn were “pals” while the working class and the capitalist state are enemies.  It is appropriate however that the above remark was made of an immature personal relationship that has no correspondence to the political stance workers must take against the state; even if failure to take such a stance reflects an undeveloped and therefore immature failure by some Irish socialists.

Back to part 1

Karl Marx’s alternative to capitalism part 10 – crises and contradictions iV

aaeb3f49f0044521a0b0904c2599b84b_18In 1921 Leon Trotsky argued that “If the further development of productive forces was conceivable within the framework of bourgeois society, then revolution would generally be impossible. But since the further development of the productive forces within the framework of bourgeois society is inconceivable, the basic premise for the revolution is given.”

I will argue against this view but it should not be taken that by this Trotsky believed that any particular country had to have fully developed capitalism before socialist revolution could succeed because obviously his theory of permanent revolution argued precisely that this was not the case. The argument just presented is a view of the world taken as a whole and not any particular country.

In his view capitalism could break at its weakest link but this is not Marx’s theory of the transition to socialism.  For capitalism not only to break but be replaced by socialism it is necessary that capitalism be broken not where it is weakest but where the working class is strongest, and the two are not the same.

The view that the productive forces have to have exhausted themselves has been a default view of much of the Marxist movement since 1938 and the writing of the Transitional Programme, which was called ‘The Death Agony of capitalism and the tasks of the Fourth international’.  Adherence to this view means accepting that we have been living during a period of capitalism’s death agony for the past nearly 80 years.

It is this that justifies the view that objective conditions make the world ripe for socialism and that what faces socialists is a crisis of working class leadership. The task is simply to fight for leadership of the working class as it presents itself; its objective position and situation within society is relevant only in so far as it lends itself to gaining such leadership.  Since capitalist crises cannot be definitively solved by capitalism then such crises provide the opportunity for Marxists to win this leadership.

Those who have read earlier posts in this series will know that I reject the view that the productive forces of capitalism have stagnated.  This view was certainly challenged by the post Second World War economic upturn.  Crisis conditions in the 1970s and 1980s might have revived the view that capitalism was in long term crisis but the period since has seen huge economic growth.

Again the view that capitalism is in crisis might be bolstered by the financial crash in 2008 and the secular stagnation following it that has been posited by some writers but such crises do not amount to the long term crisis of capitalism suggested by Trotsky and secular stagnation has yet to be demonstrated.  If it were, it would still not amount to the long term crisis of capitalism that has been claimed, except that stagnation is not compatible with capitalism and if it existed it would create conditions of crisis.  

In previous posts I noted that capitalism had continued to develop the productive forces over the last century, including the expansion of the working class, its health and education and also its living standards.  Of course this does not mean that the next century will follow the pattern of the last.  This is as unlikely as the twentieth century following the pattern of the 19th, but it is at least necessary to appreciate what has already happened before thinking we are qualified for the much more hazardous task of speculating on what will happen in the future.

Incheon01

A recent article in ‘New Left Review’ notes that:

“Our available economic resources are greater than ever before. Between 1980 and 2011 world GDP per capita (in constant prices and purchasing power parities) increased 1.8 times, the IMF reports. As a comparison, we may remember that between year 1 and 1820 global product per capita is estimated to have increased 1.4 times, and from 1870 to 1913 1.7 times. More reliable are figures for 1950–73, 1.9, and for 1973–2003, 1.6.”

In his book ‘Postcapitalism a Guide to Our Future’ Paul Mason quotes figures that show global GDP per person rising by 162 per cent between 1989 and 2012 and in the developing world by 404 per cent.  It rose by ‘only’ 33 per cent in the 100 years after the ‘discovery’ of the Americas and by 60 per cent in the fifty years after 1820.

Of course, this is not to deny the growth of inequality and ecological threat arising from the capitalist nature of such growth, how could it be otherwise?  Paul Mason notes that while the real incomes of two thirds of the world’s people rose significantly, as did that of the top 1%, the majority of people in America, Japan and Europe had no real increase and some a decline.  As the article in New Left Review notes:

“Furthermore, the conventional norm of progress obscures the unequal distribution of its opportunities. Almost half, 46 per cent, of the world’s income growth between 1988 and 2011 was appropriated by the richest tenth of humanity.  In the US, since the late 1990s, there has been a progressive decoupling of GDP per capita—advancing with short-lived fallbacks—and the family income of four-fifths of the population, which has been stagnating and recently declining, above all from the median and below. The spread of the Anglo-American financial crisis of 2008 has meant a substantial decline in the income share of the bottom 40 per cent in the recession-hit European countries, from Greece and Ireland to the UK and Spain.”

One Marxist[i] makes a persuasive case that the official figures underestimate the growth of specifically capitalist production because they ignore the conversion of the Stalinist states to a new economic system.  These figures treat the production in these states prior to the introduction of capitalism as if it were already capitalist but this ignores the boost to specifically capitalist production of the acquisition of productive forces on the cheap and the availability of huge pools of labour power that can now be exploited to further the accumulation of capital:

“In 1991 the centrally planned economies had a population that was 35 percent of that in the market capitalist economies. The restoration of capitalism in them massively increased the world’s working class that could be exploited by capital, while at the same time the world’s capitalists paid almost nothing to privatize the assets of entire economies. . . .By 2006 China, now the second largest capitalist economy in the world, employed 112 million industrial workers (Bannister 2009), not including millions more in the former USSR and CEE.”

“During the 1990s capitalist production of electricity rose 44 percent, aluminium 45 percent, hydraulic cement 60 percent, steel 39 percent, automobiles 21 percent, and GDP 42 percent, with the rate of increase accelerating the decade after. This is particularly significant as this period extends to 2010 and so includes the period of the credit crunch recession after 2008. The growth of output in the emerging markets has been combined with the accelerated decline of industrial output in the West, but this is a transfer of production, not its disappearance. By 2010 the transition economies as a proportion of total capitalist production produced 29 percent electricity, 52 percent aluminium, 65 percent hydraulic cement, 53 percent steel, 30 percent automobiles, and 26 percent of GDP.”

It is hardly credible that the objective and subjective conditions for socialism could be bifurcated for so long – that the problem is simply one of mis-leadership – while the social and political power of the capitalist class over the working class, effected by the enormous development of capitalism, reflected also in the ideological hold of the former over the latter, can be considered a secondary matter.

That this continuing subordination of workers by capitalism for decades, without challenge in any fundamental respect, could be considered not to have affected the consciousness of new generations of workers, were it true, would prove Marxism false.  The idea that the fundamental problem is simply one of working class leadership is not credible.

Marxists are always keen to assert that they do not seek crises and do not welcome the attacks on workers which large crises inevitably result in, including unemployment, wage cuts and attacks on workers’ democratic rights to organise.  But if crises do provide the opportunity to replace capitalism, and the grounds for socialism already exist, then this would be something of a puzzle.

In part we have already noted the answer – that crises openly express capitalism’s contradictions and posit the need for an alternative.  However, it matters not whether socialists wish or do not wish for crises, capitalism will see to it that they erupt anyway.  It is not workers who create economic crises but the contradictions of the system itself.

Socialists do not welcome crises in themselves because they become opportunities to overthrow capitalism only under certain conditions.  Since capitalism has had many crises and we do not have socialism we can infer that these conditions are rather restrictive, or have been so far.  Is there anything in Marx’s alternative that explains why this has been the case and therefore what might we change to address our failures so far?

An answer to this means going beyond seeing capitalist crises as simply the opportunity to overthrow capitalism without understanding what makes them such an opportunity, as opposed to an opportunity for capitalism to resolve its contradictions at workers’ expense.  The answer does not lie in the illusion that capitalism is a system in permanent crisis or is in an epoch of revolution. Crises there have been and even revolutions but clearly this hasn’t been enough for Marx’s alternative to have flowered.

The last 100 years has witnessed many revolutions.  The most important at the beginning of the last century were carried out under the banner of socialist revolution but they nearly all failed very quickly.  Later revolutions that destroyed capitalism did not usher in socialism or even societies controlled by workers taking decisive steps towards socialism.   The belief was widespread that socialist revolutions would be complemented by national liberation struggles which would lead to democratic revolutions, but again there were numerous democratic revolutions, few overthrew capitalism and none of them brought about socialism.

Since the decline of such struggles the most important revolutions have involved the overthrow of Stalinism and the concomitant reintroduction of capitalism while the Arab Spring has not resulted in any fundamental reordering of society, except in the sense that in some societies it has led to their disordering and collapse.

There have been plenty of revolutions but the changes have been mainly one of political regimes without fundamental changes to class rule, at least in the sense of the working class ruling society.  Such glimpses of a new worker-controlled society have been brief and fleeting.

Marx’s prognostication was that “the bourgeoisie cannot exist without constantly revolutionising the instruments of production, and thereby the relations of production, and with them the whole relations of society. Conservation of the old modes of production in unaltered form, was, on the contrary, the first condition of existence for all earlier industrial classes. Constant revolutionising of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones.” 

The history of modern revolutions is testimony to this.  The absence of working class revolution is not.  Ironically, if you seek to reduce Marxism to a task of resolving a crisis of leadership you weaken its explanatory power, its guide to political intervention and its appeal.

Marx was aware that sometimes decades of political development are necessary for a working class to make itself capable of ruling society.  This is true now for reasons that Marx could not be fully aware of.  What he did do however was provide analyses of capitalism that may help socialists appreciate why we have failed so far.

[i] On the Alleged Stagnation of Capitalism, William Jefferies, available on the net.

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Karl Marx’s alternative to capitalism – part 9 crises and contradictions iii

economic crisisCapitalism’s crises are the expression of its contradictions, among which must be those that provide grounds for resolution through working class creation of a socialist society.  While the absence of crisis at any time does not mean that the system’s contradictions have been removed, it signals that they must at least have been temporarily contained or limited while continuing to develop, without erupting into violent disruptions of the system. Marx reacted to the return to some sort of prosperity following a crisis as a signal that socialist revolution was for the time being off the agenda.

For capitalism the eruption of economic crisis is also the means by which the contradictions of capitalist accumulation are (temporarily) resolved, by reducing the costs of raw materials and machinery etc.; destroying competitors by making the least efficient firms go bust; increasing unemployment, so putting pressure on workers to increase the pace of work and reducing wages; and by prompting the state to lower legal protections for workers or lower corporate taxes etc.

Only in a crisis does it seem obvious that capitalism is unable to cater for the needs of the majority, and to a degree that stimulates mass resistance and opposition, so what then may result is a political crisis of its rule.  There is less reason to expect the working class and other oppressed parts of society to seek an alternative to the system if it is not in some sort of difficulty.

On the other hand if workers are not prepared to react to crises by defending gains and can’t be radicalised sufficiently to achieve overthrow of the system, or have the social and economic power to do so, then socialists must accept that the limits placed on the scope of working class action at such times do not yet include the system’s overthrow.

While economic and political crises signal the possibility of an alternative and a possible opportunity to create one there is no longer a view that they point to the inevitable triumph of socialism.  Crises can awaken workers to politics, can propel them to political organisation, push them to fight and make them seek out alternatives but if this is true of the vast majority and such development only takes place on the eve of revolution then it is only a minority who enter the fight with some idea of what that fight is, about how it might be won and what constitutes victory.  These are rather weak grounds on which to expect success.

As I noted in the last post – what attitude workers take to crises, how they understand them, who they blame and what solutions they seek are strongly conditioned by their previous experience prior to and outside capitalism’s difficulties.  This strongly determines the outcome of crises

“There are no permanent crises” Marx said, which means that such crises in themselves cannot be the grounds for socialism since these grounds must be continuous and persistent conditions within the capitalist system.  Crises therefore cannot be confused with the contradictions of capitalism that provide the source for anticipating its replacement.

So if not permanent crises, is it the nature of the stage of capitalism that warrants the claim that the possibility of socialism exists, as Marx claimed.  It would appear that for the majority of Marxists the answer is yes: we have been living within the highest stage of capitalism for the last one hundred or more years, set out most famously by Lenin in his short book – ‘Imperialism, the highest stage of capitalism’.

Further to this, the other Marxist leader of the Russian revolution wrote a political programme for his supporters in 1938 in which he clearly characterised the nature of the epoch during which he lived:

“The economic prerequisite for the proletarian revolution has already in general achieved the highest point of fruition that can be reached under capitalism. Mankind’s productive forces stagnate. Already new inventions and improvements fail to raise the level of material wealth. Conjunctural crises under the conditions of the social crisis of the whole capitalist system inflict ever heavier deprivations and sufferings upon the masses. Growing unemployment, in its turn, deepens the financial crisis of the state and undermines the unstable monetary systems. Democratic regimes, as well as fascist, stagger on from one bankruptcy to another.”

“All talk to the effect that historical conditions have not yet “ripened” for socialism is the product of ignorance or conscious deception. The objective prerequisites for the proletarian revolution have not only “ripened”; they have begun to get somewhat rotten. Without a socialist revolution, in the next historical period at that, a catastrophe threatens the whole culture of mankind. The turn is now to the proletariat, i.e., chiefly to its revolutionary vanguard. The historical crisis of mankind is reduced to the crisis of the revolutionary leadership.”

This political programme, The Transitional Programme, became the guiding strategy for those Marxists who rejected the distortion of socialism by Stalinism in the Soviet Union and who stood in the revolutionary tradition of Marx.

The view that socialism was retarded not so much by capitalism itself, or the political forces that defended it, but by other factors can easily be appreciated in a world in which the most powerful forces claiming to be Marxist ruled over vast parts of the globe. In these countries workers held no political power except through a bureaucracy that ruled in its name and unilaterally claimed to be its leadership.  As long as this was the case the struggle for genuine socialism had to counter the claims of Stalinism that the degenerate bureaucratic dictatorships in the Soviet Union and Eastern Europe were the future socialist society which Marx foresaw.  In this sense, the view that the crisis facing socialists boiled down to who was able to claim the mantle of leadership might seem to have not a little currency; if only because if Stalinism was socialism then the majority of workers and many Marxists weren’t interested.

Trotsky’s predictions of catastrophe should also be viewed in light of the headlong march towards world war, a war that would exceed the death and destruction of the Great War that had ended only twenty years before.  In fact this second world war had already begun with already catastrophic results for the Chinese people.  When we consider that the possible number of deaths due to World War II is as high as 80 million people it is no exaggeration to have stated in 1938 that “a catastrophe threatens the whole culture of mankind.”

What matters today is whether the context in which this happened now prevails, or has prevailed ever since it was written in 1938; in other words that “the economic prerequisite for the proletarian revolution has already in general achieved the highest point of fruition that can be reached under capitalism.”

If this were so then the series of posts of which this one is a part, dealing with Marx’s alternative to capitalism growing out of capitalism itself, would have little need to go beyond a political analysis of the class struggle and specifically how and why the working class still allows itself to be politically led by political forces opposed to the revolutionary overthrow of capitalism.

to be continued

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Karl Marx’s alternative to capitalism part 8 – crises and contradictions ii

A view common among Marxists is that socialism will arise out of a crisis of capitalism.  This is believed for a number of reasons.  The most fundamental is the view that socialism will arise from the contradictions of capitalism and these contradictions give rise to repeated crises; crises of overproduction, of profitability and of class relations.  Economic and political crises point to the inevitable triumph of socialism as every such capitalist difficulty signals the possibility of an alternative and the opportunity to create one.

A more common sense way of understanding it is that if capitalism continued to deliver the goods then why would anyone fight to change it?

These contradictions include the contradiction between capital and labour in which capital accumulates and grows through augmenting itself with the value created by labour for which labour is not remunerated in wages.  These contradictions also include the tendency for the development of the forces of production to conflict with the relations of production within which they develop.  The productive forces of machinery, technology and other means of production and productive relations determined by the ownership of these means of production by capitalists and the exclusion from ownership of those who create and work with these means of production, the working class.

The contradictions are the tension between the more and more effective socialisation of production and its private capitalist appropriation. Production is more and more subject to a division of labour with hundreds if not thousands of components produced and shipped from all over the world before final assembly in one location.  This final product such as a computer can then join thousands of other products in creation of another final product such as a car.  The workers who produce this final product likewise consume commodities created from all across the world which are themselves assembled from products created across the globe.  A vast meshed network of companies, of communications and transport has been created by capitalism that requires an enormous degree of co-ordination and planning by millions of workers to ensure this all takes place, and takes place profitably.

Yet this production is sold on a market in competition with other similar products from other companies or in competition with very different goods that could equally be bought instead.  Only after the fact is it recognised whether the labour employed in producing these goods has been wasted.  If the prices obtained for them do not result in sufficient profit the capitalists will close down, reducing production and reducing the market for goods generally as workers are laid off and supplier companies equally reduce employment.  If this happens on a big enough scale economic crises result.

Were imbalances in production to arise in an economy under workers’ collective ownership this production would be rebalanced without making workers suffer for any misallocation.  It would be in the interest of everyone to reallocate this labour to produce goods or services for which there is more need.  With capitalist appropriation however, despite the socialised nature of production, despite the enormous cooperation and scale of planning required, it is only the private profit of individual capitalist companies that counts.  And if this means closing down productive assets, wasting resources and creating unemployment well . . production is only for profit under capitalism.  It is competition not cooperation which predominates, competition between companies for sales of commodities and competition between companies to extract the maximum surplus from their own and other workers.

For Marxists this global economic result arises from the very nature of the commodity itself and its simultaneous existence as a use value and as a value.  As a commodity it must have usefulness for it to be purchased by anyone but it must also have a value that can be exchanged with other commodities and money.  At the end of the day it is the value in exchange that matters for the capitalist because it is from this aspect of the commodity that profit is derived.

A more common way of describing this is that production is for profit and not for use; commodities are produced only in so far as they procure a profit but which are only purchased in so far as they are useful.  Goods and services are produced which are profitable but which only a tiny minority of the world’s population find useful while goods useful to millions are not produced because they are not profitable.

The craziness of this has been on display in Ireland, which has had an enormous economic boom largely built in its last years upon housing and other property production. A boom that eventually turned to bust not because everyone had a decent home, or the commercial fabric of society had been completely renovated, but because the prices demanded by developers and construction firms could no longer be afforded by those expected to buy or rent. Prices collapsed, building firms went bust sacking tens of thousands of construction workers; developers went bankrupt, their loans could not be paid and the banks that lent them the money then also went bust, unable to remain solvent given the scale of the bad loans on their books.

The capitalist State then stepped in to assure the banks’ solvency by guaranteeing their loans and when it was proved that it could not afford to do so it too went bust; so the European Commission, European Central Bank and the International Monetary Fund also stepped in to ensure that the State could make good its guarantees to the banks – in exchange for the State cutting the tripe out of state services, increasing taxes, lowering public sector wages and reducing public sector employment.  The State survived all this by spreading its debts across the generations so that even in 2050 the children and grandchildren of the boom generation will be paying for the boom and the bust.

At the peak of the boom 90,000 houses a year were being built by employing around 274,000 workers. Last year fewer than 13,000 new homes were built while demand is running at 25,000 a year.  There are over 1,000 families homeless compared to 400 at the beginning of last year while there are an estimated 90,000 families on waiting lists for social housing.  But this is happening in a country that has 230,000 vacant homes, some in “ghost estates” in far-flung towns where few Irish people now wish to live — if they ever did.

This is reported in Ireland and elsewhere as if this was a peculiarly Irish problem, but not only have there been property booms across the world but housing and property booms are only the most visible manifestations of classic crises of overproduction that have been a feature of capitalism for almost two centuries.  Visible because the commodities overproduced sit there staring everyone in the face for years.  This is not an Irish problem, although it has to be said that the Irish are very good at doing it with houses, but is a classic capitalist problem of desperate need not being addressed because to do so would not deliver the requisite profit.

housing 1
It has been reported by the Society of Chartered Surveyors in Ireland that it costs €330,000 to provide a standard family home, a figure that appears to have changed little despite the deep recession!  Construction costs account for less than half of this figure with the rest made up of fees, levies, site acquisition costs, finance costs, and tax and profit margins.  Developers would rather hoard land they over-paid for in the boom because to do otherwise would mean them accepting a loss.  This would then hit the banks who everyone is pretending are now fine and no one wants a repeat of the 2008 crash.  So the process of the previous boom and bust is repeated for the sake of avoiding another one.
Housing 3

But very few people can afford houses at these prices and single people and those on even average incomes can’t afford them and would drown in a sea of debt if, or rather when, interest rates increase (although of course no one is thinking of this now). Instead the solutions put forward by the Government include grants to first time buyers, which will simply increase prices by the amount of the grant, or subsidies to developers, who will probably pocket the money while maintaining their asking price.  In short, the same policies pursued during the boom.  As the table below shows the huge debt already built up is a big constraint on any solution that seeks to stuff working class people with even more credit.

Housing 2

The solution is to build affordable houses by expropriating the land holdings of developers and re-employing many of the construction workers who were made unemployed in the crash.  However, this calls for a radical break with the prerogatives of private property which is a more entrenched religion in Ireland than theCatholic Church.

From the point of view of our look at Karl Marx’s alternative to this sort of mess there is another striking question that arises.  Just how do such crises lead to replacement of the system that produces them with a new one called socialism?

Yes, capitalism leads to these crises and yes, they would not arise within a socialist society, but what is the mechanism by which this contradiction leads from the former to the latter? What leads workers from recognising there’s a crisis to understanding that it’s a result of capitalism and agreeing that socialism is the answer, and then fighting to introduce it?  All while their starting point is not so much a very conscious rejection of socialism so much as a recognition/acceptance of capitalism because it is the system that actually exists, works (however badly) and places them in a subordinate position within which, by and large, they are powerless to effect very radical change, either as individuals or even as individuals that are part of collective organisations.

A lack of understanding of what socialism actually is and little confidence that the world can be changed, or that they must do it themselves, are not even the first condition of this problem but the result of the more basic conditions within which workers live.  Is there a contradiction at this more basic level of workers’ everyday lives that can provide the experience that they can learn from either directly or indirectly; that capitalism does not have to be accepted and that an alternative can actually exist, already exists even if in an underdeveloped form that must be developed further?

In all this it is clearly the development of political consciousness that is key.  Only through its development will workers become active makers of their own future, seeking greater and greater control over their lives and thus greater and greater control over society.  But Marxists believe that it is material conditions that generate consciousness and it is not at all clear that conditions of crisis can generate socialist consciousness.  They have not done so in Ireland.  Some of the first posts on this blog were a record of how previous capitalist crises generated reactionary solutions and the growth of xenophobic and racist solutions today are testament to this.

Marxists do not believe that the rational superiority of socialism on its own will lead to socialism.  Or rather, to be more precise, Marxists do not believe that rational argument about the superiority of socialism over capitalism will bring it about.  It plays a vital part in the work of socialists in the workers’ movement but rational argument is ultimately only powerful if it corresponds to the rational development of capitalism itself.

If capitalism tended more and more to a state antithetical to socialism, to a position that was further and further away from the possibility of collective workers’ ownership of the means of production, then ultimately no amount of rational argument about the putative superiority of socialism would matter because it could not arise in the real world. And if it could not arise in the real world the argument as to its superiority would not be rational either. A world built on unqualified love between all members of humanity may appear a rational argument, as opposed to the hate and oppression of the existing one, but it is not rational because we all know such a society cannot exist.

Crises are ephemeral, they are the means by which capitalism resolves its contradictions, even if only temporarily. They generally weaken the working class and its movement and they often present opportunities to disorient them.  They invite immediate solutions when many workers generally experience capitalism as individuals or are not grouped in organisations that are by their nature capable of providing answers.  What attitude workers take to crises, how they understand them, who they blame and what solutions they seek are strongly conditioned by their previous experience prior to and outside capitalism’s difficulties.  Generally this experience does not prepare them for taking conscious control of society, which is the essential challenge posed by the greatest crises.

Capitalist crises therefore give expression to the contradictions of capitalism but are not themselves the contradictions upon which the alternative higher form of society will arise.  History is replete with subordinate classes’ willingness to fight against their oppressor classes, such as the countless rebellions by Chinese peasants against their ruling dynasties or medieval peasants against their feudal lords.  But even when the contradictions involved in their class antagonism burst through in successful rebellion no stable society was created by these victorious oppressed class because the class contradiction evoked no mode of production resting on the unified class interests of the victorious class.

Even when the class of feudal lords disappeared from history it was not a peasant mode of production that was eventually built on the bones of their feudal rule.  Similarly, when the working class in Russia succeeded in overthrowing the Tsarist state and the capitalist economy in Russia it failed to create a new socialist society because the material conditions would not allow a new socialist mode of production to grow and develop.

So basing the alternative to capitalism on the crises of capitalism is not enough.  Developing consciousness of the need for an alternative is not even enough.  The contradictions that exist must contain within them the potential for a new socialist society to arise out of them.  In other words, it is not enough that there is contradiction but that the contradiction is resolved, in this case in a new and higher form of society.  And for this to be the case the nature of the contradiction has to contain the potential for this to occur.

It is not that the contradiction creates a clean slate upon which something new can be built but that the new arises from within the development of the contradiction itself.  Clearly the nature of this is therefore key, for its development must not only contain the end of the old but the beginning of the new at one and the same time.  Consciousness by the working class of the necessity for a new society is necessary for it to happen because it must be its creation but this is only possible if the process exists in reality.

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