The role of capitalist crisis in socialist revolution

Posted on August 13, 2022 by irishmarxism

Karl Marx’s alternative to capitalism part 50

Marx notes that commercial crises ‘by their periodical return put on its trial, each time more threateningly, the existence of the entire bourgeois society.’ (Collected Works Vol 6 p 490)

Whether capitalism is then found guilty is a matter of objective conditions and the class struggle, with its own requirements for success. We know however that it is not the case that crises are each time more threatening. Like many statements in the Communist Manifesto it is a political declaration, a proclamation of belief and exhortation to action written in broad strokes, not a studied analysis. In other words, a manifesto.

Capitalist crises nevertheless were considered to play an important role in determining the potential for revolution, even if in themselves they did not answer to the possibility of success. In a letter to Bernstein in January 1882, Engels wrote:

‘The fact that these crises are one of the most powerful levers in political upheavals has already been stated in the Communist Manifesto and is explained in the review section of the Neue Reinische Zeitung up to and including 1848, but it is also explained that the returning prosperity also breaks revolutions and lays the foundations for the victory of reaction.’

It should be noted that this refers to political revolution, that is those social convulsions causing or attempting to cause more or less important changes to the Government or State, and not to the fundamental class structure that supports them. That this is under-appreciated is because the former is conflated with the latter since it is assumed that that there is little social transition before capture of state power by the working class and that the new state structure is what will be constitutive of the new social relations of production.

That this is the case is understandable since it is possible to find statements by Marx and Engels about the role of a new workers’ state arising from crisis and revolution that is consistent with this view and we have addressed this before in a number of posts beginning here.

In relation to views on the relation of crises to revolution we can record the view here:

‘The virtual repeal of the act of 1847 will force manufacturers into such a rush of overtrading that revulsions upon revulsions will follow, so that very soon all the expedients and resources of the present system will be exhausted and a revolution, made inevitable, which, uprooting society far deeper than 1793 and 1848 ever did, will speedily lead to the political and social ascendancy of the proletarians . . .’ (The Ten Hours Question, Collected Works Volume 10 p 275-6)

The quotation above, written by Engels in February 1850, betrayed his over-optimistic view at that time, following the 1848 revolutions across much of Europe. Capitalism proved more dynamic and adaptive than allowed for, and the preconditions for the political and social revolution envisaged were much greater than existed at that point, even in the most advanced society.

Both Marx and Engels were enthusiasts of revolution and sometimes optimistic about its proximity and success. But optimism was always tempered by more realistic evaluation when it came to specifying the line of march, and Marx in particular showed remarkable realism in assessing revolutionary opportunities when they appeared to arise.

He continued after 1848 to analyse economic developments with a view to their potential impact on the potential for revolution, this time from the crisis in 1857:

‘`What the most far- sighted politicians now are sure of is an enlarged edition not only of the crisis of 1847 but also of the revolutions of 1848 … In 1848 the movements which more immediately produced the Revolution were of a merely political character … Now, on the contrary, a social revolution is generally understood, even before the political revolution is proclaimed; and a social revolution brought about by no underground plots of the secret societies among the working classes, but by the public contrivances of the Crédits Mobiliers of the ruling classes.’

Here, Marx not only looks to the potential for political revolution but also argues that the development of capitalism itself is bringing about a social revolution. Of course, much of this speculation was in private correspondence so cannot be presented as considered political statements (to be carried forward as holy writ into the 21^st century).

Hal Draper is right when he excoriates those who quote Marx to advance whatever and any purpose they have: ‘I have seen remarks by Marx that were hastily dashed off in a letter to a friend, or a few words jotted down in a note, solemnly quoted (without identification) as if they were long-pondered programmatic statements every syllable of which had been thought out for its exact scientific meaning–indeed, even without regard to other statements on the subject of greater reliability.’

So, in relation to the crisis of 1857 Engels wrote to Marx that ‘this time it is coming properly, now it’s a case of do or die.’ Yet Engels did not want the crisis to develop too quickly, hoping for ‘a period of chronic pressure . . . to get the people’s blood up.’ (Marx to Engels 1857) Yet later Engels noted that ‘there are as yet few signs of revolution . . .’ Marx wrote to Engels drawing comfort from an apparent recovery: `The momentary lull in the crisis is, or so it seems to me, most advantageous to our interests –- party interests, I mean’ (Letter Marx to Engels Jan 1858, CW Vol 40, p243). You could almost make what you want out of such quotations if you were prepared to be selective.

Reviewing their attitude during this period Simon Clarke (‘Marx’s Theory of Crisis’ p119) says

‘Marx and Engels were certainly excited by the onset of the crisis of 1857, but despite their optimistic rhetoric, they didn’t really seem to have much expectation that anything would come of it, they didn’t throw themselves into political activity, and did not appear surprised when the crisis passed, leaving only minor dislocations in its wake. Nevertheless, the crisis, and its failure to develop according to the course anticipated by Marx, provided the stimulus for Marx to return to his economic studies . . .’

This alerts us to awareness that Marx didn’t arrive at ‘Marxism’ at one (relatively early) point in his political life and spend the rest of it setting it out. He learned, as we all do, as we go along; consider, for example, the lessons he learned as a 53 year-old from the Paris Commune in 1871 when he wrote of ‘the political form at last discovered under which to work out the economical emancipation of labour.’

Clarke goes on to recognise that the ‘ identification of the contradictory foundation of capitalist accumulation and crisis is the basis on which the emphasis of Marx’s theoretical attention moves away from crisis, which has very little part to play in his later works, just as politically Marx moved away from the apocalyptic vision of the revolution as a political event precipitated by a crisis, to the vision of the revolution as the culmination of a longer struggle to build a working class movement’. (Marx’s Theory of Crisis’ p 175). Clarke also makes a similar point in relation to war.¹

‘We have seen that through the 1850s Marx looked to the onset of the crisis as the precipitant of an upsurge of working class militancy, which would provide the driving force of the coming revolution. This expectation was based on little more than wishful thinking, for nowhere in their works did Marx or Engels spell out precisely how they saw such a development taking place, and they certainly had little faith in the ability of any of the revolutionary groupings with which they were loosely associated to provide a political focus for such a revolutionary upsurge. They hailed the crisis of 1857 as the herald of the revolution, but when it passed without significant political incident they didn’t express any surprise, nor feel any need for a re-evaluation of their position. Although the rapid recovery from crisis prevented the expected revolutionary upsurge from happening, it also swept Proudhon and his followers from the political stage.’ (Clarke p248 print edition)’

‘Thus the theory of crises plays a rapidly diminishing role in Marx’s work after 1862, to be replaced by an emphasis on the secular tendencies of capitalist accumulation, just as the conception of revolution as the culmination of struggles unleashed by economic crisis is replaced by a conception of revolution as the outcome of an extended period of class development.’ (Clarke p 245)

Clarke might be said to summarise his reading of the relationship between Marx’s analysis of capital and politics at the end of his book:

‘The focus of orthodox Marxism on general crises, as opposed to the permanently contradictory and crisis ridden character of capital accumulation, has equally proved a distraction. Although Marx and Engels bolstered their revolutionary faith by appealing to the inevitable crisis, in practice they quietly abandoned the illusion that the revolution would be precipitated by a general crisis when that of 1857 turned out to be a damp squib’

‘By the time that Marx wrote the first volume of Capital the emphasis of his analysis of capitalism was on the secular tendencies of capitalist development, the tendency to the concentration and centralisation of capital, to the polarisation of wealth and poverty, the coexistence of overwork and unemployment, and to the increasing instability of social existence which underlay the development of the organised working class. The crisis is no longer a cataclysmic effect, it is a part of the normal pattern of capitalist accumulation, the pattern of overaccumulation and crisis that underlies the permanence of the class struggle as capitalists seek to resolve the crisis tendencies of accumulation at the expense of the working class.’ (Clarke p 285)

‘Through the 1860s and early 1870s Marx looked to war rather than economic crisis as the precipitant of the political development of the working class. By the middle 1870s, however, Marx and Engels had come to see war, like crises, as events which divided and demoralised the working class.

Engels wrote to Sorge that the old international was now dead, as national rivalries and differences emerged after the fall of the Paris Commune (04.08.74). Marx clearly regarded a further war as a barrier to the progress of the working class. `A new war is inevitable au peu plus tôt, au peu plus tard, and before its conclusion there are hardly likely to be any violent popular movements anywhere.’ (Marx to Kugelman 18.05.74, CW45, 18)

`General European conditions are such as to increasingly wage a general European war. We shall have to pass through it before there can be any thought of decisive overt activity on the part of the European working class.’ (Marx to Sorge, 12-17.09.74, CW45, 30)’

Back to part 49

Forward to part 51

Breakdown, crises and the door to revolution

Posted on August 8, 2022 by irishmarxism

Karl Marx’s alternative to capitalism part 49

Arguments based on Marx’s 1859 Preface are often considered to be ‘reductionist’ or ‘determinist’, robbing the oppressed of their agency.¹ Productive forces are reduced to technology which drives accumulation, while in reality the order is the reverse – it is accumulation that drives technology and this accumulation is the growth of capital, of relations of production that involve the existence primarily of two classes which are involved in struggle.

People inhabit the forces of production and drive it forward and people inhabit the relations of production and perform the roles appropriate to the classes that are included in them.

The forces and relations of production therefore provide the grounds on which such agency makes sense and can be accounted for. Of course, they also involve constraints on such agency, but if they didn’t, they wouldn’t provide any sort of explanation at all.

This approach can be contrasted with real determinist arguments based on the idea of the inevitable breakdown of capitalism, which subject it has been said ‘is one which has plagued students of Marx for at least a century . . . veritable rivers of ink have been spent in an effort to fill up this gap in Marx’s theoretical system.” (Martin Nicolaus, The Unknown Marx, New Left Review 1/47 March – April 1968. P55)

Marx does not hold a breakdown theory of capitalism but since as long as capitalism exists it will continue to develop through its contradictions, these contradictions must develop to certain limits.

First, he notes in Capital Volume III, that:

`As soon as formation of capital were to fall into the hands of a few established big capitals, for which the mass of profit compensates for the falling rate of profit, the vital flame of production would be altogether extinguished. It would die out.’

Elsewhere, in the Grundrisse:

‘To the degree that large-scale industry develops, the creation of real wealth comes to depend less on labour-time and on the quantity of labour expended, and more on the power of the instruments which are set in motion during labour-time, and whose powerful effectiveness itself is not related to the labour-time immediately expended in their production, but depends rather on the general state of science and the progress of technology…. ‘

‘As soon as labour in its direct form has ceased to be the great wellspring of wealth, labour- time ceases and must cease to be its measure, and therefore exchange-value the measure of use-value. . . . With that, the system of production based on exchange-value collapses. . . . Capital is its own contradiction- in-process, for its urge is to reduce labour-time to a minimum, while at the same time it maintains that labour-time is the only measure and source of wealth.’

‘Productive forces and social relations—both of which are different sides of the development of the social individual—appear to capital only as means, and only means to produce on its limited basis. In fact, however, these are the material conditions to blow this basis sky-high.’ (Marx, Grundrisse pp 592–94, quoted in Nicolaus pp 58–59)

Marx did not expect capitalism to last long enough to get to this stage of its development and anticipated the contradiction between ‘productive forces and social relations’ to precipitate its replacement long before it. The continued expansion of capitalism and growth of what is conventionally called service industries means that neither lack of competition or an approach to the limit of labour in production has resulted in either of these limits being nearly approached.

In 1850, shortly after the failed revolutions of 1848, Marx wrote:

‘While this general prosperity lasts, enabling the productive forces of bourgeois society to develop to the full extent possible within the bourgeois system, there can be no question of a real revolution. Such a revolution is only possible when two factors come into conflict: the modern productive forces and bourgeois forms of production . . . A new revolution is only possible as a result of a new crisis; but it will come, just as surely as the crisis itself.’ (The Class Struggles in France: 1848 to 1850’)

These have not been the constraints that successive generations of Marxists have thought placed unwanted boundaries on their objectives. Instead, the contradiction between the forces and relations of production is viewed as objective conditions already being in place with only purely subjective ones required to come into line through the effects of capitalist crises. These objective crises express the fetters on the development of the forces of production and the social relations in which they are encased and are assumed to rapidly advance the subjective requirements for revolution.

For Marx however, economic crises are ‘always but momentary and forcible solutions of the existing contradictions. They are violent eruptions which for a time restore the disturbed equilibrium.’ (Capital Vol III). They are therefore not only ‘the most striking form in which advice is given it to be gone and to give room to a higher state of social production’, but their ‘violent destruction of capital’ is ‘a condition of its self-preservation.’ (Grundrisse)

Far from signalling stagnation of the forces of production, these forces are most developed just as crises erupt. And as we have noted before, concomitant with the growth of the forces of production is expansion of the relations of production: of the capitalist and working classes, upon which is dependent the struggle for socialism.

Socialism thus becomes more relevant and feasible as crises worsen but not because they get worse but because of what this says for the development of the forces of production. There is no final crisis and therefore no final breakdown we can look towards as a resolution to capitalism and advent of socialism; even if nothing lasts forever. Crises allow capitalism to seek an equilibrium, while also demonstrating its historical redundancy and potential for replacement, but neither is automatic, and while the former has occurred often, the latter has unfortunately not.

Crises may therefore be the occasion for political revolution – conquest of state power by the working class – through stimulation, but the success of political revolution does not fundamentally depend on them or on their severity. The objective conditions for this we have explained and there is no neat dividing line between these and the subjective conditions constituted out of the class struggle and the capacity, readiness and willingness of the working class to defend and advance its interests through political revolution.

The lack of correspondence between the two has not only involved ripeness of objective conditions and backwardness of the subjective, but also the development of some important subjective conditions in advance of objective constraints on successful revolution.

‘Only once in his life did he speak with a tone of achievement and a sense of accomplishment about one of his works. Only once did he announce that he had written something which not only encompassed the whole of his views, but also presented them in a scientific manner. That occasion was in the Preface to the Critique of Political Economy.’ (1859). Martin Nicolaus, The Unknown Marx, New Left Review 1/47 March – April 1968 p42.

Back to part 48

Forward to part 50

Social forms of emancipation

Posted on July 3, 2022 by irishmarxism

Photo: https://www.positive.news/uk/the-uk-workers-co-op-filling-in-fast-fashions-gaps/

Karl Marx’s alternative to capitalism part 48

In the previous post I noted that Marx states that solving the problems thrown up by social revolution will be possible when the conditions are present or “in the course of formation” with the implication that if they are not present or insufficiently in formation they cannot be accomplished.

These tasks include the development of the forces of production and of the working class and its movement so that it takes into its own hands these forces. Only through the massive socialisation of production carried out by capitalism is it possible to make these forces the collective power of the working class. Individual production such as peasant holdings, guild production, or petty commodity production in general, cannot support collective ownership. In the terminology of the Preface of 1859, the new relations of production would not be appropriate to the forces of production.

The massive development of today’s socialised production could only come about through the huge accumulation of means of production and transport etc, which cannot now function without equal development of massive amounts of data and information. These have developed through accumulation of these means as capital by the capitalist class. This in turn is simply invested surplus value that could not have been accumulated without the massive growth in the exploitation of the working class.

All this entails certain characteristics that are important to understanding the prerequisites for socialist revolution, understood both in terms of the development of the productive forces, before and after the occurrence of working class political revolution, and for the political revolution itself.

The advance of the forces of production has involved the prodigious increase in the international division of labour with implications for their continuing development, and how they must develop further under working class control and direction. It also makes clearer than was the case in Marx’s time that political revolution by the working class cannot succeed on a purely national basis, something that would already be universally accepted had the working class movement succeeded in developing international organisation, which therefore remains a crucial task.

The existing forms of socialisation also inevitably involve enormous increases in the concentration and centralisation of capital, which assists the possibility and potential for collective ownership by the working class. This has necessarily involved an enormous increase in planning both within and between individual productive forces. Engels recognised this in his critique of the Erfurt Programme, when referring to paragraph 4 of that programme’s criticism of “the planlessness rooted in the nature of capitalist private production”

Engels suggested that this “needs considerable improvement. I am familiar with capitalist production as a social form, or an economic phase; capitalist private production being a phenomenon which in one form or another is encountered in that phase. What is capitalist private production? Production by separate entrepreneurs, which is increasingly becoming an exception.”

‘Capitalist production by joint-stock companies is no longer private production but production on behalf of many associated people. And when we pass on from joint-stock companies to trusts, which dominate and monopolise whole branches of industry, this puts an end not only to private production but also to planlessness.”

The opposition between capitalism and socialism is not therefore about a simple counter-position of market and plan, since development of the latter within capitalism also helps lay the ground for the new relations of production that define the new working class society. It is the class that rules, that carries out the planning and that determines its scope and character that makes the difference, not the existence of plans themselves.

This also means that whatever role market relations initially have in the transition to cooperative production – before and after political revolution – will arise from the existing planning within capitalism, its degree of development beforehand and the capacity to expand and advance it thereafter.

The material relations of production that herald socialism also therefore refer to the forms of ownership that exist before political revolution, that will serve to help bring it about as well as help progress its success thereafter:

“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.”

As Engels said in a letter to Bebel:

“Marx and I never doubted that in the transition to the full communist economy we will have to use the cooperative system as an intermediate stage on a large scale.”

It is not therefore simply a question of some quantitative development of the forces of production, which is the limited way that it is often considered, but the necessary characteristics of that development – including the social forms that it takes – that affect the sufficiency of the material preconditions for socialism and the associated requirements for successful political revolution.

So, Marx does not say that just because the forces of production have developed – to whatever level – the new society will emerge out of it. If it does not then it (the old society) may well continue to develop its forces of production. The creation of the new is a conscious act.

This is because it is the working class itself, as it is organised in production, that is the prime productive force, which comes into conflict within the prevailing relations of production, i.e. the class relations of subordination and exploitation, and which means the contradiction between the forces and relations is not a simple resolution in favour of the forces, as some bourgeois analysis might seek to contend. An early formulation by Marx appeared in the Poverty of Philosophy:

“For the oppressed class to be able to emancipate itself, it is necessary that the productive powers already acquired and the existing social relations should no longer be capable of existing side by side. Of all the instruments of production, the greatest productive power is the revolutionary class itself. The organisation of revolutionary elements as a class supposes the existence of all the productive forces which could be engendered in the bosom of the old society.”

In Value, Price and Profit Marx explains to workers that ‘They ought to understand that, with all the miseries it imposes upon them, the present system simultaneously engenders the material conditions and the social forms necessary for an economical reconstruction of society.’

Thus, the way the social forms of production have developed under capitalism are also part of the material circumstances that face the working class in its task of overthrowing and transforming it. This includes the international nature of the division of labour and of the classes necessarily based on it; the increased removal of the capitalist class directly from the greatest means of production with the substitution of professional and technical staff that shade into the working class; and the forms of socialised ownership arising, including development of its cooperative forms, which can all act as more direct preparation of the working class for its new role as master of society.

Marx presented no systematic view on how all these elements might come together just as he did not provide a blueprint about how the new society would be planned, as the latter grows out of the former and not from some prior schema. It has however been stated repeatedly that this would arise directly out of existing society and not from some invented first principles, whether that be a certain plan or state structure; especially as the latter must become subordinated to general society and not its master.

Back to part 47

Forward to part 49

Being ready for socialism

Posted on June 13, 2022 by irishmarxism

Karl Marx’s alternative to capitalism part 47

In Marx’s Preface to a Contribution to the Critique of Political Economy, which we have so far used to signpost the nature of Marx’s alternative to capitalism, he writes that on “the economic structure of society, the real foundation . . . arises a legal and political superstructure . . . to which correspond definite forms of social consciousness . . .” When “the material productive forces of society come into conflict with the existing relations of production . . .” there “begins an era of social revolution. The changes in the economic foundation lead sooner or later to the transformation of the whole immense superstructure.”

It is therefore the changes in the economic foundation within capitalism that lead “sooner or later” to the transformation of the “legal and political superstructure.” It is not that this superstructure, including the state, leads to the era of social revolution. What is involved are social changes, which in relation to the creation of socialism; the end of class division and disappearance of the state, cannot be the result of the ‘superstructure’ i.e., the state itself, but of the development of the productive forces and appropriately corresponding relations of production. This might seem obvious when stated after quoting Marx, but this has not prevented a century of claims that a socialist state introduces socialism, the eradication of class division and the withering away of the state itself.

The “superior relations of production” under which this is achieved replace the old when the “material conditions for their existence have matured within the framework of the old society.”

Marx then states that “mankind thus inevitably sets itself only such tasks as it is able to solve, since closer examination will always show that the problem itself arises only when the material conditions for its solution are already present or at least in the course of formation.”

He has already stated that “in studying such transformations it is always necessary to distinguish between the material transformation of the economic conditions of production, which can be determined with the precision of natural science, and the legal, political, religious, artistic or philosophic – in short, ideological forms in which men become conscious of this conflict and fight it out.”

We should therefore know whether and to what extent material conditions are present, “or at least in the course of formation”, for the commencement of the transformation of capitalism. In a previous post I argued that maturation of these material conditions should not be understood as requiring some absolute value but is a function of historical development.

When first clarifying their ideas Marx and Engels noted this in general terms; rejecting the idea that the ‘degree of freedom’ to be achieved was a product simply of people’s views of its necessity:

“In reality, of course, what happened was that people won freedom for themselves each time to the extent that was dictated and permitted not by their ideal of man, but by the existing productive forces. All emancipation carried through hitherto has been based, however, on unrestricted productive forces. The production which these productive forces could provide was insufficient for the whole of society and made development possible only if some persons satisfied their needs at the expense of others, and therefore some — the minority — obtained the monopoly of development, while others — the majority — owing to the constant struggle to satisfy their most essential needs, were for the time being (i.e., until the creation of new revolutionary productive forces) excluded from any development.” (Marx and Engels, The German Ideology)

Given what Marx says in the 1859 Preface about the conditions required for solving the transformation of capitalism, it was open that there may be premature attempts to move to a new society. Engels notes, in his Peasant War in Germany that the leader of the peasants, Thomas Müntzer, lived in an age which was “not ripe” for his ideas:

“Not only the movement of his time, but the whole century, was not ripe for the realisation of the ideas for which he himself had only begun to grope. The class which he represented not only was not developed enough and incapable of subduing and transforming the whole of society, but it was just beginning to come into existence. The social transformation that he pictured in his fantasy was so little grounded in the then existing economic conditions that the latter were a preparation for a social system diametrically opposed to that of which he dreamt. (page 78-79)

If this was obvious of the 16^th century, in the Communist Manifesto Marx summarised the later experience of the young working class:

“the first direct attempts of the proletariat to attain its own ends, made in times of universal excitement, when feudal society was being overthrown, necessarily failed, owing to the then undeveloped state of the proletariat, as well as to the absence of the economic conditions for its emancipation, conditions that had yet to be produced, and could be produced by the impending bourgeois epoch alone.”

The material conditions necessary for a new society include a level of productive forces that are “appropriate” for the creation of new relations of production; but since this requires a “social revolution” the transformation involved also requires that this becomes a conscious struggle that is ‘fought out’. We have been told in the 1859 Preface that how we understand this transformation, our consciousness of it, must itself be explained:

“Just as one does not judge an individual by what he thinks about himself, so one cannot judge such a period of transformation by its consciousness, but, on the contrary, this consciousness must be explained from the contradictions of material life, from the conflict existing between the social forces of production and the relations of production.” (Preface 1859)

In the Manifesto Marx notes that:

“The revolutionary literature that accompanied these first movements of the proletariat had necessarily a reactionary character. It inculcated universal asceticism and social levelling in its crudest form.”

“The Socialist and Communist systems, properly so called, those of Saint-Simon, Fourier, Owen, and others, spring into existence in the early undeveloped period, described above, of the struggle between proletariat and bourgeoisie . . .”

“The founders of these systems see, indeed, the class antagonisms, as well as the action of the decomposing elements in the prevailing form of society. But the proletariat, as yet in its infancy, offers to them the spectacle of a class without any historical initiative or any independent political movement.”

“Since the development of class antagonism keeps even pace with the development of industry, the economic situation, as they find it, does not as yet offer to them the material conditions for the emancipation of the proletariat.”

Instead, their consciousness reflects their material reality:

“Historical action is to yield to their personal inventive action; historically created conditions of emancipation to fantastic ones; and the gradual, spontaneous class organisation of the proletariat to an organisation of society especially contrived by these inventors. Future history resolves itself, in their eyes, into the propaganda and the practical carrying out of their social plans.”

“In the formation of their plans, they are conscious of caring chiefly for the interests of the working class, as being the most suffering class. Only from the point of view of being the most suffering class does the proletariat exist for them.”

As this quotation makes clear, given the requirement of maturation of the conditions that will permit new superior relations of production, it is not possible to leap over the development of these conditions; by attempting to disregard the absence of sufficient productive forces or attempting to replace existing relations of production with new ones when the productive forces will not support them, when the existing exploited class is insufficiently developed to abolish its own exploitation and that of exploitation more generally.

Twentieth-century history, in the shape of the Soviet Union and China (the Great Leap Forward and Cultural Revolution for example), is testament to the accuracy of these claims. These experiences threw up struggles, organisations, programmes and slogans that reflected their precocity but which unfortunately have been unthinkingly repeated without adequate consideration of their original circumstances and therefore their limitations.

Marx makes clear that solving the problems thrown up by such transformation will be possible when the conditions are present or “in the course of formation” with the implication that if they are not present or insufficiently in formation then the requisite tasks necessary for transformation cannot be accomplished.

In such circumstances the tasks revolve around existing development of the forces of production and class relations such that the working class is prepared and made ready to take into its own hands these forces. As we have noted, Marx believed that the material conditions “could be produced by the impending bourgeois epoch alone.”

In The German Ideology Marx and Engels state that the abolition of exploitation “presuppose(s) a great increase in productive power, a high degree of its development. And, on the other hand, this development of productive forces (which itself implies the actual empirical existence of men in their world-historical, instead of local, being) is an absolutely necessary practical premise because without it want is merely made general, and with destitution the struggle for necessities and all the old filthy business would necessarily be reproduced.”

“. . . Communism is for us not a state of affairs which is to be established, an ideal to which reality [will] have to adjust itself. We call communism the real movement which abolishes the present state of things. The conditions of this movement result from the premises now in existence.”

There is no blueprint, there is no ideal state of affairs to be aimed at, and there is no master plan. The movement begins where it is and involves the working class emancipating itself through changing its conditions, and changing itself, based on circumstances that already exist but are constantly developed, along the lines analysed and presented by Marx in Capital, and which we have extensively discussed in previous posts.

This movement does not stop after political revolution, and Marx states that “The proletariat will use its political supremacy to . . . increase the total productive forces as rapidly as possible.” (Communist Manifesto). Only in this way can humanity move from the want and inequality continually and necessarily reproduced under capitalism to society being able to “inscribe on its banners: From each according to his ability, to each according to his needs!” (Critique of the Gotha Programme)

Back to part 46

Forward to part 48

State Socialism and The Communist Manifesto

Posted on October 9, 2021 by irishmarxism

Karl Marx’s alternative to capitalism part 46

In the Communist Manifesto Marx states that ‘the first step in the workers’ revolution is the elevation of the proletariat to the ruling class, the winning of democracy. The proletariat will use its political rule to wrest bit by bit all capital from the bourgeoisie, to centralise all instruments of production in the hands of the state, i.e., of the proletariat organised as ruling class . . . ‘

There then follows a set of demands that ‘will naturally be different depending on the different countries. For the most advanced countries, however the following can be put into effect fairly generally.’ There is then a list of ten demands of which the most relevant for our purposes are –

‘5 Centralisation of credit in the hands of the state through a national bank with state capital and an exclusive monopoly.’

‘6. Centralisation of the whole transportation system in the hands of the state.’

‘7. Increase in national factories and instruments of production, reclamation and improvement of land in accordance with a common plan.’

These demands would appear to entail the introduction of socialism through actions of the state – albeit with the vital condition that this is a state in the hands of the workers – with state control of industry etc. under a centralised plan as the objective. This is in obvious contrast to Marx and Engels antipathy to (capitalist) state ownership and control as noted in previous posts; their opposition to a putative necessary role for the state in sponsoring workers cooperatives; and the prominent role they give to cooperatives in the development of the working class, its movement, and its heralding of a new socialist society.

To anticipate the argument to be presented: the Manifesto was written quickly, in particular circumstances, and, more importantly, at an early part of Marx and Engels’ political careers, including before their experience of the Paris Commune. However, none of this explains, or rather explains away, these passages since much of what is written in the Manifesto Marx and Engels defended for the rest of their lives.

If we take the opening lines quoted above: ‘the first step in the workers’ revolution is the elevation of the proletariat to the ruling class, the winning of democracy’, it must be said that while control of the state is required to secure the rule of any ruling class, such control does not make a class the rulers of society. Only in relation to the means of production can a class be constituted as the ruling class. Even were the working class to ‘win democracy’ it would not yet be a ruling class unless this democracy included its ownership and control of society’s productive powers.

Of course, Marx goes on to say that ‘the proletariat will use its political rule to wrest bit by bit all capital from the bourgeoisie, to centralise all instruments of production in the hands of the state’ but again, the state is a separate body of men and women and cannot be considered to be synonymous with the working class. So, if the state has its hands on the means of production it means the working class does not, and this is true even if the workers state is democratic. As noted before, state title to the productive resources of society would only be consistent with effective workers’ ownership if it performed the negative function of preventing alienation of particular factories etc from the collective ownership of society and their appropriation as private capital.

Immediately after the ten demands, Marx states that ‘when, in the course of development, class distinctions have disappeared and all production is concentrated in the hands of the associated individuals, the public power loses its political character.’

As Marx then says, ‘political power in its proper sense is the organised power of one class for the oppression of another.’ For the ‘public power to lose its political character’ the state would therefore have to cease to exist, but how does production leave its hands and come into the hands of the ‘associated individuals’?

The state, as instrument of ‘oppression’ is unsuitable for control of production and certainly for its exercise by the working class, and it is only by the working class becoming the ruling class can the state ‘wither away’, as it was later put by Lenin. The working class can therefore only be a ruling class through its role in production and can sustain and defend its position, at least initially, only by having a state of its own.

The socialist scholar, Hal Draper, states that the term ‘winning the battle of democracy’ (in one translation of the Manifesto) was cryptic and reflected Marx’s lack of certainty over whether this meant the victory of the democratic bloc existing in much of Europe at the time, that did not seek to go beyond capitalism or bourgeois rule, or outright proletarian rule as might be thought given the context.

The first edition of the Manifesto was in German and at this time only a bourgeois revolution was immediately anticipated in Germany – “the Communists turn their attention chiefly to Germany, because that country is on the eve of a bourgeois revolution . . .” The ten demands can be better understood as the programme of a radical bourgeois revolution that the working class would support in light of its own weakness and inability at that time to achieve its own class rule. This incapacity did not however mean that the working class was ever to cease for a minute to organise to defend and advance its own particular interests.

In the later 1872 German preface to the Manifesto Marx makes the following points:

‘However much that state of things may have altered during the last twenty-five years, the general principles laid down in the Manifesto are, on the whole, as correct today as ever. Here and there, some detail might be improved. The practical application of the principles will depend, as the Manifesto itself states, everywhere and at all times, on the historical conditions for the time being existing, and, for that reason, no special stress is laid on the revolutionary measures proposed at the end of Section II [the ten demands].’

‘That passage would, in many respects, be very differently worded today. In view of the gigantic strides of Modern Industry since 1848, and of the accompanying improved and extended organisation of the working class, in view of the practical experience gained, first in the February Revolution, and then, still more, in the Paris Commune, where the proletariat for the first time held political power for two whole months, this programme has in some details been antiquated. One thing especially was proved by the Commune, viz., that “the working class cannot simply lay hold of the ready-made state machinery, and wield it for its own purposes.”’

The Manifesto speaks of the proletariat using its political rule to wrest bit by bit all capital from the bourgeoisie, to centralise all instruments of production in the hands of the state, i.e., of the proletariat organised as ruling class . . .’ It goes on to say that this involves ‘measures which seem economically inadequate and untenable but which in the course of operation drive beyond their own limits, and are unavoidable as a means of transforming the whole mode of production.’

These might seem to have some correspondence to Trotsky’s approach laid out in the Transitional Programme, but here they relate to measures to be implemented following the already achieved ‘political supremacy’ of the working class and not the programme that precedes it. In this context it should also be said that a ‘transitional’ approach that substitutes demands for expropriation by the (capitalist) state in place of workers’ expropriation is a very different approach and involves a different transition.

Draper notes that:

‘the Manifesto was one of the few writings in which Marx spoke in terms of state ownership of the means of production. He usually left open the question of the forms of social ownership, which might include workers’ associations and cooperatives. The emphasis in the Manifesto reflected the emphasis in the movement for which it was written at the time. State ownership (by a workers’ state) was, to be sure, one form of social ownership for Marx.’

Draper also endorses the view that the demands were not specifically those of Marx or Engels but already existing and agreed demands of the Communist League, for whom the Manifesto was written. He also notes the extent that some other specific demands did not represent Marx’s own views, (in The Adventures of the Communist Manifesto).

These demands accord with other programmatic statements such as The Demands of the Communist Party in Germany, which were set out as the programme to be adopted in what was understood to be a radical democratic revolution, but not yet a working class and socialist one. In the Manifesto Marx employs the argument about their transitional nature in order to cover this (rather wide) gap, but their realisation would not achieve socialism even if it would strengthen the existing position of the working class and its future struggle.

Marx states in the Manifesto that when the proletariat ‘has become the ruling class by revolution, and as such has destroyed, by force, the old conditions of production, it destroys, necessarily, with these conditions of production, the conditions of existence of all class antagonism, of classes generally, and thus it destroys, also, its own supremacy as a class.’

Like Engels in Anti-Duhring, the prospectus is of the state dying following working class revolution and the means of production becoming the property of the associated producers, i.e. the working class. Since no capitalist class would now exist, and no other class could have ownership of the means of production, all class distinctions are removed and the division of society into classes disappears.

In this process many questions arise as to sequence, timing and agency and the telescoped summary in the Manifesto can only be properly considered with due regard to the development of Marx’s views at that time. It is possible to quote Marx and Engels in favour of state ownership but not possible to make this consistent with other major statements of view; with the consistency of their overall perspective and programme, or their foundational beliefs.

Two years after the publication of the Manifesto Marx, when he still had hopes for an approaching revolution, hoped that the communists could “make the revolution permanent until . . . at least the decisive forces of production are concentrated in the hands of the workers.” (Address of the Central Committee to the Communist League)

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State support for the workers?

Posted on September 20, 2021 by irishmarxism

Karl Marx’s alternative to capitalism part 45

The first premise to the rules of the First International, written by Marx in 1864 as the first clause, was that ‘the emancipation of the working classes must be conquered by the working classes themselves . . .’

In 1882 Engels in London wrote to the German socialist August Bebel:

‘The development of the proletariat proceeds everywhere amidst internal struggles and France, which is now forming a workers’ party for the first time, is no exception. We in Germany have got beyond the first phase of the internal struggle, other phases still lie before us. Unity is quite a good thing so long as it is possible, but there are things which stand higher than unity. And when, like Marx and myself, one has fought harder all one’s life long against the alleged Socialists than against anyone else (for we only regarded the bourgeoisie as a class and hardly ever involved ourselves in conflicts with individual bourgeois), one cannot greatly grieve that the inevitable struggle has broken out.’

One such famous internal struggle was against the draft programme of the United Workers’ Party of Germany. The Critique of the Gotha Programme is a document based on a letter by Marx written in early May 1875 to the Social Democratic Workers’ Party of Germany (SDAP), with whom he and Engels were in close association.

The Critique, published after his death, was among Marx’s last major writings and is named after the proposed platform for the new united party to be created at the forthcoming congress, to take place in the town of Gotha. At the congress, the SDAP (“Eisenachers”, based in Eisenach) planned to unite with the General German Workers’ Association (ADAV), followers of the deceased Ferdinand Lassalle.

The Eisenachers sent the draft programme for the united party to Marx for comment. He found it negatively influenced by Lassalle, whom Marx regarded as an opportunist, and Marx’s response offers perhaps his last extended summary on programmatic strategy.

In a letter to Wilhelm Bracke, Marx states that “After the Unity Congress has been held, Engels and I will publish a short statement to the effect that our position is altogether remote from the said programme of principle and that we have nothing to do with it.’ Describing it as a ‘thoroughly objectionable programme that demoralises the Party’, he vowed not to ‘give [it] recognition, even by diplomatic silence.’

The document discusses numerous questions but it is particularly useful in presenting Marx’s views on strategy before working class conquest of political power, including the two questions at issue in our latest posts – on the cooperative movement and the role of the state.

It should be noted that Marx was not against socialist unity but did not support the abandonment of political principle in order to achieve it:

‘If, therefore, it was not possible — and the conditions of the item did not permit it — to go beyond the Eisenach programme, one should simply have concluded an agreement for action against the common enemy. But by drawing up a programme of principles (instead of postponing this until it has been prepared for by a considerable period of common activity) one sets up before the whole world landmarks by which it measures the level of the Party movement.’

Marx prefaced these remarks by saying that ‘every step of real movement is more important than a dozen programmes’, and he undoubtedly saw the cooperative movement as involving just such steps. Following the experience of the Paris Commune just a few years before he had also learned lessons from the real movement of the working class in relation to the role of the state.

The offending paragraph of the proposed united German Party stated:

‘The German Workers’ party, in order to pave the way to the solution of the social question, demands the establishment of producers’ co-operative societies with state aid under the democratic control of the toiling people. The producers’ co-operative societies are to be called into being for industry and agriculture on such a scale that the socialist organization of the total labour will arise from them.”

Marx notes sarcastically that:

‘Instead of arising from the revolutionary process of transformation of society, the “socialist organisation of the total labour” “arises” from “state aid”; that the state gives to the producers’ co-operative societies and which the state, not the workers, “calls into being”. It is worthy of Lassalle’s imagination that with state loans one can build a new society just as well as a new railway!’

He goes on, quoting the programme’s own words:

‘Second, “democratic” means in German “Volksherrschaftlich” [by the rule of the people] But what does “control by the rule of the people of the toiling people” mean? And particularly in the case of a toiling people which, through these demands that it puts to the state, expresses its full consciousness that it neither rules nor is ripe for ruling! . . . The chief offense does not lie in having inscribed this specific nostrum in the program, but in taking, in general, a retrograde step from the standpoint of a class movement to that of a sectarian movement.’

The socialist scholar Hal Draper has argued that ‘Marx’s objection to the “state aid” nostrum was not to “state aid” per se but to its place in the programme.’ What it had become in the hands of their ex-leader Lassalle was ‘a universal panacea’ and substitute for a rounded programme because the programme had no other socialist plank within it. The state-aid plank was already in the existing Eisenachers’ programme but only as one of many measures. On its own the demand was acceptable as part of a larger strategy as Engels argued:

‘that the universal panacea of state aid should be, if not entirely relinquished, at any rate recognised . . . as a subordinate transitional measure, one among and alongside of many other possible ones.’

But not as the strategy as a whole, which would make the working class dependent on state support: in effect with the same sort of result as today’s demands for widespread ‘public ownership’ and ‘nationalisation’; plus much of the approach to state redistribution of income.

Draper turns the issue into an aspect of Marx’s support for reforms but not for reformism; a question of what place reforms have in the programme, and not of reforms being assigned a certain all-encompassing role as the be-all and end-all. He also notes that holding up this single point in the programme is sectarian – holding aloft a particular demand that differentiates the Party from the working class movement. An approach that does not seek to marry the understanding of socialists to the real struggles of the working class and its organisations.

Marx goes on to say in his Critique:

‘That the workers desire to establish the conditions for co-operative production on a social scale, and first of all on a national scale, in their own country, only means that they are working to revolutionize the present conditions of production, and it has nothing in common with the foundation of co-operative societies with state aid. But as far as the present co-operative societies are concerned, they are of value only insofar as they are the independent creations of the workers and not proteges either of the governments or of the bourgeois.’

So, it is not the case that the Party’s support for workers’ cooperatives could routinely and always supplement support with calls for state assistance, rather in the way that today nationalisation is often accompanied with the call for ‘workers’ control’; but that such state support can be acceptable and may not on its own invalidate the workers’ efforts. However – ‘they are of value only insofar as they are the independent creations of the workers.’

This need for independence of the workers from the state is highlighted in the following section of the Gotha Critique, beginning by him quoting the programme that ‘according to [section] II, the German Workers’ the party strives for “the free state.”

Marx says of this that:

‘Freedom consists in converting the state from an organ superimposed upon society into one completely subordinate to it; and today, too, the forms of state are more free or less free to the extent that they restrict the “freedom of the state.”

‘The German Workers’ party—at least if it adopts the program—shows that its socialist ideas are not even skin-deep; in that, instead of treating existing society (and this holds good for any future one) as the basis of the existing state (or of the future state in the case of future society), it treats the state rather as an independent entity that possesses its own intellectual, ethical, and libertarian bases.’

This reminds us of Engels’ remark in an earlier post that the state represents society and the conclusion we drew that ‘In each case the state represented those classes that owned and controlled the means of production (at least of the social surplus), so that the capitalist state defends the ownership of the means of production of the capitalist class. The analogous role of the workers’ state is not to direct and manage its own ownership of the means of production but to defend the ownership by the working class of the means of production.’

For Marx ‘the whole programme, for all its democratic clang, is tainted through and through by the Lassallean sect’s servile belief in the state . . .’

The Critique of the Gotha Programme, published after his death, was among Marx’s last major writings but at the time German socialist Wilhelm Liebknecht, who supported the unity initiative, attempted to censor his criticism. Only in 1891, after threats by Engels, was the Critique published. Much of today’s Marxist movement gives every indication that this censorship was, in fact, successful.

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The role of the workers’ state

Posted on September 5, 2021 by irishmarxism

Karl Marx’s alternative to capitalism part 44

In the previous post we noted that state ownership appeared an inevitable progression of the capitalist mode of production and could be read as a tendency to complete its development, with ‘the partial recognition of the social character of the productive forces forced upon the capitalists themselves. Taking over of the great institutions for production and communication, first by joint-stock companies, later in by trusts, then by the State. (All quotations from Engels’ Socialism Utopian and Scientific)

Such an outcome would not be socialism as some political tendencies might suggest with their programmes for widespread nationalisation: ‘the transformation, either into joint-stock companies, or into state ownership, does not do away with the capitalistic nature of the productive forces.’

The state guarantees (including ownership in many cases) of the financial system after the financial crash in 2008 illustrated almost perfectly the growing role of the state in supporting the whole constitution of the existing mode of production. The world-wide assumption of guarantees of employment and business survival during the Covid-19 pandemic has confirmed this. It is unfortunate that rather than highlight this, much of the left has called for even greater state intervention, further sowing illusions in its potentially progressive role.

So, if Engels made it clear that capitalist state ownership is not socialism, a second question was nevertheless raised: is ownership by a workers’ state socialist even if ownership by the capitalist state is not?

Engels says: ‘Whilst the capitalist mode of production more and more completely transforms the great majority of the population into proletarians, it creates the power which, under penalty of its own destruction, is forced to accomplish this revolution. Whilst it forces on more and more of the transformation of the vast means of production, already socialized, into State property, it shows itself the way to accomplishing this revolution. The proletariat seizes political power and turns the means of production into State property.’

So, it would appear that the seizure of the means of production by the workers’ state constitutes the decisive opening of the road to socialism, and some form of state socialism may indeed be the genuine article. (Although the wording here is rather peculiar, for while capitalism more and more transforms the ‘vast means of production . . . into state property’ the proletariat through its revolution is to turn it ‘into state property’–to complete the transformation?)

Except Engels immediately goes on to say this:

‘But, in doing this, it abolishes itself as proletariat, abolishes all class distinction and class antagonisms, abolishes also the State as State. Society, thus far, based upon class antagonisms, had need of the State. That is, of an organization of the particular class which was, pro tempore, the exploiting class, an organization for the purpose of preventing any interference from without with the existing conditions of production, and, therefore, especially, for the purpose of forcibly keeping the exploited classes in the condition of oppression corresponding with the given mode of production (slavery, serfdom, wage-labour).’

‘The State was the official representative of society as a whole; the gathering of it together into a visible embodiment. But, it was this only in so far as it was the State of that class which itself represented, for the time being, society as a whole: in ancient times, the State of slave-owning citizens; in the Middle Ages, the feudal lords; in our own times, the bourgeoisie.’

‘When, at last, it becomes the real representative of the whole of society, it renders itself unnecessary. As soon as there is no longer any social class to be held in subjection; as soon as class rule, and the individual struggle for existence based upon our present anarchy in production, with the collisions and excesses arising from these, are removed, nothing more remains to be repressed, and a special repressive force, a State, is no longer necessary. The first act by virtue of which the State really constitutes itself the representative of the whole of society — the taking possession of the means of production in the name of society — this is, at the same time, its last independent act as a State.’

‘State interference in social relations becomes, in one domain after another, superfluous, and then dies out of itself; the government of persons is replaced by the administration of things, and by the conduct of processes of production. The State is not “abolished”. It dies out. This gives the measure of the value of the phrase: “a free State”, both as to its justifiable use at times by agitators, and as to its ultimate scientific inefficiency; and also of the demands of the so-called anarchists for the abolition of the State out of hand.’

How do we avoid the conclusion that what is being proposed is that upon the socialist political revolution the new workers’ state that has gained ownership and control of the means of production through that revolution begins to disappear? Does this mean workers should struggle to enormously expand the power and scope of the state only in order for it to then more or less rapidly shrink and disappear?

To jump straight to a conclusion–the alternative is not to demand state ownership under capitalism, or to seek it under a workers’ state, but to struggle for workers’ ownership, that is for cooperative production by the working class and this ownership and control to encompass the whole economy.

It is the workers organised as producers that represents ‘society as a whole’, as required by Engels, and which can ‘openly and directly take possession’ of the productive forces and manage them, not any sort of state. Even a democratic workers’ state is an organised body of repression separate from the working class; any other definition simply mistakes what a state is. Whatever legal and administrative arrangements required to maintain the collective ownership of individual productive forces will either require a minimal role for the state or none at all, e.g. to prevent the alienation of particular productive forces owned by the class as a whole.

Capitalism has so developed the intellectual and social powers of the working class that it can direct the economy without capitalists; provided we do not stupidly restrict definition of the working class in such a way that it excludes its most educated layers, for example because they are normally significantly better off in terms of income than many other workers.

If we read Engels he speaks of ‘the State of that class which itself represented, for the time being, society as a whole: in ancient times, the State of slave-owning citizens; in the Middle Ages, the feudal lords; in our own times, the bourgeoisie.’

In each case the state represented those classes that owned and controlled the means of production (at least of the social surplus), so that the capitalist state defends the ownership of the means of production by the capitalist class. The analogous role of the workers’ state is not to direct and manage its own ownership of the means of production but to defend the ownership by the working class of the means of production.

Only upon these grounds can the class nature of society be radically changed such that, as Engels argued, the working class abolishes itself and all classes and in so doing abolishes the state. It makes no sense to believe that the state through its ownership of the forces of production will employ its political power to abolish itself, including its direction of society’s productive powers.

Socialism is not the granting of the productive powers of society to the working class by any sort of benevolent state. In Engels terms, the workers’ state can more and more be the representative of society under socialism to the extent that it disappears, reflecting the disappearance of classes themselves.

The socialist political revolution is the capture of political power by the working class in order to defend, and to extend, its social gains as the rising class in society, with its own ownership and control of society’s productive powers central to this. The struggle for workers’ cooperatives is the most direct way to make this a reality under capitalism, as both ideological and practical example of the power of the working class to create a new society.

Such a view is consistent with the other expressed views of Marx and Engels, including ‘seizing the means of production by society’, which we shall review in the next post.

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Socialism from the State

Posted on August 24, 2021 by irishmarxism

Karl Marx’s alternative to capitalism part 43

Most organisations declaring themselves to be Marxist offer little or no role to the development of worker cooperatives as part of their programme. In one sense this is surprising given the striking declarations of Marx on their importance. In another way it is not so unexpected.

The road to socialism was much debated in the 19^th century with a number of currents putting forward a leading role for the state, including in sponsoring cooperatives. Since that time the state has grown enormously, including for reasons that Marx and Engels set out. Its prominence has often been obvious in less developed capitalisms where its role in industrialisation has been more direct from the start of its development.

The misplaced role for the state now current among socialists (nationalisation, income redistribution, state welfare etc.) arises as a reflection in ideology of the massively increased economic and social power of the state within capitalism, and the weight of that ideology transmitted into Marxism through social democracy and Stalinism. All these have been too powerful in their effect on weak Marxist currents. When we appreciate the ideological influence of the Russian revolution, the dominance of the idea of socialism as an expression of state power is unsurprising.

For this reason, it is important in setting out Marx’s alternative to capitalism to address not only what he positively advocated but also what he fought against, and one of his recurring battles was against the idea of some of his contemporaries that socialism would issue from the state. Against this he also had to address the views of anarchism, which argued that the state could quickly be abolished.

Given the hold that this ‘state socialism’ continues to have on a wide variety of socialist and generally ‘left’ opinion, it is therefore necessary to set out Marx and Engels’ views on the role of the state in the creation of socialism. In doing so we will leave aside the actual experience of attempts to implement such a view in the 20^th century and will come back to some aspects of these in future posts.

As we have seen, the development of the socialisation of production lays the grounds for collective ownership of the means of production by the working class. This socialisation is expressed through the development of joint stock companies, workers cooperatives and state ownership, following the concentration and centralisation of capital.

Capitalism is therefore a transitional form to socialism but it is necessary to understand the forms of this transition and their unfolding. It is therefore not the case that because state ownership is one of the most developed forms of capitalism, and therefore of transition, it is by this fact also an early form of socialism.

In ‘Socialism: Utopian and Scientific’ Frederick Engels sums up the historical evolution of capitalism – from medieval society to capitalism – and the contradictions that lead to proletarian revolution:

‘Partial recognition of the social character of the productive forces forced upon the capitalists themselves. Taking over of the great institutions for production and communication, first by joint-stock companies, later on by trusts, then by the State. The bourgeoisie demonstrated to be a superfluous class. All its social functions are now performed by salaried employees.‘

‘Proletarian Revolution — Solution of the contradictions. The proletariat seizes the public power, and by means of this transforms the socialised means of production, slipping from the hands of the bourgeoisie, into public property. By this act, the proletariat frees the means of production from the character of capital they have thus far borne, and gives their socialised character complete freedom to work itself out. Socialised production upon a predetermined plan becomes henceforth possible. The development of production makes the existence of different classes of society thenceforth an anachronism. In proportion as anarchy in social production vanishes, the political authority of the State dies out.’

This formulation leaves open the view that seizure of the mean of production by the state – once itself seized by the working class – removes them as forms of capital, becomes the form of socialisation under the rule of the working class, and initiates their employment as means of satisfying the needs of the vast majority of society. The same proposition appears in Anti-Duhring, from which the short pamphlet is derived.

In an earlier section of ‘Socialism: Utopian and Scientific’ Engels addresses the Marxist view of the state in the transition to socialism by noting the planning that is involved in the development of Trusts and monopoly:

‘. . . with trusts or without, the official representative of capitalist society — the state — will ultimately have to undertake the direction of production. [4] This necessity for conversion into State property is felt first in the great institutions for intercourse and communication — the post office, the telegraphs, the railways.’

In the footnote within this passage Engels states that:

‘4. I say “have to”. For only when the means of production and distribution have actually outgrown the form of management by joint- stock companies, and when, therefore, the taking them over by the State has become economically inevitable, only then — even if it is the State of today that effects this — is there an economic advance, the attainment of another step preliminary to the taking over of all productive forces by society itself.’

‘But of late, since Bismarck went in for State-ownership of industrial establishments, a kind of spurious Socialism has arisen, degenerating, now and again, into something of flunkyism, that without more ado declares all State-ownership, even of the Bismarkian sort, to be socialistic. Certainly, if the taking over by the State of the tobacco industry is socialistic, then Napoleon and Metternich must be numbered among the founders of Socialism.’

‘If the Belgian State, for quite ordinary political and financial reasons, itself constructed its chief railway lines; if Bismarck, not under any economic compulsion, took over for the State the chief Prussian lines, simply to be the better able to have them in hand in case of war, to bring up the railway employees as voting cattle for the Government, and especially to create for himself a new source of income independent of parliamentary votes — this was, in no sense, a socialistic measure, directly or indirectly, consciously or unconsciously. Otherwise, the Royal Maritime Company, the Royal porcelain manufacture, and even the regimental tailor of the army would also be socialistic institutions, or even, as was seriously proposed by a sly dog in Frederick William III’s reign, the taking over by the State of the brothels.’

This footnote makes clear that Engels did not regard ownership by the capitalist state, often now euphemistically called public ownership, to be any sort of socialism. As he goes on to say in the main body of the text:

‘But, the transformation — either into joint-stock companies and trusts, or into State-ownership — does not do away with the capitalistic nature of the productive forces. In the joint-stock companies and trusts, this is obvious. And the modern State, again, is only the organization that bourgeois society takes on in order to support the external conditions 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.’

He goes on to say that ‘This solution can only consist in the practical recognition of the social nature of the modern forces of production, and therefore in the harmonising with the socialised character of the means of production. And this can only come about by society openly and directly taking possession of the productive forces which have outgrown all control, except that of society as a whole.’

This ‘open and direct’ taking into possession cannot be by the state since this is a separate machine apart from the class. Engels follows up the above remarks by stating that the productive forces that ‘work in spite of us, in opposition to us, so long they master us . . . when once their nature is understood, they can, in the hands of the producers working together, be transformed from master demons into willing servants.’

The tendency for the state to more and more take over production is therefore posited as the dynamic development of capitalism and not of society ruled by the working class. The state is not the true representative of society, a point made very early in Marx’s political development, and is as Engels says: ‘essentially a capitalist machine, the state of the capitalists, the ideal personification of the total national capital.’

So, if capitalist state ownership does not mean socialism, what does it mean for ‘society openly and directly taking possession of the productive forces’, a phrase repeated by Engels a number of times. How is to be done and once done does ownership by the new workers’ state mean socialism?

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Forward to part 44

Marx against cooperation?

Posted on August 5, 2021 by irishmarxism

Karl Marx’s alternative to capitalism part 42

The Inaugural Address to the First International in which Marx expressed support for workers’ cooperatives, and the 1859 Preface to ‘A Contribution to the Critique of Political Economy’, were both political interventions into the working class movement by the ‘Marx party’, understood as a current of thought in the broader working class movement rather than a separate centralised organisation. The idea that the strong views expressed by Marx in support of cooperatives in the Inaugural Address were a concession to the Owenites and Proudhonists in the International is not credible and requires implausible arguments to dismiss, what are for some, quite uncongenial views. However, as we noted in the previous post, the Address was not the first occasion when Marx expressed support for them, if previously at one remove.

In Volume 11 of Marx and Engels Collected Works the editor has a footnote to two articles nominally written by the English Chartist leader Ernest Jones. In it he says that:

“In 1851 the Chartist weekly Notes to the People published two articles by Ernest Jones, the editor, on co-operation: “A Letter to the Advocates of the Co-operative Principle, and to the Members of Co-operative Societies” (No. 2, May 10, 1851), and “Co-operation. What It Is, and What It Ought to Be” (No. 21, September 20, 1851). They were written at a time when especially close, friendly relations had been established between Marx and Engels on the one hand and Ernest Jones, the Left-wing Chartist leader on the other.”

“Marx and Engels constantly helped Jones in his fight for the revival of Chartism on a socialist basis, in his propaganda campaign and his work as publisher and editor of the Chartist papers . . . . On November 4, 1864 Marx wrote to Engels the following: “I happened to come across several numbers of E.Jones Notes to the People (1851, 1852) which, as far as economic articles are concerned, had been written in the main points under my direction and in part even with my close participation. Well! What do I find there? That then we conducted the same polemic—only in a better way—against the co-operative movement, since in its present narrow-minded form it claimed to be the latest word, as ten to twelve years later Lassalle conducted in Germany against Schulze-Delitzsch.”

The editor declares that the articles by Jones and the replies by a Christian socialist “show clearly the difference between the viewpoints of the Christian socialist and the proletarian revolutionary. The former saw the aim of the co-operative movement in distracting the workers from the class struggle and called for the collaboration of hostile classes and the reconciliation of their interests.”

“Jones, supported by Marx, emphasised that from the viewpoint of the workers’ liberation struggle peaceful co-operation had no prospect and that under capitalism workers’ co-operative societies could not exist for long; they would not withstand competition on the part of big capital and would go bankrupt, or else they would turn into purely capitalist enterprises deriving profit from exploiting workers. The decisive condition, Jones said, for the workers’ co-operative societies to be really of use to the working class was that the latter win political power in order to reorganise the existing system in the interest of the working people.”

“Of Jones’ many articles on co-operation the two mentioned at the beginning of this note are included in this volume because they most vividly reflect the influence of Marx’s views on Jones and show clearly that Marx in fact took part in writing them.” (Collected Works Volume 11) p. 57

The spin by the editor would leave the impression that Marx, through Jones, was an opponent of workers’ cooperatives and that their existence was merely a prelude to the conquering of political power. Their character, as described by Marx in the Inaugural Address to the First International, demonstrates a quite different view of their significance and prompts a wholly different reading of the articles.

Far from seeking to minimise their significance Jones argues, as does Marx in the Address, that they should be expanded. As to the overall approach to their contemporary advocates Jones says that he writes as “the real friend of co-operation” and that:

“I am not the enemy of co-operation, but its friend—its true friend—I do not oppose co-operation, but wish to rescue it from that course, in which it is digging its own grave.”

He notes that the objectives of cooperation are to “destroy profitmongering. . . put an end to competition and . . . to counteract the centralisation of wealth” but that in its present form it fails in all of these:

In the second article he states that

“Therefore, the present plan is not true co-operation; it is essentially hostile to the spread of associated labour; instead of ending profitmongering, it renews it; instead of abolishing competition, it recreates it; instead of abrogating monopoly, it re-establishes it, and is the death-blow to the hopes of labour’s emancipation.”

In the first he argues that “. . . the co-operative system, as at present practised, carries within it the germs of dissolution, would inflict a renewed evil on the masses of the people, and is essentially destructive of the real principles of co-operation. Instead of abrogating profitmongering, it re-creates it. Instead of counteracting competition, it re-establishes it. Instead of preventing centralisation, it renews it—merely transferring the rôle from one set of actors to another.”

“Let us reflect, what are the great canal-companies, joint-stock companies, banking companies, railway companies, trading companies—what are they but co-operative associations in the hands of the rich?”

But, he states, “here again I admit that co-operation on a sound basis is salutary, and may be a powerful adjunct towards both social and political emancipation.”

“Then what is the only salutary basis for co-operative industry? A national one. All co-operation should be founded, not on isolated efforts, absorbing, if successful, vast riches to themselves, but on a national union which should distribute the national wealth. To make these associations secure and beneficial, you must make it their interest to assist each other, instead of competing with each other—you must give them unity of action, and identity of interest.”

Jones ends the first article by saying that “I have given the difficulties in the way of the co-operative movement—not with a view to discouragement—but that by seeing the dangers, we may learn how to avoid them.”

In the second article he explains a bit more what is meant by this:

“People imagine if a few individuals co-operate together to start a trading concern and make as much money as they can, that this means co-operation in the real sense of emancipated and associated labour.

Nothing of the sort! If that were so, every railway, banking, or shipping company would realise the true principles of co-operation.

By co-operation, a very inadequate word, by the way, we mean the abolition of profitmongering and wages-slavery, by the development of independent and associated labour. But this can be established only on the basis of the following principle already laid down in this article.’

No man has a right to take more from society, than the value of that which he confers upon it.”

In the first article the watchword is “Nationalise Co-operation”; not in the sense of seeking state ownership, but the extension of cooperatives to national dimensions through seeking their growth and development, not through competition with each other but through cooperation. The further development of economic relations today requires that the corresponding demand would be to call for the extension of cooperation on the international level.

“This is co-operation. It is co-operation, because it establishes a community of interest—the success of each “branch” furthers the success of every other, and of the whole collectively. There can be no conflicting interests—no rivalry—no competition—for the greater the success of each undertaking, the more the stability and permanency of the whole is ensured”

The argument by Jones, and through him by Marx, is not that the conquest of political power is not vital but that cooperation would strengthen the unity and power of the working class and make it better able to resist the attacks of the capitalist class by the state. It does not reduce the importance of the conquest of political power but illustrates the necessity for it to protect and advance the cooperative power of the associated producers, the working class.

Many of today’s Marxists understand none of these points, but on the contrary, routinely argue that the state that is the enemy of the growing power of the working class should be hailed as its benefactor, so that instead workers ownership should be discarded for the objective of state ownership! Such is the degeneration of political understanding of much of today’s Marxist movement.

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Marx and the “victory of the political economy of labour”

Posted on July 27, 2021 by irishmarxism

Meeting to mark the 200th birth anniversary of Karl Marx

Karl Marx’s alternative to capitalism part 41

Nothing illustrates the difference between Marx’s view of how the capitalist system could be superseded and replaced by a society under the rule of the working class, and the view of most modern ‘Marxists’, than the role of workers’ cooperatives in their respective social and political programmes.

For Marx, they provide the material conditions upon which workers themselves become the agents of socialisation of production and agents of political change. The revolution that achieves working class emancipation is not just political but social, one in which the relations of production are fundamentally transformed and in which the fetters on the forces of production are broken. Since all this does not arise ex nihilo on the morrow of the revolution, from where else does it arise?

Marx is often criticised for not providing a blueprint of ‘what socialism would look like’ or ‘how it would work’, but for him the answer to these questions arises already within capitalism, in fact through its development its beginnings appear before our very eyes. There is no point in speculating on what is not there or on future general arrangements beyond what is already developing.

‘We do not anticipate the world with our dogmas but instead attempt to discover the new world through the critique of the old . . . This does not mean that we shall confront the world with new doctrinaire principles and proclaim: Here is the truth, on your knees before it! It means that we shall develop for the world’s new principles from the existing principles of the world. We shall not say: Abandon your struggles, they are mere folly; let us provide you with true campaign-slogans. Instead, we shall simply show the world why it is struggling, and consciousness of this is a thing it must acquire whether it wishes or not.’ (Marx to Ruge)

So the alternative already grows within capitalism and the working class must become conscious of it:

‘They ought to understand that, with all the miseries it imposes upon them, the present system simultaneously engenders the material conditions and the social forms necessary for an economical reconstruction of society. Instead of the conservative motto: “A fair day’s wage for a fair day’s work!” they ought to inscribe on their banner the revolutionary watchword: “Abolition of the wages system!’ (Marx, Value, Price and Profit)

“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”

“After the failure of the Revolution of 1848, all party organizations and party journals of the working classes were, on the Continent, crushed by the iron hand of force. . . All the efforts made at keeping up, of remodelling, the Chartist movement failed signally; the press organs of the working class died one by one of the apathy of the masses, and in point of fact never before seemed the English working class so thoroughly reconciled to a state of political nullity. If, then, there had been no solidarity of action between the British and the continental working classes, there was, at all events, a solidarity of defeat.”

“And yet the period passed since the Revolutions of 1848 has not been without its compensating features. We shall here only point to two great factors”.

“After a 30 years’ struggle, fought with almost admirable perseverance, the English working classes, improving a momentaneous split between the landlords and money lords, succeeded in carrying the Ten Hours’ Bill . . . This struggle about the legal restriction of the hours of labour raged the more fiercely since, apart from frightened avarice, it told indeed upon the great contest between the blind rule of the supply and demand laws which form the political economy of the middle class, and social production controlled by social foresight, which forms the political economy of the working class. Hence the Ten Hours’ Bill was not only a great practical success; it was the victory of a principle; it was the first time that in broad daylight the political economy of the middle class succumbed to the political economy of the working class.”

“But there was in store a still greater victory of the political economy of labour over the political economy of property. We speak of the co-operative movement, especially the co-operative factories raised by the unassisted efforts of a few bold “hands”. The value of these great social experiments cannot be overrated. By deed instead of by argument, they have shown that production on a large scale, and in accord with the behests of modern science, may be carried on without the existence of a class of masters employing a class of hands; that to bear fruit, the means of labour need not be monopolized as a means of dominion over, and of extortion against, the labouring man himself; and that, like slave labour, like serf labour, hired labour is but a transitory and inferior form, destined to disappear before associated labour plying its toil with a willing hand, a ready mind, and a joyous heart. In England, the seeds of the co-operative system were sown by Robert Owen; the workingmen’s experiments tried on the Continent were, in fact, the practical upshot of the theories, not invented, but loudly proclaimed, in 1848.”

“At the same time the experience of the period from 1848 to 1864 has proved beyond doubt that, however, excellent in principle and however useful in practice, co-operative labour, if kept within the narrow circle of the casual efforts of private workmen, will never be able to arrest the growth in geometrical progression of monopoly, to free the masses, nor even to perceptibly lighten the burden of their miseries. . . To save the industrious masses, co-operative labour ought to be developed to national dimensions, and, consequently, to be fostered by national means.”

“Yet the lords of the land and the lords of capital will always use their political privileges for the defence and perpetuation of their economic monopolies. So far from promoting, they will continue to lay every possible impediment in the way of the emancipation of labour . . . . To conquer political power has, therefore, become the great duty of the working classes. They seem to have comprehended this, for in England, Germany, Italy, and France, there have taken place simultaneous revivals, and simultaneous efforts are being made at the political organization of the workingmen’s party.” (Marx, Inaugural Address of the International Workingmen’s Association)

Thus, Marx’s support for workers’ cooperatives is best known for its inclusion in the political foundations of the First International, but this was not the first or only occasion in which he expressed such views, which serves to rebut the idea that his support was somehow forced upon him as a concession to the other disparate forces within the International. And what again is sometimes held up as a disadvantage — that he could not set out his ideas without constraint and in full scientific explanation — is also of some advantage, in that he had to speak to workers in a language that they would most easily understand.

The Inaugural Address to the First International has therefore been partially dismissed on similar grounds to those by which the 1859 Preface to ‘A Contribution to the Critique of Political Economy’ has been heavily criticised. Such criticism must be rejected for very much the same reasons as we have set out before.

The Preface of 1859 was part of a book that was seen as a publication of the ‘Marx party’, understood as a current of thought, as a broad political movement, and as a political statement:

Writing to Lassalle on 12 November 1858 he wrote that:

“I have a twofold motive for not allowing this work to be spoiled on medical grounds:

1. It is the product of 15 years of research, i.e. the best years of my life.

2. In it an important view of social relations is scientifically expounded for the first time.

Hence I owe it to the Party that the thing shouldn’t be disfigured by the kind of heavy, wooden style proper to a disordered liver.”

Writing a few months later to Weydemeyer he stated that “I hope to win a scientific victory for our party.”

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