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

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

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

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

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

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

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

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

Marx sets out “Three cardinal facts of capitalist production:

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

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

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

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

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

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

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

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

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

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

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

“But, the transformation — either into joint-stock companies and trusts, or into State-ownership — does not do away with the capitalistic nature of the productive forces. In the joint-stock companies and trusts, this is obvious. And the modern State, again, is only the organisation that bourgeois society takes on in order to support the external conditions of the capitalist mode of production against the encroachments as well of the workers as of individual capitalists.”

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

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

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

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

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

Back to part 25

Reflections on the Russian Revolution 6

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Lenin thus reevaluated the role of cooperatives:

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

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

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

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

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

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

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

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

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

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

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

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

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

Back to part 5

Forward to part 7

James Connolly, Socialism and Sinn Fein

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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