The Real Movement

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Tag: fascist state economic policy

Response to the critics of the term “fascist state”

I have received a large amount of criticism from Marxists regarding my insistence that the present state is fully fascist in every sense of the term. The most recent comes in the form of criticism that I am somehow being dishonest in my employment of the term fascist state and designation of Keynesian economic policies as essentially fascist:

People need to stop villainising Keynes. There’s an entire branch of economics that merges Keynes with Marx. The workers were hardly the most screwed by Keynesian policy: the petite bourgeoisie, with their vast savings, were far worse off (relative to what they had been before). Post-war Europe was one of the better times to be a worker in capitalism, far better than modern neoclassical neoliberalism.

Also, stop calling modern governments “fascist”. It’s just intellectually dishonest.

presidents1The resistance of the Left to the term fascism is understandable for reason I will show. However, I insist my use of the term fully conforms with historical materialism, no matter how grating it may be for “progressives” and other Leftists. I base my assessment of the present state wholly on the argument made by Marx and Engels throughout their entire careers. In particular, I base it on the explicit argument made by Engels in Socialism, Utopian and Scientific. I offer my take in hope it will spark a discussion on the subject of the nature of the present state and the impossibility the state can in any way serve as a path to communism.

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Simpleton economists and the “puzzle of secular stagnation”

748Ryan Avent wants us to think economics is too complicated to be understood by anyone but simpletons — our economic troubles are all just too complicated:

“Economic puzzles have been in no short supply in recent decades. New ones keep appearing without waiting for old ones to be solved. The productivity puzzle that began in the 1970s persists, thanks to the apparent fizzle in productivity growth since the internet boomlet of 1996-2004—and despite what looks to many like an ongoing acceleration in technological discovery. The British economy has developed its own acute version of the productivity puzzle; over the course of the financial crisis and recovery productivity collapsed, shielding the economy from labour-market carnage. There are puzzles of wage stagnation and falling labour-force participation. There are savings glut puzzles and secular stagnation puzzles. The common thread linking the puzzles is that they almost always mean trouble of one sort or another.”

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What does it take to beat capitalism when the deck is stacked against us

cardsOn Monday, I showed both the workers and the capitalists view economic choices through the lens of capitalist relations of production. The fact that both classes view the crisis of capitalism through the same filter means the both accept the same false choices in the crisis. It is not true in the least that the working class is brainwashed by the capitalists to act against their own interests. Rather, because both classes see the crisis from their respective positions within capitalist relations of production, they arrive at the same general conclusions.

Those conclusions are consistent with capitalist relations and, therefore, imply a definite outcome: labor exists only to fatten profits.

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“How Capitalism Works” (through the eyes of the working class)

trickledownYesterday, I showed why the inflation\deflation debate is concerned with the consumption of labor power and the debt of capitalist firms. Deflation carries a risk firms will not increase their employment and may go bankrupt because falling prices put pressure on profits.

My post led to the following response on reddit’s Socialism page:

“Too tired to read article but debt becomes worse with deflation because in real terms it is worth more (the corollary is that you can inflate debt away, since the debt which is constant becomes less in real terms after inflation. [Krugman] wrote a good op ed about that on April 4th, called oligarchs and money if memory serves). Aside from that this article seems a little wacky”

So does Krugman’s recent post to his New York Times blog contradict my argument? Well, let’s see:

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The False Choices of Bourgeois Economic Policy

It isn’t until I read this whole state debate thingy that I even realized the critical role inflation plays in the process. If Yaffe and Bullock are correct, profit is not possible unless there is inflation. Which is why there is such fear of deflation. I phillipskurvekind of knew this in theory already, but it only now makes sense to me that the inflation/deflation debate is not a side-show, but goes to the heart of capitalist relations of production. Without inflation, commodities cannot sell above their prices of production and without selling above their prices of production surplus value cannot be realized.

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Yaffe and Bullock on the ‘Contradictory’ Role of the State

Yaffe and Bullock’s paper sought to explain why 1970s stagflation could only be explained by the conditions of capitalist production:

“The crisis has to be located at the level of capitalist production. To show how the central tendency of the rate of profit to fall can express itself as inflation and eventually stagflation (stagnation and inflation), we need to examine how the capitalist experiences this tendency and attempts to maintain profitability by increasing prices. We then have to consider how these prices set by the individual capitalist can be realised – that is how commodities can be sold – exchanged for money – at these prices.”

2qixqxfHowever, in an attempt to refute the theory that inflation was caused by rising wages, they ignored the implications of their argument for the general state of the capitalist mode of production itself. When Yaffe and Bullock wrote the paper, they wanted to show how inflation was caused by the mode of production and attempts to maintain profitability in the face of chronic overproduction. Unfortunately their aim in the paper never actually directly addressed the implications of stagflation for the mode of production itself.

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The Falling Rate of Profit, Class Struggle and the State

inflationAfter coming across David Yaffe while reading Simon Clarke’s book, The State Debate, I figured I would give a paper he wrote with Paul Bullock, “Inflation, the Crisis and the Post-War Boom”, a once over. This paper, written in 1975, attempts to understand the depression of the 1970s through the lens of labor theory. I find it interesting because the authors make this rather bold, and in retrospect, horribly mistaken pronouncement:

“No nation’s currency can displace money of the world, gold, as the final means of international payments.”

The weirdest thing about this Yaffe and Bullock paper, however, is that it already has the explanation for the 40 years persistence of the dollar as “world money” and why, consequently, the writers were wrong:

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Platypus Question No. 10: The utopian character of “the politics of work”

In their final question, Platypus asks what effect the decline of the workers’ movement over past century has had on attempts to come to grips with the politics of work, overwork and unemployment.

“10. A century ago, these questions were consciously taken up by a politically constituted workers movement in which socialists and Marxists participated. Today, discussions of this topic risk becoming utopian in the a-political sense. How, if at all, has the decline of workers movements and the death of the Left circumscribed our ability to engage the politics of work in the present?”

The problem with this question is that it assumes what has to be demonstrated: that a politically constituted workers movement taking up discussions of the politics of work was not itself utopian.

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Platypus Question No. 9: The paradox of Left politics

In question 9, the Platypus group asks about the role of political organization in relation to labor issues.

“9. What role, if any, do you assign to political organization, such as an actual or potential political party, in working to progressively transform contemporary relations of work and unemployment? What should be the relationship between any such organization and the working class?”.

I think it is important to state, following the premises of historical materialism, as outlined by Marx and Engels, that there is no social organization that can give the working class control over work and unemployment. As many writers note, labor itself is premised on the fragmentation of the conditions of labor. This fragmentation cannot be overcome through any political organization nor by the establishment of a working class political party. One of the most important defects of the Left’s approach to labor and to overwork and unemployment is the idea these can be addressed by political measures and political organization.

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Platypus Question No. 6: Is there a concrete demand for the immediate abolition of wage labor?

In question 6, Platypus asks if there is a concrete political demand for the immediate abolition of wage labor:

“If the abolition of wage labor should indeed be a goal of emancipatory politics, what forms of politics or concrete demands should be pursued to attain this goal? How do we get from ‘here’ to ‘there’?”

The question is somewhat confused: Since the state itself is maintaining and enforcing the conditions for capitalist reproduction by extending hours of labor, a political demand for the abolition of labor is not possible. The problem is further complicated by the fact the Left faces is that it conflates opposition to fascist state economic management with opposition to social progress. To resolve these complications, we need to go back to my definition of overwork and unemployment.

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