How the Left Saved Capitalism

by Gregory W Esteven

http://mrzine.monthlyreview.org/esteven200708.html 

Monthly Review (July 20 2008)


There is an entire genre of theory explaining why the Western capitalist
democracies did not undergo socialist revolution in the 20th Century, as
Classical Marxism had predicted.  Not surprisingly, most of this
material comes from the Left itself {1}. We can include Antonio
Gramsci's work on hegemony in this genre, as well as the entire output
of the Frankfurt School and other psychoanalytically-inclined Marxist
theorists (Althusser comes to mind).  Taken together, this work
contributes greatly to our understanding of the complex dynamics of
political and social change, reminding us to avoid over-simplifications
and belief in quick fixes of all varieties.  I do not want to diminish
these contributions in any way and am not challenging them here.


But at the same time I am suspicious of placing too much emphasis on the
Left's failures in order to account for the ongoing state of affairs.
To supplement the theories I've already mentioned, I would like to
propose a subversive reading of the conventional narrative.  Couldn't we
also say that the successes of the organized Left (modest though they
were) actually helped to preserve capitalism, saving it from runaway
contradictions, and therefore temporarily reducing the need for revolution?


At first this may seem counterintuitive, but not when we take into
account a key feature of capitalism that distinguishes it from previous
modes of production - namely its need for instability.  In the Communist
Manifesto, Marx and Engels assert that:


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


I think that old saying, "Sometimes your greatest strength is also your
greatest weakness", applies here.  Capitalism sustains itself through
its contradictions (e.g. the preponderance of the small owning class
over the vast working class, the social nature of wealth generation
contrasted with the private nature of accumulation), but these same
contradictions always threaten the integrity of the system itself.  We
know that the capitalist class benefits, for instance, from maintaining
high profits and low wages, as well as from divisions in society, such
as those of gender, race, ethnicity, and sexual orientation.  But if
workers become too impoverished, or sexism, racism, and homophobia
become too pronounced, the system becomes destabilized to a dangerous
degree; explosion, or rather implosion, is a real possibility.  If wages
drop so low that workers give up shopping, this starts to cut into
profits.  And although it is in the interests of the capitalist class to
keep workers divided on the basis of race, they don't want crazy racist
militias roving the streets murdering minorities.  We have a delicate
balancing act here.  Capitalism can't afford for the pendulum to swing
too far in either direction (towards stability or instability).


Marx and Engels were writing when capitalist relations of production
were at their most inhuman.  Workers in most industrialized and
industrializing countries weren't even afforded the bare minimum of
workers' rights which at least some of us enjoy today, such as the right
to organize, limits on the length of the work day, and bans on child
labor.  Observing these conditions, along with growing concentrations of
wealth, it's no wonder that Marxism's early proponents believed that
revolution was inevitable.


Something strange happened, however.  The rise of labor unions and
radical political organizing in the late 19th and early 20th centuries,
though they faced intense, and often violent, opposition from the ruling
classes, resulted in increasing positive gains for workers.  The
grossest contradictions of capitalist relations were reduced, precisely
because the working class was winning important battles.  In many
countries workers won better wages, a shortened work day, and safety
regulations at the workplace.  And with the birth of the welfare state
in Western Europe and the New Deal in the United States, a new
"capitalism with a human face" seemed to be on the horizon.


Let's be clear.  The level of prosperity and freedom which existed in
the West, from roughly the early 1950s to the beginning of deep reaction
in the 1980s, was unprecedented in world history.  There were a number
of reasons for this, and one of them was that the past and continuing
successes of the Left were ensuring that workers were getting a fairer
share of the pie, thus providing economic stability and less intense
contradictions.  More of the wealth was going to more of the people than
ever before.  (Not to mention the fact that the Left and progressive
movements were working hard to reduce other contradictions, such as
sexism and racism.)


It's probably hard for young people nowadays to imagine, but my
grandfather - after fighting in Japan in World War Two - worked for one
company from the early 1950's to the early 1990's: United Gas.  Until
the 1970s, he and his family lived in houses provided by the company,
which paid the utility bills and offered many opportunities for job
advancement and higher pay.  With the money they saved over the years
they were able to move up to the middle class, buy land and their own
home, without going into debt to do it.  They had a great health plan at
low cost.  And when my grandfather retired, his pension was more than
enough to cover living expenses.  He often remarked that although he
never belonged to a union, he knew that he only enjoyed these kinds of
wages and benefits because other workers did belong to unions.  Now, his
company was perhaps more kindly and paternalistic than most, but it does
illustrate the more humane capitalism which existed in that period. {2}


Capitalism is an incredibly dynamic and adaptable system, since, as we
have seen, it was able to adopt "socialistic" reforms in order to
ameliorate the conditions of workers and avoid crisis and revolutionary
upsurges in the core nations.  But the question for us today is whether
this (broadly-defined) Keynesian logic of amelioration has run its
course, reaching its limits with the advent of the global economy, which
is qualitatively distinct from the international trade of yesteryear.
In other words, was the great wave of reaction, the end of capitalism
with a human face, simply brought about by the initiative of certain
interests represented by Thatcher in Britain and Reagan in the United
States, or has a more fundamental, structural change taken place in the
world system?  The possibility I hint at is that the more humane version
of capitalism is irreconcilable with globalization, as the former was
associated with more autonomous national economies which could offer
greater protections to workers, shielding them from blows from foreign
markets.


We all know what the picture looks like today.  A global division of
labor has emerged, with manufacturing jobs moving to the peripheral and
semi-peripheral nations, and the core nations transitioning to
"postindustrial" economies, dominated by information and service
industries.  Whatever is left of the welfare state is being dismantled.
Workers are watching the hard-won gains of the past disappear.
Multinational corporations set the policy agenda and workers in one part
of the world are pitted against workers in other parts of the world
(e.g. the euphemistically called "outsourcing").  In the year 2000, the
richest one percent of the world's adults owned forty percent of global
assets.


While some say that Marx is irrelevant today, I maintain that the time
of Marxism has just arrived.  Isn't it in today's global economy that
Marx has been vindicated?  The concentration of wealth in the hands of
the few, and the concomitant immiseration of the vast majority of the
world's population, have occurred on a scale that makes Marx's
predictions seem utterly conservative.  A more intense contradiction of
profit-driven environmental degradation than he could have foreseen
further supports the core of his theories.


And isn't it really in today's era of globalization that the old Leftist
dream of internationalism becomes conceivable, practically, and
necessary, strategically?  I've long thought that the Industrial Workers
of the World's objective of organizing skilled and unskilled labor
together, across national boundaries, was ahead of its time.  Far from
being relics of a bygone era, the work they are doing now is cutting
edge.  They have a better understanding of the present conjuncture than
many mainstream unions, which have been slow to adapt to the realities
of the postindustrial economy.  The IWW has worked to organize such
service industry employees as Starbucks coffee shop workers; there are
more of these kinds of jobs in the US than traditional manufacturing
jobs today.  My perverse Leftist imagination can't help but envision
workers at both ends of the chain (the people who pick the beans and the
people who serve the coffee) organized into the same transnational
union.  But that may be a ways down the road.


Whatever the case with the IWW, Marx is definitely having his revenge,
and it is not at all clear whether capitalism can continue to be
reformed, in any significant way, as it was in the past.  What comes
next we cannot be sure, but it seems that the time to revive the
socialist project has arrived, and it must be one adapted to the needs
of the 21st century.


Notes:


1  This has led Slavoj ÅiÅek to suspect - perhaps with some
justification - that the Left has long settled into a comfortable,
moralistic posture, relishing defeat with the masochistic rapture that
we project onto Christian martyrs of old.


2  Of course, this increased sharing of the wealth with workers in the
Western democracies was predicated upon the fact that those countries
had largely built their fortunes through colonialism in the past and
from the ongoing super-exploitation of workers in the world's periphery
and semi-periphery.  We can't forget this aspect of the picture.  The
kinder, gentler capitalism wasn't being experienced by all the world's
peoples.


_____


Gregory W Esteven is a sociologist working as a research assistant at
the Southeastern Social Science Research Center at Southeastern
Louisiana University.  He also serves on the advisory board of the Land
Trust for Southeast Louisiana and is a frequent contributor to Political
Affairs Magazine, a publication of the CPUSA.


http://mrzine.monthlyreview.org/esteven200708.html 





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