---------- Forwarded message ----------
From: Marx Laboratory <[email protected]>
Date: Fri, Feb 1, 2013 at 4:56 PM
Subject: Thoroughly modern Marx Pt.1 of 3
To: Marx Laboratory <[email protected]>


The Real News Network, May 30, 2009

*Interview*
Thoroughly modern Marx Pt.1

*Leo Panitch: Marx was a realist; the real romantics think you can have
capitalism without great crisis*
 *Watch full multipart The Dollar, the Euro and the Deepening
Crisis<http://therealnews.com/t2/index.php?option=com_content&task=view&id=33&Itemid=74&jumival=776>
* Precis

Leo Panitch, Economist and Professor at York University, talks to Paul Jay
about the relevance of Marxist theories in studying today�s global economy.
Panitch discusses the ideological crisis of the free market theory and
notes that at this time �Marx would not be offering policy advice to
governments about what is to be done in the face of this crisis; he would
tell people to overcome their social isolation, form new collective
organizations and identities, and make a social revolution.�
 Bio

*Leo Panitch* is the Canada Research Chair in Comparative Political Economy
and a Distinguished Research Professor of Political Science at York
University in Toronto. Panitch is also the author of "Global Capitalism and
American Empire" and his most recent release "American Empire and the
Political Economy of International Finance". In addition to his university
affiliation he is also a co-editor of the Socialist Register the latest
volume of which is *The Crisis This Time*
 Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network, coming to
you today from our studio in Toronto. There is a magazine in the United
States�you can see it here, and see up here "FP"�and it features an article
which more or less asks the question: is Karl Marx relevant today? Well, FP
does not stand for "fomenting the proletariat." It's a magazine called
Foreign Policy, and the article that mostly deals with this is�you can see
here, is a piece called "Fairly Modern Marx," and it's written by our guest
today, Leo Panitch. Thanks for joining us, Leo.
LEO PANITCH, ECONOMIST AND PROFESSOR, YORK UNIVERSITY: Hi, Paul. JAY:
PANITCH: Leo is professor of political economy, political science at York
University, also author of the book Renewing Socialism. So, Leo, is Marx
relevant today? Now, just so�I'm going to show you this again, 'cause it's
kind of a cute cover, I suppose. But what you see here, "Is Marx Relevant?"
And what they have here is a bunch of bread all around Marx's face. The
nose is a potato. The eyes are megaphones of some sort, which I suppose
means propaganda. A hammer and a sickle. So I guess, Leo, we're to take
from this as Marx is equivalent to we will all be equal 'cause we'll all
eat bread and potatoes. PANITCH: Well, no. I'm not sure that the cover,
which is very arresting but somewhat bizarre, really gets at what they were
looking for by way of the article. They, in tracking me down to do it,
which they did via my publisher in London, having heard that the editor of
The Socialist Register presumably knows something about Marx. They thought
that Marx needed to be taken seriously as an analyst of the crisis. It
wasn't so much about, you know, what would socialism be; it was much more
Marxism or Marx's Das Kapital they imagined gave us the basic clues for
understanding the current crisis. JAY: So what does that tell us, first of
all, about American culture and our American intelligentsia that probably,
arguably, neck-and-neck with the Bible, the works of Marx are probably the
most read works in history, and certainly to do with political economy,
clearly are the most read works in the history of humanity. What does it
tell us that it's such a big deal that you've got to ask this
question? PANITCH:
Well, it's very interesting. I think it does reflect the ideological crisis
of neoliberalism, of free-market ideology, of Hayek and Friedman and so on.
I think it was already taking a very, very big beating. JAY: It reminds me
of that moment when Alan Greenspan, testifying in front of Congress, has to
say, well, oh, there was a hole in our theory. PANITCH: Exactly. I never
imagined that these banks would not take care of their own bottom line, you
know, that we might have to look after it for them. Yeah, no. And so, yes,
the Ayn Rand ideology that Greenspan founds his thinking on, it has been
taking a big hit. It was taking a hit before the crisis, because it was so
clear that neoliberal globalization was not developing large parts of the
world, and that even in the parts of the world it was developing, a hell of
a lot of people were suffering. And that gave rise to the
anti-globalization movement. And already you could see before the crisis at
meetings like Davos, they were responding in a way that were trying to get
social justice issues discussed at these meetings of the world elite. But
with this crisis, it's really taken a hit. I mean the gloss is off. So this
also then immediately produces: Well, what analysts are there of why this
thing was full of contradiction? And what's so interesting is that Marx has
been so fashionable not only in the media, etcetera, but in universities.
And, you know, postmodernism and poststructuralism, which are primary
literary theories, have no interest in the economy. So, you know,
neoclassical economics, the voodoo that's taught about supply and demand
and price theory in our economics departments is appalling stuff. And then
what's taught in the sociology department these days is culturalism that
ignores capitalism. Where do they turn to? Some of them turn to Keynes and
Schumpeter. But, you know, if you're really going to find something
exciting in a popular magazine, it's not going to be Schumpeter; it's going
to be Marx. And they're turning to it. And what's astonishing is�what I
wrote I thought they'd never publish. You know, I said Mark should not be
offering policy advice to governments about what is to be done in the face
of this crisis; he would tell people to overcome their social isolation,
form new collective organizations and identities, and make a social
revolution. They went gaga over it and put it on the front cover, to my
amazement. JAY: Now, in your article, you talk about the issue of the
derivatives and the financial speculation and the crisis that resulted
therefrom. But you also talk about some of the basic things that Marx talks
about, which has to do with the impoverishment of working people and the
reliance on credit and all of this issue, which is not something that
people seem to want to discuss very much. Everyone wants to focus on the
financial shenanigans, and nobody wants to talk about some of the basic
contradictions within the economy. PANITCH: Yeah. And they assume that what
Marx was famous for was talking about financial speculation in the 19th
century, and therefore that he was, you know, foreseeing Bear Stearns and
Lehman Brothers and so on. And I had two insist, against some of their
editing, that they leave in phrases like "commodity production" and "the
contradictions of accumulation", "the falling rate of profit", you know,
those things that go on in the sphere of production that aren't just about
banks and financial speculation. And, yes, I think it's their perception,
which can be corrected�and they did run the piece�needs to be in a Marxian
sense clarified so that�. JAY: But one of the points you make in the
article is that the real romantics, the real utopians, are the
reformers�and to some extent, I think I guess you'd think the Obama
camp�who think you can have capitalism without these profound crises if
only you had better technocratic management. PANITCH: Exactly. They're the
real utopians. Marx was a much greater realist. You cannot take crisis out
of the system. And, yes, that does have to do with with, as you said, the
social relations that produce exploitation, the nature of commodity
production and market production, which is so unplanned. There is no hidden
hand that guides the market. JAY: And the Obama administration, of course
the Canadian administration, but Obama in particular because they have had
some rhetoric in other ways, are so wedded to this free-market model that
even when it comes to something like climate change, it's only this
cap-and-trade, free-market solution. PANITCH: Which depends on derivatives.
JAY: So, in the next segment of our interview, we're going to talk about:
Is Marx relevant to some very specific issues? So we're going to deal with
climate change, and then we're going to do a segment on health care, we're
going to do a segment on banking, and we're going to do a segment on
something else, and I can't remember what it was, but by the time we get
there, we'll know. So please join us for the next segment of our interview
Leo Panitch.



-- 

You cannot build anything on the foundations of caste. You cannot build up
a nation, you cannot build up a morality. Anything that you will build on
the foundations of caste will crack and will never be a whole.
-AMBEDKAR



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