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The Ideas of Karl Marx - Part
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Written by Alan WoodsFriday, 21 June 2013
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The ideas of Marx have never been more relevant than they are today and are
reflected in the thirst for Marxist theory at the present time. In this
three part article, Alan Woods will deal with the main ideas of Karl Marx
and their relevance to the crisis we're passing through today.

[This article was written for the 4th Issue of the *In Defence of
Marxism*magazine
which was a special edition to mark the 130th anniversary of the death of
Karl Marx in 1883. ]

[image: Marx and
Engels]<http://www.marxist.com/images/stories/marx-engels.jpg>It
is 130 years since the death of Karl Marx. But why should we commemorate a
man who died in 1883? In the early 1960s the then Labour Prime Minister
Harold Wilson declared that we must not look for solutions in Highgate
cemetery. And who can disagree with that? In the aforementioned cemetery
one can only find old bones and dust and a rather ugly stone monument.

However, when we speak of the relevance of Karl Marx today we refer not to
cemeteries but to ideas—ideas that have withstood the test of time and have
now emerged triumphant, as even some of the enemies of Marxism have been
reluctantly forced to accept. The economic collapse of 2008 showed who was
outdated, and it was certainly not Karl Marx.

For decades the economists never tired of repeating that Marx’s predictions
of an economic downturn were totally outdated. They were supposed to be
ideas of the 19th century, and those who defended them were dismissed as
hopeless dogmatists. But it now turns out that it is the ideas of the
defenders of capitalism that must be consigned to the rubbish bin of
history, while Marx has been completely vindicated.

Not so long ago, Gordon Brown confidently proclaimed “the end of boom and
bust”. After the crash of 2008 he was forced to eat his words. The crisis
of the euro shows that the bourgeoisie has no idea how to solve the
problems of Greece, Spain and Italy which in turn threaten the future of
the European common currency and even the EU itself. This can easily be the
catalyst for a new collapse on a world scale, which will be even deeper
than the crisis of 2008.

Even some bourgeois economists are being forced to accept what is becoming
increasingly evident: that capitalism contains within itself the seeds of
its own destruction; that it is an anarchic and chaotic system
characterised by periodic crises that throw people out of work and cause
social and political instability.

The thing about the present crisis was that it was not supposed to happen.
Until recently most of the bourgeois economists believed that the market,
if left to itself, was capable of solving all the problems, magically
balancing out supply and demand (the “efficient market hypothesis”) so that
there could never be a repetition of the crash of 1929 and the Great
Depression.

Marx’s prediction of a crisis of overproduction had been consigned to the
dustbin of history. Those who still adhered to Marx’s view that the
capitalist system was riven with insoluble contradictions and contained
within itself the seeds of its own destruction were looked upon as mere
cranks. Had the fall of the Soviet Union not finally demonstrated the
failure of communism? Had history not finally ended with the triumph of
capitalism as the only possible socio-economic system?

But in the space of 20 years (not a long period in the annals of human
society) the wheel of history has turned 180 degrees. Now the erstwhile
critics of Marx and Marxism are singing a very different tune. All of a
sudden, the economic theories of Karl Marx are being taken very seriously
indeed. A growing number of economists are poring over the pages of Marx’s
writings, hoping to find an explanation for what has gone wrong.
Second Thoughts

In July 2009, after the start of the recession *The Economist* held a
seminar in London to discuss the question: What is wrong with Economics?
This revealed that for a growing number of economists mainstream theory has
no relevance. Nobel Prize winner, Paul Krugman made an astonishing
admission. He said “the last 30 years development in macroeconomic theory
has, at best, been spectacularly useless or, at worst, directly harmful.”
This judgement is a fitting epitaph for the theories of bourgeois
economics.

Now that events have knocked just a little sense into the heads of at least
some bourgeois thinkers, we are seeing all kinds of articles that
grudgingly recognise that Marx was right after all. Even the Vatican’s
official newspaper,*L’Osservatore Romano*, published an article in 2009
praising Marx’s diagnosis of income inequality, which is quite an
endorsement for the man who declared religion to be the opium of the
people. *Das Kapital* is now a best seller in Germany. In Japan it has been
published in a manga version.

George Magnus, a senior economic analyst at UBS bank, wrote an article with
the intriguing title: “Give Karl Marx a Chance to Save the World Economy”.
Switzerland-based UBS is a pillar of the financial establishment, with
offices in more than 50 countries and over $2 trillion in assets. Yet in an
essay for Bloomberg View, Magnus wrote that “today’s global economy bears
some uncanny resemblances to what Marx foresaw.”

In his article he starts by describing policy makers “struggling to
understand the barrage of financial panics, protests and other ills
afflicting the world” and suggests that they would do well to study the
works of “a long-dead economist, Karl Marx.”

“Consider, for example, Marx’s prediction of how the inherent conflict
between capital and labor would manifest itself. As he wrote in *Das Kapital
*, companies’ pursuit of profits and productivity would naturally lead them
to need fewer and fewer workers, creating an ‘industrial reserve army’ of
the poor and unemployed: ‘Accumulation of wealth at one pole is, therefore,
at the same time accumulation of misery’.”

He continues:

“The process he [Marx] describes is visible throughout the developed world,
particularly in the U.S. Companies’ efforts to cut costs and avoid hiring
have boosted U.S. corporate profits as a share of total economic output to
the highest level in more than six decades, while the unemployment rate
stands at 9.1 percent and real wages are stagnant.

“U.S. income inequality, meanwhile, is by some measures close to its
highest level since the 1920s. Before 2008, the income disparity was
obscured by factors such as easy credit, which allowed poor households to
enjoy a more affluent lifestyle. Now the problem is coming home to roost.”

*The Wall Street Journal* carried an interview with the well-known
economist Dr. Nouriel Roubini, known to his fellow economists as “Dr. Doom”
because of his prediction of the 2008 financial crisis. There is a video of
this extraordinary interview, which deserves to be studied carefully
because it shows the thinking of the most far-sighted strategists of
Capital.

Roubini argues that the chain of credit is broken, and that capitalism has
entered into a vicious cycle where excess capacity (overproduction),
falling consumer demand, high levels of debt all breed a lack of confidence
in investors that in turn will be reflected in sharp falls on the stock
exchange, falling asset prices and a collapse in the real economy.

Like all the other economists, Roubini has no real solution to the present
crisis, except more monetary injections from central banks to avoid another
meltdown. But he frankly admitted that monetary policy alone will not be
enough, and business and governments are not helping. Europe and the United
States are implementing austerity programs to try to fix their debt-ridden
economies, when they should be introducing more monetary stimulus, he said.
His conclusions could not be more pessimistic: “Karl Marx got it right, at
some point capitalism can destroy itself,” said Roubini. “*We thought
markets worked. They’re not working.*” (My emphasis, AW)

The phantom of Marxism is still haunting the bourgeoisie a hundred and
thirty years after Marx’s mortal remains were laid to rest. But what is
Marxism? To deal properly with all aspects of Marxism in the space of one
article is an impossible task. We therefore confine ourselves to a general,
and therefore sketchy account in the hope that it will encourage the reader
to study Marx’s writings themselves. After all, nobody has ever expounded
Marx’s ideas better than Marx himself.

Broadly speaking, his ideas can be split into three distinct yet
interconnected parts—what Lenin called the three sources and three
component parts of Marxism. These generally go under the headings of
Marxist economics, dialectical materialism and historical materialism. Each
of these stands in a dialectical relation to each other and cannot be
understood in isolation from one another. A good place to begin is the
founding document of our movement that was written on the eve of the
European Revolutions of 1848. It is one of the greatest and most
influential works in history.
*The Communist Manifesto*

The immense majority of the books written one and a half centuries ago are
today merely of historical interest. But what is most striking about
the*Communist
Manifesto* is the way in which it anticipates the most fundamental
phenomena which occupy our attention on a world scale at the present time.
It is really extraordinary to think that a book written in 1847 can present
a picture of the world of the 21st century so vividly and truthfully. In
point of fact, the *Manifesto* is even truer today than when it first
appeared in 1848.

Let us consider one example. At the time when Marx and Engels were writing,
the world of the big multinational companies was still the music of a very
distant future. Despite this, they explained how free enterprise and
competition would inevitably lead to the concentration of capital and the
monopolisation of the productive forces. It is frankly comical to read the
statements made by the defenders of the  market concerning Marx’s alleged
mistake on this question, when in reality it was precisely one of his most
brilliant and accurate predictions.

During the 1980s it became fashionable to claim that small is beautiful.
This is not the place to enter into a discussion concerning the relative
aesthetics of big, small or medium sizes, about which everyone is entitled
to hold an opinion. But it is an absolutely indisputable fact that the
process of concentration of capital foreseen by Marx has occurred, is
occurring, and indeed has reached unprecedented levels in the course of the
last ten years.

In the United States, where the process may be seen in a particularly clear
form, the Fortune 500 corporations accounted for 73.5 percent of total GDP
output in 2010. If these 500 companies formed an independent country, it
would be the world’s second largest economy, second only to the United
States itself. In 2011, these 500 firms generated an all-time record of
$824.5 billion in profits—a 16 percent jump from 2010. On a world scale,
the 2000 biggest companies now account for $32 trillion in revenues, $2.4
trillion in profits, $138 trillion in assets and $38 trillion in market
value, with profits rising an astonishing 67 percent between 2010 and 2011.

When Marx and Engels wrote the *Manifesto*, there was no empirical evidence
for his claims. On the contrary, the capitalism of his time was based
entirely on small businesses, the free market and competition. Today, the
economy of the entire capitalist world is dominated by a handful of giant
transnational monopolies such as Exxon and Walmart. These behemoths possess
funds that far exceed the national budgets of many states. The predictions
of the*Manifesto* have been realised even more clearly and completely than
Marx himself could ever have dreamed of.

The defenders of capitalism cannot forgive Marx because, at a time when
capitalism was in the stage of youthful vigour, he was able to foresee the
causes of its senile degeneration. For decades they strenuously denied his
prediction of the inevitable process of the concentration of capital and
the displacement of small businesses by big monopolies.

The process of the centralisation and concentration of capital has reached
proportions hitherto undreamed of. The number of take-overs has acquired
the character of an epidemic in all the advanced industrialised nations. In
many cases, such take-overs are intimately connected with all kinds of
shady practices—insider dealing, falsification of share prices, and other
types of fraud, larceny and swindling, as the scandal over the manipulation
of the Libor interest rate by Barclays and other big banks has
revealed.??This concentration of capital does not signify a growth in
production, but quite the contrary. In every case, the intention is not to
invest in new plant and machinery but to close existing factories and
offices and sack large numbers of workers in order to increase profit
margins without increasing production. Just take the recent fusion of two
big Swiss banks, immediately followed by the loss of 13,000 jobs.
Globalisation and Inequality

Let us proceed to the next important prediction made by Marx. Already in
1847, Marx explained that the development of a global market renders
“impossible all narrowness and national individualism. Every country—even
the largest and most powerful—is now totally subordinate to the whole world
economy, which decides the fate of peoples and nations.” This brilliant
theoretical anticipation shows, better than anything else, the immeasurable
superiority of the Marxist method.

Globalisation is generally regarded as a recent phenomenon. Yet the
creation of a single global market under capitalism was long ago predicted
in the pages of the *Manifesto*. The crushing domination of the world
market is now the most decisive fact of our epoch. The enormous
intensification of the international division of labour since the Second
World War has demonstrated the correctness of Marx’s analysis in an almost
laboratory fashion.

Despite this, strenuous efforts have been made to prove that Marx was wrong
when he spoke of the concentration of capital and therefore the process of
polarisation between the classes. These mental gymnastics corresponds to
the dreams of the bourgeoisie to rediscover the lost golden age of free
enterprise. Similarly, a decrepit old man longs in his senility for the
lost days of his youth.

Unfortunately, there is not the slightest chance of capitalism recovering
its youthful vigour. It has long ago entered its final phase: that of
monopoly capitalism. The day of the small business, despite the nostalgia
of the bourgeoisie, has been relegated to the past. In all countries the
big monopolies, closely related to banking and enmeshed with the bourgeois
state, dominate the life of society. The polarisation between the classes
continues uninterrupted, and tends to accelerate.

Let us take the situation in the USA. The richest 400 families in the U.S.
have as much wealth as the bottom 50 percent of the population. The six
individual Wal-Mart heirs alone are “worth” more than the bottom 30 percent
of Americans combined. The poorest 50 percent of Americans own just 2.5
percent of the country’s wealth. The richest one per cent of the US
population increased its share of the national income from 17.6 per cent in
1978 to an astonishing 37.1 per cent in 2011.

During the past 30 years the gap between the incomes of the rich and the
poor has been steadily widening into a yawning abyss. In the industrialised
West the average income of the richest ten per cent of the population is
about nine times that of the poorest ten per cent. That is an enormous
difference. And figures published by the OECD show that the disparity which
began in the US and UK has spread to countries such as Denmark, Germany and
Sweden, which have traditionally had low inequality.

The obscene wealth of the bankers is now a public scandal. But this
phenomenon is not confined to the financial sector. In many cases,
directors of large companies earn 200 times more than their lowest-paid
workers. This excessive difference has already provoked growing resentment,
which is turning to fury that spills over onto the streets in one country
after another. The growing tension is reflected in strikes, general
strikes, demonstrations and riots. It is reflected in elections by protest
votes against governments and all the existing parties, as we saw recently
in the Italian general election.

A *Time* magazine poll showed that 54% have a favourable view of the
#Occupy movement, 79% think the gap between rich and poor has grown too
large, 71% think CEOs of financial institutions should be prosecuted, 68%
think the rich should pay more taxes, only 27% have a favourable view of
the Tea Party movement (33% unfavourable). Of course, it is too early to
speak of a revolution in the USA. But it is clear that the crisis of
capitalism is producing a growing mood of criticism among broad layers of
the population. There is a ferment and a questioning of capitalism that
were not there before.
The Scourge of Unemployment

In the *Communist Manifesto* we read: “And here it becomes evident, that
the bourgeoisie is unfit any longer to be the ruling class in society, and
to impose its conditions of existence upon society as an over-riding law.
It is unfit to rule because it is incompetent to assure an existence to its
slave within his slavery, because it cannot help letting him sink into such
a state, that it has to feed him, instead of being fed by him. Society can
no longer live under this bourgeoisie.”

The words of Marx and Engels quoted above have become literally true. There
is a growing feeling among all sections of society that our lives are
dominated by forces beyond our control. Society is gripped by a gnawing
sense of fear and uncertainty. The mood of insecurity has become
generalised to practically the whole of society.

The kind of mass unemployment we are now experiencing is far worse than
anything Marx foresaw. Marx wrote of the reserve army of labour: that is to
say, a pool of labour that can be used to keep down wages and acts as a
reserve when the economy recovers from a slump. But the kind of
unemployment we now see is not the reserve army of which Marx spoke, which,
from a capitalist point of view played a useful role.

This is not the kind of cyclical unemployment which workers are well
acquainted with from the past and which would rise in a recession only to
disappear when the economy picked up again. It is permanent, structural,
organic unemployment, which does not noticeably diminish even when there is
a “boom”. It is a dead weight that acts as a colossal drag on productive
activity, a symptom that the system has reached a blind alley.

A decade before the crisis of 2008, according to the United Nations, world
unemployment was approximately 120 millions. By 2009, the International
Labour Organisation put the figure at 198 millions, and expects it to reach
202 million in 2013. However, even these figures, like all the official
statistics of unemployment, represent a serious understatement of the real
situation. If we include the enormous number of men and women who are
compelled to work in all kinds of marginal “jobs”, the real figure of world
unemployment and underemployment would not be less than 1,000 million.

Despite all the talk of economic recovery, economic growth in Germany, the
former economic powerhouse of Europe, has slowed down almost to zero, as
has France. In Japan too the economy is grinding to a halt. Quite apart
from the misery and suffering caused to millions of families, from an
economic point of view, this represents a staggering loss of production and
waste on a colossal scale. Contrary to the illusions of the labour leaders
in the past, mass unemployment has returned and has spread all over the
world like a cancer gnawing at the bowels of society.

The crisis of capitalism has its direst effects among the youth.
Unemployment among young people is soaring everywhere. This is the reason
for the mass student protests and riots in Britain, for the movement of the
*indignados* in Spain, the occupations of the schools in Greece and also
for the uprisings in Tunisia and Egypt, where about 75% of the youth are
unemployed.

The number of unemployed in Europe is constantly increasing. The figure for
Spain is nearly 27 per cent, while youth unemployment stands at an
incredible 55 per cent, while in Greece no fewer than 62 per cent of the
youth—two in every three—are jobless.  A whole generation of young people
is being sacrificed on the altar of Profit. Many who looked for salvation
to higher education have found that this avenue is blocked. In Britain,
where higher education used to be free, now young people find that in order
to acquire the skills they need, they will have to go into debt.

At the other end of the age scale, workers approaching retirement find that
they must work longer and pay more for lower pensions that will condemn
many to poverty in old age. For young and old alike, the prospect facing
most people today is a lifetime of insecurity. All the old bourgeois
hypocrisy about morality and family values has been exposed as hollow. The
epidemic of unemployment, homelessness, crushing debt and extreme social
inequality that has turned a whole generation into pariahs has undermined
the family and created a nightmare of systemic poverty, hopelessness,
degradation and despair.
A Crisis of Overproduction

In Greek mythology there was a character called Procrustes who had a nasty
habit of cutting off the legs, head and arms of his guests to make them fit
into his infamous bed. Nowadays the capitalist system resembles the bed of
Procrustes. The bourgeoisie is systematically destroying the means of
production in order to make them fit into the narrow limits of the
capitalist system. This economic vandalism resembles a policy of slash and
burn on a vast scale.

George Soros likens it to the kind of smashing ball used to demolish tall
buildings. But it is not only buildings that are being destroyed but whole
economies and states. The slogan of the hour is austerity, cuts and falling
living standards. In every country the bourgeoisie raises the same war cry:
“We must cut public expenditure!” Every government in the capitalist world,
whether right or “left” is in reality pursuing the same policy. This is not
the result of the whims of individual politicians, of ignorance or bad
faith (although there is plenty of this also) but a graphic expression of
the blind alley in which the capitalist system finds itself.

This is an expression of the fact that the capitalist system is reaching
its limits and is unable to develop the productive forces as it did in the
past. Like Goethe’s Sorcerer’s Apprentice, it has conjured up forces it
cannot control. But by slashing state expenditure, they are simultaneously
reducing demand and cutting the whole market, just at a time when even the
bourgeois economists admit that there is a serious problem of
overproduction (“overcapacity”) on a world scale. Let us take just one
example, the automobile sector. This is fundamental because it also
involves many other sectors, such as steel, plastic, chemicals and
electronics.

The global excess capacity of the automobile industry is approximately
thirty percent. This means that Ford, General Motors, Fiat, Renault, Toyota
and all the others could close one third of their factories and lay off one
third of their workers tomorrow, and they would still not be able to sell
all the vehicles they produce at what they consider to be an acceptable
rate of profit. A similar position exists in many other sectors. Unless and
until this problem of excess capacity is resolved, there can be no real end
to the present crisis.

The dilemma of the capitalists can be easily expressed. If Europe and the
USA are not consuming, China cannot produce. If China is not producing at
the same pace as before, countries like Brazil. Argentina and Australia
cannot continue to export their raw materials. The whole world is
inseparably interlinked. The crisis of the euro will affect the US economy,
which is in a very fragile state, and what happens in the USA will have a
decisive effect on the entire world economy. Thus, globalisation manifests
itself as a global crisis of capitalism.
Alienation

With incredible foresight, the authors of the *Manifesto* anticipated the
conditions which are now being experienced by the working class in all
countries.

“Owing to the extensive use of machinery and to division of labour, the
work of the proletarians has lost all individual character, and,
consequently, all charm for the workman. He becomes an appendage of the
machine, and it is only the most simple, most monotonous, and most easily
acquired knack, that is required of him. Hence, the cost of production of a
workman is restricted, almost entirely, to the means of subsistence that he
requires for his maintenance, and for the propagation of his race. But the
price of a commodity, and therefore also of labour, is equal to the cost of
production. In proportion, therefore, as the repulsiveness of the work
increases, the wage decreases. Nay more, in proportion as the use of
machinery and division of labour increases, in the same proportion the
burden of toil also increases, whether by prolongation of the working
hours, by increase of the work exacted in a given time or by increased
speed of the machinery, etc.”

Today the USA occupies the same position that Britain held in Marx’s
day—that of the most developed capitalist country. Thus, the general
tendencies of capitalism are expressed there in their clearest form. Over
the last 30 years, CEO pay in the USA has grown by 725%, while worker pay
has risen by just 5.7%. These CEOs now make an average of 244 times more
than their employees. The current federal minimum wage is $7.25 per hour.
According to the Center for Economic Policy Research, if the minimum wage
had kept up with worker productivity, it would have reached $21.72 in
2012. If inflation is taken into account, median wages for male American
workers are actually lower today than they were in 1968. In this way, the
present boom has been largely at the expense of the working class.

While millions are compelled to eke out a miserable existence of enforced
inactivity, millions of others are forced to have two or even three jobs,
and often work 60 hours or more per week with no overtime pay
benefits. 85.8 percent of males and 66.5 percent of females work more than
40 hours per week. According to the International Labour
Organisation, “Americans work 137 more hours per year than Japanese
workers, 260 more hours per year than British workers, and 499 more hours
per year than French workers.”

Based on data from the US Bureau of Labor Statistics BLS, the average
productivity per American worker has risen 400 percent since 1950. In
theory, this means that in order to achieve the same standard of living a
worker should only have to work just one quarter of the average working
week in 1950, or 11 hours per week. Either that, or the standard of living
in theory should have risen by four times. On the contrary, the standard of
living has decreased dramatically for the majority, while work-related
stress, injuries and disease are increasing. This is reflected in an
epidemic of depression, suicides, divorce, child and spousal abuse, mass
shootings and other social ills.

The same situation exists in Britain, where under the Thatcher government
2.5 million jobs were destroyed in industry, and yet the same level of
production has been maintained as in 1979. This has been achieved, not
through the introduction of new machinery but through the over-exploitation
of British workers. In 1995, Kenneth Calman, Director General of Health,
warned that “the lost of life time employment has unleashed an epidemic of
stress related illnesses.”
The Class Struggle

Marx and Engels explained in the *Communist Manifesto* that a constant
factor in all of recorded history is that social development takes place
through the class struggle. Under capitalism this has been greatly
simplified with the polarisation of society into two great antagonistic
classes, the bourgeoisie and the proletariat. The tremendous development of
industry and technology over the last 200 years has led to the increasing
the concentration of economic power in a few hands.

“The history of all hitherto existing society is the history of class
struggles,” says the *Manifesto* in one of its most celebrated phrases. For
a long time it seemed to many that this idea was outmoded. In the long
period of capitalist expansion that followed the Second World War, with
full employment in the advanced industrial economies, rising living
standards and reforms (remember the Welfare State?), the class struggle did
indeed seem to be a thing of the past.

Marx predicted that the development of capitalism would lead inexorably to
the concentration of capital, an immense accumulation of wealth on the one
hand and an equal accumulation of poverty, misery and unbearable toil at
the other end of the social spectrum. For decades this idea was rubbished
by the bourgeois economists and university sociologists who insisted that
society was becoming ever more egalitarian, that everyone was now becoming
middle class. Now all these illusions have been dispelled.

The argument, so beloved of bourgeois sociologists, that the working class
has ceased to exist has been stood on its head. In the last period
important layers of the working population who previously considered
themselves to be middle class have been proletarianised. Teachers, civil
servants, bank employees and so on have been drawn into the ranks of the
working class and the labour movement, where they make up some of the most
militant sections.

The old arguments that everybody can advance and we are all middle class
have been falsified by events. In Britain, the US and many other developed
countries over the past 20 or 30 years, the opposite has been happening.
Middle-class people used to think life unfolded in an orderly progression
of stages in which each is a step up from the last. That is no longer the
case.

Job security has ceased to exist, the trades and professions of the past
have largely disappeared and life-long careers are barely memories. The
ladder has been kicked away and for most people a middle-class existence is
no longer even an aspiration. A dwindling minority can count on a pension
on which they could comfortably live, and few have significant savings.
More and more people live from day to day, with little idea of what the
future may bring.

If people have any wealth, it is in their houses, but with the contraction
of the economy house prices have fallen in many countries and may be
stagnant for years. The idea of a property-owning democracy has been
exposed as a mirage. Far from being an asset to help fund a comfortable
retirement, home ownership has become a heavy burden. Mortgages must be
paid, whether you are in work or not. Many are trapped in negative equity,
with huge debts that can never be paid. There is a growing generation of
what can only be described as debt slaves.

This is a devastating condemnation of the capitalist system. However, this
process of proletarianisation means that the social reserves of reaction
have been sharply reduced as a big section of white collar workers moves
closer to the traditional working class. In the recent mass mobilisations,
sections that in the past would never have dreamt of striking or even
joining a union, such as teachers and civil servants, were in the front
line of the class struggle.
Idealism or Materialism?

The idealist method sets out from what people think and say about
themselves. But Marx explained that ideas do not fall from the sky, but
reflect more or less accurately, objective situations, social pressures and
contradictions beyond the control of men and women. But history does not
unfold as a result of free will or conscious desires of the “great man”,
kings, politicians or philosophers. On the contrary, the progress of
society depends on the development of the productive forces, which is not
the product of conscious planning, but develops behind the backs of men and
women.

For the first time Marx placed socialism on a firm theoretical basis. A
scientific understanding of history cannot be based on the distorted images
of reality floating like pale and fantastic ghosts in the minds of men and
women, but on real social relations. That means beginning with a
clarification of the relationship between social and political forms and
the mode of production at a given stage of history. This is precisely what
is called the historical materialist method of analysis.

Some people will feel irritated by this theory which seems to deprive
humankind of the role of protagonists in the historical process. In the
same way, the Church and its philosophical apologists were deeply offended
by the claims of Galileo that the Sun, not the Earth, was at the centre of
the Universe. Later, the same people attacked Darwin for suggesting that
humans were not the special creation of God, but the product of natural
selection.

Actually, Marxism does not at all deny the importance of the subjective
factor in history, the conscious role of humankind in the development of
society. Men and women make history, but do not do it entirely in accord
with their free will and conscious intentions. In Marx’s words: “History
does nothing”, it “possesses no immense wealth”, it “wages no battles”. It
is man, real, living man who does all that, who possesses and fights;
“history” is not, as it were, a person apart, using man as a means to
achieve its own aims; history is nothing but the activity of man pursuing
his aims.” (Marx and Engels, *The Holy Family*, Chapter VI)

All that Marxism does is to explain the role of the individual as part of a
given society, subject to certain objective laws and, ultimately, as the
representative of the interests of a particular class. Ideas have no
independent existence, nor own historical development. “Life is not
determined by consciousness,” Marx writes in *The German Ideology*, “but
consciousness by life.”

The ideas and actions of people are conditioned by social relations, the
development of which does not depend on the subjective will of men and
women but takes place according to definite laws which, in the last
analysis, reflect the needs of the development of the productive forces.
The interrelations between these factors constitute a complex web that is
often difficult to see. The study of these relations is the basis of the
Marxist theory of history.

Let us cite one example. At the time of the English Revolution, Oliver
Cromwell fervently believed that he was fighting for the right of each
individual to pray to God according to his conscience. But the further
march of history proved that the Cromwellian Revolution was the decisive
stage in the irresistible ascent of the English bourgeoisie to power. The
concrete stage of the development of the productive forces in 17th Century
England permitted no other outcome.

The leaders of the Great French Revolution of 1789-93 fought under the
banner of “Liberty, Equality and Fraternity”. They believed they were
fighting for a regime based on the eternal laws of Justice and Reason.
However, regardless of their intentions and ideas, the Jacobins were
preparing the way for the rule of the bourgeoisie in France. Again, from a
scientific standpoint, no other result was possible at that point of social
development.

>From the standpoint of the labour movement Marx’s great contribution was
that he was the first to explain that socialism is not just a good idea,
but the necessary result of the development of society. Socialist thinkers
before Marx—the utopian socialists—attempted to discover universal laws and
formulae that would lay the basis for the triumph of human reason over the
injustice of class society. All that was necessary was to discover that
idea, and the problems would be solved. This is an idealist approach.

Unlike the Utopians, Marx never attempted to discover the laws of society
in general. He analysed the law of movement of a particular society,
capitalist society, explaining how it arose, how it evolved and also how it
necessarily ceases to exist at a given moment. He performed this huge task
in the three volumes of Capital.
Marx and Darwin

Charles Darwin, who was an instinctive materialist, explained the evolution
of species as a result of the effects of the natural environment. Karl Marx
explained the development of humankind from the development of the
“artificial” environment we call society. The difference lies, on the one
hand, in the enormously complicated character of human society compared to
the relative simplicity of nature and, secondly, in the greatly accelerated
pace of  change in society compared to the extraordinarily slow pace with
which evolution by nation selection unfolds.

On the base of the social relations of production—in other words, the
relations between social classes—there arises complex legal and political
forms with their manifold ideological, cultural and religious reflections.
This complex edifice of forms and ideas is sometimes referred to as the
social superstructure. Although it is always based on economic foundations,
the superstructure rises above the economic base and interacts upon it,
sometimes in a decisive manner. This dialectical relationship between base
and superstructure is very complicated and not always very obvious. But in
the last analysis, the economic base always turns out to be the decisive
force.

Property relations are simply the legal expression of the relationships
between classes. At first, these relationships—together with their legal
and political expression—assist the development of the productive forces.
But the development of productive forces tends to come up against the
limitations represented by existing property relations. The latter become
an obstacle for the development of production. It is at this point that we
enter a period of revolution.

Idealists see human consciousness as the mainspring of all human action,
the motor force of history. But all history proves the opposite. Human
consciousness in general is not progressive or revolutionary. It is slow to
react to circumstances and deeply conservative. Most people do not like
change, much less revolutionary change. This innate fear of change is
deeply rooted in the collective psyche. It is part of a defence mechanism
that has its origins in the remote past of the human species.

As a general rule, we can say that society never decides to take a step
forward unless it is obliged to do so under the pressure of extreme
necessity. As long as it is possible to muddle through life on the basis of
the old ideas, adapting them imperceptibly to a slowly changing reality, so
long will men and women continue to move along the well-worn paths. Like
the force of inertia in mechanics, tradition, habit and routine constitute
a very heavy burden on human consciousness, which means that ideas always
tend to lag behind events. It requires the hammer blows of great events to
overcome this inertia and force people to question the existing society,
its ideas and values.

All that revolution shows is the fact that the social contradictions
engendered by the conflict between economic development and the existing
structure of society have become unbearable. This central contradiction can
only be resolved by the radical overthrow of the existing order, and its
replacement by new social relations that bring the economic base into
harmony with the superstructure.

In a revolution the economic foundations of society suffer a radical
transformation. Then, the legal and political superstructure undergoes a
profound change. In each case, the new, higher relations of production have
matured in embryo in the womb of the old society, posing an urgent need for
a transition to a new social system.
Historical Materialism

Marxism analyses the hidden mainsprings that lie behind the development of
human society, from the earliest tribal societies up to the modern day. The
way in which Marxism traces this winding road is called the materialist
conception of history. This scientific method enables us to understand
history, not as a series of unconnected and unforeseen incidents, but
rather as part of a clearly understood and interrelated process. It is a
series of actions and reactions which cover politics, economics and the
whole spectrum of social development. To lay bare the complex dialectical
relationship between all these phenomena is the task of historical
materialism.

The great English historian Edward Gibbon, the author of *The Decline and
Fall of the Roman Empire*, wrote that history is “little more than the
register of the crimes, follies and misfortunes of mankind.” (Gibbon, *The
Decline and Fall of the Roman Empire*, vol. 1, p. 69). In essence, the
latest post-modernist interpretation of history has not advanced a single
step since then. History is seen as a series of disconnected “narratives”
with no organic connection and no inner meaning or logic. No socio-economic
system can be said to be better or worse than any other, and there can
therefore be no question of progress or retrogression.

History appears here as an essentially meaningless and inexplicable series
of random events or accidents. It is governed by no laws that we can
comprehend. To try to understand it would therefore be a pointless
exercise. A variation on this theme is the idea, now very popular in some
academic circles, that there is no such thing as higher and lower forms of
social development and culture. They claim that there is no such thing as
progress, which they consider to be an old fashioned idea left over from
the 19th century, when it was popularised by Victorian liberals, Fabian
socialists and—Karl Marx.

This denial of progress in history is characteristic of the psychology of
the bourgeoisie in the phase of capitalist decline. *It is a faithful
reflection of the fact that, under capitalism progress has indeed reached
its limits and threatens to go into reverse.* The bourgeoisie and its
intellectual representatives are, quite naturally, unwilling to accept this
fact. Moreover, they are organically incapable of recognising it. Lenin
once observed that a man on the edge of a cliff does not reason. However,
they are dimly aware of the real situation, and try to find some kind of a
justification for the impasse of their system by denying the possibility of
progress altogether.

So far has this idea sunk into consciousness that it has even been carried
into the realm of non-human evolution. Even such a brilliant thinker as
Stephen Jay Gould, whose dialectical theory of *punctuated
equilibrium* transformed
the way that evolution is perceived, argued that it is wrong to speak of
progress from lower to higher in evolution, so that microbes must be placed
on the same level as human beings. In one sense it is correct that all
living things are related (the human genome has conclusively proved this).
Humankind is not a special creation of the Almighty, but the product of
evolution. Nor is it correct to see evolution as a kind of grand design,
the aim of which was to create beings like ourselves (teleology—from the
Greek telos, meaning an end). However, in rejecting an incorrect idea, it
is not necessary to go to the other extreme, leading to new errors.

It is not a question of accepting some kind of preordained plan either
related to divine intervention or some kind of teleology, but it is clear
that the laws of evolution inherent in nature do in fact determine
development from simple forms of life to more complex forms. The earliest
forms of life already contain within them the embryo of all future
developments. It is possible to explain the development of eyes, legs and
other organs without recourse to any preordained plan. At a certain stage
we get the development of a central nervous system and a brain. Finally
with homo sapiens, we arrive at human consciousness. Matter becomes
conscious of itself. There has been no more important revolution since the
development of organic matter (life) from inorganic matter.

To please our critics, we should perhaps add the phrase from our point of
view. Doubtless the microbes, if they were able to have a point of view,
would probably raise serious objections. But we are human beings and must
necessarily see things through human eyes. And we do assert that evolution
does in fact represent the development of simple life forms to more complex
and versatile ones—in other words progress from lower to higher forms of
life. To object to such a formulation seems to be somewhat pointless, not
scientific but merely scholastic. In saying this, of course, no offence is
intended to the microbes, who after all have been around for a lot longer
than us, and if the capitalist system is not overthrown, may yet have the
last laugh.
The Motor Force of History

In The Critique of Political Economy Marx explains the relation between the
productive forces and the “superstructure” as follows:

“In the social production which men carry on they enter into definite
relations that are indispensable and independent of their will; these
relations of production correspond to a definite stage of development of
their material powers of production... The mode of production in ma terial
life determines the general character of the social, political and
spiritual processes of life. It is not the consciousness of men that
determines their existence, but, on the contrary, their social existence
(which) determines their consciousness.”

As Marx and Engels were at pains to point out, the participants in history
may not always be aware of what motives drive them, seeking instead to
rationalise them in one way or another, but those motives exist and have a
basis in the real world.

Just as Charles Darwin explains that species are not immutable, and that
they possess a past, a present and a future, changing and evolving, so Marx
and Engels explain that a given social system is not something eternally
fixed. That is the illusion of every epoch. Every social system believes
that it represents the only possible form of existence for human beings,
that its institutions, its religion, its morality are the last word that
can be spoken.

That is what the cannibals, the Egyptian priests, Marie Antoinette and Tsar
Nicolas all fervently believed. And that is what the bourgeoisie and its
apologists today wish to demonstrate when they assure us, without the
slightest basis, that the so-called system of “free enterprise” is the only
possible system—just when it is beginning to sink.

Nowadays, the idea of “evolution” has been generally accepted at least by
educated persons. The ideas of Darwin, so revolutionary in his day, are
accepted almost as a truism. However, evolution is generally understood as
a slow and gradual process without interruptions or violent upheavals. In
politics, this kind of argument is frequently used as a justification for
reformism. Unfortunately, it is based on a misunderstanding.

The real mechanism of evolution even today remains a book sealed by seven
seals. This is hardly surprising since Darwin himself did not understand
it. Only in the last decade or so with the new discoveries in palaeontology
made by Stephen J. Gould, who discovered the theory of punctuated
equilibria, has it been demonstrated that evolution is not a gradual
process. There are long periods in which no big changes are observed, but
at a given moment, the line of evolution is broken by an explosion, a
veritable biological revolution characterised by the mass extinction of
some species and the rapid ascent of others.

The analogy between society and nature is, of course, only approximate. But
even the most superficial examination of history shows that the gradualist
interpretation is baseless. Society, like nature, knows long periods of
slow and gradual change, but also here the line is interrupted by explosive
developments—wars and revolutions, in which the process of change is
enormously accelerated. In fact, it is these events that act as the main
motor force of historical development. And the root cause of revolution is
the fact that a particular socio-economic system has reached its limits and
is unable to develop the productive forces as before.
A Dynamic View of History

Those who deny the existence of any laws governing human social development
invariably approach history from a subjective and moralistic standpoint.
Like Gibbon (but without his extraordinary talent) they shake their heads
at the unending spectacle of senseless violence, the inhumanity of man
against man (and woman) and so on and so forth. In place of a scientific
view of history we get a parson’s view. However, what is required is not a
moral sermon but a rational insight. Above and beyond the isolated facts,
it is necessary to discern broad tendencies, the transitions from one
social system to another, and to work out the fundamental motor forces that
determine these transitions.

By applying the method of dialectical materialism to history, it is
immediately obvious that human history has its own laws, and that,
consequently, the history of humankind is possible to understand it as a
process. The rise and fall of different socio-economic formations can be
explained scientifically in terms of their ability or inability to develop
the means of production, and thereby to push forward the horizons of human
culture, and increase the domination of humankind over nature.

Most people believe that society is fixed for all time, and that its moral,
religious and ideological values are immutable, along with what we call
“human nature”. But the slightest acquaintance with history shows that this
is false. History manifests itself as the rise and fall of different
socio-economic systems. Like individual men and women, societies are born,
develop, reach their limits, enter into decline and are then finally
replaced by a new social formation.

In the last analysis, the viability of a given socio-economic system is
determined by its ability to develop the productive forces, since
everything else depends on this. Many other factors enter into the complex
equation: religion, politics, philosophy, morality, the psychology of
different classes and the individual qualities of leaders. But these things
do not drop from the clouds, and a careful analysis will show that they are
determined—albeit in a contradictory and dialectical way—by the real
historical environment, and by tendencies and processes that are
independent of the will of men and women.

The outlook of a society that is in a phase of ascent, which is developing
the means of production and pushing forward the horizons of culture and
civilisation, is very different to the psychology of a society in a state
of stagnation and decline. The general historical context determines
everything. It affects the prevailing moral climate, the attitude of men
and women towards the existing political and religious institutions. It
even affects the quality of individual political leaders.

Capitalism in its youth was capable of colossal feats. It developed the
productive forces to an unparalleled degree, and was therefore able to push
back the frontiers of human civilisation. People felt that society was
advancing, despite all the injustices and exploitation that have always
characterised this system. This feeling gave rise to a general spirit of
optimism and progress that was the hall mark of the old liberalism, with
its firm conviction that today was better than yesterday and tomorrow would
be better than today.

That is no longer the case. The old optimism and blind faith in progress
have been replaced by a profound sense of discontent with the present and
of pessimism with regard to the future. This ubiquitous feeling of fear and
insecurity is only a psychological reflection of the fact that capitalism
is no longer capable of playing any progressive role anywhere.

In the 19th century, Liberalism, the main ideology of the bourgeoisie,
stood (in theory) for progress and democracy. But neo-Liberalism in the
modern sense is only a mask that covers the ugly reality of the most
rapacious exploitation; the rape of the planet, the destruction of the
environment without the slightest concern about the fate of future
generations. The sole concern of the boards of the big companies who are
the real rulers of the USA and the entire world is to enrich themselves
through plunder: asset-stripping, corruption, the theft of public assets
through privatisation, parasitism: these are the main features of the
bourgeoisie in the phase of its senile decay.

*To be continued...*


[Non-text portions of this message have been removed]



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