[corrected & amended -- see the end.]

In response to David's questions ..., Louis Proyect writes:
<Because they didn't recognize their own long-term class interests as well
<as bourgeois intellectuals such as Alfred Kahn did. This is the role of the
<intelligentsia, to raise such ideas. It is the role of the bourgeois state
<apparatus to then act upon it. FDR functioned in the same manner in the
<1930s when he pushed for regulation. The last of the "New Dealers", Ted
<Kennedy, was responding to the same class interests when he fought for
<deregulation.

David ripostes: >This is a very interesting theory you have.  Whatever the
government does, by definition, is in the long-term class interests of
industry/business/bourgeois/guys who wear tophats/play golf, even if the
industry strenuously opposes the government action.  No wonder Marxist
analysis is never wrong.<

I can't speak for Louis, but the idea that "whatever the government does, 
by definition, is in the long-term class interests of" the bourgeoisie is a 
very simplistic version of the Marxian theory of the state. It's absolutely 
true, to my mind at least, that the state under capitalism works to serve 
the class interests of the capitalist class under normal conditions. These 
interests center around the preservation of class privileges, of capitalist 
property. (Sweezy's chapter on the state in his THEORY OF CAPITALIST 
DEVELOPMENT is very good: one of his key points is that bolstering class 
rule is seen as "normal" by most people who think about the state.) 
However, beyond that, capitalist class interests become vague, since the 
future is uncertain: no-one knew at the time if Alfred Kahn's scheme would 
serve the long-term interests of capital. We still don't know, but strictly 
speaking the nature of the long-term class interests of the capitalist 
class can only be determined after the fact (and the long-term implications 
of that scheme aren't all in yet).

This vagueness opens the state to two kinds of deviations from what's good 
for capital. First, in the short run, in many cases, the short-term 
interests of particular power blocs within capital can dominate, going 
against what most people would agree are the long-term interests of 
capital. For example, a lot of George Dumbya's programs seem to go against 
what's good for capital. Continuing the slighting of public health by the 
Clinton administration, for example, risks the rise of plagues that hurt 
capitalists along with workers and could even shake the social order that 
allows the capitalists to exploit workers (though frankly such is likely to 
promote barbarism more than it does socialism -- neither result seems good 
to capitalists). BTW, this picture of the general interest of capital vs. 
the particular interests of capitals is reflected (in a mystified form) in 
the mainstream liberal vision of the "public interest" vs. special interests.

Second, if working class or other dominated groups can organize and gather 
a lot of power, they can push the government away from serving the 
short-term interests of capitalists and even the long-term interests of 
capital. The latter was seen, for example, with the election of Salvadore 
Allende to the presidency of Chile in 1971. But even though he had 
governmental power, state power (Pinochet, the CIA, etc.) eventually 
smashed Allende and the Unidad Popular government. The power of the working 
class has to  be widened and deepened in order to counteract the power of 
capitalists and capital. Among other things, the state repressive power has
to be taken away from capital's lackeys. (I'm being nice to Pinochet by 
calling him merely a "lackey.")

The former case -- where working class power pushes the government away 
from serving the short-term interests of capitalists -- seems to be the 
basis for the social democracy that prevailed in Sweden and some other rich 
capitalist countries for a couple of decades after World War II. (In the 
U.S., we had only a weak echo of this kind of system.) Though other results 
are possible, in the case of Sweden the power of the working class enabled 
the wise management of the national economy by social-democratic 
technocrats, allowing a very popular class compromise that for many years 
served the long-term interests of capital while minimizing the role of 
capitalist special interests. Of course, this kind of compromise requires 
some very special social and historical conditions, which seem to have gone 
away in Sweden. Further, individual capitalists have an incentive to "free 
ride" on the social-democratic accord, taking advantage of the system while 
moving capital to low-wage areas, etc. Finally, the bureaucratization of 
the Social Democratic party and the labor unions eventually undermined the 
popular base for the system, so that resistance to its abolition was sapped.

Jim Devine [EMAIL PROTECTED] &  http://bellarmine.lmu.edu/~jdevine

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