At present, we see the Bush-Paulson proposal to partially socialize (or nationalize) a big chunk of the US banking system, following the lead of other rich capitalist countries. It will likely be implemented. This program reminds me of Engels' discussion in SOCIALISM: UTOPIAN AND SCIENTIFIC (part III) of the socialization of capitalist production.
The way I interpret his discussion is that capitalism, like other social modes of production, is socialized (united as an interdependent social system). But unlike some economic systems, it is only _implicitly_ socialized while appropriation of wealth (including profits) is individualized. This implies a contradiction, which causes crises, the concentration and centralization of capital, and class conflict (along with other "c" words). The result is growing explicit socialization of capital, including state guidance of production or even the nationalization of parts of it, while the appropriation of wealth becomes more centralized. The current response to the current crisis can be seen in exactly those terms. Part of the socialization is the merger of big financial firms into even bigger ones. Part of the lesson is that the _laissez-faire_ image of capitalism as being a system of atomistic competition is illusory. Capitalism needs the state to prosper and even to survive, while this becomes increasingly obvious (in practice) over time. Keynesian economics represents an important aspect of this process. Of course, the current socialization is likely temporary -- as Bush and Paulson emphasize. That's because a key part of the socialization process is radically incomplete: the class struggle has not produced a mass democratically-organized and class-conscious organization of the proletariat. The socialization of production is real, but it's not democratic in nature. It's plutocratic instead. So the current socialization will eventually be reversed and more classic capitalism (with only implicitly socialized production and individualized appropriation) will generally return. Thus, we will again see crises, the concentration and centralization of capital, and class conflict. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
