Category Archives: capitalism

Unemployment and revolution. Part 2: What ‘normally’ causes unemployment?

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What “normally” causes unemployment? (continuation of research paper prepared by Albert Langer in 1981).

– The Labour Market

– The Unemployment Pool

– Changes in the Level of Unemployment

2. WHAT “NORMALLY” CAUSES UNEMPLOYMENT?

We shall argue that conservative economists are correct to stress that unemployment plays an essential regulatory role in a market economy. This contrasts with the usual “left” calls for government action to “create jobs”. But we will go on to show that “wage restraint” will not solve the problem either.

Such “restraint” would be unnecessary to keep “normal” unemployment within limits, because the unemployment itself would regulate wages. Something must have changed so that unemployment and wages are not regulated in the way they used to be.

A common way to look at unemployment is that there is a certain fixed number of jobs and a certain fixed number of people available to fill them, and some sort of mismatch has occurred. The suggestion here is that the unemployed are simply those workers who cannot be fitted into the jobs available for them. This idea leads to “commonsense” proposals to reduce the number of workers, or provide a better match between specific workers and specific jobs.

Solutions aimed at restricting the number of job applicants have historically had a powerful appeal. Discrimination against women, migrants, blacks and so on, can be in the immediate interests of men, native born, or whites, in the competition for a place at the front of the jobs queue.

Obviously such “solutions” cannot reduce unemployment, but they can determine who gets the jobs, and for the individual on the dole, that can be just as important. Efforts are already being made to promote these objective divisions of interest within the working class. Those efforts are serious and should be fought seriously. They can succeed.

There are always vacancies as well as people unemployed, so “solutions” which emphasise re-training and so forth are still popular. So is the idea that there are really plenty of jobs available, but “dole bludgers” are just refusing to fit into them because they want something better.

School leavers do have access to advice about how to be well groomed for a job interview and so on, although only cretins could imagine that if all the unemployed were better groomed, any more of them would get jobs quicker! This simply confirms that who gets the jobs is pretty important for the school leaver. Advice about how to find a job can be somewhat helpful in evening out the duration of unemployment and reducing the numbers who miss out on jobs altogether. But quite obviously it cannot reduce unemployment.

A lot of energy in left wing propaganda and agitation is spent trying to combat the above ideas but without attacking the underlying concept that there is a fixed number of jobs and workers. The “left-wing” and “right-wing” analyses are therefore just two sides of the same coin, sharing the same basic assumptions.

So we should not be surprised that the left makes no progress against the dominant right wing ideology.
What is the difference between saying there are too many workers or not enough jobs? These really amount to exactly the same thing. Yet that is all the left does say. The “not enough jobs” line is sterile, boring, and will get nowhere because it is just not true.

These ideas are wrong because neither the number of workers nor the number of jobs is at all rigid.

Under normal circumstances, the number of jobs adapts flexibly to the number of workers available to do them. In fact there is always plenty more work that needs doing, than the labour available to do it.
As capital is accumulated and society develops its productive forces, jobs that were previously left undone get attended to. The limitation is always the social labour time available to do things, rather than the number of “jobs”.

When the number of jobs fails to adapt to the number of available workers, this must mean that something has changed in the adaptive mechanism itself, and we must find out what. Just trying to “create jobs” would still leave us with an adaptive mechanism that was not working and that could recreate a new pool of unemployed.

This more sophisticated understanding of job creation in a market economy, lies at the heart of conservative arguments for wage restraint. Those arguments have never been satisfactorily answered from the labour movement, and are gradually being accepted by the trade union bureaucracy. There is thus an urgent need for them to be answered. Let us first consider how the adaptive mechanism is supposed to work.

The Labour Market

The workforce in modern industrial countries is extremely mobile. It is the product of centuries of capitalist development in which the technique and structure of production have changed so rapidly that people expect to change jobs many times during their working lives.

Nowadays many firms are so large that a good deal of movement between jobs takes place within the same firm. Some even have regular career services with a defined system for recruitment, promotion and transfer. There is also a certain amount of transfer between firms, directly from one job to another. But a great deal of movement between jobs still takes place via the pool of unemployment.

“Labour Turnover” includes workers changing jobs while searching for a better situation. It also includes the replacement of workers who have died or retired or otherwise left the labour force, by new workers entering the labour force for the first time.

These movements have no net effect on unemployment although many workers will pass through unemployment on their way between jobs, or on their way into the labour force. In addition to this however, there is a continuous process of new jobs being created and old jobs being destroyed. This does have a net effect on employment, and therefore on unemployment, although the effect can be in either direction.

In existing establishments, expansion or contraction of demand will create new vacancies or produce redundancies. Changes in demand may also result in new establishments being set up as an industry expands, or old ones being closed down as it contracts.

New techniques will be introduced with expansion, or when it is time for old plant and equipment to be replaced. Old techniques will be phased out with contraction, or when they have become so obsolete that it is more profitable to introduce the new technique immediately.

Investment in new production techniques requires a reorganisation of the labour process. Vacancies will be created for new positions that previously did not exist. Old staff positions no longer required will be abolished. Some workers will be transferred from old positions to new ones. Others will be retrenched, or not replaced when they leave. New workers, perhaps with different skills, will be recruited. New raw materials and components will replace those previously used. Work previously done “in house” when the volume was lower and the need for specialisation was less, will either be farmed out to new outside contractors or subsidiary establishments set up for the purpose.

Generally the new technique is introduced to increase productivity. The new team of workers will be able to turn more of their “inputs” into “outputs” at a lower cost and using less labour. There may be an increased demand for new inputs used by the new process, with a decrease in demand for the old inputs used by the old process. This may produce some net effect on total employment in the suppliers (and in their suppliers…)

If the output is relatively cheapened as productivity increases, then there may be a further increase in demand, which will again increase the demand for the products of the firms or departments that supply the inputs.

Expansion of markets is generally a consequence of relative cheapening through increased productivity, and at the same time a condition for new techniques to be introduced. “The division of labour is determined by the extent of the market”. Often within the same establishment, there will simultaneously be expanding demand which increases employment, and reorganisation that decreases it. The total staff size may either grow or shrink as a result.

This sort of thing is happening all the time, and may not even be noticed as “labour saving technological change”. Especially if the change only increases output with the same size workforce, instead of leading to redundancies.

However labour productivity and the real gross national product per worker are able to grow each year only because of these changes. Growth rates have been very high in the whole post-war period, because these changes have been taking place very rapidly.

The long term tendency has been for the total labour force to grow more rapidly than the population. Labour saving technological change has meant more output per worker together with more employment overall. However this simply implies the overall rate of economic growth has been faster than the rate of productivity increase. Any particular change may result in either more or less total employment, and there is no guarantee that changes in employment taking place simultaneously throughout the economy will automatically balance each other in any way.

Both changes in demand and changes in technique can produce a net change in total employment. If there was no unemployment pool, there would be no leeway for changes in total employment to occur as a result of job creation and destruction. There must be leeway, so there must be an unemployment pool.But its size is another question.

The Unemployment Pool

As well as the normal labour turnover, there is a continuous stream pouring into the pool of unemployment as a result of positions that have become redundant (whether their previous occupants were sacked, or the position was just not filled when they left).. There is also a continuous stream emptying the pool of unemployment as a result of new vacancies that have been created.

In fact there are a number of interconnected pools and streams for different occupations, industries and localities. And these are also interconnected with the pools of people in the education system or otherwise not in the labour force as well as with the flows of migrants to and from other countries.

The effect of changing demand on the numbers of jobs available for people of various skills and occupations in various localities, is reflected in the filling and emptying of their unemployment pools. People who cannot find a job in one pool are forced to transfer to another by doing things such as changing their usual occupation or residence, acquiring new skills that are more in demand, and so on.

The pools of people “not in the labour force” can also be forms of “hidden” or “latent” unemployment. Women for example, are drawn into wage labour more extensively during periods of peak labour shortage, and pushed back into “home duties” when unemployment is growing. Likewise people may stay on at school longer, or retire earlier, as a result of unemployment.

On a world-wide scale, the movement of people off the land and away from petty production into industrial wage labour jobs is accelerated by labour shortages.

This movement is retarded or even reversed during a depression. Thus countries like Australia which normally absorb immigrants from agricultural areas like southern Europe, will put up barriers to immigration when there is unemployment at home. People left marginally employed, on or off the land in the agricultural areas are also part of the unemployment problem.

The modern capitalist economy is very flexible and has a number of mechanisms for adapting to changes in the level of economic activity and consequent changes in the demand for labour. Thse include adjustments in overtime hours worked, part-time and casual employment, wage rates, labour turnover, work intensity, production techniques and so so.

Only when the other adjustment mechanisms have already been stretched considerably, do substantial unemployment or labour shortages appear directly. Both unemployment and labour shortages are therefore signs of some relatively severe disproportion which must be stretching things. Since each firm hires and fires independently and plans its investment program independently, there is no reason why at any given time the total numbers pouring into the pool of unemployed should be equal to the numbers drained out of it. Some other mechanism must therefore maintain the balance.

After all, why should the number of jobs created in the tertiary sector, just happen to balance the number of jobs lost in manufacturing, plus the additional numbers of women entering the labour force, and so on? Nevertheless, these independent statistics did balance for many years, and we must find out why they did, before we can find out why they now do not.

As will be explained later, the expansion and contraction of unemployment is itself part of the mechanism that regulates the price of labour power, the rate of profit and the balance between production, consumption and investment.

There just is not any government authority that can regulate the number of new jobs being created, or the number of old jobs being destroyed each year – and there cannot be such regulation in a market economy.

Therefore there is not any way that the government can directly determine the number of unemployed.

Changes in the Level of Unemployment

It is difficult to separate job creation and destruction from other labour turnover, and difficult to separate the effects of new technology from expansion and contraction of demand. But labour turnover is very high, and some of it is the result of jobs being created and destroyed.

If people change their jobs an average of once every four years, then the number of job changes each year is equal to a quarter of the entire workforce. If the average duration of unemployment is six months, then twice as many people pass through unemployment each year on their way to a job (or on their way out of the labour force due to discouragement), as the number of unemployed at any given time. Only a small proportion of labour turnover needs to be due to job creation and destruction, for any imbalance between the two to have a rapid effect on net employment and unemployment.

One would naturally tend to think that if all those who happen to be out of work at the moment were to go abroad, or had jobs specially created for them, then there would be no unemployment. But the above analysis suggests that only a slight mismatch between the numbers of jobs being created and destroyed, would very quickly recreate a large pool of unemployed. Just to keep the number of unemployed static, whether at twenty thousand or two million, there would have to be perfect equality between the large number of jobs being destroyed each year, and the large number being created.

It follows that one should not just think in terms of a match between the numbers of jobs and workers, but also a match between the rates of job creation and destruction. In fact, when there is no dramatic continuing change in the level of unemployment, there must be just such a nearly perfect match between job creation and destruction.

How is it brought about? Why does not the number of unemployed fluctuate wildly, all the time? Only if we know how unemployment is normally regulated can we find out why that regulation is not working the same way now.

(Next instalment: What regulates unemployment?)

Unemployment and Revolution (Part 1) – by Albert Langer, written in 1981

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Unemployment and Revolution

First published in August 1981 as an Australian Political Economy Movement conference paper by Albert Langer (Adelaide 8-9 August.1981). It was republished subsequently by the Red Eureka Movement. (REM).

It holds up very well, given that it was written more than 30 years ago.

Brief Synopsis

Conservative economists and politicians generally argue that unemployment and inflation in Australia are the result of changes in the international economy, and that Australia has to adapt to those changes or things will get even worse. They say government economic policies must promote more rapid economic growth by stimulating profits and investment at the expense of real wages and social welfare.

Labour movement opponents of the current Liberal government have proposed a series of sometimes contradictory arguments in opposition to this line. Explicitly or by implication they suggest that unemployment is at least made worse by the present government’s economic policy, and could be improved if different policies were followed. Various proposals are advanced – such as:

for shorter working hours

redistribution of wealth from the rich

protection of Australian industry

limitations on technological change

nationalisation

government job creation schemes

improvements in the lot of the unemployed

measures to stimulate economic growth without attacking living standards

and so on.

These proposals have had little impact on public opinion. Given the manifest failure of its economic policies, there has been nothing like the mobilisation against the government that might be expected.

The reason is that these proposals do not make sense. They ignore fundamental facts about how capitalism works, and about recent economic and political history.

The capitalist system is not capable of restoring full employment in any of the ways suggested from the labour movement, and it is silly to pretend that it can. The only alternative to conservative policies will be communist revolution. That alternative must be made realistic.

Introduction

Before deciding what could – and what could not – reduce unemployment, we first need to look at what causes unemployment. I am not very clear on that myself, but I still feel confident enough to reject various commonly accepted views on the subject. I will state my own provisional understanding rather baldly. Others can then point out its inadequacies, and we can go on from there.

This paper is thus a preliminary attempt, necessarily half-baked, and partly written for the purpose of self-clarification. It examines an issue that really needs to be considered in close connection with many other economic and social questions. It would have been better to have provided more facts and figures, examples and other evidence for the assertions below, as well as more explicit reference to other views. But we have to start somewhere.

Hopefully feedback will result in refinements and modifications of the arguments. Please do send comments.

Part 1. Emphasises that unemployment is specifically a problem connected with market economies. Then it gets slightly distracted to talk about science fiction and jellyfish.

Parts 2., and 3. Analyse the economic mechanisms that regulate “normal” unemployment, in order to explain the conservative arguments for “wage restraint” and why such arguments are wrong.

Part 4. Examines “technological” unemployment and shows that the increased unemployment now is not “technological”.

Part 5. Attempts an explanation of “overproduction” and “cyclical” unemployment (without great success).

Part 6.Considers various “solutions” from the labour movements, in the light of the earlier analysis, and rejects them all, but cheerfully, in view of part 7.

Part 7. Tries to give some concrete content to the idea that “the only solution is revolution”.

1. WHAT IS “UNEMPLOYMENT”

First, let us be clear about what unemployment actually means. Unemployment and employment are two sides of the same coin. Capitalism is based on wage labour. Workers sell their labour power to employers for money wages. They are “employed”, that is “used”, or “exploited”, to produce profits. They do not work for themselves, but are “employed” by others. Inherent in this is the possibility that some workers will be unable to find a buyer who is willing to purchase their labour power when it is offered for sale.

In fact unemployment is not only possible, but inevitable, in a capitalist or market economy. The labour market, like the other commodity and financial markets, is an essential mechanism regulating production and consumption by balancing supply and demand through price movements. Even at the height of prosperity there has to be some pool of unemployed for employers expanding their operations to recruit from. Otherwise they could only recruit from other employers by offering higher wages.

“Full employment” actually means “very little unemployment” – say 1% or 2% – just enough to stop a “wages explosion”. Any less unemployment than that is not “full employment” but a “labour shortage”.

The very term “market economy” implies an economy in which commodities, including labour power, may be offered for sale with no buyer. If there was a guaranteed buyer, then the transfer would be some sort of allocation, rather than a free market exchange.

So in a market economy, goods and services may be left unsold, capacities for production may be under-utilised, and workers may be unemployed. It all depends on the market – ie on whether somebody is willing to pay money for them.

For additional workers to be employed, an employer has to be able to make a profit out of employing them, by selling what they produce on the market at a price higher than their wages. If this is possible, then some employer, whether government or private, will do it. But on the other hand, if no profit can be made from employing additional workers, directly or indirectly, then they cannot be employed.

The government can pay them unemployment benefits, and it can call these benefits “wages”, but if the work done does not pay for itself on the market, it is not “employment”, and will require a continuing subsidy from revenue obtained by taxing real employment.

If there were any commodities with guaranteed buyers in a free market, then those commodities would be in short supply and their price would go up until there were no longer guaranteed buyers. That is actually what happens to wages when unemployment falls below a certain minimum. This is perfectly normal and completely unavoidable.

Most proposals for reducing unemployment lose sight of this essential fact. If it was possible to reduce unemployment by some simple measure to increase the number of jobs immediately available, then it would theoretically be possible to eliminate unemployment entirely by pursuing the same measures more vigorously.

However the basic nature of a market economy does not permit that. In fact it regenerates unemployment as part of its normal functioning. “Job creating” measures might work in some other kind of society, where work is done because a job needs doing, rather than because someone is willing to pay for it. But in a market economy, jobs are “created” by the market, and only by the market. Somebody has to pay.

In order to confirm that unemployment really is just the other side of employment and only occurs where work takes the form of wage labour, we can examine some societies which do not have a market economy.

Employment is so “normal” in our society that one tends to take it for granted and to look elsewhere for the explanation of unemployment. So it is worth reminding ourselves that employment and unemployment are characteristic features of only one kind of society – the capitalist or market economy.

Other Societies

Primitive Communism

Savage society was characterised by a primitive form of communism in which people worked together as a tribe. There were no employers and there was no question of finding or losing a job. You could starve to death, or get eaten, but you could not become unemployed. The fact that it’s quite common to hear modern society compared unfavourably with primitive society says something about how disgruntled people are with capitalism. In reality however the life of the “noble savage” (including the Australian Aboriginals) was, as Hobbes famously said, “nasty, brutish and short”. Nevertheless there was absolutely no reason why everybody in the tribe could not work at once. Unemployment was just not a possibility for people living in these societies.

Slave and feudal societies

Slave society marked a considerable improvement, for civilisation, culture and so forth. This was so even for slaves since captives were no longer killed and eaten. There was still no unemployment. Even as recently as feudal society, for most of the population there was no such thing as employment and unemployment. A peasant or serf did not have to find a job. They simply worked the land and engaged in household industry. They could suffer from wars and famines, but not from unemployment. An artisan might have difficulty selling goods, but could not become unemployed. Again, reactionary romantics, including many supposed to be “left”, often look back on the cramped, narrow lifestyle of those times, as though it was some sort of “golden age” compared with modern society.

Modern society based on wage labour has opened up much wider horizons than anything that existed before it. But unemployment is part of the deal. Nevertheless it is a good deal compared with tribalism, or slavery, or being tied to the land.

Freedom to sell one’s labour power on an open market is an enormous advance over previous social systems in which people were born into their jobs and were therefore stuck with them for life. This freedom is the basis for all other freedoms.

However the deal is no longer good enough. We want more freedom and we will have to move beyond a market economy to get it. The current concern about unemployment is just one sign that the social system we have now is no longer good enough.

Future society

In future communist society people will not work for wages, but for social needs, as was the case in primitive communist society. They will not buy their requirements in exchange for money received as wages or profits, but will be given an allocation in accordance with their needs. Again, as in primitive communist society.

Unlike primitive communist society, people will not be ruled by “necessity” but will use their knowledge of natural laws to attain freedom from the blind working of “nature” or “fate”. Work as an obligation, and consumption as a right will not need to be enforced through commodity exchange, any more than they will need to be enforced through tribal sanctions.

Distribution will be “from each according to their ability, to each according to their needs”. The state as an apparatus of coercion will wither away since the government of people will give way to the administration of things. The free development of each will be the condition of the free development of all, and the long dark ages of the pre-history of humanity will have ended.

Science Fiction

It is worth reminding ourselves that this is what the progressive movement is ultimately all about – something that often gets forgotten in the midst of day to day struggles.

Even some science fiction stories take it for granted that humanity is headed towards a sort of communistic society. Sci fi characters tend not to be looking for jobs, receiving wages, or buying things with money. In these stories people do various jobs and obtain supplies of accommodation, food, and other things they need, without buying and selling. Although social relations specific to capitalism are often imposed on sci-fi societies quite inappropriately, there is still no “private enterprise” in many of these visions of future society. Likewise “nations” often seem to disappear.

Needless to say, in such a future society there would be no question of unemployment, since there would be no labour market. Despite this there could be plenty of other problems – just check out the sci-fi literature for examples.

Further along, or for alien life-forms, the very concept of “society” gives way to a single organic whole, where there is no question of distribution “from” or “to” any separate individuals. This reminds us of the way in which single celled creatures first gathered into colonies and then evolved into jellyfish -like creatures and eventually some went on to develop into highly complex organisms.

But returning to the present millennium – communism will still not be a good enough deal once we have it! People will then be ready to demand something along the lines of “From each according to their inclination, to each according to their wildest dreams” – and other more radical proposals.

There will still be struggles and the need for revolutions. We cannot predict what new problems will arise as humanity continues transforming itself and eventually changes into, or gives way to something quite different from the present species.

But unemployment will certainly be a problem over and done with, once employment is over and done with. It is not a permanent problem and one day we will not have to worry about it, just as today in most advanced countries we do not have to worry about starvation.

Coming right back now to the present day, communism is long overdue and we still have unemployment – and it is growing. However in recent times we have actually seen examples of modern societies where unemployment was not a problem. These were societies that had consciously set out on the road towards a communist society and had begun abolishing the market economy. They had no difficulty controlling and then eliminating unemployment. This was despite the fact that they had started with extremely backward economies and first had to deal with even bigger problems such as starvation. There was not any unemployment in the Soviet Union when it was socialist, even at the height of the 1930’s Great Depression.

However today there is unemployment in some sectors of the Soviet economy and labour shortages in others (apparently with an overall labour shortage as existed in most western capitalist economies in the 1960’s.) Since Soviet economists admit there are labour shortages, there must be a labour market, and that implies the shortages will later be followed by surpluses, just as in the West.

In China the connection between a market economy and unemployment is more dramatically obvious. There was no unemployment at all in China from the 1950’s until recently. There may be arguments about how efficiently people were employed, but nobody seriously suggests there was actual unemployment.

Within a few years of the restoration and expansion of market relations (ie since 1977), mass unemployment exceeding 20 million people has become a major social problem. Previously investment was planned and regulated by a socialist state, with each enterprise responsible to the state plan and having no independent right to hire and fire. Now enterprises are “free” to take their own independent investment decisions and to hire and fire while at the same time, workers are “free” to be unemployed.

All this suggests that we must examine every proposal for reducing unemployment, according to its implications for a market economy. Unemployment is a problem specific to capitalism and it is no use looking at solutions that ignore the specific features of market economies. We need to figure out how the labour market actually works in a capitalist economy.

(Next instalment: WHAT “NORMALLY” CAUSES UNEMPLOYMENT?)

Freedom, Privacy AND Transparency

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I wish to thank ‘Tom-b’ for the following post. It is timely because Transparency International has just released a report revealing that almost 80 per cent of the world’s largest multinationals do not adequately report their finances.

* * * *

Transparency is important for freedom. If you don’t know what is going on then you can’t comment on it and definitely can’t make decisions. Transparency allows people to be informed and make informed choices. Today in advanced capitalist countries choices are made based on what the media says or who advertises most.

The president of the USA is decided by who raises the most money. The congressional elections are similar. The recent congress elections were won by the Republicans who until recently had been outspent by the Democrats but this year business was behind the Republicans and gave them in excess of 60% of their donations to the political parties.

It is unfortunate that advertising can move people to vote in a certain way. A proposition in California to monitor insurance price increases was defeated because the insurance companies spent $60 million opposing it. People believe what they read in papers or see on the TV, be it advertisements or opinion pieces.

We can’t be too critical of this occurrence, however, as there is no easy way for people to find out the facts. Everything is hidden in secrecy so you have to assume journalists get it right or politicians are telling the truth. We know neither is true.

We can’t expect people to take responsibility and get involved in decision making if they are excluded from the facts.

Transparency should include everything eventually but needs a starting point. Some people are scared of transparency as they see it as an encroachment on their privacy and freedom. This is a myth created by rich people. If you are not rich you have nothing to hide so should not be so precious about your minimal earnings and wealth. With transparency this fact becomes obvious.

The rich don’t want anyone to know how rich they are and where their money is, let alone the fact that they pay minimal tax, how much money they spend on political parties, etc. Criminals, of course, would not want any transparency.

Income transparency already exists in some countries such as Norway and has for many years. This would be a start. Total transparency of local government could be done now. This would increase efficiency and deter corruption and there is no reason why everyone should not know everything local government does. Government departments, such as health, education, transport, etc, could also be opened up now.

The only people who fear transparency are those who have something to hide!! Unfortunately there are too many people with nothing to hide who think they do have something.

_ _ _ _ _

THE WINDS OF CHANGE – CULTURAL REVOLUTION IN EUROPE AND THE INDIVIDUAL

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Continuing with Tom’s notes…

Gramsci describes as a cultural revolution the period ushered in by the Renaissance and the Reformation. I’d not previously thought of these events, or movements, as cultural revolutions before, but he was right. They sounded the death knell of medievalism and it is worth remembering that the war was protracted, often bloody and characterised by what we have come to realise as historical transformations with their obligatory twists and turns. (This latter point should serve to reassure.)

It was from this cultural revolution that the modern individual arose.

There was a Cultural Revolution (CR) in Europe and it was accompanied by political struggle, war and revolution. It ushered in the modern era. Because of poor historical and theoretical understandings we are content to think that a CR is something that is launched – as it was by Mao in China. Communists in power will indeed launch GPCRs – its surely part of the job description, part of the deal in waging revolution. It is a conscious attempt to push things forward. Prior to this CRs were not prescribed or consciously directed and were more like a dogs breakfast (could do with a better description). They moved forward in fits and starts, often suffering defeats and being impossible to distinguish from the political and social turmoil that spewed it up. A slow moving but unstoppable tsunami, creeping forward here, being held back there, leaving untouched some remnants and swallowing up others. One way of reading Christopher Hill’s histories is through a cultural lens.

From the times of the English Revolution the big bourgeoisie in Britain only recognised a political personality, an individual, if they had property. This itself was clearly reflected in the franchise which, at the time of the revolution, was given to only about 3% of the population, a situation that changed only very slowly due to a franchise version of ‘bracket creep’ rather than reform. Gramsci makes this point regarding recognition in relation to the Catholic Church (no doubt he was right) but my thinking took me to the English Revolution and the rise of the capitalist class in Europe generally. The point is that a person is not worthy in their own sake, but only insofar as one is accompanied by wealth and the power implicit in wealth. The masses (and many pejorative terms exist to describe them) are the counterpoint to the valued, wealthy man of property and they arouse disdain and a strange mixture of indifference and fear. So long as they have no power and are accepting of this, it is the former; when they cease to accept their proscribed role and seek redress, it is the latter.

The primitivist appeal to the state of nature made during the revolution’s century saw man as a rational but isolated, atomized individual, set free from society. The appeal to the individual conscience, the religion of the heart, was ultimately an appeal to changing social norms. (Hill, Change and Continuity in 17th C England p 116). This too is the appeal of Locke’s tabula rasa.

Reactions to the French Revolution and their implications for individuality.

1. “… Semblance, I assert, must actually not divorce itself from Reality. If semblance do – why then, there must be men found to rebel against Semblance, for it has become a lie.” Carlyle, “The French Revolution.”

Marshall Berman’s page on this raises the matter stated by Marx that the dominant ideas of any epoch are those of the ruling class ->
xxxi Burke saw in 1790, before the revolution’s direction was clear, that the Enlightenment – the multitude of “ sophisters, economists and calculators”, had seized the initiative and “extinguished forever” “the glory of Europe”.

“All the pleasing illusions which made power gentle and obedience liberal, which harmonised the different shades of life, and which, by a bland assimilation, incorporated into politics all the sentiments that beautify and soften private society, are to be dissolved by the new conquering empire of light and reason. All decent drapery of life is to be torn off …”

Beautifully written tripe and an admission that the ”whole social system of Europe was essentially a system of lies.” The artifices of ruling class life and the ideological justifications of it were laid bare. Once again the emperor had no clothes – but this time they had been torn off. Semblance had not only become a lie, it had been seen to become so.

This masquerade, as Berman calls it, may well have been subtle for its beneficiaries (here straight jacketing the self expression of those within it) but it was hardly subtle for the peasants or the emerging proletarians. In Britain it was brutal (the Industrial Revolution) although Burke’s prose applies equally to the draperies employed by the capitalist ruling class in Britain as it did for the decadent feudal ones of Europe.

THE EMERGING INDIVIDUAL

a) in England – the role of Puritanism

Hill makes the point that the transition from tribal to village society involved a shift from kinship (blood bond) to neighbourhood – ie, tribalism to feudalism; and that the transition from parish to sect was a shift from local community to voluntary organisation.

Voluntary organisation cannot occur to any significant degree without the existence of self motivated individuals. Today this is everywhere around us. If we exclude work from our reckoning (it is a necessity and as such limits the ground in which voluntary organisation can operate) we see a plethora of activities, clubs, associations and the like which people engage in freely. It covers all classes, ages and tastes and could not occur without freely choosing individuals, all taking responsibility for fulfilling certain of their needs.

The communist movement has struggled with this aspect, that is, the ‘free’ aspect of the individual. A difficulty I see is that the free individual, as he/she emerged from the medieval quagmire, has been associated with the development of capitalism. In other words the free individual has more than likely been one of the ‘industrious sort’ so central and instrumental in the development of capitalism, in England especially (Tawney’s depiction makes this connection a defining characteristic). Bourgeois individualism has ‘form’ and communist movements have rightly identified these social elements (and the economic relations which generate them) as self serving and willing (and needing, more to the point) to exploit others.

This aspect of the individual’s development, while true, is also one sided. And it’s with the other side that we have had trouble understanding, coming to terms with and more importantly, relating to. Berman, in ‘The Politics of Authenticity’ and ‘All That is Solid…’ has, I think, attempted to correct this by focusing on the other side, that which deals with the emergence of the individual due to the development of modernity.
From a different discipline so too has the English Marxist historian Christopher Hill. One of Hill’s great contributions has been his determination to track and expose the development of both sides or aspects of the individual’s development in England from the 16th to the 18th centuries. That is, the individuals connection to bourgeois economic and social development, the aspect that has ‘form’, and the individuals development caused by modernity (although I cannot recall him using that term).

The Levellers wanted to extend voting rights to all adult men with a proprietary stake in the realm. While limited re today’s understanding, this demand was radical and aimed against their class enemy. The bourgeoisie, for its part, successfully sought to deny the common people this right. What is significant about this struggle is that it indicates that two streams of individuality/individualism had emerged – one was that of the bourgeoisie proper and the other that of the common people, the latter being led at this historical stage by the Levellers. (Paine’s ‘Rights of Man’ represent the logical development of the Levellers position.) This latter represents the historical tradition that we need to identify with. Its development took, what we could call, petty bourgeois and proletarian directions; Paine on the one side, Marx on the other. Figures like Goethe and Shelley sit somewhere in between, but much closer to Marx, I think.

Capitalism and modernity are not the same. Each has developed together and each has, within itself, contained the possibility of the other. This is best seen and summed up in the “all that is solid melts into air’” aspect, the dynamism, that is common to both.

By the early 19th C it was becoming possible to clearly distinguish between the two and to see that the development of one frustrated, distorted and held up the development of the other. Marx’s writings were very much concerned with this distinction; indeed he and Engels were key figures in making it. In effect they were saying: I like this part, the dynamism, the restlessness, the urge to develop, which in turn enables the individual to develop; but not this part, the tying of labour in perpetuity to market relations and the exploitation and alienation that goes with this. Marx and Engels spent most of their lives demonstrating that capitalist economic and social development will materially create the conditions where it can be superseded. Where, iow, (in other words) modernity can be fully transformed and shed itself of its capitalist aspect.

b) The 18th C Enlightenment

xiv
‘To be authentic, authentically “oneself”, is to see critically through the forces that twist and constrict our being and to strive to overcome them” In this sense we see Burke as not authentic, just true to his class (see comments on Burke’s take on the French Rev).

We are affected ourselves by the twistings and constrictions as we do this. We may move toward authenticity through willingly taking on (or perhaps even maintaining) other twistings as we identify and seek to overcome or overthrow the main source of that which twists and constricts us. (This needs some thinking through).

p41
The notion of virtue draws a sharp line between the self and society: the self is virtuous only when it surrenders its freedom and submits to the laws of the society that imposes them. Yep; and clearly an important reason for women in particular to not be virtuous. When Berman wrote that sentence – the second is mine – he could not have imagined how prescient it would turn out to be for Muslim women in the late 20th and early 21st centuries.

p16
In the Persian Letters Montesquieu tries to show that no social system can provide human happiness unless it posits – and its Government guarantees, a basic human right: the right of every person to be oneself.
My Comment:
a) this seems self evident as one needs a ‘self’ to get this.
b) the link between this idea and the American Rev, and its emphasis, well developed by the Revolution and crystal clear by the 19th C, on individualism.
c) The floods of migration from Europe to the Americas and a little later to Australia and other areas of the new world indicate a strong drive for economic betterment for family and for self. This often took the form of a sacrifice for one’s children, for the next generation, and it bore fruit. This drive has been overwhelmingly positive and progressive.
d) The self, oneself, is not a static entity. The self evolves, develops according to the constraints and possibilities of the level of social development in a given society. This applies between social systems and within them. This is especially so with capitalism
e) If communists don’t ‘get’ this, respond to it, work with it (not against it) we will be relegated to the margins of history, a curio blip, like a number of historically redundant beliefs and trends.

p22
“The basic question, now, is how much freedom do the members of any state or society have to be the individuals they are – how far, in other words, is human authenticity allowed to unfold?”
Comment: This is historically and socially mediated, constructed even. As ‘they are’, the degree of unfoldingness, is developmental. This also applies within a historical epoch, to movements.
It applies to us on two levels:
1. The general, the historical.
2. The demands, impacts on oneself of the movement, group, whatever.

p31
A repressive society – and this covers all pre capitalist societies and non democratic capitalist societies – creates a radical gap between people’s social identities (the roles they are forced into) and their real selves/identities. Personal identities must therefore be achieved. People cannot be themselves within the system but must strive to become themselves in spite of the system. This can take private, even mystical forms (see above) where the contradiction is maintained and where, therefore, authenticity cannot be achieved; or against the system. Here people cannot be themselves within the system and strive to become themselves against the system. Thus, Berman argues, revolt is the only mode of authenticity a repressive society allows (a variant of where there is oppression there will be resistance to that oppression, where our true nature is oppressed, revolt is inevitable).

The theory of revolution grows out of, and develops alongside, the idea of authenticity. This is consistent with our revolutionary history going back to the English Revolution. The question is: how well have proletarian parties, especially the successful ones – Bolsheviks, CCP being foremost – fulfilled this – or sought to fulfil – within the boundaries of what was historically and socially achievable? Within the west I think we’ve been mainly bench warmers and not players. Revolutions in the undeveloped economies led by communist parties present a more complex picture. With 80/90% of the population in China, for example, being peasant and where feudal practises, ideas and habits predominated, the communists had to work with the raw materials at hand and an emphasis on a collectivism that downplayed individuality was probably inevitable and necessary. (This did not mean that individuality did not develop – it did, in leaps and bounds – but that this aspect was not overtly promoted.) What I find disappointing is the lack (or maybe it’s an apparent lack?) of theoretical material from either the CCP or the Bolsheviks that laid the realities on the table in such a way that indicated that they knew the growth of the individual was an important goal, and a Marxist one to boot, but that circumstances did not allow them to focus on this. This distinction, the rationale, does not strike me as complex or beyond the ability of most people to ‘get’. That there does not appear to have been much written about this indicates that it was not seen as a problem. This reinforces my hunch that there is a deep ambivalence about the individual/individuality in revolutionary movements generally that has been dealt with through avoidance and a one-sided focus on notions of collectivism.

p36
A comment on the romantic yearnings for an idealised, Arcadian past. What is yearned for is an equality of a simple, static, face to face agrarian economy based on scarcity and frugality.
And this is what makes it a reactionary yearning – it looks to the past, an idealised and non-existent one at that – and posits it as the future. Its most modern form can be seen amongst extremist greens and Islamic fundamentalists like the Taliban. It certainly had a presence in the English Revolution and re-emerged as a current of the Romantic movement which coincided with and responded to the Industrial Revolution.
We, however, envision, as Berman states, equality (and authenticity) within an urban, dynamic economy based on growth and abundance. And Amen to that!

p85
Montaigne: (16th C) Nothing within the range of human experience was alien to him – anticipating Marx in the 19th who was no doubt paying tribute when he said it.

Rousseau’s alienation:
was self alienation. This was new. Rousseau: “they transform themselves into totally different men” (Confessions); in other words, the source of this alienation was men themselves. Philosophers had hitherto enjoined people to “know thyself”. Rousseau deepened this – not just to know, but to be oneself. His Confessions were aimed to bring his authentic self into being. The injunction to know oneself assumes a core self, an inner reality that, while masked, shrouded, hidden beneath layers of socially prescribed falsities (hypocrisies, two facedness) existed and was ready for development. The idea of a true self/false self dualism fits into this. Rousseau’s idea was much more radical. He posited that the inner self itself was a problem – that the self was only potentiality, something yet to be attained.

While stripping away the layers of the false self was a valid ‘work in progress’, the more important task was the actual creation of the self – a ‘work in progress’ from go to woe.

“It is no longer necessary for the self to go back into the past to search for its source. Its source is here and now, in the present moment”. This is a radical idea and one picked up within the psychotherapy field in the last century. Its truth, its value needs to be counter-posed to the observation made by Marx: “we suffer not only from the development of capitalist production, but also from the incompleteness of that development. Alongside modern evils, a whole series of inherited evils oppress us, arising from the passive survival of antiquated modes of production, with their inevitable train of social and political anachronisms. We suffer not only from the living but from the dead.” Capital 1 13. Together these views form a dialectical whole.

p88
“…Rousseau showed how all the modes of personal identity – both traditional and modern – were actually modes of depersonalization, stumbling blocks which kept the individual self from coming into its own.” Marx would not have a problem with this.
“Servitude is so unnatural to man” writes Rousseau in Julie, “that it could not exist without some discontent”. He is grappling with a truth (let’s leave aside the unnatural bit as this is both true and untrue) that Mao was able to articulate in full force 200 years later – it is right to rebel against reactionaries.
p102
Rousseau comments on his experience of servitude when, as a young man he was employed by the Countess de Vercellis. “She judged me less by what I was than by what she had made me; and since she saw in me nothing but a lackey, she prevented me appearing to her in any other light.” “But” continues Berman, “he himself had collaborated in the falsification, by acting as if her image were true.”
This objectification, and creation of a demeaned other in the process, continues today in all areas of life. What is different is that the individual has assumed centre stage and demands expression in ways unimaginable 250 years ago. How the individual exists or is portrayed in media etc – their central role in soaps, for example, are indicators of this development. While the ‘making’ aspect still applies it is now done much more consciously (because there is no other solution). This needs more teasing out………
p103
That the Countess could have this effect underscored to Rousseau that he needed recognition – that he could be himself only to the degree that his self identity was confirmed by others. That which they did not recognise he could not assert. To Rousseau this suggested that others could mould people into whatever shape one wanted, and in a traditional hierarchy this power was held by the hereditary ruling classes – those at the bottom were forced to define themselves according to the terms dictated from above.
While this seems obvious, Rousseau’s conclusions came from a very personal experience via an examination of self. His conclusions indicate that he already had a well established self capable of self reflection and autonomous action. His ability to be self analytical and to resist sprang from that well.
It also indicates that resistance to ruling class pressure that distorts identity a la Rousseau’s experience begins in the individual (there must be formed individuals of which modern societies generate by the truck load) and then taken to a mass arena.
Another take on this: OK, so one can be moulded by the ruling class; this is old news. The interesting bit is the resistance. This was based upon the existence of an autonomous self, who drew the lessons and grew in strength. Today we are a much harder bunch to mould. The autonomous individual is churned out by the truck load. But this means that ‘we’ or, rather, ‘they’ will resist being moulded by us too. If we pigeon-hole whole bunches of people along simplistic class lines without recognising and respecting their individuality, we will be making a rod for our own individual and collective back.
Another aspect here springs from our social nature. We define ourselves in relation to the other. Developmentally the self is created through the interplay of the infant/child and external ‘objects’/subjects. Without recognition there is no self and therefore no individual. The question is not whether recognition is needed, but from whom/what and with what aim.
p114
Traditional societies pigeon hole people; their identities are ascribed and fixed within very narrow limits
Modern societies enable identities to be achieved and transcended. Limits, roles are transcended regularly and to such a degree we barely notice. Your average Joe at work transcends himself out of work – is he a junior sports coach, team manager, assistant this or that, the secretary of a club, an amateur whatever, a blogger etc. How about a revolutionary? Now, that’s a novel idea!
Modern society has made it possible for the first time in our history for people to be themselves, to define and create their lives as they see fit, to create lives authentically their own. And modern capitalist society both enables and prevents this.

p129
Cultural authoritarianism of the 18th C – Berman mentions the political Newtonian physics, used to promote ideas of clockwork perfection in science, everything in its place etc and neo-Classicism in the arts – was aimed at accustoming people to submit to fixed, eternal rules, externally imposed, closed to scrutiny… It’s an interesting idea – a defacto, partial, ideological united front between a decaying French feudalism and an ascendant British capitalism. The point of unity was the need for social stability. The British ruling class was largely successful in this quest because they had had a revolution; their French counterparts were not because they hadn’t. It’s also a consequence of the ER being forcibly stopped where it was. As social/economic developments continued to gather pace, the ruling class was attracted to and also had a need, to dust off ideas of stability and of permanently fixed social roles that they had challenged so successfully when the feudalists held sway.
This following quote has relevance for today:
By teaching to order and evaluate their experience according to received conventions, culture was depriving them of their strongest weapon against political oppression and social exploitation: their sense of self.
This was made regarding Rousseau’s evaluation of pre revolutionary France, albeit a Paris in the early throws of modernity. But the comment regarding culture stands alone. Culture that draws its authority from a closed and oppressive past cannot prepare or aid its members to negotiate the permanently turbulent waters that modernity throws up. For such cultures, the future has already happened and all it does is prepare people for another round of the same.

p131
Rousseau saw modernity as possessing a paradoxical character: “as both the nadir of man’s self alienation and, simultaneously, the medium for his full self-liberation.” Yep, got it in one – well, almost. Seeing it as a paradox denies its dialectical nature although it is unfair to be critical of Rousseau here as he precedes Hegel. He deserves our gratitude for seeing both aspects of this ‘paradox’ which, as an 18th C thinker puts him one up on most the left thinkers of the following two, for, with notable exceptions, only one aspect or the other has been focused upon and only very rarely has their dialectical nature been understood. The left has been particularly guilty of this as it is they who have claimed the mantle of Marx’s critique. This includes the revolutionary left as well as the reformist.

pp158-9
Some interesting ideas here:
To overcome self alienation Rousseau understood that this (modern) social system (although I don’t think he understood it as capitalist), in the course of its own development, had created a mode of consciousness that was capable of transcending it. (He gets a cigar for this very profound insight). Re this, Rousseau drew upon his view that modern men inherently strove to transform their thoughts into practise (another cigar) and that, therefore, their alienation could be overcome via their consciousness being transformed into self consciousness (half a cigar because of the link to individuality and autonomy). In this way they may be able to solve their personal and social problems through reforms from within (no cigar). He hoped “to draw from the evil itself the remedy that can cure it.” (A dialectical view, but not a sophisticated one – a few puffs on somebody else’s cigar for this one).
It seems to me that Rousseau is swinging between idealist and materialist frameworks, anticipating, in some ways, Hegel. His dialectical thinking comes close, but there is no cigar because he is unable (by nearly a century) to link his observations and analysis of modernity to the economic relations driving it. Without this the slide into idealist solutions becomes seductive.

(to be continued)…

Capitalism Bad for Economic Growth

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Government funding of research, development, demonstration and initial deployment (RDD&D) needs to increase dramatically. We need real breakthroughs in a raft of areas. Energy, agriculture, medicine and new materials come immediately to mind.

The following post is from David McMullen* :

* * * *

The slowness of technological progress is an issue that a genuine left can grab and run with. This interview with Peter Thiel co-founder of PayPal in the MIT Technology Review entitled ‘Technology Stalled in 1970’ highlights some of capitalism’s failures in this regard. He believes that technological progress has been stagnant for decades, that we need technologies that take us to the next level. We need flying cars not just Twitter or Facebook.

He says that large successful companies benefit from things not changing:

“You have to think of companies like Microsoft or Oracle or Hewlett-Packard as fundamentally bets against technology. They keep throwing off profits as long as nothing changes. Microsoft was a technology company in the ’80s and ’90s; in this decade you invest because you’re betting on the world not changing. Pharma companies are bets against innovation because they’re mostly just figuring out ways to extend the lifetime of patents and block small companies. All these companies that start as technological companies become antitechnological in character. Whether the world changes or not might vary from company to company, but if it turns out that these antitechnology companies are going to be good investments, that’s quite bad for our society.”

Ted Nordhaus and Michael Shellenberger from the Breakthrough Institute in this article point to the overwhelming role that government has played when it comes to developing general purpose breakthrough technologies.

Examples include computers, the Internet, jet engines, satellite communications, fracking technology, nuclear power and gas turbines. Indeed, all the important feature of the Apple iPhone were the result of Department of Defense funded research. They also make the point that 80 per cent of economic growth comes from innovation.

They say that capitalists generally do research and development on the less important stuff:

“Firms still spend a lot on research and development in the aggregate, but it is mostly spent on incremental product or process innovations, not long-term research to develop new disruptive technologies with the potential to radically transform existing markets and create entirely new ones.”

Government funding of research, development, demonstration and initial deployment (RDD&D) needs to increase dramatically. We need real breakthroughs in a raft of areas. Energy, agriculture, medicine and new materials come immediately to mind.

Hammering this point should allow us to hit out at both the free-market utopian-capitalists who think that the market can deliver everything and the pseudo left who simply hate technology.

We can also point out how this extremely critical aspect of economic development and human progress is often undertaken wastefully in the current social order. There is always gaming and corruption among researchers as they scramble to get their slice of the funding cake and further their careers. Such important activity would be better performed in a society where people are sufficiently at one with the world to simply do the right thing.

* David’s blog is The Economics of Social Ownership.