To each according to their needs…

The principle of distribution under communism is: from each according to their ability, to each according to their needs. The separation of work performed and income is clear. However, there is misunderstanding on what is meant by ‘to each according to their needs’.

David McMullen elaborates…

Europe did the world a favour

“Marx recognized the dual character of western expansion. He was disgusted by European barbarity and hypocrisy, but he also saw their marauding as the means of eliminating the fast frozen backward conditions that prevailed in the rest of the world. It was necessary if the world was to move forward. In particular communism could not have emerged out of these backward conditions”

 

– David McMullen

 

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Are property rights essential to prosperity and liberty? The ‘No’ case.

This is a presentation by socialist economist David McMullen at a Melbourne Argument debate at the Royal Oak Hotel, North Fitzroy, Melbourne, on February 8, 2017. His opponent was Ted Lapkin, a former adviser in the Abbott government.

Private Property Rights are Essential not only to Economic Prosperity but to Political Liberty – The No Case

February 12, 2017 via Different Wavelength

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When looking at economic prosperity and political liberty, the private property rights we are concerned about are the ownership rights of the capitalist class over the means of production or productive assets. We are not arguing about private property rights over items of consumption. So I acknowledge everyone’s right to their own toothbrush.

What I want to contend is that in the future we will get by very nicely without private ownership of the means of production. We will do this by creating a class free society where the means of production are socially rather than privately owned. This will free the economy of the many shackles placed on it by capitalism and at the same time create a society that requires the fullest political freedom for its proper functioning.This future system is generally referred to as communism.

OK why do I take this singularly unpopular position which everyone knows has been totally discredited? Well, I subscribe to the Marxist view that capitalism creates the conditions for this new more advanced system.In a nutshell, capitalism eliminates the need for the profit motive and hence the need for its own existence. It does this through the creation of modern industry and technology which open up the prospect of universal prosperity, and of robots and computers doing all the work that we really don’t want to do. Under these new conditions we can begin to imagine people working because they like what they are doing and they want to contribute, while at the same time being happy with an equal share of an increasing level of prosperity. In other words we can see social ownership having a totally different and better form of motivation than the profit motive that is associated with private ownership.

This means that what was previously impossible becomes possible.Past history already tells us that sharing poverty and laborious work is impossible. You cannot create equality under those conditions. It is a utopian dream. For example, as the Middle Ages illustrate it only requires a small band of thugs who would prefer to live off everybody else’s hard work and you end up with a very nasty class society. Also when assessing the experience of the Soviet Union, and the various regimes derived from it, it is important to keep in mind their backward economic conditions as a factor in determining how things turned out there.

Now, favorable economic conditions presently only exist in the rich countries where less than 20 per cent of the world’s people reside. What about the rest of the world? It looks like it is going to take a number of generations for them to develop. It is hard to be any more definite than that. However, I would suggest that the prospects are best if there is a healthy global economy and a willingness to provide well directed economic aid and also to offer diplomatic and military assistance to those resisting the forces of tyranny and corruption.

Anyway, why do I consider that social ownership will bring greater economic prosperity and progress? There are five reasons that strike me as being particularly important.

  1. Firstly capitalist firms cannot match the work performance that would be achieved where workers unprompted want to do the job to the best of their ability.Capitalist firms have to apply various rewards and penalties to get their employees to do their bidding. However, if a job is in any way complex it becomes difficult to correctly assess how well people are doing their job. And jobs are becoming increasingly complex so this is becoming more and more of a problem.
  2. Secondly once we get rid of private ownership and private debt we will also get rid of economic crises, stock market crashes, bank collapses and extended periods of depressions or recessions that lead to unemployment and reduced production.
  3. Thirdly we will get rid of the waste of human labor that Marx called pauperization where a large number of people are thrown on the scrap heap and survive on welfare. They are not equipped to develop work skills or they are psychologically maimed from living in this society.
  4. Fourthly, we will not have capitalism’s sluggishness in terms of what are arguably the main drivers of economic progress, namely,science, research and development, and technological innovation. There are a number of reasons for capitalism’s lack of vigor in this area. If I can beg your indulgence I will list six that I am aware of. Firstly, capitalists are not interested in major technological breakthroughs that will make their present investments less valuable or even obsolete. They just want incremental improvements that increase their value. Secondly, benefits from spending on R&D are long term but capitalists tend to have a short term perspective. Thirdly because of the public good nature of new knowledge, firms cannot capture all the benefits and so underspend on it. Fourthly, where intellectual property right laws are applied, access to knowledge is restricted. Fifthly, government funding for R&D is the first thing to go when there are government budget cuts. And also there is huge wastage as researchers game the funding system and personal prestige and career take precedence over outcomes. And sixthly, capitalism generates an anti-technology and anti-science attitude among the alienated masses. People see the modern industry created by capitalism as the problem rather than capitalism itself. We have people whose livelihood is threatened by new technologies. And there are the greenies who have a romantic view of the pre-industrial past.
  5. Now the last but by no means least on my list of capitalism’s economic problems that will be overcome under communism is what economists like to call government failure.Capitalism tolerates a lot of bureaucracy and regulation.Much of it is devoted to catering to the needs of vested interests in ways that harm the economy. Vested interest is just another term for private property. And as well as this there is of course empire building by career minded bureaucrats.

OK those are my arguments for why I think that private ownership of the means of production is a fetter on the economy. Now I want to address what I think are the two main arguments against what I’ve been saying. Firstly, we are told that social ownership would require excessive centralization and secondly that you can’t change human nature.

Economists argue that all this well-intentioned motivation would come to very little because an economy based on social ownership has an inherent economic calculation problem: in the absence of market transactions between enterprises it could not have a properly functioning price system. And as a consequence social ownership would require clumsy centralized resource allocation of the kind that existed in the Soviet Union. I am not going to speculate on how economic decisions will be made in the future under communism. However, we can say that there is nothing about the non-market transfers of custody over components from producer to user enterprises that would prevent them from making decentralized decisions based on prices. Furthermore, we could hardly do a worse job of allocating investment funds than do highly fluctuating interest rates and exchange rates produced by capitalist finance. Indeed, there are good reasons for thinking that economic decision-making would be far superior to that under capitalism. To begin with, because of the absence of ownership barriers, there would be far more scope for coordination, and less scope for secrecy and deception.

Human nature and mutual regard

Now what about human nature? A society based on social ownership requires far more than simply state ownership, although that is a prerequisite. There need to fundamental changes in people’s behavior and abilities.

The behavior change can be best summed up in the expression ‘mutual regard’.You do the right thing because you want to contribute and you know that your efforts are not futile because a large and increasing section of society is doing likewise. As well as being the basis of morality and what is considered honorable it is also enlightened self-interest. By everybody serving others we are all served. This altruism is not the self-denial that Ayn Rand made it out to be.

Many would doubt the ability of rank and file workers to do the complex kinds of work required in the future. However, I would suggest that people have greatly untapped potential. There are many ways that they are presently held back or find themselves unchallenged.

The kinds of changes we are talking about here will not happen overnight. There will have to be a transition period that will take a generation or more and is generally referred to as socialism. It will take time to totally eliminate private ownership, starting with the big fish, and it will take time to move completely away from the old capitalist work incentives. And it won’t be smooth sailing. Good behavior will only win out once the good majority gain the confidence and moral courage to stand up to those who behave badly. And there will be lots of old management types trying to run things in the old way and convincing workers that the new ways are futile. So it will be touch and go for a while and we may need more than one stab at it.

Now let’s look at political liberty

With the emergence of capitalism we have seen for the first time a degree of political liberty. We have constitutions limiting the power of government, we have elections, the separation of powers, habeas corpus. These would have been unimaginable in the Middle Ages or in any other pre-capitalist society.

The main problem however is that the capitalist system tends to abandon political liberty in times of crisis. Also a big test of political freedom is our freedom to confiscate the means of production from the capitalists and convert them into social property. In the face of a serious revolutionary movement one would expect to see states of emergency, unofficial death squads, and well-resourced propaganda campaigns spreading fascism and xenophobia.

Historical accidents

What conclusions should we draw about the lack of democracy in the so-called communist bloc countries? The Soviet Union etc? The first thing to note is that we dealing with an historical accident. By virtue of some rather specific or contingent circumstances,communists found themselves in charge in countries that with few exceptions were economically and socially backward, and totally unsuited to undertaking a communist revolution. Also, the regimes did not arise as a result of popular support for communism. In the revolutions in the Soviet Union and China the primary concern of the peasant masses was nothing more than land reform. In Eastern Europe the regimes were due to the arrival of the Soviet Red Army at the end of WWII rather than popular revolutions. So I think it is safe to say that these regimes would not have survived if they had been democratic.

However, it is important to keep in mind the alternative in most cases was right-wing tyranny rather than democracy. And of course these regimes eventually lost the minimal revolutionary content they may have originally had.So their authoritarian nature could no longer be blamed on communists. Instead we just had phonies like Vladimir Putin who pretended to be communists until the collapse of the Soviet Union and we presently have people like Xi Jinping in China who still pretend to be communists. The take-home message here is that the conditions were very different from what we would expect in the future when revolutionary regimes come to power in highly developed societies on the back of widespread support for their political program.

Freedom of speech

Now, the economist Milton Friedman famously argued that freedom of speech and the emergence of diverse political groups require the decentralization of resource ownership that only capitalism can deliver.He argued that under capitalism you have the possibility of finding a rich patron. Marx and Frederick Engels and the Bolsheviks received money from anonymous benefactors as well as from robbing banks. Under social ownership, however, resources would be centralized in the hands of the very authorities that you may want to criticize. However, I would argue that with everyone having very high disposable incomes and access to the Internet you would not have to rely on central authorities providing resources. Also I do not see any insurmountable obstacles to ensuring open access for various resources needed for a vibrant political life.

I do not want to paint too rosy a picture.A revolutionary government during its initial phase may have to declare a state of emergency if there is a rebellion by supporters of the old order. Their rebellion could take the form of civil war, terrorism and sabotage, and dealing with it will not be easy. At the same time, for success, we will need the freedom to criticize those in positions of authority when they display incompetence or lack of revolutionary politics. Bottom up supervision will be a critical part of the system. Indeed, a social system that relies on people taking the initiative without external prompting, could not function if people are not able to say what they think is wrong and what they think should be done about it.

Summing up

I will now make two points to briefly sum up.

Firstly, capitalism creates the very economic conditions required for a more advanced classless society that will be based on social ownership of the means of production.

Secondly, a primary task for the present period is ensuring economic and political progress in the more backward regions of the world. For this we need a liberal global economic order, well directed economic aid, and diplomatic and military support in fighting the battle for democracy. And critical to this is beating back the nationalist anti-globalist wind that is blowing at the moment.

 

The battle for democracy

David McMullen wrote a very good post last month at his new site, Different Wavelength, and has given me permission to republish it below.

Among the best sites for keeping tabs on democratic progress or otherwise are:

Freedom House

Human Rights Watch

Reporters without borders

Amnesty International

Electronic Frontiers

Transparency International

(Let me know of any that should be added to the list!)

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We have had quite a bit of progress on the democratic front in recent decades although there are still some very big and serious challenges.

Let us look first at the progress. Latin America is no longer run by military dictators and they are becoming the exception in sub-Saharan Africa. Then of course there is eastern Europe where most countries are now democracies.

However, the picture is still pretty grim when we consider the continuing extent of tyranny.

In Russia, democracy is more formality than substance and most the other states of the former Soviet Union are rather dodgy or downright nasty.

China is a police state. Dissidents are jailed. The Internet as we know it does not exist. Lots of western news sites are blocked. There is no Facebook, Twitter or YouTube. And they employ an army of censors taking down anything taboo. And by the way, North Korea only exists because of Chinese support.

Then we have the Middle East. It has more than its fair share of tyrannies and authoritarian governments. At the risk of seeming perverse, I would suggest that the present civil war in Syria could indeed be a bright spot on the democratic front. This will depend on the Western powers recognizing that their inevitable intervention can only end the civil war if it brings democracy.

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Marx Supported Capitalist Globalization

Even the most rabid anti-communists acknowledge that Karl Marx got it right in his understanding and prediction of ‘globalization’, how the economies of the world would industrialise and become increasingly integrated.

 

proletarians-walter-crane

 

“All that is solid melts into air” applies to the nation state as much as to the old feudal system that was overturned by the revolutionary bourgeoisie. Then, as now, reactionaries fought hard to keep things ‘solid’ but leftists welcome the globalizing changes that bring human beings closer together through amazing technological advances in transport and telecommunications.

There is an Index that follows the patterns of globalisation in our time: DHL Global Connectedness Index.

David McMullen has just added a new article to the Communist Manifesto Project that shows how Marx supported globalisation. Thanks to David for permission to republish it here.

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Today’s “Marxists” share with the rest of the pseudo left an opposition to capitalist, indeed any, globalization. This puts them totally at odds with Marx. The following quote from The Communist Manifesto leaves no doubt about Marx’s pro position:

The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country. To the great chagrin of Reactionists, it has drawn from under the feet of industry the national ground on which it stood. All old-established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries, whose introduction becomes a life and death question for all civilised nations, by industries that no longer work up indigenous raw material, but raw material drawn from the remotest zones; industries whose products are consumed, not only at home, but in every quarter of the globe. In place of the old wants, satisfied by the production of the country, we find new wants, requiring for their satisfaction the products of distant lands and climes. In place of the old local and national seclusion and self-sufficiency, we have intercourse in every direction, universal inter-dependence of nations. And as in material, so also in intellectual production. The intellectual creations of individual nations become common property. National one-sidedness and narrow-mindedness become more and more impossible, and from the numerous national and local literatures, there arises a world literature.

The bourgeoisie, by the rapid improvement of all instruments of production, by the immensely facilitated means of communication, draws all, even the most barbarian, nations into civilisation. The cheap prices of commodities are the heavy artillery with which it batters down all Chinese walls, with which it forces the barbarians’ intensely obstinate hatred of foreigners to capitulate. It compels all nations, on pain of extinction, to adopt the bourgeois mode of production; it compels them to introduce what it calls civilisation into their midst, i.e., to become bourgeois themselves. In one word, it creates a world after its own image.

Then in a letter to Engels of October 8 1858 he wrote:

The proper task of bourgeois society is the creation of the world market, at least in outline, and of the production based on that market. Since the world is round, the colonisation of California and Australia and the opening up of China and Japan would seem to have completed this process.

In his other writings, Marx supported Europe’s colonial conquests, the “process” that got globalization going. In his view Europe was the only source of capitalism which in turn was the necessary precursor of communism. Support for this historical necessity did not prevent him from expressing his disgust at the barbarity and hypocrisy of the Europeans as they went about this conquest nor was he impressed with the tardy pace at which the old societies were being replaced by the new. What he was doing was recognizing that capitalism has a dialectical or contradictory nature. Only capitalism can create the conditions for its own demise. You have to support it in order to oppose it. In “The British Rule in India” New York Daily News of June 25, 1853, he wrote:

These small stereotype forms of social organism [autonomous villages] have been to the greater part dissolved, and are disappearing, not so much through the brutal interference of the British tax-gatherer and the British soldier, as to the working of English steam and English free trade. Those family-communities were based on domestic industry, in that peculiar combination of hand-weaving, hands-spinning and hand-tilling agriculture which gave them self-supporting power. English interference having placed the spinner in Lancashire and the weaver in Bengal, or sweeping away both Hindoo spinner and weaver, dissolved these small semi-barbarian, semi-civilized communities, by blowing up their economical basis, and thus produced the greatest, and to speak the truth, the only social revolution ever heard of in Asia.

Now, sickening as it must be to human feeling to witness those myriads of industrious patriarchal and inoffensive social organizations disorganized and dissolved into their units, thrown into a sea of woes, and their individual members losing at the same time their ancient form of civilization, and their hereditary means of subsistence, we must not forget that these idyllic village-communities, inoffensive though they may appear, had always been the solid foundation of Oriental despotism, that they restrained the human mind within the smallest possible compass, making it the unresisting tool of superstition, enslaving it beneath traditional rules, depriving it of all grandeur and historical energies. We must not forget the barbarian egotism which, concentrating on some miserable patch of land, had quietly witnessed the ruin of empires, the perpetration of unspeakable cruelties, the massacre of the population of large towns, with no other consideration bestowed upon them than on natural events, itself the helpless prey of any aggressor who deigned to notice it at all. We must not forget that this undignified, stagnatory, and vegetative life, that this passive sort of existence evoked on the other part, in contradistinction, wild, aimless, unbounded forces of destruction and rendered murder itself a religious rite in Hindostan. We must not forget that these little communities were contaminated by distinctions of caste and by slavery, that they subjugated man to external circumstances instead of elevating man the sovereign of circumstances, that they transformed a self-developing social state into never changing natural destiny, and thus brought about a brutalizing worship of nature, exhibiting its degradation in the fact that man, the sovereign of nature, fell down on his knees in adoration of Kanuman, the monkey, and Sabbala, the cow.

England, it is true, in causing a social revolution in Hindostan, was actuated only by the vilest interests, and was stupid in her manner of enforcing them. But that is not the question. The question is, can mankind fulfil its destiny without a fundamental revolution in the social state of Asia? If not, whatever may have been the crimes of England she was the unconscious tool of history in bringing about that revolution.

In “The Future Results of British Rule in India” New York Daily News of August 8, 1853, he wrote:

England has to fulfill a double mission in India: one destructive, the other regenerating – the annihilation of old Asiatic society, and the laying of the material foundation of Western society in Asia.

He expressed a similar view when writing about Britain’s beastly treatment of China. So that in “Revolution in China and In Europe”, New York Daily News, June 14, 1853 we read:

It is almost needless to observe that, in the same measure in which opium has obtained the sovereignty over the Chinese, the Emperor and his staff of pedantic mandarins have become dispossessed of their own sovereignty. It would seem as though history had first to make this whole people drunk before it could rouse them out of their hereditary stupidity.

and then:

All these dissolving agencies acting together on the finances, the morals, the industry, and political structure of China, received their full development under the English cannon in 1840, which broke down the authority of the Emperor, and forced the Celestial Empire into contact with the terrestrial world. Complete isolation was the prime condition of the preservation of Old China. That isolation having come to a violent end by the medium of England, dissolution must follow as surely as that of any mummy carefully preserved in a hermetically sealed coffin, whenever it is brought into contact with the open air.

In an article published in the Deutsche-Brüsseler-Zeitung No. 7, January 23, 1848, Engels expressed his delight at America’s victory in the war with Mexico and the conquest of California, Texas and areas in between. In their footnotes the editors at Progress Press in Moscow try to make out that both Engels and Marx later took a different view. They cite an 1861 article by Marx called “The Civil War in North America”. Here Marx mentions how expansionism at the time was driven by the slave owners. Although he makes no actual mention of the Mexican-American War. In hindsight we can see that one good thing about the annexations was that they contributed to the outbreak of the Civil War which the slave-owners went on to lose. Their attempt to spread slavery to the new territories was the last straw. And we can now say without fear of contradiction that capitalist development greatly benefited from the switch in sovereignty. Here is a link to the 1861 article. It is no use on the Mexican-American War but it is a very illuminating exposition of the expansionist threat posed by the slave states and a very good argument against British “neutrality”.

Marx was quite unsupportive of rebellions by reactionary or backward elements in colonial societies. These included the Taiping Rebellion in China and the Indian Mutiny.

In “Chinese Affairs” Die Presse, No. 185, July 7, 1862, Marx has nothing positive to say about the Taiping Rebellion that rocked southern China from 1850 to 1864

They have no slogans. They are an even greater abomination for the masses of the people than for the old rulers. They seem to have no other vocation than, as opposed to conservative stagnation, to produce destruction in grotesquely detestable forms, destruction without any nucleus of new construction.

“Marxists” have tried to tell a different tale. Over at The Marx and Engels Internet Archive they have a section entitled Articles on China 1853 – 1860. It has other articles that deal with rebellion but not the Die Presse article for copyright reasons. In their introduction they paint the Taiping in glowing colors:

At the same time, the Taiping rebellion broke out in 1850 and attacked the status quo Confucianist Manchu Dynasty — which had ruled since 1644. The rebellion was based in social revolutionary ideas of equality and was popular among the masses. It abolished private property, established sexual equality, and banned drugs (from alcohol to opium). By 1853, it dominated much of SE China. It would not be until 1864 that the Taiping capital of Nanking was captured by the imperial Manchu government.

Progress Press also have this rather gratuitous footnote in Volume I of Capital:

In 1850-64, China was swept by an anti-feudal liberation movement in the form of a large-scale peasant war, the Taiping Revolt.

The fairly uncontroversial Wikipedia entry on the Taiping Rebellion gives a far less flattering picture.

There is also an attempt to paint the Indian Mutiny as a national liberation movement. The Soviet Foreign Languages Publishing House in 1959 brought out a collection of articles by Marx on the Indian Mutiny entitled The First Indian War of Independence, 1857-1859. Also the The Marx and Engels Internet Archive has a web page entitled The First Indian War of Independence (1857-1858)
Marx does not explicitly repudiate the Mutiny in the way that he did in the case of the Taiping Rebellion. However, the total absence of any explicit statement of support is just as telling. He is very concerned to expose British military incompetence and brutality. He is also pleased by the financial and political strain it is placing on Britain. But that is as far as it goes. It is hard to imagine him supporting a pack of princes who wanted to reinstate the Mogul empire after what we know about his view on the role of the British in India.

The editors of Progress Press were also embarrassed by an article by Engels called “French Rule in Algeria” (The Northern Star January 22 1848). Here he wrote:

Upon the whole it is, in our opinion, very fortunate that the Arabian chief has been taken. The struggle of the Bedouins was a hopeless one, and though the manner in which brutal soldiers, like Bugeaud, have carried on the war is highly blameable, the conquest of Algeria is an important and fortunate fact for the progress of civilisation. The piracies of the Barbaresque states, never interfered with by the English government as long as they did not disturb their ships, could not be put down but by the conquest of one of these states. And the conquest of Algeria has already forced the Beys of Tunis and Tripoli, and even the Emperor of Morocco, to enter upon the road of civilisation. They were obliged to find other employment for their people than piracy, and other means of filling their exchequer than tributes paid to them by the smaller states of Europe. And if we may regret that the liberty of the Bedouins of the desert has been destroyed, we must not forget that these same Bedouins were a nation of robbers,—whose principal means of living consisted of making excursions either upon each other, or upon the settled villagers, taking what they found, slaughtering all those who resisted, and selling the remaining prisoners as slaves. All these nations of free barbarians look very proud, noble and glorious at a distance, but only come near them and you will find that they, as well as the more civilised nations, are ruled by the lust of gain, and only employ ruder and more cruel means. And after all, the modern bourgeois, with civilisation, industry, order, and at least relative enlightenment following him, is preferable to the feudal lord or to the marauding robber, with the barbarian state of society to which they belong.

Progress Press in its footnotes refers to this resistance as a liberation struggle. They also then claim that in an 1844 article Engels had made commendable noises about the resistance and that an article “Algeria” written for the New American Encyclopaedia in 1857 reverses the position expressed in the 1848 article. There is nothing in either article that can be construed in this way. An editor’s footnote to the latter article claims that the relevant material was left out by the encylcopaedia editors and this is conformed by a letter from Engels to Marx on 22 September 1857. The letter shows nothing of the sort. The reader is invited to read those three pieces to make up their own mind.

These views of Marx are not at odds with support by communists for the 20th century anti-colonial movement. By that stage the movement was primarily lead by western educated elements who sought to modernize their countries rather than take them backwards. Although there were some oddities such as Mahatma Gandhi, and independence brought many monsters like Idi Amin in Uganda and Mobutu in Zaire, and the whole process was badly affected by the Cold War.