Book review: ‘Radicals’ – struggle between the lines pushed things forward

Here is my review of ‘Radicals’ by Meredith Burgmann and Nadia Wheatley, just published in the Melbourne Labour History Society’s newsletter ‘Recorder’ (July 2021, No 301).

What is capitalism and why should we be against it? – panel discussion featuring Rory Dufficy, Arthur Dent and Rjurik Davidson, Melbourne 22 May 2021

On Saturday, May 22nd, 2021, the Melbourne chapter of the Platypus Affiliated Society hosted an in-person panel discussion at the Clyde Hotel in Carlton, Australia on the question: “What is Capitalism, and why should we be against it?”

The present is characterized not only by a political crisis of the global neoliberal order but also by differing interpretations of the cause of this crisis:

Capitalism. If we are to interpret capitalism, we must also know how to change it.

– What is capitalism? – Is capitalism contradictory? If so, what is this contradiction and how does it relate to Left politics?

– How has capitalism changed over time, and what have these changes meant politically for the Left?

– Does class struggle take place today? If so, how, and what role should it play for the Left?

– Is capitalism in crisis? If so, how? And how should the Left respond?

– If a new era of global capitalism is emerging, how do we envision the future of capitalism and what are the implications of this for the Left?

Panelists: – Rory Dufficy (Scholar of Avante-Garde politics and teaches Marx’s Capital at the Melbourne School Of Continental Philosophy) – Rjurik Davidson (Marxist writer, editor & speaker. Former Associate Editor of Overland magazine) – Arthur Dent (Unreconstructed Maoist and contributor at c21stleft.com)

[ Unfortunately 20 seconds of Dufficy’s opening remarks were lost due to an internet drop-out. However, his remarks are complete in the transcript expected to be published in an upcoming issue of The Platypus Review ]

Uneasy lies the head… Bertolt Brecht

I came across this poem, written by Bertolt Brecht (1898-1956) in the 1930s, in an edited collection called ‘Student Power’ edited by Julian Nagel and published in 1969. The poem is attributed to Brecht’s ‘Svendborg poems’ collection. The poems were written by Brecht when he was in exile from Nazi Germany on the Danish island of Funen.

We need a revival of the spirit fueling the poem. Its truths remain valid – pretty much everywhere.

Fascism and the Left… how do left-wing individuals end up fascists?

I am republishing this from 1980 as it remains so pertinent.

Barely a week goes by without me receiving a post on facebook from individuals who were once good comrades but who now promote all manner of right-wing conspiratorial theory and who openly take the side of fascist, autocratic and theocratic regimes against the masses who are trying to overthrow them and establish basic democracy, or what Marxists call ‘bourgeois democracy’. The chest-beaters are the worst.

Anyhow, I feel that this analysis, originally from the Red Eureka Movement in Melbourne, explains a lot and offers a rare but exceptionally important, cogent, analysis. (I was not with the REM people back then but rather stayed with the Blue Eureka nationalists – and had stopped thinking quite a few years earlier).

* * * * * * * *


Written: November 1980.
Transcription, Editing and Markup: Paul Saba
Copyright: This work is in the Public Domain under the Creative Commons Common Deed. You can freely copy, distribute and display this work; as well as make derivative and commercial works. Please credit the Encyclopedia of Anti-Revisionism On-Line as your source, include the url to this work, and note any of the transcribers, editors & proofreaders above.


EROL Note: This was a document that was circulated within the Red Eureka Movement in late 1980.

* * *

A major theme in left wing propaganda is opposition to fascism. Quite often relatively moderate opponents of the left are described as “fascists”.

Yet scratch a “Communist” and one quite often finds a fascist underneath.

The regime that began with the October Revolution is now a fascist dictatorship. In China too, since the defeat of the Cultural Revolution many revolutionaries have been executed and the right to speak out freely, hold great debates, put up big character posters and so on has been officially and formally repudiated.

The degeneration of Communist Parties in power is a separate problem calling for a separate analysis. But what about the degeneration of parties holding no power?

THE CPA (ML)

Our experiences with the “Communist Party of Australia (Marxist-Leninist)” were sufficiently frightening to require some deep analysis. Almost any split is accompanied by outraged cries of “unfair” or “undemocratic” from the losing side, so it seemed undesirable to distract attention from the fundamental issues at stake by going into details of who done what to who. But another reason why we never got around to it was probably embarrassment at ever having been involved with such a sick group.

The bankruptcy of Australian nationalism as an ideology for communists is now pretty apparent, while the question of whether China has gone revisionist has been settled by open proclamations from the Chinese leadership themselves. Although Vanguard keeps coming out each week, the people behind it seem pretty discredited and there is little need to discredit them further.

In Adelaide the “Worker Student Alliance for Australian Independence” has disintegrated, along with its newspaper People’s Voice. In Melbourne the entire editorial collective of Independence Voice quit some time ago, there was no “Independence platform” at Mayday, the “Australian Independence Movement” is virtually defunct and supporters of this line have been completely routed in “Community Radio” 3CR. The Australia China Society is unable to defend the new regime in China and little has been heard from the CPA(ML) in the trade union movement either.

As a complete expression of E.F. Hill’s bankruptcy we have the suggestion in “Australian Communist”, that they want unity with us (previously described as “Soviet agents”). Hill has even signed an article proposing reunification with the CPA in “one Communist Party” (presumably because the Chinese revisionists, having recently re-united with their Italian and Yugoslav colleagues, also wish to re-establish relations with the CPA, leaving Hill out in the cold).

The thuggish behaviour of the CPA(ML) supporters in attempting to intimidate their opponents is well known. Both intellectual and physical thuggery, in 3CR and elsewhere, has become so notorious that the only “broad united front” they have been able to create has been that directed against themselves. They have also become notorious for openly preferring to ally themselves with various Nazis and other fascists against the Soviet Union rather than trying to unite the people, and especially the left, against Soviet imperialism on the basis of progressive principles. Their main political theme these days is the united front they claim to have with Malcolm Fraser, who nevertheless remains quite unaware of their existence. As for China, they openly say they would rather not talk about it, even though China was, and is, central to their whole political outlook.

These facts are mentioned, not to kick a dead horse, but to emphasise that the horse really is dead and to confirm that the additional facts about it cited below are genuine observations and not just part of some ongoing sectarian faction fight.

OTHERS TOO

The more or less open fascism of the CPA (ML) has resulted in that group being simply dismissed as “crazies”. But in fact they are only a more extreme expression of problems that exist, less overtly, throughout the left. Indeed it has been noticeable in 3CR for example, that the excuse of “keeping out the crazies”, has been used to justify appallingly manipulative and undemocratic behaviour (e.g. elected listener sponsor representatives voting against explicit directives from a large general meeting of listener sponsors). People who would be shocked and indignant about that in other contexts have made excuses for it when their own friends are doing it. Really how far is it from making excuses to acting in the same way?  And how far from there to ending up just like the “crazies” themselves?

Also the fact that China and the Chinese parrots are anti-Soviet (and Reagan, Thatcher, Fraser etc) has become an excuse to actually apologise for Soviet actions that would be called “fascist” if American was doing it.  Indeed many quite non-crazy “left liberals” have been prepared to go through the most amazing mental contortions to justify the Vietnamese occupation of Kampuchea or to minimise the significance of Soviet aggression elsewhere.  Rather than agree with “right-wingers” (like Churchill), they prefer to apologise for fascists (like Hitler).

Where was the left wing outrage (as distinct from concern) when Polish workers were being denied the elementary right to form free trade unions?  Why do “militants” in “left-wing” unions take delight in the same bureaucratic manoeuvres their opponents use to stay in power?  Why are splits in left wing groups so common and so nasty?

In Australia many other groups supposedly on the left have exhibited a personal intolerance comparable to the Chinese parrots, and also a comparable willingness to apologise for reactionary regimes in other countries, provided those regimes pay lip service to “anti-imperialist” principles. (Vietnam, Cuba, Iran, Libya… name a country that is suppressing some other country or trying to impose some medieval religion on its people and you will find a “left” group wildly enthusiastic about it.)  Scanning overseas “left” newspapers one gets the impression that narrow minded religious bigotry is pretty common, and even where it is not taken to extremes, it is still present.  No wonder so many on the “left” thought a fellow zealot like Khomeiny would be progressive for Iran.

The undemocratic tendencies of “Leninists” is a common theme in anti-Communist propaganda – from open representatives of the bourgeoisie, from Social Democrats, from Anarchists, from “Left” or “Council” Communists and what have you.  Nevertheless, attacks from our opponents should be taken seriously, and indeed have been taken seriously by the classic exponents of Marxism.

CHINESE FASCISM

This question was especially taken seriously in China and some of the material from the Chinese Cultural Revolution is very valuable for understanding the emergence of fascist tendencies among alleged “Communists”.

For example Mao Tsetung’s unpublished works, and the material criticizing Lin Piao (the “successor” who turned out to be a fascist). The Cultural Revolution was after all a direct struggle between revolutionaries and counter-revolutionaries who both purported to be part of the “left”. The concept of fighting bourgeois ideas disguised as “left” ideas was crucial to unleashing the 1960s upsurge and will be crucial again. It was necessary to challenge the “peace” ideas that were dominant in the left in the 1960s and it will be necessary to challenge the views that are dominant now – many of which are again crystallised in the eclectic mishmash of the “CPA”.

In the “gang of four’s” Peking University Journal of September 1, 1976 there is an important article on “The Bureaucrat Class and the Dictatorship of the Proletariat”:

…We must further recognise the high concentration of political and economic powers under the dictatorship of the proletariat. If the bureaucrat class succeeded in usurping power and in its restorationist conspiracies throughout the country, then it would continue to flaunt the banner of socialism, take advantage of this high concentration of political and economic powers and turn the democratic centralism of the proletariat into the fascist centralism of the bureaucrat class.

In controlling and manipulating the means of production and the product of Labor, these bureaucrats will be far more powerful than any previous exploiting classes and their political representatives, than the slave owners and feudal rulers who claimed that “all land under the sun is my territory and all people on earth are my subjects”, and than the bureaucrats and financiers in capitalist countries…In a similar vein, the present day new tsars behave much worse than the old tsars… (Translation from Selections from People’s Republic of China Magazines No 895, American Consulate General, Hong Kong. Reprinted in Study Notes No 6, Red Eureka Movement, August 1978)

This article also goes into the question of the transformation of authority into capital and capital into authority, which is relevant to an understanding of imperialism in the West as well as in the Soviet Union and China.

Western bourgeois democratic society is heading towards an acute crisis and upheaval as another Great Depression and a Third World War develop. The outcome can be Communist Revolution or some form of fascism or social-fascism. We could face a new ruling class more powerful than the present one. It largely depends on how clear the left is on what we are fighting for and what we are fighting against and how sharply we can draw the line against perpetuating the old system of exploitation in our own practice. If the left continues to whinge about capitalism, and even oppose it from a reactionary perspective then it cannot hope to inspire people to fight for something fundamentally different.

Indeed, just as one would have to defend the national independence that Western and Third World countries have already achieved, from Soviet “socialist” imperialism, one would also have to defend the achievements already won by the bourgeois democratic revolution from attack by alleged “socialists” who want to go backwards to a more oppressive society.

DEMOCRATIC CENTRALISM

If the democratic centralism of the proletarian dictatorship can be easily transformed into the fascist centralism of the bureaucrat class in a developing socialist country, then what about democratic centralism in Leninist parties out of power? Is this an argument against democratic centralism and proletarian dictatorship, as anarchists and others insist?

The answer to this argument is that there never can be a guarantee against proletarian dictatorship turning into its opposite, and Communists in power must always be prepared for transition to underground life as Communists in opposition to capitalist roaders in power. Likewise in Communist Parties generally – one must be prepared to rebel and to be expelled for rebelling.

But if there was no democratic centralism and proletarian dictatorship then it would be quite impossible for the revolutionary ideas held only by a minority in capitalist and socialist society to be centralised and dominant and in that case the bourgeoisie holds power anyway. So weakening democratic centralism is not the answer. On the contrary, it needs to be strengthened to keep fascists out, on the same argument that the left cannot afford to be pacifist and must learn the use of arms if it doesn’t want warmongers to hold power.

Proletarian dictatorship means just that. It does not mean dictatorship over the proletariat by some bureaucrats. It means a political system in which the working class can really wield political power – something that can be achieved by workers councils led by a revolutionary party and cannot be achieved by parliamentary institutions or by milling around in confusion.

Democratic centralism also means just that. It does not mean the leadership imposing decisions on a reluctant membership. It means that the abstract “parliamentary” right which almost all organisations give their members to ultimately take decisions, is made real by conscious leadership of the decision making process to make it “from the masses, to the masses” and so make it actually work without manipulation or obstruction.

This article is not a plea for everybody to be more tolerant of everybody else. It is a call for sharper defence of our basic principles and less tolerance of attempts to undermine them. One cannot be a Communist if one is not first a democrat. The democratic revolutionaries of England, France and so on in earlier centuries had no hesitation about chopping off the heads of their aristocratic opponents and neither should we.

Fear of strengthening democratic centralism is really fear of struggle. Such fear is fully understandable in the present situation, and a lot better than blinkered complacency. But it must be overcome.

The quote from Orwell’s “Road to Wigan Pier” in “the Personal is Political” (Discussion Bulletin No 9) rang a few bells and is worth repeating:–

…..“Socialism” is pictured as a state of affairs in which our more vocal Socialists would feel thoroughly at home. This does great harm to the cause. The ordinary man may not flinch from a dictatorship of the proletariat, if you offer it tactfully; offer him a dictatorship of the prigs, and he gets ready to fight.

We should be ready to fight against the dictatorship of the prigs and to do this it is necessary to understand the transformation of Communists into prigs.

ARE WE DIFFERENT?

If we take Lin Piao for example, there is no doubt that he did make contributions to the Chinese revolution before emerging as an outright fascist. The superstitious Mao cult he built up in opposition to Mao had definite roots in China’s feudal past, but also struck a chord among Western “Maoists”.

Ted Hill now appears to be nothing more than a follower of Liu Shao-chi, then Lin Piao (as a major cult advocate) then Liu Shao-chi again, or whoever may hold power in China at any given moment. But some of his analyses of revisionism, parliamentarism and trade union politics in publications like “Looking Backward; Looking Forward” are still valuable and he once made a point of opposing sacred cows and stereotypes and supporting rebellion.

Things were drastically wrong with the CPA(ML) long before we parted company and people are entitled to ask how we got mixed up with them and why we should be regarded as any different. If we are to be any different then we must analyse the thin dividing line that appears to exist between being a Marxist-Leninist or “Maoist” on the one hand, and being a lunatic or a fascist on the other.

There is little need to “expose” the CPA(ML) leadership now in view of its obvious degeneration. But the roots of current fascist attitudes do need study, so the following facts are placed on the record for our own benefit rather than for the benefit of anyone still taken in by Hill.

SOME FACTS

1. There never was anything remotely resembling democracy within the CPA(ML). This became obvious when concrete disagreements made it necessary to have a proper discussion and take a decision. But it should have been obvious even when people thought they were in agreement.
2. As soon as a disagreement in principle was announced “through the proper channels” etcetera, the immediate response was to launch vituperative attacks on individuals – at first surreptitiously behind their backs and then openly in Vanguard.
3. The very idea of discussing the differences was repudiated and “security” was abused to tell people that there had been a full democratic discussion, which they just didn’t happen to be part of.
4. As a matter of fact it turned out that no Central Committee actually existed. One member of the Red Eureka Movement discovered that he was supposed to be a CC member after wanting to express his views to the CC. This must be some sort of record in the international communist movement!
5. Other members of the Red Eureka Movement who were both on the Central Committee and knew it, were able to expose the lie that there had been some kind of Central Committee discussion about China and that documents expressing opposition had been circulated to the Central Committee etc.
6. Individual party members had to go outside the “channels” to get any kind of discussion and then discovered that the “channels” didn’t really exist. Now others who accepted this are finding the same situation.
7. It was not a case of discussion being suppressed arbitrarily and decisions usurped, but of there being no provision whatever for seriously discussing and reversing a policy disagreed with.
8. This situation which existed long before it came to a head was put up with by people who would rebel strongly against similar fascist practices in any other social institution.
9. Many people on becoming aware of it, and seeing people branded as Soviet agents etcetera, took a cynical attitude that this was wrong but not a major question of principle requiring them to take a stand.
10. Our initial reaction to all this shit was not to launch a public struggle as in the Cultural Revolution or in accord with our own experiences in the 1960s. Instead we had great hangups about “the party” and organised semi-conspiratorially.
11. Despite being a very small group, since breaking with the CPA(ML) leadership we have not been able to resolve internal disagreements in a civilised, let alone comradely manner, but have had two further splits. While nowhere near as bad as Hill’s, these have also involved strange behaviour that would not be tolerated in most community organisations and should not be tolerated on the left. Moreover they have occurred in a situation where we are not leading any great revolutionary struggle and no pressing life or death decision was at stake.

LIFE WASN’T MEANT TO BE EASY!

We did not fully realise it at the time, but there was little alternative to the apparent extremism of Hill’s stand because there really wasn’t any possibility of a discussion. If he had agreed to a discussion, what could he possibly have said? And if the CPA(ML) did not follow China religiously, what else could it do? We cannot blame Hill for our own naivety.

We only realised how difficult most people find it to rebel and think for themselves once we had broken with Hill and company. “Stalinists without a country” was the contemptuous Trotskyist label, and there is something in it. It really is enormously easier to at least think you know what you’re doing when there is some “socialist motherland” backing you up. (Or a “Fourth International”, a “great leader” or some other crutch).

For non-revolutionaries it’s fairly easy to maintain a political position sustained by one or other of the reformist currents in mainstream bourgeois society. But in a non-revolutionary society and with no back up from a revolutionary society, it requires real effort to develop a revolutionary program. How much easer it would have been if we could have forgotten that we didn’t have such a program by simply pretending to ourselves that China, or Albania or somewhere was revolutionary and that supporting them would somehow produce a revolution here. Or by pretending that if we were all more dedicated, we would figure out where we were going while getting there.

Its interesting to note how even people with no attachment to Russia, China or Albania have managed to persuade themselves that Vietnam is still worth supporting and feel a deep and personal threat to their whole ideology when this is questioned. Or how people leaving REM because it hasn’t been getting anywhere who know perfectly well what’s wrong with the political line of the Revolutionary Communist Party (USA), are nevertheless attracted by the reassuring certainty of that group’s proclamations.

Idealism and metaphysics are the easiest things in the world, because people can talk as much nonsense as they like without basing it on objective reality or having it tested against reality. Materialism and dialectics, on the other hand, need effort. They must be based on and tested by objective reality. Unless one makes the effort, one is liable to slip into idealism and metaphysics. (Mao Tsetung)

PRIESTS AND HORSES

Judging from overseas literature, the temptation of closed minded religious fanaticism is very strong in this situation. It provides a certainty that would otherwise be lacking and puts an end to all confusion, doubt, cynicism, liberalism and so on.

But this way out is the way out of the movement. It means joining the innumerable sects that are much better organised and disciplined than we are, and are able to get more done precisely because they do not have the “burden” of really having to think out a revolutionary line.

We did not hesitate to reject the “security” of blindly following China, Albania or anybody else so we should not regret the consequences.

One consequence is that we are in some respects more vulnerable to confusion, doubt, liberalism, cynicism and so on than other left groups that feel more confident about their (manifestly wrong!) lines. The reason horses are given blinkers is that it keeps them working away steadily without getting distracted by things they might see. Groups that have attached themselves to a foreign state, or that merely reflect a reformist current  in mainstream bourgeois ideology, have a secure basis for their activity and can work away at it for years after it has ceased to have any social relevance or has become purely reactionary.

The same can easily be true of “revolutionary” groups that feel secure, or pretend to feel secure in their “correct line”. They can whip up a great frenzy of activity, full of sound and fury, but signifying nothing. Take a look at the Communist Workers Party or the Revolutionary Communist Party (USA). On many points we would be in full agreement. They have a similar analysis of China and Albania to ours and they certainly do make a clear distinction between communist revolution and the bourgeois reformism advocated by most “revolutionaries”.

On international questions of very great significance they appear to have a fundamentally wrong analysis, But even more important, their whole approach to “correct line” politics seems alien. They are certainly not paralysed by liberalism like we are – but so what?

While confusion, doubt, liberalism, cynicism and so on persist we will remain unable to accomplish very much, including theoretical work:

We must have faith in the masses and we must have faith in the Party. These are two cardinal principles. If we doubt these principles, we shall accomplish nothing. (Mao Tsetung)

But the only basis for faith in the Party is confidence in the soundness of its analysis and line. Once we have grounds for such faith we will be able to accomplish something, but not before. (And of course once we do, we will again have the problem of blind faith and the potential for people to continue following a leadership that has proved itself worthy of confidence, long after it has ceased to play a progressive or revolutionary role. But then it would be at a higher stage of the spiral).

Demands that people pull themselves together, combat liberalism or what have you, will not solve the problem of lack of faith. This is an atheistic age and real communists are atheistic people. Our only God is the masses and the only basis for our faith is scientific analysis of reality.

The situation we are in calls urgently for working out where we are and where we are going. Without that, calls to press on more resolutely and with greater vigour will only result in people getting more lost.

CHIN UP, BACK STRAIGHT, EYES SHUT!

It is conservative, not revolutionary to promote “leadership”, “organisation”, “doing things”, “collective life” and so on without a clear perspective for liberating people from oppression. Defenders of the status quo habitually make such appeals and every organisation, revolutionary or not, naturally wants to be as effectively organised as possible (and most sewing circles and amateur theatrical societies are probably a lot better organised than REM). But it is quite wrong to see the organisational reflection of our confusion as the central problem instead of dealing with the confusion itself. (As for any who are not confused, they would have an even greater problem. Take off the blinkers!)

Communism is not the only ideology opposed to liberalism. Fascism opposes liberalism too. It is one thing to want to widen and deepen and ultimately transcend democracy by going beyond such mere forms as majority voting. It is quite another thing to declare that ones policies have proved their own correctness and deliberately exclude others from even a vote, let alone a real say, on the matter. Yet we have repeatedly experienced this kind of behaviour not just from enemies, but from comrades who probably really do want to be revolutionaries.

The fact that people like Lin Piao or Ted Hill could turn out to be fascists and that we could go along with a load of shit for a long time should alert us to the dangers. When people on the left start acting like people on the extreme right they must be pulled up sharply and told “You’re Ill” before the disease becomes incurable and before it spreads.

“Follow me and you need never think again”: Richard Wright, Liu Shao-Chi, Julius Fucik, the CPA(ML)… and the fire we need…

The following article is by Tom Griffiths…

“Follow me and you need never think again.”

This was the pithy saying uttered by an old comrade to describe secular religious thinking, or blind faith, in adhering to the Party line, no matter what the line was or how it was arrived at. It need not be confined to, or even predominantly associated with, Communist Party politics of course with yes sir, no sir, three bags full sir, the Daleks “I obey” and other variants all treding the same path. Follow me … arose in the aftermath of the CPA M-L kindly informing a number of us that we had “expelled” ourselves and the sense we then made of how a reputedly revolutionary organization, prompted by the arrest of the Gang of Four, could perform a 180 degree pivot overnight without discussion and still keep a straight face. I need hardly add that we did not keep a straight face but saw this as a joke – and not one on us.

I don’t know about others, but there are some sayings I hear that are gold and are instantly hard wired. “Follow me …” was one of them. It spoke to me then, and has done so since, most  recently after reading Richard Wright’s American Hunger, the second part of his autobiography Black Boy that deals, in large part, with his experiences in the CPUSA in the 1930’s. I will come back to this, for while this post is not about Wright per se, his experiences have certainly prompted it. Not for the first occasion it brought into sharp relief the contradiction between  communist aspirations (what we believe in, this is what we are fighting/struggling for), and the more disturbing, at times reactionary, internal and personal processes involved with what the ‘correct line’ is, how it is arrived at and ‘followed’. Walking the walk, as well as talking the talk, in other words; how what we do, and how we do it, as a reflection of our revolutionary (transformative or synthesizing) aspirations and practice.

So let me come back to Richard Wright and American Hunger. Wright (1908-1960) was a black American writer of great talent and vision who effectively fled the Jim Crow south when 19. Like so many of his black contemporaries he headed to Chicago. “The environment the South creates is too small to nourish human beings, especially Negro human beings.” he said later in a radio interview. He brought with him an intense curiosity, a hunger, a desire to grow. It was this that enabled him to observe in himself and others who had fled the south, loneliness and confusion. “Wherever my eyes turned they saw stricken, black faces trying vainly to cope with a civilization that they did not understand. I felt lonely. I had fled one insecurity and embraced another.”

By his mid twenties his hunger and curiosity, containing as they did a worldly, universalizing vision, had led him to the CPUSA. “Of all the developments in the Soviet Union the method by which scores of backward peoples had been led to unity on a national scale was what had enthralled me. I had read with awe how the Communists had sent phonetic experts into the vast regions of Russia to listen to the stammering dialects of peoples oppressed for centuries by the czars. I had made the first total emotional commitment of my life when I read how the phonetic experts had given these tongueless people a language, newspapers, institutions. I had read how these forgotten folk had been encouraged to keep their old cultures, to see in their ancient customs meanings and satisfactions as deep as those contained in supposedly superior ways of living. And I had exclaimed to myself how different this was from the way in which Negroes were sneered at in America.”

He wanted to use his ability and drive, with the organizational and political support of the CPUSA, to give the ignored and sneered at a place and a voice on the political stage. This was not simply a political quest, but also one that unavoidably required acculturation. In the same decade Mao was developing the mass line in China, while in still unoccupied Europe Bertolt Brecht was writing The Life of Galileo, the sixth scene of which begins with this couplet: ‘Things indeed take a wondrous turn/When learned men do stoop to learn’. In effect Wright advocated the adoption of a stooping stance and he began a process of taking oral histories from men, like himself, who had migrated north, effectively changing planets in the process. The one we hear about in American Hunger is Ross, a fellow Party member. But rather than applauding and supporting his initiative, what in Maoist language would be termed ‘learning from the masses’, the CPUSA viewed his project with suspicion. Paranoid thinking, in partnership with anxiety, is probably more accurate.

Outside of Ross, who was initially cooperative, this suspicion came from both black and white members. I think I get the nervousness of his black comrades. The confusion and insecurity Wright refers to above sounds very familiar to utterances I have heard from refugees. One, a young Hazara man from Afghanistan, said to a colleague some eight years ago, that what he really needed to know was “where do I fit in?” Coming from a society still dominated by strictly hierarchical and tribal norms this is a question he would never have had to seriously consider before he changed planets. Another, from a Sierra Leonean colleague, put the anxiety and confusion this way: “We have come from hell to find heaven. And it is heaven, if you change overnight.” Wright’s black comrades were still finding their feet, not yet standing on culturally solid ground and needed the support and approval of their white comrades.

Empathic understanding (an interest in, and understanding of, the hurdles they faced) appeared not to be present or offered, a situation Wright found baffling. Offering feelings of acceptance and purpose, probably patronizing, where the rules pertaining to these are too heavily sourced from above, was not good enough. Fascist organizations, and there were a few around at the time, provided this too. Indeed they were arguably better at it as they had no desire at all to see their membership grow intellectually or emotionally. Unthinking loyalty was what was demanded to both the organization and its ideological script.

Under a veil of suspicion Wright was repeatedly questioned about his motives and actions. His explanations fell on deaf ears and he was, again repeatedly, told by members higher up the food chain that he did “not understand”. Projection is an interesting psychological defence mechanism. It is a pity that those not listening to Wright were ignorant of their use of it. More disturbing, however, was the parallel process being reproduced in the party. Being a ‘good communist’ – being seen (needing to be seen) and understood as being compliant, obedient, well behaved and toeing the party line, qualities valorized by Lui Shao-Ch’i (see Quotations of Liu Shao-Ch’i, Paul Flesch and Co.1968, a ‘Little Yellow Book’ worth getting hold of), is not the same as being a good communist. The latter has the capacity, in reality develops the capacity, to swim against the tide, be that tide external or internal and to accept the associated risks. The party line down south was the Jim Crow line where the consequences for not being seen to be ‘good’ and obedient to Jim Crow cultural norms could, and often were, fatal. What Wright and so many others from down south were doing in heading north, was learning how to swim against the tide.

There is a difference between toeing the line (being obedient) and agreeing that a given line or position will be supported and acted upon, and that the processes by which it has been arrived at are democratic and not autocratic. Wright’s experience speaks of the latter and it was something, on a lesser scale, that I recognized at the time I and others ‘expelled ourselves’.

Walking hand in hand with this, and generally justifying it, was the question of organizational security. Wright mentions that, to his understanding, security was reckoned using the conditions under Czarist oppression as a measuring stick. The darkening clouds beginning to engulf Europe will have done nothing to abate this. But the USA was not a fascist state – unless you happened to be black living under the heel of Jim Crow. That this was not sufficiently grasped, underscores the importance of what Wright was trying to do and the failure of the CPUSA in supporting him in doing it. It also indicates that any purportedly revolutionary organization that is too reliant or wedded to top down decision making and the concomitant creation of a culture of membership obedience or compliance is likely to miss what’s under its nose.

None of this is meant to downplay the significance or need of security or measures to maintain a Party’s viability and effectiveness, considerations that become pressing the more oppressive and reactionary the prevailing context. The activities of the Czar’s secret police, the Okhrana, gave the Social Democrats, Bolsheviks, Mensheviks et al good reason to take those activities seriously. So too the activities of the Italian fascist secret police OVRA, the organization upon which the Nazi Gestapo was modelled, not to forget the Gestapo itself. But none of this could justify closing the minds of party members. Caution, in the face of external danger is not the same, and should not be confused with, closed or narrow mindedness in the face of such danger. Paranoid mindsets can be cultivated.

The most influential, and moving, account from a communist who kept the distinction between external danger and internal openness as distinct as circumstances would allow comes from Julius Fucik and his Report From the Gallows. Fucik, a central committee member of the Czech Party, was arrested and gaoled in 1942 and executed the following year. With the assistance of two patriotic cum anti fascist prison warders  he was able to write and smuggle out notes of his experiences and thoughts, his report from the gallows. I came across Fucik’s work in the mid to late 1970’s and, given recent events, I found it refreshing, insightful and invigorating. Here was a man experiencing the harshest of treatments, knowing that death was near, yet still embracing life rather than merely clinging to it. What I found particularly impressive was his ability to listen, to want to understand what made his jailers and wardens, most of whom came from working class stock, tick. Much of the book is devoted to what are dubbed in my edition “Figures and Little Figures”, nuanced reflections on comrades (Figures) and those in a more mixed bag, such as the prison superintendent who were certainly enemies and others among the wardens who deserved a deeper level of understanding (Little Figures), His ability to reflect upon and engage with both/all sides of contradictions was an ability, it would seem, that was absent, or certainly wanting in the CPUSA and the CPA M-L 

One of the things Fucik’s book did for me was to reinforce or make less abstract the absurdity of the CPA M-L adopting the same organizational structure as that used by the Czech and, I presume, other communist parties in occupied Europe (three member cell structures with one reporting higher up the chain, secrecy over membership etc). In occupied Europe this made a lot of sense – it was about survival. But not in the Australia we lived in. And in attempting to explain the rationale for its being, without getting sidetracked in theoretical bushland, the temptation to reach for the Diagnostic and Statistical Manual of Mental Disorders (American Psychiatric Association) to determine the clinical criteria is difficult to resist. ‘Fucked’ seems an appropriate term to use that bridges the theoretical/clinical divide.

It is tempting to see my use of the concept ‘fuckedness’ as somewhat flippant. And to a degree it is because the ‘clinical’ component can seem like a cheap shot. But there is also a serious side to this that goes well beyond the drab manifestations I and others saw in the CPA-ML or the more disturbing, but not yet out of control manifestations that Wright witnessed and was subjected to. The example I wish to point to is the fate that befell the El Salvadoran revolutionary poet Roque Dalton who was murdered by elements in his own party with whom he was in disagreement over the importance of the party developing a mass base if it were to have any chance of overthrowing the regime. Unsurprisingly perhaps, given his murder, Dalton was argueing the importance of developing a mass base.

Dalton’s poetry is worth chasing up and to give a flavour of it – and of its relevance to this post – the following is the first stanza of his Dialectic of Genesis, Crisis and Rebirth:

‘For you we will not put the Party on an altar/Because you taught us that the Party/is an organism which lives in the real world/and it’s sickness is the same as bankruptcy/Because of you we know, Lenin/That the best crib for the Party/Is fire’

A bitter irony exposed in these lines is that Dalton’s murderers, and those who sanctioned it, were trying to put out the fire.

The fire that Dalton was speaking of, was not simply, or even primarily, that of the class enemy, whose fire belongs in the blindingly obvious department, but, as with Mao’s view of swimming against the tide being a revolutionary principle, refers to internal fire. Using gentler language, but making the same point, Wright referred to this as a “nurturing environment”. To see the meaning of this sentiment as being only directed against the tide generated by one’s political foes misses the point.

The proposition, be that stated openly or assumed, that the party line is, by definition correct, is a reflection of one sided, non dialectical thinking, the heritage of which comes more from medieval or pre medieval mind sets than modernist ones. If ever history were able to assume a sentient human form its reaction to the idea that leadership, be that in revolutionary organizations or not, automatically confers correctness and is thus deserving of deference, would be hysterical rolfing.

Our experience in the CPA M-L exposed political fuckedness, an organizational suspicion cum aversion to internal democratic processes, and a gift for paranoid thinking. This also seems to be the case in Wright’s experience of the CPUSA. The same cannot be said for Dalton’s. Politically fucked, certainly. But his murder exposed something pathalogical that was not only not organizationally contained, but was organizationally facilitated.

Revolutionary movements and parties in the developed world have disintegrated leaving in their wake a smug capitalist class and an opportunist and reactionary ‘left’ cum pseudo left drawn to every form of oppression other than that of class. It is ironic and certainly telling that we now live in an age where the capitalist class is quite happy to bend to and accommodate ‘woke’ agendas. And why not? The property question, the goal of expropriating the expropriators, has been successfully swept under the carpet. No prizes for guessing who/what has been doing most of the sweeping.

One of the tasks of a reemergent and genuine revolutionary left, will be to clean up its act regarding democratic processes; or to borrow from Dalton, to actually understand that the best crib or nurturing environment for its existence and growth is ‘fire’. It is not enough that a leadership pays lip service to the idea, as opposed to the practice of criticism and self criticism, reducing it to an auto de fe in the process. It must be open and be seen as being open, to itself being a target of fire.

One of the things communist parties, in whatever form their new iterations take, will need to do is to ensure that, to paraphrase and tweak Wright, the environment it creates is large enough to nourish the development and growth of rebellious and critical spirits, spirits who can not only keep an active eye and involvement on fire that is externally targeted and generated, but internally generated and directed.

Debunking Austrian Economics’ Socialist Calculation Problem

The ‘Calculation Problem‘ is what market economists commonly argue against socialism but there is no reason to be smug about economic calculation under capitalism. Communist workers could hardly do a worse job of allocating investment funds than do highly fluctuating interest rates and exchange rates produced by capitalist finance. And there are good reasons for thinking that economic decision-making would be far superior to that under capitalism. To begin with, the absence of ownership barriers would increase the scope for coordination, and lessen the scope for secrecy and deception.

* * * *

Reprinting this from David McMullen’s site, Simply Marxism. Originally published in May 2017. 

The so-called Austrian school of economics makes much of what they call the socialist calculation problem. They argue that a society based on social ownership could not have an effective price system and therefore could not have the decentralized decision-making we see in a market economy.

The claim was first made by Ludwig Von Mises in the 1920s. Really all he is saying is that transfers between enterprises using a decentralized price system must be market exchanges. Without explaining why, he rules out the possibility of such transfers occurring between socially owned enterprises where there is no exchange of ownership but simply a transfer of socially owned property from one custodian to another. I am thinking here of a transfer between a supplier and user of some component in production. Without predicting what will actually happen in the communist future we could easily imagine production units using decentralized pricing to determine least costs methods of production and assigning output to the highest bidder. We could also easily imagine such a system being ultimately driven by consumer demand.

Then we had the intervention of Frederick Hayek in the 1930s and 40s. He demolished the rather lame decentralized socialist model devised by the economist Oskar Lange. That model confines decentralized price adjustments to consumer goods while price adjustments for intermediate goods are carried out by a central agency that is keeping an eye on inventory levels. Hayek correctly points out the inadequacy of such an arrangement and how it does not represent a fully functioning price system. Discrediting the Lange model is all very well, but Hayek did not then go on to show that an economy based on social ownership would in fact be limited to the Lange model. In other words he did not show that there is something about social ownership that would prevent the use of decentralized price adjustment in the allocation of intermediate goods. So I think I can justly say that all that Hayek has done is refute a straw man.

OK now we come to the final version of the argument and this was developed in the 1980s by Don Lavoie of George Mason University. He conceded that a socially owned economy could have a price system but that it would not be a very good one. In his book Rivalry and Economic Planning, he contends that any price system under social ownership would be inferior to a market based one because it would be unable to reflect the discovery process that emerges from competition between market participants. According to Lavoie, it is important, in the presence of uncertainty, to have numerous participants trying out different approaches to problems, based on their own opinions, guesses and hunches. Those who come up with the best and most highly valued products using the cheapest methods win out in this competitive contest. I fully agree with what he is saying. However, if, as I contend, decentralized custodianship is an important part of social ownership, diversity of approach should not be a problem.

Under social ownership, it would still be very common for an individual enterprise or facility to be just one of many producing the same good or close substitutes and each of them would be free to try out different production methods and product designs. Some would be new entrants who were either existing enterprises moving into a new field with synergies or starts ups established by enthusiasts with ideas that the incumbents were not open to or capable of developing. This diversity would be greatly assisted by having numerous independent agencies being responsible for disbursing funds in each industry and making their own assessment of what were good investments. At the same time, enterprises would be free to choose their suppliers based on cost and quality, and would have to outbid other users of a resource or intermediate good. Discovering and adopting the best methods and products would of course mean that it would be common to see activities abandoned and enterprises closed or reorganized. So, the only real obstacle to a decentralized price system would be the absence of daring and conscientious custodians and this gets us back to the question of whether we can do without the profit motive. Can we do our best just because we enjoy the work and want to contribute? As I argue elsewhere this does not strike me as being all that fanciful if we are sharing high and increasing affluence and all the unpleasant work is performed by robots and computers.

So the calculation argument is not a separate argument from the standard one about whether we need the profit motive.

I think it is appropriate to point out that there is no reason to be smug about economic calculation under capitalism. Communist workers could hardly do a worse job of allocating investment funds than do highly fluctuating interest rates and exchange rates produced by capitalist finance. And there are good reasons for thinking that economic decision-making would be far superior to that under capitalism. To begin with, the absence of ownership barriers would increase the scope for coordination, and lessen the scope for secrecy and deception.

So to sum up. My basic point is that when it comes to economic calculation, communism will be able to do anything capitalism can and do a better job of it.

I have links below to a number of articles that go into more detail on this topic.

https://economsoc.files.wordpress.com/2014/04/re-opening-the-debates.pdf

https://economsoc.files.wordpress.com/2014/04/the-economic-case-for-social-ownership.pdf

Servility is abhorrent

The following poem is terrific. It’s from a site called One Poem .One Planet.

 

KARL MARX
Karl Marx was playing a parlor game
with his daughters. To their question
What is the quality one should most abhor?
he wrote: Servility.

This was found–a scrap of paper
amongst the family albums and letters;
it is the most essential of all
the Complete Works.

 

— Robert Gray (Australia)

 

Thanks to Tom G for drawing my attention to it.

A Marxist Response to the the US President’s Council of Economic Advisers’ Report “The Opportunity Cost of Socialism”

Prometheus-Gives-Mankind-Fire

From ‘Simply Marxism‘, excellent new site:

A Marxist Response to the CEA’s Report “The Opportunity Cost of Socialism”

David McMullen

Simply Marxism

June 2019

Summary

Introduction

Communist Famines

Universal Awfulness

The Need for Markets

Economic Calculation

The Green Problem

Venezuela

Economic Freedom

The Nordic Countries

Medicare for All

What could a socialist state do?

Not necessarily all free

Government Revenue

Healthcare under socialism

Summing Up

References

Summary

The Council of Economic Advisers to the President (CEA) in October 2018 issued a report called “The Opportunity Cost of Socialism”. It covers a diverse range of “socialisms”. In this reply I will only be defending socialism in the Marxist sense – a period of revolutionary transition during which capitalism is transformed into communism. I will not be defending “socialism” when it simply means government intervention under the present capitalist system.

The report starts with the “communist” regimes in the Soviet Union and Mao’s China, and zooms in on the famines during the collectivization of agriculture as prime examples of their failings. I suggest that when putting their inadequacies and disasters in perspective, one needs to keep in mind a bit of background. Two things strike me as being particularly important.

First thing, the transition from backwardness to modernity has been, and still is, generally a nasty business. The prime example is western Europe. When it emerged from the Middle Ages and started on the road to capitalism, it managed with the aid of ocean-going sailing ships to devastate every other society on the planet. While this was necessary in order to bring the rest of the world into modern history it was accompanied by a lot of awful behavior such as the slave trade, and the trashing of India and China in ways that brought death and misery to millions. At the same time, on the home front, we saw the expulsion of peasants from the land, and stage one of the Industrial Revolution with its expendable workforce.  

Second thing, a successful socialist revolution requires advanced capitalism to prepare the ground. Both the Soviet Union and Mao’s China had to deal with essentially pre-capitalist societies. They were ready for capitalism not for a transition to communism, and once the regimes were taken over by people who had lost interest in revolution, “socialism” had little trouble in becoming nothing more than a hollow shell.

At the end of the day, these countries did quite well compared with similarly backward countries in the capitalist sphere. Furthermore, the Soviet Union’s feverish industrialization during the 1930s gave it the means to defeat fascism in the 1940s, something from which we have all benefited.

Through its development of industry, capitalism prepares the ground for communism by eliminating the necessity of want and toil. Once we no longer need to compete for decent material conditions, our good side can start  to shine through. We can begin to think about doing without “market incentives” and doing work for its own sake and the desire to contribute while being happy with a shared prosperity. Economists argue that this would be all in vain because of the “calculation problem” while greens claim we are stuck with want and toil because of “limits to growth”. In this paper I respond to both of these views.

The report endorses the claim of the Venezuelan regime that it is socialist when it is clearly just a very corrupt kleptocracy. The involvement of the zombie regime in Cuba is fully in keeping with this assessment. The people are starving, and are inheriting rundown industrial capacity and lots of foreign debt.

Like all “free marketeers”, the CEA attempts to dissociate capitalism from the behavior of its own state. They fail to recognize that “government failure” is endogenous to the system and not some exogenous imposition on an otherwise pristine capitalism.

The report ends with a rather stern assessment of “Medicare for All”. It points to the problems of free government provision and the negative impact of having to raise so much more tax revenue to pay for it.

I make the point that a proletarian government could well make extensive use of user pays and that as health provision increasingly takes on a communist character, care that is both high quality and economical will require less and less material inducement.

As for the increasing need for revenue, a proletarian government would have a range of options that would eliminate or greatly reduce distortions, and would have low collection and compliance costs. With income secure and distribution far more equal, there would not be the present political problems in having a regressive income tax or in employing a poll tax. Then there is Henry George’s land value tax that capitalist countries have failed to make significant use of.

Introduction

The Council of Economic Advisers to the President (CEA) in October 2018 issued a report called “The Opportunity Cost of Socialism”. (CEA 2018.) The term “opportunity cost” is used by economists and simply means the benefit you forgo by doing one thing rather than the best alternative. If what you choose to do has greater benefit you are ahead. If not then you have made a mistake. It is an odd title but does sound more profound and eye-catching than “The Failure of Socialism.”

The report starts with the “communist” regimes in the Soviet Union and Mao’s China, and zooms in on their collectivization of agriculture as prime examples of their failing. We are then brought right up to the here and now and reminded of the disaster that is Venezuela’s “Socialism of the 21st Century”. This is followed by a discussion of the Economic Freedom of the World (EFW) Index which measures an economy’s freedom from government intervention (ie “socialist policies”) and its positive correlation with economic performance. Next we are shown how the U.S. has fared better than the “socialist” Nordic Countries. Last but not least we come to the U.S. itself where there is a looming threat of socialism in the form of free health care. Here the concern is the excess burden of taxation and the perverse effects of having a third-party payer.

In the CEA report, and in popular discourse generally, the term socialism is used for a grab bag of things. For Marxists it can only mean the period of revolutionary transition that begins with the old capitalist ruling class losing its property, power and influence and then proceeds with the proletariat transforming itself and society. At the core is joint or shared ownership of the means of production which enables the typical individual to thrive for the first time. As a Marxist, it is only in this sense of the word that I am interested in defending socialism. I will not be defending “socialism” that is simply government intervention under capitalism.

Karl Marx’s referred to this transition period on various occasions. The most well-known comes from Critique of the Gotha Program (1875):

“Between capitalist and communist society there lies the period of the revolutionary transformation of the one into the other.”

And as a young man, he had this to say in The German Ideology (1846):

“Both for the production on a mass scale of this communist consciousness, and for the success of the cause itself, the alteration of men on a mass scale is, necessary, an alteration which can only take place in a practical movement, a revolution; this revolution is necessary, therefore, not only because the ruling class cannot be overthrown in any other way, but also because the class overthrowing it can only in a revolution succeed in ridding itself of all the muck of ages and become fitted to found society anew.” (Part I, section D)

Socialism in this sense should not be seen as a social system in its own right. It is an unstable transition phase during which both regression and progression are possible. It is a period of struggle between conflicting forces. The more unfavorable the underlying conditions, the more chance of regression, and hence the rocky road travelled in the 20th century. The matters raised in the CEA report will be examined from this perspective.

Communist Famines

First in the line-up we have the “communist” regimes in the Soviet Union and Mao’s China. Famines during their early years come in for special scrutiny. The events are used to highlight the question of property rights and economic incentives given that they occurred at the times when the regimes were trying to collectivize peasant agriculture while increasing the food supplies available either for the increasing non-farm population or for exports in return for investment goods such as machinery.

I am unqualified to comment on the contributing factors or the extent of these famines. So I will confine myself to two key points that should be kept in mind before anything else when looking at these events. Firstly, the transition from a backward agricultural society to a modern industrial one has been and still is a nasty business no matter where you look. Secondly, any attempt to go from feudal backwardness to socialism while circumventing capitalism is bound to have its own serious problems. So let us look at these in turn.

Universal Awfulness

Historically, we should look to Western Europe for the worst case of this universally nasty business. Its emergence from the Middle Ages into the bright shiny day of capitalism was a thoroughly messy affair. Peasants were thrown off the land and made to work in factories where they did not need to survive for long because there was no shortage of fresh “hands” to replace them. The power loom that launched the industrial revolution saw the starvation of handloom weavers. This was just the home front. Elsewhere, it was even worse. While ocean going sailing ships and the creation of a world market were just what were needed to get the west on the road to capitalism, the effect on the rest of the world was total devastation. Of course, things had to be that way unless you think that Europe should have stayed in the Middle Ages. Marx saw the whole business as nasty but necessary. It brought the rest of the world into modern history. This meant that capitalism would eventually catch on there and create an international proletariat that would march together towards world communism.

Marx expresses this globalist point of view in The Communist Manifesto (1848) as follows:

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 Frederick Engels of October 8 1858 he expresses the same sentiment:

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.

Here I will just look at some of the more prominent cases of European beastliness.

We have the African slave trade of course. Millions became slaves and millions died during capture and transportation. With that there was also the economic destruction. The young and fit were the target; and kidnapping or the avoidance of kidnapping was the primary activity of virtually an entire continent.  The subsequent colonial period was also somewhat less than benevolent. Forced labor, mutilation and murder in the Belgian Congo comes readily to mind. At the moment, Africans are still waiting for the benefits of being dragged into the modern world.

Then there was British rule in India where the most notable horrors were the famines.

British policy did much to contribute to the great famines during the dry years of 1876-79 and 1896-1902. Estimates range from 12 to 30 million deaths. (Davis 2007: 7) Most appalling was the fact that grain was exported to Britain while Indians starved. (Davis 2007: 299)  Also, the British created a range of realities that made the country vulnerable to famine. Land was converted from subsistence crops to export crops such as cotton and opium. There was the neglect of rural improvement such as irrigation both by the government and the local elites who were encouraged to be usurers rather than capitalists. (Davis 323ff.)

According to Davis (2007 p.346): “As far back as 1785, Edmund Burke had indicted the East India Company for allowing native irrigation to fall into decay, thereby ensuring higher famine mortality during droughts.” This was still the case a century later.

At the same time the appalling tax and debt burdens on the peasants meant the need for short-term income at the expense of longer-term fertility. And their usurious landlords opposed any improvement work that would reduce peasants’ dependence on them. (Davis 2007: 333)

As for famine relief, the railroad system ensured that grain moved speedily to where it would get the best price, which made things worse for the starving penniless. (Polanyi 2001 [1944]: 160.)

While still on India, we should not pass up the opportunity to mention the handloom weavers crushed by competition from the English power loom. In Capital, Marx quotes the Governor General reporting in the 1830s: “The misery hardly finds a parallel in the history of commerce. The bones of the cotton-weavers are bleaching the plains of India”. (Marx 1976 [1867]: 557)

Writing for the New York Daily News, Marx explained Britain’s dual role. In “The British Rule in India” (June 25, 1853) he wrote:

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.

And in “The Future Results of British Rule in India” (July 22, 1853) he made much the same the same point:

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.  

Looking back from the present point in time we can say that the British performed their dual role in a rather lopsided fashion. They were far more efficient at undermining the existing socio-economic system in ways that deepened the misery of the vast mass of people than they were in creating the conditions that would encourage the development of capitalism. As well as discouraging capitalism in agriculture they also discouraged any local industry that would compete with British imports. Capitalist development eventually caught on but even now there is still considerable backwardness with 50 percent of the population employed in agriculture.

When we come to China, we can blame the British once again for death and misery. It all started with the importation of Indian opium that destroyed the lives of multitudes and drained the country of silver. The Qing Dynasty was further weakened economically and politically by its defeat at the hands of the British in the First Opium War of 1841. This laid the ground for the Taiping Rebellion, a civil war from 1850 to 1864 that lead to many millions of deaths through plague, famine and the sword, together with long-term economic damage. The rebellion may have contributed to the necessary unravelling of Old China but was still a very nasty business.

The El Nino weather conditions that struck India in the late 19th century also struck China and caused deadly famines there as well. Prior to its degeneration, the Qing Dynasty had been quite adept at reducing famine and food insecurity. (Davis p. 367) In the 18th century they had budget surpluses, well stocked granaries and the ability to move large stocks of food across long distances. They also had flood control, extensive irrigation, and canal navigation.

When writing about Britain’s role in China, Marx took the same dual nature approach that he did with India. So that in The New York Daily News of June 14 1853 he wrote:

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. ….

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 the 20th century, China got a second going-over. This time it was at the hands of the Japanese. Their emergence from feudal seclusion brought a toxic mix of industrial development and militarists who thought stealing resources would be better than buying them. In this case one cannot talk of a dual role. China was already well and truly “opened up”. This was better described as a disemboweling. Total Chinese deaths during the China-Japan War from 1937-1945 have been estimated at between 15 and 20 million. (Ho Ping-ti, 1959, p. 252)

After making a mess everywhere else, the European powers turned in on themselves and committed another major act of depravity, to wit, World War I from 1914 to 1918. This was a war of imperialist rivalries in which 15-19 million died and which some naively believed had been ruled out by the international nature of capitalism. Capitalists instead rallied to the flag, produced lots of guns and made lots of profits. Added to the war toll was the 1918 influenza pandemic made particularly deadly by war conditions. (Gladwell 1997: 55)  This saw the death of 50-100 million people worldwide.

One upshot of this awful affair was the 1917 Bolshevik Revolution in Russia. Increasing military defeats and the economic strains of the war were the final straw for the Czarist regime. And the Czar did not help matters by taking command of the armed forces and leaving his wife and Rasputin to run the government. The collapse of the regime was followed by a four year civil war in which the Reds defeated the Whites. The Whites were Russian nationalists with a penchant for massacring Jews. So the alternative to the Reds were not nice democrats; indeed, many exiled Whites subsequently joined fascist organizations.

The Need for Markets

The CEA report uses the failings in Soviet and Chinese agriculture to argue the  case for incentives and the need for private property and markets to prompt us to work and to produce the things we want. The Marxist view is that once we achieve an advanced level of economic development this is no longer the case because the possibility of eliminating want and toil changes the rules of the game. It is now possible to contemplate social ownership where the prime motivation is mutual regard and the satisfaction obtained from labor, with material reward being of diminishing importance.

The problem with Russia and China is that communists took over in countries that were still extremely backward. Their revolutions were very much historical accidents occurring before their due time. Under these conditions any movement down the communist road was bound to be very limited; and indeed in these cases the obstacles made it unsustainable. The same could be said about the rest of the “socialist camp” that emerged after World War II.[1] 

After dragging their countries out of extreme backwardness, the regimes in these countries lost interest in radical change and became quite reactionary. Socialism became equated with economic development plus the “communist” party in charge. The workers became ciphers rather than actors in their own right.

Notwithstanding this dead-end for the revolution, the efforts to overcome backwardness are nothing to be sneezed at. They fared better than comparable regions that remained under capitalist suzerainty. And in the case of the Soviet Union, feverish efforts in the 1930s meant that it was industrially prepared for the task of defeating fascism, an event best described as the greatest achievement of the 20th century. They are now relatively advanced capitalist societies in the “upper middle income” category, and comparable in terms of GNI per capita to countries such as Turkey, Mexico and Brazil that did not suffer “the scourge of communism”.

The modernizing efforts of the Mao years in China created the conditions the bourgeoisie needed once they took over after his death. Previously they had been confined to sabotaging socialism. Now they were in charge and had free rein to do it their way. They have really gone to town; and we also have India following up the rear. Both these mega-regions are undergoing considerable industrialization and have a shrinking peasantry and growing proletariat. From a Marxist perspective this augurs well for the future.

At the moment, only part of the world has achieved a level of development where the elimination of the necessity of want and toil is within reach. It comprises about 20 percent of the world’s population and primarily includes the United States, Europe and Japan. While some regions are not far out of reach, others still have quite a way to go. So, unfortunately a large section of the world’s population, mainly in Sub-Saharan Africa and South Asia, will take a few generations to get on top of their backwardness.

With increasing productivity under capitalism, a stage is reached where an equal share of the social product ceases to be shared poverty. Under less developed conditions, the prospect of shared hunger and distress impels those who are in a position to do so to exploit others through plunder, slavery, serfdom or the ownership of the means of production. However, as the average share begins to promise an increasing degree of prosperity, the imperative to fare better than others diminishes.

Mechanization and automation, under developed capitalism have done much to reduce the odious or toilsome nature of work. Pick and shovel work and carrying heavy loads are things of the past and much of the remaining menial and routine work in the manufacturing and service sectors will be automated in the next generation. The work we are left with will be primarily intellectual in nature and potentially interesting and challenging. It begins to be something one could imagine doing for its own sake.

We can expect improved ability to perform complex work in a future communist society as many of the conditions that cause stunted development are eliminated. These include lack of family support, peer pressure to underperform and an inadequate education system. Social ownership will end the isolation of education from production and other activities, so uniting learning and doing. Workers will help each other to learn. We will also benefit from an increasing understanding of human development and what causes learning difficulties.

Under these new conditions where we no longer need to compete for a decent material existence, it now becomes possible to base a society on mutual regard and social ownership of the means of production. We can discard the dog-eat-dog world of capitalism where sociopaths are often the biggest winners.

Mutual regard is enlightened self-interest. You only thrive when others thrive. You do the right thing by others because you know that an increasing majority are doing the same. You know you are contributing to a “pool” of well-being that everybody shares.

This will transform work. It will end what Marxists call alienation. We will do what we can to make the work of others productive and rewarding. These relations with our fellows are what make it possible for work to become something performed for its own sake rather than simply a necessary means to an income. At the same time, we are happy with your equal share knowing that others on the whole are doing their best.

The thriving of others is critical in all areas of life. You cannot thrive if those who impact on your life are disturbed, frustrated and poorly functioning.

Mutual regard will not just be a case of caring more. It will have to also mean being willing and able to confront bad behavior directed against ourselves or others. This will require us to cast off passive, submissive and weak-spirited habits engendered by our subordination under capitalism, and acquire a strength of character that gives us the confidence and moral courage to deal with bullies, schemers and people with a whole gamut of behavioral issues. We will not let the worst people set the tone. Top of the list are those who want to lord it over us and become a new ruling class.

Critical to the process is the emergence of a large and increasing number of people who see the revolutionary transformation of the conditions around them as an important mission in life.[2]

Economic Calculation

Most economists would argue that this is all in vain. They tell us that 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.[3]

While we do not know how economic decisions will be made in the future under communism, we can say that there is nothing about the non-market transfers of custody between economic units that would prevent decentralized decision-making based on prices.

We can also counter the claim that any price system under social ownership would be inferior to a market based one because it would not reflect the discovery process that emerges from competition between market participants. It is true that in the presence of uncertainty, there needs to be multiple participants trying out their own approaches to problems on the basis of their own opinions, guesses and hunches. Those that come up with the best and most highly valued products using the cheapest methods win out in this competitive contest. However, social ownership does not throw up any inherent obstacles to a diversity of approaches.

It would still be very common for an individual enterprise or facility to be just one of many producing the same good or close substitutes and each of them could be free to try out different production methods and product designs. Some will be new entrants who are either existing enterprises moving into a new area with synergies or starts ups established by enthusiasts with ideas the incumbents are not open to or capable of developing. This diversity could be greatly assisted by having a number of independent agencies (‘banks’) disbursing funds in any given industry on the basis of their own assessment of what are good investments. Indeed, diversity could be planned if there is not enough of it emerging of its own accord.

At the same time, it is possible to imagine enterprises being free to choose their suppliers on the basis of cost and quality and having to outbid other users of a resource or intermediate good.

Economists have also spilt much ink on the impossibility of effective central economic planning. However, their view now seem out of date. Quantities for highly disaggregated product codes can be fed into an input-output table in real time with modern computer networks, and numbers crunched using modern computers and appropriate algorithms.[4] 

Collective ownership could do a great job of producing what people want. This is despite the widely held view that it would require some central body to arbitrarily decide on final output.  Individuals could receive vouchers that they could spend on what they choose, with prices responding to changes in supply and demand. Consumer surveys could play a role. There could be democratic decisions on what collective goods to produce and the rate of investment, and these could be funded through taxation. And there would be nothing to stop the use of interest rates to guide investment decisions.

Initially people’s income will mainly be a wage that is a market price for their labor power but even when we get a fair way down the communist path, and income becomes pretty much separated from work performed, you could still have shadow prices for labor power where enterprises put in bids for the various kinds of workers they require.

Not only will an economy based on social ownership work fine. It will do a better job than capitalism. Capitalism may be streets ahead of stagnant pre-capitalist societies, however, the gap between what is possible and what capitalism delivers is wide and getting wider. It is an increasing fetter on the economy’s productive forces that social ownership can remove. The revolutionary transformation of the economy and society will take off the brakes by eliminating economic crises, by vastly increasing the science and innovation effort, and by unleashing the initiative and enthusiasm of workers that capitalism cannot tap.

The Green Problem

While the economists are telling us that eliminating the necessity of want and toil cannot be the basis for communism, the green movement is telling us that want and toil are unavoidable. They say there are limits to growth and we are already exceeding the planet’s carrying capacity. However, I would suggest that prosperity for all is not difficult to imagine with scientific and technological advances. Where land is a constraint, we can build higher into the sky and tunnel deeper into the ground. Precision farming, biotechnology and other innovations will provide far more food while using less land and water, an already established trend that is gathering pace in spite of opposition from greens. There will be limitless supplies of clean energy from a range of resources. We can already be sure that future generations of nuclear power technology would be able to rely on virtually inexhaustible fuel resources. Then there are future technologies we can presently only guess at. For example, biotechnology may open up new ways of harnessing the sun. The mineral resources we rely on are more than sufficient, even without considering future access to extraterrestrial resources and our ability to devise ways to substitute one resource for another. We will protect the biosphere with more advanced and better funded waste and conservation management. Indeed, in many respects we have seen capitalist countries get cleaner as they get richer.

Venezuela

The report provides Venezuela as a present-day example of a country with highly socialist policies. The regime calls itself ‘socialist’ and so do its supporters and opponents. However, it  is, of course, just an oppressive kleptocracy and hated by the vast majority. Like all kleptocracies it places as much of the economy as possible under state control in order to suck it dry. It is a country with 4,000 generals all on the take. Anyone who calls this ‘socialism’ is just being disingenuous, whether they are supporters or opponents of the regime.

Of course, the fact that the regime describes itself as socialist is no great surprise. You could not really have expected Chavez to call his regime “Kleptocracy of the 21st Century”. His socialist rhetoric fitted well with his anti-American demagoguery. Everyone who opposes the regime is an imperialist agent and any problem the regime was having was due to imperialist sabotage.

Kleptocracy was accompanied by the buying of votes from the poorest section of society. However, these bribes did not represent a redistribution away from the rich. Just like the billions stolen by the “boliburguesía”, these benefits were at the expense of future consumption. They were funded by oil revenue that should have gone into maintaining and increasing production capacity and by foreign loans. They have been eating their seed corn.

All Chavez did was create hopes that he then shattered. His education and healthcare schemes are now a burnt-out wreck. There was never any “from below”. Chavez dispensed the cash, and policies were his thought bubbles pronounced from on high.

There are Chavez fans who try to retrieve something by claiming that the present Maduro regime has strayed from Chavismo. In fact, it has simply taken it to the next level.

Then there is the regime’s sinister relationship with Cuba where it receives police state support in return for oil. Cuba has a zombie regime on which Marxism long ago past judgement. It is very much a Soviet clone on the lines of the old eastern Europe. Its socialism is state ownership with their “communist” party in charge. Society is not undergoing a socialist transformation and the best thing the government can do is assist the transition to a more normal bourgeois society by holding free elections, a bit like those that occurred in eastern Europe 30 years ago.

The fact that much of the “left” has some sympathy for the regimes in Caracas and Havana is one of a number of signs that it is part of the problem rather than the solution.

Economic Freedom

The report refers to studies that show a strong positive association between “economic freedom” and economic performance. The former is measured using the Economic Freedom of the World (EFW) Index which measures an economy’s freedom from government intervention (ie socialist policies). (Fraser Institute 2018)

 “The indicators are aggregated to five main categories, which are then given equal weight in the overall index. The first category is the size of the government in terms of spending, taxation, and the size of government-controlled enterprises. The second is the legal system and property rights in terms of the protection of persons having such rights. The third category is referred to as “sound money,” and measures policies related to inflation. The fourth is free international trade, which means that citizens are free to trade with other countries. The fifth is limited regulation, which addresses the freedom to exchange and trade domestically.” (CEA 2018: 24)

They are talking here about government intervention in a capitalist economy.  Of course, Marxists do not have a dog in this fight because they are not interested in tinkering with capitalism only eliminating it. But that being said, free market or “neoliberal” economics has an extensive literature critiquing such tinkering that is fairly sound and represents a real contribution to economic thought. However, it falls short by ignoring the fact that this government failure is a form of market failure. These problems are seen as some sort of exogenous imposition on what would otherwise be a pure pristine capitalism. In fact, they are very much endogenous to the system.

A lot of government interference in the free market serves the vested interests of the capitalists and workers in the favored industries, and the bureaucrats and politicians who make a career out of it. It enhances the value of their property rights – their capital or their job and career prospects – at the expense of society as whole. Vested interest is just another name for bourgeois private property which in turn is just another name for capitalism.

Welfare programs have become great opportunities for bureaucratic empire building, but historically the primary motivator was a desire to save capitalism from itself. There was a concern that if they did not introduce a range of social welfare reforms workers would be seduced by communism. It was an attempt by the system to inoculate itself from that dreaded infection.

The Nordic Countries

The report wants to disabuse American socialists and left liberals of their love affair with the Nordic countries.

They point out that the Nordic countries have abandoned many of their much admired “socialist policies” as measured by their much improved EPW Index. Besides, their higher levels of government spending do not look quite so socialist when you take into account that it is middle income earners rather than the rich who bare the tax burden.

We are also reminded that these countries are poorer economic performers with lower GDP per capita than the US. While not wanting to spend any time defending an “alternative” form of capitalism, it is difficult not to at least suggest that any comparison should also look at how people at the bottom of the heap fare.

The report also claims that the value of their free education is less than the US when measured by earning differential between graduates and non-graduates. They see this as an example of how free provision leads to lower quality. The logic is that there would be a tendency to underfund the institutions and students would be less concerned about the standard of their degree. Determining whether this is the case would require knowing a lot more about tertiary education in Nordic countries and other tuition-free countries. This is a task I am quite unwilling to take on. Furthermore, nothing hinges on it. Any problems of free provision in the Nordic or other capitalist countries tells you nothing about free provision in a society undergoing a proletarian revolutionary transition. And I must add there is nothing preventing such a society from having tuition fees.

Medicare for All

The CEA report criticizes proposals for a universal single payer health system supported by the likes of Bernie Sanders and usually dubbed “Medicare for All” (Sanders 2017).  Such a system would replace all existing private health insurance and would leave the patient with no out of pocket expenses, no copayments or deductibles. The report points to a range of problems with free government provision and to the negative impact of having to raise so much more tax revenue to pay for it.

They describe this as patients and bureaucrats spending other people’s money. Patients would have an incentive to overuse services such as doctor’s visits much like a prepaid all you can eat buffet. The healthier would crowd out the less healthy and there would be no incentive to seek out the cheapest options. At the same time bureaucrats will not have the incentive to economize or make the best purchases.

A government medical insurance monopoly as proposed would be less efficient than having many competing companies. In particular, the government healthcare bureaucracy has shown itself to be very poor at detecting fraud. Efforts to rein in government spending are bound to affect the health budget leading to waiting lists and quotas for particular treatments.

Then there is the fiscal burden of such a program. A free universal healthcare system would require a huge increase in income tax collection unless other government spending was cut drastically.[5] This is not just the same as taking in tax what people would otherwise have spent on their own healthcare because of the so-called excess burden or deadweight loss of taxes in excess of the revenues.

“Earning additional income requires sacrifices (a loss of free time, relocating to an area with better-paying jobs, training, taking an inconvenient schedule, etc.), and people evaluate whether the net income earned is enough to justify the sacrifices. Socialism’s high tax rates fundamentally tilt that trade-off in favor of less income.” (CEA page 12)

What could a socialist state do?

I will leave it to “socialists” of the Bernie Sanders variety to put the case for public provision of healthcare under the present capitalist system. My only concern is whether the CEA’s critique has any relevance for a society undergoing a proletarian revolution.

Not necessarily all free

While a proletarian state could have free provision of healthcare, there would be nothing to rule out significant levels of user pays.

You could have individuals paying for insurance that covers unlikely and unpredictable but high cost health events. There could be a single insurer or mutual insurance schemes owned by their members (friendly societies). At the same time, more routine or predictable health spending could be out of pocket, assisted by health saving and loan schemes. In the case of drugs, you may have patients paying the production cost while research costs are paid for out of taxation.

To the extent that people are financially secure and receiving an adequate wage, training allowance or pension we can move away from healthcare being part of the welfare system. Of course, special provisions will have to be made for people with unusually serious medical needs.

Government Revenue

What about government revenue under socialism? A proletarian state could, for the following reasons, have high levels of taxation without the present distortions.

To begin with income tax would not have to be progressive. Tax could be a constant percentage of income  or you could even have marginal rates that decline or even go to zero. To the extent that wage differences continue, they will be for good economic reasons that should not to be undone by progressive income taxation.

Scope for reducing marginal rates is limited at the moment where the tax system is seen as a means of redistribution in a world where there are some people on extremely low and insecure income and others on extremely high income such as capitalists with the dividends and senior executives pulling in economic rents.[6]

As communism takes root and work is primarily undertaken for its own sake and from a desire to contribute, the incentive effect of income tax would be reduced even further. Also, a proletarian state could make greater use of taxes that do not distort wages or prices and have far lower collection costs.

Firstly, there are poll or head taxes. These are an equal amount paid by everyone on a regular basis regardless of their income. These are unacceptable under capitalism where income for some people is low and insecure. Indeed, it caused riots when Margaret Thatcher tried to introduce one to cover the cost of local government. In the context of medical insurance, it is worth noting that premiums in a compulsory scheme would effectively be an hypothecated poll tax. Collection and compliance costs would be low because the individual simply has to provide their bank account details and authorize regular payments just like a utility bill.

The other non-distorting tax is one imposed on land values. People would pay a tax for the natural and built amenities around where they live. If all land is deemed to be publicly owned one could describe this as a land rent. (Whether people own their residence is a separate matter.) This tax is famously associated with the 19th century economist Henry George.

The tax would be set so as to “ration” a location to those who place the highest value on living there. At the same time, improving the amenity of an area would ensure a tax revenue stream to pay for it. This would include building hospitals and other health facilities.

Collection costs would be low because you cannot conceal or move land and there are well established methods for calculating the tax. The amount that can be collected from this tax will, however, be reduced by other taxes that people have to pay. Anything that reduces their effective income will reduce what they are willing to pay in land rent. Unsurprisingly land value taxes under capitalism are opposed by wealthy landowners.

Healthcare under socialism

Under a proletarian regime, healthcare, like all sectors of the economy, will undergo a stage by stage transformation. Larger capitalist enterprises would have to come fairly quickly under state control. Smaller businesses in many cases would remain under individual or “cooperative” ownership for somewhat longer.

As with all the other sectors of the revolutionary transitional economy, healthcare will display its greater efficiency and effectiveness as it takes on more communist characteristics. Contributing to the best outcomes will become the overriding motivation of medical workers. This will include overcoming all of the authoritarian nastiness found here as everywhere else. There will be no deferring to incompetent or corrupt superiors nor a passive “I just work here” attitude. Everyone will be a “whistle blower” if necessary, except they will be fixing the problems themselves.

Summing Up

By setting out the full range of confusion on the subject of socialism, the CEA report has provided a good opportunity to both explain and defend the Marxist view on the matter.

When Marxists use the term socialism, they mean the revolutionary transition period when capitalism is transformed into communism. Attempts at this transition to date have been defeated by unfavorable conditions and balance of forces, particularly those arising from economic and social backwardness. These defeats have been achieved by means of socialist regimes losing their revolutionary nature and being “socialist” only because the people running the show continued to call themselves communists.

Key to the success of proletarian revolution is full capitalist development. This will eliminate the necessity of want and toil that historically has set all against all. When it comes to “economic calculation” there is nothing that capitalism can do that socialism cannot do better.

A proletarian government would be in a better position to freely provide healthcare and other goods and services particularly as conditions become more communist. However, there is nothing about socialism that rules out extensive user pays.

Most of the CEA report is taken up with government intervention under capitalism. The report calls this socialism, as do a lot of people. However, this is not socialism by the reckoning of Marxists and its success or failure is not their concern.

References

Cottrell, W. Paul and Allin Cockshott 1993. Towards a New Socialism

http://ricardo.ecn.wfu.edu/~cottrell/socialism_book/new_socialism.pdf

Council of Economic Advisers to the President (CEA). ”The Opportunity Cost of Socialism”, October 2018

https://www.whitehouse.gov/wp-content/uploads/2018/10/The-Opportunity-Costs-of-Socialism.pdf

Davis, Mike 2007. Late Victorian Holocausts: El Niño famines and the making of the Third World. Verso. London

Fraser Institute 2018. The Human Freedom Index 2018

https://www.fraserinstitute.org/studies/human-freedom-index-2018

Gladwell, M. (29 September 1997). “The Dead Zone”. New Yorker. (Cited in “Spanish Flu” Wikipedia.)

Ho Ping-ti. 1959. Studies on the Population of China, 1368–1953. Cambridge: Harvard University Press. (Cited in “World War II casualties” Wikipedia.)

Lavoie, Don 1985. Rivalry and Central Planning: The Socialist Calculation Debate Reconsidered, Cambridge University Press,

Marx, Karl 1853. “The British Rule in India” Marx-Engels Collected Works Volume 12

https://www.marxists.org/archive/marx/works/1853/06/25.htm

———.1853. “Revolution in China and Europe.” Collected Works of Marx and Engels, Volume 12.  Lawrence & Wishart. London.  pp. 93-100.

———.1858. “Marx to Engels 8 October 1858” Collected Works of Marx and Engels, Volume 40.  Lawrence & Wishart. London.  pp. 345-7

———.1859. “The Future Results of British Rule in India” Collected Works of Marx and Engels, Volume 12.  Lawrence & Wishart. London.  pp. 217-222.

———. 1875. Critique of the Gotha Programme. Online edition.

https://www.marxists.org/archive/marx/works/1875/gotha/.

———. 1976 [1867], Capital, volume 1 (Penguin).

Marx, Karl and Frederick Engels.1846. The German Ideology, Part 1, Section D

https://www.marxists.org/archive/marx/works/1845/german-ideology/ch01d.htm#d4

———. 1848. The Communist Manifesto. Online edition.

https://www.marxists.org/archive/marx/works/download/pdf/Manifesto.pdf.

McMullen, David (2019) “The Forgotten Message of Marxism”, Simply Marxism

www.simplymarxism.com

Polanyi, Karl (2001 [1944]).  The Great TransformationThe Political and Economic Origins of Our Time.

Beacon Press. Boston.

Sanders, B. 2017. “Options to Finance Medicare for All.”

https://www.sanders.senate.gov/download/options-to-finance-medicare-forall?

inline=file.


[1] The only industrialized exceptions were East Germany and the Czech part of Czechoslovakia. The regimes were the product of the Soviet Red Army rather than any homegrown proletarian revolution and had no independent existence.

[2] For more on the problem of proletarian revolution see the pages 11 – 14 of the booklet Some Forgotten Marxism which is available to download at www.simplymarxism.com

[3] Lavoie (1985) best sums up this argument. There is also plenty of material at mises.org.

[4] See Cottrell and Cockshott (1993).

[5] The CEA report, does not discuss the possibility of reducing the work incentive problem by the federal government introducing a value added tax (VAT) on goods and services. This is very common in other countries. On the other side of the ledger, they do not mention the incentive to free ride by working less when the government pays for what you would otherwise have to pay for. You have a reduced need for income.

[6] They are paid more than their “opportunity cost” which is what they would be paid if they did an ordinary paying job. Stockholders feel they have to bid for the “best” and also reward them in ways that encourage them to act in their interest.

Persecution of Marxist students in Beijing – where there is repression, there is resistance!

Where there is repression, there is resistance – Mao.

‘Qiu disappeared April 29.

‘State security agents seized him that day from Beijing’s outskirts, his classmates say. Qiu’s offense? He was the leader of the Marxist student association at the elite Peking University, a communist of conscience who defied the Communist Party of China.

‘Over the past eight months, China’s ruling party has gone to extraordinary lengths to shut down the small club of students at the country’s top university. Peking University’s young Marxists drew the government’s ire after they campaigned for workers’ rights and openly criticized social inequality and corruption in China.

‘That alone was provocative. In recent years, China’s leaders have been highly sensitive to rumblings of labor unrest as the sputtering economy lays bare the divides between rich and poor — fissures that were formed, and mostly overlooked, during decades of white-hot growth’.

* * * *

June 4th marks the 30th anniversary of the day on which troops entered Tiananmen Square and opened fire upon protestors. It was an outcome of the restoration of capitalism in China, the victory of the ‘capitalist roaders’ within the Communist Party that Mao had warned against and led struggle against.

The idea that things can turn into their opposite is a very challenging one, but it is true.

The violent repression at Tiananmen Square is proof that the Communist Party was no longer revolutionary, no longer socialist but a case of ‘capitalism without democracy’.

The Chinese parliament currently has about a hundred billionaires among its delegates, most are nominally ‘communists’. https://www.cnbc.com/2017/03/02/chinas-parliament-has-about-100-billionaires-according-to-data-from-the-hurun-report.html

Maoists and other pro-democracy dissidents are imprisoned and now ‘disappear’ at the hands of state authorities. https://monthlyreview.org/commentary/on-december-24-2004-maoists-in-china-get-three-year-prison-sentences-for-leafleting/

https://www.scmp.com/news/china/policies-politics/article/2125541/chinese-scholars-sign-open-letter-calling-release

https://www.washingtonpost.com/world/asia_pacific/if-i-disappear-chinese-students-make-farewell-messages-amid-crackdowns-over-labor-activism-/2019/05/25/6fc949c0-727d-11e9-9331-30bc5836f48e_story.html?fbclid=IwAR0SOnpzbmRBUyB6j3uYJ02PkAALeAyxGtqV03hzPrWuQVK6sb6eHMr8hmQ&utm_term=.4e004ccb1811

The people, however, understand revolutionary change and their own socialist revolution is within living memory.

Where there is repression, there is resistance.

* * * *

Photo of statue at York University, Canada, commemorating the resistance of students and workers in Tiananmen Square.