Volume 53, Number 9


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Harry Magdoff and John Bellamy Foster


February 2002

Anti-Capitalism and the Terrain
of Social Justice

by Sam Gindin

Home
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Notes From
the Editors

New Crusade: The U.S. War on Terrorism
by Rahul Mahajan

Japan’s Stagnationist Crises
by Joseph Halevi and Bill Lucarelli

Antiwar Movements, Then and Now
by Benjamin Shepard


Also by this Author:

Social Justice and Globalization: Are they Compatible?

Rekindling Socialist Imagination: Utopian Vision and Working-Class Capacities

The Daniel Singer Millennium Prize Foundation was established last year for the purpose of building on the late journalist and author’s agenda for a socialist future. To that end, the foundation launched an annual essay contest. We’re pleased to publish the contest’s inaugural prize-winning essay, chosen by an international jury from entries representing ten states and five countries. Submissions for the 2002 prize of $2500 should be no longer than 5000 words in any language and should be sent to the Foundation at P.O. Box 334, Sherman CT, 06784, U.S.A. Professor Sam Gindin is the Packer chair in Social Justice, Department of Political Science at York University in Toronto.—The Editors

Introduction: If Small Changes are Impossible, Then …

Until recently, a pervasive sense of there-is-no-alternative left us with a debilitating pessimism. Seattle was, arguably, the long-awaited antidote. Where social democracy had seen the power of capital and was cowed by it, the Seattle protesters recognized that building a decent world meant actively resisting it. In this defiant understanding that resistance creates the space for hope, the chain of protests initiated by Seattle fell in with a tradition that saw realism in historic terms, rather than in a fetishism of the present.

That tradition of an open future is, ironically, very much rooted in the social revolutions that gave birth to the same capitalism that the establishment was now deifying. Witnessing the transformation of what had, for centuries, been considered the only way things might be, the French aristocrat Alexis de Tocqueville observed how quickly “the evil suffered patiently as inevitable [becomes] unendurable as soon as one conceives the idea of escaping from it.”1 Shortly after, John Stuart Mill echoed the same sentiment:

The entire history of social improvement has been a series of transitions, by which one custom or institution after another, from being a supposed primary necessity of social existence, has passed into the rank of a universally stigmatized injustice and tyranny.2

The Seattle and post-Seattle protests had no ready-made alternatives. They did not signal, as some prematurely assumed at the time, the labor movement’s readiness to join, if not lead, a new internationalism. Nor was the mobilizing capacity and sense of injustice they demonstrated directly transferable to other crucial domestic issues. There has, for example, been little evidence that the social movements that led to Seattle are as yet either inclined to embrace, or capable of realizing, the larger task of organizing sustained mass demonstrations within the United States against American poverty, racial oppression, and the most aggressively anti-union administrative practices in the developed world.

The importance of these protest-spectacles lay, rather, in their combining the energy of direct action with the visionary potential of abstract thought. If small changes were—as business, politicians, and editorial writers kept reminding us—impossible, then maybe it was time again to start thinking big. If social justice could no longer be discussed without addressing globalization, Seattle declared that globalization could no longer be addressed without addressing capitalism. And so, in the course of their resistance, a new generation of protesters dared to name the system that hath no name.

By naming the previously unspoken social system behind globalization, globalization was being politicized. Where “globalization” had become a weapon brandished by business, politicians, and the media to explain what we couldn’t do, placing capitalism itself up for discussion and criticism was part of insisting that the limits we faced were socially constructed, and could therefore be challenged, stretched, and one day overcome. The protesters raised the stakes because enough of them didn’t want in, but demanded something different. The term “anti-capitalism” arrived on the public agenda.

While an identification with anti-capitalism in itself does not constitute an alternative, it does point towards a new political project oriented to discovering, articulating, and building an alternative. To demand, in echoes of the sixties, the currently impossible, but to actually be realistic about this rather than only utopian, means figuring out what “anti-capitalism” means and where it leads. This entails speaking to the limited nature of social justice inherent in liberal capitalism, to the failed social democratic experiment at humanizing capitalism, to the contradictions and opportunities pregnant in the present historical moment, and to elaborating an alternative vision of social justice. This is what we need to collectively contemplate as part of the exhilarating but intimidating prospect of launching a new politics that can move beyond protest, and towards closing the gap between what is and what might be.

Liberalism: Social Justice as Economic Freedom

Friedrich Hayek, Nobel laureate in Economics and a principal twentieth century defender of liberal capitalism, once stated that “…nothing has done so much to destroy the juridical safeguards of individual freedom as the striving after this mirage of social justice.”3 We do not have to spend a great deal of time on his jaundiced reading of the history of struggles for social justice. What is, however, worth noting is his unequivocal presumption that social justice and the freedoms we have under modern capitalism are not only distinct from each other, but mutually antagonistic.

What so many others have obscured and what Hayek to his credit confronts directly, is that inequality is not an unfortunate aberration under capitalism, but an inescapable outcome and an essential condition of its successful economic functioning. Capitalism is—and this is surely as clear today as it ever was—a social system based on class and competition. Such a society guarantees not just inequality of result, but insofar as the results of inequality are passed on through the institution of the family and the spatial divisions of uneven capitalist development, the inequality is reproduced inter-generationally and inter-regionally. This leads to a decisive inequality of opportunity.

It is not surprising therefore that the most clear-minded defenders of capitalism consequently seek to displace the terrain of debate over the legitimacy of capitalism from distributive or equal-opportunity notions of social justice, to notions of individual freedom and especially market freedoms. The individual is placed at the center of a world in which the concept of the community or the collective is confined to the state—liberalism’s old nemesis. Liberalism then seeks to limit the power of the state not only by the rule of law, freedom of expression and association, and elected legislatures, but also and especially by the rights of property, the inviolability of contract in market exchanges, and the protection of private-family spaces to enjoy the fruits of property and labor.

There is no denying the powerful practical appeal of this structure. Both civil and political rights and the historically unprecedented economic dynamism and possibility of rising standards of living rested on it. Yet the reality of class inequality behind this structure could not so easily be set aside. It is only through class-tinged lenses that someone can describe as fully democratic a society in which some people control the potential of others, control how that potential develops over time, privately appropriate the surplus created in social production, and apply that surplus to restructure work, communities, and future opportunities.

The contradictions of liberal justice rest on the fact that a market economy creates a market society, and that private property is not and never was a relationship between people and things, but a relationship between people. Historically, the creation of markets and private property were not, as liberal mythology tends to present it, a matter of getting the state to stand aside so natural human propensities could unfold. Private property in particular emerged with the support of an absolutist state controlled by landed interests who asserted unconditional rights over property which had previously been constrained by traditional obligations. Those interests, backed by the state, forcibly expropriated the commons—lands formerly accessible to the community—for their exclusively private use. The need to reproduce these kinds of private property rights and the privileges they imply necessitated a permanently strong, active, and class-biased state. Today, the drive to deepen and expand such rights takes the form of neoliberal globalization.

Capitalism’s inequalities, it is crucial to emphasize, are not simply about some getting more and others less, but rather that the economic freedom capitalism embodies involves guaranteeing different kinds of freedoms for different people. For a minority, economic freedom revolves around the power to organize production and accumulate; for the rest, freedom to sell one’s productive potential in a labor market and, on the basis of that, to exercise some personal choice in consumer markets. What the minority is accumulating as part of its freedom includes power over the labor of others and therefore over their “individuality.” The freedom/power to sell one’s productive potential and to exercise some choice in consumer markets, in contrast, is founded on a dependency on those who provide the jobs and the commodities available for consumption.

A recent magazine ad for Diesel jeans graphically demonstrates this distinction at the heart of capitalist freedoms. Featured is a sleepy-eyed model on a leather couch languidly holding a cool cocktail. “Think” she coos to us, “of everything that’s wrong in the world. Then think of shopping. That’s why,” she confides, “I like shopping.”

Yet while the message in the ad invites us to escape the troubling world, the ambition of the corporation behind the ad is actively to engage and restructure that world in terms of opening up new markets, allocating the investment that shapes communities, and fashioning not just what we drink and sit on and wear but the attitudes and values through which we are supposed to define ourselves. What the ad, to no great surprise, does not stimulate us to explore is either the corporation’s power or any sense that we might be more than individual shoppers who seek to find escape from the common grievances, alienation, and dashed hopes we share with others as we go about addressing our daily lives, including how to get the money for the things we need or think we need in such a world.

The Failure of Reform and the Counter-Attack

Capitalism’s moral limits and political vulnerability were visible from the beginning and raised the issue of ameliorative responses. Montesquieu, the French aristocrat writing in the mid 1700s, drew on earlier notions of social responsibility and combined them with a sober awareness of the realities of nascent capitalism to express a remarkably early argument for the welfare state:

The state owes to every citizen an assured subsistence, proper nourishment, suitable clothing, and a mode of life not incompatible with health…whether it is to prevent the people from suffering, or whether it be to prevent them from revolting.4

It nevertheless took the industrial and political organizing of the working classes, two world wars, a great depression, and a golden age of economic growth before the conditions could be created for modern social democracy’s attempt to come to the moral rescue of capitalism through the welfare state. But the gains in this period proved to be rather transitory, and even at the time it was fairly clear that popular aspirations for democracy and social justice—which were generally modest—were nevertheless constricted.5 What was not on the agenda in the golden age, certainly not from social democrats looking to a humane capitalism, was much of an inclination to challenge the limits of a democracy that didn’t look to democratize the institutions of corporate power and of state bureaucracy. There was no longer any questioning by social democracy of the social relations at the heart of the economy, of the political division of society into those that led and those that followed, of the divide embedded in a welfare state between those who planned and organized social services and those who were dependent on them.

By the early seventies, in the context of intensified competition and declining profits, the former concessions accepted by capitalism became problematic; those concessions to social pressures came to be understood as having undermined the requisite market discipline precisely because they diverted too many resources to uncommodified and non-profitable uses. What were recently measures of capitalism’s achievements were redefined as responsible for the end of the golden age and as unaffordable barriers to capital accumulation.

The neoliberal response set out to undo the historically-acquired social limits that had redefined liberalism in practice in the postwar era. Neoliberalism named a strategy that sought to place capitalism clearly back on the track of its still incomplete development by accelerating the drive to commodify, and therefore open every aspect of life to profits and the social discipline imposed by profits. This was not just a matter of the extension of markets spatially (“globalization”), but of deepening the domestic penetration of markets into any social, personal, or cultural space that had previously managed to escape subordination to a capitalistic calculus. Since democracy tends to recreate protections against the anti-social logic of markets, the implementation of neoliberalism also necessitated a decline, one way or the other, in effective democracy.

The Contradictions of Neoliberal Success

For much of the left, the contradictions of neoliberalism lie in the dynamics of its economic logic and their belief in the imminence of a breakdown somewhat akin to the Great Depression. In contrast, I’d argue that the potentials for building an effective counter-movement to capitalism, while inseparable from capitalism’s material imperatives, lie not with its impending collapse, but in the nature of its on-going success—that is, in the nature of the neo-justice, neo-democracy, and neo-politics that came with neoliberalism.

In reversing past popular gains in wages, benefits, and security, capitalism was undoing the integrative role those previous concessions played. In successfully consolidating its unilateral power to set the agenda, concerns were triggered about the content of capitalist democracy. In bringing more and more of life deeper into the cash nexus, the individualism capitalism offered as the prize began to look more and more tawdry. In getting so much of what it asked for, but not delivering on its promises, it raised challenges—still very tentative, of course—about the authority of its agenda representing the nation’s agenda. And related to this, as capitalism marched on beyond its national domain, it gained new freedoms and powers vis-a-vis domestic constraints but may have weakened its political base nationally.

Neoliberalism seems to fit so well with the no-alternative argument because its very structure—the universalization of market dependence—tends to de-politicize what happens. Markets, not social relations, seem the final arbiter. “The market made us do it” becomes a national excuse. The capitalism-with-a-human-face of the Keynesian era is replaced by a capitalism with no face at all. But the project of deepening and expanding markets requires the formal consolidation of property rights. And this, in the era of globalization, has meant international treaties and international administrative bodies: the North American Free Trade Agreement and the Free Trade Area of the Americas, the International Monetary Fund and the World Trade Organization. This has led to two direct kinds of challenges to the new economic order.

The constitutionalization of property rights in these treaties and institutions placed—with a definitive push from the movements questioning these treaties—the meaning of these changes onto the public agenda. As the formerly invisible social reality behind market-making was made more visible, the abstraction of the market was re-politicized. Capitalism had a face again. At the same time, the international institutions that were to carry out these agreements could not in the light of day readily defend what they were doing. Such distant bodies simply do not have the cultural, historic, or administrative authority to defend controversial messages. In extending its reach with regards to international property rights, capitalism exposed that reach, and we got a series of Seattles.

There is another dimension to this problem for capitalism in extending its reach, and it relates to the decline of a distinctly national capitalist class. Much attention has been paid to whether, in the context of the globalization of production and capital flows, the nation-state is still relevant. This is, it cannot be stressed too much, the wrong question. Strong states are not the enemies of markets but an essential architectural partner. Only a strong state could cross the geographic, social, personal, and biological borders demanded by capitalism in its latest phase. What haschanged is the relationship between corporations and what was formerly designated their home state.

Today each nation state represents a constellation of both domestic and foreign capital and even the domestic capital is increasingly internationally oriented. And so what has in fact been fading away is not the existence of national states, but—with the possible exception of the United States—the notion of a specifically national capitalist class. In Canada, for example, by the measure of a specific commitment to the development of Canadian communities and Canadian productive capacities, there has been little evidence—especially since the free trade fight of the mid-eighties—of anything particularly “Canadian” about Canadian business. The most dynamic sections of business are either already foreign-based or Canadian wannabees that are themselves increasingly outward-focused.

The strategic question this raises is what happens if domestic movements to challenge capitalism emerge at the same time as capital itself has no credible national project. If a capitalist-worker-consumer alliance is no longer in the cards nationally because there is no nationalist capitalist class, what does this imply for the direction of such oppositional movements? Would their isolation from any significant wing of domestic capital push them, out of necessity even if not out of full conviction, towards more economically-radical and inward-oriented domestic alternatives?

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Notes

  1. Alexis de Tocqueville, The Old Regime and the Revolution, Vol. 1 (Chicago: University of Chicago Press, 1998), 222.
  2. John Stuart Mill, quoted in Jonathan Wolff, An Introduction to Political Philosophy, (New York: Oxford University Press), 196.
  3. Friedrich Hayek, Economic Freedom and Representative Government (Chicago: University of Chicago Press, 1976).
  4. Quoted in G. C. Morris, “Montesquieu and the Varieties of Political Experience” in David Thompson (ed.), Political Ideas (London: Penguin, 1990), 91.
  5. President Nixon captured a particular dimension of the period’s limits. At that very moment in 1971 when the U.S. ended the dollar’s convertability and signalled the end of the alleged golden age, Nixon began his address by noting that “in the past forty years we have only had two years of prosperity without war and without inflation.” (Transcript, Address to Congress, in New York Times, September 10, 1971.)
  6. Naomi Klein, The Nation, March 19, 2001.
  7. Gerard Greenfield, “The Success of Being Dangerous,” Studies in Political Economy, Spring 2001 (See also “A Different Kind of Devastating: From Anti-corporate Populism to Anti-capitalist Alternatives,” unpublished, available from author at gerardg@caw.ca).
  8. Andre Gorz, Critique of Economic Reason (London: Verso, 1989), 232-3
  9. Thomas More, Utopia(London: Penguin, 1965), 66-7.
  10. Antonio Gramsci, The Modern Prince and Other Writings (New York: International Publishers, 1970),76.
  11. Richard Lewontin, Biology as Ideology (Concord, Ontario: Anansi, 1995), 95.
  12. David Harvey, Justice and the City (Baltimore: Johns Hopkins Press, 1977),97.
  13. Antonio Gramsci, Prison Notebooks (New York: International Publishers, 1997), 43.
  14. Boaventura de Sousa Santos, “Participatory Budgeting in Porto Alegre: Towards a Redistributive Democracy,” Politics and Society, Dec. 1998, 461-510.
  15. Bertholt Brecht, Life of Galileo (New York: Arcade, 1994),79.
  16. Daniel Singer, Whose Millennium? Theirs or Ours?(New York :Monthly Review, 1999).

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