Wednesday November 26th, 2014, 11:24 pm (EST)

John Bellamy Foster

Piketty and the Crisis of Neoclassical Economics

Not since the Great Depression of the 1930s has it been so apparent that the core capitalist economies are experiencing secular stagnation, characterized by slow growth, rising unemployment and underemployment, and idle productive capacity. Consequently, mainstream economics is finally beginning to recognize the economic stagnation tendency that has long been a focus in these pages, although it has yet to develop a coherent analysis of the phenomenon. Accompanying the long-term decline in the growth trend has been an extraordinary increase in economic inequality, which one of us labeled “The Great Inequality,” and which has recently been dramatized by the publication of French economist Thomas Piketty’s Capital in the Twenty-First Century. Taken together, these two realities of deepening stagnation and growing inequality have created a severe crisis for orthodox (or neoclassical) economics.… | more |

Beyond the Degradation of Labor

Braverman and the Structure of the U.S. Working Class

Harry Braverman’s Labor and Monopoly Capital, first published forty years ago in 1974, was unquestionably the work that, in the words of historian Bryan Palmer, “literally christened the emerging field of labor process studies.” In the four decades since its appearance Braverman’s book has continued to play a central role in debates on workers’ struggles within industry, remaining indispensable to all attempts at in-depth critique in this area.… This continuing relevance of Braverman’s analysis has to do with the fact that his overall vision of the transformations taking place in modern work relations was much wider than has usually been recognized. Viewed from a wide camera angle, his work sought to capture the complex relation between the labor process on the one hand, and the changing structure and composition of the working class and its reserve armies on the other. This broad view allowed him to perceive how the changes in the labor process were integrally connected to the emergence of whole new spheres of production, the decomposition and recomposition of the working class in various sectors, and the development of new structural contradictions.… | more |

Surveillance Capitalism

Monopoly-Finance Capital, the Military-Industrial Complex, and the Digital Age

The United States came out of the Second World War as the hegemonic power in the world economy. The war had lifted the U.S. economy out of the Great Depression by providing the needed effective demand in the form of endless orders for armaments and troops. Real output rose by 65 percent between 1940 and 1944, and industrial production jumped by 90 percent. At the immediate end of the war, due to the destruction of the European and Japanese economies, the United States accounted for over 60 percent of world manufacturing output. The very palpable fear at the top of society as the war came to a close was that of a reversion to the pre-war situation in which domestic demand would be insufficient to absorb the enormous and growing potential economic surplus generated by the production system, thereby leading to a renewed condition of economic stagnation and depression.… Postwar planners in industry and government moved quickly to stabilize the system through the massive promotion of a sales effort in the form of a corporate marketing revolution based in Madison Avenue, and through the creation of a permanent warfare state, dedicated to the imperial control of world markets and to fighting the Cold War, with its headquarters in the Pentagon. The sales effort and the military-industrial complex constituted the two main surplus-absorption mechanisms (beyond capitalist consumption and investment) in the U.S. economy in the first quarter-century after the Second World War.… | more |

The Theory of Monopoly Capitalism (New Edition)

The Theory of Monopoly Capitalism (New Edition)

An Elaboration of Marxian Political Economy

John Bellamy Foster is a leading exponent of the theoretical perspective that continues in the tradition of Baran and Sweezy’s Monopoly Capital. This new edition of his essential work, The Theory of Monopoly Capitalism, is a clear and accessible explication of this outlook, brought up to the present, and incorporating an analysis of recently discovered “lost” chapters from Monopoly Capital and correspondence between Baran and Sweezy. It also discusses Magdoff and Sweezy’s analysis of the financialization of the economy in the 1970s, ‘80s, and ‘90s, leading up to the Great Financial Crisis of the opening decade of this century.… | more |

Stagnation and Financialization

The Nature of the Contradiction

More than six years after the beginning of the Great Recession in the United States, and nearly five years since it was officially declared over in this country, the core economies of the capitalist world system remain crisis-ridden. The jobs lost in the downturn in the United States have not yet been fully recovered and the economy remains sluggish. In Europe the crisis has hardly abated at all and a number of the peripheral European Union countries are in what can only be called a depression—especially Greece, Spain, and Portugal. The last member of the triad of advanced capitalist centers, Japan, has gone through what have been called two “lost decades” of slow growth and deflation and is attempting once again to jump-start the economy through a combination of devaluation of the yen and deficit spending.… | more |

The Plight of the U.S. Working Class

Modern capitalism, sociologist Max Weber famously observed early in the twentieth century, is based on “the rational capitalistic organization of (formally) free labor.” But the “rationality” of the system in this sphere, as Weber was to acknowledge elsewhere, was so restrictive as to be in reality “irrational.” Despite its formal freedom, labor under capitalism was substantively unfree.… This was in accordance with the argument advanced in Karl Marx’s Capital. Since the vast majority of individuals in the capitalist system are divorced from the means of production they have no other way to survive but to sell their labor power to those who own these means, that is, the capitalist class.… The result is a strong tendency to the polarization of income and wealth in society. The more the social productivity of labor grows the more it serves to promote the wealth and power of private capital, while at the same time increasing the relative poverty and economic dependency of the workers.… | more |

Marx and the Rift in the Universal Metabolism of Nature

The rediscovery over the last decade and a half of Marx’s theory of metabolic rift has come to be seen by many on the left as offering a powerful critique of the relation between nature and contemporary capitalist society. The result has been the development of a more unified ecological world view transcending the divisions between natural and social science, and allowing us to perceive the concrete ways in which the contradictions of capital accumulation are generating ecological crises and catastrophes.… Yet, this recovery of Marx’s ecological argument has given rise to further questions and criticisms.… | more |

The Epochal Crisis

It is an indication of the sheer enormity of the historical challenge confronting humanity in our time that the worst economic crisis since the Great Depression, sometimes now called the Second Great Depression, is overshadowed by the larger threat of planetary catastrophe, raising the question of the long-term survival of innumerable species—including our own. An urgent necessity for the world today is therefore to develop an understanding of the interconnections between the deepening impasse of the capitalist economy and the rapidly accelerating ecological threat—itself a by-product of capitalist development.… | more |

The Fossil Fuels War

Only a few years ago governments, corporations, and energy analysts were fixated on the problem of “the end of cheap oil” or “peak oil,” pointing to growing shortages of conventional crude oil due to the depletion of known reserves. The International Energy Agency’s 2010 report devoted a whole section to peak oil. Some climate scientists saw the peaking of conventional crude oil as a silver-lining opportunity to stabilize the climate—provided that countries did not turn to dirtier forms of energy such as coal and “unconventional fossil fuels.”… Today all of this has changed radically with the advent of what some are calling a new energy revolution based on the production of unconventional fossil fuels. The emergence in North America—but increasingly elsewhere as well—of what is now termed the “Unconventionals Era” has meant that suddenly the world is awash in new and prospective fossil-fuel supplies.… | more |

The Cultural Apparatus of Monopoly Capital

An Introduction

The past half-century has been dominated by the rise of media to a commanding position in the social life of most people and nations, to the point where it is banal to regard this as the “information age.” The once-dazzling ascension of television in the 1950s and ‘60s now looks like the horse-and-buggy era when one assesses the Internet, smartphones, and the digital revolution. For social theorists of all stripes communication has moved to center stage. And for those on the left, addressing the role of communication in achieving social change and then maintaining popular rule in the face of reactionary backlash is now a primary concern.… political economists of communication, including one of us, identified themselves as in the tradition of radical political economy, but with a sophisticated appreciation of media that had escaped.… [the stellar critique of journalism produced… by Edward S. Herman and Noam Chomsky]. Paul Baran and Paul Sweezy were occasionally held up by political economists of communication as representing the sort of traditional Marxists who underappreciated the importance of media, communication, and culture.… We were never especially impressed by this criticism. To us, Monopoly Capital, and the broader political economy of Baran and Sweezy, far from ignoring communication, provided key elements for a serious study of the subject. [Note: this article was released in three parts: Part 1 | Part 2 | Part 3]… | more |

Introduction to the Second Edition of The Theory of Monopoly Capitalism

The Theory of Monopoly Capitalism: An Elaboration of Marxian Political Economy was initially written thirty years ago this coming year as my doctoral dissertation at York University in Toronto. It was expanded into a larger book form with three additional chapters (on the state, imperialism, and socialist construction) and published by Monthly Review Press two years later. The analysis of both the dissertation and the book focused primarily on the work of Paul Baran and Paul Sweezy, and particularly on the debate that had grown up around their book, Monopoly Capital: An Essay on the American Economic and Social Order (1966). In this respect The Theory of Monopoly Capitalism was specifically designed, as its subtitle indicated, as an “elaboration” of their underlying theoretical perspective and its wider implications.… Three decades later much has changed, in ways that make the reissuing of The Theory of Monopoly Capitalism in a new edition seem useful and timely. The scholarly research into Baran and Sweezy’s Monopoly Capital has expanded enormously in the intervening years, most notably with the publication of the two missing chapters of Monopoly Capital—one on the theoretical implications of their analysis for economics, the other on culture and communications—and through research into their joint correspondence. The Great Financial Crisis and the resurfacing of economic stagnation have engendered new interest in this tradition of thought. Under this historical impetus the theory itself has advanced to address new developments, particularly with respect to the understanding of stagnation, financialization, and the globalization of monopoly capital.… | more |

Marx, Kalecki, and Socialist Strategy

A historical perspective on the economic stagnation afflicting the United States and the other advanced capitalist economies requires that we go back to the severe downturn of 1974–1975, which marked the end of the post-Second World War prosperity. The dominant interpretation of the mid–1970s recession was that the full employment of the earlier Keynesian era had laid the basis for the crisis by strengthening labor in relation to capital. As a number of prominent left economists, whose outlook did not differ from the mainstream in this respect, put it, the problem was a capitalist class that was “too weak” and a working class that was “too strong.” Empirically, the slump was commonly attributed to a rise in the wage share of income, squeezing profits. This has come to be known as the “profit-squeeze” theory of crisis.… | more |

Class War and Labor’s Declining Share

Given [the] background of high unemployment, lower-wage jobs, and smaller portions of the pie going to workers, it should come as no surprise that, according to the U.S. Census Bureau, nearly 50 million people in the United States live in poverty (with income in 2011 below $23,021 for a family of four) while another 50 million live between the poverty level and twice the poverty level—one paycheck away from economic disaster. Thus, the poor (those in poverty or near poverty), most of whom belong to the working poor, account for approximately 100 million people, fully one-third of the entire U.S. population.… Wage repression and high unemployment are the dominant realities of our time. A vast redistribution of income—Robin Hood in reverse—is occurring that is boosting the share of income to capital, even in a stagnating economy. Is it any wonder, then, that for years on end polls have shown a majority of the population agreeing with the statement that the United States is on the wrong track and not headed in the right direction?… | more |

James Hansen and the Climate-Change Exit Strategy

The world at present is fast approaching a climate cliff. Science tells us that an increase in global average temperature of 2°C (3.6° F) constitutes the planetary tipping point with respect to climate change, leading to irreversible changes beyond human control. A 2°C rise is sufficient to melt a significant portion of the world’s ice due to feedbacks that will hasten the melting. It will thus set the course to an ice-free world. Sea level will rise. Numerous islands will be threatened along with coastal regions throughout the globe. Extreme weather events (droughts, storms, floods) will be far more common. The paleoclimatic record shows that an increase in global average temperature of several degrees means that 50 percent or more of all species—plants and animals—will be driven to extinction. Global food crops will be negatively affected.… | more |

Toward a Global Dialogue on Ecology and Marxism

A Brief Response to Chinese Scholars

I would like to thank Zhihe Wang, Meijun Fan, Hui Dong, Dezhong Sun, and Lichun Li for doing so much to promote a global dialogue on ecological Marxism by summarizing some of the insights and concerns of Chinese scholars in this area, focusing in this case on my work in particular. The various questions, challenges, and critiques raised in relation to my work and that of related scholars are all, I believe, of great importance to the development of theory and practice in this area. I am therefore providing a brief set of responses to the problems raised, which I hope will be helpful in the further promotion of this global dialogue on ecology and Marxism.… | more |

The Planetary Emergency

Capitalism today is caught in a seemingly endless crisis, with economic stagnation and upheaval circling the globe. But while the world has been fixated on the economic problem, global environmental conditions have been rapidly worsening, confronting humanity with its ultimate crisis: one of long-term survival. The common source of both of these crises resides in the process of capital accumulation. Likewise the common solution is to be sought in a “revolutionary reconstitution of society at large,” going beyond the regime of capital.… It is still possible for humanity to avert what economist Robert Heilbroner once called “ecological Armageddon.” The means for the creation of a just and sustainable world currently exist, and are to be found lying hidden in the growing gap between what could be achieved with the resources already available to us, and what the prevailing social order allows us to accomplish. It is this latent potential for a quite different human metabolism with nature that offers the master-key to a workable ecological exit strategy.… | more |

"This valuable inquiry should be carefully studied and pondered, and should be taken as an incentive to action."
—Noam Chomsky

The Endless Crisis

How Monopoly-Finance Capital Produces Stagnation and Upheaval from the USA to China

The days of boom and bubble are over, and the time has come to understand the long-term economic reality. Although the Great Recession officially ended in June 2009, hopes for a new phase of rapid economic expansion were quickly dashed. Instead, growth has been slow, unemployment has remained high, wages and benefits have seen little improvement, poverty has increased, and the trend toward more inequality of incomes and wealth has continued. It appears that the Great Recession has given way to a period of long-term anemic growth, which Foster and McChesney aptly term the Great Stagnation. This incisive and timely book traces the origins of economic stagnation and explains what it means for a clear understanding of our current situation. … | more |

A Missing Chapter of Monopoly Capital

Introduction to Baran and Sweezy’s “Some Theoretical Implications”

Monopoly Capital: An Essay on the American Economic and Social Order by Paul A. Baran and Paul M. Sweezy, published in 1966, is one of the foundational works in the development of Marxian political economy in the United States and indeed the world, and is today recognized as a classic, having generated more than four-and-a-half decades of research and debate. The completion of the book, however, was deeply affected by Baran’s death, on March 26, 1964, two years before the final manuscript was prepared. Although all of the chapters were drafted in at least rough form and had been discussed a number of times the authors had not mutually worked out to their complete satisfaction certain crucial problems. Consequently, two chapters were left out of the final work.… What happened to these two missing chapters—“Some Implications for Economic Theory” and presumably “On the Quality of Monopoly Capitalist Society—II”—remained for many years a mystery. … | more |

Joan Acker’s Feminist Historical-Materialist Theory of Class

Marxism and feminism are usually seen as divorced from each other today, following the breakup of what Heidi Hartmann famously called their “unhappy marriage.” Yet, some theorists still show the influence of both. In my view, Joan Acker is both one of the leading analysts of gender and class associated with the second wave of feminism, and one of the great contributors to what has been called “feminist historical materialism.” In the latter respect, I would place her next to such important proponents of feminist standpoint theory as Nancy Hartsock, Dorothy Smith, and Sandra Harding. These thinkers, as Fredric Jameson has rightly said, represent the “most authentic” heirs of Lukács’s critical Marxist view articulating the proletarian standpoint—giving this dialectical insight added meaning by applying it to gender relations.… | more |

The Endless Crisis

The Great Financial Crisis and the Great Recession began in the United States in 2007 and quickly spread across the globe, marking what appears to be a turning point in world history. Although this was followed within two years by a recovery phase, the world economy five years after the onset of the crisis is still in the doldrums…. The one bright spot in the world economy, from a growth standpoint, has been the seemingly unstoppable expansion of a handful of emerging economies, particularly China. Yet, the continuing stability of China is now also in question. Hence, the general consensus among informed economic observers is that the world capitalist economy is facing the threat of long-run economic stagnation (complicated by the prospect of further financial deleveraging)…. It is this issue of the stagnation of the capitalist economy, even more than that of financial crisis or recession that has now emerged as the big question worldwide.… | more |

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