Friday July 31st, 2015, 9:22 am (EDT)

Political Economy

The New Imperialism of Globalized Monopoly-Finance Capital

An Introduction

It is now a universal belief on the left that the world has entered a new imperialist phase.… The challenge for Marxian theories of the imperialist world system in our times is to capture the full depth and breadth of the classical accounts, while also addressing the historical specificity of the current global economy. It will be argued in this introduction (in line with the present issue as a whole) that what is widely referred to as neoliberal globalization in the twenty-first century is in fact a historical product of the shift to global monopoly-finance capital or what Samir Amin calls the imperialism of “generalized-monopoly capitalism.”… | more |

Contemporary Imperialism

Lenin, Bukharin, Stalin, and Trotsky in Russia, as well as Mao, Zhou Enlai, and Den Xiaoping in China, shaped the history of the two great revolutions of the twentieth century. As leaders of revolutionary communist parties and then later as leaders of revolutionary states, they were confronted with the problems faced by a triumphant revolution in countries of peripheral capitalism and forced to “revise”…the theses inherited from the historical Marxism of the Second International.… With the benefit of hindsight, I will indicate here the limitations of their analyses. Lenin and Bukharin considered imperialism to be a new stage (“the highest”) of capitalism associated with the development of monopolies. I question this thesis and contend that historical capitalism has always been imperialist, in the sense that it has led to a polarization between centers and peripheries since its origin (the sixteenth century), which has only increased over the course of its later globalized development.… | more |

Behind the Veil of Globalization

Globalization is not a novel development in the history of capitalism. In his final Monthly Review article, Paul Sweezy argued that globalization is a process, and that it has been occurring for a long time.… The accumulation of capital…has always meant expansion. Furthermore, this very process of growing and spreading is global in scope and, most importantly, imperialistic in its characteristics. Marxist scholars have long argued that imperialism has always accompanied capitalism…. Nevertheless, even if we start with the idea that globalization—or global capitalist expansion—is not novel, this does not trample the argument that the development of such expansion is marked by new characteristics in certain periods. Examining these historically specific characteristics can highlight the imperialistic “nature” of capitalism throughout history, including the development of our current global economy, which will be the focus of this essay.… | more |

Imperialism and the Transformation of Values into Prices

In this article, we aim to demonstrate that the low prices of goods produced in the global South and the attendant modest contribution of its exports to the Gross Domestic Product of the North conceals the real dependence of the latter’s economies on low-waged Southern labor. We argue that the relocation of industry to the global South in the past three decades has resulted in a massive increase of transferred value to the North. The principal mechanisms for this transfer are the repatriation of surplus value by means of foreign direct investment, the unequal exchange of products embodying different quantities of value, and extortion through debt servicing.… | more |

Imperialism in the Twenty-First Century

The globalization of production and its shift to low-wage countries is the most significant and dynamic transformation of the neoliberal era. Its fundamental driving force is what some economists call “global labor arbitrage”: the efforts by firms in Europe, North America, and Japan to cut costs and boost profits by replacing higher-waged domestic labor with cheaper foreign labor, achieved either through emigration of production (“outsourcing,” as used here) or through immigration of workers. Reduction in tariffs and removal of barriers to capital flows have spurred the migration of production to low-wage countries, but militarization of borders and rising xenophobia have had the opposite effect on the migration of workers from these countries—not stopping it altogether, but inhibiting its flow and reinforcing migrants’ vulnerable, second-class status.… | more |

June 2015 (Volume 67, Number 2)

June 2015 (Volume 67, Number 2)

In two Monthly Review special issues, “Education Under Fire: The U.S. Corporate Attack on Students, Teachers, and Schools” (July-August 2011) and “Public School Teachers Fighting Back” (June 2013), we sounded an alarm regarding the rapid restructuring and privatization of U.S. K–12 public schools. In terms of the scale of nationwide restructuring, the corporate takeover of education is unprecedented in modern U.S. history. The closest comparison we can come up with is the destruction of the street car systems across the United States and the building of the interstate highway system—in which freeways went right through cities for the first time, often in the face of neighborhood and community resistance. With respect to K–12 education, unimaginable amounts of private funds have gone into pressuring and corrupting government at every level, while the control mechanisms of the new educational system are increasingly left in private, not public, hands. The Common Core Standards and related high-stakes tests are at the center of this new system, and are the product of private corporate groups outside the direct reach of government.… | more |

The “New Turkey”: Fetishizing Growth with Fatal Results

Turkey’s ruling party has turned the country, which it calls “the new Turkey,” into a capitalist nightmare: a triad of neoliberal economics, political despotism, and Islamist conservatism. This article provides an overview of neoliberalism in Turkey, then looks at the government’s extraction policies, highlighting the Soma mine massacre as one tragic example of the destructive policies of the governing party, the Adalet ve Kalkınma Partisi (AKP, Justice and Development Party). It also examines the extreme authoritarianism of President Recep Tayyip Erdoğan (formerly prime minister), and the growing cultural-relgious conservatism, which the AKP has interlaced with Islamist rhetoric. This hegemonic triad of neoliberalism, despotism, and conservatism is an especially dangerous one. However, it is being increasingly criticized, and resistance movements against neoliberal policies are growing. All of this gives some hope for Turkey’s future.… | more |

The Strength and Fragility of the Brazilian Economy

Analyzing the Brazilian economy is a difficult and complex task; the current indicators register results ranging from excellent to mediocre and worrisome, depending on the variable observed. For example, the nation has advanced into modernity in a few sectors, while at the same time, in recent years, new forms of dependency from the center of capitalism deepened. Further complexities arise when, beyond the economy, one takes into consideration not only the results of so-called “inclusion” policies and the popularity of President Dilma Rousseff (popularly referred to as “Dilma”), but also the number of strikes and public displays of disenchantment that are emerging in every corner of the country.… To summarize some of the conclusions: since the government of Luis Inácio Lula da Silva (“Lula”), the Brazilian economy has widened its internal market through policies that have raised the minimal wage, transferred income to the poorest within the nation, increased the availability of credit to the low and middle segments of the population, and reduced taxation (mainly on manufactured goods in the essential consumption basket). Such widening of the market, with a low impact on imports, would in theory ensure the maintenance of a certain level of growth, regardless of the international dynamics, and, indeed, it has helped Brazil reach a positive economic performance during the worst of the recent global economic crisis and its aftermath.… Nonetheless, when the impacts of the global recession deepened with the sovereign debt crisis in Europe, these macroeconomic policies did not yield the same effect, at most achieving modest growth.… | more |

The Scars of the Ghetto

The article that appears below is reprinted from the February 1965 issue of Monthly Review. Despite her small body of work and short life, Lorraine Hansberry (1930–1965) is considered one of the great African-American dramatists of the twentieth century. Her play A Raisin in the Sun (1959) is required reading, and performed regularly, in high schools and colleges nationwide, as well as on Broadway and London’s West End. Hansberry’s association with the left, and especially with Monthly Review, began in her teenage years. When she moved to New York, she became good friends with Leo Huberman and Paul M. Sweezy. In spring 1964, although terminally ill with pancreatic cancer, she left her hospital bed to speak at a benefit for Monthly Review Press; her speech appeared posthumously as the article below.…

Manufacturing America’s Dreams

Auto companies shield their low-tech exploitation of workers behind high-tech displays of mechanical prowess. The less a consumer knows about the blood and guts of manufacturing, the easier it is to buy the dream. So how does America think all this crap gets built?… Last summer, in a desperate attempt to entice young viewers to buy grandpa’s dream car, General Motors (GM) ran a TV ad that featured a chorus line of robot arms dancing to techno music around a series of Cadillacs strutting like runway models on chrome-plated wheels.… Don’t let yourself be seduced and deluded. The auto industry’s master talent isn’t robotics, it’s the ability to automatize humans—including drivers.… | more |

The Nonprofit-Corporate Complex

An Integral Component and Driving Force of Imperialism in the Phase of Monopoly-Finance Capitalism

According to Michał Kalecki, the imperialist system of the Keynesian era rested on a triangular structure that was composed of (a) state-financed military production (i.e., the military-corporate complex, often called the “military-industrial complex”), (b) media propaganda (media-corporate complex), and (c) a putative full-employment/welfare-oriented superstructure (Keynesianism) underpinned by the war machine, serving to justify it. Building on Kalecki’s work, John Bellamy Foster, Hannah Holleman, and Robert W. McChesney provided an updated version of the theory of imperialism of the monopoly-capital tradition by laying emphasis on the primary role of the above triangle in the restructuring and preservation of the contemporary imperialist system.. Expanding on their work, I argue that one of the most significant changes in the triangular structure of contemporary imperialism is in its third pillar, particularly with the abandonment of the welfare-oriented paradigm and the adoption of the neoliberal globalization project.… | more |

A Rational Agriculture Is Incompatible with Capitalism

From humanitarian and ecological viewpoints, many aspects of the capitalist economic system are irrational; although they are certainly rational from the more limited standpoint of the individual business or capitalist seeking to make profits.… With regard to the environment there are scores of examples of irrational behavior by capitalist businesses that have the ultimate goal of making profits. Many practices and side effects of the way the system functions degrade the ecosystem and its processes on which we depend and may also directly harm humans. For example, it is not rational to introduce chemicals into the environment, including into products we use daily, that are either toxic or cause illnesses of various types. Yet there are over 80,000 chemicals used in the United States; few of them are tested for their effects on people or other species, and many commonly used ones are suspected to be carcinogens or have other detrimental effects.… | more |

GMOs: Capitalism’s Distortion of Biological Processes

Last summer, astrophysicist Neil DeGrasse Tyson was asked to comment on the furor surrounding genetically modified organisms (GMOs). He responded with the assertion that humans have been genetically modifying organisms for millennia, giving us food crops such as seedless watermelons or corn. This process, he stated, is little different from genetic engineering.… Tyson’s first mistake lies in his equation of artificial selection and genetic modification, reflecting common misunderstandings of both the sources of genetic variation and the distinction between the latter and mechanisms of evolutionary change. Tyson’s second mistake is his failure to see the bigger picture. The dynamic of capital accumulation is fundamentally at odds with ecosystem dynamics. And technology, in our society, is the handmaiden of capital accumulation. This article will elaborate on these distinctions and discuss some of the basic biological processes underlying GMOs and their potential risks, especially risks of dispersal. It will then examine how capitalism molds the technology and accentuates the risks.… | more |

Bangladesh—A Model of Neoliberalism

The Case of Microfinance and NGOs

In 2006, a few months after the Nobel Peace Prize for Muhammad Yunus and Grameen Bank was announced, I was visiting Germany [where many] Germans…looked at it as a victory over neoliberalism. One German activist theatre group invited me to the show of their latest drama, Taslima and the Microcredit. The show was eye opening for me: I realized to what extent Grameen Bank had been misunderstood in the West, and how media campaigns and public relations activities, including embedded studies, created a myth around the Grameen Bank and Yunus.… The theatre organizers requested me to join a discussion following the show. Standing before a mesmerized audience, I had to tell them the hard truth with facts and figures. I said that, despite their best wishes, they were making a terrible mistake. Grameen had never been an alternative to the World Bank-pushed neoliberal economic model; rather, it was born and brought up as a necessary supplement to it.… | more |

The Personal Is Political

The Political Economy of Noncommercial Radio Broadcasting in the United States

In this essay, I look at the problems facing progressives and those on the political left in the United States in participating in political analysis and debate in mainstream journalism and the news media. I focus on radio broadcasting, as this is where much of political discussion takes place in the United States. Radio broadcasting is the least expensive of the media for production and reception, is ubiquitous, has adapted itself to the Internet, and is uniquely suited for locally based programming.… I look specifically at my own experience hosting a weekly public affairs program on an NPR (National Public Radio)-affiliated radio station in Illinois from 2002–2012. This was, to my knowledge, the only NPR series hosted by a socialist in the network’s history.… | more |

In Walt We Trust

In Walt We Trust

How a Queer Socialist Poet Can Save America from Itself

Marsh identifies four sources for our contemporary malaise (death, money, sex, democracy) and then looks to a particular Whitman poem for relief from it. He makes plain what, exactly, Whitman wrote and what he believed by showing how they emerged from Whitman’s life and times, and by recreating the places and incidents (crossing Brooklyn ferry, visiting wounded soldiers in hospitals) that inspired Whitman to write the poems. Whitman, Marsh argues, can show us how to die, how to accept and even celebrate our (relatively speaking) imminent death. Just as important, though, he can show us how to live: how to have better sex, what to do about money, and, best of all, how to survive our fetid democracy without coming away stinking ourselves. The result is a mix of biography, literary criticism, manifesto, and a kind of self-help you’re unlikely to encounter anywhere else.… | more |

A Critical Reading of Steve Keen’s Debunking Economics (L’imposture économique

Samir Amin is director of the Third World Forum in Dakar, Senegal. His books published by Monthly Review Press include The Liberal Virus, The World We Wish to See, The Law of Worldwide Value, and, most recently, The Implosion of Contemporary Capitalism. This article was translated from the French by Shane Mage. 1. Let me begin by saying that I […]… | more |

February 2015 (Volume 66, Number 9)

February 2015 (Volume 66, Number 9)

John Cassidy, who writes on economics for the New Yorker, is in our view one of the most interesting anhd creative commentators on economic analysis and trends writing in the mainstream today. His perspective might be best characterized as institutionalist-realist, in the tradition of thinkers like Thorstein Veblen, John Kenneth Galbraith, and Hyman Minsky.… Cassidy’s latest critical contribution is an online New Yorker news item published on December 12, 2014, carrying the rather prosaic title, “The Winner of the Spending Bill Vote: Jamie Dimon.”… [In this piece] Cassidy…explain[s] how the spending bill passed by the House of Representatives included a rider that rolled back regulations that had been imposed after the Great Financial Crisis on some of the riskier activities of banks. Such speculative activities were to be transferred to the unregulated bank subsidiaries not covered by the federally guaranteed bank insurance system. This has now been reversed and banks are again allowed to engage directly in such high-risk speculative activities, with the losses being picked up by the general public.… There is no doubt that Cassidy is correct, and that the analyses of “left-left” thinkers like Sweezy, one of Monthly Review’s founding editors, and Chomsky, an MR author, have been generally on the mark in pointing out that such outcomes are to be expected in the state management of the economy.… | more |

Crossing the River of Fire

The Liberal Attack on Naomi Klein and This Changes Everything

Naomi Klein’s new book, This Changes Everything [argues that the source of the looming crisis from climate change] is not the planet, which operates according to natural laws, but rather the economic and social system in which we live, which treats natural limits as mere barriers to surmount. It is now doing so on a planetary scale, destroying in the process the earth as a place of human habitation.… In the age of climate change, Klein argues, a system based on ever-expanding capital accumulation and exponential economic growth is no longer compatible with human well-being and progress—or even with human survival over the long run.… In this way Klein…signals that she has now, in William Morris’s famous metaphor, crossed “the river of fire” to become a critic of capital as a system.… [This] has led to a host of liberal attacks on This Changes Everything, often couched as criticisms emanating from the left. These establishment criticisms of her work, we will demonstrate, are disingenuous, having little to do with serious confrontation with her analysis. Rather, their primary purpose is to rein in her ideas, bringing them into conformity with received opinion. If that should prove impossible, the next step is to exclude her ideas from the conversation.… | more |

Neoliberal Co-optation of Leading Co-op Organizations, and a Socialist Counter-Politics of Cooperation

Many people think of cooperatives as small, locally owned businesses, such as groceries, cafes, or bicycle shops, where people can work in an equal and participatory non-capitalist organization. In reality, the U.S. co-op movement is tied to federal agencies whose agenda is promoting neoliberalism, both domestically and abroad, and the co-op movement itself has neoliberal leaders. Many co-ops in name are profit-driven capitalist corporations in practice. And even in the abstract, the co-op principles of smaller co-ops enable neoliberal cooperative politics. All of this, however, raises the question of what a co-op based on socialist values would be, and China’s Nanjie village provides a living example of that.… | more |

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