The central problem in advanced monopoly capitalism is not one of scarce resources clashing against innate, insatiable wants. Rather, it is one of an abundance of production clashing against saturated consumption and investment markets. In order to absorb potential economic output and forestall excess capacity, business interests must continuously search for new markets to exploit or entice existing customers who stand ready to buy the latest product, iteration, or service, and to induce new investment. The key to business survival in a capitalist economy is continual expansion of market share and reach: grow or die.… The efforts applied to this relentless drive undermine the conventional wisdom of market-determined pricing—for were a competitive price system in place, the funds for these expenditures would not exist. As I will show, the resources and funds expended in this quixotic endeavor to grow can be broadly referred to as the “economic surplus.” | more…
After fifty years, Paul Baran and Paul Sweezy’s Monopoly Capital has stood the test of time. Not only did it provide a lucid description of midcentury American society, but Monopoly Capital established a framework for analyzing events to come.… By bringing Marxian theory into their historical moment, they fomented many debates and encouraged the development of various perspectives, a legacy that has expanded to include analyses of the labor process, imperialism, finance, globalization, and the environment.… They elucidated a fundamental contradiction of the time. Capitalism is a system of self-expanding value that must continually accumulate, yet is confined by a social and institutional order that precludes rapid accumulation. This framework is especially useful for analyzing the fundamental problems of the twenty-first century. Among those crucial problems is the demise of the hydrocarbon economy. | more…
In 1964, Paul Baran and Paul Sweezy wrote an essay entitled “Notes on the Theory of Imperialism” for a festschrift in honor of the sixty-fifth birthday of the great Polish Marxist economist Michał Kalecki.… [T]he essay offered the first major analysis of multinational corporations within Marxian theory. Parts of it were incorporated into Baran and Sweezy’s Monopoly Capital in 1966, two years after Baran’s death. Yet for all that book’s depth, “Notes on the Theory of Imperialism” provided a more complete view of their argument on the growth of multinationals. In October and November 1969, Harry Magdoff and Sweezy wrote their article “Notes on the Multinational Corporation,” picking up where Baran and Sweezy had left off. That same year, Magdoff published his landmark The Age of Imperialism, which systematically extended the analysis of the U.S. economy into the international domain.… In the analyses of Baran, Sweezy, and Magdoff, as distinct from the dominant liberal perspective, the multinational corporation was the product of the very same process of concentration and centralization of capital that had created monopoly capital itself. | more…
Marx’s Capital presents a rigorous scientific analysis of the capitalist mode of production and capitalist society, and how they differ from earlier forms. Volume 1 delves into the heart of the problem. It directly clarifies the meaning of the generalization of commodity exchanges between private property owners (and this characteristic is unique to the modern world of capitalism, even if commodity exchanges had existed earlier), specifically the emergence and dominance of value and abstract social labor.… Volume 2 demonstrates why and how capital accumulation functions, more specifically, why and how accumulation successfully integrates the exploitation of labor in its reproduction and overcomes the effects of the social contradiction that it represents.… Volume 3 of Capital is different. Here Marx moves from the analysis of capitalism in its fundamental aspects (its “ideal average”) to that of the historical reality of capitalism.… To move from the reading of Capital (and particularly of volumes 1 and 2) to that of historical capitalisms at successive moments of their deployment has its own requirements, even beyond reading all of Marx and Engels. | more…
Thanks to breakthroughs in production and food science, agribusiness has been able to devise new ways to grow more food and get it more places more quickly. There is no shortage of news items on the hundreds of thousands of hybrid poultry—each animal genetically identical to the next—packed together in megabarns, grown out in a matter of months, then slaughtered, processed, and shipped to the other side of the globe. In Big Farms Make Big Flu, a collection of dispatches by turns harrowing and thought-provoking, Rob Wallace tracks the ways influenza and other pathogens emerge from an agriculture controlled by multinational corporations. | more…
One of the lasting contributions of the Frankfurt School of social theorists, represented especially by Max Horkheimer and Theodor Adorno’s 1944 Dialectic of Enlightenment, was the development of a philosophical critique of the domination of nature.… Yet their critique of the Enlightenment exploitation of nature was eventually extended to a critique of Marx himself as an Enlightenment figure, especially in relation to his mature work in Capital.… So all-encompassing was the critique of the “dialectic of the Enlightenment” within the main line of the Frankfurt School, and within what came to be known as “Western Marxism”…, that it led to the estrangement of thinkers in this tradition not only from the later Marx, but also from natural science—and hence nature itself. Consequently, when the ecological movement emerged in the 1960s and ’70s, Western Marxism, with its abstract, philosophical notion of the domination of nature, was ill-equipped to analyze the changing and increasingly perilous forms of material interaction between humanity and nature. | more…
Connections, both real and hoped for, between the labor movement and environmentalists have been news for at least fifteen years now. The possibility of such a connection came into wider view at the Seattle World Trade Organization protests in 1999, when alliances between trade unionists and other protest groups made headlines…. Despite the once-exciting and novel possibility being now institutionalized in such organizations as the Labor Network for Sustainability, the Blue-Green Alliance, and SustainLabour, the thrill seems to be gone for mainstream environmentalist discourse, and labor has largely faded from view.… [The struggle to reduce work hours is fertile ground for uniting the efforts of workers and environmentalists.]… That fight for time, however, came to an end decades ago. Now those with jobs demand higher wages instead, and perhaps even overtime work, while the many unemployed and underemployed fight to work at all. Today the dominant idea of a working-class agenda is to fight to be allowed to sell one’s time. | more…
Science tells us that a new and dangerous stage in planetary evolution has begun—the Anthropocene, a time of rising temperatures, extreme weather, rising oceans, and mass species extinctions. Humanity faces not just more pollution or warmer weather, but a crisis of the Earth System. If business as usual continues, this century will be marked by rapid deterioration of our physical, social, and economic environment. Large parts of Earth will become uninhabitable, and civilization itself will be threatened. Facing the Anthropocene shows what has caused this planetary emergency, and what we must do to meet the challenge. | more…
“Nature,” wrote Raymond Williams in Keywords, “is perhaps the most complex word in the language.” It is derived from the Latin natura, as exemplified by Lucretius’s great didactic poem De rerum natura (On the Nature of Things) from the first century BCE. The word “nature” has three primary, interrelated meanings: (1) the intrinsic properties or essence of things or processes; (2) an inherent force that directs or determines the world; and (3) the material world or universe, the object of our sense perceptions—both in its entirety and variously understood as including or excluding God, spirit, mind, human beings, society, history, culture, etc. | more…
We have finally reached the point where most people around the world believe that climate change is really happening. Almost a decade ago, the landmark report by Nicholas Stern sparked a fierce debate among economists, not over whether climate change was real, but over the costs of addressing it. In the years since, the Intergovernmental Panel on Climate Change (IPCC) has published further alarming reports on projected future global temperatures, rates of glacial melting, and sea levels. Most recently, last December saw an unprecedented agreement by nearly 200 countries at the Paris climate summit to take steps to address the problem.… My concern here is therefore not to continue making the case for the reality of climate change, but instead to show how that reality is portrayed—and distorted—in the mainstream media, with behind-the-scenes assistance from orthodox economic analysis. | more…
Todd Jailer, Miriam Lara-Meloy, and Maggie Robbins, The Workers’ Guide to Health and Safety (Berkely, CA: Hesperian, 2015), 576 pages, $34.95, paperback.
The new Workers’ Guide to Health and Safety—with drawings on every page—is a fun read, which is an unusual thing to say about a book with such a serious intent. Garrett Brown, an industrial hygienist with decades of experience as an inspector and activist in California, Mexico, and Bangladesh, claimed with some justification that of all the books on occupational health and safety, “almost none…are accessible to workers or their organizations.” The Workers’ Guide is the first major book aimed at organizing for healthier conditions in the labor-intensive export industries of countries like Bangladesh and China, Mexico’s maquiladora frontier, in Central America and Southeast Asia, and even in the United States itself, where for many, working and living conditions are being beaten down. | more…
The March/April 2016 issue of Foreign Affairs, published by the Council on Foreign Relations, is devoted in large part to the topic of economic stagnation.… [Of the] eight articles on stagnation, only one…—”The Age of Secular Stagnation” by Lawrence H. Summers—is, in our opinion, of any real importance.… Summers heavily criticizes those like Robert J. Gordon, in The Rise and Fall of American Growth (2016), who attribute stagnation to supply-side “headwinds”…blocking productivity growth.… Likewise Summers dispatches those like Kenneth Rogoff who see stagnation as merely the product of a debt supercycle associated with periodic financial crises.… Despite such sharp criticisms of other mainstream interpretations of stagnation, Summers’s own analysis can be faulted for being superficial and vague, lacking historical concreteness.… In fact, the current mainstream debate on secular stagnation is so superficial and circumspect that one cannot help but wonder whether the main protagonists—figures like Summers, Gordon, Paul Krugman, and Tyler Cowen—are not deliberately tiptoeing around the matter, worried that if they get too close or make too much noise they might awaken some sleeping giant (the working class?) as in the days of the Great Depression and the New Deal. | more…
