Review of the Month
Socialists since the time of Marx have been proponents of democracy, but they have argued that democracy in capitalist societies is fundamentally flawed. In capitalist societies, the wealthy have tremendous social and economic advantages over the working class that undermine political equality, a presupposition for viable democracy. In addition, under capitalism the most important economic issues—investment and control over production—are not the province of democratic politics but, rather, the domain of a small number of wealthy firms and individuals seeking to maximize their profit in competition with each other. This means that political affairs can only indirectly influence economics, and that any party or individual in power has to be careful not to antagonize wealthy investors so as to instigate an investment strike and an economic collapse that would generally mean political disaster | more…
Social Security was the crowning achievement of Roosevelt’s New Deal. It has been the most successful and still remains the most popular of all U.S. government programs. More than a pension program, Social Security provides for workers and their families in the case of early death and disability, in addition to retirement. In 1997, it provided about twelve trillion dollars worth of life insurance alone, more than that of the entire private life-insurance industry. Furthermore, it does all of this in the form of social insurance, in which the distribution and the amount of benefits provided are determined by family relation- ships and basic economic rights-factors that private insurance and pension plans ignore. Nearly one-fifth of the elderly in the United States rely on Social Security as virtually their sole source of income, while two-thirds of all recipients depend on it for at least half of their income | more…
Some wags claim that it is the conservatives who fear socialism, while the radicals believe that capitalism will last forever. Conservatives, they say, fear widespread popular discontent, while radicals abandon hope of a revolutionary overthrow of capitalism. An exaggeration? Of course. Even so, this witticism is not inappropriate. Many on the left have indeed retreated from class and a vision of a democratic, egalitarian socialism. The important social issues of our day—race, gender, and the environment—more often than not are divorced from the role of class structure. The rule of the capitalist class and the class struggle are shoved to the back burner. Whether consciously or not, the implicit assumption underlying the retreat from class is that capitalism will somehow or other go on and on as it creates miraculous new technology. Best then to stick to making those adjustments in social conditions that the system will presumably allow | more…
History, as if to warn us continuously against any tendency toward complacency, is full of ironies. As recently as a few months ago, the close of the twentieth century had come to be associated, in the prevailing view of the vested interests, with “endism”: the end of class struggle, the end of revolution, the end of imperialism, the end of dissent—even the end of history. The new century and new millennium were supposed to symbolize that all of this had been left behind and that we could look forward to a new era of infinite progress based on the New Economy of the information age, which would usher in a gentler, kinder, virtual capitalism. The main worry was a technical glitch known as Y2K. Would computers across the world malfunction on January 1, 2000? | more…
The twentieth century came to a close in an atmosphere astonishingly reminiscent of that which had presided over its birth—the “belle époque” (and it was beautiful, at least for capital). The bourgeois choir of the European powers, the United States, and Japan (which I will call here “the triad” and which, by 1910, constituted a distinct group) were singing hymns to the glory of their definitive triumph. The working classes of the center were no longer the “dangerous classes” they had been during the nineteenth century and the other peoples of the world were called upon to accept the “civilizing mission” of the West | more…
It is an old axiom, common to both Marxian and Keynesian economics, that uneven, class-based distribution of income is a determining factor of consumption and investment. How much is spent for consumption goods depends on the income of the working class. Workers necessarily spend almost all of their income on consumption, with relatively little left over for savings or investment. Capitalists, on the other hand, spend only a small percent- age of their income for personal consumption. The overwhelming proportion of the income of capitalists and their corporations is devoted to investment | more…
Economic analysts, as everyone knows, have widely differing views on the way the economy works. The single most important division lies between right and left—a division that has its roots in class. But even among those on the left there are areas of sharp disagreement. One of these is over the centrality of the Keynesian revolution to the development of economics. Did the revolution in economic thought, associated with thinkers such as Keynes and Kalecki, teach things that Marxist political economists should view as essential? Another disagreement is over the role of monopoly and competition. How central is the concentration and centralization of capital to our understanding of the workings of capitalism today—a full century after Marxists and other radicals first raised the question of monopoly capitalism? Whatever one’s abstract theory is—and all theories by definition rely on a degree of abstraction—its usefulness lies in its capacity to make sense of everyday reality, while providing the strategic analysis necessary for practical revolutionary solutions. | more…
Understanding the Politics of Globalization
The “Seattle Shock”-as Business Week called it in an editorial that warned of a popular backlash against “our very economic system”-reflects heartfelt indignation by the financial press at the intrusion of mass democracy into an elite discourse. In the New York Times, columnist Thomas Friedman raged at anti-World Trade Organization (WTO) protesters, whom he presents as “flat-earth advocates” duped by knaves like Pat Buchanan. Friedman, perhaps the most obtuse of the big-time columnists, complains that “What’s crazy is that the protesters want the W.T.O. to become precisely what they accuse it of already being-a global government | more…
Primitive Accumulation in Russia and China
The Russian bank laundering scandal in the newspapers last fall is only the latest installment in the ongoing saga of corruption coming out of the former Soviet Union. The more important question is: where did they get the money in the first place? How, for example, did the former Premier of the Ukraine manage to buy a seven million dollar mansion in Marin County, California, on his official salary of a few thou- sand dollars a year? The answer is only too apparent: Moscow’s gangster rule has become so well known that the term “Mafia” has lost its exclusively Italian connotation. China is not much better | more…
On November 30,1999, when the World Trade Organization (WTO) opened its third round of ministerial meetings, the three thousand official delegates, two thousand journalists, and other registered observers were greatly outnumbered by the tens of thousands of protesters who came from all over the world to denounce the organization. Estimates of protester numbers ranged to forty thousand, according to the Seattle Times, which told its readers that the demonstrations were larger than those of 1970, when twenty to thirty thousand people (ten thousand according to the Seattle Times) shut down Interstate 5 to protest the Vietnam War. The parallel is appropriate. The still-growing movement in opposition to efforts of institutions such as the WTO to take over the management of the international economy may well be larger than any popular protest movement of the last twenty years or more. | more…
The economic crisis that has been affecting the global economy for the last two and a half years started in East Asia. We’ve heard story after story about the problems in Thailand, South Korea, Indonesia, Malaysia, China, and even Japan—but we’ve heard almost nothing about the situation in the Philippines. Is there something that the U.S. government, the International Monetary Fund (IMF), and the World Bank don’t want us to know about the situation there? | more…
Aimé Césaire’s Discourse on Colonialism might be best described as a declaration of war. I would almost call it a “third world manifesto,” but hesitate because it is primarily a polemic against the old order bereft of the kind of propositions and proposals that generally accompany manifestos. Yet, Discourse speaks in revolutionary cadences, capturing the spirit of its age just as Marx and Engels did 102 years earlier in their little manifesto. First published in 1950 as Discours sur le colonialisme, it appeared just as the old empires were on the verge of collapse, thanks in part to a world war against fascism that left Europe in material, spiritual, and philosophical shambles. It was the age of decolonization and revolt in Africa, Asia, and Latin America | more…
Global Capitalism in a World of Nation-States
The word “capitalism” is typically applied to a very wide and diverse range of cases—from the United States to Japan, Russia, Brazil, or South Africa. We use the word in this way on the premise that, for all their diversities, all these cases have in common certain basic social forms and economic laws of motion, including a common tendency to crisis. And we talk about “global” capitalism on the premise that national capitalist economies are interconnected, that they are integrated in a global system driven by the same capitalist laws of motion, and that economic crises and prolonged downturns like the current one are not national in origin but are rooted in the general dynamics that drive the whole global economy and in the relations that bind all capitalist economies together | more…