Political Economy
The analysis proposed here regarding the role of Europe and the Middle East in the global imperialist strategy of the United States is set in a general historical vision of capitalist expansion that I have developed elsewhere. In this view capitalism has always been, since its inception, by nature, a polarizing system, that is, imperialist. This polarization-the concurrent construction of dominant centers and dominated peripheries, and their reproduction deepening in each stage-is inherent in the process of accumulation of capital operating on a global scale | more…
In 1996 President Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), to end “welfare as we know it.” PRWORA, euphemistically referred to as “welfare to work” or simply “welfare reform,” has fundamentally changed the status of women within U.S. capitalism. Historically, women’s roles in the sexual division of labor have been to reproduce the laborer (cook and keep house) and reproduce the labor force (have children). If women had to work in the formal labor force, then society demanded that they hold jobs appropriate to their gender. There has always been a gender-based social discipline of women whether they were wage earners or homemakers. It is interesting to note that still today beauty contests, sexual harassment, and compulsory use of birth control pills are all forms of discipline enforced on women in many third world factories. Of course, sexual harassment is common in the workplaces of the rich capitalist countries as well | more…
Tonight as cargoes of my young
fellow countrymen and women are being hauled
into positions aimed at death, positions
they who did not will it suddenly
have to assume
I am thinking of Ed Azevedo
half-awake in recovery
if he has his arm whole
and how much pain he must bear
under the drugs | more…
The following brief intellectual biography of Paul Sweezy was drafted in September 2003 shortly before I saw Paul for the last time. It conveys many of the basic facts of his life. But as with all biographies of leading intellectuals it fails to capture the brilliance of his work, which must be experienced directly through his own writings. Nor is the warmth of Paul’s character adequately conveyed here. A short personal note is therefore needed. What was so surprising about Paul was his seemingly endless generosity and humanity. Paul gave freely of himself to all of those seeking his political and intellectual guidance. But a few, such as myself, were particularly blessed in that they experienced this on a deeper, more intense level. For decades Paul was concerned that Monthly Review not perish as had so many socialist institutions and publications in the past. He recognized early on that the continuance of the magazine and the tradition that it represented required the deliberate cultivation of new generations of socialist intellectuals. I was fortunate to be singled out while still quite young as one of those. For decades Paul wrote me letter after letter—no letter that I wrote to him ever went unanswered—sharing his knowledge, intellectual brilliance, and personal warmth. It was an immense, indescribable gift | more…
Described by the Wall Street Journal as “the ‘dean’ of radical economics,” Paul Sweezy has more than any other single person kept Marxist economics alive in North America.* One work would be sufficient to have achieved this—The Theory of Capitalist Development (first published in 1942). During the period of the 1950s and 1960s, this was the book to which one turned to learn about Marxist economics | more…
The question “Why Stagnation?” has a rather special significance for me. I started my graduate work in economics exactly fifty years ago this year. The cyclical downturn which began in 1929 was nearing the bottom. Unemployment in that year, according to government figures, was 23.6 percent of the labor force, and it reached its high point in 1933 at 24.9 percent. It remained in the double-digit range throughout the decade. Still, a recovery began in 1933, and it turned out to be the longest on record up to that time. Even at the top in 1937, however, the unemployment rate was still 14.3 percent, and it jumped up by the end of the year. That also happens to be the year I got my Ph.D. Can you imagine a set of circumstances better calculated to impress upon a young economist the idea that the fundamental economic problem was not cyclical ups and downs but secular stagnation? | more…
Among Marxian economists “monopoly capitalism” is the term widely used to denote the stage of capitalism which dates from approximately the last quarter of the nineteenth century and reaches full maturity in the period after the Second World War. Marx’s Capital, like classical political economy from Adam Smith to John Stuart Mill, was based on the assumption that all commodities are produced by industries consisting of many firms, or capitals in Marx’s terminology, each accounting for a negligible fraction of total output and all responding to the price and profit signals generated by impersonal market forces. Unlike the classical economists, however, Marx recognized that such an economy was inherently unstable and impermanent. The way to succeed in a competitive market is to cut costs and expand production, a process which requires incessant accumulation of capital in ever new technological and organizational forms. In Marx’s words: “The battle of competition is fought by cheapening of commodities. The cheapness of commodities depends, ceteris paribus, on the productiveness of labor, and this again on the scale of production. Therefore the larger capitals beat the smaller.” Further, the credit system which “begins as a modest helper of accumulation” soon “becomes a new and formidable weapon in the competition in the competitive struggle, and finally it transforms itself into an immense social mechanism for the centralization of capitals” (Marx, 1894, ch. 27) | more…
It is obvious that humankind has arrived at a crucial turning point in its long history. Nuclear war could terminate the whole human enterprise. But even if this catastrophic ending can be avoided, it is by no means certain that the essential conditions for the survival and development of civilized society as we know it today will continue to exist | more…
Two and a half years after its spectacular crash, Argentina seems to be entering a new political and economic phase. President Néstor Kirchner, elected in May 2003, has claimed that “the period of neoliberalism is over” and economic activity has recovered faster than generally anticipated. Payments are being made on a part of the debt held by favored creditors (above all the IMF), and international pressure to refinance and make payments on the defaulted debt has increased. Neoliberal economists remain totally discredited, but the Kirchner regime’s policy of partial payments on the debt, financed by revenues generated by severe restrictions on public spending, is applauded by a coterie of supposed “Keynesian” and “national” economists.… Questions remain: What happened to the external debt disaster? Is the enormous social crisis, for a moment extensively covered by the press and media, over? And even: Is Argentina, a neoliberal model in the 1990s of an “open, deregulated and privatized economy” now inaugurating a reverse miracle of a new type (perhaps to be termed Keynesian), a “national capitalism with a human face”? | more…
In 1995 a foreign reporter interviewed me about Mao. She sought me out as someone who had met the man in person and openly admired him over the years. She asked, “What about all the people he killed? What about all those famine deaths? And what about all the suffering and destruction of people in the Cultural Revolution?” With these questions she lined herself up with the current media line on Mao, the line of conventional wisdom, which is to present him as a monster—Mao, the monster. The usually more enlightened BBC reached a new low that week with their Mao centenary program. It made him out to be not only a monster but also a monstrous lecher far gone into orgies with teenage girls. Such a low level of attack! It cheapened the BBC and should have backfired, but you never can tell these days | more…
An indication of just how bad things have become for the U.S. invaders and occupiers of Iraq is that comparisons with the Vietnam War are now commonplace in the U.S. media. In a desperate attempt to put a stop to this, President Bush intimated on April 13, in one of his rare press conferences, that the mere mention of the Vietnam analogy in relation to the present war was unpatriotic and constituted a betrayal of the troops. Yet the question remains and seems to haunt the U.S. occupation of Iraq: To what extent has Iraq become another “Vietnam” for American imperialism? | more…
I want to address a very simple question: What keeps capitalism going? or, in the somewhat more technical language of Marxists, How does capitalism as a system reproduce itself? | more…