Paul Mason: “The end of capitalism has begun”

July 20, 2015 at 6:53 pm (capitalism, capitalist crisis, economics, fantasy, Guardian, intellectuals, Jim D, reformism)

This has been causing some excitement in liberal-left circles, as it apparently means would-be lefties can just wait for “post-capitalism” to happen, while working in retail management or small business:

The red flags and marching songs of Syriza during the Greek crisis, plus the expectation that the banks would be nationalised, revived briefly a 20th-century dream: the forced destruction of the market from above. For much of the 20th century this was how the left conceived the first stage of an economy beyond capitalism. The force would be applied by the working class, either at the ballot box or on the barricades. The lever would be the state. The opportunity would come through frequent episodes of economic collapse.

Instead over the past 25 years it has been the left’s project that has collapsed. The market destroyed the plan; individualism replaced collectivism and solidarity; the hugely expanded workforce of the world looks like a “proletariat”, but no longer thinks or behaves as it once did.

If you lived through all this, and disliked capitalism, it was traumatic. But in the process technology has created a new route out, which the remnants of the old left – and all other forces influenced by it – have either to embrace or die. Capitalism, it turns out, will not be abolished by forced-march techniques. It will be abolished by creating something more dynamic that exists, at first, almost unseen within the old system, but which will break through, reshaping the economy around new values and behaviours. I call this postcapitalism.

As with the end of feudalism 500 years ago, capitalism’s replacement by postcapitalism will be accelerated by external shocks and shaped by the emergence of a new kind of human being. And it has started.

Postcapitalism is possible because of three major changes information technology has brought about in the past 25 years. First, it has reduced the need for work, blurred the edges between work and free time and loosened the relationship between work and wages. The coming wave of automation, currently stalled because our social infrastructure cannot bear the consequences, will hugely diminish the amount of work needed – not just to subsist but to provide a decent life for all.

Second, information is corroding the market’s ability to form prices correctly. That is because markets are based on scarcity while information is abundant. The system’s defence mechanism is to form monopolies – the giant tech companies – on a scale not seen in the past 200 years, yet they cannot last. By building business models and share valuations based on the capture and privatisation of all socially produced information, such firms are constructing a fragile corporate edifice at odds with the most basic need of humanity, which is to use ideas freely.

Third, we’re seeing the spontaneous rise of collaborative production: goods, services and organisations are appearing that no longer respond to the dictates of the market and the managerial hierarchy. The biggest information product in the world – Wikipedia – is made by volunteers for free, abolishing the encyclopedia business and depriving the advertising industry of an estimated $3bn a year in revenue.

Almost unnoticed, in the niches and hollows of the market system, whole swaths of economic life are beginning to move to a different rhythm. Parallel currencies, time banks, cooperatives and self-managed spaces have proliferated, barely noticed by the economics profession, and often as a direct result of the shattering of the old structures in the post-2008 crisis.

…read the whole article here

A comrade comments:
“It’s complete nonsense; not only utopian in the worst sense of the word but also depressingly gradualist and reformist (its central claim is that ‘post-capitalism’ will just sort of emerge as the result of a proliferation of… well, I don’t know what exactly: file sharing?).

“The ‘would-be lefties’ drawing the conclusion that they can ‘wait for post-capitalism to happen’ – i.e., without having to think, or organise, or act, or struggle in any meaningful way at all – seems to me an entirely faithful reading of the article.

“It’s like the worst bits of Owen and Proudhon repackaged for the digital age and dressed up as some amazingly innovative, novel theory. But at least those people (even Proudhon, who was basically a reactionary) had a bit of fighting spirit about them, wanted to build a movement (of sorts), and wanted people to fight the system (in however distorted or misguided a way). What does Mason want us to do? Surf the web?

“It’s actually quite sad from a guy who probably ought to know better, and who only a few years ago was writing books about how the key aspect of contemporary capitalism was the globalisation of the working class. He seems now to have decided that this isn’t really that important after all.”

Permalink 9 Comments

What’s left: social democracy in disarray

July 16, 2015 at 7:27 pm (capitalism, Europe, labour party, left, Marxism, populism, posted by JD, reactionay "anti-imperialism", reformism, socialism)

By Alan Johnson

The author has given us permission to republish this article, which first appeared in the Summer 2015 edition of World Affairs. Alan welcomes comment, criticism and discussion on the issues raised in the article. As always, when we publish a discussion piece like this, it should not be assumed that everyone associated with Shiraz agrees with it:

_________________________________________________________________________

“I’m frankly a bit fucked off about all this. Like practically everyone else on the Left, I expected to be able to meet the worst crisis of capitalism in generations with more aplomb.” — Richard Seymour, Against Austerity: How We Can Fix the Crisis They Made, 2014

Why has the right, including the populist right, rather than the left, been the main political beneficiary of the anger and bitterness that has roiled Europe since the 2008 financial crash, the eurozone crisis, and the resulting deep recession and brutal austerity? After all, these events surely proved the relevance of the left’s critique of capitalism. The crisis has been so deep and prolonged that a kind of social disintegration has been taking place, at least in the Southern cone, without precedent in postwar Europe. (In Spain, youth unemployment is more than 55 percent.) More: the crisis has been managed largely to the benefit of the already well-off, in a spectacularly brazen fashion. The trillions that were handed over to banks too big to fail are now being gouged out of citizens too weak to resist. (This intensely political class strategy is called “austerity.”) The recovery, such as it is, is benefitting almost exclusively the already affluent, as catalogued in Danny Dorling’s cry of moral outrage, Inequality and the 1%. It is a recovery of McJobs, zero-hour contracts, and food banks. One UK charity alone, the Trussell Trust, has handed out 913,000 food parcels in the last year, up from 347,000 the year before.

The left is increasingly marginal to political life in Europe despite the fact that, in the words of Owen Jones, an important voice of the British left, “Living standards are falling, public assets are being flogged to private interests, a tiny minority are being enriched at the expense of society and the hard-won gains of working people—social security, rights in the workplace and so on—are being stripped away.” And the radical parties and movements to the left of the social democratic parties have been faring no better. In the brutally honest assessment of the British Marxist Alex Callinicos, “Nearly seven years after the financial crash began, the radical left has not been weaker for decades.”

But the European left’s inability to forcefully meet the crisis is not due to a failure of individual political leaders, but the fact that it has not developed, in theory or practice, a response to the three great waves of change—economic, socio-cultural, and politico-intellectual—that have crashed over it since the late 1970s.

Social democrats, as Sheri Berman showed in The Primacy of Politics: Social Democracy and the Making of Europe’s Twentieth Century, used to be able to do something that no one else could: bring capitalism, democracy, and social stability into a more or less harmonious relationship. They knew from bitter experience that if markets really were “free” and left to “self-regulate” then society would be devastated; that in addition to degrading the environment, what Marx called the cash-nexus, the reduction of human relations to naked self-interest, would erode communal life and the common good, installing greed and possessive individualism in their place; that merely contractual relations between spectacularly unequal, anxious, and deeply untrusting individuals, acquisitive, philistine, and competitive, would triumph.

But in the 1980s European social democrats lost their nerve, and fell into a suffocating consensus that says there is no alternative to neoliberalism: marketization, deregulation, privatization, financialization, an assault on the bargaining power of labor, regressive tax regimes, cuts to welfare. As “New Labor” architect Peter Mandelson famously put it, social democrats should now be “intensely relaxed” about people getting “filthy rich,” while sneering at the trade union movement, and often their own alarmed working-class supporters, as “dinosaurs” (or “bigots”) for harboring the idea that it was possible to stop the neoliberal globalization and “get off.”

 The fruits of this radical transformation of European social democracy into a political force pursuing a slightly kinder and a slightly gentler neoliberalism—which some dub “social neoliberalism”—have been bitter. At the top of any list would have to be the erosion of the links between the social democratic parties and their working-class base and the “hollowing out” of social democratic parties until they became little more than coteries of leaders, staffers, and wannabe MPs, relating mostly to each other and to media and lobbyists. In a brilliant essay in the London Review of Books last spring, Perry Anderson made a start at a taxonomy of the whole shocking malavita. “In France,” he noted, “the Socialist minister for the budget, plastic surgeon Jérôme Cahuzac, whose brief was to uphold fiscal probity and equity, was discovered to have somewhere between 600,000 and 15 million euros in hidden deposits in Switzerland and Singapore.” The result? When the financial crash occurred, European social democratic parties, in thrall to neoliberalism, were seen as just as guilty as the executants of the neoliberal solution to the crisis (bank bailouts and popular austerity), leading to the overnight electoral meltdown of those parties. In Greece, Pasok plunged to a barely threshold-clearing four percent of the vote, despite having been the country’s dominant party for many decades. Read the rest of this entry »

Permalink 4 Comments

Reply to Owen Jones on the EU

July 15, 2015 at 1:15 pm (capitalism, Europe, Germany, Greece, Guardian, internationalism, Jim D, populism, socialism, workers)

Dear Owen,

Despite your relative youth, you are (to judge by your piece in today’s Guardian) representative of an old UK left — and the left in a few other European countries, such as Denmark — who have for decades been anti-EU but in recent years have kept fairly quite about it for fear of seeming to ally with Ukip and the Tory right. They have suggested, though rarely said openly, that the left should welcome and promote every pulling-apart of the EU, up to and including the full re-erection of barriers between nation-states.

The EU leaders’ appalling treatment of Greece, and Tsipras’s capitulation has given a new lease of life to the anti-EU left despite the fact that while in Greece and Southern Europe the EU is a force for neoliberal austerity, in the UK no-one can point to a single attack on the working class that has originated with the EU against the will of a British government: indeed the EU has forced reluctant UK governments to enact limited but real pro-worker legislation.

You seem to think the left can have its cake and eat it: to chime in with populist-nationalist “anti-Europe” feeling, which is stronger in Britain than in any other EU country, but also cover ourselves by suggesting that we are not really anti-European, but only dislike the present neoliberal, capitalist character of the EU.

As if a confederation of capitalist states could be anything other than capitalist! As if the cross-Europe policy of a collection of neoliberal governments could be anything other than neoliberal!

In Britain more than any other country we have seen successive national governments, both Tory and New Labour, repeatedly objecting to EU policy as too soft, too “social”, too likely to entrench too many workers’ rights.

Even the threat of withdrawal that you propose is a soft-soap, “tactical” gambit. In principle Britain could quit the EU without disrupting much. It could be like Norway, Iceland, Switzerland: pledged to obey all the EU’s “Single Market” rules (ie: all the neoliberal stuff) though opting out of a say in deciding the rules; exempt from contributing to the EU budget but also opting out from receiving EU structural and regional funds.

That (as I presume you’re aware) is not what the serious anti-EU-ers of left and right really want. They want Britain completely out. They want all the other member-states out too.

What would then happen?

The freedom for workers to move across Europe would be lost. “Foreign” workers in each country from other ex-EU states would face increased hostility and racism.

Governments and employers in each state would be weaker in world-market competition, and thus would be pushed towards crude cost-cutting, in the same way that small capitalist businesses, more fragile in competition, use cruder cost-cutting than the bigger employers.

Despite your fantasy of a “populist”, independent left anti-EU movement, in reality nationalist and far-right forces, already the leaders of anti-EU political discourse everywhere, would be vindicated while the left – if not completely ignored – would be seen as complicit

The left should fight, not to go backwards from the current bureaucratic, neoliberal European Union, but forward, to a democratic United States of Europe, and a socialist United States of Europe.

Comradely,

Jim D

Permalink 29 Comments

The urban dystopia of Shanghai

May 1, 2015 at 12:40 am (capitalism, China, Cities, Civil liberties, Human rights, posted by JD, stalinism)

By Camila Bassi (reblogged from Anaemic On A Bike):

“The Yankees have invented a stone-breaking machine. The English do not make use of it, because the ‘wretch’ who does this work gets paid for such a small portion of his labour, that machinery would increase the cost of production to the capitalist.” (Marx, Capital: Volume One)

My recent visit to Shanghai was the last of nine in which I have glimpsed urban development ‘the China way’. My photo story captures themes present in each of my visits that have haunted me. The former Chinese Communist Party leader, Deng Xiaoping, who hailed in the era of ‘opening and reform’, famously said: “Development is the only hard truth.” If capital is akin to a monster, then a gigantic monster was set loose in Shanghai from 1990, and has gluttonously and mindlessly trampled over people and eaten up land ever since – commodifying and extracting surplus-value at a reckless speed. Over the years, the sight of low-rise alleyway, working class living that is half demolished, with people still residing within it, has been less and less prominent in downtown Shanghai, simply because more and more of the demolition has been completed. The working class have been largely moved out of the centre to the isolating high-rise apartments of the suburbs – placed within new tower blocks that have been as quickly put up as old homes have been destroyed, and which signify urban regeneration that will fast degenerate. Shanghai is urban dystopia. It is a city of hardware, with no regard for software: culture, civil society, freedom to pause, and to think, and to question. If one sits in a taxi at night driving through the dazzling skyscrapers of Pudong, the Special Economic Zone just over the river from downtown Shanghai, one feels like one has entered Ridley Scott’s Blade Runner. It’s an uncomfortable feeling.

1280px-20090427_5475_Shanghai

(Wikimedia Commons)

The scale of Pudong is a frightening mash-up of the might of global capital and the muscle of Chinese totalitarianism – this is urban development, the China way. It is the subtle sights of Shanghai that have always struck me the most, and the absences too: where are the poor? Space and place is so controlled in Shanghai’s centre that one can stroll from Starbucks to Starbucks, visiting global retail chains in between, and simply miss the missing population. What we call gentrification in the West appears on such a vast scale in Shanghai that what one can actually see – if awake enough – is capitalism at its most naked. There’s the next, near-erected skyscraper, such as the one I walked passed once by the Bund at midnight, with orange sparks against a black sky right at the top, generated by welding, as rural migrant workers toil for little pay and no health and safety protection. And there’s the rural migrant workers digging holes in roads and pavements with pick axes and shovels, such rudimentary equipment which once puzzled me. Yes, labour in China is that exploited, it is cheaper to employ workers to dig into concrete with pick axes and shovels than it is to employ a worker and a digger.

Permalink Leave a Comment

Grexit?

February 20, 2015 at 10:06 pm (capitalism, capitalist crisis, Europe, Greece, Jim D)

Alexis Tsipras celebrates his victory

This is where you will get the best information and analysis (from a social democratic angle):

http://www.socialeurope.eu/#ios

Permalink Leave a Comment

Tax fraud isn’t HSBC’s only crime: there’s money-laundering as well

February 10, 2015 at 6:52 pm (capitalism, crime, David Cameron, drugs, Jim D, tax, terror, Tory scum)

HSBC building

The Guardian‘s Polly Toynbee gets it 100% right in her latest column; this week’s revelations about HSBC should be a gift to Labour if the party leadership make the most of it:

Labour is lucky this global story blew up in a week already dominated by a tax avoidance row: it was a Tory blunder to put up the Monaco-dwelling head of Boots to call Labour a “catastrophe”, when his company pays a fraction of the UK tax it did before switching its base to Switzerland. Timing is important here: the HSBC revelations haven’t emerged on Labour’s watch. Both Eds have frequently – and rightly – apologised for Labour’s feeble regulation of banks pre-crash, while always reminding Cameron and Osborne that they called loudly for less banking “red tape” in those days.

Ms Toynbee isn’t always a favourite with us here at Shiraz, but the piece quoted from above is a hum-dinger, and well worth reading in full.

Left Foot Forward‘s Ruby Stockham, meanwhile, has put 4 questions to David Cameron that should be repeated ad nauseam between now and the election.

But it’s worth remembering that the crimes of HSBC under Stephen Green (aka Lord Green of Hurstpierpoint and minister for trade and investment between 2010 and 2013) were not restricted to colluding in tax fraud: they also extended to money-laundering.

In 2012, HSBC agreed to pay a $1.9 billion fine for money laundering for clients that the US authorities said included Mexican drug cartels (as well as providing services to lenders in Saudi Arabia and Bangladesh though to include supporters of al Qaeda).

The Daily Telegraph‘s David Hughes reported on July 17 2012:

While the Treasury select committee is giving the third degree to Mervyn King and his chums over the Libor debacle, a potentially much bigger banking scandal is breaking in the United States. The US Senate has launched a coruscating attack on HSBC for its slapdash approach to money-laundering regulations. The bank could face a $1 billion fine.

According to Senator Carl Levin, chairman of the US Senate Permanent Subcommittee on Investigations, “the culture at HSBC was pervasively polluted for a long time.” Just how polluted was revealed in the Senate report into the scandal. For example, between 2007 and 2008, HSBC’s Mexican operations moved $7bn into the bank’s US operations. According to the report, both Mexican and US authorities warned HSBC that the amount of money could only have reached such a level if it was tied to illegal narcotics proceeds. This is explosive stuff for the “world’s local bank”, as HSBC calls itself.

As these other, perhaps even more serious, scandals from the noughties have not been widely reported in the last few days (except by the FT‘s excellent Jonathan Guthrie), here are a couple of links to articles from July 2012:

David Hughes’s Telegraph piece (quoted from above), here

The Telegraph‘s report on the US Senate’s findings, here

Ned Simons at the Huffington Post (which mentions the alleged al Qaeda funding) here.

Permalink 2 Comments

Zombie capitalism

December 3, 2014 at 2:05 pm (capitalism, posted by JD, United States)

 From US Uncut:
 
Zombie capitalism. Like our page US Uncut!
 

Permalink 2 Comments

Radio 4 gives Gramsci a (reasonably) fair hearing

September 2, 2014 at 4:49 pm (AWL, BBC, capitalism, class, democracy, Disability, history, intellectuals, Italy, Jim D, literature, Marxism, modernism, socialism)

It’s not often that the bourgeois media gives an anti-Stalinist communist leader and thinker a fair hearing – or, at least, allows that person’s thought and record to be presented in a balanced and objective manner.

But today’s ‘Great Lives’ on BBC Radio 4, introduced by the former Tory MP Matthew Parris (a good broadcaster, despite his politics) gave the life and thought of Antonio Gramsci affair hearing.

Dr Tom Shakespeare, a disability activist and former Euro-Communist, supported by Professor Anne Sassoon (‘expert witness’) presented a sympathetic and generally fair profile of Gramsci that is well worth listening to, here.

Naturally, I don’t agree with the Euro-Communist slant of the presentation, but that doesn’t detract (much) from the quality of the case put forward by Shakespeare and Sassoon, which will, hopefully, introduce a lot of new people to the ideas of this heroic figure and giant socialist intellect.

Once you’ve listened, you could do a lot worse than move on to this…

Antonio Gramsci

Gramsci
A collection of articles discussing the life and ideas of the Italian Marxist Antonio Gramsci

Permalink Leave a Comment

Piketty: a Marxist review

May 8, 2014 at 5:39 pm (capitalism, capitalist crisis, economics, Marxism, posted by JD, reblogged)

Reviewed by Hans G. Despain in Marx & Philosophy Review of Books

Thomas Piketty
Capital in the Twenty-First Century
The Belknap Press of Harvard University Press, Cambridge MA, 2014. 696pp., $39.95 / £29.95 hb
ISBN 9780674430006

About the reviewer

Hans G Despain

Hans G Despain is Professor of Economics and Department Chair at Nichols College, Massachusetts. He encourages your correspondence: hans.despain@nichols.edu

More…

Review

Capital in the Twenty-First Century is a most impressive book that deserves great attention. Piketty insists that social scientists generally, and economists in particular, must confront and examine “facts” (574-5). This is what he sets out to do in his momentous nearly 700 page text.

The title suggests the book may be offering homage to Marx’s nineteenth-century Capital. Let us be clear from the beginning it is not. Nonetheless, this book will be appreciated by Marxian political economists, while at the same time a frustratingly theoretical disappointment.

Piketty’s book is nothing short of revolutionary in establishing flows of income over time. He establishes that there is a tendency toward the hyperconcentration of wealth, and the rise of a new “supermanagerial” class (315-21). Piketty leaves no doubt that it is class that matters and structural “class warfare” predominates in twenty-first century capitalism (246). Crucial to Piketty’s studies of capitalism is that there exist no economic laws determining distribution of income and wealth (274, 292-4, 361-4). This is an enormously important point, and a return to classical political economy with a vengeance, especially to Marx whereby distribution is a function of series of institutional power relations, rooted in production relations. These summaries will surely, and should, excite Marxian social theorists. However, Piketty’s definition of capital as a financial measure of physical equipment, money, financial assets, land, and other valuables will discourage Marxian social theorists. I will come back to these crucial points.

The primary problem with the book is an underdeveloped social theory and normative philosophy. Consequently, Piketty’s policy recommendations are impressively anemic and aimed at perpetuating exploitation of the economically vulnerable populations. In the end Piketty wants to take the ‘hyper’ out of hyperexploitation and reestablish good old-fashion exploitation with higher minimum wages, taxes on capital, progressive income tax, and limits on inheritance.

With emphasis, Piketty defends the strengthening of the “social state” or the historical development of public education, healthcare, social security, unemployment compensation, and income support for the poor (471-92). Moreover, he maintains that deficits are not bad in-and-of-themselves, but must be spent wisely and should not be paid for with fiscal “austerity” but by means of central-bank-generated-inflation and/or a tax on capital (540-70). This defense of the “social state” and federal deficit pushs Piketty into the area of (political) philosophy, social ethics, and morality. Piketty is well-aware of this (479-81). He recognizes that the so-called “science of economics” is more accurately political economy that generates enormous normative philosophical implications (574).

This gets well ahead of our story and the details of Piketty’s book. The essence of the book is remarkably straight forward and is intended for a popular audience. Piketty brilliantly succeeds on this account and should be duly praised. The essential argument is that capitalistic economic growth inevitably slows. As the rate of economic growth diminishes, the past accumulated “capital”/wealth gains in importance (233), and indeed allows past wealth “to devour the future” (378). Piketty calls this a “fundamental law of capitalism” (166).

This fundamental law of capitalism means that the “return on capital” (r) is greater than the economic growth (g): r > g. As a prosperous and industrialized capitalist economy begins to stagnate, past wealth becomes more important and powerful and inequality begins to increase rapidly (572). Thus, one of Piketty’s main goals “is to understand the conditions under which such concentrated wealth can emerge, persist, vanish, and perhaps reappear” (262).

According to Piketty, the primary mechanism (25) causing inequality is the fact that the rate of return on capital is 3 to 5 times greater than the rate of growth (233). Thus, the structural tendency of capitalism toward stagnation and 4-5% rate of return on capital means that markets and competition do not reduce inequality (370). It is in this sense that there is a “logic of accumulation,” based on the divergence between the rate of return on capital and economic growth (22-7), that accounts for the very high concentration of wealth throughout capitalist history (377).

Read the rest of this entry »

Permalink 4 Comments

Mirror exposes Qatar’s World Cup slavery

March 31, 2014 at 8:12 pm (capitalism, Human rights, internationalism, Middle East, posted by JD, profiteers, Slavery, sport, unions, workers)

***Embedded image permalink

The Daily Mirror today returned to its radical, campaigning best, with a front-page lead report by Kevin McGuire on slave labour in Qatar. To the best of my knowledge, it’s the first time a British tabloid has raised the issue of the murderous conditions of migrant workers in Qatar as the Emirate prepares for the 2022 World Cup (though Nick Cohen has written some excellent pieces for the Observer).

The Mirror‘s report:

Qatar is accused of working 1,200 people to death in its £39billion building bonanza for the 2022 World Cup.

An investigation by the Mirror into the oil-rich Emirate revealed horrific and deadly exploitation of migrant workers, who are forced to live in squalor, drink salt water and get paid just 57p an hour.

Campaigners fear the death toll could reach 4,000 before the Finals kick off. One worker told us: “We are treated like slaves and our deaths are cheap.”

FIFA faces renewed pressure to show Qatar a World Cup red card following the exposure of mass deaths and vile exploitation of construction workers in the region.

A team of British trade union leaders and MPs warned that the 2022 tournament is being built “on the blood and misery of an army of slave labour”, after uncovering appalling abuse during a visit to the Gulf monarchy.

Qatar is accused of working 1,200 migrants to death since being awarded the World Cup in 2010 and campaigners have insisted the shocking death toll could reach 4,000 before a ball is even kicked in the Finals.

On a mission organised by Geneva-based Building and Woodworkers’ International, a global federation of construction unions, I witnessed and heard distressing evidence of systematic mistreatment on an industrial scale. Sneaking into squalid labour camp slums under the cover of darkness, frightened workers lured to Qatar with false promises of high salaries complained of persecution.

One Nepalese carpenter, paid the equivalent of just 95p an hour, said: “We’re treated like slaves. They don’t see us as human and our deaths are cheap. They have our passports so we cannot go home. We are trapped.”

Read the rest of this entry »

Permalink 2 Comments

Next page »

Follow

Get every new post delivered to your Inbox.

Join 553 other followers