Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts

Thursday, July 21, 2011

The Role Played by the State in the Development of Capitalism in Japan

Written by Fred Weston
Thursday, 21 July 2011


Photo: Bill Keaggy

The classical view of how capitalism develops is that within feudal society a class emerges made up of merchants, bankers, early industrialists, i.e. the bourgeoisie, and that for this class to be able to develop its full potential a bourgeois revolution is required to break the limits imposed by the landed feudal aristocracy. That is how things developed, more or less, in countries like France and England, but not in Japan.

Continued Here



RENEGADE EYE

Monday, May 16, 2011

The Spatiotemporal Dialectic of Capitalism, Part II


“Today I saw History riding on horseback.” — Hegel, 1806, after seeing Napoleon ride through town following the Battle of Jena

B. Concrete, Historical Time

Just as society under capitalism was manifesting this abstract form of time, it was simultaneously giving birth to a new form of concrete time, distinct from the sense of concrete time that existed before the preponderance of commodity exchange in society. This concrete sense of time was not that of habit, convention, or task-orientation. It was rather a newfound sense of historical time, understood as a linear chain of events, or as a succession of “stages” leading up to the present. Along with this newfound sense of concrete, historical time came a new consciousness of time, specific to capitalism. What lay behind this new historical consciousness?

For one, it was the increasing dynamism exhibited by the new form of society under which they were living, such that time-honored social institutions and traditional practices now underwent a visible series of sudden and spasmodic transformations. Longstanding social relations were often uprooted and replaced within the span of a single lifetime. As Marx and Engels famously recorded in the Manifesto, “[t]he continual transformation of production, the uninterrupted convulsion of all social conditions, a perpetual uncertainty and motion distinguish the epoch of the bourgeoisie from all earlier ones.” This shift in the underlying socioeconomic basis of society entailed a corresponding shift in the ideological superstructure: “All the settled, age-old relations with their train of time-honoured preconceptions and viewpoints are dissolved; all newly formed ones become outmoded before they can ossify. Everything feudal and fixed goes up in smoke, everything sacred is profaned.”[20]

Zygmunt Bauman thus rightly credited “[t]he considerable speeding up of social change” as a necessary condition for the creation of this historical consciousness. This speeding up, he added, “was duly reflected in the…novel sense of history as an endless chain of irreversible changes, with which the concept of progress — a development which brings change for the better — was not slow to join forces.”[21] The notion of progressive historical development was aided, moreover, by the ongoing technical revolutions taking place in the field of production. This concept of a progression of stages was then conversely projected backward through time, in the interpretation of history. It is therefore no surprise that this period saw the emergence of thinkers like Vico and Hegel, who looked to the past and interpreted it as an unfolding of qualitatively distinct “phases” — as modes of consciousness or spirit as the torch of civilization was passed from one society to the next.

At the political level, this historical understanding of time simultaneously grounded both conservatism and radicalism. In the former case, one saw the history leading up to the present as a demonstration of its necessity, while in the latter, one saw the present itself as merely transitory, as just another stop along the way in the moving train of history. Liberalism stood between these two extremes, in the static sphere of ahistorical Natural Rights. For the rest, however, this recognition of historical time dramatically impacted the way they viewed the world. And so, despite the volatility involved in the rapid upheaval of older social forms that came with capitalism, the memory that things had not so long ago been different granted to conservatives the hope for a return to “simpler times,” while for radicals it held the promise of leading to a more perfect, as yet unseen social arrangement.

But what was the actual dynamic in capitalism that necessitated this series of convulsive transformations? For it is easy to say that capitalism forced this state of chronic instability, but it is much harder to actually trace out the dialectical aspect of capitalism that compels its continuous flux. And so we must discover the specific origin of this dynamic, rooted in a dimension of capital itself.

A brief investigation into the constitution of capital will reveal that this dynamic is located in the value-dimension of capital. Value, when it appears in the form of capital, ceaselessly strives to augment itself through a process of self-valorization.[22] It here becomes clear that the Lukácsean simultaneous subject-object of history is not Labor as constituted by the proletarian class, but Capital as constituted by self-valorizing value, which assimilates the non-identical to itself through its own activity while remaining at all times identical with itself.[23] As Marx wrote, “[capital] is constantly changing from one form to another, without becoming lost in this movement; it thus becomes transformed into an automatic subject.” Value is still the operative concept in its form as capital, however: “In truth,…value is here the subject of a process in which…it changes its own magnitude, throws off surplus-value from itself considered as original value, and thus valorizes itself independently. For the movement in the course of which it adds surplus-value to itself is its own movement, its valorization is therefore self-valorization.” It thereby obtains an almost magical character: “By virtue of being value, it has acquired the occult ability to add value to itself.”[24]

Capital achieves this valorization through the purchase of labor as a commodity. Productive labor thus enters the process of capitalist circulation as a socially mediating activity necessary for augmenting capital. “[C]apital has one sole driving force, the drive to valorize itself, to create surplus-value, to make its constant part, the means of production, absorb the greatest possible amount of surplus labor.”[25] Labor, which uniquely possesses the ability to enhance the value originally invested in its purchase,[26] produces surplus-value for its temporary owner in either of the following ways: 1) by an absolute increase in the time spent laboring beyond the socially average time necessary to reproduce the value advanced;[27] or 2) by a relative decrease in the time required to produce an equivalent value below that same social average, since “the prolongation of the surplus labor must…originate in the curtailment of the necessary labor-time,” assuming the length of the working day remains constant.[28] The latter of these methods can only be accomplished by an increase in the productivity of labor by technical or organizational means, either by the introduction of new machine technologies or a more efficient division of labor.[29]

Historically, capital at first relied on the production of absolute surplus-value through the extension of the working day in order to valorize itself, until labor negotiations and parliamentary legislation managed to secure a normal working day through the famous Factory Acts. These set a legal limit on the maximum number of hours a worker could be assigned in a day.[30] Thereafter, capitalist production was generally forced to make do with the generation of relative surplus-value, which it achieved by the successive institution of cooperative action between workers, the detail division of labor in manufacturing, and the implementation of heavy machinery in large-scale industry.[31]

At this point, our digression into the inner workings of capitalism reconnects with the investigation of the unprecedentedhistorical consciousness linked to the inner dynamic of capital. For it is the category of value undergirding capitalist society that is the source of its dynamism; the dynamic character of value in the form of capital is built into its very concept. The dialectical tension which characterizes capital always exists in potentia as part of its logic, but begins to unfold more rapidly with the general stabilization of the workday and the increased stress placed upon the generation of relative surplus-value.[32] Since relative surplus-value demands that the technical and social basis of production be constantly revolutionized so that productivity can be increased, but at the same time the rate of surplus-value thereby gained begins to vanish as soon as these technical and organizational advances are generalized, there is an overall “speeding up” of the production process. These frequent, usually violent speed-ups give rise to what Postone has called the “treadmill effect” of capitalist production, involving a “dialectic of transformation and reconstitution.”[33]

This is how an historical consciousness in the modern sense first manifested itself in society. For it was only with the further elaboration of the dialectic immanent to relative surplus-value that the concept of history as an unfolding progression of stages even became available. Postone explains: “Considered temporally, this intrinsic dynamic of capital, with its treadmill pattern, entails an ongoing directional movement of time, a ‘flow of history.’ In other words, the mode of concrete time we are examining can be considered historical time, as constituted in capitalist society.”[34]

C. Reflection on the Temporal Dialectic of Capitalism

Examining these two distinct senses of time that emerge out of capitalism, we may briefly state the characteristics that differentiate them and determine the extent to which they interact. Some differences between the two should be obvious. One is abstract and homogeneous, the other is concrete and heterogeneous. The one is cyclical and repetitive, while the other is linear and unprecedented, irreversible, and unreplicable in its exact constitution. Abstract, Newtonian time is scientific, and can be measured mechanically, by the gears in a watch. Concrete, historical time, on the other hand, must be comprehended either organically (in precapitalist societies) or dialectically (under capitalism), as a dynamic sequence of forces and events.

But despite all their differences, it is not as if these two forces are divided by an unbridgeable chasm. Rather, they are intricately and dialectically intertwined. If anything, the two separate temporal elements combine to create the unique structure of capitalist development through history. While on the one hand society is being propelled forward through a series of irreversible transformations, on the other, the repetitious pattern of day-to-day, hour-to-hour routines of social production continue according to their usual cycles. The result is regularity alongside radical disruption, repetition with difference — and these are features specific to modernity, not postmodernity, as Deleuze and Derrida would have it. And so it is proper, when speaking of the dialectical motion of capitalism, to describe it as following a cyclolinear path of production and circulation punctuated by periods of boom and crisis. The “historical” element of capitalist time allows the way in which capitalism manifests itself to change over time, such that distinct phases of capitalism can be identified (liberalism/monopolism/imperialism/Fordism/neo-liberalism or “flexible accumulation”). The homogeneous, “repetitive” element of time under capitalism allows it to remain capitalism throughout all of its various phases, founded on the same principle of the supervaluation of value. Only the historical transcendence and overturning of this principle would produce a revolutionary outcome, only then could a postcapitalist society emerge.


[20] Marx, Karl and Engels, Friedrich. Manifesto of the Communist Party. From Later Political Writings. Pg. 4.

[21] “It was only [the] idea of perfectibility [made possible by the concept of progress] which paved the way for utopia.” Bauman, Zygmunt. Socialism: The Active Utopia. (George Allen & Unwin Limited. London, England: 1976). Pgs. 18-19.

[22] “The circulation of money as capital is an end in itself, for the valorization of value takes place only within this constantly renewed movement. The movement of capital is therefore limitless.” Ibid., pg. 253.

[23] Postone, Time, Labor, and Social Domination. Pgs. 75-77.

[24] Marx, Capital, Volume I. Pg. 255.

[25] Ibid., pg. 342.

[26] “[Labor is] a commodity whose use-value possesses the peculiar property of being a source of value.” Ibid., pg. 270.

[27] “The prolongation of the working day beyond the point at which the worker would have produced an ex-act equivalent for the value of his labor-power, and the appropriation of that surplus labor by capital — this is the process which constitutes the production of absolute surplus-value.” Ibid., pg. 645.

[28] Ibid., pg. 431.

[29] “The technical and social conditions of the [labor] process and consequently the mode of production it-self must be revolutionized before the productivity of labor can be increased.” Ibid., pg. 432.

“[T]he production of relative surplus-value completely revolutionizes the technical processes of labor and the groupings into which society is divided.” Ibid., pg. 645.

[30] Ibid., pgs. 389-416.

[31] Chapters 13, 14, and 15 respectively. Ibid., pgs. 439-640.

[32] “With the development of relative surplus value…the directional motion that characterizes capital as self-valorizing value becomes tied to ongoing changes in productivity. An immanent dynamic of capitalism emerges, a ceaseless expansion grounded in a determinate relationship between the growth of productivity and the growth of the value form of the surplus.” Postone, Time, Labor, and Social Domination. Pg. 283.

[33] “The peculiarity of the dynamic — and this is crucial — is its treadmill effect. Increased productivity in-creases the amount of value produced per unit of time — until this productivity becomes generalized; at that point the magnitude of value yielded in that time period, because of its abstract and general temporal determination, falls back to its previous level. This results in a new determination of the social labor hour and a new base level of productivity. What emerges, than, is a dialectic of transformation and reconstitution.” Ibid., pg. 289.

[34] Postone, Time, Labor, and Social Domination. Pg. 293.


RENEGADE EYE

Sunday, May 15, 2011

The Spatiotemporal Dialectic of Capitalism, Part I: Abstract, Newtonian Time



Scaffolding around St. Stephen's Tower, which would house the famous Big Ben clock (1857)

The Origin of Modernist and Eclecticist Architecture out of the Late Nineteenth and Early Twentieth Centuries, Part I: The Spatiotemporal Dialectic of Capitalism

* * * *

INTRODUCTION

To understand the history of architectural modernism and eclecticism as they originated out of the late nineteenth and early twentieth centuries, one must take into account the broader development of architecture over the course of the latter half of the nineteenth century. This development, in turn, must be seen as emerging from the dynamic of late nineteenth-century capitalism, which had by that point extended to encompass the whole of Europe. For it was the unique spatiotemporal dialectic of the capitalist mode of production — along with the massive social and technological forces it unleashed — that formed the basis for the major architectural ideologies that arose during this period. Before the story of the academicians or the avant-garde can be told, then, some background is necessary to explain both their origin and the eventual trajectory they would take into the early twentieth century.

So while my aim is to eventually account for how a single social formation, capitalism, can give birth to these two opposite tendencies within architectural thought, the space required to give an adequate exposition of the spatiotemporal dialectic of capitalism is such that it deserves to function as a standalone essay. Certainly other trends, both cultural and social, could be understood as reflections of this underlying socioeconomic dynamic. It is thus my intention to post this as its own piece, before then proceeding to detail the way in which architectural modernism and eclecticism mirrored these dynamics.

The Cyclolinear Temporality of Capital

I. The Temporal Dialectic of Capitalism

Capitalism does odd things to time. On the one hand, it standardized the measurement of time to obey the artificial pulse of the mechanical clock. This standardization was at the same time part of a larger project of rationalization that took place under the auspices of capitalism as it spread throughout Europe in the eighteenth and nineteenth centuries. For the first time in history, society was synchronized according to a single regime of time; its movement was as clockwork. This new temporal order replaced the traditional system of timekeeping, based as it was on the arbitrariness of convention and the natural cycles of the changing seasons and daylight. This sort of time, abstracted from all events that might take place under its watch, can be referred to as Newtonian time — pure, uniform, untainted by the messiness of historical change.

On the other hand, however, capitalism after a certain point seems to generate a new sense of historical consciousness separate from the abstract, Newtonian time with which it coincides. This is brought about by an underlying dynamic inherent in the composition of capital itself, located specifically in its value-dimension. For once capital began to revolutionize the basis of production in pursuit of what Marx termed “relative surplus-value,” a series of accelerating social and technological innovations began to send down shockwaves throughout the rest of society. This was experienced as a corresponding sequence of convulsive social transformations, continuously uprooting the time-honored organic social relations that preceded the rise of capitalism. As the process of capitalist production developed further into the early nineteenth century, this dynamic became more and more pronounced. Since these successive transformations could now be seen as occurring within the space of a single generation, a new consciousness of time arose around the notion of progressive “phases,” “stages,” or “epochs” of history. Opposed to both the mode of abstract time manifested by capitalism as well as the kind of historical temporality that preceded it, this can be referred to as historical time as it exists under capitalism.

The precise way in which capitalism gave birth to these two opposite modes of understanding time will be elucidated in the following. Their connection to the styles of architecture that emerged in the late nineteenth and early twentieth centuries will only be possible after the elaboration of both the temporal and the spatial dialectics of capitalism have been completed.

The Decimal Clock from Fritz Lang's Metropolis

A. Abstract, Newtonian Time

Before the advent of capitalism, the workday was regulated by the organic rhythms of sunup and sundown, by the rooster’s crow and the dim fade into twilight. Time was measured, not by the mechanical regularity of the clock, but by much more arbitrary and conventional standards. For example, in seventeenth-century Chile, “the cooking-time of an egg could be judged by an Ave Maria said aloud.”[1] Even at the level of months and days, the calendar was less important than the events that occupied it. Planting-time, harvest-time, and the celebration of religious and secular holidays — these were the patterns by which precapitalist societies understood the passage of time. “In terms of the human organism itself,” observed Lewis Mumford, “mechanical time is even more foreign: while human life has regularities of its own, the beat of the pulse, the breathing of the lungs, these change from hour to hour with mood and action.”[2] The digital precision of time-measurement, to which we have become so accustomed today, would have been an utterly foreign concept to a person born prior to the rise of capitalism.

The mechanical calculation of time can be traced to the fourteenth century, when public clocks were mounted in cities and large commercial towns. Their impact on society at this point was still limited, however; the clocks’ accuracy was often in question. Some improvements were made in the seventeenth century with the introduction of the pendulum in the grandfather clock by Christiaan Huygens in 1656, which allowed for the isochronous measurement of time. Still, their circulation throughout society remained minimal.[3] The broader dissemination of chronometric devices took place in the first half of the eighteenth century, and only then it was the typically the gentry who would own a pocket-watch, as a symbol of their status. But it was the industrial revolution that first made the exact measurement of time socially universal. As Mumford explained, “[t]he popularization of time-keeping, which followed the production of the cheap standardized watch, first in Geneva, was essential to a well-articulated system of transportation and production.”[4] The British Marxist E.P. Thompson verified Mumford’s claim when he later wrote: “Indeed, a general diffusion of clocks and watches is occurring (as one would expect) at the exact moment when the industrial revolution demanded a greater synchronization of labour.”[5]

And why was the precise measurement of time so vital to a society founded on the exchange of commodities? Why did the workday have to be so artificially broken down into abstract units of time? For exactly the reason Marx explained when he wrote that

A use-value, or useful article…has value only because abstract human labour is objectified [vergegenständlicht] or materialized in it. How, then, is the magnitude of this value to be measured? By means of the quantity of the “value-forming substance,” the labour, contained in the article. This quantity is measured by its duration, and the labour-time is itself measured on the particular scale of hours, days, etc. [my emphasis]

Of course, this duration is not determined by how long it takes this or that particular individual to complete the production of a commodity. “What exclusively determines the magnitude of the value of any article,” Marx then continued, “is therefore the amount of labour socially necessary, or the labour-time socially necessary for its production.”[6] Marx makes it clear that this time is abstract, in the sense that value is determined by the time necessary to produce a commodity through abstract, homogeneous human labor.[7]

And indeed, as Thompson demonstrates, it is no coincidence that the exact monitoring of time was increasingly enforced as the industrial revolution gathered steam. At both school as in work, lateness or tardiness of any sort were to be penalized with greater severity. Ringing bells were installed in the schools to indicate to students when one period was to end and another to begin. Workers were obligated to “punch in” with mechanical devices to keep them honest about the amount of time they had worked. A new ethos of timeliness, punctuality, and efficiency was encouraged. “In all these ways — by the division of labour; the supervision of labour; fines; bells and clocks; money incentives; preachings and schoolings; the suppression of fairs and sports — new labour habits were formed, and a new time-discipline was imposed.”[8] But the students and workers did not at first bend willingly to this new regime of time. The shift from the traditional, less methodical time required to complete a specific task (which Thompson called the “task-orientation”), to a strictly-regulated pace of work was not an easy transition. “The onslaught, from so many directions, upon the people’s old working habits was not, of course, uncontested,” recorded Thompson. “In the first stage, we find simple resistance. But, in the next stage, as the new time-discipline is imposed, so the workers begin to fight, not against time, but about it.”[9]

This fight about time would culminate, of course, in the struggle for the regular ten-hour workday, which Marx documented at length in Capital. Reacting to the outrage of the working class over the “spurious ‘system of relays’,” the British government mandated that clocks be readily visible to the workers to ensure that they were not made to work over the ten-hour limit: “‘The time shall be regulated by a public clock,’ for example the nearest railway clock, by which the factory clock is to be set. The manufacturer has to hang up a ‘legible’ printed notice stating the hours for the beginning and ending of work and the pauses allowed for meals.”[10] Because capital had previously sought mainly to maximize the amount of surplus-value obtained from labor simply by extending the number of hours worked as far beyond the value paid for the labor-process, i.e., through absolute surplus-value,[11] members of the working class were gradually made to work inhuman lengths of time.[12] Whereas before the working-class had objected to the strict regimentation of time-measurement in their labor, the struggle of the working class to restrict the number of hours they could be legally made to work entailed a certain acceptance of this new regime of time. “The history of the regulation of the working day in certain branches of production, and the struggle still going on in others over this regulation,” wrote Marx, “prove conclusively that the isolated worker, the worker as ‘free’ seller of his labour-power, succumbs without resistance once capitalist production has reached a certain stage of maturity.”[13] No longer did the spirit of the worker revolt against the close monitoring of his time. Thus did the worker (and urban society in general) internalize the new temporal order.

Here it may be worthwhile to briefly reflect on the way capitalism transforms the temporal dimension of social experience. On the one hand, it homogenizes time into a set of quantitatively equivalent metric units — minutes, seconds, hours, days. These units are effectively interchangeable; one minute lasts exactly the same duration as any other minute, regardless of the time of day. Such time, abstracted from any concrete events or occurrences that may take place in that time, is essentially universal — devoid of any particulars or peculiarities.[14] It is Newtonian time: pure, repetitive, and scientific. It is unsullied by natural or historical accidence. As the Marxist theoretician Moishe Postone puts it,

“Abstract time,”…by which I mean uniform, continuous, homogeneous, “empty” time, is independent of events. The conception of abstract time, which became increasingly dominant in Western Europe between the fourteenth and seventeenth centuries, was expressed most emphatically in Newton’s formulation of “absolute, true and mathematical time [which] flows equably without relation to anything external.”[15]

This time is, moreover, also cyclical. Of course, it cannot be claimed that nature has no cycles or rhythms of its own; but these natural cycles are organic and matters of quality. The artificial cycles of abstract time are mathematic and matters of quantity. Every day has twenty-four hours, and every hour sixty minutes. Each minute in turn has sixty seconds, and all these remain invariable quantities. Once one minute is over, another begins, and once an hour has passed another has started. Such is the nature of abstract, cyclical time.

All this is well and good conceptually, but when historically did this new sense of time-consciousness become normalized? At what point did the majority of society come to march to the tick of a synchronous clock? Our investigation thus far has suggested that it became increasingly prevalent and normative along with the contiguous spread of capitalism during the industrial revolution. But this brings us into a longstanding debate within the study of horology. To this point, it would seem that we have downplayed or dismissed the prior invention of the clock, such that our treatment of the subject has failed to acknowledge the longue durée of timekeeping itself. But there is often a great disconnect between the mere moment an innovation occurs and the generalization of its consequences to the rest of society. “Although abstract time arose socially in the late Middle Ages, it did not become generalized until much later,” asserts Postone. “Not only did rural life continue to be governed by the rhythms of the seasons, but even in the towns, abstract time impinged directly upon only the lives of merchants and the relatively small number of wage earners.”[16] Only later did this profoundly ahistorical mode of thinking about time arise historically, as part of the deep social transformations that were taking place at the time. The compulsion to synchronize the whole of society only took effect with the advent of capitalism. As Postone writes emphatically, “[t]he tyranny of time in capitalist society is a central dimension of the Marxian categorial analysis.”[17]

By the middle part of the nineteenth century, this form of time-consciousness, or time-discipline, had spread to virtually all of the more mature capitalist nations in Europe and America. Over the course of the latter half of the century, this way of timekeeping exercised an ever-greater degree of control over the thinking and behavior of the citizens of these nations. Toward the beginning of the twentieth century, the practice of time-discipline would be apotheosized in its most systematic form by Frederick Winslow Taylor, who advocated a mode of scientific oversight and monitoring of all time-expenditure of employees. In his Principles of Scientific Management, he wrote that “[t]he enormous saving of time and therefore increase in the output which it is possible to effect through eliminating unnecessary motions and substituting fast for slow and inefficient motions for the men working in any of our trades can be fully realized only after one has personally seen the improvement which results from a thorough motion and time study, made by a competent man.”[18] At this point, the exactitude of one’s use of time was to be internalized and automated to the utmost degree, leading to an ideal of the standardization of all labor. The most thorough practitioners of Taylor’s theory, the husband-and-wife tandem of Frank and Lillian Gilbreth, thus wrote: “Through motion study and fatigue study and the accompanying time study, we have come to know the capabilities of the worker, the demands of the work, the fatigue that the worker suffers at the work, and the amount and nature of the rest required to overcome the fatigue.”[19]

NOTES

[1] Thompson, E.P. “Time, Work-Discipline, and Industrial Capitalism.” From Past & Present 38. (1967). Pg. 58.

[2] Mumford, Lewis. Technics and Civilization. (University of Chicago Press. Chicago, IL: 2010). Pg. 15.

[3] Thompson, “Time, Work-Discipline, and Industrial Capitalism.” Pgs. 63-65.

[4] Mumford, Technics and Civilization. Pg. 17.

[5] Thompson, “Time, Work-Discipline, and Industrial Capitalism.” Pg. 69.

[6] Marx, Karl. Capital: A Critique of Political Economy. Translated by Ben Fowkes. (Penguin Books. New York, NY: 1982). Pg. 129.

[7] “In order to act as such a mirror of value, tailoring itself must reflect nothing apart from its own abstract quality of being human labour.” Ibid., pg. 150.

[8] Thompson, “Time, Work-Discipline, and Industrial Capitalism.” Pg. 90.

[9] Ibid,. pg 85.

[10] Marx, Capital: A Critique of Political Economy. Pg. 394.

[11] “[T]he value of labour­power, and the value which that labour-power valorizes [verwertet] in the labour-process, are two entirely different magnitudes ; and this difference was what the capitalist had in mind when he was purchasing the labour-power.” Ibid., pg. 300. Marx later provides the formula for the rate of absolute surplus value as (surplus labor/necessary labor), or (s/v). Ibid., pg. 326.

[12] “We see then that, leaving aside certain extremely elastic restrictions, the nature of commodity exchange itself imposes no limit to the working day, no limit to surplus labour. The capitalist maintains his rights as a purchaser when he tries to make the working day as long as possible, and, where possible, to make two working days out of one.” Ibid., pg. 344.

[13] Ibid., pg. 412.

[14] “Before the rise and development of modern, capitalist society in Western Europe, dominant conceptions of time were of various forms of concrete time: time was not an autonomous category, independent of events, hence, it could be determined qualitatively, as good or bad, sacred or profane.” Postone, Moishe. Time, Labor, and Social Domination. (Cambridge University Press. New York, NY: 1993). Pg. 201.

[15] Ibid., pg. 202.

[16] Ibid., pg. 212.

[17] Ibid., pg. 214.

[18] Taylor, Frederick Winslow. The Principles of Scientific Management. From The Early Sociology of Management and Organizations, Volume 1: Scientific Management. (Routledge, Taylor & Francis Group. New York, NY: 2005). Pg. 129. My emphases.

[19] Gilbreth, Frank and Gilbreth, Lillian. Applied Motion Study: A Collection of Papers on the Efficient Method to Industrial Preparedness. (Sturgis & Walton Company. New York, NY: 1917). Pgs. 14-15.



Read the Rest Here, or Wait for the Next Installment


RENEGADE EYE

Friday, June 18, 2010

Is China Capitalist?

Fred Weston, editor of Marxist.com, discusses the genesis of the Chinese Revolution and perspectives for the future of 1/5 of humanity.



RENEGADE EYE

Thursday, June 03, 2010

China: Honda Workers Resume Work But Give Company a Deadline to Meet Their Demands

Written by Jorge Martín
Thursday, 03 June 2010



On Tuesday and Wednesday, June 1 and 2, most workers returned to work at the Honda plant in Foshan, China, after strike action which had started on May 17. As we reported earlier, the workers were fighting for substantial wage increases.

Read the rest here



RENEGADE EYE

Thursday, April 22, 2010

We are entering a New Age of World Austerity

Written by Rob Sewell
Wednesday, 21 April 2010


Photo by Dorothea Lange

As the world economy emerges from recession it is clear that the recovery is going to be weak. All governments also face a huge debt overhang, which means that whoever is in power will have to carry out stringent economic measures and it is the working class who will be made to pay. This opens up the prospect of huge class contradictions opening up in the coming period.

Read the rest here



RENEGADE EYE

Wednesday, January 27, 2010

Robert Weissman: Shed a Tear for Our (U.S.) Democracy

Taken from Corpwatch.org



Yesterday, in the case Citizens United v. FEC, the U.S. Supreme Court ruled that corporations have a First Amendment right to spend unlimited amounts of money to influence election outcomes.

Money from Exxon, Goldman Sachs, Pfizer and the rest of the Fortune 500 is already corroding the policy making process in Washington, state capitals and city halls. Now, the Supreme Court tells these corporate giants that they have a constitutional right to trample our democracy.

In eviscerating longstanding rules prohibiting corporations from using their own monies to influence elections, the court invites giant corporations to open up their treasuries to buy election outcomes. Corporations are sure to accept the invitation.


The predictable result will be corporate money flooding the election process; huge targeted campaigns by corporations and their front groups attacking principled candidates who challenge parochial corporate interests; and a chilling effect on candidates and election officials, who will be deterred from advocating and implementing policies that advance the public interest but injure deep-pocket corporations.


Because the decision is made on First Amendment constitutional grounds, the impact will be felt not only at the federal level, but in the states and localities, including in state judicial elections.

In one sense, the decision was a long time in coming. Over the past 30 years, the Supreme Court has created and steadily expanded the First Amendment protections that it has afforded for-profit corporations.

But in another sense, the decision is a startling break from Supreme Court tradition. Even as it has mistakenly equated money with speech in the political context, the court has long upheld regulations on corporate spending in the electoral context. The Citizens United decision is also an astonishing overreach by the court. No one thought the issue of corporations' purported right to spend money to influence election outcomes was at stake in this case until the Supreme Court so decreed. The case had been argued in lower courts, and was originally argued before the Supreme Court, on narrow grounds related to application of the McCain-Feingold campaign finance law.

The court has invented the idea that corporations have First Amendment rights to influence election outcomes out of whole cloth. There is surely no originalist interpretation to support this outcome, since the court created the rights only in recent decades. Nor can the outcome be justified in light of the underlying purpose and spirit of the First Amendment. Corporations are state-created entities, not real people. They do not have expressive interests like humans; and, unlike humans, they are uniquely motivated by a singular focus on their economic bottom line.

Corporate spending on elections defeats rather than advances the democratic thrust of the First Amendment.

We, the People cannot allow this decision to go unchallenged. We, the People cannot allow corporations to take control of our democracy.

There are some things that can be done to mitigate the damage from today's decision.

First, we must have public financing of elections. Public financing will give independent candidates a base from which they may be able to compete against candidates benefiting from corporate expenditures. We will intensify our efforts to win rapid passage of the Fair Elections Now Act, which would provide congressional candidates with an alternative to corporate-funded campaigns before fundraising for the 2010 election is in full swing. Sponsored by Sen. Richard Durbin, D-Illinois, and Rep. John Larson, D-Connecticut, the bill would encourage unlimited small-dollar donations from individuals and provide candidates with public funding in exchange for refusing corporate contributions or private contributions in amounts of more than $100. The proposal has broad support, including more than 126 co-sponsors in the House.

In the wake of the court's decision, it is also essential that the presidential public financing system be made viable again. Cities and states will also need to enact public financing of elections.

Congress must ensure that corporate CEOs do not use corporate funds for political purposes, against the wishes of shareholders, with legislation requiring an absolute majority of shares to be voted in favor, before any corporate political expenditure is permitted. There are other legislative approaches to limit today's damage, including a range of measures proposed by Representative Alan Grayson, D-Florida.

These mitigating measures will not be enough to offset today's decision, however. The decision itself must be overturned.

We need a constitutional amendment specifying that for-profit corporations are not entitled to First Amendment protections, except for freedom of the press. A constitutional amendment is not a thing to throw around lightly. But today's decision so imperils our democratic well-being, and so severely distorts the rightful purpose of the First Amendment, that a constitutional corrective is demanded.

Winning a constitutional amendment will be a long-term effort. The starting point is for the people to petition their government to demand action. Public Citizen with allies has launched such a petition effort. Got to to sign the petition.

The Supreme Court has lost its way. Democracy is rule of the people -- real, live humans, not artificial entity corporations. Now it's time for the people to reassert their rights.

Robert Weissman is president of Public Citizen .

Friday, October 02, 2009

Michael Moore Presents Capitalism: A Love Story ***1/2



Written by Socialist Appeal
Thursday, 01 October 2009

A year after the collapse of Lehman Brothers set off a financial avalanche, the US economy remains in a mess. Official unemployment is steadily creeping toward 10%, as forty-two states lost even more jobs in the last month, bringing the total losses since the recession began two years ago to nearly 7 million. The number of people forced to work part-time jobs due to not being able to find full-time work has risen by over 50% in the past year to 8.8 million. In just one month, 25,000 more manufacturing jobs were lost in Michigan alone. The state now has an unemployment rate of 15.2%.

Health care remains the number one issue facing working Americans, as the average premium for family health insurance offered through an employer surpassed the $13,000 mark this year, far outpacing increases in wages and inflation. Fewer employers offer coverage and those that do are passing greater costs along to their workers. And those are the lucky ones. If you lose your job, forget about it.

The National Academy of Science has developed a new formula to more accurately classify poverty, and found that 15.3% of all Americans live in poverty, up from the 12.5% estimated under the old guidelines. That’s 45.7 million people -- the equivalent of the entire population of Spain. Among the most affected are the 6.8 million elderly Americans who live below the poverty line -- so much for the “Golden Years!”

But for a handful of Americans, it is the “Golden Years” -- Goldman Sachs, that is. This monster financial powerhouse, whose former executives hold key positions at the Department of the Treasury (including Obama-appointed Treasury Secretary Timothy Geithner), recently set aside $11.3 billion to hand out in bonuses -- just months after receiving $10 billion in taxpayer bailout money. No wonder ordinary Americans who have never really doubted the system are starting to ask some questions!

Mark Benson, a 39-year old restaurant manager from Chicago, was recently quoted by Reuters: “I guess I ended up in the wrong career. It must be nice to work on Wall Street, when you profit you get a bonus, when your company fails you get a government bailout then a bonus. I’m all for free enterprise, it’s what built America. But when Wall Street screws up so badly that the government has to print money to bail them out, I confess the bonuses they’re still paying themselves make me feel sick.”

Annie Phillips, a 48-year-old housewife from Nashville had this to say: “Out here in the real world, people are unemployed and hungry and those bankers and the other big shots don’t give a damn.”

Federal Reserve chairman Ben Bernanke says that the worst of the recession is almost certainly over, and if you look only at corporate profits and overall economic growth, there may be a grain of truth to it. But this slight improvement is the result of massive deficit financing by the government and fewer workers doing more work while millions of others rot away on the unemployment line. Wall Street may be back “in the money,” but ask any ordinary worker, and you will get a different answer. In fact, a recent poll by the Associated Press found that 80% think the economy is doing badly and worry about whether or not they can make ends meet. 70% of Americans lack confidence in the ability of the government to prevent another financial industry meltdown. Just 17% believe the government stimulus package has done anything to improve the economy.

Judy Purkey, a 57-year-old grandmother from Morristown, TN was quoted as saying: “I know a lot of people who don’t have health care and really can’t afford it. The economy is so bad. You’ve heard the expression getting blood out of a turnip? -- Well, that’s what’s going on.”

As for who’s to blame for the mess, Americans are still giving President Obama the benefit of the doubt, with just one in five condemning him for this situation. Not surprisingly, over 50% blame former President Bush. Congress gets its fair share of the blame as well. But perhaps most revealing is the fact that that 79% of those polled blame the banks and lenders -- i.e., the capitalists.

It is against this volatile background that Michael Moore premieres his latest film, Capitalism: A Love Story. The fact that a film with such broad distribution even openly calls out the system by name is a tremendous step forward, a reflection of how far Americans’ consciousness has come since the dark days of September 2001. The film is a remarkable exposition of the realities of the system we live under. He exposes capitalism for what it is: a system based on the ruthless exploitation of the many by the few, who shamelessly loot millions of people’s lifelong savings, the public treasury, and kick millions out of their homes. By the end of the film, capitalism stands roundly condemned, and the viewer inevitably has to ask: why is it that in the richest country on earth we cannot provide jobs, health care, housing, and education for all. Moore effectively combines humor, heart-wrenching tragedy suffered by working people, irony, music, and reams of clearly presented facts and figures to provide an answer: capitalism is the problem.

Although Moore has long been a champion of working people and a “liberal” in the broadest sense of the word, his new film is definitely his most politically audacious yet. Not only the film, but his publicly stated views have become increasingly radicalized, as he has become emboldened by the rising anger against the excesses of the system. As he said in a recent interview:

“It’s been a year [since the collapse on Wall Street], and I haven’t seen a single talk show or single edition of ‘Meet the Press’ or an op-ed in the New York Times where they’ve allowed a voice to state the following: ‘The real problem...is capitalism itself.’ It’s an economic system that doesn’t work. It’s not fair, it’s not democratic, it’s not just and it’s got to go. I know I’m not the only person who feels that way, so why haven’t I heard it, why haven’t I read it, why is that part of the debate removed from the discourse? Capitalism is a beast. It will never stop. It has an insatiable desire to make money. You can put as many strings or ropes around it as you want but it will break through. There’s no such thing as enough with capitalism.”

This is incredibly bold and refreshing stuff. However, Moore is less clear as to what he is actually for. He clearly understands that the system can’t be reformed, that it must be replaced. Or, as one of the priests interviewed in the film puts it, “capitalism is evil, and you cannot regulate evil; you have to eliminate it.” However, it seems that Moore is still unwilling to draw the necessary conclusions -- or at least he is unwilling to state this openly.

The Workers International League thinks it is important to state what is: capitalism is the problem, and socialism is the solution. Socialism isn’t a dirty word and revolution isn’t a shadowy conspiracy carried out by a minority. The socialist revolution means nothing more nor less than bringing about a fundamental change in how society is structured and administered, through the direct, democratic, and conscious participation of the vast majority of society.

Moore, on the other hand, prefers to call for “democracy,” and draws on recently discovered film footage in which FDR -- the savior of capitalism during the Great Depression -- calls for a “Second Bill of Rights.” In this speech, FDR calls for the right to a good job, universal education and health care, and an end to racism. Now, whether he raised these points purely demagogically in order to rally the flagging spirits of the country behind the war effort, or whether he truly thought such reforms could come about within the limits of capitalism, we cannot know. But the fact is, capitalism has not been able to guarantee any of this to the entire population.

So we must ask ourselves: if it was unable to provide these basic demands during the long post-war boom or the recent capitalist bonanza, how can it possibly give us even a tenth of this during the current crisis? The Marxists are in favor of all of these things, however, we believe that they can only become a reality by fighting for socialism. Not the totalitarian caricature of Stalinism and Maoism, but democratic socialism, in which the workers democratically control the means of production, distribution and exchange, in harmony with the environment.

And although Moore skewers and exposes the Democrats throughout the movie, he gives Obama himself a pass. He presents the Obama election as a kind of rapture for suffering humanity. It is clear that Obama’s ascent to power was propelled by the heartfelt aspirations of millions of ordinary men and women, especially Blacks and other minorities. However, as a supporter of the effort to form a Labor Party in the late 1990s, Moore should know better: just as capitalism cannot be reformed, neither can the Democratic Party be reformed. Unfortunately, when Socialist Appeal asked Moore at a preview screening of the film whether or not he thought it was time for the unions and workers generally to break with the Democrats, he said that while he supports third party efforts, his advice was that it would be easier to reform the Democrats from within. This is akin to asking a lamb to go tidy up a wolves’ den!

Nonetheless, from his expose on how major corporations make millions by taking out life insurance policies on their employees (referred to as “Dead Peasant Insurance” in internal memos), to the footage from inside the factory occupation at Republic Windows and Doors, Moore relentlessly hammers the capitalist system and draws attention to the power of ordinary people if they organize.

The profound hope for change that swept the country after Obama’s election contains within it the embryo of a real force for change -- the working class majority itself. After a roller coaster of images and emotions, Moore calls on the viewing audience (which will number in the millions) to get organized and mobilize to bring about real change. The film then ends with a swing jazz version of the “Internationale.” Is Moore’s reluctance to call openly for socialism a calculated move to avoid being red-baited, demonized and discredited by the rabid right? Or is it because he is still unclear and unwilling to truly make a break with the system? Either way, Capitalism: A Love Story will open the eyes of millions in a way never before seen in a film with such a broad audience. Whether he calls it “socialism” or “democracy,” Moore seems sincere about wanting to end this system and replace it with something better. With the AFL-CIO now calling for single-payer health care and Moore’s new movie sure to inspire thousands to get organized and fight back against the attacks of the capitalists, there has never been a better time to fight for a mass party of labor and learn more about the ideas of revolutionary socialism and Marxism.

Louis Proyect's Review

Michael Moore's Website

RENEGADE EYE

Saturday, September 19, 2009

The Great Recession: Is It Over?

Written by Michael Roberts
Thursday, 17 September 2009

For the capitalists, this Great Recession could be more or less over, but the level of spare capacity in industry and construction together with the level of debt still owed by businesses, government and households alike mean that this recovery may be stunted. Every major capitalist economy now finds that it has more than 30% more capacity than it needs to meet demand. That is a record high of overcapacity in industry.

For the capitalists, this Great Recession could be more or less over. The pace of decline in the major capitalist economies slowed in the second quarter of this year. Indeed, in some major economies like Germany and France, national output rose. And in some smaller ones like Australia and Norway, there was a small pick up in growth.


There is light at the end of the tunnel for capitalism - perhaps. Photo by scottog on flickr.

At the same time, the big less mature capitalist economies like India and Indonesia continued to grow, while China also maintained positive growth. Indeed, in Asia’s less developed capitalist economies, which contribute about 10-15% of global output, industrial production is up sharply.

Measures of business confidence have turned up – they may not indicate much growth but they do indicate a bottom. The stock markets of the major economies have experienced a massive rally in prices. From lows in March, there has been a 50% rise in stock prices across the board, led by the financial sector and bank shares.

The epicentre of the crisis that triggered it all was the housing market, particularly in the US, but also in Europe and other capitalist economies. Prices of the average home in the US have plummeted by 30% from their peak, and similar falls have been experienced in the UK. Sales transactions and mortgage applications have fallen over 75%. But in the last few months, there has been a stabilisation of sales and even a small increase in prices in certain countries. The bottom of the housing bust is nearly there, even though prices could fall further yet as unemployment rises and more people default on their mortgages.

The OECD and other economic forecasters have now upgraded their estimates of growth in national output for the major economies. They now expect GDP to rise in the US and Europe in this third quarter of 2009, with the UK lagging behind and not recovering until Christmas. But recovery it is for 2010 across the board.

The OECD now forecasts that the Great Recession that officially started in 2008 will have fallen 3.7% in the top seven capitalist economies this year. That follows a 4% plus decline in 2008. So this recession will mean that the top seven economies will have lost 10% of their national output in less than 18 months. But it is even worse than that if you take into account the loss of potential output that should have been achieved by these capitalist economies of say 3% a year. In effect, 15% of output has been lost forever.

Also staggeringly, we have seen a fall in world trade of about 15% in real terms since the start of the Great Recession – the whole capitalist world has been involved. But now it looks as though trade will recover in 2010.

As for the global financial system, the IMF puts the total loss from the credit crunch at $4.1trn, or 6-7% of world GDP, lost forever. The IMF reckons that the US banks have suffered about 60% of their ultimate losses, while the European banks have admitted about only 40% of theirs. The ECB says Eurozone banks face another $300bn in further losses.

The key question now is whether the banks and other financial institutions (insurance, pension funds and hedge funds) have raised enough capital to cover future losses (assuming that these institutions can also make profits from here on to help restock capital reserves).

The latest data show that globally financial institutions have raised less in new capital than their losses. This suggests that, unless governments are prepared to come in with another bailout, banks globally will be unable to expand credit for some time ahead as they try to raise reserves and capital to meet capital adequacy levels. This is the real hit to future economic growth globally.

So the banks will not help economic growth for the next two years at least unless they can raise more capital and that implies more state funding of perhaps $200-$500bn, an unlikely outcome.

That’s because, governments in developed countries have already put up $11trn of taxpayer funds, or one-fifth of global output, to support the financial sector. This involves the biggest input of taxpayer’s money since the Second World War.

The Great Recession has been hugely damaging to capitalism. But economic recovery is now ahead – there is light at the end of the tunnel, perhaps – for capitalism.

But for the working class, the Great Recession has a long way to go yet. Unemployment is rising sharply. In the US, it has hit 9.7%, the highest level for 26 years and is expected to rise above 10% by the end of the year. If you include all the people receiving some form of benefit, there are 15m Americans now looking for work.

About 4.3% of U.S. homes, or one in 25 properties, were in foreclosure in the second quarter, the Washington-based Mortgage Bankers Association said last month. That’s the most in three decades of data, and loans overdue by at least 90 days, the point at which foreclosure proceedings typically begin, rose to 7.97 percent, the highest on record.

America’s working class have taken a huge hit. There was an average $2,000 decline in real household income in 2008, the largest annual drop in 40 years! Real incomes for average Americans are now back where they were 12 year ago.

Such is the inequality of income and wealth in the US that for the bottom 20% of households, the fall has been even worse. Just 25 years ago, the top 20% of American households had 45% of all income; by 2008, that share had reached more than 50%.

The burden of meeting debt repayments remains at record levels – around 18-19% of average income. According to a recent survey by ACNielsen, Americans are “among the most cash-strapped people in the world”, with 22% having no money left after having paid for essential living expenses. Out of 42 top capitalist nations, Americans saved the least.

The big disaster has been the loss of wealth tied in the value of the homes that Americans have bought and in the value of the shares they own through their retirement accounts. Since the start of the Great Recession, household wealth has plummeted by 20% with $14trn being lost in value; $5trn from the value of homes; $6trn in the stock market and another $3trn from other investments.

It is the same story in the UK, where the HBOS bank estimates that an average of £31,000 per household has been lost in wealth because of the Great Recession: £422bn from falling house prices and £393bn from lower share prices. This is the first fall since 2001. British workers have tried to reduce their debts accordingly and been forced to default on their mortgages. Even so, net wealth (after reduced debt) fell 10% in 2008.

So what sort of recovery can we expect now that the Great Recession has bottomed? The optimists of capitalism hope that it will be V-shaped. That means they expect that the sharp fall in global output and profits will be mirrored in reverse by a sharp recovery. The losses suffered during the Great Recession will be quickly recovered and it will be business as usual for capitalism.

This is the ‘natural’ sort of recovery under capitalism and was experienced, for example, after the big slump of 1974-5, after which followed five years of strong economic growth before capitalism dropped into an even deeper slump in 1980. But it may not happen this time.

In the natural recovery, the recession reduces the cost of production and devalues capital sufficiently to drive up profitability for those capitalist enterprises still standing. Unemployment drives down labour costs and bankruptcies and takeovers reduce capital costs. Businesses then gradually start to increase production again, and eventually begin to invest in new capital and rehire those in the ‘reserve army of labour’ without a job. This boosts demand for investment goods and eventually workers start buying more consumer goods and recovery gets under way.

But such is the overhang of spare capacity in industry and construction this time and such is the level of debt still owed by businesses, government and households alike that this recovery may be stunted. After all, every major capitalist economy now finds that it has more than 30% more capacity than it needs to meet demand. That is a record high of overcapacity in industry. Production is going to have to rise some way before new investment will be considered.

It could take the form of a U-shape: what is called a jobless recovery as we saw after the recession of 1991-2. In the early 1990s, businesses renewed investment slowly and held back from rehiring workers for several years. So economic growth was slow in resuming.

It could even become W-shaped. There would be a double-dip. The weight of overcapacity and debt would be too much to allow the revival of consumer spending and investment, so the economic recovery would be short lived and the major capitalist economies would slip back into recession. That is what happened in 1980-82. It took two recessions to get thing going finally.

Even worse, the recovery could take an L-shape. As in Japan after the collapse of the great credit bubble there in 1989, the economy remained in the doldrums for a whole decade. Huge debt has piled up in the banks and rather than write these off and cause major bankruptcies and a banking crisis, the Japanese government used taxpayer’s money to bail the banks out with loans and guarantees. The banks in turn sat on their debts, but did not lend money for new investment. This sounds similar to the current environment.

But probably, the recovery will be more like a square root sign. The big fall in output is over. Now there will be an upturn. But it will fall short of restoring the rate of economic growth achieved before the Great Recession. Instead of 3-4% a year, output in the major economies will be closer to 1-2% a year. That will not be good enough to restore profitability to previous levels. The capitalist system will thus face the risk of a new slump further down the road.

RENEGADE EYE

Wednesday, September 02, 2009

Capitalism Versus Science

Written by Mike Palecek
Wednesday, 12 August 2009

We are constantly bombarded with the myth that capitalism drives innovation, technology, and scientific advancement. But in fact, the precise opposite is true. Capitalism is holding back every aspect of human development, and science and technology is no exception.

We are constantly bombarded with the myth that capitalism drives innovation, technology, and scientific advancement. We are told that competition, combined with the profit motive, pushes science to new frontiers and gives big corporations incentive to invent new medicines, drugs, and treatments. The free market, we are told, is the greatest motivator for human advance. But in fact, the precise opposite is true. Patents, profits, and private ownership of the means of production are actually the greatest fetters science has known in recent history. Capitalism is holding back every aspect of human development, and science and technology is no exception.


Main slab of the Darwinius masillae holotype fossil. Photo by Jens L. Franzen, Philip D. Gingerich, Jörg Habersetzer1, Jørn H. Hurum, Wighart von Koenigswald, B. Holly Smith.

The most recent and blatant example of private ownership serving as a barrier to advancement can be found in the Ida fossil. Darwinius masillae is a 47 million year old lemur that was recently “discovered”. Anyone and everyone interested in evolution cheered at the unveiling of a transitional species, linking upper primates and lower mammals. Ida has forward-facing eyes, short limbs, and even opposable thumbs. What is even more remarkable is the stunning condition she was preserved in. This fossil is 95% complete. The outline of her fur is clearly visible and scientists have even been able to examine the contents of her stomach, determining that her last meal consisted of fruits, seeds, and leaves. Enthusiasts are flocking to New York’s Museum of Natural History to get a glimpse of the landmark fossil.

So what does Ida have to do with capitalism? Well, she was actually unearthed in 1983 and has been held by a private collector ever since. The collector didn’t realize the significance of the fossil (not surprising since he is not a paleontologist) and so it just collected dust for 25 years.

There is a large international market for fossils. Capitalism has reduced these treasures, which rightly belong to all of humanity, to mere commodities. Privately held fossils are regularly leased to museums so that they may be studied or displayed. Private fossil collections tour the world, where they can make money for their owners, instead of undergoing serious study. And countless rare specimens sit in the warehouses of investment companies, or the living rooms of collectors serving as nothing more than a conversation piece. It is impossible to know how many important fossils are sitting, waiting to be discovered in some millionaire’s office.

Medical Research

The pharmaceutical industry is well known for price gouging and refusing to distribute medicines to those who can’t afford it. The lack of drugs to combat the AIDS pandemic, particularly in Africa, is enough to prove capitalism’s inability to distribute medicine to those in need. But what role does the profit motive play in developing new drugs? The big pharmaceuticals have an equally damning record in the research and development side of their industry.

AIDS patients can pay tens of thousands of dollars per year for the medication they need to keep them alive. In 2003, when a new drug called Fuzeon was introduced, there was an outcry over the cost, which would hit patients with a bill of over $20,000 per year. Roche's chairman and chief executive, Franz Humer tried to justify the price tag, “We need to make a decent rate of return on our innovations. This is a major breakthrough therapy… I can't imagine a society that doesn't want that innovation to continue.”

But the innovation that Mr. Humer speaks of is only half-hearted. Drug companies are not motivated by compassion; they are motivated by cash. To a drug company, a person with AIDS is not a patient, but a customer. The pharmaceutical industry has a financial incentive to make sure that these people are repeat-customers, consequently there is very little research being done to find a cure. Most research done by the private sector is centered on finding new anti-retroviral drugs - drugs that patients will have to continue taking for a lifetime.

There has been a push to fund research for an AIDS vaccine and, more recently, an effective microbicide. However, the vast majority of this funding comes from government and non-profit groups. The pharmaceutical industry simply isn’t funding the research to tackle this pandemic. And why would they? No company on earth would fund research that is specifically designed to put them out of business.

Similar problems arise in other areas of medical research. In the cancer field an extremely promising drug was discovered in early 2007. Researchers at the University of Alberta discovered that a simple molecule DCA can reactivate mitochondria in cancer cells, allowing them to die like normal cells. DCA was found to be extremely effective against many forms of cancer in the laboratory and shows promise for being an actual cure for cancer. DCA has been used for decades to treat people with mitochondria disorders. Its effects on the human body are therefore well known, making the development process much simpler.

But clinical trials of DCA have been slowed by funding issues. DCA is not patented or patentable. Drug companies will not have the ability to make massive profits off the production of this drug, so they are not interested. Researchers have been forced to raise money themselves to fund their important work. Initial trials, on a small scale, are now under way and the preliminary results are very encouraging. But it has been two years since this breakthrough was made and serious study is only just getting underway. The U of A’s faculty of medicine has been forced to beg for money from government and non-profit organizations. To date, they have not received a single cent from a for-profit medical organization.

The lack of research into potential non-patentable cures does not stop at DCA. There is an entire industry built up around so-called alternative natural remedies. Many people, this author included, are skeptical about the claims made by those that support alternative medicines. Richard Dawkins is quick to point out that “If a healing technique is demonstrated to have curative properties in properly controlled double-blind trials, it ceases to be alternative. It simply...becomes medicine.” But this black and white view does not take into account the limitations placed on science by capitalism. The refusal to fund the testing needed to verify non-patentable alternative medicines has two damaging effects. First, we are kept in the dark about potentially effective medications. And second, the modern-day snake oil salesmen that peddle false cures are given credibility by the few alternative treatments that do work.

Technology and Industry

The manufacturing industry in particular is supposed to be where capitalist innovation is in its element. We are told that competition between companies will lead to better products, lower prices, new technology and new innovation. But again, upon closer inspection we see private interests serving as more of a barrier than an enabler. Patents and trade secrets prevent new technologies from being developed. The oil industry in particular has a long history of purchasing patents, simply to prevent the products from ever coming to market.

Competition can serve as a motivator for the development of new products. But as we have already seen above, it can also serve as a motivator to prevent new products from ever seeing the light of day. Companies will not only refuse to fund research for the development of a product that might hurt their industry, but in some cases they will go to extraordinary lengths to prevent anyone else from doing the same research.

The 2006 documentary "Who Killed the Electric Car" goes into great detail about the role of big oil companies, auto manufacturers, and the US Federal Government in preventing an alternative vehicle from hitting the road. The filmmaker claims that auto companies would lose out if an electric vehicle was ever produced because of the simplicity of their maintenance. The replacement parts side of the auto industry would be decimated. Oil companies would see a dramatic reduction in the demand for their products as the world switched to electric vehicles. It is claimed that hydrogen fuel cells, which have very little chance of being developed into a useful technology, are used as a distraction from real alternatives. The film maker blasts the American government for directing research away from electric vehicles and towards hydrogen fuel cells.

But the most damning accusations are against major oil companies and auto manufacturers. The film suggests that auto companies have sabotaged their own research into electric cars. What’s worse, is that oil companies have purchased the patents for NiMH batteries to prevent them from being used in electric vehicles. These are the same batteries that are used in laptop computers and large batteries of this type would make the electric vehicle possible. But Chevron maintains veto power over any licensing or use of NiMH battery technology. They continue to refuse to sell these batteries for research purposes. Some hybrid vehicles are now using NiMH batteries, but hybrid vehicles, while improving mileage, still rely on fossil fuels.

While the purchasing of patents is an effective way of shelving new innovations, there are certainly other ways the capitalist system holds back research and development. The very nature of a system based on competition makes collaborative research impossible. Whether it be the pharmaceutical industry, the auto industry or any other, capitalism divides the best engineers and scientists among competing corporations. Anyone involved in research or product development is forced to sign a confidentiality agreement as a condition of employment. Not only are these people prevented from working together, they are not even allowed to compare their notes!

Peer review is supposed to be an important piece of the scientific method. Often, major advancements are made, not by an individual group researchers, but by many groups of researchers. One team develops one piece of the puzzle, someone else discovers another and still another team of scientists puts all of the pieces together. How can a system based on competition foster such collaborative efforts? Simply stated, it can’t.

The governments of the world clearly recognize this as a problem; every time they are met with a serious crisis, they throw their free-market ideals out the window and turn to the public sector. It has been argued many times that World War Two was won by nationalization and planning. Capitalism in Britain was essentially put on hold, so that the war effort could be effectively organized. In the United States, such large scale nationalization did not take place, but when it came to research and development, the private sector was not trusted to handle it on their own.

Fearing that the Nazis were developing the atomic bomb, the US government initiated a massive public program to ensure they were the first to wield a weapon of mass destruction. The Manhattan project succeeded where private industry could not. At one point, over 130,000 people were working on the project. The world’s best and brightest were brought together into a massive collaborative undertaking. They discovered more about nuclear fission in the span of a few years, than they had in the decades since the first atom was split in 1919. Regardless of what one thinks of the atom bomb, this was doubtlessly one of the greatest scientific advancements of the 20th century.

Science, Technology and Economic Planning


Sputnik 1 was the first Earth-orbiting artificial satellite. It was launched by the Soviet Union on 4 October 1957. Work by Gregory R Todd.

The ultimate proof of capitalism’s hindrance of science and technology comes not from capitalism, but from the alternative. While the Soviet Union under Stalin was far from the ideal socialist society (something which we have explained extensively elsewhere), its history gives us valuable insight into the potential of a nationalized planned economy. In 1917 the Bolsheviks took control of a backwards, semi-feudal, third world country that had been ruined by the First World War. In a matter of decades, it was transformed into a leading super-power. The USSR would go on to be the first to put a satellite into orbit, the first to put a man in space, and the first to build a permanently manned outpost in space. Soviet scientists pushed the frontiers of knowledge, particularly in the areas of Mathematics, Astronomy, Nuclear Physics, Space Exploration and Chemistry. Many Soviet era scientists have been awarded Nobel prizes in various fields. These successes are particularly stunning, when one considers the state the country was in when capitalism was overthrown.

How were such advancements possible? How did the Soviet Union go from having a population that was 90% illiterate, to having more scientists, doctors and engineers per capita than any other country on Earth in just a few decades? The superiority of the nationalized planned economy and the break from the madness of capitalism is the only explanation.

The first step in this process was simply the recognition that science was a priority. Under capitalism, the ability of private companies to develop science and technology is limited by a narrow view of what is profitable. Companies do not plan to advance technology, they plan to build a marketable product and will only do what is necessary to bring that product to market. The Soviets immediately recognized the importance of the overall development of science and technology and linked it to the development of the country as a whole. This broad view allowed them to put substantial resources into all areas of study.

Another vital component of their success was the massive expansion of education. By abolishing private schools and providing free education at all levels, individuals in the population were able to meet their potential. A citizen could continue their studies as long as they were capable. By contrast, even many advanced capitalist countries have been unable to eliminate illiteracy today, let alone open up university education to all who are able. Under capitalism, massive financial barriers are placed in front of students, which prevent large portions of the population from reaching their potential. When half of the world’s population is forced to live on less than two dollars a day, we can only conclude that massive reserves of human talent are being wasted.

The soviet government immediately tore down all the barriers on science that strangle innovation within the capitalist system. Patents, trade secrets, and private industry were eliminated. This allowed for more collaborative research across fields and a free flow of information between institutions. Religious prejudices that had long held back rational study were pushed aside. One only has to look at the ban on stem-cell research under the Bush regime to see the negative effects religious bigotry can have on science.

But it wasn’t all good news under Stalinism. Just as the bureaucracy hindered the development of the economy, it also hindered certain areas of study. While the many barriers of capitalism were broken down, in some cases new ones were erected as the direction of scientific study was subjugated to the needs and desires of the bureaucracy. In the most extreme cases, certain fields of study were outlawed entirely and leading scientists were arrested and sent to labour camps in Siberia. One of the most outrageous cases was Stalin’s contempt for chromosomal genetics. The study of genetics was banned and several prominent geneticists, including Agol, Levit and Nadson were executed. Nikolai Vavilov, one of the Soviet Union’s great geneticists was sent to a labour camp, where he died in 1943. This ban wasn’t overturned until the mid 1960s. These crimes were not crimes of socialism, but of Stalinism. Under a democratically planned economy, there would be no reason for such atrocities.

Today, it is the task of those interested in science and socialism to learn the lessons of history. Science is being held back by private interests and industry. A lack of resources for education and research keep doors closed to young aspiring minds. Religious interference locks science in a cage and declares important fields of study off-limits. The chains of the free-market prevent meaningful research from being done. Private companies refuse to let new technologies out of their back rooms. Private collectors hold unique and important specimens for their own personal amusement. Potential cures for deadly diseases are tossed aside to clear the way for research into the latest drug to cure erectile dysfunction. This is madness. Capitalism does not drive innovation, but hinders it at every step.

Humanity today is being held back by an economic system designed to enslave the majority for the benefit of a minority. Every aspect of human development is hindered by the erroneously-named free-market. With the development of computers, the internet and new technologies, humanity stands at the doorstep of a bright future of scientific advancement and prosperity. We are learning more and more about every aspect of our existence. What was once impossible, is now tangible. What was once a mystery, is now understood. What was once veiled, is now in plain sight. The advancement of scientific knowledge will one day put even the farthest reaches of the universe at our fingertips. The only thing that stands in our way is capitalism.

RENEGADE EYE