No compromise, No concessions

At the present time it is inconceivable that a reformist party can gain much in the way of reforms from the capitalist class. We are living in a period of recession for capitalism and not of its upswing. The class war is going on all the time: the enemy is still the enemy, even when, for his own ends, he gives way upon this or that point. “No compromise” must be our motto. Let us take all we can get, but never let us surrender our principles, for any consideration whatever.

Many cannot hope myself to live to witness the realisation of the a co-operative commonwealth, spreading throughout the world. But we know with a conviction that it is coming. Central to the capitalist economic system is the exploitation of workers by capitalists. In modern Britain, the chief means of production – raw materials, machinery, buildings, transport, etc. are owned and controlled by a small minority of capitalists. This determines that the great mass of people, the working class, have no choice except to work for capitalist employers so as to earn a money wage to buy the goods and services, the commodities, necessary for them to survive. On the face of things this relationship between capitalist and worker seems to be a fair and equal one: the worker agrees to do so many hours work for the capitalist and in return the capitalist agrees to pay a certain amount of money in wages. In reality this relationship is an unequal and exploitative one because the wages paid to the worker are less than the value of what he or she produces. The difference between the value of what workers produce and what they receive in wages constitutes the profits of the capitalist employer. Massive exploitation of the working class is an integral part of the capitalist economic system and will persist for as long as does capitalism.

Not only do capitalist exploit workers but the system operates in such a way that capitalists constantly have to try to exploit workers even more. Different capitalists producing the same kind of commodity are competing with one another in the market to sell their products. Failure to sell the commodities produced by his firm means bankruptcy and ruin for a capitalist and the main way of ensuring steady sales is to offer given commodities on the market at a price below that charged by other capitalists. If a capitalist is to reduce his prices without reducing his profits then one way is to increase the hours of work of his employees without paying them any more wages. Sometimes employers get away with this move in petty ways, for example, being paid for tea breaks and cleaning can be abolished, but where many workers are organised in trade unions, it is not easy for capitalists to force workers to accept an substantive increase in the degree to which they are exploited, such as the ploy is to speed up the rate of work, increase its intensity, and thus reduce the cost per item by forcing the workforce to produce more commodities in the same time as before. In the car industry this generally takes the form of speeding up the rate at which the production assembly line moves. Again, this does happen but in a given type of production there is usually a very definite limit to which the pace of work can be increased and anyway workers are likely to resist such a move.

 It is important to realise that capitalists are not always looking for ways to increase the degree of exploitation of workers because they, the capitalists, are inherently greedy but that they do this because of the way in which the capitalist economy operates leaves them with no choice if they are to stay in business. Similarly, if workers are not to be worked to death and totally impoverished then they have no choice except to take a common stand together against capitalist employers so as to resist employers’ attempts to exploit them even more. This is done by forming trade unions to defend wage levels and working conditions. In Britain a greater proportion of workers are in trade unions than in any of the other advanced capitalist countries. Even so it is obvious, especially with the onset of the present economic depression, that trade unions only have a very limited capacity to defend the living standards and working conditions of the working class.

While trade unions are a necessary means of defence of the working class against the capitalist class it is also the case that they pose no fundamental challenge to the whole capitalist system. Trade unions do not challenge the right of capitalists to exploit workers but only the degree to which this takes place. Even the most militant trade union struggles, involving workplace occupations and clashes with the police, pose no fundamental challenge to the dominant position of the capitalist class. If the working class does not rise above the level of recognising the necessity to organise industrially, of a trade union consciousness, then it will be doomed to an eternity of struggle with the capitalist class.

 The whole of capitalist society is organised around the capitalist economy. The modern family is structured to produce and discipline the workforce, labour power. The state passes laws and maintains the police and armed forces so as to keep the working class in line. Education and the mass media are powerful means of spreading the ideas and outlook of the capitalist class, bourgeois ideology, among the working class so as to get them to accept the capitalist system. Religions promise the good life in this world for those who knuckle under to oppression and exploitation in this one, and so on. Capitalist society in its totality is structured so as to preserve the exploitative relationship between the capitalist class and the working class which lies at its heart. Nonetheless this same system contains within itself forces which periodically throw it into crisis and open up the possibility of its final overthrow arid replacement by a society where oppression and exploitation do not exist.

 Another way, in fact the most important way in which capitalists try to gain an advantage over each other is by introducing new and more efficient means of production, technological innovation. The capitalist employer in a given field of production may be able to reduce his costs of production by introducing new production processes which enable output per worker to rise and thus cost per unit to fall. This allows the employer to sell his commodities at a price lower than that of his competitors while at the same time increasing his rate of profit on the capital he has invested. This advantage does not last long because the other employers will also quickly adopt the new production processes so as to be able to compete and stay in business. As the new production processes become introduced throughout an industry the proportion of total capital which is spent on raw materials, machinery, etc. rises while the proportion spent on employing labour power, on paying wages, falls. The consequence of this change is that since capitalists can only extract surplus value from those workers they employ directly and the number of these is falling, their rate of return on their capital falls as well. Paradoxically the greater efficiency in production brought about by developments in technology means a falling rate of profit for capitalists and redundancy for workers.

Such is the inbuilt unavoidable absurdity of the capitalist system of production: its enormous productive power brings it grinding to a halt. As the rate of profit falls, so capitalists become increasingly unable to find profitable ways in which they can reinvest their capital. As investment falls off so workers become unemployed. In Britain the rate of profit declined from around 1960 onwards and this structural feature of capitalism is the fundamental cause of the current world depression of capitalism. The last major world depression was in the 1930s. After World War II there was a world wide capitalist boom with a rapid rise of working class living standards in the imperialist countries. Capitalist politicians attributed this return to prosperity to the Keynesian economic policies being pursued by Western capitalist governments. The ruling class and their political and ideological mouthpieces proclaimed the advent of an everlasting economic boom with no return to major depression. Now it is all too clear that the periodic crises of capitalism have not been eliminated. The only way in which the working class can permanently rid itself of these cycles of boom and slump is to get rid of capitalism and replace it with socialism.

 The only way out of the present world-wide economic depression for the capitalist class is to do whatever is necessary to restore the profitability of capital. One way or another this means intensifying the exploitation of the working class by means of the methods mentioned earlier. If this is to be done then the trade unions have to be undermined and weakened so that workers are unable to resist intensified exploitation. As well as weakening the unions the capitalist state has an important role to play in restructuring industry and commerce so as to make them more profitable. It does this by providing all sorts of financial concessions and help to areas of production which seem to have profitable potential while ruthlessly withdrawing support from declining sectors of the economy such as mining. Another way of providing profitable investment opportunities for capitalists is by selling off the more lucrative state-owned enterprises.

 As the recession has deepened the state has tried to reduce its expenditures, especially on welfare services and social security. This has been done so as to try to keep down the degree to which the employers are taxed. The reason for that is that if the rate of taxation rises this cuts into already low profit levels. Savings in state expenditures have particularly hit those sections of the working class who are least able to cause much trouble for the capitalist class – the unemployed, the sick and the old. The state has pursued a deliberate policy of divide and rule by penalising the weakest sections of the working class rather than those who could offer some organised resistance.

 The current world-wide capitalist depression very clearly reveals the limitations of trade unionism and social democratic politics for the working class. With the re-emergence of mass unemployment the employers and their capitalist state ride roughshod over organised labour and vigorously set about undermining trade union organisation. The capitalist state cuts back upon welfare and social security benefits received by the working class with little effective opposition being forthcoming. Of course it is correct for workers, both employed and unemployed, to fight back as best they can against these attacks on their living standards and the Socialist Party encourages and supports such struggles. Even so these struggles are at best of a defensive nature and can only prevent the impact of the depression on the working class from being slightly less worse than it would otherwise be.  Genuine socialists must vigorously combat the propaganda of the reformists who seek to convince the working class that parliamentary reforms can make capitalism deliver the goods. We participate in these struggles in such a way as to help workers realise that only by the complete abolition of capitalism will they ever achieve freedom from material want and the security to enjoy it.

 A paradox of the capitalist system of production is that in the midst of plenty it also produces severe material deprivation. Capitalism has brought about the progressive development of the forces of production at a very rapid rate. Modern science and technology make it possible to provide material comfort and plenty for all. Yet in the world as a whole today the gap between the rich and the poor is actually widening, especially in the underdeveloped countries. The proportion of the world’s population who are underfed and starving is increasing. Even in the relatively prosperous countries such as Britain there are still millions of people who lack such basic necessities as a healthy diet and adequate housing. Clearly the problem for the great mass of humanity is not a lack of the skills, knowledge and resources necessary to bring about the material welfare of humankind. Rather the problem is one of abolishing the capitalist relations which prevent the forces of production being utilised in ways that meet the real human needs of everyone. From being in its earlier stages a force for the progressive development of humanity capitalism has now become a brake on further progress. The working class in all countries, including Britain, has a very real and urgent need to abolish the capitalist economic order.

 Not only does capitalism deprive most people of the means of material well-being but it also means that they lose control over the process whereby they produce the means of material life; we are in a state of alienation. What crucially distinguishes human beings from other animals is the very active relationship we have with our natural environment in the course of productive activity. We act on the world to satisfy our material needs and in the course of so doing change not only the world but ourselves as well; our relationships and consciousness. Man makes himself and he does this through work. Yet the worker does not possess the products of his labour, he does not have control over the productive process, capitalist economic relations throw workers into conflict with each other and work itself, that most human of our attributes, is experienced as a burdensome imposition. The loss of control, the alienation of the worker, is not confined to the sphere of production but extends out to all aspects of life in capitalist society. We need to abolish capitalism not simply to have a fatter pay packet but so as to gain control together over all aspects of our lives, to liberate the whole of humanity from alienation. Only revolution can achieve this objective.