Thursday, February 06, 2014

Pessimism V Optimism


Capital must accumulate in order to survive. It grows by keeping for itself the surplus value produced by workers after they have reproduced the value of their labour power, their wages. Surplus value is the source of all profit. The unending search for surplus value, for profit, is the motive force of capitalist production. In its restless search for maximum profits, spurred on by ruthless competition, each capitalist company is bound to attempt to increase its productive strength to the full.

Capitalism can produce only for profit. It is forced constantly to seek new ways to achieve the maximum rate of profit. Competition between rival capitals ensures the destruction of all capitals which do not conform to the blind laws of capitalist production. The bosses cut their costs of production mainly by stepping up their already vicious exploitation of the working class. They cut their wage bills by reducing wages and sacking workers. They also make the remaining workers work longer hours and they increase the intensity of labour.

Capitalists also reduce their wage bill by buying more advanced machinery in order to produce the same goods with less labour. The cut-throat competition between employers, particularly at times of crisis, means that eventually factories using outdated machinery will inevitably be closed down unless the owners can make a profit by installing new machinery, and have the capital to do so. In many cases they cannot. And so repeatedly the  capitalists are forced by the laws of capitalist production to destroy the means of production on a massive scale and make thousands of workers unemployed.

At times of crisis management  tell us to tighten our belts and slave harder for them, “in the national interest”. They try to increase exploitation so as to get the huge profit needed to start capital expanding again. Competition among the capitalists to minimise losses is very fierce. In this battle the winners as well as the losers lay workers off and further reduce living standards.

The government is an executive committee for managing the common affairs of the whole bourgeoisie. With the great sharpening of the crisis of capitalism on all fronts, governments inevitably plays a greater and greater part in the economy, whatever the desires of any individual particular capitalist on this matter. Capitalism is increasingly openly becoming state-interventionist capitalism.

As section after section of British financial capitalism tottered towards complete bankruptcy, more and more only the state  provided massive source of funds to bail out the banks. Northern Rock, Lloyds and Royal Bank of Scotland were taken under state control whether it is called “nationalisation” or “government assistance” the essence of the matter is the same.

The Labour Party is a capitalist political party. This is determined by the class it serves politically and the  class character of its ideology. The Labour Party is especially valuable to the ruling class  in hiding the class nature of their control. In words the Labor Party claims to be the party of the working class but in deeds it serves the rich and powerful. The Labour Party is “the best bosses’ party”. By posing as a friend of the working class it can get the cooperation of the trade unions for its capitalist policies of attacking the working class, in a way that the Conservative Party cannot. Thus it success fully binds the workers’ economic organisations, the Trade Unions, into the capitalist system.

The Left-wing versus Right-wing feuds within the Labour Party are not accidental but a deliberate and conscious balancing act, essential if the Labour Party is to fool the working class to give into the demands of the employer class. Compared to the Conservative Party, the Labour Party represents that section of employers which favours greater state intervention. Although this is disliked by other employers. Between the two main political parties, the Labour Party is not “the lesser evil”. The Labour Party is the greater danger! Who are our enemies? Who are our friends? This is a question of the first importance for the revolution. Our enemy is the capitalist class and all those in league with them.

The  main force in the socialist revolution is the working class. Capitalism brings into being and unites the working class into one great mass and teaches them to fight in a disciplined and united way. It is only the working class that is most far-sighted, most unselfish and most thoroughly progressive. Only the working class,  the great majority of the people,   can struggle for socialism. We place our trust in the people. The working class is always organising against oppression. The capitalist class is forever trying to grind the working class down, and where there is oppression, there is always resistance. Now the capitalist class is increasing the attack on the working class. A drive to break the power and influence of trade unions is under way. Wage, benefits and working condition gains are being taken away.

 Labour struggles being conducted are mostly defensive - maintaining concessions won previously. Educational and social services and welfare funding is being reduced. This is a capitalist attack. The working class resists. True, the resistance is still scattered over many issues, but struggles are merging into mighty currents something activists should help to be achieved.

We are in a period of sharpening class struggle. Pessimists see only half the struggle, only the capitalist attack. The capitalist class has no alternative but to attack the working class’s life in every respect. And the workers are in struggle. Students no longer stand passive as they once did during the Thatcher years. Government workers defend their pensions.The private sector protect their jobs. There is deep distrust and rejection of the official channels into which the capitalist class tries to divert politics. The old faith in electoral politics is disappearing. The links are at the base, among concerned people in the grass roots of the various movements, organising horizontally or structuring themselves from the bottom up. Newspapers and television are read and watched cynically. The percentage of people who vote at elections is at a historical low point but social consciousness is deeper. There is a sense of mutual support and solidarity of each others’ struggles. New connections between the labour and environmental movements are being made.

We are not at the brink of a revolutionary period yet by any means. Yet now more than ever, it can be said that the workers question capitalism on a much broader scope than ever before. It is a time for optimism

FOR SOCIALISM

Wednesday, February 05, 2014

Behind The Hollywood Facade

Thousands of US military veterans face homelessness and chronic conditions like alcoholism and post-traumatic stress disorder, despite millions of dollars in government spending on the group. The Department of Veterans Affairs (VA) has said it is extending a grant program designed to help reduce homelessness among veterans, making $600 million available over the next two years. There were roughly 58,000 homeless veterans last year, according to the New York Times, citing government officials. 'The high rate of unemployment, post traumatic stress disorder and combat injuries among veterans have sharply raised the rate of suicide among them. New figures show that the number of young American veterans committing suicide soared from 2009 to 2011. ....  The suicide rate among veterans remains well above that for the general US population, with roughly 22 veterans a day taking their own lives.' (ALALAM, 19 January) This harsh reality clashes with the usual Hollywood fiction of military heroism and bravery. RD

Growing Consciousness


Some writers in have been saying that the Marxist theories have become antiquated owing to the facts of economic science, and that therefore it would be necessary to proceed to a complete revision of the theories expounded by Karl Marx. To make a long story short, nothing has really changed within the camp of the capitalist. Exploitation, oppression and reaction still reign supreme. And violent repression is always present, available as often as necessary.The Socialist Party makes no apology for our  principles.  We seek  the common of all wealth production, and this involves the complete elimination of the capitalist system.

There are doubtless many sincere people who shudder at the word socialism yet who, nevertheless wish  to see better conditions and who think things are steadily improving. Ask them how and they will answer you with vague platitudes and some cherry-picked statistics. Ask how soon will be the abolition of  poverty for all and the answer becomes even more hazy. Yet it we socialists who are charged by them for not being explicit enough in our ideas and aspirations and they turn a deaf ear to our education and agitation.

The aim of Socialism has always been to abolish squalid conditions of life, and  replace with by at least sufficiency, if not abundance or even luxury,  for all alike without discrimination. Socialism has never proclaimed itself proponents of spartan austerity or puritanical abstinence. On the contrary, we demand good living for all.

 Those whose sympathies are with the economic demand of socialism, but who still hold reservations ask what attitude socialism takes up as regards other questions of personal and social life, apart from its strictly economic aspects.  We don’t want hard-and-fast lines drawn, but  nor evasions, to many questions continually being asked but our aspiration is a social ideal,  not a personal goal.

We are well acquainted with the critics of socialism declaring human ‘nature’ being what it is all men and women are greedy and lazy. We live in a post-scarcity society. It is now possible for the whole world, not just the lucky minority, to live a comfortable life with more than just adequate food clothing and shelter. We can produce abundance, enough for everybody. The doomsters and catastrophists are wrong.

Of course, if we all lived the American lifestyle where 5 percent of the world’s population uses 25 percent of its resources, we would require four Planet Earths. The average American eat too much meat, drive too many miles, live in houses that are too big and too far apart, shop too much for stuff they don’t really need. America’s poor are wealthier than most of the world. Depictions of  consumerism tend to suggest that blame lies with the ravenous, grasping masses.

Yet it is the top five hundred million people by income, comprising about 8 percent of global population, are responsible for 50 percent of all carbon emissions. It’s a truly global elite, with high emitters present in all countries of the world. In Western Europe, the transportation footprint of the top income earners is 250 percent of that of the poor.

People drive cars instead of taking the bus or train, move to a house with a garden instead of going to the park, buy books and home entertainment systems instead of going to libraries and museums, drink bottled water instead of tap—if they can afford to. It doesn’t make us any  happier. Rather, the status-symbol treadmill of keeping up with the Jones frequently produces and fuels  anxiety, inadequacy and debt under the banner of individual liberty and freedom of choice.

 The sociologist Juliet Schor says we could work four-hour days without any decline in the standard of living; similarly, the New Economics Foundation proposes we could get by on a 21-hour workweek. This is not a new message. In the 19th century Paul Lafargue, Karl Marx’s son-in-law, was arguing for the right to be lazy.

At a certain stage in the life of every individual acquires a “consciousness” of personal identity and  becomes aware of their own  distinctiveness, physically and mentally. This sense of individuality, this power of ordered thought (“consciousness”), is the result of the development of the requisite brain-organ; and, as each individual from conception to maturity successively reproduces the stages through which the species as a whole has passed, by comparison we can ascertain the relative degree of development reached by any individual. When an individual has become “conscious”,  arrived at that stage of growth at which one perceives both the distinction and relation between oneself and the rest of creation— he or she  has acquired a power of reacting upon their environment; a power (limited but real) of “self-determination,” within, of course, the possibilities set by his physical powers and the said environment.

When conditions are ripe the working class will acquire, with the recognition of their place in society, and of their constraint and that which constrains them, and a perception of the vital organic force impelling them to struggle, their consciousness as a class—their power of “self-determination.” To make the working class thus “conscious,” it is necessary to make it understand the relation between it and the rest of (i.e., the other classes in) society.

Class-consciousness on the part of any one worker thus entails the recognition by him of his place as a unit in a class, at present politically ruled and economically enslaved, whose historic mission it is to carry Society forward into a higher stage of development: the recognition that the interests and therefore impulses of the individuals composing either ruling or ruled classes respectively are mutual and those of the two classes antagonistic, and consequently that the development of Society more and more produces a class-struggle for the possession of political power as a necessary pre-condition on the one hand for rule and on the other for emancipation.

The working-class-consciousness will express itself in a political organisation for the purpose of accomplishing this emancipation. That worker is class-conscious who has seen the duty of enlisting under the banner of Revolution—in the political party of the workers —a socialist party.


Tuesday, February 04, 2014

Recovery? What Recovery?

The Chancellor of the Exchequer may speak encouragingly about an economic recovery but for millions of workers this is a complete sham. 'Up to four million Britons who display signs of having run up 'problem debts' are underestimating the seriousness of their situations, Stepchange has said. The debt charity conducted a survey that found as many as 15 million people in the UK have run into problems that mean they're having to rely on credit cards or overdrafts to get them to payday, or are falling behind on household bill payments. ...... This follows a study by Shelter released last week that found that around a million Britons had used payday loans to cover essential payments like mortgage or rental costs.' (Daily Mail, 20 January) When even a right wing government supporter like the Daily Mail can report this poverty the Chancellor's words do not ring true. RD

A Sense of Perspective

Capitalism is a crazy society with mad values but surely nothing better sums up its madness than this. 'Tickets to the National Football League's first cold-weather Super Bowl are a hot item, with some climate-controlled suites in New Jersey's MetLife Stadium priced at $1 million. Following Sunday's conference championships that set up a Denver-Seattle Super Bowl on February 2, the average resale price of tickets on secondary markets was $3,721, the highest figure in five years of tracking, according to SeatGeek.' (Business Insider, 20 January) We are talking about a society where millions die because they cannot afford $2 a day in order to survive and yet some bloated member of the capitalist class spends a £1 million on himself and his pals for a stupid football game. RD

Class Struggle and the Nation

WORKERS OF THE WORLD UNITE
In the Communist Manifesto we read the following:
"Though not in substance, yet in form, the struggle of the proletariat with the bourgeoisie is at first a national struggle. The proletariat of each country must, of course, first of all settle matters with its own bourgeoisie."

 This passage only means that the  British workers, for instance,  cannot wage the class struggle against the French capitalists, nor can the French workers wage the class struggle against the British  employers, but that the British  bourgeoisie and the power of the UK State can be attacked and defeated only by the British working class.

The nation naturally arises as a community of interests of the bourgeois classes. But it is the State which is the real solid organisation of the capitalist class for protecting its interests. The State protects property, it takes care of administration, puts the rmed forces in order, collects the taxes and keeps the masses under control. The "nations", or, more precisely: the active organisations which use the nation's name, that is, the pro-capitalist parties, have no other purpose than to fight for the conquest of a fitting share of influence over the State, for participation in State power. For  Big Business, whose economic interests embrace the whole State and even other countries, and which needs direct privileges, customs duties, State purchases and protection overseas, it is its natural community of interests, rather than the nation, which defines the State and its limitations.  State power is an instrument at the service of big capital.

Nations are not just groups of people who have the same cultural interests and who, for that reason, want to live in peace with other nations; they are combat organisations of the bourgeoisie which are used to gain power within the State. Every national bourgeoisie hopes to extend the territory where it exercises its rule at the expense of its adversaries; it is therefore totally erroneous to think that the bourgeoisie could through its own initiative put an end to these exhausting struggles, just as it is utterly out of the question that the capitalist world powers will usher in an epoch of eternal world peace, through a sensible settlement of their differences. Does the bourgeoisie really have an interest in putting an end to national struggles? Not at all, it has the greatest interest in not putting an end to them, especially since the class struggle has reached a high point. Just like religious antagonisms, national antagonisms constitute excellent means to divide the proletariat, to divert its attention from the class struggle with the aid of ideological slogans and to prevent its class unity.

 The struggle for socialism is a struggle for State power against the capitalist parties. State power is the fiefdom of the owning classes.  The workers  cannot free themselves, they cannot defeat capitalism unless it first defeats this powerful organisation. The conquest of political hegemony is not a struggle for State power; it is a struggle against State power. The social revolution which shall issue into socialism consists essentially of defeating State power with the power of the working class  organisation. This is why it must be carried out by the workers of the entire State. This common liberation struggle against a common enemy is the most important experience in the entire history of the life of the proletariat from its first awakening until its victory. The international character of the proletariat develops rapidly.

 The workers of different countries exchange theory and practice, methods of struggle and ideas, and they consider these topics to be matters common to all. The struggles, the victories and the defeats in one country have profound impacts on the class struggle in other countries. The struggles waged by our class comrades in other countries against their bourgeoisie are our affairs not only on the terrain of ideas, but also on the practical plane; they form part of our own fight and we feel them as such. The workers of the whole world perceives itself as a single army, as a great association which is only obliged for practical reasons to split into numerous battalions which must fight the enemy separately, since the bourgeoisie is organized into States and there are as a result numerous fortresses to reduce. This is also the way the press informs us of struggles in foreign countries: Occupy Movement, the Indignados, and the demonstrations on the streets of Rio or Phnom Penh are all of interest to our class organisation. In this manner the international class struggle becomes the common experience of the workers of all countries.

Through the overthrow of the State by the power of the working class majority, the State disappears as a coercive power. It takes on a new function: "The government of persons gives way to the administration of things." as Engels describes it in Anti-Dühring.

For the purpose of production, we need organisation and administration; but the extremely strict centralization such as that practiced by today's State is neither necessary nor can it possibly be employed in pursuit of that goal. Such centralisation will give way to full decentralisation and self-administration inside socialism.  According to the size of each sector of production, the organisations will cover larger or smaller areas; while bread, for example, will be produced on a local scale, steel production and the operation of railroad networks require regional-sized economic entities. There will be production units of the most various sizes, from the workshop and the local municipality to the district and the regions, and even, for certain industries, global . Those naturally-occurring human groups will they not then take the place of the vanished nation-states as organisational units? This may be the case in the beginning, for the simple practical reason, that they are communities of the same language and all of man's relations are mediated through language. Some regions will merge, others will dissolve.  All partially manage their own affairs and all depend upon the whole, as parts of that whole. National differences will totally lose the economic roots which today give them such an extraordinary vigour. The whole notion of autonomy comes from the capitalist era, when the conditions of domination led to their opposite, that is, freedom in respect to a particular form of domination.

The socialist mode of production does not develop oppositions of interest between nations, as is the case with capitalist competition and rivalry. The economic unit is neither the State nor the nation, but the world. This mode of production is much more than a network of national productive units connected to one another by an intelligent policy of communications and by international conventions; it is an organisation of world production in one unit and the common affair of all humanity. This material basis of the collectivity, organised world production, transforms the future of humanity into a single community.

 Linguistic diversity will be no obstacle, since every human community which maintains real communication with another human community will create a common language. Without attempting here to examine the question of a universal language, we shall only point out that today it is easy to learn various languages once one has advanced beyond the level of primary instruction. This is why it is useless to examine the question of to what degree the current linguistic boundaries and differences are of a permanent nature. Already we see English growing to be the lingua franca of the world. There cannot be independent communities of culture because every community, without exception, will find itself, under the influence of the culture of all of humanity, in cultural communication, in an exchange of ideas, with humanity in its entirety.

Powerful economic forces generate national isolation, antagonism and the whole nationalist ideology of the capitalist class. These features are absent among the working class. They are replaced by the class struggle, which gives the lives of the worker their essential character, and creates an international community in which nations as linguistic groups have no practical significance. Socialist tactics are based on the science of social development. The way a working class assumes responsibility for pursuing its own interests is determined by its conception of the future evolution of its conditions. Its tactics must not yield to the influence of every desire and every goal which arise among the oppressed workers, or by every idea that dominates the latter's mentality; if these are in contradiction with the effective development they are unrealisable, so all the energy and all the work devoted to them are in vain and can even be harmful. The priority of our tactics is to favour that which will inevitably realise our socialist goal. Nationalism is nothing but capitalist ideology which does not have material roots in the working class movement and which will therefore disappear as the class struggle develops. It constitutes, like all ruling class ideology, an obstacle for the class struggle whose harmful influence must be eliminated as much as possible.

 Nationalist slogans distract the workers from their own specifically class aspirations. They divide the workers of different nations; they provoke the mutual hostility of the workers and thus destroy the necessary unity of the proletariat. They line up the workers and the ruling clas shoulder to shoulder in one front, thus obscuring the workers' class consciousness and transforming the workers into the executors of plutocrat’s policy. National struggles prevent the assertion of social questions and proletarian interests in politics and condemn this important means of struggle of the proletariat to sterility. All of this is encouraged by ‘socialist’ propaganda when the left nationalists presents nationalist slogans to the workers as valid, regardless of the very goal of their struggle, and when it utilises the language of nationalism in the description of our socialist goals. It is indispensable that class feeling and class struggle should be deeply rooted in the minds of the workers; then they will progressively become aware of the unreality and futility of nationalist slogans for their class.

This is why the nation-State as a goal in itself, such as the re-establishment of an independent national State in Scotland, has no place in socialist propaganda. Socialism is based upon the recognition of the real class interests of the workers. It cannot be led astray by ideologies, even when the latter seem to be rooted in men's minds. Our tactic consists in making the workers more aware of their real class interests, showing them the reality of this society and its life in order to orient their minds more towards the real world of today. Socialists only speak of capitalism, exploitation, class interests, and the need for the workers to collectively wage the class struggle. In this way the mind is steered away from secondary ideas of the past in order to focus on present-day reality; these ideas of the past are thus deprived of their power to lead the workers astray from the class struggle and the defense of their class interests. Our emphasis is upon the class struggle, to awaken class feeling in order to turn attention away from national problems.

Our propaganda could appear to be useless against the power of nationalist ideology and it could seem that nationalism is making the most progress among the workers. But insofar as nationalist movements are in practice capable only of following in the wake of the ruling class and thus of arousing the feeling of the working class against them, they will progressively lose their power.

 We would, however,  have gone completely off the rails if we wanted to win the working class over to socialism by being more nationalist than the capitalist class as some on the Left appear intent upon doing. Such nationalist opportunism would allow the appearance of workers being   won over, but this does not win them over to our cause, to socialist ideas. Capitalist conceptions will continue to dominate their minds as before. And when the decisive moment arrives when they must choose between national and class interests, the internal weakness of this workers movement will become apparent, as is currently taking place in the separatist crisis. How can we rally the masses under our banner if we allow them to flock to the banner of nationalism? Our principle of class struggle can only prevail when the other principles that manipulate and divide men are rendered ineffective; but if our propaganda enhances the reputation of those other principles, we subvert our own cause.

Even though we do not get involved in the slogans and watchwords of nationalism and continue to use the slogans of socialism, this does not mean that we are pursuing a kind of ostrich policy in regard to national questions. These are, after all, real questions which are of concern to men and which they want to solve. We are trying to get the workers to become conscious of the fact that, for them, it is not these questions, but exploitation and the class struggle, which are the most vital and important questions which cast their shadows over everything. But this does not make the other questions disappear and we have to show that we are capable of resolving them.

To all the nationalist slogans and arguments, the response will be: exploitation, surplus value, bourgeoisie, class rule, class struggle.  If they speak of free higher education, we shall call attention to the insufficiency of all teaching dispensed to the children of the workers, who learn no more than what is necessary for their subsequent life of back-breaking toil at the service of capital. If they speak of  local job creation, we will speak of the misery which compels Scots to emigrate. If they speak of the unity of the nation, we will speak of exploitation and class oppression. If they speak of the greatness of the nation, we will speak of the solidarity of the workers of the whole world.

Only when the great reality of today's world—capitalist development, exploitation, the class struggle and its final goal, socialism—has entirely impregnated the minds of the workers, will the  ideals of nationalism fade away. The class struggle and propaganda for socialism comprise the sole effective means of breaking the power of nationalism.

Adapted from Anton Pannekoek’s Class Struggle and Nation,
available in full and unabridged here

Monday, February 03, 2014

A STRANGE DEMOCRACY

Supporters of capitalism in the USA are forever boasting about what a wonderful democratic political system they have but Charles and David Koch  are American billionaire brothers who as lavish political spenders have made the headlines and make a mockery of any claims of the USA to be democratic. 'A recent study estimated that in the 2012 election cycle some 17 different Koch-backed groups spent a combined $400m (£240m) trying to influence the outcome of the presidential race and scores of other elections across the US. (Independent, 31 January) This vast expenditure would dwarf any that could be afforded by the working class. RD

The Banksters at RBS

The crimes of Royal Bank of Scotland as described on this website.

UK: PPI mis-selling - Estimated liability: £2.65 billion
RBS has set aside £2.65 billion in provisions to cover the cost of compensating customers to whom it mis-sold payment protection insurance (PPI). This often redundant product was highly lucrative for the banks but was useless to many of the people who bought it. The bank now has 1,800 staff working full-time on PPI redress. It threw an additional £250 million into the compensation pot on Friday.

UK: Rights issue class action - Liability: up to £13 billion
The bank is fighting the UK’s largest ever class action case in the High Court. The suit comes from 13,000 RBS investors who allege that the bank duped them into putting £12.3 billion into a rights issue in April 2008. On 30 July, the RBoS Shareholders Action Group was ordered to amalgamate its £4.3 billion claim with those of two other investor groups. A QC’s opinion last year found that asset-management firms that bought into the rights issues that fail to participate in the action could risk being sued by investors. The bank said: “RBS considers its has substantial and credible legal and factual defences to these claims.”

UK: Card and identity protection insurance - Estimated liability: £200 million (based on RBS’s market share)
The bank misled customers into buying insurance for their credit cards and identity theft insurance from London-based Card Protection Plan. On 22 August, the FCA declared that CPP and RBS, alongside 12 other banks and credit card issuers, had agreed to a £1.3 billion compensation scheme.

UK and Ireland: IT meltdown - Estimated liability: up to £300 million
On 19 June 2012, RBS suffered one of the worst IT meltdowns in banking history, with millions of customers locked out of their accounts for days and customer transactions going awry. The bank has promised to reimburse customers for any losses they suffered and paid out £175 million in 2012. The incident is also the subject of regulatory inquiries in both the UK and Ireland, and RBS may also face claims for damages through the courts.

UK: “Systemic abuse” in restructuring and recovery - Estimated liability: up to £5 billion
Allegations of “systemic institutionalised fraud” in RBS’s recovery and restructuring division (West Register and Global Restructuring Group) are being investigated by a number of civil and criminal UK authorities. Lawrence Tomlinson, chairman of Leeds-based LNT Group and entrepreneur-in-residence at the Department for Business Innovation and Skills, alleges: “This is a massive scandal. It’s about the bank creating situations that put people into a corner where it can hit them with outrageous fees and transformed into zombie companies.” He is providing 300-400 case studies to business secretary Vince Cable.

UK: Interest rate swaps mis-selling - Liability: up to £1.5 billion (if FCA fines RBS)
In February, RBS booked a £750 million provision to cover compensation for small businesses to which it mis-sold interest-rated hedging products, a figure that experts believe may be too low. After initially denying it had done anything wrong, the bank now says it will provide “fair and reasonable redress” to eligible customers under a redress scheme agreed with the FCA. Speaking on the BBC’s Panorama last month, FCA chief executive Martin Wheatley warned the regulator may also fine banks involved in the scandal.

EU: Credit default swaps anti-competitive behaviour - Estimated liability: unknown
EU cartel-busters are investigating RBS’s role in the credit default swap (CDS) market and handed the bank a statement of objections in July. The EC has raised concerns that a number of banks, plus data provider Markit and industry group the International Swaps and Derivatives Association may have jointly blocked exchanges from entering the CDS market. RBS said: “At this stage, the RBS group cannot estimate reliably what effect the outcome of the investigation may have on the group, which may be material.”

Singapore: Benchmark rigging - Estimated liability: £500 million-£600 million
RBS was one of 20 banks penalised by the Monetary Authority of Singapore in June for rigging Sibor (the Singapore Interbank Offered Rate) and other benchmarks between 2007 and 2011. RBS has set aside additional statutory reserves with MAS of Singapore $1 billion-$1.2bn (£500 million-£600m) and has been forced to improve its systems and controls in Singapore.

US: SEC “Wells” notice for ­defective residential mortgage-backed securities - Estimated liability: unknown
The US Securities and Exchange Commission slapped a “Wells” notice on RBS on 28 March, giving notice of its intention to sue. The suit relates to allegedly faulty mortgage-backed securities dating from 2007. The SEC started its probe in September 2010, when it asked RBS for information concerning residential mortgage-backed securities underwritten by US subsidiaries of RBS in the period September 2006 to July 2007.

US: Defective mortgage bond issuance - Estimated liability: $4 billion-$6 billion
RBS, through Greenwich Capital, sold $32 billion of allegedly defective mortgage-backed securities to American state-owned mortgage giants Fannie Mae and Freddie Mac. Now the Federal Housing Finance Agency (FHFA) is suing RBS over these the bonds. The FHFA alleges that RBS routinely breached mortgage-lending rules and bullied surveyors into inflating property valuations. Overall, RBS is being sued for $91bn of mortgage-backed securities and has been named as defendant in 45 lawsuits related to mortgage-backed securities.

US: Weak anti-money-laundering controls - Estimated liability: up to $1.5 billion
On 27 July 2011, RBS was hit with a cease-and-desist order by the US Federal Reserve over violations of money-laundering laws. This required RBS to improve risk management and compliance to ensure does not get used as “washing machine” for the laundering of funds for countries subject to US economic blockade, such as Iran. RBS is “continuing to co-operate” with inquiries led by the Department of Justice and has “conducted disciplinary proceedings against a number of employees”.

US: Mortgages – loan repurchases and indemnities - Estimated liabilities: $750 million
When bundling mortgages into mortgage-backed securities, the bank’s M&IB arm (formerly GBM) and Citizens asked issuers of the underlying mortgages to provide certain warranties. In instances where issuers refused, M&IB tended to issue the “representations and warranties” itself. In such cases, the bank is liable to repurchase the bonds or else “indemnify certain parties against losses”. Between early 2009 and June 2013, RBS received $741 million in repurchase demands, which it is striving to resist. The bank said: “The volume of repurchase demands is increasing and is expected to continue to increase.”

US: Credit default swaps anti-competitive behaviour - Estimated liability: unknown
In May and August 2013, RBS and other banks were sued in anti-trust class action suits filed in courts in Illinois and New York state. The complaints allege that RBS broke competition law in the market for credit default swaps, driving up bid-offer spreads. The bank admits the cases could lead to “investigatory or other action being taken by governmental and regulatory authorities” and could have a “material adverse effect” on RBS group.

US: Other allegedly faulty securitisations - Estimated liability: unknown
In January 2011, the SEC launched a formal inquiry into inadequate documentation relating to RBS’s US mortgage securitisations. This followed subpoenas in 2007 of several players in the US securitisation industry, focusing on information underwriters obtained from independent firms that performed due diligence on underlying loans. RBS gave relevant documentation to the New York attorney general in 2008. RBS said: “The investigation is ongoing and the RBS Group continues to provide the requested information.”

Global: Libor - Estimated liability: RBS already fined £390 million; the ultimate cost could be as high as £80 billion
On 6 February, the US Department of Justice and the Commodity Futures Trading Commission (CFTC) and the UK’s Financial Services Authority fined RBS $612m (£390m) fine for rigging Libor, the benchmark interbank interest rate. Other banks and brokers penalised for similar offences include Barclays, UBS and Rabobank. RBS faces further penalties from the EU and Canadian Competition Bureau, plus civil claims from US investors, the most recent of which came from mortgage giant Fannie Mae last Thursday. Analyst Sandy Chen has said if there was just 0.05% mispricing in interbank rates over four years – less than the 0.4% some class action lawsuits allege – RBS faces possible damages of £80bn.

Global: ISDAfix - Estimated liability: unknown
Multiple agencies and regulators around the world are investigating RBS for possible rigging of IDSAfix, a benchmark used in the interest rate swaps market. America’s CFTC is examining about one million emails and phone call recordings related to the alleged manipulation, involving traders from RBS and more than ten other global banks and brokerages.

Global: FX market rigging - Estimated liability: unknown
On Thursday it emerged that two of RBS’s currency traders have been suspended as part of an inquiry by global regulators into suspected manipulation of foreign exchange markets. The regulators, which include the UK Financial Conduct Authority, America’s FBI and Switzerland’s FINMA suspect that global banks including RBS colluded to manipulate exchange rates in the global, $5.3 trillion a day, foreign exchange markets. RBS has provided the FCA with e-chats that a former senior RBS dealer – Richard “Dick” Usher who left the bank in 2010 – had with traders at other banks. The traders’ group was variously known as “The Bandits” and “The Cartel”.

Sunday, February 02, 2014

Health and the Profit Motive.

Medical research by major pharmaceutical firms is apparently a noble effort to combat diseases but we live inside capitalism so that nobility is tempered by the profit motive.   AstraZeneca, Britain's second-largest drugs company has decided to shut down its research into tropical diseases, tuberculosis and malaria because Pascal Soriot, its chief executive wants to cut expenditure and halt a decline in profits.  'Bayer landed in hot water last week when Marijn Dekkers, the German company's chief executive described one of the company's cancer drugs as a medicine "developed for Western patients who can afford it" and said it was not for Indians".' (Times, 31 January) These cuts in medical research are happening in a society where 1.3 million deaths occur because of tuberculosis and 1,300 children die every day from malaria according to World Health Organisation figures. RD

Want Change? Engage To Change Minds


Socialism is the system of society in  which production is for use; that is, the production of all the means of existence, including all the necessities and comforts of life  carried out by the community for its own use collectively and individually. Production to-day is purely in the interest and for the profit of the class which owns the instruments of production — by which we mean the land, the mines, the factories and machinery, transport, machinery. Socialism would substitute common ownership of these things and this would also involve the abolition of classes altogether.

The word class is used in many ways. For instance, we the  the upper, lower and the middle classes. But this does not alter the fact that society is separated into two main divisions or classes, one part, for all practical purposes, possesses all the material means of production, and another section which has no effective ownership in, or control over, these things. The question as to which of these two divisions a man belongs to may easily be determined by whether he or she possesses or does not possess effective control over the labour of others through the possession or the control of the means of production.

The terms CAPITAL, CAPITALIST, and CAPITALISM, as generally used, imply considerable concentrations of the means of production in the hands of one person or a comparatively small number of persons, and the payment of wages for the labour employed in the use of these means of production, in such wise that the total product remains the property of the possessors of the capital used. Thus capital and capitalism imply the existence of a whole series of social conditions in which the users of the tools, the means of production, have no ownership or control over the tools which they use. The terms of the bargain between capitalists and non-capitalists are, therefore, the following: We are the proprietors of the whole produce of our property, our tools, and we agree to pay a small proportion out of this product to you, the actual producers.

 Profit is not made on the market, but in the workshop, in the mine and the factory. Profit is derived from the surplus value which is wrung from the unpaid labour of the workers. Surplus-value is the difference between the cost of labour-power to the capitalist and the amount of labour-power he is able to extract from his work-force. Labour-power is the capacity for labour inherent in the workman, and it is this capacity or quality which the capitalist buys in the labour market as a commodity. We are assuming a modern capitalist society in which there are no slaves, and the workmen are free. Consequently the capitalist does not buy the workman, neither does he buy labour; that is to say, labour actually expended or in operation. What he buys, when he engages a workman for a given time, is the power to labour contained in the body of the labourer.

The labourer and the capitalist meet on the market, the one as seller the other as buyer, in the same way as do the buyers and sellers of other commodities. The exchange-value of labour-power is precisely the same as that of any other commodity, determined by the amount of socially necessary human labour expended in its production; in other words, and in the language usually employed by economists, the return to labour — WAGES — is determined by the cost of subsistence of the labourer. For it is by this subsistence that the labour- power is continually reproduced. The capitalist buys labour-power at its cost of production in labour, but the amount of labour which the workman expends, that is to say, the capacity for labour, or the labour-power, which the capitalist buys, and which the workman incorporates in the commodities he produces, is a very much greater quantity than is expended in the production of that labour-power, and it is this difference, a difference which the capitalist gets for nothing, which constitutes surplus-value.

The capitalist obtains this surplus-value owing to his monopoly of the means of production, which enables him to extend the working day, beyond the hours necessary to produce the subsistence of the labourer; by the employment of machinery, by which the labour of the workman is made more effective; and by the organisation of labour, which has the effect of intensifying the expenditure of labour. The labourer cannot, as a rule, command more than the actual exchange-value of his commodity, that is to say, his cost of subsistence, in return for his labour-although his wages, like the prices of all commodities, sometimes rise above this and sometimes fall below — because, although apparently free, he is really not free. He must sell his labour-power in order to live; he has no other commodity to dispose of, and, having no ownership in or control over the means of production, he cannot employ himself. Consequently, he has to find a purchaser for his commodity and must accept the terms that purchaser will offer — subject only to two conditions, his own cost of subsistence and the fluctuations of the market.  The variations or modifications in its operation no more destroy its validity as a general economic law, than the fact that no bodies ever proceed in a direct line, owing to disturbances due to friction, disproves the first law of motion, or the law of gravitation. Machinery itself is the product of labour, and is used for the purpose of exploiting labour; but of itself it creates no value. The sum total of the value of a commodity represents the sum total of the average labour employed in its production, including that involved in producing the raw material and the amount of the wear and tear of the machinery used up in the commodity, but the surplus-value comes from unpaid labour only.

Machinery itself is the product of labour, and is used for the purpose of exploiting labour; but of itself it creates no value. The sum total of the value of a commodity represents the sum total of the average labour employed in its production, including that involved in producing the raw material and the amount of the wear and tear of the machinery used up in the commodity, but the surplus-value comes from unpaid labour only.

The profit of the immediate capitalist employer only forms a portion of the total surplus-value. Out of that total the landlord draws his rent, the banker his interest, government taxation to pay the salaries of public officers. In short the rewards or payments of all those who are not themselves engaged in the immediate work of production are all derived from the surplus-value wrung from the unpaid labour of the workers. Socialists do not accept the theory of the division of profit, as stated by the orthodox political economy, into wages of superintendence, rewards for risk-taking and abstainence. Although a portion of profit is spoken of as Wages of Superintendence, it is clear that in so far as such wages are strictly a return for the useful work of management, they are not profit at all, and it is only by a misuse of terms that profit can be so described. The term wages of superintendence, however, is generally only a fancy phrase applied by the capitalist to a portion of his profits, and bears no relation whatever to wages in any shape, or to any useful service which the capitalist may perform. As to indemnification for risk, the capitalist might so describe a portion of his profit, but as a matter of fact this is purely speculative, as there is no relation between his profit and his risk; while the less said about the abstinence for which he claims to be rewarded the better. The capitalist does not perform a useful function in running a risk for the profit he receives. In so far as he exercises the function of management and receives remuneration for this, his remuneration is not profit at all, but wages of superintendence, and the functions of management would be undertaken by the organised society of the future through its appointed representatives. As to any necessary risk, all individuals would be relieved from this under socialism, as it would be borne by the whole of society.

Socialism does not mean mere government or municipal ownership or management. The State of to-day, nationally or locally, is only the agent of the possessing class. State-owned businesses are run for profit just as other businesses are; and the government, as the agent of the possessing class, has, in the interests of its employers, to treat the employees just as other employees are treated. The organised democratic society contemplated by socialists is a very different thing. When society is organised for the control of its own business, and has acquired the possession of its own means of production, it will for the use of all and not for the profit of a few.

The Socialist Party of Great Britain seeks political power over the present class State for its conscious and definite aim the common ownership and control of the whole of the world’s industry. The entire means of production thus being common property, there would no longer be a propertied class to make a profit out of interest on loans or in any other way, and the property qualification which now divides society into two classes being thus swept away, classes themselves would disappear. Socialism is much more than an economic theory and embraces all the relations of human life. The establishment of socialism means a complete change in society in all its aspects. The economic conditions directly determine the political conditions; less directly, but none the less certainly, the ethical conditions; still less directly, the artistic.

To suppose that any mere distributive readjustment is what is meant by socialism is to entirely misunderstand what socialism really involves. Socialism means the complete reorganisation of production as well as distribution. With production scientifically and socially organised, the productivity of labour would be quintupled, and the amount of wealth would be increased in proportion. This increase in productivity will result, firstly,  by the saving of the tremendous waste of labour which goes on to-day. All the labour employed in sales, advertising and exchange is entirely uuproductive, so far as useful wealth is concerned, and would be quite unnecessary if wealth were produced for use. Then there is the waste of labour involved in the use of obsolete methods, and in the employment of men and women to do work which could be more expeditiously performed by machines, simply because more profit is made by employing the men and women, owing to their labour being cheaper than machinery. And further, there is the inevitable waste of wealth under present circumstances due entirely to the system of production for profit, which makes it often more profitable to destroy wealth or to limit its quantity, rather than, to preserve or increase it. All this would be changed, and the vast mass of labour now wasted would be transferred to useful production, were society organised on a socialist basis.

With society properly organised there would be, with the unrestricted enjoyment of wealth, very much less waste — in both labour and material — in consumption. That is to say, the consumption or enjoyment of wealth would be more organised, more social, and less individualistic than it is to-day and would be infinitely less wasteful than now. Transport would be more economical when socialised than to-day, where the individual has to have his or her own car. Here it must be distinctly understood that we are not dogmatising as to what will be, but simply suggesting what may be done, in at least one way, to economise consumption by a proper organisation.

Saturday, February 01, 2014

Socialist Standard February 2014



Whole issue as print ready pdf: 

Fact and Fiction

Politicians like to paint a picture of steadily improving conditions for the working class with the development of capitalism, but recent statistics disprove that notion. 'Real wages have been dropping consistently since 2010 - the longest period of falls since at least 1964, official figures show. Real wages calculate earnings when the rising cost of living, or inflation, is taken into account. The Office for National Statistics said real wages had fallen by 2.2% annually since the first three months of 2010.' (BBC News, 31 January)  These figures show that the politicians have little to boast about. RD

The SPGB are for Soviets


The capitalist political State is not and cannot be a true democracy. It is elected because the wealthiest section of society can suppress all facts through its power over the media. By its money the capitalists can buy up TV and press and these trump up false election issues. The electorate is not asked to vote upon facts but only upon such topics as the press, representing the capitalitalists, puts before the workers.

To establish socialism workers who want it need to organise themselves democratically. As this will involve committees or councils composed of workers these could be called "workers' councils" (soviets) even though those who have traditionally used this term have given it a narrower meaning. We in the Socialist Party have always held that workers should organise both politically (to win control of state power) and industrially (to keep production going) in the course of the socialist revolution.  The difference with the advocates of "workers' councils" in the narrow sense is that they oppose workers organising to contest elections and win seats in parliament and local councils. We reject this dogmatic, anti-parliament position and this will be the subject of the debate. The issue will not be whether or not workers should organise outside parliament (that is agreed) but whether they should organise also to contest elections and send delegates to parliament. The Socialist Party refused to be put in the position of living up to its caricature in some libertarian left circles of defending using parliament rather than "workers councils" whereas our long-standing position has been using both.

It is not because the working class are opposed to socialism that they have declined to elect our candidates, but because they have been persuaded that they can get socialism, or as much of it as is practicable at present, by voting Labour. The Socialist Party candidate might have no chance, in which case a vote given to him would be thrown away, and might, moreover, serve to “let the Tory in.” The latter contingency was too dreadful to contemplate. Far better to make sure of the half-loaf offered by the Labour Party—even though that half-loaf should turn out not to be bread at all—rather than risk getting nothing at all by letting in the hated Tory. That is the argument hammered at day after day, dinned into the ears of the workers persistently in every constituency. Even the numerically stronger Left fare little better than we do. And there was no reason why they should. We, at any rate, while carrying on our socialist propaganda, had not failed to call attention to the sins of omission and commission of all Government, and to emphasise the truth that for the workers there is nothing to choose between any of the capitalist political factions, and that the only hope for the workers, politically, lies in independent political action—independent of and hostile to all capitalist factions.

The Left, however, in spite of the fact that their very existence as a party lose no opportunity of apologising for Labour. "But they couldn't do any better," we are told. Exactly, again. We never suggested that they could. It is not for their performance we blame them - or the lack of it. It is for their promises, and for their hypocritical pretences by which they have deluded the people. But, above all, we blame the people, the credulous radical activists  who persist in pinning their faith to those who have deluded and betrayed them over and over again, and who, as they should know by this time, cannot possibly accomplish that which these Leftists wish to see achieved.  The result, of course, is that their followers would not see that there was anything to choose between them and the Labour Party. That is themost important lesson to be learn - that we must absolutely destroy this pathetic faith in the Labour Party and in its promises before any further progress can be made. It is not the principles or opinions of the socialists which cause their defeat, but rather  the specious  and hypocritical promises of the gradualists and reformists have their effect in winning socialist support and gaining socialist votes.

The emancipation of the workers must be the work of the working class themselves, and as an instrument to that end we need an independent working-class party, inspired with Socialist ideals. The chief obstacle to the creation of that instrument is the Labour Party.  There is no reason whatever why a worker should vote Labour. All their promises are fly-blown and worth­less. If the capitalists cannot solve the problems of capitalism, it is certain that the Labour Party leaders cannot solve the problems of capitalism. Every attempt they make only hastens disillusionment.  Even if fulfilled they would mean nothing for us. The Socialist Party  must attract new blood into our movement, interest the young people, let in fresh air to blow away the fog of doubt and despair. We must face the fight with confidence and answer the challenge of the capitalist class without hesitation: ‘We will fight you, expose you and defeat you. We will give  people of the world, a new hope and inspiration’ With a fighting class policy there is not only hope, but certainty, of victory. It is clear that the working class is the only social force to which humanity can turn to create a pathway through the chaos of capitalism. To this inspiring task, we summon the workers of city and country – all who are oppressed by capitalism. The myriad evils of capitalism will disappear only with the destruction of capitalism and the building of socialism.

But the working class cannot bring its curative capacity to bear upon the situation without it is prepared to fight the enemies who stand in the way. Capitalism cannot be sustained without a large volume of support from the masses of the population. We, socialists, refuse to join the reformists in leading the workers into the camp of capitalism. Use the ballot against capitalism. Vote, then, for socialism. Vote for the Socialist Party, the only party that keeps the revolutionary banner unfurled. The attitude of the Socialist Party is clear and definite. It claims that the wealth of society is created by the workers. It claims that the working class, through their industrial and administrative councils, must own and control all the processes of wealth production. It seeks, through industrial unionism and workers councils, to build up the decision-making structures which will take over industry and agriculture and operate these in the interests of the community.

We carry the struggle on to the political field in order to challenge the power which the present ruling class wields through its domination of the State which it wins at the ballot box. By its victory at the ballot box, and its consequent political domination, the capitalists are able to subdue the labour movement. The departments of State are in the hands of unsympathetic bureaucrats who are appointed by our masters. The bureaucrats have no organic connection with industry and are unable to understand working-class problems. Being appointed by the master class, who control the State, the bureaucrats can only maintain their jobs by serving those who control them. Here, again, is another industrial problem, the destruction of bureaucracy, which can be solved if workers defeat their masters at the ballot box. The Socialist Party contends that the problems of society will never be solved until  workers, representing every phase of industrial and agricultural activity, band themselves together into a class union and elect their own local and national industrial administrative councils. These councils will be organically and functionally adapted to organise and control industry on behalf of every worker in the community. Around such a social structure would spring up committees which would serve the social and cultural wants of every individual in society.

But we cannot build up workers councils, our ‘soviets’,  and leave political control in the hands of the ruling class. We have seen what power the conquest of the State gives to Capital in its struggle with Labour. It is through its political strength that the capitalists can deprive us of every shred of civil liberty the loss of which makes the peaceful agitation for the revolution impossible. The maintenance of civil liberty is part of the political struggle of revolutionary Labour. And in the measure that the industrial movement becomes more powerful so in the same measure Capital will resort to the use of the armed forces and other violent methods of suppression. The control of these forces flow directly from Capital’s control of the State which it secures at the ballot box. Therefore, in order to achieve a peaceful revolution. Labour must capture the powers of the State at the ballot box and prevent the capitalist class from using the nation’s military forces against the emerging socialist society. This destructive function is the revolutionary role of political action. But this destructive political function is necessary in order that the industrial constructive element in the revolution may not be thwarted.

It urges the workers to use their ballots to capture political power—not to play at politicians or pose as statesmen, but to use their votes to uproot the political State and to hand to the workers the constructive task of building up the administrative councils of socialism. To think that Parliament can be used as the means of permanently improving the conditions of Labour, by passing a series of acts and decrees, is to believe in parliamentarism. The Socialist Party is not a parliamentary party. It believes in entering Parliament only as a means of sweeping away all antiquated institutions which stand in the way of the industrial union owning and controlling the means of production.

AJJ

Friday, January 31, 2014

A Brutal Society

We are constantly confronted with awful statistics about capitalism, but it is doubtful if anything beats the following example of the system's brutality. 'The world's 85 wealthiest people have as much money as the 3.5 billion poorest people on the planet - half the Earth's population. That's according to Oxfam's latest report on the risks of the widening gap between the super-rich and the poor. The report, titled "Working for the Few," was released Monday,  and was compiled by Oxfam - an international organization looking  for solutions against poverty and injustice.' (RT News, 21 January). Oxfam of  course is completely powerless when it comes to changing the nature of capitalism. Only a revolution in the basis of society can bring about a change in this insane ownership gap. RD

Old or New - it is still Marxism


Prometheus says: “I shall never exchange my fetters for slavish servility. ’Tis better to be chained to the rock than bound to the service of Zeus.”(Quoted by Marx)

Workers are confronted by a hodge-podge of ideas, a mish-mash of movements every one of basically saying “we” will bring salvation to the people and lead them to the promised land. In contrast the Communist Manifesto’s message is that “The proletarian movement is the self-conscious, independent movement of the immense majority, in the interests of the immense majority.”

The classic formulation of the self-emancipation principle is in 1864 Rules of the First International – “CONSIDERING, That the emancipation of the working classes must be conquered by the working classes themselves....”

It proclaims that we no longer want deliverers, that we no longer wished to serve as instruments of others , and that we have knowledge to understand our interests as much as any other.

Marx went further explaining in an address to the National Labour Union in the US :
“On you, then, devolves the glorious task to prove to the world that now at last the working classes are bestriding the scene of history no longer as servile retainers, but as independent actors, conscious of their own responsibility.”

When Marx denounces the shooting of Belgium strikers he declares:
“[the Belgian capitalist was so liberty-loving] that he has always indignantly repulsed any factory law encroaching upon that liberty. He shudders at the very idea that a common workman should be wicked enough to claim any higher destiny than that of enriching his master and natural superior. He wants his workman not only to remain a miserable drudge, overworked and underpaid, but, like every other slaveholder, he wants him to be a cringing, servile broken-hearted, morally prostrate, religiously humble drudge. Hence his frantic fury at strikes. With him, a strike is a blasphemy, a slave’s revolt, the signal of a social cataclysm.”

Marx is contemptuous of the attitude of the ruling class “we will grant but you must ask.” The General Council meeting after it had adopted its well-known address to Abraham Lincoln, which was to be presented to the US embassy, The minutes record:
“A long discussion then took place as to the mode of presenting the address and the propriety of having a MP with the deputation; this was strongly opposed by many members who said working men should rely on themselves and not seek for extraneous aid.”
The motion that was passed limited the delegation to Council members. Marx related to Engels:
“.. part of the Englishmen on the Committee wanted to have the deputation introduced by a member of Parliament since it was customary. This hankering was defeated by the majority of the English and the unanimity of the Continentals, and it was declared, on the contrary, that such old English customs ought to be abolished.”

The great thing about the Paris Commune for Marx about the Commune was that it was the working class who took over:
“It is a strange fact. In spite of all the tall talk and all the immense literature, for the last sixty years, about Emancipation of Labour, no sooner do the working men anywhere take the subject into their own hands with a will, than uprises at once all the apologetic phraseology of the mouthpieces of present society...”

He goes on to explain:
“That the revolution is made in the name and confessedly for the popular masses, that is, the producing masses, is a feature this Revolution has in common with all its predecessors. The new feature is that the people, after the first rising, have not disarmed themselves and surrendered their power into the hands of the Republican mountebanks of the ruling classes, that, by the constitution of the Commune, they have taken the actual management of their Revolution into their own hands and found at the time, in the case of success, the means to hold it in the hands of the People itself, displacing the State machinery, the governmental machinery of the ruling classes by a governmental machinery of their own. This is their ineffable crime! Workmen infringing upon the governmental privilege of the upper 10,000 and proclaiming their will to break the economical basis of that class despotism which for its own sake wielded the organized Stateforce of society! This is it that has thrown the respectable classes in Europe as in the United States into the paroxysms of convulsions ..the government of the working class can only save France and do the national business, by working for its own emancipation, the conditions of that emancipation being at the same time the conditions of the regeneration of France.”

Neither Marx or Engels commented at length about how a socialism  would operate. It is not possible to foresee under what particular concrete social conditions the revolutionary process might unfold. Socialist society is an economic system based upon conscious planning of production by associated producers. Nowhere does Marx say by the state. There is no room for a “socialist state” in socialism, even though there may be the need for a central direction of the socialised economy, which, however, is itself a part of the organisation of associated producers and not an independent entity set against them. Marx had no notion of a ‘workers’ state’ replacing the capitalist state. In communism, communal decision-making becomes a part of collective productive life. How repugnant to Marx would any idea have been that ownership of the means of production by a bureaucratic state machine would constitute ‘socialism’.

This is all made possible by the abolition of private property of the means of production. As soon as that private property is completely abolished, goods produced cease to be commodities. Value and exchange value disappear. Production becomes production for use, for the satisfaction of needs, determined by conscious choice of the mass of the associated producers themselves.

To be human is to be both social and at the same time a particular individual, a person. Indeed, Marx’s conception of socialism was founded on the possibility of ‘the free development of individualities’. Marx concentrated all his work on the achievement of a truly human society ,and. therefore of the notion of the truly human individual. Marx did not believe that there was a fixed, eternal ‘human nature’.  He knew that there was no human essence given in advance, a ‘human condition’ chosen for each human by God, or by genetic inheritance. Instead, he thought that we ourselves have produced human nature and by joint (communal) activity human individuals have made and remade themselves and their mutual relations. No human individual is an isolated entity.

The social form of human life in which we live sets people against each other. In a society  based upon self-interest, how can anybody take ‘the standpoint of socialised humanity’? The social whole confronts each of us as our enemy. The whole process, both the relations between people and the relation of people to nature, is hidden, distorted and mystified. The relationship between each individual human and the society in which they live is a great problem, pondered by philosophers, psychologists and political scientists. Somehow, amidst all the corruption and fragmentation of the modem world, we have remained – not much, not always, generally unknown to ourselves and with many mistakes and distortions – human. At the back of our minds, we still know it.

 In its early days Marx conceived a period of relative scarcity of a number of consumer goods and services, making it necessary to measure exactly distribution based on the actual labour inputs of each individual - labour time vouchers. But as production develops a situation that provides plenty  for all  any form of precise measurement of consumption will disappear.The principle that the full needs covering all different needs of different individuals will be satisfied will prevail . No incentive will be needed any more to induce people to work- 'from each according to ability to each according to need'. Work will have transformed itself into meaningful activity, making possible all-round development of each individual’s human personality. The division of labour between manual and intellectual labour, the separation of town and countryside, will fade away. Humankind will be organised into a free federation of producers’ and consumers’ communes.

Production is never individual production despite the grandiose claims of the capitalist 'entrepreneur’ . It is only the collective effort of human beings that enables them to get a livelihood from the world around them. So the central core activity – work – has to be organised socially. Every particular stage in the development of human labour demands certain sorts of social relationships to sustain it. The potential of new technology and automation  makes socialism much easier, by creating the possibility of  a 20-hour, 15-hour, or 10-hour working week for all. Human happiness does not depend on strenuous permanent activity, although perhaps a certain minimum amount of physical and mental activity seems to contribute to a healthy well-being including the growth of the mind. Paul Lafargue’s Right to be Lazy can be realised. The benefits of the wonders of robotics presupposes social organisation based upon co-operation and solidarity for the common good, i.e. socialism. If we don’t achieve that then the possibility is truly enslavement by machines,  potentially a lot worse.

 Socialists teach their fellow workers that unemployment, growing insecurity, lowered living standards and all the other afflictions of labour are not passing phenomena. Not even a future boom will eliminate these evils. The bigger the boom, the deeper, more widespread and devastating will be the consequent crisis. Only a clique of capitalist magnates stands in the way of abundance. To expand production and achieve full employment the workers have to wrest control of the factories and other major means of production from the hands of the employers and establish their own rule over industry and society. Production for profit must be supplanted by production according to a coordinated inter-linked plan determined by the needs of the entire people and directed by the associated producers themselves. This is the socialist remedy for capitalist chaos and misery.

Marx never envisage a ‘revolutionary’ process designed by some experts who thought up a new set of relations and to be brought into being by a clever bit of social engineering.  Instead of forcing people to live another way, the aim is to allow them to live as they truly are. Socialism is merely removing the obstacles to a way of life in which ‘humanness’, which already exists, would be allowed to develop. Every bit of Marx’s work is based upon his conception of communist society as ‘an association of free human beings, working with communal means of production, and self-consciously expending their many individual labour powers as a single social labour power’. Individuals will freely, collectively and consciously construct their social relationships. Their productive activity, instead of conflicting with social relations which isolate them from each other, will be clearly seen to be for each other. Needs will become human needs, without the distortion which the market and exploitation necessarily bring about.

Marx in his Note on James Mill in 1844 encapsulates his argument
1. People consciously assert their individuality when they produce for each other as human individuals.
2. In this act, and in the social nature of the objects they produce, they make manifest their human character.
3. As individuals, they establish and reaffirm their social nature and their freely created social relations through the satisfaction of other people’s human need.
4. In each directly communal act of production, they realise the character of everybody involved, as social individuals.

Elsewhere he writes:
“The theft of alien labour time, which is the basis of present wealth, appears to be a miserable foundation, compared to this newly developed one, the foundation prepared by large-scale industry itself ... Production based upon exchange value collapses, and the immediate production process itself is stripped of the form of indigence and antagonism. Free development of individualities ... in general the reduction of the necessary labour of society to a minimum, to which corresponds the artistic, scientific, etc. development of individuals, made possible by the time set free and the means produced for all of them.” [Grundrisse]

“Freedom in this sphere can consist only in this, that socialised man, the associated producers, govern the human metabolism with nature in a rational way, bringing it under their collective control, instead of being dominated by it as a blind power; and accomplishing it with the least expenditure of energy and in conditions worthy and appropriate for their human nature.” [Volume 3 of Capital]

How dare some so-called revolutionary activists dismiss Marxism as dated and irrelevant.  Socialism is not a dogma but a task. It anticipates a world whose social character is open, and transparent. Relationships like this have become possible because of the growth of modern industry. But socialism implies alterations in people, in their consciousness and self-consciousness.  Revolution is not a matter of switching governments or even a change of state form. Nor is only getting rid of one ruling class and replacing it with another. Nor is it redefining capitalism by altering the legal form of property. Socialism is not a change of political regime, which leaves intact the obstacles to humanness. Revolution is all about  people changing – people, themselves, consciously and deliberately altering their ways of living and their ways of thinking.

 Those who talk about the Party making the Revolution miss the point. Marx was convinced that ‘the proletariat constituting itself as a party’. The idea that socialists would seize power and exercise a ‘dictatorship’ over society belonged not to Marx but Blanqui and later Lenin. In 1874, Engels criticized the Blanquist idea of revolution in these terms:
"From Blanqui's conception that every revolution is a surprise attack by a small revolutionary minority, there follows of itself the necessity for a dictatorship after the success of the venture. This would be, for sure, a dictatorship not of the entire revolutionary class, the proletariat, but of a small number, who have made the surprise attack and who are themselves previously organized under the dictatorship of one or several individuals"
 The phrase ‘dictatorship of the proletariat’ meant it was the working class en masse which would be the ‘dictator’, not some self-appointed vanguard. When discussing the Paris Commune Marx favoured the Communard notion of decentralised government and he never referred to the Commune as a state, but as a form of government which had tried to take over some of the functions of the state.
Marx never used the term ‘workers’ state’ and in reply to Bakunin’s jibe ‘There are about 40 million Germans. Does this mean that all 40 million will be members of the government?” Marx answers ‘Certainly! For the system starts with the self-government of the communities. ... When class rule has disappeared, there will be no state in the present political sense.’

Non-socialists can call themselves socialists for only so long, before their actions are found out and people discover what things really are. The “revolutionary party” is based on the idea that the working class needs a new group of leaders who vanquish the bourgeoisie for the workers and construct a new government.The working class is not yet considered fit to reorganize and regulate production. As the working class is not deemed capable of revolution, is  the revolutionary vanguard, the party, which makes the revolution for it.

These ‘well-meaning’  people , the Leninists and Trotskyists cannot realise that the failure of their parties is due to the fundamental conflict between the self-emancipation of the working class through its own power and the pacifying of the revolution through a new sympathetic ruling clique. They think they are the revolutionary vanguard because they see the masses indifferent and inactive. But the people are inactive only because they cannot yet comprehend the course of the struggle and the unity of class interests. Once conditions force them into action they will tackle the task of self-organization.

Friedrich Engels, explained:
"When the February Revolution broke out (in France in 18481, we all of us, as far as our conceptions of the conditions and the course of revolutionary movements were concerned, were under the spell of previous historical experience in particular that of the French Revolution of 1789. What all revolutions up to then (the bourgeois revolutions) had in common was that they were minority revolutions. Even where the majority took part, it did so-whether wittingly or not, only in the service of a minority; but because of this, or simply because of the passive, unresisting attitude of the majority, this minority acquired the appearance of being the representative of the whole people."

 Engels in 1853 guessing that on the next outbreak of revolution "our Party will one fine morning be forced to assume power" to carry out the bourgeois revolution. Then, "driven by the proletarian populace, bound by our own printed declarations... we shall be constrined to undertake communist experiments ... the untimeliness of which we know better than anyone else. In doing so we lose our heads-only physically speaking, let us hope."

Marx (and Engels).already by this time seem to have rejected this vanguardist model of revolution. They argued for open democracy, instead of conspiratorial secrecy and hierarchy, within the communist organizations they worked with; for democracy structured by mass meetings and recallability of delegates, as the basis for "proletarian dictatorship"; and, above all, for the conception that communism could not be imposed. by the will of political thinkers and activists but could only be created by a vast mass movement in response to actual social conditions.

Thus the General Rules which Marx drew up in 1864 for the International Working Men's Association, began with Flora Tristan's dictum, "That the emancipation of the working classes must be conquered by the working class themselves." The International was intended to be the opposite of a sect, in both theory and practice. It proclaimed as its business, in Marx's words, "to combine and generalize the spontaneous movements of the working classes, but not to dictate or impose any doctrinaire system whatever."And, regarding organization, Marx argued against centralism, on the grounds that a centralist structure, -though appropriate to sectarian movements, "goes against the nature of trade unions," struggle organizations of workers. Typical of his attitude is his remark in a letter of 1868 that especially in Germany, "where the worker's life is regulated from childhood on by bureaucracy and he himself believes in the authoritarian bodies appointed over him, he must be taught above all else to walk by himself." In the same spirit, Marx refused the presidency of the International in 1866, and soon afterwards convinced its General Council to replace the post with that of a chairman to be elected at every weekly meeting.

 We should note the project of an "Enquete Ouvriere, " a questionnaire which Marx published in the Parisian Revue Socialiste in 1880, and had reprinted and distributed to workers' groups, socialist and democratic circles, "and to anyone else who asked for it" in France. The text has the form of 101 questions about working conditions, wages, hours, effects of the trade cycle, and also about workers' defense organizations, strikes and other forms of struggle, and their results. Though this might be described as the first sociological survey, its preface urges workers to reply, not to meet the data needs of sociologists or economists, but because only workers can describe "with full knowledge the evils which they endure" just as "they, and not any providential saviors, can energetically administer the remedies for the social ills from which they suffer." Strategy and tactics, to use the terms of more recent leftwing theory, can only be created by workers who know their concrete conditions, not by "leaders."
Intellectuals and academics can, however, play a role in the collection and transmission of information; thus, the results of the Enquete were to be analysed in a series of articles for the Revue, and; eventually,. a book.  He prefaced the French serial edition of the first volume of Capital with an expression of pleasure, because "in this form the book will be more accessible to the working class-a consideration which to me outweighs everything else."  The function of theory was to help the movement as a whole clarify its problems and possibilities; it did not, in Marx's view, place the theorist in a dominating (or "hegemonic," as the currently fashionable euphemism has it) position vis-a-vis the movement, but was rather what he had to contribute to a collective effort.

Thursday, January 30, 2014

Motoring In Style

At a time when many workers may be thinking of trading in their old banger of a car for a less clapped out model it is worth reflecting on this news item. 'A classic Ferrari has become the most expensive car ever sold in Britain after it was bought for more than £24 million.  The Ferrari Testa Rossa, a 1957 model and the second prototype ever built, was sold by Derbyshire dealer Tom Hartley Jounior who has described it as "the   greatest car in the world," to an anonymous buyer.' (Daily Telegraph, 30 January) We are pretty sure that the anonymous buyer won't be a member of the working class. RD