beyond props for capital

by Allan Armstrong

Neo-liberalism and neo-Keynesianism – two options for capitalism

In the face of the deepening economic crisis enveloping the US and world economy, Alan Greenspan, former Chair of the US Federal Reserve and prime architect of Republican neo-liberalism was summonsed to a Congressional hearing on October 23^rd 2008.  Asked to account for the failures of the ‘free market’ he shamefacedly admitted, “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”

Greenspan’s embarrassed admission highlighted the fact that unregulated ‘free market’ capitalism does not bring continued economic growth and prosperity in its wake.  For every upturn, there is a downturn.  Therefore, even before the final demise of the ailing Bush Presidency, his Republican administration, and the following Democrat President Obama, have been forced to adopt a programme of massive government bail-outs of failed companies, first banks, followed by key industries, such as Chrysler.

the positions of the workers’ communist party of bosnia and herzegovina

Introduction by Chris Kane

The revolutionary communist movement in the former Yugoslavia has produced some of the most pioneering Marxists: Anton Cilliga, the critic of Stalinist state-capitalism, and the dissident Marxist humanists of the Praxis group in the League of Communists of Yugoslavia who produced figures such as Gajo Petrovic and Mihailo Markovic.  They developed an emancipatory school of communism closely identified with workers self-management, de-alienation and the importance of Marx’s early humanist writings.   Many of these ideas have been lost to West European communism and the insular British left: and with the wars in Yugoslavia the tradition appeared defeated.  But in Bosnia communists are reviving: the internationalist Workers’ Communist Party was founded in 2000.  These comrades have drawn a number of lessons from the experience of state-socialism, which is of particular relevance to our own situation in the UK today.  The Bosnian communists are clear that:

“Nationalization of the means of production cannot bring freedom for the working class. State-owned enterprises are under the control of the state, in other words, under control of the ruling party. Exploitation remains. Only socialization of the means of production can produce real changes in the position of the working class. Social ownership is connected with socialist self-management (government).”  They take a clear stand against Parliamentarianism, stating that:  “The political system of socialism will be based on self-government at all levels of social organization. We do not accept a system of parliamentary democracy because it is based on partocracy – rule of the powerful parties and their leaders.” We republish below the basic goals of the Workers’ Communist Party of Bosnia and Herzegovina.

fictitious capital and credit schemes

This talk given by Michael Egoavil at the Left Forum 2009 panel “Marx’s ‘Capital’ and the Economic Crisis” argues against the demand for state ownership of banks. Michael can be reached at michaelegoavil@gmail.com.

Today I’m going to be discussing Marx’s theory of fictitious capital and its relation to real capital accumulation. Along the way I’m going to focus on Marx’s seldom-read analysis of a French bank known as the Credit Mobilier, in which this theory played a fundamental role. I’ll conclude with some thoughts on how this relates to socialist politics today.

In the third volume of Capital, Marx discusses what he calls “fictitious capital” – what we know as “securities.” Essentially these are titles to streams of income, which are treated as commodities and bought and sold on financial markets. There are significant differences between types of securities. Some represent corporate debts, as with bonds, some represent consumer debts, as with mortgage backed securities, and others represent capital investments, as with shares of stock. But the common aspect of all these different securities is that they all give their owners a right to a stream of income, hopefully leaving them with more money than they started off with. The security owner therefore looks upon his security as capital.

the commune’s pamphlets: reprints now available

More copies of our pamphlet series, many of which had sold out, are now available. The text of each of  the seven pamphlets is online (see the list of subjects below), but you can also order paper copies – £1 +50p postage per copy.

Write to uncaptiveminds@gmail.com to place your order. We take payment by cheque (addressed to ‘The Commune’, at The Commune, 2nd Floor, 145-157 St. John Street, London EC1V 4PY) or by transfer to Co-op account S/C 089299, A/C 65317440.

kherson occupation: a requiem for nationalisation

A key feature of working class resistance to the recession has been a welcome revival of workers occupations In the USA, Ireland, Scotland, England and France we have seen workers occupy their workplaces to prevent closures and job cuts. One of the first and most militant occupations has been in Ukraine in the city of Kherson. Just as in the UK, the demand for nationalisation has been raised by sections of the labour movement in Ukraine. Unsurprisingly in a country which is living with the legacy of totalitarian state-socialism, where for decades the state was the universal capitalist of the whole economy, this slogan has caused some controversy. An article which has sparked debate on this question was published by comrades of the Union of Revolutionary Socialists, and The Commune is pleased to publish a translation this analysis by these Ukrainian and Russian Marxists.

Chris Kane

notes from the visteon rally – enfield

By Joe Thorne

At 2pm last Tuesday, 565 workers at three sites of Visteon, a car component manufacturer tied to Ford, were given six minutes notice of redundancy.  They did not get their last week’s pay, though it turned out that the Friday before around four or five hundred quid had been deposited in each of their accounts in place of redundancy pay.  The same night, Belfast workers occupied their factory demanding jobs or proper compensation.  And the next morning,1st April, appropriately just before midday, workers at Enfield standing around outside, waiting to collect their things, decided to seize the moment and take over their site too. A side door was either found open or broken down, and the occupation begun.

texts for 13th april reading group

The next of The Commune’s London reading group series on ‘communism from below’ is to take place on Monday 13th April. The subject of the discussion, taking place from 6:30pm at the Old Red Lion, near Angel tube, is “workers’ self-government vs. state socialism”.

We will be looking at the questions
– To what extent is it possible to use the existing state’s structures to force ‘socialist’ reforms?
– Should we refuse to make any demands on bourgeois governments?
– What arguments could be made for and against the slogan “nationalisation under workers’ control”?
– Does William Paul’s “industrial executive committee” reflect our idea of working-class power?
– How can self-managed workplaces relate to the needs of society as a whole?
– Does the idea of a “workers’ party” imply an elite counterposed to grassroots activism and workplace democracy, and does it really allow a broader programme of social revolution?

The suggested reading material is:

– William Paul – The State: Its Origins and Function, Chapter 11
– Marx – Critique of the Gotha Programme
– Hal Draper – The Two Souls of Socialism

All are welcome to come and take part in the discussion. Email uncaptiveminds@gmail.com for more info.

formula 1 millionaires seek state bailout

by David Broder

The Honda Formula 1 team may be set to receive a bailout from Lord Mandelson’s £2.3 billion fund for the car industry in a further example of state intervention to shore up the super-rich.

The team is currently owned by Honda, the world’s sixth-largest car manufacturer. Although the marque’s sales have suffered much less from the recession than its rival Toyota, in November it announced plans to sell off its Formula 1 team, which finished 9th out of 10  in the 2008 constructors’ championship on a budget of £180 million.  A 63% fall in Honda’s quarterly profits has also prompted the shutting-down of its Swindon road car factory.

Honda claim that closing the team entirely would cost it more than keeping it going, but wants to wash its hands of the operation. Therefore any state bailout would essentially amount to using taxpayers’ money to save an unprofitable part of Honda’s business which it wants to junk.

marx and engels on the state and society

by Ernie Haberkern

“The “New Question” posed by the experience of the Labor government is not, then, whether socialism can be established by parliamentary means or only by extra-parliamentary means. It is this: Can the working class reach socialism only by its own efforts, by its direct class rule over the economic and political life of the country, or can socialism be attained without workers’ control and simply by an expropriation of the bourgeoisie carried out, one way or another, under the control and direction of a more or less benevolent workers’ bureaucracy? The spread of Stalinism has raised the same question in one way; the Labourite government in another way. If it is not the most vital question of our time, it is certainly one of the most vital. Not a few Marxists have abandoned the basic convictions of the founders and teachers of scientific socialism by replying, in effect, in the affirmative: Yes, the road to socialism lies or may lie through the domination of society by a workers’ bureaucracy or a bureaucracy that arose out of the labor movement. They have concluded that the Stalinist revolution is the socialist revolution, that Stalinist society is progressive, that the Titoist state is socialist, and the like. As for ourselves, we remain unreconstructed in our belief that the emancipation of the working class, that is, socialism, is the task of the working class itself and no one else. The experience of the Labor government, especially when considered, as it must be, in the light of the social and historical significance of the rise of Stalinism, has not modified our belief in the slightest degree and we see no grounds in the realities of British society to warrant such a modification.”

Max Shachtman, The New International, January/February 1951

This article, in which the author repudiated his long-held position that nationalization by itself was a progressive step towards socialism, argues that nationalization of private capital by the state bureaucracy, even when carried out by a party based on the working class is not a step forward. The article even goes so far as to argue that the Attlee government, if it continued on this path, was heading towards a social system that would differ little, if at all, from Stalinism.

Shachtman was rediscovering Marx and Engels’ views on the subject of statification.

report on lrc conference

by Chris Ford

Over two-hundred people attended the conference of the Labour Representation Committee held under the title of ‘The Future of the Left’. On the one hand the LRC conference took some very positive steps and on the other we had a full display of many of the negative traits of the traditional left.

issue 1 of the commune published

We are pleased to announce the publication of the first issue of our newspaper The Commune. You can order a printed copy (£1 per copy + postage and packing) by emailing uncaptiveminds@gmail.com or writing to The Commune, 2nd Floor, 145-157 St John Street, London EC1V 4PY.

click here for pdf, or see individual articles below

nationalisation is no answer for our class! – Editorial part one

the dual crisis of labour and capital – Editorial part two

civil service dispute on ice? – by Steve Ryan, Wrexham PCS

report of pro-choice demo 20th october

are we really fighting in unison? – by James Caspell, Lambeth UNISON

the crisis of capitalism – interview with Andrew Kliman, author of Reclaiming Marx’s Capital

henry paulson’s bureaucratic collectivist fantasy – by Ernie Haberkern

william morris: against ‘state socialism’ – by Terry Liddle

for institutions of workplace democracy – by Gregor Gall, Professor of Industrial Relations, University of Hertfordshire

the class struggle in iran – by David Broder

platform of the international communists

hugo chávez the maoist and nicolas sarkozy the socialist

by David Broder

Venezuelan president Hugo Chávez, who during his ten years in power has introduced extensive state-capitalist measures based on the country’s oil wealth, has embarrassed his international fan club in recent weeks with a series of gaffes when on diplomatic business.

Chávez has long entertained close relations with such “anti-imperialists” as Colonel Gaddafi, Mahmoud Ahmedinejad and Belarussian dictator Aleksandr Lukashenko, but his recent speeches have offered a particularly useful insight into the real content of his “21st century socialism” and “Bolivarian revolution”. Once again it is clear that “21st century socialism” is nothing but classic “20th century style state ownership and bureaucracy”.

First came his trip to China in late September, organised in order to sign an arms deal. Upon touching down in the emerging superpower he commented that China “has shown the world that one doesn’t have to attack anyone to become a great power… we are offering tribute in the land of Mao. I am a Maoist.” This was embarrassing not only for the grey Stalinist bureaucrats accompanying him, who have largely eschewed Mao’s ideas in favour of a free-market ideology, but also those such as Socialist Appeal who have for the last two years gushed over an off-hand comment made by Chávez that he is a Trotskyist.

And two weeks ago, after meeting French President Nicolas Sarkozy, Chávez welcomed Sarkozy’s bank nationalisations in a TV address: “Sarkozy, you are coming closer to socialism, welcome to the club: your ideas are interesting… we must create a new system. With differences here and there, but at least it must be something new. We of course call it socialism, you call it nationalism, but hey, we can discuss that.” Chávez, who has used the police to break up steel workers’ picket lines, clearly does not see the working class as the agent of revolutionary change, but rather, himself.

Was Chávez joking? If his own project were something other than nationalism and state ownership, you might have thought so.

motion to lrc conference on workers’ self-management

Our organisation is proposing the following motion to the Labour Representation Committee conference:

After years of being told ‘There is No Alternative’, the crisis of global capital has shown that the entire system can be brought into question.  Furthermore the widespread state intervention to preserve finance capital has brought into question previously conceived ideas of nationalisation and “public ownership” traditionally accepted in the labour movement.

As part of developing a vision of a viable alternative to capitalism our movement needs to develop new ideas of social ownership and abandon statist conceptions which have proven to be an historical failure.

new pamphlet – “the crisis: an interview with andrew kliman”

For our latest pamphlet, on the subject of the current economic crisis, we interviewed Andrew Kliman (author of Reclaiming Marx’s Capital) on the crisis of global capitalism, prospects and alternatives. The text is reproduced below. Email uncaptiveminds@gmail.com if you would like to order a hard copy of the pamphlet (£1).

Q. Descriptions of today’s crisis have included headlines proclaiming the “collapse” of the system.  How would you characterise the current crisis?

A:  There hasn’t been a collapse yet.  If there were one, you’d know it.  But there’s indeed a danger of collapse-of the financial system, and thus of the capitalist system as a whole. That danger was most acute and severe in mid-to-late September, prior to the U.S. Treasury’s $700 billion-plus bailout measures, but it persists even now [November 2].

The crisis is a crisis of “confidence.”  “Confidence” here isn’t some general optimism about the future of capitalism, but lenders’ confidence that the monies owed them will in fact be repaid. When that kind of confidence is shaken, as it has been, lending dries up. But production and trade depend crucially on lending–not only loans to build factories, malls, and offices, and to buy additional equipment–but also loans just to get from today to tomorrow, to pay workers, buy supplies and inventories, etc.  So any “credit crunch” has an effect on the so-called real economy.  If confidence were to be severely shaken, such that there’s outright panic in the credit markets-we were evidently rather close to that point in September, and the threat of such panic persists-there would be almost no new lending to speak of.  The “real” economy would grind to a halt in fairly short order.  That’s a collapse.