Monday, February 02, 2009

The Question of Charity

KOREA COLUMN 43

The Question of Charity

About nine months ago it was suggested to me that I should write one of these columns on where socialists stand on the question of giving to charity. I never got round to it because there always seemed something more important or more pressing to write about. Right now in Britain, however, the question of one particular charity has suddenly become the hottest political topic of the day, and every socialist, every revolutionary – indeed more or less everyone engaged in politics – has had to take a position on it.

How this came about I shall deal with in a while, but the episode has convinced me that the issue of charity is worth visiting after all.

Posed in general terms the first point socialists have to make about charity is that, in most cases, it is manifestly unable to solve the very issues it is addressing. Take, for example, Oxfam, which aims to respond to world hunger and poverty. Oxfam is one the biggest, most successful and well known charities in Britain , if not the world. In the year 2007-8 it raised £299.7 million and spent £214.2 million. In itself this is quite a large sum but when it comes to solving world poverty it is no more than a drop in the ocean.

It is not that the problem of hunger is insoluble, or even very difficult to solve. It is well known that there is more than enough food in the world to provide a decent diet for everyone. It is just that when it is a matter of dealing with ANY major WORLD problem nothing is serious till we are talking about hundreds of billions not millions.

Children in Need, one of Britain’s best known charity events which receives a whole evening of BBC television coverage, raises about £20 million. The government bail-out for ONE bank, the Royal Bank of Scotland, was £20 billion (1000 times as much as Children in Need). According to Barack Obama the bonuses paid to Wall St bankers at the end of 2008 came to $20 billion. World arms spending in 2008 was $1.47 trillion with $711 billion contributed by the US, and so on.

Of course the advocates of charity have an obvious answer to this. They can simply say we know we are not solving the problem but we are doing something – every little helps. Well yes…but we wouldn’t think much of a fire service that responded to blazing buildings with water pistols ( at least they’d be doing something) or tried to tackle a forest fire with watering cans and garden hoses. And the truth is that many charitable efforts, however well intentioned, are closer to the water pistol than to proper fire engine.

And this is by no means the end of the story for there is more wrong with charity than it just not being enough. We also have to consider its political and ideological role Charity can easily be used by our rulers either to suggest they are doing something about a problem when really they are not, or even when they are actively engaged in making the problem worse. For example, the British government, which has been craven in its support for the state of Israel in general and the assault on Gaza in particular, has pledged a pathetic £20 million (20 million again) in humanitarian aid.

Charitable and ‘voluntary’ efforts can be, and often are, used by governments to excuse their failure to meet their obligations in terms of education, health and welfare services. Every time I see a hospital launching an appeal for funds for some new piece of life saving equipment I find myself asking why the military don’t need to do this. How I wonder would the ‘Trident Appeal’ fare, with only £20 or so billion (billion again) needed to renew the nuclear submarine missile system?

Another problem with many charites is that they become businesses in their own right, involving substantial administrative overheads and supporting lucrative careers for many directors, fund raisers and marketing managers. Even where there is nothing strictly illegal or underhand going on, as there sometimes is, there something obnoxious about people on $100,000 salaries appealing for the poor and needy – America’s largest charity United Way is run by Brian Gallagher, salary $973.000 p.a. This problem becomes especially acute with NGOs operating in poor countries where the NGO agents receive incomes many hundreds of times greater than those of the local people they are supposed to be helping.

Then there are the fabulously wealthy celebrity charity merchants like Paul McCartney and Bono who stage concerts and suchlike urging ordinary people to give to good causes. For example Bono’s charity RED claims on its website to have raised $100 million for Aids in Africa in two years, but the truth is he could pay that out of his own pocket and still have more money than he could spend in a lifetime.

still the ideological problems inherent in its nature that it focuses on symptoms not causes of social and humanitarian issues and it tends to depict its beneficiaries as helpless passive victims, not people capable of resistance or self liberation. For Marxists and revolutionary socialists the conviction that the fundamental problems of poverty and human degradation can only be and will only be solved by the collective struggle of working people themselves is fundamental.

But despite the validity of all these criticisms this is not the end of the story, especially when we approach the question of charity not just in theory but as a matter of concrete day to day politics. For all its faults there is in the motivation that leads ordinary people to donate to charity an impulse socialists need to relate to and encourage and certainly not to dismiss or disparage. For example if someone comes round my canteen at work with a collecting tin for the homeless my inclination would be to make a small donation but combine it with a question about why we have homeless people in a rich country like Britain.

Then, of course, there are many individuals or groups who are not able to help themselves or to wage a collective struggle and many situations where people need emergency help. In such circumstances there is no Chinese Wall between charity or aid and solidarity, which socialists enthusiastically support; moreover the question of aid, or lack of it from governments, can become an issue of political solidarity.

Thus when the tsunami struck South East Asia in December 2004 the generous response from ordinary people {in Britain] embarrassed the British government into increasing its original miserly aid donation. Socialists needed to be part of that. Then with the Hurricane Katrina disaster in New Orleans in 2005, the appalling lack of help for the city’s black and poor, became a key event undermining the political credibility of George Bush.

Which brings me to the circumstance I referred to at the beginning of this column. It is hard to think of anyone in the world at this moment more in need of emergency aid than the besieged people of Gaza. Yet the BBC, obviously under direct Zionist influence, has refused to broadcast the (standard) Disaster Emergency Committee appeal for Gaza. This blatant partiality, coming on the back of sustained pro- Israel, pro-Zionist reporting, has made aid to Gaza a matter of international solidarity of crucial political importance.

Two general points in conclusion: first socialists have and need general theory and principles but the application of those principles to immediate practice does not always follow in a simple straight line and for Marxists truth is ultimately concrete. Second in the course of the overall struggle revolutionaries have to relate both to working people’s anger and their humanity and provide a political focus for both.

John Molyneux

1 February 2009

Sunday, January 25, 2009

A Better World is Possible

A BETTER WORLD IS POSSIBLE

Capitalism isn’t working, so what is the alternative? This question must have at least crossed the mind of millions, perhaps hundreds of millions, round the world as they watched the credit crunch, financial meltdown and recession unfold over the past few months. The problem, of course, will have been that for those same millions most of their conditioning, from politicians, media, education, and a good deal of their experience, will have been to answer that there is no alternative, at any rate no alternative to capitalism as such, no alternative that goes beyond a modified version of capitalism as represented by the ‘new’ Keynesian Gordon Brown or, perhaps, Barack Obama.

In fact a definite and clearly articulated alternative – socialism - has existed for at least 160 years (it is 160 years since Marx and Engels wrote The Communist Manifesto). Socialism is very straightforward and, compared to capitalism, extremely simple. It means social (or collective) ownership and control of the main means of production (land, factories, businesses, banks etc) and production for human need not profit, and with this the abolition of class divisions.

The trouble for many people is not that this is very complicated or hard to understand but that it just sounds too good to be true. We all, or many of us, get so ground down and demoralised by living under capitalism that we become convinced that nothing as evidently sane and good as socialism could possibly ever really happen – life just isn’t like that, so there must be a catch somewhere.

In this article I intend to argue that socialism is NOT too good to be true, that it is a perfectly reasonable and practical way of organising society – and that the various objections to it which spring into our minds because they have been planted there by the dominant capitalist ideology are illusory or even downright silly. I say silly because when people are deeply prejudiced they often think arguments are obvious, because they are based on their prejudice, which are in fact absurd and which disappear like a puff of smoke the moment the matter is tested in practice. For example in Bristol in 1963 there was a dispute about whether black workers should be allowed to drive buses and some of the racists argued that black people lacked the speedy reactions needed for bus driving [ like Pele and Mohammed Ali had slow reactions!]. Another example: before Angela Rippon started reading the TV news in 1974 it was actually maintained by some dinosaur sexists that the public wouldn’t take the news seriously if it was read by a woman. Obviously such arguments evaporate as soon as the colour or gender bar is breeched.

Let us begin by looking at something absolutely basic: feeding people. The world is currently richer and more productive than it has ever been in history, yet, according to the United Nations, 800 million people live in hunger and fear of starvation, and about 25,000 people, mostly children, actually die of hunger or hunger related causes every day. Is this because of a shortage of food. Not a bit of it

Enough wheat, rice and other grains are produced to provide every human being with 3,500 calories a day. That doesn't even count many other commonly eaten foods - vegetables, beans, nuts, root crops, fruits, grass-fed meats, and fish. Enough food is available to provide at least 4.3 pounds of food per person a day worldwide: two and half pounds of grain, beans and nuts, about a pound of fruits and vegetables, and nearly another pound of meat, milk and eggs-enough to make most people fat!. Even most "hungry countries" have enough food for all their people right now. Many are net exporters of food and other agricultural products. [ Food First : The Institute for Food and Development Policy.]

Perhaps the problem the problem is transport – maybe the hungry are in remote parts of the world where the food can’t reach them. On the contrary many of them are in huge cities where planes, and sometimes tourists, fly everyday – places like Calcutta, Rio de Janeiro or Dhaka. Even when they are in rural refugee camps the TV cameras and crews seem to get there when they want to, but not the food. Besides we know we have the means of getting of getting planes with bombs to the all the remote places of the earth.

Perhaps people just don’t care if thousands of children starve. Actually this is not so. The UN is full of people who ‘care’. There are numerous international charities like Oxfam and Save the Children, who care a lot and depend on donations from people who care, and the poor countries themselves are full of NGOs doing their best, yet the hunger and the malnutrition continue. Why? There is one answer you can read on any website dealing with this issue and which all the agencies and charities from the UN down would agree on: poverty. People go hungry because they are poor and can’t afford to buy the food available.

But actually this is only part of the story. What would we think of parents with four children and a larder full of food, who allowed one of the children to starve on the grounds that the child could not afford to pay for the food? In fact poverty only leads to people going hungry for a reason that you don’t find on the charity websites, namely that in capitalist society food like almost everything else is a commodity, a good produced for sale on the market in order to make a profit.

Socialism would deal with this seemingly intractable problem of hunger in the easiest and most obvious way, the way any ordinary family deals with it, by NOT treating food as a commodity and simply distributing enough of it to people to ensure that everyone had enough for a healthy diet.

Just think what this would mean – no more starving children, no more distended bellies and vacant staring eyes, no need for kids to work twelve hours a day in sweatshops or for old people to die in the gutter or beggars to crawl in the dirt; so much human suffering ended. Even if it achieved nothing else this ALONE would be enough to justify socialism a thousand times over. But, of course, it’s too good to be true, there must be a catch somewhere!

This is where those ‘standard objections’ pop into our heads just as they have been programmed to do. If food was distributed free there would be no incentive, wouldn’t people all stop work? Actually, no. Very few people reading this article will ever have literally gone hungry, very few people in Britain do, but we haven’t all stopped work. The truth is the opposite; if you are starving you soon lose the ability to work at all and people with a decent diet work much more productively than the malnourished.

As it happens there are two major ‘catches’ to distributing food to the hungry: the first is that the big corporations would not be able to make their billions in profits out of it; the second is that if it would work for food it would work for other things too. Housing for example.

Shelter is one of the basic requirements of human life. Yet even in the richest cities in the richest country in the world, the US, there are homeless people sleeping on the streets, just as there are in London. In the mega cities of the world’s poorer countries, with their favellas and shanty towns, the problem is horrendous.

Socialist planning would solve this problem very simply. Take Britain as a starting point. Strictly speaking there is no housing shortage in Britain, only a shortage of affordable housing, and dealing with the immediate problem of homelessness would just involve requisitioning the empty properties, the mansions and second and third homes of the rich etc. But a permanent solution is easy to envisage. Use the census to estimate the housing needs of the population (something like this happens all ready) and establish a public house building programme, employing thousands of bricklayers, carpenters and other building workers, to build slightly more houses than are needed. Then make the provision of a modest but decent residence to every family or individual citizen a basic right, in the same way that every child has a right to a place in school or the NHS provides free health care for all. In other words, stop treating houses as a commodity and distribute them on the basis of need.

The same principles could be applied to transport. At present transport is a complete mess. Technologically, of course, it is possible to transport people round the world more efficiently than ever before in history, but under capitalism the organisation of transport is both inefficient and destructive. The main form of transport is the private car and car ownership and use has become so widespread that the roads are clogged up (to the point where in London travel by horse and carriage in the 19th century was as quick) and the pollution generated is a major, contributor to climate change.

The socialist solution is obvious: set up a comprehensive integrated system of free public transport. This would involve a huge expansion of the railways for freight and intercity travel, since they are clearly faster, more cost efficient and more environmentally friendly than cars and lorries. Within towns it could be a combination of trams, buses, subways, monorails, minibuses, and bicycles. The precise details don’t matter here. The point is that provided the public transport was sufficiently extensive and effective the private car, with its attendant problems of parking, congestion, accidents, petrol and pollution, could virtually be eliminated in urban areas (and rural areas too if the public network was extensive enough).

So at this point we have free food, housing and transport along with, I assume, free health and education. Inevitably the question arises ‘How would all this be paid for?’ Given the unbelievable sums raised to bail out the banks in recent months this question loses much of its charge, but in any case there are two answers to it depending on how far we look into the matter. The first answer is simply that it would be paid for out of taxation, as the NHS and schools and, of course, the armed services and their wars are at present. Clearly if food, housing and transport were all free people would have more money to pay tax with.

However looking a bit further we have to remember that money does not itself create wealth, or goods or services, only the application of labour to nature does that. Money is just a means of exchanging goods and services that have become commodities. The less goods and services are treated as commodities, and socialism would systematically reduce commodity production till it disappeared, the less role money will have. So the real question becomes would it be possible for society to allocate sufficient labour to grow and distribute enough food to feed everyone adequately, to build enough houses for everyone and to make and operate enough trains, trams, buses etc. to move people around. And we know the answer to this is yes because we more or less do it already.

But how would all these collectively owned industries be run? Wouldn’t it involve vast armies of state bureaucrats, at best soulless jobsworths and at worst monstrous tyrants?

Given the history of state ownership and planning in the 20th century – Stalin’s Russia and Kim Il-Sung’s North Korea at one end and British Rail and the NHS at the other – this is a natural and important question. And the answer to it goes to the very heart of what we mean by the socialist alternative. Socialist planning will not be socialist and will not work practically unless it is democratic and actively involves the mass of ordinary people. Again the years of conditioning ensure that here a little conservative ideologue pops up in our head and says, ‘That’ll never happen. Ordinary people, working class people, can’t run things, they are not clever enough, they haven’t had enough education or management training etc. etc. Besides there will always be someone who gets to the top and takes advantage.’

But to see the capabilities of working people just look at any workplace you know. If the manager is off sick or away on holiday does it grind to halt? Of course not because the workers, between them, already know how the place works. A few years ago in my workplace, a University, the boss [the Vice-Chancellor] was suspended and then sacked for corruption and it was awhile before he was replaced. The uni ran perfectly normally. But if the caretakers [apart from the cleaners, the lowest paid workers in the institution] stop working the whole place shuts down or rather doesn’t even open in the morning!

As for some people getting to the top and abusing their position this will be a problem, not because it is human nature but because socialism has to be built by people brought up under capitalism, not by saints and angels. The answer is to develop mechanisms for controlling and removing such individuals, and since the Paris Commune of 1871, the first real experiment in workers power before it was crushed by the army, we have known what those mechanisms are: make all public officials subject to election and recall and pay them a workers wage. And since the Russian Revolution we also know that these mechanisms work best when they are based on elections in workplaces and other institutions where collective debate can take place.

This was the great contribution of the soviet or workers’ council, which was first created, spontaneously, by the workers of St. Petersburg in the Russian Revolution of !905 and then went on in October 1917 and subsequent struggles, to show that it was the main institution through which working people can establish political power over society as a whole. And that is the starting point for everything we have talked about so far.

Feeding the hungry, housing the homeless, ending inequality and class divisions, democratic planning of the economy, stopping climate change, establishing international peace and unity and all the changes that socialism would bring have as their precondition the revolutionary overthrow of capitalism by the working class, first in one country and then internationally. Workers’ councils are key to this. They begin, within capitalism, as organisers of the workers struggle against the bosses, growing out of mass strikes and factory occupations. They develop into an alternative centre of power, rivalling the old capitalist state, and then in the decisive step of the revolution they replace the capitalist and establish workers’ power – a power which rests on the objective position of the working class in the modern world economy but which also liberates and mobilises the creative energies and talents of tens of millions. Once that happens a better world, a far better world, will move from being a possibility to being a reality .

John Molyneux

8 December 2008

A BETTER WORLD IS POSSIBLE

Capitalism isn’t working, so what is the alternative? This question must have at least crossed the mind of millions, perhaps hundreds of millions, round the world as they watched the credit crunch, financial meltdown and recession unfold over the past few months. The problem, of course, will have been that for those same millions most of their conditioning, from politicians, media, education, and a good deal of their experience, will have been to answer that there is no alternative, at any rate no alternative to capitalism as such, no alternative that goes beyond a modified version of capitalism as represented by the ‘new’ Keynesian Gordon Brown or, perhaps, Barack Obama.

In fact a definite and clearly articulated alternative – socialism - has existed for at least 160 years (it is 160 years since Marx and Engels wrote The Communist Manifesto). Socialism is very straightforward and, compared to capitalism, extremely simple. It means social (or collective) ownership and control of the main means of production (land, factories, businesses, banks etc) and production for human need not profit, and with this the abolition of class divisions.

The trouble for many people is not that this is very complicated or hard to understand but that it just sounds too good to be true. We all, or many of us, get so ground down and demoralised by living under capitalism that we become convinced that nothing as evidently sane and good as socialism could possibly ever really happen – life just isn’t like that, so there must be a catch somewhere.

In this article I intend to argue that socialism is NOT too good to be true, that it is a perfectly reasonable and practical way of organising society – and that the various objections to it which spring into our minds because they have been planted there by the dominant capitalist ideology are illusory or even downright silly. I say silly because when people are deeply prejudiced they often think arguments are obvious, because they are based on their prejudice, which are in fact absurd and which disappear like a puff of smoke the moment the matter is tested in practice. For example in Bristol in 1963 there was a dispute about whether black workers should be allowed to drive buses and some of the racists argued that black people lacked the speedy reactions needed for bus driving [ like Pele and Mohammed Ali had slow reactions!]. Another example: before Angela Rippon started reading the TV news in 1974 it was actually maintained by some dinosaur sexists that the public wouldn’t take the news seriously if it was read by a woman. Obviously such arguments evaporate as soon as the colour or gender bar is breeched.

Let us begin by looking at something absolutely basic: feeding people. The world is currently richer and more productive than it has ever been in history, yet, according to the United Nations, 800 million people live in hunger and fear of starvation, and about 25,000 people, mostly children, actually die of hunger or hunger related causes every day. Is this because of a shortage of food. Not a bit of it

Enough wheat, rice and other grains are produced to provide every human being with 3,500 calories a day. That doesn't even count many other commonly eaten foods - vegetables, beans, nuts, root crops, fruits, grass-fed meats, and fish. Enough food is available to provide at least 4.3 pounds of food per person a day worldwide: two and half pounds of grain, beans and nuts, about a pound of fruits and vegetables, and nearly another pound of meat, milk and eggs-enough to make most people fat!. Even most "hungry countries" have enough food for all their people right now. Many are net exporters of food and other agricultural products. [ Food First : The Institute for Food and Development Policy.]

Perhaps the problem the problem is transport – maybe the hungry are in remote parts of the world where the food can’t reach them. On the contrary many of them are in huge cities where planes, and sometimes tourists, fly everyday – places like Calcutta, Rio de Janeiro or Dhaka. Even when they are in rural refugee camps the TV cameras and crews seem to get there when they want to, but not the food. Besides we know we have the means of getting of getting planes with bombs to the all the remote places of the earth.

Perhaps people just don’t care if thousands of children starve. Actually this is not so. The UN is full of people who ‘care’. There are numerous international charities like Oxfam and Save the Children, who care a lot and depend on donations from people who care, and the poor countries themselves are full of NGOs doing their best, yet the hunger and the malnutrition continue. Why? There is one answer you can read on any website dealing with this issue and which all the agencies and charities from the UN down would agree on: poverty. People go hungry because they are poor and can’t afford to buy the food available.

But actually this is only part of the story. What would we think of parents with four children and a larder full of food, who allowed one of the children to starve on the grounds that the child could not afford to pay for the food? In fact poverty only leads to people going hungry for a reason that you don’t find on the charity websites, namely that in capitalist society food like almost everything else is a commodity, a good produced for sale on the market in order to make a profit.

Socialism would deal with this seemingly intractable problem of hunger in the easiest and most obvious way, the way any ordinary family deals with it, by NOT treating food as a commodity and simply distributing enough of it to people to ensure that everyone had enough for a healthy diet.

Just think what this would mean – no more starving children, no more distended bellies and vacant staring eyes, no need for kids to work twelve hours a day in sweatshops or for old people to die in the gutter or beggars to crawl in the dirt; so much human suffering ended. Even if it achieved nothing else this ALONE would be enough to justify socialism a thousand times over. But, of course, it’s too good to be true, there must be a catch somewhere!

This is where those ‘standard objections’ pop into our heads just as they have been programmed to do. If food was distributed free there would be no incentive, wouldn’t people all stop work? Actually, no. Very few people reading this article will ever have literally gone hungry, very few people in Britain do, but we haven’t all stopped work. The truth is the opposite; if you are starving you soon lose the ability to work at all and people with a decent diet work much more productively than the malnourished.

As it happens there are two major ‘catches’ to distributing food to the hungry: the first is that the big corporations would not be able to make their billions in profits out of it; the second is that if it would work for food it would work for other things too. Housing for example.

Shelter is one of the basic requirements of human life. Yet even in the richest cities in the richest country in the world, the US, there are homeless people sleeping on the streets, just as there are in London. In the mega cities of the world’s poorer countries, with their favellas and shanty towns, the problem is horrendous.

Socialist planning would solve this problem very simply. Take Britain as a starting point. Strictly speaking there is no housing shortage in Britain, only a shortage of affordable housing, and dealing with the immediate problem of homelessness would just involve requisitioning the empty properties, the mansions and second and third homes of the rich etc. But a permanent solution is easy to envisage. Use the census to estimate the housing needs of the population (something like this happens all ready) and establish a public house building programme, employing thousands of bricklayers, carpenters and other building workers, to build slightly more houses than are needed. Then make the provision of a modest but decent residence to every family or individual citizen a basic right, in the same way that every child has a right to a place in school or the NHS provides free health care for all. In other words, stop treating houses as a commodity and distribute them on the basis of need.

The same principles could be applied to transport. At present transport is a complete mess. Technologically, of course, it is possible to transport people round the world more efficiently than ever before in history, but under capitalism the organisation of transport is both inefficient and destructive. The main form of transport is the private car and car ownership and use has become so widespread that the roads are clogged up (to the point where in London travel by horse and carriage in the 19th century was as quick) and the pollution generated is a major, contributor to climate change.

The socialist solution is obvious: set up a comprehensive integrated system of free public transport. This would involve a huge expansion of the railways for freight and intercity travel, since they are clearly faster, more cost efficient and more environmentally friendly than cars and lorries. Within towns it could be a combination of trams, buses, subways, monorails, minibuses, and bicycles. The precise details don’t matter here. The point is that provided the public transport was sufficiently extensive and effective the private car, with its attendant problems of parking, congestion, accidents, petrol and pollution, could virtually be eliminated in urban areas (and rural areas too if the public network was extensive enough).

So at this point we have free food, housing and transport along with, I assume, free health and education. Inevitably the question arises ‘How would all this be paid for?’ Given the unbelievable sums raised to bail out the banks in recent months this question loses much of its charge, but in any case there are two answers to it depending on how far we look into the matter. The first answer is simply that it would be paid for out of taxation, as the NHS and schools and, of course, the armed services and their wars are at present. Clearly if food, housing and transport were all free people would have more money to pay tax with.

However looking a bit further we have to remember that money does not itself create wealth, or goods or services, only the application of labour to nature does that. Money is just a means of exchanging goods and services that have become commodities. The less goods and services are treated as commodities, and socialism would systematically reduce commodity production till it disappeared, the less role money will have. So the real question becomes would it be possible for society to allocate sufficient labour to grow and distribute enough food to feed everyone adequately, to build enough houses for everyone and to make and operate enough trains, trams, buses etc. to move people around. And we know the answer to this is yes because we more or less do it already.

But how would all these collectively owned industries be run? Wouldn’t it involve vast armies of state bureaucrats, at best soulless jobsworths and at worst monstrous tyrants?

Given the history of state ownership and planning in the 20th century – Stalin’s Russia and Kim Il-Sung’s North Korea at one end and British Rail and the NHS at the other – this is a natural and important question. And the answer to it goes to the very heart of what we mean by the socialist alternative. Socialist planning will not be socialist and will not work practically unless it is democratic and actively involves the mass of ordinary people. Again the years of conditioning ensure that here a little conservative ideologue pops up in our head and says, ‘That’ll never happen. Ordinary people, working class people, can’t run things, they are not clever enough, they haven’t had enough education or management training etc. etc. Besides there will always be someone who gets to the top and takes advantage.’

But to see the capabilities of working people just look at any workplace you know. If the manager is off sick or away on holiday does it grind to halt? Of course not because the workers, between them, already know how the place works. A few years ago in my workplace, a University, the boss [the Vice-Chancellor] was suspended and then sacked for corruption and it was awhile before he was replaced. The uni ran perfectly normally. But if the caretakers [apart from the cleaners, the lowest paid workers in the institution] stop working the whole place shuts down or rather doesn’t even open in the morning!

As for some people getting to the top and abusing their position this will be a problem, not because it is human nature but because socialism has to be built by people brought up under capitalism, not by saints and angels. The answer is to develop mechanisms for controlling and removing such individuals, and since the Paris Commune of 1871, the first real experiment in workers power before it was crushed by the army, we have known what those mechanisms are: make all public officials subject to election and recall and pay them a workers wage. And since the Russian Revolution we also know that these mechanisms work best when they are based on elections in workplaces and other institutions where collective debate can take place.

This was the great contribution of the soviet or workers’ council, which was first created, spontaneously, by the workers of St. Petersburg in the Russian Revolution of !905 and then went on in October 1917 and subsequent struggles, to show that it was the main institution through which working people can establish political power over society as a whole. And that is the starting point for everything we have talked about so far.

Feeding the hungry, housing the homeless, ending inequality and class divisions, democratic planning of the economy, stopping climate change, establishing international peace and unity and all the changes that socialism would bring have as their precondition the revolutionary overthrow of capitalism by the working class, first in one country and then internationally. Workers’ councils are key to this. They begin, within capitalism, as organisers of the workers struggle against the bosses, growing out of mass strikes and factory occupations. They develop into an alternative centre of power, rivalling the old capitalist state, and then in the decisive step of the revolution they replace the capitalist and establish workers’ power – a power which rests on the objective position of the working class in the modern world economy but which also liberates and mobilises the creative energies and talents of tens of millions. Once that happens a better world, a far better world, will move from being a possibility to being a reality .

John Molyneux

8 December 2008

Saturday, December 13, 2008

The Working Class and Social Change

KOREA COLUMN 42

The Working Class and Social Change

According to Marx the working class or proletariat is ‘the only really revolutionary class’ [The Communist Manifesto] and ‘The emancipation of the working class must be conquered by the working class itself’ [The Rules of the International Working Men’s Association] and between capitalism and socialism there will be a transition which ‘can only be the dictatorship of the proletariat’ [The Critique of the Gotha Programme].

This conception of the revolutionary role of the working class was described by Lenin as ‘historically the main thing in Marxism’ but it is the idea many people find hardest to accept. On the one hand there are intellectuals like Herbert Marcuse and T.W. Adorno of the Frankfurt School who identified with much of Marx’s critique of capitalism but concluded that the working class was hopelessly bought off and indoctrinated by the system. On the other hand there are ordinary people, workers themselves, who simply say, ‘It will never happen’.

This is not surprising. The notion that working class people are obviously not capable of liberating themselves and running society is an absolutely central pillar of bourgeois ideology – the capitalist view of the world that pervades the media, the education system and our whole society. It is an idea that is particularly appealing to middle class intellectuals and is reinforced by their conditions of life. It also reflects much of the life experience of working class people who, from early childhood on, are treated as subordinates and have their confidence sapped.

Nevertheless, Lenin was right; the self emancipation of the working class is the main thing, the key idea in Marxism. Without it all the economic and historical theory becomes at best a passive commentary on the world rather than a means of changing it, or, at worst, as in Stalinism and Maoism, an ideology masking the interests of a different class [typically the state capitalist bureaucracy}.So let us look at Marx’s reasons for identifying the working class as the principal agent of social change and examine whether they still apply today.


We should begin by noting that Marx’s view was NOT based on the existing consciousness of the working class. Marx was well aware that the dominant ideas in society are those of the ruling class and that most of the time most of us are subordinate to them. For the mass of workers it would not be socialist consciousness that produced revolutionary struggle, but revolutionary struggle that produced socialist consciousness. Nor was it based on workers’ suffering and oppression. Of course, workers do suffer grievously under capitalism and Marxists fight against this, but not more so than the peasants, serfs and slaves whose poverty and oppression stretch back to the dawn of civilisation and who history shows were not able to abolish class divisions or create socialism .Rather it was based on their potential power deriving from their economic position in capitalist society that made the working class the revolutionary class.


As Marx showed, workers in capitalism are not just badly paid but exploited. Wealth, Marx called it surplus value, is extracted from their labour. This surplus value is the source of all the profits of the capitalist class and of the bulk of wealth in capitalism as a whole. The bourgeoisie therefore needs the working class (not as individuals, of course, but as a class). The working class is the special product of capitalism and at the same time it is the producer of capitalism.

Exploitation also puts the working class into an antagonistic relationship to capitalism; it creates an ongoing conflict of interest between labour and capital over wages, hours, conditions, and ultimately every other issue in society and this conflict turns into industrial and political struggle which is ‘now hidden, now open’ as Marx put it. Most of the time victory in these struggles goes to the bourgeoisie, who have at their disposal both far more wealth and state power (the law, police, judiciary, army etc) but no matter how many times they defeat the working class they cannot escape their dependency on its labour. As capitalism grows so the working class grows too, until it becomes the large majority of society.

In addition to increasing its numbers capitalism also concentrates the working class in large workplaces and great cities. This gives the modern working class far greater potential political power than the scattered peasantry or the old artisans employed in small workshops.

This is not only a negative power AGAINST capitalism but also a positive force FOR socialism. The working class is, by virtue of its economic and social position, a collectivist class. It can only resist the employers and improve its conditions of labour by collective action and it can only take possession of modern industry collectively i.e. by turning it into social property. When peasants seized the land from the feudal lords they could divide it up into small farms; this cannot be done with modern industry. Moreover, political power in all modern societies is based in big cities where the key means of production are also located. The urban industrial character of the proletariat enables it to exercise political power [the dictatorship of the proletariat] while also remaining the principal producing class. In this way it fundamentally undermines the division between rulers and ruled, thus opening the way to a fully classless socialist society.

Such, in essence, was the case made by Marx more than 150 years ago. Since then there have been many actual instances of the working class playing a revolutionary role, such as the Paris Commune of 1871, the Russian Revolutions of 1905 and 1917, the German Revolution of 1919-24, the Spanish Revolution of 1936, the Hungarian Revolution of 1956 and the Portuguese Revolution of 1974. However it is clear that there is now no shortage of commentators, pundits and academics eager to pronounce Marx out of date.

As an aside I have to note that when I first became a Marxist 40 years ago the academics and pundits all said Marx was out of date then. But what I’ve never been able to find is a moment when most of these thought he was in date. Nevertheless we should look at the arguments.

They say that the working class has lost its revolutionary character because it is no longer poverty stricken as it was in Marx’s day. It is true of course that living standards have risen substantially for many, though by no means all, of the international working class, including in Europe and South Korea, but what is key is not the absolute level of pay but the conflict of interests involved in securing that pay. Relatively well paid workers can be forced into collective struggle in order to defend their high wages and that struggle can lead to revolutionary action and consciousness.

They also say that with the demise of the old industries such as mining, steel and the docks, the working class in the advanced capitalist countries is fast disappearing and certainly no longer the majority. But this argument is based on a false and superficial view of the working class as defined by certain traditional forms of work In reality what counts is not the nature of the work, manual or white collar, but the relations of production. Employees of call centres, supermarkets, hospitals and schools are just as much forced to live by the sale of their labour power as miners and car workers, are also exploited and also possess great collective power. For example call centre workers and supermarket workers who went on strike could have a devastating affect on their bosses’ profits.

Finally the notion that the working class is disappearing is the reverse of what is happening in the world as a whole. In reality the second half of the 20th century saw a huge spread of the working class in the great cities of Asia, Africa and Latin America such as Seoul, Kuala Lumpur, Cairo, Johannesburg, Mexico City and Sao Paulo now even further augmented by the dramatic economic growth of China (and to a lesser extent, India). The global working class is today infinitely larger, more internationally integrated and potentially more powerful than it was in either Marx or Lenin’s day. Now more than ever it is the force than can change the world.

John Molyneux

1 December 2008

Tuesday, November 04, 2008

The Liberty of Appearing- the photographs of Yasser Alwan

The Liberty of Appearing –

the photographs of Yasser Alwan


This essay was written for 'The Liberty of Appearing - photographs of Egyptian working people', the catalogue for Yasser Alwan's travelling exhibition of photographs which opens at FOYLES BOOKSHOP, Charing Cross Rd, London on Friday 7 November at 7.30pm (all welcome) and runs till Thursday 20 November, and then at THE ELDON GALLERY, Portsmouth University, Winston Churchill Ave., Portsmouth on Thursday 27 November 5pm - 7pm running till Fri 5 December.

This beautiful catalogue, containing over fifty of Yasser Alwan's wonderful photographs, was designed and published by Richard Peacock, and is available, for £10 + postage from http://www.peacockimprint.co.uk/

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Yasser Alwan’s photographs express a profound humanitarian egalitarianism that is rare in the long history of art as a whole and almost unique in the relatively short history of photography. ‘Photographs of Egyptian working people’- already this bare factual description raises a multitude of issues and announces an artistic and political stance.

We live in a culture – and by this I mean the total culture of global capitalism and the total historical culture of western and non-western civilisations - in which working people (peasants, agricultural labourers, slaves, artisans, manual and non-manual proletarians) are massively underrepresented. For the last 5000 years working people have been the immense majority of humanity, but in the world’s poetry, drama, novels, film, TV, visual art etc – music and dance may be a partial exception – their presence is marginal.

From Homer to Hollywood working people are the extras, the walk on parts. For every painting of peasant life by Brueghel, for every etching of a beggar by Rembrandt, there are a hundred, maybe a thousand portraits of emperors, kings, queens, aristocrats and bourgeois. This is not prejudice but a simple reflection of reality. In class divided societies, i.e. every society after the transition from foraging to agriculture, the upper classes are few but important and the working classes, the common people, are many but unimportant. Against this background any artist who, like Yasser Alwan, turns this hierarchy upside down and places working people centre stage, is making a political statement.

Add the designation ‘Egyptian’ to the class category and the magnitude of the under representation increases many fold. This is something that applies not just to Egypt, though Egypt has its particularities in this narrative, but to all ‘non-western’ societies and cultures. The Eurocentric view of history, developed alongside racism, as an ideological accompaniment to material conquest, credits Mesopotamia (Iraq) and Egypt with the birth of civilisation and then moves swiftly to Ancient Greece and Rome, from which point the non-European world simply disappears except, exclusively, as an object of European discovery and military engagement. The result is a profound ignorance. The ONLY figures from Egyptian history between Cleopatra and Nasser, known, at all, to the Western public are Salah ad -Din (Saladin) from the Crusades and, perhaps to a few, Mohammed Ali. Ask a British university class (I have tried this often) to name three non- Western artists, three non- western scientists, three poets, three philosophers, and you are setting a test which the large majority are destined to fail – the odd ‘Frida Kahlo’ and ‘Confucius’ and the rest is blank. Results would not be much better among the faculty.

Of course it is a question of the nature of the representation as much as its quantity. Racial, gender, orientalist and colonial stereotyping have all been substantially explored in academic and cultural circles in recent decades, but class has received less attention. However, we should remember that while Shakespeare gives us Othello, Shylock, and Cleopatra (each, incidentally, an achievement of genius) his ‘common people’ are rendered in prose and offer only comic interludes, albeit pointed ones. And what John Berger wrote about Dutch genre painting (painting of ‘low life’) of the 17th century applies to many subsequent representations of working people.

The purpose of the ‘genre’ picture was to prove – either positively or negatively – that virtue in this world was rewarded by social and financial success. Thus, those who could afford to buy these pictures … had their own virtue confirmed. Such pictures were particularly popular with the newly arrived bourgeoisie.

John Berger, Ways of Seeing, Penguin 1988, p.103

Even artists and writers avowedly sympathetic to working people have often produced representations of them that were highly problematic. Thus George Orwell, who broke with his middle class public school background to the extent of living (for a time) with the poor and down and out, and fighting with the POUM in the Spanish Civil War, and who wrote in 1984 that ‘If there is hope…it lies in the proles’, nevertheless depicted those proles as narrow, animalistic creatures more or less incapable of consciousness and higher feelings, while in Animal Farm they were represented by the carthorse Boxer, who was congenitally stupid. Even Brecht never produced a play foregrounding working class characters. (I say this not to criticise Brecht – possibly the greatest playwright of the century- but to show the difficulty of the task.)

This, then, is the general context, in which Yasser Alwan’s photographs of Egyptuian working people demand ‘the liberty of appearing’. But, of course, Alwan’s work also exists in the specific context of the history of photography, which to some extent constitutes a special case. On the one hand, the relative cheapness and availability of its means of production (the camera) and the ease of mechanical reproduction of its output, gives photography a democratic character absent from its adjacent art forms, painting and film .As a result there is a substantial tradition of the sympathetic photography of working people running from early photographers such as John Thompson, through the Americans, Lewis B.Hine, Walker Evans and Dorothea Lange, the German August Sander, Brassai and Cartier Bresson in France, to the contemporary Brazilian Sebastiao Salgado, and in which Alwan consciously stands.

On the other hand, there is in photography –due to its mechanical and instant character – a potential for domination, coldness and cruelty not present, or not present to the same degree, in painting or drawing. This is manifested in its language – the photographer ‘captures’,’ shoots’ and ‘snaps’ her subject; in its role in social control (mug shots, ID, passports etc) and as handmaiden of imperialism and colonialism (lucidly analysed and illustrated by Alwan himself in his superb study of the photographs of Lehnert and Landrock, Imagining Egypt, Cairo, 2007) and in the paparazzi phenomenon. In the world of art photography it has given rise to the elements of the freak show, objectification, mockery and exploitation, found in varying degrees in the work of Diane Arbus, Joel-Peter Witkin, Robert Mapplethorpe and Martin Parr- a tendency to which Alwan is consciously opposed.

One way of grasping the stature of Alwan’s work is by means of comparison with some of his photographic forebears.

Lewis Hine photographed child labour in the US at the beginning of the last century to expose it and promote social reform. He photographed workers building the Empire State, suspended in the sky above Manhattan, to demonstrate the extraordinary skill and courage of working people in their daily lives. Alwan is also opposed to child labour, supports social reform and is aware of workers’ amazing feats in their work, but this is not the driving force of his photography.

The driving force of Brassai’s photography is the evocation of an atmosphere – the atmosphere of nighttime Paris in the thirties, of Montmartre and Montparnasse. There are some photos of working men at Les Halles, but they are subordinate to the prostitutes, carnival performers, lovers, and petty gangsters of bohemia, and the individuals in the pictures are subordinate to the overall ambience.

Cartier Bresson is certainly interested in ordinary people but what governs his photography is capturing the ‘decisive moment’ when those ordinary people can be configured in a brilliant composition. August Sander, who has been a big influence on Alwan, set out to document the German people of the twenties by ‘type’ according to a systematic classification, rather as in Engels’ classic prescription for realism,’the truthful reproduction of typical characters under typical circumstances’. At first sight it might appear that Alwan is trying to do something similar for Egypt but any attempt at system is subverted by his interest in the particular subject, as a person, and this gives his work a human warmth lacking in Sander.

In fact there are echoes of all these photographers in Alwan but his work is distinguished from all of theirs by its greater engagement with and representation of the personalities of his subjects.

Take, for example, the photographs of the woman trader at Umm Reda, Waily and the Incense Man at Dar al-Salaam. Both are obviously poor – everyone at that level of society in Egypt is poor – but neither is photographed to represent poverty; nor are they there for their typicality. Rather it is their individuality, their respective specific spirit, that has drawn Alwan, and that Alwan has communicated in his superb photographs.

Alwan is interested in individual people. It sounds like a cliché, and a bourgeois cliché at that, but the moment you insert class into the statement – individual working people – it becomes artistically and politically highly charged. An intellectual who, who, in life, is genuinely interested, as an equal, in specific working class people is a rarity, and one who is interested in them artistically is even more rare. The notion that working people are simple, that they have simple ideas and emotions, compared to the complexity of the middle classes, is a prejudice with five millennia of class society behind it. Breaking with it as Alwan has done, not just in theory but organically as an artist has to do if the break is to be realised in their work, speaks of an art and a politics far more radical than that of social reform, the New Deal, or the Popular Front.

Two political points need clarification here. The first concerns the suffering of working people. In the world today, working people suffer relentlessly, unforgivably and on an unimaginable scale, but those for whom, in the words of Marx, ‘the proletariat exists only as the most suffering class’, miss the main point which is the capacity of working people to resist, to end their suffering, and to emancipate themselves and humanity.

The second concerns the relation between the individual and the collective. It often assumed that an emphasis on the individual is bourgeois and right wing, while stressing collective interests and collective struggle is proletarian and left wing. There is an important element of truth in this in that the working class must struggle collectively to defend its interests and change society, but it can easily be overstated and becomes damaging if it is understood as opposition to the individual, individual development and freedom. This was not Marx’s view. For Marx there was always a dialectical interaction between the individual and the social.

The communists do not put egoism against self-sacrifice or self-sacrifice against egoism…they are very well aware that egoism just as much as self-sacrifice is in definite circumstances a necessary form of the self assertion of individuals. Hence the communists by no means want …to do away with the “private individual” for the sake of the “general” self-sacrificing man. (The German Ideology, London 1991. p105)

What is to be avoided above all is the re-establishing of “Society” as an abstraction vis-à-vis the individual. The individual is the social being. (Economic and Philosophic Manuscripts of 1844, Moscow 1967, p.98)

In place of the old bourgeois society… we shall have an association in which the free development of each is the condition of the free development of all. (The Communist Manifesto.)

How do these theoretical points translate into the language of photography and how do they relate to Alwan’s photographs in particular? The capacity of workers for resistance and self emancipation can, of course, be shown in photographs of strikes, picket lines, demonstrations etc. Such photographs are absolutely necessary, just as leaflets, banners and posters are necessary, but they are also artistically limited. (Artistically, the best demo photos I have seen are by Tina Modotti, but they tend to sacrifice the demonstrators and their aims to the achievement of a brilliant almost abstract composition). Another possibility is to produce idealised images of well toned workers gazing determinedly into the future. This was the Stalinist way and it was politically and artistically false. Yasser Alwan’s way is to show that working people, despite poverty and toil, remain complex and dignified human beings, damaged but not utterly defeated, with their own take on life and the world.

Consider for example the photos taken in the Tanneries. These show men and boys working in hellish conditions, that probably condemn them to early graves, and this is an essential part of their story but not the whole story. The key photographs in the series – the boy looking out from beneath the hides on his head, and the seated young man squarely facing the camera with a cigarette in his fingers – say more than this. In the eyes of the boy, almost welling up with tears, we see BOTH pain at the almost unendurable weight (physical and metaphorical) pressing on his shoulders AND determination to carry on, with just a glint of hope for the future. A similar contradiction beats in the breast of the seated young man as he bites his lip and looks quizzically at the camera, trying to make sense of his oppressive world.

Then there are the pictures of the limestone quarry diggers at Helwan, south of Cairo – I have been to Helwan, it is an aptly named place. The long shot gives us the overall scene and the sense of the searing heat of the desert. The close ups show us the specifics of their work, bent double, wielding their axes with pinpoint accuracy, releasing precisely cut blocks of great weight to be shouldered and shifted by hand. Then, suddenly, there is the picture of the single digger with the white turban, poised with his pickaxe ready to strike. Of course it is a work picture, he is about to smite the limestone not the international bourgeoisie… and yet…! It is an astonishing photograph.

It might seem that the photographs taken at the Gezira races don’t fit this argument. Not so. Throughout the world the poor gamble – even though gambling increases their poverty. The rich gamble too but in a different way and for different reasons, to show off, to display their wealth or their masculinity, to inject risk into their risk free lives. The poor, especially the older poor, gamble for the right to dream .For the price of a lottery ticket they buy the right to a secret fantasy life for a day or a week. For the price of a few betting slips they purchase hours of intense engagement with life, hours when they can pit their wits against the system and ‘win’, get something for nothing, get paid without working! Of course they don’t really win, but sometimes they do. And where else in poor people’s lives do they ever win, where else can they take on the man and not be instantly crushed? The gambler is not a man resisting politically, but he is a man resisting in his own way, refusing to give in completely and he is a person not just a type. He is the white haired man in photo no? about to put a cigarette to his lips (what a great photograph this is) who, at least outwardly, has kept his dignity, even a little of his authority and certainly his manners. He is the wiry old man with a strange peaked cap and a sheet of paper in his hands (a list of runners, a form guide?) What has he been in life? Where did the hat come from and what does it signify? The hopes of the man in the white jellabiya who screws up his eyes to gaze at the results board (photo no?) may be reduced to the outcome of the 3.30 but they are hopes none the less.

Everyone who appears in an Alwan photograph is shown in a social context that constrains and shapes them, but does not totally define them. Each is a person and personality in his or her own right, making their lives albeit in circumstances not of their own choosing. This is what I mean by the ‘profound humanitarian egalitarianism’ of this work.

‘The Liberty of Appearing’, the title of this exhibition, is a double reference. It is taken from a sentence in Thomas Paine’s Rights of Man ‘But such is the irresistible nature of truth that all it asks, all it wants, is the liberty of appearing.’ But this quotation also appears in The Family of Man, the book of Edward Steichen’s famous photography exhibition from 1955. Both references are appropriate for these photographs but the phrase also points in a third direction.

At the beginning of this essay I spoke of the cultural invisibility of working people, especially working people in the poorer parts of the world. In recent years however the working people of Egypt have been making themselves steadily more visible. Paradoxically, working people make themselves most visible when, together, they stop working i.e. when they go on strike. This, Egyptian workers have been doing with increasing frequency. Earlier this year food riots caused by rising prices were followed by a wave of strikes emanating from the Mahalla textile factory, the largest workplace in the region. In political circles the name Mahalla has become symbolic of working class struggle internationally.

The objective political importance of Egyptian workers is also becoming ever clearer. This is the largest and potentially most powerful working class in the whole region between Europe and India, that is in the central battleground for control of energy supplies and the front line between imperialism and anti-imperialism. It holds the key to the defeat of the brutal Mubarak regime and hence to the overthrow of the other pro- US dictatorships in the area, which in turn would open the door to the defeat of Zionist Israel, in a way that is beyond the power of the Palestinians acting alone.

There is a photographic/artistic reference point here as well as a political one. The photographer whose work might seem to precede, and even preempt Alwan’s is Sebastiao Salgado. but there is a fundamental difference. Salgado’s photographs of the Serra Palado gold mine in Brazil are brilliant but his study of workers as a whole, Workers: An Archaeology of the Industrial Age, is premised on the mistaken (though widely held) notion that the working class is in the process of disappearing. This affects the photography. Salgado, deliberately I think, gives his pictures a grainy elegiac quality as he commemorates this dying breed and so engages in a kind of romantic mythmaking. There is none of this in Alwan whose working people are insistently present in the here and now and have no need of idealisation.

And in fact the world working class is here, is present, in Korea and China, Indonesia and India, the Middle East and South America, in larger numbers than ever before in history. Concentrated in great cities like Sao Paolo, Mumbai, Canton, Mexico City, it possesses awesome potential power. Cairo is one of the greatest of these cities and the Egyptian working class is a key contingent in this international army.

Yasser Alwan’s photographs do not give us the demos, strikes and uprisings, but they give us the people in all their human contradictions. It is highly appropriate that this exhibition should appear at a time when these people may be about to take ‘the liberty of appearing’ on the centre of the world stage. There is a chance, only a chance but a real chance nonetheless, that the young brick and shingle maker who shoulders a bucket the size of his torso and whose face is obscured by his own arm (photo no ?) and the boy with folded arms who is on the front cover of this book will grow up to make history.

John Molyneux

27 August 2008

3,264 words

Some thoughts on the Crisis

KOREA COLUMN 41

Some Thoughts on the Crisis

This month it is very hard for a Marxist to write about anything other than the astonishing crisis that has swept through world capitalism in the last six weeks or so, especially as this crisis is now beginning to have a serious impact in South Korea. However knowing that Candlelight Resistance (along with every other newspaper) will already have been analysing this crisis I will offer only some Marxist observations on the situation rather than an overall account.

Watching the crisis unfold I have wanted both to laugh and to cry. To laugh at the contradictions and contortions the western ruling classes and their political and ideological representatives have fallen into as they have been forced to abandon all the economic doctrines they have been proclaiming with such certainty over the last twenty years or so. To cry at the misery that, without a shadow of a doubt, will be inflicted on the working people and the poor of the world as we are expected to pay up the bill for their crisis.

There has been plenty to laugh about. For example George Bush’s right wing neo- conservative neo-liberal government being forced into the biggest nationalisation in history, with the takeover of mortgage firms, Freddie Mac and Fannie Mae, followed by a series of other nationalisations. But isn’t that … socialism? Well actually it is state capitalism not socialism but Bush and co. would have denounced it as socialism a few months ago. In Britain it was particularly funny to see the British government complain about the Irish government guaranteeing deposits in Irish banks on one day (unfair competition you know, distorting the market i.e. people would take their money out of British banks and put it in Irish ones), only to complain equally bitterly the next day about the failure of the Icelandic government to guarantee British deposits when the Icelandic banks went bust.

Then there was Alan Greenspan, former head of the US Federal Reserve Bank and the Pope of the free market, admitting there was a ‘flaw’ in his ideology. In truth the whole spectacle of Lehman Brothers, AIG, Merrill Lynch, HBOS, Wachovia, - these giants of capitalism, masters of the universe with centuries of accumulation and exploitation behind them - falling like nine pins and going cap in hand to the state has made schadenfreude impossible to resist [if this wont translate put ‘ has afforded a degree of pleasure’]

But, of course, we know that their embarrassment is going to be followed by real suffering for ordinary people. Wage cuts and job cuts, unemployment and poverty, house repossessions and homelessness – these are the inevitable consequences of recession. Cuts in welfare benefits and social services, in health and education – these, before long, will be the responses of capitalist governments. In the poorest countries there will be famine and starvation, in the developing countries their development will falter and some will collapse, and even in the richest, most advanced countries the working class will feel the pain.

Torn between laughter and tears I am reminded of the motto of the great 17th century philosopher, Spinoza, ‘Neither laugh nor cry, but understand!’. And as a contribution to understanding this crisis I want to make three points. First it is not some natural disaster or weather calamity. Greenspan described it as ‘a once in a century tsunami’, and the media is full of phrases such as ‘economic typhoon’ or ‘hurricane’. This is nonsense: the crisis is neither natural nor an act of god but entirely man made; it was, in broad outlines, predictable and predicted for example by Marxist economists such as Chris Harman and Robert Brenner; and, pace Greenspan, these crises recur a lot more frequently than ‘once in a century’.

Second, it is not basically a crisis of confidence. The capitalist media and its commentators always try to suggest that these crises are fundamentally just a question of investors, speculators and even manufacturers’ confidence. Sometimes they try to get away with the old claim that ‘the underlying real economy is sound’. Now obviously confidence does play a role: if you are worried that a bank is going to go bust you will be tempted to take your money out of it, thus making it more likely to go bust. If you anticipate a low rate of return on your investment in a company you are likely to invest elsewhere, and if you anticipate a general recession you will probably put your money in gold, and this in turn contributes to the depth and length of the recession.

BUT this ‘confidence’ or lack of it is not arbitrary or random. It doesn’t just float into the minds of investors from the ether. It is based on evidence and experience from the real world. For example the problems in the US sub-prime mortgage market, which initiated the credit crunch, were not just problems in people’s heads, they were real problems of people who really couldn’t keep up their mortgage repayments, and from the standpoint of the mortgage lenders the real problem of not being able to sell repossessed houses profitably in a falling house market.

One of the great achievements of Marx’s economics was to show that all wealth creation depends ultimately on the application of labour to nature, and all [exchange] value rests on the expenditure of socially necessary labour time. If prices in the elevated worlds of stock exchanges, hedge funds and currency speculation depart too far from these real material values then, sooner or later, they will spring back like overstretched elastic.

Which brings me to my third point, namely that this is not just a crisis caused by greedy bankers and financiers on Wall St etc. This is not to excuse the bankers and financiers who are undoubtedly greedy, and whose greed is an important component of the dynamic of the crisis. But let’s be clear, in their relentless pursuit of maximum profits the bankers were only following the same logic that drives Exxon and Shell, Wal-Mart and Samsung and every other capitalist company in manufacturing, retail or any other sector, i.e. the inherent logic of capitalist competition. ‘Accumulation for accumulation’s sake’ as Marx put it. The over lending by banks is only a variation on the general tendency towards overproduction in booms, long ago identified by Marx.

Moreover the roots of the present crisis lie not just in the financial sector but in the so-called ‘real’ economy. In Britain figures have just been released showing that the British economy moved into recession in the July-September quarter, the quarter BEFORE the financial meltdown. Clearly it has been problems in the ‘real’ economy that have triggered the banking crisis and brought about the loss of confidence referred to above, particularly the underlying decline, in recent, in the overall average rate of profit.

What lies behind all three of these myths- of the crisis as bad weather, as loss of confidence, and as caused by greedy bankers – is the desire of politicians, and of the media and its tame pundits to pin the blame for the collapse on relatively superficial aspects of the system and avoid any analysis which points to capitalism itself as the culprit.

And that reminds us that Karl Marx went one step further than Spinoza when, in 1845, he wrote, ‘The philosophers have interpreted the world in various ways, the point, however, is to change it!’. Changing the world, in the present circumstances, means two things: mobilising the working class to resist the job cuts, wage cuts, house repossessions, welfare cuts, tax increases and all the other attacks that will come our way, and ,at the same time, building a movement and a party which understands that the only ultimate escape from capitalist crisis lies in the overthrow of capitalism and its replacement by production for need not profit.

John Molyneux

28 October 2008