Showing posts with label power. Show all posts
Showing posts with label power. Show all posts

Wednesday, February 1, 2012

Power, Domination and the System

On the radical Left, broadly construed, there is a long history of debates concerning the relationship between the agency of dominant groups and the structure of social systems. On the one hand, talk of the 1%, for instance, calls to mind a dominant group—a ruling class—which stands over and above the majority of society. On the other hand, it is part and parcel of radical politics to condemn not just this or that dominant group, but the entire system. I suggested in a recent post that we don't have to see these two complaints as at odd with one another.

Still, numerous questions remain: Is power always exercised by one agent over another? Or is power built into the infrastructure of the system itself? Is domination, a familiar concept in the vocabulary of the Left, always a matter of one agent dominating another? Or does it make sense to speak of people being dominated by a system?

A couple of examples might illustrate the problems lurking for anyone trying to answer the questions above. Compare and contrast, for example, radical feminists who conceive of gender oppression as dyadic relation of domination between dominator (man) and dominated (woman), with post-structuralist feminists (influenced by Foucault, for example) who understand gender domination as a process in which agents are produced by a certain regime or system of power. (Note that I by no means aim to suggest that these are the only two viable positions on offer). The former—and it must be conceded that we're oversimplifying here—tend to tie domination to a certain kind of social relationship between an agent of domination and a subject of domination. The latter, however, might argue that domination is not something agents can be said to do to other agents at all; agents are dominated not by other people, but by non-agential features of social life (e.g. agents may be said to be dominated by institutions, social norms, practices, or by the system itself).

This same debate, in slightly different forms, surfaces in critical race theory as well as in the Marxist tradition. In the Marxist tradition, the debate between Miliband and Poulantzas in the pages of New Left Review during 1970s is exemplary. I've argued elsewhere that the debate between so-called "structuralists" and "instrumentalists" over the character of the State generally misses the mark; both fail to adequately theorize the complex dialectic between structure and agency, system and lifeworld.

Still, there are a lot of things going on in these debates—far more than a simple disagreement about the nature of social domination. But in this post I'd like to say something about the question of whether it makes sense to say that someone is dominated by a social system. I'd like to keep this discussion within a broadly materialist register, so I'm going to ignore approaches that reduce everything to linguistic/discursive matters. My question is this: does it make sense, within a materialist social theory, to speak of persons being dominated by a system? It clearly makes sense, in my view, to speak of some agent (or group of agents) dominating another agent (or group of agents). What's not so clear is whether it makes sense to say that someone can be dominated by some entity that is not an agent.

In most treatments of this question, players in the debate tend to talk past one another or dismiss the merits of the other's view entirely. This was to some extent evident in the famous Miliband-Poulantzas debate of the 1970s. It is evident in the contemporary literature in political theory on domination, and it surfaces quite often in exchanges between theorists sympathetic to Foucault's writings on power and those who are not. A more nuanced assessment is needed.

I stress, however, that these are not merely academic questions. The question of the relationship between dominant groups and the system we live under—capitalism—is in some ways a key question on the table in the Occupy movement. Marxists, in particular, need a nuanced way of emphasizing both that the system must be changed, on the one hand, and that it makes sense to speak of struggling against a ruling class on the other. There are also complicated questions about how various kinds of oppression tie into the ruling class model and the system of capitalism. Gaining clarity on these matters is politically important.


***

Let's begin with the example of dyadic social relationship between dominator and dominated. Let's say that the relationship is social (rather than merely personal) in the sense that it is structured by background conditions of various kinds (e.g. institutions, practices, laws, norms, social expectations, etc.) What makes a social relationship an instance of domination is that one party has a certain kind of power—a certain kind of unsavory influence or sway—over the other. That sway could be grounded in various ways. For example, it could emanate from dependence, vulnerability, coercive power, institutionalized authority, etc. But what matters is that one agent stands above the other in a problematic way, on the model of master/slave or master/servant.

Importantly, this kind of social relationship exists whether or not the master is benevolent or relatively gracious. A master who treats his subordinates relatively well is still a master. As Fredrick Douglass puts it:
"My feelings [toward slave masters] were not the result of any marked cruelty in the treatment I received; they sprung from the consideration of my being a slave at all. It was slavery—not its mere incidents—that I hated."
Paternalism—no matter how nicely administered or well intended—is still paternalism. What's problematic is a certain kind of social relationship—not, in the first instance, how well superiors treat those beneath them. Advocates of "socialism-from-above" systematically miss this point. Hence, apart from defending technocrats and administrative layers of elites who lord over dis-empowered populations of subjects, they place themselves in the same camp as philanthropic capitalists—think of Jeffrey Sachs—who propose a increased flow of aid and resources from powerful to powerless groups (while leaving the asymmetrical relations of power fully intact). To stand for socialism-from-below is to stand uncompromisingly against relations of domination as such, regardless of whether the "superiors" in question—be they bureaucrats, lords, or capitalists—are relatively benevolent or gracious. To stand for socialism-from-below means to stand firmly against social relations in which some group enjoys a certain kind of arbitrary, discretionary power over others. Socialism means empowering the masses of the population to take control of their own destiny and run society themselves.

Now, the point here isn't that the consequences of domination (e.g. poverty, deprivation, etc.) don't matter; on the contrary, the point is that the causes of those consequences—certain kinds of social relationships—are more fundamental than the consequences themselves. Merely examining a person's standard of living or level of consumption isn't good enough. Even if I have a relatively high standard of living, I am dominated if I am dependent on small, powerful class of people for employment and for the goods I need to survive.

So, even when the consequences of domination are relatively good—in the case of a benevolent tyrant—the relations of domination don't cease to be unjust. The Marxist complaint against capitalism, after all, isn't in the first instance that it distributes certain kinds of social goods unequally. That's because the essence of the Marxist complaint isn't about distribution; it's about production. We remain trapped in a liberal framework if we only think in terms of how given social goods get parceled out. Redistribution takes the existing relations of production as given and asks how we can mitigate the effects of capitalism. Marxist politics aren't fundamentally about taxation and redistribution; they are about founding society anew by transforming the structure of social production. Rather than merely examining how already-existing goods should get distributed, Marxism examines the exploitative social relations built into the basic structure of society, thereby laying bare how distributions come about in the first place.

But Marxists are concerned with more than just exploitation. Marxists have long argued that capitalism is a system built upon social relations of domination. There is a sense in which workers' lives in capitalism cannot ever be fully their own. Workers' lives—on the shop floor as much as in society writ large—are largely determined by the decisions of capitalists. Absent collective resistance from workers themselves, capitalists unilaterally make decisions about investment, the organization of the workplace, what is produced, the pace of work, wages and benefits, interest rates, levels of employment, and so on. Workers are, of course, denied the material benefits—high levels of comfort, consumption, financial security, etc.—that accrue from membership in the ruling class. But capitalists—because of their dominant position in the production process—enjoy a degree of decision-making power and control over their own lives that workers cannot never enjoy within capitalism.

In the workplace, the boss is a dictator. Without the collective power that comes from being organized in trade unions, individual workers are under the complete control of the boss while they're on the clock. They are forced to take orders, to do what they're told, to play a role in the boss's overall project, whatever that may be. When under the eye of superiors, workers are forced to work at the bosses pace. They are forced to show up when they're told to show up, and they forced to accept the wages that are handed down to them without complaint. They are to have no say in any of this. The only power the isolated individual worker has is the power to quit—and, ultimately, try to get a job working for a different capitalist. "If you don't like, you can leave... and there are plenty of others waiting to take your place."

So, the boss is clearly in a dominant position vis-a-vis the workers. The social relationship between worker and capitalist is one in which the capitalist enjoys a high degree of arbitrary, discretionary power over the worker's life. Workers are barred from participating in the governance of the workplace, where the discretionary power of capitalists reigns supreme. Their work-lives are determined by a group who neither shares their interests nor intends to share any of its power.

Of course, domination doesn't stop at the factory gates. Liberal reformers have often made this mistake and argued that because the working class has the vote it follows that the capitalists only dominate workers in the workplace. Outside the workplace, the argument goes, workers and capitalists are equals because they both enjoy equal political power.

If there were times in history when this argument could get at least get some traction—e.g. when there were a strong working-class political parties vying for majorities in government—it rings hollow today. It is obvious that the State is a class State—a capitalist State. It is not a neutral vessel that the working-class can lay hold of. The State is little more than a "a committee for managing the common affairs of the whole bourgeoisie."

So, the ruling class enjoys dominance not simply in the workplace but in society writ large. In controlling both the State, as well as the overall direction of the productive process as a whole, the ruling class dominates all other classes in society—working class and middle class alike. Of course, the threat posed by the working class to ruling class power means that the State will come down particularly hard on workers, sometimes leaving middle class groups relatively unscathed by comparison. But it remains true that the middle class is under the thumb of the ruling class and enjoys no substantial means of attenuating its power.

***

What I just sketched was the "dominant-group" model of power and domination. The focus is on certain kinds of social relationships between persons (or groups of persons). It is conceded, of course, that these relationships don't rest on thin air—they are structured by background conditions (e.g. law, norms, practices, institutions, economic organizations, etc.). But domination itself is only said to exist between agents—domination without agents is not possible.

Now, many—especially those influenced by post-structuralism but also proponents of structuralist versions of Marxism—will reject this as foolish. Some might argue that agents are nothing but the mere products of power or material processes. Others would stress the epistemic priority of functionalist explanations that derive from a theory of the system as a whole—as opposed to action-theoretic explanations that focus on the intentions and purposes of agents.

These opponents of the dominant-group model don't aim to extend or broaden the analysis. On the contrary, they seek to deny the conceptual space occupied by the dominant-group theorists entirely. For these opponents—call them eliminativists—it is fundamentally problematic to define power or domination in terms of relations between agents. Agents are just epiphenomena—what matters fundamentally is structure, systemic processes, the basic function of social institutions, and macro-level forces. It is fair, I think, to attribute this sort of view to Althusser, for example.

I think eliminativists are radically mistaken. I won't argue for that claim here (although I've criticized their views elsewhere (e.g. here), because I'd like to explore the more interesting debate between dominant-group theorists, on the one hand, and those who seek to extend and broaden our conception domination to include agent-agent domination as well as system-agent domination.

***

So, while preserving the analysis of agent-agent domination, I'd like to consider certain cases of system-agent domination. Why consider such cases? I think it would be a mistake to say that we should because we need to capture the unintentional character of certain kinds of domination. The dominant-group model, as I understand it, already captures that. Nor would it be correct to say that we need to understand system-agent domination because otherwise considerations of institutional structure fall by the wayside. The dominant-group model also captures such concerns insofar as it is a basic premise of that theory that social relations of domination are—in order to be such—structured by background conditions that include institutional structure.

The reason, in my estimation, why we need to consider system-agent cases of domination is that there are compelling examples, especially in Marxism, that go unexplained by a solely agent-agent approach.

What I have in mind, for example, is Marx's claim in capitalism people are dominated by accumulated dead labor. Humanity comes to be dominated by its own products. For example, as Alan Ryan puts it:
"Marx supposes that under capitalism, there are two sorts of oppression at work, rather than one. Capitalists oppress workers, driving them as hard as they can to extract maximum surplus value from them. But this is not because capitalists are individually brutal; they themselves are driven by their capital. The irrationality of a capitalist economy in which production is dictated by the accidents of market interaction is read by Marx as the blind tyranny of capital over its human subjects. The fact that capital is in any case only dead labor leads Marx to tremendous rhetorical flights in which he describes capital as a vampire, renewing its life-in-death by sucking the blood of living laborers...what humanity has done is create Frankenstein's monster; so far from the world submitting to human control, it has been set in motion as a blind force tyrannizing over all of us... Capital dominates all of us and turns all of us into its purposes."
The image of Frankenstein is apt. We needn't develop this fecund metaphor fully in order to see that capitalism is like a monster humanity has created which is entirely out of control. With the historical development of capitalism we get the tyranny of the bottom line, the iron cage of instrumental rationality, a tendency toward universal commodification, reified consciousness, and all the rest of it. But the paradox is this: history is made by human beings—it's not the case that it is merely something that happens to us. What we do or don't do in the here and now has historical ramifications. So, what we have is a situation in which a product of accumulated human actions—capitalism—comes to lord over and dominate the very beings whose actions and historical development brought it into existence. A system constructed by human beings through a complex dialectic of historical development comes to appear as something natural, inevitable, and immutable. The system destroys the natural environment, degrades human relationships, and shackles humanity to an end—accumulation for accumulation's sake—which it cannot really endorse and remain truly human. And we seem to have to ability to steer or control the system within the horizons of capitalism.

Even capitalists, who are a dominant group in a position to lord over and exploit the working majority, are shackled by the pressures of the system. A capitalist who refuses to re-invest today's profit in expanded production, who refuses to drive down wages and fight unionization drives is not likely to remain a capitalist for long. The coercive force of market competition locks capitalists into a situation in which their forced to sink or swim, accumulate or go bust.

But it's not as though all actions undertaken by the ruling class are wholly determined by the system. The ruling class, which is a group of consciously acting agents, makes blunders, fails to recognize their class interests, and sometimes even fail to do what the system demands of them. To say that they are in some sense dominated by a system they can neither wholly control nor fully understand is not to say that they lack agency. Nor is it to deny that they have power over others and, as occupants of a certain office in the economic structure of society, are in a position to make important decisions within a constrained set of possibilities.

The ruling class deserves the righteous scorn of the toiling majority. It is a mistake to think that the problematic structural features of the system absolve the ruling class of culpability of various kinds. In the heat of struggle against ruling class repression, to not feel this righteous anger is a political failing of a certain kind. If I'm a leftist in Chile in 1973, I resent the repressive counter-revolutionary violence instigated by the ruling class in a way that I cannot resent a natural disaster. We need to preserve the power of the dominant-group model while also allowing that domination is a relation that can obtain between agents and a system. Reductionist and eliminitivist positions distort the terrain here considerably.

***

Human beings make their own history, but not in conditions of their own choosing. As Alasdair MacIntyre once noted, phrases of this sort abound in Marx's work, and the goal of socialists has got to be to eliminate that "but", the caveat that must always accompany acknowledgements of the fact that we make our own history in the context of class society.

For that to be a goal, it has to be possible. Eliminativists foreclose it as a possibility. But in focusing on the workings of social systems as concrete, historical totalities, system-level analysis catches all sorts of processes that would go unnoticed from the perspective of the participant in social practices. We don't capture everything that matters if we only talk in terms of the conscious actions of dominant groups. But the system we criticize isn't natural, although some functionalist social theorists (e.g. Luhmann) would disagree. It is a human construction. As such, it is in our power to consciously change it.

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Wednesday, November 2, 2011

Is the Problem the 1% or the System?

The occupy movement has brought the issue of class power to the forefront in an unprecedented way. The entire framing of the movement's politics --the 99% against the 1%-- speaks against a political and economic system dominated by a wealthy ruling class. If the media was all-consumed by the ideologically-tendentious issue of deficit reduction only a few months ago, that focus has been shattered (or at least destabilized) by the rapid proliferation of occupy movements from Portland, OR to Orlando, FL.

But within the movement, questions remain. The vast majority of participants agree that the 1% enjoys a concentration of economic and political power that is highly unjust. A key goal of the movement everywhere is to challenge the entrenched power of an unelected dominant group --the 1%-- that lords over us. There is also a sense that the 1% is responsible for the crisis (and should therefore be made to pay for it). Among the most popular chants at Occupy Chicago are "banks got bailed out, we got sold out!" and "how to fix the deficit? tax, tax, tax the rich!".

But it is also commonplace for participants to argue that the problem is our broken economic and political system. This is an argument familiar to many on the Left who have argued that it is the internal contradictions of capitalism, not a failure of regulation or a climate of greed, that produced this economic crisis. But on the face of it, this emphasis on the system doesn't appear to cohere with the "dominant group" perspective that pins responsibility for the crisis --and the push for austerity-- on the ruling class (the 1%). Why? Because the "it's the system" perspective seems to suggest that the ruling class isn't responsible for the crisis in the sense that they made imprudent or unethical decisions. The "it's the system" perspective emphasizes the ways in which the system pushes individuals in the ruling class to act in ways that produce deep recessions and crises.

So, is it the system that's the root of the problem? Or is it the dominance of the ruling class? You probably saw this one coming, but I'm going to argue that this is a false dilemma. It is both the system and the dominant group within that system that is at the root of crisis.

Before I say what I think about this, I'd like to flag the fact that these questions have a long history in the Marxist tradition. The system vs. dominant group question was taken up in the famous Miliband-Poulantzas debate that raged in the pages of New Left Review in the 60s and 70s. This sparked several other debates internal to the Marxist tradition on the question of the state, the most interesting of which (in my view) being the arguments among German Marxists in the 1970s involving Hirsch, Offe, Altvater, and others. For an excellent introduction to these debates, see Simon Clarke's overview here, or read Martin Carnoy's The State and Political Theory (esp. chapter 5).

First, let me say a little bit about the 1% as a dominant group. We all know that the 1% has colonized the political system in the US for its own purposes. This is uncontroversial. The 1% spends vast sums each election cycle funding the candidates of both major parties. Presidential campaigns are simply a struggle between the Democrats and Republicans to garner more support and funding from corporate elites. The 1% also spends vast sums on PR and propaganda (this includes political advertisements as well as ostensibly non-political commercials, e.g. an Exxon-Mobil ad that ends with the jingle "Energy for a stronger America"). We can also add here that the 1% spends vast sums on pro-business interest groups (e.g. the US Chamber of Commerce, etc.). In addition to dominating the election system, the 1% also spends vast sums on lobbying efforts to fight for legislation friendly to their interests. Even when popular demands for reforms surface, the 1% uses its influence and power to mold reform proposals to fit its interests as much as possible. Consider, for instance, the Sherman Act, which was ostensibly passed to break up industrial monopolies, but ended up being used to break unions rather than business cartels. Or, take the following example. Commenting on the popular demand for a public Commission to regulate railroad corporations, an earlier U.S. Attorney General said that:

It satisfies popular clamor for a governmental supervision of railroads, at the same time that that supervision is almost entirely nominal. Further, the older such a Commission gets to be, the more inclined it will be found to take the business and railroad view of things. It thus becomes a barrier between the railroad corporations and the people and a sort of protection against hasty and crude legislation hostile to railroad interests... The part of wisdom is not to destroy the Commission but to utilize it. (quoted from Charles E. Lindblom's excellent Politics and Markets).
It is also well-known that government and industry interpenetrate one another through revolving-door arrangements. The person regulating a particular industry ends up as a highly-paid employee of that industry. High-ranking officials in a particular industry wind up with the public job of regulating that same industry (only to wind up, once again, with a cushy position in private industry afterward). This is a basic feature of how the political system in the US functions. Virtually all elected officials are either already wealthy businesspeople before they get elected, or they become wealthy business people in the course of their tenure.

There's still more to say here, however, about the various ways that the ruling class has colonized the state to serve its interests. Businesspeople have, as Charles Lindblom famously argued in Politics and Markets, a privileged position within government. They are not just another "special interest group". They stand above all other "interest groups" because of their position in society. They have direct access to governing politicians in ways that no other citizens have. Why? Because business leaders are, more or less, unelected public officials who make big decisions about the direction of our society, whether it be decisions about investment, employment, wages and benefits, location of factories and production, etc.

In any society, certain basic decisions must be carried out. Decisions must be made about what is to be produced, how it will be produced, according to what organizational structure, by whom, etc. Decisions must be made regarding the investment of capital in production, the allocation of resources, whether to use certain technologies, the amount of money devoted to innovation, etc. Decisions must be made regarding where plants and factories will be located, how many workers they will employ, whether workers will be laid off if profits fall, etc. Decisions must be made about how much compensation and bonuses executives should be paid. All of these decisions must be made by someone, no matter what kind of society we live in. And what's more --these are hugely important decisions that have massive consequences for the well-being and life chances of all of us. They have a huge impact on the standard of living, employment levels, wages, economic growth, prices and so forth.

But who makes these decisions in our society? Unelected business people. The majority of us do not have any say in these matters. The majority has no means of making the unelected public officials of the 1% accountable to our interests. This is not a new development. By definition, a capitalist society is one in which the basic structure of the economy --the means of production-- is privately owned and controlled by a small class. The productive instruments, the resources, the capital and so forth are all privately owned and controlled by a small class of owners --the 1%. According to our present legal/political system, to allow the democratic will of the people to determine these decisions would be to interfere with the private property of the 1%. Genuine democracy of, by, and for the people is incompatible with the private property of the 1%. In other words, the class power of the 1% is fundamentally at odds with the ideal of a democratically self-governing society.

So, business people (or, if you like, the ruling class, or the 1%) are basically unelected public officials. They make decisions of huge importance for all of us. Unsurprisingly, then, elected officials take the class power of the 1% seriously. They know that if business turns against their government, bad consequences will follow: rises in unemployment, stagnant growth due to a failure to invest, capital flight, etc. They know that they must try to induce (not command) business --with tax breaks, subsidies, lax regulations, etc.-- to fulfill its function in the system so that the economy does well according to its own standards. Whether elected officials in capitalist societies like it or not, they must take seriously the structural economic imperative to make the 1% happy. This is an example of how the power of the 1% places constraints upon what governments can and cannot do.

Governments have, since the very beginning of capitalism, taken on a basic supportive role vis-a-vis business. Costly investments in fixed capital and infrastructure, because they are not profitable in the short term, are often taken on by government in order to grease the axles of private businesses. Likewise with "early federal policy on banks, canals, and roads; governmental profligacy in indulgences to railroads; the judicial interpretation of anti-monopoly legislation to restrict unions rather than industry; the deployment of Marines to protect American enterprise in Latin America; the use of public utility regulation to protect business earnings; and the diversion of fair trade laws from their ostensible public purposes to the protection of monopolistic privilege" (Lindblom, p.174).

This leads us into a discussion of the system. Thus far, we've seen how the State in capitalist society is a class State. We've seen the multiple avenues through which a dominant group, i.e. the ruling class, can directly influence the actions of government. When government officials aren't themselves former (or current, or future) ruling class members, they are subject to the influence of corporate campaign finance, intense lobbying efforts, as well as influence generated by the concentrated economic power of business people. We've also seen that the class power of the 1% places constraints on what governments can and cannot do, no matter how strong its popular mandate from the people. But now I'd like to connect this discussion to an indictment of the system.

The first thing to say is that the sorry state of affairs discussed above didn't come about by accident. Nor did it come about in a vacuum. It is not the result of a co-ordinated conspiracy by people who know one another personally and communicate regularly about how to maintain their dominance. This state of affairs is the result of hundreds of years of capitalist development.

Capitalism is a system in which the basic structure of the economy is privately owned and used for the sole purpose of accumulating profit. Whether capitalists like it or not, they are compelled to maximize profit. They are forced, on pain of insolvency, to compete against other capitalist firms in order to survive. And winning out in competition means accumulating large profits, and reinvesting those profits in expanded production to accumulate still more profit. "Accumulate, accumulate, accumulate!" more or less summarizes the basic priorities of the system.

When the accumulation process is interrupted, the system seizes up and goes into crisis. There are many different reasons why interruptions occur, but one important reason is overproduction. Overproduction occurs when capitalists accumulate more capital, resources, or means of production than they can profitably make use of. So, when sufficient profitable investment opportunities are not forthcoming, what do capitalists do? They hoard their capital and try to wait out the storm. It doesn't matter whether mass unemployment or food shortages ensue: in periods of economic crisis the ruling class will hoard its wealth until profitable investment opportunities re-emerge.

So, in order for a capitalist system to function (in order for people to have jobs, in order for people to be able to purchase the necessities of life, in order for tax revenues to be generated to fund government salaries, the legal system, roads, the military, etc.) the accumulation process must be in full swing. When accumulation is disrupted, crisis ensues and the vast majority suffers as a result.

Now, at this point, we have to ask: if the above is true, what does it say about the basic function of the State in capitalist societies? The answer should be clear. The capitalist State's function is to cultivate and maintain favorable conditions for accumulation. In short, the fundamental role of the State in capitalism is to secure the conditions for profitability.

Let's expand upon this a bit. We've already established that the State is structurally dependent on the accumulation process. That is, the State is funded through resources derived from the private accumulation process (collected via taxation). Moreover the viability of a particular governing group within the State is dependent upon economic "success" (as opposed to stagnation and crisis). In this context, State officials are compelled --by their own institutional self-interest-- to try to ensure that the accumulation process runs smoothly. If they don't, they are liable to face sharp drops in tax revenues as well as other bad economic consequences (e.g. unemployment, stagnation, capital flight, etc.). This is what politicians --from both corporate parties-- mean when they talk about "creating a good business climate", or adopting policies that are "pro growth". This need to ensure that the accumulation process continues is what drove the construction of the Interstate Highway System as well as other big public works projects in U.S. history. The goal was to socialize the costs overhead and infrastructure to encourage private investment for profit. Likewise, this basic role is what explains the massive bailouts of financial institutions, the giveaways dolled out through "quantitative easing", and the big tax breaks handed out by Obama and the Democrats. Governing officials are trying to find ways to jump start the accumulation process --no matter what the human cost.

So, as we've seen, the function of the State is to secure the conditions for the accumulation of profit. But in order to do that well, the State has to act in the interests of the capitalist class as a whole. And what is in the interest of the capitalist class as a whole may not be the same as what is in the interest of some particular capitalist firm. Recall that capitalists confront one another in the marketplace as rivals in competition. Let us add here the Marxist complaint that capitalist production is anarchic, haphazard and unplanned. Although the capitalist class a whole may act together to secure legislation on shared goals (e.g. union-busting), there will a lot that they disagree on, given that their priority is maximizing their own profit and bumping off competitors. What this makes clear is that the self-interest of a particular capitalist firm may not coincide with the class interest of all capitalists.

But the basic role of the State is to ensure that the accumulation process runs smoothly, i.e. to serve the interests of the capitalist class as a whole. Thus we should expect the capitalist State to periodically do things that buck the will of a particular capitalist firm. In fact, this happens all the time. Alternatively, because of special direct access and influence to State officials, sometimes capitalists are able to persuade governing officials to serve the interests of their particular firm more than the interests of the capitalist class as a whole. The point is that there may be a contradiction here: between the basic function of the state and the ways that particular members of the ruling class influence the state directly.

This isn't the only contradiction. The State in capitalist societies involves electoral competition. That means that different factions of establishment groups, organized into dominant political parties, compete against one another to determine which will head up the State. Regardless of which of them governs, of course, the basic function of the State remains the same. But the cycle of elections every four years in the U.S. means that particular governing officials can be removed from office and replaced by others. Thus, governing officials are compelled to seek popular support in order to reproduce their own power. In a word --their continued existence as public officials requires that they seek legitimation from the public. That doesn't mean that the rule of State officials must actually be legitimate --it merely means that their rule must appear to be so. If a governing party does not secure legitimation, it threatens to lose power to representatives from another establishment party. So, for reasons of self-interest, elected officials in capitalist societies must try to make it appear as if they are uniquely qualified to fulfill their role in the system. The need to secure legitimation also means that the State must speak in the language of universality and general interests. When it advertises itself publicly, it will always say that it stands for generalizable interests and popular goals --as opposed to the goals and particular interests of the capitalist class. If the capitalist state advertises itself as what it really is, it would not be able to secure legitimation. Thus, as Claus Offe puts it, "the State can only function as a capitalist state by appealing to symbols and sources of support that conceal its nature as a capitalist state; the existence of a capitalist state presupposes the systematic denial of its nature as a capitalist state."

However, in periods of social struggle, sometimes governing officials are compelled to grant concessions to popular movements in order to secure legitimation. But many --indeed the vast majority-- of reforms demanded by the population brush against the grain of the accumulation process. This reveals a profound contradiction in capitalist societies, i.e. the contradiction between accumulation and legitimation.

On the one hand, the capitalist State has to secure legitimation from the population. That doesn't mean that it has to actually be legitimate --it means that it is compelled to secure the appearance of being legitimate. In periods of intense struggle, this means granting concessions to popular movements (because otherwise it would reveal that the State doesn't serve the interests of the majority). But granting concessions or passing reforms contradicts the need to ensure that the accumulation process runs smoothly. Hence the contradiction and all of the instability that comes with it.

Austerity is an excellent example of how this contradiction manifests itself. Take Greece, where a nominally "socialist" party is in power. Presumably, it is not part of the party's program that their basic goal is to gut the welfare state and lower working-class living standards. Presumably the party is committed in writing to favoring basic center-Left demands, including maintenance of the welfare state. But, nonetheless, the ruling PASOK government in Greece is caught between the need to secure legitimation and the need to secure the conditions for the accumulation of profits.
Through its actions, however, we see very clearly which conjunct of the contradiction has a stronger pull on the government. PASOK has pushed through a punishing program of deep cuts, austerity, layoffs, union busting, and tax increases on workers. But it is doing all of this in order to try to protect the profits of the European ruling classes and to re-establish the conditions for steady accumulation. But in doing this, the Greek state is showing itself for what it is: a class state. Hence, it is losing legitimacy by the day. As a PASOK MP describes the situation,
"The anger over the austerity measures is so deep that many PASOK MPs no longer dare to appear in public. “We can’t even leave our homes to go to a taverna any more,” the Guardian quotes an anonymous MP of the governing party as saying. “You’re called a pig or a traitor for passing measures none of us wanted to pass. It’s not a life.”
I don't doubt that many of the PASOK MP's didn't want to pass the punishing austerity packages. But they passed them nonetheless, because of the web of power relations in which the State is situated. The EU, dominated by French and German capital, has been pushing hard to protect the assets of the European ruling classes. They have made economic threats: capital flight, economic misery, inflation, isolation, etc. They have made political threats some of which hint at the possibility of military coercion and "regime change" if their harsh conditions are not met. At the same time, PASOK is under the tutelage of domestic Greek capital as well. Whatever the aims of the PASOK government officials themselves, the systemic pressure --and the pressure of tremendously concentrated class power coming from France and Germany-- are forcing them to put profits over the vast majority of the population.

So let us take stock of what's been said above. How is the dominance of the 1% related to the system? The 1% are dominant in virtue of their role within the system. If the particular individuals in the 1% simply disappeared, others would take their place and the problems would remain. Their position of dominance is facilitated by the structure of the system in such a way that we can only oppose their rule if we oppose the system that makes it possible. Furthermore, we see that the particular interests of individual members of the 1% sometimes contradict the overall interests of the whole 1%. This fact is, again, true because of the competitive, anarchic nature of capitalist production. This compels ruling class members to push very hard for subsidies, tax breaks, no bid contracts, etc. and milk the government for money and favors. This would be true even in a perfectly competitive "free" market, because the very nature of the capitalist system compels them to do this.

Finally, the connection between the dominance of the ruling class and the capitalist system explains why it is pointless to expect moral suasion to move the 1% to change its ways. The system isn't in crisis merely because of callousness and greed --though these vices are no doubt highly prevalent among the 1%. The system is in crisis because of its irrational drive to accumulate for its own sake in the face of growing contradictions and environmental limits. And the ruling class is forced --by competition-- to participate in this mad race toward destruction. Appealing to their conscience is pointless --we need to change the system. You don't ask Kings to be more benevolent and less cruel --you demand that they be dethroned. Likewise, we shouldn't ask that our rulers be more "socially conscious" or "less greedy". We should instead demand that the system that facilitates their dominance be overturned.

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Friday, August 28, 2009

Playing nice with insurance companies to get 'politically realistic' reform

"The whole history of the progress of human a
liberty shows that all concessions yet made
to her august claims have been born of
earnest struggle.... If there is no struggle,
there is no progress. Those who profess to
favor freedom and yet deprecate agitation
are men who want crops without plowing up
the ground, they want rain without thunder
and lightning. They want the ocean without
the awful roar of its mighty waters. The
struggle may be a moral one, or it may be a
physical one, and it may be both moral and
physical, but it must be a struggle.

Power concedes nothing without a demand.
It never did and it never will."

-Frederick Douglass

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Sunday, February 15, 2009

Marx on Money -- and Love

A most cynical, and yet hopeful post-Valentine's Day excerpt:

That which I am unable to do as a man, and of which therefore all my individual essential powers are incapable, I am able to do by means of money. Money thus turns each of these powers into something which in itself it is not — turns it, that is, into its contrary.

If I long for a particular dish or want to take the mail-coach because I am not strong enough to go by foot, money fetches me the dish and the mail-coach: that is, it converts my wishes from something in the realm of imagination, translates them from their meditated, imagined or desired existence into their sensuous, actual existence — from imagination to life, from imagined being into real being. In effecting this mediation, [money] is the truly creative power.

No doubt the demand also exists for him who has no money, but his demand is a mere thing of the imagination without effect or existence for me, for a third party, for the [others], and which therefore remains even for me unreal and objectless. The difference between effective demand based on money and ineffective demand based on my need, my passion, my wish, etc., is the difference between being and thinking, between the idea which merely exists within me and the idea which exists as a real object outside of me.

If I have no money for travel, I have no need — that is, no real and realisable need — to travel. If I have the vocation for study but no money for it, I have no vocation for study — that is, no effective, no true vocation. On the other hand, if I have really no vocation for study but have the will and the money for it, I have an effective vocation for it. Money as the external, universal medium and faculty (not springing from man as man or from human society as society) for turning an image into reality and reality into a mere image, transforms the real essential powers of man and nature into what are merely abstract notions and therefore imperfections and tormenting chimeras, just as it transforms real imperfections and chimeras — essential powers which are really impotent, which exist only in the imagination of the individual — into real essential powers and faculties. In the light of this characteristic alone, money is thus the general distorting of individualities which turns them into their opposite and confers contradictory attributes upon their attributes.

Money, then, appears as this distorting power both against the individual and against the bonds of society, etc., which claim to be entities in themselves. It transforms fidelity into infidelity, love into hate, hate into love, virtue into vice, vice into virtue, servant into master, master into servant, idiocy into intelligence, and intelligence into idiocy.

Since money, as the existing and active concept of value, confounds and confuses all things, it is the general confounding and confusing of all things — the world upside-down — the confounding and confusing of all natural and human qualities.

He who can buy bravery is brave, though he be a coward. As money is not exchanged for any one specific quality, for any one specific thing, or for any particular human essential power, but for the entire objective world of man and nature, from the standpoint of its possessor it therefore serves to exchange every quality for every other, even contradictory, quality and object: it is the fraternisation of impossibilities. It makes contradictions embrace.

Assume man to be man and his relationship to the world to be a human one: then you can exchange love only for love, trust for trust, etc. If you want to enjoy art, you must be an artistically cultivated person; if you want to exercise influence over other people, you must be a person with a stimulating and encouraging effect on other people. Every one of your relations to man and to nature must be a specific expression, corresponding to the object of your will, of your real individual life. If you love without evoking love in return — that is, if your loving as loving does not produce reciprocal love; if through a living expression of yourself as a loving person you do not make yourself a beloved one, then your love is impotent — a misfortune.

From the Economic and Philosophical Manuscripts of 1844

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