Marxisms in the 21st Century. John Saul

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Marxisms in the 21st Century - John  Saul


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      First Wave: Classical Marxism

      In the first wave of marketisation, during the nineteenth century, the focus is on the commodification of labour – first the separation of labour from means of subsistence so that it can be bought and sold in a labour market, and then strategies by capital to reduce the cost of labour power through deskilling, employing multiple members of the family and creating a reserve army of labour. This led to struggles that emanated from production, from factories – struggles for labour rights such as limitation of the length of the working day, protection against unemployment, the right to organise into trade unions, the extension of the vote, the development of cooperatives and the development of political parties. The countermovement is of a local character, building toward national working-class organisation to secure state enforcement of labour rights.

      To this corresponds the classical Marxism of Marx and Engels and of the golden years of German social democracy, the Marxism of Kautsky, Luxemburg and Eduard Bernstein. It is based on the idea that capitalism is a system of exploitation that is inevitably doomed because the relations of production will finally and definitively fetter the forces of production. Competition among capitalists leads to the accumulation of wealth at one pole of society and its immiseration at the other pole, which in turn gives rise to, on the one side, the deepening crises of overproduction and the recurrent destruction of the means of production and on the other side, the simultaneous intensification of class struggle. What classical Marxism shares is the view that capitalism is doomed by its own laws to destroy itself, thereby giving way to socialism.

      The debate between Luxemburg (1970) and Kautsky (1971) (see also Goode 1983) is about precisely when the final crisis will occur, when the forces of production will finally be fettered or whether, as in the view of Bernstein (1961), there is no final crisis because capitalism will evolve into socialism. Despite differing views, they all shared the belief that the rise of socialism was guaranteed because capitalism was doomed. As a result socialism remained largely unexamined. It was presumed to develop on the basis of the self-destruction of the capitalist mode of production through the concentration of capital and the collectivisation of labour. In this view socialism is an economic utopia and the negation of capitalism. Classical Marxism depended on laws of history – the succession of modes of production, the dynamics of capitalism that sows the seeds of its own destruction and history as the history of class struggle – that will inevitably lead capitalism toward socialism.

      Classical Marxism suffered from three fatal flaws. First, its theory of class struggle was wrong – class struggle does not necessarily lead to its intensification but rather, through the concessions it wins, the working class becomes organised within the framework of capitalism. Second, its theory of the state was undeveloped – the state is organised to defend capitalism against capitalists as well as workers. The state recognises and enforces the material interests of workers, in a limited but crucial way, through trade unions and parties, but it also regulates relations among capitalists so that competition does not destroy capitalism. Third, and finally, its theory of socialist transition hardly existed – except in the case of Bernstein who saw it as an evolutionary process based on the inevitable expansion of electoral democracy – thereby confusing the end of competitive capitalism with the end of all capitalism, missing the way the state could contain the ravages of the market and the deepening of class struggle by creating an organised capitalism. Classical Marxists saw the signs of organised capitalism but they mistook it for socialism. In fact, organised capitalism laid the foundations for the second wave of Marxism.

      Second Wave: Soviet, Western and Third World Marxism

      In the Polanyian account, marketisation develops a new burst of energy after World War I, partly in reaction to socialist movements. But now the extent of marketisation involves not just labour but international trade and its regulation by currencies tied to the gold standard. The ever-fluctuating exchange rates that were associated with rampant inflation in Germany and the great crash in the United States led countries to protect their national currencies, and go off the gold standard. Thus, the countermovement now took the form of national regulation of economies. In Germany and Italy it took the form of fascism, in Scandinavia social democracy and in the US the New Deal. After the civil war and with the declaration of the New Economic Policy, the Soviet Union was also taken up with marketisation, but would abandon such policies in 1928 with the inauguration of forced collectivisation in agriculture and central planning. Markets entered a period of retreat across the world and under the influence of Keynesian economics the state assumed regulatory functions. This continued until the mid-1970s when a new round of marketisation began to assert itself.

      If the countermovement to the market in the nineteenth century emerged on the ground of local struggles, reflecting the coincidence of exploitation and commodification of labour and the need to advance labour rights, the countermovement to the commodification of money – the source of second-wave marketisation – came from policies of national protection. The commodification of money, concretised in the uncertainty of currency exchange rates, created such economic chaos that national economies withdrew from the international economy. They developed coordinated policies to regulate banking but also to advance the social rights of labour through welfare states that supported those who could not gain access to the labour market, by providing benefits for children, sickness, old age, job loss and so forth. Whether it be fascism, Stalinism or social democracy, social rights for labour underpinned support for the new regime. Thus, second-wave marketisation gave rise to national protection of both capital and labour, and the regulation of the commodification of money.

      If the first wave of Marxism is characterised by the contradiction between capital and labour, the second is typified by the clash of the realm of production and the realm of exchange – overproduction under capitalism which called for state administration, and shortage under state socialism which called for the creation of markets (see, for example, Baran 1957; Sweezy 1946).5 Far from being a utopian construct as in the first period, the notion of socialism in the second period was all too real – based on national economic planning and the protection of social rights.

      Marxism, rather than projecting an imaginary socialism that would follow a hypothetical collapse of capitalism, now had to rationalise and legitimate an actually existing socialism. Marxism becomes an ideology that justifies a new form of class domination, the class domination of a party elite, sometimes referred to as the nomenklatura. The impending communist transformation and the critique of capitalism became the rallying cry of communist parties all over the world. This Soviet Marxism lost all semblance of a dynamic science, and instead became a dogma, a degenerate branch of Marxism.

      It gave rise to a reaction within the Marxist camp – what is known as Western Marxism – that simultaneously contested the Soviet Union’s claim to socialism and grappled with the failure of revolution in the West, that is, why the working class was absorbed into capitalism rather than overthrowing capitalism. Here we find, on the one hand, the writings of Lukács and the Frankfurt School which underline capitalism’s powers of mystification, and, on the other hand, Antonio Gramsci who explores the way advanced capitalism, and the civil society that accompanies it, organised the consent of the working class through the expansion of social rights, including certain labour rights (see for example, Gramsci 1971; Horkheimer and Adorno 1972; Lukács 1971; Marcuse 1955, 1958 and 1964). Western Marxism, together with the social movements of the 1960s and 1970s, inspired a regeneration of Marxism that examined the question of capitalism’s durability and flexibility in the face of the crises


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