Posts Tagged ‘Hegel’

In this post, I continue the draft of sections of my forthcoming book, “Marxian Economics: An Introduction.” The first five posts (herehereherehere, and here) will serve as the basis for Chapter 1, Marxian Economics Today. The next six (hereherehereherehere, and here) are for Chapter 2, Marxian Economics Versus Mainstream Economics. This post (following on four previous ones, here, here, here, and here) is for Chapter 3, Toward a Critique of Political Economy.

The necessary disclosure: these are merely drafts of sections of the book, some rougher or more preliminary than others. I expect them all to be extensively revised and rewritten when I prepare the final book manuscript.

Finally, because of a contractual commitment (which limits the amount of the draft of the book I am allowed to publish on this blog), this will be the last book-related post for a few months.

Toward Marx’s Critique of Political Economy

There is no necessary trajectory to Marx’s writings, no reason his earlier writings had to lead to or culminate in Capital. However, as we look back from the vantage point of his critique of political economy, we can see the ways his thinking changed and how the elements of that critique emerged.

In this section, we take a quick look at some of Marx’s key texts prior to writing Capital: the Economic and Philosophic Manuscripts of 1844, the Theses on Feuerbach, the German Ideology, the Grundrisse, and A Contribution to the Critique of Political Economy. Together, they will give us a sense of how Marx’s ideas developed over time.

We will also see two themes emerge over the course of these texts: the role of critique and a focus on social context. First, Marx doesn’t start (in these texts or, for that matter, in Capital) with a given approach or set of first principles. Instead, his method is to engage with ideas and problems that were “out there,” in the intellectual and social worlds he inhabited, and to formulate a critique, thereby giving rise to new ways of posing issues and answering questions. Second, Marx’s concern is always with social and historical specificity, as against looking for or finding what others would consider to be given and universal. Thus, for example, Marx eschews any notion of a transhistorical or transcultural “human nature.” Instead, in his view, different human natures are both the condition and consequence of particular social and historical circumstances. Much the same holds for his method of engaging economic issues.

Once Marx left Germany and found his way to Paris, he met Engels for the first time (thus initiating, following on their previous correspondence, a life-long collaboration) and also began what he considered to be a “conscientious critical study of political economy,” the mainstream economics of his day. The result was a series of three manuscripts (often referred to as the Economic and Philosophic Manuscripts of 1844 or the Paris Manuscripts, which were written between April and August 1844 but only finally published, to considerable interest, in 1932).* What readers will find in the manuscripts is, having “proceeded from the premises of political economy” (meaning “its language and laws,” the assumption of “private property, the separation of labor, capital and land, and of wages, profit of capital and rent of land,” and so on), Marx arrives at conclusions and formulates new terms that run directly counter to those of Smith, Ricardo, and the other classical political economists. In particular, Marx argues that, under capitalism, as workers become reduced to commodities, what they produce confronts them as “something alien.” Therefore, their labor (using terms borrowed from Feuerbach’s critique of Hegel) becomes “alienated” or “estranged.”

it is clear that the more the worker spends himself, the more powerful becomes the alien world of objects which he creates over and against himself, the poorer he himself – his inner world – becomes, the less belongs to him as his own. It is the same in religion. The more man puts into God, the less he retains in himself. The worker puts his life into the object; but now his life no longer belongs to him but to the object. Hence, the greater this activity, the more the worker lacks objects. Whatever the product of his labor is, he is not.

He then demonstrates that the taken-for-granted assumptions of classical political economy—private property, wages, and so on—are themselves the products of estranged labor. Thus, the distinctions made by the mainstream economists of Marx’s time—between profit and rent, between both and wages, and so on—are rooted not in the nature of things, but in particular social and historical circumstances. They are, in other words, peculiar to capitalism.**

As we saw in a previous section, Marx then (in 1845) developed a critique of Feuerbach. Over the course of his eleven short theses, Marx rejects the idea of a single anthropology (the “essence of man” or human nature) and focuses, instead, on the ensemble of “social relations,” the “historical process,” and “social humanity.” The result is social practice, that is, the goal of not just interpreting the world, but of changing it.

The next year, Marx coauthored with Engels a long set of manuscripts (like the 1844 manuscripts, only published in 1932) in which they challenge the one-sided criticisms of Hegel by Bruno Bauer, other Young Hegelians, and the post-Hegelian philosopher Max Stirner. There, in their attack on German philosophy for having been obsessed with religion (and therefore self-consciousness or the realm of ideas), Marx and Engels announce for the first time what they call the “materialist conception of history,” with an alternative starting-point: “real individuals, their activity and the material conditions under which they live, both those which they find already existing and those produced by their activity.” This focus on social production means Marx and Engels can transform consciousness itself into a “social product,” which develops historically and changes according to particular forms of society or social relationships.***

Later, once Marx had settled in London, he spent much of his time in the British Museum (a national public museum, which contained both natural history objects and a massive library) studying the texts of the classical political economists. The result were a set of notebooks, called the Grundrisse (literally outlines or plans), which are often considered to be first draft of Capital.**** While the topics Marx covered are wide-ranging, from value and labor to precapitalist forms of economic and social organization and the preconditions for communism, what is of interest here is his announcement of where he thinks the critique of political economy should start: with “socially determined individual production.”

Why is this important? Because it represents Marx’s break from the notion of natural production, and therefore from the mainstream economics of his day (as of our own). In classical political economy (as in neoclassical economics), capitalism and other economies are considered to be natural, because they are finally reduced to and can be explained by certain given or exogenous factors, such as population, technology, and resources (to which neoclassical economists add given preferences). Also, they take individuals as their point of departure (the most famous example being Robinson Crusoe, a story that is repeated even today in mainstream economic textbooks).

Marx’s alternative view is that economics should start with social individuals, “individuals producing in society,” not given individuals outside of particular historical and social contexts. Moreover, the focus should be on “social production”—different, socially determined ways of producing goods and services—not on any kind of production in general (which students today will recognize in the technical apparatus of isocost and isoquant curves).

Marx also demonstrates his debt to Hegel, in discussing the relationship among production, distribution, exchange, and consumption. Where the classical political economists posit that the goal of production is consumption, and many of the critics worry about distribution, Marx sees them in terms of a “dialectical unity.” In its most general form,

A definite production thus determines a definite consumption, distribution and exchange as well as definite relations between these different moments. Admittedly, however, in its one-sided form, production is itself determined by the other moments.

It’s a distinction that shows up today in the debate about distribution (through free markets) versusu redistribution (through government programs). What the participants in that debate forget about is the initial distribution related to production (and all that entails for consumption, distribution, and exchange), that is, society produces itself through its initial distribution. It’s that initial distribution that is taken as given in mainstream economics, then as now.

Marx also announces his break from existing ways of carrying out economic analysis, whether starting from abstract first principles (and deducing the rules that govern reality) or from empirical reality (whereby certain “laws” are extracted). Instead, he argues, the method he proposes is a movement from the abstract to the concrete. In other words, economic analysis is itself a process of production—one that starts from relatively abstract notions and, adding more and more determinations or circumstances, arrives at a relatively concrete notion (“the way in which thought appropriates the concrete, [which] reproduces it as the concrete in the mind”). It is not a question of bridging the gap between thought and reality (in terms of some kind of validity criterion) but of producing within thought a particular conception of economic and social reality. The implication, of course, is that different economic theories will lead to different, incommensurable conceptions of capitalism and other economic systems.

Finally, in 1859, Marx published A Contribution to the Critique of Political Economy. There, he designates his break from the philosophies of both Hegel and Feuerbach with what has become one of his most famous expressions:

It is not the consciousness of men that determines their existence, but their social existence that determines their consciousness.

This is Marx’s critique of both Hegel’s notion of the Absolute Spirit and of Feuerbach’s alienated consciousness. It’s not an issue of individual consciousness or virtue within existing social order but the conflict-ridden social order itself. Another way of putting this in terms of contemporary debates is: you can’t just have a semblance of freedom (which often means blaming the victims) but you need real freedom, that is, economic and social change that makes the exercise of freedom possible. It’s the same idea that has motivated many working-class political movements, from the nineteenth century onwards, which have demanded an end to poverty and access to decent housing, healthcare, and so on for the majority of people by identifying and seeking to eliminate the economic obstacles to what they consider to be fundamental human rights.

Marx then appends a quotation from Dante Alighieri’s Divine Comedy, which can also serve as a warning to readers as we embark, starting in the next chapter, on a detailed study of Marx’s critique of political economy:

Qui si convien lasciare ogni sospetto
Ogni vilta convien che qui sia morta
.*****

———

*The Economic and Philosophic Manuscripts of 1844 was first published in Germany by the Institute of Marxism-Leninism in Moscow in 1932, in the language of the original. In English, this work first appeared in 1959, published by the Foreign Languages Publishing House in Moscow, translated by Martin Milligan.

**Marx also presents in those manuscripts his critique of “piecemeal social reformers,” including the French socialist Pierre-Joseph Proudhon, “who either want to raise wages and in this way to improve the situation of the working class, or regard equality of wages,” for not going far enough, because they accept the existence of private property and estranged labor. In this sense, they want to improve, but not eliminate and move beyond, capitalism. And, in the third manuscript, Marx credits Hegel with understanding the importance of labor as the source of alienation; but then criticizes Hegelian philosophy for focusing entirely on “abstractly mental labor” (as a question only of “self-consciousness”) and therefore overlooks (just like the classical political economists) economic and political alienation.

***They also announce what, at least at this stage, what they mean by “communism”: “not a state of affairs which is to be established, an ideal to which reality [will] have to adjust itself. We call communism the real movement which abolishes the present state of things. The conditions of this movement result from the premises now in existence.”

****The seven notebooks were written during the winter of 1857–58 but were only published in 1939. The first English-language translation (by Martin Nicolaus) appeared in 1973. The publication of the Grundrisse was important not only for readers of Capital (and much discussion has ensued about the overlaps and differences between the two), but also for other fields, especially for the new field of cultural studies (in the work of, among others, Stuart Hall and the famous Center for Contemporary Cultural Studies at the University of Birmingham).

*****The lines are from Canto III of “Inferno” (as Virgil’s reply to Dante, who has just read the inscription over the Gates of Hell). The translation is: “Here one must leave behind all hesitation; here every cowardice must meet its death.”

In this post, I continue the draft of sections of my forthcoming book, “Marxian Economics: An Introduction.” The first five posts (herehereherehere, and here) will serve as the basis for Chapter 1, Marxian Economics Today. The next six (hereherehereherehere, and here) are for Chapter 2, Marxian Economics Versus Mainstream Economics. This post (following on a previous one) is for Chapter 3, Toward a Critique of Political Economy.

The necessary disclosure: these are merely drafts of sections of the book, some rougher or more preliminary than others. Right now, I’m just trying to get them done in some form. They will all be extensively revised and rewritten in preparing the final book manuscript.

Hegel

It is difficult to fully understand the Marxian critique of political economy without some understanding of Hegel. No less an authority than Lenin wrote that “it is impossible completely to understand Marx’s Capital, and especially its first chapter, without having thoroughly studied and understood the whole of Hegel’s Logic.” Marx himself wrote “I therefore openly avowed myself the pupil of that mighty thinker, and even here and there, in the chapter on the theory of value, coquetted with the modes of expression peculiar to him.”

Those are the two major reasons for keeping Hegel in mind: because Marx, like many young German intellectuals in the 1830s and 1840s, started with Hegel; and because, many years later, Marx’s critique of political economy was still influenced by his theoretical encounter with Hegel.*

But, of course, that makes understanding the movement toward the Marxian critique of political economy a bit difficult for contemporary readers, who generally aren’t familiar with Hegel’s writings. So, in this section, I want to present a brief summary of Hegel’s philosophy. But, I caution readers, this should not be taken to be a presentation of all aspects of Hegel’s thought. We only want to examine Hegel to the extent that it aids our comprehension of Marx’s theoretical journey and his later critique of political economy.

In his twenties, Marx, along with other young German intellectuals (including Ruge, Bruno Bauer, and Ludwig Feuerbach), formed a loose grouping called, variously, the Young Hegelians or the Left Hegelians. In their discussions and debates, these young thinkers sought both to draw on Hegel’s philosophy and to radicalize it, aiming their attacks especially at religion and the German political system.** Later, they turned their radical critique on Hegel’s philosophy itself.

So, what was it in Hegel’s thought that was so influential for Marx and the other Young Hegelians? One area is particularly important: the theory of knowledge and, closely related, the philosophy of history.

On the first point, Hegel’s view was that the two previous traditions—of René Descartes and Immanuel Kant—got it wrong. Descartes argued that it was impossible to know things as they appear to us (phenomena) but only things as they are in themselves (noumena). Experience was deceptive. Hence, his focus on reason, which alone can provide certainty about the world. Kant posited exactly the opposite—that it was possible to know things as they appeared to us but not their essences, things as they are in themselves. Therefore, science was only capable of providing knowledge of the appearances of things, of empirical experiences and observations about nature; morality and religion operated in the unknowable realm of things in themselves.

Hegel’s great contribution was to solve the problem and affirm what both Descartes and Kant denied. For him, history was an unfolding of the mind (Absolute Spirit) coming to know itself as phenomenon, to the point of its full development, when it is aware of itself as it is, as noumenon. In other words, the consciousness of things as they appear to us leads to knowledge of the essence of things. At the end of the process, when the object has been fully “spiritualized” by successive cycles of consciousness’s experience, consciousness will fully know the object and at the same time fully recognize that the object is none other than itself. That is the end of history.

How does this historical process work? How does the mind or Absolute Spirit pass through successive stages until it reaches full awareness? That’s where the dialectic comes in. According to Hegel (especially the Phenomenology of Mind), human understanding passes through a movement that is characterized by an initial thesis (e.g., being) that passes into its opposite (e.g., nothingness), which entails a contradiction that is resolved by a third moment (e.g., becoming), which is the positive result of that opposition. For Hegel, this process of thesis-antithesis-synthesis (or, as it is sometimes referred to, abstract-negative-concrete) is both a logical process (the development of philosophical categories) and a chronological process (the development of society), which leads to greater understanding or universality (in both philosophy and in social institutions such as religion and politics), eventually leading to complete self-understanding—the end of history.

What Marx and the other Young Hegelians took from Hegel was a method and language that allowed them to challenge tradition and the existing order: a focus on history and a stress on flux, change, contradiction, movement, process, and so forth.

But they also turned their critical gaze on the more conservative dimensions of Hegel’s philosophy. For example, Feuerbach (in The Essence of Christianity, published in 1841) argued that Hegel’s Absolute Spirit was nothing more than deceased spirit of theology, that is, it was still an inverted world consciousness. Instead, for Feuerbach, God was the outward projection of people’s inward nature. Men and women were “alienated” from their human essence in and through religion—because they cast all their human powers onto a deity, instead of assuming them as their own. The goal, then, was to change consciousness by becoming aware of that self-alienation, through critique.

Marx, in particular, considered Feuerbach’s critique to be an important step beyond Hegel. Ultimately, however, he rejected the way Feuerbach formulated the problem (as individuals separated from their human essence, outside of society) and settled his account with the eleven “Theses on Feuerbach,” the last of which has become the most famous:

The philosophers have only interpreted the world, in various ways; the point is to change it.

———

*Even though I insist on the idea that a basic understanding of Hegel is necessary for understanding Marx’s theoretical journey, it is also possible to overstate the case. Marx’s method is neither a straightforward application nor a simple reversal of the Hegelian dialectic. But the time he wrote Capital, Marx had criticized and moved far beyond Hegel’s philosophy.

**At the time (beginning in 1840), Germany was governed by a new king, Frederick William IV, who undermined his promise of political reform by curtailing political freedom and religious tolerance. For the Young Hegelians, this was a real step backward in terms of following the rest of Europe (especially Britain and France) in modernizing political institutions and expanding the realm of freedom. And it was key to their eventual break from Hegel, since according to Hegel’s philosophy the Prussian state represented the fulfillment of history. (The contemporary equivalent is Francis Fukuyama’s famous book The End of History and the Last Man (1992), in which he argued that “not just. . .the passing of a particular period of post-war history, but the end of history as such: That is, the end-point of mankind’s ideological evolution and the universalization of Western liberal democracy as the final form of human government.”

Cornelia Mittendorfer, Double Alienation (2012)

In this post, I continue the draft of sections of my forthcoming book, “Marxian Economics: An Introduction.” The first five posts (herehereherehere, and here) will serve as the basis for Chapter 1, Marxian Economics Today. The next six (hereherehereherehere, and here) are for Chapter 2, Marxian Economics Versus Mainstream Economics. This post is a draft of the first section of Chapter 3, Toward a Critique of Political Economy.

The Marxian Critique of Political Economy

In the first two chapters, we looked at some of the major differences between Marxian economics and mainstream economics, both in Marx’s time and in our own.

But where did Marx’s critique of mainstream economics come from? It certainly did not emerge in one fell swoop, as a ready-made theory of capitalism. And it wasn’t produced in isolation, independently of the society within which it was first produced and then further elaborated.

Quite the opposite: we can trace the development of Marx’s critique through a variety of texts—many of them now quite famous, even if they are rarely mentioned or discussed within economics. There, we can see Marx’s ideas developing and changing, until he began to work on his critique of political economy, finally presented in Capital.

Moreover, Marx’s critical appraisal of both mainstream economic theory and capitalism was, like all theories or discourses, a product of its time—of the economic and social structures as well as of the ideas that were prevalent when he was writing. In turn, once they were produced, Marx’s ideas participated in changing that same intellectual and social environment—as they continue to do, right up to the present.

In this chapter, we will examine some of the influences on Marx’s critique of political economy. These include the larger economic and social environment of capitalism in the middle of the nineteenth century as well as Marx’s intellectual heritage, especially the politics of utopian socialism and the philosophy of G. W. F. Hegel—in addition to classical political economy. Without having a basic sense of those moments, it is impossible to understand where Marx’s critique came from.

The task is even more germane because those influences are so different from those of our own own time, when you are reading this book. Capitalism has changed a great deal in the intervening period, and the ideas we take to be relevant today are quite different from those that influenced Marx’s work. How many of us, for example, know about or read Hegel today? Instead, in recent decades, postmodernism has been much more of an influence on contemporary interpretations of Marxian economics.

Once we have accomplished that goal, we will turn our attention to some of Marx’s most famous writings before Capital. These include such texts as The Economic and Philosophical Manuscripts of 1844 and The German Ideology, as well as the copious notebooks, the Grundrisse, Marx kept as he first started delving into classical political economy.

For a Ruthless Criticism of Everything Existing

So, where to begin? Perhaps the best place is one of the letters Marx wrote to his friend Arnold Ruge.

Marx was 25, just two years beyond completing his Doctor of Philosophy at the University of Jena. He had recently married Jenny von Westphalen—but, seeing that working in his native Germany was becoming increasingly difficult, he was already planning to leave and move to France. Police reprisals had forced Marx to resign from the editorship of Rheinische Zeitung (Renish Newspaper). During that time, Marx corresponded with Ruge, and their eight-letter exchange was eventually published in the Deutsch-Französische Jahrbücher (German-French Annals), which appeared in Paris in 1844.*

The most relevant piece of that correspondence is the letter Marx composed in September 1843, which eventually acquired the title “For a Ruthless Criticism of Everything Existing.”** With those words, Marx announced the task confronting him and other “young Hegelians” at that moment:***

the ruthless criticism of the existing order, ruthless in that it will shrink neither from its own discoveries, nor from conflict with the powers that be.

In one sense, there’s nothing remarkable about Marx’s formulation of their task. It’s part and parcel of modernity, the “tradition of no tradition,” defined by self-criticism, openness to novelty, suspicion of authority, questioning of the existing common sense, and much else. It is, in short, what modern intellectuals (including students) are supposed to do: follow ideas wherever they may go, without being afraid of their consequences or, as we say these days, of “speaking truth to power.”

In another sense, Marx formulated his project of “ruthless criticism” in a novel fashion. He ties it to socialism and communism—and therefore a radical transformation of the world. He was, even at that young age, a radical thinker and acivist.

However,

This does not mean that we shall confront the world with new doctrinaire principles and proclaim: Here is the truth, on your knees before it! It means that we shall develop for the world new principles from the existing principles of the world. We shall not say: Abandon your struggles, they are mere folly; let us provide you with true campaign-slogans. Instead, we shall simply show the world why it is struggling, and consciousness of this is a thing it must acquire whether it wishes or not.

Therefore, Marx explains, he does not believe in nor is he in favor of holding up any kind of “dogmatic banner.”

That, in a nut shell, is how Marx understands his project—a “ruthless criticism of everything existing”—which, as we will see in this chapter, passes through various stages on his way to composing the critique of political economy in Capital.

———

*The aim of this chapter is not to present the details of Marx’s life. The focus here, as in the book as a whole, is on the development of Marx’s ideas as well as their conditions and consequences. For interested readers, the classic biography is Franz Mering’s Karl Marx: The Story of His Life (published in 1918). A recent film directed by Raoul Peck, The Young Karl Marx (2017), is an excellent historical drama about Marx and his relationship to Friedrich Engels. It also emphasizes, perhaps for the first time, the important role played by their respective wives, Jenny von Westphalen and Lizzie Burns.

**Most of Marx’s texts cited in this chapter can be found in the second edition of The Marx-Engels Reader, edited by Robert C. Tucker.

***”Young Hegelians” refers to the influence on Marx of Hegel’s philosophy, which will be discussed in the next section.

Cartoon of the day

Posted: 5 May 2018 in Uncategorized
Tags: , ,

600_210077

Special mention

marx told-you-so

 

If it weren’t such a glorious summer day here on the mountain, I’d be reading and writing about a variety of things, such as. . .

The success of “Sweeney Todd: The Demon Barber of Fleet Street” in ConDem England.

The Hegelian fundamentalism of Slavoj Žižek.

How “states built on exploitation inevitably fail”—including the kinds of exploitation Daron Acemoglu and James Robinson don’t want to talk about.

How the Wall Street mafia holds America hostage.

How difficult it is to dramatize the Second Great Depression in novels.*

But it’s summertime and, at least for today, the livin’ is easy. . .

*Although I’ve decided to teach Don DeLillo’s Cosmopolis next spring.

Hegel in America

Posted: 4 October 2010 in Uncategorized
Tags: , , , ,

René Magritte, "Hegel's Holiday" (1958)

My economics students will be happy: having heard about Hegel earlier this semester, they can now read J. M. Bernstein’s column to learn about the relevance of the German philosopher’s Phenomenology of Spirit to Wall Street.

Bernstein quite rightly uses Hegel’s conception of market rationality and of the difference between motives and practical activity to identify the emptiness of bankers’ appeals to naked self-interest.

Every account of the financial crisis points to a terrifying series of structures that all have the same character: the profit-driven actions of the financial sector became increasingly detached from their function of supporting and advancing the growth of capital.  What thus emerged were patterns of action which, may have seemed to reflect the “ways of the world” but in financial terms, were as empty as those of a knight of virtue, leading to the near collapse of the system as a whole.  A system of compensation that provides huge bonuses based on short-term profits necessarily ignores the long-term interests of investors. As does a system that ignores the creditworthiness of borrowers; allows credit rating agencies to be paid by those they rate and encourages the creation of highly complex and deceptive financial instruments.  In each case, the actions — and profits — of the financial agents became insulated from both the interests of investors and the wealth-creating needs of industry.

The lesson Bernstein draws is that not only should bankers’ activities be regulated, the bankers themselves should embrace the regulations.

The problem is, Bernstein stops with Hegel and the idea that the state embodies reason. He never takes the next step: to criticize the Phenomenology and understand that, as long as the banks are allowed to maintain their control over the surplus, they will have both the incentive and the means to overcome the regulations imposed on them. They did it before, leading up to the current crisis—and they’ll certainly do it again.

Perhaps, then, we should take the next step and keep in mind the words of another famous German philosopher: “Hegel remarks somewhere that all great world-historic facts and personages appear, so to speak, twice. He forgot to add: the first time as tragedy, the second time as farce.” These words apply equally to Napoleon Bonaparte and his nephew as to the financial regulations created in the Great Depression and now, during the current depression.