Posts Tagged ‘Marx’

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Yesterday, in a comment on my “Culture Beyond Capitalism,” which was reposted on the Real-World Economics Review blog, “Econoclast” requested I post the entry on “Capitalism” I wrote for Keywords for American Cultural Studies.

Here, then, is the text of the pre-publication version of that entry.

Capitalism

David F. Ruccio

While the capitalist system is generally celebrated by mainstream economists, American cultural studies scholars will search in vain through their writings for actual discussions of the term “capitalism.” Instead, neoclassical and Keynesian economists refer to the “market economy” (in which individuals and private firms make decisions in decentralized markets) or just “the economy” (defined by scarce means and unlimited desires, the correct balancing of which is said to characterize all societies) (Stiglitz and Walsh 2002; Bhagwati 2003; Krugman and Wells 2004; Samuelson and Nordhaus 2004).

In contrast, discussions of the term capitalism have long occupied a central position in the vocabulary of Marxian economic theory. References to capitalism in American studies and cultural studies draw, implicitly or explicitly, on the Marxian critique of political economy: a critique of capitalism as an economic and social system, and a critique of mainstream economic theory. Karl Marx and latter-day Marxists criticize capitalism because it is based on exploitation, in the sense that capitalists appropriate and decide how to distribute the surplus labor performed by the direct producers, and because it periodically enters into crisis, imposing tremendous costs on the majority of people. They also criticize the work of mainstream economists for celebrating the existence of capitalism and for treating capitalist institutions and behaviors as corresponding to human nature (Mandel 1976; Resnick and Wolff 1987; Harvey 1989).

Much of this scholarship draws on Marx and Frederick Engels’s critique of political economy in the Manifesto of the Communist Party (1848) and the three volumes of Capital (1867, 1884, 1894). In the Manifesto, Marx and Engels compare capitalism to other forms of economic and social organization such as feudalism and slavery. What they have in common is that all are based on class exploitation, defined as one group (feudal lords, slaveowners, and capitalists) appropriating the surplus labor of another (serfs, slaves, and wage-laborers). At the same time, capitalism exhibits a distinct dynamic. For the first time in history, it “established the world market,” making it possible for the capitalist class to “nestle everywhere, settle everywhere, establish connexions everywhere” and giving “a cosmopolitan character to production and consumption in every country” (1848, 486, 487). It leads to radical and continuous changes throughout the economy and society, since, as Marx famously put it, “all that is solid melts into air” (487).

If the goal of the Manifesto was to challenge the prevailing belief that capitalism had eliminated classes and class struggles, the point of Capital was to analyze the specific conditions and consequences of the class dimensions of a society in which the capitalist mode of production prevails. Capitalism presumes that the products of labor have become commodities, in the sense that the goods and services human beings produce have both a use-value (they satisfy some social need) and an exchange-value (they can be exchanged for other commodities or money). The existence of commodity exchange, in turn, presupposes a culture congruent with the “fetishism of commodities”: a culture whereby individuals come to believe and act such that they have the freedom to buy and sell commodities; that the commodities they exchange are equal in value and that the commodity owners meet one another as equals in the marketplace; that individuals have well-defined property rights in the commodities they sell and purchase; and that they are able to calculate the ability of external objects to satisfy their needs and desires. The existence of commodity exchange is not based on the essential and universal human rationality assumed within mainstream economics from Adam Smith to the present. Nor can the cultures and identities of commodity-exchanging individuals be derived solely from economic activities and institutions. Rather, commodity exchange both presumes and constitutes particular subjectivities – forms of rationality and calculation – on the part of economic agents (Amariglio and Callari 1993).

In both the Manifesto and Capital, capitalism refers to a system in which capitalists are able to produce commodities that will, at least in principle, yield them a profit. The source of the profit is the value created by the laborers who have been forced (historically, through a process Marx referred to as “primitive accumulation,” and, socially, through capitalist institutions and cultures [1867, 871–940]) to exercise the specifically capitalist “freedom” to sell their ability to labor as a commodity. Under the assumption that all commodities (including labor power) are exchanged at their values, a surplus-value arises based on the ability of capitalists to appropriate the surplus labor performed by the wage-laborers and to realize that extra labor by selling the commodities that are produced. Struggles consequently arise over the “rate of exploitation” (the ratio of surplus-value to the value of labor power labor) and over the subsequent distributions of surplus-value (to managers, state officials, and other capitalists, who receive portions of the surplus). The keyword “capitalism” thus designates not just an economic structure, but also the conflicts, contradictions, and subjectivities inherent in that structure. Both the initial emergence and the subsequent reproduction of capitalism, if and when they occur, often lead to social dislocations and acute crises; they are also conditioned by the most varied cultures and social identities.

In the case of the United States, the last two centuries have witnessed the widening and deepening of capitalism, both domestically and internationally. Initially a market for foreign (especially British) capitalist commodities, the original thirteen colonies oversaw the establishment and growth of domestic capitalist enterprises, which sought both raw materials and markets for final goods within expanding geographical boundaries and across a heterogeneous class landscape. One result was that noncapitalist – communal, independent, slave, and feudal — producers were eventually undermined or displaced, thereby causing waves of rural peoples – men, women, and children of diverse racial and ethnic origins – to migrate to existing and newly established cities and to sell their labor power to industrial capitalists. The opening up of new domestic markets (through the determined efforts of retail merchants, advertisers, and banks), capitalist competition (which drove down the unit costs of production), and government programs (to establish a national currency and regulate trusts and working conditions) spurred further capitalist growth. The continued development of capitalist manufacturing provoked vast international migrations of laborers: initially, from Africa and Western Europe; later, and continuing to this day, from Latin America, Asia, Eastern Europe, and Africa (Dowd 1977; Duboff 1989; Amott and Matthaei 1996).

The movement of capital that accompanied the expansion of markets and the search for cheaper raw materials transformed regions outside the industrialized Northeast, including the relocation of textile mills to the South, the creation of foundries and automobile factories in the Midwest, the development of the oil industry in the Southwest, and the flourishing of capitalist agriculture and the movie industry on the West Coast. Capital was also exported to other countries to take advantage of lower wage levels and other cost advantages, thereby introducing economic and social dislocations similar to those that had occurred inside the United States. In both cases, governments, business groups, and social movements (such as trade unions, civil rights organizations, and political parties) struggled over the economic and social conditions and consequences of the new industrial capitalist investments – the boom and bust cycles of domestic economic growth; large-scale movements of populations; the formation of new social identities; and imperial interventions. The uneven development of capitalism at home and abroad has left its mark on the culture of the United States (Kaplan and Pease 1993; Jacobson 2000).

Recently, as during the Great Depression of the 1930s and many other times throughout its history, U.S. capitalism recently entered into an economic and cultural crisis. The conditions leading up to the current crisis have put new issues on the agenda of American and cultural studies – the exponential growth of inequality (Collins et al. 2008), the role of economists in creating the crisis (Grossberg 2010), the increasing importance of the financial sector (Martin 2010), the continued racialization of the housing market through subprime lending practices (Lipsitz 2011), and the heightened role of communication technologies and culture in processes of capital accumulation (Fuchs et al. 2010). The severity of the crisis has cast doubt on the legitimacy of neoliberalism and of capitalism itself (Clarke 2010).

In the analysis of this nexus of capitalism and U.S. culture, we face three major challenges that in turn open up new paths of investigation for American and cultural studies. The first concerns globalization. It is often assumed that the internationalization of the U.S. economy and society is a radically new phenomenon, something that burst on the scene in the 1980s. However, when measured in terms of movements of people (migration), goods and services (imports and exports), and money (capital inflows and outflows), the globalization of capitalism achieved, beginning in the 1980s, levels that are quite similar to those experienced almost a century earlier (Ruccio 2003). Because of these similarities and others (particularly the rise in the rate of exploitation and, with it, the increasingly unequal distribution of income and wealth), it is a mistake to describe contemporary developments as unprecedented (Phillips 2002). This is not to say that the forms of capitalist development during the two periods are the same. One of the challenges for students of American culture is to register these differences—such as the outsourcing of jobs, the growth of Wal-Mart, the spread of financial markets, the conduct of wars to protect petroleum supplies, the emergence of new media and communication technologies—without losing sight of the past.

The second challenge is to avoid treating capitalism as a purely economic system, separate from culture. The influence of capitalism on the culture industry— including the rise of a capitalist film industry and the export of U.S. culture (Miller et al. 2001; Wayne 2003)—has been widely studied and debated. What is less clear is that the capitalist economy is “saturated” by cultural meanings and identities. From this perspective, each moment of capitalism, from the existence of commodity exchange to the export of capital, is simultaneously economic and cultural. The point is not to substitute cultural studies for political economy, but to recognize—and analyze, concretely and historically—the cultural conditions of capitalism. Money, commodities, labor power, surplus-value, profits: all of these economic forms require the performance of specific, historically and socially constructed, meanings and identities. It is also important to understand the role of economic thought in influencing the development of U.S. capitalism and U.S. culture generally. These topics remain open, though a fruitful place to begin is by understanding the role that “languages of class” play in creating new class identities (Gibson-Graham et al. 2001), the complex interplay of capitalist and noncapitalist economic imaginaries (Watkins 1998), and the need to rethink the economy and economic knowledge (Grossberg 2010a).

The third potential stumbling block is the treatment of capitalism as an all-encompassing, unitary system that has colonized every social arena and region of the globe. While capitalism certainly represents a powerful project for making and remaking the world, deploying the concept of capitalism as a complete mapping of the economic and social landscape has the effect of obscuring noncapitalist forms of economic organization and cultural sense-making. “Capitalocentrism” (akin to the role played by “phallocentrism” and “logocentrism” with respect to gender and language) hides from view the diverse ways in which people in the United States and elsewhere participate in individual and collective noncapitalist economies— including barter, communal production, gift-making, and solidarity—that fall outside the practices and presumed logic of capitalism (Gibson-Graham 1996; Ruccio and Gibson-Graham 2001). On this view, U.S. culture is heterogeneous and contradictory with respect to different class structures. It contains elements that foster and reproduce capitalism and, at the same time, its noncapitalist others.

References

Amariglio, J. and A. Callari. 1993. “Marxian Value Theory and the Problem of the Subject: The Role of Commodity Fetishism.” In Fetishism as Cultural Discourse, ed. E. Apter and W. Pietz, 186-216. Ithaca: Cornell University Press.

Amott, Teresa and Julie Matthaei. 1996. Race, Gender and Work: A Multi- Cultural Economic History of Women in the United States. Rev. ed. Boston: South End Press.

Bhagwati, Jagdish. 2003. Free Trade Today. Princeton, NJ: Princeton University Press.

Clarke, J. “After Neo-Liberalism.” Cultural Studies 24 (3): 375-94.

Collins, J.; M. di Leonardis; and B. Williams, eds. 2008. New Landscapes of Inequality. Santa Fe, NM: School of Advanced Research Press.

Dowd, Douglas Fitzgerald. 1977. The Twisted Dream: Capitalist Development in the United States since 1776. 2d ed. Cambridge, MA: Winthrop Publishers.

Duboff, Richard B. 1989. Accumulation and Power: An Economic History of the United States. Armonk, NY: M.E. Sharpe.

Fuchs, C.; M. Schafranek; D. Hakken; and M. Breen. 2010. Special issue on “Capitalist crisis, communication & culture.” tripleC (cognition, communication, co-operation): Open Access Journal for a Global Sustainable Information Society 8 (2): 193-309.

Gibson-Graham, J. K. 1996. The End of Capitalism (As We Knew It): A Feminist Critique of Political Economy. Cambridge, MA: Blackwell.

Gibson-Graham, J. K.; Stephen Resnick; and Richard Wolff, eds. 2000. Class and Its Others. Minneapolis: University of Minnesota Press.

Grossberg, Lawrence. 1998. “Cultural Studies vs. Political Economy: Is Anybody Else Bored with this Debate?” In Cultural Theory and Popular Culture: A Reader, ed. John Storey, 613-24. Athens: University of Georgia Press.

 Grossberg, L. 2010a. Cultural Studies in the Future Tense. Durham, NC: Duke University Press.

———. 2010b. “Standing on a Bridge: Rescuing Economies From Economists.” Journal of Communication Inquiry 34 (4): 316-36.

Harvey, David. 1989. The Condition of Postmodernity: An Enquiry into the Origins of Cultural Change. Cambridge, MA: Blackwell.

Jacobson, Matthew Frye. 2000. Barbarian Virtues: The United States Encounters Foreign Peoples at Home and Abroad, 1876-1917. New York: Hill and Wang.

Krugman, Paul and Robin Wells. 2004. Microeconomics. New York: Worth Publishers.

Lipsitz, G. 2011. How Racism Takes Place. Philadelphia: Temple University Press.

Mandel, Ernest. 1976. Late Capitalism. Rev. ed. New York: Schocken Books.

Martin, R. 2010. “The Good, the Bad, and the Ugly.” Cultural Studies 24 (3): 418-30.

Marx, Karl. 1867-94 (1976-81). Capital: A Critique of Political Economy. 3 vols. Trans. Ben Fowkes and David Fernbach. New York: Vintage Books.

Marx, Karl and Friedrich Engels. 1848 (1976). “Manifesto of the Communist Party.” In Collected Works, vol. 6, 477-519. New York: International Publishers.

Miller, T. et al. 2001. Global Hollywood. London: British Film Institute.

Phillips, Kevin. 2002. Wealth and Democracy: A Political History of the American Rich. New York: Broadway Books.

Resnick, S. A. and R. D. Wolff. 1987. Knowledge and Class: A Marxian Critique of Political Economy. Chicago; University of Chicago Press.

Ruccio, David F. 2003. “Globalization and Imperialism,” Rethinking Marxism 15 (January): 75-94.

Ruccio, David F. and J. K. Gibson-Graham. 2001. “‘After’ Development: Reimagining Economy and Class.” In Re/presenting Class: Essays in Postmodern Political Economy, ed. J.-K. Gibson-Graham et al., 158-81. Durham: Duke University Press.

Samuelson, Paul A. and William D. Nordhaus. 2004. Economics. 18th ed. New York: McGraw-Hill/Irwin.

Stiglitz, Joseph E. and Carl E. Walsh. 2002. Economics. 3d ed. New York: W. W. Norton & Company.

Watkins, Evan. 1998. Everyday Exchanges: Marketwork and Capitalist Common Sense. Stanford: Stanford University Press.

Wayne, Michael. 2003. “Post-Fordism, Monopoly Capitalism, and Hollywood’s Media Industrial Complex.” International Journal of Cultural Studies 6 (1): 82-103.

Wright, Handel Kashope. 2001. “Larry Grossberg on the Status Quo of Cultural Studies: An Interview.” Cultural Values 5 (April): 133-62.

 

 

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There is perhaps no more cherished an idea within mainstream economics than that everyone benefits from free trade and, more generally, globalization. They represent the solution to the problem of scarcity for the world as a whole, much as free markets are celebrated as the best way of allocating scarce resources within nations. And any exceptions to free markets, whether national or international, need to be criticized and opposed at every turn.

That celebration of capitalist globalization, as Nikil Saval explains, has been the common sense that mainstream economists, both liberal and conservative, have adhered to and disseminated, in their research, teaching, and policy advice, for many decades.

Today, of course, that common sense has been challenged—during the Second Great Depression, in the Brexit vote, during the course of the electoral campaigns of Bernie Sanders and Donald Trump—and economic elites, establishment politicians, and mainstream economists have been quick to issue dire warnings about the perils of disrupting the forces of globalization.

I have my own criticisms of Saval’s discussion of the rise and fall of the idea of globalization, especially his complete overlooking of the long tradition of globalization critics, especially on the Left, who have emphasized the dirty, violent, unequalizing underside of colonialism, neocolonialism, and imperialism.*

However, as a survey of the role of globalization within mainstream economics, Saval’s essay is well worth a careful read.

In particular, Saval points out that, in the heyday of the globalization consensus, Dani Rodrick was one of the few mainstream economists who had the temerity to question its merits in public.

And who was one of the leading defenders of the idea that globalization had to be celebrated and it critics treated with derision? None other than Paul Krugman.

Paul Krugman, who would win the Nobel prize in 2008 for his earlier work in trade theory and economic geography, privately warned Rodrik that his work would give “ammunition to the barbarians”.

It was a tacit acknowledgment that pro-globalisation economists, journalists and politicians had come under growing pressure from a new movement on the left, who were raising concerns very similar to Rodrik’s. Over the course of the 1990s, an unwieldy international coalition had begun to contest the notion that globalisation was good. Called “anti-globalisation” by the media, and the “alter-globalisation” or “global justice” movement by its participants, it tried to draw attention to the devastating effect that free trade policies were having, especially in the developing world, where globalisation was supposed to be having its most beneficial effect. This was a time when figures such as the New York Times columnist Thomas Friedman had given the topic a glitzy prominence by documenting his time among what he gratingly called “globalutionaries”: chatting amiably with the CEO of Monsanto one day, gawking at lingerie manufacturers in Sri Lanka the next. Activists were intent on showing a much darker picture, revealing how the record of globalisation consisted mostly of farmers pushed off their land and the rampant proliferation of sweatshops. They also implicated the highest world bodies in their critique: the G7, World Bank and IMF. In 1999, the movement reached a high point when a unique coalition of trade unions and environmentalists managed to shut down the meeting of the World Trade Organization in Seattle.

In a state of panic, economists responded with a flood of columns and books that defended the necessity of a more open global market economy, in tones ranging from grandiose to sarcastic. In January 2000, Krugman used his first piece as a New York Times columnist to denounce the “trashing” of the WTO, calling it “a sad irony that the cause that has finally awakened the long-dormant American left is that of – yes! – denying opportunity to third-world workers”.

The irony is that Krugman won the Nobel Prize in Economics in recognition of his research and publications that called into question the neoclassical idea that countries engaged in and benefited from international trade based on given—exogenous—resource endowments and technologies. Instead, Krugman argued, those endowments and technologies were created historically and could be changed by government policies, including histories and policies that run counter to free trade and globalization.

Krugman was thus the one who gave theoretical “ammunition to the barbarians.” But that was the key: he considered the critics of globalization—the alter-globalization activists, heterodox economists, and many others—”barbarians.” For Krugman, they were and should remain outside the gates because, in his view, they were not trained in or respectful of the protocols of mainstream economics. The “barbarians” could not be trusted to understand or adhere to the ways mainstream economists like Krugman analyzed the exceptions to the common sense of globalization. They might get out of control and develop other arguments and economic institutions.

But then the winds began to shift.

In the wake of the financial crisis, the cracks began to show in the consensus on globalisation, to the point that, today, there may no longer be a consensus. Economists who were once ardent proponents of globalisation have become some of its most prominent critics. Erstwhile supporters now concede, at least in part, that it has produced inequality, unemployment and downward pressure on wages. Nuances and criticisms that economists only used to raise in private seminars are finally coming out in the open.

A few months before the financial crisis hit, Krugman was already confessing to a “guilty conscience”. In the 1990s, he had been very influential in arguing that global trade with poor countries had only a small effect on workers’ wages in rich countries. By 2008, he was having doubts: the data seemed to suggest that the effect was much larger than he had suspected.

And yet, as Saval points out, mainstream economists’ recognition of the unequalizing effects of capitalist globalization has come too late: “much of the damage done by globalisation—economic and political—is irreversible.”

The damage is, of course, only irreversible within the existing economic institutions. Imagining and enacting a radically different way of organizing the economy would undo that damage and benefit those who have been forced to have the freedom to submit to the forces of capitalist globalization.

But Rodrik and Krugman—and mainstream economists generally—don’t seem to be interested in participating in that project, which would give the “barbarians” a say in creating a different kind of globalization, beyond capitalism.

 

*Back in 2000—and in a series of articles, book chapters, and blog posts since then—I have attempted to rethink the relationship between capitalist globalization and imperialism. Marxist economist Prabhat Patnaik has also made the case for the continuing relevance of imperialism as an analytical construct for understanding and challenging effectively the logic and dynamics of contemporary capitalism.

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Special mention

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Mainstream economists have been taking quite a beating in recent years. They failed, in the first instance, with respect to the spectacular crash of 2007-08. Not only did they not predict the crash, they didn’t even include the possibility of such an event in their models. Nor, of course, did they have much to offer in terms of explanations of why it occurred or appropriate policies once it did happen.

More recently, the advice of mainstream economists has been questioned and subsequently ignored—for example, in the Brexit vote and the support for Donald Trump’s attacks on free trade during the U.S. presidential campaign. And, of course, mainstream economists’ commitment to free markets has been held responsible for delaying effective solutions to a wide variety of other economic and social problems, from climate change and healthcare to minimum wages and inequality.

All of those criticisms—and more—are richly deserved.

So, I am generally sympathetic to John Rapley’s attack on the “economic priesthood.”

Although Britain has an established church, few of us today pay it much mind. We follow an even more powerful religion, around which we have oriented our lives: economics. Think about it. Economics offers a comprehensive doctrine with a moral code promising adherents salvation in this world; an ideology so compelling that the faithful remake whole societies to conform to its demands. It has its gnostics, mystics and magicians who conjure money out of thin air, using spells such as “derivative” or “structured investment vehicle”. And, like the old religions it has displaced, it has its prophets, reformists, moralists and above all, its high priests who uphold orthodoxy in the face of heresy.

Over time, successive economists slid into the role we had removed from the churchmen: giving us guidance on how to reach a promised land of material abundance and endless contentment.

However, in my view, there are three problems in Rapley’s discussion of contemporary economics.

First, Rapley refers to economics as if there were only one approach. Much of what he writes does in fact pertain to mainstream economics. But there are many other approaches and theories within economics that cannot be accused of the same problems and mistakes.

Rapley’s not alone in this. Many commentators, both inside and outside the discipline of economics, refer to economics in the singular—as if it comprised only one set of approaches and theories. What they overlook or forget it about are all the ways of doing and thinking about economics—Marxian, radical, feminist, post Keynesian, ecological, institutionalist, and so on—that represent significant criticisms of and departures from mainstream economics.

In Rapley’s language, mainstream neoclassical and Keynesian economists have long served as the high priests of economists but there are many others—heretics of one sort or another—who have degrees in economics and work as economists but whose views, methods, and policies diverge substantially from the teachings of mainstream economics.

Second, Rapley counterposes the religion of mainstream economics from what he considers to be “real” science—of the sort practiced in physics, chemistry, biology, and so on. But here we encounter a second problem: a fantasy of how those other sciences work.

The progress of science is generally linear. As new research confirms or replaces existing theories, one generation builds upon the next.

That’s certainly the positivist view of science, perhaps best represented in Paul Samuelson’s declaration that “Funeral by funeral, economics does make progress.” But in recent decades, the history and philosophy of science have moved on—both challenging the linear view of science and providing alternative narratives. I’m thinking, for example, of Thomas Kuhn’s “scientific revolutions,” Paul Feyerabend’s critique of falsificationism, Michel Foucault’s “epistemes,” and Richard Rorty’s antifoundationalism. All of them, in different ways, disrupt the idea that the natural sciences develop in a smooth, linear manner.

So, it’s not that science is science and economics falls short. It’s that science itself does not fit the mold that traditionally had been cast for it.

My third and final point is that Rapley, with a powerful metaphor of a priesthood, doesn’t do enough with it. Yes, he correctly understands that mainstream economists often behave like priests, by “deducing laws from premises deemed eternal and beyond question” and so on. But historically priests served another role—by celebrating and sanctifying the existing social order.

Religious priests occupied exactly that role under feudalism: they developed and disseminated a discourse according to which the natural order consisted of lords at the top and serfs at the bottom, each of whom received their just deserts. Much the same was true under slavery, which was deemed acceptable within church teachings and perhaps even an opportunity to liberate slaves from their savage-like ways. (And, in both cases, if those at the bottom were dissatisfied with their lot in life, they would have to exercise patience and await the afterlife.)

Economic priests operate in which the same way today, celebrating an economic system based on private property and free markets as the natural order, in which everyone benefits when the masses of people are forced to have the freedom to sell their ability to work to a small group of employers at the top. And there simply is no alternative, at least in this world.

So, on that score, contemporary mainstream economists do operate like a priesthood, producing and disseminating a narrative—in the classroom, research journals, and the public sphere—according to which the existing economic system is the only effective way of solving the problem of scarcity. The continued existence of that economic system then serves to justify the priesthood and its teachings.

However, just as with other priesthoods and economic systems, today there are plenty of economic heretics, who hold beliefs that run counter to established dogma. Their goal is not to take over the existing religion, or even set up an alternative religion, but to create the economic and social conditions within which their own preferred theories no longer have any relevance.

Today’s economic heretics are thus the ultimate grave-diggers.

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Mark Tansey, “Duet” (2004)

There are plenty of reasons why contemporary libertarians might want to read Karl Marx—and at least one reason why they wouldn’t.

Chris Dillow suggests libertarians “would be surprised by a lot of Marx” and offers three reasons why they should read him.

One is that Marx saw economics as a historical process.

One implication of this for libertarians is that they must ask: what material economic basis would make our ideas more popular? I’d argue that one such basis is greater equality, as this would diminish demands for statist regulation.

A second is Marx’s view of the relationship between property rights and technical progress.

This might speak to our current secular stagnation. Why are productivity growth and capital spending so weak? Might one reason be that the fear of future losses from competition is deterring investment? Or that excessively tight intellectual property laws are restricting innovation? Marx poses the question: how should property rights alter to foster growth? This surely should interest libertarians.

The third reason lies in Marx’s attitudes about the expansion of the realm of freedom.

Marx’s main gripe with capitalism wasn’t so much that it was unfair but that it thwarted our freedom to develop our human potential. Work, instead of being a source of self-expression, is oppressive and alienating under capitalism.

According to Dillow, libertarians should read Marx because, in all three cases, he poses some questions to them that should sharpen their thinking.

I agree.* But, as I explained back in 2012, there’s at least one reason why Marx would infuriate libertarian readers—because of their sense of the right of private individuals to do what they like on and with their property.

Marx, in chapter 6 of volume 1 of Capital, presents an analysis of private power to which libertarians are—and, I suspect, always will be—blind:

This sphere that we are deserting, within whose boundaries the sale and purchase of labour-power goes on, is in fact a very Eden of the innate rights of man. There alone rule Freedom, Equality, Property and Bentham. Freedom, because both buyer and seller of a commodity, say of labour-power, are constrained only by their own free will. They contract as free agents, and the agreement they come to, is but the form in which they give legal expression to their common will. Equality, because each enters into relation with the other, as with a simple owner of commodities, and they exchange equivalent for equivalent. Property, because each disposes only of what is his own. And Bentham, because each looks only to himself. The only force that brings them together and puts them in relation with each other, is the selfishness, the gain and the private interests of each. Each looks to himself only, and no one troubles himself about the rest, and just because they do so, do they all, in accordance with the pre-established harmony of things, or under the auspices of an all-shrewd providence, work together to their mutual advantage, for the common weal and in the interest of all.

On leaving this sphere of simple circulation or of exchange of commodities, which furnishes the “Free-trader Vulgaris” with his views and ideas, and with the standard by which he judges a society based on capital and wages, we think we can perceive a change in the physiognomy of our dramatis personae. He, who before was the money-owner, now strides in front as capitalist; the possessor of labour-power follows as his labourer. The one with an air of importance, smirking, intent on business; the other, timid and holding back, like one who is bringing his own hide to market and has nothing to expect but — a hiding.

 

*Although I can’t agree with Dillow’s suggestion that readers should start volume 1 of Capital at chapter 10, and turn to the first nine chapters last. In my view, readers should begin with the first three chapters, on the commodity, where Marx presents the initial steps in his critique of political economy. In fact, every time I teach Capital, I run the risk of rushing through the remaining material precisely because I find so much to present to contemporary students about commodities and markets in that first section.

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Finally, after years of near-orgiastic celebrations of the internet of things—including, of course, Jeremy Rifkin’s extravagant claim that it would move us beyond capitalism and usher in the “democratization of economic life”—commentators are beginning to question some of its key assumptions and effects. What they have discovered is that the internet of things is, “in reality, a very queer thing, abounding in metaphysical subtleties and theological niceties.”

Nathan Heller, for example, finds that, while the gig economy can make life easier and more financially rewarding for many “creative, affluent professionals,” it often has negative effects on those who do the actual work:

A service like Uber benefits the rider, who’s saving on the taxi fare she might otherwise pay, but makes drivers’ earnings less stable. Airbnb has made travel more affordable for people who wince at the bill of a decent hotel, yet it also means that tourism spending doesn’t make its way directly to the usual armies of full-time employees: housekeepers, bellhops, cooks.

On top of that, the fact that the so-called sharing economy has become a liberal beacon (including, as Heller makes clear, among many Democratic activists and strategists) has meant the displacing of “commonweal projects that used to be the pride of progressivism” by acts of individual internet-based exchange.

Perhaps even more important (or at least more unexpected and therefore more interesting), Adam Greenfield focuses on the problematic philosophical assumptions embedded in the ideology of the internet of things.

The strongest and most explicit articulation of this ideology in the definition of a smart city has been offered by the house journal of the engineering company Siemens: “Several decades from now, cities will have countless autonomous, intelligently functioning IT systems that will have perfect knowledge of users’ habits and energy consumption, and provide optimum service … The goal of such a city is to optimally regulate and control resources by means of autonomous IT systems.”

There is a clear philosophical position, even a worldview, behind all of this: that the world is in principle perfectly knowable, its contents enumerable and their relations capable of being meaningfully encoded in a technical system, without bias or distortion. As applied to the affairs of cities, this is effectively an argument that there is one and only one correct solution to each identified need; that this solution can be arrived at algorithmically, via the operations of a technical system furnished with the proper inputs; and that this solution is something that can be encoded in public policy, without distortion. (Left unstated, but strongly implicit, is the presumption that whatever policies are arrived at in this way will be applied transparently, dispassionately and in a manner free from politics.)

As Greenfield explains, “Every aspect of this argument is questionable,” starting with the idea that everything—from users’ habits to energy consumption— is perfectly knowable.

Because that’s the promise of the internet of things (including the gig economy): that what individuals want and do and how the system itself operates can be correctly monitored and measured—and the resulting information utilized to “provide optimum service.” The presumption is there are no inherent biases in the monitoring and measuring, and no need for collective deliberation about how to solve individual and social problems.

The ideology of the internet of things is shorn of everything we’ve learned about both epistemology (that knowledges are constructed, and different standpoints participate in constructing those knowledges differently) and economic and social life (that the different ways the surplus is produced and distributed affect not only the economy but also the larger social order).

It seems the conventional ways of thinking about the internet of things are merely an extension of mainstream economists’ ways of theorizing the world of commodity exchange, allowing a definite social relation to assume the fantastic form of a relation between things.

That’s where metaphysics and theology leave off and the critique of political economy begins.

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CEO salaries continue to soar—last year reaching a ratio to average-worker pay of 347 to 1.

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While the profits of U.S. corporations have reached historic highs.

But corporate CEOs and boards of directors still want more—more deregulation, more tax cuts. And, as Matthew Goldstein explains, since his inauguration Donald Trump has met with hundreds of executives, including at least 41 of last year’s 200 best-paid CEOs.

Back in 1848, it was already clear that

The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.