Posts Tagged ‘working-class’

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Special mention

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From the beginning, mainstream macroeconomics has been a battleground between the visible and the invisible hand.

Keynesian macroeconomics, represented on the left-hand side of the chart above, has an aggregate supply curve with a long horizontal section at levels of output (Y or real GDP) below full employment (Yfe). What this means is that the aggregate demand determines the actual level of output, which can be and often is at less than full employment (e.g., when AD falls from AD1 to AD2, output to Y1, and prices to P2), with no necessary tendency to return to full employment and price stability. Therefore, according to Keynesian economists, the visible hand of government needs to step in and, through a combination of fiscal and monetary policy, move the economy toward full employment (at Yfe) and stable prices (at P1).

Neoclassical macroeconomists, like their classical predecessors, have a very different view of the macroeconomy, which is represented on the right-hand side of the chart. They start with a vertical aggregate supply curve at a level of output corresponding to full employment. Therefore, according to their theory—often referred to as Say’s Law or “supply creates its own demand”—aggregate demand does not determine the level of output; instead, it determines only the price level. Thus, for example, if aggregate demand falls (e.g., from AD1 to AD2), output does not change (it remains at Yfe)—only the price level falls (from P1 to P2). On the neoclassical view, the invisible hand of the market maintains full employment (through the labor market) and reverses price deflation (through the so-called real-balance effect) by boosting aggregate demand (back to AD1 from AD2).

Anyone who has read or heard the intense debates concerning capitalism’s recurrent crises, recently and going back to the 1930s, knows that there are significant theoretical and policy differences between Keynesian and neoclassical macroeconomists. For example, Keynesians focus on uncertainty (especially the uncertain knowledge of investors) and the important role of government (especially fiscal) policy, while neoclassicals emphasize the supply side (especially the role of correct “factor prices,” particularly wages) and the necessity of getting government out of the way of markets (relying, instead, on rules-driven monetary policy).*

But there are equally significant similarities between the two approaches. For example, both Keynesian and neoclassical economists tend to blame economic downturns on exogenous events. There is nothing in either theory that recognizes capitalism’s inherent instability. Instead, mainstream macroeconomists of both stripes direct their attention to equilibrium outcomes—of less-than-full employment in the case of Keynesians, of full employment for neoclassicals—such that only something outside the model can shift the underlying variables and cause the economy to move away from equilibrium. That’s why neither group was able to foresee the crash of 2007-08, let alone the other eighteen recessions and depressions that have haunted capitalism during the past century. Their theories literally don’t include the possibility, endogenously created, of capitalism’s ongoing crises.

There’s another, perhaps even more important, similarity I want to draw attention to here: their shared utopianism. The premise and promise of both Keynesian and neoclassical macroeconomics is that, with the appropriate institutions and policies, capitalism can be characterized by and should be celebrated for achieving full employment and price stability. Those are the shared goals of the two theories. And their criteria of success. Thus, each group of macroeconomists is able to claim a position of expertise when the actual performance of the economy achieves, or at least moves closer and closer to, a utopia characterized by levels of output and a price level that corresponds to full employment and price stability.

It is precisely in this sense that the economic utopianism of mainstream macroeconomics conditions and is conditioned by an epistemological utopianism. Because they know how the macroeconomy works—because of their theoretical and modeling certainty—both Keynesian and neoclassical macroeconomists claim for themselves the mantle of scientific superiority. These are the lords of macroeconomic policy, domestically and internationally, moving back and forth among their positions as academics, corporate advisers, and policy experts. Hence the persistent claim on both sides that, if only the politicians and policymakers listened to them and adopted the correct economic policies, everything would be fine. Not to mention the ongoing complaints, again on the part of both groups of mainstream macroeconomists, that their advice has been ignored.

That, of course, is where the critique of mainstream macroeconomics begins—with a radically different utopian horizon. When the explanations and policies of either side are said to have failed, there’s a shift to the opposing viewpoint. Thus, for example, neoclassical macroeconomics held sway (in the United States and elsewhere) in the run-up to the crash of 2007-08—just as it had in the years preceding the first Great Depression. Leading macroeconomists and their students had moved away from and largely ignored anything that had to do with Keynesian macroeconomics (including, most notably, Hyman Minsky’s writings on financial instability). Then, of course, the tables were turned and at least some mainstream macroeconomists went back and discovered (many for the first time) the theories and policies associated with the Keynesian tradition.

It’s a familiar back-and-forth pendulum swing that we’ve seen in many other countries, in other times. From neoclassical free markets and deregulation to government stimulus and one or another form of reregulation—and back again. But we also need to recognize that the failures of mainstream macroeconomics, when examined from an alternative perspective, have actually succeeded. As I wrote back in 2010, the failure of neoclassical macroeconomists were apparent to many: they

failed to see the onset of the current crises; they have had little to offer in terms of understanding how the crises occurred even after the fact; and they certainly haven’t had much in the way of good policy advice to solve the problems of unemployment, poverty, and inequality. . .

On another level, mainstream economists have succeeded. Not only have they maintained their hegemony within the discipline; their models and policy advice have kept the discussion confined to tinkering with the existing set of capitalist institutions. In terms of policy: a bail-out of Wall Street and a mild set of financial reforms, a small stimulus program, and an expansionary monetary policy. And intellectually: a rediscovery of Keynes and an allowance of behavioral approaches to finance. They haven’t proposed even the public works programs and financial reorganization of the New Deal, let alone an honest debate about capitalism itself.

In this sense, the continued failure of mainstream economists has become a success for capitalism.

That’s why we need to question the shared utopianism of the two sides of mainstream macroeconomics. What has gone missing from much of the current debate, even outside the mainstream, is that full employment and price stability are consistent with the worst abuses of contemporary capitalism. As David Leonhardt recently explained,

The headlines may talk about growth, but we are living in a dark economic era. For most families, income and wealth have stagnated in recent decades, barely keeping pace with inflation. Nearly all the bounty of the economy’s growth has flowed to the affluent.

And if you somehow doubt the economic data, it’s worth looking at the many other alarming signs. “Deaths of despair” have surged. For Americans without a bachelor’s degree, one social indicator after another — obesity, family structure, life expectancy — has deteriorated.

There has been no period since the Great Depression with this sort of stagnation. It is the defining problem of our age, the one that aggravates every other problem. It has made people anxious and angry. It has served as kindling for bigotry. It is undermining America’s vaunted optimism.

In fact, an even stronger argument can be made: the various attempts to move the economy toward full employment and price stability have created the conditions whereby capitalism has both broadened and deepened its presence and made the lives of the vast majority of people even more unstable and insecure.

The utopianism of mainstream macroeconomics represents a dystopia for “most families” attempting to survive within contemporary capitalism.

What’s left then is a critique of the assumptions and consequences of mainstream macroeconomics—of both neoclassical and Keynesian economic theories. The goal is not just to tinker with the theories (e.g., by bringing finance into the discussion) or the policies (such as technocratic changes to the tax code and raising the level of productivity). Recognizing how narrow the existing discourse has become means we need to question the entire edifice of mainstream macroeconomics, including its utopian promise of full employment and price stability.

Only then can we begin to recognize how bad things have gotten under both the successes and failures of mainstream macroeconomics and to imagine and invent a radically different set of economic institutions.

That’s the only utopian horizon currently worth pursuing.

 

*Throughout I refer to two groups of Keynesian and neoclassical macroeconomists. But, of course, both theories have changed over time. Today, the two opposing sides of mainstream macroeconomics are constituted by new Keynesian and new classical theories, with increased attention to the “microfoundations” of macroeconomics. The former emphasizes market imperfections (such as price stickiness and imperfect competition), while the latter dismisses the relevance of market imperfections (and emphasizes, instead, flexible prices and rational expectations). And then, of course, there’s the ever-shifting middle ground, which is the basis of a macroeconomics according to which new Keynesian and new classical are both valid, at different points in the business cycle. Like the earlier neoclassical synthesis, the middle ground of “new consensus macroeconomics” is the approach presented to most students of economics.

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The economic crises that came to a head in 2008 and the massive response—by the U.S. government and corporations themselves—reshaped the world we live in.* Although sectors of the U.S. economy are still in one of their longest expansions, most people recognize that the recovery has been profoundly uneven and the economic gains have not been fairly distributed.

The question is, what has changed—and, equally significant, what hasn’t—during the past decade?

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Let’s start with U.S. stock markets, which over the course of less than 18 months, from October 2007 to March 2009, dropped by more than half. And since then? As is clear from the chart above, stocks (as measured by the Dow Jones Composite Average) have rebounded spectacularly, quadrupling in value (until the most recent sell-off). One of the reasons behind the extraordinary bull market has been monetary policy, which through normal means and extraordinary measures has transferred debt and put a great deal of inexpensive money in the hands of banks, corporations, and wealth investors.

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The other major reason is that corporate profits have recovered, also in spectacular fashion. As illustrated in the chart above, corporate profits (before tax, without adjustments) have climbed almost 250 percent from their low in the third quarter of 2008. Profits are, of course, a signal to investors that their stocks will likely rise in value. Moreover, increased profits allow corporations themselves to buy back a portion of their stocks. Finally, wealthy individuals, who have managed to capture a large share of the growing surplus appropriated by corporations, have had a growing mountain of cash to speculate on stocks.

Clearly, the United States has experienced a profit-led recovery during the past decade, which is both a cause and a consequence of the stock-market bubble.

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The crash and the Second Great Depression, characterized by the much-publicized failures of large financial institutions such as Bear Stearns and Lehman Brothers, raised a number of concerns about the rise in U.S. bank asset concentration that started in the 1990s. Today, as can be seen in the chart above, those concentration ratios (the 3-bank ratio in purple, the 5-bank ratio in green) are even higher. The top three are JPMorgan Chase (which acquired Bear Stearns and Washington Mutual), Bank of America (which purchased Merrill Lynch), and Wells Fargo (which took over Wachovia, North Coast Surety Insurance Services, and Merlin Securities), followed by Citigroup (which has managed to survive both a partial nationalization and a series of failed stress tests), and Goldman Sachs (which managed to borrow heavily, on the order of $782 billion in 2008 and 2009, from the Federal Reserve). At the end of 2015 (the last year for which data are available), the 5 largest “Too Big to Fail” banks held nearly half (46.5 percent) of the total of U.S. bank assets.

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Moreover, in the Trump administration as in the previous two, the revolving door between Wall Street and the entities in the federal government that are supposed to regulate Wall Street continues to spin. And spin. And spin.

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As for everyone else, they’ve barely seen a recovery. Real median household income in 2016 was only 1.5 percent higher than it was before the crash, in 2007.

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That’s because, even though the underemployment rate (the annual average rate of unemployed workers, marginally attached workers, and workers employed part-time for economic reasons as a percentage of the civilian labor force plus marginally attached workers, the blue line in the chart) has fallen in the past ten years, it is still very high—9.6 percent in 2016. In addition, the share of low-wage jobs (the percentage of jobs in occupations with median annual pay below the poverty threshold for a family of four, the orange line) remains stubbornly elevated (at 23.3 percent) and the wage share of national income (the green line) is still less than what it was in 2009 (at 43 percent)—and far below its postwar high (of 50.9 percent, in 1969).

Clearly, the recovery that corporations, Wall Street, and owners of stocks have engineered and enjoyed during the past 10 years has largely bypassed American workers.

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One of the consequences of the lopsided recovery is that the distribution of income—already obscenely unequal prior to the crash—has continued to worsen. By 2014 (the last year for which data are available), the share of pretax national income going to the top 1 percent had risen to 20.2 percent (from 19.9 percent in 2007), while that of the bottom 90 percent had fallen to 53 percent (from 54.2 percent in 2007). In other words, the rising income share of the top 1 percent mirrors the declining share of the bottom 90 percent of the distribution.

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The distribution of wealth in the United States is even more unequal. The top 1 percent held 38.6 percent of total household wealth in 2016, up from 33.7 percent in 2007, that of the next 9 percent more or less stable at 38.5 percent, while that of the bottom 90 percent had shrunk even further, from 28.6 percent to 22.8 percent.

So, back to my original question: what has—and has not—changed over the course of the past decade?

One area of the economy has clearly rebounded. Through their own efforts and with considerable help from the government, the stock market, corporate profits, Wall Street, and the income and wealth of the top 1 percent have all recovered from the crash. It’s certainly been their kind of recovery.

And they’ve recovered in large part because everyone else has been left behind. The vast majority of people, the American working-class, those who produce but don’t appropriate the surplus: they’ve been forced, within desperate and distressed circumstances, to shoulder the burden of a recovery they’ve had no say in directing and from which they’ve been mostly excluded.

The problem is, that makes the current recovery no different from the run-up to the crash itself—grotesque levels of inequality that fueled the bloated profits on both Main Street and Wall Street and a series of speculative asset bubbles. And the current recovery, far from correcting those tendencies, has made them even more obscene.

Thus, ten years on, U.S. capitalism has created the conditions for renewed instability and another, dramatic crash.

 

*In a post last year, I called into question any attempt to precisely date the beginning of the crises.

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For the first time in American history, students in more than half of all U.S. states are paying more in tuition to attend public colleges or universities than the government contributes.

The privatization of public education has been under way for decades but this inflection point was hastened by deep cuts states made to their higher-education appropriations in the midst of the Second Great Depression.

For the United States as a whole, according to a new report from the State Higher Education Executive Officers Association, students and their families were forced to come up with almost half (46.2 percent) of total educational revenue for public colleges and universities in 2017. They had to pay only 28.8 percent of the total in 1992, a share that had risen to 36.2 percent in 2007.

Increasingly, public higher education in the United States is public in name only.

And the privatization of the public educational system is costing the American working-class dearly. In 2016, net tuition for one student (full-time equivalent) came to 10.9 percent of median household income. That’s almost double what it was in 1992: 5.7 percent. Even as recently as 2007, it was only 7.9 percent.

While public financing for higher education has improved in recent years, the overall trend of less public support and students having to shoulder more of the burden continues.

After the crash of 2007-08, educational appropriations dropped 24 percent over four years, to $6,525 in 2012. This was largely due to accelerating enrollment growth (especially in community colleges) and the lack of proportional funding increases. Reversing this decline, appropriations have now increased for five straight years: 2.0 percent in 2013, 4.9 percent in 2014, 5.0 percent in 2015, 1.6 percent in 2016, and 2.5 percent in 2017. However, in 2017 states appropriated almost $2,000 less per student than they did in 2001, and $1,000 less than before the crash.

The same question applies today as when I wrote about the problem of higher education back in 2016:

What’s the American working-class to do? The same as in many other rich countries: demand free higher education for all high-school graduates who want to attend an in-state public college or university (and, while they’re at it, forgiveness for the student debts they’ve been forced to take on in order to attend increasingly out-of-reach public colleges and universities).

 

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Millennials may be the largest, best educated, and most diverse generation in U.S. history. But they’re also generation screwed. As a result, they’re more likely than their elders to think of themselves as working-class and less likely to identify as middle-class.

The large downshift in class identity among young adults is explained by the fact that they are being left behind—with lower earnings, fewer jobs, more part-time employment, and a higher unemployment rate than any other generation in the postwar period.

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And while it is true that recent college graduates make more than young workers with a high-school diploma, the annual real wages of both groups have declined since 2009.

So, it should come as no shock that most Millennials have nothing saved for retirement, and those who are saving can’t save nearly enough.

According to the National Institute on Retirement Security, in research that was recently reported by CNN, two-thirds of working Millennials have not been able to save anything for their retirement. That’s true even though two-thirds of Millennials work for an employer that offers an employer-sponsored retirement plan. But they’re often not eligible, because they work part-time or have too little time in their current job—and, if they are eligible, their low pay and high indebtedness make it impossible to set aside anything for retirement savings.

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The fact that Millennials aren’t following the recommendations of financial and retirement experts has a lot of people worried. But Keith Spencer [ht: ja] presents a much more hopeful perspective: many millennials honestly don’t see a future for capitalism.

The idea that we millennials’ only hope for retirement is the end of capitalism or the end of the world is actually quite common sentiment among the millennial left. . .

Older generations, and even millennials who are better off and who have managed to achieve a sort of petit-bourgeois freedom, might find this sentiment unimaginable, even abhorrent. And yet, in studying the reaction to the CNN piece and reaching out to millennials who had responded to it, I was astounded not only at how many young people shared [Holly] Wood’s feelings, but how frequently our expectations for the future aligned. Many millennials expressed to me their interest in creating self-sustaining communities as their only hope for survival in old age; a lack of faith that capitalism as we know it would exist by retirement age; and that alternating climate crises, concentrations of wealth, and privatization of social welfare programs would doom their chance at survival.

Creating a world in which individual retirement savings are made irrelevant is a kind of real talk from Millennials that makes a helluva lot more sense than the constant barrage of so-called expert advice to educate “Millennials about the value of retirement savings and how employer-sponsored retirement plans and employer matches work.”

In fact, socialism may be the best way “to improve the retirement preparedness of America’s largest generation.”

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Special mention

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NEWSWEEK FEB. 16 COVER

Just nine years ago, in the midst of the Second Great Depression, Newsweek declared that “we are all socialists now.”

Now, it’s true, editor-in-chief Jon Meacham demonstrated little understanding of the term socialism, identifying it simply with more government spending and regulation in a capitalist economy—something akin to “a modern European state.”

This is not to say that berets will be all the rage this spring, or that Obama has promised a croissant in every toaster oven. But the simple fact of the matter is that the political conversation, which shifts from time to time, has shifted anew, and for the foreseeable future Americans will be more engaged with questions about how to manage a mixed economy than about whether we should have one.

And that may be what millions of Americans—especially young Americans—think of when they express a favorable image of socialism. But I suspect there’s something more to it, and that their interest in socialism also includes a desire for less inequality and more fairness in economic and social outcomes and support for proposals that others (including probably Meacham himself) consider utopian: universal healthcare, free public higher education, large increases in workers’ wages, a guaranteed basic income for all, and so on.

But that still leaves us a large step removed from—and frankly far behind—the trenchant criticisms and ambitious projects of the utopian socialists of the late-eighteenth and early-nineteen centuries. I’m thinking of such figures as Henri de Saint-Simon, Charles Fourier, and Robert Owen. They sought both to radically remake people’s understanding of how human beings and social relations operate and to transform society itself by designing new economic and social institutions, all in an attempt to improve the condition of the working-classes of the time. They criticized everything, from private property and the structure of the family to the role of money and the degradation of workers being forced to submit to their employers and then sought to correct those problems—not just by promoting more government involvement, but by imagining and implementing radically different ways of organizing economic and social life.

There is a great deal to admire, then, in the ambitious theoretical and practical work of that first generation of utopian socialists. And yet today, utopian is a label that is invoked to dismiss any and all suggestions that things could be radically different—that socialism, however defined (beyond, of course, Meacham’s restrictive conception), is simply a pipe dream.

Unfortunately, people continue to hold to the idea that Marx and Engels, still the most important source for contemporary socialist thinking, likewise dismissed the ideas of the utopian socialists as unattainable or fanciful hopes or schemes. Yet, nothing could be further from the truth.

The main source of that view is, of course, the Communist Manifesto—specifically, chapter 3 on “socialist and communist literature.” There, Marx and Engels do in fact refer to “castles in the air” and the “fanatical and superstitious belief in the miraculous effects of their social science.” But they’re only talking about the disciples of the utopian socialists, those who in the middle of the nineteenth century continued to “hold fast by the original views of their masters,” because from the perspective of Marx and Engels they attempted “to deaden the class struggle and to reconcile the class antagonisms.”

But the authors of the Manifesto held a much more positive view of the writings of Saint-Simon, Fourier, and Owen. Marx and Engels credited them with attacking “every principle of existing society.”

Hence, they are full of the most valuable materials for the enlightenment of the working class.

They used the utopian label to refer to the practical measures proposed by the early socialists—”such as the abolition of the distinction between town and country, of the family, of the carrying on of industries for the account of private individuals, and of the wage system, the proclamation of social harmony, the conversion of the function of the state into a more superintendence of production”—that did not lead to “political action on the part of the working-class,” which by the mid-nineteenth century was beginning to take place.

The voluminous writings of Marx and especially Engels include many other discussions of the utopian socialists, many of them much more flattering than in the polemical Manifesto.

For example, Engels, of scientific socialism renown, wrote a series of articles on the development of radical social movements on the continent, between 1842 and 1844 in, of all places, Robert Owen’s periodical The New Moral World. They include this paragraph on Fourier:

Nearly at the same time with Saint-Simon, another man directed the activity of his mighty intellect to the social state of mankind — Fourier. Although Fourier’s writings do not display those bright sparks of genius which we find in Saint-Simon’s and some of his disciples; although his style is hard, and shows, to a considerable extent, the toil with which the author is always labouring to bring out his ideas, and to speak out things for which no words are provided in the French language — nevertheless, we read his works with greater pleasure; and find more real value in them, than in those of the preceding school. . .It was Fourier, who, for the first time, established the great axiom of social philosophy, that every individual having an inclination or predilection for some particular kind of work, the sum of all these inclinations of all individuals must be, upon the whole, an adequate power for providing for the wants of all. From this principle, it follows, that if every individual is left to his own inclination, to do and to leave what he pleases, the wants of all will be provided for, without the forcible means used by the present system of society.

We also need to take into account a much later text, the three chapters of Engels’s 1878 Herr Eugen Dühring’s Revolution in Science, which were published two years later as the famous pamphlet, “Socialism: Utopian and Scientific.”

There, Engels explains the appearance of utopian socialism in the late-eighteenth and early-nineteenth centuries by the disappointment with the social and political institutions created by the “triumph of reason” of the French Revolution.

All that was wanting was the men to formulate this disappointment, and they came with the turn of the century. In 1802, Saint-Simon’s Geneva letters appeared; in 1808 appeared Fourier’s first work, although the groundwork of his theory dated from 1799; on January 1, 1800, Robert Owen undertook the direction of New Lanark.

What follows is what can only be considered effusive praise for the ideals and ideas of Saint-Simon, Fourier, and especially Owen. Here he expresses his admiration at some length for Owen:

At this juncture, there came forward as a reformer a manufacturer 29-years-old – a man of almost sublime, childlike simplicity of character, and at the same time one of the few born leaders of men. Robert Owen had adopted the teaching of the materialistic philosophers: that man’s character is the product, on the one hand, of heredity; on the other, of the environment of the individual during his lifetime, and especially during his period of development. In the industrial revolution most of his class saw only chaos and confusion, and the opportunity of fishing in these troubled waters and making large fortunes quickly. He saw in it the opportunity of putting into practice his favorite theory, and so of bringing order out of chaos. . .Whilst his competitors worked their people 13 or 14 hours a day, in New Lanark the working-day was only 10 and a half hours. When a crisis in cotton stopped work for four months, his workers received their full wages all the time. . .

In spite of all this, Owen was not content. The existence which he secured for his workers was, in his eyes, still far from being worthy of human beings. “The people were slaves at my mercy.” The relatively favorable conditions in which he had placed them were still far from allowing a rational development of the character and of the intellect in all directions, much less of the free exercise of all their faculties. . .

His advance in the direction of Communism was the turning-point in Owen’s life. As long as he was simply a philanthropist, he was rewarded with nothing but wealth, applause, honor, and glory. He was the most popular man in Europe. . .But when he came out with his Communist theories that was quite another thing. Three great obstacles seemed to him especially to block the path to social reform: private property, religion, the present form of marriage.

He knew what confronted him if he attacked these – outlawry, excommunication from official society, the loss of his whole social position. But nothing of this prevented him from attacking them without fear of consequences, and what he had foreseen happened. Banished from official society, with a conspiracy of silence against him in the press, ruined by his unsuccessful Communist experiments in America, in which he sacrificed all his fortune, he turned directly to the working-class and continued working in their midst for 30 years. Every social movement, every real advance in England on behalf of the workers links itself on to the name of Robert Owen.

I could go on. Clearly, Engels admired both Owen and his utopian socialist proposals and projects.

There’s no doubt that Marx and Engels engaged in running battles with other radical (socialist, anarchist, and so on) thinkers of their own time, reserving particular scorn for Pierre-Joseph Proudhon (best exemplified by the Poverty of Philosophy) but, even then, they retain their respect for the utopian socialists, both of which we can see in Marx’s 1866 letter to Ludwig Kugelmann:

Proudhon has done enormous harm. His pseudo-critique and his pseudo-confrontation with the Utopians (he himself is no more than a philistine Utopian, whereas the Utopias of such as Fourier, Owen, etc., contain the presentiment and visionary expression of a new world) seized hold of and corrupted first the ‘jeunesse brillante’ the students, then the workers, especially those in Paris, who as workers in luxury trades are, without realising it, themselves deeply implicated in the garbage of the past.

But we do know, of course, that Marx and Engels did in fact reject “utopian socialism” for their own time, in the middle of the nineteenth century, during the formation and development of the First International. On what basis?

As I see it, their rejection of utopian socialism (and their defense of so-called scientific socialism) rests on two main pillars: the role of the working-class and the project of critique.

There’s no doubt, Marx and Engels envisioned the movement beyond capitalism not in terms of realizing some ideal scheme, no matter how well inspired and worked-out, but as the task of the growing working-class. In other words, the idea was that capitalism produces its own grave-diggers. The growth of capitalism—the widening and deepening of capital—was accompanied by the growth of a class that had both the interest and the means to overturn the rule of capital. A class that could challenge the pretensions of capital to become a universal class, by posing its own universal aspirations—not for everyone to become a laborer but to criticize and eventually abolish the wages system itself and lay the basis for a different, noncapitalist way of organizing economic and social life.

Today, as capitalism continues to produce ever more obscene levels of inequality and to leave workers in ever greater depths of despair, we need both to defend utopian thinking—to recover the radical spirit of earlier utopian socialists and their critics—and to take up the challenge of defining what a socialism for our own time will look like.