Showing posts with label anarchism. Show all posts
Showing posts with label anarchism. Show all posts

Sunday, April 03, 2011

The Irrelevance of Protests

As I have said in the past mass demonstrations would not be violent if armed police, riot cops and Swat units were not present. But of course then they would be a carnival that resulted in nothing much than another day out in public solidarity. The FT has a satirical look at the recent protests in the UK against the Cameron Austerity measures and attacks on the public sector unions.

The point is well made, however a real difference is not that violence attracts more attention, as the writer implies, but rather what is a more effective form of resistance to state sanctioned measures we oppose.

Union and Civil Society/NGO endorsed marches, end up being a call to vote out the bastards, which neither challenges the system nor the institutional form of politics.

What does work is mass occupations of the legislature, as occurred in Alberta in the nineties during the attacks on medicare, and the recent occupation of the Wisconsin legislature. But they need then to be followed up with the Mass Strike, of workers and citizens. As we have seen in Egypt.




For it does seem a basic rule of modern British democracy that if you are marching against something you’ve already lost. Parading one’s discontent through London is the political equivalent of a fly bashing its head against a window pane. Of course there’s a terrific sense of community on a march – 250,000 flies with the same headache; it’s hugely empowering. But short of handing out placards with slogans such as “Mildly Miffed” or “I’m so angry I walked peacefully through London”, it is hard to imagine what more the protesters could have done to signal their acceptance of defeat.

It’s irresponsible to admit it, but this kind of peaceful protest is pointless. The system has all the shock absorbers necessary to handle a law-abiding demonstration. The next day ministers were already clear they would ignore the entire event, while insisting that they would be happy to discuss the issues with marchers, though sadly not over tea at Fortnum’s as it seems to be attracting the wrong sort these days.

It’s not that I’m advocating violence and disorder, just dispassionately noting that in Britain it is more effective. What last weekend’s thugs grasped is that ministers can’t ignore anarchists daubing the Cenotaph and bringing a bit of havoc to the capital. Once or twice they might be able to turn on the rioters, but not if it keeps happening. There’s nothing like stoking voters’ fears about the rule of law and the fabric of society to get the government’s attention.

You have to think of this in management terms. On key deliverables peaceful marching just doesn’t cut it. It’s all inputs and no outputs. But violent protest can be measured on key performance indicators. How many shops did you smash up? What percentage were banks? Did you manage to scare the Duchess of Cornwall? I’m sorry Dave; you are below target; do you want to nip over the road and vandalise that RBS?”

Monday, February 21, 2011

Lucy Parsons Redux


I originally posted here about Lucy Parsons for Black History Month. Here are some updates from the web about Lucy. And as you read about her you realize that she could be celebrated during Womens History Month, Labour History Month, as Mexican American an Indigenous woman, an American proletarian revolutionary.

As I researched this post I came across a number of references to Lucy being a member or supporter of the Communist Party of the USA.

This is a historiographical case of mistaken identity confusing her with her wobbly sister Elizabeth Gurley Flynn, the Rebel Girl, who was national Chairman of the CPUSA.


Lucy was a Revolutionary Socialist and Anarchist till the end of her life.



A Fury For Justice: Lucy Parsons And The Revolutionary Anarchist Movement in Chicago
For six and a half decades Lucy Parsons played a pivotal role in some
of the most influential social movements of her time. A fiery speaker,
bold social critic, and tireless organizer, Parsons was a prominent figure
in radical American political movements from the late 1870s until
her death at the age of 89 on March 7th, 1942. Despite playing an
important part in such iconic struggles as the movement for the 8-
hour day, the defense of the Haymarket martyrs, and the founding
of the IWW, Lucy Parsons has been largely ignored by historians of
all stripes. Parsons sole biographer, writing in 1976, explained her
invisibility thusly: “Lucy Parsons was black, a woman, and working
class — three reasons people are often excluded from history.”1
While this helps explain in part Parsons’ absence from mainstream
historiography, it is not entirely satisfying. While other working
class black women found their way into academic writing and political
iconography with the rise of Black Nationalist movements in
the 1960s and 70s and the concurrent proliferation of Black Studies
programs at American universities, Lucy Parsons was mostly left behind.
Unfortunately, when she has been included in academic writing
she has usually not been allowed to speak for herself. Most of the
academics that have mentioned Lucy Parsons (generally very briefly)
have recast her as they would have preferred her to be, usually as
either a reflection of their own politics or as an example of the failures
of past movements. The only biography of Parsons, Carolyn
Ashbaugh’s Lucy Parsons: American Revolutionary, combines misrepresentation
with inaccuracy. Ashbaugh nonsensically claims that
Parsons was not an anarchist, a fact beyond the point of argument
for anyone that has read Lucy Parsons’s work, and she groundlessly
claims that Parsons joined the Communist Party towards the end of
her life. Sadly, this has allowed every writer after Ashabugh to make
the same erroneous claim

FOUNDING CONVENTION

Industrial Workers of the World

THIRD DAY

Thursday, June 29, 1905

AFTERNOON SESSION

SPEECH OF LUCY E. PARSONS

DEL. LUCY E. PARSONS: I can assure you that after the intellectual feast that I have enjoyed immensely this afternoon, I feel fortunate to appear before you now in response to your call. I do not wish you to think that I am here to play upon words when I tell you that I stand before you and feel much like a pigmy before intellectual giants, but that is only the fact. I wish to state to you that I have taken the floor because no other woman has responded, and I feel that it would not be out of place for me to say in my poor way a few words about this movement.

We, the women of this country, have no ballot even if we wished to use it, and the only way that we can be represented is to take a man to represent us. You men have made such a mess of it in representing us that we have not much confidence in asking you; and I for one feel very backward in asking the men to represent me. We have no ballot, but we have our labor. I think it is August Bebel, in his “Woman in the Past, Present and Future”—a book that should be read by every woman that works for wages—I think it is Bebel that says that men have been slaves through-out all the ages, but that woman’s condition has been worse, for she has been the slave of a slave. I think there was never a greater truth uttered. We are the slaves of the slaves. We are exploited more ruthlessly than men. Wherever wages are to be reduced the capitalist class use women to reduce them, and if there is anything that you men should do in the future it is to organize the women.

And I tell you that if the women had inaugurated a boycott of the State street stores since the teamsters’ strike they would have surrendered long ago. (Applause). I do not strike before you to brag. I had no man connected with that strike to make it of interest to me to boycott the stores, but I have not bought one penny’s worth there since that strike was inaugurated. I intended to boycott all of them as one individual at least, so it is important to educate the women. Now I wish to show my sisters here that we fasten the chains of slavery upon our sisters, sometimes unwittingly, when we go down to the department store and look around for cheap bargains and go home and exhibit what we have got so cheap. When we come to reflect it simply means the robbery of our sisters, for we know that the things cannot be made for such prices and give the women who made them fair wages.

I wish to say that I have attended many conventions in the twenty-seven years since I came here to Chicago’ a young girl, so full of life and animation and hope. It is to youth that hope comes; it is to age that reflection comes. I have attended conventions from that day to this of one kind and another and taken part in them. I have taken part in some in which our Comrade Debs had a part. I was at the organization that he organized in this city some eight or ten years ago. Now, the point I want to make is that these conventions are full of enthusiasm. And that is right; we should sometimes mix sentiment with soberness; it is a part of life. But, as I know from experience, there are sober moments ahead of us, and when you go out of this hall, when you have laid aside your enthusiasm, then comes solid work. Are you going out with the reflection that you appreciate and grasp the situation that you are to tackle? Are you going out of here with your minds made up that the class in which we call ourselves, revolutionary Socialists so-called—that that class is organized to meet organized capital with the millions at its command? It has many weapons to fight .us. First it has money. Then it has legislative tools. Then it has its judiciary; it has its army and its navy; it has its guns; it has armories; and last, it has the gallows. We call ourselves revolutionists. Do you know what the capitalists mean to do to you revolutionists? I simply throw these hints out that you young people may become reflective and know what you have to face at the first’ and then it will give you strength. I am not here to cause any discouragement, but simply to encourage you to go on in your grand work.

Now, that is the solid foundation that I hope this organization will be built on; that it may be built not like a house upon the sand, that when the waves of adversity come it may go over into the ocean of oblivion; but that it shall be built upon a strong, granite, hard foundation; a foundation made up of the hearts, and aspirations of the men and women of this twentieth century who have set their minds, their bands, their hearts and their heads against the past with all its miserable poverty, with its wage slavery, with its children ground into dividends, with its miners away down under the earth and with never the light of sunshine, and with its women selling the holy name of womanhood for a day’s board. I hope we understand that this organization has set its face against that iniquity, and that it has set its eyes to the rising star of liberty, that means fraternity, solidarity, the universal brotherhood of man. I hope that while politics have been mentioned here I am not one of those who, because a man or woman disagrees with me, cannot act with them—I am glad and proud to say I am too broad-minded to say they are a fakir or fool or a fraud because they disagree with me. My view may be narrow and theirs may be broad; but I do say to those who have intimated politics here as being necessary or a part of this organization, that I do not impute to them dishonesty or impure motives. But as I understand the call for this convention, politics had no place here; it was simply to be an economic organization, and I hope for the good of this organization that when we go away from this hall, and our comrades go some to the west, some to the east, some to the north and some to the south, while some remain in Chicago, and all spread this light over this broad land and carry the message of what this convention has done, that there will be no room for politics at all. There may be room for politics; I have nothing to say about that; but it is a bread and butter question, an economic issue, upon which the fight must be made.

Now, what do we mean when we say revolutionary Socialist? We mean that the land shall belong to the landless, the tools to the toiler, and the products to the producers. (Applause.) Now, let us analyze that for just a moment, before you applaud me. First, the land belongs to the landless. Is there a single land owner in this country who owns his land by the constitutional rights given by the constitution of the United States who will allow you to vote it away from him? I am not such a fool as to believe it. We say, “The tools belong to the toiler.” They are owned by the capitalist class. Do you believe they will allow you to go into the halls of the legislature and simply say, “Be it enacted that on and after a certain day the capitalist shall no longer own the tools and the factories and the places of industry, the ships that plow the ocean and our lakes?” Do you believe that they will submit? I do not. We say, “The products belong to the producers.” It belongs to the capitalist class as their legal property. Do you think that they will allow you to vote them away from them by passing a law and saying, “Be it enacted that on and after a certain day Mr. Capitalist shall be dispossessed?” You may, but I do not believe it. Hence, when you roll under your tongue the expression that you are revolutionists, remember what that word means. It means a revolution that shall turn all these things over where they belong to the wealth producers. Now, how shall the wealth producers come into possession of them? I believe that if every man and every woman who works, or who toils in the mines, the mills, the workshops, the fields, the factories and the farms in our broad America should decide in their minds that they shall have that which of right belongs to them, and that no idler shall live upon their toil, and when your new organization, your economic organization, shall declare as man to man and women to woman, as brothers and sisters, that you are determined that you will possess these things, then there is no army that is large enough to overcome you, for you yourselves constitute the army. (Applause). Now, when you have decided that you will take possession of these things, there will not need to be one gun fired or one scaffold erected. You will simply come into your own, by your own independence and your own manhood, and by asserting your own individuality, and not sending any man to any legislature in any State of the American Union to enact a law that you shall have what is your own; yours by nature and by your manhood and by your very presence upon this earth.

Nature has been lavish to her children. She has placed in this earth all the material of wealth that is necessary to make men and women happy. She has given us brains to go into her store house and bring from its recesses all that is necessary. She has given us these two hands and these brains to manufacture them suited to the wants of men and women. Our civilization stands on a parallel with all other civilizations. There is just one thing we lack, and we have only ourselves to blame if we do not become free. We simply lack the intelligence to take possession of that which we have produced. (Applause). And I believe and I hope and I feel that the men and women who constitute a convention like this can come together and organize that intelligence. I must say that I do not know whether I am saying anything that interests you or not, but I feel so delighted that I am talking to your heads and not to your hands and feet this afternoon. I feel that you will at least listen to me, and maybe you will disagree with me, but I care not; I simply want to shed the light as I see it. I wish to say that my conception of the future method of taking possession of this is that of the general strike: that is my conception of it. The trouble with all the strikes in the past has been this: the workingmen like the teamsters in our cities, these hard-working teamsters, strike and go out and starve. Their children starve. Their wives get discouraged. Some feel that they have to go out and beg for relief, and to get a little coal to keep the children warm, or a little bread to keep the wife from starving, or a little something to keep the spark of life in them so that they can remain wage slaves. That is the way with the strikes in the past. My conception of the strike of the future is not to strike and go out and starve, but to strike and remain in and take possession of the necessary property of production. If any one is to starve—I do not say it is necessary—let it be the capitalist class. They have starved us long enough, while they have had wealth and luxury and all that is necessary. You men and women should be imbued with the spirit that is now displayed in far-off Russia and far-off Siberia where we thought the spark of manhood and womanhood had been crushed out of them. Let us take example from them. We see the capitalist class fortifying themselves to-day behind their Citizens’ Associations and Employers’ Associations in order that they may crush the American labor movement. Let us cast our eyes over to far-off Russia and take heart and courage from those who are fighting the battle there, and from the further fact shown in the dispatches that appear this morning in the news that carries the greatest terror to the capitalist class throughout all the world—the emblem that has been the terror of all tyrants through all the ages, and there you will see that the red flag has been raised. (Applause). According to the Tribune, the greatest terror is evinced in Odessa and all through Russia because the red flag has been raised. They know that where the red flag has been raised whoever enroll themselves beneath that flag recognize the universal brotherhood of man; they recognize that the red current that flows through the veins of all humanity is identical, that the ideas of all humanity are identical; that those who raise the red flag, it matters not where, whether on the sunny plains of China, or on the sun-beaten hills of Africa, or on the far-off snow-capped shores of the north, or in Russia or in America—that they all belong to the human family and have an identity of interest. (Applause). That is what they know.

So when we come to decide, let us sink such differences as nationality, religion, politics, and set our eyes eternally and forever towards the rising star of the industrial republic of labor; remembering that we have left the old behind and have set our faces toward the future. There is no power on earth that can stop men and women who are determined to be free at all hazards. There is no power on earth so great as the power of intellect. It moves the world and it moves the earth.

Now, in conclusion, I wish to say to you—and you will excuse me because of what I am going to say and only attribute it to my interest in humanity. I wish to say that nineteen years ago on the fourth of May of this year, I was one of those at a meeting at the Haymarket in this city to protest against eleven workingmen being shot to pieces at a factory in the southeastern part of this city because they had dared to strike for the eight-hour movement that was to be inaugurated in America in 1886. The Haymarket meeting was called primarily and entirely to protest against the murder of comrades at the McCormick factory. When that meeting was nearing its close some one threw a bomb. No one knows to this day who threw it except the man who threw it. Possibly he has rendered his account with nature and has passed away. But no human being alive knows who threw it. And yet in the soil of Illinois, the soil that gave a Lincoln to America, the soil in which the great, magnificent Lincoln was buried in the State that was supposed to be the most liberal in the union, five men sleep the last sleep in Waldheim under a monument that, has been raised there because they dared to raise their voices for humanity. I say to any of you who are here and who can do so, it is well worth your time to go out there and draw some inspiration around the graves of the first martyrs who fell in the great industrial struggle for liberty on American soil. (Applause). I say to you that even within the sound of my voice, only two short blocks from where we meet to-day, the scaffold was erected on which those five men paid the penalty for daring to raise their voices against the iniquities of the age in which we live. We arc assembled here for the same purpose. And do any of you older men remember the telegrams that were sent out from Chicago while our comrades were not yet even cut down from the cruel gallows? “Anarchy is dead, and these miscreants have been put out of the way.” Oh, friends, I am sorry that I even had to use that word, “anarchy” just now in your presence, which was not in my mind at the outset. So if any of you wish to go out there and look at this monument that has been raised by those who believed in their comrades’ innocence and sincerity, I will ask you, when you have gone out and looked at the monument, that you will go to the reverse side of the monument and there read on the reverse side the words of a man, himself the purest and the noblest man who ever sat in the gubernatorial chair of the State of Illinois, John P. Altgeld. (Applause). On that monument you will read the clause of his message in which he pardoned the men who were lingering then in Joliet. I have nothing more to say. I ask you to read the words of Altgeld, who was at that time the governor, and had been a lawyer and a judge, and knew whereof he spoke, and then take out your copy books and copy the words of Altgeld when he released those who had not been slaughtered at the capitalists’ behest, and then take them home and change your minds about what those men were put to death for.

Now, I have taken up your time in this because I simply feel that I have a right as a mother and as a wife of one of those sacrificed men to say whatever I can to bring the light to bear upon this conspiracy and to show you the way it was. Now, I thank you for the time that I have taken up of yours. I hope that we will meet again some time, you and I, in some hall where we can meet and organize the wage workers of America, the men and women, so that the children may not go into the factories, nor the women into the factories, unless they go under proper conditions. I hope even now to live to see the day when the first dawn of the new era of labor will have arisen, when capitalism will be a thing of the past, and the new industrial republic, the commonwealth of labor, shall be in operation. I thank you. (Applause.)

Carr, Mary M. "Jay Fox: Anarchist of Home." Columbia Magazine. 4.1 (Spring 1990): 3-10.

The utopian colony of Home was founded in 1896 on Von Geldern Cove, across the Tacoma Narrows on the Key Peninsula. Established by three families who were refugees from another failed utopian community, it became in time a successful anarchist colony whose most famed inhabitant was the sometimes elusive Jay Fox, anarchist and labor radical.

In 1904 Fox worked closely with Lucy Parsons, widow of the Haymarket martyr Albert Parsons, in an attempt to launch an anarchist, English-language newspaper. In the spring of that year Parsons, Fox and others discussed the possibility of starting a paper to replace The Free Society which had folded in the wake of the persecution of radicals following the McKinley assassination. Throughout the summer the group held socials and picnics to raise money for the cause.

However, by late summer a rift had developed between Fox and Parsons. A group headed by Fox felt that The Demonstrator of Home Colony should be adopted and backed. The other faction, headed by Parsons, felt strongly that such a paper should emanate from the radical and industrial center of Chicago rather than from the backwater colony of Home. Before the controversy was settled, Fox sent the money to Home. Parsons, undaunted, started a Chicago-based paper, The Liberator. It should be noted that Fox had good reason for his position. He had been invited to assume the editorship of The Demonstrator, planning to move to Home in the fall of 1905. He was delayed that fall and again in the spring.


by Robert Black

Not for its intrinsic interest - no part of this book has much of that - but as a case study in Salerno's shortcomings, let me review in much more detail than it deserves his chapter on "Anarchists at the Founding Convention." Here is his most of his case for significantly raising prevailing estimates of anarchist influence on the IWW. He first cites the expressions of solidarity with the Haymarket anarchists martyred two decades before which issued from the podium; there was even a pilgrimage to their graves. Indeed , one of the opening speakers was Lucy Parsons, widow of executed Haymarket defendant Albert Parsons.(112) Mrs. Parsons, however, was so far from speaking as an anarchist that she actually apologized for using the word "anarchy." As Joseph Conlin described the scene, "while almost all the delegates claimed to be socialists, there was also present a small group of anarchists, the remnants of the Chicago group. Lucy Parsons was honored by a prominent seat and spoke several times. But she functioned primarily as platform decoration and had little influence on the proceedings. Her ignominious role characterized the dilemma of the less eminent anarchists: tolerated in attendance, they went all but unheard. Mrs. Parsons sheepishly apologized for employing the term 'anarchy' in a speech, and the few avowedly anarchist proposals that reached the floor were summarily rejected."(113)

None of this is evidence of anarchist influence at the founding convention. The Haymarket labor martyrs had been anarchists - although even that has been called into question(114) -- but they were commemorated in Chicago, not as anarchists, but as labor martyrs. By then, their anarchism long since interred with them, they were remembered as heroic leaders of the eight-hour movement, a lowest common denominator cause any unionist could rally around at a convention bent on forging unity. (115) That they assembled in Chicago made it only that much more obligatory as a matter of common courtesy to pay homage to the local heroes. The presence of Lucy Parsons on the platform had exactly, and only, the honorific significance of the presence of, say, Coretta King on the platform of a Democratic Party convention. Coretta King has no influence on the Democrats and Lucy Parsons had none on the Wobblies.

Women that Wobbled but Didn’t Fall Down

Lucy Parsons, an adamant socialist and ‘Wobbly’ (a term for IWW members), stands out as a great example of a woman in the IWW. While little is known about her earliest background, we do know that she was born in 1853. Her ethnicity was the convergence of African, Mexican and Native roots, and, because of this, she was keenly aware of injustices in society in respect to those groups to which she belonged (Bird, Georgakas and Schaffer). Furthermore, it is supposed that she was born into slavery, which, again, gives her an interesting perspective in regards to the injustices perpetrated by the rich on the destitute.

Lucy Parsons

Lucy Parsons
(1853 - 1942)

Lucy Parsons was born in Texas in 1853 (most likely as a slave) to parents of Native, African and Mexican American ancestry. She was an anarchist labor activist and powerful orator who fought against poverty, capitalism, social injustice and racism her whole life.

She married Albert Parsons, a former confederate soldier, in 1871. During that time, the South was instituting repressive Jim Crow laws and Lucy and Albert fled north to Chicago . The Chicago Police Department described her as “more dangerous than a thousand rioters” in the 1920s. Lucy and Albert were highly effective anarchist organizers involved in the labor movement in the late 19 th Century. They also participated in revolutionary activism on behalf of political prisoners, people of color, the homeless and women. Albert was fired from his job at the Times because of his involvement in organizing workers and blacklisted in the Chicago printing trade. Lucy opened a dress shop to support her family and hosted meetings for the International Ladies' Garment Workers Union (ILGWU). She began to write for the radical papers The Socialist and The Alarm , weekly publications of the International Working People's Association (IWPA) which she and Albert were among the founders of in 1883.

By 1886, tension among workers across America was high due to horrid working conditions and the squelching of union activities by authorities. A peaceful strike at McCormick Harvest Works in Chicago became violent when police fired into the crowd of unarmed strikers. Many were wounded and four were killed. Radicals called a meeting in Haymarket Square and once again, this peaceful gathering turned violent when someone threw a bomb that killed a police officer. Although Albert was not present at Haymarket, he was arrested and executed on charges that he had conspired in the Riot.

In the years following the execution, Lucy lived in poverty but remained committed to the cause. In 1892, she began editing Freedom: A Revolutionary Anarchist-Communist Monthly and was frequently arrested for public speaking and distributing anarchist literature. Then, in 1905, she helped found the Industrial Workers of the World (IWW) and began editing The Liberator , a paper published by the IWW and based in Chicago . Here she was able to voice her opinions on women's issues, supporting a woman's right to divorce, remarry and have access to birth control. She organized the Chicago Hunger Demonstrations in 1915, which pushed the American Federation of Labor, the Socialist Party and Jane Addam's Hull House to participate in a huge demonstration on February 12.

In 1925, she began working with the National Committee of the International Labor Defense, a Communist Party group that aided with the Scottsboro Eight and Angelo Hearndon cases. These were cases where the establishment charged African-American organizers with crimes they did not commit.

With eyesight failing, she spoke at the International Harvester in February, 1941. She fought against oppression until her death in 1942 at the age of 89 when she died in an accidental house fire. Her boyfriend died the next day from injuries he sustained while trying to save her. Adding to this tragedy, the FBI stole her library of 1,500 books and all of her personal papers. The state still viewed Lucy Parsons as a threat, even in her death.



WILLIAMS, Casey. "Whose Lucy Parsons ? The mythologizing and re-appropriation of a radical hero".

Anarcho-Syndicalist Review number 47, Summer, 2007
As a radical anarchist, Lucy Parsons dedicated over sixty years of her life to fighting for America’s working class and poor. [1] and A skillful orator and passionate writer, Parsons played an important role in the history of American radicalism, especially in the labor movement of the 1880s, and remained an active force until her death in 1942. The one question from which she never swayed was "how to lift humanity from poverty and despair ?" [2] With this question propelling her life’s work, Parsons was active in a multitude of radical organizations including the Socialistic Labor Party, the International Working People’s Association, and the Industrial Workers of the World. Coupled with her long involvement in America’s labor movement was Parsons’ unbending anarchist vision of society, a philosophy which underlay her critique of America’s oppressive economic and political institutions.

Peter Linebaugh: Joe Hill and the IWW

Rosemont has a crucial chapter on the indigenous people. Lucy Parsons, "whose high cheek bones of her Indian ancestors" as her biographer says, provided the physiognomy of a countenance of utter inspiration when she spoke at the founding convention of the IWW August Spies lived with the Ojibways; Big Bill Haywood attended pow-wows. Abner Woodruff, a Wob, had a chapter on Indian agriculture in his Evolution of American Agriculture (1915-6). The Wobblies were "the spiritual successors to the Red Indians as number one public enemy and conscience botherers." Frank Little, the most effective Wobbly organizer, was lynched in Butte, Montana, by the same hard rock copper "bosses" which caused Joe Hill to be shot. Little was a Cherokee Indian.

The Wheatland Riot, The Bisbee Deportation, IWW Ties with Mexico, Workers of the World


Read more: Industrial Workers of the World - The Wheatland Riot, The Bisbee Deportation, IWW Ties with Mexico, Workers of the World http://www.jrank.org/cultures/pages/4003/Industrial-Workers-World.html#ixzz1EaFOqcfE

The IWW arose in response to the abysmal working conditions of many poor and unskilled workers in the United States and to what it considered the lack of concern on the part of the conservative American Federation of Labor (AFL), who sought to organize skilled, U.S.–born workers. The AFL excluded many of the groups that the IWW actively recruited: immigrants, women, African Americans, Mexican Americans, and unskilled laborers. The AFL was determinedly anti-immigrant, and even Mexican Americans were viewed as “foreigners.” In order to recruit Mexican Americans to its ranks, the IWW hired Mexican American organizers and translated IWW literature into Spanish.

Mexican Americans have been a part of IWW's history since the beginning. Lucy Gonzales Parsons was a founding member of the IWW and a longtime radical whose work from the 1870s until her death in 1942 gained her the reputation of being “more dangerous than a thousand rioters.” Born in Texas, Gonzales Parsons moved to Chicago in the 1870s with her husband, Albert Parsons, one of the “Haymarket Square martyrs.” Although many scholars argue that she was African American, Gonzales Parsons claimed Mexican and Indian parentage and her death certificate listed Spanish-surnamed parents.


Roots of Resistance

An interview with Roxanne Dunbar-Ortiz

The IWW spanned a decade and a half of an extremely repressive period—Jim Crow segregation of Blacks and Mexicans was firmly entrenched, Native Americans had to have passes to leave their reservations and were not allowed to join trade unions, women didn't have the vote. Yet, the IWW was able to organize and inspire inter-racial struggles. It was also the period of the prolonged Mexican Revolution and cooperation between the IWW and the Mexican revolutionary workers was constant. In Oklahoma, black, white, and Indian tenant farmers, inspired by the Wobblies, rose up together in 1917 to oppose the draft for World War I and oppose the war as a "rich man's war." It was called the "Green Corn Rebellion." And, of course, women were prominent in the IWW founding and leadership: Elizabeth Gurley Flynn, Emma Goldman, Mother Jones, Lucy Parsons, and many local leaders.

The legacy of the IWW.

Thus Lucy Parsons, already renowned for her defense of her husband after the Haymarket incident in 1886 and as an African-American revolutionary in Chicago, famously spoke for the most lowly, women driven to prostitution. But she also spoke of workers' capacity, arguing: "My conception of the strike of the future is not to strike and go out and starve, but to strike and remain in and take possession of the necessary property of production." In this way, the extraordinary veteran of nineteenth-century class, race, and gender struggles predicted the sit-down strike of the future, which took place first in factories, then at sit-ins to integrate public facilities, and still later in college classrooms and presidents' offices to protest the brutal war on Vietnam.


Class Struggles and Geography:
Revisiting the 1886 Haymarket Square Police Riot

Regardless of how one interprets Haymarket, their memory would have
vanished altogether by the next generation without recent efforts and those of Lucy
Parsons, along with other anarchists and labour activists, to recount and publish
Haymarket accounts. In this manner, Haymarket became an integral part of labour
movements’ lore, especially in Latin America and southern and eastern Europe.
Between 1887 and today, with uneven speed and through differing circumstances
and motivations, Haymarket was turned into the basis of a holiday with the
establishment of the first of May as labour-day in most of the world. Even if that
history was appropriated by state socialist dictatorships for their own
propagandistic and geopolitical ends during the middle and late twentieth centuries,
it remained a symbol of workers’ struggle for rights and dignity in the workplace, if
not a struggle for socialism. In the US, however, the holiday, along with its radical
referent, was banned by 1955. The observance was not revived until the 1970s with
the endeavours of veteran union activists and the renewed spread and
popularisation of anarchist perspectives (Avrich, 1984, 428-436; Green, 2006, 301-
320; Zinn, 1995, 267).

LUCY PARSONS

Lucy also wrote about the press, and how even in her own time, newspapers suppressed and manipulated information with their disinformation and misinformation in reporting incidents which occurred. Lucy wrote essays, “The Importance of a Press” and “Challenging the Lying Monopolistic Press” that alerted people that the fourth estate could be just as destructive to citizen’s interests as much as any robber baron, or government institution.

Her writings on sex and patriarchy, as well as her thoughts on race and racism, require closer reading, and certainly deserve greater attention.

In February, 1941, in one of her last major appearances, Lucy spoke at the International Harvestor, where she continued to inspire crowds. On March 7, 1942 at the age of 90, Lucy died from a fire that engulfed her home.

Her lover George Markstall died the next day from wounds he received while trying to save her. To add to this tragedy, when Lucy Parsons died, the police seized and destroyed her letters, writings and library. She almost disappeared from history, but, many of her writings did survive.

Lucy’s library of 1,500 books on sex, socialism and anarchy were mysteriously stolen, along with all of her personal papers. Neither the FBI nor the Chicago police told Irving Abrams, who had come to rescue the library, that the FBI had already confiscated all of her books. The struggle for fundamental freedom of speech, in which Lucy had engaged throughout her life, continued through her death as authorities still tried to silence this radical woman by robbing her of the work of her lifetime.

She is buried near her husband, near the Haymarket Monument.

Lucy Parsons and the call for class war -notmytribe.com

Lucy lived well up into this century,
well into this century, died in 1940.
One time, she was speaking at a big May Day rally
back in the Haymarket in the middle 1930s, she was incredibly old.
She was led carefully up to the rostrum, a multitude of people there.
She had her hair tied back in a tight white bun, her face
a mass of deeply incised lines, deep-set beady black eyes.
She was the image of everybody’s great-grandmother.
She hunched over that podium, hawk-like,
and fixed that multitude with those beady black eyes,
and said: “What I want
is for every greasy grimy tramp
to arm himself with a knife or a gun
and stationing himself at the doorways of the rich
shoot or stab them as they come out.”

Looking for Lucy (in all the wrong places)

Considering Lucy Parsons’s life as a muckraker, incendiary wordsmith, and all-around thorn in the side of the established order, the Chicago Park District should have expected the flurry of controversy it got when it decided to name a park for her. Like most controversies, this one has made some fairly preposterous bedfellows. The two groups most vociferously opposed to naming a city park after Parsons have been the Fraternal Order of Police, and local anarchists who insist that any government-sanctioned recognition dishonors Parsons’s anarchist legacy.

In tracking this little gush of new blood from an old wound, I’ve gained an even deeper understanding of just how tortured Chicago’s relationship with its radical history is. Lucy Parsons — the anarchist formerly known to the American labor movement as one of its founding mothers, and to the Chicago Police Department as “more dangerous than a thousand rioters” — is barely known to most Chicagoans today, including the city officials who supported the park-naming. In what is surely one of the greatest ironies in the history of Chicago’s civic life, the cops were the only ones who went on record openly acknowledging Parsons’s anarchism, while her supporters both in and out of local government labored to recast her merely as a champion of rights for women and minorities (which she was, but only by extension of her lifelong fight for workers’ revolution).


Lucy Parsons :: Revolutionary Feminist

Class, Race and Gender
Parsons’ commitments towards freedom of the young Black Communist Angelo Herndon in Georgia, Tom Mooney in California, and for the Scottsoboro Nine in Alabama were unflinching. Parsons recognized the class system in America as the prime factor in perpetuating racism. She was the foremost American feminist to declare that race, gender and sexuality are not oppressed identities by themselves. It is the economic class that determines the level of oppression people of minorities have to confront. Notwithstanding her social location of being a black and a woman, Parsons declared that a black person in America is exploited not because she/he is black. “It is because he is poor. It is because he is dependent. Because he is poorer as a class than his white wage-slave brother of the North.”

Lucy Parsons was a relentless defender of working class rights. To contain her popularity, the media portrayed her more as the wife of Albert Parsons – a Haymarket martyr, who was murdered by the state of Illinois, while demanding for eight-hour working day on November 11, 1887. While identifying her with Albert’s causes, history textbooks – both liberal and conservative – seldom mention Parsons as the radical torchbearer of American communist movement.

Parsons was among the first women to join the founding convention of IWW. She thundered: “We, the women of this country, have no ballot even if we wished to use it. But we have our labor. Wherever wages are to be reduced, the capitalist class uses women to reduce them.”

In The Agitator, dated November 1, 1912 she referred to Haymarket martyrs thus: “Our comrades were not murdered by the state because they had any connection with the bombthrowing, but because they were active in organizing the wage-slaves. The capitalist class didn’t want to find the bombthrower; this class foolishly believed that by putting to death the active spirits of the labor movement of the time, it could frighten the working class back to slavery.”

She had no illusions about capitalistic world order. Parsons called for armed overthrow of the American ruling class. She refused to buy into an argument that the origin of racist violence was in racism. Instead, Parsons viewed racism as a necessary byproduct of capitalism. In 1886, she called for armed resistance to the working class: “You are not absolutely defenseless. For the torch of the incendiary, which has been known with impunity, cannot be wrested from you!”

For Parsons, her personal losses meant nothing; her oppression as a woman meant less. She was dedicated to usher in changes for the entire humanity – changes that would alter the world order in favor of the working poor class.

Even as a founding member of IWW, she was not willing to let the world’s largest labor union function in a romanticized manner. She radicalized the IWW by demanding that women, Mexican migrant workers and even the unemployed become full and equal members.

With her clarity of vision, lifelong devotion towards communist causes, her strict adherence to radical demands for a societal replacement of class structure, Lucy Parsons remains the most shining example of an American woman who turned her disadvantaged social locations of race and gender, to one of formidable strength – raising herself to bring about emancipated working class consciousness.


Baron, Fanya nee Anisimovna aka Fanny Baron 188?-1921 | libcom.org

Idealistic young anarchist who suffered the brutality of both the US cops and the Russian Cheka.

Born in Russia, Fanya Anisimovna moved to the United States where she established a relationship with Aron Baron (aka Kantarovitch), who worked as a baker. She was active in the anarchist movement in Chicago, and with the Industrial Workers of the World (IWW). She was involved in the hunger demonstrations of 1915 there, alongside Lucy Parsons and Aron. On January 17th 1915 she led the Russian Revolutionary Chorus at a meeting addressed by Lucy Parsons and others at Hull House, established by Jane Addams to help the poor. On the demonstration outside the police viciously attacked. Plain clothes detectives used brass knuckles on the crowd, while uniformed cops struck out with billy clubs. Fanya was knocked unconscious by one of the club wielding cops. She and five other Russian women and fifteen men were arrested. Jane Addams arranged bail for Fanya, Lucy and others who were pictured in the Chicago press.


LUCY PARSONS

FREEDOM, EQUALITY & SOLIDARITY

Writings & Speeches 1878-1937

Edited & Introduced by Gale Ahrens

With an Afterword by Roxanne Dunbar-Ortiz

"The most prominent black woman radical of the late nineteenth century, Lucy Parsons [was also] one of the brightest lights in the history of revolutionary socialism."-Robin D. G. Kelley, in Freedom Dreams: The Black Radical Imagination.

"Lucy Parsons's writings are among the best and strongest in the history of U.S. anarchism. Although written long ago, these texts tackle the major problems of our time. Her long and often traumatic experience of the capitalist injustice system-from KKK terror in her youth, through Haymarket and the judicial murder of her husband, to the U.S. government's war on the Wobblies -made her not "just another victim" but an extraordinarily articulate witness to, and vehement crusader against, all injustice. That kind of direct experience gave her a credibility and an actuality that those who lack such experience just don't have. Lucy Parsons's life and writings reflect her true-to-the-bone heroism. Her language sparkles with the love of freedom and the passion of revolt."
- Gale Ahrens
, Introduction

"More dangerous than 1000 rioters!" That's what the Chicago police called Lucy Parsons- America's most defiant and persistent anarchist agitator, whose cross-country speaking tours inspired hundreds of thousands of working people. Her friends and admirers included William Morris, Peter Kropot-kin, "Big Bill" Haywood, Ben Reitman, Sam Dolgoff-and the groups in which she was active were just as varied: the Knights of Labor, IWW, Dil Pickle Club, International Labor Defense, & others. Here for the first time is a hefty selection of her powerful writings & speeches-on anarchism, women, race matters, class war, the IWW, and the U.S. injustice system.

"Lucy Parsons's personae and historical role provide material for the makings of a truly exemplary figure ... Think of it: a lifelong anarchist, labor organizer, writer, editor, publisher, and dynamic speaker, a woman of color of mixed black, Mexican, and Native American heritage, founder of the 1880s Chicago Working Woman's Union that organized garment workers, called for equal pay for equal work, and even invited housewives to join with the demand of wages for housework; and later (1905) co-founder the Industrial Workers of the World (IWW), which made the organizing of women and people of color a priority. . .For a better understanding of the concept of direct action and its implications, no other historical figure can match the lessons provided by Lucy Parsons."
- Roxanne Dunbar Ortiz
, Afterword

Hobohemia: Emma Goldman, Lucy Parsons, Ben Reitman & Other ...

Alibris has Hobohemia: Emma Goldman, Lucy Parsons, Ben Reitman & Other Agitators ... but - thanks to the prominence of the Chicago-based IWW - much more ...
www.alibris.com/booksearch?qwork=10370395&matches... - Cached

Scandalous Women: Lucy Parsons - An American Revolutionary

Thursday, October 15, 2009

Anarchist Economics

This years Nobel prize in economics was given to an American Political Economist who for all intents and purposes espouses the anarchist economics of community control, mutual aid and direct action. While much attention has been given to the fact that this was first time a woman was given the award much commentary has been that this was another Euro slap at the rampant liberaltarian free market economics of the U.S. In fact Elinor Ostrom's political economic analysis is far more libertarian than the apologists for U.S. capitalism.

Professor Ostrom - who shares the prize with Oliver Williamson of the University of California, Berkeley - has spent much of her career challenging the view that when people share a finite resource, they will inevitably end up destroying it. This widely held belief, known as the tragedy of the commons, is used to support arguments for tighter regulation or even privatisation.

She has approached the argument from an unusual perspective, too. Through her study of the way that natural resources have been managed around the world, she has found that, left to manage resources on their own and given the right support, local people often develop the most effective methods of sustainable development.

“We have a team of people studying forestry in 200 cities around the world. This is very big study, trying to understand why some forests have just disappeared and others have been sustained. We started in 1992. We have been able to go back and go back and go back to get very good data sets.

“Our findings are that some local people who have had long-term assurances of harvesting rights are able to manage forests more effectively than people who do not have the same assurances. The lessons are that when regulation comes from a distant authority and is uniform for a very large region, it is not likely to succeed.”

Professor Ostrom - whose doctorate is in political science and who considers herself a political economist - will not be drawn to comment on hot political issues, such as the push for tighter regulation of Wall Street or the perennial question of American healthcare. They are, she says, not her field.

But she does have a message for government: “The big message is that we need to have respect for the capabilities of humans living all over the world, not just those occupying high positions,” she said. “It’s not that we want to get rid of government. It’s about getting rid of the idea that government can solve everything.”

To this end, she is a firm supporter of direct action. “I have recently written a paper on global warming and argued that we should not sit around twiddling our thumbs waiting for someone to do something. We should act now. There is a lot we can all do at all levels,” she said.




Wednesday, December 17, 2008

Socialism or Barbarism

It is obvious to all of us that capitalism is once again in crisis, a crisis it created but failed to predict. While it was historically predictable and inevitable, it is the nature of capitalism.
And so the only solution is not band aid bail outs but for us, the proletriat to take over capitalism, which cannot exist without our labour, and which has produced an artifical boom of credit which we as proletarians were sold as consumers. Crediting the working class and the those who had no equity so that capital could continue to make record profits is what had kept America and its NAFTA allies going.
The public secret that is known to all of us, including capital, the state and the unions is that we the workers create real capital, production of goods which need to be consumed. All other capital, investments, the stock market, bonds, hedge funds, private equity, is all surplus value created by workers producing real value. The current crisis of capitalism is that finance, fictious capital, that produces no real value that is real objects we can consume, is now dominating the productive market. We the workers are not consuming the value we create.
And we now spiral into the real historic crisis of capitalism which is over production. And the solution to this crisis historically has been either war or revolution.
Unfortunately for the Trade Unions and the Social Democratic left the latter is not on their agenda. But for capital the former is a solution they are willing to use, by enabling counter revolutionary nationalism; fascism.
We live in interesting times once again. The phoney stability of consumer capitalism has its facade ripped away daily as its chief clowns; the politicians try to assure us all is fine with capitalism and there is no alternative, when they know full well the alternative is the historic reality of socialism or barbarism.

In 1848 Karl Marx and Frederick Engels argued in the Communist Manifestothat the historic fight between the oppressor and oppressed ended 'either ina revolutionary reconstitution of society at large, or in the common ruin ofthe contending classes'. Engels said that 'bourgeois society stands at thecrossroads, either transition to socialism or regression into barbarism'.Later Rosa Luxemburg, a Polish revolutionary working in Germany at the endof the First World War, raised the slogan: 'Socialism or Barbarism'!

The fact is that the elephant in the room is another form of barbarism, that which could result from the climate crisis created by mass industrialization. Instead of looking at the decline in production as an opportunity to create an ecological socialist society, the same old cries of more work, more jobs, more consumption is echoed by the capitalists, the unions and the social democrats. It's not that 'There Is No Alternative', rather the alternative is as clear as the nose on their faces, they just don't want to face it. Their political solutions are as bankrupt as the system they are trying to bail out.


Drought means workers hungry in U.S. produce capital
By TRACIE CONE Associated Press Writer
Posted: Dec. 12, 2008
MENDOTA, Calif. — Idled farm workers are searching for food in the nation's most prolific agricultural region, where a double blow of drought and a court-ordered cutback of water supplies has caused hundreds of millions of dollars in losses.
This bedraggled town is struggling with an unemployment rate that city officials say is 40 percent and rising. This month, 600 farm families depleted the cupboards of the local food bank, which turned away families - more than 100 of them - for the first time.
"We're supposed to supply the world," said Mendota Mayor Robert Silva, "and people are starving."
The state's most dire water shortage in three decades is expected to erase more than 55,000 jobs across the fertile San Joaquin Valley by summer and drive up food prices across the nation, university economists predict.
"People being thrown out of work are the ones who can least afford it," said Richard Howitt, a professor of agriculture economics at the University of California-Davis, who estimates that $1.6 billion in agriculture-related wages across the valley will be lost in the coming months because of dwindling water.


SEE:
There Is An Alternative To Capitalism


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Saturday, November 29, 2008

Henry David Thoreau Weeps

The father of American Transcendentalism , individualist anarchism and environmentalism would weep. A pond is such a small thing and yet it reveals the seriousness of climate change and the ensuing mass extinction of species caused by capitalism.

For the past few years, Davis and colleagues from Harvard and Boston University have been perusing the notebooks of the famous naturalist and philosopher Henry David Thoreau, using his notes about his sanctuary at Walden Pond to uncover the drastic effects of climate change. With his graduate student, Abraham J. Miller-Rushing, Primack stumbled upon Thoreau’s observations of changes in plant flowering times and species occurrences over time. “It became the gold mine,” Primack said. “What was great was that Thoreau was so famous and that his records were the oldest we found in the United States.” Together with his graduate students, Charlie G. Willis and Brad R. Ruhfel, Davis compiled an evolutionary tree of the entire community of flora that had existed in the Concord area in the mid-19th century. “Using phylogenies to think about interesting patterns of bioevolution and global [climate] change just seemed like a perfect avenue to think about this pattern of species loss using a novel evolutionary perspective,” Davis said. Primack and Miller-Rushing had observed that the plants around Walden Pond were producing flowers on average more than a week earlier than they were in Thoreau’s time, when temperatures were 4.3 degrees Fahrenheit lower. The shift in flowering times, however, was not uniform—some species groups were flowering more than three weeks earlier, while others were flowering “like clockwork around mid-May,” Davis said. Applying these data to an evolutionary perspective, the researcher--s found that the species that adjusted to the changing climate survived, while the “clockwork” plants had declined in number. “The real downer about this all is that the groups that are being hardest hit are our most cherished temperate flowering species: orchids, buttercups, roses, dogwoods, violets,” Davis said. “These are the kind of species that people go out on botanical forays to see, and now they can’t see them.” Davis said that about one-quarter of the plants Thoreau observed in his notebooks have become extinct, and that 36 percent now are in such low abundance that they are “hanging by a thread.”

Walden; Or, Life in the Woods.
White Pond and Walden are great crystals on the surface of the earth, Lakes of Light. If they were permanently congealed, and small enough to be clutched, they would, perchance, be carried off by slaves, like precious stones, to adorn the heads of emperors; but being liquid, and ample, and secured to us and our successors forever, we disregard them, and run after the diamond of Kohinoor. They are too pure to have a market value; they contain no muck. How much more beautiful than our lives, how much more transparent than our characters, are they! We never learned meanness of them. How much fairer than the pool before the farmers door, in which his ducks swim! Hither the clean wild ducks come. Nature has no human inhabitant who appreciates her. The birds with their plumage and their notes are in harmony with the flowers, but what youth or maiden conspires with the wild luxuriant beauty of Nature? She flourishes most alone, far from the towns where they reside. Talk of heaven! ye disgrace earth..



Basic Premises:
1. An individual is the spiritual center of the universe - and in an individual can be found the clue to nature, history and, ultimately, the cosmos itself. It is not a rejection of the existence of God, but a preference to explain an individual and the world in terms of an individual.
2. The structure of the universe literally duplicates the structure of the individual self - all knowledge, therefore, begins with self-knowledge. This is similar to Aristotle's dictum "know thyself."
3. Transcendentalists accepted the neo-Platonic conception of nature as a living mystery, full of signs - nature is symbolic.
4. The belief that individual virtue and happiness depend upon self-realization - this depends upon the reconciliation of two universal psychological tendencies:
a. the expansive or self-transcending tendency - a desire to embrace the whole world - to know and become one with the world.
b. the contracting or self-asserting tendency - the desire to withdraw, remain unique and separate - an egotistical existence.
This dualism assumes our two psychological needs; the contracting: being unique, different, special, having a racial identity,ego-centered, selfish, and so on; the expansive: being the same as others, altruistic, be one of the human race, and so on.
The transcendentalist expectation is to move from the contracting to the expansive. This dualism has aspects of Freudian id and superego; the Jungian shadow and persona, the Chinese ying/yang, and the Hindu movement from Atman (egotistic existence) to Brahma (cosmic existence).

THOREAU'S PENCILS
Thoreau's clay-mixed graphite wasn't entirely original. The Germans had used something like it a few years earlier. It's not clear whether Thoreau had any inkling of the German process. But what is clear is that he transcended it. He developed a new grinding mill. He developed all sorts of process details. Historian Henry Petroski adds to the list of Thoreau's inventions -- a pipe forming machine, water wheel designs. They probably never told you in your English class that Thoreau often signed the words "Civil Engineer" after his name. Yet Thoreau was content to walk away from an invention without making personal profit of it. He was, after all, the same man who wrote ;... the seventh day should be man's day of toil ... and the other six his Sabbath of the affections and the soul -- in which to range this widespread garden, and drink in the soft influences and sublime revelations of Nature ...

Many readers mistake Henry's tone in Walden and other works, thinking he was a cranky hermit. That was far from the case, as one of his young neighbors and Edward Emerson attest. He found greater joy in his daily life than most people ever would. He traveled often, to the Maine woods and to Cape Cod several times, and was particularly interested in the frontier and Indians. He opposed the government for waging the Mexican war (to extend slavery) eloquently in Resistance to Civil Government, based on his brief experience in jail; he lectured against slavery in an abolitionist lecture, Slavery in Massachusetts. He even supported John Brown's efforts to end slavery after meeting him in Concord, as in A Plea for Captain John Brown.

Referring to the American government, the greatest American Anarchist, David Thoreau, said: "Government, what is it but a tradition, though a recent one, endeavoring to transmit itself unimpaired to posterity, but each instance losing its integrity; it has not the vitality and force of a single living man. Law never made man a whit more just; and by means of their respect for it, even the well disposed are daily made agents of injustice."

Ziga Vodovnik interviews Howard Zinn — Rebels Against Tyranny.
There is, of course, much with which to disagree, but overall, it's a valuable read, especially the parts about the philosophy's American history:
One of the problems with dealing with anarchism is that there are many people whose ideas are anarchist, but who do not necessarily call themselves anarchists. The word was first used by Proudhon in the middle of the 19th century, but actually there were anarchist ideas that proceeded Proudhon, those in Europe and also in the United States. For instance, there are some ideas of Thomas Paine, who was not an anarchist, who would not call himself an anarchist, but he was suspicious of government. Also Henry David Thoreau. He does not know the word anarchism, and does not use the word anarchism, but Thoreau’s ideas are very close to anarchism. He is very hostile to all forms of government. If we trace origins of anarchism in the United States, then probably Thoreau is the closest you can come to an early American anarchist. You do not really encounter anarchism until after the Civil War, when you have European anarchists, especially German anarchists, coming to the United States. They actually begin to organize. The first time that anarchism has an organized force and becomes publicly known in the United States is in Chicago at the time of Haymarket Affair.[....]Well, the Transcendentalism is, we might say, an early form of anarchism. The Transcendentalists also did not call themselves anarchists, but there are anarchist ideas in their thinking and in their literature. In many ways Herman Melville shows some of those anarchist ideas. They were all suspicious of authority. We might say that the Transcendentalism played a role in creating an atmosphere of skepticism towards authority, towards government.


Traditional individualist anarchism
Theorists in traditional American individualism (historically called "Boston anarchism" at times, often derogatorily) include Josiah Warren, Ezra Heywood, William B. Greene, Benjamin Tucker, Lysander Spooner,Stephen Pearl Andrews, and Henry David Thoreau. Josiah Warren is commonly regarded as the first individualist anarchist in the American tradition. He had participated in a failed collectivist experiment called "New Harmony" and came to the conclusion that such a system is inferior to one where individualism and private property is respected. He details his conclusions in regard to this collectivist experiment in Equitable Commerce. In a quote from that text that illustrates his radical individualism, he says: "Society must be so converted as to preserve the SOVEREIGNTY OF EVERY INDIVIDUAL inviolate. That it must avoid all combinations and connections of persons and interests, and all other arrangements which will not leave every individual at all times at liberty to dispose of his or her person, and time, and property in any manner in which his or her feelings or judgment may dictate. WITHOUT INVOLVING THE PERSONS OR INTERESTS OF OTHERS" (Tucker's emphasis). Warren coined the phrase "Cost the limit of price" to refer to his interpretation of Adam Smith's labor theory of value. The labor theory holds that the value of a commodity is equal to the amount of labor required to produce or acquire it. Warren maintains, therefore, that the price of labor of one individual must be equal to the production of the equivalent amount of labor of every other individual. And, consequently, that an employer who labors not, but retains a portion of the produce of an employee as profit is guilty of violating the "cost principle" --he recieves payment without cost to himself. Warren regards this practice as "invasive." If an employer is to be paid, he must not be paid unless he labors. In 1827, Warren put his theories into practive by starting a business that he called a "labor for labor store" in Cincinatti, Ohio. Warren, like all the American individualists, that followed was a strong supporter of the right of individuals to retain the product of their labor as private property. Josiah Warren (1799-1874) was an American social reformer and commonly regarded as the first individualist anarchist. ... Ezra Heywood was a 19th century North American individualist anarchist, slavery abolitionist, and feminist. ... Benjamin Tucker (April 17, 1854 - 1939) was Americas leading proponent of individualist anarchism in the 19th century. ... Lysander Spooner (January 19, 1808 - May 14, 1887) was an American political philosopher, abolitionist, and legal theorist of the 19th century. ... Stephen Pearl Andrews (March 22, 1812 - May 21, 1886) was an anarchist. ... Henry David Thoreau Henry David Thoreau (July 12, 1817 – May 6, 1862; born David Henry Thoreau) was an American author, pacifist, tax resister and philosopher who is most famous for his essays Walden on appreciation of nature and Civil Disobedience (available at wikisource) on civil disobedience. ... New Harmony is a town located in Posey County, Indiana. ... His Inquiry into the Nature and Causes of the Wealth of Nations was one of the earliest attempts to study the historical development of industry and commerce in Europe. ... The labor theory of value (LTV) is a theory in economics and political economy concerning a market-oriented or commodity-producing society: the theory equates the value of an exchangeable good or service (i. ...

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Monday, November 24, 2008

There Is An Alternative To Capitalism

While the defenders of capitalism attempt to pose the solution to the crisis of their beloved capitalist system in terms of increasing Free Trade, opposing government regulations, transparency, social responsibility, but still promote the public bail out of private captial with no strings attached, the reality is that there is a spectre haunting capitalism today; the zietgiest of Marx.

The solution is not reforming capitalism, or creating statist capitalism, but worker self management the socialization of capital by the community in other words real authentic socialism.

Here are some recent commentaries on the return of spectre of Marx to haunt 21st Century Capitalism.

Friedman looks enviously and longingly at the public transport system in Europe, which helps in the reduced use of private vehicles and consequently in the reduction of carbon fumes, though on the other hand he favours free enterprise. The paradox seemingly stares the reader in the eye, though the recent collapse of capitalism has triggered the re-examination of a free market obsession, leaving no doubt that rampant privatisation is not the answer to global prosperity. And the spectre of Karl Marx returns to haunt the world again.

There will be one prominent gatecrasher at the G20 summit in Washington today: Karl Marx will be much in evidence, gleefully dancing on the grave of capitalism. With major American and European belly-up banks turning to their governments for rescue, capitalism does seem to have self-destructed in fulfilment of Marxian prophecy. The question facing the G20 meet is: What new geo-economics do we evolve, not only to tide over the current panic but to ensure that such crises of confidence do not recur? Conventional experience teaches us that competition makes for a better delivery system of goods and services than a monopoly, whether it is state-controlled or otherwise . Monopolies, by and large, don't work; competition, by and large, does. So what went wrong in the current scenario? One obvious answer is lack of transparency in the banking and financial sectors. Free market competition assumes free choice, which in turn presupposes access to reliable information on which to make that choice. If information is concealed, or falsified, as it was in the current case (where hugely leveraged trade in 'exotic derivatives'
created a soap bubble that burst), the 'free' goes out of the free market and the system collapses, requiring a bailout. Constant vigilance (caveat emptor) is the price we pay for a free market. So, far from being dead, capitalism needs to be more wide-awake than ever before. Instead of getting less competitive it needs to get more competitive, i.e. anti-monopoly. For far too long, the US has enjoyed a monopoly raj over the global economy thanks to its dollar which forms the basis of all international trade. Maybe it's time to think of a new unit of global exchange, based on a basket of currencies.

Business to hang itself on loan plan
Terence Corcoran, Financial Post Published: Wednesday, November 05, 2008
If we have learned anything about business and economics over the centuries, it is that we cannot look to business for our free market economic principles. Whether individually or in groups, known affectionately as associations and coalitions, we can be certain that the people who run business will always and everywhere pursue economic ideas that first suit their interests; all else is conveniently disposable ideological baggage. When the going gets tough, business gets weak on the core ideas that make business possible.
Adam Smith recognized the essential moral flabbiness of the individual business person or corporation. "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." Karl Marx had a wittier take on the nature of the beast: "The Capitalists will sell us the rope with which we will hang them."


Government by market gods or for the people?
Over the past 20 years of economic rationalist (neo-liberal) economic policies, western governments and third world governments (under duress from the International Monetary Fund) have pursued financial and economic deregulation, privatisation, unrestricted foreign investment and free trade policies. They have wound back the role — and with it the sovereignty — of governments, effectively leaving critical policy matters to the so-called free markets. This process has involved a significant transfer of power from elected governments to monopoly capital.Decisions regarding currency, interest rates, production, trade, provision of services, price of services, etc have been handed over to the markets. Every piece of deregulation hands over more power. But who or what are these markets? Who controls them? Where is this power being transferred to?It is being passed to the largest, most powerful transnational corporations and financial institutions. The most powerful of these monopolies are the financial conglomerates. They manipulate markets, they stand over and dictate to governments, they sit on the boards of central banks, they allocate credit, and so on, and in the case of the US, own the Federal Reserve.The investment banks, insurance companies, managed, hedge and other funds have gone in pursuit of fast and big profits, speculating on high risk products. They gamble on movements in prices on the stock exchange, they trade in debt, bet on profit results, and a myriad of other "products". They relied on ever expanding markets and endless growth, on bubbles that one day had to burst.Their empires were built on debt and much of the money they risked was not their own, but drawn from superannuation, retirement and other funds. In the process, the billions of dollars that they gambled with were withdrawn from the real economy. They were withdrawn from human needs, from social development, basic services, infrastructure, and from food production.Every dollar directed to speculation was a dollar less spent on consumption, reducing demand for the goods and services being produced. This massive withdrawal of money from circulation in the real economy of production, distribution and exchange exacerbates an already developing crisis of over production and recession.These crises are endemic to capitalism. They arise out of the exploitation of workers who are not paid the full value of the work they put in producing goods and providing services. The gap between the value of their labour and what they are paid is what Karl Marx called surplus value — profit. Employers never let up in their struggle to reduce the cost of labour by such means increasing output per worker, lower wages, and so on to increase their profits.

Politics keeps Left
WESTERN governments are nationalising industry to bail out the economy but you won't catch them calling it socialism.
Did Karl Marx get it right? Many will argue yes, especially in the wake of the most severe global financial crisis in seven decades, and after last week's Washington G20 summit at which governments pledged a greater interventionist role in economic affairs.
The Hard Left of politics, including in Australia, will say Marx – the 19th-century German political economist and father of modern communism – correctly predicted the failure of the capitalist free market.
After all, as Canadian publisher Martin Masse notes, Marx's fifth proposal in his 1848 Communist Manifesto calls for the centralisation of credit in the banks of the state.
Importantly, G20 has resolved to undertake further stimulatory spending to stabilise the financial system, and the reform of the IMF and World Bank as global financial instruments. And while the free-trade mantra was repeated, there's already talk in the US and elsewhere of a return to the most trenchant trade barriers since the 1970s.
All of this follows record government bailouts of banks and industry in the US, Britain, Germany, France and elsewhere that has been, for want of a better term, covert nationalisation. In Australia, Prime Minister Kevin Rudd has provided his government's own bank guarantee, and propped up ABC Learning and the car industry with yet more taxpayer dollars.
Some have quipped that Western capitalist leaders have done more for socialism in the past few weeks than communist parties have done in a century. That's probably hyperbole, but the free market, small government orthodoxy that has dominated Western politics for the past three decades, does appear to be over. At least for now, until the cycle again turns, and the stifling effects of big government again produce stagflation. The calls will then be for a return to the free market.
In that sense, Marx didn't get it right. But the global financial crisis inevitably will see a sharpening of the traditional Left-Right ideological divide, one blurred in recent decades as the old class politics gave way to the new politics of culture and environment.


Revenge of the Left across the world
No matter that statist policies were responsible for this global crisis in the first place. It was Western governments that set interest rates too low for too long, encouraging us all to abuse credit.
It was Eastern governments that held down their currencies to pursue mercantilist trade advantage, thereby accumulating vast foreign reserves that had to be recycled. Hence the bond bubble. This is the deformed creature known as Bretton Woods II. Protectionist Democrats are right to complain that the game is rigged. Free trade? Laugh on.
But at this point I have given up hoping that we will draw the right conclusions from this crisis. The universal verdict is that capitalism has run amok.
In any case the damage caused as credit retrenchment squeezes real industry is likely to be so great that Barack Obama may have to pursue unthinkable policies, just as Franklin Roosevelt had to ditch campaign orthodoxies and go truly radical after his landslide victory in 1932. Indeed, Mr Obama – if he wins – may have to start by nationalizing the US car industry.
For those who missed it, I recommend Edward Stourton's BBC interview with Eric Hobsbawm, the doyen of Marxist history.
"This is the dramatic equivalent of the collapse of the Soviet Union: we now know that an era has ended," said Mr Hobsbawm, still lucid at 91.
"It is certainly greatest crisis of capitalism since the 1930s. As Marx and Schumpeter foresaw, globalization not only destroys heritage, but is incredibly unstable. It operates through a series of crises.
"There'll be a much greater role for the state, one way or another. We've already got the state as lender of last resort, we might well return to idea of the state as employer of last resort, which is what it was under FDR. It'll be something which orients, and even directs the private economy," he said.
Dismiss this as the wishful thinking of an old Marxist if you want, but I suspect his views may be closer to the truth than the complacent assumptions so prevalent in the City.

How to save the economy
Marx, Joseph Schumpeter and Keynes shared one insight at odds with until-recent modern orthodoxy.
They all knew that capitalism is inherently unstable, that it soars and collapses – a mixture of "mania and panic" as we all now know too. There have been at least half a dozen such shocks in the past 25 years – the Thatcher-Reagan era, you might say – though this is the big one, as Vulcanologists might put it.


Global financial crisis is the “end of the era” for capitalism
Eric Hobsbawm, the 91-year-old Marxist historian, author and academic, told MSN Money the past two decades of unfettered capitalism had been as damaging as Soviet economic totalitarianism.

In his responses to MSN Money's questions, Hobsbawm predicted that far from being a hiccup or correction of the markets, "the present crisis is certainly the end of the era in the development of the global capitalist economy."
Hobsbawm's views on the present crisis present a radical counterpoint to mainstream financial journalism and uncover potential causes and repercussions that have not received much coverage.
The media and economic analysts have given many explanations of why the crash happened and who is to blame. Few have blamed free market capitalism itself as the cause of its own inevitable demise. Many point instead to elements within the system that could have been controlled better.
The New York Times, for instance, argued that Alan Greenspan's support for derivatives while Federal Reserve chairman from 1987 to 2006 "helped enable an ambitious American experiment in letting market forces run free. Now, the nation is confronting the consequences." It said that if Greenspan had acted differently "the current crisis might have been averted or muted."
Hobsbawm in contrast told MSN Money that he believed a "free market theology," a sort of blind faith in capitalism, was the root cause.
In the e-mail interview, Hobsbawm said that running global economies on an "effectively unregulated basis" is as doomed to failure as "the project of a totally state-run planned economy in the Soviet systems." He said he welcomed state intervention as a "return to common sense".
We might be entering a period when traditionally socialist principles hold sway, and if this means that the traditional aims of socialism - to create conditions for a good life for all people equally and to subordinate profit to human values - are adhered to, then so much the better for Hobsbawm.



Do recent events herald a fundamental change in the way markets are regulated and economies are structured or will they prove to be blips in the inevitable march of market capitalism? How do you think the world will remember the economic events of 2008 in years to come?


The present crisis is certainly the end of the era in the development of the global capitalist economy which began around 1973. While globalisation continues in most aspects of life except politics, it was always an error to suppose that it inevitably took the extreme, indeed pathological, form indicated by the free market theologians. I expect its rate to slow down somewhat in the next few years. However, forecasting is not the business of historians. The way markets are regulated and economies structured has too many unpredictabilities. I imagine it will take many years before a new pattern of the world economy will fully emerge. When it does it will probably be relatively stable for several decades until the next crisis of the economy. Nothing is forever in history.


In your collection of essays, Globalisation, Democracy and Terrorism you write that "Since 1997-8 we have been living in a crisis of the capitalist world economy," and of how America's economic problems might mean an end to their "foreign military adventures". Are recent events the most obvious signs yet of a shift in the world order away from US hegemony?


The United States remains, and will remain, a major world power. It is, after all, single handed the most populous country in the world after China and India and the present crisis shows that it remains the fulcrum of the world economy. However, the shift of economic power away from it and towards south and east Asia is clear and will not be reversed. It no longer dominates the world economy or is able to impose its own rules and conventions on world business and other governments' policies. The Iraq and Afghanistan wars have demonstrated that its overwhelming high tech military power is incapable of imposing its political solutions even on weak countries. The brief era when it thought it could exercise a single-handed hegemony over the globe is over, but it will remain an essential and important element in a more pluralist world order.

FREE TRADE DEPRESSION
In toto, what we are witnessing is no less that the greatest, involuntary, transfer of wealth and power in the history of the world – all due to a trade regime within which we are forced to trade with the greater slave, regardless of consequence or end result. In the corporate media, no one is asking trade with whom, on what terms, and to what end? In addition, no dismal result is ever ascribed to “free” trade - much like the Fed is never blamed for the Great Depression and the Smoot-Hawley bogeyman is touted as cause one. Indeed, it is Free Trade Uber Alles today, and for free traders their imagined ends justify their fascist, undemocratic, means which, as a result, mean endless social and economic cost. All in all, these “free” policies mean a demise resulting in the most expensive trade possible in which both economic benefit and social power are privatized to the few while all the immense costs are socialized upon the many. Current trade policies are neither intelligent economy nor the result of majority rule but, rather, reflect a religious-like absolutism - a naïve and perfidious faith in the service of Capital alone. Despite ever-growing trade deficits, job losses, dependency upon imports, phony export statistics, doctored employment statistics, and willingness to undermine our currency "in order to compete," free traders go on pretending there is nothing wrong with our mounting deficits, loss of capacity, and all the myriad social costs on this paved road to depression. Indeed, free traders have no answers to growing deficits or the potential loss of nearly every industry, only a blind and irresponsible faith in a centuries-old English, imperial, dogma unfit for a still very disparate and dangerous world – i.e., one in which capital now moves at the speed of light. Even US intelligence agencies are now warning that globalization has become a serious threat to US security due to its unwanted, negative, effects on economies around the world. In other words, “free trade” and globalization are breeding global dissent, terrorism, oligopoly and oligarchy. Firstly, for trade to be truly free you have to be free not to trade, otherwise it is forced trade. Worse, no morality, freedom, justice, human rights, child labor, or ecological impacts are considered or calculated – meaning the regime is a clear recipe for universal loss. Under capital’s GATT/NAFTA, even our energy–efficiency standards are a crime, as are recycling laws, attempts to protect family farmers, and virtually any Buy-American effort or legislation. In short, in a still very disparate and dangerous world - wherein huge magnitudes of differences in wages, standards and human rights exist - to have virtually no incentives working to improve rather than reward the greater slave and their worse conditions, is simply to reward the criminal, the dictator, the terrorist, the Red Chinese generals, all the greater exploiters of mankind and the environment, and punish the free, democratic, and ecologically responsible. It is utter perversity to give away entry into our G7 markets and get nothing in return – except the promise of evermore lob loss, lower currency values, corporate hegemony, and endless rewards for the greater-slavemaster. Yet this is capital’s criminal nonsense, which is guaranteed to end in riot, revolution, and new pogroms against the rich… as Karl Marx predicted. To avoid depression, the concept of "comparative advantage" (i.e., a 250 year old amoral theory once appropriate for agricultural products in a world where capital was relatively stationary) must be re-mediated by truly free, democratic, and ecologically responsible countries and policies. Otherwise, neo-slavery, child labor, ecological ruin, and currency destruction are "advantages" which cannot be lost by economies forcibly turned into export machines - only to generate huge overcapacity, dependency, local and global ruin, and our complete capture and enclosure by capital. In my book Cap-Com, The Economics Of Balance, I propose a re-writing of GATT/NAFTA to give nations, and the great majority of wage-earning people, the freedom to define their 'free markets’ - as opposed to Capital having all the power to define the terms, dictate the legislation, and then extort the wage-earning majorities of every country. This despicable, undemocratic, regime is guaranteed to pervert economy, ecology, freedom, and lead to riot and revolution as the backlash to forced globalization gathers steam.



'Capitalism is Obsolete-Mao and Marx Will Soon Be Back'

Sitting on the shady patio of a seaside hotel in Colaba, Samir Amin speaks in fluent English with a French accent . It's difficult to imagine a more global citizen than this disarming economist. Born in Egypt, to Egyptian and French parents, and educated at the Sorbonne, Amin has worked in several African countries , and is now director of the Third World Forum in Dakar, Senegal. He is best known as co-founder of the "World Systems' ' school of thought, which produced landmark critiques of global capitalism

The latest financial collapse is symptomatic of a deeper crisis in the capitalist global structure, Amin said. "Capitalism is obsolete because it was patently superfluous. It believed in plundering natural resources and perpetuating a system which vested in a handful the authority to take political and economic decisions for mankind," he added.
A social system must integrate the common will and aspirations of the people , he said, adding, "If it fails to respond to the people, then it has to be changed, because it has turned obsolete... Marx and Mao will soon be back."
Amin warned that the superpowers would do everything to restore the financial system, to maintain their profits and continue the exploitation of cheap labour and natural resources. He said a constant journey to democratisation alone would strengthen developing countries . "Democratisation should mean social progress... upholding the right to food, education, shelter and health care." Trade, he added, should not be equalised with free trade. Responding to a question , Amin said the choice was not between socialism and capitalism, but between socialism and barbarism.


Liberal capitalism, Amin said, is as much an ideology as dogmatic Marxism. The conviction that markets are self-regulatory "should make anybody laugh today ," Amin said.

Building a Better World: A Dialectical Approach
That the world is sick is beyond doubt. But how sick is it? Moderately sick, as the champions of the Neo-Liberal Globalisation (NLG) proclaim? Or incurably, terminally, sick, as some extreme critics maintain? Or very sick, but probably not beyond saving, as I believe, based on the work that I have done in the last three years or so on this subject. So, in other words, that Human ‘Civilisation’ faces the most serious crisis in its ten to twelve thousand years History (since the invention of agriculture in the Fertile Crescent of Mesopotamia) is beyond doubt.
The risk that It could be destroyed, in large part or even completely, is quite substantial; moreover, the Planet on which It sits could suffer catastrophic damage that may take several centuries (if not millennia) to repair. Therefore, assuming (a fair assumption) that we are at a critical stage of our History, and that the appropriate question to ask is no longer ‘If’ disastrous events will occur, but ‘When’, Humanity’s most urgent task appears to be what to do to ‘deal with’ these inevitable disastrous events. Most experts agree that it is not too late to significantly diminish, if not entirely eliminate, the terrible consequences of these catastrophic events. They may be wrong. But we must hope – even if sometimes against hope -- that they are right, and roll up our sleeves, and put up the best fight we can to build a better and sustainable world.
What Can Be Done? -- What Should Be Done? I have come to believe, based on the work that I have done (and trusting my intuitive intelligence)[1] that a Dialectical Approach is the best one. Thus, the Thesis, Antithesis, and Synthesis that follow this Introduction. In the Thesis, I will be presenting the arguments of the proponents of the Reformist ‘Solution’; in the Antithesis, those of the Radical (or Revolutionary) ‘Solution’; and in the Synthesis, my final thoughts and opinions.
The proponents of the Reformist ‘Solution’ believe that Globalisation is basically Good, and that whatever problems it may have, can be ‘fixed’ or corrected. The advocates of the Radical ‘Solution’ try to demonstrate that NLG is basically Bad, because its problems are of a structural and institutional nature and cannot be ‘fixed’, or corrected; which means that NLG must be scrapped, and replaced. I will try to show that the correct solution, inevitably, must incorporate aspects of both. Moreover, we need a pragmatic solution which makes it necessary for the two sides to make concessions and compromises. That said, I must also underline that I believe the correct solution is much closer to the Radical one, than it is to the Reformist one.
Globally speaking, there are four Major Players: the Governments of the Rich and Powerful Countries (GRPCs);[2] the Large Multinational Corporations (LMNCs); the International Organisations (IOs); and the Civil Society Organisations (CSOs). The GRPCs and LMNCs are the proponents of the Reformist Solution; the CSOs, of the Radical Solution; and the IOs have positioned themselves between the two, trying to find constructive solutions and thus bring them together. The main difference, I believe, between the IOs and my solutions, is that the IOs’ solutions have a bigger Technocratic content, whereas I think that the Spiritual Dimension is essential.
The main problems are (not necessarily in that order; the following order reflects my personal sensibilities): the Persistence of Extreme Poverty; the (rapidly growing) Wealth and Power Gap between the rich and the poor; Global Warming and its catastrophic consequences, due to unlimited economic growth and unbelievable waste (especially in the United States); the sizeable risk of a Third (or fourth) World War, owing to the competition for scarce resources getting out hand; Nuclear Proliferation; International Terrorism; and Human Migration out of control.


The road away from Serfdom

In a world where Liberal usually means right of centre, non-Americans are astonished to hear "Liberal' launched as a cuss-word by people who believe that the world was created in seven days and that dinosaurs and humans once walked the earth at the same time.
A few days ago it was announced that Volkswagen had overtaken Exxon-Mobil as the world's most highly valued company. In a world where 'socialism' is an even more outrageous insult than 'liberal', it is startling to contemplate the fact that Volkswagen is a product of the post-war British Army of the Rhine directed by the 1945 British government of Clement Atlee- a bunch of socialist commissars who reinvented Hitler's 'People's Car' and put it on the road.
It was these same socialists who were responsible for civilising industrial relations in Germany by inventing the idea of Co-Determination, a system where the worker participates at every executive level of the German corporation and worker directors sit on corporate boards.
Co-Determination is an idea which has been so successful that it has transformed European social relations and flowered into the adoption of an EU social agenda - aimed at full employment and a more inclusive, participatory society. On December 9, 1989, the member states, with the historically ironic exception of the United Kingdom, adopted a declaration constituting the Community Charter of the Fundamental Social Rights of Workers.
Among the areas regulated in this charter are such matters as employment and remuneration, improvement of living and working conditions, social protection, freedom of association, collective bargaining, equal treatment of men and women, industrial health, the protection of children, elderly and disabled persons; and information, consultation and participation of workers in decision-making. Most of these principles are still, in the United States, subjects of bitter dispute.
A couple of weeks ago, President Bush, in a piteous appeal for a return to the wild, begged his fellow world leaders not to abandon the principles of laissez-faire when they come to remake the world in the aftermath of the current economic meltdown and the almost inevitable social catastrophe to follow.
The next president of the United States will need to come to terms with a world which no longer works according to American principles and rules. Free trade, globalisation, and the ideas behind the multilateral agreement on investment are obsolete.
This time, as in every crisis of capitalism, the pundits are dashing to the Internet and the libraries to reread Karl Marx. Marx was not a sentimentalist. He hated neither capitalism nor capitalists. They were objective realities and functioned according to certain principles. Capitalism was doomed to fail because of its fundamental internal contradictions - not because of the greed of its practitioners.
These contradictions include the antagonism between the social, collective nature of production on the one hand, and private ownership of the means of production on the other; and the antagonism between the world market and the limitations of the nation state. Capitalism is based on production for profit and not for social need. The working class creates new value but receives only a portion of that new value back as wages.
The capitalists take the rest - the surplus. As a result, the working class collectively cannot afford to buy back all the goods it produces. Capitalism destroys its own markets by pauperising its workers and by over-production. Marx predicted globalisation and the worldwide effects we now experience.
The opponents of socialism, the proponents of laissez-faire, tend to believe like Margaret Thatcher that "There is no such thing as society" and like Ronald Reagan that "Government is not the answer, Government is the problem." The ultra-capitalists and globalisers abhor what they call "the Nanny State" - the welfare state that attempts to guarantee a basic level of civilised existence for all.
In FA Hayek's "Road to Serfdom?" the problem is stated: "In place of individual liberty, socialism offers security. It promises protection from personal economic necessities and restraints, and an equality of economic well-being." Hayek was not a socialist.
The main architect of the latest disaster, Alan Greenspan, has proclaimed himself confounded by the turn of events. He had a set of rules which he says had always worked. Until now! He cannot understand the disaster over which he presided.
Greenspan is a disciple of Ayn Rand, one of recent history's most eminent false prophets. Rand's theory - so-called 'Objectivism' - holds that human beings must rationally be selfish, putting individual self-interest first. She therefore rejects the ethical doctrine of altruism - a moral obligation to live not only for one's self but for the sake of others. Since Rand took millions of words to define her philosophy, any summary of it is perforce crude. I do not think, however, that I have misrepresented her, or Hayek, or Greenspan, or Thatcher or Reagan or the millions of others to whom freedom is a purely personal attribute and life is every man for himself and the devil take the hindmost.
Some others of us think that none of us is free if any of us is unfree. The fascists believe that any sense of duty outside of self is a fetter, restricting real freedom. We believe that only by our mutual recognition of all our humanity are we human, and that our civilisation and survival depend on that. We are all in the same boat and on the same journey.
Individual liberty clearly means different things to different people. The International Republican Institute, headed by John McCain, no doubt believes that the people of Haiti are free, and free to starve to death, while the people of Cuba are enslaved by socialism, free education and the best health services in the world.
The IRI was one of the prime movers in usurping Haitian sovereignty to get rid of Jean Bertrand Aristide whom they consider a serious threat to real democracy as he was intent on building another socialist/welfare state alongside Cuba.


Now that the capitalists have established that the state - that is, us, we, the people - are the benefactors of last resort, it is time that we too discovered that truth. The billions we are spending to rescue banks and capitalists would be more efficiently and cost-effectively spent on rescuing our communities. If Obama becomes president, that is a discovery his constituents are likely to make sooner rather than later. In fact, some are already making it, demanding fundamental change and a new economic order.
The decay of imperial capitalism is bound to produce unforeseen byproducts, some beneficial, some toxic. Those who will survive need to be able to quickly choose between them.



Financial Crisis - Turning From Capitalism to Socialism
But both recent and historical experience shows an undeniable association between capital mobility and crises, especially when domestic institutions are weak and the harmonization of capital account liberalization and other policy reforms is inadequate.
In spite of the US government's bid to take more measures in order to prevent a total paralysis of the international economy, much of globalization and concomitant increases, in flows of capita and trade have led to high volatility in international financial markets.
Some of these have erupted into crises, in the form of runs and banks-both national and multinational-as well as attacks on currencies. The resultant effects have included the significant increase in contagion and the collapse of both venerable private banks as well as national institutions.
The public sector ( US government) therefore, had no choice but to work on a bailout plan of these institutions worth 700bn dollars, and recaptured state control of these institutions to keep the economy from the blink of collapse-one can be justified to call it nationalization in the face of capitalism failure.
Isn't this Socialism? The greatest socialist ideology of all times, KARL MARX had envisaged this trend of events in his communist manifesto on the chapter entitled "Historical Materialism", where the invisible hand as foretold by ADAM SMITH an architect of free market forces (Non-government intervention in the economy), had argued that the economy was self-regulating and self-sustaining.
That there was essentially nothing like market failure since the economy would correct itself. He says that law maintained that, "supply created its own demand". Therefore, there can never be a crisis in the real market.
All these people had it wrong; the current trend has demystified them and vindicated the great Karl Marx. I wish he could be present to witness his prophesy coming true.
Marx had prophesied that capitalism must eventually pave way to socialism as a matter of fact, due to the inevitable social forces of production because of surplus production (indicating exploitation of the proletariats by the bourgeoisie).
The gains from trade and economic reforms have to be lost now; it's a painful process to the monetary consensus (commonly referred to as the Washington consensus). Most predictions have been that, socialism is the end process of development.
The very reason why now governments are taking over the banking institutions is to recover from this mess of laissez faire ordinarily, government control (regulation) of the economy is a preserve of the socialist economies (in fact a major characteristic of socialist economies is government ownership of means of production).
The structural adjustment programs and the neo-liberal economic policies, no longer hold as we talk because they are based on the very market model of deregulation (what some called man eat man society), where market participants behave as if they are in a jungle paving way for survival for the fittest-Darwin's theory in retrospect.
We are beginning to see a shift in capitalist architects moving towards the left (embracing government control of the economy) due to the worst economic crisis since 1930's. The new world order ushered in after world war two may be heading for u-turn.


What remains from the Communist Manifesto in 2008, one hundred and sixty years after its publication? As David Harvey observes in his brilliant preface to this edition, the present financial crisis corresponds in an astonishing way to the predictions of Marx and Engels: “ the society of the ‘too much’, of ‘overproduction’ and excessive speculation, has plainly broken down and reverted, as it always does’ to a ‘state of momentary barbarism”.

In many respects, the Manifesto is not only current, but more current today than 160 years ago. Let’s take for example its diagnosis of capitalist globalisation. Capitalism, say the two young authors, is in the process of forging a process of economic and cultural unification of the world under its leadership: “The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country. To the great chagrin of Reactionists, it has drawn from under the feet of industry the national ground on which it stood. (...) In place of the old local and national seclusion and self-sufficiency, we have intercourse in every direction, universal inter-dependence of nations. And as in material, so also in intellectual production.”
It is not only about expansion but also domination: the bourgeoisie “compels all nations, on pain of extinction, to adopt the bourgeois mode of production; it compels them to introduce what it calls civilisation into their midst, i.e., to become bourgeois themselves. In one word, it creates a world after its own image." Indeed, in 1848 that constituted much more an anticipation of future tendencies than a simple description of contemporary reality. It is an analysis which is much truer today, in the epoch of “globalisation", than 160 years ago, at the time of the editing of the Manifesto.
In fact, capital has never succeeded as it has in the 21st century in exerting a power so complete, absolute, integral, universal and unlimited over the entire world. Never in the past was it able, as today, to impose its rules, its policies, its dogmas and its interests on all the nations of the globe. International financial capital and multinational companies have never so much escaped the control of the states and peoples concerned. Never before has there been such a dense network of international institutions - like the International Monetary Fund, the World Bank, the World Trade Organisation - devoted to controlling, governing and administering the life of humanity according to the strict rules of the capitalist free market and of capitalist free profit. Finally, never at any time prior to today, have all spheres of human life – social relations, culture, art, politics, sexuality, health, education, sport, entertainment - been so completely subjected to capital and so profoundly plunged into the " in the icy water of egotistical calculation".
Add to this that the Manifesto is much more than a diagnosis - now prophetic, now marked by the limits of its time – of the global power of capitalism : it is also and above all an urgent appeal for international combat against this domination. Marx and Engels had perfectly understood that capital, as a world system, can only be vanquished by the world historical action of its victims, the proletariat and its allies.


The return of the prophet
In decades past, a crisis on this scale would have presented an immediate opportunity for the 'left'; but the 'left' as it is- defeated, tamed and fragmented- is in no position, as yet, to rise to the occasion. As Paul Gillespie observed:
Note that most of these leaders are from the centre right, not the centre left. Centrism is resurrected from the wreckage of radical right-wing deregulation, more than is the left. The argument is about re-regulation rather than redistribution, the public rather than the private interest, transnational against national sovereignty.So far, that is. The traditional left has had little operational purchase on the crisis other than I-told-you-so utterances about their inherently cyclical nature. Confronted with this international convulsion, "the Left" is for the most part as weak and tame as it certainly is in Ireland. Popular anger here and in the US, for example, is far more radical, but not expressed in such vocabularies. This is a real challenge and also an opportunity for the left - just as it was for Marx and Engels 150 years ago.But does the left refer to traditional social democracy, which accepts market capitalism but seeks to equalise it; to the "third way" variety popularised by Blair and Brown; or to the "democratic socialism" of post-Stalinist parties? What of more recent green socialism? How to classify the rump of traditional Stalinist parties in Europe, India and elsewhere? Should Chinese and Vietnamese one-state authoritarian capitalisms led by such communist parties be included? Where do the left of South Africa's ANC and the burgeoning variety of Latin American left-wing movements fit in? Is the US Democratic Party part of that family? How do all of these relate to the growing radical or far-left tendencies and social movements drawing on previous bottom-up revolutionary traditions such as Trotskyism and anarchism?
It is despite this present weakness and incoherence of the left that Gillespie makes a remarkable suggestion, implicit in which is the notion- fully supported by recent events- that the ideas of the 'free-market' right wing have been bankrupted by the capitalist crisis; hence the key ideological struggle of the near future will be between, on the one hand, socialists who utilise the ideas of Karl Marx and Friedrich Engels, and on the other hand, 'social democratic' supporters of a 'refounded', moderated version of capitalism, utilising the ideas of various other 'big names'. The Irish Times article concludes:
Big events revive these debates, but they need to be reinvented for new times. Conventional sociological post-industrialism accounts rendering left ideologies and movements redundant badly need revision in the light of falling living standards and growing inequalities. So does Fukuyama's notion of the end of ideology and the triumph of market capitalism - as he now admits. Big names too: Keynes, Polanyi, Kondratieff, Galbraith and now Paul Krugman are deployed by social democrats against those who want to resurrect Marx and Engels.
If it is true that the new main battle of ideas is to be fought between the social democrats (who wish to ressurect a moderated capitalism in order to save capitalism) and the Marxists (who wish to abolish capitalism), then the ideological success of the former will in large part depend on their practical ability to, in Gillespie's words, "create a 'refounded capitalism' more capable of withstanding such cyclical shocks by better global regulation"; as we shall see, not only better global regulation would be required in order for such a new-model capitalism to be better at withstanding 'cyclical shocks', but a reversal of the "falling living standards and growing inequalities" which characterise the contemorary model of capitalism would also be required if future crises on a similar scale to our current ongoing crisis- or even worse- are to be avoided.If such a radically different 're-founded capitalism' cannot be achieved, the Marx-inspired socialists will begin to make serious headway.So, is it possible that a new-model capitalism can arise in the course of, or subsequent to, the efforts of governments to cope with the current crisis? This is a matter on which a consideration of 20th Century history, and of the underlying causes of the present crisis, can both offer some guidance.Changing spotsFor proof that it could be possible to re-found capitalism on a different basis, we can look to the period following the catastrophic slump of the 1930s, particularly after World War Two, in the developed capitalist countries. For an extended period, the gap between rich and poor was steadily narrowed, the living standards and economic security of of working class people vastly improved, and cyclical shocks were minimised.
Marx had not predicted that such a development would be possible without the revolutionary overthrow of the capitalist system; and it seemed that the prediction of the non-Marxist social democrats, that capitalism could be reformed so thoroughly as to provide a much better and improving life for the majority of people, was vindicated.Then in the 1970s, a major economic crisis did occur; but it did not appear to resemble the 19th Century crises so vividly described by Marx, or indeed the crises of the early 20th Century, which broadly followed the same pattern. The main economic symptom of the crisis of the 1970s, as identified by the establishment experts of that time, was rising inflation (caused to some extent by rapidly increasing wages); and in order to defeat inflation (involving of course the defeat of the trade unions which had succeeded in raising wages faster than the increase in industrial productivity), the Western governments deliberately caused a rise in unemployment. That explanation of the economic disturbances of the time was far closer to the reality, which anyone could observe, than anything which could be found in the pages of Capital.Thus orthodox Marxism in the developed capitalist countries was already in ideological retreat, even before the events of 1989 to 1991. Since when, enthused by the defeat of inflation, the defeat of the trade unions and- that crown of glory- the defeat of the socialist regimes in Eastern Europe and the USSR; capitalism has returned, by leaps of privatisation, bounds of ending progressive taxation, and accelerating global deregulation- to a modernised, turbo-charged version of its former self.So, along comes the immense and frightening crisis; the basic nature of which- as anyone, even a president or a finance minister, can observe- can be understood with the help of volumes 1 to 3 of Capital. Indeed, Marx's dissections of the crises of the old-model capitalism of the 19th Century show remarkable similarities to the processes of our current debacle. Consider
this, for example:
In a system of production, where the entire continuity of the reproduction process rests upon credit, a crisis must obviously occur — a tremendous rush for means of payment — when credit suddenly ceases and only cash payments have validity. At first glance, therefore, the whole crisis seems to be merely a credit and money crisis. And in fact it is only a question of the convertibility of bills of exchange into money. But the majority of these bills represent actual sales and purchases, whose extension far beyond the needs of society is, after all, the basis of the whole crisis. At the same time, an enormous quantity of these bills of exchange represents plain swindle, which now reaches the light of day and collapses; furthermore, unsuccessful speculation with the capital of other people; finally, commodity-capital which has depreciated or is completely unsaleable, or returns that can never more be realised again. The entire artificial system of forced expansion of the reproduction process cannot, of course, be remedied by having some bank, like the Bank of England, give to all the swindlers the deficient capital by means of its paper and having it buy up all the depreciated commodities at their old nominal values. Incidentally, everything here appears distorted, since in this paper world, the real price and its real basis appear nowhere, but only bullion, metal coin, notes, bills of exchange, securities. Particularly in centres where the entire money business of the country is concentrated, like London, does this distortion become apparent; the entire process becomes incomprehensible; it is less so in centres of production.
On the political effect of capitalist crises, Marx noted:
Modern bourgeois society, with its relations of production, of exchange and of property, a society that has conjured up such gigantic means of production and of exchange, is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up by his spells [...] It is enough to mention the commercial crises that, by their periodical return, put the existence of the entire bourgeois society on its trial, each time more threateningly.
Among the many very pertinent aspects of Karl Marx's work is his insistence that all value is created in the productive sectors of the economy- the sectors which, since the start of this present crisis, the commentators have begun to call the 'real economy'- and that the wealth which is supposedly 'created' in the stock exchange and the financial sector is a combination of: (a) value which is transferred into that sector from the 'real economy' (in Vols. 2 and 3 of Capital, Marx goes into some detail about the mechanisms by which this takes place), and (b) fictitious value, resulting from speculation, the illusory nature of which is suddenly exposed when the inevitable crisis ensues.

On 21st October, Chris Dillow, a columnist for the Investors Chronicle, was sufficiently emboldened by his passing aquaintance with the works of Karl Marx, and no doubt also by his equal knowledge of the backgound of our current crisis, to write a blog article on which sought to refute the applicability of Marx's analysis to the present debacle. The article, entitled 'Marx: less relevant' was duly promoted in the electronic editions of the Guardian and the Daily Telegraph.Dillow conceded that:
On many things, Marx was right. He was right to show that capitalism was a force for great growth and great instability; right to show that profits arose from exploitation; right to stress that technical progress determines social conditions; right on alienation and primitive accumulation.
But, he claimed:
To Marx, crises originated in the real economy [...]Instead, this crisis originates in the financial system. To Marx, however, finance was not so much a cause of capitalist crises - and for that matter of capitalist growth as well - but a mere accelerant of them. It’s the petrol, not the spark. Credit, he wrote (vol III, p572), “accelerates the violent outbreaks of this contradiction, crises…” Accelerate, note, not cause.
It is important to evaluate this claim. If the current crisis is purely or mainly the creation of the financial system, and the devastating effects on the 'real economy' are merely the fallout from the financial crisis, then one can at least envisage that a 'refounded capitalism', by enforcing stricter regulation on the financial sector, by repressing speculation and fraudulent dealings, could thereby- and without addressing the issues of 'real economy' production and the living standards of the masses- prevent the emergence, in future, of such major crises.So let's put to one side (only for a moment) what has been taking place in the financial sector, and look at what has been taking place in global 'real economy' production, and in the incomes of the masses of the people, in the period leading up to our current crisis, in terms of Marx's insistence that: "the ultimate reason for all real crises always remains the poverty and restricted consumption of the masses as opposed to the drive of capitalist production to develop the productive forces as though only the absolute consuming power of society constituted their limit".What do we find? We find that globally, the production of goods for sale has been increasing, while the incomes of the majority of the people have been held down. How has that gap been bridged? It was bridged by the phenomenon of rising debt. Two great countries appear as opposite poles of the modern process of globalisation: so let us take them as our examples- China and the USA.China, the world's biggest country by population but a poor country by its per-capita income, has for almost three decades, by means of foriegn investment and the import of technology, been increasing its manufacturing production at a rate of between 10% and 15% annually. In a typical period, the five years from 1998 to 2003, China's output of manufactured products
rose by 91%. The average incomes of people in China have also been rising- but by a significantly lower rate. Advanced on the one hand by the country's huge trade union movement, depressed on the other hand by the influx of workers from the countryside, real wages in China have been rising at around 8% annually. In any case, too rapid a growth in wages would have made China a much less attractive destination for foreign investment, and would have undermined China's price advantage in selling its products abroad. During the nine years from 1997 to 2006, taking urban and rural incomes as a whole, the mean average household income in China rose by 72%- a very respectable figure, but far less than the increase in manufacturing output.Thus the vastly rising volume of goods made in China could not possibly be purchased by the Chinese; but this was not a problem, because a high proportion of the Chinese-made products were created in order to be sold abroad, to much richer countries. The biggest destination for China's exports was the world's most lucrative consumer market, and still, despite China's relative rise, the world's biggest producer of goods by dollar value, the United States of America. In 2007, approximately 20% of exports from China went to the USA.Now, the majority of people in the US can hardly be described as poor, or as suffering from restricted consumption, when considered against global average living standards. Yet, due to the decline in trade union power and various other factors including the re-location of industrial production by US corporations to other countries where the labour costs are much lower (China, for instance), the real hourly wage rate of the median average worker in the USA has been held down to such an extent that it is no higher now than it was in the mid 1970s. Yet production in the USA, despite the transfer of industry abroad, continued to increase with the introduction of new technology. In the non-financial corporate sector, productivity has been increasing by an average of between 2% and 4% annually, resulting in a cumulative increase of 45% in hourly production per worker in the United States between 1992 and 2005. During this time, production processes have of course become increasingly globalised, and not everything made in the USA has to be consumed in the USA- but it has to be consumed somewhere. To take for example the fastest growing sector of US industry, the computer and electronics sector: a high proportion of its products are components, which require for their manufacture very advanced levels of production technology and skill; these are sent to low-wage countries such as China, where they are assembled, combined with other components which require lower levels of skill and production technology- and the resultant finished products are then sent to the USA and other developed countries to be sold to the final consumers.And, despite the stagnation in their hourly pay, the masses in the United States have until very recently kept on increasing their spending, thus squaring the gap between production and consumption.
For a while, two means were available to achieve this. The first was by increasing the number of working hours per family: men began to have a longer average working week, there was a big increase in the number of women in the workforce, and it became common for people to hold two or even three jobs. But this, of course, raises the amount of material products and services which need to be sold. Also, in the end, there are physical and social limits to the average number of working hours per household. By the start of the 21st Century, the increase in working hours had come to a halt; and the continuing rise in mass consumption was facilitated exclusively by the second available means of increasing spending: rising debt. As Edward Luce
noted in the Financial Times:
Between 2000 and 2006, the US economy expanded by 18 per cent, whereas real income for the median working household dropped by 1.1 per cent in real terms, or about $2,000 (£1,280, €1,600). Meanwhile, the top tenth saw an improvement of 32 per cent in their incomes, the top 1 per cent a rise of 203 per cent and the top 0.1 per cent a gain of 425 per cent.
Edward Luce added:
According to Emmanuel Saez at the University of California, Berkeley, the distribution of income today almost exactly matches that of 1928 on the eve of the Wall Street crash. In 1928, the top 1 per cent of Americans took in 24 per cent of national income, compared with 23 per cent today. Between 1940 and 1984 their share never exceeded 15 per cent and it was in single digits for most of the 1960s and 1970s.
However, the big rise in incomes at the top could not compensate for the stagnation or decline in incomes at the middle and the bottom; because, unlike nearly everybody in the lower social strata, the richer people do not spend all their money: they invest much of their income; and that investment goes either into the 'real economy' locally or abroad (thus further increasing production) or into the various kinds of financial speculation.The debt bubbleIn an article entitled 'The Household Debt Bubble', published in the May 2006 issue of Monthly Review, John Bellamy Foster
observed:
...for households in the bottom 60 percent of the income distribution in the United States, average personal consumption expenditures equaled or exceeded average pre-tax income in 2003; while the fifth of the population just above them used up five-sixths of their pre-tax income (most of the rest no doubt taken up by taxes) on consumption. In contrast, those high up on the income pyramid—the capitalist class and their relatively well-to-do hangers-on—spend a much smaller percentage of their income on personal consumption. The overwhelming proportion of the income of capitalists (which at this level has to be extended to include unrealized capital gains) is devoted to investment. It follows that increasing inequality in income and wealth can be expected to create the age-old conundrum of capitalism: an accumulation (savings-and-investment) process that depends on keeping wages down while ultimately relying on wage-based consumption to support economic growth and investment.Under these circumstances, in which consumption and ultimately investment are heavily dependent on the spending of those at the bottom of the income stream, one would naturally suppose that a stagnation or decline in real wages would generate crisis-tendencies for the economy by constraining overall consumption expenditures.
But, even after the 'dot.com' stockmarket crash in 2000, that 'age-old conundrum of capitalism' did not manifest itself in a major crisis; following that stockmarket crash, the US government cut interest rates, after which, as John Bellamy Foster noted in 2006:
...overall consumption has continued to climb. Indeed, U.S. economic growth is ever more dependent on what appears at first glance to be unstoppable increases in consumption.
This was made possible by a huge increase in personal debt- some on credit cards, but the largest part through the mortgaging and re-mortgaging of houses; a seeming safe bet, given the steep rise in house prices (fuelled in large part by the low interest rates), and which also appeared to be unstoppable. Average outstanding consumer debt, which had crept up from 62% of consumer disposable income in 1975 to 96.8% in 2000,
splurged to 127.2% of disposable income in 2005.It has been made clear to all, since the credit first began to crunch in the summer of 2007, that the US government, by reducing interest rates, relaxing controls on lending, and allowing the financial sector to 'regulate' itself, had thereby facilitated the production of both the 'raw material' and the 'tools' by which an enormous volume of debt-based speculation was created in the financial sector. Less attention has been paid to the other main effect of these debt-inducing measures: that of delaying the onset of the crisis.We have taken the USA as our developed country example; and although it is the biggest and richest of the developed countries, it might be argued that it is an extreme example, given that hourly wages in the USA have been held flat for more than thirty years. However, a not dissimilar phenomenon has occurred in the other main rich countries. The average annual real wage increase in 13 OECD countries (as shown in figure 1.2 in Andrew Glyn's book 'Capitalism Unleashed') which had been running at between 3% and 5% through the 1960s and mid-1970s, fell by the 1980s to between 1% and 2% and has remained at those low levels; and the burden of personal debt in Britain, Germany, Japan and the other major developed countries has been rising inexorably.The jitters in the financial markets first appeared in August 2007, as the revenue streams which supported the values of the various debt-based financial instruments, in which the banks and hedge funds had invested trillions of dollars, began to be revealed as less reliable than had previously been surmised. And whence was this revenue supposed to stream? From the incomes of the increasingly indebted mortgage and credit card holders, particularly those in the USA- incomes which were stagnant or even declining, while their burden of debt, and the payments due on that debt, were rising steeply.
At the time it had been little reported in the mainstream press, especially outside the United States; but already by the spring of 2007, mortgage defaults in the USA, especially in the sub-prime sector, were increasing to an alarming scale. The enormous inevitable crash was beginning to emerge.And where could this crisis lead? On 28th October, one respected analyst, Martin Wolf of the Financial Times,
speculated on the possible medium-term consequences if further radical measures are not taken immediately to address the financial meltdown:
...the idea that a quick recession would purge the world of past excesses is ludicrous. The danger is, instead, of a slump, as a mountain of private debt – in the US, equal to three times GDP – topples over into mass bankruptcy. The downward spiral would begin with further decay of financial systems and proceed via pervasive mistrust, the vanishing of credit, closure of vast numbers of businesses, soaring unemployment, tumbling commodity prices, cascading declines in asset prices and soaring repossessions. Globalisation would spread the catastrophe everywhere.Many of the victims would be innocent of past excesses, while many of the most guilty would retain their ill-gotten gains. This would be a recipe not for a revival of 19th-century laisser faire, but for xenophobia, nationalism and revolution. As it is, such outcomes are conceivable.
Western governments, argues Martin Wolf, must- without delay- slash interest rates, increase state debt, insist that the banks lend money to those businesses which some chance of survival, provide financial assistance to the 'emerging economies' of the poorer countries, and pressurise countries in 'strong financial positions' to 'expand domestic demand'. He concluded with a swipe not only at those who do not endorse such immediate measures, but also at those who are already considering the lines of a new and improved global capitalist order:
Decisions made over the next few months may well shape the world for a generation. At stake could be the legitimacy of the open market economy itself. Those who view liquidation of past excesses as the solution fail to understand the risks. The same is true of those dreaming of new global orders. Let us first get through the crisis. The danger remains huge and time is short.
This is incorrect in terms of political tactics. The people are now witnessing the consequences of the current global order, and, even if the programme which Martin Wolf proposes is implemented in full, we will now undergo a period of seriously increased suffering. If the 'open market economy' (ie, capitalism) is not to lose further legitimacy, then the prospect must be held out of a 'refounded capitalism' which would be able to minimise and withstand economic 'cyclic shocks'.


And now for some refreshing Revolutionary Anarcho-Leftism
Hope in Common
by David Graeber

We seem to have reached an impasse. Capitalism as we know it appears to be coming apart. But as financial institutions stagger and crumble, there is no obvious alternative. Organized resistance appears scattered and incoherent; the global justice movement a shadow of its former self. There is good reason to believe that, in a generation or so, capitalism will no longer exist: for the simple reason that it’s impossible to maintain an engine of perpetual growth forever on a finite planet. Faced with the prospect, the knee-jerk reaction -- even of “progressives” -- is, often, fear, to cling to capitalism because they simply can’t imagine an alternative that wouldn’t be even worse.

The first question we should be asking is: How did this happen? Is it normal for human beings to be unable to imagine what a better world would even be like?
Hopelessness isn’t natural. It needs to be produced. If we really want to understand this situation, we have to begin by understanding that the last thirty years have seen the construction of a vast bureaucratic apparatus for the creation and maintenance of hopelessness, a kind of giant machine that is designed, first and foremost, to destroy any sense of possible alternative futures. At root is a veritable obsession on the part of the rulers of the world with ensuring that social movements cannot be seen to grow, to flourish, to propose alternatives; that those who challenge existing power arrangements can never, under any circumstances, be perceived to win. To do so requires creating a vast apparatus of armies, prisons, police, various forms of private security firms and police and military intelligence apparatus, propaganda engines of every conceivable variety, most of which do not attack alternatives directly so much as they create a pervasive climate of fear, jingoistic conformity, and simple despair that renders any thought of changing the world seem an idle fantasy. Maintaining this apparatus seems even more important, to exponents of the “free market,” even than maintaining any sort of viable market economy. How else can one explain, for instance, what happened in the former Soviet Union, where one would have imagined the end of the Cold War would have led to the dismantling of the army and KGB and rebuilding the factories, but in fact what happened was precisely the other way around? This is just one extreme example of what has been happening everywhere. Economically, this apparatus is pure dead weight; all the guns, surveillance cameras, and propaganda engines are extraordinarily expensive and really produce nothing, and as a result, it’s dragging the entire capitalist system down with it, and possibly, the earth itself.
The spirals of financialization and endless string of economic bubbles we’ve been experience are a direct result of this apparatus. It’s no coincidence that the United States has become both the world’s major military (”security”) power and the major promoter of bogus securities. This apparatus exists to shred and pulverize the human imagination, to destroy any possibility of envisioning alternative futures. As a result, the only thing left to imagine is more and more money, and debt spirals entirely out of control. What is debt, after all, but imaginary money whose value can only be realized in the future: future profits, the proceeds of the exploitation of workers not yet born. Finance capital in turn is the buying and selling of these imaginary future profits; and once one assumes that capitalism itself will be around for all eternity, the only kind of economic democracy left to imagine is one everyone is equally free to invest in the market -- to grab their own piece in the game of buying and selling imaginary future profits, even if these profits are to be extracted from themselves. Freedom has become the right to share in the proceeds of one’s own permanent enslavement.
And since the bubble had built on the destruction of futures, once it collapsed there appeared to be -- at least for the moment -- simply nothing left.

We are clearly at the verge of another mass resurgence of the popular imagination. It shouldn’t be that difficult. Most of the elements are already there. The problem is that, our perceptions having been twisted into knots by decades of relentless propaganda, we are no longer able to see them. Consider here the term “communism.” Rarely has a term come to be so utterly reviled. The standard line, which we accept more or less unthinkingly, is that communism means state control of the economy, and this is an impossible utopian dream because history has shown it simply “doesn’t work.” Capitalism, however unpleasant, is thus the only remaining option. But in fact communism really just means any situation where people act according to the principle of “from each according to their abilities, to each according to their needs” -- which is the way pretty much everyone always act if they are working together to get something done. If two people are fixing a pipe and one says “hand me the wrench,” the other doesn’t say, “and what do I get for it?”(That is, if they actually want it to be fixed.) This is true even if they happen to be employed by Bechtel or Citigroup. They apply principles of communism because it’s the only thing that really works. This is also the reason whole cities or countries revert to some form of rough-and-ready communism in the wake of natural disasters, or economic collapse (one might say, in those circumstances, markets and hierarchical chains of command are luxuries they can’t afford.) The more creativity is required, the more people have to improvise at a given task, the more egalitarian the resulting form of communism is likely to be: that’s why even Republican computer engineers, when trying to innovate new software ideas, tend to form small democratic collectives. It’s only when work becomes standardized and boring -- as on production lines -- that it becomes possible to impose more authoritarian, even fascistic forms of communism. But the fact is that even private companies are, internally, organized communistically.
Communism then is already here. The question is how to further democratize it. Capitalism, in turn, is just one possible way of managing communism -- and, it has become increasingly clear, rather a disastrous one. Clearly we need to be thinking about a better one: preferably, one that does not quite so systematically set us all at each others’ throats.
All this makes it much easier to understand why capitalists are willing to pour such extraordinary resources into the machinery of hopelessness. Capitalism is not just a poor system for managing communism: it has a notorious tendency to periodically come spinning apart. Each time it does, those who profit from it have to convince everyone -- and most of all the technical people, the doctors and teachers and surveyors and insurance claims adjustors -- that there is really no choice but to dutifully paste it all back together again, in something like the original form. This despite the fact that most of those who will end up doing the work of rebuilding the system don’t even like it very much, and all have at least the vague suspicion, rooted in their own innumerable experiences of everyday communism, that it really ought to be possible to create a system at least a little less stupid and unfair.
This is why, as the Great Depression showed, the existence of any plausible-seeming alternative -- even one so dubious as the Soviet Union in the 1930s -- can turn a downswing into an apparently insoluble political crisis.
Those wishing to subvert the system have learned by now, from bitter experience, that we cannot place our faith in states. The last decade has instead seen the development of thousands of forms of mutual aid association, most of which have not even made it onto the radar of the global media. They range from tiny cooperatives and associations to vast anti-capitalist experiments, archipelagos of occupied factories in Paraguay or Argentina or of self-organized tea plantations and fisheries in India, autonomous institutes in Korea, whole insurgent communities in Chiapas or Bolivia, associations of landless peasants, urban squatters, neighborhood alliances, that spring up pretty much anywhere that where state power and global capital seem to temporarily looking the other way. They might have almost no ideological unity and many are not even aware of the other’s existence, but all are marked by a common desire to break with the logic of capital. And in many places, they are beginning to combine. “Economies of solidarity” exist on every continent, in at least eighty different countries. We are at the point where we can begin to perceive the outlines of how these can knit together on a global level, creating new forms of planetary commons to create a genuine insurgent civilization.
Visible alternatives shatter the sense of inevitability, that the system must, necessarily, be patched together in the same form -- this is why it became such an imperative of global governance to stamp them out, or, when that’s not possible, to ensure that no one knows about them. To become aware of it allows us to see everything we are already doing in a new light. To realize we’re all already communists when working on a common projects, all already anarchists when we solve problems without recourse to lawyers or police, all revolutionaries when we make something genuinely new.


SEE
His Masters Voice
Auto Solution II
Stiglitz On Market Fundamentalism
FDR and the origins of State Capitalism
Business Unionism Offers No Solution To Capitalist Crisis
No Austrians In Foxholes



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