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ImageJoseph Choonara, author of Unravelling Capitalism, started off my first Marxism festival, with his talk “The rate of profit and capitalism today”. He follows the Financial Times and other financial press very closely, and finds that mainstream debates are usually between austerians and Keynesians. Those in favour of austerity believe that cutting public sector spending is necessary, while Keynesians believe that austerity has gone too far and that public sector spending is needed. This is sometimes called “making capitalism work for socialism”. Joseph argues that, while Keynesian policies are preferable for the working class, neither positions deal with a fundamental global problem: low level of investment. Using statistics on US and European economies, he shows how the long-term tendency is for the return of investment to fall, and how stimulus (like that of 2008) or any other state involvement fails to restore profitability.

These problems are then related to the increase of ‘dead labour’ in ratio to ‘living labour’. That is, technology replacing the need for so many workers. A familiar example is one checkout assistant supervising six self-service checkouts, rather than six workers, each with their own checkout. This is an inevitability, not something that bosses really have a choice in. Given these problems, along with overproduction, isn’t it a surprise that the capitalist mode of production didn’t meet its maker 150 years ago? Choonara explains that crises themselves find ways of restoring capitalism.

Though the terminology was hard to follow at times, the talk contained well-known examples to illustrate points, from the selling off of Woolworths for £10 to the high profitability after the destruction of World War Two. For a beginner in economics, this talk made it clear how concepts that often seem abstract and inconsequential in fact affect our lives and create struggle. An open discussion followed, in which many members of the packed lecture room asked questions on fictional capital, the Labour Party, and one speaker pointed out that 25 families in Greece own 75% of the country’s wealth. On the question of how optimistic socialists should be, Choonara ended the talk by borrowing a phrase from Antonio Gramsci: “Optimism of activity, pessimism of intellect”.

Michael Roberts’ blog was suggested for someone an economist who stands outside of mainstream debate.

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This figure is a decent illustration of the extent of inequality in the US, and reminds us that capitalism has become something beyond what Marx could have imagined. I found this image on the Facebook page ‘The Other 98%’ which is the kind of baffling liberal group that will happily expose capitalism but still show support for Obama. As we know, liberalism is characterised by a “reform, not revolution” mentality, as well as thinking that cooperation with the ruling class is possible so I worry that that people seeing this image are not thinking, wow, we need to reorganise society from top to bottom. Instead, they just want to rely on the wealthiest to be more generous.

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The main problem with this is that altruism can only be a short-term solution. It isn’t a system change that offers security for future generations. Once a rich person throws money at some problem, like homelessness, what are we left with? Some people now have a better quality of life but in the same situation that caused their poverty in the first place. Nothing has changed.

Or maybe something has changed, for the worse. At the heart of trade unionism is the idea that workers need to organise and demand or force their government/bosses to give them their comfortable working conditions and other basic human rights. Achievements such as the 8-hour day are achievements of the exploited and overworked. Now more than ever, with the ‘business ethics’ of Starbucks, books like Philanthro-Capitalism, and billionaire philanthropists like Bill Gates and George Soros, the extremely wealthy want to take even pride away from the poorest. It’s a cruel trick: the minority who have most of the money, possessions, fame, and luxury, also want the reputation as the ones struggling against oppression. Charity will always only lift some out of poverty and disease, though. Socialism is needed for a system that makes these problems impossible in the first place. But altruism will cure just enough illnesses and lift just enough people above the poverty line that it will slow down discontent and anti-capitalist reaction. So really, by taking the advice from this statistic too literally, one would be supporting and dragging out inequality.