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Tag Archives: Keynes

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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Response to Tom Streithorst’s ‘Marginal Marx’, a book review of Karl Marx: a nineteenth century life.

Leftists everywhere must have enjoyed the moment yesterday when they realised it was the 195th birthday of Karl Marx. It’s a meaningless anniversary of course, but this kind of thing serves as a reminder for how relevant and applicable some aged political theory can be. I was rudely interrupted from this line of thought when I stumbled across a piece by a five-year-old journalist who has never read anything by Karl Marx and who dismisses supporters of the labour theory of value as ‘tedious’.

Streithorst points out that Marx’s philosophy is indebted to Hegel, Ricardo, Adam Smith, and others. This is no secret and Marxists, as far as I’ve seen, have no illusions about this. The mistake is in saying that the labour theory of value was already outdated by the time Capital was being written. If this was about the Ricardist model then there might have been a fraction of a point. But Marx brought his own substantial changes to the theory, most notably the concept of abstract social labour. The theory of value and surplus value explains how uncompensated labour allows a section of society to become a ruling class and alleviate itself from the burden of its own necessary labour. This was true in different ways in feudal society, plantation slavery, 19th century capitalism, and remains an injustice  and the backbone of capitalism today.

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