This
essay was written at the outset of Trumpism and the brazen rise of white
supremacist movements. Also it was written at a time when social movements,
including the Bernie Sanders campaign, had captured the imagination of many
young people, people of Color, immigrant activists and others. Most recently
George Floyd was murdered by police and the Covid
19 pandemic exposed to all the failures of our economic and political system.
While changes are occurring at breakneck speed the analysis of capitalism and
the envisioning of socialism described below seem still relevant, even as we
approach the November, 2020 elections.
These issues will be among those
discussed at the National Convention of the Committees of Correspondence for
Democracy and Socialism (CCDS) to be held on Saturday and Sunday August 22,23,
2020. See the link below. Register and attend as we discuss further the crises
of capitalism and the prospects of building a better, more humane,world..
https://www.cc-ds.org/2020-convention/
THE MATERIAL REASONS FOR THE CURRENT INTEREST IN SOCIALISM ( a repost from July 28, 2017)
Harry
Targ
Introduction
The twenty-first century
economic reality has created a new class society with a dominant class of
concentrated wealth at one extreme and a growing class of economically insecure
in the other. More and more of those in the latter have become political
activists, particularly among the young. This new class society in the United
States parallels similar economic changes in both rich and poor countries. As a
result of the changes in global and domestic economies social movements have
arisen everywhere. From Cairo, Egypt to Madison, Wisconsin, from Greece to
Chile, from Syriza and Podemos to the Sanders campaign, the cry for change,
often a demand for socialism, is spreading. The outcome of this new activism is
unclear but for the first time in a long time, the prospects for positive
social and political change look promising.
The New
Class Society
In 1999, Robert Perrucci and Earl Wysong published the first of four editions
of a perceptive sociological analysis that identified what the authors
identified as “the new class society.” They employed a Marxist and Weberian
analysis of class that combined workers’ relationships to the means of production
with their organizational position.
Using data reflecting
their synthetic definition of class, these authors concluded that the popular
portrait of a U.S. class system consisting of a small ruling class, a large
“middle class,” and a small percentage of economically and politically
marginalized people was, by the 1970s, no longer an accurate way to describe
society. The class system of the days of relative prosperity from the 1940s
until the late 1960s, which looked like a diamond with a broad middle, had
become a class system looking like a “double diamond.”
In the
new class society, the first diamond, the top one, consists of the “privileged
class” composed of a “super-class,” “credentialed class managers,” and
“professionals.” All together these representatives of privilege constitute
about 20 percent of the population. All the others constitute a “new working
class,” some living in relative comfort but most engaged in wage labor with the
constant threat of job loss and wage stagnation, some modestly self-employed,
and a large part-time labor force. This is the second diamond representing 80
percent of the population.
In
short, the political economy that emerged nearly fifty years ago is one in
which a shrinking ruling class that owns or controls capital has accumulated
enormous wealth and dominates today’s economy. At the other end an increasingly
insecure working class in terms of jobs and income has grown exponentially.
Peter Temin, an MIT
economist, confirms the earlier sociological work in his new book “The
Vanishing Middle Class.” This book also identifies an emerging two-class
society with wealth and power concentrated at the top and poverty and
powerlessness at the bottom. In what Temin calls the “dual economy,” the ruling
class consists of the finance, technology, and electronics sectors (FTE),
representing the top twenty percent as opposed to “the low wage sector;”
clerks, assemblers, laborers, and service workers who provide the comforts and
profits for the top twenty percent.
In summary,
both volumes suggest that in terms of wealth and power conflicts of interest
have to be seen not between the one percent and everyone else but between the
twenty percent who own/control/ or administer the capitalist system and the
eighty percent who constitute increasingly marginalized labor serving the
interests of the wealthy and powerful.
The Precariat
Guy
Standing, a British economist, has written about the “precariat,” a growing
portion of the worldwide work force, Temin’s “ low wage sector,” who live in
economic insecurity. The term, precariat, refers to a synthesis of the idea of
the proletariat, workers who sell their ability to provide labor to a
capitalist for a wage, and precarity, or economic existence that is
unpredictable, marginal, and insecure. Job scarcity and wage stagnation
increasingly is experienced by workers with professional skills and credentials
as well as the traditional working class.
Standing argues that all
across the globe workers, particularly young workers, live in situations of
economic insecurity and unpredictability, irrespective of credentials, that in
the past guaranteed jobs and living wages. Of course, the precariat do not have
any of the guarantees of union membership and their skills leave them often
working on a part-time contract basis and in isolation from fellow workers. In
addition the precariat include workers in the “informal sector.” These are
workers who often will do anything to survive from day to day: for example, day
labor, street vending, drug dealing, petty crime, or prostitution.
Accumulation
by Dispossession
David Harvey, a Marxist
geographer, revisited Marx’s description of primitive accumulation in his book,
“The Seventeen Contradictions of Capitalism.” Capitalism was created on
the backs of slaves, the slaughter of indigenous people, and the expropriation
of already occupied land. In other words, through kidnapping, forced labor,
slaughter, and occupation, capitalism was born. The expropriation of resources,
people, and land led to the accumulation of wealth that spurred development and
growth.
Harvey
then argues that the primitive accumulation of the fifteenth century is similar
in outcome to the “accumulation by dispossession,” of the twenty-first century.
Today workers lose their property and their personal income in a debt system
that sucks their scarce earnings and property. Examples include defaults on
mortgage loans and bank repossessions and governmental decisions to confiscate
property for purposes of urban redevelopment. Accumulation by dispossession,
while not as violent as in the era of primitive accumulation, has the same
outcome: expropriating the value of the work of the many for the riches of the
few.
Growing Economic
Inequality and Urban Decay and Gentrification
Virtually
every study of the distribution of wealth and income in the United States
demonstrates a dramatic increase in inequality. Also studies sponsored by
international organizations report that despite declines in worldwide absolute
poverty, the trajectory of growing inequality in wealth and income is a central
feature of the global economy. In addition, declining inequality between
countries, such as that between China and the countries of the European Union,
have occurred while inequalities within these countries have widened. In the
United States income and wealth inequality which declined from the 1930s until
the 1960s has returned to levels not seen since the 1920s.
The patterns of
inequality are visible in geographic spaces as well. As more and more people
are forced to migrate to cities, what Mike Davis calls “global slums,”
demarcations of areas of opulence and poverty become visible. Members of the
top twenty percent are consumers of expensive living spaces, elite schools, and
vibrant recreational facilities. They also lobby for public funds to create
recreational attractions that entice tourists to bolster local economies.
Gentrified city spaces are protected by fences and police.
On the
other hand, the bottom eighty percent live in varying degrees of poverty.
Housing stocks crumble, neighborhoods are overcrowded, public services are
increasingly underfunded, and populations are left to lead lives of quiet
desperation and intra-community violence. In the new class society different
sectors of the population live in isolation from each other, except when
political conflict and violence spread across communities.
Also in the new class
society youth become pessimistic about their futures. Despite the fact that
media and academic studies claim that upward mobility is tied to scholastic
achievement, the schools they attend are underfunded. And the cost of higher
education, the main source of credentialing the young, has become prohibitively
expensive. For those who accumulate massive student debt the experience feels
like a modern-day variant of indentured servitude. Jobs for those who do not
attend college are scarce and reside primarily in the low-wage service sector.
And so-called STEM jobs (science, technology, engineering, and mathematics) are
not as plentiful as college promotional brochures suggest. Along with the
precarity of the traditional working class is a rising precarity of a new
working class of highly educated but unemployable young people.
Racism
Manning Marable published
a perceptive essay in 2006 entitled “Globalization and Racialization.” In it he
adapted, based upon the twenty-first century global political economy, the
prophetic statement by W. E. B. Du Bois that the problem of the twentieth
century was the color line. Marable suggested that the new global political
economy was based upon capital flight, as well-paid manufacturing jobs left the
United States for sweatshops in the Global South. Unemployment increased
in the United States. Downward pressures on wages and benefits paid workers in
poor countries reduced the economic conditions of US workers. The decline of
organized labor in the United States and the Global South weakened the
bargaining position of workers everywhere.
Marable
suggested that the people most vulnerable to the massive changes in the global
economy were the already marginalized people of color. Unemployment rates in
poor and Black communities skyrocketed, particularly among youth. The new
gentrification and shift in politics from welfare state capitalism to austerity
led to declining public services in poor communities. This has had particularly
devastating impacts on educational institutions.
With declining economic
opportunities, a growing sense of hopelessness, draconian government policies
such as the wars on drugs and crime, literally millions of African Americans,
and other people of color, have become victims of mass incarceration, what
Michelle Alexander calls “The New Jim Crow.” Finally, many states have laws
that prevent former felons from voting. The Marable framework, which he refers
to as “global apartheid” and “the New Racial Domain,” thus links globalization
of production to racism; particularly growing unemployment and urban decay,
criminalization, mass incarceration, and voter disenfranchisement.
Neoliberalism:
the Latest Stage of Capitalism
The so-called “golden age
of the US economy,” 1945 to 1968, may have been an anomaly in American history.
The United States emerged from World War Two as the economic and military
hegemonic power. The war led to a fourfold increase in United States trade
compared with the late 1930s. In 1945 it produced about 2/3 of all the
industrial goods manufactured in the world and US investments constituted about
¾ of all the world’s investments. With fears of stagnation accompanying the
war’s end, the Truman Administration launched a massive program of military
investment to forestall declining demand for US goods and services.
In
terms of international relations, the United States played an instrumental role
in establishing powerful international economic institutions, such as the
International Monetary Fund and World Bank. It helped rebuild an anti-communist
Europe through a massive financial aid system. It later established foreign
assistance programs for newly “independent” countries requiring their
commitment to the maintenance of a global capitalist system.
At home a United States
economy was created that stimulated high mass consumption. People were
socialized to believe that their self-worth was determined by the quantity and
quality of goods and services they consumed. The new communication medium,
television, educated viewers as to the products that were available (as well as
the enemies overseas who were the threat to the domestic consumer society).
However,
by the late 1960s, markets were glutted and demand for goods lessened even
though wages and benefits for some workers increased. Federal and state
governments had been increasing services such as education, health care, and
transportation. Both profit rates and consumer demand declined. Growing
political protest against the Vietnam war and racism across the country added
to emerging economic stagnation.
By the 1970s, the squeeze
on profits and reduced demand, was exacerbated by Middle East wars and large
increases in the price of oil, which made some corporations and banks richer
while economic stagnation, including both high inflation and unemployment,
ensued. At this point, the United States economy began a shift to what David
Harvey calls “financialization.” A small number of banks and corporations,
mostly US but also European and Japanese, began to shift from encouraging
manufacturing growth to financial speculation. A “new” debt system was
encouraged, one in which oil-poor countries borrowed more and more money from
bankers to pay for continued oil imports. In exchange debtor nations would
promise to carry out new economic policies at home: cut government spending,
privatize public institutions, deregulate domestic economies, and shift
economic activities from production for domestic use to production for sale in
the world market.
Thus,
the new era of “neoliberal globalization” was initiated. The new system was
driven by financial speculators, declining autonomy of nation-states, and the
downsizing of wages and benefits everywhere. At the same time rates of profit
for speculators increased and smaller numbers of banks and other financial
institutions increasingly dominated the global economy. This system was
initiated in the Global South, spread to Western Europe and after the fall of
the Soviet Union and its allies to Eastern Europe. In the 1980s neoliberalism
was embraced by Prime Minister Thatcher in Great Britain and President Ronald
Reagan in the United States. The best way to characterize policy in the age of
neoliberal globalization is “austerity,” reducing the economic opportunities of
the many for the benefit of the few.
Neoliberal globalization
is the systemic source of the new class society (or the dual economy), the rise
of the precariat, accumulation by dispossession, growing inequality and urban
gentrification, and the expansion of racism.
A
Revitalized Interest in Socialism in the Twenty-First Century
As history has shown, the
accumulation of wealth and power by ruling elites, or dominant classes, never
goes unchecked. The drive for domination breeds resistance. And resistance
takes many forms: traditional revolutionary practices, building alternative
economic and political institutions, non-violent refusal to obey the
institutions that support economic misery and political repression, and where
practical, participation in electoral processes. Social change is many-sided
and several strategies together are most likely to bring positive results.
History
shows also that struggles for change are broadly political, require
organization, mass mobilization, and education. Change requires analyses of the
causes of the problems needing solution and a vision of what a better
future might look like. And there is an inextricable connection between the
causes of the problems, the tactics needed to change the situation, and a
vision of a better society.
The analyses above
highlight the changing character of the global political economy, emerging
class structures, and the growing vulnerabilities of literally millions of
people: young and old: Black, Brown, and White; female and male; gay and
straight; and at all levels of education and training. At the root of the
problem is the capitalist system, a system whose reason for being is the
maximization of profit. People today are talking about a new society, a
socialist society. Socialism implies a political economy in which people
contribute their talents, their labors, for the public good and share equitably
in the product of their labor. And socialism presumes democratic participation
in work places, the political system, and the community.
References
Robert A. Perrucci and
Earl Wysong. The New Class Society, Rowman and Littlefield, 1999 (the
first of four editions).
Peter
Temin, The Vanishing Middle Class: Prejudice and Power in a Dual Economy,
MIT Press, 2017.
Victor Tan Chen, “The Dual Economy,” Working Class Perspectives, https://workingclassstudies.wordpress.com/2017/07/24/the-dual-economy/
Guy Standing, The
Precariat: The New Dangerous Class, Bloomsbury Academic, 2014.
David
Harvey, Seventeen Contradictions and the End of Capitalism, Oxford
University Press, 2015.
Mike Davis, Planet of
Slums, Verso, 2017.
Harry
Targ, Challenging Late Capitalism, Neoliberal Globalization and Militarism, Lulu.com,
2006.
Manning Marable,
“Globalization and Racialization,” ZNET, zcom.org, March 2, 2009.
Various articles on
political economy, social movements, peace and justice in Harry Targ, Diary
of a Heartland Radical, www.heartlandradical.blogspot.com