From: glevy@PRATT.EDU
Date: Wed Aug 01 2007 - 17:12:43 EDT
Hi Juriiaan: Yes, Michael H's article has stirred up some controversy. Below you will find Loren Goldner's response to another list. Loren takes a very different position, as might be anticipated. I don't think his assertions about a "decadent phase of capitalism" are all that convincing. Yet, I am not convinced by all of Michael's claims either. In solidarity, Jerry Michael Heinrich's scenario may be right. I say this as one of the people on the radical left who, since the 1970's, has diagnosed the crisis which began then as the "final" one, to result in either world revolution or recovery from something like World War III. I say this because in the early 70's I would have flatly denied the possibility of the configuration of the contemporary world, with China's decades of rapid growth and now India's emergence, for starters. In short, I have been somewhat sobered by being consistently wrong about capitalism's flexibility (whatever the balance sheet of horrors it has served up since the early 70's). However, (and I am not even mentioning the environmental questions Heinrich passes over in silence) there are a number of problems with Heinrich's analysis that would require further explanation. He does not comment, for example, on the crucial differences between the current emergence of China and India and the emergence of the U.S. and Germany ca. 1890. That earlier development ultimately "lifted all boats" in the 1945-1974 boom years, whereas even the rosy scenarios for China and India frankly admit that 1.5 billion people in those countries will be "left out". What will become of them and how will they react? Heinrich scoffs at the idea that the purpose of capitalism is to provide good wages and welfare for workers, which is true enough, but such a formulation overlooks Marx's view that capitalism was historically progressive because it materially expanded the reproduction of society. If capitalism destroys society (i.e.the working class) while "booming" for capitalists, or if it destroys the environment and shortcircuits all possible social reproduction, Heinrich's portrait of the future will be meaningless. I have myself argued in different texts that the defeat of the old revolutionary movement (particularly in 1917-1921, and to a lesser extent the explosion of 1968-1977) occurred precisely because capitalism had new territories into which it could expand. But this expansion does not change the fact that something fundamental seemed to change in capitalist accumulation around the time of World War I. Broadly speaking, pre-1914 capitalist growth expanded the working class as a percentage of the world capitalist population. German and American competition squeezed the circumstances of British workers, true enough, but capitalist innovation was creating new proletarians all the time, not eliminating them. The situation today is quite different. The rise of the new Asian economies happens at the EXPENSE of the working class in the West. There is a net contraction, in value terms, of the global social wage. Heinrich doesn't mention that even China has LOST 20 million industrial jobs through its boom, and 100 million layoffs were announced at the party congress in 1997. Korea, hailed as the "next Japan" 20 years ago, is today being squeezed by Chinese competition as China moves "up the value chain". Vietnam and Bangladesh have surpassed China in the race to the bottom in wages. Outsourcing to India has raised wages in the high tech sector to the point that, already, the costs of outsourcing are becoming not worth the trouble. Heinrich mentions two world wars, the great depression, fascism and the Holocaust as if they were some anomaly, when in fact they signaled a qualitative break from the nature of crisis in capitalism in the 1815-1914 period. There are those of us, and I am one of them, who see in those events a "decadent" phase of capitalism. Does Heinrich imagine that the U.S. will peacefully hand its imperial status over to the Asian powers, any more than Britain lost its hegemony to America through exactly the decades of upheaval he describes? These are just some of the questions I would raise. Perhaps 50 years from now they will appear as irrelevant, and in fact based on developments that were indeed anomalies. I have been wrong often enough to be modest in predictions. But there is a complacency that comes through Heinrich's (admittedly short) historical overview that communicates a "nothing new under the sun" view that plays fast and loose with both history and the present. Loren > http://negativepotential.blogsport.de/2007/07/27/profit-without- end/
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