Date: Fri, 23 Sep 1994 12:30:57 +0700 From: djones-AT-uclink.berkeley.edu (donna jones) Subject: Re: Kapitalist (ir)rationality? In explaining British capital disinvestment, Paul Cockshott wrote the following: >British figures going back to the last half of the 19th >century seem to indicate that the capitalists would prefer >to consume their profits rather than invest it in means of >production. Perhaps as the bourgois class becomes more and >more rentier in character it is just unashamedly parasitic. As the assault on labor has not brought on an investment boom, it may seem that capital is dying from within, from subjective weaknesses. As I have suggested before, Schumpeter (the most influential bourgeois ideologue today, I believe) has given the most sophisticated bourgeois explanation for this subjective weakness. He locates the weakness in the breakup of the bourgeois family--the rationalism of women as possessive individualists in particular, thereby leaving the bourgeois patriarch without family and without reason do defer consumption for long-term gain. Factories are not modernized, there is overall overproduction (esp. of capital goods, I suppose), the nation declines and the govt is called into remedy the mess but only exacerbates the low propensity to invest because of the threat on profits, etc. However, marxism, in a word, does not only look at the rate of surplus value and thus conclude that if it is high and investment still low, the bourgeoisie must be subjectively weak. It looks at the objective status of the organic composition of capital for capital as a whole; that is, even a high rate of surplus value may not be enough to produce the mass of surplus value necessary for capital accumulation at a late stage. Of course Fred Moseley can explain all this with much more conceptual clarity than me (for whom I shall soon have some questions--I have very much enjoyed his work and the exchanges in Science and Society and RRPE). Marxism points to the intensification of exploitation as capital accumulates and becomes the theoretical expression of working class resistance to free the development of productive forces from the fetters of capitalist production relations. It should be noted that the theory of subjective weakness does have policy implications, which always puts the Schumpeterian advocates of laissez faire (like big-time ideologue George Giler) in a theoretical contradiction. That is, the use of the state to enforce family values, to put especially middle class women back in the home, and--I suppose--to put gay men back into the home. In this way, AIDS was a godsend for the bourgeoisie, which is exactly how Reagan described it. There is also implicit in the Schumpeterian concern over the power of the "subnormal population" (Schumpeter's "great threat to humanity"--shades of the Cairo Conference?) a policy attack on the unemployed who would pressure the state to tax profits to provide for welfare. This would also become a disincentive to investment, despite a sufficient rate of surplus value.There is supposedly no shortage of surplus value, only an excess of valueless people. The bourgeois concern over a decadent culture is a critique of an overly humane culture that attempts to defy the social darwinist "laws of nature" and provide for the "unfit". Schumpeter for example was an admirer of the British social darwinist Benjamin Kidd; America's top gun monetary theorist Irving Fisher was an ardent eugenicist. In recent columns in The Nation, Alexander Cockburn has been documenting the rise of neo-Darwinism in the US. I think Marxism provides a very powerful alternative to such explanations for bourgeois decline--breakup of the middle class family and the rise of the subnormals. Schumpeter attempted to appear as ruthlessly objective as Ricardo and criticized the bourgeoise whenever it did not advance the productive forces. He complained of their "parasitism", as well as fearing the threat of the subnormals. This gives Schumpeter the image of class neutrality, as it attempts to protect the capitalist mode of production. Of course anti-capitalist image and bourgeois reality are always important components of fascist ideology. Marxism demonstrates that it is the production relations--the difficulties in producing surplus value and worker resistance--that is at the base of capitalist crisis. Marxism demonstrates the limits of the social form of production, not the psychological weaknesses of the bourgeoisie based on a timeless psychological law of growing parastism with growing wealth. It is the OBJECTIVE shortage of surplus value that explains disinvestment and the inability to generate more employment and provide the basic necessities for the resulting unemployed. Such an explanation has been developed by (with differences among them) Grossmann, Mattick, Rosdolosky, Yaffe, Cogoy, Weeks, Harman, Shaikh, Pilling, Siegel, Carchedi and (in conjuction with the growth of unproductive expenditures) Moseley. I must cite them, instead of developing the argument, as I am not (yet) quite capable. As I have indicated before, I think Grossmann's elaboration of the theory of objective breakdown remains unsurpassed. On pp.121ff, he explains British technological stagnation in the late nineteenth century and the resulting importance of imperialism (and not just in a moral and cultural sense) to a late capitalism. d jones ------------------
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