March 23, 2015

Book Review: Adam Tooze, “The Deluge”

Posted in Book Review, Economics, Europe, Fascism, History, Imperialism, Int'l Trade tagged , , , , , , , , , at 01:33 by Matthijs Krul

“Liberalism is the only thing that can save civilization from chaos – from a flood of ultra-radicalism that will swamp the world…” These are the words of Woodrow Wilson aboard the SS George Washington in December 1918, reflecting on the tasks confronted by the United States and her allies after their victory in the First World War. It is also the fundamental thesis of Adam Tooze’s The Deluge, the long-awaited followup to his brilliant discussion of the political economy of Nazi Germany (for a discussion of which, see here and following). Applying his profound talent for combining political economy with international relations, Tooze’s central subject is the aftermath of World War I and the challenge of creating a new world order amidst the ruins of the old European powers. This challenge, as he presents it, was a dual one. On the one hand it involved the recognition by all European powers, victors or vanquished, that the United States was now the pre-eminent economic power in the world, with the potential of translating this tremendous advantage into equivalent military and political power on the world stage; and on the other hand it involved the attempts by Woodrow Wilson as American President to effect this transformation of the world balance of powers while simultaneously disentangling the United States from a war alliance that he had never wanted in the first place, and which threatened to perpetually constrain the freedom of action the Americans needed to make this potential a reality.

The main dynamic through which this contest was fought out, in Tooze’s economic historical telling, is the question of debt and credit. While Tooze emphasizes that the American contribution to the Entente victory in the military sphere was modest at best, the main American contribution lay not in manpower or materiel, but in the financing of the war effort. The Entente victors ended the war owing the United States a vast sum in inter-Allied debts, and the Americans – Democrats and Republicans alike – were intent on making good on these claims and in so doing subjugate the British and French permanently to a world order of American dominance. However, what complicated the picture was the demand for reparations established by the Entente powers against (especially) Germany, which was perpetually unable to actually pay these. The efforts of international diplomacy and politics in the period 1916-1930 therefore became a veritable pyramid scheme with the United States on top, and each debtor below attempting to recoup their own losses before the whole collapsed under its contradictions. In order to forestall such a collapse and to obtain the necessary leverage combined with the equally necessary flexibility, the Entente powers attempted various means of political institutionalization of the debt and credit relations, from the League of Nations to the series of international agreements between Versailles (1919) and the Young Plan (1930).

Tooze’s narrative, while complex and providing a wealth of substantive detail on everything from the Soviet-Polish War to the internal dynamics of Japanese interwar parliaments, can roughly be summarized as follows. Wilson’s politics, Tooze argues, have wrongly been portrayed as a naive or ‘idealist’ internationalism. Instead, what Wilson recognized was that the only possibility to prevent another such political crisis as 1914 was the establishment of a new liberal order. This order must be based on the fact of American hegemony (which naturally Wilson favored), and in order to achieve this, it was necessary to avoid permanent alliances between the US and European powers, instead favoring ‘peace without victory’ in World War I. When this failed, Wilson shifted to a strategy of using the inter-Allied debt leverage to enforce his vision, seeking to use this constraint on the freedom of the victorious European powers to prevent them from any further 19th century style inter-imperialist rivalry. Instead of the old balance and rivalry of powers, there was now to be a world based on the ‘Open Door’, the freedom of the seas, and the liberal international institutions like the League of Nations. This would guarantee a world where liberal-democratic principles could slowly embed themselves in all the major states and where American economic superiority could be peacefully translated into political dominance without the need for further intercontinental entanglement.

Tooze’s tale, however, is not one of success but of failure. The two central theses he develops out of his narrative are the observations that 1) this liberal-democratic new order was the only possibility to prevent the twin radicalisms of Communism and fascism from taking hold in a serious way, and 2) that it failed to come about due to the incompatibility of the demands of the winners and losers of the post-WWI settlement and due to the repeated failure of American diplomacy to effectively cajole the main powers into a ‘peace without victory’. The result was the ‘second Thirty Years War’, as some historians are now describing it, that we are all familiar with. This approach involves a convincing reinterpretation and rehabilitation of many aspects of the period often dismissed in later years: Wilson’s internationalist vision, both less naive and less successful than often portrayed; the Versailles Treaty, a necessary step in institutionalizing the “chain gang” that bound the losing powers to the winning powers and the winning powers to the United States; and even the much-condemned Clemenceau and French foreign policy, whose supposed revanchism against Germany appears very defensible in light of the damaged and exposed position of the postwar French state.

The strength of Tooze’s narrative, besides his admirable command of source materials and the logic of international macroeconomics, is to replace the usual psychologizing narratives of WWI and its aftermath (Clemenceau’s revenge, Lloyd George’s deceit, Wilson’s naivete, Lenin’s devilishness, etc) with a plausible model that explains the diplomatic continuities across parties of the period in terms of economic and political interests. In that sense this work definitely represents the ‘realist’ approach in international relations at its best. But it is not wholly shorn of discussions of ideology and the domestic conflicts of parties and factions either: an important part of Tooze’s discussion of the would-be liberal global dispensation is the domestic opposition between the liberal-internationalist politicians, oriented towards the United States, and the radicals of left and right, seeking to prevent the former from bringing about this order. In this model it therefore makes less difference what individuals or even political ideologies were involved, but mainly what position they took vis-a-vis this “remaking of global order”, as the book’s subtitle puts it – hence the convergence between a bourgeois radical like Clemenceau and a rightwing nationalist like Stresemann. Yet both the oppositionalism of left and right radicals and the opportunism of this expansive ‘center’ meant that those in the “chain gang” failed to come to terms with the new order sufficiently to make its institutions work. The result, Tooze suggests, was the stillbirth of democracy in much of the world and the victory of the radical forces over the liberals, so that another world war became inevitable.

The obvious strengths of this explanation are also its weaknesses. Much more than in his rightly lauded previous work, The Wages of Destruction, the worldview expressed in the book seems that of a contemporary ‘muscular liberalism’. Tooze truly believes in the liberal hierarchy of nations supervised by the United States, and wishes it could have been established earlier. This necessitates some political judgements that are, to say the least, debatable. He does not hide the fundamentally imperialist nature of Britain or France after WWI or their futile efforts to combine the new internationalism with a stronger grip on their colonies. But he never quite reconciles the enduring imperialist adventures he describes – from the colonization of Egypt in 1919 to the Japanese efforts to divide and rule in China or the Franco-British schemes in the Middle East – with his repeated assertion that the new world order was based on the recognition that the ‘old imperialism’ (which Tooze argues only really started in the 1880s anyway) was no longer possible in an era of mass mobilization, and that the era of global competition was over (287). He is therefore unjustifiably sanguine about the “liberal imperialism” and its supposed moral advances over the previous era.

Tooze is honest enough to report the contradictions: “Liberal visions”, he writes in a discussion of the British suppression of Indian national liberation between the wars, “were necessary to sustain empire in the sense that they offered fundamental justifications. But they were always likely to be reduced to painful hypocrisy by the real practices of imperial power…” (391). Very true. But how are we to reconcile this hypocrisy with the seemingly self-evident desirability of the liberal order over that of the ‘radicals’? A similar problem appears in the omission of any discussion of the racial dimension. Again, Tooze honestly reports on Wilson’s white supremacist views, and how the latter’s politics were founded on his hatred of the Reconstruction period. He regularly mentions the usage of racial categories and language by the diplomats of the Entente nations, and the hasty rejection of Japan’s motion for racial equality in the Treaty of Versailles. But the connection between these views of racial hierarchy and the content of what he sometimes calls the “liberal imperial order” – even had it succeeded – is not made explicit.

This stands in strange contradiction to the importance he attaches to the racial-colonial dynamic of Nazi Germany’s war strategy in The Wages of Destruction, where precisely the importance attached to this dimension gives his narrative such an added explanatory power. Japan’s defection from the liberal order towards fascist military adventurism is portrayed as a consequence of the Great Depression, which there as elsewhere robbed the liberals of their main (economic) arguments to hold the revanchists at bay. This is true enough as it goes; but might it not also have something to do with the statement by Victor Wellesley of the Foreign Office on Chinese policy, which was founded on the observation that “the prestige of the European races has been steadily declining in the Far East… and it has suffered a severe blow as a result of the Great War” (406)? Do not the repeated expressions of racial contempt for Slavic peoples, for the ‘Jewish degenerate’ Bolsheviks, and the horror stories about the Senegalese forces in French service, combined with the white supremacist policies of the Americans, perhaps matter more than incidentally for the shape the postwar order took and the inspiration of fascism? In his previous book Tooze was clear about this; in the present it seems much more muddled.

Radicalism, for Tooze’s liberal IR realism, is all of one kind and necessarily leads to war and destruction without clear advantages. The book throughout equates Communists, fascists, anarchists and other radicals in the political sphere, making it a matter of diplomatic indifference whom one is dealing with; he equally applauds Gustav Noske’s repression of the Spartakusbund as the failure of the Beer Hall Putsch. The Soviet Union is treated with nothing but scorn and contempt, and Lenin appears as nothing but a deluded adventurer who destroyed Russian democracy (the Constituent Assembly, which gets a great deal of space) and became a puppet of German interests. (Given Tooze’s main sources on the Russian Revolution and its aftermath appear to be the works of Richard Pipes and Orlando Figes, his lopsided and absurd judgements are perhaps not so surprising.) The repeated repression of the workers’ movement, from the French miners to the revolutionary moment of 1919-1920 all the way to the UK General Strike of 1926, is virtually without fail applauded by Tooze. For him, Noske is a responsible statesman, Clemenceau a “pragmatic reformer” who was “demonised” for repressing the miners’ strikes with armed force by the “doctrinaires” of the French Socialist Party, and the Entente intervention against the October Revolution a defense of democracy. The ‘Red Scare’ and Palmer raids in the US after WWI, often seen as precursors to McCarthyism, are a mere “carnivalesque distraction” (354). The minor welfare programmes and high taxes of the Lib-Lab policies in Western Europe after the war, however, represent “immense new burdens” (250), and the pensions and compensations for war veterans a dubious “new notion of entitlement” (359).

Although Tooze repeatedly admits that the liberal imperial order he favors did not really – beyond the persona of Wilson – have the support of the great majority, he sticks to defending it without fail as “progressive” or the “progressive center”, even putting ‘imperialist’ between scare quotes when applied to its protagonists, despite his own descriptions of the fundamental accuracy of that term. In distinction to this progressivity, the radicals can never be right – that Weimar Germany or Soviet Russia attempted to come to understandings with defeated or colonized powers like China, or indeed each other, is depicted as “self-indulgent nationalist fantasy” (436). Sinn Fein’s independence movement was an expression of “apocalyptic radicalism” (377), and the repeated “political concessions to nationalism” forced upon the British empire (the only one examined in detail) are discussed with more than a hint of regret. One will find little patience with national liberation ideas or radical politics of whatever stripe in Tooze’s book: it’s the American way or the highway as far as the peace of nations is concerned.

This also generates difficulties for him in describing the deflationary policies that have become so notorious in retrospect. Whereas an economic historian like Barry Eichengreen represents mainstream opinion in (probably overly simply) seeing the crisis caused by the deflationary policy and the subsequent dissolution of the liberal-imperialist interwar order as the result of bad economic theory, Tooze is more ambivalent. He explains the virtual universality of the deflationary attachment to the gold standard as the expression of the desire to be part of the new American-led order of ‘Open Door’ international relations, surely a much more plausible explanation than simple error. However, the difficulty is that this deflationary economics undeniably was a major factor in the crisis of 1920-1921 as well as that of 1929; and these crises, in turn, destroyed the world order Tooze so favors. It therefore appears both as the necessary result of liberal internationalism and its destruction, which raises the question whether – just as with the notion of ‘liberal imperialism’ in India and elsewhere – the strategy was not too internally contradictory to have ever been a plausible historical outcome to begin with.

On that note, one final aspect of the work should be noted. It does not escape Tooze, of course, that parallels can be found between the institutionalization of international debt and credit relations between the wars and the construction of the European Economic Community after them; nor the significance of the League of Nations, the Kellogg-Briand Pact and other treaty forms of American-led international pacification for the United Nations of today. Indeed, Tooze emphasizes such continuities, suggesting that he seems to regard the present order and its problems as comparable to those of the internationalist liberalism of the Wilsonian vision. Even the role of (Soviet) Russia is perceived in this way, where German policy is portrayed as a necessary response to its inherent threat after WWII as much as before the Great War: it was the “very real threat of a Soviet takeover”, we are told, “that drove West Germany willy-nilly into the arms of the West and kept it there” (276). (In fact, Stalin repeatedly offered the possibility of a neutral and united Germany, which the West, including West Germans, declined.) For Tooze, the ad hoc alliance between the Entente nations presages NATO and the Marshall Plan, equally defined by the opposition between liberal democratic internationalism and the violent revanchism of radicals. But as the present Eurozone crisis demonstrates, the straitjacket or “chain gang” such ‘internationalism’ of debt and credit represents can do at least as much harm as the radicals, and moreover helps to bring radicalism about – a similar contradiction today to that that frustrated the Wilsonian order.

These political considerations aside, one is unlikely to find a better treatment of the intersection of global economics and diplomacy between the wars than Adam Tooze’s The Deluge. As with his previous work, it certainly helps to have a basic grasp of macroeconomics and international trade, as monetary policy, trade deficits, and budgetary constraints carry a lot of explanatory weight and the author does not pause to explain their basic mechanics. The great virtue of this work is to make reason out of folly: to make sense from the perspectives of the participants of what is often simply portrayed as naive errors of economics and politics. That is to say, at least from the perspectives of the supporters of the Wilsonian order. The tale of the rise and fall of ‘liberal imperialism’ and ‘liberal internationalism’, frustrated by the incompetence of Wilson himself, the opportunism and economic weakness of the postwar European powers, and the opposition of radical political factions, is fundamentally strong and merits a serious reading. However, Tooze’s political perspective does not allow him to tease out the inherent contradictions in these concepts and the reality of what such an order actually did and does entail, not least for those at the bottom end of the “chain gang” hierarchy. And that limits the explanatory scope of the work compared to his deeper perception in his previous book.

April 6, 2014

Book Review: Richard Seymour, “Against Austerity”

Posted in Book Review, Class Struggle, Economics, United Kingdom tagged , , , , at 15:21 by Matthijs Krul

It’s easy to be against austerity and neoliberalism; it is less easy to say something meaningful about it, and to take stock of the Western situation in a sober and critical way. To do this is the purpose of Against Austerity, the most recent work of the hand of Richard Seymour, blogger at Lenin’s Tomb and (ex-)member of various radical groups in the UK. Although the cover blurbs present it as a strategy for defeating austerity and reviving the left, most of the book by far is actually concerned with analyzing what austerity is, how it relates to neoliberalism, state and class strategies, ideology, and economics. While these topics are by now fairly well-trodden ground in left analysis, there is perhaps a need for a popular synthesis of the various theories and interpretations offered in the literature, and this book helps fill that gap. Combining — as is Seymour’s wont — Poulantzian/Gramscian state and class theory with the economic interpretations of the crisis offered by the school of Panitch & Gindin and Duménil & Levy, this work offers a (brief) political economic reading of the crisis that is fully integrated with a strategic and political conception: neoliberalism as a class offensive of financial capital and its state integration to recompose the state-economy relationship and indeed the very structure of ‘the market’ and its society itself. As Seymour puts it: “what we are witnessing, under the auspices of austerity, is not just spending cuts. It is a shift in the entire civilisational edifice of capitalism, deepening an equivalent shift that began in the 1970s” (3-4).

What does this shift consist of, according to him? The author discusses a fairly broad range of phenomena, and the discussion of the crisis and its strategic meaning ranges from economics to class, to state, and to ideology. Let’s take the economics first. The general thesis of the crisis interpretation may be summed up as the Panitch-Gindin-Duménil-Levy school. That is to say, the view that neoliberalism entails an intensification of existing trends towards ‘financialisation’, seen as the dominance of finance capital over other capitals and its stranglehold on the state; an attendant rise in inequality and more open class warfare, as opposed to the welfarist compromises of the boom period when manufacturing capital was in charge; and a shift from consumption to an investment orientation. When it comes to the state analysis of neoliberal economics, however, Seymour (in my view rightly) takes his cue from Philip Mirowski: the neoliberal state presents itself as a ‘small government, free market, individual responsibility’ type liberal regime of familiar sort, but in reality neoliberalism means an enormous increase in the state’s repressive authority and even in its reach over all aspects of life. The difference is that the state is now used to create markets and market dependence where none existed before, or where it was attenuated by welfarist ‘obstacles’. The neoliberal state is a regime of (re)imposing market relations into the fabric of everyday life wherever possible, and it is in this context only that the combination of increasing authoritarianism (at least compared to the 60s-70s) with the new conservatism and the drive to (anew) outsource and commodify all labour can be understood.

Financialization also comes into the class analysis. After all, one of the characteristics of neoliberalism (all agree) has been the increasing indebtedness and financial ‘enmeshing’ of Western workers. Also, the centrality of finance and the finance-state alliance in the United States to the workings of the international economic system since the end of Bretton Woods, as documented by Gindin and Panitch in The Making of Global Capitalism (London/NY 2013: Verso) has generated (or imposed) similar alliances elsewhere in the Western world. The upshot of this is that, on this interpretation, finance has become the central nervous system of capitalism and that financial capital has become the leading sub-class (hegemon) within the ruling class alliance. Unpacking Seymour’s Gramscian-Poulantzian jargon, the social relation that is the state is always in some sense a reflection of the struggle of different classes and class forces. In this particular case the alliance between corporations, banks, political parties, civil servants and so forth that dominates the UK is led by finance capital and its direct or indirect representatives in politics: the often-observed City-Westminster nexus.

Yet in the state analysis, Seymour rightly emphasizes that the neoliberal austerity alliance is not an impregnable unity. On the contrary, neoliberalism is as any movement an alliance of different ideas and forces and has a fragmentary nature. If cohesion is created by the dominance of the particular interest of finance over the whole, even other sectors of capital, the strategies pursued on this basis also entail risks and potentials for division. The wholesale attack on the conditions of social reproduction as they have grown in the postwar era more aggressive and sweeping than even in the Reagan-Thatcher years, and this means that either Marx’s ‘moral’ historical element in the reproduction of labor will be pushed down to a systematically lower living standard for the Western working class; or it could mean sufficient disruption and resistance that this social reproduction itself is threatened and the attack has to be called off. The former appears to be happening now, but the latter was the picture of the earliest wave of neoliberalism in the 1970s, and this shows the importance of organized labor resistance to raising the risks of an austerity strategy for the ruling class.

Similarly, the pursuit of debt reduction, cutting government expenditure, public employment and so forth makes sense from the viewpoint of financial capital — as it strengthens credibility and therefore creditors — but it threatens through the ensuing conflict and contraction the position of weaker elements of capital, such as manufacturers and those dependent on international trade. Such state intervention as exists in the economy is explicitly to defend finance capital at all costs, hence the bailouts, but there are also other elements of the ruling class alliance and global stability to keep in mind, not least politically. Hence Seymour rightly notes that “the divisions among elites over whether to proceed with austerity reflects both the risks of the project and divergences of short-term interests” (94). This solves the riddle of whether austerity is ideological madness or whether we should adopt the ‘rational choice’ view that this ruling class must be right about its own interests: it depends on what segment of the alliance we are talking about.

This brings us to the question of ideology, which perhaps more than anything else (unless it is the decline of unionism) defines our current era. Here, Seymour is perhaps at his best. As is obvious to all, but often handwaved away in the wishful thinking that passes for much left analysis, the situation ideologically is very grim. In the UK, fewer people now support the old ‘welfare’ set of views than even at the height of the ‘winter of discontent’ in the late 1970s that inaugurated Thatcher’s rule. The new ‘common sense’ imposed by decades of virtually unchallenged neoliberalism and the demise of the Soviet Union — the latter a factor Seymour barely mentions — has quite successfully imbued the current generation of young people with an ethos of individual careerism, of identifying with the discipline of the market. While this generation is much more progressive than the previous on questions of gender, sexuality, race and so forth, it is also much more neoliberal in terms of the relationship of individuals to society and its political economy — a trend visible throughout the Western world. In addition, Richard Seymour gives due attention to the counterpart of this common sense: the increasing violence and authoritarianism against those who resist or transgress the new discipline of the market and its inequalities and exploitation. From forced labor to obtain benefits to the escalation of police tactics, it is especially the women and people of colour of the Western world who make up much of the working class that bear the brunt of this offensive. The rhetoric of ‘scroungers’ and benefit dependence only legitimizes this new ‘liberalism without a human face’, and the more the state and its remaining welfare system present themselves as modes of exercising neoliberal authority, the less they are seen as universal achievements of citizenship in a high-wealth society. Seymour brings out this vicious cycle of our current times quite well.

There is much to like about this book. It is a clear and well-structured read: it starts off rather blocky and posturing in the beginning (for which I am just not the right audience) but improves over time with an at times fairly detailed analysis of the relationship between the rule of finance capital within the neoliberal state and the concrete strategies, alliances, and ideological ‘strong redescriptions’ this entails. Refreshing especially are two important things about this work: firstly, Seymour’s resistance to wishful thinking and hand-waving optimism. He describes the utter weakness of the left’s resistance, the decline in unionism and the small likelihood of its recovery, and the increasing neoliberalization of the Western common sense in no uncertain terms. Secondly, he rightly points out how identifying neoliberalism simply with ‘free marketeers’ and seeking a restoration of the old welfare capitalism and union alliances to combat it is an illegitimate and impossible exercise in old union worker nostalgia and doomed to collapse before it ever gets off the ground. He emphasizes how much unions have now come to rely on public service workers for their base, the last relatively privileged and secure bastion against the labour market, and how the neoliberal offensive on this point is destroying even that base as we speak — without any clear counter-strategy to be seen. The spirit of ’45 is an obscene display of delusional nostalgia, and should be rejected wherever it appears, and Richard Seymour does not indulge it — which is rare among the left in the UK, although such politics of nostalgia is much less evident in the United States. On the whole, this book does what should be the starting point of any Marxist analysis: it describes with sober senses how bad the radical left’s strategic position is, unhindered by the shibboleths or blinders of sect strategy.

Admittedly, I have some disagreements with the analysis as well, both larger and smaller in nature. Although these are all points on which people can reasonably disagree, I’ll mention a few points of difference here. One is that I think Seymour still concedes too much to the existing union structure, despite his justified emphasis on the need for a ‘new unionism’. The Owen Jones argument that unions are still the ‘biggest democratic institutions in the UK’ and the like simply does not convince, and masks the real issues of organized workers in the West. Firstly, if we criticize liberal democracy for being a sham democracy in some respects, being structurally set up to favour the elites and by demobilization and abstention excluding much of the working class, then this goes a fortiori for the unions. Even in the United States general elections will reach a 50% turnout or so, whereas union leadership elections are often decided on a turnout of about 15%. That does not bode well for an argument about their democratic content. Moreover, the dependence of Western unions on public sector workers. While the conditions and makeup of the public sector workforce is increasingly like that of private sector work, the strategic position is different. Public sector workers are more subject to the neoliberal ideological resistance to the state apparatus, making them seem ideal examples of wasteful obstacles and parasites to be cut; they’re often, as state representatives, in ambiguous relationships to workers (think of teachers or social workers); and they depend way more than private sector workers do on a general reserve of public support and solidarity. In Chicago, the CTU managed to triumph on this basis, but in most cases the long-term trend is not good for public sector-heavy unions.

Finally, there is also a certain analogy between the ‘Labour is defined by its members, therefore should be supported’ and the ‘unions are run by workers, therefore democratic’ arguments: both ignore the way the structure of membership is set up to prevent the use of that instrument for any anti-capitalist purpose under current conditions. A new unionism would mean a radical reformation of the existing union structure just as it would require a doing away with Labourism (something Seymour does agree on). It is worth noting that in various polls, from the US to Australia, people systematically indicate that unions are among the least trusted and liked institutions in the West — comparable to big business and parliaments, in fact.

Another point concerns the economic analysis. While I do not want to go into too much technical detail that will likely bore or confuse a general left audience, it is at least worth noting that some of the economic reasoning that underpins the book is disputable. While I readily agree with Seymour’s analysis of neoliberalism in the Mirowskian style, i.e. as the imposition of markets by a stronger (and even sometimes bigger) state rather than a classic free market offensive, I am less enamoured than he is of the Gindin-Panitch-Duménil-Levy approach to the crisis. Everyone can agree that the proximate cause of the crisis lay in the financial system and its particular overexposure to bad debt, and that this bad debt in turn has its roots in the stagnation (though not necessarily decline) of worker compensation. But it does not follow from this that long-term financial trends are the dominant ones in explaining global capitalism since the neoliberal turn of the 1970s. The argument that opponents of this school do not take finance to be a ‘real’ part of capitalism is misplaced; while indeed the populist narrative sometimes leans towards seeing finance as merely parasitical on capitalism, none of the Marxist economic literature on the crisis does this. It is clear that the credit system and finance are central to capitalism, as one can find in Capital volumes 2 and 3. But it is also clear that if finance is essential to capitalism, it is equally incapable of generating new value in the system, and this — rather than its circulation or the imposition of competition and productivity increases for their own sake — is the lifeblood of capitalism at a global level. This does not make finance irrelevant, fictitious, or parasitical, but it means that a purely financial explanation of longer term trends in capitalism is less plausible within a Marxist economic analysis, because less ‘microfounded’ (as the neoclassical economists would put it). Perhaps, of course, such Marxist analysis is wrong — post-Keynesian theory, for example, does indeed give good reasons to support a wholly financial explanation of long-term crisis tendencies, relying on the interaction of expectations and demand, and this is something we find repeatedly in Seymour’s book next to the Marxist literature.

This points to some of the inconsistency of the economic analysis proposed by some of Seymour’s narrative. He attacks those who see declining rates of profit (identified by Marx himself as one of capitalism’s most important crisis tendencies) as central to the long-term analysis of crisis trends in capitalism by using two arguments: 1) that profits have been at a record high before and after the crisis; and 2) that such an argument is teleological and implies there is a ‘final crisis of capitalism’. Neither of these is convincing. The first is a common reply to the ‘rate of profit’ literature on the crisis, as in Andrew Kliman and Michael Roberts, but it rests on a conceptual misunderstanding. The historically high profit rates Seymour cites are, besides being uncorrected for inflation (!), stocks of profit. What determines investment in Marx’s theory, however, are rates of profit — returns on investment. Not absolute amounts, but returns as a percentage of a capital invested. If capitalist A invests $1000 and gets $100 back, and capitalist B invests $100 and gets $50 back, then it is A who will be outcompeted, not B. A should have invested in B’s production process (or finance, or trade, or whatever) and made $500 instead of $100 on his capital, and it is precisely the role of finance to make such distributions of investments happen, and thereby to equalize (and maximize) the rate of profit. It is precisely these rates of return that are advertised in all the financial literature and that play the same role for capital as the ’200 or 500 a year’ in rents (or interest) did for the Mister Darcy types in the Austen and Brontë novels. In fact, Seymour himself notes that “what matters to capital is the rate of profit on investment” (69)!

Why does this matter? Because whether or not Kliman and Roberts are right in their statistical analysis, it seems evident that a rate of profit analysis can explain why despite all the neoliberal offensives and despite 500 billion bailouts and the governments more or less begging capital to invest (as Seymour notes in his book), no investment is forthcoming. The left is no serious opposition; the unions are moribund; the government gives capital all it wants; and it does not invest. This baffles the Obamas and the Osbornes, who have only neoclassical economics to go by. The high-profit view also has no explanation of this, but the low rate of profit view does. There lies the relevance of this debate among Marxists.

The second counterargument should also be addressed, because it applies to the broadly SYRIZA-type strategies proposed by Seymour. While I think he is probably right that this kind of Eurocommunist ‘broad alliances’ and ideological offensives are about the best we can achieve at the moment, I think we should recognize that this is a position of weakness. The liberals are winning, and while a long-term offensive of ideology may hit the neoliberals where they are weakest, it is not likely to reverse the arrangement of forces in the short or even medium term. It is therefore very nefarious when nostalgic analysis substitutes for sober senses in this regard, as Seymour observes. But this applies also to the strategic implications of the inconsistency mentioned above, between emphasizing the need for investment and accumulation on capital’s part on the one hand, and simultaneously insisting this requires more consumer demand on the other. This is a fundamental mistake. Contrary to the Keynesian analysis underpinning this argument, according to Marx’s economics it is not the case that capital accumulation requires high worker consumer demand, nor therefore does it require the state to intervene on this basis to guarantee it.

The state does indeed often, since the Great Depression, intervene to prop up — in various ways, according to the class configurations in charge — the consumption levels of the working class. But this is for political reasons, and defended as such: Roosevelt and LBJ alike were worried about riots, uprisings, and revolutions, not about ‘multipliers’ (in fact Roosevelt famously campaigned on an austerity agenda). If this seems implausible, remember that capitalism accumulated quite fine in the Victorian age, even if regularly wracked by crises, despite the subsistence level (or lower) consumption of the workers, and the same thing is true for capital outside the West — a dimension Seymour barely mentions at all in his discussion of the political economy of the crisis. (I could here go into the relevance of the global dimension for the strategic problem of whether we should prioritize the living standards of Western workers in the face of globalized value flows, and also the absence of a discussion of the transnational capitalist class in this work. But arguably that would go too far for a review of a popular book mainly concerned with domestic strategy.) The importance of this argument rests in this: 1) that it would be wrong to think that the liberal state cannot go beyond a small bandwidth of austerity and repression; 2) that it would be wrong to think that any form of ‘demand side’ politics would do better than austerity at overcoming the crisis from the standpoint of capital.

The mistake here is a common one, and by no means limited to Seymour, but it entails confusing the needs of capital accumulation with the needs of the working class. It is precisely Marx’s point that the two are disjoined under capitalism. The conditions of capital accumulation are determined by the rate of profit and the variables that constitute it; whereas Marx pointed out that saying a crisis consists of insufficient demand is a tautology. (It must be noted this is recognized by some post-Keynesian literature as well.) The upshot then is that we must resist the urge to promote Keynesian solutions as an alternative to austerity ones for growth, i.e. capitalist accumulation, although of course we can and should defend the welfare state, good public services etc. on other grounds. It also means that we should not think that austerity is irrational or a mistake on the part of the ruling class compared to the possibility of a Keynesian alternative, as most of the center-left suggests. Not to suggest Seymour is one of them, but there is perhaps an unexamined tension between his interpretation of the economics and the most important observation in the book: that “if we attempt to ground our criteria in terms of the dominant criteria of what is good for capitalism, we cannot win” (159, emphasis omitted).

If I seem to spend exaggerated attention to the economic discussion in this book — which is only a part of the whole — I apologize; this just happens to be my main subject of interest at the moment. But the relevance of economic analysis of the crisis remains important to any strategy as well, as I’ve hopefully shown, and that is a major concern of this book. That said, I think on the whole this is a readable and useful guide to the interrelationship between austerity, neoliberalism, and the state at the level of strategy and ideology, and these are perhaps the book’s main foci in any case. It will disappoint the more ‘left communist’ skeptics, in its Eurocommunist-Gramscian approach, but this is itself a product of the limitations of our times. Aside from the usual minor errors — Alex Andreou is not called ‘Alex Alexandreou’ (102n56); Krugman is not ‘marginal within his profession’ (126) — the book has much to offer in terms of a sober and nuanced analysis. This goes especially in the UK where the trend towards nostalgia, wishful thinking, and resisting empirical and strategic reconsideration is so strong. As Richard Seymour puts it in the conclusion: “if this book has been intended to do anything, it has been to find a way to drop those fetishes… assimilate the reality of our present situation, and soberly assess the challenge posed by austerity, without losing sight of the objective — which is to navigate our way out of this impasse” (152). To that aim this book is certainly a worthwhile contribution.

November 4, 2013

Book Review: Maria Mies, “Patriarchy and Accumulation on a World Scale”

Posted in Book Review, Economics, History, Patriarchy, Theory tagged , , , , , at 16:35 by Matthijs Krul

Maria Mies’ classic work Patriarchy and Accumulation on a World Scale: Women in the International Division of Labor is an unduly neglected classic of radical feminist history-writing. Although written in 1986, and using materials mostly from the late 1970s and early 1980s, her lucid and polemical argumentation has lost neither its relevance nor its potency. As current debates in socialist politics and economics are reviving once more the question of feminism as a central concern of radical activism, it is encouraging to hear that Zed Books are intending to republish this work before long. (The edition used for this review was the reprint edition of 2001). Mies’ book came out of a particular strand of radical feminist writing, which although deeply influenced by Marxism sought to go beyond it and formulate a critique of patriarchal relations and of the use of technology within a patriarchal structure as a historical and political-economic foundation of exploitation deeper still than the class relations analyzed within (most) Marxist thought. This writing was especially prominent in the 1970s and 1980s in Germany, with the ‘Bielefeld school’ of Mies, Claudia von Werlhof, and Veronica Bennholdt-Thomsen, and in Italy, as in the work of Mariarosa Dalla Costa and Silvia Federici.(1) In both cases, it was the product of the struggle of women’s autonomous organizations, who developed in their struggle both an autonomist style Marxism and a conception of capitalist exploitation as a subset, a special case, of a more general kind of exploitation inherently involved with patriarchal society.

What makes Patriarchy and Accumulation on a World Scale such a powerful classic of this movement is not just the steely clarity and force with which its theses are expounded, but also Mies’ thoroughgoing materialism and her critical attitude to Marxism and its standard assumptions and historiography. The book is written in continuous critical dialogue with the Marxism of her day, especially the traditional Leninist approaches but not limited to those alone. This dialogue is more often implicit than explicit, certainly in terms of works referenced, but it is clear that the argument can be read as one of the most systematic radical critiques of the Marxist understanding of history and political economy ever to come out of the so-called ‘social movements’. For that reason alone, it should be read with seriousness and attention by Marxists, and not just those concerned with ‘women’s issues’ as a kind of cultural or political side project. Mies’ critical engagement with Marxism is not at the level of the fundamentals, at the level of the Marxist understanding of class, exploitation, agency, and power.

Of course, to do such a tightly argued series of essay-style arguments justice is not an easy task. But I shall attempt to sum up what I see as the main points of the book, the most fundamental theses of this particular school of radical feminism. The first and most important is the rejection of feminism, the significance and theory of women’s liberation, as a primarily cultural or political affair. That is to say, the oppression of women is for Mies not a question of purely ideological conservatism or political division of the working class. The roots of patriarchy are not superstructural, but foundational: in that unhappy metaphor, a part of the ‘base’. Mies systematically critiques the ‘cultural’ interpretations of feminism, the role of structuralism and functionalist theories of ‘roles’, and the traditional Marxist viewpoint of women’s oppression as arising out of the relegation of women to the ‘non-productive’ sphere.

In contrast to this, for Mies patriarchy is to be found in the social relations of production themselves, and is perhaps the single most important shaper of these relations. It is therefore not ‘just’ a form of oppression, but in the full sense a form of exploitation: exploitation of women’s labor and exploitation of women’s bodies. It is also, and this is the second thesis (in some sense a corollary of the first), not the product of capitalism nor a holdover fated to disappear under capitalism. Throughout the book, Mies mobilizes a fair amount of case studies in political economy – especially in India, in Andhra Pradesh, where she worked for a while – as well as in anthropology and economic history to support these theses. As she endeavours to show, women’s labor has always been a productive form of labor. To simplify her narrative of economic anthropology somewhat, the fundamental basis of patriarchal exploitation is the sexual division of labor, and this division of labor arises out of what she calls the ‘Man-the-Hunter’ model.

Human beings, from the outset, produce their lives. This is done in the earliest societies by means of gathering and hunting, before the origins of agriculture. For Mies, the gathering stage fundamentally precedes the hunting stage and agriculture. In this gathering stage, the center of society is the woman, who as mother is the precondition for the reproduction of the species. This involves a subject-relation to nature, in which the production of life is central, seen as a kind of relationship of give-and-take. Men are necessary for procreation, but do not have their whole bodies as sources for the production of life in the way women do; for them, the relationship to nature is an object-relation, one not fundamental to the reproduction of life itself. Where hunting coexisted with gathering, the hunting was generally the task of men, but as a supplement to the staple food procurement of women, not as the central economic metabolism reproducing society. Therefore, women’s reproductive labor has been the basis of society from the start.

However, with hunting men’s object-relation to nature developed and allowed them to turn their tools of violence onto other humans, including on the women providing the food and the new humans that allowed society to continue to exist. The hunting technology, purely parasitical on life and unable to produce new life, then became the basis of the ability of men to subjugate women, and thereby to exploit the productive labor of women to their own benefit. Both agriculture and pastoralism then sustained and systematized these relationships; in pastoralism, men could reproduce life via cattle, making women an accessory to their property in cattle, and in agriculture, the settled surplus could be appropriated by men and become the basis of their claims to property. This, in essence, is how exploitation entered the world from the man-the-hunter model, according to Mies.

While much of the work contains suggestive historical and political insights that I cannot explain here in any detail, in essence it extends this conception of exploitation of women’s labor in society to the economic history of capitalism and its origins. As with Federici’s work, feudalism, colonialism, and the witch hunts play a major role in the story, as examples of the further colonization of the life-world (a Frankfurter Schule conception implicitly prest in the work) by patriarchy. The witch hunts, on this reading, were a prerequisite of capitalism in destroying the knowledge and autonomy of women regarding their own bodies that ancient and feudal relations had to some extent maintained, and to destroy the ability of women of property, midwives, herb doctors and so forth to continue a public existence economically independent of men.

Colonialism simultaneously extended the patriarchal-exploitative model onto the non-European world, rendering the colonized subject in much the same way as women were rendered subject and dependent on men, and often using the same tropes to justify this exploitation. Borrowing from Carolyn Merchant’s pioneering work, the Scientific Revolution of the 17th century appears as the ideological and practical systematization of patriarchal relations, as an instrumentalizing of technology to the ends of the complete subjugation of nature, which inherently means the subjugation of women as ‘natural’ by the men of ‘culture’ or ‘science’ – as seen in the notoriously misogynist formulations of the new scientific outlook in Francis Bacon.(2)

Capitalism is in a sense the fulfilment of these ‘promises’. Not only does it reinforce and strengthen the immediate forms of violent economic coercion, but, for Mies, it can only exist on the basis of these more fundamental exploitations. While the relentless drive to subjugate every life for the sake of accumulation is peculiar to capitalism, this does not destroy but rather modifies and strengthens the underlying foundation. The basis of the exploitation of wage labor, on this reading, is not just the one-off ‘primitive accumulation’ of the early modern period, but the persistence and indeed necessity of the exploitation of labor deemed not ‘productive’ for capitalism itself.

In other words, exploitation of ‘productive’ labor is only possible because of the exploitation of ‘unproductive’ labor, and this is precisely what Mies holds most against the Marxist interpretations of capitalism and patriarchy alike. Marxists, Mies argues, have always seen the integration of women into the working class as the prerequisite for the emancipation of women. While feminism has been a part of socialism from the start, independent feminist action has often been denounced as bourgeois and divisive because of its nonclass nature. Simultaneously, working class feminists were told that the oppression of women was either an ideological holdover from feudalism, to be eradicated by political and cultural struggle, or that it was the result of the exclusion of women from productive labor, which could be solved by unified class-based activism for employment, unionization, etc. (Often both arguments at once.) Maria Mies’ critique of this standpoint is as relevant now as ever, with leftwing organizations – especially self-proclaimed Leninist ones – still often using argumentation along these lines. For Mies, what this viewpoint ignores is a vast amount of the actual economic exploitation under capitalism, namely the exploitation of labor productive of life. Not just housework and care for children, but vast amounts of women’s labor even in the direct production or maintenance of commodities is ignored in this perspective.

It is absurd, she argues, to claim that women should be reintegrated into the workforce as a precondition of emancipation when women have always been the majority of the workforce – just not counted as such because work undertaken by women is systematically downgraded or ignored into ‘informal sector work’, ‘unproductive work’, or even seen as leisure time. Especially in the Third World, but not infrequently even in the First (and Second), women were and are systematically excluded from the ‘productive’ sectors of the economy (heavy industry and higher administrative work etc) and pushed out into less paid, higher-intensity and more irregular work in ‘informal’ sectors, in putting-out systems, handicraft production from home, and so forth. In agriculture in poor countries, it is overwhelmingly women who bear the burden of the heavy labor in addition to the housework, healthcare work, childcare and so forth that revolves on them.

Such systematic exploitation is only possible because of the violent imposition of such roles onto women by men. An illustrative example here is the various leftwing national liberation struggles, which supported women’s equality and sought to integrate them into factory work and even frontline fighting, out of the exigencies of the war – but as soon as the war in e.g. Vietnam was over, the women were relegated once more systematically to informal and housework, poorly recognized and remunerated, working longer hours, and generally excluded from political participation. And this is hard to deny: virtually no Leninist Politburo or National Liberation type government has ever had a woman in it, and none have been led by women. (In fact, one could add to this the similar pattern of expansion and retrenchment of women’s positions following their equally ’emergency’ participation in the ‘productive’ workforce in the West during WWI and WWII.)(3)

The ‘wages for housework’ campaign of the Italian wing of this radical feminist school should probably be seen in this light. It involves a critique of the concepts of productive and unproductive labor of not just capital itself, but also of the Marxist interpretations of capital. It is in that sense both descriptive and normative, as is Mies’ theory. Although the latter does not specially emphasize this campaign, rather arguing in favor of women’s autonomous organizing and a rejection of the dismissal of ‘middle class feminism’ in favor of an encouragement of all women’s activism at the point of consumption.

What then is the upshot of all this? Here, the theory and the political conclusions must, as always, be analytically distinguished. The main point of the book is the powerfully argued case that rather than seeing women’s issues as one of many ‘side problems’, oppressions to be distinguished from and considered less fundamental than class exploitation under capitalism, in fact capitalism itself is merely a special case of patriarchal society. In this sense, Mies reverses the usual Marxist conception of the relationship between women’s oppression and capitalist relations. This also means that women’s oppression and violence against them should not be seen as a feudal holdover, something that will go away on the basis of a workerist politics, but are rather ongoing ‘primitive accumulation’ – something akin to what David Harvey has since theorized as ‘accumulation by dispossession’. It is the exploitation of women’s labor, the majority of all labor performed in the world in Mies’ broader definition of this concept, that is fundamental to all patriarchal societies since the dawn of pastoralism and agriculture. The Marxist politics of equality through integration are therefore totally inadequate to accommodating this fact, as is any Marxist political economy that fails to comprehend the really productive nature of the supposed ‘unproductive’ production of life.

In my judgement, there is much here that is instructive, interesting, and worth engaging with. Much of the argumentation with regard to the exploitation of women’s labor, past and present, can probably be sustained without too much difficulty. Indeed, that socialist politics and economic analysis have often not moved forward much on these points since the mid-1980s is a sign of the relative retrogression of the socialist movement generally since that period. Although indeed many feminist and socialist activists have worked with these ideas and continue to extend and apply them today, much of the ‘higher’ political economy and theory of Marxism has not really grappled with the fact of socially reproductive labor, the informal sector, and the centrality of women to both in an adequate way. (The foreword to the 2001 edition, written in 1998, barely registers any change.)

On the other hand, it is unclear how well Mies’ actual narrative of exploitation stands up to economic and historical scrutiny. Much rests on the anthropology of early societies and her sometimes rather philosophical claims about the respective relationships of men and women to them, and I am unable to judge to what extent those are confirmed by recent literature. While this perspective is a salient counterblast to the revival of patriarchal ‘realism’ in the form of Evo Psych, this does not mean it is any more correct, and the questions of nature and the natural in society (ancient and modern) remain hotly debated. (Mies does not, for what it’s worth, deny to men’s nature an ability to overcome patriarchy, nor does she regard them inherently oppressive or violent.) Similarly, the economic historical narrative is suggestive, but based on an extremely narrow set of sources largely within or allied to this particular school of theory, such as the work of Merchant, Von Werlhof, and others, plus some selective readings in the work of Claude Meillassoux and Immanuel Wallerstein.

It is imperative that an argument along these lines be developed or judged in light of a wider and more inclusive body of literature if it is to fully convince. Occasionally, after all, her interpretations lead her to some bizarre statements, such as the claim that rape does not occur in animals (p. 164), or her insistence that violence against women is constantly increasing in modern society, which she does not support with any evidence. This underlines the need to take the argument seriously, but not to take all the empirical claims for granted without further corroboration. Similarly, to what extent her views on productive and unproductive labor are or are not to be reconciled with Marxist value theory is a subject not explored in this book, but a potentially fruitful avenue of argument that could actually move Marxist political economy forward as well. That said, this criticism should not be overstated – for example that some of her empirical work has become outdated (such as the arguments based on the legality of rape within marriage in the West) is for an important part creditable to the activism of feminists thinkers and doers like herself.

What’s more worrying is the political section at the end of the book, in which she outlines a more or less programmatic view of anti-patriarchal politics. Just like with Von Werlhof’s intriguing works on capitalist technology, it is here that in my view she badly lets down the materialist and critical commitments that characterize most of the work. For Mies, the importance of the production of life as central to any radical politics opposed to capitalism and patriarchy leads her to oppose any view that involves the classic Marxist arguments for reducing necessary labor, freeing up the life-time of individuals, and applying technological capacities in the interests of all. These are for her just so many more attempts at technological utopias, dreamed up by working men to further free themselves from work at the expense of nature (ecology) and the colonized (women and the Third World).

Instead, her dream is essentially one of romantic reaction. In a rather remarkable piece of justification, she claims that it would be better for as many people as possible to return to agriculture, to work in the house and on the land, for the reproduction of life in an immediate way. Much of the argument is here indebted to the Frankfurter Schule critiques of Enlightenment instrumentalism, but she gives them a markedly backward-facing turn.(4) After all, she assures us, the poor Indian women of Andhra Pradesh she saw at work didn’t really mind working so much, they were happy and even sang songs, showing that this is the real relationship of the body to production. Autarkic production in all societies, with the burden of work as large as possible and shared among all as much as possible, is here the goal; to strive for an overcoming of work, or a use of modern technologies to free us from work, is merely “Man playing God”.

It is here that Mies falls both into romantic reaction and into theoretical inconsistency. She rebuts these claims in her later foreword by stating that a return to an old state isn’t so bad, and besides, she offered an alternative political economy, which is an important part of socialist theoretical work. But it is not so simple. Mies’ materialism abandons her when she thinks that previous forms of society, such as feudal or older agricultural labor, are more ‘natural’ than any other merely because they involve producing food as the precondition of life. While this may be the precondition of all other organic development of society, it does not mean that we can or should replace a base-superstructure model of class vs all other social relations with one along the lines of agriculture vs all other production.

Moreover, she is inconsistent in what she will and will not allow the future society to contain. It is possible that the future society deconstructs the ancient patriarchal exploitation based on the sexual division of labor; that it overcomes the need for accumulation; and that it achieves ecologically sustainable autarky. But it is not possible that the free time of the future would be more meaningful than the ‘leisure’ of today, which she solely conceives of as a false category invented to ignore women’s housework. It is not possible that technology which today is applied against humanity can tomorrow serve it. It is possible for her ideal society to contain all forms of work which are sensuous and pleasurable; but it is not possible for the Marxists to argue that free time could be the basis for human development, as free time is just filled with “male leisure activities such as video films and computer games” anyway.

Her romantic vision of agriculture and its deadening, back-breaking work is not supported by any sense of either the reality of this work or what it would really mean for humanity to be doomed forever to be restricted within this narrow perspective of life. It may be so that it was good enough for many of our ancestors, but why should we care? Indeed, in the history of humanity as a species, agriculture is a comparatively recent invention, and it is just as instrumental and technological as any other technology. In this, Marx’s critique of what he called ‘feudal socialism’, the hankering for the imaginary peace of the settled past with its narrow horizons and its stable order, is as valid as ever. The choice is not really between either capitalist accumulation and a turning back of the anthropological clock; even if the latter were possible, which it is not, it is not desirable. Her vision here, paradoxically, reveals on her part a failure of the imagination, one common to much of the writing of this school: a failure to imagine technology and life-time as constituted differently than in the societies of the past, where both served the surplus rather than the surplus serving them. While I sympathize with much of the radical feminist interpretation and critique of patriarchy offered here, as well as with the critique of accumulation for its own sake, this does not imply to me that we must substitute Marx’s utopianism of free time for Mies’ reactionary utopianism of peasant authenticity. Mies should not crucify humanity upon a cross of mud.

1) Not to be confused with the Bielefeld School of social history, associated with Reinhart Koselleck and his colleagues.
2) E.g. the metaphors in his Novum Organum of putting nature on the rack, making Her reveal Her secrets, and so forth. There is a whole interesting feminist reading of the origins of modern science that this review cannot go into. See: Carolyn Merchant, The Death of Nature: Women, Ecology, and the Scientific Revolution (New York, NY 1983: HarperCollins).
3) For more on the subjugation of women to nationalist ideas of nature and productivity, see a previous guest article on Notes & Commentaries here.
4) While she does not credit them, there seems an implicit debt to Adorno & Horkheimer’s Dialectic of Enlightenment (1944).

October 17, 2013

Zombifying Marx

Posted in Economics, Theory tagged , , , , , at 14:31 by Matthijs Krul

In a 2011 article in Jacobin magazine, the Australian political economist Mike Beggs accuses the defenders of ‘orthodox’ Marxist economic theory of creating a ‘zombie Marx’. What matters, Beggs seems to suggest, is not really whether this or that economic theory is correct in its foundations, about which the neoclassical economists of today’s orthodoxy are just as dogmatic as the Marxists are about theirs. Rather, the significance of economic ideas rests in the practice. This practice consists of what he, citing David Harvey, calls “casual empiricism”: “for example, in analyzing the relationship between the US federal government’s deficit and long term interest rates.” The search for foundationalism, being able to found any given economic finding along such empirical or econometric lines on a well-defined and general theory, is the province of a rigid minority of neoclassical economists, and has little to do with the everyday practice of economics. Or so Beggs would have us believe.

He then goes on to conclude from this that it is the Marxists who have a problem, not the neoclassical economists. Unlike their mainstream neoclassical counterparts, Beggs suggests, the Marxist economists have a tendency to prefer ‘going back to the text’ to advancing economic knowledge, and this process has to do with the political commitments of Marxism outside the mainstream. Essentially, Beggs argues that Marxism as a rival school of thought in economics fails, and must fail, precisely because it is not mainstream and does not reconstruct itself along the lines of the methods of the mainstream: “The pursuit of a separate system of economics as something wholly other from mainstream economics isolates us from the political and ideological space where these things take place: better, instead, to fight from the inside, to make clear the social and political content of the categories.” Read the rest of this entry »

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