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 6, 2013

Why do we like mafia films?

Posted in Agriculture, Class Struggle, Culture, History, Theory tagged , , , , at 17:22 by Matthijs Krul

“Bolshevism is knocking at our gates, we can’t afford to let it in… We must keep America whole and safe and unspoiled. We must keep the worker away from red literature and red ruses; we must see that his mind remains healthy.” – Al Capone

The genre of the mafia film, and related media such as mafia-related thrillers and so forth, remains one of the fixed stars at the firmament of popular culture. Movies like The Godfather, Scarface have become all-time classics, while television series such as The Sopranos rival with them for the considerable audience interested in such works. What characterizes many of the most successful media in this genre is not so much having the mafia as a subject, but that more often than not they are seen from the point of view of the gangsters themselves. Portrayed as flawed, greedy, but witty and inventive fighters against establishment and order, bound by an idiosyncratic but honest honor code, the mafiosi seem to figure as ideal anti-heroes. Of course, that the life of the mafia boss gives plenty of opportunity for filmmakers to incorporate high doses of violence and sex in their films is also an important part of the deal. This fits perfectly with approaches such as HBO’s standard formula for successful television series, which is simply repackaging sex and violence into a thin intellectual wrapping so that people don’t feel unsophisticated or vulgar for watching it.

In principle, there seems nothing wrong with this. After all, the mobsters in question are rarely portrayed as particularly good or nice, and antiheroes are a common and appreciated trope of scriptwriting. Moreover, for good reasons few people identify strongly with the FBI or other police organizations dedicated to maintaining the law and order against which the mafia supposedly rebel in vain, so that the latter can appear both as antihero and as underdog – certainly an irresistible combination. However, it seems to me that especially on the left, the politics of this genre is not sufficiently examined. Of course, there is a considerable amount of writing on the notions of masculinity and outward aggression. For example The Sopranos explicitly plays on the theme of the fragility of masculinity and the absurd lengths to which the mafia members will go to sustain it. Similarly, much has been written on the nature of the mafioso as a self-made man, as a social climber, and the mythology of the rags-to-riches dimension inherent in the criminal career, but this remains focused on the level of the mafioso as individual. In this narrative, the mafia film is an example of how the criminal story of ‘bootstrapping’ becomes the anxious dream, an object of jealousy as well as a source of repulsion, for Western audiences in times of diminishing social mobility.

In a different interpretation, Fredric Jameson’s famous essay on The Godfather in his article “Reification and Utopia” focuses on the mafia as a cypher for the essentially criminal and pervasively parasitical power of capitalism itself, this is still robbing the mafia as protagonist of its historical and economic origins. Put differently, for Jameson “mafia movies thus project a “solution” to social contradictions – incorruptibility, honesty, crime fighting, and finally law-and-order itself – which is evidently a very different proposition from that diagnosis of the American misery whose prescription would be social revolution.” This means the mafia protagonist is merely the ‘dark side’ of capitalism to play off against the fantasy of the Party of Order, the possibility of a restoration of order and moral values within capitalism that would free us from its negative, destructive forces and restore a sense of Gemeinschaft. The mafia film is for him therefore an exercise in moral judgement on the ‘illegitimate’ side of capitalism, ignoring that capitalism is always criminal.(1)

But what is less examined is the position of the mafia genre from a historical and comparative perspective. That is to say, while the structure of the mafia honor code and its significance – and of course the talents and techniques of filmmaking itself as they are expressed in Scarface or the like – are familiar points of inquiry, this still takes the concept of the mafia film with the mafia as protagonists for granted. Instead of this, I would suggest the political implications of the mafia film can be understood differently if we focus on the economic historical function of the mafia as an institution. In that case, the seemingly self-evident acceptance of the mafioso as antihero protagonist should be seen by any radical politics in a much more negative light than Jameson and the other psychological readings suggest. For what is at stake is more than just an ambiguity towards capitalism as a whole: the mafia as antihero protagonist is itself a politically reactionary instrument.

Few people seem very aware of the origins of the mafia beyond a conception of them ‘coming from Italy’ as a peculiar kind of organized crime, and then with Italian settlers in North America taking up root in the big cities of that continent. However, the mafia was always more than just a simple gang, or even a confederation of gangs. Such a thing does not come about naturally; neither do their strict hierarchies, honor codes, and the clan-like structure. We must not naturalize this, but examine it historically. What we find then is that the origins of the mafia lie in Italy, but in a particular context: namely in the struggle between the landlords, often absentee landlords, and the peasantry of the Mezzogiorno. From the high Middle Ages onwards, after the establishment of serfdom in the Kingdom of Naples (which also controlled Sicily) and its maintenance under the rule of Aragon, the interests of absentee landlords were protected during the periodic risings of peasant rebellions or foreign invasions (such as by the North African muslim states) through organized groups of guardians of their fiefs. It is in this that traditionally the origins of the mafia are found: representatives and guardians of the interests of the feudo, the large landowners, from the period of serfdom up to the 19th century or so.

So the mafia from the get go are an outright reactionary organization serving the interests of the large landowners, the latifundists.(2) This also explains their ongoing hostility, up to the present day, towards the political and social organizations of the poor rural populations in Italy and towards the political left (the PCI) and its trade unionists, whose members they often sought to assassinate. However, we should not simply project the feudal origins onto present-day mafia activity. In the course of the 19th century, southern Italy became subsumed to the rule of capitalism, and with it, the structure of its social relations changed, and the mafia along with it. As Salvatore Lupo describes in his History of the Mafia, feudalism decayed into fragmentation of landownership and urbanization plus export-based agriculture and mining became economically dominant trends in Sicily and elsewhere.(3) This meant that the raison d’être of the mafia shifted along with it. Partially, with the various rounds of redistribution of land in southern Italy, the mafia interposed itself effectively between the large landowners and the peasantry, controlling the process of distribution to their own advantage. As Lupo writes: “they [the mafia] were organizers of cooperatives and won much of their power base by serving as intermediaries in the transfer of land from the large landowners to the peasants, and therefore by placing themselves firmly astride the collective movements precisely in the postwar years following the First World War and the Second World War.”

Similarly, with increasing export orientation of tenant farming, for example in citrus fruits, and with the development of urban markets linked to the rising world market of the capitalist era, it is precisely in the interstices between rural production and urban marketing that the mafia found its strongest foothold.(4) In Palermo, Lupo identifies their base of operations as the suburban and rural terrain belonging to the city proper: “In particular, in what in the nineteenth century was called the agro palermitano , or Palermo territorial countryside, midway between city and countryside, in the borgate and in the villages of the hinterland, the Mafia groups established a system of control over the territory that set out from the dense network of guardianìe (custodianships). They ultimately seized control of both legitimate and illicit business, cattle rustling, smuggling and contraband, and the early commercial intermediation of citrus fruit and other products of the area’s rich agriculture. In a more recent era, the same area proved to be the more or less natural marketplace for the expansion of real estate and for speculation in that field—age-old locations and age-old power bases finding new op­portunities for profit. The Mafia’s introduction into a transoceanic migratory network and its involvement with long-distance trade, such as the citrus fruit business, simply laid the groundwork in terms of mentalities and abilities well suited to smuggling tobacco and narcotics.”

It is important therefore, as always with such phenomena, to not simply ascribe the persistence or nature of the mafia to quaint and romantic holdovers from the feudal era. Their utterly reactionary role in terrorizing the peasantry of the Mezzogiorno and acting as guardiani of the latifundists is clear enough. But in the modern period, capitalist relations have not caused them to wither away, but rather to strengthen their operations. The role of the drug trade and other activities immediately related to the world market, and their operations in land and housing speculation and in protection rackets, are all examples of how the mafia’s traditional role as intermediaries have taken on new forms in the capitalist period. This is no different in New York than in Palermo. Whereas previously they operated directly in the interests of the agricultural ruling class, with the slow disappearance of this class and its significance, they became intermediaries of the new ruling order in a more abstract way – intermediaries wherever money was to be made, licitly or illicitly, always by interposing themselves between producers and the realization of the value of goods.

In other words, they now act as intermediaries on behalf of the ruling class not as a sociological phenomenon, but to the driving force of capitalism in a more abstract sense, intermediaries on behalf of capital in general. This clarifies on the one hand their mixture of clan-like structure with a strongly entrepreneurial focus, and on the other hand the ambiguity inherent in the much vaunted honor codes of the mafia, the omertà. As Lupo describes, and the mafia films invariably portray with great seriousness, the mafia always like to conceive of themselves as bound by ancient honor codes which require them to support the weak and attack the strong. More often than not, they see themselves as good, traditional Catholics and are quite insistent on enforcing its religious principles, including its inherent homophobia and patriarchal attitudes.

But it is impossible to comprehend why both the makers and the viewers of the mafia genre take this at its word. In a classic example of Hobsbawm’s ‘invention of tradition’, the more the modern mafia appears as an agent of capital, and pursuing the most violent and regressive forms of capitalism imaginable, the more the mafia is keen to present itself as defenders of traditional values. As Lupo notes: “In that ideology there is a certain degree of self-persuasion, a great deal of overweening ambition, and an even greater degree of propaganda destined to clash in the great majority of cases with a far different reality… Greed and ferocity, as will be documented in the pages of this book, are intrinsic characteristics of the Mafia of both yesterday and today, and both Mafias are and were capable of slaughtering innocent people, women and children, in defiance of their codes of honor… Sicilian and Italian American mafiosi continue to declare their hostility to drugs, which destroy the sociocultural ties of the community, even when they are caught red-handed dealing narcotics.” And so forth.

Similarly, this kind of hypocrisy of the mafia code, a lie and misrepresentation at its very base, also applies to the mafia’s relations with the state. In reality, the mafia is not so much anti-state nor a protector of traditional communities against state interference as it is, once again, a mediator between state and citizens, in its own interests. The history of Italy during fascism shows that the mafia and fascism could find a lot to agree on and to respect in each other’s work: they were really not so very different, and many of the mafia’s main figures were enrolled into the official fascistic militias, against the partisan activities of the resistance of the left based in workers and peasants’ movements. Equally, after WWII Italian politics has seen a consistent corruption and collusion between mafia and state figures, especially but not exclusively among the parties of the right and center. Occasional bursts of arrests of leading mafiosi then appear as the state’s means of keeping the mafia in the place where they want it: enablers of the political programmes of the Italian right, but not too much of an independent power outside its own sphere. The mafia have often chafed under this yoke – leading occasionally to outright war with the state, always with the mafia as the losing side – but on the whole accept the deal in return for their increasing, rather than decreasing, dominance through terror over the producers and small capitals of southern Italy in the course of the 20th century. The same is true in those places in North America where the mafia was and is sufficiently established to undertake the same role, such as in some parts of Canada and in cities like New York and especially Boston.

Here I must additionally say something on the role of the mafia in the specific context of migration to North America, because it is in this context that the mafia genre is almost always situated. It is frequently portrayed in the more historically oriented depictions as the equivalent of a ward boss, as power-brokers protecting poor migrant communities of Italian-Americans from petty criminality and the aggressive intervention of the WASP state establishment. While there is some basis of truth in this, this once again reinforces the mythology of the mafia as protectors of traditional communities, and ignores the fundamentally negative role the mafia plays even so. Gangsters throughout modern history, up to modern-day Mexico or Russia, defend themselves ideologically by the claim that they act as the real source of order and justice in poor communities and that they eliminate the many petty thieves and lenders and so forth preying on the population. But in reality, what this means is not the elimination of such small criminals, but their incorporation into the mafia sphere.

Like any capitalist enterprise, they seek to eliminate the competition and to obtain a monopoly: a monopoly on parasitical violence against the workers and against smaller capitals. It is a fundamental political inconsistency, and a mistake, to take their ideological justification of the search for this monopoly at its word. This justification is fundamentally analogous to the claims of the capitalist class that without its monopoly of economic rule, no production could take place, or the way the Party of Order representing its interests justifies the need for a police force to ‘restore order’. Precisely because these goals are, within capitalism, fundamentally analogous, the mafia is in practice ready to collaborate with the forces of the state whenever it suits them. Contrary to the mythology around the iron code of omertà, in reality mafiosi constantly betray each other once they have been arrested in order to obtain reduced sentences. There is no political principle here, only the formation of a petty ruling class within a larger capitalist formation in those cases where the state itself is unwilling or unable to enforce a monopoly of property against the workers. The mafia is less than a ward boss, because it does not deliver services beyond the elimination of its rivals. But it is also more than a ward boss, because it mediates the rule of capital through violence: namely in those situations where the latter’s usual means to terrorize the workers into accepting its exploitation by a parasitical class are inadequate.

The determining factor here is their hostility to the independent activities of organizations of workers and peasants on the basis of class or on the basis of rural resistance, unless such could be co-opted into a moral and individualistic programme. (Here, some of Jameson’s analysis is certainly sustainable.) The collusion between the mafia, the parties of the right and centre, and the Catholic Church is therefore (among other things) an alliance against the left, particularly trade unions and Communists, and is founded on its hostility towards this. That is the real meaning of the mafia today and throughout the capitalist era, and it is not just limited to the Italian case: much the same can be said of the Mexican cartels, of the Russian mafia, and so forth. Similarly, we find the mafia always on the side of the Italian-Americans or the Irish-Americans as a ‘community’ in the historical portrayals of its role. But in reality this means precisely the enforcement of the integration of these respective groups into the establishment of capitalism, reinforcing its existing order – including the role of this community in rigidly enforcing the oppression of black Americans, a prerequisite for its acceptance into the larger ‘white’ state.(5)

Now what is the point of all this history? It is to establish the curiously indulgent and positive attitude towards the mafia as genre protagonists, even if in the form of antiheroes. If one compares for example the treatment of the mafia given the above knowledge with the treatment of the Ku Klux Klan in American media, there is a striking difference. The KKK, although a Protestant organization, had much the same kind of role in protecting the interests of landowners against the potential independent organization of the rural and even urban workforces in their specific region, and equally claimed to be bound by the honor codes of their ancient genteel traditions in the style of Gone With the Wind, and equally combined terrorizing the producing population as intermediaries between state and society, and equally ultimately served the purpose of maintaining a particular order of property convenient to the supremacy of a small historical elite (including its racial dimension in America). Yet it is inconceivable that an HBO series or a whole range of commercially and aesthetically successful films would be made portraying KKK members and their organizations as flawed but dignified antiheroes.

Of course, the racial dimension plays a big role here, but this only reinforces the point: while those films successful in the early 20th century, such as Gone With the Wind and Birth of a Nation are now uniformly discredited and never shown because it is recognized that their very premise is tacitly based on the oppression of black Americans – both as workers and as blacks – such awareness is rarely if ever exercised against the genre of mafia films, which even among the left enjoy a great popularity. Of course, some people better versed in the genre will no doubt accuse me of misunderstanding it in the details of the specific films. That may be so; but if I misunderstand them in the specific, it is exactly by understanding them in the general, and therefore refusing to recognize this genre’s romantic idealization of an institution that both under feudal and capitalist conditions has always shown itself as the worst enforcer and mediator of the conditions of exploitation of these economic systems. Just like there is nothing heroic about the KKK, not even anti-heroic, the same is true of the mafia.

1) Fredric Jameson, “Reification and Utopia in Mass Culture”. Social Text 1 (1979), p. 146.
2) From the Latin latifundia, the large landholdings of the Roman aristocracy, generally worked by slaves. This system of large landownership of a narrow class of slave-owning aristocrats formed the basis for Western European feudalism with the decay of the central power of the Roman imperial state. See e.g. Perry Anderson, Passages from Antiquity to Feudalism (London 2013 [1974]: Verso), p. 75-103.
3) Salvatore Lupo, History of the Mafia (New York, NY 2009: Columbia University Press).
4) See also: Dimico et al., “Origins of the Sicilian Mafia: The Market for Lemons”. University of Göteborg, Working Papers in Economics 532.
5) Noel Ignatiev, How The Irish Became White (New York, NY 1995: Routledge).

July 8, 2013

Military Coup in Egypt

Posted in Africa, Middle East, Politics tagged , , , at 17:13 by Matthijs Krul

It is always difficult for socialists in one part of the world to pronounce on events thousands of miles away – at least without a certain degree of hubris and a certain risk of making oneself ridiculous. This applies perhaps in particular for those countries where the political forms and institutions, immediately apparent to outsiders, do not actually reveal much about the internal political and economic stucture: one can think here of Turkey, Pakistan, and the like. In a sense, it can perhaps be said that generally poor countries are effectively more divided than rich ones. This should come as no surprise given the desperation of poverty, the strength of religious divisions in such places, and the nature of class conflict. Sometimes these divisions are relatively clear and transparent to the outside, but often they are not, and even when properly understood reveal nothing much more than the many contradictions that keep such countries in a social and economic trap of poverty and violence. Egypt seems to fit the latter mold.

Nonetheless, I think it can be useful and justified for Western commentators to speak about events there, even if they know neither the country nor the language very well. There are several reasons for this. The first is owing to the political conclusions drawn by the various progressive forces in the West from events abroad, which makes the struggle over how to interpret these events also a struggle over the political outlook locally. Such arguments by proxy are, as I have argued before, often inherently questionable and misleading, but they are frequent. Secondly, the internationalist and cosmopolitan viewpoint that the current age demands and solidarity with people abroad requires a lively interest in their affairs, including in assessing the successes and mistakes of the progressive movements and parties of the places in question – but without thereby implying that some recipe for success exists in this or that office in London or Chicago. Such certainties are exactly the domain of the world improving free traders in the international economic organizations, and their all-knowing charity has done immeasurable harm. Rather, our perspective should be to see what the events and politics abroad look like to us, and what we can learn from them rather than to telling people far away what to do. But of course any intellectual independence also requires the courage to identify and comment on a mistake when one sees one, even if it is just to unleash a discussion on strategy. Due to its relation to ongoing events, such a strategic discussion can be infinitely more fruitful than overly abstract and general chatter about ‘workers’ parties’, ‘united fronts’ and so forth. But this, too, requires to obtain as much knowledge as possible for an outsider about the place in question, and a critical sifting of the writings and actions of the people on the ground. Read the rest of this entry »

June 18, 2013

The Spirit of ’45?

Posted in Class Struggle, Communism, History, Politics, Social-Democracy, United Kingdom tagged , , , , , at 22:15 by Matthijs Krul

Leftwing filmmaker Ken Loach has launched a movie and corresponding campaign in the UK called “Spirit of ’45″. Already avidly promoted by the usual union and Labour left figures, the purpose of the movie is to have working people speak on behalf of the social-democratic achievements of the 1945 Labour government, and what these meant for them. This was the government that radically expanded and restructured the British social system, transforming it from a country of austerity conservatism into one of the main bulwarks of social-democracy – the pinnacle of course being the introduction of a healthcare system wholly free at the point of use, unprecedented then as it indeed still is now. Many left-leaning British people understandably have a certain pride in these accomplishments, and the Labour Party has been coasting on them in its claims to working class loyalty for practically all of the postwar period (“party of the NHS”). The purpose of the corresponding campaign is to revive this sense of pride and loyalty towards social-democracy, presumably in the hope that this will strengthen popular resistance against the attempts by the current conservative-liberal coalition to privatize swathes of the NHS, reduce or abolish elements of the ‘welfare state’, and generally to force market exchange where there was redistribution.

As a purely defensive campaign to mobilize for genuine reforms away from the basis of capitalist social relations, that is the mediation between working people through ‘free’ markets, and in favor of some manner of organized and collective solidarity, this is fair enough. Yet the spirit of ’45 is a ghost which, once conjured up, may turn out to do more than haunt the conscience of the coalition. The spirit of ’45 is first and foremost the spirit of nostalgia, a nostalgia for an idealized past of Labour governments and miners in caps speaking at union rallies. This makes it, as many of the commentators on the right promptly pointed out, little more than an extended political broadcast for the Labour Party. And this shows its limitations: not only would the Labour Party of Ed Miliband probably unrecognizable to the members of Attlee’s cabinet, but anyone whose political horizon is wider than that of Labour has little reason to be enthused by this. Read the rest of this entry »

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