In the context of the current crisis, with ‘quantitative easing’ to the tune of hundreds of billions of dollars on the one hand and the rush to liquidity that accompanies financial crises on the other, it may be useful to take a look at how Marx’s economic theory relate to issues of money and monetary policy. The aim here is to provide a clear and understandable overview of what Marx’s theory of money was, how it relates to our current-day monetary system internationally, and how this relates to his value analysis generally. I will not aim to say anything particularly new or original, nor go into everything in the depth it really deserves, but I will limit myself to providing a general popular overview, as much as the rather abstract nature of the subject allows. Continue reading “Marx and Monetary Theory”
Tag: Marxism
Bolivian Prospects
The Movimiento Al Socialismo (MAS) of the reigning President of Bolivia, Evo Morales, has won the regional elections held on April 9th of this year.(1) Morales is the first elected President of Bolivia to be fully Native American, despite the great majority of the Bolivian population being Aymará or Quechua. For most of its history, the country has been governed by a swift succession of military dictators, vassal oligarchs of the United States and assorted strongmen. Universal suffrage was only introduced in 1951 by the reformist MNR party, which was subsequently overthrown by a series of juntas.
Much of the conflict has revolved around the main economic products of Bolivia: its enormous tin mines (it is the world’s largest tin producer) and the coca leaves grown as export crop by the country’s many poor farmers, which forms the basis for the drug cocaine. Continue reading “Bolivian Prospects”
Two Minor Notes on Job Creation and Atheist Policy
The mirage of ‘creating jobs’
In this time of crisis, unemployment is once again high on the public’s agenda. In the United States, even official unemployment has reached figures as high as 10%, and in many Western European countries things are not much better. Hundreds of billions in public debt have been piled up to combat this, because every politician knows that their continuance in office depends first and foremost on satisfying the constituents’ demands, and what they demand is jobs. But here as always the limits of the liberal understanding of the world show themselves immediately, namely in the way they go about defending their employment policies. Everywhere in the Western states the emphasis is on the process of ‘job creation’ by the capitalist market system. Everywhere the one criterion for a measure or bill is whether it will or will not make the market ‘create jobs’.
A recent article in Time magazine illustrates the issue quite well. Continue reading “Two Minor Notes on Job Creation and Atheist Policy”
Marx, Engels, and the American Civil War – II
We finished the last section of our discussion of Marx, Engels, and the American Civil War with their joint article on the state of the war and its prospects in March 1862, in which they remarkably accurately analyzed and predicted the course the war would follow for it to result in Union success. The Confederacy in the meantime was resorting to much more severe measures against ‘liberty’ than it would ever have accepted of a Union government, and which led to much dissension: first, the introduction of the first ever draft in the Americas in April 1862, and subsequently a severe tax on agricultural produce, which was enforced by a suspension of habeas corpus. Those people who accuse Lincoln of dictatorial tendencies in his repression of the pro-Southern dissenters in Maryland are well advised to take this into account. The Confederacy also increased its bureaucracy beyond any foreseen proportions to some 70.000, more than the Union and vastly more than ever before. This was mere necessity to have a chance at full mobilization and achieving the war aims.(1) The Union eventually also introduced conscription of sorts, and what’s more, its industrial expansion was aided greatly by the war, while inflation destroyed real wages, leading to much worker resistance. This would combine with fear of labor competition to form some virulent anti-war sentiment in places like New York City, but we shall see more about this later. Continue reading “Marx, Engels, and the American Civil War – II”
Marx, Engels, and the American Civil War – I
Given the reputation of America today as a bulwark of reaction and imperialism, it may surprise many to know that Marx and Engels were great supporters of the United States in their own day. For them, the United States was not a great power opposed to the interests of the various peoples worldwide as today, but it represented capitalism in its most pure and its most historically progressive form. America did not have any feudal history or any aristocratic remnants, and as such was the clearest and most energetic example of capitalism’s powers. Moreover, the colonization of the Americas in the first place was the genesis of the capitalist mode of production, by launching Europe beyond its feudal confines. As Engels put it in a lecture for the London German Workers’ Educational Society as early as 1847 (that is, before they became ‘Marxists’ proper):
Citizens! When Christopher Columbus discovered America 350 years ago, he certainly did not think that not only would the then existing society in Europe together with its institutions be done away with through his discovery, but that the foundation would be laid for the complete liberation of all nations; and yet, it becomes more and more clear that this is indeed the case. Through the discovery of America a new route by sea to the East Indies was found, whereby the European business traffic of the time was completely transformed; the consequence was that Italian and German commerce were totally ruined and other countries came to the fore; commerce came into the hands of the western countries, and England thus came to the fore of the movement. Before the discovery of America the countries even in Europe were still very much separated from one another and trade was on the whole slight. Only after the new route to the East Indies had been found and an extensive field had been opened in America for exploitation by the Europeans engaged in commerce, did. England begin more and more to concentrate trade and to take possession of it, whereby the other European countries were more and more compelled to join together. From all this, big commerce originated, and the so-called world market was opened. The enormous treasures which the Europeans brought from America, and the gains which trade in general yielded, had as a consequence the ruin of the old aristocracy, and so the bourgeoisie came into being. The discovery of America was connected with the advent of machinery, and with that the struggle became necessary which we are conducting today, the struggle of the propertyless against the property owners. (…) Thus, through the discovery of America all society has been divided into two classes, and without the rise of the world market this would not have happened. The workers of the whole world have everywhere the same interests; everywhere the different classes disappear and the different interests coincide. When, therefore, a revolution breaks out in one country it must necessarily affect the other countries, and only now can real liberation take place.
(1) Continue reading “Marx, Engels, and the American Civil War – I”