All over the world,
community
in the broader sense--the Gemeinschaft with its organic social relationships and strong recip- rocal bonds of commonality and kinship--is forcibly transformed by global capital into commercialized, atomized, mass-market soci- eties.
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in one hour. There is practically no more free medical care, accessi- ble higher education, no right to a job or rest. The houses of culture, libraries, stadiums, kindergartens and nurseries, pioneer camps, schools, hospitals and stores are closing. The cost of housing, com- munal services and transport are no longer affordable for the major- ity of families" (Peoples Weekly World, 4/6/96).
Facing forced privatization, news and entertainment media have had to find rich owners, corporate advertisers, conservative founda- tions, or agencies within the newly installed capitalist governments to finance them. Television and radio programs that had a left per- spective, including some popular youth shows, have been removed from the air. All media have been purged of leftists and restaffed by people with acceptable ideological orientations. This process of moving toward a procapitalist communication monopoly has been described in the Western media as "democratization. " Billboards and television commercials promoting U. S. cigarettes, automobiles, and other consumer items--many of them beyond the average pocket- book-- now can be seen everywhere.
Women and Children Last
The overthrow of communism has brought a sharp increase in gender inequality. The new constitution adopted in Russia eliminates provisions that guaranteed women the right to paid maternity leave, job security during pregnancy, prenatal care, and affordable day-care centers. 5 Without the former communist stipulation that women get at least one third of the seats in any legislature, female political rep- resentation has dropped to as low as 5 percent in some countries.
In all communist countries about 90 percent of women had jobs in what was a full-employment economy. Today, women compose
s Under Soviet law, women had been granted four months off with full pay for childbirth, and a year of partial pay if they elected to stay home with the child. In addition, they were allowed up to three years leave with a guarantee that their jobs would be held for them.
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over two-thirds of the unemployed. Those who do work are being channeled into low-pay unskilled positions. Women are being driven from the professions in disproportionate numbers and are advised against getting professional training. More than 30 percent of unem- ployed females are skilled workers and professionals who previously earned higher salaries than the national norm. The loss of maternity benefits and child care services has created still greater obstacles to female employment.
Throughout the Eastern European nations, the legal, financial, and psychological independence that women enjoyed under socialism has been undermined. Divorce, abortion, and birth control are more dif- ficult to obtain. Released from the "Soviet yoke," the autonomous region of Ingushetia decriminalized polygamy and made it legal for women to be sold into marriage. Instances of sexual harassment and violence against women have increased sharply. In Russia, the num- ber of women murdered annually--primarily by husbands and boyfriends--skyrocketed from 5,300 to 15,000 in the first three years of the free-market paradise. In 1994, an additional 57,000 women were seriously injured in such assaults. These official figures under- state the level of violence. The Communist party committees that used to intervene in cases of domestic abuse no longer exist.
Women also are being recruited in unprecedented numbers for the booming sex industry that caters to foreign and domestic busi- nessmen. Unable to find employment in the professions for which they originally were trained, many highly educated Russian and Eastern European women go abroad to work as prostitutes. Women are not the only ones being channeled into the sex market. As reported in Newsweek (9/2/96):
Prague and Budapest now rival Bangkok and Manila as hubs for the collection of children to serve visiting pedophiles. Last year one investigator was stunned to find stacks of child pornography in the reception rooms of Estonia'a Parliament and its social welfare depart- ment. "Free love is regarded as one of the new 'freedoms' which the
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market economy can offer," she wrote. "Simultaneously, sex in the market economy has also become a profitable commodity" In some cases "children are kidnapped and held like slaves," says [Thomas] Kattau [a specialist with the Council of Europe]. "This is happening more and more. It is organized crime "
Life conditions for children have deteriorated greatly throughout the ex-communist world. Free summer camps have been closed down. School lunches, once free or low-priced, are now too costly for many pupils. Hungry children constitute a serious school problem. Instead of attending classes, chidren can be found hawking drinks or begging in the streets. Juvenile crime is booming along with juvenile prostitution, while funds for youth rehabilitation services dwindle (Los Angeles Times, 7/15/94).
"We Didn't Realize What We Had"
While many Eastern European intellectuals remain fervent cham- pions of the free-market paradise, most workers and peasants no longer romanticize capitalism, having felt its unforgiving lash. "We didn't realize what we had" has become a common refrain. "The lat- est public opinion surveys show that many Russians consider Brezhnev's era and even Stalin's era to have been better than the pre- sent-day period, at least as far as economic conditions and personal safety are concerned" (New York Times, 10/15/95). A joke circulating in Russia in 1992 went like this: Q. What did capitalism accomplish in one year that communism could not do in seventy years? A. Make communism look good.
Throughout Eastern Europe and the former USSR, many people grudgingly admitted that conditions were better under communism (New York Times, 3/30/95). Pro-capitalist Angela Stent, of George- town University, allows that "most people are worse off than they were under Communism . . . . The quality of life has deteriorated with the spread of crime and the disappearance of the social safety
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net" (New York Times, 12/20/93). An East German steelworker is quoted as saying "I do not know if there is a future for me, and I'm not too hopeful The fact is, I lived better under Communism" (New York Times, 3/3/91). An elderly Polish woman, reduced to one Red Cross meal a day: "Im not Red but I have to say life for poor people was better before. . . . Now things are good for businessmen but not for us poor" (New York Times, 3/17/91). One East German woman commented that the West German womens movement was only beginning to fight for "what we already had here. . . . We took it for granted because of the socialist system. Now we realize what we [lost]" (Los Angeles Times, 8/6/91).
Anticommunist dissidents who labored hard to overthrow the GDR were soon voicing their disappointments about German reuni- fication. One noted Lutheran clergyman commented: "We fell into the tyranny of money. The way wealth is distributed in this society [capitalist Germany] is something I find very hard to take. " Another Lutheran pastor said: "We East Germans had no real picture of what life was like in the West. We had no idea how competitive it would be. . . . Unabashed greed and economic power are the levers that move this society. The spiritual values that are essential to human happiness are being lost or made to seem trivial. Everything is buy, earn, sell" (New York Times, 5/26/96).
Maureen Orth asked the first woman she met in a market if her life had changed in the last two years and the woman burst into tears. She was 58 years old, had worked forty years in a potato factory and now could not afford most of the foods in the market: "It's not life, it's just existence," she said ( Vanity Fair; 9/94). Orth interviewed the chief of a hospital department in Moscow who said: "Life was differ- ent two years ago--I was a human being. " Now he had to chauffeur people around for extra income. What about the new freedoms? "Freedom for what? " he responded. "Freedom to buy a porno- graphic magazine? "
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In a similar vein, former GDR defense minister Heinz Kessler commented: "Sure, I hear about the new freedom that people are enjoying in Eastern Europe. But how do you define freedom? Millions of people in Eastern Europe are now free from employment, free from safe streets, free from health care, free from social security" (New YorkTimes. ,7/20/96).
Do people in the East want the free market? Opinion polls taken in late 1993 in Russia showed only 27 percent of all respondents sup- ported a market economy. By large majorities, people believed that state control over prices and over private business is "useful," and that "the state should provide everyone with a job and never tolerate unem- ployment. " In Poland, 92 percent wanted to keep the state welfare sys- tem, and lopsided majorities wanted to retain subsidized housing and foods and return to full employment (Monthly Review, 12/94). "Most people here," reports a New York Times Moscow correspondent (6/23/96), "are suspicious of private property, wonder what was so bad about a system that supplied health care at low cost from birth to death, and hope that prices are once again reined in by the government "
One report from Russia describes "a bitter electorate, which has found life under a democrat [meaning Yeltsin! ] worse than under the now-departed Communists" (New York Times, 12/18/91). A report from Warsaw refers to the "free-market economic transformation that most Poles no longer support" (Washington Post, 12/15/91). People's biggest fears are inflation, unemployment, crime, and pollution.
State socialism, "the system that did not work," provided everyone with some measure of security. Free-market capitalism, "the system that works," brought a free-falling economy, financial plunder, dete- riorating social conditions, and mass suffering.
In reaction, Eastern European voters have been returning Communists to office--to preside over the ruin and wreckage of broken nations. By 1996, former Communists and their allies had won significant victories in Russia, Bulgaria, Poland, Hungary, Lithuania, and Estonia, sometimes emerging as the strongest blocs in
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their respective parliaments. This was achieved in the face of the same intimidations, police harassments, monetary disadvantages, restrictive ballot access, media shutout, and fraudulent vote counts that confront leftist parties in most "democratic capitalist" countries.
When the first anticommunist upheavals began in Eastern Europe in 1989, there were those on the Left who said that if the people in those countries discovered that they didn't like the free-market sys- tem they could always return to some variant of socialism. As I argued at the time, this was hardly a realistic view. Capitalism is not
just an economic system but an entire social order. Once it takes hold, it is not voted out of existence by electing socialists or commu- nists. They may occupy office but the wealth of the nation, the basic property relations, organic law, financial system, and debt structure, along with the national media, police power, and state institutions, have all been fundamentally restructured. The resources needed for social programs and full employment have been pilfered or com- pletely obliterated, as have monetary reserves, markets, and natural resources. A few years of untrammeled free-market marauding has left these nations at the point of no foreseeable return.
The belief propagated by the free-market "reformers" is that the transition from socialism to capitalism can only be made through a vast private accumulation of capital. The hardship inflicted by such privatization supposedly is only temporary. The truth is, nations get stuck in that "temporary" stage for centuries. One need only look at Latin America.
Like other Third World nations, the former communist countries are likely to remain in poverty indefinitely, so that a privileged few may continue to enjoy greater and greater opulence at the expense of the many. To secure that arrangement, the corporate class will resort to every known manipulation and repression against democratic resurgence. In these endeavors they will have the expert assistance of international capital, the CIA, and other agencies of state capitalist domination.
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According to Noam Chomsky, communism "was a monstrosity" and "the collapse of tyranny" in Eastern Europe and Russia is "an occasion for rejoicing for anyone who values freedom and human dignity"61 treasure freedom and human dignity yet find no occasion for rejoicing. The postcommunist societies do not represent a net gain for such values. If anything, the breakup of the communist states has brought a colossal victory for global capitalism and impe- rialism, with its correlative increase in human misery, and a historic setback for revolutionary liberation struggles everywhere. There will be harder times ahead even for modestly reformist nationalist gov- ernments, as the fate of Panama and Iraq have indicated. The breakup also means a net loss of global pluralism and a more inten- sive socio-economic inequality throughout the world. 7
The peoples of Eastern Europe believed they were going to keep all the social gains they had enjoyed under communism while adding on all the consumerism of the West. Many of their grievances about existing socialism were justified but their romanticized image of the capitalist West was not. They had to learn the hard way. Expecting to advance from Second World to First World status, they have been rammed down into the Third World, ending up like capitalist Indonesia, Mexico, Zaire, and Turkey. They wanted it all and have been left with almost nothing.
6 Noam Chomsky, Powers and Prospects (Boston: South End Press, 1996), 83.
7 The overthrow of communism, however, does not mean the end of the U. S. global
military machine. Quite the contrary, huge sums continue to be spent, and new weapons systems and high-tech methods of killing continue to be developed in order that a tight grip be kept on the world by those who own it.
? CHAPTER 8
THE END OF MARXISM?
Some people say Marxism is a science and others say it is a dogma, a bundle of reductionist unscientific claims. I would suggest that Marxism is not a science in the positivist sense, formulating hypotheses and testing for predictability, but more accurately a social science, one that shows us how to conceptualize systematically and systemically, moving from surface appearances to deeper, broader features, so better to understand both the specific and the general, and the relationship between the two.
Marxism has an explanatory power that is superior to mainstream bourgeois social science because it deals with the imperatives of class power and political economy, the motor forces of society and history. The class basis of political economy is not a subject for which main- stream social science has much understanding or tolerance. 1 In 1915, Lenin wrote that "[bourgeois] science will not even hear of Marxism, declaring that it has been refuted and annihilated. Marx is attacked
1 This aversion to recognizing the realities of class power exists even among many who consider themselves to be on the Left; see the discussion on the Anything- But-Class theorists in the next chapter.
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with equal zest by young scholars who are making a career by refut- ing socialism, and by decrepit elders who are preserving the tradition of all kinds of outworn systems"
Over eighty years later, the careerist scholars are still declaring Marxism to have been proven wrong once and for all. As the anti- communist liberal writer, Irving Howe, put it: "The simplistic for- mulae of textbooks, including the Marxist ones, no longer hold. That is why some of us . . . don't regard ourselves as Marxists" (Newsday, 4/21/86). Here I want to argue that Marxism is not outmoded or sim- plistic, only the image of it entertained by anti-Marxists like Howe.
Some Durable Basics
With the overthrow of communist governments in Eastern
Europe and the Soviet Union, announcements about the moribund nature of "Marxist dogma" poured forth with renewed vigor. But Marx s major work was Capital, a study not of "existing socialism," which actually did not exist in his day, but of capitalism--a subject that remains terribly relevant to our lives. It would make more sense to declare Marxism obsolete if and when capitalism is abolished, rather than socialism. I wish to argue not merely that Marx is still rel- evant but that he is more relevant today than he was in the nine- teenth century, that the forces of capitalist motion and development are operating with greater scope than when he first studied them.
This is not to say that everything Marx and Engels anticipated has come true. Their work was not a perfect prophecy but an imperfect, incomplete science (like all sciences), directed toward understanding a capitalism that leaves its bloody footprints upon the world as never before. Some of Marxisms basic postulates are as follows:
In order to live, human beings must produce. People cannot live by bread alone but neither can they live without bread. This does not mean all human activity can be reduced to material motives but that all activity is linked to a material base. A work of art may have no
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direct economic motive attached to it, yet its creation would be impossible if there did not exist the material conditions that allowed the artist to create and show the work to interested audiences who have the time for art.
What people need for survival is found in nature but rarely in a form suitable for immediate consumption. Labor therefore becomes a primary condition of human existence. But labor is more than a way of providing for survival. It is one of the means whereby people develop their material and cultural life, acquiring knowledge, and new modes of social organization. The conflicting class interests that evolve around the productive forces shape the development of a social system. When we speak of early horticultural societies, or of slave or feudal or mercantile or industrial capitalist societies, we are recognizing how the basic economic relations leave a defining stamp on a given social order.
Capitalist theorists present capital as a creative providential force. As they would have it, capital gives shape and opportunity to labor; capital creates production, jobs, new technologies, and a general prosperity. Marxists turn the equation around. They argue that, of itself, capital cannot produce anything; it is the thing that is pro- duced by labor. Only human labor can create the farm and the fac- tory, the machine and the computer. And in a class society, the wealth so produced by many is accumulated in the hands of relatively few who soon translate their economic power into political and cul- tural power in order to better secure the exploitative social order that so favors them.
The standard "trickle down" theory says that the accumulation of wealth at the top eventually brings more prosperity to the rest of us below; a rising tide lifts all boats. I would argue that in a class soci- ety the accumulation of wealth fosters the spread of poverty The wealthy few live off the backs of the impoverished many. There can be no rich slaveholders living in idle comfort without a mass of pen- niless slaves to support their luxurious life style, no lords of the
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manor who live in opulence without a mass of impoverished landless serfs who till the lords' lands from dawn to dusk. So too under cap- italism, there can be no financial moguls and industrial tycoons without millions of underpaid and overworked employees.
Exploitation can be measured not only in paltry wages, but in the disparity between the wealth created by the worker and the pay she or he receives. Thus some professional athletes receive dramatically higher salaries than most people, but compared to the enormous wealth they produce for their owners, and taking into account the rigors and relative brevity of their careers, the injuries sustained, and the lack of life-long benefits, it can be said they are exploited at a far higher rate than most workers.
Conservative ideologues defend capitalism as the system that pre- serves culture, traditional values, the family, and community. Marxists would respond that capitalism has done more to under- mine such things than any other system in history, given its wars, col- onizations, and forced migrations, its enclosures, evictions, poverty wages, child labor, homelessness, underemployment, crime, drug infestation, and urban squalor.
All over the world, community in the broader sense--the Gemeinschaft with its organic social relationships and strong recip- rocal bonds of commonality and kinship--is forcibly transformed by global capital into commercialized, atomized, mass-market soci- eties. In the Communist Manifesto, Marx and Engels referred to cap- italisms implacable drive to settle "over the whole surface of the globe," creating "a world after its own image. " No system in history has been more relentless in battering down ancient and fragile cul- tures, pulverizing centuries-old practices in a matter of years, devouring the resources of whole regions, and standardizing the varieties of human experience.
Big Capital has no commitment to anything but capital accumu- lation, no loyalty to any nation, culture, or people. It moves inex- orably according to its inner imperative to accumulate at the highest
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possible rate without concern for human and environmental costs. The first law of the market is to make the largest possible profit from other people s labor. Private profitability rather than human need is the determining condition of private investment. There prevails a rational systematization of human endeavor in pursuit of a socially irrational end: "accumulate, accumulate, accumulate. "
More Right than Wrong
Those who reject Marx frequently contend that his predictions about proletariat revolution have proven wrong. From this, they conclude that his analysis of the nature of capitalism and imperial- ism must also be wrong. But we should distinguish between Marx the chiliastic thinker, who made grandly optimistic predictions about the flowering of the human condition, and Marx the econo- mist and social scientist, who provided us with fundamental insights into capitalist society that have held painfully true to the present day. The latter Marx has been regularly misrepresented by anti-Marxist writers. Consider the following predictions:
Business Cycles and the Tendency toward Recession. Marx noted that something more than greed is involved in the capitalist s relent- less pursuit of profit. Given the pressures of competition and rising wages, capitalists must make technological innovations to increase their productivity and diminish their labor costs. This creates prob- lems of its own. The more capital goods (such as machinery, plants, technologies, fuels) needed for production, the higher the fixed costs and the greater the pressure to increase productivity to maintain profit margins. 2
2 As an industry becomes more capital intensive, proportionately more money must be invested to generate a given number of jobs. But business is not dedicated to creating jobs. In fact, capitalists are constantly devising ways to downsize the workforce. From 1980 to 1990, the net number of jobs created by the biggest corporations in the United States, the "Fortune 500," was zero. The new jobs of that period came mostly from less capital-intensive smaller firms, light industry, service industry, and the public sector.
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Since workers are not paid enough to buy back the goods and ser- vices they produce, Marx noted, there is always the problem of a dis- parity between mass production and aggregate demand. If demand slackens, owners cut back on production and investment. Even when there is ample demand, they are tempted to downsize the workforce and intensify the rate of exploitation of the remaining employees, seizing any opportunity to reduce benefits and wages. The ensuing drop in the workforce s buying power leads to a further decline in demand and to business recessions that inflict the greatest pain on those with the least assets.
Marx foresaw this tendency for profits to fall and for protracted recessions and economic instability. As the economist Robert Heilbroner noted, this was an extraordinary prediction, for in Marx's day economists did not recognize boom-and-bust business cycles as inherent to the capitalist system. But today we know that recessions are a chronic condition and--as Marx also predicted--they have become international in scope.
Capital Concentration. When the Communist Manifesto first appeared in 1848, bigness was the exception rather than the norm. Yet Marx predicted that large firms would force out or buy up smaller adversaries and increasingly dominate the business world, as capital became more concentrated. This was not the accepted wis- dom of that day and must have sounded improbable to those who gave it any attention. But it has come to pass. Indeed, the rate of mergers and take-overs has been higher in the 1980s and 1990s than at any other time in the history of capitalism.
Growth of the Proletariat Another of Marxs predictions is that the proletariat (workers who have no tools of their own and must work for wages or salaries, selling their labor to someone else) would become an ever-greater percentage of the work force. In 1820 about 75 percent of Americans worked for themselves on farms or in small businesses and artisan crafts. By 1940 that number had dropped to 21. 6 percent. Today, less than 10 percent of the labor force is self-employed.
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The same shift in the work force can be observed in the Third World. From 1970 to 1980 the number of wage workers in Asia and Africa increased by almost two-thirds, from 72 million to 120 mil- lion. The tendency is toward the steady growth of the working class, both industrial and service workers, and--as Marx predicted--this is happening globally, in every land upon which capitalism descends.
Proletarian Revolution. As capitalism develops so will the prole- tariat, Marx predicted. We have seen that to be true. But he went fur- ther: With the growing misery and polarization, the masses would eventually rise up and overthrow the bourgeoisie and put the means of production under public ownership for the benefit of all. The rev- olution would come in the more industrialized capitalist countries that had large, developed working classes.
What struck Marx about the working class was its level of organi- zation and consciousness. Unlike previously oppressed classes, the proletariat, heavily concentrated in urban areas, seemed capable of an unparalleled level of political development. It would not only rebel against its oppressors as had slaves and serfs but would create an egalitarian, nonexploitative social order as never before seen in history. In his day Marx saw an alternative system emerging in the clubs, mutual aid societies, political organizations, and newspapers of a rapidly growing British working class. For the first time, history would be made by the masses in a conscious way, a class for itself. Sporadic rebellion would be replaced by class-conscious revolution. Instead of burning down the manor, the workers would expropriate it and put it to use for the collective benefit of the common people, the ones who built it in the first place.
Certainly Marx s predictions about revolution have not material- ized. There has been no successful proletariat revolution in an advanced capitalist society. As the working class developed so did the capitalist state, whose function has been to protect the capitalist class, with its mechanisms of police suppression and its informa- tional and cultural hegemony.
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Of itself, class struggle does not bring inevitable proletarian vic- tory or even a proletarian uprising. Oppressive social conditions may cry out for revolution, but that does not mean revolution is forth- coming. This point is still not understood by some present-day left- ists. In his later years, Marx himself began to entertain doubts about the inevitability of a victorious workers revolution. So far, the pre-
vailing force has not been revolution but counterrevolution, the dev- ilish destruction wreaked by capitalist states upon popular struggles, at a cost of millions of lives.
Marx also underestimated the extent to which the advanced capi- talist state could use its wealth and power to create a variety of insti- tutions that retard and distract popular consciousness or blunt discontent through reform programs. Contrary to his expectations, successful revolutions occurred in less developed, largely peasant societies such as Russia, China, Cuba, Vietnam--though the prole- tariats in those countries participated and sometimes, as in the case of Russia in 1917, even spearheaded the insurgency
Although Marxs predictions about revolution have not material- ized as he envisioned, in recent years there have been impressive instances of working-class militancy in South Korea, South Africa, Argentina, Italy, France, Germany, Great Britain, and dozens of other countries, including even the United States. Such mass struggles usu- ally go unreported in the corporate media. In 1984-85, in Great Britain, a bitter, year-long strike resulted in some 10,500 coal miners being arrested, 6,500 injured or battered, and eleven killed. For the British miners locked in that conflict, class struggle was something more than a quaint, obsolete concept.
So in other countries. In Nicaragua, a mass uprising brought down the hated Somoza dictatorship. In Brazil, in 1980-83, as Peter Worsley observes, "the Brazilian working class . . . has played pre- cisely the role assigned to it in 19th century Marxist theory, paralyz- ing Sao Paulo in a succession of enormous mass strikes that began over bread-and-butter issues but which in the end forced the military
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to make major political concessions, notably the restoration of a measure of authentic party-political life " Revolutions are relatively rare occurrences but popular struggle is a widespread and constant phenomenon.
More Wealth, More Poverty
Marx believed that as wealth becomes more concentrated, poverty will become more widespread and the plight of working people ever- more desperate. According to his critics, this prediction has proven wrong. They point out that he wrote during a time of raw industri- alism, an era of robber barons and the fourteen-hour work day. Through persistent struggle, the working class improved its life con- ditions from the mid-nineteenth to the mid-twentieth centuries. Today, mainstream spokespersons portray the United States as a prosperous middle-class society.
Yet one might wonder. During the Reagan-Bush-Clinton era, from 1981 to 1996, the share of the national income that went to those who work for a living shrank by over 12 percent. The share that went to those who live off investments increased almost 35 percent. Less than 1 percent of the population owns almost 50 percent of the nation s wealth. The richest families are hundreds of times wealthier than the average household in the lower 90 percent of the popula- tion. The gap between Americas rich and poor is greater than it has been in more than half a century and is getting ever-greater. Thus, between 1977 and 1989, the top 1 percent saw their earnings grow by over 100 percent, while the three lowest quintiles averaged a 3 to 10 percent drop in real income. 3
The New York Times (6/20/96) reported that income disparity in 1995 "was wider than it has been since the end of World War II. " The average income for the top 20 percent jumped 44 percent, from $73,754 to $105,945, between 1968 and 1994, while the bottom 20
3 Paul Krugman, Peddling Prosperity (New York: W. W. Norton: 1994), 134-35.
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percent had a 7 percent increase from $7>202 to $7,762, or only $560 in constant dollars. But these figures understate the problem. The Times story is based on a Census Bureau study that fails to report the income of the very rich. For years the reportable upper limit was $300,000 yearly income. In 1994, the bureau lifted the allowable limit to $1 million. This still leaves out the richest one percent, the hun- dreds of billionaires and thousands of multimillionaires who make many times more than $1 million a year. The really big money is concentrated in a portion of the population so minuscule as to be judged statistically insignificant. But despite their tiny numbers, the amount of wealth they control is enormous and bespeaks an income disparity a thousand times greater than the spread allowed by the Census Bureau figures. Thus, the difference between a multibil- lionare who might make $100 million in any one year and a janitor who makes $8,000 is not 14 to 1 (the usually reported spread between highest and lowest) but over 14,000 to 1. Yet the highest incomes remain unreported and uncounted. In a word, most studies of this
sort give us no idea of how rich the very rich really are. 4
The number living below the poverty level in the United States climbed from 24 million in 1977 to over 35 million by 1995. People were falling more deeply into poverty than in earlier times and find- ing it increasingly difficult to emerge from it. In addition, various
diseases related to hunger and poverty have been on the rise. 5
4 When asked why this procedure was used, a Census Bureau official told my research assistant that the bureaus computers could not handle higher amounts. This excuse seems most improbable, since once the Census Bureau decided to raise the upper limit, it did so without any difficulty. Another reason he gave was confidentiality. Given place coordinates, someone with a very high income could be identified. In addition, high-income respondents understate their income. The interest and dividend earnings they report is only about 50 to 60 percent of actual investment returns. And since their actual numbers are so few, they are likely not to show up in a random sample of the entire nation. By designating the top 20 percent as the "richest " the Census Bureau is lumping in upper-middle profes- sionals and other people who make as little as $70,000 or so, people who are anything but the "richest "
5 For more extensive data, see my essay "Hidden Holocaust, USA," in Michael Parenti, Dirty Truths (San Francisco: City Lights Books, 1996).
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There has been a general downgrading of the work force. Regular employment is being replaced by contracted labor or temporary help, resulting in lower wages with fewer or no benefits. Many unions have been destroyed or seriously weakened. Protective gov- ernment regulations are being rolled back or left unenforced, and there has been an increase in speedups, injuries, and other workplace abuses.
By the 1990s the growing impoverishment of the middle and working classes, including small independent producers, was becoming evident in various countries. In twenty years, more than half the farmers in industrialized countries, some 22 million, were ruined. Meanwhile, as noted in the previous two chapters, free-mar- ket "reforms" have brought a dramatic increase in poverty, hunger, crime, and ill-health, along with the growth of large fortunes for the very few in the former communist countries.
The Third World has endured deepening impoverishment over the last half century. As foreign investment has increased, so has the misery of the common people who are driven from the land. Those who manage to find employment in the cities are forced to labor for subsistence wages. We might recall how enclosure acts of the late eighteenth century in England fenced off common lands and drove the peasantry into the industrial hell-holes of Manchester and London, transforming them into beggars or half-starved factory workers. Enclosure continues throughout the Third World, displac- ing tens of millions of people.
In countries like Argentina, Venezuela, and Peru, per capita income was lower in 1990 than it had been twenty years earlier. In Mexico, workers earned 50 percent less in 1995 than in 1980. One- third of Latin Americas population, some 130 million, live in utter destitution, while tens of millions more barely manage. In Brazil, the purchasing power of the lower-income brackets declined by 50 per- cent between 1940 and 1990 and at least half the population suffered varying degrees of malnutrition.
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In much of Africa, misery and hunger have assumed horrendous proportions. In Zaire, 80 percent of the people live in absolute penury. In Asia and Africa more than 40 percent of the population linger at the starvation level. Marx predicted that an expanding cap- italism would bring greater wealth for the few and growing misery for the many. That seems to be what is happening--and on a global scale.
A Holistic Science
Repeatedly dismissed as an obsolete "doctrine," Marxism retains a compelling contemporary quality, for it is less a body of fixed dicta and more a method of looking beyond immediate appearances to see the inner qualities and moving forces that shape social relations and much of history itself. As Marx noted: "All science would be super- fluous if outward appearances and the essence of things directly coincided. " Indeed, perhaps the reason so much of modern social science seems superfluous is because it settles for the tedious tracing of outward appearances.
To understand capitalism, one first has to strip away the appear- ances presented by its ideology. Unlike most bourgeois theorists, Marx realized that what capitalism claims to be and what it actually is are two different things. What is unique about capitalism is the systematic expropriation of labor for the sole purpose of accumula- tion. Capital annexes living labor in order to accumulate more capi- tal. The ultimate purpose of work is not to perform services for consumers or sustain life and society, but to make more and more money for the investor irrespective of the human and environmen- tal costs.
An essential point of Marxist analysis is that the social structure and class order prefigure our behavior in many ways. Capitalism moves into every area of work and community, harnessing all of social life to its pursuit of profit. It converts nature, labor, science,
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art, music, and medicine into commodities and commodities into capital. It transforms land into real estate, folk culture into mass cul- ture, and citizens into debt-ridden workers and consumers.
Marxists understand that a class society is not just a divided soci- ety but one ruled by class power, with the state playing the crucial role in maintaining the existing class structure. Marxism might be considered a "holistic" science in that it recognizes the links between various components of the social system. Capitalism is not just an economic system but a political and cultural one as well, an entire social order. When we study any part of that order, be it the news or entertainment media, criminal justice, Congress, defense spending, overseas military intervention, intelligence agencies, campaign finance, science and technology, education, medical care, taxation, transportation, housing, or whatever, we will see how the particular part reflects the nature of the whole. Its unique dynamic often buttresses and is shaped by the larger social system -- espe- cially the systems overriding need to maintain the prerogatives of the corporate class.
In keeping with their system-sustaining function, the major news media present reality as a scatter of events and subjects that ostensi- bly bear little relation to each other or to a larger set of social rela- tions. Consider a specific phenomenon like racism. Racism is presented as essentially a set of bad attitudes held by racists. There is little analysis of what makes it so functional for a class society. Instead, race and class are treated as mutually exclusive concepts in competition with each other. But those who have an understanding of class power know that as class contradictions deepen and come to the fore, racism becomes not less but more important as a factor in class conflict. In short, both race and class are likely to be crucial are- nas of struggle at the very same time.
Marxists further maintain that racism involves not just personal attitude but institutional structure and systemic power. They point out that racist organizations and sentiments are often propagated by
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well-financed reactionary forces seeking to divide the working pop- ulace against itself, fracturing it into antagonistic ethnic enclaves.
Marxists also point out that racism is used as a means of depress- ing wages by keeping a segment of the labor force vulnerable to super-exploitation. To see racism in the larger context of corporate society is to move from a liberal complaint to a radical analysis. Instead of thinking that racism is an irrational output of a basically rational and benign system, we should see it is a rational output of a basically irrational and unjust system. By "rational" I mean purpo- sive and functional in sustaining the system that nurtures it.
Lacking a holistic approach to society, conventional social science tends to compartmentalize social experience. So we are asked to ponder whether this or that phenomenon is cultural or economic or psychological, when usually it is a blend of all these things. Thus, an automobile is unmistakably an economic artifact but it also has a cultural and psychological component, and even an aesthetic dimen- sion. We need a greater sense of how analytically distinct phenomena are often empirically interrelated and may actually gather strength and definition from each other.
Marxists do not accept the prevalent view of institutions as just "being there" with all the natural innocence of mountains--espe- cially the more articulated formal institutions such as the church, army, police, military, university, media, medicine, and the like. Institutions are heavily shaped by class interests and class power. Far from being neutral and independent bastions, the major institutions of society are tied to the big business class. Corporate representatives exercise direct decision-making power through control of governing boards and directorships. Business elites usually control the budgets and the very property of various institutions, a control inscribed into law through corporate charters and enforced by the police powers of the state. Their power extends to the managers picked, the policies set, and the performances of employees.
If conventional social science has any one dedication, it is to ignore
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the linkages between social action and the systemic demands of capi- talism, avoiding any view of power in its class dimensions, and any view of class as a power relationship.
in one hour. There is practically no more free medical care, accessi- ble higher education, no right to a job or rest. The houses of culture, libraries, stadiums, kindergartens and nurseries, pioneer camps, schools, hospitals and stores are closing. The cost of housing, com- munal services and transport are no longer affordable for the major- ity of families" (Peoples Weekly World, 4/6/96).
Facing forced privatization, news and entertainment media have had to find rich owners, corporate advertisers, conservative founda- tions, or agencies within the newly installed capitalist governments to finance them. Television and radio programs that had a left per- spective, including some popular youth shows, have been removed from the air. All media have been purged of leftists and restaffed by people with acceptable ideological orientations. This process of moving toward a procapitalist communication monopoly has been described in the Western media as "democratization. " Billboards and television commercials promoting U. S. cigarettes, automobiles, and other consumer items--many of them beyond the average pocket- book-- now can be seen everywhere.
Women and Children Last
The overthrow of communism has brought a sharp increase in gender inequality. The new constitution adopted in Russia eliminates provisions that guaranteed women the right to paid maternity leave, job security during pregnancy, prenatal care, and affordable day-care centers. 5 Without the former communist stipulation that women get at least one third of the seats in any legislature, female political rep- resentation has dropped to as low as 5 percent in some countries.
In all communist countries about 90 percent of women had jobs in what was a full-employment economy. Today, women compose
s Under Soviet law, women had been granted four months off with full pay for childbirth, and a year of partial pay if they elected to stay home with the child. In addition, they were allowed up to three years leave with a guarantee that their jobs would be held for them.
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over two-thirds of the unemployed. Those who do work are being channeled into low-pay unskilled positions. Women are being driven from the professions in disproportionate numbers and are advised against getting professional training. More than 30 percent of unem- ployed females are skilled workers and professionals who previously earned higher salaries than the national norm. The loss of maternity benefits and child care services has created still greater obstacles to female employment.
Throughout the Eastern European nations, the legal, financial, and psychological independence that women enjoyed under socialism has been undermined. Divorce, abortion, and birth control are more dif- ficult to obtain. Released from the "Soviet yoke," the autonomous region of Ingushetia decriminalized polygamy and made it legal for women to be sold into marriage. Instances of sexual harassment and violence against women have increased sharply. In Russia, the num- ber of women murdered annually--primarily by husbands and boyfriends--skyrocketed from 5,300 to 15,000 in the first three years of the free-market paradise. In 1994, an additional 57,000 women were seriously injured in such assaults. These official figures under- state the level of violence. The Communist party committees that used to intervene in cases of domestic abuse no longer exist.
Women also are being recruited in unprecedented numbers for the booming sex industry that caters to foreign and domestic busi- nessmen. Unable to find employment in the professions for which they originally were trained, many highly educated Russian and Eastern European women go abroad to work as prostitutes. Women are not the only ones being channeled into the sex market. As reported in Newsweek (9/2/96):
Prague and Budapest now rival Bangkok and Manila as hubs for the collection of children to serve visiting pedophiles. Last year one investigator was stunned to find stacks of child pornography in the reception rooms of Estonia'a Parliament and its social welfare depart- ment. "Free love is regarded as one of the new 'freedoms' which the
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market economy can offer," she wrote. "Simultaneously, sex in the market economy has also become a profitable commodity" In some cases "children are kidnapped and held like slaves," says [Thomas] Kattau [a specialist with the Council of Europe]. "This is happening more and more. It is organized crime "
Life conditions for children have deteriorated greatly throughout the ex-communist world. Free summer camps have been closed down. School lunches, once free or low-priced, are now too costly for many pupils. Hungry children constitute a serious school problem. Instead of attending classes, chidren can be found hawking drinks or begging in the streets. Juvenile crime is booming along with juvenile prostitution, while funds for youth rehabilitation services dwindle (Los Angeles Times, 7/15/94).
"We Didn't Realize What We Had"
While many Eastern European intellectuals remain fervent cham- pions of the free-market paradise, most workers and peasants no longer romanticize capitalism, having felt its unforgiving lash. "We didn't realize what we had" has become a common refrain. "The lat- est public opinion surveys show that many Russians consider Brezhnev's era and even Stalin's era to have been better than the pre- sent-day period, at least as far as economic conditions and personal safety are concerned" (New York Times, 10/15/95). A joke circulating in Russia in 1992 went like this: Q. What did capitalism accomplish in one year that communism could not do in seventy years? A. Make communism look good.
Throughout Eastern Europe and the former USSR, many people grudgingly admitted that conditions were better under communism (New York Times, 3/30/95). Pro-capitalist Angela Stent, of George- town University, allows that "most people are worse off than they were under Communism . . . . The quality of life has deteriorated with the spread of crime and the disappearance of the social safety
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net" (New York Times, 12/20/93). An East German steelworker is quoted as saying "I do not know if there is a future for me, and I'm not too hopeful The fact is, I lived better under Communism" (New York Times, 3/3/91). An elderly Polish woman, reduced to one Red Cross meal a day: "Im not Red but I have to say life for poor people was better before. . . . Now things are good for businessmen but not for us poor" (New York Times, 3/17/91). One East German woman commented that the West German womens movement was only beginning to fight for "what we already had here. . . . We took it for granted because of the socialist system. Now we realize what we [lost]" (Los Angeles Times, 8/6/91).
Anticommunist dissidents who labored hard to overthrow the GDR were soon voicing their disappointments about German reuni- fication. One noted Lutheran clergyman commented: "We fell into the tyranny of money. The way wealth is distributed in this society [capitalist Germany] is something I find very hard to take. " Another Lutheran pastor said: "We East Germans had no real picture of what life was like in the West. We had no idea how competitive it would be. . . . Unabashed greed and economic power are the levers that move this society. The spiritual values that are essential to human happiness are being lost or made to seem trivial. Everything is buy, earn, sell" (New York Times, 5/26/96).
Maureen Orth asked the first woman she met in a market if her life had changed in the last two years and the woman burst into tears. She was 58 years old, had worked forty years in a potato factory and now could not afford most of the foods in the market: "It's not life, it's just existence," she said ( Vanity Fair; 9/94). Orth interviewed the chief of a hospital department in Moscow who said: "Life was differ- ent two years ago--I was a human being. " Now he had to chauffeur people around for extra income. What about the new freedoms? "Freedom for what? " he responded. "Freedom to buy a porno- graphic magazine? "
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In a similar vein, former GDR defense minister Heinz Kessler commented: "Sure, I hear about the new freedom that people are enjoying in Eastern Europe. But how do you define freedom? Millions of people in Eastern Europe are now free from employment, free from safe streets, free from health care, free from social security" (New YorkTimes. ,7/20/96).
Do people in the East want the free market? Opinion polls taken in late 1993 in Russia showed only 27 percent of all respondents sup- ported a market economy. By large majorities, people believed that state control over prices and over private business is "useful," and that "the state should provide everyone with a job and never tolerate unem- ployment. " In Poland, 92 percent wanted to keep the state welfare sys- tem, and lopsided majorities wanted to retain subsidized housing and foods and return to full employment (Monthly Review, 12/94). "Most people here," reports a New York Times Moscow correspondent (6/23/96), "are suspicious of private property, wonder what was so bad about a system that supplied health care at low cost from birth to death, and hope that prices are once again reined in by the government "
One report from Russia describes "a bitter electorate, which has found life under a democrat [meaning Yeltsin! ] worse than under the now-departed Communists" (New York Times, 12/18/91). A report from Warsaw refers to the "free-market economic transformation that most Poles no longer support" (Washington Post, 12/15/91). People's biggest fears are inflation, unemployment, crime, and pollution.
State socialism, "the system that did not work," provided everyone with some measure of security. Free-market capitalism, "the system that works," brought a free-falling economy, financial plunder, dete- riorating social conditions, and mass suffering.
In reaction, Eastern European voters have been returning Communists to office--to preside over the ruin and wreckage of broken nations. By 1996, former Communists and their allies had won significant victories in Russia, Bulgaria, Poland, Hungary, Lithuania, and Estonia, sometimes emerging as the strongest blocs in
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their respective parliaments. This was achieved in the face of the same intimidations, police harassments, monetary disadvantages, restrictive ballot access, media shutout, and fraudulent vote counts that confront leftist parties in most "democratic capitalist" countries.
When the first anticommunist upheavals began in Eastern Europe in 1989, there were those on the Left who said that if the people in those countries discovered that they didn't like the free-market sys- tem they could always return to some variant of socialism. As I argued at the time, this was hardly a realistic view. Capitalism is not
just an economic system but an entire social order. Once it takes hold, it is not voted out of existence by electing socialists or commu- nists. They may occupy office but the wealth of the nation, the basic property relations, organic law, financial system, and debt structure, along with the national media, police power, and state institutions, have all been fundamentally restructured. The resources needed for social programs and full employment have been pilfered or com- pletely obliterated, as have monetary reserves, markets, and natural resources. A few years of untrammeled free-market marauding has left these nations at the point of no foreseeable return.
The belief propagated by the free-market "reformers" is that the transition from socialism to capitalism can only be made through a vast private accumulation of capital. The hardship inflicted by such privatization supposedly is only temporary. The truth is, nations get stuck in that "temporary" stage for centuries. One need only look at Latin America.
Like other Third World nations, the former communist countries are likely to remain in poverty indefinitely, so that a privileged few may continue to enjoy greater and greater opulence at the expense of the many. To secure that arrangement, the corporate class will resort to every known manipulation and repression against democratic resurgence. In these endeavors they will have the expert assistance of international capital, the CIA, and other agencies of state capitalist domination.
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According to Noam Chomsky, communism "was a monstrosity" and "the collapse of tyranny" in Eastern Europe and Russia is "an occasion for rejoicing for anyone who values freedom and human dignity"61 treasure freedom and human dignity yet find no occasion for rejoicing. The postcommunist societies do not represent a net gain for such values. If anything, the breakup of the communist states has brought a colossal victory for global capitalism and impe- rialism, with its correlative increase in human misery, and a historic setback for revolutionary liberation struggles everywhere. There will be harder times ahead even for modestly reformist nationalist gov- ernments, as the fate of Panama and Iraq have indicated. The breakup also means a net loss of global pluralism and a more inten- sive socio-economic inequality throughout the world. 7
The peoples of Eastern Europe believed they were going to keep all the social gains they had enjoyed under communism while adding on all the consumerism of the West. Many of their grievances about existing socialism were justified but their romanticized image of the capitalist West was not. They had to learn the hard way. Expecting to advance from Second World to First World status, they have been rammed down into the Third World, ending up like capitalist Indonesia, Mexico, Zaire, and Turkey. They wanted it all and have been left with almost nothing.
6 Noam Chomsky, Powers and Prospects (Boston: South End Press, 1996), 83.
7 The overthrow of communism, however, does not mean the end of the U. S. global
military machine. Quite the contrary, huge sums continue to be spent, and new weapons systems and high-tech methods of killing continue to be developed in order that a tight grip be kept on the world by those who own it.
? CHAPTER 8
THE END OF MARXISM?
Some people say Marxism is a science and others say it is a dogma, a bundle of reductionist unscientific claims. I would suggest that Marxism is not a science in the positivist sense, formulating hypotheses and testing for predictability, but more accurately a social science, one that shows us how to conceptualize systematically and systemically, moving from surface appearances to deeper, broader features, so better to understand both the specific and the general, and the relationship between the two.
Marxism has an explanatory power that is superior to mainstream bourgeois social science because it deals with the imperatives of class power and political economy, the motor forces of society and history. The class basis of political economy is not a subject for which main- stream social science has much understanding or tolerance. 1 In 1915, Lenin wrote that "[bourgeois] science will not even hear of Marxism, declaring that it has been refuted and annihilated. Marx is attacked
1 This aversion to recognizing the realities of class power exists even among many who consider themselves to be on the Left; see the discussion on the Anything- But-Class theorists in the next chapter.
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with equal zest by young scholars who are making a career by refut- ing socialism, and by decrepit elders who are preserving the tradition of all kinds of outworn systems"
Over eighty years later, the careerist scholars are still declaring Marxism to have been proven wrong once and for all. As the anti- communist liberal writer, Irving Howe, put it: "The simplistic for- mulae of textbooks, including the Marxist ones, no longer hold. That is why some of us . . . don't regard ourselves as Marxists" (Newsday, 4/21/86). Here I want to argue that Marxism is not outmoded or sim- plistic, only the image of it entertained by anti-Marxists like Howe.
Some Durable Basics
With the overthrow of communist governments in Eastern
Europe and the Soviet Union, announcements about the moribund nature of "Marxist dogma" poured forth with renewed vigor. But Marx s major work was Capital, a study not of "existing socialism," which actually did not exist in his day, but of capitalism--a subject that remains terribly relevant to our lives. It would make more sense to declare Marxism obsolete if and when capitalism is abolished, rather than socialism. I wish to argue not merely that Marx is still rel- evant but that he is more relevant today than he was in the nine- teenth century, that the forces of capitalist motion and development are operating with greater scope than when he first studied them.
This is not to say that everything Marx and Engels anticipated has come true. Their work was not a perfect prophecy but an imperfect, incomplete science (like all sciences), directed toward understanding a capitalism that leaves its bloody footprints upon the world as never before. Some of Marxisms basic postulates are as follows:
In order to live, human beings must produce. People cannot live by bread alone but neither can they live without bread. This does not mean all human activity can be reduced to material motives but that all activity is linked to a material base. A work of art may have no
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direct economic motive attached to it, yet its creation would be impossible if there did not exist the material conditions that allowed the artist to create and show the work to interested audiences who have the time for art.
What people need for survival is found in nature but rarely in a form suitable for immediate consumption. Labor therefore becomes a primary condition of human existence. But labor is more than a way of providing for survival. It is one of the means whereby people develop their material and cultural life, acquiring knowledge, and new modes of social organization. The conflicting class interests that evolve around the productive forces shape the development of a social system. When we speak of early horticultural societies, or of slave or feudal or mercantile or industrial capitalist societies, we are recognizing how the basic economic relations leave a defining stamp on a given social order.
Capitalist theorists present capital as a creative providential force. As they would have it, capital gives shape and opportunity to labor; capital creates production, jobs, new technologies, and a general prosperity. Marxists turn the equation around. They argue that, of itself, capital cannot produce anything; it is the thing that is pro- duced by labor. Only human labor can create the farm and the fac- tory, the machine and the computer. And in a class society, the wealth so produced by many is accumulated in the hands of relatively few who soon translate their economic power into political and cul- tural power in order to better secure the exploitative social order that so favors them.
The standard "trickle down" theory says that the accumulation of wealth at the top eventually brings more prosperity to the rest of us below; a rising tide lifts all boats. I would argue that in a class soci- ety the accumulation of wealth fosters the spread of poverty The wealthy few live off the backs of the impoverished many. There can be no rich slaveholders living in idle comfort without a mass of pen- niless slaves to support their luxurious life style, no lords of the
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manor who live in opulence without a mass of impoverished landless serfs who till the lords' lands from dawn to dusk. So too under cap- italism, there can be no financial moguls and industrial tycoons without millions of underpaid and overworked employees.
Exploitation can be measured not only in paltry wages, but in the disparity between the wealth created by the worker and the pay she or he receives. Thus some professional athletes receive dramatically higher salaries than most people, but compared to the enormous wealth they produce for their owners, and taking into account the rigors and relative brevity of their careers, the injuries sustained, and the lack of life-long benefits, it can be said they are exploited at a far higher rate than most workers.
Conservative ideologues defend capitalism as the system that pre- serves culture, traditional values, the family, and community. Marxists would respond that capitalism has done more to under- mine such things than any other system in history, given its wars, col- onizations, and forced migrations, its enclosures, evictions, poverty wages, child labor, homelessness, underemployment, crime, drug infestation, and urban squalor.
All over the world, community in the broader sense--the Gemeinschaft with its organic social relationships and strong recip- rocal bonds of commonality and kinship--is forcibly transformed by global capital into commercialized, atomized, mass-market soci- eties. In the Communist Manifesto, Marx and Engels referred to cap- italisms implacable drive to settle "over the whole surface of the globe," creating "a world after its own image. " No system in history has been more relentless in battering down ancient and fragile cul- tures, pulverizing centuries-old practices in a matter of years, devouring the resources of whole regions, and standardizing the varieties of human experience.
Big Capital has no commitment to anything but capital accumu- lation, no loyalty to any nation, culture, or people. It moves inex- orably according to its inner imperative to accumulate at the highest
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possible rate without concern for human and environmental costs. The first law of the market is to make the largest possible profit from other people s labor. Private profitability rather than human need is the determining condition of private investment. There prevails a rational systematization of human endeavor in pursuit of a socially irrational end: "accumulate, accumulate, accumulate. "
More Right than Wrong
Those who reject Marx frequently contend that his predictions about proletariat revolution have proven wrong. From this, they conclude that his analysis of the nature of capitalism and imperial- ism must also be wrong. But we should distinguish between Marx the chiliastic thinker, who made grandly optimistic predictions about the flowering of the human condition, and Marx the econo- mist and social scientist, who provided us with fundamental insights into capitalist society that have held painfully true to the present day. The latter Marx has been regularly misrepresented by anti-Marxist writers. Consider the following predictions:
Business Cycles and the Tendency toward Recession. Marx noted that something more than greed is involved in the capitalist s relent- less pursuit of profit. Given the pressures of competition and rising wages, capitalists must make technological innovations to increase their productivity and diminish their labor costs. This creates prob- lems of its own. The more capital goods (such as machinery, plants, technologies, fuels) needed for production, the higher the fixed costs and the greater the pressure to increase productivity to maintain profit margins. 2
2 As an industry becomes more capital intensive, proportionately more money must be invested to generate a given number of jobs. But business is not dedicated to creating jobs. In fact, capitalists are constantly devising ways to downsize the workforce. From 1980 to 1990, the net number of jobs created by the biggest corporations in the United States, the "Fortune 500," was zero. The new jobs of that period came mostly from less capital-intensive smaller firms, light industry, service industry, and the public sector.
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Since workers are not paid enough to buy back the goods and ser- vices they produce, Marx noted, there is always the problem of a dis- parity between mass production and aggregate demand. If demand slackens, owners cut back on production and investment. Even when there is ample demand, they are tempted to downsize the workforce and intensify the rate of exploitation of the remaining employees, seizing any opportunity to reduce benefits and wages. The ensuing drop in the workforce s buying power leads to a further decline in demand and to business recessions that inflict the greatest pain on those with the least assets.
Marx foresaw this tendency for profits to fall and for protracted recessions and economic instability. As the economist Robert Heilbroner noted, this was an extraordinary prediction, for in Marx's day economists did not recognize boom-and-bust business cycles as inherent to the capitalist system. But today we know that recessions are a chronic condition and--as Marx also predicted--they have become international in scope.
Capital Concentration. When the Communist Manifesto first appeared in 1848, bigness was the exception rather than the norm. Yet Marx predicted that large firms would force out or buy up smaller adversaries and increasingly dominate the business world, as capital became more concentrated. This was not the accepted wis- dom of that day and must have sounded improbable to those who gave it any attention. But it has come to pass. Indeed, the rate of mergers and take-overs has been higher in the 1980s and 1990s than at any other time in the history of capitalism.
Growth of the Proletariat Another of Marxs predictions is that the proletariat (workers who have no tools of their own and must work for wages or salaries, selling their labor to someone else) would become an ever-greater percentage of the work force. In 1820 about 75 percent of Americans worked for themselves on farms or in small businesses and artisan crafts. By 1940 that number had dropped to 21. 6 percent. Today, less than 10 percent of the labor force is self-employed.
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The same shift in the work force can be observed in the Third World. From 1970 to 1980 the number of wage workers in Asia and Africa increased by almost two-thirds, from 72 million to 120 mil- lion. The tendency is toward the steady growth of the working class, both industrial and service workers, and--as Marx predicted--this is happening globally, in every land upon which capitalism descends.
Proletarian Revolution. As capitalism develops so will the prole- tariat, Marx predicted. We have seen that to be true. But he went fur- ther: With the growing misery and polarization, the masses would eventually rise up and overthrow the bourgeoisie and put the means of production under public ownership for the benefit of all. The rev- olution would come in the more industrialized capitalist countries that had large, developed working classes.
What struck Marx about the working class was its level of organi- zation and consciousness. Unlike previously oppressed classes, the proletariat, heavily concentrated in urban areas, seemed capable of an unparalleled level of political development. It would not only rebel against its oppressors as had slaves and serfs but would create an egalitarian, nonexploitative social order as never before seen in history. In his day Marx saw an alternative system emerging in the clubs, mutual aid societies, political organizations, and newspapers of a rapidly growing British working class. For the first time, history would be made by the masses in a conscious way, a class for itself. Sporadic rebellion would be replaced by class-conscious revolution. Instead of burning down the manor, the workers would expropriate it and put it to use for the collective benefit of the common people, the ones who built it in the first place.
Certainly Marx s predictions about revolution have not material- ized. There has been no successful proletariat revolution in an advanced capitalist society. As the working class developed so did the capitalist state, whose function has been to protect the capitalist class, with its mechanisms of police suppression and its informa- tional and cultural hegemony.
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Of itself, class struggle does not bring inevitable proletarian vic- tory or even a proletarian uprising. Oppressive social conditions may cry out for revolution, but that does not mean revolution is forth- coming. This point is still not understood by some present-day left- ists. In his later years, Marx himself began to entertain doubts about the inevitability of a victorious workers revolution. So far, the pre-
vailing force has not been revolution but counterrevolution, the dev- ilish destruction wreaked by capitalist states upon popular struggles, at a cost of millions of lives.
Marx also underestimated the extent to which the advanced capi- talist state could use its wealth and power to create a variety of insti- tutions that retard and distract popular consciousness or blunt discontent through reform programs. Contrary to his expectations, successful revolutions occurred in less developed, largely peasant societies such as Russia, China, Cuba, Vietnam--though the prole- tariats in those countries participated and sometimes, as in the case of Russia in 1917, even spearheaded the insurgency
Although Marxs predictions about revolution have not material- ized as he envisioned, in recent years there have been impressive instances of working-class militancy in South Korea, South Africa, Argentina, Italy, France, Germany, Great Britain, and dozens of other countries, including even the United States. Such mass struggles usu- ally go unreported in the corporate media. In 1984-85, in Great Britain, a bitter, year-long strike resulted in some 10,500 coal miners being arrested, 6,500 injured or battered, and eleven killed. For the British miners locked in that conflict, class struggle was something more than a quaint, obsolete concept.
So in other countries. In Nicaragua, a mass uprising brought down the hated Somoza dictatorship. In Brazil, in 1980-83, as Peter Worsley observes, "the Brazilian working class . . . has played pre- cisely the role assigned to it in 19th century Marxist theory, paralyz- ing Sao Paulo in a succession of enormous mass strikes that began over bread-and-butter issues but which in the end forced the military
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to make major political concessions, notably the restoration of a measure of authentic party-political life " Revolutions are relatively rare occurrences but popular struggle is a widespread and constant phenomenon.
More Wealth, More Poverty
Marx believed that as wealth becomes more concentrated, poverty will become more widespread and the plight of working people ever- more desperate. According to his critics, this prediction has proven wrong. They point out that he wrote during a time of raw industri- alism, an era of robber barons and the fourteen-hour work day. Through persistent struggle, the working class improved its life con- ditions from the mid-nineteenth to the mid-twentieth centuries. Today, mainstream spokespersons portray the United States as a prosperous middle-class society.
Yet one might wonder. During the Reagan-Bush-Clinton era, from 1981 to 1996, the share of the national income that went to those who work for a living shrank by over 12 percent. The share that went to those who live off investments increased almost 35 percent. Less than 1 percent of the population owns almost 50 percent of the nation s wealth. The richest families are hundreds of times wealthier than the average household in the lower 90 percent of the popula- tion. The gap between Americas rich and poor is greater than it has been in more than half a century and is getting ever-greater. Thus, between 1977 and 1989, the top 1 percent saw their earnings grow by over 100 percent, while the three lowest quintiles averaged a 3 to 10 percent drop in real income. 3
The New York Times (6/20/96) reported that income disparity in 1995 "was wider than it has been since the end of World War II. " The average income for the top 20 percent jumped 44 percent, from $73,754 to $105,945, between 1968 and 1994, while the bottom 20
3 Paul Krugman, Peddling Prosperity (New York: W. W. Norton: 1994), 134-35.
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percent had a 7 percent increase from $7>202 to $7,762, or only $560 in constant dollars. But these figures understate the problem. The Times story is based on a Census Bureau study that fails to report the income of the very rich. For years the reportable upper limit was $300,000 yearly income. In 1994, the bureau lifted the allowable limit to $1 million. This still leaves out the richest one percent, the hun- dreds of billionaires and thousands of multimillionaires who make many times more than $1 million a year. The really big money is concentrated in a portion of the population so minuscule as to be judged statistically insignificant. But despite their tiny numbers, the amount of wealth they control is enormous and bespeaks an income disparity a thousand times greater than the spread allowed by the Census Bureau figures. Thus, the difference between a multibil- lionare who might make $100 million in any one year and a janitor who makes $8,000 is not 14 to 1 (the usually reported spread between highest and lowest) but over 14,000 to 1. Yet the highest incomes remain unreported and uncounted. In a word, most studies of this
sort give us no idea of how rich the very rich really are. 4
The number living below the poverty level in the United States climbed from 24 million in 1977 to over 35 million by 1995. People were falling more deeply into poverty than in earlier times and find- ing it increasingly difficult to emerge from it. In addition, various
diseases related to hunger and poverty have been on the rise. 5
4 When asked why this procedure was used, a Census Bureau official told my research assistant that the bureaus computers could not handle higher amounts. This excuse seems most improbable, since once the Census Bureau decided to raise the upper limit, it did so without any difficulty. Another reason he gave was confidentiality. Given place coordinates, someone with a very high income could be identified. In addition, high-income respondents understate their income. The interest and dividend earnings they report is only about 50 to 60 percent of actual investment returns. And since their actual numbers are so few, they are likely not to show up in a random sample of the entire nation. By designating the top 20 percent as the "richest " the Census Bureau is lumping in upper-middle profes- sionals and other people who make as little as $70,000 or so, people who are anything but the "richest "
5 For more extensive data, see my essay "Hidden Holocaust, USA," in Michael Parenti, Dirty Truths (San Francisco: City Lights Books, 1996).
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There has been a general downgrading of the work force. Regular employment is being replaced by contracted labor or temporary help, resulting in lower wages with fewer or no benefits. Many unions have been destroyed or seriously weakened. Protective gov- ernment regulations are being rolled back or left unenforced, and there has been an increase in speedups, injuries, and other workplace abuses.
By the 1990s the growing impoverishment of the middle and working classes, including small independent producers, was becoming evident in various countries. In twenty years, more than half the farmers in industrialized countries, some 22 million, were ruined. Meanwhile, as noted in the previous two chapters, free-mar- ket "reforms" have brought a dramatic increase in poverty, hunger, crime, and ill-health, along with the growth of large fortunes for the very few in the former communist countries.
The Third World has endured deepening impoverishment over the last half century. As foreign investment has increased, so has the misery of the common people who are driven from the land. Those who manage to find employment in the cities are forced to labor for subsistence wages. We might recall how enclosure acts of the late eighteenth century in England fenced off common lands and drove the peasantry into the industrial hell-holes of Manchester and London, transforming them into beggars or half-starved factory workers. Enclosure continues throughout the Third World, displac- ing tens of millions of people.
In countries like Argentina, Venezuela, and Peru, per capita income was lower in 1990 than it had been twenty years earlier. In Mexico, workers earned 50 percent less in 1995 than in 1980. One- third of Latin Americas population, some 130 million, live in utter destitution, while tens of millions more barely manage. In Brazil, the purchasing power of the lower-income brackets declined by 50 per- cent between 1940 and 1990 and at least half the population suffered varying degrees of malnutrition.
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In much of Africa, misery and hunger have assumed horrendous proportions. In Zaire, 80 percent of the people live in absolute penury. In Asia and Africa more than 40 percent of the population linger at the starvation level. Marx predicted that an expanding cap- italism would bring greater wealth for the few and growing misery for the many. That seems to be what is happening--and on a global scale.
A Holistic Science
Repeatedly dismissed as an obsolete "doctrine," Marxism retains a compelling contemporary quality, for it is less a body of fixed dicta and more a method of looking beyond immediate appearances to see the inner qualities and moving forces that shape social relations and much of history itself. As Marx noted: "All science would be super- fluous if outward appearances and the essence of things directly coincided. " Indeed, perhaps the reason so much of modern social science seems superfluous is because it settles for the tedious tracing of outward appearances.
To understand capitalism, one first has to strip away the appear- ances presented by its ideology. Unlike most bourgeois theorists, Marx realized that what capitalism claims to be and what it actually is are two different things. What is unique about capitalism is the systematic expropriation of labor for the sole purpose of accumula- tion. Capital annexes living labor in order to accumulate more capi- tal. The ultimate purpose of work is not to perform services for consumers or sustain life and society, but to make more and more money for the investor irrespective of the human and environmen- tal costs.
An essential point of Marxist analysis is that the social structure and class order prefigure our behavior in many ways. Capitalism moves into every area of work and community, harnessing all of social life to its pursuit of profit. It converts nature, labor, science,
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art, music, and medicine into commodities and commodities into capital. It transforms land into real estate, folk culture into mass cul- ture, and citizens into debt-ridden workers and consumers.
Marxists understand that a class society is not just a divided soci- ety but one ruled by class power, with the state playing the crucial role in maintaining the existing class structure. Marxism might be considered a "holistic" science in that it recognizes the links between various components of the social system. Capitalism is not just an economic system but a political and cultural one as well, an entire social order. When we study any part of that order, be it the news or entertainment media, criminal justice, Congress, defense spending, overseas military intervention, intelligence agencies, campaign finance, science and technology, education, medical care, taxation, transportation, housing, or whatever, we will see how the particular part reflects the nature of the whole. Its unique dynamic often buttresses and is shaped by the larger social system -- espe- cially the systems overriding need to maintain the prerogatives of the corporate class.
In keeping with their system-sustaining function, the major news media present reality as a scatter of events and subjects that ostensi- bly bear little relation to each other or to a larger set of social rela- tions. Consider a specific phenomenon like racism. Racism is presented as essentially a set of bad attitudes held by racists. There is little analysis of what makes it so functional for a class society. Instead, race and class are treated as mutually exclusive concepts in competition with each other. But those who have an understanding of class power know that as class contradictions deepen and come to the fore, racism becomes not less but more important as a factor in class conflict. In short, both race and class are likely to be crucial are- nas of struggle at the very same time.
Marxists further maintain that racism involves not just personal attitude but institutional structure and systemic power. They point out that racist organizations and sentiments are often propagated by
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well-financed reactionary forces seeking to divide the working pop- ulace against itself, fracturing it into antagonistic ethnic enclaves.
Marxists also point out that racism is used as a means of depress- ing wages by keeping a segment of the labor force vulnerable to super-exploitation. To see racism in the larger context of corporate society is to move from a liberal complaint to a radical analysis. Instead of thinking that racism is an irrational output of a basically rational and benign system, we should see it is a rational output of a basically irrational and unjust system. By "rational" I mean purpo- sive and functional in sustaining the system that nurtures it.
Lacking a holistic approach to society, conventional social science tends to compartmentalize social experience. So we are asked to ponder whether this or that phenomenon is cultural or economic or psychological, when usually it is a blend of all these things. Thus, an automobile is unmistakably an economic artifact but it also has a cultural and psychological component, and even an aesthetic dimen- sion. We need a greater sense of how analytically distinct phenomena are often empirically interrelated and may actually gather strength and definition from each other.
Marxists do not accept the prevalent view of institutions as just "being there" with all the natural innocence of mountains--espe- cially the more articulated formal institutions such as the church, army, police, military, university, media, medicine, and the like. Institutions are heavily shaped by class interests and class power. Far from being neutral and independent bastions, the major institutions of society are tied to the big business class. Corporate representatives exercise direct decision-making power through control of governing boards and directorships. Business elites usually control the budgets and the very property of various institutions, a control inscribed into law through corporate charters and enforced by the police powers of the state. Their power extends to the managers picked, the policies set, and the performances of employees.
If conventional social science has any one dedication, it is to ignore
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the linkages between social action and the systemic demands of capi- talism, avoiding any view of power in its class dimensions, and any view of class as a power relationship.
