Archive for the ‘Prices of Production’ Category

The Putsch of January 6, 2021

January 10, 2021

Normally, after my draft returns from the editors, I make a few last-minute changes, sometimes correct factual errors, and then send it back for final editing and posting. In this post, my deadline for the initial draft was Jan. 4. I considered updating the draft to cover the events of Jan. 6 but it was clear that would involve changes way beyond the usual last-minute updates I sometimes have to make. I therefore decided to leave the post as is, minus some minor editorial changes, but add this special section. The following post should be read as a description of the U.S. political situation on the eve of the attempted putsch of Jan. 6. There will be more on this subject in next month’s post.

After the the Electoral College elected Joseph Biden and Kamala Harris to the presidency and vice presidency of the United States on Dec. 14, Trump appeared to be out of legal options in his attempt to cling to office. But there was one more legal hurdle to clear before the presidential election was formally complete. This was the counting of the electoral vote and announcement of the results to a special joint session of the House of Representatives and Senate by the president of Senate, which was Trump’s vice president, Mike Pence.

At this point, if a member of the House mounts a challenge to the electors of a given state and is backed by a member of the Senate, both houses of Congress have to vote on the challenge. If the challenge is approved by both chambers, the electoral vote of that state is declared invalid. This year, a number of extreme right-wing Republican congressman and some senators announced that they would indeed mount such challenges in a series of swing states that were carried by electors pledged to the Harris-Biden ticket.

Such challenges, though they have occurred occasionally, have always been overwhelmingly voted down. This year, it was clear that the challenges would also be defeated. First, because as far as the Senate is concerned, they did not have support of Republican leader Mitch McConnell, and second, because the Democrats have a majority of the House of Representatives. Trump not only would have had to overcome McConnell’s resistance but split off some Democrats in the House to have any chance of prevailing.

But Trump hoped that the Electoral College vote could be nullified on Jan. 6, which would then move the election to the House of Representatives where Trump would be “elected” to a second four-year term. Or perhaps Trump hoped Vice President Mike Pence could simply announce that not Biden-Harris but Trump-Pence had carried the Electoral College.

When Pence tried to explain to him that the vice president has no such power under the U.S. Constitution, Trump was reportedly enraged and came to view Pence, who had hoped before the Nov. 3 election to become Trump’s anointed successor in four years, as a traitor just as Trump views so many other high officials who have come and gone over the last four years.

With time rapidly running out, Trump decided to play one final card. In the preceding weeks, thousands of MAGA supporters had arrived in Washington waiting to act on the president’s command. On Jan. 6, the command came. As the two houses of Congress were convening in the Capitol to carry out their ceremonial function of certifying the presidential election, Trump addressed a crowd of assembled fascists, some armed with guns, in front of the White House. He announced that they would march to the Capitol. Trump, however, instead of joining them retreated to the White House to watch the show on TV. The fascist mob not only marched to the Capitol, it stormed the Capitol.

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The End of the Trump Era

December 13, 2020

Just as he promised he would, Donald Trump has refused to concede the U.S. presidential election to Joseph Biden. However, on Nov. 23, Emily Murphy, the Trump-appointed head of the General Services Administration, or GSA, finally allowed the Biden transition team to begin preparations for Biden’s assumption of the U.S. presidency on Jan. 20, 2021.

Between Nov. 3 and 23, Murphy had stubbornly refused to grant access to the Biden transition team on grounds that, in Ms. Murphy’s judgment, it wasn’t clear that Biden had won the election. Her decision to begin cooperating with Biden’s transition team was seen as a de facto admission by at least some in the Trump administration that Biden had won the election.

Widespread relief was felt in financial circles that a contested election outcome leading to widespread unrest in the streets, if not outright civil war, had been adverted. The stock market celebrated by rising to new all-time highs and the U.S. dollar rose against gold. However, Trump himself along with many if not most Republican politicians still refused to concede the election. Trump continued to claim that he had in fact won and that Biden and the Democrats had stolen the election through massive fraud.

In a normal U.S. presidential election, the losing candidate concedes the election and congratulates the winner within hours after the polls close on election day. If the election leads to a new president, the outgoing and incoming presidents and their aides work closely with one another until the transition is officially completed. Since the 1896 presidential election, when the losing “silver” Democrat William Jennings Bryan conceded to the victorious “gold” Republican William McKinley, the concession statement from the losing candidate has become an unwritten part of the U.S. Constitution.

This election year had unusual complications because of COVID-19, which made voting at traditional polling stations extremely dangerous. As a result, many voters voted by mail. This had the paradoxical effect of making voting easier for many voters. Perhaps of even greater importance, the racist and bigoted reelection campaign of far-right incumbent Donald Trump led to an extreme polarization of the U.S. electorate. Usually, the differences between the Democratic and Republican presidential candidates are obviously not very deep, if not virtually nonexistent. As a result, most voters, though they generally prefer one candidate to another, do not care that much whether their preferred candidate wins or loses.

But not this time. While Joseph Biden created even less excitement than the usual Democratic candidate, Donald Trump in contrast was either hated — the clear majority view in the U.S. and even more so in the world — or loved by his bigoted white racist supporters. The result was the largest turnout of voters for a U.S. presidential election in decades. As a consequence, the large number of mail-in ballots, combined with COVID-19, messed up the computer algorithms that since 1952 have enabled the networks to accurately call the election with only a minority of the votes counted.

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The Current Industrial Cycle (Pt 1)

July 26, 2020

COVID-19 devastates the U.S.

It has now become clear that the COVID-19 pandemic has hit the U.S. harder than any other large nation — and most smaller ones. The U.S. ruling class and Trump administration have been particularly enraged by China’s ability to largely check the pandemic. China has had far fewer cases, hospitalizations, and deaths despite its far larger population. Though the U.S. has only about 4 percent of the population it has 25 percent of the world’s COVID-19 cases.

Both Trump and the U.S. ruling class as a whole, including Democratic presumptive nominee Joseph Biden, have stepped up their anti-China propaganda — often combined with old-fashioned red-baiting — on numerous fronts. In Trump’s case, the anti-China attacks have an openly racist character. He regularly refers to COVID-19 as the “Chinese flu” or the even more racist “Kung flu.” This is typical Trump.

Less commented on is the record of Vietnam. Vietnam acted early and effectively in controlling the pandemic, first reported in its northern neighbor late last year. According to the website Exemplars of Global Health, “Although Vietnam reported its first case of COVID-19 on January 23, 2020, it reported only a little more than 300 cases and zero deaths over the following four months.”

Exemplars reports that Vietnam’s “early success has been attributed to several key factors, including a well-developed public health system, a strong central government, and a proactive containment strategy based on comprehensive testing, tracing, and quarantining.” Not mentioned is the fact that none of the factors that have enabled Vietnam to deal so successfully with the COVID pandemic would have been possible without Vietnam’s successful struggle half a century ago against the attempt by U.S. imperialism to destroy it in the name of “fighting communist aggression.” The Southeast Asian country is still struggling with the effects of the infamous “Agent Orange” defoliation program and other effects of the brutal “American war,” as it is called in Vietnam.

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The Crisis (Pt 11)

June 28, 2020

Is capitalism approaching its limits?

In the first years of the 20th century, Rosa Luxemburg expressed great alarm when she discovered that Marx’s formulas of expanded reproduction in Volume II of “Capital” suggested that capitalism can in principle go on forever. These formulas appeared to contradict Marx’s famous Preface in “A Contribution to a Critique of Political Economy.” There Marx wrote: “No social order ever perishes before all the productive forces for which there is room in it have developed [my emphasis — SW] and new, higher relations of production never appear before the material conditions of their existence have matured in the womb of the old society itself.”

If, however, capitalism can engage in expanded reproduction without limit, how can capitalism ever develop all the productive forces “for which it has room”? Didn’t Marx himself mathematically demonstrate that capitalism can develop the productive forces without limit? However, a closer look reveals this apparent contradiction to be an illusion.

In the Volume II formula, the productive forces expanded only quantitatively but not qualitatively. There is no growth in labor productivity or what Marx called the organic composition of capital — the ratio of constant capital, which does not produce surplus value but merely transfers its value to the commodities it helps produce, and variable capital, the sold labor power of the workers, which replaces its value and produces additional surplus value.

It is also assumed that the correct proportions of production, including the correct proportions between Department I, which produces the means of production, and Department II, which produces the means of consumption, are maintained without explaining how they are maintained. And — almost always overlooked — among the correct proportions between the various branches of production that must be maintained is that between the production of money material and all other branches of commodity production.

In reality, the concrete history of capitalism has been marked by growth in labor productivity. The rate at which productivity grows is largely regulated by the competition between the industrial capitalists and the workers. To maximize their profits, the industrial capitalists as the buyers of labor power try to pay the workers the lowest possible wage. The workers as the sellers of labor attempt to get the highest possible wage right up to the mathematical limit where surplus value — and therefore its monetary form, profit — disappears altogether.

If Marx’s formulas show expanded capitalist reproduction running forever, it must be assumed that the quantity of auxiliary materials and the ores out of which money material is produced, and the supply of labor power that produces the means of subsistence for the workers, must be available in infinite quantities. If this is true — which it obviously is not — then the population, including the fraction of the population that consists of workers, can grow to the mathematical limit of infinity and capitalism can indeed go on forever. Otherwise, it can’t.

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The Crisis (Pt 9)

June 15, 2020

After police murder of George Floyd, demonstrations and uprisings sweep U.S.

On June 1, a combined force of military police, park police, and Secret Service brutally cleared an area around the White House of peaceful demonstrators who had been protesting the May 25 murder by Minneapolis police officers of African-American George Floyd. To clear the crowd, these military-police forces used a low-flying helicopter, tear gas, and stun grenades. This was so that President Donald Trump could appear in front of a nearby church Bible in hand.

Trump, who had earlier been sheltering in a special bunker beneath the White House, threatened to invoke the Insurrection Act of 1807, which would permit him to order the military to suppress the massive wave of demonstrations and uprisings that have been sweeping the U.S. since the police murder of Floyd. Trump’s threat to use the military, if carried out, would be a major step towards a military-Bonapartist dictatorship.

Trump’s threats led to a wave of complaints by mostly Democratic politicians and warnings of some retired generals, including Trump’s former Secretary of “Defense” General James “Maddog” Mattis, not to use the military against peaceful demonstrators. Republican leaders, with a few exceptions, either supported Trump or maintained an icy silence.

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The Crisis (Pt 6)

May 24, 2020

U.S. unemployment hits Depression levels

In April, the U.S. Labor Department U-3 measure of unemployment hit 14.7 percent. The U-3 rate had been used over the last year or so to claim that unemployment was the lowest since 1969. In fact, it is designed to greatly underestimate the real level of unemployment. Even some Federal Reserve Board officials admit that the real rate of unemployment is over 20 percent and fast approaching the all-time quasi-official estimate of 24.9 percent that occurred at the very bottom of the Depression in March 1933. Nobody denies that the number of unemployed in the U.S. is in the tens of millions — around 50 million if you believe AFL-CIO President Richard Trumka.

However, it is claimed by Trump and most economists that the current unemployment crisis is the result of the deliberate shutting down of the economy made necessary by the COVID-19 pandemic. What is occurring, according to this logic, is not the long-feared Depression II but the “Great Suppression.” Though unemployment generally declined after March 1933 — except for the sharp but short-lived Roosevelt recession of 1937-38 — “full employment” did not return until the U.S. had entered World War II in 1941. This time, it is claimed by Trump and many economists, in contrast to 1933 there is no underlying economic crisis. Therefore, “full employment” will return much more quickly. The pandemic will have run its course within months, as Trump claims, or at most within several years, as claimed by more cautious economists.

Therefore, the argument goes, while still a terrible situation it is not quite Depression II. Though unemployment may be as bad as during the Depression, it won’t last nearly as long. Anyway, Depression-level unemployment is the necessary price we have to pay to stave off the much greater evil of millions of deaths in the U.S. alone from COVID-19. Not surprisingly, Donald Trump, who had been planning on running on “prosperity and full employment” as shown by the Labor Department’s U-3 unemployment rate, is leading the charge to “open America for business.”

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The Crisis (Pt 5)

May 17, 2020

U.S. infection rates rise as states move to reopen

More and more U.S. states are moving to reopen non-essential businesses though there is no sign the COVID-19 epidemic is dying down. “Take the New York metropolitan area’s progress against the coronavirus out of the equation, Nicky Forster, Carla K. Johnson, and Mike Stobbe wrote May 4 in an Associated Press article, “and the numbers show the rest of the U.S. is moving in the wrong direction, with the known infection rate rising even as states move to lift their lockdowns. … ”

According to a leaked CDC document that appeared in The New York Times and Washington Post, the government projects that new COVID-19 cases will increase 225,000 a day by June, with deaths climbing to 3,000 per day. In early May, when this is being written, new cases are only 25,000 with deaths a mere 2,000. This despite all the social distancing and stay-at-home orders.

With President Trump leading the charge to reopen America for business, state and local governments are competing with one another for which one can lift the social distancing and stay-in-place orders the fastest. So far, these are the only policies that have slowed the pandemic in some areas.

In reality, the pandemic is still gaining momentum nationwide. Thanks to Trump and various state and local governments, the spread of COVID-19 in the U.S. could very well accelerate further in the coming months. A similar pattern is emerging in other capitalist countries. Of course, the growth of the pandemic in one country, particularly one as large as the U.S., is a threat to people of all other countries, since the virus does not respect national boundaries.

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Political and Economic Crises (Pt 12)

October 13, 2019

Political crisis engulfs the U.S. and Britain

On Sept. 24, 2019, Democratic Speaker of the U.S. House Nancy Pelosi announced the opening of an impeachment inquiry directed against Donald Trump. This is not yet an actual impeachment of the U.S. president, still less his removal from office. But it is considered a major step toward impeachment, which had appeared to be a dead letter after the Mueller report failed to produce any evidence that the 2016 Trump campaign had collaborated illegally with the Russian government.

A CIA whistle-blower reported that he or she had heard from other government officials that President Trump had withheld military aid to Ukraine to pressure the Ukrainian government to investigate Hunter and Joseph Biden. Joseph Biden is considered a front-runner in the race to be the Democratic presidential nominee for the 2020 election. Since the 2014 Euromaidan coup spearheaded by fascist and openly pro-Nazi elements, Ukraine has been reduced to the status of a virtual U.S. colony. The Democrats consider this colonization of Ukraine a great achievement of the Obama-Biden administration.

In the wake of the Euromaidan coup, the younger Biden was appointed to the Board of Directors of Burisma, Ukraine’s leading producer of natural gas, in an obvious move to please Ukraine’s new masters. If Trump demanded in a meeting he held with Ukrainian President Volodymyr Zelensky that Zelensky investigate the Bidens or else the U.S. would withhold military aid, Trump would violate U.S. laws that prohibit seeking the aid of a foreign government in a U.S. election. The Democrats failed to prove that Trump received such aid from the Russian government in the 2016 election. Now they believe they are on the verge of proving it concerning Ukraine’s government.

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Political and Economic Crises (Pt 9)

July 21, 2019

Scandals that rocked the Trump administration this month included sex scandals involving both the current president and former President Bill Clinton. Another scandal involved “detention centers” for immigrants, which are finally being called by their right name — concentration camps. The prisoners held in these camps are desperate people — men, women, children and infants — forced to flee desperate conditions in Central America created by U.S. imperialism under both Republicans and Democrats.

Particularly outrageous is the detention of children and even infants, who are held in cages and go without basic medical care (resulting in some children dying in the camps), toothbrushes, and bathing. The conditions in which these concentration camp victims are held would be scandalous even if they involved adult prisoners convicted after fair trials of terrible crimes. When the victims are children and infants, even the term popularized after the post-WWII Nuremberg Trials of German Nazi leaders for “crimes against humanity” seems somehow trite.

Trump supporters claim it is outrageous to call the detention centers concentration camps, pointing out there are no gas chambers or crematoria in these camps. This much is true. However, there were no gas chambers or crematoria in the Nazi concentration camps of the 1930s. There were also no children in the 1930s-era Nazi concentration camps. That did not prevent the Nazi government, which originally held “only” adult Communists, trade unionists, and some Social Democrats in “protective custody,” from calling them concentration camps. It was only during World War II that non-political women, children and infants — most Jews and Roma people — were taken to concentration camps equipped with gas chambers and crematoria.

As these revelations became known, a growing movement has emerged demanding that the concentration camps be shut down. On July 12, reports circulated that ICE, the U.S. federal secret police agency in charge of enforcing immigration laws, were planning massive raids on Sunday, July 14. In response, a series of demonstrations swept the U.S. demanding that the concentration camps be shut down and immigrants be allowed to stay.

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Political and Economic Crises (Pt 7)

May 26, 2019

April 30 Venezuela coup fails as trade war with China intensifies

On April 30, the Trump administration backed by the “Party of Order” launched a major new attempt to overthrow the democratically elected government of Venezuelan President Nicolas Maduro. Juan Guaidó, claiming he had major military support, announced that “Operation Freedom” – the coup – had entered its final stage. The hope of Trump, Mike Pence, John Bolton, and Eliot Abrams, supported by Democrat Speaker of the House Nancy Pelosi and Senate Minority Leader Charles Schumer, was that the Maduro government would be overthrown by May Day – the international workers’ holiday.

The hope of Trump and the Democrats was that Trump-appointed Juan Guaidó – perhaps on May Day itself – would be installed as the puppet “interim president.” The counterrevolutionary victory would then be ratified in a hastily organized election in which the overthrown Chavistas would be banned from participating, thus guaranteeing a victory for the pro-imperialist reactionaries.

Instead, the coup never got off the ground, and the Chavistas staged one of the largest May Day demonstrations in years, completely dwarfing the small, dispirited actions held by the Guaidó forces. Of course, the events of April 30-May 1 were only a battle – but an important one. A battle has been won but the war continues. The Trump administration still indicates that if all else fails it reserves the right to pass from economic and political war to a full-scale military invasion.

If the coup had succeeded, Trump, who has promised to banish socialism forever, would have celebrated what to him – and his class – would have been a major victory. When Trump uses the term socialism – a term of many meanings – he is not using it in the sense Lenin used it in his classic work “State and Revolution.”

In that work, Lenin defined socialism as the first stage of the future communist society. In this stage, private ownership of the means of production and with it the division of society into classes, along with commodity-money relations of production, have already died out.

But Lenin explained that socialism, while a form of communism, is an imperfect communism because people will still be paid, at least in part, according to their work rather than according to their needs, as would be the case in the higher form of communist society.

Trump, in contrast to Lenin, means by “socialism” the policies advocated by modern European social-democratic parties. These parties advocate a capitalist society with laws that limit the workday to 40 hours or less so workers have time to participate in politics; the right of workers to organize into unions and political parties and establish a mass workers’ press; and recognition of housing and education as rights along with social guarantees such as unemployment insurance, social security, and the right to medical care regardless of income and the ability to pay.

These things, even when taken together and fully realized, are still very far from Lenin’s definition of socialism. Under social-democratic “socialism,” society remains divided into a class of capitalist buyers of labor power and workers who sell their labor power and through their unpaid or surplus labor produce surplus value. The U.S. has achieved less of the elements of “socialism” in the modern social-democratic sense than virtually any other advanced capitalist country.

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