What’s Left, Toronto? Part Three

In two earlier posts, I looked at the introduction and first talk of several leftist activists on September 19, 2018 in the city of Toronto, Ontario, Canada, about what was to be done politically (presented just a little over a month before city elections on October 22). The talks were posted on the Socialist Project website (What’s Left, Toronto? Radical Alternatives for the City Election)  on October 7, 2018 (15 days before city elections).

The second talk was made by Stefan Kipfer, professor of environmental studies at York University. Professor Kipfer talked mainly about the housing issue in Toronto. He indicated that housing has two senses, one narrow and one wider. The wider sense has to do with how people appropriate space and make life livable for themselves within that space. The narrow sense has to do with the provision of housing (its production and distribution presumably). He points out that any solution to housing problems has to be wider than the narrow sense and needs to take into the labour market, for example.

Unfortunately, he then restricts his reference to solutions to two models that address problems in the narrower sense. Both the right and the left agree that there is a housing problem, but they differ in their solutions. The first, right-wing model is the private-market model of housing, or the supply-side model, which requires the market to dictate housing production and distribution. Social regulation is to be minimized. Such a view is characteristic of the Board of Trade of Toronto, and the two mainstream mayoralty candidates John Tory and Jennifer Keesmaat.

The left-wing solution is purely negative–it does not rely on the private market model for solving housing problems. Diverse solutions have this negative quality about them. otherwise, they differ somewhat in their approach. For example, there is a housing struggle over the expansion of shelter space, led by OCAP, and there are struggles over establishing coop housing. Despite the differences, they all suggest an expansion of social, non-profit housing, coop housing or at the least the maintenance of existing housing infrastructure.

The exclusion of such vital issues as the labour market from explicit consideration mars the presentation. Indeed, it distorts the definition of the problem and its solution. Thus, Professor Kipfer argues that housing is not like the production of pies or bicycles since it permits capitalist developers, banks and insurance companies an increasing flow of rent payments. Now, there is certainly a sense in which an increasing flow of rent payments (rather than a steady flow of rental payments) makes the production of housing different from the production of pies and bicycles in a capitalist society; professor Kipfer implies that there is a monopoly in production that permits such an increasing flow of rental payments. Presumably the supply of housing is constantly less than the demand so that the prices of housing do not correspond to their value over the middle term since there is an artificial restriction of the supply due to the monopoly in land. That is, presumably, why housing in Toronto is becoming more and more unaffordable.

Although the production of housing may differ from the production of pies and bicycles in a capitalist system of production and exchange due to the monopoly of land (ultimately a non-produced part of the world), there is also the commonality of the principal purpose of land use, the production of pies and bicycles in such an economy: obtaining more money than initially invested (see The Money Circuit of Capital). Construction of housing is just as much dictated by the logic of capital as the production of pies and bicycles. As Ira Katznelson wrote (Marxism and the City. Oxford: Clarendon Press, page 227):

As capitalism entered the industrial epoch, the concept of the land-rent gradient that pointed toward the highest economic use by introducing a profit motive into land use and housing was already established. With the explos:on in the demand for land for factories as well as for working-class housing, this market logic accelerated the processes oi segregation of both uses and social classes.

Since Kipfer does not elaborate at all on how solutions would differ if the wider context were considered, it is difficult to determine whether his proposed solutions within a wider context would be any different from the social-reformist left. Given his emphasis on how housing is supposedly substantially different from the production of pies and bicycles and given his reference to the nationalization of land (but not the overthrow of the owners of the factories where workers produce pies and bicycles, replacing it with democratic control), his preferences may lie in aligning himself with the social reformist left.

Indeed, the nationalization of land has been proposed by such socialists as Henry George–but not the seizure of the produced means or conditions of production. Similarly, as Meghnad Desai notes (Marxian Economic Theory, 1974, pages 40-41):

A few years before Bohm-Bawerk’s criticism (which had to wait until all the three volumes of Capital were published), Philip Wicksteed in a celebrated debate with Bemard Shaw had demonstrated that relative prices were in fact explained by relative scarcities and therefore by the ratio of marginal utilities which they yielded to a consumer. Wicksteed’s demonstration did not deal in detail with Marx’s theory but showed that an explanation based on Jevons’ theory of utility was a superior logical explanation. If prices are explained by relative scarcity rather than by labour content, then the notion of surplus value ceases to have rational foundation. Profits become a legitimate income as a reward for relative scarcity of capital. (Bernard Shaw was to admit the force of this argument and later in his life concentrated on the Ricardian notion of land rent as unearned surplus. To this day land nationalisation and appropriation of profits in real estate have been a part of the Labour Party’s economic philosophy. Profits in industrial activities are regarded as legitimate).

It is certainly illegitimate to single out housing and rent as somehow substantially different from profits, and yet Kipfer seems to imply this. There may indeed barriers to realizing an equal rate of profit in housing construction due to the monopoly of land, thereby restricting competition and increasing housing prices accordingly (without countermeasures, such as the production of social housing and coops). Even if there were no such barriers, though, the situation cannot by any means be characterized as fair for the workers in the construction industry since they are still treated as things or objects, mere means for employers to obtain more and more money. Reducing housing prices through increased social supply in no way questions the legitimacy of the power of employers as a class.

Nothing in Professor Kipfer’s presentation suggests a “radical alternative.” His proposals for social housing and nationalization of the land do not question the principle of capitalist production and exchange–the use of the produced means of production and consumption to exploit workers on an ever-increasing scale through the accumulation of capital. It is a social-democratic presentation and in no way addresses the class power of the employers as a class.

By the way, although I never produced pies for an employer, I did work in a capitalist bakery in Calgary, Alberta, Canada, producing bread for Safeway Inc. (an American supermarket chain). I lasted about a week since the pace of work and the heat were brutal.

One final point: professor Kipfer does not address the possible conflict of interests between sections of the Toronto working class who possess some form of housing and benefit from rising housing prices and those who do not. I learned about this discrepancy fairly recently. In 2014, I bought a relatively inexpensive condo not too far from Jane and Finch in North York (Toronto) for $86,000 Canadian. A few months ago, a real estate agent came to the building, seeking to buy a condominium for someone. Curious as to how much my condominium would be worth, I had him come to estimate its price. He informed me that it would be worth between $200 000 and $227 000. In a little over four years, the price had more than doubled.

Given this situation for some members of the working class in Toronto, support for housing policies that would limit the rise of prices and expand social housing may be lackluster. Some members of the working class may even oppose such policies.

In any case, so far the moderator’s introduction to the series and the first and second talks do not express any radical policies–unless you define radical as limiting your policies to those that are consistent with the power of employers as a class. This series is looking less and less radical.




What’s Left, Toronto? Part Two

As I indicated in an earlier post, on September 19, 2018, several leftist activists gave a talk about what was to be done in the city of Toronto, Ontario, Canada. The talks were posted on the Socialist Project website on October 7, 2018 (What’s Left, Toronto? Radical Alternatives for the City Election). As I indicated in my earlier post,  over the next few months, I will be analyzing some or all of the talks from a Marxian perspective.

The first talk is by Dan Karasik, an activist in the movement for the fight for $15. He claims that the goal now is to hold on to the gains that have been made through the passing of Bill 148 (reform of employment law, which introduced a number of employment laws beneficial to unorganized workers and increased the minimum wage to $14 an hour as of January 1, 2018 and was scheduled to increase as of January 1, 2019). In the short term, such a goal is of course realistic; organized opposition to the class of employers will not occur overnight.

However, Dan likely overestimates, like much of the social-reformist left, the immediate potentiality for radicalizing sections of the working class in terms of the immediate conditions prior to an election. He claims that a radicalization of working-class politics can occur because of the elections. Alternatively, his definition of radical politics is social-reformist and is radical only in relation to Doug Ford’s immediate political position. Both likely share similar positions concerning the necessity of the class of employers (see my earlier post about a social reformist who claims that the fight for $15 is indeed fair, Social-Reformist Leftist Activists Share Assumptions with the Right).

Dan argues that Doug Ford is a populist who was elected the premier of Ontario, Canada, in June 2018 in part to represent “the people,” with a substantial part of the people, according to Dan, expecting Doug Ford to maintain the provisions set out in Bill 148. With the Ontario Chamber of Commerce calling on the Ontario government to completely repeal the Bill, the mood among the social-reformist left has shifted from being celebratory to a mood characterized by a mood characterized by increasing jitters Nevertheless, there is now a space for radicalization since the fight for $15 and what Dan still calls “fairness” potentially has done is to open up a struggle amongst racialized and gendered sections of the working class since minimum wage jobs in Toronto are predominantly filled by racialized and gendered members of the working class–should Ford ultimately decide to follow the recommendations of the Ontario Chamber of Commerce.

Although there may indeed may be some space for organizing along these lines, Dan at no time indicated what he meant by radical politics. Somehow the false promise of Doug Ford to represent “the people” is to magically transform racialized and gendered working-class members into radicals.

Dan never gets around to indicating what he means by “radical politics,” let alone “radical working-class politics.” Since he never does question pairing the term “Fight for $15” with the term “fairness,” his radical politics probably is defined entirely within the limits of the social-reformist left’s definition of radical politics–social reforms that in no way question the power of employers as a class. The questioning of such power is implicitly “off the agenda.”  See several of my posts for criticisms of the positions of politics of the social-reformist left.

Dan briefly referred to the situation of capital and labour in Toronto–without stating anything further. What is the situation of capital and labour in Toronto? When I was a member of the Toronto Labour Committee (with Sam Gindin, Herman Rosenfeld and Paul Gray practically being the leaders), I proposed  a class analysis of Toronto (but indicated that I did not really know how to go about doing that–although I was willing to learn–I was involved in another project in gathering data pertaining to the ruling class analysis in Toronto, but it could not really be considered directly related to the ruling class, but perhaps to the class of self-employed and small to middle-sized employers–but that would have required more refined tools than those used). The response was–silence.

So, what is the situation of capital and labour in Toronto? You would not be able to tell at all from anything Dan had to say. (Perhaps someone can refer me to recent articles and books on the subject? I would definitely appreciate it.)

In general, Dan’s talk refers to a radical politics, but it really contains very little in the way of specifying what that may mean. The audience is left to “fill in” what that may mean. Since the moderator already filled in part of it by referring to “decent work,” (see an earlier post), it is highly probable that Dan’s radical politics really means more of the same social-reformist politics that has been circulating since the employer class went on the offensive in the 1970s. In essence, this radicalism wants to return to a renewed welfare state, with social housing, enhanced unemployment benefits, improved welfare benefits, reductions in austerity, reformed employment laws and so forth. Such a politics, however, has no intention, though, of questioning the legitimacy of the power of employers to dictate to workers. That is not on the agenda.

It certainly was not mentioned by Dan at all. Such is the radical space left untouched in the first talk in the series.

What’s left, Toronto? So far, social-reformism and the acceptance of the power of employers as a class.