Basic Income, Public Ownership and the Radical Left in the Wake of the Coronavirus Pandemic: A Critique

In a couple of posts, I criticized John Clarke’s opposition to a particular form of basic income. Mr. Clarke is a former leader of the Ontario Coalition Against Poverty (OCAP) in Toronto, Ontario, Canada.

Mr. Clarke continues to oppose any alternative universal  basic income scheme (see  ‘Pandemic Basic Income’ Gets It Wrong). He has ignored my criticisms, of course. As I pointed out in one of the posts, his opposition then turns into a social-democratic or social-reformist criticism; he ignores entirely his own observation that capitalist society necessary involves economic coercion, which forces workers to work for employers. At the time, he offered no alternative solution–other than an implicit return to the welfare state of the earlier post-war era. In his new post, he does offer an apparent solution. Before looking at his proposed solution, let us briefly look at his analysis of the problem of universal basic income.

Rather predictably, this situation has led to a bit of an upsurge in calls for a Universal Basic Income (UBI). To the liberal and left thinkers who promote this idea, it naturally makes particular sense to put it into effect at a time such as this. Of course, the last thing I want to oppose is the idea of emergency payments to those without adequate income, as COVID-19 impacts our communities. However, the ‘pandemic basic income’ solution of simply distributing state payments to everyone ($1,000 a month has been suggested) puts into exceptionally clear focus the basic problem with UBI. In more normal times, the scheme represents an ill considered effort, as I’ve argued elsewhere, ‘…to make its peace with (the) neoliberal order and accept a commodified form of social provision.’ It doesn’t challenge low wage precarious work or the degrading and privatizing of the social infrastructure but asks only for a basic payment, paid out of general revenues, and it is taken on faith that the adequacy of this can somehow be assured.

Mr. Clarke still remains riveted to proposals for a basic income that remain well within limits acceptable to employers. However, what if a movement for a minimum basic income of $3000 per month per household member (or even more) emerged? Why limit such a movement to $1000 a month? A universal income that threatens the existence of the supply of workers on the market would not only “challenge low-wage precarious work” but would challenge in many instances the very employer-employee economic structure. Mr. Clarke simply implies through his silence that such a movement is not feasible.

What is his alternative proposal, or his alternative solution?

A fight for no bailouts without public ownership is the only approach that makes any sense if the current period is not to become the greatest free ride for the rich in history and a prelude to austerity on an unprecedented scale.

Mr. Clarke’s reference to a move towards “austerity on an unprecedented scale” is likely true if experience from the 2008 economic crisis is to be our guide. However, the idea that bailouts tied only to “public ownership” is a sufficient solution to the problems that workers and communities face. This reference to “public ownership” or nationalization is a staple of the social-democratic left. How does public ownership solve the problem of a society out of control by those who work and live in it?

The view that public ownership or nationalization by itself implies that  the state is a neutral instrument which merely needs to be captured by the left in order for social problems to be solved. I criticized this view in another post  (see The Poverty of Academic Leftism, Part Seven: The Idealization of the Nation State or the National Government and Nationalization in the Wake of the Coronavirus Pandemic, Part Two).

Public ownership certainly addresses some of the concerns of workers and communities–specifically, the need for certain services without having to pay money for them. However, as long as the general process of producing our lives is out of our control, public ownership is bound to result in distorted and inadequate satisfaction of our needs.

This call for public ownership as a solution to the problems that we currently face is also proposed by other social democrats. For example, a social-democratic organization–Rankandfile.ca (“Canadian Labour News and Analysis from a Critical Perspective”) Emily Leedham refers to Tony Leah (ex-worker at GM Oshawa), who calls for public ownership of the plant:

While many workers are encouraged by GM’s decision, Leah says Green Jobs Oshawa will continue to push for public ownership of the plant.

“If it’s under public ownership, then it can be the basis for expanding and becoming an important manufacturing centre that provides a security of supplies for future crises,” he explains.“That can’t happen if it’s left up to a corporation that’s always driven by maximizing their own profit.”

In one sense, public ownership can overcome some of the problems associated with the limitations of private capitalist employers: production need not directly be produced for profit. However, if it is not produced for profit, what of its inputs? Public ownership exists alongside private corporations in a world market, which is the main driver of our lives

Neither Mr. Clarke nor Mr. Leah discusses at all the limitations of public ownership. They do not discuss the nature of the modern state and how it, magically, is to enable us to control our own lives. Should we not be discussing the adequacy of the modern state and public ownership or nationalization to enable us to control our own lives rather than assuming that it satisfies our needs?

When we look at the modern government or state, we see a political organization designed to ensure the continued maintenance of a society characterized by classes, specifically, on the one hand, the class that owns and controls the means for us to produce our lives–buildings, factories, computers, raw materials and so forth–the class of employers–and, on the other, those who work for them, the class of workers. Of course, in the real world it is more complicated, but such complications should not blind us to the basic class structure.

Werner Bonefeld (2014) in his Critical Theory and the Critique of Political Economy: On Subversion and Negative Reason, points out how the German philosopher G.W.F. Hegel characterized both modern “civil society” or a society characterized by an antagonism of individuals and modern classes, and it was this specific antagonism that required the modern political form (pages 166-167):

Hegel conceived of bourgeois society as antagonistic in character. It was because of its antagonistic character that it required a political form. He develops the necessity of the state from the innate character of bourgeois society. … He then argues that the division of labour crystallizes ‘into systems, to one or another of which individuals are assigned – in other words, into class divisions’.

These divisions are antagonistic in character as the development of bourgeois society leads to its polarization into antagonistic class relations. According to Hegel, the polarization of society into two opposing classes is an innate necessity of bourgeois society. It belongs to its constituted dynamic. As he sees it, bourgeois society ‘results in the dependence and distress of the class tied to [work]’. Dependence and distress are also entailed in the ‘inability to feel and enjoy the broader freedoms and especially the intellectual benefits of civil society’. Moreover, the expanded reproduction of bourgeois society results ‘in the creation of a rabble of paupers’ and the ‘concentration of disproportionate wealth in a few hands’. What to do ‘when the masses begin to decline into poverty’ and start to rebel? He rejects redistribution of wealth as this ‘would violate the principle of civil society’. He also rejects what today is called a policy of full-employment as contrary to its logic. Rather than solving the problem, it would intensify it. Thus, ‘despite an excess in wealth, civil society is not rich enough, i.e. its own resources are insufficient to check excessive poverty and the creation of a penurious rabble’. There is no economic answer to the polarization of society. Economy does not provide order, nor does it curb the ‘rabble’. In fact, ‘the inner dialectic of civil society . . . drives it . . . to push beyond its own limits’. How to keep the class antagonism within the limits of its bourgeois form? For Hegel, there is only a political answer. He saw the state as the political force of bourgeois society and charged it with containing the class antagonism.

The modern form of government, or the modern form of state, emerges simultaneously with the emergence of the class of employers and the class of employees or workers. To treat this modern political institution or modern political form as somehow capable of realizing our class interests as workers seems far fetched–and yet this is what the social-democratic left do when they call for public ownership or nationalization without further ado.

Note how the call for public ownership or nationalization is often not linked to the critique of the general class relation between employers and employees. It is seen as a solution to specific problems–a stop-gap measure needed to address specific problems that workers face. In such a situation, there is no challenge to the general power of employers.

What of the more general call for the nationalization of industry, means of communication and the like? This often has reactionary overtones since there is then an alliance between workers and employers within one country against workers and employers in other countries (Bonefeld, page 151):

The notion, then, of a ‘national economy’ makes little sense; it is a regressive concept that lends itself, at best, to ideas of national developmental methods associated with the theory and practice of economic nationalism or, at worst, and as Chapter 9 sets out, to the reactionary ideas and practices of nationalism that in reaction to world-market disturbances assert the regressive equality of the imagined national community as the rallying cry against the external enemy within. Of course, protectionism remains a very powerful device to protect a ‘national economy’. However, the national economy is neither independent from the world market nor does it merely exist in relation to the world market. Rather, the national economy subsists in and through the world market. Protectionism, then, amounts to a ‘measure of defence within free trade’.

The more general view that somehow public ownership leads to control over our lives and thus to freedom simply ignores the nature of the modern state.

Mr. Clarke’s solution to the problem of the current crisis idealizes the modern state. A call for a radical basic income, on other hand, pushes beyond the existing society by challenging on the one hand the power of the class of employers over the class of workers. As workers become more independent of the class of employers, they will be required to change the nature of the modern state since the latter is, by its very nature, designed to ensure their continued real subordination to the power of employers while making it appear that workers freely subordinate themselves to that power (Bonefled, pages 176-177):

Liberalism therefore does not demand ‘weakness from the state, but only freedom for economic development under state protection’.58 In this sense, the state of the free economy does not really govern over society. Rather, it governs through the individuals. There is no freedom without the order of freedom, and order is not only a matter of law. It is also a matter of morality. The order of freedom entails surveillance as a means of freedom. The premise of government is that economic ‘security is only to be had at a price of constant watchfulness and adaptability and the preparedness of each individual to live courageously and put up with life’s insecurities’. There really is only one freedom, and that is the freedom of the self-responsible economic agents who adjust to the price signals with the will of and for enterprise, the one buying labour power with the expectation of making a profit, the other selling labour power as the dispossessed producer of surplus value, seeking to make ends meet. That is, poverty is neither unfreedom nor is it primarily material in character.60 Rather, poverty expresses a moral form of deprivation that is characterized by a poverty of aspiration, requiring state action to transform the sellers of labour power from quarrelsome proletarians into citizens of private property. As such a citizen the worker personifies labour power, which she takes to the market to trade for a wage. She appears thus as an entrepreneur of labour power, always ready to compete for a contract of employment. She thus perceives poverty as an incentive to do better, sees unemployment as an opportunity for employment, prices herself into jobs willingly and on her own initiative and takes her life into her own hands, gets on with things, lives courageously and puts up with life’s insecurities and risks. For the neoliberals, unemployed workers are fundamentally entrepreneurs of labour power in transit, ‘floating’ from one form of employment to another. However, the sociological condition of the worker is based on ‘the transformation of labour power into a commodity, which results from the separation of the worker from the means  of production’. There is thus a ‘natural tendency towards proletarianisation’, and government is therefore required to counteract this tendency, time and time again, to secure the order of freedom. Government over society is government in and through society to ensure ‘the will’ for enterprise and labour market competition, integrating the free labourer into the capitalist relations of ‘coined freedom’ as a willing employer of labour power.

By labour power is meant what the worker sells to the employer. Labour power is what workers sell to employers, not their labour. Labour is what workers do when they work, and it is already controlled by employers when workers work.

Proletarianization here means the formation of workers into organized opposition to the class of employers (in other contexts it has a different meaning). The modern state not only attempts to monopolize the physical forms of violence (police, courts, prisons, military) but also attempts to forge the hearts and minds of workers so that they accept their situation as “entrepreneurs” or vendors of their labour power. In other words, it indoctrinates workers and their children into accepting their unfree status as somehow free.

Mr. Clarke’s assumption that public ownership, then, is a solution to the current crisis is conservative. It does not really address the class nature of modern society nor the class nature of the modern state.

Such is the nature of the social-democratic or social-reformist left.

The Call for the Conversion of the GM Oshawa Plant to a Facility for the Production of Medical Equipment in the Wake of the Coronavirus Pandemic

On April 19, 2020, on the Socialist Project website–Retool Oshawa GM Complex to Combat Covid19–there is a press conference by five individuals–Tony Leah (facilitator), Michael Hurley, Rebecca Keetch, Patty Coates and James Hutt–calling on the Canadian government (and the Ontario provincial government) to take over the GM Oshawa plant, which closed on December 19, 2019, in order to facilitate the production of medical equipment, including masks, ventilators, gloves and tests–all of which are in short supply due to the international competition for such equipment as well as the Trump government’s ban on exporting medical equipment into Canada.

Some of the following is taken verbatim from the five presenters without quotes in order to facilitate reading whereas some of it is paraphrased. After a description of what they say, I make some critical comments in relation to the call for public ownership and other issues.

Mr. Hurley, president of the Hospital Division of the Canadian Union of Public Employees (CUPE), emphasizes the urgency of the need for medical equipment for front-line workers. Medical equipment is in short supply to deal with the coronavirus pandemic,  and such equipment is vital if front-line workers are not to succumb to the virus themselves, as many paramedics did in New York.

Ms. Keetch, a former autoworker at GM Oshawa, calls on the Canadian and provincial governments to convert the closed-down GM Oshawa assembly plant into a publicly-owned site in order to use it to produce much needed medical equipment. She points out that other countries and companies have converted car factories into plants for producing medical equipment: the Chinese capitalist company BYD producing masks and hand sanitizers; GM having its workers produce ventilators at its Kokomo Indiana plant; and Ford Canada having its workers produce face masks at its Windsor Ontario plant. She justifies taking over the plant on the basis of putting social need in general before the interest of profit and the particular health and safety needs of workers who have been declared essential, such as hospital workers and grocery workers. There already exists a skilled workforce available to produce the needed medical equipment–the workforce of the former GM plant and the workers of its former suppliers.

Ms. Coates, president of the Ontario Federation of Labour (representing 54 unions and a million workers) indicates her support for the initiative and points out how the Conservative government of Doug Ford had reduced the health-care budget before the pandemic. Health-care workers, patients and community members need vital medical equipment that are currently lacking. She also supports a proposal for workers having 21 paid sick days so that they can stay home if sick without financial hardship and free healthcare for all regardless of immigration status. Workers themselves are calling for such protective measures.

Mr. Hutt does climate and labour justice with the Leap. On the Leap website, it says:

Mission

The Leap’s mission is to advance a radically hopeful vision for how we can address climate change by building a more just world, while building movement power and popular support to transform it into a lived reality.

Since our launch, we’ve drawn heavily on the ideas and networks of our co-founders, Naomi Klein and Avi Lewis.

Mr. Hutt notes that Justin Trudeau, the Canadian prime minister, called for manufacturing companies to retool to produce medical equipment, but it is not enough to rely on the goodwill of CEOs and manufacturers to produce what is needed at this time. There is a textile manufacturer, Novo Textile Co, based in Coquitlam, British Columbia, that has ordered machinery from China in order to produce masks, but it has not yet received the equipment. What we need now is fast production of medical equipment.

This shows that we need the government to play a strong role in ensuring that we increase production of medical equipment in order to meet the demand for medical supplies in Canada. This is where GM Oshawa can play a role. The auto assembly plant is one of the largest plants in North America, and yet 90 percent of its capacity is currently going to waste. Furthermore, there are available 5,000 workers who lost their jobs directly through the closing of the factory and 10,000 more workers who, indirectly, became unemployed.

The workers should be hired back in good, well-paying unionized jobs. After all, it is they who produce the value and services needed  by society.

What we need is a people’s bailout, which includes both workers and the environment, instead of a bailout of corporations and banks. The people’s bailout contains three components. Firstly, it responds to the immediate life-and-death needs of front-line workers and by all those whose lives have been turned inside out by the pandemic. Secondly, it helps to recover our lives, but in a new way, through government stimulus in creating a zero-carbon and full employment economy. Thirdly, it helps to reimagine our society. The economy must be transformed to ensure that safety and stability are the priorities for all and not just the 1%.

Nationalizing the plant, or converting it into public ownership, would create 13,000 unionized, well-paying jobs to produce the things that we need, initially in the first component or phase of producing medical equipment and, in the second phase, the production of electric vehicles for, for example, Canada Post, the single largest user of vehicles in Canada, and electric buses across Canada.

The third component or phase would involve the creation of a more just society for all, which entails public ownership of the plant, the provision of production facilities in Canada that would involve internal production of medical equipment throughout Canada.

Mr. Leah then points out that there is a petition that viewers of the Conference can sign, which will be sent to Premier Ford of Ontario and Prime Minister Trudeau (Petition–Order GM to Make Needed PPE).

There was then a question and answer session, with Valerie McDonald (? unsure if this is the name) asking the question of how quickly could the Oshawa plant fully employ the former workforce, whether directly or indirectly, and use the plant to capacity. Another question by Kate (I could not make out her last name) was who would paid for the retooling, the federal or provincial governments, and how much would it cost and how long it would take. Mr. Hurley pointed out that China set up factories within two weeks for the production of fiber masks. Given that the Canadian governments have adopted emergency powers, they could start producing almost immediately. As for the cost, currently Canada is paying almost three times the normal price for medical supplies on the open market; consequently, there would actually be considerable savings by shifting to local production. Ms. Leetch added that in the United States, in Warren, it took about two weeks to be converted and a total of a month for thousands of masks to be produced. She also points that, in relation to costs, it would be necessary for the government to provide aid for retooling. Ms. Coates adds that we need to think about the future beyond this pandemic: we need to have the capacity to produce ventilators and other medical equipment. As for the cost, the issue of cost has little to do with the issue since lives are priceless, and the cost of retooling to save lives not just now but also for the foreseeable future–since there will still be demand for personal protective equipment for some time to come even in the case of the current pandemic. We need a permanent solution to the problem and not a temporary one.

Another couple of questions were: The federal government had no problem purchasing a U.S. owned pipeline company, but now that such a company will be idled, why would the federal government not step in and purchase the plant from GM and retool it? A follow-up question is: Is the plant too large, and can it be adapted to produce medical equipment and other things [unclear if this is the exact question]. Another question is whether the machinery already exists in the plant or must it be imported?

Mr. Hurley indicated that neither the provincial Ontario government nor the federal government has responded in an urgent fashion to the pandemic by forcing employers to retool to produce medical equipment despite hundreds and even thousands of Canadians dying due to the pandemic. It is time that the Trudeau government institute wartime measures to force employers to retool in order to save lives by producing tests, ventilators and other medical equipment that are fundamental to the protection of workers.

Ms. Coates added that not only healthcare workers do not have sufficient protection but also grocery workers, bus drivers and municipal workers are still working and need to be protected during this pandemic.

Ms. Keetch points out that what they are demanding is that the government order production because that will then allocate resources that permit things to happen. As for the plant being too big: not really. We can use whatever space is necessary at the plant right now to address immediate needs. In relation to parallels between the federal government purchasing a pipeline company and purchasing the GM Oshawa plant, but the issue now is to prioritize what needs to be done, and the priority should be to protect Canadian citizens, and both money and the political will need to be found to do that. She does not know whether the machinery is on site, but she does know that Ontarians are experts in manufacturing and have been for decades.

For closing remarks, Ms. Keetch pointed out that the pandemic is an interdependent phenomena, with both the public coming into contact with workers and workers coming into contact with the public, so that both need to protect each other through the use of protective equipment. The use of present resources to meet this need is a common-sense approach.

Tony Leah stated that what happened in the United States in Kokomo and other places in the United States, when the government ordered production, shows that medical equipment can be relatively quickly produced, within a week or two, depending on the complexity of the equipment. He judges GM’s inaction to be shameful, especially since GM took $11 billion in Canadian bailout money during the last economic crisis.

As an emergency measure, it makes sense to convert the idle GM Oshawa plant into a plant where workers could produce much needed medical equipment. As a longer-term measure, it also makes sense to convert the idle plant into a permanent facility for the production of medical equipment in order to prevent any future shortage of medical supplies. Alternatively, once the pandemic has past, it could make sense to convert the plant  into an electric-vehicle factory as originally planned.

From the point of view of the workers who lost their jobs when GM Oshawa closed the plant, it also makes sense to try to be employed again; they could resume the same kind of life that they used to live rather than joining the unemployed.

I did sign the petition, but mainly because it makes sense to pressure the governments to convert the plant into a factory to deal with the pandemic crisis. Given the urgency of the situation, however, there could at least have been reference to seizing the plant by the workers. Seizing the plant could easily have been justified as necessary in order to save lives.

Such seizure, it seems, is probably impractical for a number of reasons. Firstly, the workers themselves have probably been demobilized (moved on to other jobs if they can find them), or they may have abandoned any hope of working at the plant again; others may have accepted a retirement package. Secondly, even if they seized the plant, financing for retooling seems to be beyond their collective means–hence, the need to rely on the government for funding.

However, at least the possibility of seizing the plant and the legitimacy of doing so should have been raised in order to highlight the discrepancy between the real needs of people, the lack of action by the governments and the class power of employers. After all, in normal times, the needs of those who cannot pay are neglected, and the needs of workers for safe working conditions are often neglected as well. Focusing exclusively on what is practical in the situation resulted in another lost opportunity to open up a conversation about the legitimacy of the current economic and political structures.Rather than using the situation as an opportunity to at least point out the legitimacy of seizing the plant–they focus exclusively what is immediately practical. Such “realism” is hardly in the best interests of the working class and of the community.

Mr. Hurley is the person who comes closest to showing such discrepancy, but he limits his criticism to the present governments of Ontario and Canada rather than to the limits of an economy characterized by a dictatorial structure and a modern state characterized, on the one hand, by merely formal equality between “citizens” that often assumes a repressive form (by the police and the courts, for example) and, on the other, a hierarchical dictatorship characteristic of the employer and employee relation within government or the modern state.

The presenters did not use the situation as an opportunity to link the particular–and urgent–problem of a society capable of producing needed medical equipment–to the general problem of a society that excludes not only the needs of people for various goods and services–but also the needs of workers to control their own working lives.

It is true that Mr. Hutt does refer to a third component of a people’s bailout–a reimagined society–but it is more like a social-democratic reimagining more than anything else–and it is utopian. To call for a society that is safe would require the elimination of the power of employers as a class. After all, workers are means for the benefit of employers, and as means their safety is always in jeopardy (for the necessary treatment of workers as means for the benefit of the class of employers, see The Money Circuit of Capital; for the issue of safety, see for example Working for an Employer May Be Dangerous to Your Health, Part One).

As for Mr. Hutt’s call for stability, that too would require the elimination of the power of the class of employers since investment decisions are made for the purpose of accumulating more profitable capital, and such an accumulation process often leads to crises in production and exchange (through overproduction and hence unemployment. Employers also introduce machinery into workplaces, reducing the demand for workers. Since workers are the basis for profit, though, the situation is again ripe for an economic crisis since the production of such a profit requires increasing the exploitation of workers who do work while keeping down their wages through increasing unemployment–overwork for those who work and little work for the unemployed.

Furthermore, given the repressive nature of the employers (see, for example, Employers as Dictators, Part One) and the government (see for example Socialism, Police and the Government or State, Part Two), many peoples’ lives are hardly experienced as stable.  Mr. Hutt’s reference to stability rings hollow.

Does Mr. Hutt really believe in the elimination of a class of employers? The elimination of classes would be what is needed to live a safe and stable life within the limits of the natural world and the limits of our own created world, He nowhere says so. In fact, it is probable that Mr. Hutt believes in the reconstruction of a welfare state–capitalism with a human face. His reference to “good, well-paying unionized jobs” is what is probably the aim–“decent work,” “a fair contract,” and “free collective bargaining.” I have criticized these ideas in earlier posts, so readers can refer to them in order to see their limitations.

Mr. Hutt’s reference to a zero-carbon economy also fails to meet the problem of the infinite nature of the nature of the capitalist economy and the limited earth on which we live. Even if the capitalist economy moves to a zero-carbon economy (free of the use of fossil fuels), the infinite nature of capitalist accumulation would undoubtedly continue to rape the planet (see The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One).

One final point to reinforce the previous post: nationalization and reliance on the modern government and state, typical of the social-democratic left, are hardly democratic. For real democracy and not just formal democracy to arise, it would be necessary to dismantle the repressive nature of the modern government or state. As George McCarthy (2018) remarks, in his book Marx and Social Justice Ethics and Natural Law in the Critique of Political Economy, page 279:

Following closely the military and political events surrounding the [Paris] Commune, Marx recognised very quickly that some of his earlier ideas about the socialist state contained in the Communist Manifesto (1848) were no longer relevant: ‘[T]he working class cannot simply lay hold of the ready-made state machinery, and wield it for its own purposes’.18 The state is not an independent and neutral political organisation capable of yielding power for one class and then another; it is not simply an issue of gaining control over the state and then implementing economic and social reforms. Rather, the republican state, utilising its political and legal apparatus, is an oppressive mechanism of social control preserving the class interests of the bourgeois economic system, and this, too, would also have to be restructured. Continuing arguments from On the Jewish Question (1843), Marx contends that the role of the French state was to maintain the economic and political power of the propertied class: ‘[T]he state power assumed more and more the character of the national power of capital over labour, of a public force organised for social enslavement, of an engine of class despotism’. Therefore, with this in mind, the Commune’s first actions were to dismantle the various component parts of the French state, including the army, police, bureaucracy, clergy, and the judiciary. Thus an entirely new form of government would have to be constructed that conformed to the socialist ideals of human emancipation and political freedom.

To talk of “democratic public ownership” in the context of a sea of economic dictatorship both within and outside the modern government or state stimulates high expectations that are bound to be dashed in the real world.

The earlier call by Green Jobs Oshawa was to nationalize the plant and to produce electric vehicles may seem also to make sense, but I will address this issue in another post in reference to the Socialist Project’s pamphlet Take the Plant–Save the Planet: The Struggle for Community Control and Plant Conversion at GM Oshawa. 

Addendum:

The above post was posted at 1:00 a.m., Friday, April 24. In the afternoon, it was announced that the GM Oshawa plant would indeed be retooled to produce a million masks a month for essential workers (see GM Oshawa plant will now produce millions of masks following worker mobilization: CUPE Ontario). The federal Trudeau government and GM signed a letter of intent to that effect. The response from one of the unions that represent front-line hospital workers–the Canadian Union of Public Employees (CUPE):

 “We mobilized our community through a petition and public events and it goes to show that collective action works. This unprecedented victory is now an opportunity to push the Ford Conservatives to also retool private companies to produce what Ontarians need.”

To produce what Ontario needs: What does that mean? They are probably  referring to the production of needed medical equipment:

“The Ford Conservatives need to learn from this example and order the private sector to ramp up production of these supplies – or retool factories if necessary,” said Fred Hahn, President of CUPE Ontario, highlighting feeder plants and other manufacturing facilities across the province. “They’ve had no problem unilaterally issuing orders that override the freely-negotiated collective agreements of front-line workers. They now need to use their power to order the immediate production of PPE for everyone who needs it.”

The use of the abandoned GM Oshawa plant for the production of medical equipment is indeed a victory–this is vital if frontline workers are to be protected from the coronavirus.

It should be noted, though, that this victory is probably a short-term victory. The urgent need for masks for frontline workers, as I pointed out above, could have been used to justify at least theoretically the seizure of the GM Oshawa plant by the workers who used to work there. Since the call for using the GM Oshawa plant and the retooling needed are separated from any reference to the legitimate right of the workers to seize the plant, when the need for the production of masks no longer exists, the plant will probably revert to its former status as an abandoned capitalist factory. The workers will have a difficult time justifying the continued maintenance of production at the plant given their short-term victory. Indeed, given that the form of the announcement is a letter of intent between the federal government and GM, shifting production to masks, in the eyes of many, will probably be viewed as a result of actions by government and employer rather than by workers and unions.

Another problem is that it is unclear who will be rehired to produce the masks, and how many will be rehired.

The urgency of the need for medical equipment is short-term–but it should have been used for long-term gains. Instead, an opportunity for shifting public opinion towards the legitimization of the seizure of workplaces by workers has been squandered.

The Poverty of Academic Leftism, Part Seven: The Idealization of the Nation State or the National Government and Nationalization in the Wake of the Coronavirus Pandemic, Part Two

In a previous post, I pointed out how Professor Noonan idealized the nation state. This post will expand on this view by showing that Professor Noonan’s proposal to nationalize  the economy by means of the modern state does the same thing–idealizes the modern state.

Professor Noonan makes the following claim:

The alternative is to use this crisis as a basis of legitimacy for the state– under the control of democratic political forces acting in our shared life-interest– to assume control over the productive basis of society and re-orient production to serving life-needs. Nationalization can prefigure democratic socialization, and democratic socialization can re-focus economic life on collective work to provide each and all that which we really need, and freeing our time for the– real-life, multidimensional– experiences, actions, and interactions that make life worth fighting for, protecting, and living.

The call for nationalization of industry by means of the modern state has been typical of many leftists for at least a century and a half. Marx, before, during and a couple of years after the 1848 revolutions, called for the centralization or the appropriation of the conditions of life (factories and other productive facilities, banks, utilities and so forth) by the modern state. Ironically, Professor Noonan, who considers that his view is superior to the Leninist view of the modern state, follows in Leninist footsteps. From Paul Thomas (1994), Alien Politics: Marxist State Theory Retrieved (New York: Routledge), pages ix-x:

Since the 1960s, fierce but turgid [pretentious or windy or laboured or strained] have raged among scholars about Marxist state theory. Participants in these debates were in some respects bitterly opposed. Yet they tended, by and large, to agree on one basic assumption: that the state, or the state as Marx thought of it, is class determined or shaped by the play of class forces outside its boundaries. Disagreements duly proceeded about what this ruling class theory means. (It might mean, for instance, that the state is the instrument of the capitalist class, or that it is an agency structurally tied to ruling class interests or imperatives.) But the theory, in the main, was itself accepted–accepted, in my view, rather too readily and uncritically.

But what did its acceptance involve? It involved, in practice, the often impatient conflation or running-together of understandings of the state that are, in principle, separable: that of the state as being class-determined, and that of the state as an “object,” an instrument, a “finished thing” that is capable of being “seized” and turned to good account once it is seized by the right hands. Theorists–among them Marx himself, for a while, as well as Lenin–can be seen to be given to such impatience under the impress of revolutionary urgency.

But by now, such impatience can be seen to have invited dangerous illusions about what can be accomplished by seizing the state. Seizure of the state can be seen, for that matter, as a dangerous illusion in its own right.

The modern state, as a separate institution, is itself characteristic of the nature of a society dominated by a class of employers and is hardly something external to it. From Thomas, page x:

Because common action and democratic potential find no place in civil society, these are alienated and represented away from its orbit.  Common action and collective concern, which in civil society are subsumed beneath self-assertion and the play of competing self-interests, are fused and concentrated at the level of the state, which arrogates them to itself.

The modern state is similar in some respects to modern money. Modern money emerges as a monopolizer by being the only social object that is immediately exchangeable. The modern state is a monopolizer of the so-called public sphere by being the only social object that immediately constitutes political subjects (citizens). From Geoffrey Kay and James Mott (1982), Political Order and the Law of Labour, page 6:

The political nature of money is evident in its appearance —it always bears the head of the prince, or some other emblem of state. On the side of subjectivity the same applies: just as money is immediately exchangeable as a universal object whose credentials do not have to be chocked, so every individual is accepted at face value as a persona bona fide. Money is accepted because it is a universal objcct on account of its being political: the individual is universally recognised because he is a political subject – a citizen.

Just as money is a production relation despite being external to the production process, so too is the modern state a production relation despite being external to the production process.

The call for nationalization and state centralization independently of working-class consciousness of its own general interests may be merely the expression of the immediate interests of workers under specific circumstances without leading anywhere except the absorption of such nationalization into the folds of the capitalist system itself; in other words, such nationalization may be co-opted by the modern state and by certain sections of the class of employers.

Isabelle Garo (2000), Marx: Une Critique de la Philosophie  argues that Marx did oppose, at least later in life, state centralization as a socialist measure (I give my rather freely translated version, followed by the original French. If anyone has a better translation, feel free to make a comment), pages 233-234:

Marx insists on the fact that the Commune [the Paris Commune, an organization that arose in 1871 in the face of, on the one hand, the defeat of France by Prussia during the Prussian-French war and, on the other, the attempt by the French class of employers to take away the arms held by the National Guard in Paris] aims in the first place the emancipation of work. It is the established unity between political tasks and economic organization, “the political form finally found that permitted the realization of the economic emancipation of work.” From this point of view, the idea of a separated political instance is indeed an illusion that masks the functional subordination of the State to the mode of production to its criteria and to its needs. The overthrow of this logic is not the temporary reuse of the State, followed by its suppression: as functional representation, it [the State] concentrates in itself the nature and contradictions of the economic and social formation in general. The withering away of the State is a radical redefinition of politics, its reappropriation by the associated producers as an instance of democratic decision-making and rationalization of a production that cannot possess in itself its own ends. Said in another way, the valorization of value [the increase of money for the sake of the increase of money by way of using human beings and their conditions of life as means to that end–see The Money Circuit of Capital)  and its absurd spiral must cede place to the redefinition of social and individual activity. Political representation, modified in its definition, is turned upside down in its function: far from being a means for dispossession that makes universal suffrage the right to designate who are to be our  “masters,” is the occasion of a specifically political action precisely because it concerns local tasks of organization.

Marx insiste sur le fait que la Commune vise en premier lieu l’émancipation du travail. Elle est l’unité instaurée entre tâches politiques et organisation économique,
« la forme politique enfin trouvée qui permettait de réaliser l’émancipation économique du travail79». De ce point de vue, l’idée d’une instance politique séparée est bien une illusion qui masque la subordination fonctionnelle de l’État au mode de production à ses critères et à ses urgences. Le renversement de cette logique n’est pas la réutilisation momentanée de l’État, suivie de sa suppression: en tant que représentation fonctionnelle, il concentre en lui la nature et les contradictions de la formation économique et sociale dans son ensemble. Le dépérissement de l’État est une redéfinition radicale de la politique, sa réappropriation par les producteurs associés comme instance de décision démocratique et de rationalisation d’une production qui ne saurait posséder en elle même ses propres finalités. Autrement dit, la valorisation de la valeur et sa spirale absurde doivent céder la place à la redéfinition de l’activité sociale et individuelle. La représentation politique, modifiée dans sa définition, est retournée dans sa fonction : loin d’être le moyen d’une
dépossession qui fait du suffrage universel le droit de désigner ses «maîtres3», elle est l’occasion d’une action spécifiquement politique, précisément parce qu’elle
concerne des tâches locales d’organisation.

This does not mean that there would be merely local cooperatives; there could be a federation of cooperatives that united not just economic functions but political functions, under the rule of the producers and the local communities and, at the same time, connected to each other in a cooperative national structure initially (see  the description of a possible scenario in the series Socialism, for example,  Socialism, Part Six: What It May Look Like, or Visions of a Better Kind of Society Without Employers). Universal suffrage would be preserved and control of the executive (state personnel, election of the judicature and other changes in the nature of the state would be required. From Richard Hunt, The Political Ideas of Marx and Engels: Classical Marxism, 1850-1895, volume 2, page 133:

By way of contrast Marx emphasized that “nothing could be more foreign to the spirit of the Commune than to supersede universal suffrage by hierarchic investiture.”18 Not only were judges to be elected but, most of all, administrators at all levels. Marx had always made executive power his prime concern and set forth its radical democratization as the foremost political objective of any popular movement. Thus in the First Draft he declared that the Communards had adapted universal suffrage “to its real purposes” when they used it to choose “their own functionaries of administration and initiation.”19 Such functionaries and indeed all the elected public servants of the Commune would also work under much closer control by their electors, because of the additional safeguards encountered but infrequently in bourgeois democracies–…the right of recall, and open executive proceedings with subsequently published transcripts. Marx had no patience with any institutional devices, checks, or balances whose purpose was to curtail popular influence; he favored a maximum of mass participation in and control over all branches of government. “Freedom,” he would write four years later, perhaps thinking of the Paris Commune, “consists in converting the state from an organ superimposed upon society into one completely subordinate to it, and today, too, the forms of state are more or less free to the extent that they restrict the ‘freedom of the state.”’20 Just as bourgeois democracy could be judged much freer, by this yardstick, than Bonapartist despotism, so the Commune could be judged much freer than bourgeois democracy.

Professor Noonan’s implicit assumption that nationalization is somehow socialist definitely needs to be criticized. From Hunt, volume 2, pages 226-227:

Marx made it clear that such leisure included at least the following: (1) time to be idle (rest, etc.); (2) time for artistic endeavor; and (3) time for scientific pursuits. Most science was done in leisure time during Marx’s day, including the social “science” he did himself. A continuing development of scientific knowledge would have obvious return benefits in rationalizing the processes of production. The growth of leisure time in general would produce a more knowledgeable and versatile work force: “Free time- which is both idle time and time for higher activity- has naturally transformed its possessor into a different subject, and he then enters into the direct production process as this different subject. ” 34 Marx’s last commentary on these matters is to be found in the Critique of the Gotha Program, written in 1875, a decade after the third volume of Capital. Here we find the striking passage which confirms that the radical vision of The German Ideology remained consistent in Marx’s mind to the end-under communism work will be attractive (“life’s prime want”), and the division of labor will be totally overcome:

In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life’s prime want; after the productive forces have also increased with the all-round development of the individual, and all the springs of cooperative wealth flow more abundantly- only then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs.

For Marx and Engels, then, communism was never equated simply with nationalization of the means of production. From beginning to end, their writings stress the transcendence of the division of labor as integral to the classless society. It was not some queer, extraneous, or easily discardable part of their system of ideas. It was the division of labor, after all, that first created private property- not vice versa- along with social classes, the state, the antagonism between the sexes, alienated labor, and the separation of town and country. If the dividing of labor was original sin, its Aufhebung [its elimination and the simultaneous nurturing of the positive aspects that have emerged on its basis–such as increased productivity of labour] alone would mark the redemption of mankind. Nationalization of the means of production, in and of itself, overcomes none of the aforementioned evils, but only enhances the power of the state, making it a single giant monopoly corporation. Later generations of Marx’s followers, Communists and social democrats alike, increasingly misunderstood, trivialized, or simply forgot this aspect of the masters’ teaching, surrounded as they were by a world in which occupational specialization gained ground every day in every sphere, quite regardless whether the local economic system was communist, socialist, or capitalist. The relentless dividing of labor tasks seemed as inevitable as death and taxes. Only quite recently have some radicals begun to reconsider this whole issue seriously.

If we inquire where Marx got the idea of transcending the division of labor, at one level it appears to be his reinterpretation of the general liberal call for “the free development of the individual personality,” especially in its specifically German incarnation as the ideal of Bildung [education in the widest sense]– maximum cultivation of the talents of the individual, especially the “higher” faculties and sensibilities, into a well-proportioned whole. Marx reinterpreted this ideal first by reminding the liberals that the free development of the individual personality does not occur on a desert island: “Only within the community has each individual the means of cultivating his gifts in all directions; hence personal freedom becomes possible only within the community.” But mainly he democratized the liberal ideal which had always tacitly presupposed the existence of “lower orders” to look after the “lower” needs of each free personality. By transcending the division of labor in society at large, “the genuine and free development
of individuals ceases to be a mere phrase. ” In the renowned words of the Manifesto, “the free development of each is the condition for the free development of all. ” 38 Of course the Bildung ideal itself was based on Renaissance models and above all on the Greek ideal of personal well-roundedness, suggesting once again the extent of Marx’s underlying debt to the values of classical antiquity [ancient Greece and Rome].

This does not mean that there may be no role for parliamentary institutions in some form. Universal suffrage and some form of central national institution would probably be necessary, and nationalization of key industries may make some sense–but in order for universal suffrage to be an expression of working-class democracy, the working-class itself would have to engage, consciously, in opposing the class of employers. From Hunt, volume 2, page 70:

In 1852 Marx wrote of universal suffrage, as Engels had done so often before, as the very touchstone of proletarian victory in Britain:

Universal Suffrage is the equivalent for political power for the working class of England, where the proletariat forms the large majority of the population, where, in a long, though underground civil war, it has gained a clear consciousness of its position as a class [my emphasis], and where even the rural districts know no longer any peasants, but only landlords, industrial capitalists (farmers) and hired laborers. The carrying of Universal Suffrage in England would, therefore, be a far more socialistic measure than anything which has been honored with that name on the Continent. Its inevitable result, here, is the political supremacy of the working class.

It is possible that a dual movement of the working class, becoming conscious of itself as a class, could institute nationalization of key industries while simultaneously engaging in the restructuring of the modern state to link political and economic change that expresses its own interests.

Such a situation, though, requires that the working-class becomes conscious of itself as a class. Professor Noonan provides no evidence that this is the case. In fact, part of the purpose of this blog is to demonstrate in many ways that this is not the case–ranging from the silent indoctrination that working-class students receive for at least 12 years in schools (see, for example,  A Case of Silent Indoctrination, Part One: The Manitoba History Curricula and Its Lack of History of Employers and Employees) to the claim by the social-democratic left that there is such a thing, within an economic, political and social system characterized by the class of employers, as “fairness, a “fair share” or “fair contract” for workers (see, for example, The Canadian Labour Congress’s Idealization of the Collective-Bargaining Process.

What is ironic in Professor Noonan’s position is that he accuses some leftists of being Leninists, which he implies is out-of-date. I had a debate–if you can call it that–some time ago. In his reply, he stated:

“I think we need to forget about revolution/reform as a fundamental and meaningful political difference today and start to think about working out a common agenda of structural change that can take us from where we are to a democratic life-economy (where we need to be) The social-reformist left has problems, but the ‘revolutionary’ left suffers from the problem of not existing as in any sense a meaningful political force, and has no model (save archaic Leninist ideas) about how to build. If nineteenth and early twentieth century ideas about revolution were going to work they would have worked 100 years ago. Historical materialism requires new political thinking in new times. The organizational forms that will attract and unify people have yet to be found. Most times I worry they never will be.

Professor Noonan, as a self-proclaimed member of the social-reformist or social-democratic left, has more in common with the Leninist view of the modern state than he realizes. (I leave it open whether Lenin in theory advocated a centralized socialist state. Thomas argues that he did whereas Kay and Mott seem more sympathetic to his views of the modern state.)

Instead of preparing the working-class for real control over its own lives by criticizing the inadequacies of the modern state, Professor Noonan engages in utopian fantasies about the magical world of nationalization.

The immediate question is what can workers and their representatives do to prevent the capitalist state from obliging them to return to work for employers when it is still unsafe to do so. The next question is, once the coronavirus pandemic recedes, what can be done to prevent a rush by the class of employers and the modern state or modern government–a purely political state that arises with the ripping of the conditions of life of workers from the control of the workers themselves–from foisting payment of the crisis on the backs of workers, the unemployed, immigrants and the disabled. These diverse groups of civil society, if they are to resist this and to win more than just temporary gains, need to begin to organize for the overthrow of the alienated, exploitative, oppressive and coercive state or government, along with the alienated, exploitative, oppressive and coercive class of employers–a movement which Professor Noonan considers to be outdated. After all, the magic words “democratic” and “nationalization” take the place of real democracy, with a class conscious working-class explicitly fighting to end the alien power of the modern state and the alien power of the class of employers.

The claim that the nation state can “override capitalist market forces” fetishizes the nation state by treating the nation state as somehow external to those market forces. But how does the nation state override market forces? By, force? The nation state as a focal point of political power is hardly independent of capitalist market forces. Just as money  is money only because commodities do not have the capacity of being exchangeable in their immediate form, so the nation state has the power that it does because citizens do not have the capacity to represent their own interests except in an alienated form, via the alienated state, a state that is representative in an atomized fashion that dissolves class relations into the homogenous situation of being a “citizen.”

Professor Noonan makes the further following claim:

As powerful as capital is, it has proven no match for the virus, on the one hand, and state power, on the other. The danger, of course, is that the state is currently acting under emergency powers, but will revert to its standard function of enframing and protecting capital, if we let it. The alternative is to use this crisis as a basis of legitimacy for the state– under the control of democratic political forces acting in our shared life-interest– to assume control over the productive basis of society and re-orient production to serving life-needs.

Professor Noonan’s analysis is rather vague. Firstly, Professor Noonan does not specify how “capital … has proven no match for state power.” Perhaps he means closing borders to non-citizens and non-permanent residents. Such a situation, however, has existed for a long time, and control of “foreigners” became more systematic with the emergence of passports (which did not exist in any systematic way for some time despite the existence of the capitalist state and a class of employers)–and such a move is hardly independent of the power of capital or of employers; passports are a means of control over workers throughout the world (see an earlier post What’s Left, Toronto? Part Six).

Secondly, to achieve their goals (in the case of private corporations, profit, and in the case of government organizations, their mission statement and the overall operations of government), employers will and must use workers; employers are dependent on workers if they are to remain employers. If employees start dying on mass, the interests of employers are jeopardized. Professor Noonan simply ignores this basic fact of “capitalism.” The apparent coincidence of the interests of employers and employees in this case is just a temporary one; once the crisis has abated, the state will no doubt “evert to its standard function of enframing and protecting capital.”

The Poverty of Academic Leftism, Part Six: The Idealization of the Nation State or the National Government in the Wake of the Coronavirus Pandemic, Part One

Professor Noonan, a self-declared historical materialist and teacher of Marxism, continues to argue a political position that ignores the reality of capitalist society. In his post Back to the Magic Mountain, he argues the following:

No one should fetishize the nation state, but it remains the dominant form of political society and, when it chooses to, it can marshal the power to override capitalist market forces. The dependence of human life on market forces has been suspended in large parts of the world during this crisis. The state has effectively taken over the direction of economic activity and positioned itself as the guarantor of people’s income. We have been re-acquainted with a truth that capitalism works hard to suppress: our lives depend upon collective labour and nature, not market forces. This truth has to become the basis for post-pandemic reconstruction.

Professor Noonan’s opening part of the first sentence, “No one should fetishize the nation state,” is supposed to prevent any criticism of what follows. Professor Noonan, he implies, does not fetishize the nation-state.” The use of the conjunction “but” then is used to do just that.

In a Canadian context, Professor Noonan, in his statement: “The dependence of human life on market forces has been suspended in large parts of the world during this crisis. The state has effectively taken over the direction of economic activity and positioned itself as the guarantor of people’s income,” can refer to the provisions for workers to receive $500 a week for up to sixteen weeks through the Canadian Emergency Response Benefit (CERB), a federal program. From workers’ point of view, such economic relief is of course welcome–if they qualify (they must have worked a certain number of hours, for example–although some of the gaps are being addressed).

Professor Noonan forgets that workers are means to employers’ ends (see The Money Circuit of Capital). Consider things that you own, use and need. Do you take care for them in some way? They are means to the end of your goals, but you do care about preserving their existence in order to achieve your goals. Professor Noonan idealizes (and fetishizes) the modern state. The Canadian federal government, like other governments, instituted income policies because the workers could not temporarily work for employers–and because they lack their own independent means by which to produce and hence to live.

Employers need employees in one way or another if they are going to continue to be employers. The modern state intervenes in the capitalist market, if necessary, because that market needs the continued existence of workers as employees. The dependence of employers on employees can be seen from the following issue that arose in the 1860s in England in relation to the possible emigration of skilled English workers (from Karl Marx, Marx-Engels Collected Works, volume 35, Capital:

The reproduction of the working class carries with it the accumulation of skill, that is handed down from one generation to another.1′ To what extent the capitalist reckons the existence of such a skilled class among the factors of production that belong to him by right, and to what extent he actually regards it as the reality of his variable capital, is seen so soon as a crisis threatens him with its loss. In consequence of the civil war in the United States and of the accompanying cotton famine, the majority of the cotton operatives in Lancashire were, as is well known, thrown out of work. 471 Both from the working class itself, and from other ranks of society, there arose a cry for State aid, or for voluntary national subscriptions, in order to enable the “superfluous” hands to emigrate to the colonies or to the United States. Thereupon, The Times published on the 24th March, 1863 [p. 12, col. 2-4], a letter from Edmund Potter, a former president of the Manchester Chamber of Commerce. This letter was rightly called in the House of Commons, the manufacturers’ manifesto.2′ We cull here a few characteristic passages, in which the proprietary rights of capital over labour power are unblushingly asserted.

“He” (the man out of work) “may be told the supply of cotton workers is too large … and … must … in fact be reduced by a third, perhaps, and that then there will be a healthy demand for the remaining two-thirds…. Public opinion … urges emigration….The master cannot willingly see his labour supply being removed; he may think, and perhaps justly, that it is both wrong and unsound…. But if the public funds are to be devoted to assist emigration, he has a right to be heard, and perhaps to protest.”

… He [Mr. Potter] then continues:

“Some time …, one, two, or three years, it may be, will produce the quantity…. The question I would put then is this — Is the trade worth retaining? Is it worth while to keep the machinery (he means the living labour machines) in order, and is it not the greatest folly to think of parting with that? I think it is. I allow that the workers are not a property, not the property of Lancashire and the masters; but they arc the strength of both; they are the mental and trained power which cannot be replaced for a generation; the mere machinery which they work might much of it be beneficially replaced, nay improved, in a twelvemonth.’: Encourage or allow (!) the working power to emigrate, and what of the capitalist?”a “…Take away the cream of the workers, and fixed capital will depreciate in a great degree, and the floating will not subject itself to a struggle with the short supply of inferior labour…. We are told the workers wish it” (emigration). “Very natural it is that they should do so…. Reduce, compress the cotton trade by taking away its working power and reducing their wages expenditure, say one-fifth, or five millions, and what then would happen to the class above, the small shopkeepers; and what of the rents, the cottage rents…. Trace out the effects upwards to the small farmer, the better householder, and … the landowner, and say if there could be any suggestion more suicidal to all classes of the country than by enfeebling a nation by exporting the best of its manufacturing population, and destroying the value of some of its most productive capital and enrichment…. I advise a loan (of five or six millions sterling), … extending it may be over two or three years, administered by special commissioners added to the Boards of Guardians in the cotton districts, under special legislative regulations, enforcing some occupation or labour, as a means of keeping up at least the moral standard of the recipients of the loan … can anything be worse for landowners
or masters than parting with the best of the workers, and demoralising and disappointing the rest by an extended depletive emigration, a depletion of capital and value in an entire province?”

Potter, the chosen mouthpiece of the manufacturers, distinguishes two sorts of “machinery”, each of which belongs to the capitalist, and of which one stands in his factory, the other at night time and on Sundays is housed outside the factory, in cottages. The one is inanimate, the other living. The inanimate machinery not only wears out and depreciates from day to day, but a great part of it becomes so quickly
superannuated, by constant technical progress, that it can be replaced with advantage by new machinery after a few months. The living machinery, on the contrary, gets better the longer it lasts, and in proportion as the skill, handed from one generation to another, accumulates.

…the factory operatives are part of the movable fittings of a factory. Their emigration was prevented.1; They were locked up in that “moral workhouse”, the
cotton districts, and they form, as before, “the strength” of the cotton manufacturers of Lancashire.

With millions of workers being sent home in order to prevent damage to human beings as employees–a necessary part of the process of capitalist production and exchange as well as governmental processes– the government’s intervention in being “the guarantor of people’s income” looks much less positive. The government or state (here the distinction is not important) is not the benevolent, neutral institution that Professor Noonan makes it out to be. It is providing income as a stop-gap measure until the capitalist and governmental processes can once again operate normally.

Indeed, Professor Noonan implies as much when he writes:

The danger, of course, is that the state is currently acting under emergency powers, but will revert to its standard function of enframing and protecting capital, if we let it.

Professor Noonan sees the provision of income by the state that is supposedly independent of market forces as something positive–but as we have already seen, the preservation of workers independent of the market in the sense that they can obtain money without having to work for an employer–is only a temporary measure that in no way is in opposition to the interests of the class of employers.

As the pandemic recedes in intensity, at least two issues will arise concerning the opposition of the working class to the nation-state. Firstly, there will be increased intensification of calls for workers to go back to work for employers despite the health risks. After all, around 1000 workers die and 600,000 workers are injured every year in Canada; health and safety are not a priority for the Canadian state.

Secondly, the issue of who will pay for the temporary income of workers and the subsidies for employers during the pandemic will arise. Although calls for cutbacks in health care will undoubtedly be more difficult to justify, cuts in other areas (such as education) will probably intensify.

Without a movement that expressly or consciously opposes the treatment of workers as things to be used by employers, the temporary measure taken by the Canadian (and other capitalist) government(s) is just that–a temporary measure. There will likely be opposition from the labour movement and from communities to the treatment of such measures as temporary, but since the labour movement and communities, for the most part, share Professor Noonan’s view that the state can somehow overcome its own nature as a capitalist state, the tasks required for converting such temporary measures into permanent measures cannot be addressed.

Professor Noonan refers to “we.” But who is this “we?” The “we” is a figment of his social-democratic imagination. In order for there to be a “we,” there would have had to have been much prior preparation. Has Professor Noonan engaged in such preparation? Not at all. He has engaged in the idealization of the collective-bargaining process and promoted class harmony (see earlier posts, such as  The Poverty of Academic Leftism, Part Five: Middle-Class Delusions).

Surely an essential part of the process of our preparing for a society where we all have our biological, social, intellectual, emotional and aesthetic needs met is a negative process–a process of coming to understand that the present social relations inside and outside work are in opposition to our interests and nature and that we therefore need to organize to change the situation by abolishing all class relations and relations of oppression.

However, my experience here in Toronto has been that most of the so-called left simply do not want to deal with the issue and attack those who do, such as calling them “a condescending prick,” ridiculing them and so forth. Alternatively, they ignore the issue by remaining silent over the issue. For example, John Clarke and other so-called radicals here in Toronto opposed calling for a basic income; I called for a radical basic income in opposition to Mr. Clarke’s rejection of any consideration of a basic income (see Basic Income: A Critique of the Ontario Coalition Against Poverty’s Stance). It has been largely ignored by the left here in Toronto; there has been no real discussion or movement for establishing a radical basic income here in Toronto.

Professor Noonan’s reference to “if we let them” is, therefore, utopian thinking. My prediction is that at best there will be some pressure from the organized social-democratic left for the maintenance of some kind of improvements in the welfare state, but that is all. Of course, there will be counter-pressure by the government or state and the class of employers to such improvements.

Professor Noonan’s further utopian social-democratic thinking can be seen in the following:

The alternative is to use this crisis as a basis of legitimacy for the state– under the control of democratic political forces acting in our shared life-interest– to assume control over the productive basis of society and re-orient production to serving life-needs.

I certainly share the goal of having “the productive basis of society…serving life-needs,” , but Professor Noonan has not shown how he or other members of the so-called progressive left have engaged in the preparatory work necessary to take advantage of a crisis.

Professor Noonan’s reference to using

“this crisis as a basis of legitimacy for the state–under the control of democratic political forces acting in our shared life-interest–to assume control over the productive basis of society and re-orient production to serving life-needs”

follows in the footsteps of another post by Professor Noonan, a post that assumes the present existence of certain social relations that are required if other social relations are to arise. In the previous post already referred to above, I pointed out how contradictory Professor Noonan’s theoretical position is with respect to the interests of most workers at universities; Professor Noonan assumed that there was already democracy at universities and thereby assumed what in fact needs to be accomplished.

The same logic applies here. If we already have democratic control of forces “acting in our shared life-interest,” then we already have “control over the productive basis of society” and have already “reoriented production to serve life-needs.” The reconstruction of the economy is democratic control. We need to reconstruct the political and the economic simultaneously and not the so-called political seizure of power occurring before and then democratic control of the economy somehow following afterwards.

Professor Noonan’s call for nationalization by the present state ignores this problem altogether by assuming that nationalization by the modern state will somehow magically lead to control over our own life process and life needs:

 Nationalization can pre-figure democratic socialization, and democratic socialization can re-focus economic life on collective work to provide each and all that which we really need, and freeing our time for the– real-life, multidimensional– experiences, actions, and interactions that make life worth fighting for, protecting, and living.

The call for nationalization as a prelude to socialism is typical of social democrats; they idealize and fetishize the modern state–contrary to Professor Noonan’s disclaimer–and thereby short-circuit what needs to be done–expose the anti-democratic and alienated nature of the modern state–a nature that has its parallel in the modern economy dominated by a class of employers or what some call civil society (see Employers as Dictators, Part One).

This issue, however, is somewhat complicated and will be dealt with in the next post. Professor Noonan’s position, ironically, is similar in some ways to the Leninist view of the modern state–a view that Professor Noonan supposedly finds unsatisfactory.

 

 

The Limitations of Social-Democracy in the Face of the Coronavirus

John Cartwright is the president of Toronto and York Labour District Council. According to the website of this Council:

The core belief of unions is in solidarity. We want every one of our members to feel they belong, to appreciate the gains that unions have made for working people, and to have a sense of our common purpose. For all of us, fairness matters. Winning union members to embrace those common values is one of the most important tasks we have.

It is in that context that we address the challenge of tackling systemic racism and building stronger unions.

By working together, we can nurture inclusive workplaces and strengthen our shared commitment to our union’s shared values of equality, respect, justice and dignity for all.

This sounds very radical. However, the claim that “fairness matters” and similar statements do not address the issue of whether Mr. Cartwright opposes the power of employers as a class or whether he accepts such power and merely aims to modify such power to the advantage of workers and the community.

To answer this question, we need to look at another statement made by Mr. Cartwright:

Speaking notes for CAW-CEP – A Moment of Truth Workshop

By John Cartwright, President Toronto and York Regional Labour Council

February 25, 2012

COMMUNITY POWER AND POLITICAL BARGAINING

  • Since its start, our movement has undertaken two kinds of bargaining – collective bargaining to determine terms and conditions in the workplace; and political bargaining to determine the conditions of life both inside and outside the workplace
  • The Canadian labour movement has fundamentally defined itself as a social union movement, guided by the slogan “What we wish for ourselves, we also wish for others”.
  • That has led to us taking a stance from the earliest days to speak out for public education, universal healthcare, public pensions, unemployment insurance, public transit, affordable housing and wide variety of social services
  • Those have been achieved through a combination of building mass popular movements and formal political action – the US experience serves as a sobering reminder of how narrow the political window can be without the existence of a social democratic party with labour roots, as we have with the NDP and PQ, despite their shortcomings

What are the shortcomings of the NDP (and PQ)? There is no elaboration, but at least we get a clearer idea of what Mr. Cartwright means by fairness–capitalism with a human face, or the welfare state of old.

This view is also expressed in the following:

JUST LABOUR vol. 8 (Spring 2006) [page) 92

EQUITY BARGAINING IN THE NEW ECONOMY

John Cartwright, President, Toronto and York Region Labour Council,
Toronto, Ontario, Canada

When thinking about equity bargaining in the new economy we need to think about
both collective bargaining and political bargaining strategies. The gains of the union movement have been built on pursuing both of these strategies.In greater Toronto, out of the 2.3 million paid work force, over 1 million workers earn less than the
official poverty level. The vast majority of those workers are women and workers of colour. If we are going to talk about bargaining for equity, we need to address how to build power to bargain gains for these workers and how to transform
ourselves to build power.

The Labour Council is launching a major initiative – a framework for dozens of campaigns called A Million Reasons, because there are a million workers in this city below the poverty line and therefore a million reasons to raise wages, to improve labour law, and to improve standards and social programs.

In this framework we see four pieces crucial to building trade union power in today’s economy:

1. Protect good jobs in the public sector and private sector. That means that every
union needs to get involved in supporting each other’s struggles.

2. Bargain to raise standards sector by sector by establishing common bargaining. For example, we need to bargain standards for the hotel industry in the city, not just bargain with each hotel separately.

3. Mass organizing, especially with workers of colour. We need to forge ties and be
involved in the community organizing that is going on in local, ethnic communities,
asking them to tell us how to best support their struggles.

4. Use our power to protect and strengthen the social wage –all of those programs people think of as government programs. We need to reclaim these as the
programs we fought for and won politically – including workers’ compensation, health care, public education, child care, etc. The social wage is crucial, especially for low-wage workers of colour to achieve equity.

We certainly should try to increase standards for a whole industry and not just for a particular employer, and we should fight for improved community conditions, increases in the minimum wage and more social supports (the social wage).

Mr. Cartwright’s implicit standard, though, is “good jobs”–both in the private and public sectors. Good or decent jobs will not only lift those below the poverty out of poverty but will ensure that a social wage will be protected: “public education, public education, universal healthcare, public pensions, unemployment insurance, public transit, affordable housing and wide variety of social services.”

I have criticized Mr. Cartwright’s views before (Ontario Looks Right–With Some Help From the “Left”), but what inspired me to look a little closer at Mr. Cartwright’s views was an email I received from him today, March 24, 2020, related to the coronavirus crisis:

Dear Fred,

Every day, political leaders at all levels of government are making new announcements to respond to COVID-19 impacts, on both people and the economy. These have been crucial steps to ensure public safety and financial stabilization. Nobody knows how long this crisis will last, but we do know that when it finally recedes our world will look very different.

We cannot truly address the COVID-19 crisis if the responses entrench the social and economic dynamics that made us so vulnerable in the first place. Now is the time to remind our decision makers that their policies must not only seem fair for today but must also correct the growing imbalances in our society that are leaving too many of our neighbours behind.

Perhaps now more than ever, we see clearly that divestment in our public services and safety net has always been, in reality, divestment in ourselves. When any one person in Canada can’t access basic water and sanitation, medicines that they need or a fair wage, then we are all vulnerable.

This crisis hasn’t just created new disasters, it has taken root within the flaws of our existing system. Inequality in Canada has meant that now, in this time of deep need, we risk sacrificing the health and safety of vulnerable people for whom the social safety net has been weakened.

This inequality has been with us for generations, whether we consider the long-standing boil water advisories for First Nations communities or the ongoing austerity measures in our health care systems. The impact of social and political disparity puts many Canadians at increased risk because not everyone has access to basic lines of first defence such as secure housing or access to a doctor.

Governments across the country have taken quick steps to expand programs like Employment Insurance and Emergency Benefits, granting sick time, and pausing evictions or water shut-offs. Health care workers have again become heroes instead of targets for conservative politicians. Most importantly, people are re-discovering the reason why past generations decided to create strong public services that reach every community. Reinvestment in our public services and social safety net is the right thing to do – not only now, during COVID-19, but permanently in Canadian society.

Our economic system has allowed a small portion of society to gain the vast majority of benefits. Too many politicians have divested in public services and increased corporate loopholes, resulting in a reduced social safety net that sacrifices more and more people to the very real risks of unaffordable housing, lower access to health care, precarious work or, of course, to COVID-19. The climate crisis means that we will see an increase in health and extreme weather emergencies, making a just transition into jobs that bolster our environmental and social health even more pressing.

The expected bailout for the oil and gas industry is the exact opposite of this approach. That industry suffers from an unrelated and untreatable crisis of global price wars and a world that is leaving it behind for greener solutions. Instead of pouring good money after bad, our governments should create green jobs programs that reclaim land, support public health and reinvest in local communities. The loopholes that allowed these giant corporations to pay a pittance into the public sphere must be closed, along with those for the new digital commerce giants and others hiding fortunes in tax havens.

Nobody wants to see a repeat of the last financial crisis – when CEOs rewarded themselves with huge bonuses while people were losing their jobs and their homes. If any company is to be supported with public funds, ownership shares must be taken, or strong rules imposed to benefit ordinary people instead of billionaires. Why should banks be allowed to charge interest rates of over 20 per cent on credit card charges that many Canadians will have to rely on to survive? In exchange for billions in liquidity from the federal government, there should be strict limitations on gouging the public, during this time of crisis and beyond.

Government must show leadership in transforming our economy to one that works toward well-being for all of us rather than for the few. We have the momentum and opportunity to shift our systems to prioritize our care and wellbeing for the long run. While this crisis is unlike any in our lifetime, the Council of Canadian will organize to hold elected officials accountable, challenge corporate greed and fight for the common good – as we work together for a renewed vision of a better world for all.

In solidarity,

John
John Cartwright
Chairperson

Again, expansion of public provisions in health care, education, pensions and the like is better than their contraction. However, Mr. Cartwright still implies that employers are somehow necessary. In referencing “increased corporate loopholes,” he implies that if such loopholes were eliminated, then corporations would be legitimate. In other words, it is the old repetition of corporations paying their “fair share” of taxes.

/Furthermore, Mr. Cartwright’s demand for an expansion of public services and an increase in the safety net through education and health care does not even address the issue of the quality of such public education or health care. I have already criticized the Chicago Teachers Union’s assumption of the need to only expand educational “services” rather than a radical restructuring of the public education system (see, in the section Publications and Writings on the main page of this blog, “A Deweyan Review of the the Chicago Teachers’ Union Publication The Schools Chicago Students Deserve: Research-Based Proposals to Strengthen Elementary and Secondary Education in the Chicago Public Schools (2012). 

As for health care, in the first place, I have already addressed the inadequate nature of health and safety at the workplace in a series of posts (see, for example, Working for an Employer May Be Dangerous to Your Health, Part One). In the second place, see the last post for the beginnings of a critique of health care.

It is hardly sufficient to reinvest “in our public services and social safety net.” Like the private sector, such public services have been characterized by the dictatorship of employers (see The Money Circuit of Capital  and the series of posts  Employers as Dictators, Part One etc.).

Mr. Cartwright, as part of the social-democratic left, uses the period before neoliberalism as his standard. He wants to return to the ideal world of welfare capitalism. This standard is wholly inadequate for the creation of a fair society. Before neoliberalism, there was still the treatment of human beings at work as things to be used for the benefit of employers. There was, certainly, a more robust safety net than now, but even then such a robust safety net was always under threat by sections of the class of employers.

Even if we assumed that there existed a robust safety net, as long as a class of employers exists, such a safety net will always be threatened.

It is better to think about starting a movement towards the abolition of the power of the class of employers in order to create a society that can respond in a humane and timely fashion to threats to our common lives on this planet. Trying to recreate the social-democratic ideal of the past (the 1950s-1970s)–the social-democratic ideal of welfare capitalism– is utopian; if we are to meet adequately our common problems, we need to go beyond the rhetoric of improvements in the safety net. Such solutions are band-aid solutions that do not meet the challenges to our lives that we face in the 21st century. What we do not need is more social-democratic rhetoric.

It is better to think about how to create a movement towards a socialist society–a society without a class of employers.

Health Care: Socialist versus Capitalist Nationalization

Since the coronavirus and health care are undoubtedly on the minds of many people throughout the world, I thought it appropriate to do a bit of research on socialist health care versus present capitalist health-care systems.

Health care even in a nationalized context can easily be an expression of oppression and exploitation. The idealization of nationalization often goes hand in hand with an argument  that we need to extend public services in health and education (as Sam Gindin has argued). However, nationalized health care can easily become an oppressive experience for workers (as well as patients). From Barbara Briggs (1984), “Abolishing a Medical Hierarchy: The Struggle for Socialist Primary Health Care,” pages 83-88, in the journal Critical Social Policy, volume 4, issue #12, page 87:

GPs AND SOCIALISM

Socialists have traditionally argued for state control of key areas of the economy and of the provision of welfare services such as health and education. Socialist health workers have argued for general practitioners to become salaried employees of the Area Health Authorities, along with the ’ancillary workers’, instead of continuing to enjoy the independent self-employed status that they insisted on to protect their status when the NHS [National Health Service of the United Kingdom] was set up.

But the NHS, the largest employer in the country, has shared with nationalised industries the failure to demonstrate any evidence of ’belonging to the people’: because of the backing of the state it has proved a ruthless and powerful employer, keeping the wages of unskilled and many skilled workers also at uniquely low levels; time and again, union members seeking improvements in pay and amelioration of very poor working conditions have been defeated. Nor has the NHS shown any kind of effective accountability to its users. Public spending constraints have hit the NHS not only by causing a decline in working conditions and in the services provided, but also by imposing even more centralised planning priorities based on the need to save money whatever the cost.

This situation likely characterizes the Canadian public health-care system as well.

A word about the Canadian health-care system. One inadequate view on the Canadian health-care system is the social-democratic or social-reformist perspective, which certainly exists in Canada. One definitely inadequate view considers the Canadian health-care system to be socialist (Mary E. Wiktorowicz, pages 264-262, “Health Care Systems in Evolution,” in Staying Alive:  Critical Perspectives on Health,
Illness, and Health Care (2006), page 243):

In many ways, national health insurance symbolizes the great divide between:
liberalism and socialism; the free market and the planned economy (see Box 10.1).

Nationalized health care in no way represents the great divide between liberalism and socialism. An apparently critical form of the analysis of health care–but in reality a variant form of social democracy or social reformism–looks at the inequality in access to health care, according to level of income. Thus, in the edited work Health Promotion in Canada: Critical Perspectives (2007), Denis Raphael, in his article (pages 106-122) “Addressing Health Inequalities in Canada: Little Attention, Inadequate Action, Limited Success,” refers to levels of income as the major social determinant of the level of health. Since income inequalities in Canada are increasing, it follows that health inequalities are also increasing. However, this view defines a social determinant purely in terms of level of income–a typical social-democratic or social reformist method (I will deal with this issue in another post). As Glenn Rikowski (2001) points out (“After the Manuscript Breaks Off: Thoughts on Marx, Social Class and Education”, though, level of income is used instead of social class, or rather level of income is often used as a substitute by the social-democratic left:

… we witness the virtual abandonment of the notion of the working class…. Most people who analyse social class today do no such thing; rather, they have social inequality and stratification in view.

This use of the level of income to evaluate access to adequate health care is useful to a certain extent, but if it is the prime definition of class and inequality, it is far from adequate. It ignores entirely the source of income and exaggerates differences within the working class rather than a shared economic and social situation of being employees (or unemployed or temporary employees) and subject to a hierarchy of power at work (of course, managers are also subject to control from above, but in general it can be safe to assume that they form part of the middle class if not subordinate members of the ruling class).

The situation of the British NHS is typical of what happens when so-called socialist principles are realized in a capitalist context. Two socialist principles in particular fall by the wayside. From Bob Brecher (1997), (pages 217-225), “What Would a Socialist Health Service Look Like?,” in the journal Health Care Analysis,  volume 5, issue #3, page 219:

These principles are: (a) that there by a reasonable degree of equity in respect of outcome concerning the distribution of basic resources, and (b) that people treat each other as ends and not merely as means. The first may perhaps be understood as a political and economic dimension of socialism, while the second constitutes a moral and social element.

The first principle considers that social equity is itself a good in itself or an end at which we should aim. The second principle considers that people deserve to be treated as people in all circumstances and not just outside work or as “consumers.” This second principle, of course, can never be realized in a capitalist society since human beings are necessarily treated as things or objects to be used as means by a class of employers (see The Money Circuit of Capital).

Health care would be just that: health care–not health service. From Brecher, page 221:

‘Service’ implies server and served; consultant and client; provider and consumer. But none of these describes the sort of relationship between carer and person carefd for that the two principles outlined suggest. To take the example of the NHS again: despite the intentions of its founders, it was the connotations of service–by turn beneficently providing for patients and ‘servicing’ them as though they were objects–which helped provide amply justified dissatisfactions with the resultant shortcomings of the NHS treatment: and these have been used to undermine its founding principles. The combination of professional paternalism, especially in respect of senior doctors; an inability or unwillingness to treat people rather than their symptoms; and an attitude of ‘servicing’ and being ‘serviced’ all helped alienate people from what was supposed to be ‘our’ NHS, enabling successive conservative governments to turn what was at its inception at least a ‘social’ health service into an expliictly anti-socialist one. … these are not accidents of the British context: such terms and the attitudes and mores they describe are inimical to a socialist structure, based as that must be on considerations of equity and respect.

It is important to emphasize, as Brecher points out, that the assumption that nationalization is somehow socialist without further ado itself contributes to the Conservative backlash and the emergence of neoliberalism. By indulging the social-democratic or social-reformist left, with their talk of “decent work,” “fair contracts,” “fair share of taxes,” “$15 Minimum Wage and Fairness,” and the like, the so-called radicals have in reality contributed to the neoliberal backlash. What is needed is not indulgence of such talk, but continuous critique of such talk. What is needed is a critical attitude towards the so-called “left” and its associated idealized institutions.

What is needed is critical and hence democratic analysis and discussion of health-care systems. What is absolutely unnecessary is the defense of flaws in various social systems. If we are going to create a socialist society worthy of human beings, we need to be honest about the inadequacies of current social structures and systems.