Basic Income: A Critique of the Social-Reformist Left’s Assumptions and Analysis: Part Two

This is a continuation of my last post. In this post, I will address Mr. Bush’s confused analysis of relations at work and in exchange in a situation dominated by a class of employers, which he confusedly analyzes in his April 26, 2017 article published on the Socialist Project website (Basic Income and the Left: The Political and Economic Problems).

As I noted in my previous post, I will show that Mr. Bush, on the one hand, uses Karl Marx’s theory of surplus value for conservative purposes and, on the other, that he fails to connect Marx’s theory of “costs” to Marx’s theory of surplus value–a connection that has radical implications. Such implications, at the practical level, permit us “to focus on strategies that can help us build the power we need to achieve economic justice and dignity for all”–that really go beyond the class power of employers rather than the pseudo-radicalism offered by Mr. Bush’s “messy business of material reality.”

In the section of that article, entitled “The BI and the Logic of Capitalism,” Mr. Bush has the following to say:

Capitalism operates on the extraction of surplus labour from workers. Workers sell their potential to work on the labour market and employers put them to work, paying them a wage that is less than the value they produce with their labour. This surplus labour is ultimately the source of profits. Capitalism needs workers. Much of the history of capitalism centres around the creation of a working class that is more or less reliant on selling its labour power for a wage in order to live.

If workers in large enough numbers are able to sit outside of the labour market and sustain their basic needs, capitalism would cease to function. BI naively assumes that capitalists and the state would not respond politically and economically to the changing market condition of labour. The logic of capitalism would push capitalists to, at the very least, raise wages and increase prices on goods and services. The ultimate goal would be to compel workers back into the labour market, and make them dependent on selling their labour power in order to live.

It is fascinating to see how a social reformist tries to turn  a radical social theory into a conservative one that agrees with his own reformist conclusions. Let us look more closely at this “analysis.”

Firstly, Mr. Bush simply draws a false conclusion: “BI naively assumes that capitalists and the state would not respond politically and economically to the changing market condition of labour.” Some versions of BI may naively assume that, but certainly not a radical version of basic income (see a previous post  A Radical Basic Income as a Radical Reform). Mr. Bush simply wants to exclude all consideration of radical basic income policies that go beyond the present system of capitalist system consciously. He likely does so because he wants to draw reformist conclusions from Marx’s radical social theory.

Secondly, let us now turn to how capitalism operates. Mr. Bush claims that the essence of capitalism is the extraction of surplus labour from workers that is greater than the wage that the workers receive. For example, if workers at a brewery work for seven hours a day, and they receive a wage of $35 an hour, then if for every hour they produce a value of $70 an hour, they are exploited 100 percent. If they produce a value of $105 an hour they are exploited 150 percent, and so on. The point is that if there is to be a profit, the workers must produce more than the cost of their own wage, or the $35 an hour.

The problem with this view is that it is only a partial truth, or a one-sided view of what Mr. Bush calls “the messy business of material reality.” Mr. Bush evidently prides himself in being practical, and yet he fails to link up his reference to costs (referred to in my previous post) and the theory of surplus value.

Workers are costs to employers, and the worker receives the cost of what is required to produce “their potential to work” as Mr. Bush says. They receive, apparently, their full value, in exchange, for their wage. They certainly do so when considered only in the immediate exchange between the employer and the workers. Mr. Bush, however, excludes from consideration the question of time and prior conditions.

I will provide a long quote from Karl Marx since Mr. Bush, without referencing him, provides Mr. Bush with the theory of surplus value–but Mr. Bush omits any consideration of Marx’s theory of costs  as it relates to wages–conveniently for Mr. Bush. From Capital: C

Let us now return to our example. It is the old story: Abraham
begat Isaac, Isaac begat Jacob and so on. The original capital of
£10,000 brings in a surplus-value of £2,000, which is capitalized.
The new capital of £2,000 brings in a surplus-value of £400, and
this too is capitalized, transformed into a second additional
capital, which in its turn produces a further surplus-value of £80.
And the process continues in this way.

We leave out of account here the portion of the surplus-value
consumed by the capitalist. We are also not interested, for the
moment, in whether the additional capital is joined on to the
original capital, or separated from it so that it can valorize itself
independently. Nor are we concerned whether the same capitalist
employs it who originally accumulated it, or whether he hands it
over to others. All we must remember is this: by the side of the
newly formed capital, the original capital continues to reproduce
itself and to produce surplus-value, and this is true of all accumulated
capital in relation to the additional capital engendered by it.
The original capital was formed by the advance of £10,000.
Where did its owner get it from? ‘From his own labour and that of
his forefathers’, is the unanimous answer of the spokesmen of
political economy.4 And, in fact, their assumption appears to be
the only one consonant with the laws of commodity production.
But it is quite otherwise with regard to the additional capital of
£2,000. We know perfectly well how that originated. There is not
one single atom of its value that does not owe its existence to unpaid
labour. The means of production with which the additional
labour-power is incorporated, as well as the necessaries with which
the workers are sustained, are nothing but component parts of the
surplus product, parts of the tribute annually exacted from the
working class by the capitalist class. Even if the latter uses a portion
of that tribute to purchase the additional labour-power at its
full price, so that equivalent is exchanged for equivalent, the whole
thing still remains the age-old activity of the conqueror, who buys
commodities from the conquered with the money he has stolen from
them.

If the additional capital employs the person who produced it,
this producer must not only continue to valorize the value of the
original capital, but must buy back the fruits of his previous labour
with more labour than they cost. If we view this as a transaction
between the capitalist class and the working class, it makes no
difference that additional workers are employed by means of the
unpaid labour of the previously employed workers. The capitalist
may even convert the additional capital into a machine that throws
the producers of that capital out of work, and replaces them with
a few children. In every case, the working class creates by the surplus
labour of one year the capital destined to employ additional
labour in the following year.5 And this is what is called creating
capital out of capital.

The accumulation of the first additional capital of £2,000 presupposes
that a value of £10,000 exists, advanced by the capitalist,
and belonging to him by virtue of his ‘original labour’. The
second additional capital of £400 presupposes, on the contrary,
only the prior accumulation of the £2,000, of which the £400 is
the capitalized surplus-value. The ownership of past unpaid labour
is thenceforth the sole condition for the appropriation ofliving unpaid
labour on a constantly increasing scale. The more the capitalist
has accumulated, the more is he able to accumulate.
The surplus-value that makes up additional capital no. 1 is the
result of the purchase of labour-power with part of the original
capital, a purchase which conformed to the laws of commodity
exchange and which, from a legal standpoint, presupposes nothing
beyond the worker’s power to dispose freely of his own
capacities, and the money-owner’s or commodity-owner’s power to
dispose freely of the values that belong to him; equally, additional
capital no. 2 is merely the result of additional capital no. 1, and
is therefore a consequence of the relations described above; hence
each individual transaction continues to conform to the laws of
commodity exchange, with the capitalist always buying labourpower
and the worker always selling it at what we shall assume is
its real value. It is quite evident from this that the laws of appropriation
or of private property, laws based on the production and
circulation of commodities, become changed into their direct
opposite through their own internal and inexorable dialectic. The
exchange of equivalents, the original operation with which we
started, is now turned round in such a way that there is only an apparent
exchange, since, firstly, the capital which is exchanged for
labour-power is itself merely a portion of the product of the labour
of others which has been appropriated without an equivalent; and,
secondly, this capital must not only be replaced by its producer,
the worker, but replaced together with an added surplus. The relation
of exchange between capitalist and worker becomes a mere
semblance belonging only to the process of circulation, it becomes
a mere form, which is alien to the content of the transaction itself,
and merely mystifies it. The constant sale and purchase of labourpower
is the form; the content is the constant appropriation by the
capitalist, without equivalent, of a portion of the labour of others
which has already been objectified, and his repeated exchange of
this labour for a greater quantity of the living labour of others.

The immediate exchange between workers and employers is an exchange of equivalents, so that workers receive the value of their cost of production. However, when considering the larger context of previous production, then the immediate exchange between employer and workers is a semblance. The employer uses a part of the surplus produced by the workers in a previous round as means of production (machines, raw material, buildings, etc.) and another part (socially as money and physically as means of consumption, such as food, clothing, shelter) to further employ them (in addition to the initial investment).

As “costs,” the workers previous products are used against them to further exploit them. Mr. Bush entirely ignores this fact. He ignores the wider context. He ignores “the messy business of material reality.” Why is that? Mr. Bush is really quite arrogant. He pretends to be a very practical person, but he is in reality a very impractical person since he disregards the wider context when engaging in practice. Is this not folly?

In a previous post (Intelligent Activity According to John Dewey: Its Political Implications for the Left), I wrote the following:

The lack of such discussion among most workers shows the extent to which those who call for “practice” and believe that they are eminently practical are eminently impractical; they neglect one of the fundamental conditions for practical intelligence: taking into account the social context when acting. To neglect the social context when acting is to act unintelligently.

What exactly is the aim of those who engage in “practice” among the left? Is there any real discussion about the aims? Or is there simply a rush to engage in one “practice” after another without really engaging in any attempt to unify in a consistent fashion the various actions? If so, is that acting intelligently? Or is it acting unintelligently?

Mr. Bush proposes, practically, that the working class engage in unintelligent activity. More colloquially expressed, he proposes (even if he is unaware of this) that the working class act stupidly.

This is hardly in the interests of the working class.

I strongly suggest that Mr. Bush alter radically his theory and practice.

Unfortunately, there is already evidence that he will not do so. On Facebook, he and I engaged in in a short debate over the issue of whether the fight for $15 and an hour (and various employment reforms) should be paired with the concept of fairness (as indeed it was in Ontario). Mr. Bush explicitly stated that it was fair. I argued that such reforms indeed should be defended–while criticizing any concept of fairness.

My prediction for Mr. Bush’s future is that he will end up with a similar attitude to Mr. Urkevitch (see an earlier post,   Comments from John Urkevich, AESES-UM Business Agent, to my Critique of the Grievance and Arbitration Procedure: Letter to the Editor, Inside The Association of Employees Supporting Educational Services (AESES), Vol. 17, No. 4, May 1994). He will become a staunch defender of practice within the status quo of the employer-employee relation–like Mr. Urkevitch and many other union representatives.

It should be remembered that Mr. Bush is seen by many in Toronto, the largest city in Canada, as a practical leftist, a socialist and a good trade-unionist. That his views have not received any critical scrutiny illustrates the dominance of social-reformist leftism in Canada and the need for the creation of a more critical  but also practical leftism in Canada in general and Toronto in particular.

 

Basic Income: A Critique of the Social-Reformist Left’s Assumptions and Analysis: Part One

Introduction

I am dividing the post into two parts, with the first part devoted to more concrete concerns, and the second part to more theoretical concerns.

David Bush, in an April 26, 2017 article published on the Socialist Project website (Basic Income and the Left: The Political and Economic Problems), argues that the proposal for a basic income is unrealistic in terms of capitalist relations. Like the later pamphlet by the Ontario Coalition Against Poverty (OCAP) (Basic Income in the Neoliberal Age) (Toronto: 2017), he does not consider the basic income proposal strategically worthwhile since it cannot be realized within capitalist relations.

As I argued in an earlier post (Basic Income: A Critique of the Ontario Coalition Against Poverty’s Stance), proposing a basic income that contradicts what even OCAP recognizes is economic coercion is a strategy that calls into question the power of employers as a class and hence economic coercion. David Bush, though, considers that the debate among the left does not take “material reality” into account. He says the following:

Instead of a concrete debate about the economic and political aspects of BI, it is discussed as an ideal separated from the messy business of material reality.

Mr. Bush is going to give the idealist left a lesson in the “messy business of material reality.” What is material reality for Mr. Bush?

Mr. Bush obviously believes that he is a realist–he can deal with “the messy business of material reality”–whereas the radical left are idealists. He says the following:

The strategy of those advocating BI centres on crafting policies in a vacuum and hoping governments enact them.

This romantic idealism has stymied serious analysis of the policy from the Left. Taking a step back and looking at the economic and political logic of BI, I hope to show that however well-meaning the policy is, it is economically flawed and a politically dangerous demand for the Left to adopt.

Mr. Bush is a grass roots organizer and practitioner, and because of this he believes that he has a better grasp of the “messy business of material reality”–whereas the radical left, romantic idealists that they are, are unrealistic.

Let us now look at the beginning of this “serious analysis of the policy from the Left.” But just a point: Some who advocate a basic income have no illusion that governments in their present structure will institute a policy that will eliminate economic coercion; such governments, rather, thrive on economic coercion and will not institute a policy that will undercut their own existence.

Costing Basic Income–An Employer Approach

The title of Mr. Bush’s next section is “Costing BI.”

Mr. Bush then refers to three models of basic income. He then makes the following astounding assertion:

The first question we should ask is, what are the basic costs of these models? Looking at Ontario, Michal Rozworski has pointed out the cost of the universal model, even when set at a low rate, is exorbitant.

This is a good example of Mr. Bush’s way of dealing with the “messy business of material reality.” We are not to question the fact of costs; we are to assume that costs are somehow sacred and propose policies only on the basis of costs within the structure of the power of the employers as a class. Mr. Bush’s “first question” assumes that we are to measure a policy on the basis of money–this is his way of dealing with the “messy business of material reality.”

In other words, Mr. Bush does not inquire into why things in our society have a price and in fact why human beings have a price–they simply do. We are then supposed to be “realistic” by accepting this “fact” (and it is a fact) rather than investigating the conditions and implications of this fact for human life and welfare. See The Money Circuit of Capital for the social implications of measuring human beings and our life process in term of money (costs). I will further criticize this approach in the next section.

This jump into costs is related to the inadequacy of Mr. Bush’s next section (entitled The BI and the Logic of Capitalism). The inadequacy of this section will be addressed in the subsequent post (part two).

However, in relation to  OCAP’s pamphlet on basic income, Mr. Bush’s analysis is inferior: at least OCAP managed to express part of the truth of the fact of measuring human life and human welfare in terms of “costs.” In the OCAP pamphlet, it is written:  “Capitalism needs economic coercion for its job market to function” (page 6). If economic coercion is characteristic of the job market, then the left should adopt a policy that short-circuits this economic coercion–such as a radical basic income policy (see an earlier post,  A Radical Basic Income as a Radical Reform).

By treating human beings as “costs” (purchasable with money), Mr. Bush assumes that economic coercion is inevitable without connecting the dots. By nonchalantly accepting costs as a fact of life and a so-called necessary part of the world–part of the “messy business of material reality” (actually part of the messy business of capitalist reality), Mr. Bush becomes an ideologue of employers without realizing it.

Mr. Bush continues this illogic of treating human beings as costs; the reader will be spared any further reference to this “messy business of material reality.”

In the subsequent post, I will pursue Mr. Bush’s illogic by looking at his next section, entitled “The BI [Basic Income] and the Logic of Capitalism.” It will be shown that Mr. Bush fails to connect up treating people as costs with what he thinks is Karl Marx’s theory of surplus value.

However, I will not wait until the next post to expose Mr. Bush’s real intent.

He gives his own position away when he states the following:

Rather than raising the rates for social assistance, increasing the minimum wage or spending more on social services the government is touting its BI experiment.

These reforms are what Mr, Bush is really after. The basic income experiment as proposed by the Liberal government and even right-wing parties and governments would interfere with these reforms. The real alternative is “raising the rates for social assistance, increasing the minimum wage or spending more on social services.” These reforms are all–within the context of economic coercion and economic blackmail, are they not? There is nothing wrong with fighting for reforms–workers need to improve their lives, but why not improve their lives but not having any illusions about the fairness of such reforms? Why not propose some reforms that do definitely exceed the power of employers and the government to meet them? Mr. Bush is really a social democrat who wants social reform while assuming the eternal nature of the power of employers as a class.

Mr. Bush further gives himself away as a social reformist who accepts the inevitability of the power of employers as a class when he says:

The very same forces that make it difficult to win improvements in current social programs….

That is what Mr. Bush really calls dealing with the “messy business of material reality.” The only viable strategy is–improvements in social programs. Forget about eliminating the economic blackmail characteristic of the power of employers as a class. Forget about trying to develop policies and strategies that address the root of “material reality” characterized by economic coercion and economic blackmail. We need to fight–for social reforms only; everything else is idealistic nonsense. Such is the way in which Mr. Bush deals with the “messy business of material reality.”

Mr. Bush, like other social-democratic reformists, then refers to dignity for all without explaining how this is to be achieved within the context of the class power of employers:

Burying the idea of BI as a viable strategy to respond to inequalities and injustices of capitalism allows us to focus on strategies that can help us build the power we need to achieve economic justice and dignity for all.

Mr. Bush, like other social-reformist leftists, has no intention of really questioning the power of employers as a class. Social reform, and more social reform, and more social reform–that is all they have to offer.

Perhaps Mr. Bush can explain how “economic justice and dignity for all” is possible in conditions characterized by “economic coercion?” By the money circuit of capital? By treating human beings systematically and necessarily as means rather than ends?

I prefer the analysis of Tony Smith, in his book Beyond Liberal Egalitarianism: Marx and Normative Social Theory in the Twenty-First Century (Leiden: Brill, 2017, pages 342-343) to Mr. Bush’s reformist rhetoric:

The abolition of labour markets, that is, the abolition of wage labour as
a social form, would contribute greatly to overcoming the ‘bifurcation of the
political’. It is also required if we are to ever attain a world in which the [sic] ‘all persons are equal, so far as the importance of their basic interests are concerned’.3
To accomplish this, the production and distribution of goods and services could
be undertaken by worker co-operatives, with managers democratically elected
by, and accountable to, those over whom they exercise authority.

Smith refers specifically to a demand for a basic income that goes beyond anything that the class power of employers could satisfy (page 346):

It is not the mere presence of markets that establishes the alien power of
capital. What makes capitalist market societies so different from pre-capitalist
societies with markets is the society-wide compulsion to place the accumulation
of surplus value above all other ends. The democratising of decisions regarding
the levels and priorities of new investments, combined with full employment
and basic income guarantees that are not feasible in capitalism, removes the
compulsion.

Note that Smith does not limit the proposal to only a basic income that is not “feasible in capitalism.” Mr. Bush, by contrast, will always propose policies that are feasible within capitalism. This is his way of dealing with the “messy business of material reality.”

Rather than concluding on a purely negative note, however, it should be recognized that Mr. Bush at least should be commended in putting into writing and publicly his beliefs. How else can errors and hence corrections arise? Many of the social-democratic left here in Toronto (and I suspect elsewhere) hide behind their “practice” and are unwilling to come out publicly to expose their beliefs to criticism. Mr. Bush should be commended for having the courage for publicly declaring his beliefs.

Given the inadequate nature of Mr. Bush’s views, he should modify his beliefs and thereby change his practice. If he (and other social reformers) should, however, persist in their dogmas, both theoretically and practically, then of course they should be thoroughly criticized.

In my next post, I will show that Mr. Bush, on the one hand, uses Karl Marx’s theory of surplus value for conservative purposes and, on the other, that he fails to connect Marx’s theory of “costs” to Marx’s theory of surplus value–a connection that has radical implications. Such implications, at the practical level, permit us “to focus on strategies that can help us build the power we need to achieve economic justice and dignity for all”–that really go beyond the class power of employers rather than the pseudo-radicalism offered by Mr. Bush’s “messy business of material reality.”

 

 

The Limitations of the Social-Reformist Left

Introduction

I used to belong to a leftist organization in Toronto. I started, slowly, to realize that it really has little to do with challenging the power of employers as a class despite the rhetoric concerning class issues being a priority. This view was confirmed when a movement for the reform of employment standards developed in Ontario in general and in Toronto in particular, and the Ontario Liberal government (Canada is divided into provinces, with Ontario as one of the provinces) agreed to such reforms.

The reform of employment standards was certainly needed, and the reforms are indeed useful to the working class. Among the reforms was included an increase in minimum wages to $15 an hour (in two phases). However, the problem is not the reforms but the pairing of these reforms with “fairness.” T-shirts with the slogan “Fight for $15 and Fairness” were produced, and rallies were announced with the same slogan. I found such a pairing objectionable, to say the least.

The Social-Reformist Left

This is a “selling point” typical of the social-reformist left. They try to get others to agree to the reforms that they propose by claiming that it is fair or just in some way; this is also often the tactic of union negotiating teams (as will be seen in another post).

Logically, the social-reformist left would never dare to pair a law that reduced the number of times a husband could hit his wife legally from 25 times a year to 10 times a year with the concept of fairness. Of course, receiving 10 hits a year is, in general, better than receiving 25 hits a year (all other circumstances being the same, such as the force of the hit, the hit not resulting in death and so forth). But they would object to the very idea of calling even the 10 hits a year fair.

Logically, though, the social-reformist  left do dare to pair $15 an hour (and other labour law reforms) with the concept of fairness. They “forget” that workers still are treated as means for purposes over which they have little or no control (see The Money Circuit of Capital)

This forgetfulness is actually agreement with the continued existence of the power of employers as a class.

Indeed, David Bush, a labour and community organizer (and doctoral student) in Toronto specifically claimed that the reforms were fair. They are certainly fairer, but to claim that they are fair assumes that the relationship between the class of employers and the class of workers is fair. The social-reformist left rely on the acceptance of the fairness of the employer-employee relation in order to justify its own position. The money circuit of capital shows that such a relationship is decidedly unfair. (I will address Mr. Bush’s reformist ideology in another post).

The social-reformist left, therefore, conveniently forget about the class relation between employers and employees as the background for any reform movement, and then boldly claims that the Fight for $15 is fair. They have no intention of challenging the power of employers as a class.

The social-reformist left may, of course, try to argue that there is a large difference between arguing that a reduction from 25 hits to 10 hits is fair to arguing that an increase in the minimum wages to $15 is fair. A reduction in the number of hits is negative whereas the increase in the minimum wage is positive. If, however, we look at the logic of both, they are the same. Both narrow the focus to what has been gained. In the case of a reduction in the number of hits, the focus is exclusively on the number of hits, without taking into consideration the remaining hits. In the case of an increase in the minimum wage (and other labour law reforms), consideration of the remaining power of employers–a power that is abusive in itself–is simply ignored. How otherwise could the social-reformist left then call the increase in the minimum wage fair (rather than fairer)?

Both logics exclude consideration of the wider context, and both present certain changes exclusively in a positive light (a favourite tactic of the social-reformist left). In another post, it will be pointed out that acting intelligently requires taking into consideration the context; if we do not, we likely will act unintelligently. The social-reformist left, ultimately, propose that we act unintelligently.

The Radical Left

The organization to which I belonged found the pairing of $15 and fairness to be irrelevant. There was no objection to such a linking of the reform movement and the issue of fairness. I found this lack of criticism to be appalling and, as a consequence, withdrew from the organization.

The silence of the so-called radical left in Toronto (and undoubtedly in other cities and countries) over such issues shows just how dominate the social-reformist point of view has become at a practical level. Such a view assumes TINA: there is no alternative.

We need to start discussing how to challenge the power of employers as a class. The so-called radical left, however, creates all sorts of excuses for not adopting a class point of view and for putting off any discussion about such issues. Reform is all that is on the agenda for them–like the social-reformist left.

The radical left in Toronto, by remaining silent over the issue, practically are on the same level as the social-reformist left. By remaining silent, they foster the continued illusion that the existence of the class of employers and the class of employees are somehow natural and eternal. This illusion needs to be constantly criticized.

By remaining silent, the radical left in Toronto fosters actions that are unintelligent. By remaining silent, the radical left contributes to the continued oppression and exploitation of the billions of workers who experience the daily grind of being treated as things at work.

Some among the radical left, of course, will justify such silence in many ways. Some may say that it is necessary to create structures (such as TAWC–the Toronto Airport Workers Council) that cut across unions. Somehow, by magic, such structures are going to address the power of employers as a class–in the far distant future. Such a vague future is a fairy tale. The radical left, in practice, do nothing different from the social-reformist left.

I attended one TAWC meeting; I did not hear any conversation that related to the power of employers as a class. It was more like an extended union meeting than anything else.

Others may claim that we need to engage in a “war of position” (based on the Italian Marxist Gramsci). Practically, this “war of position” turns out to be no different than the social-reformist left’s position. Why else was there silence over the issue of the fairness of $15 an hour? Or is such silence an expression of a “war of position”?

Ultimately, the radical left in Toronto lost an opportunity for bringing up the class issue–and that is what is needed in these trying times of ours–and not more social-reformist rhetoric.