Socialism, What It May Look Like: The Series

I have written a number of posts as series rather than just one long post. This is due to a number of reasons. To work out a view requires elaboration and time, and posting as a series permits such elaboration over a longer period of time. Also, I have many interests (which correspond in part to my own experiences as an oppressed and exploited worker, oppressed father and so forth).

However, I thought it may be useful to some readers to string series that I may not expand further into one long post in order to present more content on the same theme. I will not edit the series to make it more like one long essay; readers can pick and choose the posts that interest them.

I will probably do this with various other series on this blog.

Socialism, Part One: What It May Look Like

“My wife asked me what other kind of society could we live than the one we are living now. I suspect that most people have the same kind of question. It is difficult to imagine another kind of life than the life that we have experienced all our lives.

There are, of course, no magic answers. The answers will be experimental, with some failures and some successes, and not in ideal circumstances, of course.

However, some ideas can still be provided about some possible ways of living that provide an alternative vision–a vision so obviously lacking among the so-called left these days.

Tony Smith, in his book Globalisation: A Systematic Marxian Account (2006. Boston: Brill), provides a description of some aspects of a possible future kind of society. He borrows his model largely from David Schweichart’s model of economic democracy in After Capitalism (2002) (which I have not read). He adds three modifications of his own.

I will cut and paste short pieces from this work. He paints various aspects of a socialist society that need to be incorporated into a socialist society. There are undoubtedly other aspects, and his own account may have to be modified.

I will not pursue the topic week after week after week until the topic is exhausted since there are other topics which I consider relevant–above all a critique of the power of the class of employers, but also a critique of the social-reformist left and the so-called radical left that do not question the power of employers as a class.

From Smith’s book, page 303:

The model Schweickart defends has the following essential elements:

(i) Production and distribution are primarily undertaken within worker
collectives. Workers are not hired as wage-labourers by capital; they instead
join worker collectives as fellow members. There is a basic right to employment,
with state enterprises providing jobs for those unable to find positions in
collectives.

This condition is to initiate a reduction in economic coercion as an essential move towards an increase in economic and individual freedom.

There is, of course, a possible problem of increased inefficiency, but Smith addresses this issue in further democratic socialist measures.

 Socialism, Part Two: What It May Look Like

The following is a continuation of an earlier post (Socialism, Part One: What It May Look Like) about the nature of socialism–which is a solution to problems that capitalism, characterized by the domination of a class of employers, cannot solve. Socialism is not something that emerges from a utopian view independently of the nature of capitalism but requires a critical approach to capitalism.

In the following, Tony Smith elaborates on the democratic nature of the workplace, which is subject to control not only by the workers at the particular workplace electing managers but also by certain community organizations that represent specific community interests. From  Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 303:

(ii) Managers of worker collectives are democratically accountable to those
over whom they exercise authority, either through direct elections or through
appointment by a workers’ council that is itself directly elected. These
enterprises are required to have representatives from a range of social
movements (environmental groups, consumer groups, feminist groups, and
so on) on their boards of directors, accountable to those movements.

What do you think of such proposals? How do they relate to democracy? To the lack of democracy in your life? Do you think that such proposals are worth fighting for?

Socialism, Part Three: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of an earlier post (Socialism, Part Two: What It May Look Like) about the nature of socialism–which is a solution to problems that capitalism, characterized by the domination of a class of employers, cannot solve. Socialism is not something that emerges from a utopian view independently of the nature of capitalism but requires a critical approach to capitalism.

In the following, Michael Perelman contrasts what many people experience in their lives: their own contrast between an activity which they enjoy doing and their experience working for an employer, which they often enough find to be draining.

From Michael Perelman, The Invisible Handcuffs of Capitalism: How Market Tyranny Stifles the Economy by Stunting Workers (New York: Monthly Review Press, 2011),

Just What Is Work?

To understand the potential for transforming the economy, consider a simple example that does not require much of a stretch of the imagination. Just think of the enormous contrast between farm work for wages and gardening as a hobby. Farm work is considered to be so abhorrent in the United States that we regularly hear that only foreign-born workers are willing to perform it. Supposedly, upstanding citizens of the United States would never subject themselves to the life of a farm worker for poverty wages.

While farm labor may be among the hardest, most dangerous work in our society, many people regard gardening as a pleasant diversion. While the United Farm Workers Union represents mostly downtrodden workers, a good number of wealthy people are proud affiliates of their blue-blood garden clubs. Over and above the time they spend in their gardens, many gardeners enthusiastically devote considerable leisure time to conversing or reading in order to become better gardeners. In addition, many gardeners also willingly spend substantial sums for equipment and supplies to use in their gardens.

What, then, is the underlying difference between farm work and gardening? Farm work typically entails hard physical labor, but many gardeners also exert themselves in their gardens. The difference lies in the context of gardening. Gardeners, unlike farm workers, freely choose to be gardeners. During the time they work in their gardens, they want to be gardening. Nobody tells them what to do. Gardeners are producing for themselves rather than for someone else who will benefit from their work.

As the psychologist John Neulinger says: “Everyone knows the difference between doing something because one has to and doing something because one wants to.”43 We should also keep in mind that society respects gardeners. Our newspapers regularly print features of interest to gardeners. Some even have special sections to appeal to their affluent gardening readers. All the while, the lives of farm workers pass virtually unnoticed. In our society, farm work is never “respectable” work; well-to-do families would not approve of their children becoming farm workers.

Of course, gardeners are not entirely free to follow their whims. The rhythms of the seasons and the sudden shifts in the weather dictate some of what the gardeners do, but gardeners generally accept these demands beforehand. …

As suggested earlier, the key to the Procrustean trap is not the threat of physical force but rather the inability to imagine anything outside of the constrained present circumstances. The willingness to take seriously Margaret Thatcher’s preposterous claim—“There is no alternative”—perfectly sums up this state of mind.

A writer for Bloomberg.com reminisced about Thatcher’s Procrustean destructive success:

Of course, it’s possible to change a society and to drag it into the global economic monoculture. Mrs. Thatcher showed how: Break up collectives and make people feel a little bit more alone in the world. Cut a few holes in the social safety net. Raise the status of money-making, and lower the status of every other activity. Stop giving knighthoods to artists and start giving them to department-store moguls. Stop listening to intellectuals and start listening to entrepreneurs and financiers.
Stick to the plan long enough and the people who are good at making money acquire huge sums and, along with them, power. In time, they become the culture’s dominant voice. And they love you for it.46

Thatcher’s scheme actually worked. Her acolytes were so convinced that the mere utterance of Thatcher’s acronym TINA seemed sufficient to cut off any debate with skeptics.

The social-democratic or social-reformist left in Toronto certainly has reinforced the TINA principle. The so-called radical left, by keeping silent out of fear of becoming isolated, themselves becomes part of the social-democratic left. They, like the social-reformist left, provide no real alternative vision to the oppressive and exploitative nature of work characteristic of the power of employers as a class.

In fact, through their silence and their lack of criticism, they contribute to the perpetuation of class rule. They are, practically, social reformists who will never go beyond the existing class system despite their rhetoric of class struggle and struggle from below.

Socialism, Part Four: What It May Look Like, or Visions of a Better Kind of Society Without Employers


The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the democratic nature of the workplace, which is subject to control not only by the workers at the particular workplace electing managers but also by certain community organizations that represent specific community interests. From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 303:

(iii) Worker collectives produce public goods, inputs into the production process, or final consumption goods. Funds for the first are directly allocated to collectives by the relevant planning agencies (see below). The latter two categories of products are offered for sale in producer and consumer markets. In Schweickart’s view, attempts to centrally plan all inputs and outputs in a top-down fashion are simply not feasible, at least not in a complex and dynamic economy. But it does not follow that capitalist market societies are the only acceptable forms of economic organisation. It is possible to imagine a feasible and normatively attractive society combining markets with the socialisation of the means of production, that is, a society making use of producer and consumer markets after abolishing both capital markets and
labour markets.

In addition to the elimination of a market for workers and management of work enterprises being accountable to work councils and community councils, capital markets in the sense of an investment process owned by a minority would no longer exist. There would, nonetheless, be markets that produced means of production and markets that produced consumption goods. For example, at the brewery where I worked, the workers who produced the soaker or the filler that the brewery workers used would be subject to competition from other workers who produce soakers or fillers. Workers in the brewery would be subject to competition from workers in other breweries.

Unfortunately, Smith does not elaborate much on what he means by the abolition of capital markets. His reference to David Schweickart’s work Against Capitalism, however, gives a clue to what he means. Schweikart has the following to say (page 172):

First, we issue a decree abolishing all enterprise obligations to pay interest or stock dividends to private individuals or private institutions.

This decree will need no enforcement, since enterprises are not going to insist on paying what they are no longer legally obligated to pay.

But Schweickart sees a flaw in the abolition of all capital markets, at least immediately (page 173):

6.3.2 Once More, This Time with Feeling (for the Stockholders)

Too Simple? Of course. The above is not meant to be a realistic scenario. Above all, it fails to take into account the fact that millions of ordinary citizens (not only capitalists) have resources tied up in the financial markets. People with savings accounts or holdings in stocks and bonds have been counting on their dividend and interest checks. (Nearly half of all American households have direct or indirect holdings in the stock market, mostly in pension plans.) Eliminating all dividend and interest income-which is what Radical Quick does-will not strike these fellow citizens as a welcome reform. Let us run through our story again, this time complicating it to take into account their legitimate concerns.

Schweickart, realistically, recognizes that workers have investments in capital markets and hence are in some ways tied to such markets. His solution is to imagine a situation where at least the key corporations, due to the circumstances of a crisis, would be subject to elimination from capital markets (pages 173-174):

Let me first set the stage a little more fully than I did with Radical Quick. Let us suppose that a genuine counterproject to capitalism has developed, and that, gradually gaining in strength, it has been able to elect a leftist government that has put most of the reforms outlined earlier in this chapter on the table and has secured the passage of some of them. Suppose investors decide they’ve had enough and begin cashing in their stock holdings. A stock-market crash ensues. In reaction, the citizenry decide that they too have had enough-and give their leftist government an even stronger mandate to take full responsibility for an economy now tumbling into crisis.

Our new government declares a bank holiday, pending reorganization (as Roosevelt did following his election in 1932). All publicly traded corporations are declared to be worker-controlled. Note: This control extends only to corporations, not to small businesses or even to privately held capitalist firms. It is decided that it will be sufficient  to redefine property rights only in those firms for which ownership has already been largely separated from management. (With the “commanding heights” of the economy now democratized, most other firms can be expected to come under increased pressure from their own workers, over time, to follow suit.)

The exact way in which capital markets would be reduced and eventually abolished would vary across time and place, depending on circumstances.

As I have emphasized throughout this blog, though, it is much less likely that workers will be receptive to a call for the elimination of capital markets and markets for workers unless they find the situation to be unfair. The ideology of the social-reformist left consistently makes reference to fairness within the limits of the employer-employee relation. We need to break with such ideology if we are to initiate such a process without having to respond erratically when a crisis hits.

Or are there alternatives? What do you think?

Socialism, Part Five: What It May Look Like, or Visions of a Better Kind of Society Without Employers


The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the right of use by workers of the places, machinery and so forth where they work, but with the local community being the owner of local resources (and regional and national communities being the owners of regional and national enterprises of regional or national scope). From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 304:

(iv) Workers in enterprises are granted use rights to facilities and other
means of production. But ultimate ownership rights remain with the local
community. Workers cannot use their enterprise as a cash cow and then walk
away; they have a legal duty to maintain the value of the community’s
investments. If sufficient depreciation funds cannot be appropriated from
revenues to maintain the value of these investments, it is the responsibility
of community banks to shut down an enterprise. Once depreciated funds
have been deducted, the remainder of the revenues from public allocations
or sales in consumer/producer markets (apart from the taxes to be considered
below) are then distributed among the members of the collective according
to formulae set by the democratically accountable management

Since the workers are the trustees of the workplaces and not their owners, each year, the workers in the sector that produces either consumer goods for the market or the raw material, machines and so forth required to produce both themselves and consumer goods, have to set aside a certain amount of the proceeds from sales to purchase worn out means of production. The workers must also include in that depreciation fund a fund for repairs.

Workers have a responsibility to the present community and to future communities to maintain the general conditions for the continued livelihood of the community. This means that any cooperative that fails to maintain the value of the means of production must be closed down, and workers in such cooperatives must find work in another, more viable cooperative.

The sales revenue will be distributed generally into three parts: (1) the depreciation fund, (2) a tax on capital assets (which will be explained in another post), and a residual of what is called profits, to be distributed to the members of the cooperative as their personal income according to distribution rules created by themselves. (There also may be income tax and consumption tax, but I will not address that).


Socialism, Part Six: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the capital-assets tax, which is the basis for the generation of new investment and the supply of public goods. From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), pages 304-305:



(v) The origin of funds for new investment and public goods is a flat tax
on the non-labour assets of all enterprises.16 In Schweickart’s proposal, the
rate of this tax is initially set by a democratically elected legislature, operating
on the national level. This legislature also decides on the appropriate division
of revenues between funding for national public goods and funds that are
allocated to democratically elected regional and local legislative bodies. Each
of these assemblies, in turn, must also decide upon the level of funding for
public goods to be supplied in the relevant geographical area vis-à-vis the
level of funds set aside for distribution to the level below it. These legislative
bodies can also set aside a percentage of funds for investment in areas of
pressing social needs.


(vi) After all decisions have been made regarding the general level of new
investment and the order of social priorities, and after funds required for
public goods on the national, regional, and local levels have been allocated, the remaining revenues are distributed to local communities on a per capita
basis (at least this should be the presumption in the absence of compelling
reasons to do otherwise, such as the need to temporarily favour historically
disadvantaged regions). Community banks would then undertake the actual
allocation of new investment funds to worker collectives. The boards of
directors of these banks would include representatives of a broad range of
social groups affected by the banks’ decisions. New enterprises would be
formed, and existing ones expanded, through allocations by community banks
rather than private capital markets.


The capital-assets tax assumes that the workers have right of use of most of the means of production of our lives (there may be some room for independent businesses, but they do not form the bulk of economic activity). If they do, then instead of new investment being derived from the private decisions of boards of directors of corporations, it is derived from a democratically-elected national legislature which sets the rate of the capital-assets tax.

There are two general aspects to the tax (like any tax): the flow from a source to the government and the flow of the tax to institutions. The source is the capital assets used by democratic worker cooperatives. It is a flat-rate tax based on the value of the means of production that is applied to capital assets used by workers.

The flow of the revenue generated by the tax to people only arises after deductions from revenue required for investment in projects at the national level. Once this has been deducted, then the revenue is distributed to the regional communities on a perc capita (per person) basis; the regional democratic bodies which in turn allocate investment funds for investment in projects at the regional level. The remainder is then allocated to the local community via public banks, likewise on a per capita (per person) basis.

This principle of distribution of the revenue generated from the capital-assets tax on a per capita basis means that, in areas where there is a concentration of means of production relative to the number of people who live in the area, the outflow of taxes paid will be relatively greater than the inflow of revenue from taxes when compared to areas where the concentration of means of production is relatively smaller.

The capital-assets tax is to replace interest and dividend payments. As noted in the previous post on this topic, since many workers in the more industrialized capitalist countries have at least some investments in the stock market or hold bonds, GICs, and so forth and, furthermore, pension funds are generally linked to investment, a policy that at one sweep sought to abolish interest and dividend payments may well be opposed by the working class, initially. Consequently, some form of transitional program may be necessary, one where interest and dividend payments are gradually phased out, or one where compensation for nationalization occurs. In any case, the ultimate goal is to abolish interest and dividend payments and replace them with a flat capital-assets tax.

Socialism, Part Seven: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the criteria to be used in the distribution of the flat-rate capital-assets tax, which is the basis for the generation of new investment (and which was outlined in the last post on this topic). From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 305:

(vii) When allocating investment funds for new worker collectives and the
expansion of existing ones, community banks must take three main questions
into account. Is there likely to be sufficient demand for the output of the given
enterprise for it to maintain the value of the community’s investment and
provide adequate income for its members? Will the investment provide stable
employment? And is the investment consistent with the set of social priorities
democratically affirmed on the national, regional and local levels? Extensive
external financial and social audits can be regularly imposed on all enterprises
and community banks to assess their performances in terms of these criteria.
These independent social audits are a crucial component of the socialist version
of the principle of transparency, institutionalising a level of accountability
and transparency far beyond the limited neoliberal version of the principle.17
Community banks can then be ranked on the basis of the results of these
audits. The level of income of the staff of a particular bank, and the amount
of funds allocated to this bank for distribution in the future, are determined
by the bank’s place in this ranking.

The distribution of investment funds to existing and new worker collectives through community banks would be controlled by taking into account:

  1. Whether the level of demand would likely be sufficient to not only maintain the value of the means of production (machinery, buildings and so forth) but to ensure a reasonable income for the working members of the cooperative.
  2. Whether the investment would result in unemployment of the members, or would there be sufficient work for all members (without jeopardizing efficiency, presumably).
  3. Whether the investment would result in effects that contribute to the realization of plans democratically decided on at the local, regional and national levels.

To ensure that these criteria for lending to worker cooperatives via public banks were satisfied, social audits could be carried out systematically and transparently. Since the revenue of workers in public banks would be a function of their success in extending loans based on the three criteria (and subject to social audits), workers in public banks would be motivated to more likely extend loans to worker cooperatives that were most likely to meet these three criteria.

Socialism, Part Eight: What It May Look Like, or Visions of a Better Kind of Society Without Employers

This is a continuation of earlier posts on the subject of the nature of socialism–a society that aims at the abolition of the power of employers as a class and the initial appropriation of the necessary requirements for us to control our lives as a collectivity and as individuals.

In the following, Tony Smith elaborates on some kinds of relations that may emerge between a nation that is socialist and other nations (whether socialist or not). From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), pages 305-306:

(viii) In Schweickart’s model, there are no markets for capital assets, and
so there will be no capital flight in the form of cross-border investments in
capital assets. There will also be little foreign direct investment, since worker
collectives are unlikely to outsource their own jobs, and community banks
are assessed according to the extent they create employment in their own
communities. But there will still be trade across borders. For a period of time,
this may include trade with regions that have not institutionalised a version of economic democracy. In such circumstances, regions committed to socialist
globalisation should follow the principle of fair trade rather than ‘free’ trade.
To ensure that this occurs, Schweickart calls for a ‘social tariff’.18 If oppressive
labour practices hold down wage levels in a given region, the prices of imports
from that region will be raised to what they would have been had worker
income been comparable to the level prevailing in the importing country. A
social tariff will also be imposed to compensate for a lack of adequate spending
on the environment, worker health and safety, or social welfare in the exporting
nation. The revenues collected by this tariff will then be distributed to the
groups in the exporting country with the best record of effectively implementing
anti-poverty programmes, whether or not they are agencies of the government

There will little if any flow of capital investment beyond the borders of the socialist nation (hence little or no capital flight); workers are unlikely to invest abroad rather than locally since this would result in loss of employment. Furthermore, community banks would prevent such investment through its enforcement of the criteria of employment creation (see previous post).

It is possible that trade between socialist and non-socialist nations would still occur. In trade between a socialist nation and a capitalist nation, the socialist nation would create a social tariff, imposing it to prevent unfair competition on the basis of capitalist ways of producing wealth (such as reduced wages or lack of health and safety measures).

This social tariff, rather than being used for the benefit of the socialist workers and community members, would flow back to workers in the non-socialist world as an expression of solidarity with them via agencies or organizations of the exporting non-capitalist country that have proven to be effective enforcers of anti-poverty measures in the non-capitalist country.

Smith adds three other measures that have an international focus: (1) the creation of international monetary clearing units, which would serve as world money that would function, among other things, to ensure that excessive trade imbalances would not arise, especially for the more vulnerable parts of the world economy; (2) a global representative assembly that would legislate and oversee issues between nations in a much more democratic manner than the current United Nations model; and, finally, (3) a democratically accountable international planning agency that would ensure equitable investment funding for the provision of international public goods, distributed according to the number of people (per capita), with provisions for exceptions on the basis of past historical biases of economic development.

All these measures refer to what has come to be known as “market socialism.” Such a system, if democratically organized, would likely not only be more efficient than a capitalist economy but definitely superior in terms of ethics. However, before addressing that issue in further posts, I will, in a future post, consider whether the idea of market socialism is an adequate model for a future society without capitalism, or whether it leaves out of consideration some essential aspects that need to be considered if we are to resolve our social problems on this planet.

Socialism, Part Nine: An Inadequate Conception of the Nature of Freedom and Necessity, or Free Time and Necessary Time, Part One

The class formal principle of employers–that workers receive from society what they contribute (contradicted at a practical level through systematic exploitation of workers necessarily in a capitalist context–that is why it is a formal principle that contradicts reality–see  for example The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One) would be realized in a socialist society on average since exploitation of one class by another would be eliminated. However, the principle of relating individual life to labour is still a bourgeois or capitalist principle that needs to targeted because it still reduces human beings to merely one criterion–labour. From  Karl Marx, Critique of the Gotha Programme, pages 86-87 of Marx-Engels Collected Works, volume 24):

Hence, equal right here is still in principle bourgeois right, although principle and practice are no longer at loggerheads, while the exchange of equivalents in commodity exchange only exists on the average and not in the individual case.

In spite of this advance, this equal right is still constantly encumbered by a bourgeois limitation. The right of the producers is proportional to the labour they supply; the equality consists in the fact that measurement is made with an equal standard, labour. But one man is superior to another physically or mentally and so supplies more labour in the same time, or can work for a longer time; and labour, to serve as a measure, must be defined by its duration or intensity, otherwise it ceases to be a standard of measurement. This equal right is an unequal right for unequal  abour. It recognises no class distinctions, because everyone is only a worker like everyone else; but it tacitly recognises the unequal individual endowment and thus productive capacity of the workers as natural privileges. It is, therefore, a right of inequality, in its content, like every right. Right by its nature can exist only as the application of an equal standard; but unequal individuals (and they would not be different individuals if they were not unequal) are measurable by an equal standard only insofar as they are made subject to an equal criterion, are taken from a certain side only, for instance, in the present case, are regarded only as workers and nothing more is seen in them, everything else being ignored. Besides, one worker is married, another not; one has more children than another, etc., etc. Thus, given an equal amount of work done, and hence an equal share in the social consumption fund, one will in fact receive more than another, one will be richer than another, etc. To avoid all these defects, right would have to be unequal rather than equal.

But these defects are inevitable in the first phase of communist society as it is when it has just emerged after prolonged birthpangs from capitalist society. Right can never be higher than the economic structure of society and its cultural development which this determines.

Neither Tony Smith nor Schweickart, both advocates of market socialism, refer to this. For Schweickart at least, any elimination of the market economy will lead to various negative effects, such as authoritarian conditions. Sam Gindin, similarly, does not take into consideration the inadequacy of markets as an expression of human freedom.

This model so far is a market-socialist model. Rather than conceiving it as a definitive model of how future society will work, however, we should consider it as a transition society that may last for longer than Marx thought but, nonetheless, is itself inadequate.

This inadequacy can be seen in the omission by Smith and Schweickart of any consideration of the need to transform the division of labour. In Schweickart’s book, for example, there is no discussion at all of the division of labour. If we are to live in a full life, though, we need to reduce or eliminate the gap between labour that is predominantly physical and labour that is predominantly intellectual.

Another aspect over which both Smith and Schweickart are silent is the implication for human beings if prices are to continue to exist. Schweickart does not directly address the question, but his assumption that prices will always exist fails to address the problem of the continued valuation of objects ultimately in terms of labour. Marx’s theory of exploitation is not just a critique of exploitation but a critique of the form of exploitation–through the mediation of relations between objects instead of a conscious connection with other human beings. Human beings, via ultimately money, are related to each other via objectified labour measured externally as money.

Market socialism may well be needed for some time, but it is inadequate as a form of society for human beings. At first, it is necessary to create a society where the reality of labour time being the measure of human wealth corresponds to the principle of determination by labour time: what workers contribute to society and what they receive from it do not differ quantitatively (workers are not exploited).

However, the principle of the life process is still based on one principle–labour and its measure, time. The human life process, however, is much more than this process, and the need for human beings will be to surpass this principle and to break the link between contribution and the flow of goods and services based on that contribution.

Now, let us listen to a person who claims to aim at realistic socialism–Sam Gindin, head of the Toronto Labour Committee (and former research director for the Canadian Auto Workers (CAW) (now Unifor). Mr. Gindin implies that, due to what he calls scarcity, we will always need a market form of socialism:

Scarcity — the need to make choices between alternative uses of labor time and resources — is unlikely to end outside of utopian fantasies because popular demands, even when transformed into collective/socialist demands, are remarkably elastic: they can continue to grow. Think especially of better health care, more and richer education, greater care for the aged, the expansion of art and of cultural spaces — all of which require labor time and generally also complementary material goods. That is, they demand choices.

Furthermore, the calculation of scarcity can in particular not ignore leisure, with leisure representing the “realm of freedom.” Even if we produced enough of what we wanted, as long as some of that labor isn’t completely voluntary but instrumental, then effective scarcity of either labor time or the good/service remains. Workers may even like their jobs and see them as a source of creative expression and satisfaction, but as long as they’d periodically prefer to not show up or leave early, some further inducement is needed to offset the sacrifice of providing those labor hours. That inducement is a measure of the persistence of effective scarcity. And once scarcity is acknowledged as an inherent and essentially permanent frame in the restructuring of society, the question of structured incentives becomes paramount. This is not just a matter of motivating adequate hours of work, but of affecting its intensity and quality, and influencing where that work is best applied (i.e., determining society’s overall division of labor).

Mr. Gindin, it is clear, identifies the need to make choices of “labour time and resources” with scarcity. There is an identity between the need to make choices in the realm of labour and the continued existence of scarcity. 

The counterpart of this is the implicit denial of the need to make choices in “leisure,” which is identified with the “realm of freedom.” Mr. Gindin, of course, fails to justify this identity and fails as well to explore the nature of “leisure.” 

Mr. Gindin follows neoclassical economics (which justifies capitalism in various ways) by arguing that “scarcity” in the abstract (eternally or forever, without qualification) characterizes human life. Consider the following quotation from a typical textbook on neoclassical (or capitalist) economics (Steven A. Greenlaw, Timothy Taylor, Principles of Microeconomics, page 8:

Economics is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life. Scarcity means that human wants for goods, services and resources exceed what is available. Resources, such as labor, tools, land, and raw materials are necessary to produce the goods and services we want but they exist in limited supply. Of course, the ultimate scarce resource is time- everyone, rich or poor, has just 24 hours in the day to try to acquire the goods they want. At any point in time, there is only a finite amount of resources available.

People live in a world of scarcity: that is, they can’t have all the time, money, possessions, and experiences they wish.

Mr. Gindin argues, then, that scarcity arises objectively when there are alternative possibilities that exist for the use of resources and labour time. Choices must be made, and the choices necessarily involve the realization of some projects and the exclusion of others. We can never have our cake and eat it simultaneously.

This idea seems valid, and yet it is really superficial. Mr. Gindin practically wants to ridicule those who believe that work can be itself a realm of freedom–despite the need to make choices and despite the need to engage in the production of food, shelter, clothing, health care, education and so forth. To be realistic for Mr. Gindin is to believe in the necessity of drudgery throughout human history. What else does he mean when he writes “And once scarcity is acknowledged as an inherent and essentially permanent frame in the restructuring of society, the question of incentives becomes paramount.”

Mr. Gindin’s implicit assumption is that all incentives are external or instrumental in nature. There is, for this social democrat, no such thing as an intrinsic incentive (or motivation). Such an assumption needs to be questioned.

Rather than addressing the issue of scarcity (pure necessity for Mr. Gindin) directly, let us look at the so-called opposite realm of leisure (pure freedom for Mr. Gindin).

He claims that leisure is somehow the “realm of freedom.” What leisure is that? Leisure is a concept that is purely non-instrumental, it would seem, for Mr. Gindin. All leisure.

As an aside: Mr. Gindin borrows his concepts from current experiences and then generalizes them throughout history. Thus, leisure in the current context of work life characterized by the power of employers using people as things for their own ends is often a compensation for the drudgery of such daily life. Such an uncritical use of the concept of leisure will be addressed in another post.

Thus, Mr. Gindin separates completely labour and leisure. Leisure is purely non-instrumental, and labour can be to a certain extent enjoyable but, ultimately, is tainted with instrumentality by its very nature. Since leisure is identified with the “realm of freedom” and non-instrumentality, and labour is tainted with instrumentality by its very nature, scarcity must arise by necessity since workers by their very nature would prefer leisure (freedom) over work (necessity and instrumentality). To engage in work, workers must be externally motivated to do so (since their default mode is to prefer leisure (pure freedom) over work (pure necessity).

Mr. Gindin’s assumption concerning the so-called identity of leisure with the realm of freedom and a lack of instrumentality is questionable. Many so-called leisure activities have an instrumental aspect to them. For example, I “leisurely” drove my daughter, Francesca, to the Royal Tyrrell Museum summer camp in Alberta some time ago, from Winnipeg, Manitoba, Canada (about a distance of 1,300 kilometers). It took a “leisurely” time of around 18 hours (stopping along the way for lunch and supper). For me, the activity was stressful though enjoyable (when compared to working for an employer) since Francesca was with me. The leisure activity of driving, though, was instrumental since it was a means to the end of developing my daughter’s capacities–that was the real end.

I had a choice to make in whether I was going to ask Francesca whether she wanted to go to the camp at all and, given that choice, what means I would use to achieve that goal. 

It cannot be said that the act of driving the car was secondary to the end of developing her capacities in a certain direction since she could not do so without attending the camp. The act of driving the car, though instrumental, was an essential condition for achieving that end (of course, it was not the only means by which to achieve that end–taking a plane, bus or train were possible alternatives). Furthermore, the end of developing Francesca’s capacities motivated me to drive for long periods of time in the first place, so the end itself formed an instrumental aspect of my activity of driving the car–it formed an ideal or motivating aspect of the physical aspect of driving the car.

My drive to Drumheller was thus instrumental for Francesca, my daughter, despite being a leisure activity. I had to make choices, of course. I could have taken a bus with her. We could have flown. The goal of the trip, for me, though constrained by certain means, was non-instrumental as an ultimately intrinsic end and yet was instrumental, ideally, in guiding my own activity in the present (driving the car towards Drumheller, Alberta, where the Royal Tyrrell Museum is located). I had an internal incentive or intrinsic incentive.

Of course, human life is finite, but who would deny that? However, Mr. Gindin draws false conclusions from that fact not only in relation to leisure but also to “education” and “art.” These issues will be dealt with in another post or posts.

Mr. Gindin’s assumption, then, that leisure is the pure realm of freedom is simple nonsense. Mr. Gindin’s hidden assumption of the mutual exclusion of instrumentality and intrinsic ends–that they are separate–remains an unproven assumption.

But some may say that this is an example from the realm of leisure (which does not exclude the realm of necessity despite Mr. Gindin’s implicit assertion to the contrary). What of the realm of work? Does it need external incentives because alternatives arise and choices must be made?

In a follow-up post, I will shift to Mr. Gindin’s opposite view concerning work. Since leisure is supposedly the pure realm of freedom that lacks instrumentality, work, according to Mr. Gindin, if in any way instrumental (which it must be for Mr. Gindin), involves a lack of freedom, which is expressed in the concept of scarcity and thus requires external or extrinsic motivation. Just as leisure is supposed to be the pure realm of freedom, so too the realm of work is supposed to be always tainted by the realm of necessity. 

This issue has to do with the two main divisions of labour: academic or intellectual and practical (or manual or physical). I referred briefly to such a division when I provided a critique of such a division in schools and the school curriculum (see Critical Education Articles Placed in the Teacher Staff Lounge While I Was a Teacher, Part Three). 

(As an aside: Mr. Gindin probably follows his colleague, Leo Panitch (they wrote a book together), in rejecting (without understanding) Marx’s so-called labour theory of value (really a theory of commodities and capital). (I attended Mr. Panitch’s class on globalization in the winter of 2014. Mr. Panitch explicitly stated that he considered Marx to have taken a wrong turn in Capital, especially Marx’s use of some of the dialectic of the German philosopher, G.W.F. Hegel, who, among other things, argued for the need to reconcile opposite relations, such as freedom and necessity)


Socialism, Part Nine: Inadequate Conception of the Nature of Freedom and Necessity, or Free Time and Necessary Time, Part Two

This is a continuation of a previous post.

In a previous post, I criticized Mr. Gindin’s view that leisure is the pure realm of freedom. (Sam Gindin is (or was) head of the Toronto Labour Committee and former research director for the Canadian Auto Workers (CAW) (now Unifor)). In this post, I will criticize his view that work, being a world of necessity, requires external incentives.

Let us look at part of a previous quote from Mr. Gindin’s writing on socialism:

Furthermore, the calculation of scarcity can in particular not ignore leisure, with leisure representing the “realm of freedom.” Even if we produced enough of what we wanted, as long as some of that labor isn’t completely voluntary but instrumental, then effective scarcity of either labor time or the good/service remains. Workers may even like their jobs and see them as a source of creative expression and satisfaction, but as long as they’d periodically prefer to not show up or leave early, some further inducement is needed to offset the sacrifice of providing those labor hours. That inducement is a measure of the persistence of effective scarcity. And once scarcity is acknowledged as an inherent and essentially permanent frame in the restructuring of society, the question of structured incentives becomes paramount. This is not just a matter of motivating adequate hours of work, but of affecting its intensity and quality, and influencing where that work is best applied (i.e., determining society’s overall division of labor).

Mr. Gindin’s superficial imagination leads him to apply the current poverty of work relations, implicitly, as the standard for determining the so-called “realm of necessity.” Like leisure, which is supposed to be the pure realm of freedom, he separates freedom and necessity at work.

Consider my work at the brewery in Calgary, Alberta, Canada. When I worked at the brewery, we were obliged to work to produce not only beer, but beer for the market, and not only for the market but for the ultimate goal of more profit. We were things to be used by the employer (see https://theabolitionary.ca/the-money-circuit-of-capital/).

The riveting of material production to the goal of profit as the ultimate goal prevents workers who produce beer from reorganizing their lives both inside and outside the brewery in such a way that they can integrate their working lives with other aspects of the process of producing beer. For example, at the brewery in Calgary, there was a chemist who probably, among other things, tested the quality and properties of the beer being produced (being “only a bottling worker,” I really did not understand what the chemist did when I worked at the brewery).

Mr. Gindin tips his hand by referring to “scarcity” as somehow requiring incentives. He fails to explore what is meant by “incentives,” but implicitly assumes that all incentives are external and cannot be internal to the process which produces beer–a mechanical materialist point of view.

Under a socialist way of life, initially, workers would produce beer for others via the market. Even at this stage, here is no reason why workers could not begin to integrate a study of chemistry with the production of beer. The same could be said of the mechanics, physics and mathematics of beer production. For example, the filler–a machine for the filling of beer bottles rotated in a circular motion, with spouts attached to the machine. The velocity of rotation, the speed of the incoming bottles and so forth could be calculated and adjusted to attain certain specific rates of output and qualities of beer production (rather than being externally specified by managers as the representatives of employers).

John Dewey, an American philosopher of education, pointed out somewhere that there is no such thing as a purely biological human experience, a purely mathematical human experience, a purely physical human experience and so forth. Human experience is all those aspects and more. The apparently most mundane human act or experience contains a rich variety of potentially worthwhile pursuits that can be analyzed and pursued in ever greater depth and breadth. The production of beer can be integrated into the study of chemistry, physics, mechanics, biology, mathematics, history, geography and other sciences. Despite beer production being instrumental for the production of beer as a consumer good, it could be the point of departure for the infinite expansion of the capacities of workers who produce beer–with the only limit being their own capacities for the pursuit of such sciences and the finite period of time in which they live on this planet before dying. Workers could thus freely expand their intellectual and physical horizons even when they produce beer.

Mr. Gindin’s superficial separation of freedom and necessity at work, like his superficial separation of freedom and necessity during leisure hours (as pointed out in the previous post), leads him to false conclusions concerning the nature of work in a socialist society. This should not surprise anyone.

Mr. Gindin’s false conclusions concerning the nature of the relationship of freedom and necessity under socialism go beyond the issue of leisure and work. He claims the following in relation to education and art, among other areas of human life:

Scarcity — the need to make choices between alternative uses of labor time and resources — is unlikely to end outside of utopian fantasies because popular demands, even when transformed into collective/socialist demands, are remarkably elastic: they can continue to grow. Think especially of better health care, more and richer education, greater care for the aged, the expansion of art and of cultural spaces — all of which require labor time and generally also complementary material goods. That is, they demand choices.

In another post, I will show that Mr. Gindin’s reference to “more and richer education” can integrate–contrary to Mr. Gindin’s mechancial separation of the two–both elements of necessity and freedom. I may also address in a future post his claim that the demand for the expansion of art somehow involves the separation of necessity and freedom.


Socialism, Part Nine: Inadequate Conception of the Nature of Freedom and Necessity, or Free Time and Necessary Time, Part Three: Education

This is a continuation of a previous post.

In a previous post, I pointed out that Mr. Gindin claimed that the expansion of educational services would involve scarcity and therefore would require external or extrinsic motivation of some sort. (Mr,. Gindin is head of the Toronto Labour Committee and former research director for the Canadian Auto Workers (CAW) (now Unifor) union.

Let us look at part of a previous quote from Mr. Gindin’s writing on socialism:

Furthermore, the calculation of scarcity can in particular not ignore leisure, with leisure representing the “realm of freedom.” Even if we produced enough of what we wanted, as long as some of that labor isn’t completely voluntary but instrumental, then effective scarcity of either labor time or the good/service remains. Workers may even like their jobs and see them as a source of creative expression and satisfaction, but as long as they’d periodically prefer to not show up or leave early, some further inducement is needed to offset the sacrifice of providing those labor hours. That inducement is a measure of the persistence of effective scarcity. And once scarcity is acknowledged as an inherent and essentially permanent frame in the restructuring of society, the question of structured incentives becomes paramount. This is not just a matter of motivating adequate hours of work, but of affecting its intensity and quality, and influencing where that work is best applied (i.e., determining society’s overall division of labor).

Mr. Gindin’s use of “scarcity” is meant to show that he is being realistic. He claims the following:

Scarcity — the need to make choices between alternative uses of labor time and resources — is unlikely to end outside of utopian fantasies because popular demands, even when transformed into collective/socialist demands, are remarkably elastic: they can continue to grow. Think especially of better health care, more and richer education,

Mr. Gindin prides himself on being realistic (his reference to “utopian fantasies” is meant to show this). In reality, he is a most conservative “socialist” (really a social democrat) who operates in terms of the capitalist economy and its social institutions.

He converts the relation between necessity and freedom in a socialist society into a false relation of mutual exclusivity. Thus, for him in the educational sphere an expansion of educational services necessarily leads to a diminution of resources in other areas. If, however, freedom and necessity are united and reinforce each other in the educational sphere and in other spheres (an internal relation of freedom to necessity), there need not arise such a diminution since human activity in other areas will, in turn, be enriched.

Mr. Gindin does not explore how educational institutions may change under a socialist system and how this might effect the relationship between necessity and freedom both in work and outside work.

John Dewey, an American philosopher of education, certainly did not believe that education excluded either necessity or freedom. Operating between 1896 and 1904 in Chicago, the University Laboratory School (commonly known as the Dewey School) used the common needs or common necessities of most of humanity for food, clothing and shelter as the point of development for children’s physical, intellectual, emotional, ethical and aesthetic development. By having children try to produce food, clothing and shelter in various historical epochs through the occupations associated with these needs, Dewey hoped to bridge the gap between intellectual and physical life that deeply divided American capitalist society.

Children started with purposes that they understood (the need or necessity for food, clothing and shelter) and were to come to understand the natural and social roots of varying the means for satisfying such common needs or common necessities.

Of course, the need for food and shelter (and, in most environments, the need for clothing), are given by the natural conditions of humans as living beings. They did not choose these conditions. However, through varying the means used by diverse historical societies, children can gradually come to learn about the potentialities of the natural world in diverse geographical areas and the diverse means by which human beings have come to produce their own lives. They learn increasingly how to control their own basic lives by experiencing diverse environments and diverse means by which to address problems associated with the satisfaction of the basic needs or necessities.

What of the learning of science? Does learning how to produce our basic necessities exclude the learning of science? Is there some sort of opposition between learning how to produce such basic necessities and the need to make choices about the learning of science? Does learning how to produce basic necessities in various environments involve a waste of time since the time could be spent learning about science? Mr. Gindin, with his false dichotomy of identifying the need to make choices with scarcity, would probably consider it necessary to choose between the learning how to produce the basic necessities and learning science.

Dewey, however, did not believe that learning how to produce the basic necessities and learning science were mutually exclusive. Human beings naturally focus on ends since they are living beings; means are secondary to the ends of life. Dewey repeats in a number of works his contention that human beings naturally are more concerned with ends than with means: “For men are customarily more concerned with the consequences, the “ends” or fruits of activity, than with the operations by means of which they are instituted” (Logic: The Theory of Inquiry, 1938/1986, page 253). However, consideration of means is just as essential to the life process.

If intelligent action (which is what education needs to develop) involves the coordination and means and ends, then education needs to have children learn to shift from their concern or interest or natural proclivity towards ends to a concern with the conditions for the creation of those  ends and the coordination of the two.

Through engagement with the occupations linked to basic needs or necessities, the child gradually becomes conscious of the steps  required a as well as the material means necessary for the basic ends to be achieved. A shift in attitude gradually emerges, as means and their perfection become more important—but always-in relation to the end to be achieved.

The shifts from ends to means and their eventual coordinate relation can lead to the habit of ensuring that the ends desired are placed in the broader context of the means required to achieve them, and the choice of means to achieve ends be placed in the wider context of the total process of their impact on oneself and others.

A shift from concern from ends to means as a temporary end in itself can thus form the basis for the development of science.

Analytic categories characteristic of the diverse sciences are to emerge gradually. For
instance, the study of chemistry emerged from the process of cooking as well as from the metallurgical processes associated with the basic occupations. Similarly, physics emerged from the processes of production and use of tools.

The basic occupations  provide a bridge between common-sense inquiry and scientific inquiry. Without such a bridge, science would remain vague and would likely be resisted. Moreover, hose who do tend towards an interest in scientific work as such would likely become remote from the concerns of the common person, and would fail to understand how science is, ultimately, instrumental to-the human life process.

On the other hand-, the common, person could fail to appreciate how science can enrich her life and how it does affect her life in the modern epoch. For instance, Dewey mentions how metallurgical operations performed by human beings to transform metals into something useful resulted in the identification of about half a dozen metals (Logic: The Theory of Inquiry). By abstracting from the immediate relation between human beings and substances of the Earth, science has enabled human beings to identify over 60 metals. Through scientific inquiry, differentiation of metals and their diverse uses have expanded substantially in a relatively short period of time. The common person needs to understand the, need, (or scientific inquiry in relation to the limitations of common-sense inquiry as the scientist needs to understand that scientific inquiry may be an end for her but instrumental for many people.

The point of this is to show that the allocation of resources to the expansion of educational services need not entail some sort of “scarcity” merely because the allocation of resources to schools entails the non-allocation of resources in other areas. The allocation of resources in one area can result in the transformation of individuals into individuals with expanded horizons. The expansion of horizon can, in turn, lead to enhancement of experiences in other areas in a qualitative feedback loop that enhances the totality of live experiences.

As long as the resources allocated to schools involve the enrichment of both the living and social nature of human beings in a coherent fashion (taking into account both their nature as living beings and as social beings), the allocation of resources need not involve some sort of limit to other social activities; the necessity of producing food, clothing and shelter can lead to an expanded horizon and thereby to enhanced freedom.

Schools, if they contribute to the growth of children, would form one of many institutions that would contribute to the qualitative enhancement of our lives as individuals and as social individuals in a unique way.

An analogy may help. Look at your own body. You need your own kidneys in order to clean your blood of impurities and excrete them in the form of urine.  The energy allocated to this function limits the energy that can be allocated to your other organs. However, your other organs should not have all your energy allocated to them; there must be a balance between the allocation of your total energy to the diverse organs and their functions, with some organs requiring more energy, others less, depending on a number of circumstances (level of current activity, age, gender and so forth). Merely because each organ has a limited amount of energy and resources allocated to it does not mean that there is some sort of “scarcity” of energy and resources. Your freedom to move about in an effective–and graceful–manner depends on the varying allocation of resources and energy to diverse parts of the body.

If schools develop individuals who can appreciate the continuity (and difference) between their common-sense experiences and scientific experience, the resources allocated to it will feed back into other institutions in a coherent fashion.

Furthermore, individual children will gradually discover what unique contributions they can make to others, and they will come to appreciate the unique contributions of others to their lives.

This process of receiving something unique from others and contributing something unique to others defines the nature of true individuality. True individuality means the impossibility of substitution of function. Individuality is not only unique existentially—all existences are unique–but also functionally; structure and function meld into each other. Means and ends become one unique event that persists as unique in its actualization.

Modern human relations need to “capture” individual variations since modern human nature can advance only through such variations. These variations are unique. From John Dewey, Democracy and Education (1916/2004, page 96):

… he [Plato) had no perception of’ the uniqueness of individuals. … There being no recognition that each individual constitutes his own class, there could be no recognition of the infinite diversity of active tendencies and combinations of tendencies of which an individual is capable.

Plato also did not recognize that stability or harmony could arise through unique changes. From Democracy and Education, page 97:

But it is true that lacking the perception of the uniqueness of every individual, his incommensurability with others, and consequently not recognizing that a society might change and yet be stable, his [Plato’s] doctrine of limited powers and classes came in net effect to the idea of the subordination of individuality.

The emergence of distinct .or unique individuals arises from the process of acting
within a social environment; individuality is an achievement and not a presupposition. From John Dewey (1922), Human Nature and Conduct: An Introduction to Social Psychology, page 84:

This fact is accentuated and made fundamental by the fact of infancy— the fact
that each human being begins life completely dependent upon others. The net outcome accordingly is that what can be called distinctively individual in behavior
and mind is not, contrary to traditional theory, an original datum.

The development of a unique function and the reception of unique functions from others constitutes an essential element of freedom, and the development of such unique functions can only arise in conjunction with the realm of necessity and not apart from it. From Jan Kandiyali (2017), pages 833-839, “Marx on the Compatibility of Freedom and Necessity: A Reply to David James,”  European Journal of Philosophy, volume 25, page 837:

The key point is that Marx is describing a communist society as one in which individuals achieve self‐realization through labour—by helping others to satisfy their needs. Thus, … Marx claims that in non‐alienated production, I would enjoy an individual expression of life during production and in knowing my personality to be manifest in the product I create. However, … Marx emphasizes how my production satisfies another’s need, and how that production for another contributes to my own, as well as the other’s, self‐realization. Thus, when you consume my product, I experience the enjoyment of knowing that my activity has satisfied your need. Because I have satisfied your need, you recognize me as the ‘completion’ of your essential nature. And finally, because I recognize that you appreciate my production for you, my cognizance of your appreciation completes my self‐realization.

What I want to emphasize is that this account of self‐realization through labour that meets the needs of others, labour that characterizes production in a communist society, involves a distinctive conception of the relationship between freedom and necessity. According to this conception, freedom is not merely compatible with necessity. Rather, the necessity of labour is part of the explanation for why labour is a free and self‐realizing activity. For it is only in labour that ‘I would have the direct enjoyment both of being conscious of having satisfied a human need’, and it is only when I have satisfied another’s need that I can be recognized as completing another’s ‘essential nature’.

Mr. Gindin, with his talk of scarcity, has a mechanical conception of human nature and of human relations. It is a conception which splits human beings into beings of necessity (beings of nature) and beings of freedom (social beings).

This mechanical conception if human nature and human relations is shared by his colleague, Herman Rosenfeld (see Reform Versus Abolition of the Police, Part Five: More Philosophical Considerations). There seems to be a pattern emerging here: social democrats or social reformers view other people and human relations as external to each other–like ping pong balls rather than living and breathing beings with the capacity to engage in conscious and organized self-change.

Mr. Gindin also has a mechanical view of the relation of art in a socialist society since it, too, is restricted by “scarcity.” A critical analysis of such a view will be posted in the future.

Socialism, Part Nine: Inadequate Conception of the Nature of Freedom and Necessity, or Free Time and Necessary Time, Part Four: Art

This is the conclusion of a series of previous posts on the subject.

In a previous post, I criticized Mr. Gindin’s claim that the expansion of educational services would involve scarcity and therefore would require external or extrinsic motivation of some sort. (Mr,. Gindin is (or was) head of the Toronto Labour Committee and former research director for the Canadian Auto Workers (CAW) (now Unifor) union. See Socialism, Part Ten: Inadequate Conception of the Nature of Freedom and Necessity, or Free Time and Necessary Time, Part Three: Education.

Let us look at part of a previous quote from Mr. Gindin’s writing on socialism:

Furthermore, the calculation of scarcity can in particular not ignore leisure, with leisure representing the “realm of freedom.” Even if we produced enough of what we wanted, as long as some of that labor isn’t completely voluntary but instrumental, then effective scarcity of either labor time or the good/service remains. Workers may even like their jobs and see them as a source of creative expression and satisfaction, but as long as they’d periodically prefer to not show up or leave early, some further inducement is needed to offset the sacrifice of providing those labor hours. That inducement is a measure of the persistence of effective scarcity. And once scarcity is acknowledged as an inherent and essentially permanent frame in the restructuring of society, the question of structured incentives becomes paramount. This is not just a matter of motivating adequate hours of work, but of affecting its intensity and quality, and influencing where that work is best applied (i.e., determining society’s overall division of labor).

Mr. Gindin’s use of “scarcity” is meant to show that he is being realistic. However, just as Mr. Gindin does not criticize the particular form of education in modern society, he does not consider the limitations of the particular form of art in modern society. He writes the following:

Scarcity — the need to make choices between alternative uses of labor time and resources — is unlikely to end outside of utopian fantasies because popular demands, even when transformed into collective/socialist demands, are remarkably elastic: they can continue to grow. Think especially of … the expansion of art and of cultural spaces — all of which require labor time and generally also complementary material goods. That is, they demand choices.

Mr. Gindin seems to consider the “expansion of art and cultural spaces” in purely quantitative terms. The existing “art and cultural spaces” are supposed to be “expanded” rather than qualitatively transformed. Given the specific class nature of modern society dominated by a class of employers and the general class nature of human history after the agricultural revolution, the view that art and culture needs mere expansion rather than qualitative transformation reflects an impoverished view of the nature of socialist society. If socialist society is characterized by the abolition of classes, and classes involve exploitation and oppression, then the nature and development of art and culture should accordingly change qualitatively.

The issue can be approached from different angles. One issue is the question of the form of art (something which Mr. Gindin does not even adddress). John Dewey’s philosophy of art can aid us in understanding the limitations of Mr. Gindin’s characterization of “scarcity” and art in a socialist society.
Dewey points out that the form of modern art is isolated from common human experience. It is this isolated form itself that prevents a proper understanding of the nature of art as a refined development of common-sense human experience. From John Dewey (1934), Art as Experience , pages 3-4:

BY ONE of the ironic perversities that often attend the course of affairs, the existence of the works of art upon which formation of an esthetic theory depends has become an obstruction to theory about them. For one reason, these works are products that exist externally and physically. In common conception, the work of art is often identified with the building, book, painting, or statue in its existence apart from human experience. Since the actual work of art is what the product does with and in experience, the result is not favorable to understanding. In addition, the very perfection of some of these products, the prestige they possess because of a long history of unquestioned admiration, creates conventions that get in the way of fresh insight. When an art product once attains classic status, it somehow becomes isolated from the human conditions under which it was brought into being and from the human consequences it engenders in actual life experience.

When artistic objects are separated from both conditions of origin and operation in experience, a wall is built around them that renders almost opaque their general significance, with which esthetic theory deals. Art is remitted to a separate realm, where it is cut off from that association with the materials and aims of every other form of human effort, undergoing, and achievement. A primary task is thus imposed upon one who undertakes to write upon the philosophy of the fine arts. This task is to restore continuity between the refined and intensified forms of experience that are works of art and the everyday events, doings, and sufferings that are universally recognized to constitute experience. Mountain peaks do not float unsupported; they do not even just rest upon the earth. They are the earth in one of its manifest operations. It is the business of those who are concerned with the theory of the earth, geographers and geologists, to make this fact evident in its various implications., The theorist who would deal philosophically with fine art has a like task to accomplish.

If one is willing to grant this position, even if only by way of temporary experiment, he will see that there follows a conclusion at first sight surprising. In order to understand the meaning of artistic products, we have to forget them for a time, to turn aside from them and have recourse to the ordinary forces and conditions of experience that we do not usually regard as esthetic. We must arrive at the theory of art by means of a detour. For theory is concerned with understanding, insight, not without exclamations of admiration, and stimulation of that emotional out burst often called appreciation. It is quite possible to enjoy flowers in their colored form and delicate fragrance without knowing any thing about plants theoretically. But if one sets out to understand the flowering of plants, he is committed to finding out something about the interactions of soil, air, water and sunlight that condition the growth of plants.

The isolation of art from ordinary human experience distorts an understanding of the nature of art. Such a distortion is like a mirror, in which we only see the reflection offered to us and not the background material (and social) conditions for the mirror to function as a mirror. From Thomas Nail (2020), Marx in Motion: A New Materialist Marxism, page 149-150:

A mirror is something that reflects almost all the light that it receives within a certain limited frame. A mirror, however, also actively changes the light it receives and limits the range of light returned based on the limits of its frame. The danger of the mirror, as the myth of Narcissus reminds us, is mistaking the mirror for nothing other than the image it reflects. The mirror is thus a tricky kind of object because it so easily conceals its own quality, use- value, or sensuous materiality: the frame, the tain (silver backing), as well as the agency of light itself. Narcissus dies because he mistakes the sensuous agency of nature (water, light, air) as nothing other than himself.

The isolation of art in a socialist society from the rest of human experience would proceed to break down as the power of the class of employers was superseded and as the objectified power of workers is abolished and the human life process comes under the workers’ and the diverse communities’ control.

Mr. Gindin simply ignores any qualitative transformation of art and culture and refers to the (quantitative) expansion of arts and culture–as if the integration of the domain of art with other domains of life would not in itself involve “an expansion of art and culture.” Mr. Gindin fails to see that the modern art form itself expresses oppressive conditions, where art is relegated to an isolated activity by a relative minority. He succumbs to the ideology of the mirror, seeing only the reflected form of the alienated art form as a permanent form that merely requires–“mechanical” elements rather than organic elements that grow from the common source of human daily life experience.

Art in modern capitalist society would undergo a qualitative change–it would be freed of the exploitative and oppressive conditions that give rise to it as something separate and divorced from everyday living and working. From Piotr Hoffmann (1982), The Anatomy of Idealism: Passivity and Activity in Kant, Hegel and Marx, page 98:

In effect, since human labor is guided by conception and imagination, the Marxian “architect” from Capital is always capable of embodying in the material an original vision of things; he can tear the veil of banality and commonplace which stifles the potential of our sensibility. Needless to say, according to Marx this aesthetic potential of human senses must be stifled and repressed under the prevailing conditions of commodity production and of alienation of labor in general. 54 But it is the same conditions – the increasing sophistication of the labor-process – which both create the new potential of human senses and needs and repress its emerging claims and requirements. Indeed the whole process of labor, such as we know it in its past and present form, has that double, paradoxical function: at the same time that it creates those new and higher qualities of human life it also represses them by creating a mode of human intercourse which prevents their realization. “Certainly, labor obtains its measure from outside, through the aim to be attained and the obstacles to be overcome in attaining it. But [ …] this overcoming of obstacles is in itself a liberating activity [ …] the external aims become stripped of the semblance of merely external natural urgencies, and become posited as aims which the individual himself posits – hence as self-realization, objectification of the subject, hence real freedom, whose action is, precisely, labor. ” It is in

Grundrisse, not in

Pans Manuscripts, that Marx writes these words. His intention couldn’t be clearer: labor is not only a response to need and dependency upon external objects, but a truly creative and (as Marx put it) “liberating” process through which man gives a higher form to his life-activity, a form where his senses, needs and tastes become refined and stripped of their crude utilitarian functions.

In societies before the emergence of capitalism, art was not as divorced from daily life as it is now. Art forms were closely related to utility and daily living, with art expressing more, initially, an assumed magical function related to survival than some sort of separate form expressing emotion and aesthetic refinement. From Arnold Hauser (1951), The Social History of Art, Volume 1: From Prehistoric Times to the Middle Ages, page 3:

When the Palaeolithic artist painted an animal on the rock, he produced a real animal. For him the world of fiction and pictures, the sphere of art and mere imitation, was not yet a special province of its own, different and separate from empirical reality; he did not as yet confront the two different spheres, but saw in one the direct, undifferentiated continuation of the other. He will have had the same attitude to art as Lévy- Bruhl’s Sioux Red Indian, who said of a research worker whom he saw preparing sketches: ‘I know that this man has put many of our bisons into his book. I was there when he did it, and since then we have had no bisons.’ The conception of this sphere of art as a direct continuation of ordinary reality never disappears completely despite the later predominance of a conception of art as something opposed to reality.

Later on, emotional expression and aesthetic concerns emerged with the development of agriculture. Here art and aesthetics (the appreciation of art from the side of consumption) now became somewhat divorced from daily life–with the emergence of class society. Religious rite took the place of magic. However, even then the degree of separation of art from daily life characteristic of modern capitalist society, with art appearing to be a separate realm from the realm of human life and its self-reproduction, was much less. In feudal society, for example, production and consumption were not as separated since they were still closely linked to daily life and utility. Page 93:

‘Urban economy’ in the sense of Buecher’s theory of economic stages signifies, in contrast to the earlier production for own use, a production for the customer, that is, of goods that are not consumed in, the economic unit in which they are produced. It is distinguished from the following stage of ‘national economy’ in that exchange of goods still takes the ‘direct’ form—i.e. the goods go direct from the producing to the consuming unit, production as a rule not being for stock or the free market, but to the direct order of definite customers personally acquainted with the producer. We are thus at the first stage of the separation of production from consumption, but still far removed from the completely abstract method of modern production by which goods have to pass through a whole series of hands before they reach the consumer. This difference of principle between the medieval ‘town economy’ and the modern ‘national economy’ still remains, even when we pass from Buecher’s ‘ideal type’ of town economy to the actual historical facts; for although pure production to order never existed by itself, the relationship between the tradesman and consumer in the Middle Ages was far closer than nowadays; the producer was not yet faced with a completely unknown and indefinite market as he was later. These characteristics of the ‘urban’ way of production showed themselves in medieval art in a greater independence of the artist, on the one hand, as compared with the artist of Romanesque times, but, on the other hand, in a complete absence of that modern phenomenon, the unappreciated artist working in a total vacuum of estrangement from the public and remoteness from actuality.

The abolition of classes in a socialist society, undoubtedly, would revolutionize the relation between art and daily life–just as the agricultural revolution and the emergence of class societies also revolutionized the relation between art and daily life. The abolition of classes would mean that even in work relations there would be the possibility of expressing ourselves without exploitation and oppression preventing us from doing so. The relation between freedom and necessity would change accordingly. There would be a qualitative change in the nature of art as it became integrated into the daily lives of individuals–but this time on a higher, more refined plane than earlier.

Mr. Gindin, though, just sees “an expansion of art”–undoubtedly in purely quantitative terms. He has an impoverished view of the nature of a socialist society and the relation between freedom and necessity in a socialist society.

A Critical Look at The Socialist Project’s Pamphlet on Green Jobs Oshawa

The Socialist Project, “based in Toronto [Ontario, Canada] … works to generate and promote Left activism education and organizing. Our membership includes activists, students, workers educators and others interested in Socialist politics in Canada,” recently published (February 2020) a pamphlet titled Take the Plant–Save the Planet: The Struggle for Community Control and Plant Conversion at GM Oshawa

The pamphlet has an introduction and the mission statement of Green Jobs Oshawa. It refers to the closing of most of the GM auto assembly plant in Oshawa, Ontario, Canada, in December 2019.

The rest consists of various articles written by seven authors. The first article, “Unifor Settlement with GM– Footprint or Toe Tag?,” is by Tony Leah, “a retired autoworker and founding member of Green Jobs Oshawa.” The second and third articles, titled respectively, “GM Oshawa: Lowered Expectations Unexplored Opportunities,” and “The GM Strike and the Historical Convergence of Possibilities,” are by Sam Gindin, “who served from 1974 to 2000 as research director of the Canadian Auto Workers (Unifor’s predecessor), now an adjunct professor at York University. The fourth article, titled “Bringing SNC-Lavalin to Mind During an Uninspiring Federal Election,” is by Leo Panitch, Professor Emeritus,  Canada Research Chair, York University. The fifth article, titled “Take It Over: The Struggle for Green Production in Oshawa,” is by  Linda McQuaig,  ” journalist, columnist, non-fiction author and social critic.” The sixth article, titled “Green Jobs Oshawa and a Just Transition,” is by Rebecca Keetch, who “was a GM worker and is an activist with Green Jobs Oshawa.” The seventh article, titled “Why GM’s Oshawa Assembly Line Shutdown is a Black Eye for Unifor’s Jerry Dias,” is by Jennifer Wells, “a former columnist and feature writer for the [Toronto] Star’s Business section.” An appendix, titled “Feasibility Study for the Green Conversion of the GM Oshawa Facility: Possibilities for Sustainable Community Wealth: Summary Overview,” is by
Russ Christianson, “started working with small businesses and co-operatives and now travels across Canada working as a consultant who’s a business start-up specialist.”

I am not going to review the entire pamphlet. I addressed some of Mr. Gindin’s views in a previous post (see The Contradictions of Social Democracy: Mr. Gindin’s Musings on the Closure of GM’s Oshawa Plant).

The Introduction provides the framework for the pamphlet (pages 4-5):

Toward an Alternative

A small group of rank and file Oshawa workers and retirees understood that far more was needed; both logic and history suggested that appealing to GM to rethink their cold calculations was naive. They joined with other community allies, including the Durham Labour Council and supporters from the Toronto-based Socialist Project, to establish ‘Green Jobs Oshawa’. Its mandate was to explore and organize around other possibilities for the Oshawa facility.

Before looking at the proposed solution, the extent of the problem needs to be specified. Mr. Gindin’s first article does this:

The Oshawa facility currently supports 5,700 – 6,000 jobs: GM directly employs 2,200 hourly workers and some 500 salaried workers, with other companies employing over 3,000 to supply components (some working right inside the Oshawa facility). The new proposal means cutting this total by upwards of 5,300 jobs.

The loss of jobs for many families undoubtedly will be devastating for many within the community. The alternative proposed is outlined below (page 5):

Green Jobs Oshawa called on the federal government – or the municipal government with substantial financial and technical support from the feds – to take over the land and equipment idled by GM. The Oshawa facility could then be converted to assembling fleets of electric vehicles. The sale of these vehicles was to depend not on market competition, but a social plan based on direct government purchases of the products the government had invested in. The fleet vehicles involved would range from electric post office vans (as recommended earlier by the Canadian Union of Postal Workers) to hydroelectric vans, newly designed school buses, ambulances and police cars. With that base, the plant could also produce electric cars for individual consumers and, depending on how much space remained available, add other environmentally related products.

The message was that jobs, the environment, and the industrial capacities for conversion and restructuring are inseparable. From that perspective, saving Oshawa was not an end point but a beginning and an example to build on.

The proposed takeover of the plant, however, is linked to reliance on governments, without really addressing how much organized power would be required to force governments realistically to provide support for such a proposal. On the one hand, without such organized power, it is mere wishful thinking. This is implicit in the silences of even so-called progressive forces over the proposal (from Mr. Panitch’s article, page 34):

This is of course par for the course. The $3-billion left unpaid by General Motors from the $12-billion public bailout provided to it a decade ago could have covered all the costs entailed in implementing the Oshawa worker-environmental alliance plan to save the GM plant by taking it into public ownership and converting it into producing battery electric powered vehicles for Canada Post and other public fleets. That not even Unifor, let alone the NDP or the Green Party, has championed this plan only goes to show how bereft of big ideas are the foremost institutions that pass for the left in Canada today.

To demand that the municipal or federal (or, for that matter, provincial) governments take over the plant when even the so-called left did not rally behind the idea expresses an over-reliance on governments that is often expressed in the document. For example, Ms. McQuaig argues the following (page 36):

Of course, Gindin’s idea for producing public utility vehicles would require co-operation from the federal and provincial governments, and it is hard to imagine such co-operation from our current political leaders.

If it is unrealistic to expect co-operation from “current political leaders,” then such co-operation would require force–organized power by worker and community members. No such force exists–as those who wrote the introduction implied (page 5):

Frustration and Persistence

Green Jobs Oshawa developed a website, distributed leaflets to workers, held educationals and public forums in Oshawa and Toronto, organized petitions, commissioned a widely respected professional feasibility study (see appendix) confirming its case, received sympathetic attention in the press and gave numerous media interviews. Yet the committee couldn’t generate the necessary level of support, starting with the workers themselves.

If the level of support for the proposal of Green Jobs Oshawa could not even generate major support from those most directly affected by the shutdown, why would anyone think that the governments, which support the class power of employers, would support their plan?

An alternative that undoubtedly was discussed by some at the factory and within Green Jobs Oshawa is not even mentioned: the workers taking over the factory and starting to produce without GM. That alternative may not have been realistic either under the circumstances, but at least it should have been discussed in the pamphlet. It is nowhere to be found.

Funding for retooling and the production of electric vehicles would require a substantial investment, and that is perhaps the reason why the mere take-over of the plant may not have been realistic. On the other hand, a takeover of the plant could have had a different purpose–to outline how unfair this particular situation was, how unfair the situation of GM not repaying

The $3-billion left unpaid by General Motors from the $12-billion public bailout provided to it a decade ago could have covered all the costs entailed in implementing the Oshawa worker-environmental alliance plan to save the GM plant by taking it into public ownership and converting it into producing battery electric powered vehicles for Canada Post and other public fleets. (Mr. Panitch, page 34),

and how unfair in general it is for employers to have the power to make decisions independently of those who are most directly affected by them. When people find a situation unfair, they are sometimes willing to go to extreme lengths to address the situation. As Barrington Moore remarks, in his Injustice   page 510, says:

Anger at the failure of authority to live up to its obligations, to keep its word and faith with the subjects, can be among the most potent of human emotions and topple thrones.

However, for such a tactic to have gained a foothold, it would have been necessary to have done the necessary preparatory work–negative work, if you like, by engaging workers in conversation and discussion over the fairness of various aspects of their lives, both in the workplace and outside the workplace. Indeed, Mr. Gindin, in a different context, recognizes the need for longer-term preparation: a tiered workplace, where some workers doing the same jobs received a lower wage and lower benefits despite belonging to the same union–Unifor (page 25):

The tiered structure GM was able to put in place in 2007 saved the corporation billions, and to boot, provided the company with a divided and weaker workforce. Only a union crusade, not a luke-warm demand among miscellaneous other demands, could have forced GM to give this up. It would, for example, have meant starting at least a year or two in advance to prepare the members for a war with the company, solidly win over the broad public in spite of a prolonged strike, and isolate General Motors. The absence of such preparations didn’t just make it harder to eventually win; it sent the message to the company that the union wasn’t all that serious in putting an end to tiered wages and would be satisfied with some face-saving tinkering. Which is what the workers in fact ended up with.

The issue of fairness is hardly a minor issue. Workers will unlikely engage in sustained efforts and sacrifices unless they find their situation and that of others to be unfair in some fashion or other. There is no evidence, though, that Mr. Gindin and other radicals engaged in such necessary negative work.

Returning to the issue of the government, the pamphlet, in addition to unrealistically relying on governments rather than on organizing the anger of those who have been treated unfairly in various ways in a society dominated by a class of employers, idealizes public ownership. For instance, Ms. McQuaig in particular idealizes public ownership (nationalization) (page 36):

In fact, as we’ve seen, Canadian public enterprise has an impressive history and has made its mark in fields that are at least as complicated as vehicle manufacturing. The creation of a public hydroelectric power system in Ontario – and later in other provinces – was a stunning achievement that served as a model for US president Franklin D. Roosevelt when he created highly successful public power systems, including the New York Power Authority, the Tennessee Valley Authority, the Rural Electrification Administration, and the Bonneville Power Administration. There was also Connaught Labs, the publicly owned Canadian drug company, which made remarkable contributions to the development of breakthrough vaccines and treatments for a wide range of deadly diseases. And the publicly owned CNR exhibited innovative business skills in creating a viable national rail network out of five bankrupt railway lines and in establishing, during the pioneering days of radio, a cross-country string of radio stations, which became the basis of the nationwide CBC broadcasting network.

Public ownership which undoubtedly has the potential advantage of providing services based on need, not on the amount of money you personally have (such as medicare here in Canada). However, working in a public corporation should not be idealized; workers are still things to be used by employers, whether public or private (see The Money Circuit of Capital). Nationalization in the context of an economy dominated by a class of employers, by autonomous economic structures (money, finance, commerce and production) and an alienated political structure is hardly radical (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).

This idealization of public ownership is intensified when it is coupled with the war efforts of governments (page 37):

And, as we’ve seen, some of Canada’s most impressive public enterprises were created during the Second World War, when twenty-eight Crown corporations contributed enormously to Canada’s war effort, manufacturing airplanes, weapons, and communications equipment. Crown corporation Victory Aircraft provided the foundation for the postwar Canadian subsidiary that developed the Avro Arrow, a state-of the-art military fighter plane (discontinued by the Diefenbaker government for political, not technological, reasons). And Crown corporation Research Enterprises, teaming up during the war with Ottawa’s National Research Council, produced highly innovative optical and communications equipment, including radar devices, binoculars, and radio sets – equipment with countless applications that could have been successfully developed for the postwar market if our political leaders hadn’t succumbed to the notion that government shouldn’t be involved in
producing such things.

In the first place, the creation of public ownership under war conditions is hardly comparable to the situation which the GM Oshawa workers faced; during the Second World War, workers were much more organized–and armed, and many other capitalist states were willing to use direct physical force to achieve their goals at the expense of other capitalist states.

In the second place, as already indicated, Ms. McQuaig does not even ask what kind of lives those who worked in such Crown corporations lived. Their working conditions may have been better than in the privatized sector (though that requires research and should not be assumed), but better working conditions do not change the fact that workers are still things to be used by such corporations any more than the existence of a collective agreement does. Thus, Ms. McQuaig does not even address this issue.

This idealization of public ownership or nationalization continues in Ms. Keech’s article, page 41:

In November 2018, GM announced the closure of the Oshawa Assembly Plant. Workers in the community faced the crushing reality that their livelihood was being stolen. At a time of record profits, in the billions of dollars, GM showed a complete disregard for thousands of workers and their communities.

Out of this devastation Green Jobs Oshawa was born. Green Jobs Oshawa is a coalition of workers, environmentalists, academics, and community members. We recognized, in the midst of a climate crisis requiring immediate action and a community facing massive job loss and disruption, the need for a bold idea: bring the plant under democratic control through government ownership and build battery electric vehicles or other products that meet community need instead of corporate greed.

Ms. Keetch would need to elaborate on how her claim that “the plant would be under democratic control through government ownership” is possible given that the government is formally democratic but in practice is often anti-democratic (externally, through the use of police and, internally, through a hierarchic and undemocratic structure of an employer-employees relation). She does not do so.

She further idealizes the current political structure by having workers rely on it to transform the capitalist economy, which necessarily expands beyond any limits (see The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One), to a society free of a conflict between the nature of capitalist relations and the natural world in which we live (page 42):

Not only do we need to move away from fossil fuels and wasteful consumption – from harm and devastation – but we must build healthy, resilient communities while creating a strong sustainable economy.

We must demand massive government investment in green energy, green technology, and electrification. The government must take action, such as the immediate electrification of government fleet vehicles and public transportation. This must include public ownership of key manufacturing and resource sectors.

The environmental movement and the labour movement must demand this transformation include just transitions for workers and communities.

Unlike the other articles, Jennifer Wells’ article takes aim at Jerry Dias’ leadership. Jerry Dias is the president of Unifor, which represented the workers in the 2016 round of bargaining. She criticizes Dias for caving in on, for example, defined benefit pensions for new hires, thereby effectively creating a two-tiered workforce–a concession that Dias considered necessary in order to save jobs. Such jobs, however, were obviously not safe since most have been lost.

Although Dias’ sacrifice of one set of workers in concession bargaining should be criticized, as Ms. Wells does, she never asks whether collective bargaining has its own limits when it comes to representing the interests of workers. Her criticism remains well within the limits of faith in the collective-bargaining process itself to produce a “fair contract.”

Mr. Christianson’s appendix provides a feasibility study for the green conversion of the plant. I will only note the following. Under the heading of “Democratic Public Ownership,” he has the following (page 53):

…we consider democratic, public ownership to include governments, auto workers and community members. The legal structure of the organization can take many forms, including a crown corporation. In any case, the organization will need to
use a board matrix to ensure representation from government, auto workers, community members, people with the experience and skills required for the business, and a diverse mix of people (gender and ethnicity).

How democratic such an organization can be should have been outlined by, for example, giving other examples, where modern government provides the funding. In the general context of a society characterized by the domination of a class of employers, it is unlikely that it would be very democratic. At least at Mondragon, in Spain, the funding is not primarily from government–and yet it is debatable just how democratic Mondragon really is (see  The Poverty of Academic Leftism, Part Four: The Myth of Creating Socialist Spaces). Real democracy requires much more than the rhetorical phrase “democratic public ownership.”

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 Contradictions of Social Democracy: Mr. Gindin’s Musings on the Closure of GM’s Oshawa Plant

The following is a critique of an article written by Sam Gindin before the coronavirus pandemic emerged. It is relevant to the current situation because of the current call for public ownership as a solution to the problems that we face.

Mr. Gindin published an article on February 3, 2020, titled Realizing ‘Just Transitions’: The Struggle for Plant Conversion at GM Oshawa. Here Mr. Gindin attempts to criticize, on the one hand, what happened at GM Oshawa (elimination of around 2200 direct jobs when GM closed the auto plant), and on the other to suggest what should be done to prevent such a situation to arise in the future. However, his own social-democratic position, with its implicit assumption of not challenging the power of the class of employers, shines through in the article.

Mr. Gindin claims that GM’s decision to close, among other plants, the GM Oshawa plant left the recently elected Conservative government of Doug Ford “red-faced”:

The response of the federal government, which had used the preservation of jobs to justify giving GM billions in public funds during the financial crisis, was a tepid ‘disappointment’. The provincial government, which had been plastering the province with the slogan ‘Ontario is open for business’ was left red-faced when, as its billboards were going up, GM announced the closing of one of the largest workplaces in the province.

Where is there evidence that the Ford government was embarrassed at all? The idea of “open for business” includes the idea that, in the competitive struggle for survival, corporations will sometimes close down. The obverse side of “open for business” is–“closed for business.” Corporations are free to decide to open and close doors as they see fit–such is the nature of neoliberalism. Or is that not so?

Mr. Gindin then criticizes Ms. Dias, head of Unifor (which represented the workers at GM Oshawa):

Nor did the autoworkers’ union, Unifor, escape its own share of discomfort. Less than two years earlier, its leadership had negotiated lower wages and pensions at GM for new (essentially younger) workers in spite of those workers doing exactly the same job as those beside them. This betrayal of union solidarity was sold to the members as a victory because of its promised retention of jobs. When the closure exposed the job ‘guarantees’ as a sham, the national president reacted with predictable bluster and launched a public relations campaign to shame the corporation into reversing its decision.

Undoubtedly, Mr. Dias would have preferred for the plant not to close. To prevent such an action, Mr. Dias negotiated a collective agreement that involved “lower wages and pensions at GM for new (essentially younger) workers in spite of those workers doing exactly the same job as those beside them.” Mr. Gindin objects to such a negotiated agreement on the basis of “union solidarity.” The principle of union solidarity, it would seem, involves attempting to have all union members who are doing the same job to be treated in the same way. (Note that Mr. Gindin does not refer to “labour solidarity” or “worker solidarity” but “union solidarity.” Mr. Gindin is a friend of–unions. As I argued in another post, he is too close to unions to adequately criticize them. But that just as an aside).

Mr. Gindin then refers to how this “betrayal to union solidarity was sold to the members of a victory because of its promised retention of jobs.” It is of course possible to criticize Mr. Dias and others for sacrificing some workers in exchange for an impossibly guaranteed retention of jobs. However, Mr. Gindin does not explicitly question the power of employers to make decisions that involve closing down plants. Such power forms part of management rights and is often embodied in a management rights clause, implicitly if not explicitly. Why does Mr. Gindin not criticize this fundamental right?

And why does he not criticize the attempt by many unions to “sell” negotiated collective agreements on the basis of “fairness,” “decent work” and so forth? He certainly criticizes Mr. Dias’ attempt to “sell” the betrayal to union solidarity” in relation to the creation of a two-tiered collective agreement–but he nowhere criticizes the implicit or explicit acceptance of unions and negotiating committees to the legitimacy of collective agreements. Union reps often “sell” negotiated collective agreements that need to be ratified to their members by referring to them as “fair contracts”

“We have been trying to negotiate a fair contract for seven months,” said James Nugent, the bargaining team’s chief spokesperson [for CUPE Local 3902, or the Canadian Union of Public Employees Local 3902]. “We’ve been fighting for better learning conditions for our students and better working conditions for our members. Last night, our members sent us back to the bargaining table to keep fighting for those things, and that’s what we intend to do.”

Union reps often try to “sell” this ideology of “fair contracts” to their members. Why does not Mr. Gindin criticize this ideology and not just the ideology of two-tiered contracts? What happens if a collective agreement does not have a two-tiered provision? Does that then make it a “fair contract?” Mr. Gindin is silent over the issue–as are union reps. Why this silence?

Mr. Gindin then has a section that outlines an alternative:

Toward an Alternative

A small group of rank and file Oshawa workers and retirees understood that far more was needed; both logic and history suggested that appealing to GM to rethink their cold calculations was naïve. They joined with other community allies, including the Durham Labour Council and supporters from the Toronto-based Socialist Project, to establish Green Jobs Oshawa. Its mandate was to explore and organize around other possibilities for the Oshawa facility.

A problem already arises. I am ignorant of the specific nature of the Durham Labour Council, but the Toronto and York Region Labour Council does not call into question the legitimacy of the power of employers as a class; rather, it presupposes such legitimacy (John CartWright, president of the Council, refers to “economic justice”–implicitly referring to collective agreements. See my post  Ontario Looks Right–With Some Help From the “Left” ). I have criticized  as well some of the views expressed by the Steering Committee of the Socialist Project (see The Socialist Project’s Critique of Doug Ford’s Attack on Local Democracy Falls Short).

But let us proceed:

Four perspectives drove their ambitious proposal. First, GM was the problem, not the solution.

Yes, GM is a problem and not the solution–but it is not just GM that is the problem but the power of employers as a class, of which GM is only one example. Defining the problem only in terms of a particular employer is a typical social-democratic trick of focusing on one “bad” employer rather than the class of employers. Already, looking at alternatives seems limited.

Let us continue:

Second, expecting to compete in the market with China, Mexico or plants in the American south was no answer. It would only reproduce past pressures on wages and working conditions, past insecurities and past failures. Third, any alternative would need to introduce a product with special social significance. And fourth, the issue was not just jobs but retaining Canada’s manufacturing capacities.

Seeking an alternative product that would prevent competition with other workers in the same kind of market is certainly to be preferred. As for “a product with special social significance,” this issue is connected to the following:

The Oshawa facility could then be converted to assembling fleets of electric vehicles. The sale of these vehicles was to depend not on market competition, but a social plan based on direct government purchases of the products the government had invested in. The fleet vehicles involved would range from electric post office vans (as recommended earlier by the Canadian Union of Postal Workers) to hydro-electric vans, newly designed school buses, ambulances and police cars. With that base, the plant could also produce electric cars for individual consumers and, depending on how much space remained available, add other environmentally-related products.

The government would provide the bulk of demand for the output, with individual consumers making up any needed demand so that the Oshawa facility could be fully utilized (GM had identified under-utilization of the capacity of the plant as a major reason for its closing).

The government as the major consumer would also be the major owner:

In line with this outlook, Green Jobs Oshawa called on the federal government – or the municipal government with substantial financial and technical support from the feds – to take over the land and equipment idled by GM.

The government would then become both the employer and the major consumer. This solution may certainly have retained the jobs–but would not have changed the use of workers as things by government. Merely because the government is the employer does not prevent workers from being exploited and oppressed (see The Money Circuit of Capital).

Why did Green Jobs Oshawa not call on the government to take over the plant while concentrating decision-making power over the plant with the workers who worked there? Why did it not call into question the power of employers to make decisions at all that can affect the lives of many workers and the community–investment decisions? Why not use the GM shut down as an example of the dictatorial power of employers? Why this focus on the government as the saviour rather than the workers and the community?

Green Jobs Oshawa, rather, tried to evade this central issue:

The message was that jobs, the environment, and the industrial capacities for conversion and restructuring are inseparable. From that perspective, saving Oshawa was not an end point but a beginning and an example to build on.

Jobs, the environment and the industrial capacities for conversion are not just inseparable. To adequately address them, it is necessary to address the power of employers as a class, the infinite movement of capital (see  The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One) and the social and political structures that go with them.

The next section of the article is titled “Frustration and Persistence.” Mr. Gindin outlines what he believes is the cause of workers’ skepticism concerning such an alternative:

Frustration and Persistence

Green Jobs Oshawa developed a website, distributed leaflets to workers, held educationals and public forums in Oshawa and Toronto, organized petitions, commissioned a widely respected professional feasibility study confirming its case, received sympathetic attention in the press and gave numerous media interviews. Yet the committee couldn’t generate the necessary level of support, starting with the workers themselves.

The workers in Oshawa were frustrated and angry, but anger doesn’t necessarily translate into activism. Having experienced the steady drip-drip decline of the Oshawa complex, having recently suffered demoralizing defeats after defeats in bargaining, and now seeing the final end of vehicle assembly in the city, workers had shifted to survival mode. In that state of mind, most workers, it seemed, had simply stopped even thinking about possibilities. Nor was it unusual for workers to guard against hope creeping into their consciousness; risking the pain of once more seeing hopes dashed made even hope something to willfully avoid.

Though workers contacted by Green Jobs Oshawa generally considered the proposals on conversion as sensible, this was trumped by their skepticism of ‘sensible’ driving economic and political decisions. Critical here was the role of the union. As frustrated as workers were with the union, they still looked to its structures and resources for leadership, especially given the radical nature of the alternative proposed. But with both the national and local leadership not interested in and even hostile to an alternative, it was no surprise that workers were lukewarm to committing to a fight for a long-shot alternative.

Important here, as well, were the limits of the environmental movement. Environmentalists have most impressively raised public awareness of the looming environmental catastrophe. Yet they have been far less successful in getting the mass of working people on side. Two inter-related problems stand out. First, the promise of a ‘just transition’ is well-meaning but unconvincing to workers; workers rightly ask how such a commitment could be met in a society driven by competition and private profits. Second, with the environmental movement generally absent from workers struggles, developing ‘awareness’ could only go so far.

Workers have been indoctrinated from school to accept the power of employers to make decisions over their lives (as I show in a series of posts on indoctrination in schools via the silence of the Canadian history curriculum over the historical emergence of employers and employees. See, for example,  Co-optation of Students at School Through We Day, Or School Indoctrination, Part One). Various organizations and activities reinforce such indoctrination (union ideology of “fair contracts,” “decent work,” social organizations that deal with oppressing people in various ways (child and family services, social assistance, collection agencies, courts and the like). To counteract such indoctrination, it would be necessary to engage systematically in a critique of such indoctrination–but Mr. Gindin does not believe that such a systematic and engaged critique is necessary (otherwise, he would have engaged in such criticism when the opportunity presented itself in relation to pairing the fight for a minimum wage of $15 an hour with the idea of “fairness”).

The skeptical attitude of workers in relation to their own capacities for controlling their lives in the face of multiple forms of indoctrination and oppression is understandable, but Mr. Gindin ignores such indoctrination and oppression in practice.

The final section is called “Green Jobs Oshawa Lives On.” Mr. Gindin states what he thinks has and has not been accomplished in the Green Jobs Oshawa” campaign and what should be done:

Green Jobs Oshawa Lives On

Measured by its ability to keep the Oshawa facility humming, Green Jobs Oshawa was not successful; today, no more vehicles are being assembled in Oshawa. But measured by their work in placing a vital but largely ignored issue on the agenda – the steady loss of the productive capacity we will need to reconstitute the environment – brings a more encouraging conclusion.

Though the Oshawa facility is now quiet, the battle to revive it, with all its noise and productive bustle, continues. The facility still has waiting assembly lines, a body shop, a paint shop, and 10 million square feet of space. In Oshawa and nearby, there is no shortage of workers anxious to apply their too often underestimated skills, suppliers with flexible tooling capacities, and young engineers leaving university anxious to apply their knowledge to developing socially useful products. Green Jobs Oshawa continues to send out material and speak at events, making connections and spreading the urgent discussion of possibilities.

Workers – with the support of their union leadership where possible, on their own if that leadership is not sympathetic – should be setting up committees to consider the future of their workplaces and holding meetings to discuss the plant occupations, nationalizations and conversions in other cities facing major manufacturing shutdowns.

The Canadian Labour Congress should be supporting and coordinating such initiatives with its own research and also joining with the environmental movement to take the initiatives further. A significant step would be to lobby for a National Conversion Agency with the authority and financial and technical resources to intervene when plant closures occur or seem imminent.

Provincial federations of labour could focus on the environmental particularities of their own regions as, for example, the Alberta Federation of Labour has started to do in addressing how the inevitable transition away from oil could be economically and socially managed. This could include lobbying to establish local tech-enviro centers populated by the hundreds of young engineers mentioned above. Alongside coming up with possibilities for local conversion and development, they could contribute to spreading understanding to the community of what we face and what needs to be done.

For private sector workers, the crucial fact is that environmental pressures will require transforming everything about how we live, work, travel, and use our leisure time. Such a massive and unprecedented undertaking (the conversions entering and exiting World War II come closest) can, if done right, mean not a loss of jobs but a shortage of workers trying to meet society’s ‘regular’ needs and the demands of environmental reconstruction.

As for the public sector, the growing acceptance that environmental limits translate into limiting individual consumption in the developed countries leads to a greater emphasis on collective consumption. We are on the cusp of having to urgently redefine what we mean by ‘abundance’ and to place greater value on retrieving our time, leisure, social services (health, education), collective goods (public transit, libraries), and public spaces (sports, music, arts, parks) – a reorientation, that is, to the expansion of the public sector and public sector jobs.

Finally, for environmentalists, truly addressing the scale of what must be done means moving from a vague anti-capitalism to an aggressive – and confident – call for democratic planning and its corollary of fundamentally challenging corporate property rights. And addressing how to implement such policies, requires bringing the mass of workers on side to both the environmental necessities and to the overcoming of capitalism. This can only begin with actively supporting the defensive struggles of workers with the goal of linking them, as Green Jobs Oshawa has tried to do, to those larger issues of conversion and democratic planning in the shaping of the world to come.

In short, the issue is not simply a matter of bringing the environmental movement and the labour movement together; each must be transformed if the sum is to be more than the currently limited parts. The environmental movement must raise itself to a new level by concretely engaging the working class, and the labour movement must escape what, for it, has become an existential crisis. The threats and opportunities of the environmental crisis offer a chance for labour revival, but only if this incorporates a renewed approach to organizing, struggle, radical politics, and the maximization of informed membership participation. •

Mr. Gindin follows the British Labour Party, in its Manifesto, by jumping on the bandwagon of environmentalism–rather than focusing on criticizing the power of employers as a class (which would involve criticizing union ideology of “fair contracts,” “decent work,” “fair collective bargaining,” and the like) , first, and then linking that issue to environmental issues (see my post  The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One). Mr. Gindin only near the end of this section does Mr. Gindin address this issue:

Finally, for environmentalists, truly addressing the scale of what must be done means moving from a vague anti-capitalism to an aggressive – and confident – call for democratic planning and its corollary of fundamentally challenging corporate property rights.

But earlier, Mr. Gindin claims the following is the key issue:

But measured by their work in placing a vital but largely ignored issue on the agenda – the steady loss of the productive capacity we will need to reconstitute the environment

The deindustrialization of the advanced capitalist countries–is that really more important than another issue that has been “largely ignored”–the power of employers as a class? Which should the left focus on? And if we focus on the power of employers as a class, should we not criticize the ideology of many unions, which often try to sell the results of collective bargaining as a “fair contract?”

Frankly, Mr. Gindin’s approach fails to see the need for a rigorous and persistent struggle against those who justify collective agreements with such phrases. The same applies to other social movements who refer to “fairness” and the like. We need to use every opportunity to oppose such indoctrination.

Mr.Gindin, however, argues only for the positive side in the following:

Workers – with the support of their union leadership where possible, on their own if that leadership is not sympathetic – should be setting up committees to consider the future of their workplaces and holding meetings to discuss the plant occupations, nationalizations and conversions in other cities facing major manufacturing shutdowns.

To set up committees that are more than paper committees, it would be necessary to deal with the limitations of unions, collective bargaining and collective agreements while recognizing that collective agreements do provide some real protection for workers. If workers merely set up committees without engaging seriously in debate over the pros and cons of collective bargaining and collective agreements, then such committees will likely be isolated from the needs and interests of workers.

It is interesting that Mr. Gindin engages in abstract moralizing when referring to what the Canadian Labour Congress (an organization of affiliated unions that represent over three million Canadian workers) ‘ought or should do’:

The Canadian Labour Congress should be supporting and coordinating such initiatives with its own research and also joining with the environmental movement to take the initiatives further.

Another inadequacy of Mr. Gindin’s approach can also be seen from the above quote. Hegel, a German philosopher, saw through such empty phrases as “ought to” or “should” long ago (from the Encyclopedia Logic, page 30):

… the understanding, which regards its dreams (L e., its abstractions) as something genuine, and is puffed up about the “ought” that it likes to prescribe, especially in the political field-as if the world had had to wait for it, in order to learn how it ought to be, but is not. If the world were the way it ought to be, what then would become of the pedantic wisdom of the understanding’s “ought to be”?

This does not mean that we should not engage in wishing for what ought to be, but that what ought to be should be grounded in what is the case. What is the nature of the Canadian Labour Congress (CLC)? Is it realistic to believe that the CLC would ‘support and coordinate’ such initiatives? See my criticism of the position of the president of the CLC, Hassan Yussuff, in The Canadian Labour Congress’s Idealization of the Collective-Bargaining Process.  Would it not be better to engage in criticism of the CLC–what it is, how it operates and so forth?

There are other problems with this last section. Reference to “democratic planning” clashes with the call for the government (a capitalist government) to operate as employer. How is there democratic planning when the government is the employer? This is to idealize the government and the public sector. This idealization also is expressed in the following:

As for the public sector, the growing acceptance that environmental limits translate into limiting individual consumption in the developed countries leads to a greater emphasis on collective consumption. We are on the cusp of having to urgently redefine what we mean by ‘abundance’ and to place greater value on retrieving our time, leisure, social services (health, education), collective goods (public transit, libraries), and public spaces (sports, music, arts, parks) – a reorientation, that is, to the expansion of the public sector and public sector jobs.

This uncritical reference to the “public sector”–as if working for the government were somehow not subject to exploitation and oppression–is typical of social democrats. So too is Mr. Gindin’s one-sided reference to challenging “corporate property rights” without challenging the power of the state as a capitalist state, on the one hand, and as an employer, on the other. Again, see the money circuit of capital link above for a critique of this view.

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.

The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One

The following is the first of a two-part series of posts, providing a critical assessment of some of the views expressed in the 2019 British Labour Party’s Manifesto, It’s Time For Real Change.

The British Labour Party seemed to be more concerned with jumping on the bandwagon of climate change than really addressing the core issue of the power of employers as a class (and its relation to the rape of the Earth).

Thus, the very first section is entitled “A Green Industrial Revolution.” Climate change is a buzzword these days, but I doubt that it has the holding power necessary to make fundamental change. For many people, climate issues have little immediate concern for their daily lives as they proceed to drive to work for an employer, or take the bus, the subway or light rail transit. They then subordinate their wills to the employer (and try to get as much fulfillment as they can out of such work) and then return home to recuperate from their use as things at work (or go to malls to compensate for their less than fulfilling lives at work).

Furthermore, the whole issue of climate change that sidesteps the nature of the capitalist economy and the need to eliminate the power of the class of employers as such (and the associated economic and social structures) will never solve the problem of climate change. The issue is: Can climate change really be adequately addressed without addressing the power of employers as a class?

Can we continue to treat the Earth as unlimited and resolve the problem of climate change? The capitalist economy necessarily is a process that is infinite. Consider the money circuit of capital (see  The Money Circuit of Capital). If we look at the beginning and the end of the process, there is a quantitative difference between the two. This quantitative difference is profit, and that is the goal of the whole process. Thus, if you invest $1,000,000 at the beginning of the year and receive $1,100,000 at the end of the year, you receive $100,000 profit. This difference has arisen from a process of exploiting workers (that is where the $100,000 comes from–the workers produce more value than what they themselves cost to produce). However, once the capitalist process has ended through the sale of commodities and the capitalist has $1,100,000, this money is no longer capital. Capital is a process, and once it is finished, it no longer is: its birth is simultaneously its death, so to speak. The capitalist who now has $1,100,000, to remain a capitalist, must invest the money again–but because of competition with other capitalists, he will have to invest more than $1,000,000. There is thus an in-built infinite process of continuous expansion (interrupted by economic crises due to the impossibility of obtaining an adequate profit rate). Such an infinite process in the context of a finite Earth hardly bodes well for efforts to eliminate the causes of climate change.

The so-called “Green solution” that sidesteps the contradiction between an infinite economic process and a finite Earth will not likely be able to address the problem of climate change. The Labour Manifesto does just that–it sidesteps the power of employers as a class and the associated economic, social and political structures needed to maintain that power.

If workers are unwilling to oppose the class of employers at present, why would climate change motivate them to engage in such opposition? But then again, the purpose of the Manifesto is not to really challenge the power of employers as a class.

Of course, compared to anything proposed by the main political parties here in Canada, the Manifesto seems radical, such as a minimum wage of 10 pounds per hour, expansion of social housing, a pay raise of all public sector workers of 5%, nationalisation of key industries (such as energy and water), free tuition and so forth. Measured by the standard of the major political parties in Canada, it is a radical manifesto.

However, measured against the standard of a socialist society (see, for example, the series of posts on socialism on this blog),  the Manifesto is just one more expression of the lack of dealing directly with the class power of employers.

There are many other problems with this Manifesto, only some of which will be addressed in the next post in this series.

 

 

 

 

What Kind of Organization or Structure does an Anti-Capitalist Struggle Require?

The following is a critical look at a leftist conference held on April 26, 2014 in Toronto, Ontario, Canada, entitled Building Solidarity Against Austerity. Session 3. Fighting Austerity Today. Specifically, it looks critically at the presentation by Dave Bush, a leftist activist in Toronto, who argues that it is necessary to create an organization for the long-term struggle.

Mr. Bush implies that we need something beyond the New Democratic Party (NDP), which is a social-reformist political party, but he does not explicitly explain why we need something beyond it. Implicitly, though, he argues that a new organization is needed to fight against the neoliberal austerity program.

The new organization required seems to be a purely negative organization since its main purpose is to fight against austerity. Fighting against austerity, however, is not necessarily the same as abolishing the class relation between employers and employees.
Indeed, fighting against austerity is perfectly consistent with the stated aims of the NDP and other social democratic organizations. On the federal NDP website , it states:

Canada’s NDP has a proud history of fighting for ordinary Canadians and delivering results. Over the last 50 years, New Democrats have helped ensure the introduction of universal medical care, public pensions, and the expansion of Canada’s social safety net.

New Democrats are champions for people – not corporations or the ultra-rich. We believe in building a society that is more equal and more just for everybody. We are determined to fight for solutions people urgently need right now. From skyrocketing housing prices to soaring out-of-pocket healthcare costs – Canadians haven’t received the help they need.

Mr. Bush perhaps advocates for a new organization because the NDP does not, in practice, live up to its own claims. This interpretation is justified since Mr. Bush points out that we need to think about what is needed to the left of the NDP. Yes, we do. Unfortunately, his references to “ripping apart our collective services” seems to assume that public services are our services. Public services are hardly democratic, as he undoubtedly knows, and yet his vocabulary leads to a false image of the public sector as a collectivity of some sort. Workers in the public sector are employees just as much as employees in the private sector. How being “public services” magically converts being a public employee into a collective organization that provides “our collective services” is never explained.

Mr. Bush also refers to “making gains beyond a specific campaign” as being strategic. In what sense is it strategic? One campaign to which he refers in Halifax was to fight for converting hydro from a private corporation and monopoly into a public one. I certainly agree that privatization should be fought against, but the left then tends to limit its demands to its opposite–make it public, which is exactly what Solidarity Halifax advocated. Nationalizing utilities, however, is hardly a socialist measure if by a socialist measure you mean increased control over our lives at work and in life generally.

Nationalizing hydro does not even take it to the same level as education (at the public school level) and health services in that, at least theoretically, the use of the services do not require money. To use hydro that is publicly run by the capitalist state still requires that the users have money. How is that a major socialist gain? From the point of view of public workers, how is it a gain? Do they not have “jobs” working for an employer (the capitalist state)? Is that what is meant by socialism? How is that a enriching life, to have to work for the capitalist state as your employer?

Mr. Bush argues that advocating for the nationalization (or rather provincialization) of hydro was strategic for two additional reasons than just the need to protect public services as public: firstly the private corporation would raise rates whenever it wanted to do so, so there was a potential large opposition to it and hence for conversion to a public corporation. Secondly, none of the regular political parties, including the NDP, were making it an issue. Hence, Solidarity Halifax could distinguish itself by focusing on a large potential need.

However, It could in fact be said that Mr. Bush and the rest of the left is now in fact a purely anti-austerity movement. It considers, practically, that fighting against austerity is the only practical thing to do. To challenge the power of employers as a class is off the agenda forever for the left here in Toronto and indeed in most parts of Canada. At best, Mr. Bush illustrates the limits of the social-reformist left, which cannot envision a world beyond the power of employers as a class.

Mr. Bush also says that we need to engage in coalition building. On what basis? There was little discussion about what the goals of such coalition building would be,

Coalition building perhaps was supposed to be centered around the fight against privatization in general and the privatization of Canadian postal services in particular. This seems to be some of what Mr. Bush is aiming to achieve. However, having services performed by state employees rather than the private sector may be preferable in that, on the one hand, more employees are proportionately unionized in the public sector than in the private sector and, on the other, at least on the side of consumption workers who receive services do not need to pay directly out of their pocket; consumption is socialized and made available to all (in theory if not always in practice).

Although these two reasons form a basis for fighting against austerity, they hardly question the principle recognized theoretically but not practically by the Ontario Coalition Against Poverty (OCAP) (a leftist organization that resists policies that lead to “immiseration and destitution”): that economic coercion forms the necessary base of class relations in a capitalist society. State employees are subject to economic coercion like their private-sector counterparts (see The Money Circuit of Capital).

Fighting against austerity through nationalization and other measures should be a means towards the end of abolishing the power of employers as a class; fighting austerity should not be an end in itself–which is what Mr. Bush seems to seek.

Mr. Bush further argues that the community’s role is mainly one of support. Admittedly, he makes this assertion in the context of the potential privatization of postal services, but is that the major role of the community? Is the community merely to be a reflective support for “labour” (actually, unionized workers), or can it not be both supportive and critical? Or can it be supportive by being critical? The view that the community’s main role is to be supportive assumes that the union movement represents a standard that is sufficiently robust and powerful to justify subordinating the community to it.

Why should we accept that assumption? The open letter by John Cartwright, president of the Toronto & York Region Labour Council to the union movement on January 30, 2018,  refers to economic justice, and yet in another post (see Basic Income: A Critique of the Social-Reformist Left’s Assumptions and Analysis: Part Two), it was pointed out just how inadequate is Cartwright’s implicit claim that the union movement has as its goal economic justice when the power of employers as a class is not questioned.

It can be further added that the nationalization of hydro involves its own set of problems that the social-democratic left do not seem to want to address. For example, public sector workers are employees. Being employees, they lack freedom in various ways. How does the fact that public sector workers are employees relate to socialism? Is socialism consistent with the existence of employees? If so, then it is consistent with using human beings as things, is it not? Is that then socialism or capitalism?

What is more likely meant by socialism is what existed before the emergence of what is called neoliberalism: a truce between unions, employers and government and the resurgence of the old welfare state.

What I call socialism would include the abolition of the employer-employee relation–period. It is not about nationalizing utilities and converting institutions merely from private to public government; it would involve the democratization of the economy (see Socialism, Part One: What It May Look Like,  Socialism, Part Two: What It May Look Like,   Socialism, Part Three: What It May Look Like, or Visions of a Better Kind of Society Without Employers).

Despite these many limitations of Mr. Bush’s presentation of what an anti-capitalist movement needs to become, his idea of having an organization as a membership based organization does have merit. The idea is that membership will determine what is feasible in terms of human capacity. If there are only four members, then only four-member actions should be taken. If 400 members, then larger actions, or more coordinated actions, can emerge. Mr. Bush’s recognition of some of the limitations placed on leftist organizations, unfortunately, does not extend to any recognition of his own views on leftist organization.

Mr. Bush claims that it is necessary to build a non-sectarian left, but what that means he fails to spell out. His own brand of anti-capitalism is really only anti-austerity and is itself sectarian.

Socialism, What It May Look Like, or Visions of a Better Kind of Society Without Employers, Part Four

The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the democratic nature of the workplace, which is subject to control not only by the workers at the particular workplace electing managers but also by certain community organizations that represent specific community interests. From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 303:

(iii) Worker collectives produce public goods, inputs into the production process, or final consumption goods. Funds for the first are directly allocated to collectives by the relevant planning agencies (see below). The latter two categories of products are offered for sale in producer and consumer markets. In Schweickart’s view, attempts to centrally plan all inputs and outputs in a top-down fashion are simply not feasible, at least not in a complex and dynamic economy. But it does not follow that capitalist market societies are the only acceptable forms of economic organisation. It is possible to imagine a feasible and normatively attractive society combining markets with the socialisation of the means of production, that is, a society making use of producer and consumer markets after abolishing both capital markets and
labour markets.

In addition to the elimination of a market for workers and management of work enterprises being accountable to work councils and community councils, capital markets in the sense of an investment process owned by a minority would no longer exist. There would, nonetheless, be markets that produced means of production and markets that produced consumption goods. For example, at the brewery where I worked, the workers who produced the soaker or the filler that the brewery workers used would be subject to competition from other workers who produce soakers or fillers. Workers in the brewery would be subject to competition from workers in other breweries.

Unfortunately, Smith does not elaborate much on what he means by the abolition of capital markets. His reference to David Schweickart’s work Against Capitalism, however, gives a clue to what he means. Schweikart has the following to say (page 172):

First, we issue a decree abolishing all enterprise obligations to pay interest or stock dividends to private individuals or private institutions.

This decree will need no enforcement, since enterprises are not going to insist on paying what they are no longer legally obligated to pay.

But Schweickart sees a flaw in the abolition of all capital markets, at least immediately (page 173):

6.3.2 Once More, This Time with Feeling (for the Stockholders)

Too Simple? Of course. The above is not meant to be a realistic scenario. Above all, it fails to take into account the fact that millions of ordinary citizens (not only capitalists) have resources tied up in the financial markets. People with savings accounts or holdings in stocks and bonds have been counting on their dividend and interest checks. (Nearly half of all American households have direct or indirect holdings in the stock market, mostly in pension plans.) Eliminating all dividend and interest income-which is what Radical Quick does-will not strike these fellow citizens as a welcome reform. Let us run through our story again, this time complicating it to take into account their legitimate concerns.

Schweickart, realistically, recognizes that workers have investments in capital markets and hence are in some ways tied to such markets. His solution is to imagine a situation where at least the key corporations, due to the circumstances of a crisis, would be subject to elimination from capital markets (pages 173-174):

Let me first set the stage a little more fully than I did with Radical Quick. Let us suppose that a genuine counterproject to capitalism has developed, and that, gradually gaining in strength, it has been able to elect a leftist government that has put most of the reforms outlined earlier in this chapter on the table and has secured the passage of some of them. Suppose investors decide they’ve had enough and begin cashing in their stock holdings. A stock-market crash ensues. In reaction, the citizenry decide that they too have had enough-and give their leftist government an even stronger mandate to take full responsibility for an economy now tumbling into crisis.

Our new government declares a bank holiday, pending reorganization (as Roosevelt did following his election in 1932). All publicly traded corporations are declared to be worker-controlled. Note: This control extends only to corporations, not to small businesses or even to privately held capitalist firms. It is decided that it will be sufficient  to redefine property rights only in those firms for which ownership has already been largely separated from management. (With the “commanding heights” of the economy now democratized, most other firms can be expected to come under increased pressure from their own workers, over time, to follow suit.)

The exact way in which capital markets would be reduced and eventually abolished would vary across time and place, depending on circumstances.

As I have emphasized throughout this blog, though, it is much less likely that workers will be receptive to a call for the elimination of capital markets and markets for workers unless they find the situation to be unfair. The ideology of the social-reformist left consistently makes reference to fairness within the limits of the employer-employee relation. We need to break with such ideology if we are to initiate such a process without having to respond erratically when a crisis hits.

Or are there alternatives? What do you think?