Thomas Piketty and
the Sensation of Being a Left-Liberal Hero
If you’ve being paying attention to the left-liberal
internet lately, you’ve come across Professor Thomas Piketty and his new book,
“Capital In the 21st Century.”
It has topped the Amazon best-seller list, been mentioned in the
Economist, the New York Times by Paul Krugman and on Alternet, Truthdig and
Salon.com, among others. Piketty teaches
economics at the Paris School of Economics and was an advisor to Ségolène Royal
in the 2007 elections in France. Royal was one of the aspiring candidates of
the Socialist Party of Francois Hollande. (See ‘Messr. Hollande’s Holiday,”
below.) Piketty’s parents were members
of Lutte Ouvrière (Workers' Struggle), a French Trotskyist party. After 1968, the parents left politics to
raise goats in the French hinterlands. Piketty
went on to get his PHD at the London School of Economics, specializing in
English income tax studies.
Piketty tells the Guardian:
“I discovered that the data that did exist contradicted nearly all of
the theories including Marx and Ricardo…I saw a pattern beginning to emerge …
is that capital, and the money that it produces, accumulates faster than growth
in capital societies.” The liberal
interviewer, Andrew Hussey, a former ‘youthful Marxist,’ adds: “Russia
was anyway the most undeveloped country in Europe
and it was for this reason that communism took root there.” So reviewer and
reviewed are co-thinkers – they both dislike Marx and Lenin. Only primitives could appreciate socialism,
evidently.
Piketty’s work sounds like valuable empirical research. It has been true for many years that the
point of capitalism is the accumulation of capital – to the detriment of
everything else. This should not be
news. But you know what Marxists do with
more facts – they make use of them! His
book will be reviewed on this blog in the future. I want to, right now, review the
reviewers.
The legend of Piketty has now arrived in the U.S. Although this reticence is breaking
down, most left-liberals must make sure they deny, as does Piketty, that
they agree with most anything Marx ever said.
Marx is some relic of the past and needs to always be treated as such! The ‘anti-Marxist’ declaration in each
article or book is a pattern that emerges frequently – no surprise here. It means you are a ‘Very Serious’ person who
wants to be taken ‘seriously’ in our very capitalist society, dominated by two very
capitalist parties. (To borrow Glenn
Greenwald’s usage.) No use losing your
credibility, or your paycheck, and being tossed into the outer darkness.
Lynn Parramore of Alternet takes the cake in this
regard. Her post on Piketty is a
gem. Marxists are laughing. Anarchists are laughing. Yes, really.
Let’s take the key issue here – that inequality grows under
capitalism due to the accumulation of capital.
Capital buys politicians, media, government bureaucrats, a layer of
middle-class supporters, repressive forces, think tanks, university departments,
military figures and creates corporate oligarchies that work together. They control the largest corporations who
employ the most people in the country.
They ‘own’ the society, almost quite literally. This is only common sense. So the more capital they have, the more in
control they will be, and that only ‘compounds their interest!’ The cliché ‘ the poor get poorer’ is just the
folk wisdom of that issue.
Marx himself saw the inequality between the classes as
fundamental to capitalist society. He
predicted that the working class would become more poverty-stricken as
capitalism developed, and hence inequality would grow. It is even called “the immiseration thesis”
by academics. From “Capital” -
“Within the capitalist system all methods for
raising the social productivity of labour are put into effect at the cost of
the individual worker [...] All means for the development of production undergo
a dialectical inversion so that they become a means of domination and exploitation
of the producers; they distort the worker into a fragment of a man, they
degrade him to the level of an appendage of a machine, they destroy the actual
content of his labour by turning it into a torment, they alienate from him the
intellectual potentialities of the labour process [...], they transform his
life into working-time, and his wife and child beneath the wheels of the
juggernaut of capital. But all methods
of the production of surplus-value are at the same time methods of accumulation, and every extension of
accumulation becomes, conversely, a means for the development of these methods.
It follows therefore that in proportion as capital accumulates, the situation
of the worker, be his payment high or low, must grow worse.”
The time scale for this prediction was not made, but
accumulation is at record heights at this time in history. Nor was this prediction made out of thin air,
but upon the most intense study of economic facts.
Some recent American Marxists – economists Paul Sweezy and
Paul Baran, who wrote the classic, “Monopoly Capital” in the 50s, refined
the same issue. (Book reviewed below, use blog search box at upper left.) Baran and Sweezy pointed out that capital
had so much surplus that they needed to ‘burn’ it through wasteful military
spending, among other methods. David Harvey, another Marxist,
just published a book (“The Enigma of Capital”, reviewed below) in which
he said that over-accumulation leads to capital investing in massive building
projects, also in order to get rid of the excess capital. Present Marxists at Monthly Review, led by John
Bellamy Foster, argue that excess capital has been pumped
into the financial sector instead of the ‘productive sector.’ This has been a
cause and a result of stagnation in that latter sector, and conversely, a cause
of financial bubbles and the strength of the former sector. In a recent Monthly Review there are two stories about
the drop in the share of earnings for labor versus capital in the U.S. AND in China. I.E. inequality is growing between the
classes, and this is not confined to one country. Examples could be
multiplied. All based not on ‘lazy’
thinking, but on financial imperatives, backed up by facts and analysis. From the reviews it seems Mr. Piketty has
done a great job adding to them.
Lets get back to Parramore.
Parramore is incensed that the Republicans are red-baiting Piketty for
being critical of capitalism. Of course,
Republicans red-bait almost everything, even a neo-liberal like Obama, so what
is the surprise? His father was a Kenyan
socialist, after all. Why is she so incensed? Hitting too close to home?
I quote from Parramore:
“His 700-page book Capital in the 21st Century is certainly not
some kind of screed filled with calls for class warfare.” Heaven’s no. No 'screeds' here. So shrill! Let’s wait to see what Piketty’s
solution is then.
Again: Pikety “opens
his tome with a description of his typical Gen X abhorrence of what he calls
the “lazy rhetoric of anti-capitalism."
Right. In the U.S. – and even in France - is it ‘lazier’ to be
anti-capitalist or pro-capitalist? The
question answers itself. After being
bombarded from birth with the ideological wonders of capitalism, people that absorb what
they have been told will do … what? At present they become, at best, ‘lazy’ capitalist reformers. Which is exactly what Parramore is. And notice the generational dig - the dumb-bunny Boomers and the immature Millennials - Gen X is so clever! We won't get sucked into anything that is not post-modern. Yeah, after all, you grew up in the immediate aftermath of Reagan and Thatcher. But wait, there’s more!
Parramore quotes reactionary commentators like the NYT’s Ross
Douthat and NR’s James Pethokoukis, who accuse Piketty of Marxism in articles
titled “Marx Rises Again” and “The New Marxism.” She is livid because they want ‘unfettered
capitalism.’ Of course, by implication,
Parramore wants ‘fettered capitalism.’ As
I have asked before, hasn’t that been tried?
It seems that Goliath broke them a
long time ago.
Then she makes the incredible statement that “Income and
wealth inequality have not been comprehensively studied to date” until Piketty
came along. (She later says it would be a mistake to put him on a pedestal. Perhaps she should stop building one then.)
Here is the punch line.
What is Parramore’s solution to ‘capitalism’s inherent dynamic’ (towards
inequality)? Parramore agrees with
Piketty that it is “only our express intervention,
in the form of things like a global
wealth tax, investment in skills and
training, and the diffusion of
knowledge can lead us to a different outcome.”
The U.S.
has the richest, most powerful and most well-armed ruling class in history and
this is the solution? Are you kidding
me? Whoa, no class struggle for me –
just tax the rich and educate workers, and you’ve got it made. Intervene!
Is that like talking a drunk into AA?
So here is where the laughing really starts. Obama also makes the neo-liberal argument –
and it is precisely that – that the ‘education’
of the ignorant, laid-off worker will provide more jobs. This ‘intellectual capital’ idea – and don’t
you love it when your thinking processes are now re-christened as ‘capital’ as
if they are trying to colonize your brain too – is the same ‘blame the victim’
strategy they use on almost every social problem. There are plenty of American IT workers – and
yet they hire H-1B visas for cheap.
There are millions of unemployed workers in the U.S. – and yet they hire immigrants
because they want to pay less. There are
U.S. companies with jobs –
that they locate in China or
India.
Laid-off factory or white-collar workers whose firms close
are offering ‘retraining’ – which many times doesn’t show up because it is
unfunded, or is useless because there are no jobs in the field you are
learning. People with BA’s are crowding
out people with only high-school educations in lower-end jobs. Not sure that is what Parramore means about ‘skills and training.’ Corporations are also unwilling to take on
the expense of training people ‘on the job’ – they want people with the exact
qualifications they need, and they want the public to pay for it. Apprenticeships have almost disappeared
except in some union shops. Corporations use technology to make people work faster and harder, and even more efficiently, thus reducing jobs. Productivity has been rising for years under the lash of capital.
As with the issue of poverty or hunger, it is not a paucity of
food or a lack of money in the world system or a dearth of education – it is that food is an
unaffordable commodity, that money has been hoovered-up by the rich and that even many educated unemployed cannot get jobs – because there are not enough to go
around. And that is called, in Marxist
terms, ‘the reserve army of labor.’ It
is a permanent feature of capitalism. These
are not optional ‘policies,’ but the very nature of the system.
It would certainly be good to raise taxes on the wealth of the capitalists,
and Marxists are all for that. (Marx
also pointed out that taxes were part of the exploitation of labor by the capitalist
state.) Yet to raise taxes on the
wealthy you must build a class-struggle movement that outflanks the Democrats
on the left – as the wealthy reside in the Democratic Party too. This explains why the Democrats even agreed
with the Republicans on much of the past tax-cutting for the rich. “Shared austerity’ is still part of Obama’s
agenda – much as it was Francois Hollande’s.
Now they have made timid steps in the other direction, but hardly any progress. Voting is an inadequate form of ‘intervention’ – and voting for
capitalist parties to restrain themselves is almost self-defeating.
The form of "intervention" would mean 'confiscatory' taxation (as reviews have said about Piketty's views.) Recent analyses of the amount of carbon that would have to be left in the ground regarding global climate change is in the 'trillions' of dollars. I.E. both issues would require that the capitalists be partially expropriated. Can you imagine the present capitalist setup in the U.S. allowing this kind of expropriation?
Piketty was the advisor to a SOCIALIST in France. So he’s not exactly outside the circle of
Marxist influence, I would say. Perhaps
mom and dad had some impact on the little tyke.
Perhaps the Republicans are on to something? Being called a “Marxist’ is supposed to make
people squeal like a stuck pig, to run like little kids, as if they were gay in
Russia, or an atheist in Saudi Arabia or black in America or a vegetarian in
Argentina! Stand up and be proud, Ms.
Parramore! ‘I’m Red and I’m proud.’ Say it.
The French Socialist Party just had an immense rejection by
its own base, as Socialist and working class voters stayed home during the
recent election. Mr. Piketty was, and
probably still is, a supporter of that party.
The ‘hard left’ in France,
as it is called by the soft left of Mr. Piketty, actually proposes class struggle and
higher taxes on the corporations.
Something abandoned by the Socialists and reflected in this election. You will not get higher taxes on the rich or
corporations without massive class struggle at this point. In the U.S. they were brought about by the
class struggles of the 30s and 40s, and by powerful union and socialist
movements.
What about the ‘diffusion
of knowledge’ – whatever that means?
Since capital now controls the majority of the media oligopoly, the
means of communication and is taking charge of the school systems – ‘knowledge’
will be increasingly shaped by capital.
(As it already is now, but in a more subtle way.) It will actually demand a massive
counter-offensive against both parties of capital – who support
privatization and religion through charter schools and testing. Their goal is a society of ‘trained’ people,
not educated people. If that fails, and
even if it succeeds, it will need counter-institutions of knowledge, like
workers’ parties, organizations of the oppressed, artists, schools (and
websites!) to combat the rule of capital’s ideas. As Marx pointed out in the ‘German Ideology’:
“
The ideas of the ruling class are in every epoch the ruling ideas, i.e.
the class which is the ruling material force of society, is at the same time
its ruling intellectual force.”
That ‘diffusion’ will not be easy without class
struggle. You don’t even have to be a
socialist to support the idea of class struggle. But it helps. Here Piketty and
Parramore fall short.
P.S. - Piketty's introduction to his book is far more complimentary of Marx than the reviewers reveal. A common omission among Americans.
Red Frog
April 23, 2014