bourgeois society

Marx, Lenin, Hegel, and Goethe on genius and freedom of the press

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Mikhail Lifshitz
The Philosophy of Art
of Karl Marx (1931)
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It is interesting to compare Marx’s “Debates on the Freedom of the Press” (1843)[1] with Lenin’s “Party Organization and Party Literature” (1905),[2] in which he speaks of creating a free press, “free not only in the police sense of the word, but free from capital as well — free from careerism; free, above all, from anarchic bourgeois individualism.” As opposed to the “mercenary commercial bourgeois press,” and the “deluded (or hypocritically delusive) dependence” of the bourgeois writer “upon the money bags, upon bribery, upon patronage,” Lenin set up the principle of party literature. While Marx’s articles in the Rheinische Zeitung were on an incomparably lower level of political understanding, there can be no doubt that even in 1842 Marx directed his criticism against not only police censorship but also against freedom of the press in the bourgeois sense.[3] And he also showed, even at this early stage, some signs of the doctrine of party literature.

From the point of view of Marx’s political beliefs in 1842, the struggle for party literature coincided with criticism of feudal-bureaucratic censorship. And herein lies the great difference between Lenin’s conception of “party” and that of the young Marx. Lenin held that the destruction of feudal censorship was a problem of the bourgeois-democratic revolution, whereas party literature is a weapon of the proletariat in its struggle against anarchic bourgeois literary relations. No doubt the two problems are not separated by a Chinese wall; one grows out of the other. Nevertheless, they are different and within certain limits even opposed. To confuse the democratic ideal of a free press with the problem of saving it from the freedom of a “literary trade” was characteristic of young Marx as a revolutionary democrat.

48055a Karl Marx & Friedrich Engels en la imprenta de la Rheinische Zeitung, Colonia - Museo Marx & Engels, Moscú ✆ E. Chapiro © Ñángara Marx1

The censor was his principal opponent. Obeying the dictates of the government, the censor attempted to eradicate every trace of party struggle in literature, prohibiting even the use of party slogans. Already in his first article on freedom of the press, “Comments on the latest Prussian Censorship Instruction” (1842), Marx unmasked the duplicity of the Prussian government which, while suppressing all party struggle, actually came out as “one party against another.” The censor’s instructions contained some “aesthetic criticism.” The writer was expected to use a “serious and modest” style. As a matter of fact, however, any crudeness of style could be forgiven provided the content was acceptable to the government. “Thus the censor must sometimes judge the content by the form, sometimes the form by the content. First content ceased to serve as a criterion for censorship; and then in turn form vanished.”[4] Continue reading →

Augustine Kofie's "Triangulation of the golden northeast" (2009)

Dossier on the debate between the International Bolshevik Tendency, Communist Party of Great Britain, and Platypus Affiliated Society

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by Reid Kane Kotlas

Untitled.
Image: Augustine Kofie’s Triangulation
of the Golden Northeast (2009)
untitled2.

This is reposted from the tumblr page of a contact of the Platypus Affiliated Society, Reid Kane Kotlas. Though I was considering using this space to briefly relate Reid’s intellectual trajectory and how he arrived at the Marxist tradition, as well as our encounter several years back, it’s become clear to me that this would take up too much space. Perhaps this could be the subject of another post. Suffice it to say, at least for now, that our subsequent correspondence was largely the outcome of a debate we had over Lenin’s (in)compatibility with Luxemburg. At the time, he was quite skeptical of the Platypus Affiliated Society and what he then believed was its excessive pessimism with respect to the present. I’d assumed what was probably a haughty and overly dismissive stance toward the actually-existing Left, to which he responded:

I find your defamatory comments about the existing Left (and those of Platypus more generally) to be extremely discouraging. These people are our allies, and while I may disagree with a lot of what they say and do, the way to make that evident is not through condescension, but by expressing critical solidarity, by joining them and trying to steer them in other directions where appropriate, and where there is too great a divide or too much stubbornness, to demonstrate in practice what is wrong with their approach. I agree that its a shame that we are no longer witness to the sort of working class mobilization of the earlier part of the last century, but I don’t count this fact as either a cause or effect of “regression in Leftist consciousness.” The left hasn’t regressed, we’ve been brutally beaten down, silenced, defamed and overwhelmed for a century, and the disorganized and splintered remnants that persist today, however “backward” their thinking may be at times, are not symptoms of the Left’s decadence and degeneration but the first flares of its rekindling.

Later on, I tried to clarify what I’d meant by my remarks and remove some of their needless cynicism, which were unhelpful and probably off-putting. This brought Reid and I into closer accord in our understandings of the present political moment. In an e-mail a little over a year ago, he related to me that “[w]hile before I had reservations about Platypus due to its assessment of the Left, I now basically agree with that assessment.” Recently, it came to my attention that Reid has been quietly and independently dedicating himself to a closer study of some of Platypus’ past engagements. Because of the remarkable lucidity and critical acuity of his observations here, I thought I’d make available his dossier on the debate between the International Bolshevik Tendency, Communist Party of Great Britain, and Platypus. The post also includes a number of helpful links to background readings on the debate. Thanks again to Reid for granting me permission to repost this.
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Ivan Kudriashev's Construction of a rectilinear motion (1925)

Kudriashev’s Construction of a rectilinear motion (1925)

Dossier

The following is a series of documents and recordings relating to an ongoing debate between members of the Platypus Affiliated Society (PAS), the Communist Party of Great Britain (CPGB), and the International Bolshevik Tendency (IBT). 

I believe these deserve to be grouped together because, in the discursive space sustained between these three distinctive organizations, the central problems of the contemporary left are saliently circumscribed. Any pair of the three organizations, as well as the trio, share interesting points of convergence and divergence. The differences between their respective ideologies, programs, historical perspectives, and practical approaches elucidate that absent locus of revolutionary politics. Continue reading →

Notes to “The Truth of Liberalism”

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[1] “[T]he crisis of bourgeois society in capital after the Industrial Revolution and the failure of the ‘social republic’ in 1848, was the crisis of bourgeois society as liberal…a feature of the growing authoritarianism of bourgeois society, or, the failure of liberalism. As such, socialism needed to take up the problems of bourgeois society in capital that liberalism had failed to anticipate or adequately meet, or, to take up the cause of liberalism that bourgeois politics had dropped in the post-1848 world.” Cutrone, Chris. “Lenin’s Liberalism.” Platypus Review. (№ 36. July, 2011). Pg. 2.
[2] Marx, Karl. The Eighteenth Brumaire of Louis Bonaparte. Translated by Clemens Dutt, Rodney Livingstone, and Christopher Upward. Collected Works, Volume 11: August 1851-March 1853. (Lawrence & Wishart Publishing. London, England: 1979). Pg. 103.
[3] Marx, Karl. The Class Struggles in France: 1848-1850. Translated by Hugh Rodwell. Collected Works, Volume 10: September 1849-June 1851. (International Publishers. New York, NY: 1978). Pg. 67.
[4] “In sum, the project of modernity has not yet been fulfilled.” Habermas, Jürgen. “Modernity — An Incomplete Project.” Translated by Seyla Benhabib. The Anti-Aesthetic: Essays on Postmodern Culture, edited by Hal Foster. (Bay Press. Seattle, WA: 1983). Pg. 13.
[5] Tocqueville, Alexis de. The Ancien Régime and the French Revolution. Translated by Arthur Goldhammer. (Cambridge University Press. New York, NY: 2011). Pg. 2. Quoted in full by Losurdo, Domenico. Liberalism: A Counter-History. Translated by Gregory Elliott. (Verso Books. Brooklyn, NY: 2011). Pg. vii. Indeed, Losurdo’s choice to pattern his own study after that of de Tocqueville is no accident, as the great French liberal is one of the figures most harshly indicted in his study.
[6] The famous Tolstoian technique of ostranenie [остранение]. Shklovskii, Viktor. “Iskusstvo kak priem.” From Gamburgskii schet: Stat’i, vospominaniia, esse (1914-1933). (Sovetskii pisatel’. Moscow, Soviet Union: 1990). Pgs. 64-66.
[7] Losurdo, Liberalism: A Counter-History. Pgs. 1-7, 27, 106, 241-246.
[8] On Calhoun: ibid., pgs. 1-7, 57, 163, 222; on Locke: ibid., pgs. 3, 42, 163; on Mill: ibid., pgs. 7, 202, 225.
[9] Ibid., pg. 301.
[10] Ibid., pg. 25. On liberalism’s “exclusion clauses,” see also pgs. 124, 163, 173, 181, 248, 341-343. On the “pathos of liberty,” see also pgs. 23, 40, 45, 49, 56.
[11] “The catastrophic crisis that struck Europe and the whole planet with the outbreak of the First World War was already maturing within the liberal world.” Ibid., pg. 323. And further: “[I]t is banally ideological to characterize the catastrophe of the twentieth century as a kind of new barbarian invasion that unexpectedly attacked and overwhelmed a healthy, happy society. The horror of the twentieth century casts a shadow over the liberal world even if we ignore the fate reserved for peoples of colonial origin.” Ibid., pg. 340.
[12] On enclosure: Ibid., pgs. 77-78, 121, 303, 308, 319.
[13] “[A]bsent from ancient Greece was the racial chattel slavery which, in the American case, was conjoined not with direct democracy but representative democracy.” Ibid., pg. 106.
[14] Ibid., pgs. 30-33.
[15] Grotius and Holland: Ibid., pg. 21; Locke and England: Ibid., pg. 24; the Founding Fathers and the United States: Ibid., pgs. 25-26.
[16] Ibid., pg. 77.
[17] While their account of capitalism is often uneven, this formulation does not altogether miss the mark: “At the heart of Capital, Marx points to the encounter of two ‘principal’ elements: on one side, the deterritorialized worker who has become free and naked, having to sell his labor capacity; and on the other, decoded money that has become capital and is capable of buying it…For the free worker: the deterritorialization of the soil through privatization; the decoding of the instruments of production through appropriation.” Deleuze, Gilles and Guattari, Felix. Capitalism and Schizophrenia, Volume 1: Anti-Œdipus. Translated by Robert Hurley, Mark Seem, and Helen R. Lane. (University of Minnesota Press. Minneapolis, MN: 1983). Pg. 225.
[18] Besides Marx’s characterization of this process as such, this is how it was referred to by one of Losurdo’s principal sources on the subject. Harris, R.W. England in the Eighteenth Century, 1689-1793: A Balanced Constitution and New Horizons. (Blandford Press. London, England: 1963). Pgs. 14-18.
[19] Marx, for example: “The immediate producer, the worker, could dispose of his own person only after he had ceased to be bound to the soil, and ceased to be the slave or serf of another person. To become a free seller of labor-power, who carries his commodity wherever he can find a market for it, he must further have escaped from the regime of the guilds, their rules for apprentices and journeymen, and their restrictive labour regulations. Hence the historical movement which changes the producers into wage-laborers appears, on the one hand, as their emancipation from serfdom and from the fetters of the guilds, and it is this aspect of the movement which alone exists for our bourgeois historians. But, on the other hand, these newly freed men became sellers of themselves only after they had been robbed of all their own means of production, and all the guarantees of existence afforded by the old feudal arrangements. And this history, the history of their expropriation, is written in the annals of mankind in letters of blood and fire.” Marx, Karl. Capital: A Critique of Political Economy, Volume 1. Translated by Ben Fowkes. (Penguin Books. New York, NY: 1982). Pg. 875.
[20] Losurdo, Liberalism: A Counter-History. Pgs. 90-92.
[21] For a more comprehensive gloss on British and French materialist thought, see Marx, Karl and Engels, Friedrich. The Holy Family, Or Critique of Critical Criticism: Against Bruno Bauer and Company. Translated by Richard Dixon and Clemens Dutt. Collected Works, Volume 4: 1844-1845. Pgs. 127-134.
[22] “[In England, t]he heaviest, worst-paid work was entrusted to a stratum that tended to be reproduced from one generation to the next, and hence to a kind of hereditary servile caste.” Liberalism: A Counter-History. Pg. 113. And further: “[O]ften excluded from the enjoyment of civil rights and negative liberty in England itself, the popular classes, by de Tocqueville’s [own] admission, continued to be separated from the upper class or caste by a gulf that calls to mind the one obtaining in a racial state.” Ibid., pg. 124.
[23] “While in London the zone of civilization was distinguished from the zone of barbarism, the sacred space from the profane, primarily by opposing the metropolis to the colonies, the American colonists were led to identify the boundary line principally in ethnic identity and skin color.” Ibid., pg. 50.
[24] “[Liberalism] excluded the non-European peoples from the sacred space of civilization, relegating much of the West to its margins.” Ibid., pg. 246.
[25] Losurdo, Domenico. Heidegger and the Ideology of War: Community, Death, and the West. Translated by Marella Morris and Jon Morris. (Humanity Books. Amherst, NY: 2001). Pgs. 14, 18, 24-27, 30, 37, 45, 47-48, 55, 57-59, 74, 76, 89-90, 119, 123-125, 141, 208, 214, 223-224.
[26] Kant, Immanuel. Anthropology from a Pragmatic Point of View. Translated by Robert B. Louden. Anthropology, History, and Education. (Cambridge University Press. New York, NY: 2007). Pg. 427.
[27] Ibid., pg. 299.
[28] “Unfounded on a historiographical level, the habitual hagiography [of liberalism] is also an insult to the memory of the victims..” Ibid., pg. 344.
[29] Ibid., pg. 311.
[30] Losurdo extends quite liberally upon the argument advanced by Léon Poliakov, asserting that Britain and American colonists understood themselves as the “chosen people” of the Old Testament. Ibid., pgs. 17, 19, 43-44, 63, 150, 229-230, 294, 306, 309-311. Elsewhere he traces this exclusivist mentality to another Jewish source: Martin Buber’s and Franz Rosenzweig’s idea of a “blood-community” [Blutgemeinschaft]. Losurdo, Heidegger and the Ideology of War. Pgs. 123-125, 214.
[31] Losurdo, Domenico. “Flight from History? The Communist Movement between Self-Criticism and Self-Contempt.” Translated by Charles Reitz. Nature, Society, and Thought. (Vol. 13, № 4. December 2000). Pgs. 478-479.
[32] Losurdo, Domenico. “What is Fundamentalism?” Translated by Hanne Gidora. Nature, Society, and Thought. (Vol. 17, № 1. March 2004). Pgs. 34, 40-41.
[33] Leonard, Spencer. “The Decline of the Left in the Twentieth Century: 2001.” The Platypus Review. (№ 17. November 18th, 2009). Pg. 2.
[34] Losurdo, Liberalism: A Counter-History. Pgs. 54, 106, 220.
[35] Ibid., pgs. 19-20, 171, 229, 309, 311.
[36] Weber, Max. The Protestant Ethic and the Spirit of Capitalism. Translated by Talcott Parsons. (Routledge. New York, NY: 1991). Pg. 98.
[37] “The degree of continuity between the nineteenth and twentieth centuries has not escaped a whole series of scholars who cannot be suspected of preconceived hostility to the liberal world. While she generously overlooked the North American republic (which had had the merit of offering her refuge), Hannah Arendt explained the genesis of twentieth-century totalitarianism commencing with the colonies of the British Empire. It was here that ‘a new form of government,’ ‘a more dangerous form of governing than despotism and arbitrariness’ saw the light of day, and where the temptation of ‘administrative massacres’ as an instrument for maintaining domination began to emerge. But especially interesting in this context is the fact that not a few US scholars, in order to explain the history of their country, have turned to the category of ‘master-race democracy’ or ‘Herrenvolk democracy,’ in an eloquent linguistic admixture of English and German, and a German that in several respects refers to the history of the Third Reich.” Losurdo, Liberalism. Pgs. 336-337.
[38] “[F]or his plan to build a German continental empire, Hitler had in mind the United States model, which he praised for its ‘extraordinary inner strength.’” Losurdo, Domenico. “Towards a Critique of the Category of Totalitarianism.” Translated by Jon Morris and Marella Morris. Historical Materialism. (Volume 12, № 2. 2004). Pg. 47.
[39] “Rather than being one single book, The Origins of Totalitarianism consists in reality of two overlapping books which…fail to achieve any substantial unity…[Many have] noticed the disproportion between Arendt’s actual and thorough knowledge of the Third Reich, and her inaccurate understanding of the Soviet Union. In particular, they emphasized the difficulties in Arendt’s attempt to adapt the analysis of the Soviet Union (associated with the outbreak of the Cold War) to the analysis of the Third Reich (rooted in the years of the great coalition against fascism and Nazism).” Ibid., pg. 33.
[40] “Nazism and Bolshevism owe more to Pan-Germanism and Pan-Slavism (respectively) than to any other ideology or political movement.” Arendt, The Origins of Totalitarianism. Pg. 222. See also pg. 415.
[41] Losurdo repeats the theme of “master-race democracy” throughout: Losurdo, Liberalism: A Counter-History. Pg. 102-107, 108, 122-125, 136-138, 150-151, 180, 219, 222, 225, 227, 229, 233, 240, 308, 317, 321.
[42] On Losurdo’s theme of the United States as a “Herrenvolk democracy,” see also Losurdo, “Towards a Critique of the Category of Totalitarianism.” Pg. 50. See also Losurdo, Domenico. “Preemptive War, Americanism, and Anti-Americanism.” Translated by Jon Morris and Marella Morris. Metaphilosophy. Pgs. 369, 374-375, 380-381.
[43] “It is very difficult to find a critique of this ‘master-race democracy’ in liberal thinking, which is rather often the theoretical expression of this regime. Herrenvolk democracy is instead the privileged target of Lenin’s struggle. The revolutionary Russian leader stubbornly placed in evidence the macroscopic clauses of exclusion in liberal liberty at the expense of ‘red and black skins,’ as well as immigrants from ‘backward countries.’” Losurdo, Domenico. “Lenin and Herrenvolk Democracy.” Translated by Graeme Thomson. Lenin Reloaded: Toward a Politics of Truth. (Duke University Press. Durham, NC: 2007). Pg. 242.
[44] “[T]he young Marx declares the United States to be the ‘country of complete political emancipation’ and ‘the most perfect example of the modern state,’ one that ensures the dominion of the bourgeoisie without excluding a priori any social class from the benefits of political rights…Engels’s position is even more drastically pro-American.…As for the history of the Communist movement as such, the influence of Taylorism and Fordism upon Lenin and Gramsci is well known. In 1923, Nikolai Bukharin goes even further: ‘We need Marxism plus Americanism.’” Ibid., pgs. 366-367.
[45] “The international press is full of articles or attitudes committed to celebrating, or at least justifying, Israel: after all — they say — it is the only country in the Middle East in which the freedom of expression and association exist, in which there is a democratic regime operating. In this way a macroscopic detail is suppressed: government by law and democratic guarantees are valid only for the master race, while the Palestinians can have their lands expropriated, be arrested and imprisoned without process, tortured, killed, and, in any case under a regime of military occupation, have their human dignity humiliated and downtrodden daily.” Losurdo, “Lenin and HerrenvolkDemocracy.” Pg. 245. See also Losurdo, Liberalism: A Counter-History. Pg. 180.
[46] Losurdo, “Preemptive War, Americanism, and Anti-Americanism.” Pg. 368.
[47] Losurdo, Liberalism. Pg. 338.
[48] Fitzpatrick, Matthew. “The Pre-History of the Holocaust? The Sonderweg and Historikerstreit Debates and the Abject Colonial Past.” Central European History. (№ 41. 2008). Pgs. 500-501.
[49] Losurdo, Liberalism: A Counter History. Pgs. 339-340.
[50] “Losurdo, “Towards a Critique of the Category of Totalitarianism.” Pg. 26. Continue reading →

“The Four Cs”: Commodity, Currency (Money), Capital, Corporation — A popular lexicon regarding some commonly confused terms, along with some further scholarly notes

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The Parisian Arcades

The “Four Cs”: Commodities, Currency (Money), Capital, and Corporations

POSITIVE DEFINITIONS

First we can state briefly what these objects concretely are, so that we can then spell out exactly what they are not.

Commodity — A commodity is any product that is produced for sale on the market, i.e. for the sake of exchange.  Like any other product (non-commodities included), it has a certain utility, or “use-value.”  Products, regardless of their salability, tend to be useful in some way or another, to satisfy a certain need.  Use-values are of a qualitative nature.  That is to say, they are useful because they possess certain utile qualities.

Unlike other products, however, commodities also possess a certain value, or “exchange-value.”  As soon as a product becomes available for exchange on the market, it is thereby converted into a commodity.  Exchange-values are of a quantitative nature.  That is to say, they are valuable because they possess a certain quantity of value.

(It must be noted, however, that if a commodity loses its use-value, i.e. becomes broken or useless, it simultaneously loses any exchange-value it might have had).

How is this quantity of exchange-value determined? What is the basis for the following equation: 20 yards of linen = 1 coat? In terms of their material qualities, the two are totally incommensurable.  A coat may be made of linen, but a single coat does not require 20 yards of linen to produce.  Nevertheless, their quantitative equality presupposes an underlying qualitative identity of substance.  The question thus becomes: What exactly is this substance?

The substantial basis for the equality of two dissimilar items or use-values is the amount of labor-power expended upon them, measured in homogeneous units of time (days, hours, minutes, etc.).  This alone determines the magnitude of value that a commodity possesses.

Commodities are not unique to capitalism.  They preexist the crystallization of the capitalist social formation.  However, in precapitalist societies, the majority of goods that are produced are not commodities.  In other words, most products are intended for immediate use or consumption, either by their producer himself or his next-of-kin.  Society’s general mode of production is only properly called “capitalist” when the majority of its products are commodities.

One final point about the commodity-form should be made before passing on to money.  This concerns the extent to which one’s labor (or more specifically, one’s labor-time) can itself be sold as a commodity on the market.  An employer purchases a certain duration of a person’s labor-time in exchange for the services rendered or products produced.  In return, the employee is typically compensated by hourly wages or an annual salary.

Though wage-labor existed in the margins of precapitalist society, the reproduction of the capitalist mode of production requires that there exists a large displaced population of persons whose only commodity available for sale is their labor.  Thus, under capitalism, wage-labor or salaries becomes generalized as the societal norm.

Currency/Money — Money is a certain commodity that is set aside to serve as a universal measurement of value.  It is the universal equivalent of qualitatively dissimilar commodities.  Money therefore serves as a quantitative medium of exchange.

In another sense, money (as such) is the circulation of commodities.  That is to say, it provides the means by which the exact quantity of one commodity is traded for an exact equivalent quantity of money, which is then used to purchase a given quantity of another.  Money acts as an intermediary in place of direct barter.

This operation can be illustrated by a simple formula, using these symbols:

C = Commodity.

M = Money.

C → M → C.

One commodity is sold for its value in money, which is then used to purchase an equivalent value in another commodity.  This allows for a more equitable exchange of value between commodities than took place in simple barter, which tended to involve uneven transactions.

Capital — Capital is self-valorizing value.  In other words, it is value that becomes more value, or money (which is but an expression of value) that magically transforms itself into more money.  The principle of capitalization is that you start the day with a certain amount of money, and by the end of the day you have more money.

As Marx put it, this process is almost “theological.”  In capital, value becomes at once the subject and object of its own activity, ceaselessly augmenting its own magnitude.  The analogy Marx uses is the differentiation of God the Father from God the Son in the triune theology of traditional Christianity; they are both made from the same substance, and are equally old, yet one begets the other.

The ultimate expression of capital in all its forms is the following:

M → Mº.

(º = “prime.”  Money “prime” signifies the increment of value over and above the amount of value originally advanced.  Once thrown back into the circuit of production and circulation, however, this augmented money or value obtained as a result of capitalization becomes the starting value of the new formula).

Species of Capital

1. Interest-bearing (usurers’) capital — M → Mº.  This is the basic formula of money lending or usury.

A certain amount of money is advanced as a loan, in return for a greater amount of money to be received later, the magnitude of which is determined by a contractually agreed-upon interest rate.

2. Commercial (merchants’) capital — M → C → Mº.  In its most simple form, this just involves the purchase of a commodity for a certain amount of money and its resale for a greater amount of money.

This can be accomplished in any number of ways.  First, a merchant can simply find a chump who is willing to either sell a commodity for less than its value, or a chump who is willing to buy a commodity for greater than its value.

A more calculated approach might involve the purchase of a commodity in a locale where it is abundant (where it is not as highly valued), and then transport it for sale in a locale where the commodity is scarce (where it is more highly valued).  The difference between the money originally paid and the money received at the end of this cycle is the surplus value.

3. Industrial capital — M → C → Mº.  Formally, this circuit is identical with that of merchants’ capital.  The crucial difference consists in the nature of the commodity purchased.  In the movement of industrial capital, the commodity bought is always the labor-time of another person.

Thus, the formula for industrial capital may perhaps be more properly described as M → C(L) → Mº.

Obviously, in this formula the following symbolism is used:

L = Labor.

The labor-time expended by the worker imparts greater value onto the articles under production, thus augmenting the original value of the commodities involved.

Two methods can be used to extract surplus-value in this process:

1. Absolute surplus-value — The capitalist extends the length of the working day, so that the worker invests an amount of labor-time into production greater than the value he receives in wages.  Once the commodities produced in this process are sold in circulation on the market, the surplus-value gained thereby is “realized.”

2. Relative surplus-value — The capitalist reduces the amount of time required to impart a certain amount of value into production below the average of the social aggregate.  This is accomplished by either revolutionizing the social organization of the division of labor or by overhauling the technical means of production.  As a result, the capitalist is able to sell the commodities produced at a level lower than the social average while still realizing the same amount of surplus-value.

Of course, once these new methods of heightened productivity are generalized throughout society, the advantage gained vanishes.  This necessitates a constant revolutionization of the technologies and organization used in production, and an accelerating pace of modernization.  This gives rise to what Moishe Postone has called the “treadmill effect” of capitalism.

4. Finance capital — Mx → M → C → Mº → Mºx.  In this formula:

x = x/100, where x ≤ 100.

Finance capital operates by having investors contribute a percentage of the overall money used to supervalue the value originally inserted into the circuit.  Typically, finance is invested into industry, where again the commodity purchased is labor.  Thus, the formula in this instance would appear as Mx → M → C(L) → Mº → Mºx.

Corporation — A corporation is an association of capitalists who jointly share ownership of a single enterprise.  This is achieved by making shares of the company’s ownership available for purchase by the public.  Historically, this is connected to the rise of the join-stock exchange in the middle of the nineteenth century.  While corporations tend to be much larger and more visible than smaller private businesses, both operate according to the logic of capital.

NEGATIVE DEFINITIONS

Now that we have indicated what these terms are, we can safely say what they are not, in order to clear up some common misconceptions surrounding them. 

Commodity — A commodity is not identical to any other good, article, or product.  Unlike these other products, commodities are not produced for immediate use or consumption by their producer.  Rather, commodities are produced in order to be sold or exchanged, either for money or for other commodities.

Furthermore, commodities are not unique to capitalist society.  Obviously, there existed precapitalist systems of barter, commerce, and exchange.  The point is that throughout most of history the majority of products were not intended to serve as commodities.  They were for the most part produced to serve the most immediate needs of the producer, or alienated without recompense into the possession of one’s feudal lord.  By contrast, capitalism only comes into existence when the majority of products produced by society are commodities.

Currency/Money — The value of money is neither imaginary nor arbitrary.  Money is simply the universal equivalent form of exchange, used as a measurement of the value of goods, or commodities.  This is something of which the Alternative Currency working group should take note.

There are quite real and concrete historical reasons for the development of the money-form of value.  Precious metals came to serve as this medium of exchange because of their practical divisibility, and because of their relative scarcity (and thus also their value, given the difficulty of their location/extraction).  It is true that these metals come to be increasingly substituted by paper money representing their value, and even more abstract forms of credit, but this does nothing to diminish the validity or reality of money as an expression of value.

Capital/Capitalism — Capitalism does not necessarily entail the existence of a free market.  The libertarian notion that has become fashionable in recent years is that only under the economic conditions of laissez-faire, or government non-intervention, can capitalism flourish and exist in a “pure” form.  They cite Bernard Mandeville or a diluted, oversimplified version of Adam Smith as evidence of this proposition.

Some leftish moderates, accepting this facile rightist notion of what capitalism is, naïvely believe that administrative reform, government oversight, more expansive welfare/social programs, and bureaucratic regulations would help counter the volatility and rampant inequality inherent in capitalism.  They believe that the perpetual crisis at the core of capitalism can be “curbed,” “corrected,” or even “controlled” by such Keynesian, neo-Fordist measures.

In reality, however, state-interventionist capitalism is just as capitalist as free market capitalism.  The fundamental principle underlying capitalism in all its different configurations is perhaps elusively straightforward: capital itself.

Corporation — A corporation is not simply any form of capitalist big business.  In fact, in terms of private property, a corporation is actually less tied to the interests of a single individual than non-corporate businesses.  Because the existence of a corporation qua corporation involves an enterprise “going public,” i.e. selling shares of its ownership, it actually reflects (in terms of sheer magnitude) a larger proportion of the public interest than a smaller private enterprise.

Of course, the public character of the corporate enterprise and big agribusiness (the Monsantos of the world) shouldn’t fool us as to their capitalist nature.  A corporation is beholden only to the interest of its shareholders, and not to the public at large.  They have one obligation alone — to turn a profit for those who own a portion of their stock.  And corporations have been known to be exceptionally ruthless in this pursuit.

The only point that I am trying to make by this is to note the irrevocably capitalist character of both big corporations as well as small businesses.  Both operate according to the logic of capital: the supervaluation of value.  In other words, big corporations and small businesses have the same goal at the end of the day.  They seek to turn money into more money. Continue reading →