Posts Tagged ‘Economic Theory

28
Jul
10

A Communist Response to the Tea Party

The Tea Party has made a point of lambasting the Communist movement. Pictures of Obama (for the last time- not a Communist) are adorned with the hammer-and-sickle emblem, or set up alongside pictures of Marx and Lenin. There are picket-signs with such slogans as “Revolt Against Socialism”-in short, it’s the largest anti-leftist movement since McCarthyism. And not without reason, either. It’s undeniable that there’s a certain appeal to the Tea Party movement. Joining the fight against the [alleged] looming threat of an authoritarian state, bringing the country back to its original values, lowering taxes for the middle-class-everyman- who wouldn’t want in? But as with every political/social/economic movement you have to cut through the buzz words and slogans and examine the core principals and goals.

The Tea Party seems to be focused around three central issues, (1) the limiting of government power, (2) the restoration of Free Market Capitalism, and (3) through these two goals bring America back to the values of the Founding Fathers. In and of themselves these principals seem perfectly reasonable- admirable even. Until you look at history.

Limiting government power? Hey- Communists are all for it. One of the principal goals of Marxism is the abolition of the state. Indeed, despite the Tea Party’s pictures of Democrat politicians with the hammer-and-sickle superimposed on them, Communists have more in common with Libertarians- as far as governmental issues anyways. The problem with the Tea Party is that there not against big government- they’re against big Democrat government. The Patriotic Act was one of the greatest expansions of government power since the Civil War- did the Tea Party protest then? In the Tea Party’s defense though- this is a problem on both sides of the political spectrum; those who protested the Patriot Act have remained strangely silent about the issue now that Obama is in power.

As for the restoration of Free Market Capitalism- there’s a reason regulatory laws and branches have been developed. Before the advent of market regulation, the state of things was appalling. Child labor, strike-breakers, low wages, dangerous work conditions, false advertising, a complete lack of product safety and quality control, rampant pollution- to put it mildly, it was nightmarish. And even despite regulatory laws, corporations continue to pollute and exploit- look at third-world sweatshops and the continued destruction of the environment! If things are bad now, how much worse will they be without laws to protect the workers and consumers?

And lastly and most importantly, there’s the issue of the founding fathers. If you listen to far-right pundits (Glen Beck would be a prime example), you’ll hear repeatedly that the US must be returned to the plans the founding fathers had for it. A closer look at the writings of America’s founders, however, suggest that they might not have been as wild about Capitalism as conservative pundits and Tea Party members make them out to be. Thomas Jefferson, for example, had this to say about private property:

It is agreed by those who have seriously considered the subject, that no individual has, of natural right, a separate property in an acre of land, for instance. By an [sic] universal law, indeed, whatever, whether fixed or movable, belongs to all men equally and in common, is the property for the moment of him who occupies it, but when he relinquishes the occupation, the property goes with it.

Or look at this statement by Thomas Paine (technically not a founding father, but his influence of the Revolutionary War and the formation of the American government is immeasurable):

Men did not make the earth… It is the value of the improvements only, and not the earth itself, that is individual property… Every proprietor owes to the community a ground rent for the land which he holds.

and

…To pay as a remission of taxes to every poor family, out of the surplus taxes, and in room of poor-rates, four pounds a year for every child under fourteen years of age; enjoining the parents of such children to send them to school, to learn reading, writing, and common arithmetic; the ministers of every parish, of every denomination to certify jointly to an office, for that purpose, that this duty is performed… By adopting this method, not only the poverty of the parents will be relieved, but ignorance will be banished from the rising generation, and the number of poor will hereafter become less…

Even half a century later, Lincoln (not a founder, still an important figure in the shaping of American politics) gave us this warning:

As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.

Quite simply, as far as the founders go, I doubt their ideologies would have mixed too well with those of the Tea Party.

To summarize, the Tea Party may have a heroic and patriotic veneer, but that’s all that there is- catchphrases, dire warnings about an apocalyptic future, and desperate attempts to restore a past that never existed. And the truly tragic thing is there’s a lot in the Tea Party that could be used for the betterment of the American public. The rejection of big government is admirable- just make sure that you’re not substituting one lack of liberty for another. The desire to restore prosperity is good- Capitalism isn’t the way. The attempt to restore the country to the principals of the founding fathers is commendable- but only so long as you know what those principals were.

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20
Jul
10

A Communist Look Back (and Forward)

It’s been over a year since I first started this blog, and a lot has happened in the world- I think it only appropriate that I write a brief post reviewing the past year and making a few predictions for the next one.

We have the economic crisis (or rather, a series of crises) of such great proportions the public’s faith in Capitalism has been badly shaken. The bailouts, the BP oil spill, the revelation of corruption within the regulatory branches of government- none of these have done much to convince the people that Capitalism has their best interests at heart. Indeed, the loss of faith in the current system has led many to look into alternatives, such as Libertarianism, Socialism, and to an extent, Communism. Despite this, neocolonialism, economic and cultural imperialism continue to spread. The poor and working class of the third world remain largely oppressed. Slavery rates continue to rise. In xenophobic reaction to ever increasing immigration rates, the US and Western Europe has become more hostile to foreigners.

The controversial creation of public healthcare in the US- indicative of widespread dissatisfaction with healthcare under Capitalism (or the lack thereof)- has garnered both enthusiastic support and vehement opposition, most on the far-left have voiced support for the change, but maintain that free, universal healthcare is the only answer.

In short, to say that the past twelve months have brought forth dramatic change would be an exaggeration- at the same time, it is undeniable that have been significant developments in economics and the public views of Capitalism.

Predictions for next year:

1. Continued disillusionment with Capitalism- independent parties will probably gain in popularity.

2. Extreme right-wing reactions in the Republican and Conservative movements will ultimately alienate moderates and undecided voters, resulting in more harm to the GOP/Conservative movement than benefit.

3. Immigration into the US and Western Europe will result in greater hostility towards immigrants, possibly resulting in blatantly anti-immigrant legislation, violence, and the oppression of minorities. Fascists, racists, and extreme right-wing groups will probably be seeing some victories unless this xenophobia is immediately combated.

4.  Austerity measures in some European countries will result (or rather continue to result) in strikes by the working class- some potential for rioting, but no absolute certainty.

Looks like it’s gonna be fun…

16
Jul
10

A Communist Look at the Republican and Democratic Parties

We live in a two-party system and there’s no denying it. No matter who you vote for on election day, it’s going to be either a Republican or a Democrat who wins. And despite the common belief that the two sides represent opposite values and cultures and agendas and so on, the simple truth of the matter is that there’s not a whole lot of difference between the Republicans and the Democrats. Sure the Republicans staunchly defend gun rights, take pro-life stances (while running, anyways), and Democrats attempt to advance the cause of gay marriage (as candidates anyways) and government programs. Sure we sometimes get the picture that it’s the competent, virtuous Conservative plan versus the decadent, amoral Liberal one (or the compassionate, tolerant Liberal plan versus the heartless, outdated Conservative- depending on how you look at it). Sure we’re constantly being forced to choose between the two, but once you sort through all the apocalyptic campaign ads and vicious rhetoric, you find that both parties hold the same essential values and goals.

Both sides favor a free-market system with some basic form of regulation (arguments about which tend to get depicted as America ‘marching towards Socialism’ or ‘being bought by the corporations’). Both sides favor a strong military and both sides favor strong diplomatic and trade relations with other countries. Both sides favor a strong federal government and seek to maintain the system of law we have currently. The changes that are touted as being capable of saving/destroying the US are in reality minor changes. In short, it’s the same car, just different colors and fuzzy dice.

And it’s a shame. One would imagine that the two-party system is indicative of the will of the public, but this isn’t the case. What we have currently is the crippling fear that the other guy might win, preventing us from ever voting other than Democrat or Republican. For example, you might be in general a liberal but more than anything else you value an isolationist policy. Now you have two options, (1) vote fore the 3rd party isolationist candidate or (2) vote Democrat to ensure that the conservative candidate doesn’t win. People, on both sides of the political spectrum, want to see their ideals represented but ultimately vote Democrat/Republican to prevent the opposition from winning.

The solution? The first step is to realize that with so little difference between the two parties, it’s not worth getting upset over one side winning or another losing. The vast majority of the two-party system’s power stems from the common perception that you’re being presented with two diametrically opposed sides- understanding the situation for what it is will encourage the public to vote according to their values rather than their fears. As a result, there will be a greater dialogue about alternative styles of government and economics- Objectivism, Libertarianism, Isolationism, and of course, Communism.

09
Jul
10

The Communist World

A few years ago, I was attempting to obtain a permit at a government organization that will not be named here, and after waiting in line for a good hour and a half I finally got my turn to take the test required. As I entered the testing room I was informed that I could have circumvented this entire process by mailing this office some paperwork earlier in the year. Now before I had the chance to inform the low-level civil servant in charge of the testing that I had been traveling and unable to send in the paperwork, he snorted and called me ‘stupid’.

Now I generally dislike being called that, but I had just waited in line for an hour and a half and all I wanted was to take the test and be done with it- chewing the guy out wouldn’t have gotten me out of there any faster. But more importantly than all that, I couldn’t help but pity the guy. He was in his late fifties, seriously overweight, in all likelihood suffering from a heart condition, and stuck- day in, day out- processing paperwork in a stuffy, crowded office.

I can’t help but feel that this wasn’t what he had planned on doing with his life.

Sure, there’s the off chance that when his pre-school teacher asked him as a child what he wanted to be when he grew up, he cheerfuly gurgled “I want to be a low-level civil servant doing a dull and repetitive job as I develop health issues while reeking of stale sweat and despair’, but I doubt this is what happened. And I can’t help but think to myself, maybe society could benefit more if this guy only processed paperwork every other Thursday, and spent the rest of the work week doing whatever he’s talented at. Maybe he’s brimming with raw, artistic talent- maybe he could be a concert musician who takes a couple days out of the month to process paperwork. Wouldn’t that be better not only for him but for all of us?

And then I think to myself, what if we applied that to everyone working a repetitive, dull, unskilled job? What if everyone took a turn filing papers, mixing cement, sweeper the streets, stacking boxes, or serving coffee? Wouldn’t thousands- no, millions of people suddenly be freed up to pursue what they were born to do- be it writing or teaching or studying medicine or astronomy or the like? Wouldn’t we be healthier, physically healthier as a society if we all did a share of manual labor? Wouldn’t we have a greater respect for each other if we understood what’s it’s like to scrub a mountain of dirty dishes or pick litter off the sides of the highways? The simple fact of the matter is that with everyone contributing, we would have a happier and more efficient society.

And this is what Communism is- the sharing of menial labor so that everyone can pursue the profession of their choosing. Classism, the separation and segregation of people based on wealth, falls to pieces. The need for an oppressed and exploited working class to support the luxuries of a decadent minority is gone with the creation of this new classless society. This, combined with the abolition of private property, creates a society free from the struggles between the haves and the have-nots- poverty and pointless excess become things of the past. In short- we have Marxism, a society of shared wealth, shared work, and a shared future.

And is it perfect? Of course not. People will always be people- greedy, xenophobic, deceitful, lazy, and irrational. There will always be crime, there will always be war, and there will always be corruption.

But hey- it still beats the system we have now.

25
Jun
10

Socialism vs Capitalism vs Communism (and a quick note about the tea-party)

According to some pundits the US is currently locked in a struggle between its so-called Capitalist, free-market heritage and the looming threat of Socialism. Keep in mind that the term ‘Socialism’, while once synonymous with ‘Communism’, is currently used to describe a country where the majority of property lies in the hands of the government. Now as you can see by simply looking at some of the policies being enacted by the current administration that the US isn’t moving towards Capitalism or Socialism. Property isn’t being privatized or nationalized to any major extent. What has happened is that the federal government has been increasing in size and power, leading some elements on the right (namely the “tea-party”) to begin making dire predictions of an oppressive Orwellian future.

Now before I start, I feel that I should comment a bit about the tea-party:

Now I don’t have a problem with people protesting big government. As a Communist, I’m as opposed to a powerful central government as much as the average member of the tea-party, perhaps even more so. The problem is that the tea-party isn’t protesting big government! Where was the tea-party when the Bush administration pushed through the Patriot Act? The simple reality of the tea-party is that it’s not about resisting big government, it’s about resisting Democrat big government (in the same way, many of those who protested the Patriot Act have failed to complain about the increases in Government power under Obama- yeah the rule applies to Democrats too).

Now back to the point.

Despite the typical, melodramatic slap-fight between the Democrat and Republican parties, it can’t be denied that every once in a great while, the issues of privatization versus regulation of the markets comes up. On one hand there are the Libertarians who state that government involvement in all areas of life should be minimized. The markets should be allowed to boom and crash of their own accord and government interference only exacerbates existing issues and prevents natural growth (an argument Adam Smith first came up with). On the other hand, there are Socialists and Progressives who point out that history has shown businesses to be corrupt and dangerous if not regulated.

It seems more and more that the public is seeing this debate as an either/or dilemma- free market Capitalism or government regulation?

The sad truth of the matter is that both options are equally awful. Consider this: if there’s no government regulation of business (or as anarcho-Capitalists and objectivists would have it, no government at all), what’s to stop the meat industry from selling dangerously unclean meat? What keeps the pharmaceutical industry from selling us untested cough medicine, or even flavored sewer water labeled “cough medicine”? It is true that history has shown us, time and again, businesses have only one goal in mind- profit. Child labor, slavery, dangerous working conditions, chemical dumping, pollution- what would the state of our world be in if there were no laws against these things? If there were no regulations or watchdogs?

At the same time, regulating the free market has serious side-effects as well. Corporations will do anything to get around labor laws or environmental regulations and the like, and the government will find itself forced to constantly increase the number of regulatory departments and their power and extent of jurisdiction. The result is an inevitably gargantuan, bureaucratic government. State capitalism- as the USSR has demonstrated- is inefficient and oppressive.

But despite what the proponents of free market Capitalism and regulated Capitalism would have you believe, it’s not an either/or situation! Communism advocates the abolition of both Capitalism and the state, offering instead a system based on public property and public choice.

06
Jun
10

[Not] Free to Choose

Despite a growing dissatisfaction with Capitalism, there are many who refuse the concept of doing away with the system altogether. Such individuals tend to advocate “happy mediums” between free market Capitalism and state regulation. For example, the 2009 documentary Food, Inc. attempted to expose issues within the American food industry. While the film was highly critical of the some major food corporations in the US and the general way the industry is set up, the film advocated not the abolition of the Capitalist system that has allowed the situation to come to be, but rather the idea that through selective consumption, the food industry will be forced to alter its practices and products. For example, in this new system, one would choose to buy only “green” products, showing corporations that (1) the consumers will no longer buy ecologically harmful products and (2) there’s a profit to be made by selling eco-friendly merchandise.

It’s a painfully flawed system.

First, we must recognize the central role profits play. A product that is eco-friendly, made well, and made by laborers who are being paid decent wages is going to be substantially more expensive than a product that is made with no regard to the environment, the health/well-being of the consumer, and made by sweatshop workers. Products that have the qualities of the former are either too expensive to be profitable (enough) for the corporations producing them or too expensive to be purchasable by the majority of consumers. While there is some degree of public choice involved, overwhelmingly other factors such as the poverty of the consumers make this system impossible to realize.

Second, we must understand that Capitalism is in no way, shape, or form a democratic system. A while back, I had a conversation about Capitalism’s displacement (and to a degree, eradication) of local cultures. The person arguing with me made that claim that if the people of a country didn’t want McDonalds springing up across their nation, they would have only to stop eating there and the McDonalds, seeing no profit, would withdraw. The issue with this is that even if 95% of a population is against there being a product sold, if the remaining 5% buys enough to allow the company to make a profit, they will keep selling.

To recap the situation, product A is bad but cheap, product B is good but expensive, you will probably only be able to afford product A, and even if you manage to purchase product B, your ability to purchase other good products like B will be reduced because B is still expensive. But if you were somehow to rally the public and declare a boycott of product A, the fact that you’ve managed to get 75% of the populace to stop buying A doesn’t mean that A will cease to be a source of revenue. Short of getting a universal ban on product A, there’s not a whole lot you can do.

Now don’t misunderstand this post- I’m not arguing that because you don’t have much choice, you should capitulate to unethical business practices. On the contrary, out of principal, when it is your choice, you ought to spend money on the eco-friendly, fair-trade products rather than harmful or slave-labor products. I’m merely showing that Capitalism cannot be controlled by popular choice. Capitalism cannot be moderated so long as it remains based entirely on the acquisition of capital– and any change to this- the most fundamental aspect of Capitalism- would be an abolition of the Capitalist system altogether.

If you’re not free to choose within Capitalism, maybe you ought to considering choosing something other than Capitalism.

30
May
10

Communsim, the Environment, and the BP Oil Spill Disaster

While the BP oil spill nothing short of an ecological tragedy, I can’t help feel a tiny bit grateful for it. Like any disaster, despite the overall harm, there’s still a lesson to be learned from it. In the case of the oil spill, the lesson is this:

Capitalism and Environmentalism mix about as well as oil and water.

As has been discussed many times before in this blog, Capitalism’s primary function is the acquisition of Capital– money. It’s not the greater good of humanity, it’s not the advancement of one’s nation, and it’s certainly not the defense of the planet. It’s about cold, hard cash- nothing else. Of course one could argue that there’s money to be made in advancement of one’s nation or the defense of the planet, but precious little compared to that of the simple exploitation of the earth.

Now this is not the first time BP has been implicated in faulty safety measures that have resulted in an oil spill. In 2006, in Prudhoe Bay, Alaska, over a quarter million gallons of oil was spilled as a result of BP maintenance cost-cuts. Why cut maintenance costs? To increase profit of course. The higher the profit, the more the Capital– the entire point of Capitalism. So what if it’s dangerous to the local ecosystem? Capitalism is about profit- it’s about keeping the investors happy and the product(s) flying off the shelves. Now one might argue that people want to buy from eco-friendly companies (the entire issue of participatory economics will be dealt with in another post), but in general the trick is simply not getting caught damaging the environment. Really all the same principles behind the exploitation of the laborer apply to the exploitation of the earth. Making sure one’s equipment is up-to-date and functioning safely is costly, you want higher profits, cut back on clean waste disposal for cheap, (and almost inevitably) environmentally damaging) options. Rather than worry about the long-term implications of the effects of one of your products (herbicides, let’s say), make sure people just focus on the fact that it kills weeds in seconds rather than the fact that it does serious damage to the soil. As I’ve said before, it’s about the money, not the potential damage.

Now I’m not trying to argue that every product on the shelves right now has been made in such a way to maximize profits at the expense of environmental welfare. I’m pointing out that the potential is there, that Capitalists have no real reason to attempt to make their products environmentally safe (other than higher profit, of course), and that there are many, many instances of this happening- the BP oil spills being prime examples.

A strong-counter argument to this would be that, to an extent, the same rationale of “profit-before-environment” can be applied to a situation where a factor/mine/rig/etc. is owned by the local public (a major tenet of Communism), rather than a handful of individuals (the foundation of Capitalism). Sure, if the public living in and around the Bay of Mexico owned and operated the rig themselves, there’d still probably be the temptation to cut costs/manpower/time in ensuring the rig is environmentally safe, but if there was an oil spill as a result, the local communities controlling the rig would be the ones chiefly affected by the disaster and would have no one to blame but themselves. But instead of this fair and just ‘you-do-it-you-clean-it-up’ system, we have Capitalism. A man or company can own a rig on the other side of the world, profit off it, and never have to worry about waking up to dead seagulls and black tar in their yards. Now you can call me idealistic, but I can’t help but feel it a bit unjust that someone can be responsible for a major ecological, economic, and sociological disaster and never have to deal with the consequences. The reason I said “there’d still probably be the temptation to cut costs” earlier on was because one tends to have a differently mentality when dealing with something like this. Imagine you’ve been given the job of keeping bears off of an acre of land hundreds, no- thousands, of miles away. Chances are you’re going to be a lot less careful about keeping bears away than if you actually had to live on that acre and would be directly affected. Marx talks quite a bit about the estrangement of labor, but he mentions the estrangement of property as well.

Let’s face the facts. Capitalism is not going to solve our environmental problems (and even if you’re among the few who don’t believe in global warming, you have to acknowledge we’ve got some serious pollution and deforestation issues), and in all likelihood, Capitalism and Environmentalism are going to be at odds. The way the Communists see it, we can’t live without the environment- we’re more than happy to live without Capitalism!