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October 21, 2013

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Path_dependent

It's almost as if capitalism is riddled with contradictions... someone should write a book on it.

Leonpaternoster

It probably shows us that government isn't clever/agile enough to promote a single, cogent set of interests. It's a complicated beast.

Boffy

You are confusing the state with the government. The state acts to defend the interests (as it sees them at the time) of the dominant section of capital. The Government, whilst ultimately it has to take into consideration the interests of Capital in General - or else in the extreme it faces the same fate as Allende - has to cater for that section of society upon which its core membership is based, and its electoral support comes from.

The current Government, like Thatcher's, is based on the small capitalists and associated layers. That is why it follows a policy needed by that class fraction, i.e. low wages/high debt to the detriment of Capital in General. It is why that policy has been criticised by the state officials both at national and international level.

But, what the view of the state officials is of what is in the interests of Capital in General itself depends on which section of capital is predominant at the time. In the post-war period, big, multinational industrial capital was predominant, which is why Keynesianism was adopted in its interests at a national and international level, establishment of IMF etc.

But, a Marxist view cannot be mechanistic. We have to allow for the human beings that actually make up the permanent state to also be wrong, to suffer false consciousness. For ten years after it was clear Keynesianism could not resolve the problems of capital in the 1970's, it was still promoted by them.

Its no surprise that given that Monetarist policies have been orthodoxy for the last 30 years, that even when they are clearly failing and counter-productive, a generation of mandarins brought up on that orthodoxy takes time to change its stance too.

pablopatito

What anti-immigration policy?

JW Mason

I'm surprised to hear that you consider yourself a Marxist. Your analysis is straightforward liberal Keynesianism.

250242

Too complicated an explanation.

It is a populist Govt seeking re-election by espousing policies that go down well at the Dog and Duck and appeal to commom sense ie general prejudice. Ther is no reason why such policies should form a coherent whole.

Zorblog

Take a different view.
Governments tend to be conservative, defend a status quo, and hence protect property rights (ain't it all what governments are about at the start?). Budget cuts is a protection of wealth and revenues. Anti-inflationary policies are a protection of savings.
Left-wing governments tend to be equally conservative. They protect the privileges of civil servants, trade unions and retirees. Communist governments served the interest of the Nomenklatura.
So, it is true that in a capitalist society, government can be seen as protecting the inrerest of capital, but it is far-fetched to consider there is a direct will to do it. Besides, why would governments be more efficient at protecting the interest of capital than at doing all the other things they are supposed to do?

Anonymous

Rich savers can simply pile their wealth into property. They don't need to hold their wealth in interest bearing securities, so low interest rates shouldn't really bother them.

The government's policies to inflate the property market support wealthy savers in this respect.

Magpie

"Or does it instead tell us that the (cruder) Marxian conceptions of the state are mistaken, and that the state doesn't always promote capitalists' interests? I walk away muttering about the relative autonomy of the state."

A fair point!

Indeed, the notion of individuals could play a useful role: it's individuals who hold key government positions.

I think many people, for whatever reason, believe that both the capitalist class and proletariat are monolithic, undifferentiated entities. And that no other classes can be found under capitalism.

They're mistaken, big time.

Leslie48

Thanks for reminding us about Poulantzas and his theory of the capitalist state: but surely contradictions are at the heart of capitalism ( but probably not at the end of the day( Althusser. The anti-EU ideology preached by the Far Right, UKIP and the the very Tory Right is a case in point. It will scare the sh*t out of business here because we know leaving the EU will damage industrial & service sectors like finance. It is of course scary for us all as so much wage/social legislation would be at risk and we would leave our civilized friends of Europe as we sank into worse forms of Neo-Liberalism.

Churm Rincewind

As William Golding put it: "I have hung all systems on the wall like a row of useless hats. They do not fit. They come in from outside, they are suggested patterns, some dull and some of great beauty. But I have lived enough of my life to require a pattern that fits over everything I know; and where shall I find that ? Then why do I write this down ? Is it a pattern I am looking for? That Marxist hat in the middle of the row, did I ever think it would last me a lifetime ? What is wrong with the Christian biretta that I hardly wore at all ? Nick's rationalist hat kept the rain out, seemed impregnable plate-armour, dull and decent. It looks small now and rather silly, a bowler like all bowlers, very formal, very complete, very ignorant."

Blissex

«Whilst anti-immigration policy is popular»

Anti-immigration policy as someone said does not exist: it is only a few show pieces aimed at extra-europeans, whether from rich or poor countries, while there is strong pro-immigration policy from poor labor-reserve-army places within the EEC.

In any case immigration is only unpopular with the electorally irrelevant lower paid, casualised working classes.

The pro-immigration policy by both New labour and the Coalition is wildly popular with the middle aged and older, mostly female, mostly property owning Middle Classes that are the swing voters in the South-East.

For them more immigration means cheaper home care, cheaper gardeners and plumbers, higher rents and higher property prices.

«Growing inequality (in the sense of the share of income going to the very wealthy) might eventually trigger a backlash which jeopardizes the interests of the rich. There's little sign of this yet, but history suggests things can change quickly.»

Since 1989-1991 collapse of the symbol of the potential alternative the anglo-american elites are confident that they can go back to the 50s, I mean the 1750s.

Blissex

«the function of the state is not so much to act as a Platonic philosopher-king disinterestedly aiming to maximize a social welfare function, but rather to advance the interests of capital.»

«Poulantzas and his theory of the capitalist state: but surely contradictions are at the heart of capitalism»

I think that "capitalism" here is rather overused, especially it has transformed over the centuries in something quite different from what it meant in Karl's time. And dear old Karl wrote about the state being the tool of the elites of the era, not just capitalists, and government being the managing board of capitalism.

However as other commenters have noticed the "elites", whether capitalists or not, apart from contradictions can also have division in factions.

My impression of the politics of the past 30 years is similar to that of a previous commenter:

«The current Government, like Thatcher's, is based on the small capitalists and associated layers. That is why it follows a policy needed by that class fraction, i.e. low wages/high debt to the detriment of Capital in General.»

But more general: I think that in the past 30 years the dominant politics have been those of incumbency, and in particular of incumbency in property and other sources of rent (e.g. managerial control, professional license, career in the City, being a swing constituency).

Voters with incumbency in positions of rent have provided the brawn, the mass, to support electorally the governments of the past 30 years, and they have been pandered to enthusiastically by the political classes.

My impression is that however this enthusiasm has not been motivated mostly or solely by the desire to please that particularly constituency, except tactically,

My impression is that the brains of the politics of the past 30 years have been a quite different constituency, the asset strippers, and that the long term strategy has been asset stripping the first world.

There are several signs that the ruling elites of the Anglo-American culture countries started applying the BCG matrix to entire countries, and then classifying Anglo-American countries as "cash-cows" at best, and most usually as "dogs", to be asset stripped following Jensenist principles, to reinvest the proceeds in higher growth nations.

In other words doing to whole countries what Romney and those inspired by his success did to many otherwise viable (and some unviable) companies.

My impression of the strategic aims of the interests behind New Labour and the Coalition is for the UK to pump, pump up asset prices with credit, dump them at the highest price to suckers, and turn the South-East itself into a wasteland like the North, a mere reservoir of cheap, docile hired help begging for jobs in London, as now is the North wrt to the South-East; while continuing to sell London as a kind of bigger Monaco or Caymans or Zurich/Geneva, a freewheeling international casino, refuge for international looters and for hiding and laundering the proceeds of fraud and looting (someone has even written a book about this latter strategy).

With the Etonian ruling class continuing to live in a grand style by extracting rents from the patrons of the casino.

Warren

I should say that this government is pro-capitalism and populist in as much as policies are generally in line with capitalism. The capitalists are not a homogenous and unified group. They are in a competitive fight to the death, in relation to accumulating profit, with other capitalists and their businesses. The Government and states will reflect this conflict in their policy decisions. Overall policies will benefit capitalism: even if they do cause short or medium term pain to some capitalists. What's seen as vital by the disparate and conflict riven capitalists is the continuance of capitalism.

Jackart

Of course the people who MOST benefited from Thatcherism were not the rich, but those of the working class who bought their council houses. Left-wing = lie about Thatcher is it Chris?

Boffy

@jackart.

Within a couple of years of buying their Council houses, a large portion of those workers found themselves homeless, because they could not pay their monthly mortgage payments as mortgage rates soared to 15%, and unemployment rose. They formed a large portion of the tens of thousands of workers that were evicted as the banks and building societies repossesses properties that fell in price by 40% in a matter of months in 1990.

They then found that Councils couldn't re house them, because they had not built houses, and their stock had been sold off and was now in the hands of banks and private landlords, who picked them up on the cheap when their former tenants couldn't pay the mortgage.

We see a similar situation today with the huge property bubble about to burst, and with a shortage or Council housing for people to move into, and a squeeze being put on rents by the cuts in Housing Benefit.

Blissex

«that Councils couldn't re house them, because they had not built houses»

The law that obliged Councils to sell houses to a huge discount to potential tory voters also *explicitly* forbade the Councils to use the relatively little money so earned to build more Council houses.

Deviation From the Mean

I can't accept Boffy's contention that the Condem's are acting in the interests of the small capitalists. The austerity policies are reducing wages, British wages are reducing faster than anywhere else in the EU. The effect of this is to see many small capitalists go to the wall, because they rely on consumer demand. So more and more small capitalists end up in the proletariat. Potential small capitalists have poor conditions to start up businesses. Big business rides the storm and picks up the cheap assets. Big business are loving it. Power is being concentrated as we speak.

Investors do not invest in the nation but in companies and the big companies are doing ok, the nation can go to hell, along with the small capitalists, who are more reliant on the nation. The big, transnational companies are less concerned with the domestic picture.

The state more and more looks after the interests of the transnational ruling class, not the national one. The state follows the power.

I guess we are still in the transitional stage to a truly globalised capitalism from the historic one of nation states. And what we are seeing are the contradictions playing out. Can capitalism truly globalise the world, the answer is still in the balance I would suggest.

So to conclude, the problem isn't Marx's theory but with Marxists who are unable to develop theory in accordance with changing circumstances, dogma replaces reason. How very unMarxist!

Blissex

«*explicitly* forbade the Councils to use the relatively little money so earned to build more Council houses.»

That law was designed to cover all bases in transforming Old Labour voting renters into tory (Conservative or New Labour later) voting rentiers.

This was done very intentionally, and the reason should be repeated here, as it is one of the most important facts of politics of the past 40 years, a fact that has been put to use in many Anglo-American countries.

Just as the Thatcher government took power a conservative think-tank had done a study of voting patterns and discovered that:

* People who owned cars, shares, or houses voted much more to the right than people who used public transport, had other forms of savings, or rented, *even given the same class and level of income*.

* When people acquired cars, shares or houses, or vice-versa, their voting eventually changed significantly as per the above.

Note the important bit: "*even given the same class and level of income*". That is the ownership of cars, shares or houses had an essentially *psychological* effect in itself, not just because it was an expression of a difference in class or income.

In other words, even people of means and class who rented, used public transport and did not have shares tended to vote for the left much more frequently than people of equivalent means who owned cars, shares, houses.

But that was electorally not very important,as there aren't very many people of means and class.

The really important discovery was that even people of limited income and within the masses of the working class would rather vote tory than Labour if they owned some shares or a car or a house.

Becoming property owners even on a really small scale transformed them into often intense supporters of "f*ck you! I got mine" politics, voting relentlessly for higher unemployment and lower wages, and for higher asset prices and lower capital gains taxes.

That study was widely circulated among Tories, Republicans, and their counterparts in other countries, confirming with solid numbers the much older intuition that a "property owning democracy" was a reactionary democracy.

Therefore the relentless policies of Thatcher and her successors for undermining public transport and the rented housing sector and savings into employer pensions and for selling cheap houses and shares whenever possible to potential tory voters, boosting asset prices with relentless credit bubbles, and subsidizing road construction despite NIMBY tendencies among their bases.

This had the effect to turn most of the South-East working class (especially middle aged and older, and female) into Daily Mail/Telegraph reading stereotypes, eager to vote tory.

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エアジョーダン

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エアジョーダン13

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エアジョーダン13 http://www.chaincare.com/css/32-Football-Uniforms.html/

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エアジョーダン激安 http://www.downsyndrome-wakefield.co.uk/editor/35-Nike-Air-Force.html/

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エアジョーダン 通販 http://www.mountpleasantcentre.com/asp/32-Football-Uniforms.html/

エアジョーダン2013

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ジョーダン1

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ジョーダン1 http://www.kevinpottsdecorators.co.uk/js/32-Football-Uniforms.html/

Boffy

@ Blissex,

The other point is that when its said that Council Houses were sold to tenants this is largely false. They borrowed money from banks to do so, so the house really belonged to the bank, because it was used as collateral for that loan. The tenant effectively went from paying rent to the Council to paying rent to the bank, except it was called a mortgage payment instead, and now the tenant had responsibility for repairs etc.

But, the Tories needed this policy for another reason. Property ownership was a necessary means of promoting private debt, and they had to massively blow up private debt in order to maintain levels of consumption as they cut wages in the interests of small capital.

Lower wages have much less effect on big capital than on small capital, as Marx sets out in Capital, because wages form a much smaller element of cost-price for Big Capital. But, a cut in wages that reduces aggregate demand does have an impact on Big Capital, more than small capital, because Big capital is dependent upon high levels of aggregate demand in order to keep producing at the required high levels that more heavily capitalised industries require for efficient production.

Deviation From the Mean

"But, a cut in wages that reduces aggregate demand does have an impact on Big Capital, more than small capital, because Big capital is dependent upon high levels of aggregate demand in order to keep producing at the required high levels that more heavily capitalised industries require for efficient production"

If we apply that to a simple model then maybe, or maybe not! But not the domestic consumer demand in a globalised world. For example, take the local village. The level of consumer demand reduces because real wages are going down. You have 2 fast food places in the village, the reduction in demand is a potential threat to one if not both (or an opportunity), as people eat in and get bargains from the supermarket. The small capitalists fall into the proletariat. Big capital doesn't give a toss about this nation or that. It will shut down a power plant if it doesn't get it's way and simply move production elsewhere. Power is being concentrated as we speak.

So Tory imposed austerity on the UK is done in the objective interests of big capital vis-a-vis small capital, at least, this makes as much sense as your insistence on it being the other way round. Your argument makes as much sense as the Chinese above.

The Tory attack on the public sector is being done for the benefit of all capitalists, at least this is the intention. Doncaster are planning to sell off its entire old persons provision to the private sector. I think Boffy has said in the past that Tory austerity would fall by the wayside because big capital would seek to undermine it. This prediction has proved as useless as all his other predictions. It has proved useless because it was based on a flawed assumption, one that no other Marxist shares incidentally. Boffy is at best on the fringes of Marxist thought, if Marxism was able to act like a proper science and peer reviewed more effectively he wouldn't stand a chance!

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