Tag: Crisis

  • In Brief: Revolution is Inevitable

    In Brief: Revolution is Inevitable

    In Capitalism and the Death Drive, the philosopher Byung-Chul Han argues that “revolution is impossible today” because any resistance to the neoliberal order either quickly dissipates or becomes absorbed by corporate mass consumerism.1 Commodified Che Guevara T-shirts come to mind, as do counterculture movements like punk rock and Burning Man.

    In the age of social media our personal absorption into the commercial sphere is even more ubiquitous; we put ourselves under surveillance and freely subject our activity to data harvesting and resale. Han writes:

    System-preserving power has now taken on a smart, friendly form, and it has thereby become invisible and unassailable. The subordinated subject is not even aware of its subordination. It believes itself to be free. This technology of rule is a highly efficient way of neutralizing resistance.2

    In the absence of polling data, this view is likely mainstream even on the left where it is echoed by Gilles Deleuze, Felix Guattari, Fredric Jameson and Mark Fisher.3 While nobody would rule out revolutions in economy and culture, it is that all-important political revolution that feels forever achingly out of reach.

    It is easy to forget about the movement of tectonic plates once accustomed to the ground under our feet. Even Lenin was once discouraged about the prospects of revolution—with similar doubts over the level of adequate resistance to Russia’s ancien régime. But the absolute monarchy of the Tsar was doomed once industrial production began melting away the feudal relations in countries to Russia’s east and west. This caused Tsarist Russia to lose badly in wars against Germany and Japan. The question of revolution was never an “if” only a “when.”

    To understand why revolution is inevitable, we need only turn to one of the most important paragraphs that Karl Marx ever wrote:

    In the social production of their existence, men inevitably enter into definite relations, which are independent of their will, namely relations of production appropriate to a given stage in the development of their material forces of production. The totality of these relations of production constitutes the economic structure of society, the real foundation, on which arises a legal and political superstructure and to which correspond definite forms of social consciousness. The mode of production of material life conditions the general process of social, political and intellectual life. It is not the consciousness of men that determines their existence, but their social existence that determines their consciousness. At a certain stage of development, the material productive forces of society come into conflict with the existing relations of production. From forms of development of the productive forces these relations turn into their fetters. Then begins an era of social revolution. The changes in the economic foundation lead sooner or later to the transformation of the whole immense superstructure.4

    For Marx, a social revolution is not simply a change of government, policy or cultural norm—it is a complete change of ruling class. Notice that he does not speak of “adequate resistance” when he lays out the conditions of revolution. Revolution appears as a tectonic economic shift away from the existing ruling class, first and foremost.

    This occurred in the West when royal authority and the landed aristocracy became an impediment to merchant capital accumulation. It happened in Russia and China after their industrialized neighbours attacked, pecking at the morass of decaying feudal orders. It happened intercontinentally, across the Global South, as colonial regimes experienced diminishing returns from ransacking the economic productivity of their subjects. 

    The revolutionary potential of the West has been non-existent for almost a century now. The last time it emerged was during Great Depression. This was when the rapidly industrializing Soviet Union garnered the appeal of unemployed masses and western governments swiftly countered with a barrage of social democratic compromises, including public works projects and social security payments.

    The next economic catastrophe will not experience the same social democratic outcome. Liberal capitalism emerged as the political analog to economies dependent on territorial expansion and the steady opening of new markets to capital interests. Almost single-handedly, China is now melting down the western dependency on rent-seeking profits. Vertical integration of supply chains, overproduction of renewable energy, suppression of private financial capital, managed deflation and strategic technological development are saturating the world with low-cost goods and medicines and high quality open source software. The addressable market for western conglomerates is shrinking, evermore reliant on debt and speculation to fund operations. Western governments are flailing, pouring money into the furnace of war and doubling down on fossil fuels in the faint hope of maintaining dominance with atavistic 20th century strategies.

    The liberal paradigm cannot conceptualize this technological levelling of the global economic pyramid. It is collapsing inwards like a dying star. Drone warfare has seen ragtag armies grind the world’s mightiest militaries to a halt. Cheap solar panels bring miniature power plants to even the most remote of African villages. Open source A.I. is shredding the U.S. Big Tech profit model to pieces. Multiparty “democracy” has factionalized society into camps of superficial enemies, denying even the possibility of long-term strategic planning. Rampant inflation is quietly brandished as an escape from heaving debt loads handcuffing public and private entities. U.S. dollar dominance is declining with the overuse of criminal sanctions. Social media has turned “free speech” into a vector of weird conspiracies, sensational propaganda and pornography. “Free market” ideology has become the ramparts of financial monopolies and homelessness and hardcore drug addiction.

    In short, the social relations of the West are in open contradiction with the new productive forces being unleashed. This is the smoke signal for revolution.

    The technological levelling described above means that the liberal order will not be able to rejuvenate itself with a social spending package and a war, as it did during the Great Depression. The rent-extracting platforms of the current ruling class of CEOs and financiers are cracking. When they finally break, the only way out will be a political order that subsumes the new powers of production and seizes the means of finance, construction, resource extraction and strategic industries. Only then will it be possible to fix the underlying mechanical problems hampering our historical progression on a livable planet.

    As it disintegrates before our eyes, movements rejecting liberalism will grow. We must embrace long-term planning, direct democratic implements, international cooperation, green development, abundant housing and services, livable communities and expedient public infrastructure. The capitalist ruling class will be supplanted as a political authority or else destitution will result. Some countries have discovered this already and some will take fascistic detours before arriving at the right destination. It is inevitable.

    Thanks for reading!


    1. Byung-Chul Han, Capitalism and the Death Drive (Polity Press, 2019): 15.  ↩︎

    2. Ibid, 17. ↩︎

    3. The inescapable totality of capitalist consumerism is one of the primary focuses for each of these thinkers. ↩︎

    4. Karl Marx, Preface to A Contribution to the Critique of Political Economy. ↩︎
  • Ask the Editor: Oil Demand and Destruction

    Ask the Editor: Oil Demand and Destruction

    To the editor,


    Is the energy crisis stemming from the war on Iran a simple matter of supply and demand?

    Cheers,

    Breezy.

    [Sent from Substack]

    Dear Breezy,  

    The world is staring at a billion barrels of oil lost due to military actions undertaken by the belligerent governments of Israel and the United States. This number will only go up with each passing day of disruption to maritime traffic in the Persian Gulf. To put that number into context, it is roughly equivalent to ten full days of total global consumption. This kind of supply squeeze will present itself unevenly; the higher cost of gas and transported goods can be either a nuisance or a calamity depending on the financial capacity of consumers.

    Turning to Karl Marx the political economist, he himself did not live to see oil come into dominant use and it was coal that reigned supreme during his Victorian era. But he recognized fossil fuels as a foundational mean to the capitalist mode of production because their dense energy content allowed for the intensification of human labour and factory output.

    The utilization of this new mean of production is what ultimately lead to the standardization of wage labour and industrial processes. Whereas water mills depended on the ebbs and flows of natural streams, the coal-fired steam engine could be plunked wherever potential workers were, with trains and ships doing the rest. Oil merely advanced the technological revolution that coal set into motion regarding production and circulation.

    Because oil is so foundational to the capitalist mode of production, its presence in the marketplace cannot be reduced to the dollars and cents of each barrel. Countless wars have been fought, governments toppled, acres fracked, blockades raised—all to influence the direction that precious crude flows black. If the price is too high, economic activity will be suppressed. If the price is too low, Big Oil bleeds profits. It’s a fragility that puts Goldilocks to shame.

    In Marxian economics, supply and demand “play a vital surface role in generating price movements for a particular commodity” without which “there could be no equilibrium price.”1 With the economic rise of China and the Global South, oil prices routinely clocked in over $100 per barrel as new demand pressured existing supply. While oil companies blistered with cash, high prices suppressed potential consumption in virtually all other areas of the global economy. After all, only 15 countries export meaningful quantities of oil that another 160 countries must bid on. 

    As the process of capital accumulation in one sphere became a contradictory force suppressing accumulation in others, the economic system demanded a way to get beyond it.2 Fracking technologies were unlocked by American public–private partnerships and they opened up vast supplies of oil in the United States and around the world. Fracking is what brought the supply and demand of oil back into an equilibrium that guaranteed both stable profits and continued future growth. 

    What the war against Iran has accomplished is to throw disequilibrium back into the oil markets, this time because of disruptions to shipping in the Strait of Hormuz. As many Gulf producers go toward zero, oil operations outside the region see their profits soar. The sudden scarcity of oil and its byproducts has led to the cancellation of tens of thousands of planned flights, MRI screening is pressed by helium shortages, semiconductor manufacturing in Asia is throttled and a lack of fertilizer is scarring agriculture in Africa and South Asia.

    Disruption to supply inevitably leads to destruction of demand. Free market orthodoxy dictates that price adjustments alone bring about equilibrium in commodity markets. But it will be shown that the value of oil to labour processes and capital accumulation transcends the spot price of each barrel. The oil market is an artifact of economic planning carefully designed to keep the downstream tributaries trickling outward. With those plans now buried under Middle Eastern rubble, capitalism is confronted with yet another “constantly overcome but just as constantly posited” barrier.3 

    In sols.

    Send your questions to the Reclamationeditor@thereclamation.co

    Footnotes:


    1. David Harvey, A Companion to Marx’s Capital (Verso, 2010): 166. ↩︎

    2. The barriers that capital imposes on itself before leaping over them are explored by Karl Marx in his Grundrisse (Penguin, 1993): 410. ↩︎

    3. Ibid. ↩︎
  • Ask the Editor: ‘The Rupture’

    Ask the Editor: ‘The Rupture’

    To the editor,

    Canada has been targeted with threats from Trump since Prime Minister Carney’s Davos speech. Can you tell me why it was so provocative?

    Thank you,

    Kay.

    [Sent via WordPress]

    Hi Kay,

    Mark Carney’s diagnosis of “a rupture” in the world order has been hailed for its clarion call to middle powers to band together and form a counterweight to American global hegemony. Under threat of U.S. economic reprisals, Carney explained, a variety of demands are now being made on the allies that have benefitted from Pax Americana. As if trying to prove Carney’s point, Trump replied the next day: “Canada lives because of the United States. Remember that, Mark, the next time you make your statements.” By acknowledging Trump’s coercive demands, Carney invited another one—stop complaining or Canada might not live.

    Since 2016, Trump has promised to shake down the world on behalf of America and Carney only affirmed that fact in Davos. It is unclear if Trump really understood the content of the message or if he was merely offended that headlines were grabbed by another world leader. The psychological pathologies of the current U.S. leader are difficult to overstate. Unintentionally, Trump’s threatening response to Carney’s speech elevated its importance and imparted a lot more aura to its content than it would have otherwise had.

    Carney only described a rupture in the appearance of the world order. Not its substance. Speaking as an elite financier, Carney cited a controversial former president of Czechoslovakia and said it was only a sign in the window that made people believe in the working class power of former socialist states. As an analogy for the present, Carney implied that the concept of a liberal “rules-based international order” was only ever a guise for operational U.S. global hegemony. Strategic allies such as Germany, Saudi Arabia and South Korea enjoyed market access in exchange for adherence to “American interests”—but this was the extent of the norm.

    The U.S.-led global order has always been transactional and never about hifalutin “democratic values” or rational global governance. The trail of human rights violations, democratic overthrows, targeted assassinations and full-scale invasions is too long to claim otherwise. The revival of state-sanctioned piracy and gunboat diplomacy targeting Venezuela, Cuba and Iran only adds to a long-established pattern of lawless American aggression abroad.

    The shockwave of U.S. military rampage felt for decades in the Global South harkens Karl Marx: “The profound hypocrisy and inherent barbarism of bourgeois civilization lies unveiled before our eyes, turning from its home, where it assumes respectable forms, to the colonies, where it goes naked.”1 Trump is not a rupture to the American hegemonic order. He is the ruling class without clothes. He offends the elitist sensibility of a Davos crowd not accustomed to being slapped about the head by the swinging dick of America’s president. But let’s exit the world of posh Swiss resorts in the Alps. How about those crowds of Baghdad, Caracas, Mogadishu, Havana, Jakarta, Ramallah or Tehran? Threats of annexation and tariffs against middle powers must appear positively trifling next to the suffocating economic embargoes, CIA-managed torture chambers, genocidal carpet bombings and rock-ribbed support for right wing dictatorships that have visited the Global South.

    As a central banker, Carney is well aware of the vital function that international debt bondage and structural adjustment programs play in securing cheap labour and resources to middle powers. If he seemed to gesture toward the brutal and ongoing excesses of American control without denouncing any examples—this is why. The middle powers lack the scale of the hegemon but they lean on a system of dramatic capitalist exploitation all the same. Carney may be able to capture the zeitgeist of the World Economic Forum but a man with his pedigree will never apprehend the economic basis that is needed to construct a true new world order. 

    In sols,

        Your editor.

    Send your questions to the Reclamationeditor@thereclamation.co

    Footnotes:


    1. Karl Marx, “The Future Results of British Rule in India,” in Dispatches for the New York Tribune: Selected Journalism of Karl Marx (Penguin, 2007): 124. ↩︎
  • Ask the Editor: The Demonic Nature of Global Rearmament

    Ask the Editor: The Demonic Nature of Global Rearmament

    To the editor,



    There are huge increases to military budgets around the world and a lot of talk about a wider war with Russia, conflict with China over Taiwan and the “Donroe Doctrine” in the Western Hemisphere. Are countries preparing for  World War III?

    Thank you,

    Kyle.

    [Sent by email]

    Hi Kyle,

    The situations in Ukraine, Venezuela and Iran demonstrate an aggressive push for hegemonic consolidation: the U.S. is determined to put all of Latin America into a stranglehold and knockout Israel’s last major stronghold of resistance in the Middle East, while Europe is now tasked with keeping Russia out of their sphere. Throw in the rise of China, and these developments have the world starting to resemble the European balance of power that collapsed into World War I.

    In a world balancing on the weight of military strength, countries are compelled to invest in armaments or be tossed from the scale. Japan has rubber stamped a record-setting military budget and Taiwan has done the same. Canada wants to triple its military spending; Australia is under pressure to raise theirs by 75%. India, Germany and France all have proposals to double their military spending, with Emmanuel Macron adding: “To be free in this world we must be feared. To be feared we must be powerful.” Without parsing what that means to the freedom of those cowering in fear, Trump seems to agree with Macron by proposing a 50% increase to America’s already-whopping $1 trillion military budget. His proposed $1.5 trillion military spend doesn’t sound like a peacetime budget—that’s a budget for war

    In this political context, worrying about World War III is not unreasonable. Against a similar arms race backdrop in 19th century Europe, Friedrich Engels predicted World War I:

    I imagine that the plan is not to push things to extremities, to more than a sham war. But once the first shot is fired, control ceases, the horse can take the bit between its teeth…Eight to ten million soldiers will massacre one another and in doing so devour the whole of Europe until they have stripped it barer than any swarm of locusts has ever done.1

    Bombing countries like Iran or kidnapping the presidents of countries like Venezuela might not get us there. But desensitization to this uptick of radical interventionism makes a miscalculation more likely, as happened between the Austro-Hungarian Empire and Serbia once upon a time.

    The timing of this global rearmament could not be worse, given the present state of the environment and the residue of an inflationary crisis already aggravated by global conflict. Marx held complex views about the role of the military within the broader capitalist economy, but in the Grundrisse he noted: “The impact of war is self-evident, since economically it is exactly the same as if the nation were to drop part of its capital into the ocean.”2 Warfare vanquishes the resources that could be used to build an economy of human flourishing into plumes of blood and fire. In a competitive world of amplified scarcity such as it is, the proliferation of advanced weaponry and nuclear bombs adhere to a quest for economic dominance—consequences to human survival be damned.

    The ominous parallels between the first world war and a possible third recall Freud’s compulsion to repeat: we live in a neurotic civilization containing “a demonic character” whereby repressed traumas override the pleasure principle and are revisited again and again and again in order to “re-encounter our identity.”3 Given the violent and domineering history of capitalism, revisiting past demons in a nuclear-armed multipolar world would be nothing short of biblical.

    In sols,

        Your editor.

    Send your questions to the Reclamationeditor@thereclamation.co

    Footnotes:


    1. There was an estimated 8.8 million military deaths during World War I, making Engels’ prediction exceptionally accurate. A further 6–13 million civilian casualties are estimated, resembling that “swarm of locusts” stripping Europe bare. ↩︎

    2. Karl Marx, Grundrisse (Penguin, 2005): 129. ↩︎

    3. Sigmund Freud, Beyond the Pleasure Principle (Broadview Press, 2011): 74-75. ↩︎