We must go global: the case of South Korea

If we don’t go global, we can’t win.

Consider, for example, recent developments in South Korea around temporary employment (covered here at the Financial Times, behind a paywall). The rise of temp work in the US and other developed countries is symptomatic of neoliberalism. And as with other neoliberal trends, it is intensifying as the neoliberal economy breaks down. We might be familiar with hand-wringing on the subject in popular press in the US, but it is a global phenomenon (see also France, Germany, Japan, etc.).

South Korea has been hit especially hard by this trend, and has one of the highest rates of temp employment in the OECD, but it is now reversing the trend, thanks to some of the most militant labor unions in the world. Led by temporary workers, unions have taken up the cause of ending temp employment. Sustained labor unrest has resulted in billions of dollars in losses for major corporations, and tens of thousands of temp workers at Hyundai and other major corporations have been granted permanent status (or other benefits and contract improvements in lieu of permanent status).

(Un)Education in America

Tomorrow's schools, today

In June I wrote a post about the internship and its role in the redefinition of labor and training. Widespread divestment from training, in which the cost of training is transferred from the employer onto workers, is manifesting itself as a demand for prior experience. Workers are to have been trained elsewhere, and are expected to hit the ground running. Paired with a general job shortage, these demands for experience can only be met at the workers’ expense, by paying for training programs or by working for free. The internship is a perfect example of this trend.

But there is another, arguably more important aspect of divestment from training—the turn toward cutting and streamlining public education. Primary and secondary schooling is intended to foster good citizenship, to provide care for children while their parents work, and to train productive future employees, among other things. Today, we are seeing a redefinition of the government’s role as educator and trainer that could prove vital to any future economy.

Facing the Killer: On Murderous, Suicidal Rampages in the U.S.

Sandy Hook. Columbine. Aurora. Tucson. Blacksburg. Fort Hood. The names of these places ring out in popular memory as the sites of seemingly random, heinous atrocities that seem to occur with increasing frequency these days. Gun-related violence and death is a hot-button issue at the moment, and for good reason, as the U.S. leads the advanced capitalist world in a trait that is singular in its stupidity: allowing “the market” to work its magic by disseminating, unchecked, huge numbers of guns to an extremely unequal, class-riven and deeply racist society that also worships violence, murder, and mayhem in its popular culture. In this context advocating gun control is the only sane thing to do. However, it would be a mistake to say that the U.S. just has a “gun problem,” because the U.S. has a murderous, rampaging killing-spree problem.

Let me be clear. Every day dozens of people are killed in this country, mostly minority youth and mostly in the poorest and most economically devastated neighborhoods of the major cities. This chronic social crisis only appears in the establishment press as statistics, or else as an ongoing, existential situation that can only be managed but not really addressed. Its root causes and conditions are clear and have been extensively documented. But this ongoing disaster is not the topic of this post, which is another horrendous phenomenon in which the U.S. also leads liberal societies: the individual, suicidal, heavily-armed murder frenzy that seems to be happening about once a month now, on average.

Eyes on East Asia

In A.D. 2013 war was beginning. Well, not exactly, or at least not yet. But things may be creeping in that direction. Amidst all the brainless yammering about the so-called “fiscal cliff,” the hoopla of the Presidential inauguration, the emergence and bloody resolution of the Algerian hostage crisis, and French neo-colonial adventures in North Africa, the escalating geopolitical tension in Southeast Asia has receded into the background of the news cycle. That will probably change in due time, though. With old, nationalist hatreds flaring up and a global economic outlook that is anything but rosy, there is reason to believe that the situation may soon reach a boiling point. In the succinct words of China's own, inimitable Global Times, “Peace Will Be a Miracle if Provocation Lasts.”

Why Obama is so disappointing

Krugman’s column today patiently explains to the skeptics on the left that Obama’s first term was actually (invoking Joe Biden) “a big fucking deal”. But Krugman only betrays the fundamentally static conception of the world that lurks behind his analysis. (This is also the problem with his critique of Stiglitz’s argument for the role of inequality in continuing economic stagnation, and the source of his failure to connect the dots between capital’s growing share of income at labor’s expense and the dysfunctions in the economy, as well as for his far too sanguine view on the prospects of a near-term return to economic health.)

For Krugman, the baseline “normal” for our society is a growing neoliberal economy. When things go wrong, it’s because of policy mistakes: the failure of the Fed to reign in the real estate bubble in the mid-oughts, inadequate regulation of finance, not enough stimulus to put things back on the right track after the crash of 2008. There’s a sort of natural equilibrium of the economy that’s just waiting to be brought into being by the right kind of macroeconomic management. Other realms of society, like cultural trends and popular ideologies, are unrelated to the neoliberal economy, whether functioning normally or not — like any mainstream economist, subjectivity lies beyond the scope of Krugman’s models.

From this assumption, Obama’s first term has been a pretty big deal. Health reform, which had been impossible for decades, was passed. Tax changes will reduce the incomes of the top one percent of earners by 6 percent, and 9 percent for the top one-tenth of the top one percent. A reregulation of the financial industry inconceivable less than a decade ago is now being implemented. To Krugman’s list we could add the consolidation of acceptance for gay rights, the end of the war in Iraq, the successful avoidance of a complete collapse in 2008-2009.

The Great Depression from crash to false recovery and on to accelerating disaster

A brief review of the early stages of the Depression in the United States—from the Crash of 1929 to the false recovery of early 1930 to the inadequacies of President Hoover in the face of a resurgent, uncontrollable crisis—will provide the foundations for posts in coming weeks.

Everyone knows that the Great Depression started with the Black Tuesday stock market crash in New York, 1929 October 29. Yet only six months later, President Hoover gave a speech in which he said, “I am convinced we have passed the worst and with continued effort we shall rapidly recover.” Hoover was not alone in this judgment: most commentators at the time agreed that recovery was well underway in the spring of 1930. In reality, the country—and the world—was beginning what would prove to be over a decade of collapse. Ultimately the economic disaster of the Depression was overcome only through the far greater political and cultural disaster of World War II.

Neoliberalism is stealing our time!

The emerging critique of time pressure

Part 2 of 3 | Part 1

When Tim Kreider tries to distinguish between people who have time pressures forced on them and people who choose to put that stress on themselves, he has already lost the means to make sense of why his essay resonated with so many people. If it was just a matter of a few neurotic or self-important people who, against their own best interests, load themselves down with things to do, his critique wouldn’t have been relevant on such a broad scale. But Kreider himself writes, “Almost everyone I know is busy.” When a particular kind of behavior or experience becomes socially general, we can be sure it’s not because of personal idiosyncrasy on a mass scale—which is an oxymoron. Rather, something about society itself is causing that behavior to proliferate.

Today time stress is not simply widespread—it’s hegemonic. It is the normal way of being for everyone in mainstream society. Whether you’re the janitor working three jobs to stave off your family’s hunger, the entrepreneur constantly casting about for capital to fund your project, the college student going to two student group meetings tonight even though you have a 20-page paper due tomorrow, the bodega owner who minds the counter all day long and then does inventory after closing, the corporate lawyer cramming in final preparations to win impunity for the big client, the artist furiously networking at all the parties, the logistics worker forced to move more and more freight every day, the politician making the hundredth call today asking a rich person for money, the food prep worker always coping with short staff—that is, whether on the surface it seems that you have chosen your fate or had it forced upon you—we are all completely overwhelmed.

The rise and fall of national capital

The threat of a new nationalism (1)

In a previous post, I worried that left populists would prosecute a war against all of neoliberalism’s hegemonic social forms, neglecting the progressive side of neoliberalism and sabotaging the chance for real progress. This may have struck some readers as counterintuitive: those of us pursuing a vision of human equality, solidarity, and true freedom are not used to thinking about neoliberalism as progressive in any way. The rapacity of economic elites freed from all constraints; skyrocketing inequality reshaping work, politics, and culture so that increasingly we are all reconstituted as servants or dependents of the rich; whole populations rendered unsuitable for participation in mainstream life by the economic disintegration of their social ecology; accelerating environmental degradation; intensifying exploitation – these are our associations with neoliberalism.

But neoliberalism is (or was) a social totality: all the dominant forms of the last thirty years were components of neoliberalism as a coherent system. That includes progressive (but not unproblematic) impulses like gender equality, multiculturalism, and skepticism of authority. Because the crisis of neoliberalism has manifested itself primarily in the economic realm, and these forms of consciousness have no clear connection to the economy, they are for the moment secure (what comes after neoliberalism will, however, reshape them – for better or worse). Under much greater immediate threat is one other progressive side of neoliberalism: the erosion of the nation form.

A Kinder, Gentler, More "Revolution-friendly" Regime of Accumulation?

“The object of our efforts is not “inequality” or “the one percent”, but the social totality and the revival of its animating dynamic on a new, more humane basis.” Walker, "Redistribution is not enough" (italics mine)

“Walker's program, though, is precisely to try and shape those new conditions of accumulation, which does require an active politics that seeks to mobilize rather than interiorize the critique of capital. If I recall correctly, when Walker first proposed that the pressing question was not the overcoming of capitalism, but re-establishing it on a more "humane" basis it was on two grounds: 1) it is unclear that the dissolution of capital under current objective and subjective conditions would lead to a more humane society and not our worst dystopian nightmare 2) that capitalism always tends towards crisis and that when "humane capitalism" did reach its crisis point, conditions would be more amenable for a positive overcoming.” AB, comments on the above.

“I think we can all agree (please correct me if I'm wrong) that popular subjectivity is generated by social conditions, and that present-day social conditions make socialism wildly implausible to the overwhelming majority of the world's population.
On that assumption, a Marxian strategy would aim at achieving social conditions that made the overcoming of capital seem a compelling answer to the insoluble problems posed by modern society.” Walker, additional comments on the above.

The above three quotes provide a succinct presentation of what seems like the predominant perspective on this blog. The goal, “try and shape those new conditions of accumulation” on a more "humane" basis” which also creates “social conditions that made(sic) the overcoming of capital seem a compelling answer to the insoluble problems posed by modern society”, has some very loaded presuppositions which I hope to bring out and unpack.

• The crisis that began in the 1970's can be encapsulated in the concept of Neo-Liberalism as a kind of “regime of accumulation” or maybe better a “regime of the crisis of accumulation previously known as Fordism”.
• Neo-Liberalism is on its last legs and a new regime of accumulation will automatically come into being, and it will either be more or less humane.

The crisis of valorization that crystallized in the 1970's has not ended. For a new period of valorization to begin we would need to see the destruction of even more capital, including human capital, and a degree of immiseration that would enable new capital, with a higher organic composition and new labor processes, to be implemented on a global scale. There are several strong indicators (and that is all I am referring to these as) that a new cycle of accumulation has not begun. 

Weak points in the global economy

A dangerous new year, Part 2 of 3

If there is to be an intensification of the crisis in 2012, where is it likely to start? At the moment, implosion in the eurozone seems the most likely possibility. The EU is probably already in a recession, and growth will be further strangled by the increasingly tight grip of austerity as the major economies of Italy and Spain implement the same measures that have already destroyed the Greek economy. With mounting social unrest and the increasing implausibility of recovery in Italy and Spain, investors will once again run for the exits, forcing the ECB and Germany to finally decide whether they will bail out the southern countries or set about drawing and quartering the euro.

Capital’s global terrain

A dangerous new year, Part 1 of 3

Among commentators, 2011 opened with naive optimism for a strengthening recovery, but developments across the year left that faith in shambles. This was no surprise to those of us writing on this blog. Most mainstream economic analysis is based on an uncritical reading of short-term statistics or transhistorical pseudo-mathematical models that are actually a projection of prevailing economic common sense. Neither approach is adequate when the entire structure of economic thought and practice is in the process of disintegrating.

In contrast, the approach we have been developing situates the ongoing crisis of neoliberalism in a much deeper understanding of capitalism and in the irreducibly historical configurations it assumes in order to sustain accumulation – which condition the operations of the economy and the nature of social life alike. Without access to either the historical or social-cultural dimensions of the economy, policymakers and economists alike still do not grasp the fundamental issue: neoliberalism has collapsed and cannot be revived. A new kind of capitalism would be necessary to revive growth.

This leaves us in a very dangerous position. Since leaders in the US and Europe alike have been busy deepening the crisis rather than pursuing the steps necessary to resolve it, the mainstream neoliberal approach embodied by people like Obama and Merkel faces a precarious future. Any sudden intensification of the crisis could leave it discredited, opening the door to those alternatives that are best organized and capable of presenting the most compelling arguments. Where these forces lead us may not be pleasant at all.

Redistribution is not enough

If the crisis of neoliberalism is a result of the collapse of the system of accumulation that prevailed for the last thirty years, where exactly is the immediate problem? We’ve already isolated productive investment (expanding value), robust demand (realizing value), and efficient technology (circulating value) as the key determinants of growth, so which of these has frozen up?

Demand is the obvious candidate.

Allowing the Crisis: Europe's Struggle for Discipline

Walker's recent discussion of the European situation is astute and important, especially his account of sovereign debt as an essential part of the continental model of neoliberalism. However, I don't think that it's sufficient to explain why debt is an issue to understand why it's come to a crisis at this moment and led to the kinds of responses we've seen. What I want to emphasize, and what I gestured toward in relation to Scott Walker's putsch in Wisconsin, is that there's been a trading off between the economic crisis and a political crisis. The Eurozone crisis is less about stagnant growth and more about reconfiguring and strengthening institutions of geopolitical discipline. It's not that the problems/solutions are in the political sphere, but that the nature of the crisis is best understood as a political crisis around the economic one.

When I say "discipline" and "political" I am not referring to a class conspiracy, I'm referring to the fact that the crisis is now being played out as a struggle to control the institutions that delimit what is and isn't allowed as opposed to the economic sphere which delimits what is and isn't possible. To be clear I know how problematic that statement is, there are no absolute objective social constraints but under capitalism the economy functions as if it were objective and it's pretty hard to change that.

Consider three moments of the Eurozone crisis: the fact that Italy is running a principal surplus; the installment of technocratic governments in Italy and Greece; and the most recent proposed "deal" to save Europe. At the core of all these is the role that bond markets play in deciding what will be allowed and a strengthening of the relationship between those priorities and the state.

The crisis of neoliberalism in Europe (2)

Part 2 of 2 | Part 1

Despite the differences between the US and Europe in the average citizen’s experience of life, there have been some striking similarities in the development of deeper structures in the world’s two biggest economies since the advent of neoliberalism. This indicates that the crisis in Europe is not merely a result of “contamination” from the American credit crisis of 2008, as many Europeans initially argued. Yet neither is it a result of solely European problems of excessive spending or lagging competitiveness, as many Germans and Americans believe. It is, rather, a constituent part of the ongoing crisis of global neoliberalism.

The crisis of neoliberalism in Europe (1)

Part 1 of 2

For many years progressives in the US have looked longingly to the social democratic states of Europe, and with good reason. Europeans enjoy a quality of life significantly higher than Americans, with more leisure time, better healthcare, and massively less social violence. Europe has extended this quality of life far more equitably, and has done so while producing far less environmental destruction. In fact, if the Occupy movement’s demands were actually met, the kind of society we might evolve toward would be basically the kind that Europe already has.

So as the crisis in Europe increasingly appears headed toward global catastrophe, it’s worth realizing that not only is the brutal neoliberalism of the US mired in crisis, so too is the much more pleasant version in Europe. 

Soaring corporate profits presage disaster for corporations

This graph is nothing less than stunning. After-tax corporate profits as a share of the economy have now skyrocketed far above any level in the last fifty years.

Many people on the left view the profit surge thru the lens of class war — that is, the rich are prosecuting a war against everyone else, pillaging the wealth we all produce jointly and taking it for themselves alone. The wits among us will respond that it’s not really a war when one side does all the killing and the other side all the dying. Much of the outrage finally finding expression in Occupy Wall Street and the other occupations that have swept the country is based on this way of seeing things.

Source

As this chart shows quite graphically, such a formulation isn’t wrong. How else can we explain former Bank of America CEO John Thain’s notorious office renovation, which included two guest chairs for $87,000 and a $1400 trash can? Or the market for $6400 luxury toilets? Or the regularity of million-dollar+ birthday parties? All while millions of people, in the US alone, go without food or shelter or healthcare on a daily basis?

So this understanding captures one facet of our society: rich people are greedy bastards. But it misses a more fundamental dynamic of capitalist life, so it remains a one-sided understanding. This leaves us incapable of grasping the nature of the unfolding crisis of neoliberalism and understanding the tasks that will be necessary to overcome it.

Resurrection of the liberals?

Two polls that have come out in the last couple days give us a snapshot of where Americans stand on some of the issues we’ve been discussing here. They demonstrate the broad outlines of two very different popular constituencies: those that have been mobilized by the Tea Party and Republican Party operatives and funders organizing it, and those that are sympathetic to Occupy Wall Street and a broadly liberal-Keynesian response to the crisis. The Democratic Party has chosen not to mobilize the second (larger) group, and the efforts of unions and community groups have either been too limited or simply ineffective. This is the “silent majority” of our time. Could it play a historical role analogous to that of Nixon’s reactionary silent majority, providing the popular basis for a politics capable of overcoming the crisis?

The dysfunctions of neoliberalism: Productivity

In an earlier post, I put forward an outline of the underlying causes of the crisis of neoliberalism in the United States. I argued that, in order to maintain healthy profit levels, neoliberalism has required an increasing level of exploitation of the workforce, leaving wages stagnant despite increasing productivity. The outcome was a widening gap between the output of the economy and the purchasing power of consumers, a gap that was for many years bridged by rising levels of consumer and government debt. It was only a matter of time, however, before this transparently unsustainable fix to the insoluble contradictions of neoliberalism came crashing down, which it finally did with the collapse of the housing bubble in 2008. Subsequent attempts to revive the economy have failed to address any of the underlying dysfunctions of neoliberalism, and we now face either gradual or abrupt economic decline — stagnation or renewed crisis.

Curiously, an earlier configuration of capitalism — that of postwar Fordism — seems not to have suffered from this contradiction between maintaining profits and paying workers enough to purchase the output of the economy.

Summing it all up...

Response to “Apprehensions of the social”, part 4 of 4

By Chris Wright

We are after all confronted with a problem. The Enlightenment linked citizenship with humanity and such is the world we lived in. As a result, struggles to be treated as fully human tended to be struggles to be fully incorporated as citizens. (Workers, despite what the revolutionaries generally wanted, and in all but a few instances, and there usually under the least democratic conditions, generally wanted to extend their rights as human beings in this society.) And in turn the extension of citizenship to people without wealth increasingly created a pressure (exerted through social struggles and also at times as part of the rationalization of conditions of accumulation) to provide a minimum of life’s needs to every citizen, hence social welfare, public education, etc.

The workers’ movement, the civil rights movement, the women’s movement, etc. have all sought to further merge citizen and bourgeois, but the split itself cannot be overcome in this society, only through its revolutionary overcoming.

Demonize the banks

It has been my argument thus far that the illusion of continued global growth is primarily a product of the numerous speculative bubbles that were inflated as a result of the the main response to the crash of 2008, namely a massive injection of liquidity into the global economy. In the US and Europe this primarily took the form of no-strings bank bailouts. The US emerged from the bailouts seemingly unscathed economically (tho not politically) as the banks, having inflated new bubbles, were able to pay back the government; European countries like Iceland and Ireland, having shifted the crushing liabilities of the banks onto the much smaller base of their taxpayers, were economically devastated.

At the time there was an outburst of popular anger against the banks as the collapse of enormous real estate bubbles in the US, UK, Ireland, Spain, and elsewhere crushed millions of lenders while the bankers who had profited so ostentatiously by inflating the bubble were rescued without consequences. Some attempts were made to organize this discontent, one of which I was involved with, but these were notable principally for their failure to galvanize discontent. If any further evidence were needed, this showed conclusively that existing techniques of mobilizing a progressive constituency are hopelessly out of step with the times (discussion here and here).