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Friday, March 8, 2024

Peoples’ China: What Lies Ahead?

Whither China? was the name of a widely circulated pamphlet authored by the respected Anglo-Indian Marxist author, R. Palme Dutt. Writing in 1966, with The People’s Republic of China (PRC) in the throes of the “Cultural Revolution,” the pamphlet sought to shed light on the PRC’s tortured road from liberation in 1949 to a vast upheaval disrupting all aspects of Chinese society as well as foreign relations. To most people – across the entire political spectrum—developments within this Asian giant were a challenge to understand. To be sure, there were zealots outside of the PRC who hung on every word uttered by The Great Helmsman, Chairman Mao, and stood by every release explaining Chinese events in the People’s Daily, Red Flag and Peking Review. A few Communist Parties and many middle-class intellectuals embraced the Cultural Revolution as a rite of purification. Yet for most, as with Palme Dutt, the paramount question remained: Where is the PRC going? 

 Today, forty-five years later, the question remains open.



I wrote the above thirteen years ago. I contend that the question remains open today. Much has changed, however. In 2011, China-bashing was widespread especially where jobs had disappeared in manufacturing, but largely tempered by a Western business sector anxious to exploit low wages and the Chinese domestic market.


But almost simultaneously with the 2011 posting, the Obama administration made official its “pivot to Asia,” directed explicitly at Peoples’ China. As the Brookings Institute ‘diplomatically’ put it, “Washington is still very much focused on sustaining a constructive U.S.-China relationship, but it has now brought disparate elements together in a strategically integrated fashion that explicitly affirms and promises to sustain American leadership throughout Asia for the foreseeable future.” More explicitly, they intend “to establish a strong and credible American presence across Asia to both encourage constructive Chinese behavior and to provide confidence to other countries in the region that they need not yield to potential Chinese regional hegemony.”


To be sure, the officially declared Obama administration hostility to the PRC was neither a reaction to job loss nor to deindustrialization. The Administration showed no interest in recreating lost jobs or restoring the industrial cities in the Midwest. The real purpose is revealed in the simple phrase “Chinese regional hegemony.” Clearly, by 2011, ruling circles in the US had decided that the PRC was more than an economic cherry ready to be plucked. Instead, it had developed into an economic powerhouse, a true, even the true, competitor in global markets; indeed, it had become a robust threat to U.S. hegemony.


With the 2016 election of Donald Trump, the anti-PRC campaign continued, though conducted in an accelerated, cruder fashion, employing sanctions, threats, ultimatums, and even legal chicanery (the detention of one of Huawei’s executives, the daughter of the company’s founder).


The subsequent Biden administration pursued the same approach, adding another level of belligerence by stirring conflict in the South China Sea and reigniting the Taiwan issue. To anyone paying attention, successive administrations were intensifying aggression against the PRC, a process fueled by the eagerly compliant mainstream media.


It has become commonplace on the left to explain the growing hostility to the PRC by the U.S. and its NATO satellites as the instigation of a new Cold War, a revival of the anti-Communist crusades strengthening after World War II. In the past, I have suggested as much. But that would be grossly misleading.


The original Cold War was a struggle between capitalism and socialism. Whether Western critics will concede that the Soviet alternative was really socialism is irrelevant. It was a sharp and near-total alternative, and the West fought it as such. The Soviet Union did not organize its production to participate in global markets, it did not compete for global markets, nor did it threaten the profitability of capitalist enterprises through global competition. In short, the Soviet Union offered a potent option to Western capitalism, but not the threat of a rival for markets or profits. Moreover, Soviet foreign policy both condemned capitalism and explicitly sought to win other countries to socialist construction.


The same cannot be said for the Western antagonism to the PRC. The West courted Peoples’ China assiduously from the worst excesses of the Cultural Revolution through the entire Deng era. Western powers saw the PRC as either an ally against the Soviet Union, a source of cheap labor, an investment windfall, or a virgin market. But with China’s success in weathering the capitalist crisis of 2007-2009, the U.S. and its allies began to look at the PRC as a dangerous rival within the global system of capitalism. Chinese technologies more than rivaled the West’s; its share of global trade had grown dramatically; and its accumulation of capital and its export of capital were alarming to Western powers bent on pressing their own export of capital.


In contrast to the actual Cold War, even the most ardent defender of the “Chinese road to socialism” cannot today cite many instances of PRC foreign policy strongly advocating, assisting, or even vigorously defending the fight for socialism anywhere outside of China. Indeed, the basic tenet of PRC policy-- the noninterference in the affairs of others, regardless of their ideologies or policies-- has more in common with Adam Smith than Vladimir Lenin.


What the Soviet Union took as its internationalist mission-- support for those fighting capitalism-- is not to be found in the CPC’s foreign policy. Nothing demonstrates the differences more than the Soviet’s past solidarity and aid toward Cuba’s socialist construction and the contrasting PRC’s commercial and cultural relations and meager aid.


Accordingly, the PRC’s commercial relations with less developed countries can raise substantial issues. Recently, Ann Garrison, a highly respected solidarity activist, often focusing on imperialism in Africa, wrote a provocative article for Black Agenda Report. In her review of Cobalt Red, How the Blood of the Congo Powers our Lives-- an account of corporate mining and labor exploitation in the Democratic Republic of the Congo-- Garrison makes the following commentary guaranteed to raise the ire of devotees of the “Chinese road to socialism”:


[The author of Cobalt Red] explains battery technology and the global dominance of battery manufacture by South Korean, Japanese, and, most of all, Chinese industrial titans. Huge Chinese corporations so dominate Congolese cobalt mining, processing and battery manufacture that one has to ask why a communist government, however capitalist in fact, doesn’t at least somehow require more responsible sourcing of minerals processed and then advanced along the supply chain within its borders. I hope that Kara’s book has or will be translated into Chinese. (my emphasis)


Predictably, rejoinders came fast and furious. In both an interview and response posted on Black Agenda Report, Garrison's critics struggled to explain why PRC-based corporations were not contributing to the impoverishment and exploitation of Congolese workers. They cited Chinese investments in infrastructure and in modernization; they noted huge increases in productivity wrought by Chinese technology; they reminded Garrison of the corruption of the DRC government and local capitalists, and even blamed capitalism itself. How, one critic asked, could the PRC be singled out, when other (admittedly capitalist) countries were doing it as well?


Yet none even made a feeble attempt to explain how the extraction of one of the most sought-after minerals in modern industry could leave the people of the mineral-rich DRC with one of the lowest-- if not the lowest-- median incomes in the entire world. This striking fact points to the enormous rate of exploitation engaged in cobalt, copper, and other resource extraction in this poverty-stricken African country (for a Marxist angle on this question, see Charles Andrews’s article, cited by Garrison, but seemingly misunderstood by her).


In their zeal to defend the PRC’s Belt and Road initiative, these same defenders of the penetration of Chinese capital in poor countries often cite the frequent Chinese concept of “win-win” -- the idea that Chinese capital brings with it victory for both the capital supplier and those ‘benefitted’ by the capital. Theorists of the non-class “win-win” concept are never clear exactly who the beneficiaries are -- other capitalists, corrupt government officials, or the working class. Nevertheless, within the intensely competitive global capitalist system, this “win-win” is not sustainable and is contrary to both experience and the laws of capitalist development. Theoretically, it owes more to the thinking of David Ricardo than Karl Marx.


The PRC’s vexing relationship to capitalism has produced contradictions at home as well as globally. The ongoing collapse of the largely private construction/real-estate industry is one very large example. Once a major factor in PRC growth, overproduction of housing is now a substantial drag on economic advance. Monthly sales of new homes by private developers peaked late in 2020 at over 1.5 trillion yuan and fell to a little more than .25 trillion yuan at the beginning of 2024.


With the private real estate sector on the verge of bankruptcy and a huge number of residential properties unsold or unfinished, the PRC leadership is caught in a twenty-first-century version of the infamous scissors crisis that brought the Soviet NEP-- the experiment with capitalist development of the productive forces-- to a halt. If the government allows the private developers to fail, it will have harsh repercussions throughout the private sector, with banks, and foreign investors. If the government bails out the developers, it will remove the market consequences of capitalist excess and put the burden of sustaining capitalist failure on the backs of the Chinese people.


According to The Wall Street Journal, the government, led by the Chinese Communist Party (CCP), is considering placing “the state back in charge of the property market, part of a push to rein in the private sector.” The WSJ editors construe this as reviving “Socialist Ideas”-- a welcome thought, if true.


The article claims that in CCP General Secretary Xi’s view, “too much credit moved into property speculation, adding risks to the financial system, widening the gap between the haves and the have-nots, and diverting resources from what Xi considers to be the ‘real economy’-- sectors such as manufacturing and high-end technology.…”


Putting aside the question of how the private real estate sector was allowed to create an enormous bubble of unfinished and unsold homes, the move to return responsibility for housing to the public sector should be welcome, restoring price stability and planning, and eliminating speculation, overproduction, and economic disparities. 

Unfortunately, there will be uncertain consequences and difficulties for banks, investors, and real estate buyers who purchased under the private regimen.


It is worth noting that no Western capitalist country or Japan has or would address a real estate bubble by absorbing real estate into the public sector.


Under Xi’s leadership, the direction of the PRC’s ‘reforms’ may have shifted somewhat away from an infatuation with markets, private ownership, and foreign capital. The former “enrich yourselves” tolerance for wealth accumulation has been tempered by conscious efforts at raising the living standards of the poorest. Xi has made a priority of “targeted poverty alleviation,” with impressive success.


Western intellectuals harshly criticize the PRC’s ‘democracy’ because it rejects the multi-party, periodic election model long-favored in the West. These same intellectuals fetishize a form of democracy, regardless of whether that particular form earns the trust of those supposedly represented. The mere fact that a procedure purports to deliver democratic or representative results does not guarantee that it actually makes good on its promise.


If China-critics were truly concerned with democratic or popular outcomes, they would turn to measures or surveys of public confidence, satisfaction, or trust in government to judge the respective systems. On this count, the PRC is always found at or near the top in public trust (for example, here and here). Moreover, Chinese society shows high interpersonal or social trust, another measure of success in producing popular social cohesion by a government.


It’s telling that with the Western obsession with democracy, there is little interest in holding bourgeois democracy up to any relevant measure of its trust or popularity. When it is done, the U.S. fares very poorly, with a six-decade decline in public trust, according to Pew. As recently as February 28, the most recent Pew poll shows that even people who do respect “representative democracy” are critical of how it's working. Their answer to their skepticism may be found “if more women, people from poor backgrounds and young adults held elective office”, say respondents. Those elites who so glibly talk of “our democracy,” in contrast to those including the CCP that they call “authoritarians,” might pause to listen to the people of their own country.


The PRC has shocked Western critics with the breakneck pace of its adoption of non-emission energy production. In 2020, the Chinese anticipated generating 1200 gigawatts of solar and wind power by 2030. That goal and more will likely be reached by the end of 2024. Overall, the PRC expects to account for more new clean-energy capacity this year than the average growth in electricity demand over the last decade and a half. This means, of course, that emissions have likely peaked and will be receding in the years ahead-- an achievement well ahead of Western estimates and Western achievements, and a victory for the global environmental movement.


At the same time, the PRC’s successful competition in the solar-panel market makes it the target of global competitors, a brutal struggle that undermines the espoused “win-win” approach. Despite the benign tone of “win-win,” market competition is not bound by polite resignation, but aggression, conflict, and, as Lenin affirmed, ultimately war. That is the inescapable logic of capitalism. PRC engagement with the market cannot negate it.


Western leftists too often simplify the ‘Chinese Question’ by making it a parlor game revolving around whether China is or is not a socialist country, an error confusing a settled, accomplished state of affairs with a contested process.


As long as capitalism exists and holds seats of political power, the process of building socialism remains unstable and unfinished.


The 1936 Soviet constitution declared in Article One that the USSR was “a socialist state of workers and peasants,” a status that was under great duress over the subsequent following decades. The 1977 constitution stated even more boldly that the USSR was “a socialist state of the whole people…,” a state without classes and, by implication, class struggle. A decade and a half later, there was no USSR. Building socialism is a fragile process and one prone to reversals and defeats.


Thus, we should follow Palme Dutt’s sage advice and observe developments in the PRC with vigilance and a critical eye. If building socialism is a dynamic process, we should attend to its direction, rather than pronouncing its summary success or failure. The PRC is a complex creation with a complex-- often contradictory-- relationship with other countries as well as the socialist project. The cause of socialism is ill served by either ignoring or exaggerating both missteps and victories in the PRC’s revolutionary path.


Greg Godels
zzsblogml@gmail.com


Tuesday, February 20, 2024

Is There a Future for the Left?

…the Left narrative, no matter how accurate and intellectually powerful it may be, cannot expect to catch the imagination of the citizenry without including a vision for a real alternative future. Moreover, working-class institutions need to be reinstituted for the enhancement of class consciousness and authentic socialist parties need to be rediscovered for the Left narrative to become politically effective. Social movements are important, but their actions rarely have lasting effects. Only political parties can succeed in forging the Left narrative into the policy agenda and turn it into a programmatic plan for social change. Understandably enough, this is quite a tall order, but the Left needs to win once again the hearts and minds of the laboring classes. But it needs the necessary political agencies and cultural instruments to do so. It cannot accomplish it on intellectual grounds alone, especially with the politics of identity acting as a spearhead for social transformation... The Communist Manifesto would have remained just a mere political document if it wasn’t for the existence of radical political parties across the globe to embrace it as their guide and vision for the emancipation of the working class from the yoke of capital. The Left has a Great Story to Share About Alternatives to Capitalism-- But Sucks at Telling It, CJ Polychroniou (Common Dreams)

Shorn of the academic jargon, Polychroniou’s conclusion to his Common Dreams article gets a lot right about the failings of the US and European left and the road back to relevance.

It is true that today the left’s unstated action model is a plethora of focused, but single-issue social movements.
However, that model has enjoyed, at best, limited success in the US since single-issue activism won big gains in the anti-Vietnam War and Civil Rights era of the 1960s and 1970s. One of the movements effectively complemented a bloody defeat of US Cold War aggression and the other completed the formal constitutional promise of full-citizenship rights for Blacks, women, and other minorities.

But substantial, larger, associated issues remain unresolved. US imperialism continues unabated with ever-more casualties and injustices; the inequalities suffered by oppressed groups remain intact, with a token stratum of those groups allowed through the door of privilege, even to elite status, but with most lagging far behind.

Social movements have focused on specific policies (NAFTA, tax structure, minimum wage, healthcare, immigration reform), emerging trends (globalization, “neoliberalism”), gross inequality (Occupy), changes in governance (Arab spring, police reform), environmental degradation (fracking), or US foreign intervention among many other identifiable wrongs, all of which burn brightly in the beginning, then unfortunately just as quickly fade, as protest confronts the glacial, fractured electoral system.

It is also true that most of the left operates and acts without any overarching program of reform or revolution.
The majority of US leftists, for example, enthusiastically, reluctantly, or by default rely upon the Democratic Party and electoral politics to drive broad, systemic change. They may hope that their issues will be embraced by the party’s policy makers, they may struggle with the party’s entrenched leaders for a suitable program, or they may simply defer to the Democrats out of desperation. DSA, a self-described ‘democratic’ socialist party, is very far from cutting the umbilical cord with the Democrats. While the Green Party expends impressive effort to achieve ballot status, it brings a hodge-podge of candidates to the ballot, seldom aligned with any kind of common program or larger goal. And the small Marxist parties have failed to impact the labor movement or pressure reform movements from the left, as last did the US Communist Party of Gus Hall’s era when anti-Communist repression was far more intense than today and the word “socialism” was then a term of abuse.

But it is not just a program that is missing, but a vision as well.


‘Anti-capitalism’ is not a vision, but a defiance; it expresses hostility and resistance, but not rejection. It gives us no alternative to capitalism. Most of the US left counts itself as anti-capitalist, but one can only guess at what that might mean.

Some are more specific: they are anti-neoliberal capitalism, anti-disaster capitalism, anti-racial capitalism, or perhaps anti-monopoly capitalism. But, by implication, are they for some other kind of capitalism? Do they pine for the era before neoliberalism? Do they imagine capitalism without racism? Do they wish to turn the clock back to the stage before monopoly capitalism? An imagined time when capitalism did not spawn disasters?

These are not political visions, they’re mere fantasies!

The dominant alternative vision to capitalism until the collapse of real-existing-socialism in the late-twentieth century was Marxist socialism. From the rise of mass socialist parties in the final decades of the nineteenth century, the vision sketched by Marx and his followers dominated the hopes of ‘anti-capitalist’ working people. Whatever else the early Marxist militants meant by socialism, they agreed that socialism should end the exploitation of workers by capitalists; they envisioned ending capitalism once and for all and not merely managing it or buffering its worse aspects.

With the birth of real-existing-socialism, creating, shaping, and developing the vision proved to be a lengthy, often messy process, as though serious onlookers would expect it to be otherwise. Previously rare or unheard-of levels of economic, cultural, and human growth were achieved. Enormous sacrifices were made. And internal and external enemies were met.

Some leaders rose to meet challenges, some failed to do so. Mistakes were plentiful, as were acts of unparalleled heroism. The costs of change and of development were enormous, which any thoughtful observer would concede in a life-and-death struggle against capitalism. Ultimately, those living in the lands where socialism was won, no matter how briefly or for how long, must weigh the sacrifices against the gains made, and discount the judgment of smug, privileged foreign critics.

Ironically, Polychroniou, who correctly steers the left away from aimlessly drifting in the political maelstrom of left-wing faddism and unmoored posturing, paints a picture of real-existing-socialism so without merit or achievement as to turn anyone away from the socialist alternative.

Polychroniou, like his sometime collaborator, Noam Chomsky, often shows an impressive critical eye toward the failings of the capitalist system and of imperialism, but follows unfailingly the conventional, stereotypic Cold War demonization of real-existing-socialism; he cannot even credit twentieth-century socialism with being ‘real,’ calling it “actually-existing-socialism.” Like Chomsky, Polychroniou mistrusts the mainstream media at every turn, recognizing its obedience to the ruling class, but accepts everything it sells about the ruling class’s arch-enemy: the real-existing-socialism of the last century.

As a result, Polychroniou’s often perceptive comments are diminished, lost before disdain for a project that he believes has proven, in reality, to be an unmitigated disaster. According to Polychroniou, “actually existing socialism” was “undemocratic,” undermining its “social, cultural, and economic achievements…” “Workers had no say in economic decisions… [T]he rulers possessed no wealth and had no private property of their own but made all of the decisions for the rest of society. The USSR was at best a ‘deformed workers’ state’.” [my emphasis]

Polychroniou sees this ‘deformation’ as a huge impediment to the achievement of socialism. Consequently, he is surprised that its disappearance did not bring on a flowering-- a revival-- of interest and commitment to socialism. “Instead of feeling liberated by the collapse of ‘actually existing socialism’ the western Left felt a loss of identity and entered a long period of intellectual confusion and political paralysis.” In other words, the Western Left suffered malaise, lost its bearings, and floundered at a time when Polychroniou thought his “real” socialism was within reach.

Surely this bizarre psychologistic explanation of the failure of a Left unburdened by the legacy of Communism is as unsatisfying as Polychroniou’s comic strip characterization of over 70 years of real-existing-socialism. As he concedes, the so-called Western Left found its opportunity to fulfill its promise of a different alternative. But the promise collapsed before it got started, degenerating into scholastic quarrels over truth, identity, and forms of governance.

Still Polychroniou recognizes the urgent need for a Left political party -- a class-based organization of those committed to a common road to social change-- to serve as the vehicle for a program and a vision. In his words, “[The] Left needs to win once again the hearts and minds of the laboring classes.” In his judgment, systemic change must be realized through the political party. However, he surely knows that the idea that radical political ideas can be realized through centrist parties has long been discredited, though far too many radical organizers continue to pursue that dead end in the US and Europe.

It must be acknowledged that the popular idea that a Left political party can be constituted by addition, simply bringing all the various social movements together, is equally flawed, relying on the magical thinking that ideological proximity or contiguity is the same thing as the organic unity necessary for party-building.

Similarly, the seductive idea that a political party can be constructed around the mere fact that it is new and different from the failed, bankrupt center-left parties of Europe and the US has been proven wrong by the corruption or decline of Europe’s new wave. From the German Greens to Spain’s Podemos, Italy’s Five Star, or Greece's SYRIZA, the promise of a shiny new toy filling the political vacuum left by a dying center-left is decidedly broken.

Without a distinctive vision, without a concrete program, with only a pledge for more “democracy,” all of the new wave disappointed its idealistic followers, leaving many disgusted and disenchanted with political action.

To his credit Polychroniou is critical of this trend. In a September, 2023 article (Endgame for Syriza, The Unbearable Lightness of the Greek Left) in Common Dreams, he chronicles the rise and fall of Greece’s SYRIZA party, a new-wave, self-styled radical party that actually grasped the brass ring of political power in 2015, but soon capitulated to capital without a fight. Since SYRIZA’s fall from its former heights, Polychroniou ponders its future.

“The answer to that mystery,” he says, “was revealed during the leadership election that was held just this past Sunday [September 24, 2023] when party members elected a gay, liberal, former Goldman Sachs trader, shipping investor, and political neophyte Stefanos Kasselakis to head the once radical left-wing Syriza party.” The once “radical” SYRIZA has devolved into a nondescript liberal party of the center/center right (as has the German Greens).

But he concludes his insightful essay on SYRIZA’s rapid decline with this bizarre note: “Under Kasselakis, Syriza will cease having affinity to leftist politics in any form or shape, which means that Greece will now be left with a Leninist-Stalinist Communist Party as the only large-scale organized political force fighting for the interest of the working class.” [my emphasis]

Is the idea of the KKE-- the Greek Marxist-Leninist party 
“fighting for the interest of the working class” which he dismissively refers--  so distasteful to Polychroniou as to rule it out-of-hand? Would Greek working people be better off if the KKE were not fighting for their interests? Is the fourth largest political party in Greece declared “untouchable” by Polychroniou? Is he apologizing because Greece actually has a committed fighter for the interests of its working class? 

Polychroniou’s dismissal comes with no logic and no evidence. It is simply the deeply entrenched, unexamined anti-Communism that he shares with so many middle-strata, academic and intellectual leftists of his and past generations. Despite KKE’s long history of contesting capitalism and imperialism, its unwavering, heroic resistance to fascism, and its persistent promotion of a Greek society free of exploitation, Polychroniou and others of his ilk can find no circumstances in which they could even conditionally support “the only large-scale organized political force fighting for the interest of the working class” in Greece.

Surely, this is the epitome of blind, foolish, and counterproductive anti-Communism.


It is ironic that the KKE pointed out-- long before 2015 and Polychroniou-- that SYRIZA would not and could not answer the challenges facing Greece in the throes of crisis. At the time, intellectuals like Polychroniou, dismissed KKE’s assessment and charged it with sectarianism for refusing to join in coalition with the now admittedly discredited SYRIZA.

*****
It is, however, a good thing that Polychroniou and others are reexamining the tactics and strategies of the European and US Left in the twenty-first century. It is difficult to reconcile the occurrence of economic catastrophes unseen since the Great Depression, numerous tragic and bloody wars of aggression and domination, and social and political crises with the lack of significant social change or revolution over the last quarter-century. The title of Vincent Bevins’s recent book, If We Burn: The Mass Protest Decade and the Missing Revolution, captures the dilemma well. Arguably more people have been motivated to protest existing conditions than ever before, but no revolutionary change has ensued. Why?

The question, or one very much like it, is taken up by Anton Jäger and Arthur Borriello in their recent book, The Populist Moment: The Left After the Great Recession. Both books are the subject of a critical review in the 8 February 2024 issue of The London Review of Books (A Circular Motion, James Butler).

Certainly, the failure of the Left and the current numerous fractures on the Left deserve serious retrospection and assessment. The way forward could well come from such study. But it will falter if poisoned from the onset with mindless anti-Communism. It will be prone to the same limiting calls to individualism, to identity, and the vacuous, vague, but always heralded cry for more “democracy.” A challenge to capitalism will require more than virtue-signaling.

Surely, the lessons of a century of social upheaval, confrontation, and revolution animated by working-class organizations cannot be cavalierly dismissed. The role of Communists and Communist Parties was decisive in colossal social change in the twentieth century. Might they be decisive again?

Greg Godels
zzsblogml@gmail.com









Friday, January 26, 2024

Oil, Natural Gas, and Capitalism

The great powers-- the leading players in the imperialist system-- have always required a source for the energy to drive their economic engines. They needed energy resources to build and empower their military might; they needed energy to grow their national economies and power their vessels of trade and transportation. Indeed, their socio-economic systems would have collapsed without ample and available energy sources.

At the dawn of the capitalist industrial era, that source came mainly from coal. Coal powered the machines that grew the productivity of labor to great new heights. It is reasonable to think that only those countries with easy access to coal could then become great capitalist powers.

Beginning at the turn of the last century, oil-- an abundant, efficient, and easily stored and transported energy source-- became essential for the exercise of economic and military might. As modes of transportation became dependent upon petroleum products, an intense rivalry was stoked for access to oil, often found in more remote areas of the world, far removed from the great urban centers of the great capitalist powers.

At the same time, the great capitalist powers accelerated their drive to dominate the entire world. Lenin and others saw this as a higher stage of capitalist development impelled by the dominance of monopoly capitalism, finance capital, and capital export.

Access and control of energy resources played an extremely large role in motivating this development, leading to conflict and colonization over the areas offering abundant oil production.

It could be said that “oil imperialism” was a critical factor in the course of the Second World War: Japan -- a country without adequate oil reserves-- needed to secure resources to pursue its imperialist mission; likewise, Germany’s eastward turn was prodded by its thirst for Soviet oil.

Constituting the leading imperialist power after WWII, the US had its own adequate petroleum resources, but sought to guarantee that global oil supplies would remain available to its clients in the crusade against Communism.

After the end of the Cold War, new technologies unleashed huge reservoirs of oil and natural gas in the US. A once-stable international market was consequently disrupted, allowing US producers to reshape, even dominate, the global distribution of oil and natural gas.

But in the decades to follow the end of the Cold War, those capitalist countries that were the most trusted anti-Communist allies were relying on long-established, existing sources of energy or had turned to convenient, adjacent, transit modes from the energy giant, the now-capitalist Russia.

Europe, for example, had grown increasingly reliant on Soviet oil and gas even before European socialism’s fall. And OPEC’s distribution network and quasi-planned marketing maintained a persistent global stability of price and availability.

From where would the US, undergoing a technological revolution with fracking, take its oil and gas bonanza?

I began to discuss the US shift toward what I called “US oil and gas imperialism” seven years ago (here, here, here, here and here). I wrote in July of 2019:

US oil and gas imperialism is another feature of the new economic nationalism. With US oil production matching or exceeding every other global producer, and with natural gas extraction growing dramatically, the economic nationalists foresee the US now competing successfully for markets. The conventional explanation of the US aggression against oil-producing states must now be retired. The US is no longer solely obsessed with commanding and dominating existing oil producers-- US intervention is not simply about the oil in the way it has been in the past. That is, it is not simply acquiring oil resources that motivates US aggression, but commanding oil markets as well.

Thus, the US is also out to wreck competing oil and gas producers by sanctions, disruptions, and destruction. The US corporations want the markets in order to peddle their own energy resources. The long trail of wrecked, dysfunctional, and economically strangled global oil producers attests to this new motivation and serves US energy corporations well.

I have been writing often of this shift of US imperial design for over two years. Nothing demonstrates the intent of the new energy imperialism as does the Department of Energy’s recent renaming of US natural gas as “Freedom Gas” and the product as “molecules of freedom.” This silly branding is part of the campaign to win Europe and other gas-dependent markets from Russia and Iran/Qatar. Even though US liquified “freedom gas” is 20% more expensive than Russian gas, the Trump administration bullied Germany’s Angela Merkel to agree to two new LNG terminals in Germany. Her admission that LNG from the US would not break even for at least a decade demonstrates the aggressive face of the new US energy imperialism.

US gas producers have stoked anti-Russia sentiment to draw Poland and the Baltic states into their LNG market nexus. US LNG annual exports to Portugal and Spain grew from a tiny base to nearly 20 and 30 billion cubic feet, respectively, between 2016 and 2017.

And US crude oil exports soared after the crisis in the Straits of Hormuz. US oil shipping nearly doubled in the aftermath of the mysterious “attacks” in the Persian Gulf. President Trump underscored the attractiveness of foregoing the Straits and buying from the US. Rather than taking the “dangerous journey,” Japan and PRChina should be reminded that “the US has just become (by far) the largest producer of energy in the world.” (my emphasis)

Writing in 2019, I was anticipating geopolitical events geared to shifting the natural gas market dramatically in favor of the US. I foresaw the “anti-Russia” push as targeting the natural gas market in Europe and “crisis” in the Middle East as disrupting shipments from traditional Middle East suppliers. 

Hostility and conflict would be the thumb-on-the-scales to offset the higher price (lower risk) of US liquified natural gas.

Unlike the Cold War era, where the US postured as a protective shield for safe, durable, and inexpensive energy channels, the post-Cold War US policy places US immediate economic interests above the supposed alliance obligations; without consultation, the US tossed aside its role among its allies as the guarantor of peace and security and is taking on the role of international energy huckster.

In 2022, the US secured a major victory in oil and gas imperialism with the war in Ukraine. As a result of a concerted campaign to destabilize Ukraine, separate it from Russia, and coax it into NATO’s anti-Putin alliance, the US drew Russia into a long, bloody war. The war proved to be a veritable gift for the US and its energy industry. Anti-Russia hysteria provoked the US’s European allies into breaking economic ties with Russia, including the big prize--cutting off Russia’s supplies of natural gas. Seduced by Cold War-like rhetoric and fear-mongering, European countries outdid each other with belligerence, culminating in refusing cheap Russian energy resources. To seal this self-defeating move on the part of US “allies,” the US organized the destruction of crucial Russian pipelines. Left with no alternative to Russian energy, Europe turned to their US “partner.”

US exports of oil to Europe more than doubled between 2021 and today. Likewise, disrupting natural gas distribution has paid off for the US with liquid natural gas (LNG) exports nearly doubling from 2018 to 2022. Quoting The Wall Street Journal:

Russia’s invasion of Ukraine kicked U.S. [LNG] exports into overdrive. Since March 2022, U.S. developers have signed 57 supply agreements representing about 73 million metric tons of LNG annually… more than four times the number of contracts they signed between 2020 and 2021.

Many of these contracts run for 20 years and underpin the construction of terminals that have yet to be built. LNG exports are expected to more than double [again!] from current levels by the end of this decade…

Thus, thanks to the war in Ukraine, US allies had the privilege of incurring the costs of liquefaction, shipping, and building LNG terminals to show their solidarity with the US-instigated war.

Foolishly, European leaders rushed to show their support for the war, even at tremendous cost to their own economies.

Likewise, the unfolding war in the Middle East plays into the hands of the US oil and natural gas imperialists. As the WSJ concedes:

In the longer term, the Red Sea situation could bring more business for U.S. LNG shippers, which are building out export capacity at Gulf Coast facilities and are vying for big contracts with big buyers in Europe, analysts said.

The percentage of LNG tankers set to pass through the Suez Canal has dropped to its lowest point in at least a decade.

But the LNG will be coming from the West, thanks to the beneficence of the US government anticipating the changing energy market!

Paul Hannon and William Boston put it well: “For the second time in three years, a conflict in Europe’s neighborhood is threatening to weaken a struggling economy, while a more robust U.S. is watching from a safe distance.”

It is indeed an odd ally that takes advantage of the sacrifices that it imposes upon its friends to make. While US capitalism has enjoyed strong growth, thanks to two wars in other lands, its European friends have endured inflation and stagnation. 

Germany, led by Social Democrats and Greens, has met the US-led call to war with enthusiasm, militarism, and aggression unseen since the Second World War. Germany has materially supported Ukraine second only to the US and matched the US’s shuttering of economic relations. Where the US has shown healthy growth for 2023, Germany has fallen into recession, its industrial sector racked by high energy costs and supply shortages-- a steep price to pay for following US leadership. “‘The threat of deindustrialization is real,’ said Max Jankowsky, chief executive of GL Giesserei Lossnitz, a 175- year-old foundry in the eastern German state of Saxony.” German Chancellor Olaf Scholz’s popular satisfaction is the lowest for a chancellor since 1997. Germany-- the leading power in the European Union, an industrial giant, the world’s fourth largest economy-- has been brought to its knees by US oil and gas imperialism.

The people, and especially the left, need a constant reminder of the material interests behind global imperialism and the mechanism that powers it. 

Imperialism is not a consequence of bad leadership from Trump, Biden, Johnson, or Modi or their ilk; it is not the product of neoliberalism or any other ideology; it is not the result of a lust for power. In short, imperialism is not a matter of moral choice or competence. Instead, it is an imperative of capitalism in its modern form. It is an expression of the rivalries generated by capitalist competition for markets, resources, and most tellingly, profits. When that competition reaches its greatest intensity, war ensues.

Some would like to believe that we can break the link between capitalism, exploitation, inequality, poverty, environmental degradation, and war. They aver that a benign capitalism, regulated by enlightened governments, can escape the imperialist system. History shows no such eventuality. People are awakening to the impossibility of “fixing the system.”

The left overlooks this at its peril.

Greg Godels
zzsblogml@gmail.com








Monday, January 15, 2024

The Willful Destruction of a People

The US corporate media has maintained a near unanimous support for the Israeli destruction of Gaza-- the home of 2.2 million Palestinians. While pundits engage in parlor games over what degree of violence is “justified” by the Hamas attack upon Israel, while public intellectuals fall in line with the gutless unconditional support of Israeli punitive actions, tens of thousands of Palestinian people-- largely men, women, and children going about their day-to-day lives-- have been killed, maimed, wounded, or terrorized. 

Corruption, racism, and cowardice come together to produce a rare near-total US ruling-class consensus behind the brutal action of the ultra-right, ultra-nationalist, and racist Israeli government. 

The enforcement of this consensus is unprecedented and a truly appalling sight to behold. 

The highly publicized clash over even an embarrassingly tepid pushback by elite administrators at elite universities over free speech-- a normally sacrosanct intellectual fallback-- underscores the complete, unconditional freedom-of-action that Israel enjoys with the rich and powerful in the US. 

While the machinations of donors and administrators at Harvard, Penn, and MIT should be of little more than entertainment value for most of us, the raw, public exercise of the power of wealth in shaping academic institutions should cause many to recoil. Those who naively believed in the independence and integrity of academia should be chastened accordingly. 

Black Harvard President Gay would learn that neither her own elite background nor the thin armor of the faddish liberal DEI mutation of anti-racism would protect her from the vulgar bullying of wild-eyed Zionist billionaires and rightwing witch hunters.

Christopher Rufo, puffed up with his own role in bringing down Harvard’s Gay, concedes that he couldn’t have done it without the collaboration of the center-left that accepted any excuse to enforce support for Israel. 

Despite the crude editorial endorsement of and overwhelming official enthusiasm for the Israeli slaughter of Palestinians, a different message has gotten through to the US populace. Whether it is the heart-rending pictures of death and destruction, the cracks in the carefully hedged and vetted news stories, or the alternative media, a bold, determined movement against Israel’s vicious assault on Gaza has emerged to challenge the ruling-class monolith. Risking economic reprisals, future status, and public shaming, hundreds of thousands-- overwhelmingly youth-- have stood and marched for life and a future for Gaza and Palestine. 

It is truly a remarkable moment of crass opportunism, slavish conformity, and viciousness confronted by high principle, self-sacrifice, and courage. It is this kind of moment that forces people to examine how their words and self-styled image coheres with reality. 

The facts are effective in awakening people to the brutal fate of Palestinians as a people. Because the Israeli government is so blatantly indifferent to international outrage, The Wall Street Journal is embarrassed to report the truth-on-the-ground in Gaza. Whether reluctantly or not, a recent front-page news story-- Gaza’s Destruction Stands Out In Modern History (softened in the online edition to: The Ruined Landscape of Gaza After Nearly Three Months of Bombing) -- describes an almost unimaginable living hell. Its lead is worth quoting in full:

The war in the Gaza Strip is generating destruction comparable in scale to the most devastating urban warfare in the modern record.

By mid-December, Israel had dropped 29,000 bombs, munitions and shells on the strip. Nearly 70% of Gaza’s 439,000 homes and about half of its buildings have been damaged or destroyed. The bombing has damaged Byzantine churches and ancient mosques, factories and apartment buildings, shopping malls and luxury hotels, theaters and schools. Much of the water, electrical, communications and healthcare infrastructure that made Gaza function is beyond repair. 


Most of the strip’s 36 hospitals are shut down, and only eight are accepting patients. Citrus trees, olive groves and greenhouses have been obliterated. More than two-thirds of its schools are damaged.

While most media mention the 22,000 or more deaths or the over 80,000 total Palestinian casualties, they dutifully treat the facts as allegations and with vastly more than warranted skepticism. Nonetheless, the numbers have shocked millions around the world.

But the WSJ article goes further, offering comfortable, secure readers a taste of what life is like for those not physically harmed by Israeli bombs:

In the south, where more than a million displaced residents have fled, Gazans sleep in the street and burn garbage to cook. Some 85% of the strip’s 2.2 million people have fled their homes and are confined by Israeli evacuation orders to less than one-third of the strip, according to the United Nations…


According to analysis of satellite data by remote-sensing experts at the City University of New York and Oregon State University, as many as 80% of the buildings in northern Gaza, where the bombing has been most severe, are damaged or destroyed, a higher percentage than in Dresden [the site of murderous firebombing in WWII].

The WSJ presents a set of facts and expert observations that are nothing if not damning of the Israeli tactics:

・Robert Pape, political scientist at the University of Chicago: “What you are seeing in Gaza is in the top 25% of the most intense punishment campaigns in history.”

・” Some 85% of the strip’s 2.2 million people have fled their homes and are confined by Israeli evacuation orders to less than one-third of the strip, according to the United Nations.”

・” He Yin, an assistant professor of geography at Kent State University in Ohio, estimated that 20% of Gaza’s agricultural land has been damaged or destroyed. Winter wheat that should be sprouting around now isn’t visible, he said, suggesting it wasn’t planted.”

・” A World Bank analysis concluded that by Dec. 12, the war had damaged or destroyed 77% of health facilities, 72% of municipal services such as parks, courts and libraries, 68% of telecommunications infrastructure, and 76% of commercial sites, including the almost complete destruction of the industrial zone in the north. More than half of all roads, the World Bank found, have been damaged or destroyed. Some 342 schools have been damaged, according to the U.N., including 70 of its own schools.”

・Where the US dropped 3,678 munitions on the entire nation of Iraq in seven years, Israel has dropped 29,000 on tiny Gaza in a little over two months.

・On Gaza city: “‘It’s not a livable city anymore,’ said Eyal Weizman, an Israeli-British architect who studies Israel’s approach to the built environment in the Palestinian territories. Any reconstruction, he said, will require ‘a whole system of underground infrastructure, because when you attack the subsoil, everything that runs through the ground—the water, the gas, the sewage—is torn.’”

・” The level of damage in Gaza is almost double what it was during a 2014 conflict, which lasted 50 days, with five times as many completely destroyed buildings, according to the Shelter Cluster. In the current conflict, as of mid-December, more than 800,000 people had no home left to return to, the World Bank found.” 

To those seduced by a gutless media and a bought-and-sold political establishment, this picture constructed by one of the US’s most conservative papers should bring Israel’s crimes against Gaza into sharper relief; It should be painful to even imagine living under such conditions; it should remove the Gaza question from the realm of political debate to the basic issue of human dignity and survival.

Is there any humane answer beyond: Cease Fire Now!?

Greg Godels

zzsblogml@gmail.com



Thursday, December 21, 2023

Socialism, Democracy, and the Division of Labor

Professor Richard Wolff is a prominent, influential intellectual, with a big following on the left. He is an erudite, clear, and passionate speaker and writer. He is well-regarded for his exposition of Marx’s ideas-- a “go to” when the media tolerates a conversation critical of capitalism, one even advocating “socialism.”


For all of that, he does not represent Marx’s thought well, nor does he offer a viable, serious alternative to capitalism.


It is not a question of Wolff’s scholarship or his commitment to justice. It is, instead, a deep-seated, unwavering hostility to the real existing socialism of the twentieth century and the century’s leading Marxist exponents, the Communists. Of course, Wolff is not alone in this prejudice-- and it is a prejudice and not a reasoned conclusion. Since the intense US Red Scare of the 1950s, since the demonization of everything even vaguely linked to Soviet power or Communist and Workers’ Parties, this prejudice has contaminated social, cultural, and political life in this country. Every radical upsurge was forced to or willingly submitted to ABC: Anything But Communism. 


In its place, US leftists embraced a kind of radical democracy: the view that bringing the furniture of formal democracy-- “one person, one vote, full participation, and majority rule,” quoting Wolff-- into every institution, every practice, every activity-- would in due time sweep away the exploitation, the inequalities, the indignities of capitalism. Radical, comprehensive democratic practices would be necessary and substantially sufficient to trigger the march to socialism.


There is evidence that Marx and Engels once also believed that universal suffrage alone (as advocated by the Chartist movement in England) would be an adequate measure on the road to overcoming capitalism. Their practical experience in the 1848 revolutions and the lessons of the Paris Commune dispelled that illusion. They concluded that a revolutionary defeat of the existing order and the replacement of that order with a democracy in the service of the working class would be necessary for moving beyond capitalism. The furniture of formal democracy was sometimes useful, but often unreliable elements in that endeavor. Marx and Engels did not presume that bourgeois democracy would advance those interests or protect them.


But with anti-Communism established as the national religion of the US, generations of US leftists, from the sixties’ SDS to Occupy and DSA, were hostile to Soviet socialism and repelled by Communist ideology. As a result, a “rethought” Marxism became the nourishment for young activists and the sustenance of veteran Cold War radicals. The expansion of certain democratic practices served and serves as the lodestar of these movements.


Professor Wolff rose to prominence in this milieu and it is reflected in his thought. 


A recent brief and commendably clear statement of Wolff’s views on the presumed shortcomings of real, existing twentieth-century socialism appears in the article, Socialism’s Self Criticism and Real Democracy. Originally appearing in City Watch, the piece has achieved wide currency: Economy for All, CounterPunch, LA Progressive, NewsClick, Countercurrents, Eurasia Review, and many others.


Because he takes it as a settled truth that the socialist countries lacked “real democracy,” Wolff poses the following challenge:


A certain irony of history made the absence of real democracy in socialist countries an ongoing target of many socialists in those countries…


Because this time it is many socialists who make the encounter, they ask why modern socialism, a social movement critical of capitalism’s lack of real democracy, would itself merit a parallel criticism. Why have socialist experiments to date produced a self-criticism focused on their inability to create and maintain authentic democratic systems??


Wolff searches for an explanation for this presumed lack of democracy in “socialist experiments.” The search takes him to a common feature of capitalism and socialism (and he sometimes seems to suggest in previous social formations): “The answer lies in the employer-employee relationship.”


The employer-employee relation is indeed often a feature of capitalist and socialist enterprises. Soviet enterprises had managers who presumably hired individuals at state-owned enterprises. No doubt, it could have reflected a hierarchical relationship; it could have reflected a relation of dominance; and, further, it could have reflected the exploitation relationship. But it need not do so simply because of the existence of an employer/employee relationship. That can easily be shown with a simple, mundane hypothetical example:


Faced with a plumbing catastrophe, Jones engages the Smith Plumbing Company. Jones hires Smith’s firm to fix the kitchen sink. Jones employs Smith and company; Smith sends a worker, an employee (but not an employee of Jones), to make the repair. Jones is the employer and Smith’s company is his/her employee. Yet there is no hierarchy, no dominance, nor any exploitation by Jones.


Further, Smith has five employees, who Smith lords over, dominates, and exploits. Here, the employer-employee relationship generates entirely different, negative socially-significant outcomes. 


We have one innocuous, one exploitative employer/employee relationship. 


Why does the employer/employee distinction fail to reveal anything relevant regarding real democracy or the struggle for socialism?


The character of employment, the nominal expression for the employer/employee relationship, is historically determined by the division of labor. Under capitalism, its character is tied to the exploitation relationship. That is, given that ownership of enterprises resides with private individuals or groups, owners establish employer/employee relations as hierarchical, dominating, and exploitative to secure surplus value. Capitalists engage this particular division of labor to secure their ends.


But, presumably, under socialism, with social ownership of enterprises, a non-antagonistic, non-exploitative employer/employee relationship could be established strictly based on the division of labor. The “employer”/manager could be determined by credentials, test-results, past experience, past performance, seniority, or a host of other relevant, merit-based terms. 


Formal democratic procedure is, thus, no unique, magic elixir. In these circumstances, Wolff’s democratic procedure-- election of “employer” -- might well clash with merit and/or efficiency.


That is surely why Marx and Engels placed exploitation and the relations between capitalists (owners of enterprises) and the proletariat (the workers) at the center of their analysis. They attend little specifically to the employer/employee relationship, except when it is shorthand for this exploitation nexus. 


Moreover, Marx and Engels (and many of their successors) believed that a revolution was the most democratic expression of the popular will-- what Wolff might want to call “real democracy.” While they would undoubtedly find setbacks to democracy in the historical trajectory of twentieth-century socialism, they would also have seen the removal of the power of the capitalist class and the end of labor exploitation as marking the most broadly democratic advance since the French revolution. 


Where Wolff sees a surfeit of democracy (“socialism’s self-criticism”), others see a harbinger of a far more democratic future. Wolff says correctly: “Democracy is incompatible with class-divided economic systems.” I would add that democracy is only possible with the elimination of class-divided economic systems. 


Fixated on democratic form, Professor Wolff is led away from the democratic content of Marxist socialism and its realization in real, existing socialism. Further, he fixates on a particular democratic form associated with the capitalist republic that may or may not be the best mechanism for exercising the will or interests of the working class. Every revolutionary generation is faced with a different set of challenges. Nation-states typically suffer or gain from uneven development, as Lenin always stressed. The advance of industrialization, the degree of poverty, the levels of education, external and internal opposition, complex social strata, national conflict, and a host of other factors make the choice of democratic form a test for the first and later generations of revolutionaries.


Western Marxists, often quick to measure all by the democratic forms established by the bourgeois revolutions of past centuries, just as often fail to grasp these complexities. They are willing to forgo pressing the socialist project for the “purity” of so-called “real democracy.”


In Wolff’s case, he chooses to secure this purity by basing his anti-capitalism around the idea of worker-owned cooperatives. To be sure, they could meet the cherished standards of “one person, one vote, full participation, and majority rule” in ways that the ultimate class conflict-- the overthrow of capitalism-- might not. It is possible that cooperatives can and do establish and survive on the margins of the capitalist system, but only a dreamer believes that these worker utopias will ever seriously challenge the behemoth of monopoly capitalism. 


Wolff is not alone in retailing a polite version of Marxism rather than the radical ideas that the working class so desperately needs.


Greg Godels

zzsblogml@gmail.com