Social Economics

Blows Against Empire—2021 In Memoriam

By Steve Lalla

2021 was marked, from start to finish, as a year dominated by the pandemic and its attendant dramas, including vaccination, variants, and lockdowns. When the prior year had come to a close, journalists and writers had described 2020 as the “plague year” or the “lost year.” Although 2020 was defined by the onset of the pandemic and over two million deaths attributed to COVID-19, this was nothing compared to the all-encompassing, inescapable pall that COVID cast over the year 2021.

The pandemic has dealt a particularly heavy blow to residents of the world’s greatest imperialist power, where over 880,000 US citizens have perished. The country’s failure to care for the well being of its people — particularly when juxtaposed with the success of China, where about 875,000 fewer deaths have been attributed to the novel coronavirus — laid bare the futility of capitalism and individualism when faced with crisis. The parallels with global climate catastrophe are impossible to ignore.

From January 1, 2021, until the final day of the year, powerful blows reigned down on the global imperial superstructure captained by the US, leading in tow its Western European vassal states and junior partners including Canada, Australia, Saudi Arabia, Brazil, Colombia, India and the UK.

January 6: If any one event marks the end of the unipolar world led by the US since the fall of the Soviet Union, it is the cringeworthy storming of the US Capitol, incited by Donald Trump and carried out by farcical supporters united by their belief that the US presidential election was a fraud.

“Trump did more for the liberation of humanity from Western imperialism, because of his crudeness, than any other US leader in history,” commented political analyst Laith Marouf — and that was before the embarrassment of the failed uprising exposed the fragility of the US capitalist regime.

Contrary to the mainstream media narrative, over half of those arrested for involvement in the January 6 insurrection were “business owners, CEOs from white-collar occupations, doctors, lawyers, and architects.”

January 19: On his very last day in office, disgraced President Trump labels China’s treatment of Xinjiang’s Uighur community as a “genocide.” The laughable claim is promptly echoed by mainstream/imperialist media. A month later, Canada’s parliament voted to second the motion, cementing its status as fawning minion to the US war machine. These claims were particularly ironic as Canada, like the US, is a nation founded on actual genocide.

January 28: The GameStop scandal went viral and many learned firsthand that capitalism was a giant Ponzi scheme designed to plunder their savings.

March 7: A death blow was dealt to Brazil’s Bolsonaro regime, one of the US’ largest and most compliant vassals, as former President Lula was acquitted of all charges related to the Lava Jato (Operation Car Wash) lawfare scheme which had imprisoned him for 580 days. The failure of the maneuver exposed the similar proceedings against his successor, Dilma Rousseff, as a fraud, and later in the year the White House admitted the nefarious role it played in using paralegal means — also known as lawfare — to overthrow Brazil’s progressive governments and replace them with the neo-fascist Bolsonaro, whose popularity continued to bottom out through the course of the year.

March 13: The 99% rejoiced as fugitive former Bolivian dictatress Jeanine Áñez was discovered hiding under a bed and arrested by the democratically elected government of Luis Arce, committed to restoring order in Bolivia and serving justice to Áñez’s US-backed coup regime.

April 28: The gigantic paro nacional [national strike] broke out across US client state Colombia. A neoliberal austerity package passed by the Duque regime set off the mobilizations. The package would have seen Colombia bowing to IMF pressure with a swath of proposed “reforms” that increased taxes on the most vulnerable, accelerated privatization of healthcare, increased student tuition fees, and allowed for a 10-year wage freeze. The national strike was met with brutal force, dozens were killed and thousands arrested.

The immensity of the revolt led to working-class victories including “the withdrawal of the tax package, the sinking of the privatizing health project, the extension of the zero tuition to students of stratum 3, the unanimous international condemnation against the insane wave of police-paramilitary repression of the regime, the forced resignation of the ministers of finance and foreign affairs — representatives of the imperialist bourgeoisie — and a parliamentary trial of the minister of war,” as detailed by the World Federation of Trade Unions.

May 14: Amid the genocidal war on Palestine waged by the apartheid state, Hamas missiles pierced the so-called Iron Dome defense system. The vaunted missile defense system, funded by billions of dollars from the US and the apartheid state, proved to be an overpriced lemon, like so many other US weapons of war, as Gaza rose to the defense of Palestinians in the West Bank, on the other side of their divided nation. The militant solidarity shown by Gaza, and its ensuing sacrifice when civilian dwellings were subsequently levelled by the apartheid state, will be remembered as a turning point in the long journey towards a free Palestine.

May 26: President Bashar al-Assad was re-elected by the Syrian people, receiving 78% of the vote. “Supporters of the president took to the streets in the hundreds of thousands as the results were publicized, celebrating what they saw as a repudiation of violence and a step forward for the beleaguered nation,” wrote Mnar Adley for MintPress News. Celebrations in Damascus put the lie to claims by the empire ruled from DC regarding Assad’s supposed lack of popular support.

May 29: A chilling reminder that Canada was founded on the genocide of the Indigenous inhabitants of the land was unearthed in Kamloops, BC. A mass grave of 215 children, whose deaths were undocumented, was found at an Indigenous children’s concentration camp — euphemistically called “residential school” — after years of denial that such sites existed.

“We hear from residential school survivors who tell you of these things happening, of mass graves existing, and everybody always denies that those stories are true,” said Arlen Dumas, grand chief of Manitoba’s Assembly of Chiefs. “Well, here’s one example… there will be more.”

Sure enough, mass graves continued to be unearthed throughout 2021. The last Canadian “residential school” closed in 1996, and between 6,000 to 50,000 children are estimated to have been murdered in the concentration camps for Indigenous children.

June 6: Pedro Castillo, presidential candidate of Peru’s Marxist Peru Libre party, rose from virtual obscurity to defeat the right-wing candidate Keiko Fujimori, daughter of disgraced former President Alberto Fujimori, convicted in 2008 of crimes against humanity. Castillo named staunch left-wing revolutionary Héctor Béjar as his foreign minister, who re-established diplomatic relations with Venezuela (made official on October 16), bringing an end to the Canada-led “regime”-change operation The Lima Group. Béjar referred to The Lima Group as “the most disastrous thing” Peru had ever done in the field of foreign relations.

June 24: The Bicentennial Congress of the Peoples of the World convened in Caracas, Venezuela, to celebrate the 200-year anniversary of the Battle of Carabobo, the decisive victory by Venezuelan troops, led by Simón Bolívar, over Spanish imperialism. Delegates from 123 countries attended the Congress, lauded as an “anti-imperialist and internationalist space for dialogue with social movements.”

June 24: Yet another powerful symbol of the crumbling foundations of the empire ruled from DC, a building collapse in Miami, Florida, left 98 people dead. Only four survived the sudden disintegration of the 12-story beachfront condominium, one of the deadliest residential building collapses in modern history. Rescue operations went on for two weeks. With each passing day, monotonous news items covered the rescue operations, effectively delaying the announcement of the death toll until few were paying attention anymore.

June 28: Russia and China announced the renewal of their 20-year long mutual cooperation pact. “The two sides agreed to continue maintaining close high-level exchanges, strengthening vaccine cooperation, expanding bilateral trade, and expanding cooperation in low-carbon energy, digital economy, agriculture and other fields and promote the alignment of the Belt and Road Initiative with the Eurasian Economic Union,” reported Xinhua. The midsummer event was another milestone in the death march of the unipolar world.

July 1: The Communist Party of China celebrated 100 years since its founding. During that span, the CPC has lifted 850,000 people out of extreme poverty, according to the DC-based World Bank.

July 6: Honduras’ highest court found Roberto David Castillo guilty of the 2016 murder of celebrated land defender and activist Berta Cáceres. Castillo was a graduate of the West Point US Military Academy in New York state. COPINH, the organization founded by Cáceres, hailed the verdict as a “people’s victory for justice for Berta; a step towards breaking the pact of impunity.” In addition, COPINH hoped that the conviction would open the door to “bringing the masterminds behind the crime to justice,” members of Honduras’ family of billionaires, the Atalas.

July 6: The dictator Jovenel Moïse, who dissolved parliament and ruled Ayiti (Haiti) by decree beyond the term of his mandate, was assassinated by a team of Colombian paramilitaries contracted by a Florida-based firm. Ayiti had been racked by waves of mass protests and general strikes almost continually since 2018, when Venezuela was forced to suspend the Petrocaribe program due to US economic sanctions on Venezuela’s national petroleum company PDVSA. Petrocaribe had provided cheap fuel to Ayiti in exchange for deferred payment. These deferred funds, earmarked for social programs, were instead pocketed by Moïse’s administration. Demonstrators demanded his resignation and a proper election in which Fanmi Lavalas could fully participate. The Moïse regime was propped up by the de facto ruling cartel, the Core Group including the US, Brazil, and Canada.

August 13: The Mexico Talks, a dialogue between Venezuela’s government and the opposition, began in Mexico City. To its great ire, the US was excluded from the process. Both parties signed a memorandum demanding an end to the economic blockade imposed on Venezuela by the empire ruled from DC.

August 15: With the US hastening its withdrawal from Afghanistan, the Taliban took the capital Kabul and overthrew the US puppet government. Videos filmed at Kabul airport the next day went viral, capturing the hysteria of the fleeing US forces and their supporters. At least five people died in the panic, while about 200,000 Afghans were directly killed by the failed invasion and 20-year long occupation, led by the empire ruled from DC.

September 16: Working in tandem, the resistance forces of Iran, Syria, and Hezbollah break the imperial siege on Lebanon, delivering much-needed Iranian fuel. The courageous operation exposed the permeable nature of illegal US and EU “sanctions,” which had triggered shortages, fuel scarcity, inflation, and a deadly economic crisis in Lebanon.

September 16: Thumbing his nose at the empire, Mexico’s President Andrés Manuel López Obrador invited his Cuban counterpart, Miguel Díaz-Canel, as guest of honor for Mexico’s independence day celebrations. AMLO used the opportunity to reiterate his calls for an end to the 61-year-long US economic blockade of Cuba.

November 7: Daniel Ortega, leader of the Sandinista revolution that defeated the US-backed Somoza dictatorship and overcame the subsequent counter-revolutionary assault of the US-funded and trained Contra paramilitaries, was re-elected as president of Nicaragua. The result came as no surprise because Ortega has presided over a broadening of social programs and a strong Nicaraguan economy since his return to power in 2007. “The Nicaraguan people believe in their government and their electoral system,” wrote electoral monitor Dan Kovalik. “And one of the things they believe in is the government’s right, and indeed duty, to protect the country and its sovereignty from outside intervention, and in particular the incessant intervention by the US, which has been interfering in Nicaragua — often through local quislings — in quite destructive ways for over a century.”

In 2021 the rabid mainstream media assault on Nicaragua’s democracy accused Ortega of jailing his opponents, after a court order prevented Cristiana Chamorro from running due to illegal foreign campaign contributions. Chamorro’s NGO received over $6 million from the US Agency for International Development (USAID) since 2015, more than half of which went to influencing the 2021 elections.

November 15: Heavily publicized in Western media, this day was supposed to see a great popular uprising in Cuba, a supposed resurgence of the protests that had shaken the nation in early July, when Cuba suffered its worst COVID-19 problems.

“The nationwide ‘Marches for Change’ was scheduled for November 15,” wrote Ted Snider. “The Biden administration endorsed the demonstrations. So did Congress: on November 3, the House of Representatives voted 382–40 — and you thought they couldn’t agree on anything — for a resolution declaring ‘strong solidarity’ with ‘courageous Cuban men, women, and youth taking to the streets in cities and towns across the country.’ What the media and the government doesn’t want to tell you is that, once again, it didn’t happen.” The non-event was dubbed #15Nada.

November 21: Venezuela’s violent opposition returned to the political fray for the country’s regional and municipal “mega”-elections. These were carried out in relative peace, without any credible allegations of fraud, by Venezuela’s internationally acclaimed electoral system. The results were a sweeping victory for the ruling United Socialist Party of Venezuela (PSUV). The PSUV captured 19 of 23 state governorships (including the capital district), and 213 of 325 mayoralties.

November 29: Perhaps the most inspiring and surprising of the year’s significant electoral victories, in Honduras Xiomara Castro unseated US-backed narco-dictator President Juan Orlando Hernández. Castro is representative of the rising anti-imperialist political forces in Latin America. Her husband, Manuel Zelaya, was overthrown by the Honduran military — with Hillary Clinton’s blessing — in 2009, after he promised to convoke a Constituent Assembly to write a new Constitution, raise the minimum wage, and join the ALBA-TCP regional alliance founded by Fidel Castro and Hugo Chávez in 2004.

December 9: Nicaragua resumed diplomatic relations with the People’s Republic of China, recognizing the One China principle and the sovereignty of China in Taiwan. Nicaragua thus ceased to consider Taiwan as a country and severed all contact and official relationship with Taipei. This expands the scope of China’s Belt and Road Initiative in Latin America and at the same time diminishes US imperial authority in the region.

2021 was marked by a series of embarrassments and defeats for the empire ruled from DC, the decisive end of US hegemony, and the birth of a new multipolar world, which promises to continue asserting itself in the face of informational and military assault throughout 2022 and beyond.

This item was originally published on January 23, 2021 by Orinoco Tribune

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Populate the Internationalist Movement: An Anti-imperialist Critique of Malthus and Neo-Malthusianism

[Image: Ints Vikmanis / shutterstock]

By Michael Thomas Kelly

The 2018 documentary Germans in Namibia opens with an interview in which a wealthy, German-descended landowner blames the economic plight of poor Namibians on overpopulation and unchecked breeding. Malthusian “overpopulation” remains a powerful and frequently used shorthand to deflect from the ongoing legacies of genocide, colonialism, and neo-colonialism. In this paper, I argue that Malthus’ thesis on natural scarcity was primarily a normative argument against social welfare and economic equality. Malthus was wrong, then, in an ethical and political sense in that he provides an ideological framework for population control policies that imperialism and racial capitalism pursue by design – and broadly use to cause harm and maintain systems of oppression. I begin by briefly summarizing Malthus’ original thesis and clarifying how Malthus made a political, not predictive, argument against social equality. I show how neo-Malthusianism works as an ideological justification for how capitalism and imperialism generate surplus populations and maintain inequality – highlighting racial, gender, and spatial components. Drawing from neo-Malthusianism’s critics, I present a different theory of population across geographical space based on anti-imperialism and anti-capitalism.

In his 1798 Essay on Population, Thomas Malthus put forward a vision of natural scarcity, inevitable class division, and checks on exponential rises in population. Malthus asserted that finite resources and unchecked population growth through procreation – “fixed laws of our nature” (Malthus 1798: 5) – inevitably come into conflict. Barnet and Morse (1963: 52) summarize: “The limits of nature constitute scarcity. The dynamic tendency of population to press continually to the borders of subsistence is the driving force.” The conflict between natural resource scarcity and natural population growth, Malthus argued, must necessarily fall on the poorest members of society: “no possible form of society could prevent the almost constant action of misery upon a great part of mankind, if in a state of inequality, and upon all, if all were equal” (Malthus 1798, 11). Malthus also identified “positive checks” on population growth: “Hunger and famine, infanticide and premature death, war and disease” (Kallis 2019, 14).

Critics of Malthus and his original writings explain how he was consciously making a political intervention against revolutionary or redistributive demands. According to Kallis (2019), Malthus had issued “a rebuttal of revolutionary aspirations” (9) and argued that “revolutionaries would cause more harm than good. Malthus wanted to see the abolition of the Poor Laws—a proto-welfare system that provided free food in the parishes” (12). Malthus’s thesis “was not meant as a prediction” (Kallis 2019: 22) but an argument “for the impossibility of a classless society” (23). Similarly, Harvey (1974: 258) characterizes Malthus’ essay “as a political tract against the utopian socialist-anarchism of Godwin and Condorcet and as an antidote to the hopes for social progress aroused by the French Revolution.” Aside from any logical consistency or merit, the essay’s “class character” (Harvey 1974: 259) is what reveals the political intention and function behind the essay and the ideologies it set forth.

More recent proponents of neo-Malthusianism use Malthus’ ideological groundwork to defend private property, uneven development, and structural racism in the context of climate change. For example, Malthus’ Essay presaged arguments that bourgeois economists later made rejecting “redistribution and welfare in the name of free markets” (Kallis 2019: 19). According to Harvey (1974: 262), “Malthus was, in principle, a defender of private property… Private property arrangements inevitably mean an uneven distribution of income, wealth, and the means of production in society.” Both Kallis (2019) and Ojeda, Sasser, and Lunstrum (2020) highlight the popularity – and danger – of natural limits arguments in modern environmental circles. Kallis (2019: 44-45) describes how some 1970s environmental movements “inherited the logic of Malthus,” basing arguments on the fear and supposed impossibility of infinite growth on a finite planet. More recently, Ojeda, Sasser, and Lunstrum (2020: 319) explain: “Influential Western leaders and trend-setters have… argued that climate change can be mitigated by addressing overpopulation.” Highlighting “sharp, uneven geographies,” arguments for “natural scarcity… misdiagnose the causes of climate change, often placing blame on marginalized populations” while doing “little to address the root of the problem” (Ojeda, Sasser, and Lunstrum 2020, 317-318).

Capitalism has a specific use for population – within structurally determined class and social relations – quite apart from the natural limits Malthus invoked to justify inequality. Unlike Malthus, whose theory of population was rooted in human nature and natural scarcity, Marx posited a “law of population peculiar to the capitalist mode of production” (Harvey 1974, 268). Marx ([1867] 1993: 782-793) argued that an industrial reserve army of labor, or relative surplus population, is necessary under capitalism to discipline the employed working-class and absorb the expansions or contractions of the capitalist market. Relative surplus population is inherent to capitalism and produces poverty and guaranteed unemployment by design: “Marx does not talk about a population problem but a poverty and human exploitation problem. He replaces Malthus’ concept of overpopulation by the concept of a relative surplus population” (Harvey 1974, 269). Ojeda, Sasser, and Lunstrum (2020: 324-325) highlight a contemporary example in which the expansion of palm oil plantations in Colombia had uneven spatial and gendered effects on local populations: “the entry of mitigation projects in the region has resulted in more gender inequality, more dependency of women towards their male partners and their circumscription to domestic spaces” (325). In this case, “natural limits” and “overpopulation” offer no accurate or worthwhile explanation. Instead, this concrete example is better understood as one in which a new plantation market absorbed male wage workers, caused gendered harm in a Global South nation, and showed the limits of climate mitigation in a system in which private property and ownership structures remain intact.

Imperialism and neo-colonialism similarly drive predictable, uneven effects on populations globally, which population control policies and discourses serve to obscure. Harvey (1974: 274) explains: “The overpopulation argument is easily used as a part of an elaborate apologetic through which class, ethnic, or (neo-) colonial repression may be justified.” For example, “several years after Hurricane Katrina, former Louisiana Representative John LaBruzzo… proposed paying people who received state welfare assistance $1,000 to undergo surgical sterilization” (Ojeda, Sasser, and Lunstrum 2020, 320). Also, the US justifies its military presence in Africa through tropes of “overly-reproductive, resource-degrading women” and “the perceived urgency of preemptively addressing climate conflict” (Ojeda, Sasser, and Lunstrum 2020, 321). In both cases, the political function of Malthusianism – that overpopulation will collide with natural resource scarcity – obscures the actual underlying power dynamics. The increased intensity of storms and drought in desert regions are attributable to industrial capital’s emissions of CO2 and play out unevenly across existing racial segregation in the US and neo-colonial underdevelopment in Africa (Rodney [1972] 2018). Global capitalism drives climate apartheid and racialized, gendered poverty, which Malthusians wrongly ascribe to unchecked population and natural limits.

Critiques of Malthus and neo-Malthusianism offer pathways for a different theory of population rooted in principles of anti-imperialism and internationalism. Kallis (2019: 98) locates the following example in terms of limits, but perhaps it is better understood as a struggle over Indigenous sovereignty: “it is the… marginalized who draw limits to stop others from encroaching on their space; think of a community that prevents a multinational corporation from logging its sacred forest.” Relatedly, Ojeda, Sasser, and Lunstrum (2020: 324) explain the gendered aspects of “‘planetary care work’ (Rocheleau 2015), as local communities are largely made responsible for containing and reversing the effects of climate change.” In both cases, ongoing, Indigenous-led efforts to restore relations of stewardship with the world’s land and biodiversity – and overturn existing private property relations and US policy abroad – could better serve oppressed populations. Citing Marx, and critiquing Malthus’ separation of humans and nature, Harvey (1974: 267) suggests that humans can achieve a “unity with nature.” In fact, the “emergence of an abstract nature” in some environmentalist rhetoric implies “the invisibilization of alternative productions of nature and myriad forms of resistance… including localized and feminized experiences of climate change from impoverished and racialized communities in the global south” (Ojeda, Sasser, and Lunstrum 2020, 325). Moving past “human” versus “nature” permits us the necessary nuances, contradictions, and local differences within both non-universal categories of human and nature. Lastly, Kallis (2019: 98) again posits the following demands in terms of limits – minimum wage increase, progressive taxation, working-day reduction – but these are also demands to reduce capital’s essential drive to accumulate, seek profit, and expand. Furthermore, these demands can be strengthened and better contextualized when one considers the working-class’ global dimensions and how relative surplus populations are created and used across various geographical, international, and gendered scales.

Debates over theories of population have important implications for future research and political organizing. Environmental movements can recognize Malthusian arguments as part of a political project against redistribution and revolutionary socialism. Scholars and activists can also grasp how guaranteed unemployment, population control, and ecological damage are attributable to structural, changeable systems of racial capitalism, imperialism, and white supremacy – not natural laws. On that principle, organizers can work to build an internationalist movement that understands population, production, and scarcity as socially produced categories that can be placed under forms of collective ownership.

 

References

Barnett, H.J. and Morse, C. (1963). Scarcity and growth: The economics of natural resource availability. Washington, D.C.: Resources for the Future, 51-71.

Harvey, D. (1974). Population, resources, and the ideology of science. Economic Geography, 50(3), 256-277.

Kallis, G. (2019). Limits: Why Malthus was wrong and why environmentalists should care. Stanford, C.A.: Stanford University Press.

Malthus, T. (1798). An essay on the principle of population. London: J. Johnson, in St. Paul’s Church-Yard.

Marx, K. ([1867] 1993). Capitalism Volume 1. London: Penguin.

Ojeda, D., Sasser, J., and Lunstrum, E. (2020). Malthus’s specter and the Anthropocene. Gender Place and Culture, 27(3), 316-332.

Redfish Media. (2018). Germans in Namibia. Redfish Media. Retrieved from https://www.youtube.com/watch?v=0U2g5K8JaJk

Rodney, W. ([1972] 2018). How Europe Underdeveloped Africa. London, U.K.: Verso.

The Base-Superstructure: A Model for Analysis and Action

By Derek Ford

Although Marx himself only mentioned the “base” and “superstructure” in (by my count) two of his works, the base-superstructure “problem” remains a source of serious contention for Marxists, our sympathizers, and our critics. Despite its outsized role in Marxist debates, the model can, when contextualized and understood in its nuances, be quite useful for analyzing capitalist society and organizing for socialism [1].

Marx explicitly introduces the distinction between the base and superstructure in the preface to his 1859 A Contribution to the Critique of Political Economy. In the preface, Marx builds on his previous work with Engels, The German Ideology, writing:

“In the social production of their existence, humans 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” [2].

The base of society—which is also translated as “infrastructure”—includes the relations of production and the productive forces. Productive forces name labor-power, instruments or tools used by workers, and the materials workers transform in the production process. The relations of production entail the social organization of production and reproduction, or how the re/production of life is structured. It’s important to emphasize that the base isn’t just the forces of production but production relations, which are not only economic but social.

The superstructure comprises the political-legal system of the state and consciousness—or ideology—in general, which manifests in culture and art, religion and spirituality, ethics and philosophy, etc. The superstructure emerges from the totality of the relations of production. Political activity and intellectual processes and products are conditioned by the mode of production (the relations and forces of production). And as we’ll see below, elements of the superstructure in turn impact the base.

According to Engels, he and Marx laid so much emphasis on the importance of the base because of their historical and material context, because they were responding to those who denied the importance of production. In an 1890 letter to the German socialist Joseph Bloch in which Engels clarifies their model, he notes that “we had to emphasize the main principle vis-à-vis our adversaries, who denied it” [3]. Earlier in the letter, he writes that “the ultimately determining factor in history is the production and reproduction of real life,” and that “if somebody twists this into saying that the economic factor is the only determining one, he transforms that proposition into a meaningless, abstract, absurd phrase” [4].

Engels infers that Bloch’s questions come from his study of secondary literature only, and he asks Bloch to read the primary sources, referring him in particular to Marx’s 1852 book, The Eighteenth Brumaire of Louis Bonaparte, perhaps the only other place Marx mentioned the superstructure explicitly (although he alludes to it elsewhere). In this earlier work, Marx formulates the superstructure like this:

“Upon the different forms of property, upon the social conditions of existence, rises an entire superstructure of distinct and peculiarly formed sentiments, illusions, modes of thought, and views of life. The entire class creates and forms them out of its material foundations and out of the corresponding relations” [5].

Classes, that is, collectives defined by their location in the totality of social production, produce ways of feeling, thinking, and understanding life.

The context and relations of the base and superstructure

That the model isn’t a mechanical formula—in which the base unidirectionally produces the superstructure—is evident when we consider the context in which it appears.

A Contribution to the Critique of Political Economy was the product of Marx’s ongoing work on Capital. What were some of Marx’s main critiques of political economy? First, it took appearances for granted and didn’t ask about the underlying structures that generated such appearances. Second, it viewed political economy and the world as a series of independent objects and subjects, when they were interconnected and interrelated parts of a unity or totality that was in constant motion. Third, and as a result of the first two critiques, it didn’t take a historical-materialist approach to understanding these transformations, projecting present categories back into the past and the future, so that capitalism as a social system was figured as eternal.

Those who take the base as independent and static thus side with Marx’s bourgeois adversaries. It’s not an economistic formula in which changes in the economy automatically and predictably lead to changes in society. The base-superstructure is a “spatial metaphor” that serves descriptive purposes [6]. While it can lend itself to a reading whereby what happens below determines what happens on top, if read as a Marxist model it’s helpful for understanding and analyzing the dynamics of the class struggle.

This is why Marx used the superstructure in The Eighteenth Brumaire of Louis Bonaparte: to “distinguish still more the phrases and fancies of parties from their real organism and their real interests, their conception of themselves from their reality” [7]. He goes on to partially locate the failure of the 1848 Paris revolution and the success of the 1851 coup of Louis-Napoléon Bonaparte in the emergence of social-democracy, which

“is epitomized in the fact that democratic-republican institutions are demanded as a means, not of doing away with two extremes, capital and wage labor, but of weakening their antagonism and transforming it into harmony. However different the means proposed for the attainment of this end may be, however much it may be trimmed with more or less revolutionary notions, the content remains the same” [8].

The social-democratic forces, while using revolutionary phrasings, didn’t seek to overthrow the existing relations of production but to manage them in a more equitable manner through the capitalist political and legal superstructure.

Marxism and the base-superstructure model

Given the above, it’s clear that the model is dialectical. As a historical-materialist, Marx understood that the base and superstructure of society change over time and are context-dependent. Neither the base nor superstructure, nor the relationship between the two, are unified, static, or ahistorical.

The relations of production in U.S. capitalism are neither unified nor even strictly economic in the sense that they’re structured and divided by race, nationality, gender, dis/ability, sexuality, and other hierarchies. Engels affirms that the relations of production are social (and racial) in an 1894 letter to the German anarchist Walther Borgius. Responding to Borgius’ request for clarification on the role of the base, Engels acknowledges that “economic conditions… ultimately determine historical development. But race itself is an economic factor” [9]. Clearly race is part of the base, yet it’s obviously superstructural as well, in that 1) race is a historically constructed and evolving category and 2) it’s maintained and ordered not just by economic forces and relations but by elements like culture, the media, and the legal system.

In fact, Engels soon after says that “political, juridical, philosophical, religious, literary, artistic, etc., development is based on economic development. But all these react upon one another and also upon the economic base” [10]. The boundaries between the base and superstructure are not static or fixed, and superstructural elements in society work to reproduce elements of the base.

Capitalism requires, for example, the legal system of the state to enforce private property rights. In this instance, it’s crucial to the reproduction of the base. Because the capitalist legal system arises from capitalist relations of production, changes in the legal system might alter the existing relations of production, but they can’t fundamentally overthrow them, for that requires the creation of a new social and economic system.

Although Marx didn’t spend much time studying the political economy of cultural activity, another example of the dynamism of the model appears in his argument that artists and other cultural workers are productive agents. He distinguishes those who produce surplus value from those who don’t, although both can be forms of wage-labor (for example, working for the state doesn’t produce surplus value but is a form of labor-power sold to another). Marx conceptualizes intellectual work, dancing, writing, singing, and other “artistic” or “cultural” actions, when performed through the commodity of labor power, as forms of wage labor [11]. Such forms of work can thus be viewed through the prism of the base or superstructure.

All of this highlights that the base and superstructure is a metaphor and model for Marxists, a way to analyze and approach society and social transformation rather than an easy explanation.

Smart phones: An example

To get a better handle on the relationship between material production and ideas or mental conceptions, think about the proliferation of “smart phones.” When, in order to e-mail, we used to have to sit at a computer and connect via cables to the internet, we had a different idea of time and communication than we do now that many of us can e-mail wherever and whenever. A 2021 Pew Research Poll found that 85 percent of people overall (and 73 percent of people earning less than $30,000 annually) in the U.S. have smart phones, so this isn’t a minor phenomenon [12].

The technology makes it possible for your boss to require you to respond to e-mails (e.g., to work) at night. It blurs the distinction between work and life, let alone between work and leisure. How many of us respond to work e-mails on vacation? The smart phone makes it possible for me to ask you a minor question or a series of them throughout the day, rather than wait and type one single e-mail. We begin to think of time differently, and we begin to relate to each other differently. When I was a student, for example, it was normal for teachers to respond to e-mails within a few days. Now the expectation is that teachers respond within hours.

Even our feelings and bodies change. Have you ever felt your phone vibrate in your pocket only to realize it didn’t? This is called “phantom vibration syndrome.” A 2011 study of 290 undergraduate students found that around “89% of the sample had experienced phantom vibrations, and 40% experienced these vibrations at least once a week” [13]. Yet the smart phone didn’t arise spontaneously, it wasn’t dropped from the heavens. Workers conceived of it, designed it, produced it, and made it all possible. It’s a productive material force that changes our forms of consciousness, ways of feeling, senses of time, and more. Yet the reason smart phones were produced and subsequently distributed throughout society is because they increase the productivity of labor. The same object that, when used for work, enters into the base, when used for non-work purposes, enters into the superstructure.

Utilizing the model for the revolutionary movement

The socialist revolution can’t come without changing the base of society, as it entails transforming private ownership into collective ownership, abolishing capitalist relations and constructing socialist relations. But the superstructure reacts on the base and informs it. There’s a dynamic interplay between the two, and the question is not so much what is located in which part of the model as what is the most strategically significant for advancing the class struggle in a particular setting? The abolition of wage labor—the socialist revolution—has to focus on the superstructure and the base and understand their composition, contradictions, and potentials.

In the chapter on the working day in Capital, Marx describes the decades-long struggle for a “normal” working day. He quotes horrific details about the abuses of industrial capitalism on workers from factory inspectors. At the end of the chapter he declares that “the labourers must put their heads together, and, as a class, compel the passing of a law, an all-powerful social barrier that shall prevent the very workers from selling, by voluntary contract with capital, themselves and their families into slavery and death.” In other words, the tactical objective is to establish “a legally limited working-day” [14].

This is a clarion call for a change in the superstructure, for a legal reform. It’s a significant fight to reduce the working day, not only to protect workers from the abuses of bosses but also to give workers more time to organize. At the same time, it impacts the base of society as well, because given a limited working day, capital has to pursue other avenues to accumulate extra surplus value. In fact, it’s with these limitations that capital turns to the production of relative surplus value, which is when capitalism as a mode of production properly comes into being [15].

Another example is Marx’s critique of Alfred Darimon, a follower of Proudhon, who wanted to introduce a “socialist form” of money that would represent the actual time that workers labored. While Marx acknowledged that “one form [of money] may remedy evils against which another is powerless… as long as they remain forms of money” they’ll reproduce these evils elsewhere in the same way that “one form of wage labour may correct the abuses of another, but no form of wage labour can correct the abuse of wage labour itself” [16]. Capitalism can’t be overthrown without changing the relations of production.

Revolutions require objective and subjective conditions. Without changes in mass consciousness—which are superstructural but relate to and impact the base—no crisis of capitalism will lead to a new mode of production. A crisis in the capitalist system can, in turn, help change that consciousness, but is not in itself sufficient. Neither can be viewed or approached in isolation, and have to be approached as interacting within the shifting totality of capitalist society. In response to these approaches, our tactics and strategies change.

References

[1] Thanks to Jon Greenway for feedback on an earlier draft of this article.
[2] Marx, Karl. (1859/1970).A contribution to the critique of political economy(New York: International Publishers), 20-21.
[3] Engels, Friedrich. (1890/1965). “Engels to Joseph Bloch.” InMarx-Engels selected correspondence(New York: Progress Publishers), 396.
[4] Ibid., 394, 396.
[5] Marx, Karl. (1852/1972).The eighteenth Brumaire of Louis Bonaparte(New York: International Publishers), 47.
[6] Althusser, Louis. (1995/2014).On the reproduction of capitalism: Ideology and ideological state apparatuses, trans. G.M. Goshgarian (New York: Verso), 54.
[7] Marx,The eighteenth Brumaire of Louis Bonaparte, 47.
[8] Ibid., 50.
[9] Engels, Friedrich. (1894/1965). “Engels to W. Borgius in Breslau.” InMarx-Engels selected correspondence(New York: Progress Publishers), 441.
[10] Ibid., 441-442.
[11] Marx, Karl. (1939/1990). “Appendix: Results of the immediate process of production.” In Karl Marx,Capital: A critique of political economy (vol. 1), trans. B. Fowkes (New York: Penguin), 1044.
[12] Pew Research Center. (2021). “Mobile fact sheet.”Pew Research center, April 7 Availablehere.
[13] Drouin, Michelle, Daren H. Kaiser, and Daniel A. Miller. (2012). “Phantom vibrations among undergraduates: Prevalence and associated psychological characteristics.”Computers in Human Behavior28, no. 4: 1493.
[14] Marx, Karl. (1867/1967).Capital: A critique of political economy (vol. 1): A critical analysis of capitalist production, trans. S. Moore and E. Aveling (New York: International Publishers), 285, 286.
[15] See Majidi, Mazda. (2021). “Relative surplus value: The class struggle intensifies.”Liberation School, 18 August. Availablehere.
[16] Marx, Karl. (1939/1973).Grundrisse: Foundations of the critique of political economy (rough draft), trans. M. Nicolaus (New York: Penguin), 123.

Why Western Marxism Misunderstands China’s Usage of Markets

By Carlos Garrido

I have elsewhere argued that at the core of Western Marxism’s[1] flawed analysis of socialist states lies a “purity fetish” which is grounded in a Parmenidean fixation of the ‘true’ as the one, pure, and unchanging. For this disorder, so I have contended, the only cure is dialectics. With the aid of Roland Boer’s prodigious new text Socialism with Chinese Characteristics, I wish to show how this purity fetish, or, in its negative formulation, how this lack of dialectical thinking, emerges in Western Marxists’ analysis of China’s usage of markets.

In V.I. Lenin’s ‘Conspectus to Hegel’s Science of logic’ he states that,

It is impossible completely to understand Marx’s Capital, and especially its first chapter, without having thoroughly studied and understood the whole of Hegel’s Logic. Consequently, half a century later none of the Marxists understood Marx![2]

For anyone familiar with G.W.F. Hegel’s 700+ page arguably impenetrable monster this daunting task alone seems harder than making a revolution. However, the central message in Lenin’s audacious statement is this: without a proper understanding of the dialectical method, Marxism is bound to be misunderstood. A century later and still, Western Marxists struggle to understand Marx. The paradox is this: “Western Marxists, although claiming to be the ones who rekindle the spirit of Hegel into Marxism, are the least bit dialectical when it comes to analysis of the concrete world.” This is lucidly seen in their treatment of China’s usage of markets, where they dogmatically accept Ludwig von Mises’ stale binary which states  – “the alternative is still either Socialism or a market economy.”[3]

As Boer highlights, already in Capital Vol 3 (specifically chapter 36 on “Pre-Capitalist Relations”) Marx shows how markets existed in the slave economies of the ancient world, e.g., Rome and Greece, and in the feudal economies of the Middle Ages. Were the markets in each of these historical periods the same? Were they commensurable to how markets exist under capitalism? No, as Boer states “market economies may appear to be similar, but it is both the arrangement of the parts in relation to each other and the overall purpose or function of the market economy in question that indicates significant differences between them.”[4] As Boer points out, Chinese scholars, following the analysis of Marx’s Capital Vol 3, understand that “market economies have existed throughout human history and constitute one of the significant creations by human societies.”[5][6] If markets, then, predate the capitalist mode of production, why would a socialist mode of production not be able to utilize them?

Chinese Marxism, following upon the tradition of Eastern European socialism, was able to ‘de-link’ markets from capitalism and utilize them as a method (fangfa) and means (shouduan) to serve (fuwu) the ends of socialism, that is, to liberate the forces of production and guarantee collective flourishing.[7] If the last four decades – wherein China has drastically raised its population’s living standards and lifted 800 million out of poverty – has taught us anything, it is that China’s usage of markets as a shouduan to fuwu socialism works.

Considering the plethora of advances China has been able to make for its population and the global movement for socialism, why have Western Marxist continuously insisted that China’s market reforms are a betrayal of socialism and a deviation down the ‘capitalist road’? Unlike some of the other Western misunderstandings of China, this one isn’t merely a case of yixi jiezhong, of “using Western frameworks or categories to understand China,”[8] for, if the dialectical framework and categories the Marxist tradition inherits from Hegel were properly applied, there would be no misunderstanding here. Instead, it is precisely the absence of this dialectical framework which leads to the categorical mistakes.

In Hegel, but formulated clearer in Engels and Lenin, we come to know that universals are empty if not immanently negated by its particular (and individual) determinate form.[9] Since markets have existed throughout various modes of production, within the dialectic of universal, particular, and singular, markets stand as the universal term. Markets, Boer argues, as a “specific building block or component of a larger system” are a “universal institutional form” (tizhi), which can only be brought into concrete existence via a particular socio-economic system (zhidu).[10] When the particular zhidu through which the universal institutional form of a market comes into existence is a “basic socialist system” (shehuizhuyi jiben zhidu), the fundamental nature of how the tizhi functions will be different to how that tizhi functioned under the particular zhidu of slave, feudal, and capitalist modes of production. In short, as Huang Nansen said, “there is no market economy institutional form that is independent of the basic economic system of society.”[11]

As was the case with the planned institutional form in the first few decades of the revolution, the market institutional form has been able to play its part in liberating the productive forces and drastically raising the living standards of the Chinese people. However, because 1) China took this creative leap of grounding the market institutional form in socialism, and because 2) Western Marxists retain an anti-dialectical purity fetish for the planned institutional form, 3) the usage of markets in China is taken as a desecration of their Western Marxist pseudo-Platonic socialist ideal. It is ultimately a categorical mistake to see the usage of markets as ‘taking the capitalist road’ or as a ‘betrayal of the revolution.’ It is, in essence, a bemusing of the universal for the particular, of the institutional form for the socio-economic system. As Boer asserts, “to confuse a market economy with a capitalist system entails a confusion between commonality and particularity.”[12]

At a time when US aggression against China is moving the world into a new cold war,[13] these theoretical lapses carry an existential weight. The world cannot afford any more categorical mistakes which set the ground for an imperialist centered ‘left-wing’ critique of China. These, as has been seen in the past, merely give the state department’s imperialist narrative a socialist gloss.

Instead, it is time for the global left, and specifically the hesitant western left, to get behind China and its efforts to promote peace and international cooperation. The western left must stop being duped by propaganda aimed at weaponizing their sentiments to manufacture consent for a war that will only bring havoc and an unaffordable delay to the ingenious forms of global collaboration necessary to deal with the environmental crisis. It is the duty of every peace-loving individual to counter the US’ and former western colonial countries’ increasingly pugnacious discourse and actions against China. We must not allow the defense of their imperialist unipolarity to bring about any more death and suffering than what it already has.

 

Notes

[1] By Western Marxism I am referring specifically to a broad current in Marxism that comes about a quarter into the last century as a rejection of the Soviet Union and Marxism-Leninism. It is today, the dominant form of ‘Marxism’ in western academia. It encapsulates everything from the Frankfurt school, the French Marxists of the 60s-70s, the New Left, and the forms of Marxism Humanism that arise alongside these. Often, they phrase their projects as a Marxism that ‘returns to its Hegelian roots’, centering the Marx of the Economic and Philosophical Manuscripts of 1844 and reading the mature Marx only in light of the projects of the younger Marx. Some of the main theorists today include Jürgen Habermas, Slavoj Žižek, Alain Badiou, Kevin Anderson etc. Although it might be tempting to just refer to this block as ‘Non-Marxist-Leninist Marxists’, I would urge against doing so, for there are many Marxist currents in the global south which, although drinking from the fountain of Marxism-Leninism, do not explicitly consider themselves Marxist-Leninists and yet do not fall into the same “purity fetish” Western Marxists do. It is important to note that a critique of their “purity fetish” does not mean I think their work is useless and shouldn’t be read. On the contrary, they have been able to make great theoretical advancements in the Marxists tradition. However, their consistent failure to support socialist projects must be critiqued and rectified.

[2] V.I. Lenin. Collected Works Vol 38. (Progress Publishers, 1976)., pp. 180.

[3] Ludwig von Mises. Socialism: An Economic and Sociological Analysis. (Jonathan Cape, 1936)., pp. 142.

[4] Roland Boer. Socialism with Chinese Characteristics. (Springer, 2021)., pp. 119.

[5] Ibid.

[6] It is also important to note that this realization is common knowledge in economic anthropology since the 1944 publication of Karl Polanyi’s The Great Transformation, where, while holding that “there is hardly an anthropological or sociological assumption contained in the philosophy of economic liberalism that has not been refuted,” nonetheless argues markets have predated the capitalist mode of production, albeit usually existing inter, as opposed to intra, communally. Karl Polanyi. The Great Transformation. (Beacon Press, 1957)., pp. 269-277.

[7] Boer. Socialism with Chinese Characteristics., pp. 118.

[8] Ibid., pp. 13.

[9] For Hegel the individual is also a determinate universal – “the particular, because it is only the determinate universal, is also an individual, and conversely the individual, because it is the determinate universal, is just as much a particular.” G.W.F. Hegel. The Science of Logic. § 1343.

[10] Boer. Socialism with Chinese Characteristics., pp. 122-3.

[11] Ibid., pp. 124. Quoted from: Huang, Nansen. 1994. Shehuizhuyi shichang jingji lilun de zhexue jichu. Makesizhuyi yu xianshi 1994 (11): 1–6.

[12] Ibid., pp. 124.

[13] Although with the emergence of AUKUS a warm one does not seem unlikely.

Gentrification as Settler-Colonialism: Urban Resistance Against Urban Colonization

[Photo from Mike Maguire / Flickr]

By John Kamaal Sunjata

Gentrification is a ubiquitous phenomenon of political economy across the United States. Residential displacement, socioeconomic exclusion, political instability, homelessness, spatial transformation, and racial segregation coincide with the marked rapidity of the gentrification (Filion 1991, Atkinson 2002, Lees, Slater and Wyly 2008, Brown-Saracino 2010, Thörn 2012, Novy and Colomb 2013, Kohn 2013, Marcuse 2015, Domaradzka 2018). Local governments have appeared too impotent to mitigate the worsening effects that gentrification has on marginalized communities as urban landscapes continue their dramatic shifts and political struggles intensify within urban centers. In the era of increased fiscal austerity and decreased fiscal activism, local governments are better equipped to expand gentrification processes than contract them. This presents a puzzle for residents, organizers, and urban decision-makers alike about how to approach gentrification, especially when there are competing socioeconomic objectives.

This paper addresses the following questions: how do we contextualize gentrification as a political phenomenon? What are some of the political challenges that gentrification could present to cities? How have urban decision-makers responded to gentrification? How does gentrification contribute to what is happening on the ground from an urban resistance standpoint? This paper argues from a Marxist framework that gentrification (a) presents racialized challenges of density, diversity, and inequality; (b) urban decision-makers have largely responded by expanding gentrification efforts; and (c) gentrification itself may antagonize urban resistance movements. This argument follows from conducting case studies of Detroit and Brooklyn, where gentrification efforts and anti-gentrification movements have been observed and documented.

Three key findings emerge from the analysis. First, the process of gentrification starts with the racialization of a city’s inhabitants (read: the justification of their displacement) through patently white supremacist framing (Zukin, 2010; Quizar, 2019). Second, gentrification produces patently racialized outcomes for non-white people (Fullilove, 2001). Third, the dilemma of gentrification as a political process and the lack of meaningful urban policy responses to gentrification from local governments has given rise to urban anti-gentrification resistance movements. This paper has four sections. This first section discusses gentrification as a political process. The second section discusses urban resistance to gentrification. The third section analyzes the cases of Detroit and New York as sites of gentrification and anti-gentrification resistance. The fourth section concludes.

Gentrification as a political process

Gentrification defined

As an aspect of political economy, gentrification has been described and empirically examined by various scholars. Neil Smith has described gentrification as “the process by which poor and working-class neighborhoods in the inner city are refurbished by an influx of private capital and middle-class home buyers and renters” (Smith, 1996). Smith identifies the “rent gap,” a cycle of disinvestment and devalorization that establishes poor neighborhoods as sites of profitability, as a key factor in gentrification (Smith, 1987). Ipsita Chatterjee succinctly describes gentrification as “the theft of space from labor and its conversion into spaces of profit” (Chatterjee, 2014).

Gina Pérez comprehensively describes gentrification thusly:

…[A]n economic and social process whereby private capital (real estate firms, developers) and individual homeowners and renters reinvest in fiscally neglected neighborhoods through housing rehabilitation, loft conversions, and the construction of new housing stock. Unlike urban renewal, gentrification is a gradual process, occurring one building or block at a time. It also gradually displaces by increasing rents and raising property taxes (Pérez, 2002).

The previous scholars present valuable insights for what is a manifold political process with racial, economic, cultural, and spatial implications. This paper will rely on Samuel Stein’s definition of gentrification: “…[T]he process by which capital is reinvested in urban neighborhoods, and poorer residents and their cultural products are displaced and replaced by richer people and their preferred aesthetics and amenities” (Stein, 2019). Some have described gentrification as a net positive: it increases the number of affluent and educated persons, leading to a wealthier tax base, increased consumption of goods and services, and broader support for democratic political processes (Byrne, 2002). Others have posited that gentrification (namely, “residential concentration”) can have a beneficial effect but primarily for more educated groups (Cutler, Glaeser, & Vigdor, 2007), and may create job opportunities for the lower income residents, raise property values, enhance tax revenues, which could lead to improved social services via the wealthier tax base (Vigdor, Massey, & Rivlin, 2002). However, most of the literature points to gentrification as a net negative (Filion, 1991; Atkinson, 2002; Newman & Ashton, 2004; Lees, Slater, & Wyly, 2008; Shaw, 2008; Zukin, 2010; Brown-Saracino, 2010; Goetz, 2011).

Gentrification, as a multidimensional process, develops through some combination of three forms of “upgrading,” or renovation: economic (up-pricing), physical (redevelopment), and social (upscaling) (Marcuse, 2015). Up-pricing is the increased economic value of a neighborhood, namely the land it sits on.  Redevelopment, with respect to gentrification, is primarily a private undertaking (Marcuse, 2015). Upscaling refers to the pivot toward more affluent and educated people (Zukin, 2010). Within the United States context, “upgrades” take on a particularly racialized dynamic (Fullilove, 2001). These upgrades are led by capital employing racial segregation to secure private development (Stein, 2019).

Land is a key factor of gentrification

Land was a critical motivating factor for early American settlement (Campbell, 1959). Under a regime of racial capitalism,[1] land is a key factor in realizing both use and exchange values. Land is a both a “precondition for all commodities’ production and circulation, and a strange sort of commodity in and of itself” (Stein, 2019). Unlike other tradable or otherwise transportable commodities, land is a “fictitious form of capital that derives from expectations of future rents” (Harvey, 2013). Future rents are highly susceptible to demand- and supply-side pressures; therefore, the political economy cannot function without land prices and land markets for coordination. In treating land as a purely financial asset—an open field—for interest-bearing capital, it facilitates the circulation of anticipated surplus value production, bought, and sold according to the rent it yields (Harvey, 2018). The central contradiction of land under racial capitalism is its dual function as a collective good and commodity; a contradictory role as a site of social occupation and private ownership (Foglesong, 1986). It is on urban decision-makers to “reconcile” this contradiction for the capitalists [2] and workers. It is on the urban decision-maker to create the conditions wherein (1) capitalists can turn a profit; (2) labor power is reproduced; (3) infrastructure is maintained; and (4) basic welfare is ensured (Foglesong, 1986; Stein, 2019). The restructuring and redefinition of territorial foundations is central to the functioning private property regimes.

Private property generates dispossession

Private property [3] ownership exists at the nexus of racial capitalism. Robert Nichols argues that the “system of landed property” was fundamentally predicated on violent, legalized dispossession (particularly of Indigenous people) (Nichols, 2020). Racial capitalism reflects the “the social, cultural, political, and ideological complexes of European feudalisms” (Robinson, 2000) and institutionalizes a (colonial) regime of private property protection on that basis. Theft is generated as a recursive mechanism and “[r]ecursive dispossession is effectively a form of property-generating theft” (Burden-Stelly, 2020; Nichols, 2020). The institution of private property (especially and specifically in areas with Black people) manifests as a disjunction between the community’s use value and the exchange value of property (Pérez, 2004). Racial capitalism reproduces itself and a racist order through a series of supposedly race-neutral policies (Stein, 2019). In fact, race-neutral policies have been used to both “discredit and rationalize practices that perpetuate racial stratification” (Siegel, 2000). Modern American history has proven that racism can “coexist happily with formal commitments to objectivity, neutrality, and colorblindness” (Harris A. P., 1994).

Dispossession is justified by racialization

White supremacy is an underacknowledged political theory that articulates and structures the American polity. Even the origins of property rights within the United States are rooted in racial domination (Harris C. , 1993). It was the interaction of race and property that played a critical role in racially and economically subordinating Black and Indigenous people (Harris C. , 1993). Whiteness, as a historized social and legal construct, marks power and domination (Mumm, 2017), Blackness represents powerlessness, enslavement, and dispossession. Whiteness has, in various spaces, been “deployed as identity, status, and property, sometimes singularly, sometimes in tandem” (Harris C. , 1993). Whiteness is valorized and property ownership is an expression of whiteness; thus, property ownership is conflated with (white) personhood under racial capitalism (Safransky, 2014). Whiteness functions for racial exclusion (Harris C. , 1993) and capital advancement (Roediger, 2005). Racism is a feature of white supremacy and “its practitioners exploit and renew fatal power-difference couplings” (Gilmore, 2002). Dr. Ruth Wilson Gilmore has described racism as the “practice of abstraction, a death-dealing displacement of difference into hierarchies that organize relations within and between the planet’s sovereign political territories” (Bhandar & Toscano, 2015). It limits the life prospects of people it racializes, disproportionately burdens them with the costs of a “monetized and profit-driven world” while politically dislocating them from “the variable levers of power” that may well alleviate such burdens (Gilmore, 2002).

Racialized persons, especially Black people, confront the dual designations of superhumanity and subhumanity through their livelihoods. It is white supremacy that supports the synthesis of white domination through racial capitalism, across political, economic, and cultural geography. Black people are “fungible” in that they are commodifiable, their “captive [bodies]…vessel[s] for the uses, thoughts, and feelings of others” (Hartman, 1997). Black lives do not matter, the ways in which Black people’s bodies can serve white interests; however, matter a great deal. The settler-colonial logic of elimination and the white supremacist logic of Black fungibility converge around the question of gentrification (Quizar, 2019). The spatialization of race and the racialization of space is critical to the settler-colonial logic embedded in racial capitalism and the processes of gentrification (Safransky, 2014). Gentrification comes from a refusal of the would-be settlers to allow inconvenient, often racialized, inhabitants to prevent them from occupying a desired region. Therefore, much gentrification can be thought of as a “contestation of blacks and whites for urban space” (Vigdor, Massey, & Rivlin, 2002).

Urban Resistance to Gentrification

Gentrification has led to the demoralization of the people most directly affected (Chernoff, 2010). The consolidation of racialized class inequalities via accumulation through dispossession often emerges from the processes of gentrification (Harvey, 2008; Casgrain & Janoschka, 2013). It has also inspired anti-gentrification activism in response to the uncomfortable political economic pressures (Castells, 1983; Harvey, 2008; Kirkland, 2008; Zukin, 2009; Creasap, 2012). This activism often includes broad coalitions, across various heterogeneous groups and networks, united under common objectives that may apply to a variety of concrete challenges such as density, diversity, and inequality (Novy & Colomb, 2013; Domaradzka, 2018).

Urban resistance to gentrification has manifested as residents demanding a “right to the city,” wherein they attempt to assert their self-determination and autonomy by controlling their urban environment (Portalious, 2007; Pruijt, 2007). At various times and spaces, movements, organizers, and community-based groups may employ confrontation–resistance (insurrectionary/revolutionary) strategies against the state or participation–cooperation (reformist/counterrevolutionary) strategies with the state (Hackworth, 2002; Novy & Colomb, 2013). Tactics of urban resistance may include but are not limited to “the occupation of empty houses, demonstrations in favor of urban infrastructure, spontaneous celebrations, the rejection of zoning, demands concerning leisure, issues related to participation, self-management and alternative ways of everyday life” (Portalious, 2007). Any expression of urban resistance may provoke a response (or non-response) from the presiding local governing body .

There is a creative tension that exists between confrontation and cooperation strategies; some of the contradictions are antagonistic and some are non-antagonistic. The confrontation–resistance actors tend to be radical or anti-capitalist and favor insurrectionary/revolutionary postures with the local governing body, whereas the participation–cooperation actors favor a “reformed” capitalist system and dialogue with the local governing body (Novy & Colomb, 2013). Under the regime of racial capitalism, local governments prioritize and support the displacer class. This may intensify local struggles and heighten the socioeconomic contradictions. The power imbalance engenders conflict between the classes of displacers and the displacees. The city becomes a contested object “both for powerful groups and the grassroots” (Portalious, 2007). This contestation creates sociopolitical spaces for movements to confront gentrification as a force that operates for the benefit of the elites. For racialized subjects, resistance to gentrification may take on decolonial dimensions.

The Cases of Detroit and Brooklyn

The United States has a long legacy of dispossessing poorer people of adequate housing stock through racist urban planning and housing policy (Moskowitz, 2017; Stein, 2019). Gentrification relies upon legal, logistical, infrastructural, and technological capacities developed, maintained, and reproduced by the repressive and ideological state apparatuses of racial capitalism (Althusser, 2014; Stein, 2019). Local governments are structurally ordered to establish the spatial order (Stein, 2019); therefore, if the state is ordered under racial capitalism, the governing body must maintain and expand that system. Gentrification relies on severe urban divestment, which over time, creates “gentrifiable” building stock, or dirt-cheap real estate. This creates the incentive for urban reinvestment (Moskowitz, 2017; Stein, 2019). The history of American urban planning, operating under the logics of white supremacy and racial capitalism, is the purposeful spatial concentration of Black people and their subsequent divestment (Moskowitz, 2017). Few places exemplify the cycles of urban disinvestment–reinvestment like Detroit and Brooklyn. In both places, urban decision-makers have responded to the challenges of gentrification by gentrifying further.

Detroit as a site of gentrification and urban resistance

The post-World War II economic boom brought tens of thousands of Black people to Detroit where they sought economic opportunities in the industrial sphere (Moskowitz, 2017; Mallach, 2018). Detroit’s black population was 6,000 in 1910, 41,000 in 1920, 120,000 by the eve of the Great Depression, 149,000 in 1940, and 660,000 by 1970 (Mallach, 2018). The growth in the Black population coincided with white flight (Mallach, 2018): the city’s white population declined from 84 percent in 1950 to 54 percent in 1970 (Doucet, 2020). From the 1960s through the 1980s, Black families moved into the parts of Detroit vacated by former white residents (Mallach, 2018). As deindustrialization took hold, a (further) segregated landscape developed with the economic burdens falling disproportionately on Black people (Safransky, 2014). The Detroit debt crisis, along with the subprime lending crisis through “reverse redlining,” the Global Financial crisis, and fiscal austerity devastated Detroit’s inner urban core (Safransky, 2014; Mallach, 2018). Property prices rose steadily and home sales rose dramatically before culminating into a real-estate crash (Mallach, 2018). Sarah Safransky writes the following (Safransky, 2014):

In March 2014, the city began an unprecedented process of declaring bankruptcy. This decision followed Michigan’s Republican Governor Rick Snyder’s order that Detroit be placed under emergency management. Detroit is one of six cities in the state (all with predominantly black populations) that Snyder has deemed to be in financial crisis. Emergency managers – who are unelected – are tasked with balancing cities’ revenue and expenditure and are granted sweeping powers to do so. They nullify the power of elected officials and assume control of not just city finances but all city affairs, meaning they can break union contracts, privatize public land and resources, and outsource the management of public services (Peck, 2012, 2013).

By 2019, the U.S. Census Bureau reported the Black population at about 526,644 (79 percent) and the white population at about 97,825 (15 percent) (U.S. Census Bureau, 2019). When Detroit cratered, a space for gentrification opened. Detroit was described as a “New American Frontier” (Renn, 2011) and the incoming, usually white, residents were described as “urban pioneers” settling into “urban homesteads” (Quizar, 2019). For decades, the imagery around Detroit—the Blackest large city in the United States—centered around decaying abandoned architecture—the implication being “emptiness” and “vacancy” (Doucet, 2020).

Whiteness, in the Detroit context, acts as a tool to invisibilize Black residents, delegitimize their rights to spatially occupy political, economic, and cultural geography, and advance capital. Now that white people are resettling the city they had once abandoned, Detroit is making a “comeback” and it is the “New Brooklyn” (Quizar, 2019; Doucet, 2020). White people’s presence—along with their advanced buying power and aesthetic choices—confers “legitimacy.” It is white people who are “saving” Detroit from the failures of Black leadership and Black underproductivity (Quizar, 2019; Doucet, 2020). The majority Black population is devalorized (or dehumanized) in favor of the “empty” urban landscape in the “empty” city they occupy (Safransky, 2014; Quizar, 2019; Doucet, 2020). L. Brooks Patterson, the county executive of Oakland County, was asked by The New Yorker what should be done about Detroit’s financial woes. He answered, saying, “What we’re gonna do is turn Detroit into an Indian reservation, where we herd all the Indians into the city, build a fence around it, and then throw in the blankets and corn” (Quizar, 2019). The logic of elimination and Black fungibility are present even in the words and actions of one of the premier urban decision-makers. The racialization of Black Detroiters and the genocidal framing facilitates the processes of gentrification: accumulation through dispossession.

There is a long history of Black Detroiters engaging in political struggle, including ground-level mobilizations that connect America’s history of settler-colonialism with anti-Black racism, as manifested in Detroit’s patterns of gentrification (Quizar, 2019). Detroit’s Black neighborhoods have been described by anti-gentrification activists as “colonized Indigenous land and sites of Black containment, displacement, and resistance” (Quizar, 2019). The urban resistance movements in Detroit have used a blend of confrontational and participatory strategies. Urban resistance in Detroit has looked like residents, activists, and academics mobilizing research to counter positive narratives about gentrification (Safransky, 2014; Doucet, 2020). Many Detroiters have engaged in mutual aid projects and extended their communities of care (Safransky, 2014). Some have held anti- foreclosure and -eviction protests and demanded that negligent landlords “take care of land and buildings.” (Safransky, 2014). Some activists even engaged in more radical tactics such as squatting empty houses wherein families had been recently evicted (Safransky, 2014).

Brooklyn as a site of gentrification and urban resistance

New York’s Black population grew rapidly in the 20th century. It was not until the 1950s, the majority stopped living in Manhattan and shifted to Harlem (Chronopoulos, 2020). The legacy of redlining played a tremendous role in developing what would become Black Brooklyn (Chronopoulos, 2020). Between 1940 and 2000, the white population of Brooklyn declined by 67 percent; the Black population increased by 682.9 percent (Chronopoulos, 2020). White residents, “anxious” about the changing racial composition, fled for Staten Island, New Jersey, or Long Island (Osman, 2011). White Brooklynites tried everything they could to force non-white residents out, particularly neighborhood defense (Chronopoulos, 2020). According to Themis Chronopoulos:

Neighborhood defense included real estate agents and landlords who resorted to unofficial discrimination and refused to rent or sell housing to minority populations; financial institutions that denied mortgages and other loans to minority populations trying to relocate or open a business in a white neighborhood; white neighborhood residents who verbally and physically harassed minority residents who managed to rent or buy a property or youths who attacked minorities attending schools or using the public spaces of white neighborhoods; and the police that hassled minorities because they were frequenting white neighborhoods. In a general sense, neighborhood defense was an effort to maintain the racial exclusivity of white neighborhoods during a period of political mobilizations by African Americans demanding equality.

The legacy of neighborhood defense has ensured that racial segregation still defines Brooklyn today. White supremacy as structured through housing, financial, and employment discrimination—de jure and de facto, as well as the maldistribution of resources, public goods, white terrorism, police brutality, racially-biased sentencing, and a dearth of socioeconomic mobility, has had a lasting adverse effect on the livelihoods of Black Brooklynites directly and indirectly affected even to the present day. By the late 1940s, Black people were the majority of downtown Brooklyn, Fort Greene, Clinton Hill, Prospect Heights, Bedford Stuyvesant, and Crown Heights (Woodsworth, 2016). As a result of persistent real-estate blockbusting, East New York’s population flipped from overwhelmingly white in 1960 to overwhelmingly Black in 1966 (Chronopoulos, 2020). White Brooklynites engaged in neighborhood defense and spatial separation projects to prevent Black Brooklynites from “spreading” to other areas, but by 1980 most whites had abandoned Black Brooklyn (Chronopoulos, 2020).

Today, Brooklyn has 2.6 million residents (if it were a city, it would be the fourth largest in the United States) and 788,00 Black people—more Black residents than any city in the United States except for New York and Chicago (Chronopoulos, 2020). Despite this, the movement of middle- to upper-middle class white people has contributed to patterns of racial segregation and gentrification (Wyly, Newman, Schafran, & Lee, 2010; Shepard, 2013; Hyra, 2017). White Brooklynites have disproportionately benefited at the expense of Black Brooklyn. [4] Black fungibility is exemplified; the contagion of Blackness was historically spatially limited to protect white Brooklynites’ capital investment before white flight but meticulously expelled to expand white Brooklynites’ capital investment via gentrification.

Brooklyn, beset by the political challenges of deindustrialization, gentrification, globalization, has been a site of smaller scale contestations (Shepard, 2013). Residents have resisted rezoning efforts by drafting alternative “community plans” (Shepard, 2013). Brooklyn has been the site of urban resistance from wide coalitions of actors, from organizers, artists, global justice activists, and anti-war demonstrators (Shepard, 2013). Brooklynites have resisted evictions by engaging in eviction defense at the local level, protesting the development of big box stores, and developed community gardens, and fought police brutality (Shepard, 2013). Overall, the erosion of militancy has undermined effective anti-gentrification resistance within Brooklyn (Chronopoulos, 2020).

Conclusion

Gentrification has restructured and reconstituted urban space, reproducing new zones of privatization, exclusion, and homogenization (Kohn, 2013) via the racialized logics of elimination and Black fungibility. It induces urban instability and crises at the global urban scale, as real estate developers search for creative ways to maximize profit through and above antagonistic forces at the local level. The limited geographic investments that are tied to geospatial localities creates local dependence for firms, local governments, and residents (Cox and Mair 1988). Urban instability and crises are inherent to racial capitalist political economy; however, local governments may navigate by ensuring that the most politically disempowered, typically racialized, persons absorb the brunt of the economic burdens (Smith, 1996; Stein, 2019; Burden-Stelly, 2020). Black people are disproportionately displaced and dispossessed by gentrification in urban spaces as they occupy an identity of accumulation and deaccumulation (Burden-Stelly, 2020). This feat of racial capitalist political economy is accomplished through Black people’s structural location as simultaneously indispensable and disposable racialized subjects (Harris C. , 1993; Quizar, 2019; Burden-Stelly, 2020). The disposability, exchangeability, and expendability of Black people via purposive campaigns of dehumanization and devalorization accelerates the gentrification process, especially in the cases of Detroit and Brooklyn.

The devalorization of Black people for urban private property has been a constant feature of American racial capitalism since Black people ceased being legal chattel (Harris A. P., 1994). Thus, cities are “saved” when white people presumably “rescue” the urban centers and the decaying architecture from “Black underdevelopment, mismanagement, and underproductivity” (Quizar, 2019; Doucet, 2020). So, gentrification within the American context, functions as a more benign form of ethnic cleansing wherein racialized people are evacuated from urban centers; it may be presented as the result of non-violent market forces despite evidence to the contrary. Gentrification exacts “spatialized revenge” against the inconvenient racialized inhabitants of urban centers (Smith, 1996).

Racialized people may develop class consciousness because of the disruptions created by gentrification (Cox & Mair, 1988). Class consciousness among the racialized may be an altogether natural affair as “[r]ace is the modality in which class is lived.” (Hall et al., 2013). This class consciousness may develop into urban resistance against the political forces that allow gentrification to continue. The mobilization of resistance occurs as cleavages develop among the urban political establishment and opportunity for successful urban resistance manifests (Pruijt, 2007). As gentrification continues, contradictions emerge; gentrification as a phenomenon possesses both the conditions for its expansion and its contraction. The success of urban resistance movements against what is effectively urban colonization; however, is not guaranteed.

 

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Notes

[1] Racial capitalism does not describe a distinct permutation of capitalism or imply there exists a non-racial capitalism, but rather emphasizes that, in the words of Dr. Ruth Wilson Gilmore, “capitalism requires inequality and racism enshrines.” As a system of political economy, it depends on racist practices and racial hierarchies because it is a direct descendent of settler-colonialism. It is a translation of the “racial, tribal, linguistic, and regional” antagonisms of European feudal society, reconstituted for the American context. It profits off the differentiated derivations of human values, non-white people are especially devalued and their exploitation is a justifiable and profitable enterprise (see Cedric Robinson’s Black Marxism: The making of the Black radical tradition. University of North Carolina Press, 2000).

[2] Although the capitalist class makes up what Marxists refer to as the ruling-class, there still exists contradictions within the ruling-class about certain objectives and interests, especially with respect to gentrification. Neil Smith once noted this, saying, “to explain gentrification according to the gentrifier’s actions alone, while ignoring the role of builders, developers, landlords, mortgage lenders, government agencies, real estate agencies is excessively narrow.” A business owner may want their workers (who are also tenants) to have affordable housing because it reduces the likelihood that workers would demand raises. Real estate developers would dislike “affordable housing” as that puts a constraint on their ability to maximize profits on rental properties. There are a lot of competing interests to consider and an uncareful conflation of capitalist interests could lead to unanalytical analysis.

[3] Private property is not the same as personal property, which is almost exclusively wielded for its use value, it is not a personal possession, it is social relation of excludability. It is the ownership of capital as mediated by private power ownership that removes legal obstacles for one’s existence and provides an unalloyed right to violence. It is “the legally-sanctioned power to dispose” of the factors of production and “thus dispose of [labor-power]: property as synonymous with capital.” Toscano, Alberto, and Brenna Bhandar. “Race, real estate and real abstraction.” Radical Philosophy 194 (2015): 8–17.

[iv] [4] This paper, drawing upon Chronopoulos’ article, What’s Happened to the People?” Gentrification. Journal of African American Studies, 549-572., defines Black Brooklyn as “Fort Greene, Clinton Hill, Bedford-Stuyvesant, Prospect Heights, Crown Heights, Brownsville, Ocean Hill, East New York, Canarsie, Flatlands, East Flatbush, Flatbush, parts of Bushwick, and parts of downtown Brooklyn.

Refinancing the Climate Crisis: The Disaster Politics of Climate Change and Datafication of Capital

By Julius Alexander McGee

As the climate crisis escalates, the contradictions of the nation-state as both a facilitator and regulator of capital become increasingly apparent. The increase of natural disasters sparked by global warming have produced civil unrest and calls for change to our current social structures. These calls for change include a Green New Deal; divestment from fossil fuel industries; and a redistribution of wealth, all of which threaten the existing mechanism of capital accumulation. In response, the state has turned to the disaster capitalist playbook, turning the risk of civil unrest into new modalities of capital accumulation that maintain the status quo. This includes the creation of new low carbon markets that recapitulate pre-existing modalities of capital accumulation[1]. Recent attempts by nation-states to mitigate global warming through the creation of low carbon markets reveal how the climate crisis is being used to facilitate the expansion of capital into markets of data accumulation. This expansion is characterized by a process where data is created, collected, and circulated to generate wealth. Specifically, data extracted from low carbon technology to improve operational efficiencies ultimately functions to increase overall energy demand, as vast quantities of electricity are necessary to store data on computer servers. Such processes, unfortunately, of course, serve to undermine climate mitigation efforts. Further, the datafication of capital enhances surveillance technology that is used to disenfranchise Black and Brown communities through enhanced policing. Police departments around the United States as well as the Immigration and Customs Enforcement (also known as ICE) are using data to target communities that are left most vulnerable by the unrest of the climate crisis[2]. Meanwhile, lithium, an alkali metal essential to many low-carbon technologies is mined at the expense of indigenous communities in South America in response to increased demand for electric vehicles (henceforth EVs) and large-scale batteries required to store deployable renewable energy. Simply put, these outcomes reveal the racial character of economic development and the tendency for capital to maintain the settler colonial project that established capitalism as a system of social organization. 

The automobile industry and widespread electrification were each established in the United States by dispossessing Black, Brown, and indigenous communities. The automobile industry thrived in the United States after the states demolished Black owned businesses and homes to build highways, and electrification was used to dispossess Black farmers of their wealth[3]. Moreover, the fossil fuels used to power automobiles and electricity are extracted on land dispossessed from indigenous people[4]. Indeed, it is increasingly clear that the continual dispossession and disenfranchisement of Black, Brown, and indigenous communities the world over is the true engine of capital accumulation. Specifically, by maintaining the historical expropriation of populations outside the terrain of capitalist production such that processes of uneven development favoring privileged Westerners might continue even in the face of socio-ecological instability. This paper intends to demonstrate how state policies aimed at creating low carbon markets are positioned as a reactionary force under disaster capitalism, which create new modalities of capital accumulation. I illustrate some of the key functions of this emergent phenomenon by examining the relationship between state sponsored low carbon markets and big data — a dynamic interplay that, despite appearances, fosters further dependence on fossil fuels through the dispossession of Black, Brown and indigenous communities around the world. 

First, I explore the crisis that facilitated the datafication of capital -- the dot-com bubble burst of the early 2000s. Second, I explore the implications of the crisis that facilitated the creation of low carbon markets -- the crisis of the fossil economy. Third, I examine how low carbon markets perpetuate the datafication of capital such that data supplants fossil fuels as an organizing structure of the system of capitalism. I conclude by exploring how the internal dynamics of capitalism as a system are maintained through the combination of these two wings of the high technology sector.      

 

The dot-com bubble burst and the rise of data as capital 

In the neoliberal era, modalities of capital accumulation that emerge in the wake of social, economic, and ecological crises (be they actual or perceived), facilitate the redistribution of wealth from poor to rich through combined and uneven development[5]. Abstractly, this usually means new capital is created for the wealthy to own, new revenue streams are created to preserve the status of the middle class (that simultaneously undermine their stability), and new mechanisms of extraction are created that target/create the dispossessed -- this is what Naomi Klein refers to as “disaster capitalism”. In essence, disaster capitalism recapitulates the dynamics of capital accumulation in response to crises by passing down the risk from the wealthy to the poor. 

In response to the dot-com bubble burst of 2000 as well as the events of September 11th, the Federal Reserve (the central banking system of the United States) continuously lowered interest rates for banks to help the United States’ economy emerge from a recession[6]. This created new capital in the form of AAA-rated mortgage-backed securities, because banks were incentivized to lend in order to generate new revenue from interest on loans[7]. Specifically, banks relied on individual home mortgages as a revenue stream by passing the Federal Reserve’s lower interest rates down to middle class homeowners who could take out cash from their homes through mortgage refinancing or cash-out refinancing to counteract stagnating wages. The federal reserve lowered interest to 1% in 2003, where it stayed for a year. In that time, inflation jumped from 1.9% to 3.3%. However, this proved to be extremely volatile due to lending practices that targeted Black and Brown communities in the United States with predatory loans. The subsequent Great Recession of 2008, disproportionately decimated wealth within Black and Brown communities through housing foreclosures, which redistributed wealth upwards, widening the racial wealth gap[8]. As Wang says, “these loans were not designed to offer a path to homeownership for Black and Brown borrowers; they were a way of converting risk into a source of revenue, with loans designed such that borrowers would ultimately be dispossessed of their homes”[9]. The transfer of capital from the productive sphere into the financial sector of the economy resulted in the financialization of capital via dispossession, breathing new life into the system through the construction of a new frontier for capital.  

The dot-com bubble burst of the early 2000s was a crisis created by failed attempts to transform the technology of the internet into capital. Internet companies during this time absorbed surplus from other markets through investments but failed to turn a profit, creating a crisis that was solved through finance capital and the transfer of risk from wealthy to poor. In the 1990s and early 2000s, internet companies merged with media corporations to create a new frontier for capital based on the increasing popularity of the internet. For example, the America Online (AOL) Time Warner merger, seen as the largest failed merger in history[10], represented a merger of the largest internet subscription company and one of the largest media corporations in the United States. However, this merger failed after dial-up internet was supplanted by broadband -- a much faster and more efficient way to use the internet. Broadband connections, which allowed for continuous use of the internet, helped usher in the Web 2.0 era. Unlike its predecessor, Web 2.0 is defined by internet companies, such as Google, whose value derives in part from its ability to manage large databases that are continuously produced by internet users[11]. Investments in internet technology in the form of data, as opposed to software tools such as internet browsers (e.g., Netscape), transforms data into a modality of capital accumulation akin to fossil fuels. Data, like fossil fuels, supplants pre-existing modalities of capital accumulation by refining their ability to produce a surplus. Thus, whereas the dot-com bubble burst was produced because the internet could not turn a profit after absorbing the surplus of other markets, Web 2.0 is defined by its ability to enhance the surplus produced by other markets by refining their mechanisms of capital accumulation. In the proceeding section I explore how fossil fuels as capital are based on the continued oppression of Black, Brown, and indigenous communities in order to demonstrate how data is supplanting fossil fuels as capital.

 

Fossil fuels and the cycle of dispossession

Fossil fuels have been an emergent feature of capital accumulation since they were first tied to human and land expropriation at the start of the industrial revolution in Great Britain. Factory owners in British towns used coal to power the steam engines that manufacture textiles from cotton, which was picked by enslaved Africans on land stolen from indigenous peoples. This tethered the consumption and production of coal to the expropriation of enslaved Africans and indigenous ecologies. As a result, coal, alongside enslaved Africans and indigenous ecosystems, became capital -- a resource that could be converted into surplus. Eventually, the steam engine gave the industrial bourgeoisie primacy over the plantation system that preceded it. Coal became the central driver of capital accumulation, which has borne an unsustainable system rife with contradictions. The natural economy, once based on human and land expropriation, gave way to the fossil economy, which uses fossil fuels to extract profit from human and ecological systems. 

Prior to the “industrial revolution” the contradictions of human and land expropriation were apparent in the multitude of slave revolts across the West Indies; in San Domingo, Jamaica, Barbados, etc. These rebellions were not simply slave revolts, they were outgrowths of the contradictions of the plantation system, which were apparent from the time they were established. As Ozuna writes, “centuries of sustained subversive activity prompted colonial authorities to rethink their relationship to the enslaved, and oftentimes, make concessions to preserve the body politic of coloniality”[12]. That is, the fossil economy emerged as a way to avert the crisis of the plantation system.   

The ability to manufacture cotton into textiles at an accelerating rate through the consistent use of coal, which was abundant on the island of Great Britain, became the precedent for colonial expansion in the United States, as well as the slave trade. Thus, human and land expropriation were fused to fossil fuel production and consumption. To put it succinctly, the fossil economy is an outgrowth of the plantation system, which automizes labor to efficiently accumulate capital. In supplanting the “natural economy” coal, and eventually petroleum, became emergent forms of capital accumulation that shifted the apparent contradictions of human and land expropriation.  

 The fossil economy has never transcended the contradictions embedded in human and land expropriation. The climate crisis consolidates the dialectical tension of fossil fuel production and the expropriation of humans, land, and human relationships with land. Likewise, the inability of nation-states to address the climate crisis is embedded in an unwillingness by ruling classes to address the core contradictions of capital accumulation. To address the climate crisis in a socially and ecologically sustainable way these contradictions must also be addressed. The climate crisis can be averted without addressing the contradictions of human and land expropriation, but such attempts will cost more in human life and ecological longevity by recapitulating human and land expropriation through the construction of new modalities of capital accumulation. In the same way that coal enabled the industrial bourgeoisie to expand capital accumulation while deepening its contradictions in centuries prior, data will recapitulate capitalism today. 

 

Low carbon markets as disaster capitalism

Low carbon markets, such as cap-and-trade, carbon taxes, and consumer tax rebates are market-based, regulatory, environmental policies that seek to disincentivize environmental degradation by establishing a competitive market for low carbon technology to compete with fossil fuel-based markets. The logic of these policies is to encourage fossil fuel companies to pay for the future ecological cost of their markets and to use the funds obtained from these policies to establish new markets that can replace fossil fuels. 

In the case of cap and trade (perhaps the most widely used strategy), a central authority allocates and sells permits to companies that emit CO2, which allows them to emit a predetermined amount of CO2 within a given period. Companies can buy and sell credits to emit CO2 on an open market, allowing companies that reduce emissions to profit from companies’ that do not. This approach was first established over thirty years ago in the United States to phase out lead in gasoline, and sulfur dioxide emissions from power plants that resulted in acid rain[13]. In 2003, the European Union adopted a cap-and-trade approach to CO2 emissions to reach emission reduction goals established during the Kyoto Protocol. Since then, more than 40 governments have adopted cap-and-trade policies aimed at reducing CO2 emissions while introducing minimal disruption to dominant economic processes[14]

If we accept the reality that fossil fuels were used to stave off the crisis of the plantation system and maintain capital accumulation via expropriation of human and ecological processes, then it points to the possibility that any new energy source created to maintain capitalism as a system will recapitulate the human and ecological expropriation that is foundational to the system. Thus, economic policies that facilitate the construction of low carbon markets, and that do not question the emergent character of fossil fuels under capitalism, invariably create new frontiers for capital accumulation. Opening such frontiers has been a primary role of the state under capitalism. 

The abolition of enslavement by nation-states across the capitalist system aided in efforts to stave off the crisis of the plantation economy by alleviating the political and ecological tension the slave trade created. Nonetheless, many nation-states continued to expropriate formerly enslaved Africans by forcing them into labor conditions that were conducive to the overarching dynamics of capitalism[15]. Further, other forms of expropriation (e.g., the coolie trade) in newly established colonies within Southeast Asia were made possible by and undergirded the technology produced via the fossil economy. Thus, similar to how capitalism recapitulated its internal dynamics following abolition, it recapitulates its internal dynamics in its efforts to transition off of fossil fuels.   

 This plays into what Naomi Klein termed the politics of disaster capitalism[16]. Under the impetus of averting a climate catastrophe, climate mitigation policies allow industries to profit from the perceived disasters that will be caused by the climate crisis. While the climate crisis is no doubt a real threat to life on this planet, the new orchestrators of disaster capitalism have successfully commodified climate change in perception and solution. The perception is commodified through the implicit narrative that the market is the only solution to a crisis of its own making. Sustainable energy companies, like Tesla Motors, suggest that they have proved “doubters” wrong by producing electric vehicles that perform better than their gasoline counterparts, implying that the only obstacle in the way of addressing the vehicle market’s contribution to the climate crisis is the vehicles themselves. This feeds into the tautological logic used to commodify the solution, which assumes that the market simply needs to reduce CO2 emissions and, because electric vehicles are less CO2 intensive than their gasoline counterparts, they result in less CO2 emissions overall. Nonetheless, because the market operates under the logic of capital accumulation, companies that profit from the disaster playbook are incentivized to create more capital with their surplus, and companies create this surplus capital through datafication.           

 

The datafication of capital

Data operating as capital has three fundamental components that allow it to operate as a distinct form of capital that is dialectically bound to broader systems of exchange. (1) As capital, data is valuable and value-creating; (2) data collection has a pervasive, powerful influence over how businesses and governments behave; (3) data systems are rife with relations of inequity, extraction, and exploitation[17]. Like other forms of capital, data’s value derives from its ability to create a market irrespective of its utility. The creation of data hinges on its potential to generate future profits, and not on its immediate usefulness. As such, the goal of this section is to establish how data is transformed into capital, not how it is used by any particular firm or institution.  

The disaster politics of the climate crisis are similar in character to the tactics used by Wall Street financiers in the wake of financial crises. However, in addition to using crises as a launching pad for capitalist plunder, the orchestrators of the disaster politics of the climate crisis take advantage of the groundwork laid by finance capital. This is best exemplified in the ascendency of Elon Musk, a Silicon Valley entrepreneur who rose to prominence through an unregulated data-driven financial tool, and subsequently became one of the world’s richest people, in part through his companies’ ability to transform the shock of the climate crisis into an endless opportunity for data capital accumulation.

In 1999 Musk co-founded X.com, one of the first online payment systems. It later merged with Confinity Inc. to become PayPal, which is one of the largest online payment platforms in the world today. Similar to other tech companies from Silicon Valley, such as Uber, PayPal functions as a deregulated variant of a pre-existing market. Musk and others recognized the “inefficiency” of checks and money orders used to process online transactions. Online payment platforms bypassed regulations applied to banks when processing payments and led to these inefficiencies; PayPal created a new payment system that regulated itself based on data instead of bureaucracy. 

In many respects PayPal is a digital bank whose main activity is in data instead of finance. PayPal claims that the data it collects is used to increase the security of its transaction, allowing money transfers to occur faster and with more convenience[18]. PayPal obtains its revenue through processing customer transactions and value-added services, such as capital loans. Online payment platforms such as PayPal are increasingly blurring the lines between retail and investment banking, again. For example, the loans that PayPal distributes to businesses are based on PayPal transactions, which are enhanced by PayPal’s data collection techniques. Thus, instead of accumulating wealth from financial instruments, PayPal accumulates wealth from the data it obtains from transactions, which it uses to finance more businesses and expand the number of consumer transactions it processes. This reality on its own has numerous implications for the climate crisis, as data centers, which store data at an exponential rate, rely on fossil fuel energy to operate[19] -- a fact that we will return to later. 

Online payment platforms have also become the shadow benefactors of financial deregulations. For example, the repeal of Obama-era financial regulations in 2016 (installed in the wake of the 2008 financial crisis) that required financial institutions to disclose fees and protections against fraudulent charges benefited online payment platforms who were also subject to these regulations until 2016[20]. Here one can see the interest of data and finance aligning around market deregulation. As Sadowski writes, “Like finance, data is now governed as an engine of growth. If financial firms are free to shuttle capital from country to country, then similarly technology corporations must also be free to store and sell data wherever they want.” This is an expansion of the neoliberal project that began decades ago. 

Data, like finance, is being used as a transnational modality of capital accumulation that transforms the role of the nation-state in relation to capital. Similar to how the state became a “lender of last resort, responsible for providing liquidity at short notice”[21] to encourage finance capital, the nation-state is facilitating the rise of data capital through tax-credits, rebates, and cap and trade. To be clear, at the end of the day the state is merely supporting long standing markets of capital accumulation, such as transportation and electricity, by aiding their efforts to create capital from data. Moreover, the state’s encouragement of data capital’s accumulation is increasingly occurring under the veneer of efforts to mitigate global warming.    

 

Bitcoin’s legacy of expropriation and the climate crisis

After his departure from PayPal Elon Musk founded Tesla, an electric vehicle and clean energy company, in 2003. As a company, Tesla manufactures and sells electric cars, battery energy storage systems, solar panels, and solar roof tiles. However, Tesla’s profits derive from more than just the sale of its products. For example, in the first quarter of 2021 the bulk of Tesla’s profits came from the sales of emissions credits to other automakers, and sale of its bitcoin holdings[22]. This represents the new reality created through the disaster politics of the climate crisis, which merges financial speculation and data capital. 

Carbon credits sold by Tesla to other auto manufacturers, who would otherwise incur fines, allow Tesla to profit from environmental degradation. This is the goal of policies such as cap and trade, as Tesla is profiting from the production and consumption of its low-carbon commodities, which in theory should facilitate the rise of low-carbon markets at the expense of fossil fuel-intensive companies. In addition to cap and trade policies, Tesla benefits from a number of tax credits and rebates that exist across the United States and European Union to encourage growth in low carbon energy markets[23]. Similar to the way cap and trade is meant to incentivize low-carbon technology, the logic of tax credits and rebates is to encourage both producers and consumers to adopt cleaner energy practices as an alternative to fossil fuels by reducing the cost of implementation, and increasing overall capital accumulated from low carbon technology. In theory, this should progress the consumption of less CO2 intensive commodities at the expense of CO2 intensive commodities. However, by using a portion of these profits to buy bitcoin, Tesla is expanding its holdings through the speculative value of Bitcoin, which derives from the ongoing exchange of Bitcoins and the vast stores of energy used to validate these transactions, produce and distribute the currency, and store its data. 

Bitcoin is a popular cryptocurrency, the value of which is determined by a decentralized database known as a blockchain. This is distinct from the valuation of fiat currency, which is typically an outcome of inflation rates and the internal working of a central bank. The data that determines Bitcoin’s value encapsulates the supply and demand of Bitcoin on the market (the same as fiat currencies), competing cryptocurrencies, and the rewards issued to bitcoin miners for verifying transactions to the blockchain. Instead of storing its data in a central location, the data used to verify Bitcoin transactions is stored on multiple interconnected computers around the world. Each time a transaction using Bitcoin occurs, an equation is generated to be solved by a computer in order to confirm the validity of the transaction. The transaction is then stored permanently on data storage devices in 1MB chunks of transactional information. The completed block is then appended to previously existing ones, creating a chain of data that stores the history of all Bitcoin transactions. In effect the Bitcoin blockchain contains the entire history of all transactions that have ever occurred through Bitcoin, and this blockchain is repeated across every data storage device, or node, that composes the Bitcoin blockchain network. Thus, every time a block is completed and chained to the previous blocks, the solution is distributed to every node in the network where the block’s authenticity (the solution to the equation) is verified, and subsequently stored.

As blocks are added to the chain, which verify new transactions through the solution of a complex mathematical equation, new Bitcoin are produced. The equations are structured to identify a 64-digit hexadecimal number called a “hash.” The difficulty of the equations is determined by the confirmed block data in the Bitcoin network. The difficulty of the equation is adjusted every 2 weeks to keep the average time between each block at 10 minutes[24]. “Miners,” those who solve the equations and thereby verify the transactions that make up each block are rewarded for this work with Bitcoin, making it a lucrative market activity in and of itself. Thus, miners are in competition with one another to create new blocks; the more computing power the higher likelihood of successfully earning more coins. Because computers need electricity to function, and more computationally intensive tasks require more electricity, the process of creating new Bitcoin is very energy intensive. A study published in the journal Nature Climate Change in 2018[25] warned that due to its high electricity demands and increasing usage, Bitcoin mining could put the world over the two-degree Celsius tipping point, which would lead to an irreversible climate catastrophe. 

The decentralized structure of blockchains grants Bitcoin users a level of anonymity that is not accessible through traditional currency. Further, as data-based currency is not regulated as traditional currencies are, Bitcoin transfers can be cheaper than a traditional bank’s transactions.  As a result, many Bitcoin transactions are money transfers that benefit from anonymity and “cheapness.” Because Bitcoin’s value is determined in part by the number of transactions, companies, such as Tesla, that trade Bitcoin for profit derive surplus from how Bitcoin is used. This has numerous implications as to how datafication is deriving surplus from the disenfranchisement of Black and Brown communities. 

The climate crisis has created an impetus for the data-based currency, Bitcoin. For example, migrants from the nation-states of Guatemala, El Salvador, Honduras, and Nicaragua are increasingly using Bitcoin for remittances[26]. Remittances are funds sent as gifts to friends and relatives across national borders. They comprise more than 20% of El Salvador and Honduras’ GDP, and nearly 15% of Nicaragua and Guatemala’s GDP, as of 2020[27]. Guatemala, El Salvador, Honduras, and Nicaragua have been ravaged by a five-year long climate change-induced drought, which reduced crop yields from corn and beans -- food staples in the region[28]. The recent drought coupled with oppressive government regimes that were supported by the United States’ neoliberal policies are themselves indirect drivers of these currency transfers–– resulting in large-scale migration out of these regions and into relatively stable and wealthy nation-states, such as the United States (where they will be exploited either in ICE detention centers, prisons, jails, or other low-paid wage labor most frequently available to migrants).[29].  

Bitcoin has become an increasingly popular form of currency to send remittances through because (like PayPal) it is cheaper, more efficient, and subject to less regulation than most banks[30]. In early 2021, El Salvador made headlines by announcing that Bitcoin would become a legal currency[31]. The logic behind this move is that Bitcoin will make it easier for people who do not have access to a bank to transfer money back to El Salvador.  Here we see an explicit example of how the politics of disaster capitalism facilitate the construction of new frontiers that recapitulate the environmental harm (e.g. climate change through increased use of fossil fuels) and generate surplus from the climate crisis. Specifically, patterns of migration onset by climate change and U.S. policy create space for new financial tools, such as Bitcoin to fill. The carbon intensity of Bitcoin recapitulates the environmental harm that is partially responsible for mass migration.

 

Data, renewable energy, and the expropriation of Black and indigenous peoples

Tesla’s investment in Bitcoin demonstrates how low carbon markets recapitulate the internal dynamics of the fossil economy, deriving surplus from the legacy of human expropriation and exasperating the climate crisis. In addition to creating capital from data in the form of Bitcoin, electric vehicle companies like Tesla also create their own data. For decades, automobile producers and rideshare companies have been increasing the data they collect from drivers in an effort to profit from an emerging data market. Everything from speed, breaking habits, vehicle position, and music preferences are collected from individual vehicles and sold to various interests[32]

Electric vehicles like Teslas collect and store far more data than their predecessors, and the amount of data collected grows with every new product line. This is due to the ever more complicated hardware and software that comes stock on new vehicles. Specifically, new vehicles are equipped with internal cameras that are capable of capturing video of drivers who use autopilot[33], the reaction of drivers just before a crash, as well as infrared technology to identify a driver’s eye movements or head position[34]. New vehicles also connect directly to smartphones, allowing third parties to collect data on a driver’s travel and driving habits. Further, states are beginning to put forth laws that require automakers to include driver monitoring systems, increasing the pace at which data is extracted from vehicles. For example, driver monitoring systems will be a part of the requirements for Europe’s Euro NCAP automotive safety program as of 2023[35]. All of this increases the demand for data centers to store new data collected from vehicles as well as the propensity for data to operate as capital. 

While a large portion of the data is sold to third parties such as insurance companies who can use data to determine rates, repair shops that can use data to assist mechanics, and automakers who use data to improve their products, vehicle data is also being used to expand the police state. Companies like Berla Corporation are working with police departments to extract data collected from vehicles, which can be used to surveil the population[36]. Through third parties, police departments are able to access data from smartphones that have been linked with vehicles, giving them access to anything from text messages to GPS location[37]. Considering the broader structure of the police state, this data can be used to expand the scope, scale, and authority of an institutionally racist organization, furthering the dispossession of Black and Brown communities. 

New policies implemented by the state, such as the United States’ proposed 1 trillion dollar infrastructure plan[38], include incentives to increase the consumption of electric vehicles, accelerating the number of vehicles that can extract data from drivers. While the goal of these incentives is to increase adoption of electric vehicles to mitigate climate change, the vehicle market will also benefit from the new data collecting techniques embedded in electric vehicles, which will exponentiate the data stored in centers. Moreover, most electric vehicles are still far more expensive than gasoline vehicles, making them only accessible to the middle or upper classes. Thus, efforts to encourage consumption, such as tax rebates to consumers, results in combined and uneven development as middle-class consumers increase their long-term savings while poor people are left out. Moreover, in the past cap and trade has resulted in higher gasoline prices, which means those left out may also absorb the cost of these policies on the petroleum industry[39].  

The apparent silver lining in all of this is the rise of renewable electricity, which could theoretically reduce the amount of fossil fuels used to capture and store data. Crypto currencies and the data collected from an evolving vehicle fleet could theoretically, then, grow without deepening the climate crisis as long as they rely on renewable sources of electricity. Nonetheless, when it comes to capital, there is nothing new under the sun. The climate crisis itself is an outgrowth of the continuous dispossession of the natural economy. Fossil fuels are merely an energy source that aids in this process. The ability to transcend ecological boundaries has facilitated the slow death of populations around the world since before the widespread use of fossil fuels. The first sugar plantations were erected in Madeira and the Canary Islands, to help the Genoese outcompete their Venetian rivals in the European sugar market at the expense of the indigenous life dependent on these islands. Capital’s maturation has been on an ongoing journey of death and destruction. While tracing this legacy is beyond the scope of this paper, suffice it to say that we are currently at a crossroads in the narrative of capital. The disaster politics of the climate crisis and data capital have created a new frontier in the lithium mines of Bolivia, Chile, and Argentina. These mines exist on indigenous land, which belongs to the Atacama people.      

Renewable electricity, such as that drawn from wind and solar power, as well as EVs require large lithium batteries to store the energy they use[40]. Lithium, a major component in all of these batteries, is currently being mined at the expense of indigenous people. The Lickanantay who live in the Atacama salt flat of northern Chile, consider the water and brine of this land as sacred[41]. As a result of lithium mining, the Atacama water table is losing an estimated 1,750-1,950 liters per second[42], depleting the sacred resource of Lickanantay people. Moreover, it has been argued that the increased demand for lithium mining has led to a recapitulation of the old neoliberal playbook - military coups. Specifically, the 2019 ousting of then president Evo Morales in Bolivia has been called a coup d'etat against indigenous people in Bolivia[43] in favor of lithium mining interests. 

 

Conclusion

These recent developments bring us full circle as we can now see the outcome of the disaster capitalist playbook. The state responds to a crisis that it has aided and abetted by creating a new frontier - the low carbon market. The crisis is not global warming per se, rather, the civil unrest that the climate crisis creates. This unrest is addressed through the commodification of both the perception and solution to climate change - e.g. sustainable products such as EVs. The widespread consumption of low carbon technology results in combined and uneven development, allowing the middle class to reduce the long-term cost of travel and electricity at the expense of the underclass who absorb the cost of “environmentally sustainable” technology by becoming more surveilled and incurring the added costs borne by the fossil fuel industry due to its shrinking market share. The widespread consumption of low carbon technology facilitates and accelerates the datafication of capital, expanding the demand for energy within capitalist markets. As of now this demand has been met by fossil fuel interests who have become the benefactors of data capital's need for cheap energy. Nonetheless, as the renewable energy market expands, the need for lithium, located on indigenous land will encourage the further dispossession of indigenous ecologies. In the end, the natural resources needed to produce EVs and the data they gather are a new lease for capital; a new loan for endless dispossession; a refinancing of the climate crisis.                



Notes

[1] Sadowski, Jathan. “When data is capital: Datafication, accumulation, and extraction.” Big Data & Society 6, no. 1 (2019):

[2] Rani Molla “Law enforcement is now buying cellphone location data from marketers” February 7, 2020.

[3] Eric. The folklore of the freeway: Race and revolt in the modernist city. U of Minnesota Press, 2014.

[4] Simpson, Michael. “Fossil urbanism: fossil fuel flows, settler colonial circulations, and the production of carbon cities.” Urban Geography (2020): 1-22.

[5] Rodney, Walter. How Europe Underdeveloped Africa. Verso Trade, 2018.

[6] Kimberly Amadeo “Fed Funds Rate History: Its Highs, Lows, and Charts” September 24 2021

[7] Celi, Chris, “Redefining Capitalism: The Changing Role of the Federal Reserve throughout the Financial Crisis (2006–2010)”. Inquiry Journal. No. 3 (2011)

[8] Rakesh Kochhar and Richard Fry “Wealth inequality has widened along racial, ethnic lines since end of Great Recession” December 12th, 2014

[9] Wang, Jackie. Carceral Capitalism. Vol. 21. MIT Press, 2018.

[10] Rita Gunther McGrath “15 years later, lessons from the failed AOL-Time Warner merger” January 10, 2015.

[11] Tim O’Reilly “What Is Web 2.0: Design Patterns and Business Models for the Next Generation of Software” No. 4578 2007.

[12] Ana Ozuna. “Rebellion and Anti-colonial Struggle in Hispaniola: From Indigenous Agitators to African Rebels.” Journal of Pan African Studies 11, no. 7 2018: 77-96.

[13] Richard Conniff “The Political History of Cap and Trade” Smithsonian Magazine August, 2009;

[14] Brad Plumer and Nadja Popovich “These Countries Have Prices on Carbon. Are They Working?” The New York Times April 2, 2019.

[15] Sherwood, Marika, and Christian Hogsbjerg. "After Abolition: Britain and the Slave Trade since 1807." African Diaspora Archaeology Newsletter 11, no. 1 (2008).

[16] Klein, Naomi. The shock doctrine: The rise of disaster capitalism. Macmillan, 2007.

[17] Sadowski, Jathan. “When data is capital: Datafication, accumulation, and extraction.” Big Data & Society 6, no. 1 (2019):

[18] Adam Dillon. “How Paypal Turns Customer Data into Smoother Safer Commerce” Forbes May 6th 2019.

[19] Tom Bawden. “Global warming: Data centres to consume three times as much energy in next decade, experts warn” The Independent. January 23rd 216.

[20] Matthew Zeitlin “Venmo Could Be A Big Winner As Obama-Era Financial Rules Are Scrapped” Buzzfeed February 28th 2017.

[21] Foster, John Bellamy. "The financialization of capitalism." Monthly review 58, no. 11 (2007): 1-12.

[22] Jay Ramey “Tesla Made More Money Selling Credits and Bitcoin Than Cars” Auto Week April 27th 2021

[23] https://www.tesla.com/support/incentives accessed 8/9/2021

[24] https://www.blockchain.com/charts/difficulty accessed 8/11/2021

[25] Mora, Camilo, Randi L. Rollins, Katie Taladay, Michael B. Kantar, Mason K. Chock, Mio Shimada, and Erik C. Franklin. “Bitcoin emissions alone could push global warming above 2 C.” Nature Climate Change 8, no. 11 (2018): 931-933.

[26] Enrique Dans. “Bitcoin And Latin American Economies: Danger Or Opportunity?” Forbes July 14, 2021

[27] World Bank Developmentl Indicators https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=SV accessed 8/13/2021

[28] Jeff Masters “Fifth Straight Year of Central American Drought Helping Drive Migration” Scientific American December 23, 2019

[29] Michael D McDonald. “Climate Change Has Central Americans Fleeing to the U.S.” Bloomberg Businessweek June 8, 2021

[30] Roya Wolverson. “Bitcoin is wooing the millions of workers who send their earnings abroad” Quartz Africa March 26, 2021

[31] Mitchell Clark “Bitcoin will soon be an official currency in El Salvador” The Verge June 9, 2021

[32] Matt Bubbers. “What kind of data is my new car collecting about me? Nearly everything it can, apparently” The Globe and Mail January 15, 2020

[33]  Fred Lambert. “Tesla has opened the floodgates of Autopilot data gathering”. Electrek June 14, 2017

[34] Keith Barry. “Tesla's In-Car Cameras Raise Privacy Concerns” Consumer Reports March 2021.

[35] Euro NCAP. “In Pursuit of Vision Zero”  https://cdn.euroncap.com/media/30700/euroncap-roadmap-2025-v4.pdf accessed 08/3/2021

[36] Mitchell Clark. “Your car may be recording more data than you know” The Verge December 28, 2020.

[37] Sam Biddle. “Your Car is Spying on you, and a CBP Contract shows the Risks” The Intercept, May 3, 2021.

[38] Niraj Chokshi. “Biden’s Push for Electric Cars: $174 Billion, 10 Years and a Bit of Luck” The New York Times March 31, 2021.

[39] Mac Taylor. “Letter to Honorable Tom Lackey” https://lao.ca.gov/reports/2016/3438/LAO-letter-Tom-Lackey-040716.pdf accessed 8/22/2021

[40] Xu, Chengjian, Qiang Dai, Linda Gaines, Mingming Hu, Arnold Tukker, and Bernhard Steubing. “Future material demand for automotive lithium-based batteries.” Communications Materials 1, no. 1 (2020): 1-10.

[41] Amrouche, S. Ould, Djamila Rekioua, Toufik Rekioua, and Seddik Bacha. "Overview of energy storage in renewable energy systems." International journal of hydrogen energy 41, no. 45 2016.

[42] By Ben Heubl. “Lithium firms depleting vital water supplies in Chile, analysis suggests” Engineering and Technology August 21, 2019.

[43] Kinga Harasim. “Bolivia’s lithium coup” Latin America Bureau October 7, 2021.

The World-Historic Shift Labor Undergoes in Hegel's Philosophy

By Carlos Garrido

Republished from Midwestern Marx.

For most of civilization physical labor, that labor which creates a tangible object, has been seen as an unfortunate task done merely for the sake of acquiring the necessaries of life. The Greeks and Romans in large part relegated this sort of work to slaves. The Middle Ages tell stories of kings, philosophers, theologians, and priests, but not of workers. And the capitalist era, from early mercantilism to modern imperialism, thrives insofar as it has labor to exploit, labor it can reduce to a commodity, labor whose activity and product can be stripped from the laborer. Today most people’s relation to their work is dull at best, a source of life drainage at worst. As a reaction, even many ‘left-wing’ theoretical spaces continue in the tradition of viewing work as an unfortunate necessity – one whose conditions might be improvable, but which is itself not fruitful. It only exists because people need the products it can create.

Although painted with a broad stroke, the history of the greatest minds in Europe has been one which sniffs at the activities for which their abstract mind games depended on. However, can labor be thought of as something done for purposes not limited to those of consumption? Can labor be fruitful and meaningful in itself? In G.W.F. Hegel, for the first time in a prominent western theorist, the response is YES! In Hegel’s Phenomenology of Spirit and Philosophy of Right one can see what I have elsewhere called a “world-historic shift” in how labor is conceived: from labor as an unfortunate necessity, towards labor as a valuable expression of creative activity which constitutes a moment of liberation. [1]

In the famed lord and bondsman section of his 1907 Phenomenology of Spirit Hegel describes the encounter of two self-consciousnesses with each other, an event plagued with a mutual desire for recognition. After a series of ambiguous supersessions between the two consciousnesses, this encounter leads to a life and death struggle, for “only through staking one’s life is freedom won.”[2] Realizing that “death is the natural negation of consciousness,”[3] for he who is dead cannot think and he who requires recognition for self-consciousness that is in and for itself cannot get it from a dead man, this infantile skirmish ends with one submitting to the other. This submission gives rise to the lord and bondsman, the former who posits himself as “pure self-conscious” and the latter as “merely immediate consciousness, or consciousness in the form of thinghood.” [4]

Although the lord is described as the “pure, essential action in this relation”, because what the “lord does to the other he also does to himself,” the recognition he receives from the bondsman is “one-sided and unequal,” i.e., in the relationship’s reduction of the bondsman to thinghood, his status as independent consciousness is negated and thus unable to afford the recognition necessary for the lord to be certain of his being for-self.[5] Simply put, in sex that you pay for you cannot affirm yourself as a good lover. Hegel concludes that “just as lordship showed that its essential nature is the reverse of what it wants to be, so too servitude in its consummation will really turn into the opposite of what it immediately is… it will withdraw into itself and be transformed into a truly independent consciousness.”[6]

How can Hegel affirm the slave as the one with the potential for ‘truly independent consciousness’? Hegel states that “through work, however, the bondsman becomes conscious of what he truly is.”[7] He continues,

Work forms and shapes the thing. The negative relation to the object becomes its form and something permanent, because it is precisely for the worker that the object has independence. This negative middle term or the formative activity is at the same time the individuality or pure being-for-self of consciousness which now, in the work outside of it, acquires an element of permanence. It is in this way, therefore, that consciousness, qua worker, comes to see in the independent being [of the object] its own independence.

Hence, although his immediate condition is as a slave, his externalization (or objectification for Marxists), although at first appearing as an alien force independent of the bondsman, eventually shows itself as his creation. Through observing the independence of his self-otherization into the object he can, to play with the language of Hegel's Science of Logic, absolutely recoil back into himself and reinstate his initial condition but in a higher form – as true self-consciousness.

Approximately thirteen years after the publication of the Phenomenology, Hegel’s Philosophy of Right reintroduces the liberatory role of labor, albeit without the imaginative and captivating language used in the lord and bondsman moment of spirit’s unfolding. When addressing certain philosophers’ romanticized theories of a ‘state of nature’ where man’s needs were such that the “accidents of nature directly assured to him” enough to subsist, Hegel condemns this view’s inability to see that there is a “moment of liberation intrinsic to work.” [8] For Hegel, this utopianism fails to see that work is meaningful in itself. Yes, its object satisfies needs, cravings, etc., but this satisfactory power of the object is what the French call jouissance, a sort of surplus enjoyment. The objects of labor are valuable [9]; they can fill empty stomachs, warm bodies, provide aesthetic enjoyment, and so on, but the laboring activity which the object presupposes can be valuable as well.

Unlike the traditional views of labor before him, for Hegel the first moment of value in labor is not the object, but the work itself. Work itself is meaningful and valuable because it consists of a dedication of “my time…, my being, my universal activity and actuality, [and] my personality,” [10] into creating, with the “raw materials directly supplied by nature,” [11] that upon which the human community sustains itself. For Hegel, the object labor creates is not simply an independent alien entity, instead, Hegel sees that the object “derives its destiny and soul from [the worker’s] will,” [12] the worker ensouls his object.

Hence, for Hegel the result of labor is 1) the liberating sense of growth, meaning, and flourishing it can provide the laborer and 2) the consumptive growth it brings the consumer (who could, naturally, be the same person). Although this historical-shift is praiseworthy, there are, of course, certain contradictions which ensue from Hegel’s attempt to both: 1) sustain a critique of chattel slavery grounded in his view of labor’s totalizing inalienability, while also sustaining 2) a defense for wage-slavery, grounded in his acceptance of labor’s alienation “for a specific period.” [13]

In my essay, “A World-Historic Shift: Hegel, Marx, and Labour” [14] I further explore how these contradictions arise and how Marx and Engels, by immanently taking Hegel to his logical and practical conclusions, sublate the contradictions Hegel encounters. For now, I simply urge the reader to recognize that this anarchistic disdain of work is not a part of the Marxist tradition. Starting from Hegel, but better formulated in Marx and Engels, labor is humanity’s unique life-activity – it allows one to transform nature consciously and collaboratively in accordance with human needs and aesthetic sensibilities. We must not universalize and fixate the wretchedness of alienated work under capitalism with work in general; for work, when done in a non-exploitative setting, can be the most fruitful and meaningful thing a human can do. In fact, I would argue the few but meaningful moments we do encounter under capitalism are those in which labor takes place in a setting which overflows (albeit never fully) the exploitative logic of capital – e.g., home craft projects, sports, revolutionary militancy, parenting, etc.

Carlos L. Garrido is a Cuban American graduate student and instructor in philosophy at Southern Illinois University, Carbondale. His research focuses include Marxism, Hegel, and early 19th century American socialism. His academic work has appeared in Critical Sociology, The Journal of American Socialist Studies, and Peace, Land, and Bread. Along with various editors from The Journal of American Socialist Studies, Carlos is currently working on a serial anthology of American socialism. His popular theoretical and political work has appeared in Monthly Review OnlineCovertAction MagazineThe International Magazine, The Marx-Engels Institute of PeruCountercurrentsJanata WeeklyHampton Institute, Orinoco Tribune, Workers Today, Delinking, and in Midwestern Marx, which he co-founded and where he serves as an editorial board member. As a political analyst with a focus on Latin America (esp. Cuba) he has been interviewed by Russia Today and has appeared in dozens of radio interviews in the US and around the world.


References

[1] The article I am referring to is “A World-Historic Shift: Hegel, Marx, and Labor,” which is set to appear in the fifth issue of Peace, Land, and Bread.
[2] Hegel, Georg. Phenomenology of Spirit. (Oxford, 1997), p. 114.
[3] Ibid.
[4] Ibid., 115.
[5] Ibid.
[6] Ibid., 117.
[7] Ibid., 118.
[8] Hegel, Georg. Philosophy of Right. (Oxford, 1978), p. 128.
[9] To be clear, I am referring to Value as Use-Value here.
[10] Ibid., 54.
[11] Ibid., 129.
[12] Ibid., 41.
[13] Ibid., 54.
[14] See note [i]

Neoliberalism and the Crisis of Higher Education

By Beth Mintz

Republished from Marxist Sociology blog.

I recently published an article in the American Journal of Economics and Sociology that uses the “student as customer” to help understand why college is so expensive. I explore three factors that contribute to high costs:  1) contemporary understandings of education as a private, rather than a public, good; 2) the ways that schools are funded; and 3) the “marketization” of higher ed.  These processes produce students who are customers, but it is important to point out that this change is rooted in a set of neoliberal assumptions that frame the way that we think about, organize, and fund education, rather than any fundamental change in young people.

Neoliberalism is the dominant ideology of this historical moment. It includes a belief in the following:  the efficiency of the free market and the deregulation and privatization of the public sector that markets require; tax reduction; abandoning the welfare state; and replacing the notion of the public good with a personal responsibility for one’s own welfare.  It has informed public policy in every Democratic and Republican administration since the Reagan years, and it currently structures much of our economic and political lives. This includes the university, where it has shaped institutional practice and individual action.

Neoliberal thought considers higher education a financial investment for students, and it assumes that colleges and universities should compete for customers, just like any other sector. These beliefs have laid the foundation for formal higher educational policy and internal institutional procedure. They have not made the academy more efficient, however, but instead have contributed to the runaway expenses that we see today.

In the United States, ideas about the funding of education turn on whether it is considered a public good; that is, whether the whole community benefits from an educated population, or if it is an investment made by the individual, yielding a return in the form of future earnings. In recent years, the latter vision, that of a private good, has gained ascendancy and this has had a profound impact on financing. It helps explain why so much need-based financial aid takes the form of loans rather than grants, and why public colleges and universities are being systematically defunded.

Moreover, although theorists have long argued that schools reproduce the class system, the victory of the neoliberal agenda has intensified the role of education in solidifying advantage. That colleges and universities survive on those who can pay the bills translates into the structural requirement of privileging the affluent, with the needs of many low and middle-income students ignored.  It also has a profound effect on student behavior as education becomes a commodity to be used for competitive advantage in the labor market, turning students into customers to be pursued.

To attract students in a highly competitive environment, colleges and universities invest in all sorts of things to distinguish themselves from other institutions. The way markets work, however, everyone adopts successful practices, and this means that many very expensive innovations eventually become commonplace. This includes the fancy dorms, dining halls and cutting-edge classrooms so common on campuses these days. Indeed, academia has gone on a multi-decade building spree, often financed by long-term borrowing. Between 2002 and 2012, interest payments almost doubled, growing from  $6 billion to $11 billion for four-year (nonprofit) schools. The University of Colorado, for example, owed approximately $1.5 billion in 2019, with 3.6.% of its annual operating budget going towards debt servicing.

Expanded student services are also common recruitment vehicles, and although they do not typically require large capital outlays, they fuel the growth of administrators. Defined narrowly, about 8.4% of spending in private (nonprofit) four-year institutions and 4.9% for comparable publics is on student services. This contributes to the decline in instructional spending as a percentage of total expenses in both the public and private (non-profit) sectors which, in 2017-2018, accounted for 27% and 31%  of four-year schools’ budgets, respectively.  Add to this nearly a half a billion dollars spent on advertising each year, and the role of competition and marketization in tuition escalation becomes clearer.

Among upper middle-class families, prestige has become the centerpiece of college aspirations. When education is viewed as a vehicle for competitive advantage in a labor market – as a private good – and attending a prestigious school is believed to distinguish one from the large pool of competitors, students pursue prestige as a rational strategy for investment maximization.

Colleges and universities understand this well, and, thus, increasing one’s prestige rankings is a central part of many a recruitment strategy.  Indeed, this explains the attention that schools pay to the U. S. New and World Report lists. Attentive institutions have figured out ways to raise their scores and a very common — and expensive – tactic is tuition discounting, where merit scholarships are offered to high achieving customers who would contribute to a school’s selectivity profile. Over time, this practice has spread through academia, so much so that few students now pay full freight. On average, private nonprofits collected  55% of published figures in 2018, with nearly 82% of undergraduates receiving discounts.

Public universities, particularly flagships, use merit aid to recruit academically successful out-of-state students, who contribute to institutional prestige and – theoretically — also counter decreases in state funding by paying higher tuition rates than state residents. But, here again, once everyone has incorporated an innovation, it becomes less effective in distinguishing an institution from its competitors, while the practice remains.  Preliminary research  has found this approach is so pervasive, and the competition so intense, that it may lower total tuition revenue, suggesting that state universities have become particularly vulnerable to the market failure of tuition discounting.

Moreover, merit money privileges the wealthy; it has grown at the expense of need-based scholarships and it goes predominately to upper income students, with awards tending to increase with income levels. This has led to  decreases in the proportion of low income and minority undergraduates in college in general, with public sector schools especially hard hit.

Neoliberalism, the dominant ideology of this historical moment, has contributed to the rise of the “student as customer” with costly ramifications. The contemporary view of education as a private-good, for example, justifies the massive underfunding of higher education and helps explain why we are transferring its cost from the community to the individual. Given the belief in the power of the market, the non-profit world now follows the logic of the private sector, with colleges and universities developing institutional practices to help survive marketization and privatization. Dependence on students who can afford to pay the bills explains many of the strategies that have been widely adopted, but instead of providing advantage in the competition for revenue, they have created very expensive necessities. This contributes to skyrocketing tuition, while affecting the class and racial/ethnic composition of contemporary campuses. When compared to the conventional wisdom of trust the market, then, the conclusion is that corporatization and marketization are important drivers in tuition cost escalation.

Beth Mintz is a Professor Emeritus of Sociology at the University of Vermont.  Her research interests include occupational segregation, corporate structure, gender, and health care.

To read more, see: Beth Mintz. “Neoliberalism and the Crisis in Higher Education: The Cost of Ideology” in The American Journal of Economic and Sociology 2021.

[Image by Kevin Dooley via Flicker (CC BY 2.0)]

Record Numbers of U.S. Workers Are Quitting and Striking

[Photograph: Evert Nelson/AP]

By Sonali Kolhatkar

Republished from Socialist Project.

On September 14, a young woman in Louisiana named Beth McGrath posted a selfie Facebook video of herself working at Walmart. Her body language shows a nervous energy as she works up the courage to speak on the intercom and announces her resignation to shoppers. “Everyone here is overworked and underpaid,” she begins, before going on to call out specific managers for inappropriate and abusive behavior. “I hope you don’t speak to your families the way you speak to us,” she said before ending with “f**k this job!”

Perhaps McGrath was inspired by Shana Ragland in Lubbock, Texas, who nearly a year ago carried out a similarly public resignation in a TikTok video that she posted from the Walmart store where she worked. Ragland’s complaints were similar to McGrath’s as she accused managers of constantly disparaging workers. “I hope you don’t talk to your daughters the way you talk to me,” she said over the store intercom before signing off with, “F**k the managers, f**k this company.”

The viral resignations of these two young women are bookending a year of volatility in the American workforce that economists have branded the Great Resignation. Women in particular are seen as leading the trend.

The Great Resignation

The seriousness of the situation was confirmed by the latest Bureau of Labor Statistics report showing that a record 2.9 percent of the workforce quit their jobs in August, which is equivalent to 4.3 million resignations.

If such a high rate of resignations were occurring at a time when jobs were plentiful, it might be seen as a sign of a booming economy where workers have their pick of offers. But the same labor report showed that job openings have also declined, suggesting that something else is going on. A new Harris Poll of people with employment found that more than half of workers want to leave their jobs. Many cite uncaring employers and a lack of scheduling flexibility as reasons for wanting to quit. In other words, millions of American workers have simply had enough.

So serious is the labor market upheaval that Jack Kelly, senior contributor to Forbes.com, a pro-corporate news outlet, has defined the trend as, “a sort of workers’ revolution and uprising against bad bosses and tone-deaf companies that refuse to pay well and take advantage of their staff.” In what might be a reference to viral videos like those of McGrath, Ragland, and the growing trend of #QuitMyJob posts, Kelly goes on to say, “The quitters are making a powerful, positive and self-affirming statement saying that they won’t take the abusive behavior any longer.”

Still, some advisers suggest countering the worker rage with “bonding exercises” such as “Gratitude sharing,” and games. Others suggest increasing trust between workers and bosses or “exercis[ing] empathetic curiosity” with employees. But such superficial approaches entirely miss the point.

The resignations ought to be viewed hand in hand with another powerful current that many economists are ignoring: a growing willingness by unionized workers to go on strike.

The Great Strikes

Film crews may soon halt work as 60,000 members of the International Alliance of Theatrical Stage Employees (IATSE) announced an upcoming national strike. About 10,000 employees of John Deere, who are represented by the United Auto Workers, are also preparing to strike after rejecting a new contract. Kaiser Permanente is facing a potential strike from 24,000 of its nurses and other health care workers in Western states over poor pay and labor conditions. And about 1,400 Kellogg workers in Nebraska, Michigan, Pennsylvania and Tennessee are already striking over poor pay and benefits.

The announced strikes are coming so thick and fast that former US Labor Secretary Robert Reich has dubbed the situation “an unofficial general strike.”

Yet union representation remains extremely low across the United States – the result of decades of concerted corporate-led efforts to undermine the bargaining power of workers. Today only about 12 percent of workers are in a union.

The number of strikes and of striking workers might be far higher if more workers were unionized. Non-union workers like McGrath and Ragland hired by historically anti-union companies like Walmart might have been able to organize their fellow workers instead of resorting to individual resignations. While viral social media posts of quitting are impactful in driving the conversation around worker dissatisfaction, they have little direct bearing on the lives of the workers and the colleagues they leave behind.

One example of how union organizing made a concrete difference to working conditions is a new contract that 7,000 drug store workers at Rite Aid and CVS stores in Los Angeles just ratified. The United Food and Commercial Workers Local 770 negotiated a nearly 10 percent pay raise for workers as well as improved benefits and safety standards.

And when companies don’t comply, workers have more leverage when acting as a collective bargaining unit than as individuals. Take Nabisco workers who went on strike in five states this summer. Mondelez International, Nabisco’s parent company, saw record profits during the pandemic with surging sales of its snack foods. So flush was the company with cash that it compensated its CEO with a whopping $16.8 million annual pay and spent $1.5 billion on stock buybacks earlier this year. Meanwhile, the average worker salary was an appallingly low $31,000 a year. Many Nabisco jobs were sent across the border to Mexico, where the company was able to further drive down labor costs.

After weeks on the picket line, striking Nabisco workers, represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, returned to work having won modest retroactive raises of 2.25 percent, $5,000 bonuses and increased employer contributions to their retirement plans. The company, which reported a 12 percent increase in revenue earlier this year, can well afford this and more.

Taken together with mass resignations, such worker strikes reveal a deep dissatisfaction with the nature of American work that has been decades in the making. Corporate America has enjoyed a stranglehold over policy, spending its profits on lobbying the government to ensure even greater profits at the expense of workers’ rights. At the same time, the power of unions has fallen – a trend directly linked to increased economic inequality.

Corporations and Legislation

But now, as workers are flexing their power, corporate America is worried.

In the wake of these strikes and resignations, lawmakers are actively trying to strengthen existing federal labor laws. Business groups are lobbying Democrats to weaken pro-labor measures included in the Build Back Better Act that is being debated in Congress.

Currently, corporate employers can violate labor laws with little consequence as the National Labor Relations Board (NLRB) lacks the authority to fine offenders. But Democrats want to give the NLRB the authority to impose fines of $50,000 to $100,000 against companies who violate federal labor laws. Also included in the Build Back Better Act is an increase in fines against employers that violate Occupational Safety and Health Administration (OSHA) standards.

The Coalition for a Democratic Workplace, which is a business lobby group that wants anything but democracy in the workplace, is deeply concerned about these proposed changes and sent a letter to lawmakers to that effect.

It remains to be seen if corporate lobbyists will succeed this time around at keeping labor laws toothless. But as workers continue to quit their jobs, and as strikes among unionized workers grow, employers ignore the warning signs of rage and frustration at their peril.

There Is No Substantive Economic Recovery In Sight: Capitalism and Its State Are Running Out of Tricks

Pictured: A Maricopa County constable escorts a family out of their apartment after serving an eviction order for non-payment on Sept. 30 in Phoenix. [John Moore / Getty Images]

By Shawgi Tell

One of the fundamental economic laws under capitalism is for wealth to become more concentrated in fewer hands over time, which in turn leads to more political power in fewer hands, which means that the majority have even less political and economic power over time. Monopoly in economics means monopoly in politics. It is the opposite of an inclusive, democratic, modern, healthy society. This retrogressive feature intrinsic to capitalism has been over-documented in thousands of reports and articles from hundreds of sources across the political and ideological spectrum over the last few decades. It is well-known, for example, that a handful of people own most of the wealth in the U.S. and most members of Congress are millionaires. This leaves out more than 95% of people. Not surprisingly, “policy makers” have consistently failed to reverse these antisocial trends inherent to an obsolete system.

At the same time, with no sense of irony and with no fidelity to science, news headlines from around the world continue to scream that the economy in many countries and regions is doing great and that more economic recovery and growth depend almost entirely, if not entirely, on vaccinating everyone (multiple times). In other words, once everyone is vaccinated, we will see really good economic times, everything will be amazing, and we won’t have too much to worry about. Extremely irrational and irresponsible statements and claims of all kinds continue to be made in the most dogmatic and frenzied way by the mainstream press at home and abroad in a desperate attempt to divert attention from the deep economic crisis continually unfolding nationally and internationally. Dozens of countries are experiencing profound economic problems.

While billions of vaccination shots have already been administered worldwide, and millions more are administered every day (with and without people’s consent), humanity continues to confront many major intractable economic problems caused by the internal dynamics of an outdated economic system.

A snapshot:

1.      More rapid and intense inflation everywhere

2.      Major supply chain disruptions and distortions everywhere

3.      Shortages of many products

4.      “Shortages” of workers in many sectors worldwide

5.      Shortened and inconsistent hours of operation at thousands of businesses

6.      Falling value of the U.S. dollar and other fiat currencies

7.      Growing stagflation

8.      Millions of businesses permanently disappeared

9.      More income and wealth inequality

10.  High dismal levels of unemployment, under-employment, and worker burnout

11.  Growing health insurance costs

12.  Unending fear, anxiety, and hysteria around endless covid strains

13.  More scattered panic buying

14.  The stock market climbing while the real economy declines (highly inflated asset valuations in the stock market)

15.  Spectacular economic failures like Lehman Brothers (in the U.S. 13 years ago) and Evergrande (in China in 2021)

16.  All kinds of debt increasing at all levels

17.  Central banks around the world printing trillions in fiat currencies non-stop and still lots of bad economic news

18.  And a whole host of other harsh economic realities often invisible to the eye and rarely reported on that tell a much more tragic story of an economy that cannot provide for the needs of the people

The list goes on and on. More nauseating data appears every day. Economic hardship, which takes on many tangible and intangible forms, is wreaking havoc on the majority at home and abroad. There is no real and substantive economic improvement. It is hard to see a bright, stable, prosperous, peaceful future for millions under such conditions, which is why many, if not most, people do not have a good feeling about what lies ahead and have little faith in the rich, their politicians, and “representative democracy.” It is no surprise that President Joe Biden’s approval rating is low and keeps falling.

What will the rich and their political and media representatives say and do when most people are vaccinated, everyone else has natural immunity, and the economy is still failing? What will the rich do when economic failure cannot be blamed on bacteria or viruses? To be sure, the legitimacy crisis will further deepen and outmoded liberal institutions of governance will become even more obsolete and more incapable of sorting out today’s serious problems. “Representative democracy” will become more discredited and more illusions about the “social contract” will be shattered. In this context, talk of “New Deals” for this and “New Deals” for that won’t solve anything in a meaningful way either because these “New Deals” are nothing more than an expansion of state-organized corruption to pay the rich, mainly through “public-private-partnerships.” This is already being spun in a way that will fool the gullible. Many are actively ignoring how such high-sounding “reforms” are actually pay-the-rich schemes that increase inequality and exacerbate a whole host of other problems.

It is not in the interest of the rich to see different covid strains and scares disappear because these strains and scares provide a convenient cover and scapegoat for economic problems rooted in the profound contradictions of an outmoded economic system over-ripe for a new direction, aim, and control. It is easier to claim that the economy is intractably lousy because of covid and covid-related restrictions than to admit that the economy is continually failing due to the intrinsic built-in nature, operation, and logic of capital itself.

There is no way forward while economic and political power remain dominated by the rich. The only way out of the economic crisis is by vesting power in workers, the people who actually produce the wealth that society depends on. The rich and their outmoded system are a drag on everyone and are not needed in any way; they are a major obstacle to the progress of society; they add no value to anything and are unable and unwilling to lead the society out of its deepening all-sided crisis.

There is an alternative to current obsolete arrangements and only the people themselves, armed with a new independent outlook, politics, and thinking can usher it in. Economic problems, health problems, and 50 other lingering problems are not going to be solved so long as the polity remains marginalized and disempowered by the rich and their capital-centered arrangements and institutions. New and fresh thinking and consciousness are needed at this time. A new and more powerful human-centered outlook is needed to guide humanity forward.

Human consciousness and resiliency are being severely tested at this time, and the results have been harsh and tragic in many ways for so many. We are experiencing a major test of the ability of the human species to bring into being what is missing, that is, to overcome the neoliberal destruction of time, space, and the fabric of society so as to unleash the power of human productive forces to usher in a much more advanced society where time-space relations accelerate in favor of the entire polity. There is an alternative to the anachronistic status quo.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.