Inequality and Democratic Egalitarianism

'Marx's Economy and Beyond' and Other Essays

Mark Harvey, Norman Geras

• Publisher: Manchester University Press
• Year: 2018
• Print ISBN:
  9781526143686
  9781526114020
• eBook ISBN:
  9781526114051
• Topic: Economics
• Subtopic: Political Economy
• Index: Economics

This book arose out of a friendship between a political philosopher and an economic sociologist, and their recognition of an urgent political need to address the extreme inequalities of wealth and power in contemporary societies.
It provides a new analysis of what generates inequalities in rights to income, property and public goods in contemporary societies. By critiquing Marx's foundational theory of exploitation, it moves beyond Marx, both in its analysis of inequality, and in its concept of just distribution. It points to the major historical transformations that create educational and knowledge inequalities, inequalities in rights to public goods that combine with those to private wealth. It argues that asymmetries of economic power are inherently gendered and racialized, and that forms of coercion and slavery are deeply embedded in the histories of capitalism.

1
Journeying through Marxism

This book is the unlikely product of two people who somehow managed to collaborate across what was historically a yawning sectarian chasm: one with a Trotskyist formation (Norman Geras) and one with a Maoist one (myself). This by no means exhausts the possible incompatibilities between someone with a long and prolific academic career, and someone with a truncated one; a dedicated political philosopher, and a disciplinary floater between history, political economy and sociology. And yet, close friends from undergraduate days in the early 1960s, we remained so until and beyond Norman's untimely death in 2013. We met as undergraduates in Oxford in 1961, Norman having just arrived from Zimbabwe, myself a Londoner. We shared a passion for the cinema, then experiencing the experimentations of the New Wave. Typical of the forced choices demanded many years later on Norm's blog, Beethoven was ‘the best’ classical composer (Norm) and so was Bach (me). Only one correct answer. But it was politics that drew us together, including Norm's anti-imperialist support for any ex-colonial team that could beat England at cricket. We both survived the Cuban missile crisis (just), and were struck by how Oxford University pretended it wasn't happening, along with the rest of life outside its complacent elitism and privileged rituals.

Across potentially insurmountable sectarian and experiential divides, both wedded to historical materialism and realism, over the years we had many never-ending discussions and some fruitfully interminable disagreements. Yet, late in life we found how we surprisingly agreed on Marx, and how to move forward from Marx, and so decided to write a short book, succeeding only in completing an extended essay before he died: Marx's Economy and Beyond, which appears below as the centrepiece of this volume. Norman had never written a co-authored piece, an aspect of his single-mindedness. He also would never countenance any alterations by anyone of any text he had deemed finished: not even a comma to be added or subtracted. So the text of that essay in this book is as he approved.

When we met in the early 1960s, we were already both politically committed adherents to a historical materialist understanding of capitalism, and, even before university, had embraced Marx's Capital, the Communist Manifesto, the early Economic and Philosophical Manuscripts as foundational works influencing world history. Later, although by then in divergent political trends, we had each at taken part in groups dedicated to systematically ‘Reading Marx’, inspired by Althusser, although neither of us swallowed either his theoreticism or his particular political reading of Marx.

One of Norm's early papers, ‘Essence and Appearance: Aspects of Fetishism in Marx's “Capital” ’ (Geras, 1971), reflected a shared interest in the epistemology of historical materialism, and of Marx's understanding of the scientific status of his political economy. Norm's route to developing this interest had been through careful exegesis of Marx's texts, in this case the idea that the appearance of prices attached to commodities in markets was a real phenomenon rather than an illusion, but one that required a scientific understanding of the underlying processes generating variations in price, which for Marx lay in the variations in the abstract labour time embodied in them. It is no accident that the essay in this volume returns to that important point of departure for us both. But, my route to adopting this realist theoretical epistemology had been a doctoral thesis on, and then a post-doctoral research fellowship with, Jean Piaget, and the dialectical materialist epistemology advocated by him. Rejecting both social constructionist and philosophically a priori epistemologies, we broadly shared an epistemological outlook, although one as a political philosopher, the other as a theoretical and empirical social scientist. That was an important condition for being able to discuss issues – such as a universalist position on human nature (Norm's) – and disagree, because at least we did agree on what sort of argument or evidence counted.

Norm became a university academic and for some time pursued his exploration of Marxist texts, first in his examination of Rosa Luxemburg's life and works, and then developing a major thesis affirming Marx's concept of a distinctively and universal species being: human nature. Always more than exegesis, these works identified and developed ideas present in Marx, as well as dissecting their weaknesses and absences. Indeed, in affirming Marx's conceptualisation of human nature, he also both clarified and elaborated on it, drawing notably on its moral and political implications, a thread which was to become the hallmark of Norm's later work. He reworked and advanced Marxism, rather than mummifying Marx in a conceptual mausoleum. Indeed, in his works on Marx and justice he had already argued how the concept of exploitation, present in Marx, required a much more developed conception of the just distribution of the wealth produced by human labour (Geras, 1985). That is more than echoed in the central theme of this book.

Later, his work took a new turn – almost an epistemological break – deploying a political and moral philosophy from his earlier work to an understanding of the holocaust, first, and then, more generally, of crimes against humanity (McLellan, 2012). The consideration of ‘political philosophy after the holocaust’ (Geras, 1999) involved a wide ranging study of a uniquely significant historical event, raising moral issues poorly or insufficiently faced by the political left. Likewise, developing his universalist, human-nature-based approach to the twentieth-century institutional establishment and legal conceptualisation of crimes against humanity (Geras, 2015) required historical research, albeit secondary, into a wide range of twentieth-century atrocities (torture, genocide, war crimes), as well as the legal history leading to the emergence of international courts and tribunals. Confronting these realities of twentieth-century history in all their enormity, Norm was giving a magnetic loading to a moral compass which he considered essential for any democratic and egalitarian socialist perspective. It is a moral philosophy now fully addressing major historical realities, rather than his earlier one primarily based on interpretation and evaluation of texts – however historically significant these were. Regimes, governments, states, dictators, are to be judged by the bearings of this compass, grounding any politics of social transformation more broadly than one in terms of ‘which side are you on’ or ‘my enemy's enemy is my friend’ with respect to US or capitalist hegemonic imperialisms. No regime found wanting by such a compass could be morally – hence politically – supported. Moreover, a universalist human solidarity urges political measures to confront perpetrators of genocides and crimes against humanity. This underpinned both his justification of a war to remove Saddam Hussein and his subsequent retraction of war as the means to do so: a moral and political quandary which he faced unflinchingly.

I followed a more unorthodox life course. After a brief spell as a university lecturer, I quit academia to become a building labourer, much influenced by the political atmosphere of the times (the Chinese cultural revolution, the anti-imperialist Third World movements, and the student and women's movements). I was employed in a Labour-controlled local government ‘direct labour’ organisation, building, converting, and maintaining social housing then publicly owned by the municipality. For the next seventeen years, I was an active trades unionist, both within a workforce (with 1500 workers in 1974 when I started) and developing links with tenants’ associations. In spite of never disguising my class and educational background, I was a democratically elected to be shop steward, chair of the shop stewards’ committee and convenor steward for several spells.

We fought many struggles, including, but well beyond, the bread-and-butter issues of wages, safety and conditions. In the 1970s and 1980s, we were the first to gain a 35-hour week for manual workers; we won a significant equal pay case for women building workers. We organised strikes, held social benefit events and raised regular and substantial collections for all the major union struggles of the day: defending the nurses in the NHS and the miners during the miners’ strikes, and supporting the fight against the insecure and illegal, but very widespread, phenomenon of bogus self-employment in the private construction sector: employer tax evasion on a grand scale which continues to this day (Behling and Harvey, 2015).

However, the 1979 election of Thatcher with a radical right pro-market politics changed everything. Within months, a moratorium was placed on all new council housing building, followed by the imposition of compulsory (i.e. rigged) competitive tendering for all work undertaken – a political strategy pioneered in the building industry. From then on, as Direct Labour Organisations lost work, we were subject to successive waves of redundancy – rippling right across the public sector construction industry in the country. Moreover, this attack on public-sector production was complemented by the highly subsidised sale of publicly owned housing stock to sitting tenants. I was finally made redundant in 1991, when only 65 direct labour building workers remained from the initial 1974 workforce, and council-owned housing stock had been reduced by more than half. The union struggles against the waves of redundancy were the bitterest of all: the effects on life-long building workers devastating, indeed, in a small minority of cases, lethal.

For me, personally and politically, the experience was life-changing across many dimensions. Here, I will only briefly summarise a couple of key aspects of direct relevance to the main themes of this book. The first involves a radical revision of the understanding of markets, which were assumed by Marx to be ‘perfect’ in terms of competition, price setting, value determining, whether for labour, capital or all forms of commodity, in intermediate markets for inputs into commodity markets, or end markets for consumers. The privatisations of the Thatcher government were what I now understand as ‘politically instituted’ markets, of which Direct Labour Organisations were but a small if pioneering example. The government determined what kind of enterprise could compete over what kind of contracts. They set the rules of competition. In many instances, price regulation and rates of return on capital were politically fixed. But, once in place, once ‘instituted’, these markets then assumed a dynamic of their own. They worked out their logic – to the desired end of destroying public enterprise at the expense of private commercial enterprises. It helped me understand how I – along with many thousands of others – lost my job. This experience of manifestly politically instituted markets, however, then led to a more general reflection on the historical and social economic organisation of markets, so giving them a more socio-spatial and historical fix than allowed for within Marx's conception of ‘the economy’.

Second, one of the main aspects of this politically instituted market concerned competition between direct employment and bogus self-employment, the dominant characteristic of the workforces of private contractors. This led later to a reflection on how labour markets in general were also exemplary of politically instituted markets, from the historical outset of industrial capitalism and before, defining who and how labour is sold, the nature of the contract between whom, under what conditions, including employment protection, sickness and leave entitlements, pension rights and so on. The price of labour, in particular its tax and social security/insurance elements, and the relation between price and skill qualification are politically conditioned, if not quantitatively precisely prescribed, in ways that differ markedly from country to country. The minimum wage, for example, is a political price institution, taking different forms at different historical times in different countries. This political pricing of labour fundamentally undermines Marx's conception of a process of price determination within an economy abstracted from political and social processes, related only to intra-economic concepts of value and socially necessary labour-time. It requires a different vision of ‘the economy’, more radically historical and socio-spatial than that of a capitalist mode of production superseding a feudal one.

Third, and with much more agony, I needed to understand defeat – recognising the depth of defeat without becoming defeatist with respect to radical societal transformation. In spite of all collective efforts of the labour movement and the social movements of the time, tenants did not storm the streets in defence of either social housing or the public sector workers that built and maintained them. Instead, in very large numbers, they bought their flats, preferring private ownership, and not just because they were offered them at knock-down, state-subsidised prices. We lost the battles to defend public sector coal mines, railways, steel production … clinging on only to a much modified public sector National Health Service. Many of the workers I worked with thought their job was just another job, nothing special about being ‘public sector’ to be defended as such. Even under a Labour local authority, power relations between management and workers, its disciplinary regimes and productivity incentives, were different but not so different from any capitalist private enterprise. The division between manual workers and managerial staff, wage inequalities between top council officials, higher management and the lowest-paid clerical or manual workers, and employment security and pension entitlements, exhibited considerable hierarchies of inequality, also mirroring the private sector. Likewise, tenants had little collective investment or real social ownership of their built environment, but were subject to state bureaucratic regulation down to what colour of paint went on their front doors or living rooms (I worked with painting gangs for some time). They certainly benefited from social rents – and when these were raised, did collectively engage in rent strikes unknown in the private market sector. Yet the difference between social and market housing was not enough of a difference to form the basis of social resistance to the privatisation of social housing on a regional or national scale. Although the postwar slum replacement by social housing was a major historical and social transformation of the living environment of the working class, there was no equivalently ambitious transformation on a similar scale to modernise and replace the tower blocks, with their regulated maximum room dimensions. They instead often became social and ethnic ghettoes, confining their inhabitants to the standards of a previous epoch.

This was just one tiny corner of the world – although replicated across most of the public sector. But public or state ownership of ‘the means of production’ did not make enough of a beneficial difference, lacking vision of continuing social and progressive transformation. It was also a productionist vision of socialisation, rather than one that included rights of social citizens as producers and users of public goods. Workers’ states not citizens’ states. It replicated the dichotomous producer–consumer split of the private sector – a feature now reinforced by the political construction of the citizen as consumer of public services. That should not be surprising within polities and economies dominated by capitalist enterprises, including the period when nationalised industries were claimed to occupy the ‘commanding heights’ of the economy. However, these ‘failures of socialism’, parochially and globally, have deeper roots. On the left, we need to look at these failures squarely in the face.¹ Excuses that none of the experiments were really ‘socialist’ in spite of being proclaimed so; or that they occurred in the wrong kind of society (not advanced enough); or that they were limited to one country or another; ring ever more hollow in the absence of any plausible prospects of real, right and global ‘socialism’.

Many of these socialist experiments were undoubtedly influenced by Marx's analysis of capitalism. In two critical respects, his analysis of the economy limited and narrowed the view of the overthrow of capitalism and the vision of socialist alternatives. As just indicated, Marx's view of capitalist economies was under-politicised, whereas markets and the capitalist organisation of production are in significant part not just regulated but constituted politically, in ways that we explore in this volume. Second, and relatedly, state ownership of the means of production could too easily be equated with socialisation of the economy, on the one hand, and, on the other, with the abolition of the purely economic relations of production generating class divisions within society, and, more widely, the basis of all significant inequalities in society. The state takes ownership of the means of production, and the basis of the class division between bourgeoisie and proletariat is ipso facto dissolved. It was an analysis wh...

Table of contents

• Cover
• Title page
• Copyright page
• Dedication
• Contents
• 1 Journeying through Marxism
• 2 Marx’s Economy and Beyond
• 3 A Note on Profit and Inequality
• 4 Making People Work for Wages: Instituting the Capital–Labour Exchange in the United Kingdom
• 5 Coercive Capitalisms: Politico-economies of Slavery, Indentured Labour and Debt Peonage
• 6 The Long Road to Democratic Egalitarianism
• Bibliography
• Index