Goods and services are consumed or go back
into the production process as investments. Some products cannot be consumed
and are obviously destined for production, where they will either transmit
their value or acquire more value. But just about everything may be an
investment and be counted as a production cost, even the most ephemeral and
immaterial. This means the contours of two separate departments are difficult
to define. Though it is clear that some goods and services transmit or acquire
value, and others do not. Some of the value produced is invested and the rest
is consumed. At least on the market there are two categories of exchanges, and
supply and demand must more or less balance out.
Capital’s priority is accumulation by
investing profits. Ideally, there would be no consumption, and investments
would produce investments that produce investments that produce investments,
and so on indefinitely. But consumption could just as well be the priority with
investments reduced to the essential, which is how things were before the
Industrial Revolution multiplied investment opportunities and their profit
making. This obsession for investments brought colonial expansion and the confrontation
of colonial powers. But investments cannot produce investments indefinitely. At
some stage, after successive transformations, the accumulated value must be
consumed. It cannot be transformed any further. Profits destined to be invested
restrain consumption, as they are a part of the value added by labour, which
adds up to the value of consumption. However, some consumption can be used to
increase the labour force, thereby increasing the production of investments and
ultimately of consumption. In the first stage, more workers must share the same
quantity of consumption. In the second stage, consumption goes back to its
previous levels for everyone. This would mean reducing wages to spread demand
more widely to include more workers. Then wages would rise to create a demand
for the growing supply of consumption. But private capital’s priorities are the
accumulation of investments and the profits that fuel it. So wages are kept low
and, as production grows, supply outstrips demand, unsold stocks pile up and
businesses fail. Surplus consumption can be sent abroad to supply colonial
occupation or to be traded for raw materials. But the great consumer of surplus
consumption, the one that is regularly resorted to, is war.
The Great Depression of the 1930s, when
countless millions had nothing to spend, was finally resolved by military
production on a vast scale, and by massive increases in government debts. The
process started in Japan and Germany. Then European nations followed suite with
more or less conviction, except Spain already subjected to the ravages of civil
war (1936-1939). Meanwhile in the US, Roosevelt’s timid attempts at getting
things going again, by building dams and granting small social benefits, were
not having much effect. But the Lend-Lease deal to sell arms to the UK slowly
started things rolling. And after the declaration of war the whole industrial
complex was harnessed to mass produce means of destruction, bringing
conscription and employment to everyone, even those with darker skins obtained
a few crumbs of the wartime cake.
The war had been such a success for private
capital that it became a habit. Though the level of destruction deployed in
Europe and the Far East could not be maintained. In fact Western Europe and
Japan were to be reconstructed under American tutelage. And in a sudden
turnaround that obviously inspired parts of Orwell’s novel 1948… sorry 1984,
the US and UK allies, USSR and China, became their enemies, and their previous
enemies, Japan, Germany, Italy and fascist regimes in Spain, Portugal, Greece
and Turkey, became their closest vassals. This old and new alignment – the
Soviets had been the enemy since 1917, which is why Hitler received
encouragement before he made a pact with Stalin and invaded Poland, a sort of
Saddam Hussein of his time – coincided with the dismemberment of European
colonial empires. Independence frequently involved low intensity warfare, and
following the Cuban, Algerian and Vietnamese examples, uprisings had to be countered
by constant mobilisation. As Europeans retreated, America advanced to fill the
gaps and oppose the thinly veiled support from Moscow and Peking.
War consumption paid with public debt and
reductions in social services and infrastructure upkeep, is the perfect
solution to capital’s surpluses. Vast value is created for pure waste and
profits are insured, but poverty spreads its dark shadow over tent cities and
caravan towns, and millions of children go hungry. And all that is in the
richest nations of the world (1). Elsewhere is often beyond description. Such a
situation can only be maintained by violence. The external force of the
military is reflected by the internal force of the police, and rising levels of
brutality are transmitted from one to the other with equipment and personnel.
As wealth concentrates poverty expands and those in between see their numbers
shrink. Then the wealthy must protect themselves with armed guards and mass
surveillance, funded by mostly public money. A police state slowly takes shape,
by almost imperceptible touches as has always been its method. The coup, the
Night of the Long Knives, the Moscow Trials are the crowning moments of a
methodical process. They give the control of brutal force to one person, who
governs by violence and terror. Even wealth is drawn into the spiral, and the
wealthy become mere accomplices. Might is Right.
Theoretically, this chain of events can be
interrupted or avoided altogether. If large numbers rise up to oppose the
violence, and if legislation constrains it, the escalation can be halted. It
happened in the US over half a century ago, with the movements for black civil
rights and for an end to the war in Indochina. So far the present actions
against state violence have only mobilised half the troops. Black Lives Matter
needs the support of a wide rejection of forever wars around the planet. Unfortunately
the circumstances have changed. Today’s military are no longer conscripts. They
are all under Draconian contracts. However, those who have enjoyed killing and
bullying in foreign lands can then join the police and continue those practices
at home. This time under very advantageous contracts that place them above the
law, a perfect opportunity for the more violent elements. In America, veteran
organisations have criticised the perpetual occupations of foreign nations and
the brutality they propagate. But their voices are muted and their numbers are
few, as it is probable that most disappointed soldiers go back to civilian life
and try to forget the things they have done under orders in uniform. This has
nothing in common with the conscription and pending conscription that concerned
all young adult men and their families in the 1960s and early 1970s. Back then
it was not about youngsters signing up in the hope of citizenship, or just to
escape poverty. It was every eighteen year old that could not be exempted in
some way or other, or was unable to dodge the draft by escaping to Canada,
Mexico, or wherever. The whole nation was involved directly. And once they
realised that the endeavour was pointless and was costing lives, severe
handicaps and vast amounts of public funds, not to mention the immeasurable
harm done to the local populations and environments, they rose up in sufficient
numbers to say enough is enough. The Johnson administration was obliged to concede
black civil rights, affirmative action and some social advances. And the Nixon
administration, under continuing popular disapproval, reduced and then ended in
1973 the presence of conscript troops in Vietnam. While some professional ones
stayed on for another two years, trying to prop up the puppet South-Vietnamese
government.
The 21st century wars have been
extravagantly publicised at their outbreaks, and then waged ever more secretly.
Media coverage is almost all in-bedded, and whistle-blowers are systematically
prosecuted. War has become a money machine that brings in huge corporate
profits and burns the nation’s wealth. It realises capitalist surpluses and
reduces societies to debt slavery. It kills and mutilates women and men,
children and elders indiscriminately. It ruins cities and leaves deadly
ordnance all over the place that lasts for generations. It cannot be justified,
and yet it is all the time. It becomes a necessity for the preservation of a
system, its economy and its ideology. A system based on plunder must develop
the idea of supremacy. Taking from others by force or cunning builds a sense of
superiority that needs to be confirmed by superior power. It can then become
systemic and crush all opposition. The masters of capital and their government
flunkeys have the same contempt for society as mobsters. Humanity and the
planet are their preys.
That power corrupts is not news, nor is the
corruption of power. But the level of corruption and the absoluteness of power
vary in time and place. And the travesty of power as an electoral process is
more or less convincing, from effective representation to binary choices
between two look-alikes. These days, electoral conviction is in free fall,
while corruption and autocratic power are rising steeply. Those trends are
linked. Corruption discourages popular support, and the lack of consent is
countered by tyranny, more corruption and force. That condition is well
established in numerous countries, some have never experienced anything else.
But now it is once again taking hold of the rich white developed nations.
Europe and North America are at a critical moment when the rise of gangland
culture may still be resisted. Or it could turn out to be irresistible (2).
When the power of money pervades everything and gross inequalities are accepted
as normal, when corporations dictate their laws to government and capitalism’s
financial house-of-cards collapses, only brute force can keep the power
structures standing. And brute force is difficult to counter. So far it has
only been successfully opposed by superior brute force coming from elsewhere.
The people cannot out-gun their government as long as it controls the
intelligence and security services and the military, and writes the laws that
bind them. In very particular circumstances the military have sided with the
people, the Carnation Revolution in 1974 Portugal, or stayed in their barracks
as they did during the regime changes in 1990s Eastern Europe. However,
military support has also been divided and led to civil wars. Russia
(1918-1920), Spain (1936-1939), and Syria (2012-?) are telling examples. In
general, the military stay with government, and sometimes become the government
in a more or less open manner, most obviously in North Korea, China and Egypt
on a long list. As for the ancient practice of resistance by heading for the
hills (3), drone surveillance and armaments would reduce it to very remote
places where only small groups might survive (4). Armed uprisings are an
illusion, because the balance of power is too unequal. The people do not have
the fire-power but they do have the numbers, and if they are determined they
can bring everything to a standstill.
Capitalist profits have piled up debts and
wrecked the planet. Now that finance and climate are collapsing, capitalism has
its back to wall and will become increasingly dangerous. The pandemic is just a
foretaste of the job losses, business failures and debtor defaults that will
result from financial and climatic chaos. It has also highlighted the nefarious
privileged incompetence of the ruling classes, and the brave solidarity of
workers who have kept all essential things going, risking health and life.
Governance has been dismal, incoherent and panicked. Some world leaders spend
their days watching TV, some wander around looking unkempt, some strut about
making promises they know they will never keep, and all still manage to pretend
they have the people’s interests and wellbeing in mind. But the ranks of their
supporters are thinning by the day. Their credibility is evaporating in the
heat of events, and the emperor’s clothes are seen by increasing numbers to be
non-existent. As America stumbles towards the third of November and age-old
divisions come to the fore, few expectations can resist the test of reality.
The growing tensions show no signs of abating, and many are wilfully stoking
the fires. Joe Biden may save America from Donald Trump, but it is less likely
that he will manage or wish to save America from itself. And there are no signs
of change elsewhere. Other regimes are more intent on tightening the screws
that keep them in power, than on opening up to a post-destruction world.
Today’s youth are faced with the growing intensity of climatic events and the
rising violence of police states. They cannot count on much support from their
elders who are already chained down by work and debt, though that may be about
to change with vast job losses and financial breakdowns. As for the Boomers,
COVID is taking care of them. Though there are exceptions, notably those
enrolled in religious creeds, today’s youth are the brightest best informed there
has ever been. They may yet save humanity from the savagery of ultimate
capitalism.
1. Fidel Castro observed that Cuban
children could be seen begging on the streets of Miami, not on those of Havana.
2. A play written by Brecht, The Resistible
Rise of Arturo Ui, covers the 1930s. And Solzhenitsyn commented somewhere that
he was hearing in the streets of Moscow some of the vocabulary used by the
crooks and gangsters who more or less ruled the Gulag Archipelago. He
considered this to be a sign of their ideology and methods spreading through
society. A few decades later Putin and his Barons could well be classified as
Robbers and Racketeers.
3. The Art of Not Being Governed: An
Anarchist History of Upland Southeast Asia by James C. Scott. Unfortunately it
is long and very repetitive. That part of the world has been named “Zomia”.
https://en.wikipedia.org/wiki/Southeast_Asian_Massif#Zomia
4. The Pashtun
occupy a vast mountainous area astride the
border between Afghanistan and Pakistan, which gives them a relatively safe
haven. The NATO (US) forces in Afghanistan have violated Pakistan’s airspace
quite frequently, but have not tried crossing the border with troops, except for
the attack on the Laden compound. That insurgent advantage occurred in Vietnam
and Korea, but it remains exceptional.