BOKO

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BOKO

BOKO
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NOVEMBER 18, 2010 8:52PM

The Lustrous Aura of Capital

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The Clock, the Mill, and the Machine 

Technology is an interesting fact.  It exists, like any social fact, as something quite apart and separate from its origins.  When we encounter it in the marketplace, we're impressed by certain features of it: speed, versatility, even outward design.  When we encounter it in the workplace, its role seems merely functional.  It saves time.  It helps us to work faster, or to put it clearly, to do the same amount of work in less time.  It compresses time.  And so, since the industrial revolution, one of the main features of capital, which is wedded for historical as well as purely functional reasons to technology, is to compress time. 

When Marx wrote to Engels on the difference between machines and tools, he emphasised the ability of machines to remove workers from direct participation in the work being done on materials in the production process.  So that what drives the machine is less important than the portion of direct processing it removes from the worker's control.  He wrote:

"...if we look at the machine in its elementary form there is no question at all that the industrial revolution starts not from the motive power but from the section of the machinery [called] the working machine." (Marx to Engels, 6 July 1863)

He works out this new relationship between workers and machines in a discussion of the industrialisation of spinning, one of the first production processes brought under the control of machines in England's mills.  Much of the engineering employed in the mills was first developed in Switzerland by clock-makers.  The clock also allowed work to be timed and serialised in a way that was previously difficult and inexact.  Marx wrote of the clock that "the whole theory of the production of regular motion was developed through it" (to Engels, 28 Jan. 1863).  In spinning manufacture, the transformation to industrialised production occurs not only through the originating source of power---the focused current of a river turning the blades of the mill---but in the "elimination of that portion of human labour which is not merely 'exertion of power' (as in treading a wheel) but which is concerned with processing, with direct action on the material to be worked up" (July, 1863 letter).

This is how capital is able to compress time and squeeze far more surplus labor out of workers' activities than any previous system.  In this sense, strictly speaking, capital raises workers up by making them attendant on the machine rather than being directly involved in the processing of material.  And while this may not be the case in all parts of the capitalist system, or in all types of work, even today, it's true in the most profitable, most industrialised parts.  There the workers' own physical labor may, and indeed always is, required, even in the case of manufacturing operations based on robotics (for maintenance, fine-tuning etc.)---but this direct activity is applied to the tending of the machine.  While the machine tends to the processing of the materials used in production.  The workers work at the pace and rhythm of the machinery, and it's in this sense that machines come to determine and control much of the capitalist production process.

Again, the difference, the radical rupture, in the historical development of capital, is a difference in a social relationship from the past---in the case of the history of technology, not the relationship between people and machines literally (often the ridiculous, objectified way it's presented to us by the vantage point of capital), but the new way in which machine-controlled work is embedded in production.  This also implies embedding it in the basic social matrix of capitalist/worker, exploiter/exploited.

This is the real place of technology in the capitalist system.  It frees workers from much of the direct processing previously accomplished in what we today call handicraft.  Of course some of this type of work is still required in manufacture, and some is still done voluntarily either as a pasttime or career: "artisan work."  These categories are exceptions, though, and don't describe the most profit-intensive areas of production, where much of the actual work is "carried out" by machines, tended to in every case, in one way or another, by workers.  It is to the increased speed of movement of machines that capital looks for one of its main sources of surplus labor, and this explains why the mechanical basis of production is often treated better than the workers themselves.  Even workers take on this attitude at times, becoming the functionary of the machine they tend to, rather than seeing the machine's operation as a function of their presence.  

And machines don't arrive magically on the factory floor, or in an office.  They, too, are the product of labor.  They represent "dead labor" in the system, and as such they factor into some of the trends in the system as a whole that cause crises, including the tendency of the rate of profit to fall.  Still, in the history of capital's rise, as more and more "surplus" was derived (at least for a while) from machine-controlled work, the illusion arose that workers were somehow less necessary.  At the same time, at the objectified level of the system, in its "official account," we find claims being made that workers had been "freed" finally from the harshness of all menial work previously performed directly by human hands.  The basic conditions of manufacure are taken as universal, and the social relationship of wage-labor exploitation vanishes.  It becomes a system with a head but no body.  And the process of abstractification and obsfucation is taken several steps further when the death of industrial labor itself is announced.  The extreme version of this can be found in contemporary utopian accounts of the "postindustrial economy."

Of course the entire economy is not "postindustrial," and more importantly, even in those sectors which are defined by computer-based work---information gathering, processing and analysing; different forms of engineering; logistics; consultancy---there has been no real elimination of labor.  Its conditions appear to be transformed but there has been no corresponding absencing of exploitation.  Profit is still derived in these types of work from surplus labor.  And the class relationship has not altered one bit.  If anything, subsumed as it is under all the propaganda about workers being "free agents," class becomes more difficult to track, making its sudden eruption in times of crisis seem even more chaotic and disorienting, as if it were emerging out of nothing.  In the 90's when huge numbers of positions were suddenly eliminated from the administrative layers of "information-based" companies, it seemed to many as if some cardinal rule were being violated.  How can my "freedom," my status as a "free agent," mean that I'm powerless to fight back?  Of course this is the brutal rule by which labor is tied to management always---and not just some side effect, some glitch or bad after-taste unique to middle class "downsizing" (the fact that the technical-theoretical term was used to describe and at the same time explain away the mass firings is revealing). 

 

Predation, TV, and the Culture of Idiocy

This deception---that highly technologised national economies are somehow not still based on the exploitation of workers---is what we mean by the "lustrous aura of capital," and not simply the constant hawking of new technological devices for personal consumer use.  To some extent capital has tried to sell itself to people on the basis of its lustrous aura since the beginning of the industrial period.  The attempt to obscure the real social condition of labor is not solely or even mainly propagandistic.  It is a self-sustaining necessity of capital, of the system's reproduction. 

In times of crisis the system turns to innovation, and especially to technological innovation involving new machines of all sorts, in order to eke out more surplus labor, and thereby restore the value to the system that has been lost.  That's why in periods of crisis we have the sudden appearance of new technologies, of whole new industries, on the scene.  In the 90's it was the hi-tech and dot.com businesses.  After the '01 recession, it was new forms of finance or at least very old forms being dressed up and used in new (and far more toxic) ways.  Technology can be abstract, too.  The complex chains of debt developed in the lead-up to the banking crisis of '08 comprise a new technology of trading.  Its algorithmic cogs were supposed to fit perfectly, and like the loans on which the process was based, it was supposed to eke out more value than the more pedestrian, "traditional" methods.  In the case of the loans this meant abandoning the sound risk assessments of the past: adequate income verification; a 3-to-1, income-to-premium ratio; a reasonable rate of interest etc.  The methods developed to hide extreme risk were even advertised in the financial industry much like new technical gadgets: brilliant, dazzling, revolutionary.  Of course, as in all cases of the emergence of a new technology, labor was required.  As well as a target consumer to prey upon.   

Television was invaluable to the system in the lead-up to the present crisis.  It was used to sell millions of people on the idea of "flipping houses," a buy-low-sell-high investment strategy.  But of course this was always advertised as an activity for the poor---a "get rich quick scheme" that appealed to the basic, opportunistic desires of the petty bourgeoisie, always looking for a way to get to the other side of the exploiter/exploited divide.  This encouraged people to do something idiotic: to get into a highly leveraged financial situation, to take out loans they couldn't afford to pay back, the infamous sub-prime loans so talked about since the crash of the securities market built on them.  As the circuitry between lending, real estate, and finance heated up, whole new cable TV networks dedicated to "house flipping" came on air.  Now that prices have bottomed out in the housing sector, many of these same media outlets have turned to redecorating as their focus---always one part of the "flipping" phenomenon, but with a whole new meaning for the poor suckers who bought into the scheme and who are stuck with the very real consequences of a mortgage they can't afford to pay and a house that nobody wants to buy.  Many of them are properties that few people ever wanted to buy, no matter how much of a "makeover" they underwent, since they're located in low income areas where property prices are always depressed.

The use of television for predation is nothing new.  Remember in the early 80's when Reagan, along with plenty of help from a cynical television-driven media, successfully portrayed himself as a defender of all that was good and true by firing thousands of air-traffic employees for exercising their right to strike.  The fact that their job involved risk to the public is insipid as a reason for making them an exception to basic bargaining protocol.  The same could be said of any truck driver.  But one is reluctant to point this out to a TV news reporter lest one receive the inevitable response: "Well, then, the president should be able to fire striking Teamsters, too...."  The willful idiocy of opportunism only runs in one direction. 

Still the point is the same: what the spectacle of TV represents is not so important as what the spectacle does for the system.  It becomes vital during a crisis because the system has become highly centralised and financialised, and this type of system needs a constant source of value besides diminishing returns on its investment in labor.  With colonial slave labor, and all types of uncapitalised, vagrant and agricultural labor, exhausted or nearly picked clean, and the utopian project of globalisation of trade under threat by multiple anticapitalist movements (indigenous, anti-globalist, ecological, and local labor movements to name only a few groupings), the system has to find other, more "artificial" and somewhat more indirect means to exploit labor.  Its entire organic structure is breaking down.  TV, with its desperate, extreme, infomercial version of everything from real estate, to politics, to reality itself (as in "reality TV"), provides a front-row view on the psychotic social-economic collapse.

As predation has become more obvious, capital-as-spectacle has had to slide elsewhere to give people an experience of feeling "free" of its influence.  These are the moments of joy we indulge in online: pornography, self-entertainment, celebrity culture taken to disturbing, intrusive extremes, up to and including the real-time global tracking of our favorite celebrity commodities.  Freedom here is not free, though, any more than hate is love or war is peace . . .

 

 

 

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You are, without a doubt, the finest economic/marxian theorist on OS. I print your stuff out and study them at my desk with a pencil.

Although I love reading the "practical political" stuff, your stuff is even more important, as it shows us the economic, social and historical milieu within which it all takes place.

I hope you stay on OS for a long time to come. You are very valuable. Rated.
Well said. Orwell would agree, as do I.


^R^+++
Any machine that takes a job away from a human being should be destroyed immediately along with its inventor chances are more than likely that this would be an environmentally sound practice in most instances and if we make a few mistakes… woops. I think Ted Kaczynski was a hero so what if his manifesto was incoherent everyone can’t write a manifesto his talents lay in vermin removal. There should be no where on earth that his brother and sister in law can hide.
Are we allowed to write Ted K? I would love to get his opinion on the current financial crisis. Somebody should write to him
Rw - Thanks. I feel it's time to turn to more present-time subjects, less theory, more of an activist orientation.

skypixie - Orwell was a good sort.

Jack - Marx saw the coming confrontation between human beings and machines. I don't think it'll happen quite that way though. It's a social confrontation we're headed for.
marx is brilliant, and visionary but also over a century old.
what technology is perfecting at times it seems is the ability of the exploiters to exploit the exploited.
technology in human hands seems to be inherently applied for creating disparities. its not the technology that does this per se, its the human ego channeled/colored through technology.
so, it would seem, what we need is a technology for alleviating disparity. various technologies that are purported to do this at first seem not to work out in the long run. eg one I am intimately familiar with -- computers, cyberspace, software/hardware, electronics etc
vzn - I certainly wouldn't present Marx as a contemporary. He's a classical political economist whose insights remain relevant, and largely overlooked except in the grossest ways, by those who manage the capitalist system today. I would make the distinction between technology and science. Technology is what capital uses to squeeze more surplus from labor, and as such it's part of the social matrix. Science is, too, of course, but it's also a method, and a worldview. The people I've met in my life that I admire most are scientists, including environmental engineers who work on fixes to ecological problems, only they're problems created by capital, which also employs them. This is a contradiction they all notice, but can't do anything about under the current system. Imagine what science could do if it were freed from the constraints of capital.
Good analysis. The latest industry to pop is the housing industry. The country really doesn't need any more dwellings. There are more bedrooms in USA than there are people. There are growing spots in the country who do but don't look for this industry to make a comeback and watch prices continue to fall. The next to collapse will be commercial property which is also overbuilt.
David - You may be right about commercial property. Some huge development deals in Manhattan, for instance, continued right through the crash, although they were "downsized" somewhat. Still it's a strange definition of modesty when they only cut a few billions off the price-tag. Some of this has a different funding structure though. Hard to say....
The word for the day is, simulacrum.
old new - I don't get the reference. The simulacrum is a philosophical term. TV is not simulacra, it's quite real, and we're dealing here with the real economic effects of certain of its functions in the social metabolic.
The clock, the mill, and the pacemaker; we even have machines in our body now. Good points about tools v. machines, I never thought about it, but the "motive power" is not the important thing like you/Marx say. TV: "quite real." Indeed. It wormed its way into our private lives a long time ago and serves the needs of money manipulation and control.
rate
Dr Lee - The machinic is now everywhere, it's the main term of capital. TV has a contradictory relationship to power, too. For instance, I was just watching Dylan Ratigan on MSNBC. He was reporting on how some banks are taking advantage of the general chaos of the foreclosure mess to foreclose on homes of people who are actually up-to-date on their payments. And courts are helping them. But the way this is presented is to direct anger and frustration right back at the same system that's causing it, as if the solution lies there. The social "circuitry" is always presented as such, as circular, on TV, so one gets the feeling that there's no way out. Of course, there is. There are many alternatives to the present system, but they all take social needs into account FIRST, and profit or value only in a secondary sense. One never hears about such possibilities from anyone on TV.

Davey - Not yet. Soon. If we don't find alternatives and pursue them...
What we need is a couple a big SWP blokes to pop Rupert Murdoch right on top of his shiny, pointed head. That'd be a good start anyway. Yeah.
You and Rw sure are stirring up a shit storm on OS! I think the liberals believe you're coming for their head, the conservatives believe you're coming for their bread, and is Charles Nelson Reilly really dead? God, I'm old. Anyhoo....good luck.
Rated!!!
Tracy - I don't think anyone is advocating violence. Yet. For the most part.

kid - Let the shit fly!
Sorry I don't have much time to comment these days. Currently bailing out the house from the latest downpour. Many of my neighbors woke up with water up to their knees... Anyway, I am reading you.~Manfred Max-Neef is really good (as is Žižek) at speaking from the point of already having assimilated the lesson. I value your voice.
inverted - Thank you. The WFC is a worthwhile project, I guess, but it falls into the category of a lot of "social forum"-type efforts that I don't think go nearly far enough. Zizek is more variable.
aesop - Per aspera ad astra
I'm with you on the link between TV and predation. Also:

"the mechanical basis of production is often treated better than the workers themselves. Even workers take on this attitude at times, becoming the functionary of the machine they tend to, rather than seeing the machine's operation as a function of their presence."

Yep. I worked for a while in a plant that produced paper for fax machines and cash registers and such (was in the Machinists & Aerospace Workers, a really shitty union btw, or at least my local was). Basically, it was a giant building full of machines which converted very large rolls of paper into small rolls of various sizes and types. I started out on the receiving end of the process; the rolls came off the machine onto a table, and we had to beat the cores flat with inch thick steel paddles; after an hour or so your hands are bleeding all over the paper, which is frowned upon of course but what are you gonna do. Eventually you get calluses or you quit. Later I became a machine operator, a fairly complicated, technical job, but even (especially) from that end, it was the machine that mattered, not the people around it. The operator sets the machine up for a given run of product, calibrates it, tends it, feeds it, and his/her performance is evaluated solely on the basis of how fast that machine is spitting out rolls of paper to the bloody-handed roll pounders at the other end. Welcome my son, welcome to the machine...

You say of technology:

"It saves time. It helps us to work faster, or to put it clearly, to do the same amount of work in less time. It compresses time. And so, since the industrial revolution, one of the main features of capital, which is wedded for historical as well as purely functional reasons to technology, is to compress time."

I realize the issue here is capital rather than technology as such, but from the standpoint of someone (as I mentioned on your previous post) who is both owner and laborer in his own enterprise, compression of time is strictly a virtue. Let's say I'm building someone a set of stairs for instance. The trick on bidding a contract like that is to not bid so low that you wind up shorting yourself, and not to bid so high so that you don't get the job. One of the main things, in additon to experience and skill, which allows me to complete those stairs at a price which is amenable to the client but which also allows me a decent profit is technology. Sure, I can hand drive nails rather than using a pneumatic nail gun, and I can use a handsaw rather than an electric circular saw, but no one does that these days, with good reason. The reason being that the job would take 4 or 5 days instead of a day and a half. If we throw in a third party here, let's say a laborer I might hire to get the job done sooner because the owner is expecting guests that evening and wants it wrapped up by then, there is no question that the laborer would much prefer using power equipment than trying to do his job the way a medieval carpenter would have to. For these reasons, technology seems to me a beneficial thing, rather than just something wedded to capital for nefarious purposes. Let's step outside the marketplace for a moment and look at another example; if I have to cut a bunch of cordwood to use in my fireplace, and I'm given a choice between cutting it with a chainsaw or cutting it with an axe, I'm going to choose the chainsaw every time. Why? Because I'd be insane not to. I guess the point I'm making is; despite the example I gave of the paper factory, technology is my friend. It is useful. It allows me to make money, and it makes my life easier. Are these not good things?
Re-reading my comment, I see a serious error of sentence construction towards the end there, but mainly what I see is an odd dichotomy. On the one side there's the bleeding hands of those paper pounders at the factory, and on the other there's the way that chainsaw saves my own hands from bleeding while I'm cutting cordwood. Technology predates capitalism is what I'm saying I guess, and it does more than serve as a way for capitalists to squeeze more profit out of labor. Humans are, in some ways, technical animals; it is part of what being human is.
nana - In terms of your first example, when you worked in the paper plant, you were experiencing what it's like to work with the rhythm and at the timing of a machine. And workers were judged according to "Taylorist" measurements taken from the pace of the machine. But in the second example, where you do the labor yourself, whether at work or cutting wood for yourself, you haven't really stepped outside the system. Where do the machines you use to do these things come from? You see, they come from exactly the same conditions of labor you described in your first example--a factory that makes chainsaws and chainsaw parts etc., where compression of time is a function of extracting more surplus labor for a capitalist. So, in order to enjoy the benefits of the compression of time accomplished through the use of a machine, you have to participate in capital, as long as you remain dependent on the system for your equipment. But if you don't think about where your equipment, parts, transportation etc. comes from, like many capitalist theories of political economy refuse to do, then you can regard them as non-labor. But they do represent labor in the system, just "dead labor," that is, they can't be put into operation and produce profit for anyone without living labor--yours in this case--being applied. This is part of the illusion of "free agency" as a contractor or other self-employed worker. Unfortunately there are even leftist theories built on this illusion. Also, we haven't mentioned the fact that you pay taxes, probably rely on credit to some extent, collect interest on the property you own--I mean equipment you use in your work as property--etc. etc. etc. These all represent linkages with the system. So in some ways the self-employed are MORE tied in with the social-economic system, since their situation actually takes on some aspects of both capitalist and worker. I'm not putting down the idea of "detaching" from the system, but what you've detached from in your case is your own direct involvement in wage-labor. Still, in order to have a more effective detachment and a deeper impact on the system, one can't do it alone--it has to be in some kind of group arrangement where different types of work in different segments of the labor force are all involved simultaneously. That's why so many movements for effective change seek to build alliances with other people in other parts of the economy. Good discussion. Great examples.
You are a good writer. I hope you are saving all of your writings for your BOOK. I have enjoyed your piece very much. I did read it twice , English is not my language.
Interesting post. And I agree with other commenters about your credentials as a Marxist theoretician. What would your view be on modern technologies that don't involve fossil fuels - such as permaculture, biointensive agriculture and the ancient Chinese technology of terra-aqua-culture for drought-ridden regions? It strikes me that these are "democratic" technologies" that don't involve a massive investment of capital (other than land). Did Marx even contemplate a post fossil-fuel world?
killemill - I didn't confuse assembly line work with capital, one is integrated with the other--capitalisation and industrialisation have accompanied each other for more than a hundred years, and the most profitable parts of the capitalist system depend on machine-timed work. Everyone agrees on that, even the capitalists. And of course I didn't project TV into the past, but there have always been means of propaganda, not to mention the power of the law which you point out. TV is a contemporary means of predation.

Simone - Thanks. I write these mainly to work things out--and as propaganda. I work with not-for-profits now.

Dr Bramhall - An interesting set of points, but I think they deserve a longer reply than I can offer here. I'll have to take up the "greening" of the economy in future posts. All very interesting methods, and it is possible to have innovation and a non-capitalist system. Marx was concerned about the effects of capitalism on the natural environment and he described the conditions of waterways around mills and coke plants with disgust. He even entertained the idea of a different pathway, but in more general terms. He was aware of the importance of environmentally sound methods of agriculture, and it's part of his critique of Ricardian economics, since Ricardo takes agriculture in the "all things being equal" sense and doesn't seem to see the quality of the soil, and the effects of different methods of agriculture on it, as purely economic matters, but rather belonging only to the "realm of technique." Since prices determine which crops will be planted in capitalised agricultural economies, and not the proper rotation for the local soil, capitalised, and for that matter modern industrialised, methods of farming tend to deplete the soil faster and more completely, even to the point where the most advanced fertilising techniques available today can't restore them. This has happened in desertified areas of China, where they DID do everything they were supposed to do according to the best technology, but since price determines planting there now (it's only rubber-stamped by the party), the land was ruined anyway. Really it's been shown time and time again that the most productive and least destructive form for agriculture is cooperative peasant farming, which was abandoned in large parts of the Chinese system. I think it's too early to tell whether people will really be allowed, on a large-scale, to go back to this method now that millions of agricultural workers have been told to return to the countryside. There's no reason to trust the Chines system--the party is run by capitalist technicians and bankers.
Simone - I should have said "counter-propaganda," or anticapitalist propaganda. But you get my drift.
Dr Lee - To get back to your contest of machines v. humanity. Michael Hardt and Antonio Negri, riffing on Marx, had some ideas:
"Marx recognized that the conflict between workers and machines was a fake conflict. "It took both time and experience before the workers learnt to distinguish between machinery and its employment by capital, and therefore to transfer their attacks from the material instruments of production to form of society which utilizes these instruments." [Marx] Now the new virtualities, the naked life of the present, have the capacity to take control of the processes of machinic metamorphosis."

In other words, imagine a society with machines but no capital, imagine freeing the machine from capital, and what capacities it could be put to for social needs, instead of profit. The trick is to not fool oneself into believing that this can happen through capital, that it will provide the means. We have to go outside it, we have to cause the rupture.
Sorry, Jack Heart also commented on the machinic, but in a different vein from the good Doctor.
What fascinates me is how Marx discussed how workers only need to work a certain # of hours every day in order to survive, pay rent, buy food and support kids. These are subsistence wages. Any work that employees perform above and beyond this is exploitation and the key, for a Capitalist, is to find ways to fool an employee into working this long.

I was reading about a number of situations from America's past and am writing an essay about this, one I would like to run by you, before I put it on OS. In any event, I was reading about 3 things:
(a) Pennsylvania's experience with coal miners in the 19th century, (b) the experience of indentured servants in Virginia in the 17th century.
(c) the experience of the pre-populist farmers in the Midwest, who tried to get their produce and farm goods to market by way of the big railroad trusts in the 19th century.

One of the things that kept all these folks working longer than they needed, was debt. By artificially raising prices of basic things above their "natural value," or even their natural "market value," they would force many workers to purchase these things on credit. Sometimes they would lower wages and raise prices at the same time, so as to increase the rates of indebtedness. This would force the workers or farmers to toil longer hours, harder (piece-rate work for miners and farmers) in order to escape debt.

The result is that the Employers were able to profit from workers' indebtedness in a way that enabled them to squeeze more labor out of their workers, much more, presumably, than they would have been able to, had these folks not been in debt. Debt was also a surefire way of controlling these folks, because they kept records of debt, and a skilled miner would have this record follow him from mine to mine, from company to company, from state to state.

So that's one principle.

A second principle has to do with students having too much free time and being able to challenge the government in protest, without risk of financial problems. Apparantly, Gustave Le Bon discusses this in his book, "The Crowd," and he said massive student protests were a major problem in 19th century France. He said students were acquiring ideas "above their station," and having too much knowledge, and little job prospects, the kids would take to the streets and protest. le Bon advocated using debt and increased costs for education as a means of preventing access to higher education, and ensuring domestic tranquility in times of high unemployment.

Today in the US, we have massive consumer and student debt.
What role do you see these forms of debt having in the current wage-labor system in the US?

Are these tools being used by Capital to arrest certain trends, such as increasing productivity that would make workers and such more free to work fewer hours and such? What is the sociological function of this new form of debt? How does it aid Capital? Just wondering....
Rw - Debt keeps control of some people, to some extent, for a time, if say, you have to pay on a house, you might be less willing to vote for a strike because you worry about how long it will last. This was discussed openly amongst capitalist elites in the '30's, and it was proposed that giving people the chance to own a home--with a steep mortgage payment of course--would be one way to keep workers under some degree of control. As things get really bad in a long term crisis, like the present one, though, this method obviously doesn't work very well: the more desperate people become, the more willing they are to take action because they feel that they have less to lose. It's not only workers who get more desperate, the system does, too. In our own time, debt--subprime loans--was used as a direct way of squeezing wealth from workers, and building investment for wealthier folks on top of it. It's due to the more centralised, more advanced nature of the system today that it has to turn to more and more desperate means to eke out any kind of return. This is also why using examples from the past in a directly analogous way to explain the present can be a little confusing. The system is actually in much worse straits today, and behaves in increasingly erratic, irrational ways.
"imagine a society with machines but no capital." This means machines with no owners. Who is going to be motivated to maintain them? Either your machines will break down quickly, or you will need a government bureaucracy devoted to maintaining them. A whole agency servicing the machines.
"imagine freeing the machine from capital, and what capacities it could be put to for social needs, instead of profit." Who determines social needs? Again, it will be a bunch of bureaucrats. Maybe a non-profit agency. How about a five-year plan?

Congratulations, you've just built the USSR! Maybe with a little less repression, but economically, they were a bust. Sure, the streets of Moscow weren't clogged with 3 hour traffic jams 24/7, but that's because you had to sit on a waiting list for 10 years to get a car.

Ever read what the coal miners had to say when the five-year planners didn't plan for enough soap? Ever tried working for 8 hours a day, covered with coal dust and not having a bar of soap to wash with? Wonder what the hygiene in hospitals was like?

You often find bureaucrats who are highly motivated and want to make sure the nation is clean. But, then, again, you find people in those jobs, too, who only care about adequately going through the motions. Hmm, not enough soap? We'll increase the next 5-year plan by 10%. Hell, maybe even 20%. So, the hygiene standards might slip a bit in the next 4 years.

The thing about free enterprise is that if the idea is a bust, the company and the private individuals who invested in it lose their investment. In Gov't, usually there's an effort to preserve the investment. If you have a big investment in fixed line phones, you don't see a need for cell phones.
Malu---I often find that the current Western economy is centralizing to a far greater degree than the Soviet economy ever was. And this is being done under the pressures of capitalism and profit. This is very interesting...
You will have to reconsider everything when artificial intelligence is added to the mix. Better machines cause more productivity but they still require people who end up doing different jobs. Prehistoric people only had to work 3 or 4 hours per day. Today many people work all of the time, then they commute long distances home where they have to do chores around the house and help their kids.

But when AI becomes integrated with machines, it has the capability to not only augment and replace human muscle power, but also brain-power. Products may be developed completely independently of humans. Then what? Will those who choose to do so be able to live withoput working for money?
I've decided to add a video to this post. And what better images for a post about machines and their basis in labor ("the gears are greased with the blood and sweat of the workers") than scenes from Fritz Lang's "Metropolis," set to Michael Nyman's composition "Time Lapse." Thank you to Dr. Lee for the suggestion. Thanks to everyone for commenting. Back soon with more posts.
Of Lang's vision of the revolution is temporized by religion, hardly an influence we can look to for help in America today, although there are early signs from the younger generation of fundamentalist Christians of a reemerging interest in anticonsumerist, anticapitalist theology, an historical fact in the movement that has largely been forgotten under the influence of its politicization over the last few decades. Hardly the liberation theology of Latin America, but quite interesting.
Malu - It was not the Soviet system I had in mind. The U.S.S.R. was always a form of state capitalism, from its beginning, based as it was in the 5-year Plans. The trouble was that the Plans created huge shortages in one part of the system, overabundance in others--not enough raw materials here, too many finished products that nobody wanted there. This is always a feature of capitalism (the "globalised" version today creates warehouses of food in one part of the world, while leaving millions to starve elsewhere), but the Soviet system's enforced modernization reproduced the problem very rapidly. No, we'd have to look at contemporary models in Latin America and elsewhere to see what an "educated" version of socialism would look like in systemic practice. But there are many local, non-systemic practices already at work in communities around the world, including in Europe and America.
Gary - And who builds AI? And so on...
This is what makes it interesting: Once AI reaches a certain point, non-humans can function independently. Machines build stuff, and machines with intelligence build and fix other machines. Up to this point machines only provided more muscle-power. With current computer programs, they provided *calculating* brain-power. AI machines will provide *thinking* brain-power.

The cost of products basically comes down to the cost of human beings who are required to make those products, whatever their role. That of course includes parts suppliers as well as those who create the finished products. The cost goes down as intelligent machines replace humans in the process. Products basically become free when no humans are involved in their production. Think of it: The government could own a certain number of production facilities that produce the things essential to human survival -- food, clothes, water, electricty, etc. Since those products would cost the government nothing, they could provide them free to anyone who needs or wants them.
Human intelligence is limited by genes. No one can improve brains. But that's not so for ARTIFICIAL intelligence. New versions of neural networks can be implemented continuously. And at a certain point, the AI software and hardware products themselves will help improve successive versions of AI software and hardware products. Yes, machines will be able to think *better* than people.

The question is not *who* will create AI. It is *what* will create AI!
Machines break down, run out of parts, reduce in wear due to friction. The search after the perfect machine is the search after a phantom. Like looking for a perfect orange.
Boko
I don't think you planned to build the Soviet system, but I think that's what you'd end up with. With less repression, but even without Stalin, even with Gorbachov, who, you may note, freed E, Europe by refusing to send the tanks to Warsaw, Berlin, Prague, etc, you wouldn't end up with a worker's paradise.

Small communities are better at sharing resources, but generally not particularly good at dealing with difference and diversity. However, larger items, like cars and trucks require economies of scale and factories.

China tried the village steel mill once. It was a disaster.

My fondness for Capitalism is not because I think it is such a great system, but like Churchill, I think the alternatives are worse.
Malu - Either we find an alternative to capitalism, or we're done for. Methods of organization vary, from landless peasant movements, to cooperative farming, to employee owned factories and participatory economies, including thousands of businesses and regimes around the world. You're living in another age. There are no longer just two poles in our world.
Boko----that said, the West never saw the ideological threat from the USSR as being the "red danger of state capitalism." They seriously feared the perceived subversiveness of having an established state support and proselytize marxian ideas, no?

Yes, there was the traditional threat of basic Russian imperialism, which didn't die with the Romanovs, but continued with the USSR, but that said, their ideology, that which they purveyed throughout the world and which the Western elite responded to, was not, rhetorically, support of traditional capitalism, correct?
Rw - Again, the Soviet state was state capitalism, it never "evolved" into anything else. The propaganda you should be more concerned about was the kind fed to you by your own government, the same kind they're still feeding to people all around the world: that capitalism works, that it's the "only option," and other garbage.
Boko, objectively, perhaps it was. Perhaps it wasn't really socialist, and I think many make a good argument about this, that it never really developed in practice, or realized, the principles upon which it was founded.

That said, it WAS founded upon Marxist and Socialist principles. These are what scared our elite and made them go apeshit in the Cold War. Of course, they exploited this for purposes of furthering the military industrial complex and American Imperialism as well as having a reason to integrate Western economies.

But there was, indeed, a perception in the 1950s that communism was a threat, due to the Soviets, was there not? You aren't answering the question...

8)
Rw - Lenin scared Western elites. Stalin scared them, too, but for very, very different reasons. He consolidated power and embarked on a series of programs of enforced modernization which had some results but which also caused enormous chaos both inside and outside Russia. The West was worried mostly about the destabilising effects of this, and so you can see how they recognized that the Soviet system was still tied to theirs, and I don't mean politically. What is talked about by U.S. elites and what they think are two very different things. Also, within the capitalist class there is a great deal of variety--some are smart about policy, including national foreign policy, and some aren't so smart. One could argue today that it's the Kochs who actually see things very clearly: they recognize the dangers posed to them and other capitalists by a long term structural crisis when the system's rootedness in exploitation becomes more transparent. Their "overreaction", therefore, represents a more realistic response by the elite than, say, the calm, cool, plodding methods of the White House. There is a great deal of disagreement amongst elites at any one point in history, but especially during a crisis. Conflict extends to the interiors of class groups and this is a crucial component in any good theory or practice aimed at disentangling the effects of capital from social-economic interaction. The comforting illusion of a united national leadership, or today a united global investment class, is one of the hallmarks of class provincialism. They're really at each other's throats right now.
Rw - By the way, they were at each other's throats, but in a less dramatic way, in the 1950's, too. Not everyone at the top in business and politics went along with the zeitgeist. And there were a lot of questions about Eisenhower's leadership, especially after it became clear that the Soviets were outpacing the U.S. in crucial areas, even with their much more uneven development.
Now that's the kind of answer I'm looking for! 8)

That said, do you discount the degree to which Western elite opposition to the USSR was rooted in actual fear of ideological contagion? Although the truest, most realistic members of the Elite may have seen the reality, as you say, Elites rarely act in rational self interest. Indeed, as you point out, they are often fractured.

I do think that while ueber-objective economic rationalists saw the situation as you claim it was, many reactionary members of the business community feared the USSR for other reasons and in fact, these fears, however irrational they may have been, provided much of the fuel behind Elite support for social welfare policies during the Cold War. They wished to co-opt and integrate the proletariot, so it wouldn't become revolutionary and threaten the regime. In this way, Soviet ideology aided their imperial, state capitalist goals, but one can't discount the actual, real perceptions, various members of the global elite felt about the so-called "red menace."

That said, I agree with you that cold, economic policies, such as the concern over global economic instability, as well as traditional Russian imperialism, played in their reactionary international relations approach.

In this way, the concern over economic instability caused by "loose cannon economic actors," is in some way similar to Western hostility toward Saddam. It had nothing to do with his ideology, per se, and more to do with his maverick approach to regional politics and the economic instability that resulted.

That said, one still cannot deny the fact that Marxism informed Lenin and Stalin. Why did they name that one German city "Karl Marx Stadt," rather than something else? Why the statues of Marx and Engels? Why the printing presses devoted to flooding the Western and Third world with Marxist philosophy?

Why didnt the Soviets just print millions of pamphelets on Adam Smith?

You must accept the fact that Marxism informed Lenin and later Stalin, even if they didn't interpret or realize this economic policy in the way "purists" would have most liked.

To deny this, is somewhat disingenuous, I think.
Boko, you are indeed a fine writer, one of the best that Open Salon has to offer. The biggest problem I see with your philosophy however is that we should try to implement communism/socialism on a massive scale. There isn't a state in existence today that has implemented a Marxist theory of government without massive problems. All of these states have turned into basket cases.

The heart of the reason communism will never work is because it removes the profit motive from the system. Without a profit motive (IE: What's in it for me?) the whole system comes down, or needs massive bureaucratic systems to enforce contribution to society at the point of a gun.
Rw - Remember, capitalists see things from the vantage point of capital, that is, from profit, as dmalrajabi points out (although by naturalizing the impulse he overstates his objection). In the 50's and 60's an enormous amount of manufacturing in the U.S., which still made up by far the largest sector, was tied into arms expenditure. These firms made their profits by selling their arms all over the world. That meant that the competition from Soviet arms manufacture was REALLY competition. The Cold War was a face-off between two national economies that were dependent on the conflict to keep their economies moving forward smoothly. When the usual problem of overproduction finally set in, and the world faced an energy crisis (not unrelated facts), everything suddenly unraveled. Now that's real history!