Increase Investments in Seniors' Care and Other Social Programs! Increase the Value of the Capacity to Work of the Working Class!

The crisis in long-term care homes has exposed the lack of investment in social programs for the elderly necessary to guarantee their well-being. The dire situation demands increased investments in social programs directed at seniors but also in health care and education generally. The aim is to guarantee the right of all to the care and social programs the people require in all phases of life, including in childhood before entering the workforce and in old age.

The investment in care for the elderly is connected with the value of the capacity to work under imperialism and the claim of the working class on the value it produces, specifically social reproduced-value. The imperialist oligarchy deprives the working class of its rightful claim for social reproduced-value as the claim exists in contradiction with the expropriation of new value as private profit.

Improving the lives of the retired means the economic value of the capacity to work of the working class as a whole becomes greater. The improvement in the quality of life when retired increases the claim of the working class on the value it produces thus reducing the amount of new value the imperialist oligarchy can expropriate.

The imperialist oligarchy stands opposed to any improvement in the economic value of the capacity to work of the working class that is not necessary within the imperialist economy. The oligarchs seek to cheapen all social programs that do not improve the employability of the working class while finding ways to organize those that do, such as education, in a way that does not reduce their expropriation of added-value for private profit or damage their war economy.

The imperialists face a dilemma. They need educated and healthy workers but any improvement means an increase in the value of workers' capacity to work. How to solve the dilemma has been an aspect of why public and semi-public social programs came into being.

The imperialist oligarchs have created semi-public education and health care as means to lessen the burden of paying for them on the oligarchs as a whole yet make educated and healthy workers available for employment. This does not mean that those who work in public and semi-public education and health care do not produce as much new value as if they were working in completely privatized enterprises of the same level. The public and semi-public social programs hold two advantages for the oligarchs as a whole: the full price of production to educate and look after the health of workers is not paid by the oligarchs as the funding comes from taxes of which the biggest companies pay very little, and the oligarchs do not have to realize (buy) directly the higher value of the capacity to work as it is reduced by the amount of added-value the public social programs do not expropriate.

Public workers in most social programs in public and semi-public enterprises produce enormous new value of which they claim a portion as reproduced-value. Wages are the individual portion of the reproduced-value and social programs are the social portion. The working class claims the individual and social reproduced-value as its portion of the new value it produces while those who buy their capacity to work expropriate the rest as added-value or profit. The trick with public social programs is that the added-value or profit is not directly expropriated but transferred indirectly to the imperialists who buy the capacity to work of educated and healthy workers, at least part of it.

Public and Semi-Public Enterprises

The imperialist oligarchy as a whole does not pay the full price of production for what workers produce in public and semi-public enterprises. They skirt this economic responsibility by hiding behind general taxes as the form of revenue needed to fund most social programs. Working people and small and medium-sized businesses pay the vast majority of taxes to realize the value from public and semi-public enterprises while big business mostly avoids paying anything.

By not paying directly the full price of production for what public workers produce and mostly avoiding taxes, the ruling imperialist elite and their global private enterprises expropriate indirectly the added-value portion of the new value public workers produce through social programs and the public and semi-public enterprises.

This added-value exists as the capacity to work of educated and healthy workers or as cheap fixed infrastructure such as bridges, roads, mass transit etc and socially produced circulating value such as electricity or postal services, which the oligarchs buy at "preferred industrial rates."

The imperialist oligarchs receive the full value from publicly produced infrastructure and social programs and the increased value of the capacity to work of the workers they employ but do not fully pay the price of production for the infrastructure or the socially produced portion of the capacity to work of the working class. The difference between the price of production and what the imperialists and their enterprises pay and what they should pay is expropriated as indirect private profit.

Expropriation of Added-Value from Programs to Care for the Elderly

Workers in public social programs to care for the elderly produce new value, which includes the reproduced-value they claim as wages, benefits and social programs, and the added-value the oligarchs expropriate indirectly as profit. The public and not-for-profit long-term care homes pass on much of the added-value workers produce to the general economy where both public and private enterprises expropriate it as indirect profit. This occurs indirectly because the public and private enterprises in the economy do not directly pay the price of production arising from the work-time involved in caring for the elderly. The social reproduced-value of seniors' care forms part of the aggregate value of the capacity to work of the working class. Within the social relation between the working class and the not-working class that buys its capacity to work, the working class is available to work and the not-working class is supposed to pay the full individual and social value of workers' capacity to work, which includes seniors' care.

Privatization of Social Programs

When a social program is privatized, which is the case with the numerous privately owned long-term care homes and home care, the individual owner of the privatized service expropriates as added-value or private profit a portion of the new value workers produce. This means the full price of production for the privatized social program must be realized. The government generally pays the majority of the price of production while the elderly and their families pay the rest as user fees.

Privatization of social programs has the effect of indirectly reducing the amount of added-value or profit the imperialist oligarchy as a whole expropriates from social programs at least those that do not directly profit from privatized social programs. It also increases the price of production if the level of the social programs is maintained as before the government did not pay for the added-value, which is now expropriated by the private owner. The full amount of the price of production must be directly paid to the owners of the privatized social programs, which the government pays. The fact that the full price of production for the privatized social programs must be paid has the effect of concentrating the expropriated added-value in a few hands while depriving the rest of the imperialist oligarchs from indirectly receiving any of the value.

The oligarchs in control, which do not profit directly from privatized social programs accept the privatized situation because the imperialists that have intruded on social programs are extremely powerful but also they can force a reduction in the value of the privatized social programs to reduce the amount of social reproduced-value the working class can claim. According to the many recent reports of how bad the situation has become in many long-term care homes and in home care, the level of care has been drastically reduced. A similar situation exists in public education, which is facing a lowering of quality such as increased class sizes and other issues.

Faced with the situation, the imperialist oligarchy can and does call for the elimination of privatization as an option and to revert to public or semi-public delivery of social programs. Up to this point in the imperialist world, including Canada, the working class has not intervened forcefully with its own view and outlook but has been led to discuss only the options the ruling oligarchs have presented regarding the direction of social programs. This is a situation the organized working class must change.

In BC, almost all the money to pay for privatized long-term care homes and home care comes from the government. The individual owners of the privatized service, through their private enterprises, directly expropriate added-value from the new value their workers produce. In this situation of privatized long-term care homes and home care, in contrast with the previous situation of public enterprise, either the level of service must go down or the government must now pay more for the service as the individual owners expropriate the added-value directly. If the service is kept at the same level and the individual owners directly expropriate added-value as private profit, this means the price of production of the service is fully paid mostly by the government and none of the added-value workers produce flows to those imperialist oligarchs not directly involved in delivering the privatized social programs.

The privatized social program at the same level of service means the government pays more, as the full price of production is required because the individual owner of the privatized service expropriates profit. This in fact leaves less public money available for other programs while putting pressure on the government to increase taxes.

In contrast, a publicly-owned long-term care home or home care does not directly expropriate the added-value. At the same level of service, the price paid by the government is lower and the added-value from the service flows into the general economy mainly as part of the value of the capacity to work of the working class that is not paid. This phenomenon explains in part why the imperialist oligarchs created public and semi-public education, health care and other social programs in the first place. They needed more educated and healthy workers and public social programs appeared as the best option on a mass scale.

However, productive forces develop and change, for example the introduction of computers and the Internet, and the tendency of parasitism and decay is ever-present, seizing greater parts of the imperialist economy. Powerful new imperialist cartels, which appear as global funds, roam the world seeking out places to invest, such as social programs and public infrastructure. In addition, new global cartels of immense social wealth -- such as Microsoft, Sodexo, Aramark and Compass Group -- have directly invaded public and semi-public enterprises, even prisons in the United States. Waste Management and other green imperialist monopolies have grown to challenge public delivery of social programs, such as city waste removal, and want to expropriate as their own the added-value that workers in the social service sector produce. They do not want to have it flow to the collective of imperialists and their enterprises, which have hitherto indirectly profited from social programs and their production of the capacity to work of the working class for which they have not paid. The imperialists privatizing social programs and infrastructure want governments to pay the full price of production to them for the privatized social programs, even if this means higher taxes or less public money for other programs -- unless investments in social programs are lowered, which in fact has occurred. However, the privatized services face pushback from others in the imperialist oligarchy who want to organize social programs differently so that they can expropriate the social product indirectly and also quell any uproar from the working class.

The Office of the Seniors' Advocate in BC, in a report dealing with the operations of long-term care homes entitled A Billion Reasons to Care, found that usually the level of care goes down when privatized, if funding is kept the same as before. To bring the level of privatized service up to where it was before privatization requires more government funding. The increased money must come from the aggregate new value the working class produces, usually as new taxes on them or on small and medium-sized companies or from government borrowing from private lenders, which has become a lucrative source of guaranteed profit.

However, increased funding for privatized social programs usually means more added-value as expropriated private profit by the enterprises involved, and does not allow any added-value to flow indirectly to the imperialist oligarchy as a whole, and can also mean a degrading of the overall health and education of the working class and its employability. In Canada and the U.S., this has been papered over with large numbers of educated immigrants coming into the workforce, stolen for nothing from developing countries.

At any rate, a dispute exists within the ruling elite over privatization of public services, with many opposing such a move as it means profit from the social programs goes to particular owners of the service rather than to the imperialist oligarchy as a whole. Generally, the working class is a spectator to this debate, either for or against privatization of public services, and does not forcefully present its own views or an alternative that favours working people.

Within the dispute whether to have social programs delivered as fully public enterprises, not-for-profit charity enterprises, or private enterprises, the subject is rarely broached as one of guaranteeing the rights of all to health care, education and a cultured standard of living and care for the elderly at the highest level the productive forces can deliver. The dispute generally circulates around the issue of "cost" to the imperialist oligarchy and who profits and how best to keep spending on the working class as low as possible so that the price of their capacity to work is likewise as low as possible, expropriated private profit remains as high as possible, and yet the working class and its capacity to work remains available at an appropriate level.

How to Pay for Social Programs

To function, a modern economy and society need a high level of social programs. It is important to discuss the issue of realizing (paying for) the value workers produce in those programs and to formulate a pro-social alternative that favours the people.

The working class has to break out of the anti-social discussion of the ruling oligarchs. It must force through its view for increased investments in social programs and that the socialized economy as a whole, which includes all its individual enterprises, must pay the full price of production for the capacity to work of the aggregate healthy and educated working class and its reproduction and existence from birth to passing away at the highest possible level given the existing productive forces. The working class as a whole is always available to work so its reproduction and existence and rights from birth to passing away must be guaranteed.

History has shown that the right to health care and education and care for the elderly cannot be guaranteed outside of public enterprises and with the economy and its enterprises directly paying for the produced value of social programs. Using public enterprises to solve the problem cannot be separated from the issue of increasing investments in social programs to bring them up to a cultured and sustainable standard for all and forcing the other parts of the economy and enterprises to pay the full price of production of the capacity to work of the working class. This would increase the aggregate value of the capacity to work of the working class and the amount it can claim on the value it produces, the reproduced-value.

The mechanics of how to pay for the full value of the social programs that increase the value of the capacity to work of the working class from the value workers produce in the economy can be worked out on a prorated basis for each enterprise; that is not a problem. The problem is how to organize this and enforce it. What new alternative forms and mechanisms are necessary for the working class to realize its rights and to decide these matters, such as the standard of living of workers generally, and to enforce compliance with them? Forcing the imperialist oligarchy to agree to such a necessity to guarantee the rights of all working people is the order of the day and task of the organized working class. This requires a broad front of struggle to increase investments in social programs and raise the quality of life of the working class and guarantee the rights of all, including importantly the rights of seniors and children. How to accomplish this in practice with new forms needs to be discussed and concretized. It can be done!


This article was published in

Volume 50 Number 19 - May 30, 2020

Article Link:
Increase Investments in Seniors' Care and Other Social Programs! Increase the Value of the Capacity to Work of the Working Class! - K.C. Adams


    

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