From
the TML Archives
Invoking the Ghost of Keynesianism to Derail the Workers' Movement
- K.C. Adams -
Originally published in December 2010.
Some people have the habit of resurrecting the
ghost of
Keynesianism in an attempt to divert the workers'
movement from
engaging in a concrete analysis of concrete
conditions. It is not
uncommon to hear that what is needed to deal with
the present
economic crisis are "Keynesian measures to
stimulate employment
and strengthen the domestic market." This
prescription is pitted
against the neo-liberal measures in a manner
designed to suggest
that there are two options facing the peoples of
the world.
What does this mean in practice? Does a formula
exist that
corresponds to "Keynesian measures"? Why would
Keynesian measures
from the economic crisis of the 1930s be suitable
today? Such
measures, whatever they imply, do not emerge from
a concrete
analysis of the situation in any country or from a
human-centred
program arising from the reality of the class
struggle taking
place today.
Global neo-liberalism using electronic and other
means to
control entire economies under the aegis of U.S.
military and
economic hegemony is not the same world of the
1930s. Also, to
introduce the prescription "Keynesian measures"
sidesteps the
issue of what those measures were in the 1930s and
what they
accomplished. They certainly did not put an end to
the crisis or
prevent the big powers of Europe, the United
States and Japan
from preparing for war to re-divide the world.
The fact that neo-liberals beginning in the 1970s
attacked
public spending on big projects and social
programs, which they
called Keynesian measures, does not clarify what
those measures
may be in the present circumstances or lend them
any credibility
as a program of action that is human-centred and
which can bring
positive relief for the people in the current
circumstances. Some
commentators called the Bush/Obama Troubled Asset
Relief Program
(TARP) bailouts of the financial sector a
Keynesian measure while
others disputed that assertion. Others in the U.S.
speak of the
need for "military Keynesianism," a program of
pouring money into
war preparations, militarization of social and
cultural life and
war. In this sense, Canada is undergoing "military
Keynesianism"
where every facet of life is being militarized as
one price to be
paid for deeper annexation into the U.S. Empire.
For the U.S. economy where much of what is called
the military
industrial complex is spread out over many states,
public
spending on war preparations and war does
"stimulate employment
and strengthen the domestic market." Do proponents
of "Keynesian
measures" approve of public war spending as a
positive program?
Certain economists say war spending is Keynesian
but that it is
only about half as effective as similar public
spending outside
the military sector. Much of the war material does
not circulate
as means of production and consumption within the
domestic
economy, especially in predatory wars in poor
countries such as
Iraq and Afghanistan, where spending is
concentrated in the war
theatre.
When thinking about Keynes and his rise to
prominence, it
should be remembered that public spending of any
kind in
significant quantities is a feature of monopoly
capitalism, which
had just come into being at the turn of the
century when he was
being groomed as an intellectual to defend the
British Empire.
Public spending was not a feature of nascent
capitalism of the
nineteenth century.
Two momentous events marked the consciousness of
all
intellectuals of the first two decades of the
twentieth century:
World War I and the Great October Socialist
Revolution in Russia.
All intellectuals from that time, of which Keynes
was one, were
products of a new era that had burst on the scene
with such
thunder and drama: the era of imperialism and the
proletarian
revolution. Keynes in his personal and public life
came down
squarely on the side of defending monopoly
capitalism and
opposing the working class from gaining political
power. His
intellectual skills were much appreciated by the
ruling elite of
Britain and he was richly rewarded. Monopoly
capitalism posed new
problems for the class in power and Keynes
provided theoretical
guidance in dealing with those problems. The rise
to power of the
monopolies meant that the capitalist state itself
had undergone
momentous changes. The cost of WWI meant new forms
of taxation
were introduced of which the personal income tax
was the most
important. Personal income tax provided the
imperialist state
with enormous amounts of public funds. How to use
these public
funds to defend the monopoly capitalist system and
assist
particular monopolies to defeat competitors in the
global
marketplace and who was to exercise control over
those funds
became practical and theoretical problems for the
ruling elite of
which Keynes was an important member.
Keynes himself was not only an ardent promoter
and
theoretician of the capitalist system and the
British Empire; he
was an active participant in the 1920s stock
market frenzy. He
lost a sizeable fortune with the 1929-30 stock
market collapse;
however, he recovered all of it and more by the
end of WWII.
First Baron Keynes' personal fortune upon death
was equivalent to
$16.5 million.
Large public spending to help certain monopolies
or sectors
and more generally to defend the system from
collapse or takeover
by the working class through revolution is a
feature of monopoly
capitalism. Little academic literature was
available in the early
years of monopoly capitalism to support such
activity and give it
theoretical guidance. Keynes and other
intellectuals provided
practical and theoretical guidance to the state
during a period
of economic crisis and global revolutionary
upheaval within the
British Empire and elsewhere.
Keynes' theoretical works were widely used to
argue both for a
liberal social welfare state and militarized
fascist state
according to the conditions and needs of a
particular imperialist
bourgeoisie. Theoreticians of German National
Socialism within
Hitler's Nazi Party used Keynes' promotion of
public spending to
provide theoretical justification for using public
money to help
particular monopolies and to underwrite the
rearmament of
Germany. These theories can now be said to
underpin the arguments
that workers and people generally should rally
behind their own
monopolies so that they become competitive and
successful in the
global marketplace. In a similar manner, people
are taught
one-nation politics of rallying behind U.S.,
Britain, German,
French or Japanese empire-building. In Europe his
theories were
used to bolster European socialism (against
"oriental despotism")
and in North America, U.S. exceptionalism. Both
contend that
monopoly capitalism does not contain within itself
contradictions
that need to be resolved through revolution led by
the working
class.
Keynes was one of the leading intellectuals of
the 1944
international monetary system called
Bretton-Woods, which U.S.
imperialism with the acknowledgement if not full
agreement of
Britain, imposed on its allies and colonies.
Bretton-Woods
established the International Monetary Fund and
the precursor to
the World Bank. Importantly, Bretton-Woods created
the
institutional conditions for U.S. financial
hegemony over the
capitalist world and the modern system of
international usury to
bind the former colonies to the imperialist states
in perpetual
indebtedness. Bretton-Woods marks a turning point
from
nation-building within the capitalist countries to
an imperialist
system of states dominated first by two
superpowers and today by
a single superpower striving for sole domination.
It positioned
the U.S., even before the end of WWII, to lead the
imperialist
world to encircle and smash the Soviet Union and
its allies
around the world and to transform old colonial
rule over the
developing countries into imperialist rule and
domination. It
prepared the economic conditions for the nuclear
blackmail of the
peoples of the world and the series of predatory
U.S. wars
against Korea, Vietnam and others that continue
today with the
war and occupation of Afghanistan and Iraq, the
economic
blockades against Cuba, the DPRK, Zimbabwe and
others, threats of
aggression against the DPRK, Iran, Lebanon,
Somalia, Sudan,
Syria, Venezuela and many more countries striving
for
independence, and the maintenance of hundreds of
U.S. military
bases throughout the world.
Keynes became a prominent economist of the
twentieth century
fully educated and imbued with the direct
experience of monopoly
capitalism and serving its needs. This means his
ideas are marked
with the necessity to serve the monopolies in the
era of
imperialism and the proletarian revolution. They
are a clear
departure from the economists of the nineteenth
century, the
period of nascent capitalism, who would engage and
argue with
Karl Marx and his concrete analysis of capitalism.
Keynes simply
dismissed Marxist economics as wrong and would not
argue out his
differences. His role was to serve monopoly
capitalism and oppose
the necessity of moving capitalism forward to
socialism to
resolve the basic contradictions within the
capitalist system, a
system that has outlived its transitory role in
transforming
petty production of the mediaeval era into mass
industrial
production. Keynes held the working class in
complete contempt as
not capable of leading itself or society. In this
sense
politically, he was completely opposed to the
concept and
practice of democracy where the people directly
participate in
governing themselves. This contempt for the people
and democracy
was inculcated into him at Eton and Cambridge
where he was
constantly praised as brilliant and superior to
all other human
beings and deserving of wealth, prestige, power
and privilege.
The British educational system does not accept
that workers are
capable of thinking at a level sufficient to
govern themselves,
manage society and its socialized economy, and
resolve its
contradictions. This means that any attempt or
even talk of
nation-building led by the working class, which
vests sovereignty
in the people and puts at the centre the human
factor/social
consciousness, is denounced and ridiculed by the
ruling elite of
Britain and the United States and all their
institutions.
This article was published in
Volume 50 Number 34 - September 12,
2020
Article Link:
From
the TML Archives: Invoking the Ghost of Keynesianism to Derail the Workers' Movement - K.C. Adams
Website: www.cpcml.ca
Email: editor@cpcml.ca
|