Category: Karl Marx
The Marxist Theory of the State
| January 28, 2018 | 11:05 am | A. Shaw, Karl Marx, V.I. Lenin | Comments closed

Programa 1 – Escuela de cuadros – Manifesto Comunista, Parte I (Marx y Engels)
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MARXISM AND CLASS: SOME DEFINITIONS
| May 31, 2017 | 9:00 pm | Analysis, class struggle, Karl Marx, Marxism-Leninism, V.I. Lenin | Comments closed

http://www.mltranslations.org/Britain/Marxclass.htm
MARXISM AND CLASS: SOME DEFINITIONS
A paper from the COMMUNIST LEAGUE (Britain)
The Concept of Social Class
The concept of social class as “a division or order of society according to status (‘The Oxford English Dictionary’, Volume 3; Oxford; 1989; p. 279) is a very ancient one, the English word ‘class’ being derived from the Latin ‘classis’, meaning each of the “… ancient divisions of the Roman people” (Charles T. Onions (Ed.): ‘The Oxford Dictionary of English Etymology’; Oxford; 1985; p. 180). Servius Tullius, king of Rome in the 6th century BC, organised a classification system which divided citizens into five classes according to wealth”. (‘New Encyclopaedia Britannica’, Volume 10; Chicago; 1994; p. 455).

The Marxist Definition of Class
Marxist-Leninists accept the concept of social class put forward above, but hold that a person’s social class is determined not by the amount of his wealth, but by the source of his income as determined by his relation to labour and to the means of production.

“Classes are large groups of people differing from each other by the place they occupy in a historically determined system of social production, by their relation (in most cases fixed and formulated by law) to the means of production, by their role in the social organisation of labour, and, consequently, by the dimensions of the share of social wealth of which they dispose and their mode of acquiring it”. (Vladimir I. Lenin: ‘A Great Beginning: Heroism of the Workers in the Rear: ‘Communist Subbotniks’ in: ‘Collected Works’, Volume 29; Moscow; 1965; p. 421).

To Marxist-Leninists, therefore, the class to which a person belongs is determined by objective reality, not by someone’s opinion.

On the basis of the above definition, Marxist-Leninists distinguish three basic classes in 19th century Britain:

“There are three great social groups, whose members… live on wages, profit and ground rent respectively”. (Karl Marx: ‘Capital: A Critique of Political Economy’, Volume 3; Moscow; 1971; p. 886).

These three basis classes are 1) the proletariat or working class, 2) the bourgeoisie or capitalist class and 3) the landlord class, respectively.

The Landlord Class
Marxist-Leninists define the landlord class as that class which owns land and derives its income from ground rent on that land:

“Land becomes… personified and… gets on its hind legs to demand… its share of the product created with its help…: rent (Karl Marx: ‘Capital: A Critique of Political Economy’, Volume 3; Moscow; 1971; p. 824-25).

With the development of capitalist society, however, the landlord class progressively loses its importance and a new class emerges — the petty bourgeoisie. Thus, in a developed capitalist society, there are still three basic classes, but these are now: 1) the capitalist class or bourgeoisie; 2) the petty bourgeoisie; and 3) the working class or proletariat:

“Every capitalist country… is basically divided into three main forces: the bourgeoisie, the petty bourgeoisie and the proletariat”. (Vladimir I. Lenin: ‘Constitutional Illusions’, in: ‘Collected Works’, Volume 6; Moscow; 1964; p. 202).

The Bourgeoisie
The English word ‘bourgeoisie‘ is derived from the French word ‘bourgeoisie’ meaning “… the trading middle class” (Charles T. Onions (Ed.): op. cit.; p. 110) as distinct from the landlord class.

Marxist-Leninists define the bourgeoisie or capitalist class as

“…the class of modern capitalists, owners of the means of social production and employers of wage labour”. (Friedrich Engels: Note to: Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’ in: Karl Marx: ‘Selected Works’, Volume 1; London; 1943; p. 204).

The capitalist class includes persons whose remuneration may come nominally in the form of a salary, but which is in fact due to their position in the capitalist class (e.g., the directors of large companies). It also includes persons who are not employers, but who serve the capitalist class in high administrative positions:

“The latter group contains sections of the population who belong to the big bourgeoisie: all the rentiers (living on the income from capital and real estate…), then part of the intelligentsia, the high military and civil officials, etc. (Vladimir I. Lenin: ‘The Development of Capitalism in Russia’, in: ‘Collected Works’, Volume 3; Moscow; 1960; p. 504).

It also includes the dependents of these persons.

The Proletariat
The English word ‘proletariat‘ is derived from the Latin ‘proles’, meaning ‘offspring’, since according to Roman law a proletarian served the state “… not with his property, but only with his offspring (Charles T. Onions (Ed.): ibid.; p. 714).

Marxist-Leninists define the proletariat or working class as

“…that class of modern wage labourers who, having no means of production of their own, are reduced to selling their labour power in order to live (Friedrich Engels: Note to the 1888 English Edition of: Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’, in: ‘Selected Works’, Volume 1; London; 1943; p. 204).

In modern society, “… the proletariat alone is a really revolutionary class”. (Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’ in:

Karl Marx: ‘Selected Works’, Volume 1; London; 1943; p. 216) so that, in producing the proletariat, the bourgeoisie produces “… its own gravediggers”. (Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’ in: Karl Marx: ‘Selected Works’, Volume 1; London; 1943; p. 218).

The ‘Middle Class’
The term ‘middle class’ is used by Marxists — including Marx and Engels themselves — in two different ways:

Firstly, in the historical sense,

“… in the sense of… the French word ‘bourgeoisie that possessing class which is differentiated from the so-called aristocracy (Friedrich Engels: Preface to ‘The Condition of the Working Class in England: From Personal Observation and Authentic Sources’, in: Karl Marx & Friedrich Engels: ‘Collected Works’, Volume 4; Moscow; 1975; p. 304).

secondly, when speaking of modern capitalist society, with the meaning of petty bourgeoisie’, discussed in the next section.

The Petty Bourgeoisie
Between the bourgeoisie and the proletariat, stands the petty bourgeoisie:

“In countries where modern civilisation has become fully developed, a new class of petty bourgeois has been formed” (Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’ in: Karl Marx: ‘Selected Works’, Volume 1; London,’ 1943; p. 231).

The English term ‘petty bourgeoisie’ is an anglicisation of the French term ‘petite bourgeoisie’, meaning ‘little bourgeoisie’. Marxist-Leninists define the petty bourgeoisie as a class which owns or rents small means of production which it operates largely without employing wage labour, but often with the assistance of members of their families: “A petty bourgeois is the owner of small property”, (Vladimir I. Lenin: Note to: ‘To the Rural Poor’, in: ‘Selected Works’, Volume 2; London; 1944; p. 254).

As a worker, the petty bourgeois has interests in common with the proletariat; as owner of means of production, however, he has interests in common with the bourgeoisie. In other words, the petty bourgeoisie has a divided allegiance towards the two decisive classes in capitalist society.

Thus, the ‘independent’ petty bourgeois producer

“… is cut up into two persons. As owner of the means of production he is a capitalist; as a labourer he is his own wage- labourer”. (Karl Marx: ‘Theories of Surplus Value’, Part 1; Moscow; undated; p. 395).

and consequently petty bourgeois “…are for ever vacillating between the proletariat and the bourgeoisie”. (Joseph V. Stalin: ‘The Logic of Facts’, in: ‘Works’, Volume 4; Moscow; 1953; p. 143).

This divided allegiance between the two decisive classes in modern capitalist society applies also to a section of employed persons — those who are involved in superintendence and the lower levels of management — e.g., foremen, charge-hands, departmental managers, etc. These employees have a supervisory function, a function is to ensure that the workers produce a maximum of surplus value for the employer. On the one hand, such persons are exploited workers, with interests in common with the proletariat (from which they largely spring); on the other hand, their position as agents of the management in supervising the efficient exploitation of their fellow employees gives them interests in common with the bourgeoisie:

“An industrial army of workmen, under the command of a capitalist, requires, like a real army, officers (managers) and sergeants (foremen, overlookers) who, while the work is being done, command in the name of the capitalist”, (Karl Marx: ‘Capital: An Analysis of Capitalist Production’, Volume 1; Moscow; 1959; p. 332).

“The labour of supervision and management… has a double nature. On the one hand, all labour in which many individuals cooperate necessarily requires a commanding will to coordinate and unify the process…. This is a productive job…. On the other hand, this supervision work necessarily arises in all modes of production based on the antithesis between the labourer, as the direct producer, and the owner of the means of production. The greater this antagonism, the greater the role played by supervision”. (Karl Marx: ‘Capital: A Critique of Political Economy’, Volume 3; Moscow; 1971; p. 383-84).

Because of this divided allegiance, which corresponds to that of the petty bourgeoisie proper, Marxist-Leninists place such employees (and their dependents) in the petty bourgeoisie. For the same reason, Marxist-Leninists also place persons in the middle and lower ranks of the coercive forces of the capitalist state — the army and police — (and their dependents) in the petty bourgeoisie.

The Polarisation of Capitalist Society
Because of the small size of their means of production, petty-bourgeois are in constant danger of sinking into the proletariat:

“The lower strata of the middle class… sink gradually into the proletariat, partly because their diminutive capital… is swamped in the competition with the large capitalists, partly their specialised skill is rendered worthless by new methods of production”. (Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’ in: Karl Marx: ‘Selected Works’, Volume 1; London; 1943; p. 213).

“The working class gains recruits from the higher strata of society… A mass of petty industrialists and small rentiers are hurled down into its ranks”. (Karl Marx: ‘Wage-Labour and Capital’, in: ‘Selected Works’, Volume 1; London; 1943′ p. 280).

and even the old, once highly respected petty bourgeois professions become proletarianised:

“The bourgeoisie has stripped of its halo every occupation hitherto honoured and looked up to with reverent awe. It has converted the physician, the lawyer, the priest, the poet, the man of science, into its paid wage-labourers”. (Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’, in: Karl Marx: ‘Selected Works’, Volume 1; London; 1943; p. 208).

Thus, as capitalist society develops, it becomes increasingly polarised into two basic classes — wealthy bourgeois and poor proletarians:

“Society as a whole is more and more splitting up… into two great classes facing each other — bourgeoisie and proletariat”. (Karl Marx & Friedrich Engels: ‘Manifesto of the Communist Party’, in: Karl Marx: ‘Selected Works’, Volume 1; London; 1943; p. 205-06).

“Accumulation of wealth at one pole is, therefore, at the same time accumulation of misery, agony of toil, slavery, ignorance, brutality, moral degradation, at the opposite pole”. (Karl Marx: ‘Capital: A Critique of Political Economy’. Volume 1; Moscow; 1959; p. 645).

The Peasantry
The English word ‘peasant is derived from the Latin ‘pagus’, meaning a “… country district”. (Charles T. Onions (Ed.): op. cit.; p. 660) and is defined as “… one who lives in the country and works on the land”. (The Oxford English Dictionary’, Volume 11; Oxford; 1989; p.402).

The above definition excludes the landlord class from the peasantry since, even if a landlord ‘lives in the country’ he does not work on the land’, but derives his income from ground rent.

The peasantry do not form a class of society, but consist of a number of different classes which live in the country and work on the land:

“It is best to distinguish the rich, the middle and the poor peasants” (Vladimir I. Lenin: ‘To the Rural Poor: An Explanation for the Peasants of what the Social-Democrats want’ (hereafter listed as ‘Vladimir I. Lenin (1903’), in ‘Selected Works’, Volume 2; London; 1944; p. 261).

The peasantry is composed of:

Firstly, rich peasants, or rural capitalists, who employ labour, that is, who exploit poorer peasants:

“One of the main features of the rich peasants is that they hire farmhands and day labourers. Like the landlords, the rich peasants also live by the labour of others…. They try to squeeze as much work as they can out of their farmhands, and pay them as little as possible”. (Vladimir I. Lenin (1903: ibid.; p. 265).

Sometimes rich peasants are called ‘kulaks’, a word derived from the Russian ‘kulak’, originally meaning a “… tight-fisted person”. (‘The Oxford English Dictionary’, Volume 8; Oxford; 1989; p. 543).

Secondly, the middle peasants or the rural petty bourgeoisie, who own or rent land but who do not employ labour. Speaking of the middle peasantry, Lenin says:

“Only in good years and under particularly favourable conditions is the independent husbandry of this type of peasant sufficient to maintain him and for that reason his position is a very unstable one. In the majority of cases the middle peasant cannot make ends meet without resorting to loans to be repaid by labour, etc., without seeking subsidiary’ earnings on the side”. (Vladimir I. Lenin: ‘The Development of Capitalism in Russia’, in: ‘Collected Works’, Volume 1; p. 235).

Thirdly, the poor peasants or rural proletariat. The poor peasant lives

“… not by the land, not by his farm, but by working for wages…. He… has ceased to be an independent farmer and has become a hireling, a proletarian”. (Vladimir I. Lenin (1900): op. cit.; p. 265-67).

Sometimes Marxist-Leninists describe poor peasants as “… semi-proletarians“, (Vladimir I. Lenin (1900): ibid.; p. 267) to distinguish them from urban proletarians, regarded as ‘full’ proletarians.

Neo-Marxism
‘Revisionism’ is “… a trend hostile to Marxism. within Marxism itself”. (Vladimir I. Lenin: ‘Marxism and Revisionism’, in: ‘Collected Works’, Volume 15; Moscow; 1963; p. 32). In other words, a revisionist poses as a Marxist but in fact puts forward a programme which objectively serves the interests of a bourgeoisie:

“The revisionists spearheaded their struggle mainly against Marxism-Leninism… and replaced this theory with an opportunist, counterrevolutionary theory in the service of the bourgeoisie and imperialism (Enver Hoxha: Report to the 5th Congress of the Party of Labour of Albania, in: ‘Selected Works’, Volume 4; Tirana; 1982; p. 190).

Despite all the torrents of propaganda levelled against it, Marxism- Leninism still retains enormous prestige among working people all over the world. It is for this reason that many modern revisionists call themselves ‘Neo-Marxists’ or ‘Western Marxists’ — claiming that they are not revising Marxism, but merely bringing it up to date, bringing into the age of the electronic computer which Marx and Engels never knew.

In general, ‘neo-Marxists’ pay their loudest tributes to Marx ‘s early writings, before he became a Marxist. ‘Neo-Marxism’ is essentially a product not merely of universities, but of the worst kind of university lecturer who equates obscurantism with intellectualism. One sees admiring students staggering from his lectures muttering ‘What a brilliant man! I couldn’t understand a word!’.

Even sociologists sympathetic to ‘neo-Marxism’ speak of “… the extreme difficulty of language characteristic of much of Western Marxism in the twentieth century”. (Perry Anderson: ‘Considerations of Western Marxism’; London; 1970; p. 54).

But, of course, this obscure language has a great advantage for those who use it, making it easy to claim, when challenged, that the challenger has misunderstood what one was saying.

Much ‘Neo-Marxism’ is an eclectic hotchpotch of Marxism with idealist philosophy — giving it, it is claimed, a ‘spiritual aspect’ lacking in the original. A typical example is the French philosopher Jean-Paul Sartre who writes: “I believe in the general schema provided by Marx”, (Jean-Paul Sartre: ‘Between Existentialism and Marxism’; London; 1974;

p. 53), but — and it is a big ‘but’ — it must be a ‘Marxism’ liberated from “… the old guard of mummified Stalinists”. (Jean-Paul Sartre: ibid.; p. 53). And how, according to Sartre, is this ‘liberation’ to be effected? By merging it with the existentialism of the Danish idealist philosopher Soren Kierkegaard! “Kierkegaard and Marx… institute themselves… as our future”. (Jean-Paul Sartre: ibid.; p. 169).

However, this paper is concerned only with revisionist theories which are based on distortions of the Marxist-Leninist definition of class.

In particular, it will be concerned with ‘neo-Marxist’ definitions of the proletariat which narrow and restrict it as a class. While to these ‘neo-Marxists’ the proletariat may still be, in words, ‘the gravedigger of capitalism’, they portray it as a gravedigger equipped with a teaspoon instead of a spade.

The Unemployed
Some ‘neo-Marxists’ exclude the unemployed from the proletariat on the grounds that someone who is not working cannot be regarded as a member of the working class!

But Marx explicitly characterises the unemployed, the “… industrial reserve army”, (Karl Marx: ‘Capital: A Critical Analysis of Capitalist Production Volume 1; Moscow; 1959; p. 628) as part of the working class, as “… a relative surplus population among the working class”, (Karl Marx: ‘Capital: A Critique of Political Economy’, Volume 2; Moscow; 1974; p. 518) and speaks of “… the working class (now actively reinforced by its entire reserve army)”. (Karl Marx: ‘Capital: A Critique of Political Economy’, Volume 2; Moscow; 1974; p. 414).

Clearly, therefore, the founders of Marxism did not exclude the unemployed from the working class.

Non-Productive Labour
Other ‘neo-Marxists’ exclude all workers engaged in non-productive labour from the working class.

Certainly, for the purpose of analysing the complexities of capitalist society, Marx differentiated labour into productive and unproductive labour. According to Marx, “… only that labour is productive which creates a surplus value“. (Karl Marx: ‘Theories of Surplus Value’, Part 1; Moscow; n.d.; p 45).

It is on this basis that the Greek revisionist Nicos Poulantzas excludes non-productive workers from the working class:

“I have a rather limited and restricted definition of the working class. The criterion of productive and unproductive labour is sufficient to exclude unproductive workers from the working class”. (Nicos Poulantzas: ‘Classes in Contemporary Capitalism’; London; 1975; p 119, 121).

Poulantzas therefore assigns non-productive workers to the “… new petty bourgeoisie” (Nicos Poulantzas: ibid.; p. 117) asserting that “… the new petty bourgeoisie constitutes a separate class” (Nicos Poulantzas: ibid.; p. 115).

But

“… the distinction between productive and unproductive labour has nothing to do… with the particular speciality of the labour (Karl Marx: ‘Theories of Surplus Value’, Part 1; Moscow; n.d.; p 186).

The same kind of labour may be productive or unproductive:

“The same labour can be productive when I buy it as a capitalist, and unproductive when I buy it as a consumer”. (Karl Marx: ‘Theories of Surplus Value’, Part 1; Moscow; n.d.; p. 186).

For example, a teacher in a private school is engaged in productive labour (in the Marxist sense of the term), because his labour produces surplus value for the proprietors of the school. But a teacher in a state school, working under identical conditions, is engaged in unproductive labour, because his labour does not create surplus value.

Furthermore, many kinds of unproductive labour, such as the labour of clerical workers in a capitalist production firm,

“… while it does not create surplus value, enables him (the employer — Ed.) to appropriate surplus value which, in effect, amounts to the same thing with respect to his capital. It is, therefore, a source of profit for him”. (Karl Marx: ‘Capital: A Critique of Political Economy’, Volume 3; Moscow; 1971; p. 294).

Thus the question of whether an employee is engaged in productive or unproductive labour has no relevance to the question of whether he belongs to the proletariat.

The ‘Labour Aristocracy’
In developed capitalist states,

“… the bourgeoisie, by plundering the colonial and weak nations, has been able to bribe the upper stratum of the proletariat with crumbs from the superprofits”. (Vladimir I. Lenin: Draft Programme of the RCP (B), in: ‘Collected Works’, Volume 29; Moscow; 1965; p. 104).

Superprofits are profits

“… obtained over and above the profits which capitalists squeeze out of the workers of their ‘own’ country”. (Vladimir I. Lenin: Preface to the French and German Editions of ‘Imperialism: The Highest Stage of Capitalism’, in: ‘Collected Works’, Volume 22; Moscow; 1964; p. 193).

Marxist-Leninists call employees in receipt of a share in such super profits “… the labour aristocracy”. (Vladimir I. Lenin: ibid.; p. 194).

Some ‘neo-Marxists’ exclude employees who share in superprofits from the proletariat. Thus, according to the London-based ‘Finsbury Communist Association’, in Britain “… the proletariat consists of the workers on subsistence wages or below” (Finsbury Communist Association: ‘Class and Party in Britain’; London; 1966; p. 4).

However, Lenin defines the labour aristocracy as a part of the proletariat, as a “… privileged upper stratum of the proletariat”, (Vladimir I. Lenin: ‘Imperialism and the Split in Socialism’, in: ‘Collected Works’, Volume 23; Moscow; 1965; p. 110) as “… the upper stratum of the proletariat”, (Vladimir I. Lenin: Draft Programme of the RCP (B), in: ‘Collected Works’, Volume 29; Moscow; 1965; p. 104) as “… the top strata of the working class”. (Vladimir I. Lenin: ‘How the Bourgeoisie utilises Renegades”, in: ‘Collected Works’, Volume 30; Moscow; 1965; p. 34).

Furthermore, while Lenin characterises the ‘labour aristocracy’ as “… an insignificant minority of the working class”, (Vladimir I. Lenin: ‘Under a False Flag’, in: ‘Collected Works’, Volume 21; Moscow; 1964; p. 152) the ‘Finsbury Communist Association’ presents it as “… the overwhelming majority of Britain’s workers” (Finsbury Communist Association: ‘Class and Party in Britain’; London; 1966; p. 5).

Thus, according to the ‘Finsbury Communist Association’, the British imperialists pay the overwhelming majority of Britain’s workers’ above the value of their labour power. Since there is not even a Marxist-Leninist party, much less a revolutionary situation, in Britain at present, this can only be out of the sheer goodness of their hearts!

Clearly the ‘neo-Marxist’ picture of imperialism bears no relation to reality. It merely lends spurious support to the false thesis that, since the workers in developed capitalist countries are ‘exploiters’, the future for socialism lies only in the less developed countries in the East!

Conclusion
The most urgent task facing Marxist-Leninists today is to rebuild unified Marxist-Leninist parties in each country, united in a Marxist-Leninist International.

But such parties, and such an international, can be built only on the basis of agreement on Marxist-Leninist principles.

Perhaps agreement to accept a few simple definitions put forward long ago by the founders of Marxism-Leninism, and to reject their revisionist distortions, might constitute a small step in that direction.

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DER JUNGE KARL MARX Trailer German Deutsch (2017)
| February 9, 2017 | 8:05 pm | Karl Marx | Comments closed

It’s Capitalism, Stupid!
| January 19, 2017 | 7:40 pm | Karl Marx | Comments closed

Karl Marx - Its capitalism stupidSource: In defense of communism

Days of Revolt: The Death of the American City
| February 4, 2016 | 8:35 pm | Analysis, Economy, Karl Marx, political struggle | Comments closed

Unemployment: A Report Card for Capitalism
| February 23, 2015 | 7:27 pm | Analysis, Economy, Karl Marx, Labor, National, Party Voices, political struggle | Comments closed
  – from Zoltan Zigedy is available at:
http://zzs-blg.blogspot.com/
Marx suggests in his articles for the Neue Rheinische Zeitung collected as Class Struggles in France, 1848-1850 that the first order of business for the working class is to secure jobs, “but behind the right to work stands the power over capital; behind the power over capital, the appropriation of the means of production, their subjection to the associated working class and, therefore, the abolition of wage labour, of capital and of their mutual relations.” It is through the struggle for a place in the capitalist system– however lowly– that the means for survival are won and the conditions are met for further challenges to the dominance of capital and even the very system of capitalism. But in a system of private appropriation and with labor as a commodity, life for those without capital begins with securing employment.
Because labor is a commodity, because labor must be a commodity in order for an economic formation to be capitalist, the right to a job cannot be enshrined in a capitalist constitution. Only socialist countries have or can endow everyone with the right to a job. That is why the right to a job is not included in the Universal Declaration of Human Rights. A weak “right to work” (participate in the labor market), a right to “free choice of employment” (compete in the labor market), and a right “to protection against unemployment” (vague, nonspecific prophylaxes or amelioration) are there instead (Article 23). Without recognizing the right to a job, the Universal Declaration effectively turns a blind eye to the ravages of unemployment and the indignities and injustices of the buying and selling of human productive effort.
That is one reason that the USSR and other socialist countries abstained from ratifying the Declaration in 1948.
Without unemployment, the capitalist system would suffer persistent pressure on the rate of profit. When the commodity– labor power– becomes scarce, capitalists must pay more to secure it, as they would for any other commodity. And since labor remains the largest cost component of most productive capitalist enterprises, labor-cost inflation erodes capitalist profits. Capitalism and the system’s beneficiaries will not, therefore, tolerate full employment. This is the nasty little truth that apologists and media windbags dare not speak.
Economists hide this truth by euphemistically coining terms like “marginal” or “frictional” unemployment or inventing obscurantist concepts like the “Non-Accelerating Inflation Rate of Unemployment” that set an increasingly low standard for “full” employment. By linguistic sleight-of-hand, the economics establishment offers cover for capitalist accumulation by ordaining an “acceptable” level of unemployment.
At the same time, this same establishment understands that unemployment is the greatest challenge to the stability of the capitalist system. The frequent sharp rises in unemployment brought on by dislocations, the business cycle, or systemic crisis dramatically increase the levels of social discontent and raise voices that question the system. For those who hold the reins of power, for those whose job is to contain dissatisfaction with capitalism, managing unemployment is essential.
From that perspective, the unemployment rate is arguably the best barometer of the health and viability of the capitalist system. Consequently reports of unemployment rates and trends are politically charged and subject to great differences in interpretation.
“The official unemployment rate… amounts to a Big Lie.”
Recently, the political manipulation of the unemployment rate came under attack from an unlikely source. Jim Clifton, chairman and CEO of Gallup, the polling organization, challenged the notion that the “official” rate of unemployment bore any relation to the realities of unemployment. Indeed, he called the rate a “Big Lie.” It’s worth examining his argument closely:
None of them will tell you this: If you, a family member or anyone is unemployed and has subsequently given up on finding a job — if you are so hopelessly out of work that you’ve stopped looking over the past four weeks — the Department of Labor doesn’t count you as unemployed. That’s right. While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news — currently 5.6%. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren’t throwing parties to toast “falling” unemployment.
There’s another reason why the official rate is misleading. Say you’re an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 — maybe someone pays you to mow their lawn — you’re not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.
Yet another figure of importance that doesn’t get much press: those working part time but wanting full-time work. If you have a degree in chemistry or math and are working 10 hours part time because it is all you can find — in other words, you are severely underemployed — the government doesn’t count you in the 5.6%. Few Americans know this.
There’s no other way to say this. The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.
Though Clifton invokes the always suspect “Great American Dream” in his polemic, he fully appreciates the challenge unemployment mounts to the system’s legitimacy:
And it’s a lie that has consequences, because the great American dream is to have a good job, and in recent years, America has failed to deliver that dream more than it has at any time in recent memory. A good job is an individual’s primary identity, their very self-worth, their dignity — it establishes the relationship they have with their friends, community and country. When we fail to deliver a good job that fits a citizen’s talents, training and experience, we are failing the great American dream.
We owe Clifton a thanks for speaking a rare and uncomfortable truth. And we must admire his bitter remonstrations against those who hide, distort, or slant capitalism’s bad performance:
When the media, talking heads, the White House and Wall Street start reporting the truth — the percent of Americans in good jobs; jobs that are full time and real — then we will quit wondering why Americans aren’t “feeling” something that doesn’t remotely reflect the reality in their lives.
Capitalism’s Report Card
Many liberal economists would agree with Clifton that the official rate understates unemployment. Like Clifton, some will concede that those marginally attached to the work force or discouraged from the work force should be counted along with those who have looked for work in the four weeks prior to the survey. The Bureau of Labor Statistics (BLS) extends the survey period to the prior twelve months to capture those unemployment figures. Using those numbers and the numbers of those working part-time for economic reasons, the unemployment rate rises to over 11%.
But it is worth questioning how the BLS defines the labor force. They simply count those as employed who work at some time in their survey period and count as unemployed those who show in their records as looking for work. They add the two up to constitute the labor force. They make no effort in this survey to determine the relationship to employment of the tens of millions of people in the US population not counted as in the labor force because they are neither somewhat employed nor present in the unemployment roles.
Have those left aside given up looking because they could find no job in the years prior to the last twelve months? Are they forced out because they can no longer afford child care or must care for relatives? Does neglected health due to lack of insurance preclude working? Are they victims of racial, gender, or age discrimination?
BLS does not ask and we do not know.
We do know, however, that the labor participation rate, relatively stable for two decades, has dropped precipitously since the 2007-2008 crisis. Roughly five to six million fewer people now count as engaged in the work force at any given time today than did eight years ago. Such a sharp drop in such a short time cannot be explained simply by changes in retirement patterns or work-force entry. Thus, it is not unreasonable to view this shift away from gainful employment negatively in our score card for capitalism.
If we were to count this loss in the labor force with the other sources of unemployment, US unemployment (and underemployment) would move to the vicinity of 15%.
But we can take a longer, deeper view. We can ask pointed questions about those engaged in certain categories of socially useless, even destructive forms of employment as well as those completely isolated from the conventional labor force.
For example, the million-and-a-half military personnel and the three-quarters of a million Defense Department employees constitute unproductive workers whose absorption would present a hurdle to the private sector. High youth unemployment and the expense of education have driven thousands of less advantaged youth to the military as an alternative to unemployment, thus serving as a safety valve to the social volatility of idleness.
Homeland Security and other security agencies have enjoyed bursts of employment thanks to the bogus war on terror. These agencies, too, constitute unneeded public-sector job creation that masks potential unemployment.
And of course there is the weapons industry, a massive private-profit-generating behemoth that engorges itself on public funds, stands apart from market forces and risks, and belches death-dealing instruments. Spawned by a desperate, but post-war fear of economic depression, US ruling elites embraced this perverse form of public-sector Keynesian demand-creation as a companion to Cold War hysteria. Military production drives and is driven by US jingoism. US imperialism and the military-industrial complex constitute a dialectical unity. While millions are employed by this juggernaut, capitalism would struggle to find work for them in a peace-friendly economy.
Undoubtedly the most insidious technique of hiding unemployment is the unfettered, soulless operation of the criminal justice system. Even the English workhouse answer to unemployment in the early eighteenth century was arguably more humane than the US judicial-penal complex,  complex. Inmates in state and federal punitive facilities (not including county and local jails) grew from 329,821 to 1,406,519 from 1980 to 2001! In the same period, the crime rate was relatively stable or declining. In 2010 the number of adults warehoused in so-called correctional facilities totaled almost 2,300,000.
The 2013 incarceration rate was six times the rate of 1925. Given the absence of virtually any social services or welfare, the high incidence of poverty, and the squalor of US urban areas in 1925, it is difficult to explain the explosion of incarceration in our era of relatively tame criminality without searching for political expediencies.
Half a million guards and administrators shepherd this population; another half a million churn the gears of questionable justice; and a million police harvest the inmates from the streets. Like the military-industrial complex, the police-judicial-prison industry removes millions from productive activity and warehouses hundreds of thousands of those potentially counted as unemployed. Whether the inmates turn to crime because they have no jobs or not, they effectively are dropped from the labor force. Moreover, nearly 5,000,000 US citizens are on parole or probation, a circumstance that lowers the prospect for employment dramatically. Certainly thousands, if not millions, of these people fall into that statistically ignored area beyond the BLS labor-force boundary. They, too, must be counted as part of the hidden unemployed.
Understanding that unemployment is the Achilles’s heel of the capitalist system, it is not surprising that the official rate is so highly politicized. But it is misleading to accept the official rate or even the useful corrections without also exposing the concealed institutional places where employment is linked to destructive, anti-social activities or where potential workers are forcibly excluded from the work force.
When carefully studied, capitalism’s score on providing jobs is abysmal. Reformers who envision a capitalism divorced from militarism and its institutions, but robust with useful jobs, are naïve. The struggle against militarism, in the end, must take the road of a struggle against imperialism and its parent, capitalism — a revolutionary and not reformist path. Only with socialism will alternative jobs be guaranteed.
Similarly, caging those who have been ill-equipped to fit into a savagely competitive employment scramble only foretells a similar fate for those who pose other challenges to the system. Liberals and reformers miss this point entirely. Nor do they have a plan to incorporate those warehoused by the judicial-penal system into the private capitalist economy.
As Marx anticipated, the quest for a decent job marks the first step in the journey to socialism.
Zoltan Zigedy