Moon of Alabama Brecht quote
January 8, 2007
Nice on Top

by slothrop

We’ve had some tit for tats here whether there exists a global capitalist class. I want to argue there is such a class, even 
though doing so requires occasional leaps into abstraction. There is a class of hyper-globalized elites. The caricatures 
have changed, though. The Man was once the traditional monocled, bejowled fatcat in spats and beaver high hat, crushing the 
head of a worker under monstrous black wingtips. Today it is the time-space displacement of capitalist power shared by waning
and waxing fortunes of virtually itinerant wealth: think Brian O’Blivion with a Carlyle Group investment account. Stateless, 
temporal-less capitalist accumulation built on leveraged finance, speculation conducted less by strategy, least by 
entrepreneurialism, and more by exparte bureaucratic contact and insiders with no historical memory. Long live the new flesh.

Finding this class is important, because according to comrade citizen
k, if we don’t find it, then all we have left to explain power is the
Nietzschean uberman. Same as it ever was. Sadder still, without this
class, there is no normative politics, because there is no target.

We
need to locate this class to also begin to settle another argument once
and for all–the one reproduced in unspelled jeremiads from grand
signor rgiap: no globalist capitalist class, only good French
Capitalist and evil American capitalist; the world here divided between
a classic gemeinschaft of greed represented by tasteful capitalism
defending when it can family wineries and national cinema, and a
gesellschaft of rapacious assholes who watch the wrong kind of football
and wouldn’t know Babylon from Budapest.

Origins of the Power Elite

A touchstone of the sociology of class analysis was surely C. Wright Mills’s Power Elite. What Mills found in 
mid-century America was an old-money "metropolitan 400" (the world of knickerbockers and debutantes) combined with the rising
status and power of celebrities, corporate managers and bankers, military-industry players, and odd parvenu.

The glue holding all this together was the American corporation. For Mills, the historic transformation of the power elite 
is marked first and foremost by the corporatization of economic and political power. This entailed the capture by 
corporations of what Schumpeter called "the entrepreneurial gale of innovation,"–the concentration of resources and 
theoretical knowledge needed to spin the consumer treadmill. To be sure, as Uncle noted recently, this concentration of power
is assured by the 14th Amendment providing the corporation the rights of the individual. And the effect of this transition in
the power elite was to make more opaque the existence of a ruling class, hidden as it is behind the legal fiction of a 
sovereign corporation.

But, as Mills notes, it was hidden only. And this was and is the ruling class’s greatest trick, coinciding with the 
usual justification of inequality by the ideologies of patriotism, Horatio Alger bedtime stories (see the wrteched "Pursuit 
of Happyness" at a bittorrent near you), and xenophobia.

The shifting character of the power elite, Mills thought, was political, economic, militaristic. One had only to locate 
empirically the confluence of wealth and prestige in these spheres to locate a ruling class.

The Third Technological Revolution

But things change. Mills wrote at the apex of the Taylorist labor management revolution and the triumph of Fordist 
rationalized mass production and consumption. The power elite of this social formation was the product of specific time and 
space constraints. The speed of the mobility of capital was impeded by plain old telephone communication and inadequate 
transportation infrastructures in even the US itself. The space of capital’s operation was reduced by the scarcity of raw 
materials and labor. The combination of these constraints fettered industrial capital to impel a coordination and compromise 
with labor and the state. Capital made concessions with labor to divide the surplus more fairly. In the attempt to exclude 
the costs of these concessions, capital conspired with the state to create social guarantees for retirement and healthcare.

Well, as fast as you can say "packet switching," the global scope of capitalist exploitation exploded. Digital communication,
air transport, improving infrastructure (power, roads, etc.) improved the physical mobility of capital. Most importantly, 
manufacturing was progressively deskilled and  Detroit turned to rust while the Maquiladoras sprouted. To put it country 
simple, capital junked the New Deal because the former no longer needed to mollycoddle labor. Capital in fact hardly needed 
the state any longer to fatten or starve the industrial reserve army of workers. What was needed from the state was muscle to
pry open potential markets and provide a guaranteed rate of return on investment, commit to a permanent fiscal crisis by 
starving government revenues offset only by borrowing, and create legal regimes sustaining the status quo.

Global Capitalist Workers

The result of this long revolution is what Castells calls "informational capitalism." Capturing the benefits of digital 
communications and global mobility of investment is a supposed stratum of workers in the (de)industrialized core including 
the "symbolic-analysts" of Reich’s Work of Nations who deploy their computing and management skills from anywhere on 
the planet. Yet, the world in 2005 was still one in which 1.4 billion workers labored in agriculture (40%) and industry (21%)
and services (39%) of which the latter included a tiny fraction of the high-value knowledge work located primarily in the 
OECD. To the extent that workers find a liberated mobility in the flows of "timeless time" in cyberspace, the world’s workers
are chained to the timeclock.

Similarly, the symbolic-analytic productivity made possible by the "flow of spaces" created by information technology, is 
realized by a tiny fraction of workers mostly in the OECD, Southern India, and a scattershot of privileged Asian locations. 
It is no doubt true that networking work can expropriate ("disintermediate") capitalist commodification of knowledge 
products. We see a lot of what Benkler calls "peer production" in software development and even MoA blogging. Yet, the 
benefit of this kind of production for most of the world’s workers trapped in menial ag and manufacturing jobs is currently 
dubious.

But, this globalizing workforce is undeniably expanding. It might be hard to see just where "service economy" ends and 
"informational mode of production begins," but the distribution of this work, and arguably knowledge, proceeds.

No More Capitalist Class?

So, all this capital mobility and labor immobility must benefit someone. For Castells, the globalized knowledge work can 
(sort of) level the capitalist field of play by reproducing a globally distributed meritocracy. Rewards are doled out to 
information society workers based not on inherited, dynastic class position, but by the quality of each contribution to the 
networked global economy.

And as for the capitalist class, this is diffused by the distribution of productive knowledge resources. Class conflict is 
replaced by the autonomous construction of self and the repeated exploitation of power distributed by networks. No class 
without class consciousness; no class object available for contemplation when the unit of analysis in the "information 
society" becomes the "network." Sure, incomes will be uneven in similar occupations across sectors, and run-of-the-mill 
discrimination will persist. But generally, the meritocracy of distributed opportunities will erode classism.

The Global Capitalist Class

The global capitalist class is therefore, according to the sociological logic of "informational capitalism," virtualized as 
the global "flows" of production, consumption, and wealth differentially captured by agents. In this configuration of 
assumedly immediate social relations, Mills’s "power elite" begins to look like the product of a Borgesian lottery. It’s all 
there for anyone and no one. As Garnham puts it, the problem is no longer the direct expropriation of wealth from one class 
by another, but a problem of the distribution of wealth created by financial speculation. In this plexus of opportunity, the 
system is primary, even a reified operation of wealth creation beyond the control of clever individual capitalists.

Well, take this as far as you want. I’m chary of this view, though admit the "virtual" character of this developing 
globalization of work and capital obviates traditional analyses differentiating  the interests of the state, culture, class. 
The critique of globalization by Peter Gowan, John Scott, Frank Webster and others is greatly relevant, but there is truth to
the evolving interdependency of work, investment, conflict implicating French pensioners and German and Indian bureaucrats in
the global production of wealth. Acknowledging this developing fact helps some of us better connect this to the contradictory
tensions of development, like overaccumulation, which no "informational capitalism" can escape but only distribute among transient losers and winners in the global marketplace.

Comments

Our own capitalists are aware of all this, and scared to death of the fact that they can be swapped out for capitalists from India, China, Russia, Bahrain, Singapore, etc., at the drop of a silk top hat.
There once was some validity to the “trickle down” theory of economics in the days of national economies. But nowadays, capital seeks the highest rate of return wherever it can be found, and not necessarily in its country of origin.

Posted by: ralphieboy | Jan 8 2007 11:29 utc | 1

Being that it was Paul Wolfowitz’s idea that Iraq’s oil revenues could pay for the war and reconsruction, and hes now the head of the IMF/World Bank, what could he say if Iraq asked for a loan from the IMF to get there oil industry up and running on their own, cutting the carpet baggers (Shell, Mobil, Standard, BP) completely out of the deal?
Really…It was Wolfowitz’s idea to begin with.

Posted by: tescht | Jan 8 2007 12:41 utc | 2

The “rising tide lifts all boats” theory was applicable in the time of national economies, but in a global economy, capital will flow to wherever in the world it gets the highest rate return, often leaving US workers stranded.
In any case, the “Free Market” has become every bit as much of an idology as global communism ever was. And just as the Communist parties were ready to sacrifice their own populations to propagate their idology, the global “free market” economy is prepared to sacrifice the people it is supposed to benefit.
Even Adam Smith, the father of Free Market Economy, reminded us that markets were there to serve people’s interests, not the other way around.
” In the 1980’s capitalism triumphed over communism. In the l990s it triumphed over democracy….” “-David Korten
That was twenty years ago…

Posted by: Uncle $cam | Jan 8 2007 12:42 utc | 3

The Great Turning: From Empire to Earth Community
From the cover…The Great Turning is a work of amazing scope and depth. This is a wise and much needed book that shows we can create cultures where our enormous human capacities for joy, caring, and cooperation are realized.
~Riane Eisler, author of The Chalice and the Blade
Interesting post btw, slothrop, thank-you.

Posted by: Uncle $cam | Jan 8 2007 12:47 utc | 4

Notes from the bottom…?
David Korten at the 2006 Green Festival in San Francisco
We live in a world where the politics of our ancestors
take precedence over the priorities of our children.
What we need now are not the frail ideals of the past,
but more hopeful dreams, and less painful memories.
Children are our dancing dreams.
Now is the time to breath chaos into the humdrum of tired cadences,
To waltz past the toil of decadent march,
Shouting,
“Let loose your dwellers,
you habitats of orphaned imaginations.”

Posted by: Uncle $cam | Jan 8 2007 13:19 utc | 5

Finding this class is important …
Agree. From afar I feel I see my native America through a sharper lens, but for me at least, I locate the results of the causal factors you broach above in more practical terms, vis-à-vis daily life: where and how life is lived, how livings are earned, what is bought, what is eaten, and the changes I’ve seen in my lifetime in my small hometown mirror of American life, viewed from a distance. So a few things I came across today, linked below, seem relevant.
anna mised’s link @ 47 fits nicely into this discussion, e.g.:

Industry is our government. Our votes merely decide which industries have front spots at the public trough for the next four to eight years. Lately it has been Big Pharma and the credit industry, and what a run they’ve had. Mandatory mental health screening in schools stuffs more prescription drugs into children. The credit card industry’s new bankruptcy laws wring the last drop from consumers, instead of giving them the fresh start our forefathers had in mind when they established debtor’s laws. But in a new twist on incarceration, they make one’s home the new debtor’s prison, a place where we sleep while we work off usury interest payments on debt.
Meanwhile, out there in the vast looms of our government-as-corporation,the fast food industry weaves the Cheeseburger Bill, giving itself immunity to lawsuits as it fattens a nation of steers whose sole purpose is to consume, never to be butchered, except in the wars that protect the corporate cheeseburger. Even on the battlefront, it turns profit on millions of burgers and fries that are served to those who fight the oil and cheeseburger wars. American consumers watch this on TV and see it as comfortably familiar. We cannot possibly be doing so badly in Iraq if a soldier can get a Fishwich, a Red Bull, and a Puff Daddy CD on the battlefield. Right? Which is true enough, if you have been conditioned to see a Fishwich and a CD as a symbol of liberty and the utmost accomplishment of the republic — if you see it as “our way of life.”
snip …
Toqueville pointed out that Americans no more than got a nice family home built, than we turned around an immediately sold it for no apparent reason, other than the joy of the transaction. Then they were off to pursue some other transaction.
snip …
It is irrational that any culture born in the Age of Reason would turn out to be so irrational — so completely in unquestioned contradiction it cannot be persuaded by argument, no matter how compelling. It seems doubtful that reason will ever provide the answer to this dilemma. I can tell you from experience that standing up in a KFC holding a “Buffalo Snacker” and yelling “Do you people really eat this shit?” is not taken as a call to reason. Meanwhile, the boys in corporate are cooking up a thousand fresh hells for us, including a 24/7 Pentagon TV channel and The Superbowl, KFC’s new Chicken Potato Cheese Gravy Wad o’ Food — ample proof in itself that civilization is about done for.

and on that note:

Here, in the rural Southern Tioga School District, the schools distribute the state-mandated reports even as they continue to serve funnel cakes and pizza for breakfast. Some students have physical education for only half the school year, even though 34 percent of kindergartners were overweight or at risk for it, according to 2003-4 reports.

Bob Herbert in today’s NYT (Select) chimes in on our topic du jour with “Working Harder for the Man”:

In a development described by Mr. Sum as “quite stark and rather bleak for the economic well-being of the average worker,” the once strong link between productivity gains and real wage increases has been severed. The mystery to me is why workers aren’t more scandalized. If your productivity increases by 18 percent and your pay goes up by 1 percent, you’ve been dealt a hand full of jokers in a game in which jokers aren’t wild.
Workers have received some modest increases in benefits over the past six years, but most of the money from their productivity gains — by far, it’s not even a close call — has gone into profits and the salaries of top executives.
Fairness plays no role in this system. The corporate elite control it, and they have turned it to their ends.
snip …
The pervasive unfairness in the way the great wealth of the United States is distributed should be seen for what it is, an insidious disease eating away at the structure of the society and undermining its future. The middle class is hurting, propped up by the wobbly crutches of personal debt. The safety net, not just for the poor, but for the middle class as well, is disappearing. The savings rate has dropped to below zero, and more Americans are filing for bankruptcy than for divorce.
Your pension? Don’t ask.
There’s a reason why the power elite get bent out of shape at the merest mention of a class conflict in the U.S. The fear is that the cringing majority that has taken it on the chin for so long will wise up and begin to fight back.

As alabama @30 so eloquently put it (with regard to Iraq)
“the American people must never, never learn the lessons to be drawn from the defeat of their military machine.”
To me it seems the American people must be prevented from learning any lessons.

Posted by: Hamburger | Jan 8 2007 14:01 utc | 6

Your pension? Don’t ask.
He means, I suppose, that too many pension funds are tanking. True, but some others aren’t tanking at all–TIAA-CREF, for example, or its union analogs.
Being the owner of the tiniest piece of such a fund puts that owner at odds with anyone who isn’t such an owner. And so we don’t have to look at the very rich to see members of a “hyper-globalized elite”. Perhaps we should even look elsewhere.
Though the proletariat certainly is, it isn’t what it used to be, and a truly effective and pertinent “New International” may have to form itself outside the labor movement in its current form, however enfeebled the labor movement may be. Because labor unions live or die on their pension funds–just as academics live or die on the strength of TIAA-CREF.

Posted by: alabama | Jan 8 2007 14:42 utc | 7

CalPERS – the largest U.S. public pension fund with over $200 billion in total assets
takes names and kicks ass, p. 3 (pdf)

Posted by: Hamburger | Jan 8 2007 14:57 utc | 8

Being the owner of the tiniest piece of such a fund puts that owner at odds with anyone who isn’t such an owner.
Ummm. That would be me. Tiniest piece. But a piece.

Posted by: Hamburger | Jan 8 2007 15:01 utc | 9

Okay…I’m lost.
(Enjoying yr writing, though)
So…there is a global capitalist class, but it turns out to be…the network. The network (the spectacle?) reifies its own value system (max good = max return on investment) and offers out goodies to those who plug in and play. Rgiap’s analysis, on this model, misses out the primacy of the (ever more) global network (images of tentacles) and focuses on spats between various winners of today’s network game. (Winners who may become losers overnight, if that is the best way to maximise return on investment.)
I’m sure you’re not saying any of that. The matrix would be a model for what I described, I suppose. But I was trying to follow what you wrote (honest, guv!) I noticed your capitulation to the over-determination of initial Capital…It’s fine. Either way. I like the inside jokes…inside the commas inside the commas.
So. Er. Which bit did I get wrong and do you have an analysis of how humans can expropriate power from X [Where X is ?] and share it out…ach….argh!

Posted by: Argh | Jan 8 2007 15:48 utc | 10

Bernhard says at the end of his post:

… there is truth to the evolving interdependency of work, investment, conflict implicating French pensioners and German and Indian bureaucrats in the global production of wealth. Acknowledging this developing fact helps some of us better connect this to the contradictory tensions of development, like overaccumulation, which no “informational capitalism” can escape but only distribute among transient losers and winners in the global marketplace.

On how US will stay on top

snip …
A report in the January 7 Los Angeles Times indicates that the US already has succeeded in choking off a great deal of financing and technology for Iran’s critical oil sector. [2] It appears that the US has obtained at least some degree of Russian and Chinese cooperation in delaying energy development agreements in Iran. European banks, including the major Swiss banks, are refusing new business from Iran at the request of the US Treasury, the Los Angeles Times reports.
Iran now spends 15% of gross domestic product on energy subsidies, paid out of net oil exports that are likely to fall to zero over the next 10 years. If the US continues to tighten the tourniquet around Iran’s energy sector, the result may be political chaos in Iran, including disaffection among the Turkic (Azeri) minority that comprises a quarter of Iran’s population.
There has been an inordinate amount of nonsense written about US decline, complete with Russian and Chinese designs to benefit from America’s embarrassment in Iraq. The reality could not be more different. Neither Moscow nor Beijing has the remotest desire to see the US withdraw from the region or lose power, for two reasons. The first is that America’s presence in the region ensures that little wars will remain little. The second is economic. America’s economy and particularly the appetite of American consumers for imports remains the locomotive of the world economy, most emphatically of China’s. China’s trading relationship with the United States is an irreplaceable pillar of national prosperity, and the means to generate the national savings China requires to establish what President Hu Jintao calls “the harmonious society”.
If, hypothetically, the Persian Gulf were to go up in flames and the price of oil were to double, the US economy would tumble into recession. China’s even more oil-sensitive economy would experience a double blow, in the form of higher energy costs and reduced exports to its major markets in the industrial world. By the same token, if Central Asia were to slide into chaos, the biggest loser would be Russia.
Russia and China will bargain hard in return for providing cooperation to the United States, … but their interests ultimately overlap with America’s sufficiently to create a concert of nations to contain Iran. If economic pressures do not succeed, the option of a military strike remains ready.
snip …
civil carnage is part of the solution.

I hope this is not too off topic – it just seems to me that we can’t locate the top dogs without talking about the top guns and how they manipulate war to their economic ends.

Posted by: Hamburger | Jan 8 2007 16:01 utc | 11

“The Man was once the traditional monocled, bejowled fatcat in spats and beaver high hat, crushing the head of a worker under monstrous black wingtips.”
Today the global class are the offspring of The Man.

Posted by: Anonymous | Jan 8 2007 16:23 utc | 12

Castells:

So all these are capitalists, presiding over all sorts of economies, and [474] people’s lives. But a capitalist class? There is not, sociologically and economically, such a thing as a global capitalist class. But there is an integrated, global capital network, whose movements and variable logic ultimately determine economies and influence societies. Thus, above a diversity of human-flesh capitalists and capitalist groups there is a faceless collective capitalist, made up of financial flows operated *y electronic networks. This is not simply the expression of the abstract logic of the market, because it does not truly follow the law of supply and demand: it responds to the turbulences, and unpredictable movements, of noncalculable anticipations, induced by psychology and society, as much as by economic processes.
This network of networks of capital both unifies and commands specific centers of capitalist accumulation, structuring the behavior of capitalists around their submission to the global network. They play their competing, or converging, strategies by and through the circuits of this global network, and so they are ultimately dependent upon the nonhuman capitalist logic of an electronically operated, random processing of information. It is indeed capitalism in its pure expression of the endless search for money by money through the production of commodities by commodities. But money has become almost entirely independent from production, including production of services, by escaping into the networks of higher-order electronic interactions barely understood by its managers. While capitalism still rules, capitalists are randomly incarnated, and the capitalist classes are restricted to specific areas of the world where they prosper as appendixes to a mighty whirlwind which manifests its will by spread points ,and futures options ratings in the global flashes of computer screens. What happens to labor, and to the social relationships of production, in this brave new world of informational, global capitalism? Workers do not disappear in the space of flows, and, down to earth, work is plentiful. Indeed, belying apocalyptic prophecies of simplistic analyses, there are more jobs and a higher proportion of working-age people employed than at any time in history. This is mainly because of the massive incorporation of women in paid work in all industrialized societies, an incorporation that has generally been absorbed, and to a large extent induced, by the labor market without major disruptions. So the diffusion of information technologies, while certainly displacing workers and eliminating some jobs, has not resulted, and it does not seem that it will result in the foreseeable future, in mass unemployment. This in spite of the rise of unemployment in European economies, a trend that is related to social institutions rather than to the new production system. But, if work, workers, and working classes exist, and even expand, around the world, the social relationships between capital and labor are profoundly transformed.

like i say, it seems to me the “transformation of social relations” is surely correct, but in my view the complexity of global capitalism does not obviate class conflict. so, “the network” facilitates the “uneven” expansion and contraction of markets, enabling capital to manage the reserve army of workers who are not connected in any vital way to “the network.” put another way, the “network” is the virtual form of “the state” — making it all the more difficult to identify who or what has power.

Posted by: slothrop | Jan 8 2007 17:08 utc | 13

Rgiap’s analysis, on this model, misses out the primacy of the (ever more) global network (images of tentacles) and focuses on spats between various winners of today’s network game.
yeah. this is exactly what i mean. thanx.

Posted by: slothrop | Jan 8 2007 17:10 utc | 14

abstract theories create abstract action. it does not change the real situation.
We need to locate this class to also begin to settle another argument once and for all–the one reproduced in unspelled jeremiads from grand signor rgiap: no globalist capitalist class, only good French Capitalist and evil American capitalist
can you link to where r’giap wrote this, or is that what the neologism “unspelled” is for?

the book uncle mentions, the great turning, looks to be rewarding. actually just started reading it last night. here’s a paper that from 2002 written by korten, vandana shiva, & nicanor perlas (w/ influence from eisler) – global civil society: the path ahead

Posted by: b real | Jan 8 2007 17:31 utc | 15

Quoted in slothrop @13:
… the massive incorporation of women in paid work in all industrialized societies …
… in spite of the rise of unemployment in European economies, a trend that is related to social institutions rather than to the new production system.

In a recent report on CNNI regarding Romania and Bulgaria’s entrance into the EU, there was a story featuring a Romanian sewing factory with idle machines lanquishing for workers, as, it was reported, Romanian (women) didn’t want such jobs. The factory owner had imported 200 Chinese (female) workers, with plans to bring in 2000 more.

Posted by: Hamburger | Jan 8 2007 17:55 utc | 16

What if certain US elites so fear the rise of the sleeping giant that tanking our economy seems the only feasible way to stop/slow down the imminent rise of the world’s next superpower? The ensuing cataclysmic chaos (here, and abroad) could even have the added benefit of greatly reducing the world’s population, which may be attractive to US elites, whose position would allow them to wait out the chaos, and emerge, when the global dust settles, back on top. The Walton family has already built their multi-million dollar bunker. Does this sound totally paranoid? Yes, I’m afraid it does…because so are they.
This is my second post. What an amazing site. Thank you Uncle $cam for tuning me in to the incredible dialogue happening here. Back to work.

Posted by: Chameleon | Jan 8 2007 18:12 utc | 17

slothrop
now, who is being reductive. i’ve never preferred this or that capitalist class nor have i in any instance argued against the internationalisation of capital
what i do argue however & i will argue it again – is that imperialism has a national character even tho the beneficiaries might also be elsewhere
you have not argued, specifically – why the 98% of those companies benefiting from the invasion & the occupation of iraq – through deals, graft, & corruption – are american
& it is what you leave out which i find scandolous within this context – when i speak of indonesia, vietnam or latin america – i am telling you – that there is a consisent policy by imperialists that finds its vulgar & cruel expression in the illegal invasions & occupations of iraq & afghanistan
& by leaving this out, leaving out the strategies that have been nourished in the agencies of intelligence (nsa, cia etc) & coupled with the so called think tanks from the rand corporation on who guide very clearly the national & transnational policy of imperialism
& the matter of murder of the other – which is the natural consequence of those strategies & policies is notably absent
& personally i am of mixed origin – born in australia – living in france for over 20 years & in europe for another seven – & having worked on all continents – that i prefer this or that capitalis class is ridiculous but let me say, you work from a university – a good place for a worker to be but i also worke in the blood & sludge of social relations in france & i can see very well indeed – what capitalism in its final stages is capable of doing
& while transnational capital exist there exist those who make the decisions & thos decisions are taken on a national level & those decisions – the decisions that have mattered to all our lives have been thought up by those sadists who wipe out our names, are in washington
& i argue further, that there has never been a time except for the german nation 39-45 when the national policies of a nation need to be attacked with all the force we possess & as malcolm sd by any means necessary
in the last 40 years – it was the fault of the left in britain & globally to not respond to the attack on the working class, the working poor & generations of people now populate what is genteelement called the underclass – that marx’s term lumpenproletariat eytmologically defines in terms that are clearer

Posted by: remembereringgiap | Jan 8 2007 18:31 utc | 18

abstract theories create abstract action. it does not change the real situation.
theories are always “abstractions.” global capitalism is admirable for the extent to which a model of its development as a “network” evades theorization. this concealment of power and its presumed distributions benefits power. it is very difficult indeed to know what the “real situation” is. but that’s what theory is for. without an adequate model, it seem to me three faulty assessments damage the coordination of opposition:
1. we latch onto the old models (empire, state, classic class struggle, core/periphery) causing much confusion which i ascribe to rgiap’s eurocentric view.
2. we latch onto this or that “movementarianism” believing that the proliferation of viewpoints will magically coelesce around opposition to global capital. this is the anarchist’s dream. more confusion.
3. like castells, society of spectacle folks, deconstructionists et al., the system of domination (global capital) is reified and will be perhaps exhausted by its contradictory development. this seems to me to be debord’s basic view. unlikely, no?

Posted by: slothrop | Jan 8 2007 18:47 utc | 19

continuing what i was obliquely saying at the end of the last post – the policies & practices of margaret thatcher were the avant garde of the attack on all institutions of defence of the working class & specifically of the poor
it was under the elites of that period – that the lines between the elite & the community became very clear. what thatcher programmed for the nation state – reagan did internationally. their attack on the mass of people were decisive. the labor movement, housing, medical care & education were crushed. & it has been downhill ever since
& i would argue that the absence of a real & fundamental attack by the left was precisely through arguments about the ‘open-ness’ – & about the infinitude of capital’s reach. transnational corporation,investment & funding do not in & of themselves weaken the national characteristic of this or that power. the anti immigrant fever which seems to resonates with the elites of america would be self defeating in slothrop’s analysis because they bring the cheapest labour to capitals door
i remember this moment of thatcher clearly – how she & people like murdoch went about their strategy at all moments waiting for the response that never came from the left. the attack on the miners & the printers was not fundamentally about modernity but about power. & how that power would be articulated, expressed, enunciated
it was the mafia strategy of isolating your opponent, ridiculing & demonising & then finally destroying that opponent. union after union was deregistered then criminalised in england australia & elsewhere. legal aid & medical assistance were drastically cut. education – where it had been free became just another aspect of privatisation
there were two aspects that do not seem close on the surface but to me are inextricably linked. the monopolist strategies of murdoch & his allies, their liquidity completely dependant on illegal activity of this or that kind comprimised journalism & commentary, fatally. & at the other end – jurisprudence was corrupted to permit a criminalisation of the poor that had not been seen since the 18th century & the privatisation of the prisons & incredible increases in the population being imprisoned
by the left not attacking with all its power & multiplicity – the thatchers & the reagans has allowed the period we are living through today to be so close to the tyranny that it actually is
it is not an accident that the imbeciles have called this moment the war on terrorism because that is precisely how capitalism has ruled for the last 25 years – by terror
so again i am suggesting that you must attack locally & think globally as b real has sd – & if you are not capapble of attacking the powerful then at least, as a minimum, defend the oppressed

Posted by: remembereringgiap | Jan 8 2007 20:22 utc | 20

left wing communism – an infantile disorder – ohio impromptu

Posted by: remembereringgiap | Jan 8 2007 21:46 utc | 21

It’s an interesting post pitting two divergent views. Myself I think you are both right take the US sanctions on Iran for example:
SKS Ventures signed an MOU or a preliminary agreement with the National Iranian Oil Company (NIOC) to develop Iran’s southern Golshan and Ferdos gas fields and to build plants to produce liquefied natural gas (LNG), foreign news agencies reported on Sunday.
“We don’t worry about the sanctions. There’s so much liquidity, you don’t have to go to New York,” the source said, adding that the firm could raise funds in the Middle East or Iran itself.

http://www.btimes.com.my/Current_News/BT/Tuesday/Frontpage/BT602874.txt/Article/
The world moves on and China now designs its own fighter jets. 20 years ago they said no it couldn’t happen.

Posted by: Sam | Jan 8 2007 21:49 utc | 22

Slothrop, really nicely done.

Posted by: Austin Cooper | Jan 8 2007 22:17 utc | 23

Thanks for this interesting post, slothrop.

Capturing the benefits of digital communications and global mobility of investment is a supposed stratum of workers in the (de)industrialized core including the “symbolic-analysts” of Reich’s Work of Nations who deploy their computing and management skills from anywhere on the planet.

That would be me – and possibly my kids.
I am not a theorist, just an actor. But in the spirit of contributing somehow to this discussion I can say that from my point of view what is un-articulated here but needs to be understood to make sense of the power and endurance of the present market-economy goods-distribution and capital-allocation model, especially in the face of such obviously destructive and wasteful policies evident on the part of certain actors, is the incredible efficiency of the current distributed price-driven global resource allocation system. While I think there is some validity to the view that much of the pace of the past century’s increase in living standards was due to a one-off fossil fuel binge, much is also due to the global expansion of edge-organising market economics. Each decision by each village wife is fed up the chain and sideways, to the village herder, the next village, the region etc. as quickly as information can propagate and goods can ship; which nowadays is very quickly indeed. Each innovation, whether a new cutting tool in China or a music video in Soho, is fed in every direction in response to demand-price-pull and risk-capital-push. Each capital allocation decision, whether $50 for a mobile phone or $500m for a factory or shopping center, is also fed into this nearly infinite matrix of demand and supply and rewarded, or not, by how well it serves the whole. This simply cannot be done in a top-down way.
Is it coincidental that the mesh-like self-routing topology of this network is so similar to that of the internet?
From my point of view the stupidity, short-sightedness, willful cruelty and selfishness of certain electorates and their representative leaders are just warts on the immense body of the intellectual and social capital embodied in this world-wide commercial ethic; and to the extent that their investments are non-productive and consumption wealth-destructive their power in this system of trust and exchange will inevitably decrease. Likewise, groups that cannot propose a change to the system in a way that will see its productivity increase will not increase their bargaining power. This is not to discount the value of the production of peace, security, health, solidarity and other possibly currently under-produced consumption goods.
I don’t think anyone is “in charge”. I don’t think any entity has the capacity to comprehensively understand, let alone determine this system. I also think that the starvation and die-off from a fundamental collapse of this system of trust, communicatio, allocation and exchange would dwarf anything we might see from Peak Oil. Humanity is a body in which capital and trade are the circulatory system which evolved throughout our history, with many set-backs. We are hostage to the productivity of the market-economy at this point.
Are you intending to articulate an alternative?

Posted by: PeeDee | Jan 8 2007 22:26 utc | 24

Interestingly enough, over at ‘wot is it good 4 blog’ comes the following which perhaps explains a paralax view of, if not the ‘Origins of the Power Elite’, then at least the ‘Optimized Control Strategy’ thereof: christianist billionaires, heroin and the military-industrial complex it’s a long read however, a must read, including the comments, and seems –to my mind anyway– to weave into the thoughts ideals expressed here and in particular slothrop’s fine post like a space-time tapestry of systems interwoven within the system.
Anybody else grep what I’m saying?

Posted by: Uncle $cam | Jan 9 2007 2:19 utc | 25

Opps, re: my #25 scroll up to start at the top of the post, as I linked to the comments already in progress, please don’t let my html mistake discourage you as it is a thought-provoking critique and again, –to my mind– interlocks with this one on many levels.

Posted by: Uncle $cam | Jan 9 2007 2:27 utc | 26

margaret thatcher were the avant garde of the attack on all institutions
this neoliberalist “reform” occured everywhere–internationalized by wto, world bank
the anti immigrant fever which seems to resonates with the elites of america would be self defeating in slothrop’s analysis because they bring the cheapest labour to capitals door
indeed, this is promoted by elites very carefully because xenophobia can lead to class consciousness or “populism” as the fat cats call it. but, anti-immigration is a misguided point of tension pitting workers against workers.
by the left not attacking with all its power & multiplicity – the thatchers & the reagans has allowed the period we are living through today to be so close to the tyranny that it actually is
again, i insist the “failure of the left” was owed by the declining relevance of national or regional coordination of l;abor, and the increasing relevance of a global expansion of markets benefitting a virtual capitalist class. there is only a limited “local” component to struggle.
you must attack locally & think globally as b real has sd
I’m not certain, but i think “localism” as doctrine of anything, is helpless in face of the global mobilization of economic power by a capitalist class all too conscious of itself when it needs to be.

Posted by: slothrop | Jan 9 2007 2:50 utc | 27

I don’t think anyone is “in charge”. I don’t think any entity has the capacity to comprehensively understand, let alone determine this system.
I think this is somewhat wrong because we have scads of proof (policies, economic analysis, history) someone always makes history behind other men’s backs. on the other hand, it seems right that there is abb and flow of “structurated” behaviors (signalling a left turn in a kansas cornfield when completely alone) and the ways in which finance created wealth is automated, and thow stock values are determined by irrational choices, etc. but, this indeterminacy and chaos is designed as a form of justication for what are widely perceived to be ineluctable, natural relations determined by individual choices.

Posted by: slothrop | Jan 9 2007 3:02 utc | 28

China’s Stamp
Chinese Foreign Minister Li Zhaoxing is midway through a seven-nation tour of African countries — Benin, Equatorial Guinea, Guinea Bissau, Chad, the Central African Republic, Eritrea and Botswana. He brings a program of debt forgiveness, fresh credits and deals to help these largely poor and underdeveloped states improve their economies. There are undoubtedly commercial opportunities here for Chinese business, not least in the supply of raw materials, but there is more to this progress through countries which have often been neglected by the West.

Posted by: Rick | Jan 9 2007 3:04 utc | 29

President Calvin Coolidge said the business of America is business. And Slothrop’s links point to discussion of Sibel’s recent articles, concerning the way that black-market transactions and money-laundering are wired-in to the arms trade that the US does with certain “friendly nations”. The US has been institutionally, thru CIA, involved in this trade, going back many years.
I guess it doesn’t take rocket science to figure out why China is bankrolling US resource war. Because it’s so damned profitable. Let’s lay an equal weight of culpability. Do they care how many corpses US President X piles up? Sweden sold a shitload of iron ore to the Nazis and the Swiss turned the lathes in their workshops,and American financiers drove a stake into the heart of the Wiemar Republic before that.
I grasp and understand rgiap’s analysis much better than the nebulous model of economic inter-relationship, precisely because his focus is political and posits, economic, political actors, and points directly to what he calls the “criminalization of the poor”. This way of looking at things seems more obvious due to the acceleration of this process over the last six years.
Does the US Walton family care if China cranks out the cheap products which the increasingly impoverished American working class buys? No. It doesn’t bother this economic elite worldwide, if wage slaves or absolute slaves in China, drive the engines of commerce.
There is a constitutional showdown coming very soon in America. And I’m an American. I’m here to bear the brunt of this, like so many of my countrymen. I feel that we are standing before history, and will be judged. Is this a government of the people? Or does an oligarchy and its figurehead president of the day trump the people and their representatives? Stay tuned and pray for us.

Posted by: Copeland | Jan 9 2007 5:43 utc | 30

Chalmers Johnson continues his thoughts on The Sorrows of Empire in the January Harpers with his own version of a National Intelligence Report. Johnson says that the U.S. has used a form of military Keynesianism since Eisenhower.
wonder how his pov fits in here.
Johnson notes that military Keynesianism goes beyond the original idea that govt intervenes to stop a hard contraction of an economy by continuing to “prime the pump” of military manufacturing money no matter what the state of the economy. As has been noted here before, Johnson recognizes that military spending has been the “secret economic weapon” of the American economy.
will globalists outsource such production to the lowest bidder? if such govt spending not only creates an economy, but also justifies militarism, what benefit would political powerbrokers gain by undermining the one manufacturing source that secures power both at home and abroad?
however, if this same spending creates trillion dollar deficits, doesn’t such military spending depend upon china and japan’s dollar buying…and thus china helps to fund military ventures against its purported allies? is this the global capital class example of this sort of economy?

Posted by: fauxreal | Jan 9 2007 7:38 utc | 31

Thanks to all, especially Uncle, for an interesting thread. It is striking, to me at least, that subtantial chunks of what, a few years ago, would have seemed (again, to me at least) like outlandishly radical theorizing on the mechanisms of manipulation are now rapidly creeping into the conventional wisdom of “moderate” lefties. The nub seems to be that the warfare state needs an ever present demon, and, one way or another, such a demon will always be found or created if necessary. Since we are presently afflicted with our third major demon, there is rather good empirical and historical evidence to validate the theory, indeed so much so that its diffusion into “previously sound” environs seems likely to accelerate. Even some paleo-conservatives seem ready to buy into
this analysis, which, although framed in a Marxist context here, fits quite well into the classical conservative and anarchist traditions.

Posted by: Hannah K. O’Luthon | Jan 9 2007 10:04 utc | 32

I do not think, Slothrop, that this argument will ever be settled “once and for all.”
The internet, computers, all the rest, have really changed very little. They have provided some elaborate screens, opportunities for obfuscating, but strategies and goals are unchanged.
Except for one thing: The elite–national Capitalist class or global–sense that the game is nearing its end. This has actually been true since Reagan and Thatcher, and indeed is the REASON for Reagan and Thatcher. By 1980 industrial civilization had already peaked: Real growth, as opposed to nominal growth, (at least in the sense of per capita benefits) was no longer possible, so the downsizing had to begin. Now the signs are everywhere, from the melting Himalayas to the price of oil to the censoring of the M3 money supply number to dead grackles in Austin Texas.
But they don’t want it to end. And their clinging is the engine of this century’s heightened violence and destruction. Most of their energy is now going into just keeping it going. Their nominal wealth grows, but their is no productive place to put it. This means that the system that produced and maintained them is reaching its physical limits and is about to fail. They have no idea how to prepare for this.
They don’t want you to know that their position is really very weak. Of course, they control massive tools of violence. But it is a stick with no carrot. They no longer have anything to offer, except deceit. They have nothing positive to offer anybody. The best they can do–if you cut through the fog of their words, is to offer–as in the movie Soylent Green–to be one of the last bodies eaten. And some WILL be deceived by this, though they will get around to destroying everyone who serves them, sometimes sooner–as with the soldiers in Iraq–sometimes later.
Those who think will be looking for a way out. It is not easy. But no matter where you are, or what you do, there are ways to start detaching from the system. They are small, but they are many. This is passive resistance: Not to buy from them, not put your energy into them, not to support them, not to believe them.
Detaching will provoke a reaction: In time, after many people are doing it, surviving will be made illegal. Then we enter a time of asymmetrical warfare. Things will get complicated. For although they will be able to apply overwhelming force anywhere, force will not give them control, and each application of force will bring nearer the day when they lose control of their force, which requires an elaborate infrastructure for its maintenance. Even now they are starting to eat out that infrastructure, though this process will take a while.
After that things get murky. Survival is already rather probabalistic for many, and it will get more so, for more people.
What lefties should do: Concentrate on developing small, co-operative groups that do practical, life-oriented tasks. Food, water, protecting those resources that are not yet destroyed.
Decentralization is the key to everything, since being centralized means making yourself into a target.

Posted by: Gaianne | Jan 9 2007 10:45 utc | 33

From the folks over at http://www.truthout.org:
“George F. Will, a syndicated columnist for the Washington Post, rejects the federal government mandating a raise in the minimum wage. Why? Because the market is better than Uncle Sam at setting the price of commodities such as human labor, he writes.”
And that is the key flaw of neoliberal thinking. Human labor is right down there with pork bellies, soy beans and bauxite: another commodity. For an office we are on a level with staples, toner and copier paper: another cost factor to me minimized or abolished if possible.
That is where the Ideology of the Free Market fails: human life and labor is not a commodity, human beings are the reason for the market and the ones who are supposed to benefit from a functional, functioning economy.

Posted by: ralphieboy | Jan 10 2007 6:47 utc | 34

@ Ralphieboy:
yeah, funny how the Invisible Hand turns out to be a Mighty Fist.
As long as wealth is measured in money instead of well-being, sacrifices to Moloch are required.

Posted by: catlady | Jan 10 2007 7:46 utc | 35

@ gaianne 33
& a moving target is harder to hit
slothrop we are not so far apart except i think you omit too many specific trajectories within capital & i imagine i’m a little too crude for yout theological approach

Posted by: remembereringgiap | Jan 10 2007 20:48 utc | 36

“We’ve had some tit for tats here whether there exists a global capitalist class. I want to argue there is such a class, even though doing so requires occasional leaps into abstraction.”
Trust me, it’s not abstraction. I’ve spent enough time around European corporate types and Middle Eastern kleptocrats to know that while they hate and despise America and Americans, they understand perfectly well that the US of A is the gendarme of capitalism. And they’re well aware who’s property and perks are being guarded.

Posted by: Peter Principle | Jan 10 2007 22:28 utc | 37

upstream, the book i remarked on as “looks to be rewarding” turned out to not be so. in fact, i was quite disappointed w/ the thing. it sounded interesting – a critique of empire & ideas on how to move away from a dominator society toward a more sustainable community based on mutualism, partnerships, and integration w/ the natural world. the author had sketched out many of the ideas through active collaboration w/ someone i really respect – vanada shiva (and i do like her book earth democracy), but while some of the critiques & analyses are decent, eventually the author’s narrative & vision becomes increasingly unrealistic & self-serving .the solution the author describes requires a spiritual turning toward higher consciousness, which can only be led by mature adults who have attained a state of cultural & spiritual awareness that most people are unable to reach under the present forms of living. and it has to be a pacifist movement (at all costs – a problem illustrated by the fate of the two cliched models the author enshrines in the latter chapters – gandhi & mlk) and we’ll still have hi-technology & many of the same institutions we do today. derrick jensen demolishes this type of thinking in his latest book. thus, i withdraw my “rewarding” attribute & cannot recommend the book as a blueprint worth turning to/with.

Posted by: b real | Jan 18 2007 3:41 utc | 38

obviously i thought i was typing “vandana”

Posted by: b real | Jan 18 2007 3:44 utc | 39

thanks breal
btw…the mishel book on labor in u.s. notes rising profit rates. globally, the point i tried to make, seems to be declining in long run. but, i need to find a cite.

Posted by: slothrop | Jan 18 2007 3:53 utc | 40

castells places global finance networks at the top level of the informational/global economy because of their ability to seek the highest profits across global markets, thanks to the innovations of technological conditions which appear to make time & space irrelevant. they can move bytes around, but i question how that gives those associated w/ it (creators? owners? administers?) status as a dedicated global capitalist class. speculative finance is virtual capitalism – largely illusory, artificial, and volatile. capitalists may use the technological innovations that permit informational capitalism, but they’re still subject to the laws of physics, and thus grounded in particular locales, restricted to specific markets.
again, here’s a link to walden bello’s recent essay on the decline of economic globalisation
Globalization in Retreat

Why did globalization run aground?
First of all, the case for globalization was oversold. The bulk of the production and sales of most TNCs continues to take place within the country or region of origin. There are only a handful of truly global corporations whose production and sales are dispersed relatively equally across regions.
Second, rather than forge a common, cooperative response to the global crises of overproduction, stagnation, and environmental ruin, national capitalist elites have competed with each other to shift the burden of adjustment. The Bush administration, for instance, has pushed a weak-dollar policy to promote U.S. economic recovery and growth at the expense of Europe and Japan. It has also refused to sign the Kyoto Protocol in order to push Europe and Japan to absorb most of the costs of global environmental adjustment and thus make U.S. industry comparatively more competitive. While cooperation may be the rational strategic choice from the point of view of the global capitalist system, national capitalist interests are mainly concerned with not losing out to their rivals in the short term.
A third factor has been the corrosive effect of the double standards brazenly displayed by the hegemonic power, the United States. While the Clinton administration did try to move the United States toward free trade, the Bush administration has hypocritically preached free trade while practicing protectionism. Indeed, the trade policy of the Bush administration seems to be free trade for the rest of the world and protectionism for the United States.
Fourth, there has been too much dissonance between the promise of globalization and free trade and the actual results of neoliberal policies, which have been more poverty, inequality, and stagnation. One of the very few places where poverty diminished over the last 15 years is China. But interventionist state policies that managed market forces, not neoliberal prescriptions, were responsible for lifting 120 million Chinese out of poverty. Moreover, the advocates of eliminating capital controls have had to face the actual collapse of the economies that took this policy to heart. The globalization of finance proceeded much faster than the globalization of production. But it proved to be the cutting edge not of prosperity but of chaos. The Asian financial crisis and the collapse of the economy of Argentina, which had been among the most doctrinaire practitioners of capital account liberalization, were two decisive moments in reality’s revolt against theory.
Another factor unraveling the globalist project derives from its obsession with economic growth. Indeed, unending growth is the centerpiece of globalization, the mainspring of its legitimacy. While a recent World Bank report continues-amazingly–to extol rapid growth as the key to expanding the global middle class, global warming, peak oil, and other environmental events are making it clear to people that the rates and patterns of growth that come with globalization are a surefire prescription for an ecological Armageddon.
The final factor, not to be underestimated, has been popular resistance to globalization

Posted by: b real | Jan 18 2007 5:46 utc | 41

the bello essay above is a shorter version of a longer analyses he published in the december edition of third world quarterly titled The capitalist conjuncture: over-accumulation, financial crises, and the retreat from globalisation. only source i can find to it online requires purchase, but here’s a writeup on it via znet
Is Globalization on Its Way Out?

When the present era of globalization began, it was asserted that it would lead to the rise of a transnational capitalist elite that would manage the global economy. This new elite would be led by its American component. Thus American dominance would be established. This scheme has, however, failed. National components still maintain their separate identity and are motivated by their national outlook and interests. They do not bother whether their nationalist approach leads to harmful consequences for other nations. The high hopes of the representatives of the IMF, the World Bank and the WTO, who met in Singapore in December, 1996 could not be realized. They thought, they were very near the goals of global governance and the imposition of well co-ordinated neo-liberal policies to bring about smooth, technocratic integration of the global economy. Sebastian Mallaby of the Washington Post, a pro-globalization journalist laments that these hopes have failed to be realized. According to him, “trade liberalization has stalled, aid is less coherent than it should be, and the next financial conflagration will be managed by injured fireman.” Bello thanks, in reality, the situation is worse for the protagonists of globalization. The IMF, a strong pillar of neo-liberalism is defunct. “Knowing how the IMF precipitated and worsened the Asian financial crisis, more and more of the advanced developing countries are refusing to borrow from it or are paying ahead of schedule, with some declaring their intention never to borrow again. These include Thailand, Indonesia, Brazil and Argentina. Since the Fund’s budget greatly depends on debt repayment from these big borrowers, this boycott is translating into what one expert describes as ‘a huge squeeze on the budget of the organization.’”

Posted by: b real | Jan 18 2007 16:23 utc | 42

well, resistance to global capital is the key. the other points made there seem to me to be remediable inasmuch as the contradictions of accumulation do not ipso facto delink humanity from the vicissitudes of the business cycle. only actual intervention and opposition can disable the harm of global expansion of capital.
another point: the view castells sometimes has about the reification of global finance capital is relevant, and if true, also disarms the certainty that globalization has “run aground.” truthfully, i don’t know what to say about this point. in this structuralist take on global capitalism, we get “society of spectacle” without luxury of protest or even the remote pleasure of the systems future annihilation assured by its inherent contradictioons. what a drag.

Posted by: slothrop | Jan 18 2007 17:20 utc | 43

slothrop- here’s one take on bello’s last rites from a “professor of globalism,” william h. thornton. he suggests that while u.s.-led globalism may indeed be a failed venture, rival capitalisms paralleling the division of first & second world are competing for regional influence across the globe but running into promising models of resistance from the third world. again, no global capitalist class of flesh & bone to be found, only competing regional interests.

Posted by: b real | Feb 5 2007 5:36 utc | 44

duh.. a link would help
THE DE-GLOBALIZATION QUESTION

Posted by: b real | Feb 5 2007 5:38 utc | 45