6 pivotal class collective action moments in the US, second half of the Twentieth Century

…that led to the complete evisceration of the US working class’ capacity to contribute political leadership,[1] and thus stripped the US of capacity for public good, and stripped the nation from the state. This dismantling of US social and state capacity resulted in the triumph of charismatic-front direct capitalist rule in the US.

1)    No political party organized labour, or built working class collective action capacity across the US

By contrast, the Social Democratic Party (SAP) in Sweden methodically propelled itself to political hegemony by first and foremost working to build unions and a labour movement in Sweden.[1]

In 1930s Minnesota, the Farmer-Labour party had similarly worked with organized and state management radicals to build worker collective action capacity, including with anti-racism programs, and power resources; but on altruistic behalf of anti-fascist solidarity, the national Democratic Party took over and dismantled the Farmer-Laborers in WWII.[2]

While this strategy eventually provided Humphrey, Mondale and Freeman the political force to oust the controlling Southern slaver Democrats from the Democrat Party–to the benefit of the Republicans, and so permitted liberals to use the Democrat Party to help leftists reduce some of the apartheid features of US society at the tail end of the financial regulation era, the victory was pyrrhic. The deregulation of finance was soon to undercut desegregation by restoring inegalitarianism and Herrenvolk democracy, inequality and economic scarcity, and labor import substitution.

Why is this pivotal? Where the Swedish Social Democrats built working class cohesion and collective capacity, and a strategic radical organized edge to “moderate,” state repression of communists shut down the working class’ capacity to organize, institutionalize, and coordinate external-internal (social movement-polity organization) strategy, preventing labor autonomy, cohesion & collective action capacity, and power resources development in the US.

In comparison, in Canada, during WWII when the Atlantic ruling class required labor cooperation but Canada did not have strong policing capacity, the state prioritized targeting and imprisoning (especially labor-organizing) communists, while developing legislation to channel wildcat strike labor eruptions under liberal, labor-policing professional, bureaucratic unions.

Because policy tends to be shared and it is well known that significant resources were devoted to repressing communists in the Atlantic ruling class’ nation-states, evidence from Canada supports Kolin’s (2017) historical research conclusion, suggesting that under historical conditions more favorable to the establishment of labor power resources, the US shared and pursued the communist repression priority as the keystone in the Atlantic ruling class’ broader labor-repression strategy. Without communist organizers, the American working class could not build an effective inside-outside strategy capable of supporting labor political capacity to advance the public good.

Against the capitalist hegemony that only states and labor cause economic decline, no ideas. laws,[3] policies, or institutions capable of moderating and directing capital for the public good, capable of countering both regional and international capitalist strategy, could sustainably develop in the US.

2)    Instead, professionalized policing targets, represses labor collective action capacity in the US

In addition to the communist repression priority as the keystone in its broader labor-repression strategy, the US and its capitalist class had built up and continued to amass strong public and private policing capacity with which to repress labor and prevent the development of working-class power resources. The US was able to further minimize class compromise, minimizing the development of robust labor rights law and labor-policing unions. The combination of exclusive union representation, mandatory agency fees, no-strike clauses, and “Management Rights” TM were until 2018 the foundation of (the peculiar and now dismissed) American labor laws.

Bereft of an organized radical edge, professional organized labour, as structured by Anglo-American law, mainly served to police its own members, forbidding and punishing collective action and strikes.

In the latter 20th century, after the global capitalist mid-century demonstration of finance’s power (coordinating capital and enforcing inflation until US politicians submitted), Democrats as well as Republicans devoted their efforts to policing and cutting down vestigal unions and labour cohesion and communication capacity.[4]

Why is this pivotal? Deeply-crippled working classes made the US (and UK) a beacon for global capitalist investment support, the basis of the “Trickle Down” claim that exclusive elite liberty and rule can contribute to the larger “club society” (Therborn 2017) economic welfare.

Obviously, while the US (and UK) rose to global prominence on the backs of slavery, colonial genocide, and other forms of terror visited upon working class peoples, there is a profound, venerable debate over the value of Herrenvolk democracy (Losurdo 2011) as it broadly cripples human development while attracting resources distributed to reinforce economic, political and social inequality and ecological entropy (Climate crisis). At best, Herrenvolk democracy broadly fosters lotto-mentality dispositions that occasionally throw up anti-social, risk-affine fresh recruits to the benefit of ruling class reproduction, and, in the conservatized-liberal Hobbesian spirit, it manufactures exclusive, strong militarized state capacity, and in that sense, a protection racket worthy of Great Apes.

3)    Anti-communist campaigns left a flaccid, rudderless, unsustainable liberalism[5]

Why is this pivotal? The US was incapable of sustainably governing global economy as a democratic country because (see Geoff Mann, 2017, In the long run we are all dead) liberal leadership only fleetingly, unseriously entertained the notion that capitalists need moderation, which requires strategic labor capacity and power resources. Communists would have been needed to maintain such a counter-hegemonic vision, to coordinate a robust, complex labor organization structure including both multiple levels of institutionalized, multi-dimensional power resources (in unions, union federations, and the state) and agile disruption capacity.

While it arose with a spectacular democratic revolution, the US collapsed into a frail, senile liberalism requiring extensive conservative buttressing and a humiliating return to slavery ideology and institutions, which the media, the police institutions, the carceral institutions, the militaries, elite US academia, and the US judiciary and its conservative constitutional law supply to the global Nightwatchman state that has replaced the nation-state.

4)    1955-1963 the UK deregulated financial speculation, enabling currency speculation on the dollar.[6] The US state did not shut the deregulation down.

The UK deregulates finance, breaks US state-US capitalist alignment

Why is this pivotal? Because the US’s global job, per Bretton Woods & the Marshall Plan, was to direct capital into productive activities, economic growth. This required, inter alia, repressing global finance’s capacity to coordinate and direct capital. In this, Keynesian economic theory tentatively broke with the conservative economics tradition. Keynesianism in its boldest hour assumed distinctively that not just states, and not just labour, but capital can cause economic problems and crisis, especially since (per Smith 1776) it is capable of exclusionary, excessive cohesion capacity and power concentration.[7]

All the other countries stuck with the plan. But Keynesians were elitists; ultimately, their fear and loathing of the working class crushed their innovative but wavering resolve to moderate capitalist power (Mann 2017). When the UK subverted financial regulation from 1955-63, partly in order to maintain global financial power in London, it cut the US state’s alignment with US capital, and ended the US state’s capacity to manage capital at all.

While the US had supported the UK’s financial deregulation as a way of removing war expenditure pressure on the dollar, US capital was immediately organized into an inflation crisis campaign targeting the US’s inflation-vulnerable “strength” at the center of global capitalism: The dollar as the currency of exchange, and the US’s assumption of repressive imperial warfare.

Although ceteris paribus, cheapening money can reduce money lending returns in favor of borrowers, ceteris was not paribus. After decades of state regulation of finance, state deregulation of finance allowed finance to gain the global system-regulating upperhand as the quantity of global money flowed into the banks, offsetting the decline of individual units of money, concentrating and coordinating capital.

Sponsored conservative economists were loosed to develop policy intervention models again based on the Atlantic ruling class (Van Der Pijl 2012) belief that only states and labor hurt the economy (Blyth 2002). A fearful, chastened liberalism shrivelled and crawled back into the womb of conservatism.

5) In the early 1970s, after Nixon’s corporatist pricing board demonstrated that capital could stabilize prices, capitalists, coordinated by finance, refused to do it voluntarily.[8]

Boss Battle: You’ll have your inflation & you’ll eat it too

Despite emerging from and influenced by an era of state semi-autonomy, Nixon was an ideological pro-capitalist. He shrugged. Why is this pivotal? US capitalists collectively jacked up commodity prices as Saudi Arabia (Britain’s long time satellite.) led OPEC to jack up oil prices, creating a heightened inflation crisis and hysteria throughout the US. With the help of conservative economists, capitalists maintained that this inflation was the sole fault of the US state and American labour, meaning that American labour would have to be completely repressed and the US state–the state’s institutionalizing, coordinating, legal and police coercion, and resource distribution capacity–would have to be completely captured by capitalists.[9]

Liberalism and its Rule of Law ideal (“Judicial Activism,” it was then-derided by conservative jurists and comms pros) were left desanguinated corpses in the US, though the state’s institutions were still embedded with and surrounded by armies of liberal lawyers and bureaucrats. The next steps would be the conservatization of those managerial forces, the denunionization and the demeaning of the US working class, and the import substitution of a new, un-enfranchised labor force.

6) From Nixon on, US state efforts to use policy and institution building to mediate capitalist interests with societal interests (OSHA, the EPA, a Fed independent of Wall Street, state responsibility for directing new economic sector development, etc.) were killed or occupied directly by unfriendly capitalists.

Charismatic Reagan was propelled into the front of the Executive to host the Republican restoration of direct capitalist rule over US institutions.

The Dem Party’s only response, from the liberal repertoire, was to sell itself as a “Credible” organization that could more conveniently (than direct rule with charismatic fronts) be delegated the management of capitalist interests.[10] From the conservative (Public Choice) repertoire, the Dems could extract rents for this convenience service and the reassuring, resonant professionalism they performed for international audiences in capitalist countries with semi-independent professional states and remnant liberal institutions. But the neoliberal Dems’ convenient, performative professionalism has offered no value-added for working class Americans–on the contrary, even contributing and managing policies to disorganize and police the American working class, and usually, precious little value-added for regional and global capitalists.

Why is this pivotal? Blanket-policed by their employers, professional unions, political parties, and the police, American labour rapidly realized that they had no collective action capacity and no institutional power, not even in the state. Further, culturally, intellectually, labour would only be conceptualized as an economic problem to be targeted.[11] Without any labour power resources in the US, US and global capitalists were liberated to absolutely, directly run the country (with the currency and the military) at the center of global capitalism.

If not permitted the full range of human collective capacity, American smallholders and working class people were allowed to work ethnic, racial, religious, and gender identity networks. They could align with the Credible Delegates Party or they could align with the Charismatic Direct Capitalist Rule Party. As time, repression, and inequality marched on, it became evident that it didn’t matter. Working class Americans and smallholders would get nothing—padded with crippling law and policing, economic disruption, precarious exploitation, debt, criminalization, incarceration, disenfranchisement, pollution, alienation, racialization, sexual assault, shame, and contempt.

Charismatic Direct Capitalist Rule in the US

Trump, as a charismatic capitalist ruler, offers a wink, a little reality teevee strum und drang, a little business shock ‘n’ awe, a little commedia dell’arte to symbolically lighten the inescapable burdens carried by hundreds of millions of Americans, workers and their guards, managers, and owners. Along with powerless labour, they still have guarding, policing, and incarceration economic opportunities, military national socialism, access to beautiful public lands, lovely climates, remnant infrastructure, and more, slightly higher- quality commodity goods than much of the world. It could be worse…

[1] Blyth 2002, Chapter 4.

[2] Delton, Jennifer. Making Minnesota Liberal.

[3] Glasbeek 2017.

[4] Murakawa 2015, etc.

[5] Kolin, Andrew. 2017. Political economy of labour repression in the United States. Lexington Books.

[6] Schenk, Catherine R. 1998. “The Origins of the Eurodollar Market in London: 1955-1963.” Explorations in Economic History 35: 221-238.

[7] Per Smith 1776.

[8] Blyth 2002: 135-6

[9] Blyth 2002, Ch. 5.

[10] Blyth 2002, Ch. 6.

[11] Blyth 2002.

[1] As observed in Gilens & Page 2014.

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WWII & the twilight of Western Enlightenment

AT the turn of the 20th century, ruling classes mobilized nation states to struggle for territorial control and economic development, while working classes struggled for emancipation

From the 16th century, the Atlantic ruling class (the ruling class of Britain, the Netherlands, the US, France, and other North Atlantic territories) successfully ascended to world power through a potent combination of capitalist relations and primitive accumulation, including enclosures, global imperialism and colonialism, and slavery. By the turn of the 20th century, both German and Russian networks were left out of this power ascent, stagnant but still latently capacious and entitled. They had long-influential ruling classes managing and intervening in European territories. Where Russia had dwindled from Enlightenment and power influence to supplying mercenary militaries to the ultimately-losing European ruling class repressions of democratic revolts, German society had lost its influential long-time role supplying the educated, princely managerial staff to European monarchies.

Communists overthrew the dissolute Russian monarchy network, and mobilized massive and disruptive economic modernization campaigns across the Soviet Union’s vast Eurasian territory. German territories attempted to correct their over-investment in European aristocracy by reorganizing as a militarized nation-state mobilizing strong managerial and productive capacity. To carve out territory in an already-owned world required warfare. While the Atlantic ruling class has had enormous capacity to absorb other ruling elites, it has not accommodated them, with the exception of the semi-independence concession to Middle East absolutist tyrannies ruling keystone geopolitical and oil extraction territory. When upstart Germany lost WWI, the Atlantic ruling class sought to crush an independent Germany and the German sense of entitlement with the Treaty of Versailles. This vainglorious effort only produced more outraged re-organization in Germany, spawning the fascist campaign to put Germany on the global capitalist map.

Germany’s reactionary, anti-socialist fascism at first was thought to be compatible with the anti-communist Atlantic ruling class order. For seven years, from 1933 to the September 1939 invasion of Poland, the capitalist Atlantic ruling class had agreeable relations and multiple pacts with the pro-capitalist, anti-communist fascist regimes, including Nazi Germany. During this period, the young Soviet Union had been struggling with imperial, fascist Japan, which was invading China.

13 Nation-state Compacts with Fascist Germany

YEAR SIGNATORY COUNTRIES NAME OF PACT
1933 UK, FRANCE, ITALY THE FOUR POWERS PACT
1934 POLAND HITLER-PILSUDSKI PACT
1935 UK ANGLO-GERMAN NAVAL AGREEMENT
1936 JAPAN ANTI-COMINTERN PACT
1938 SEPTEMBER UK GERMAN-BRITISH NON-AGGRESSION PACT
1938 DECEMBER FRANCE GERMAN-FRENCH NON-AGGRESSION PACT
1939 MARCH ROMANIA GERMAN-ROMANIAN ECONOMIC TREATY
1939 MARCH LITHUANIA NON-AGGRESSION PACT
1939 MAY ITALY PACT OF STEEL (FRIENDSHIP & ALLIANCE)
1939 MAY DENMARK NON-AGGRESSION PACT
1939 JUNE ESTONIA NON-AGGRESSION PACT
1939 JULY LATVIA NON-AGGRESSION PACT
1939 AUGUST SOVIET UNION MOLOTOV-RIBBENTROP NON-AGGRESSION PACT

A side product of Britain’s imperial expansion and its opposition to Russia and that country’s power, Polish and other weaker-community nationalisms surged in the 16th century. Russia and Poland then struggled for territorial control, with Russia controlling the territory from the 18th century until Russia’s collapse after WWI. By contrast, the Atlantic ruling class gained further power after WWI, taking control over former Ottoman Empire territory and populations.

In August 1939 Germany made an opportunistic, temporary alliance with the Soviet Union and Slovakia to re-take Poland and divide it. Britain and France had a post-WWI pact that should Poland be invaded, they would regard the invasion as an act of war against the Atlantic ruling class. Polish gold was smuggled out to London and Ottawa. In reclaiming territory, the Soviet Union was again acting independently of the Atlantic ruling order, and so was a categorical enemy. But the geopolitical crisis was a fascist state acting independently of the Atlantic ruling order. In an already-owned world, German economic development intolerably forced both (temporary) capitalist-communist cooperation and a dis-identification between the Atlantic ruling order and capitalism.

While the Atlantic ruling class has remained in fairly-constant geopolitical opposition to Russia (regardless of its government), British sponsorship of Polish and Eastern European national ambitions has been rather more opportunistic than a primary goal. It is the Polish (among other Eastern European buffers) nationality’s perspective that the Western powers “betrayed” their sponsorship agreements in 1939 (inter alia), as the North Atlantic powers allied with the Soviet Union to fight WWII, to stop Germany’s further territorial invasions and expansions. The Soviets ground down the imperial German war machine; and the Soviet Union’s gambit to reduce the Atlantic ruling order’s combined anticommunist and geopolitical opposition was thus soon played out.

British war leader Winston Churchill hoped to simply redirect WWII against the Soviet Union upon Germany’s defeat in April 1945. But British analysts concluded that the Atlantic powers would not be able to defeat and control the Soviet Union’s territory via direct warfare. So, in another “betrayal,” Churchill and Stalin divided up the former Austro-Hungarian borderlands (the Austro-Hungarian Empire collapsed in WWI), from 1945 until the modern Russian communist experiment was liquidated in 1989 under the co-optative idea, and a patently false and geopolitically-naive expectation, suggesting that simply by dissolving communism to the benefit of oligarchs, Russia would become included and supported as an autonomous capitalist country in the North Atlantic metropole archipelago, much as Germany, Italy, and Japan had been under the redistributive Marshall Plan. But in that North Atlantic, states had since largely been claimed by a financially-liberated, cosmopolitan ruling class, and that class already had a capitalist relationship with the great reserves of Chinese and Indian labor, resources, pollution sinks, and consumers. Nor was it possible for even-oligarchical Russia, with its broader social networks and infrastructure, to be integrated into the Middle East tyrants’ efficient, special relationship with the Atlantic ruling class.

Since then, the Atlantic ruling class has pursued an oppositional relationship with Russia, offering instead the City of London as an increasingly-posh haven for the Russian klepto-collaborators and their booty, the once-public wealth accrued with brains, blood, sweat and tears within the Soviet Union territories. A globally-networked, cosmopolitan ruling class with key bases in North Atlantic financial cities and countries currently enjoys the restoration of its undiluted, unrivaled power, as well as steep and immobile social hierarchy and all its effects. As billions of people are surveilled, policed, incarcerated, militarized, exploited, poisoned, dispossessed, violently disrupted, and dislocated into spectacular migrations, outside of continental Europe, aristocracy and servitude have been restored. Western Enlightenment ideas, culture, and institutions have fallen, but the extraction and slavery infrastructure remains and has been technologically enhanced.

Thus, while there are still states and of course market institutions managing cosmopolitan extractivism and the social reproduction of inegalitarianism, with the eradication of Enlightenment thought and institutions, nation-states have been reorganized as rigid, stagnant Night-watchman states. Nations are reserved for the industrializing countries.