Marxs Theory Of Proletarian Internationalism

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Introduction to Marx and Marxism Video 12 Internationalism

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Crisis theory , concerning the causes [1] and consequences of the tendency for the rate of profit to fall in a capitalist system , is now generally associated with Marxist economics. Sismondi's great merit is that he used, systematically and explicitly, a schema of periods, that is, that he was the first to practice the particular method of dynamics that is called period analysis". Rosa Luxemburg and Henryk Grossman both subsequently drew attention to both Sismondi's work on the nature of capitalism, and as a reference point for Karl Marx. Grossman in particular pointed out how Sismondi had contributed to the development of a series of Marx's concepts including crises as a necessary feature of capitalism, arising from its contradictions between forces and relations of production, use and exchange value, production and consumption, capital and wage labor.

His "inkling Marx's crisis theory, embodied in " Grundrisse was not available to anybody until well into the 20th Century His notes, 'Books of Crisis' [Notebooks B84, B88 and B91] [11] [12] remain unpublished and have seldom been referred to. Henry Hyndman had written a short history of the crises in the 19th Century in , [16] attempting to present, popularise and defend Marx's theory of crisis in lectures delivered in and and published in It was Henryk Grossman [20] in who later most successfully [21] rescued Marx's theoretical presentation Following the extensive setbacks to independent working class politics, the widespread destruction both of people, property and capital value, the s and '40s saw attempts to reformulate Marx's analysis with less revolutionary consequences, for example in Joseph Schumpeter 's concept of creative destruction [25] [26] and his presentation of Marx's crisis theory as a prefiguration of aspects of what Schumpeter, and others, championed as merely a theory of business cycle.

A survey of the competing theories of crisis in the different strands of political economy and economics was provided by Anwar Shaikh in [28] and by Ernest Mandel in his 'Introduction' to the Penguin edition of Marx's Capital Volume III particularly in the section 'Marxist theories of crisis' p. There have been attempts particularly in periods of capitalist growth and expansion, most notably in the long Post-War Boom [30] to both explain the phenomenon and to argue that Marx's strong statements of its 'lawlike' fundamental character under capitalism have been overcome in practice, in theory or both.

As a result, there have been persistent challenges to this aspect of Marx's theoretical achievement and reputation. It continues to be argued in terms of historical materialism theory, that such crises will repeat until objective and subjective factors combine to precipitate the transition to the new mode of production either by sudden collapse in a final crisis or gradual erosion of the basing on competition and the emerging dominance of cooperation. It is from the historical standpoint the most important law. In Marx's words, "The real barrier of capitalist production is capital itself ". The law of the falling rate of profit, the unexpected consequence of the profit motive , is described by Marx as a "two-faced law with the same causes for a decrease in the rate of profits and a simultaneous increase of the mass of profits".

This work explains the connection between crises and regular business cycles based on the cyclical dynamic disequilibrium of the reproduction schemes in volume 2 of Capital. This work rejects the various theories elaborated by "Marxian" academics. In particular it explains that the collapse in profits following a boom and crisis is not the result of any long term tendency but is rather a cyclical phenomenon. The recovery following a depression is based on replacement of labor-intensive techniques that have become uneconomic at the low prices and profit margins following the crash.

This new investment in less labor-intensive technology takes market share from competitors by producing at lower cost while also lowering the average rate of profit and thus explains the actual mechanism for both economic growth with improved technology and a long run tendency for the rate of profit to fall. The recovery eventually leads to another boom because the lag for gestation of fixed capital investment results in prices that continue such investment until eventually the completed projects deliver overproduction and a crash. There is a long history of interpreting crisis theory, rather as a theory of cycles than of crisis.

An example in by Peter D. Thomas and Geert Reuten, "Crisis and the Rate of Profit in Marx's Laboratory" suggests controversially that even Marx's own critical analysis can be claimed to have transitioned from the former toward the latter. Again, like Mill, Marx indicates the post-crisis waste of capital which restores profitability, but this is not mentioned specifically as a counter-tendency until the cyclical nature of the system is demonstrated. On the other hand, Mill does not refer to depression of wages below their value, relative overpopulation, or the increase in "stock capital". But on the most important counter-tendencies, that is, the effects of increasing productivity at home in cheapening commodities and of foreign trade in providing both cheaper goods and greater profits, Marx and Mill are in accord.

It is a tenet of many Marxist groupings that crises are inevitable and will be increasingly severe until the contradictions inherent in the mismatch between the relations of production and the development of productive forces reach the final point of failure, determined by the quality of their leadership , the development of the consciousness of the various social classes , and other "subjective factors". Thus, according to this theory, the degree of "tuning" necessary for intervention in otherwise "perfect" market mechanisms will become more and more extreme as the time in which the capitalist order is a progressive factor in the development of productive forces recedes further and further into the past.

But the subjective factors are the explanation for why purely objective factors such as the severity of a crisis, the rate of exploitation , etc. A common example is the contrast of the oppression of the working classes in France in centuries prior to which although greater did not lead to social revolution as it did once the complete correlation of forces [53] appeared. Kuruma in his Introduction to the Study of Crisis ends by noting " This term naturally also encompasses the study of the necessity of imperialist world war as the explosion of the contradictions peculiar to modern capitalism. Imperialist world war itself is precisely crisis in its highest form. Thus, the theory of imperialism must be an extension of the theory of crisis.

A common example is the contrast of the oppression of the working classes in France in centuries prior to which although greater did not lead to social revolution as it did once the complete correlation of forces [53] appeared. Kuruma in his Introduction to the Study of Crisis ends by noting " This term naturally also encompasses the study of the necessity of imperialist world war as the explosion of the contradictions peculiar to modern capitalism. Imperialist world war itself is precisely crisis in its highest form. Thus, the theory of imperialism must be an extension of the theory of crisis.

David Yaffe, in his application of the theory in the conditions of the end of the Post War Boom in the early s, made an influential link to the expanding role of the state's interventions into economic relations as a politically critical element in attempts by capital to counteract the tendency and find new ways to make the working class pay for the crisis. Crisis theory is central to Marx's writings; it helps underpin Marxists' understanding of a need for systemic change. It is controversial; Roman Rosdolsky said "The assertion that Marx did not propose a 'breakdown theory' is primarily attributable to the revisionist interpretation of Marx before and after the First World War. Henryk Grossman 's re-presentation of both the central importance of the theory for Marx and the working out of its elements in a partially mathematical form was published in Central to the argument is the claim that, within a given business cycle, the accumulation of surplus from year to year leads to a kind of top-heaviness, in which a relatively fixed number of workers have to add profit to an ever-larger lump of investment capital.

This observation leads to what is known as Marx's law of the tendency of the rate of profit to fall. Unless certain countervailing possibilities are available, the growth of capital out-paces the growth of labour, so the profits of economic activity have to be shared out more thinly among capitals, i. When countervailing tendencies are unavailable or exhausted, the system requires the destruction of capital values in order to return to profitability. Hence creating the underlying preconditions for post-war boom.

Paul Mattick 's Economic Crisis and Crisis Theory published by Merlin Press in is an accessible introduction and discussion derived from Grossman's work. Andrew Kliman has made major new contributions [60] [61] [62] with a thorough and trenchant philosophical and logical defence of the consistency of the theory in Marx's work, against a number of the criticisms proposed against important aspects of Marx's theory since the 'seventies. Francois Chesnais has provided an important exploration of the 'fictitious capital' or 'Finance Capital' aspects of the theory in a review of both historical and contemporary empirical research.

Guglielmo Carchedi and Michael Roberts in their edited collection World in Crisis [] provide a valuable review of the empirical analyses that support and defend the thesis, with contributions from authors in the UK, Greece, Spain, Argentina, Mexico, Brazil, Australia and Japan. Keynesian Economics which attempts a " middle way " between laissez-faire , unadulterated capitalism and state guidance and partial control of economic activity, such as in the French dirigisme or the policies of the Golden Age of Capitalism attempts to address such crises with the policy of having the state actively supplying the deficiencies of unaltered markets.

Marx and Keynesians approach and apply the concept of economic crisis in distinct and opposite ways. Marx observed and theorised economic crisis as necessarily developing out of the contradictions arising from the dynamics of capitalist production relations. It is not the propensity to consume or subjective expectations about future profitability that is crucial for Marx. It is the rate of exploitation and the social productivity of labour that are the key considerations and these in relation to the existing capital stock. While for Keynes the low marginal productivity of capital has its cause in an over-abundance of capital in relation to profit expectations, [68] and therefore to a 'potential' over-production of commodities the capitalist will not invest.

For Marx the overproduction of capital is only relative to the social productivity of labour and the existing exploitation conditions. It represents an insufficient mass of surplus-value in relation to total capital. So that for Marx the crisis is, and can only be, resolved by expanding profitable production and accumulation, while for Keynes, it can supposedly be remedied by increasing 'effective demand' and this allows for government induced-production. The citation usually given in support of an 'underconsumptionist theory of crisis' is Marx's statement that "The last cause of all real crises always remains the poverty and restricted consumption of the masses as compared to the tendency of capitalist production to develop the productive forces in such a way, that only the absolute power of consumption of the entire society would be their limit" [70] [71] The above passage contains within it no more than a description or a restatement of the capitalist relations of production.

Marx called it a tautology to explain the crisis by lack of effective consumption Other explanations have been formulated, and much debated, [74] including:. From Wikipedia, the free encyclopedia. Economic theories regarding cyclical recessions. This article is about the economic theory. For the Westworld episode, see Crisis Theory Westworld. Capital accumulation Capitalist mode of production Class process Commodity Concrete and abstract labor Constant capital Critique of political economy Exchange value Exploitation Labour power Labour theory of value Law of accumulation Law of value Means of production Mode of production Monopoly capitalism Organic composition of capital Productive forces Profit Prices of production Primitive accumulation Rate of exploitation Rate of profit Real prices and ideal prices Relations of production Reproduction Reserve army of labour Socially necessary labour time Socialist mode of production Socialization Simple commodity production Surplus value Surplus labour Surplus product Use value Wage labour Wage slavery Value-form Value product Variable capital.

Capital controversy Crisis theory Economic determinism Immiseration thesis Imperialism Historical materialism Okishio's theorem Overaccumulation Overdetermination Overproduction Kondratiev wave Technological determinism Technological unemployment Temporal single-system interpretation. A Contribution to the Critique of Political Economy. Economic and Philosophical Manuscripts of Whatever the character of a person's consciousness will and imagination , societal existence is conditioned by their relationships with the people and things that facilitate survival, which is fundamentally dependent upon cooperation with others, thus, a person's consciousness is determined inter-subjectively collectively , not subjectively individually , because humans are a social animal.

In the course of history, to ensure individual survival societies have organized themselves into groups who have different, basic relationships to the means of production. One societal group class owned and controlled the means of production while another societal class worked the means of production and in the relations of production of that status quo the goal of the owner-class was to economically benefit as much as possible from the labour of the working class. In the course of economic development when a new type of economy displaced an old type of economy— agrarian feudalism superseded by mercantilism , in turn superseded by the Industrial Revolution —the rearranged economic order of the social classes favored the social class who controlled the technologies the means of production that made possible the change in the relations of production.

Likewise, there occurred a corresponding rearrangement of the human nature Gattungswesen and the system of values of the owner-class and of the working-class, which allowed each group of people to accept and to function in the rearranged status quo of production-relations. Despite the ideological promise of industrialization—that the mechanization of industrial production would raise the mass of the workers from a brutish life of subsistence existence to honorable work—the division of labour inherent to the capitalist mode of production thwarted the human nature Gattungswesen of the worker and so rendered each individual into a mechanistic part of an industrialized system of production, from being a person capable of defining their value through direct, purposeful activity.

Moreover, the near-total mechanization and automation of the industrial production system would allow the newly dominant bourgeois capitalist social class to exploit the working class to the degree that the value obtained from their labour would diminish the ability of the worker to materially survive. Hence [? In the resultant communist society , the fundamental relation of the workers to the means of production would be equal and non-conflictual because there would be no artificial distinctions about the value of a worker's labour; the worker's humanity Gattungswesen thus respected, men and women would not become alienated.

In the communist socio-economic organization, the relations of production would operate the mode of production and employ each worker according to their abilities and benefit each worker according to their needs. Hence, each worker could direct their labour to productive work suitable to their own innate abilities, rather than be forced into a narrowly defined, minimum-wage "job" meant to extract maximal profit from individual labour as determined by and dictated under the capitalist mode of production.

In the classless, collectively-managed communist society, the exchange of value between the objectified productive labour of one worker and the consumption benefit derived from that production will not be determined by or directed to the narrow interests of a bourgeois capitalist class, but instead will be directed to meet the needs of each producer and consumer. Although production will be differentiated by the degree of each worker's abilities, the purpose of the communist system of industrial production will be determined by the collective requirements of society, not by the profit-oriented demands of a capitalist social class who live at the expense of the greater society.

Under the collective ownership of the means of production, the relation of each worker to the mode of production will be identical and will assume the character that corresponds to the universal interests of the communist society. The direct distribution of the fruits of the labour of each worker to fulfill the interests of the working class—and thus to an individuals own interest and benefit—will constitute an un-alienated state of labour conditions, which restores to the worker the fullest exercise and determination of their human nature.

Capitalism reduces the labour of the worker to a commercial commodity that can be traded in the competitive labour-market, rather than as a constructive socio-economic activity that is part of the collective common effort performed for personal survival and the betterment of society. In a capitalist economy, the businesses who own the means of production establish a competitive labour-market meant to extract from the worker as much labour value as possible in the form of capital. The capitalist economy's arrangement of the relations of production provokes social conflict by pitting worker against worker in a competition for "higher wages", thereby alienating them from their mutual economic interests; the effect is a false consciousness , which is a form of ideological control exercised by the capitalist bourgeoisie through its cultural hegemony.

Furthermore, in the capitalist mode of production the philosophic collusion of religion in justifying the relations of production facilitates the realization and then worsens the alienation Entfremdung of the worker from their humanity; it is a socio-economic role independent of religion being " the opiate of the masses ". In Marxist theory , Entfremdung ' alienation ' is a foundational proposition about man's progress towards self-actualisation. For Hegel, the unhappy consciousness is divided against itself, separated from its "essence", which it has placed in a "beyond".

In The Phenomenology of Spirit , Hegel described the stages in the development of the human Geist 'spirit' , by which men and women progress from ignorance to knowledge, of the self and of the world. Developing Hegel's human-spirit proposition, Marx said that those poles of idealism —"spiritual ignorance" and "self-understanding"—are replaced with material categories , whereby "spiritual ignorance" becomes "alienation" and "self-understanding" becomes man's realisation of his Gattungswesen species-essence. Things have now come to such a pass that the individuals must appropriate the existing totality of productive forces, not only to achieve self-activity, but also, merely, to safeguard their very existence.

That humans psychologically require the life activities that lead to their self-actualisation as persons remains a consideration of secondary historical relevance because the capitalist mode of production eventually will exploit and impoverish the proletariat until compelling them to social revolution for survival. Yet, social alienation remains a practical concern, especially among the contemporary philosophers of Marxist humanism.

In The Marxist-Humanist Theory of State-Capitalism , Raya Dunayevskaya discusses and describes the existence of the desire for self-activity and self-actualisation among wage-labour workers struggling to achieve the elementary goals of material life in a capitalist economy. In Chapter 4 of The Holy Family , Marx said that capitalists and proletarians are equally alienated, but that each social class experiences alienation in a different form:. The propertied class and the class of the proletariat present the same human self-estrangement. But the former class feels at ease and strengthened in this self-estrangement, it recognizes estrangement as its own power, and has in it the semblance of a human existence.