Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

25 April 2015

the sphere of freedom among equals no longer exists in the modern world

Hannah Arendt's book The Human Condition seeks to develop a theory of politics very much alive in Classical Greece, but since lost in the modern age. The motivating factor for her inquiry is the perception that politics as the sphere of freedom – of action – among equals no longer exists in a general sense in the modern world, since the social sphere (or what is equivalent to the househould [oikia] in Classical Greece – the sphere of necessity, e.g. housekeeping) and the satisfaction of needs has all but completely dominated what is nevertheless still called political life. For Arendt, this is equivalent to the banalisation of politics (the evocation of totalitarianism [cf. Eichmann in Jerusalem] is no doubt not accidental), where utilitarianism reigns and action, having ceased to be creative and an end in itself, has become a mere means to action. Conformity and necessity have squeezed the political dimension out of human life, and an essential aspect of the human condition is thereby stunted: the aspect of creativity. Schematically, Arendt in fact makes a general distinction between the vita activa – which is comprised of labour, work and action – and the vita contempletiva, the realm of thought, or more precisely, the realm of the contemplation of the eternal. While the main focus of Arend'ts analysis here is on the vita activa, she argues that there is complete equality between the two realms.

Both labour and work in the vita activa – the former concerned directly with necessity and the satisfaction of immediate biological needs, the latter concerned with utility and the world of durable objects – are activities of means; they are not essentially ends in themselves. A person's life should not only consist of labour and work – the tragedy of modern democratic societies being that so many lives are indeed so limited. The realm of action is where individuals act in complete equality with others – freedom only being realizable in association with others. In general, the social has come to dominate what was once the dichotomy between the private realm of necessity and the public, political realm of politics. And the most influential thinkers such as Locke and Marx only confirm the importance of necessity. Marx's position is acutely paradoxical here. For while on the one hand he extols labour power (and not work) as the creator of all wealth and the "essence" of man, he also says that with the communist society and the "withering away of the state," no one will be forced to labour out of necessity, each having the freedom to be a hunter in the morning and a critic at night, without anyone being essentially a hunter or a critic. This conception of labour approaches what Arendt is alluding to with the realm of politics as pure creativity, the realm of the beautiful deed.

The human condition (which is never fixed) can have the realm of freedom restored to it, now, in the modern world, says Arendt, because developments in technology have rendered the "social question" (about needs and how to satisfy them) redundant.

John Lechte, Fifty Key Contemporary Thinkers (2008)

24 November 2014

Free-trader Vulgaris

The consumption of labour-power is completed, as in the case of every other commodity, outside the limits of the market or of the sphere of circulation. Accompanied by Mr. Moneybags and by the possessor of labour-power, we therefore take leave for a time of this noisy sphere, where everything takes place on the surface and in view of all men, and follow them both into the hidden abode of production, on whose threshold there stares us in the face “No admittance except on business.” Here we shall see, not only how capital produces, but how capital is produced. We shall at last force the secret of profit making.

This sphere that we are deserting, within whose boundaries the sale and purchase of labour-power goes on, is in fact a very Eden of the innate rights of man. There alone rule Freedom, Equality, Property and Bentham. Freedom, because both buyer and seller of a commodity, say of labour-power, are constrained only by their own free will. They contract as free agents, and the agreement they come to, is but the form in which they give legal expression to their common will. Equality, because each enters into relation with the other, as with a simple owner of commodities, and they exchange equivalent for equivalent. Property, because each disposes only of what is his own. And Bentham, because each looks only to himself. The only force that brings them together and puts them in relation with each other, is the selfishness, the gain and the private interests of each. Each looks to himself only, and no one troubles himself about the rest, and just because they do so, do they all, in accordance with the pre-established harmony of things, or under the auspices of an all-shrewd providence, work together to their mutual advantage, for the “common weal and in the interest of all.”

On leaving this sphere of simple circulation or of exchange of commodities, which furnishes the “Free-trader Vulgaris” with his views and ideas, and with the standard by which he judges a society based on capital and wages, we think we can perceive a change in the physiognomy of our dramatis personae. He, who before was the money-owner, now strides in front as capitalist; the possessor of labour-power follows as his labourer. The one with an air of importance, smirking, intent on business; the other, timid and holding back, like one who is bringing his own hide to market and has nothing to expect but — a hiding.

Karl Marx, Capital Vol.1 Ch.6

30 April 2014

a marvellous instrument for revealing talents

      [Despite the fact that strong demographic and economic growth rates improve social mobility, and therefore theoretically limit income inequality], one should be wary of the conventional wisdom that modern economic growth is a marvellous instrument for revealing individual talents and aptitudes. There is some truth in this view, but since the early nineteenth century it has all too often been used to justify inequalities of all sorts, no matter how great their magnitude and no matter what their real causes may be, while at the same time gracing the winners in the new industrial economy with every imaginable virtue. For instance, the liberal economist Charles Dunoyer, who served as a prefect under the July Monarchy, had this to say in his 1845 book De la liberté du travail (in which he of course expressed his opposition to any form of labor law or social legislation): “one consequence of the industrial regime is to destroy artificial inequalities, but this only highlights natural inequalities all the more clearly.” For Dunoyer, natural inequalities included differences in physical, intellectual, and moral capabilities, differences that were crucial to the new economy of growth and innovation that he saw wherever he looked. This was his reason for rejecting state intervention of any kind: “superior abilities . . . are the source of everything that is great and useful. . . . Reduce everything to equality and you will bring everything to a standstill.” One sometimes hears the same thought expressed today in the idea that the new information economy will allow the most talented individuals to increase their productivity many times over. The plain fact is that this argument is often used to justify extreme inequalities and to defend the privileges of the winners without much consideration for the losers, much less for the facts, and without any real effort to verify whether this very convenient principle can actually explain the changes we observe.  

Thomas Piketty, Capital in the Twenty-First Century (2014: 84)

26 April 2014

a stabilization of inequality at an extremely high level


     The most striking fact of the day [in the nineteenth century] was the misery of the industrial proletariat. Despite the growth of the economy, or perhaps in part because of it, and because, as well, of the vast rural exodus owing to both population growth and increasing agricultural productivity, workers crowded into urban slums. The working day was long, and wages were very low. A new urban misery emerged, more visible, more shocking, and in some respects even more extreme than the rural misery of the Old Regime. Germinal, Oliver Twist, and Les Misérables did not spring from the imaginations of their authors, any more than did laws limiting child labor in factories to children older than eight (in France in 1841) or ten in the mines (in Britain in 1842). Dr. Villermé’s Tableau de l’état physique et moral des ouvriers employés dans les manufactures, published in France in 1840 (leading to the passage of a timid new child labor law in 1841), described the same sordid reality as The Condition of the Working Class in England, which Friedrich Engels published in 1845.
      In fact, all the historical data at our disposal today indicate that it was not until the second half—or even the final third—of the nineteenth century that a significant rise in the purchasing power of wages occurred. From the first to the sixth decade of the nineteenth century, workers’ wages stagnated at very low levels—close or even inferior to the levels of the eighteenth and previous centuries. This long phase of wage stagnation, which we observe in Britain as well as France, stands out all the more because economic growth was accelerating in this period. The capital share of national income—industrial profits, land rents, and building rents—insofar as can be estimated with the imperfect sources available today, increased considerably in both countries in the first half of the nineteenth century. It would decrease slightly in the final decades of the nineteenth century, as wages partly caught up with growth. The data we have assembled nevertheless reveal no structural decrease in inequality prior to World War I. What we see in the period 1870–1914 is at best a stabilization of inequality at an extremely high level, and in certain respects an endless inegalitarian spiral, marked in particular by increasing concentration of wealth. It is quite difficult to say where this trajectory would have led without the major economic and political shocks initiated by the war. With the aid of historical analysis and a little perspective, we can now see those shocks as the only forces since the Industrial Revolution powerful enough to reduce inequality.
  
Thomas Piketty, Capital in the Twenty-First Century (2014: 7-8)

03 February 2014

a play of energy that no particular end limits

Minds accustomed to seeing the development of productive forces as the ideal end of activity refuse to recognize that energy, which constitutes wealth, must ultimately be spent lavishly (with­out return), and that a series of profitable operations has abso­lutely no other effect than the squandering of profits. To affirm that it is necessary to dissipate a substantial portion of energy produced, sending it up in smoke, is to go against judgments that form the basis of a rational economy. We know cases where wealth has had to be destroyed (coffee thrown into the sea), but these scandals cannot reasonably be offered as examples to follow. They are the acknowledgment of an impotence, and no one could find in them the image and essence of wealth. Indeed, involuntary destruction (such as the disposal of coffee overboard) has in every case the meaning of failure; it is experienced as a misfortune; in no way can it be presented as desirable. And yet it is the type of operation without which there is no solution. When one considers the totality of productive wealth on the sur­face of the globe, it is evident that the products of this wealth can be employed for productive ends only insofar as the living organism that is economic mankind can increase its equipment. This is not entirely - neither always nor indefinitely - possible. A surplus must be dissipated through deficit operations: The final dissipation cannot fail to carry out the movement that animates terrestrial energy. 
      … Economic activity, considered as a whole, is conceived in terms of particular operations with limited ends. The mind generalizes by composing the aggregate of these operations. Economic science merely generalizes the iso­lated situation; it restricts its object to operations carried out with a view to a limited end, that of economic man. It does not take into consideration a play of energy that no particular end limits: the play of living matter in general, involved in the movement of light of which it is the result. On the surface of the globe, for living matter in general, energy is always in excess; the question is always posed in terms of extravagance. The choice is limited to how the wealth is to be squandered. It is to the particular living being, or to limited populations of living beings, that the prob­lem of necessity presents itself. But man is not just the separate being that contends with the living world and with other men for his share of resources. The general movement of exudation (of waste) of living matter impels him, and he cannot stop it; moreover, being at the summit, his sovereignty in the living world iden­tifies him with this movement; it destines him, in a privileged way, to that glorious operation, to useless consumption. If he denies this, as he is constantly urged to do by the consciousness of a necessity, of an indigence inherent in separate beings (which are constantly short of resources, which are nothing but eternally needy individuals), his denial does not alter the global movement of energy in the least: the latter cannot accumulate limitlessly in the productive forces; eventually, like a river into the sea, it is bound to escape us and be lost to us. 
      Incomprehension does not change the final outcome in the slight­est. We can ignore or forget the fact that the ground we live on is little other than a field of multiple destructions. Our ignorance only has this incontestable effect: It causes us to undergo what we could bring about in our own way, if we understood. It deprives us of the choice of an exudation that might suit us. Above all, it consigns men and their works to catastrophic destructions. For if we do not have the force to destroy the surplus energy ourselves, it cannot be used, and, like an unbroken animal that cannot be trained, it is this energy that destroys us; it is we who pay the price of the inevitable explosion.
  
Georges Bataille, The Accursed Share Vol. 1 (1988: 22-3)

14 December 2012

complete subordination to the undertaking and those who run it

The power which the bourgeoisie has to exploit and oppress the workers lies at the very foundations of our social life, and cannot be destroyed by any political and juridical transformation. This power consists in the first place and essentially in the modern system of production itself, that is to say big industry. Pungent dicta abound in Marx’s writings on this subject of living labour being enslaved to dead labour, “the reversal of the relationship between subject and object,” “the subordination of the worker to the material conditions of work.” “In the factory,” he writes in Capital, “there exists a mechanism independent of the workers, which incorporates them as living cogs.... The separation of the spiritual forces that play a part in production from manual labour, and the transformation of [these spiritual forces] into power exercised by capital over labour, attain their fulfilment in big industry founded on mechanization. The detail of the individual destiny of the machine-worker fades into insignificance before the science, the tremendous natural forces and the collective labour which are incorporated in the machines as a whole and constitute with them the employer’s power.” Thus the worker’s complete subordination to the undertaking and to those who run it is founded on the factory organization and not on the system of property. Similarly, “the separation of the spiritual forces that play a part in production from manual labour,” or, according to another formula, “the degrading division of labour into manual and intellectual labour,” is the very foundation of our culture, which is a culture of specialists. Science is a monopoly, not because public education is badly organized, but by its very nature; non-scientists have access only to the results, not to the methods, that is to say they can only believe, not assimilate. “Scientific socialism” has itself remained the monopoly of a select few, and the “intellectuals” possess, unfortunately, the same privileges in the working-class movement as they do in bourgeois society. And the same applies, furthermore, on the political plane.

Simone Weil, "The Causes of Liberty and Social Oppression" in Oppression and Liberty (2002: 40)