by Michael Roberts
The New York Times magazine has described Richard Wolff as “probably
America’s most prominent Marxist economist”. And that is probably not
an exaggeration as a description of this emeritus Professor of Economics
at the University of Massachusetts, Amherst and visiting professor at
the New School University in New York.
Richard Wolff has been one of a handful of Marxist economists with full tenure at an American university. And he has worked tirelessly to bring home to students and all who would listen in the US, the
Marxist alternative explanation of the nature of US capitalism and its
current crisis. Wolff has written several important economics books,
sometimes with his close collaborator, Stephen A. Resnick. In
particular, their recent book, Contending Economic Theories, neoclassical, Keynesian and Marxian is
a very useful and clear explanation of the main strands of economics
for those who don’t know. Professor Wolff’s weekly show, Economic Update with Richard D. Wolff, is syndicated on over 70 radio stations nationwide and available for broadcast on Free Speech TV.
Now Wolff has published two short books designed to explain the ideas
of Marxism and socialism in a straightforward way: Understanding
Marxism and Understanding Socialism. The first analyses capitalism.
He goes through the concepts of how competition develops between the
capitalists (p.51); how labour power is commodified (p.41); and how
capitalism is prone to crises and instability (p.60). Any individual, he
says “exhibiting a personal instability comparable to the economic
and social instability of capitalism would long ago have been required
to seek professional help and to make basic changes” (p.61). But
capitalism limps on and threatens to take us all down with it. Until
workers get to decide democratically what to do about replacing it, so
it will continue.
As Wolff has said: “If you want to understand an economy, not
only from the point of view of people who love it, but also from the
point of view of people who are critical and think we can do better,
then you need to study Marxian economics as part of any serious attempt
to understand what’s going on. Not to do it is to exclude yourself from
the critical tradition.”
Wolff concentrates on Marx’s key discovery about capitalism,
namely the surplus value, which is what employers appropriate above
what they pay for wages. Wolff shows that productive workers are not
compensated for the full amount and worth of their labour. And that
constitutes exploitation. The expropriators constitute a tiny percentage
of the population, and they control what happens with that surplus
value. It is this relationship of production, Wolff insists, that has
thwarted the democratic promises of the American, French, and other
bourgeois revolutions. And this system of minority rule over ownership
of assets and people’s labour power is also the cause of the staggering
inequality that afflicts the world now.
The weakness in Wolff’s narrative, at least as expressed in his previous books
is his explanation of why capitalism has crises in investment,
production and employment that damages the lives of billions. Wolff
adopts the classic underconsumption argument that capitalists pay “insufficient wages to enable workers to purchase growing capitalist output”.
Regular readers of this blog will know that I consider this theory of
capitalist crises as wrong. Marx rejected it; it does not stand up
theoretically as part of Marx’s law of value or profitability; and
empirical evidence is against it.
In the second book, Understanding Socialism,
Wolff looks at various socialist experiments throughout history and
suggests a new path to socialism based on workplace democracy.
Socialism allows the many to control the fruits of their labour. And
this would be done in a democratic way, with the workers voting on these
concerns, as democracy is extended way beyond voting for politicians
and even ballot initiatives, to the factory floor, the office, etc.
Wolff focuses on this democratization of the workplace as the basis
of a socialist future. Wolff correctly emphasises that the economic
base of socialism is the collective ownership of the means of
production. But he is concerned not to adopt the central planning model
of the failed Soviet Union, as he sees it. So he wants decentralised
democracy through workers cooperatives. For him, the solution to
recurrent crises and rising inequality lies in “changing the class structure of capitalist enterprises” and replacing them with “workers-directed enterprises.”
Wolff is concerned, rightly, to correct the view that the socialist
alternative to capitalism is simply the public ownership of the major
corporations and a national plan. Without democracy and workers control
at company level there can be no real socialist development. Otherwise
state officials merely replace a capitalist board of directors. This
is “insufficient conceptually and strategically”.
But Wolff wants to include and emphasise the role of what he calls
Workers Self-Directed Enterprises (WSDEs). To me, this seems to be
bending the stick too far the other way, being close the utopian
socialist ideas of Fourier and Robert Owen. Workers cooperatives without
planning implies that markets will continue to rule between coops,
opening the door to the forces of the law of value, rather than
directing productive forces in the interest of society as a whole. It
is one thing to achieve democracy at the workplace, but is it not
jumping out of the frying pan into the fire, by leaving the wider
economy to power of the market?
No comments:
Post a Comment