Showing posts with label Canada. Show all posts
Showing posts with label Canada. Show all posts

Monday, April 28, 2025

Canada: election under the shadow of Trump

by Michael Roberts

Canada has a snap general election today.  It’s been called by the new prime minister Mark Carney, the newly elected leader of the incumbent Liberal party government. The Liberals had been led by Justin Trudeau for years, but he stood down in 2024 because of his increased unpopularity and splits among the government leaders.  The ensuing party election saw Carney take over.

Mark Carney is the epitomy of a banker turned politician.  Formerly, yet another Goldman Sachs executive (13 years), he became governor of the Reserve Bank of Canada and then governor of the Bank of England (seven years).  On leaving that post, he prepared himself for a political career.  Luck follows the ambitious and when Donald Trump became president and began to talk of making Canada the 51st state of the US, Carney launched his campaign on strong nationalist lines. 

Up to then, the opposition Conservatives under Pierre Poilievre had held a significant lead in the polls from the summer of 2023 to the beginning of 2025, but after Trump’s blusterings, Carney has been able to turn things in the Liberals’ favour, particularly as the Conservatives had gone ‘Trumpist’ in their policies – a big mistake after Trump talked of ending Canada’s sovereignty.  By his blatant appeal to Canadian nationalism, Carney has been able to garner the support of most of those who usually vote for the labour-leaning New Democrats and the French-nationalist Bloc Quebecois.  

In so many ways, Carney is like a Canadian Mario Draghi that Italy and Europe have continually looked to provide leadership.  Both were ex-Goldman Sachs; both were central bankers and both became heroes of capital – Draghi for Europe and now Carney for Canada. It seems that in some countries when the ruling class gets in trouble, it turns to the ‘money men’ to bail them out.  Alongside his nationalist anti-Trumpist rhetoric, Carney has adopted the usual neo-liberal economic formula: tax cuts and government spending cuts as the solution to the country’s economic problems. As for Carney’s economic ideas, read my old post here. https://thenextrecession.wordpress.com/…/mark-carney…/ 

And there are plenty of problems. Given the state of the Canadian economy and the ranting from the White House, Carney will have his hands full if he wins.  Of the top seven (G7) capitalist economies, Canada is the smallest by GDP and population But it is the second-largest country by land mass, with the world’s longest coastline. It is bookended by the Pacific and Atlantic oceans, making it ideally situated for global trade (similar to the US). The country is energy independent, with the world’s largest deposits of high-grade uranium and the third-largest proven oil reserves. It is also the fifth-largest producer of natural gas. Canada boasts a huge supply of other commodities too, including the largest potash reserves (used to make fertiliser), over one-third of the world’s certified forests and a fifth of the planet’s surface freshwater. It has an abundance of cobalt, graphite, lithium and other rare earth elements, which are used in renewable technologies.

Despite these comparative advantages in natural resources, Canada’s GDP growth has long trailed its G7 peers, ranking just 16th globally in purchasing power parity terms. A country with its geography should generate higher output. But Canada’s capitalists have fallen behind in productive investment (outside energy) and in raising the productivity of their labour force.

Economic growth has been almost entirely driven by more people.  In the 21st century, Canada has had by far the fastest population growth rate in the G7, growing at an annualized rate of 1.1 per cent—more than twice the annual population growth rate of the G7 as a whole at 0.5 per cent. In aggregate, Canada’s population increased by 30% compared to just 11.5 per cent in the entire G7.  Adding one million people in one year to a base population of about 40 million is unprecedented. But Canadian’s standard of living, as measured by real GDP per person, is little higher in 2024 than in 2014 – a ten-year stagnation.

That’s because a massive slowdown in productivity growth. Over the decade prior to the pandemic, business sector productivity grew by a respectable rate of 1.2% annually. But since 2019, it has ceased to expand at all, setting Canada apart as one of the worst performing advanced economies.

Indeed, productivity growth within Canada’s goods-producing industries has not only slowed but has reversed. As a result, the goods sector has subtracted an average of 0.4 percentage points from Canada’s overall productivity growth every year since the pandemic.

The main reason for this collapse in productivity growth is that investment growth in productive sectors of the economy slowed towards zero. As Canadian Marxist economist, Geoff McCormack says, “given poor profitability, lacklustre capital accumulation, truncated capacity utilization, low employment and low real wage growth, it is unsurprising that real GDP growth, too, was weak.” Instead, there has been a credit-fuelled boom in housing.  With a population of just 40m, Canada is one of the world’s least densely populated countries. But remarkably, it also has one of the developed world’s worst housing shortages. Average house prices have tripled in the past two decades, with high mortgage debt straining consumer spending

The investment rate has fallen because of a sharp fall in the profitability of Canadian capital. The trajectory of the Canadian profit rate has always been driven significantly by the crude oil price. In the 13-year period following the ‘Great Canadian Slump’ of 1990-92, the profit rate on Canadian capital rose.  But after peaking in 2005, it began to fall rapidly, as the oil price fell, reaching a low in the pandemic slump of 2020.

Source: EWPT 7.0 series, AMECO, author

Between the years 1993 and 2005, the mass of profit grew by 142%. After 2005 and until 2019, however, it stagnated, having grown by merely 1.5% over the entire period.

Canada’s corporate sector is now weighed down by debt service costs with more than half of corporate income going to pay interest and principal payments on loans. Around 25% of Canada’s publicly traded companies can be considered as zombie firms ie. they persistently do not earn enough revenue to cover interest payments on their outstanding debts.

Canada increasingly relies on its production of oil and gas and other mineral resources. And so there is no drive to phase out fossil fuel production to save the planet. Previous Liberal prime minister Trudeau put it openly in a speech to cheering Texas oilmen a couple of years ago: “No country would find 173 billion barrels of oil in the ground and leave them there.” So Canada, which is 0.5% of the planet’s population, plans to use up nearly a third of the planet’s remaining carbon budget. Canada is failing by a long way to meet the net zero emissions target set for 2050 ( but then so are many other major economies).

Now President Trump is casting a dark shadow over Canada’s economy.  Trump has announced increased tariffs on imports from Canada of steel and aluminium and threatens even wider tariffs. Canada is the largest supplier of both steel (with a turnover of $11.2 billion, to the US, ahead of Brazil, Mexico, South Korea and Germany) and aluminum ($9.5 billion).  Trump has insisted Canada would cease to exist as a country” without the US buying goods from it. “We don’t really want Canada to make cars for us, to put it bluntly. We want to make our own cars.” Trump said: “I have to be honest, as a (US) state, it would work great.”

Tiff Macklem, governor of the Bank of Canada, has said the US tariffs would probably put Canada in a recession: “Depending on the extent and duration of the US tariffs the economic impact could be severe; the uncertainty alone is already causing harm.”  And“Higher US tariffs on the rest of the world will significantly weaken global demand and deepen the recession in Canada,” said Tony Stillo, Oxford’s director of Canada Economics and senior economist Michael Davenport. 

The Oxford economics say US tariffs on other countries will also weaken Canada’s exports, while “the trade war and pervasive uncertainty will paralyze private investment.” Oxford now expects a 1.3% pt peak-to-trough drop in GDP between the second quarter of 2025 and the first quarter of 2026. And it predicts Canadian house prices to fall 8 to 10 per cent by mid 2026 and 200,000 jobs to be lost, driving the unemployment rate to 7.7 per cent by the end of this year. Further down the road, Oxford forecasts GDP growth will average only 1.9 per cent a year between 2030 and 2050. In a worse scenario, where the trade war escalates, creating more barriers amid rising protectionism, growth could slow to just 1.1 per cent. 

Carney says that: “The old relationship we had with the United States, based on deepening integration of our economies and tight security and military co-operation, is over. The time will come for a broad renegotiation of our security and trade relationship,” whatever that might lead to.

Friday, November 11, 2022

Canada: the Ontario strike and the power of the trade unions

Reprinted from the UK Socialist Website Left Horizons

By Aaron Clemens in Ontario

With cash flowing to bail out corporations during the Covid-19 pandemic, the working class got meagre crumbs in order to survive. Few sectors of the working class were harder hit than the education system, as teachers’ unions were attacked by conservative governments and education workers laid off.

Now that governments have chosen to ignore the still ever-present Covid crisis and force schools and workplaces to reopen, the time has come for contracts to be renegotiated and the stage is set for bargaining power to be in the hands of the workers. The working class is experiencing a renewed enthusiasm for organized labour. We see this in the USA with the rise of the Starbucks and Amazon Labour unions, and we saw it in the strike of the Canadian Union of Public Employees (CUPE) across Ontario this week.

With inflation at a near 40 year-high at 8%, and the average wage of public education workers hovering around $39,000 a year, the government of Ontario offered a 2% pay bump over a four-year contract. This was on top of the wage cuts made by previous Liberal and Conservative governments over the last decade.

A 2% increase amounts to a pay cut when inflation is factored in. Instead, CUPE negotiators were asking for an 11% pay increase, which would catch up their wages to where they were ten years ago, or on average an increase of around $3.25/hour.

Contract forced on workers

With neither side budging for months, negotiations with the Education Minister broke down and the government of Ontario, headed by Doug Ford, passed back-to-work legislation and to force a contract onto workers by using a “notwithstanding” clause. This is a clause that allows lawmakers to trample the constitutional rights of Canadians, and in this case was used to take away the collective bargaining rights of Canadian workers. The Conservative government also passed legislation declaring that were there was an ‘illegal’ strike, workers would face fines of $4,000 a day while on illegal strike, with the union fined $500,000 a day.

On Friday, November 4th, 55,000 CUPE workers ‘illegally’ walked off the job in response to this legislation in defiance of the provincial government. A wildcat strike came into effect, and a wave of solidarity and support came from nearly every union in the province. Every private sector union that endorsed Ford and the Conservatives condemned the actions of the Premier and stood in full solidarity with the CUPE employees. An outpouring of support came from the public, and from parents of children affected by the strike as well. Solidarity rallies occurred the next day, and the momentum appeared to be on the side of the workers.

Affiliates within the Ontario Federation of Labour, a coalition of 54 labour unions, began talks of a general strike across the province. Polls taken indicated that 70% of unionized workers supported walking off the job for a single day in a province-wide general strike to send a message to Doug Ford that the right to collectively bargain is non-negotiable, and they would not get away with trampling on the constitutional rights of workers. The vast majority of Ontario workers understood the implications of this fight. If they can force CUPE workers back to work without a negotiated contract, they can do this to anyone of us.

CUPE is prepared to strike again

On this Monday, November 7th at noon, CUPE announced the strike was over for now because Ford had promised the repeal of Bill 28 in a Monday morning press conference. The picket lines were removed by the end of day and workers were back at work the following day, allowing children to go back to school. Negotiations were able to begin for a new contract, although at the time of writing, no contract has been signed.

Laura Walton, president of CUPE, has said that they are prepared to strike again if they are unhappy with the direction of negotiations. They removed the picket lines as a show of good faith, to a government full of crooks and cronies.

We now enter into an uncertain period of negotiations, and every union in Ontario who supported the strike are now on standby. The general strike is called off for now.

Ford got out ahead of the CUPE press conference and made an announcement, putting the ball back in CUPE’s court. In doing so, he took the wind and momentum out of the sails of the massive united front of unions coming together against him, even those who had endorsed him. He has managed to cool down the anger toward him, especially from his supporters, who were stuck with child care costs, and supporters who are reactionary towards public sector unions.

The working class has been deprived of a potentially explosive moment in which they could have made massive gains for education workers, not just for better wages but for democratic control of the workplace and to fight against privatization.

The worry is that this may be a trap and that Ford will renege on his deal further down the road. The Ford government is no stranger to changing their position when it suits them. In the midst of the chaos with CUPE, the Ontario Conservatives also quietly passed a motion to bulldoze thousands of acres of farmland and wetlands within the Green Belt for his developer crony friends and his supporters in some construction unions.

This policy goes back on a promise he made in 2018, in which he rescinded his plan to expedite environmental review processes that would do the exact same thing. It is possible Ford could engineer an even larger crisis to rescind his promises to the CUPE union and hope that nobody notices.

Negotiations will be watched carefully by all workers

The mere threat of a general strike resulted in Ford backing off and making an offer to the union to rescind Bill 28 and start negotiations. There is a growing consciousness among Ontario workers that this “notwithstanding” clause is a direct threat to all workers’ rights and if CUPE lost this fight it would essentially mean workers have no rights to collectively bargain.

All unions are now on standby, which means the negotiations will be watched very carefully. Ford cannot afford to mess up now, he was backed into a corner by labour, and this has empowered workers across the province.

This episode was a lesson in the benefits of mass organizing around pickets. The picket line is still one of the most powerful weapons the working class has in its struggle against the capitalist class. Hopefully, the negotiations will lead to a very good deal for CUPE workers, and Ford will think twice before unleashing something like this again. If CUPE is not satisfied, they have the attention of every union in Ontario and we will strike back in even larger numbers.

The unions flexed their muscles and won.

Ford is now in a weaker bargaining position in the face of unprecedented solidarity and labour action. The unions flexed their muscles and won. This is indeed a victory for the working class, even if we haven’t seen a deal yet.

Every struggle against capitalism is another brick in the foundation of a new society in which economic and state power are in the hands of working people. What we can glean from this incident is the working class of Ontario has shown the rest of the country that solidarity is still real and is still an effective weapon against the bosses.

Every fight the working class engages in teaches them how to organize and coordinate. A grocery fund was instigated for workers off work, and major union pressure came down even from the labour bureaucracy. The teachers’ union in British Columbia sent $1 million in donations to help cover fines and expenses for the CUPE workers. Workers will remember who had their back in this crisis. This is not nothing, and, if anything, shows class struggle is alive and well even in the most advanced capitalist countries.

Specific goals around which workers can rally

It also shows what it takes to truly undergo a general strike in a given region, either provincially or nationally. A Facebook page with a general strike declared (Oct 15th 2021) with no aims or motives will accomplish nothing and those lefts who tried to organize it will get demoralized and cynical.

A general strike must have a specific goal around which workers can rally. In this case, it was for the repeal of Bill 28 and for Ford to come to the bargaining table. A simple, straightforward and attainable goal, which was won!  It is through the small but cumulative victories that gives working people the confidence and empowerment they will need for the next fight.

A general strike must also involve organized labour and its leadership. While the major unions are run by massive anti-democratic labour bureaucracies, a general strike cannot be undertaken without their support. The fact that the labour leadership was even floating the idea of a general strike within a week only shows the seriousness of the Ford government’s attacks on the public sector, when historically they have relied on the courts to settle serious grievances.

Workers come to understand their own power

It is a major reason why, as Marxists, we see the importance of theory and education to the rank and file of all unions, as workers come to understand their own power and push back against their own labour leadership when that leadership fails to step up to the task. This experience will help nurture solidarity within and between private and public sector unions as the class consciousness of union workers develops.

If there is another general movement of workers, it will take place on a higher level. The old labour bureaucracies are on notice as the provincial government is on notice. Meanwhile, the newly formed unions like those among Starbucks and Amazon workers, will retain the militancy they gained when organizing.

The relationships built between private and public sector unions must be maintained and remembered for the next fight, because the next leader of Ontario might not cave so readily. As the capitalist crisis worsens, so will the class antagonisms and contradictions be made more apparent, the creativity and militancy of the working class will become abundantly apparent.

Tuesday, September 21, 2021

Canada: no change

by Michael Roberts

Canada’s Liberal Party prime minister Justin Trudeau has managed to get re-elected for the third time in the snap general election he called.  The Liberals won or were leading in 158 seats out of a total of 338 seats, and the Conservatives trailed the Liberals, winning or leading in 122 seats, four more than their 2019 result.  But Trudeau will fall short of an outright majority in parliament and will need the support of the left-leaning New Democrats to get any legislation through (as before). 

Indeed, the result is more or less the same as in the last election two years ago.  Trudeau’s plan to get a majority based on the ‘success’ of the government’s handling of the COVID crisis backfired.  Many voters considered the election as a cynical move and a waste of time.  Indeed, it was the Conservatives who got the biggest vote (as in 2019) attracting 34 per cent support to the Liberals’ 32 per cent, but Liberal support is centred around urban and suburban areas where there are more seats.  And Canada has a first past the post system as in the UK.

Voter turnout has been slipping in the 21st century from a peak of 75%; in this election it was around 65% – much higher than the US, about the same as the UK but below other G7 economies Germany and Japan. A 65% turnout means that the ‘no vote’ party was the largest – and Trudeau’s Liberals attracted just one in five potential voters.

Canada: voter turnout (%)

As the smallest G7 nation in GDP and population, Canada has seen far fewer COVID cases and deaths than many other nations, and Trudeau recently reopened the border, but only to the vaccinated.  In the election Trudeau pointed out the dire situation in Alberta, run by a Conservative provincial government, which refused to adopt social distancing restrictions and now has a wave of cases and hospitalisations.  Interestingly, the anti-vacc extreme right-wing People’s Party failed to make a mark, polling only 5%.

Trudeau may be back in office, but like the other G7 economies, things are not rosy economically.  Canada’s 2021 economic outlook is similar to that of other developed countries. After the largest economic contraction since 1945 (a dip of 5.5% of GDP in 2020), Canada is still in recession, according to the latest figures, although forecasters (Oxford Economics) are still expecting a sharp recovery.

Even if the above forecast turns out to be correct (and that is uncertain), the long-term economic trends for the Canadian economy are not great.  A recent Macdonald-Laurier Institute report, wrote that Canadian “real GDP growth over the past decade has been as lethargic as the decade after the onset of the Great Depression in 1929” (Cross 2020). Thus, Canadian capitalism had already been experiencing problems for over a decade when the COVID-19 lockdown started. 

For an account of Canadian capitalism up to the 1990s, I recommend the work of Marxist economist, Murray Smith . For the recent period, Geoff McCormack of the Centre for Canadian Studies at Guangdong University for Foreign Studies has produced an excellent analysis of Canadian capitalism, which I draw upon here.  McCormack finds that in the 13-year period following the ‘Great Canadian Slump’ of 1990-92, the profit rate on Canadian capital rose from 13% to 28%. But after peaking in 2005, it began to fall, reaching 17% in 2019.

The downward trajectory of the profit rate during this 14-year period was accompanied by a stagnating mass of profit. Between the years 1993 and 2005, the mass of profit grew by 142%. After 2005 and until 2019, however, it stagnated, having grown by merely 1.5% over the entire period.

Canada did escape much of the impact from the global financial crisis of 2008-9 because of the long period of relatively strong profitability and capital accumulation preceding the crisis. But by 2006, according to McCormack. profitability had begun to erode.  “Afterwards, “sneaking” stagnation became increasingly evident in rates of capital accumulation, capacity utilization, employment, as well as real wage and GDP growth.”

In the eight years following 2010, business investment in plant and machinery grew by an average of only 0.1%. Recovery after the Great Recession was driven a credit-fuelled boom in housing.  People got jobs but at low rates of pay, just as in other G7 economies.  In the years following the Great Recession, real wage growth slowed substantially, averaging just 0.4% per year.  As McCormack says, “given poor profitability, lacklustre capital accumulation, truncated capacity utilization, low employment and low real wage growth, it is unsurprising that real GDP growth, too, was weak.”

Canada increasingly relies on its production of oil and gas and other mineral resources. And so there is no drive to phase out fossil fuel production to save the planet. Trudeau put it in a speech to cheering Texas oilmen a couple of years ago: “No country would find 173 billion barrels of oil in the ground and leave them there.” So Canada, which is 0.5% of the planet’s population, plans to use up nearly a third of the planet’s remaining carbon budget. There’s oil in the ground and it must come out.

And even the growth in incomes in the last decade was not shared equally.  As in other OECD economies, the share of income going to the top 1% of ‘earners’ rocketed while the share going to the bottom 50% fell. Indeed, the top 1% has nearly as much income as the bottom 50%!

Canada: top 1% share (blue); bottom 50% (red) – World Inequality Database.

And wealth inequality in Canada is on a par with other G7 economies.

Source: World Bank

So the decade since 2009 has been characterized by sneaking stagnation, rooted in profitability problems that began after 2005. This has manifested itself in the stagnant accumulation of machinery and equipment, low industrial capacity utilization rates, low employment levels, as well as low real wage and GDP growth.  It is an expression of what I have called the Long Depression that all the major capitalist economies have sunk into since 2009 in the ten years leading up to the COVID slump.

And just as in other major G7 economies, corporate and household debt has jumped to record highs.  Despite very low interest rates, Canada’s corporate sector is weighed down by debt service costs. In 2020, 55% of corporate income went to paying interest and principal payments on loans, whereas it amounted to 43% in the US. The debt service ratio increased from 38% in 2006 to 57% in 2019 as economic stagnation wore on business balance sheets.

The Bank of Canada economists have classified 25% of Canada’s publicly traded companies as zombie firms ie. they persistently do not earn enough revenue to cover interest payments on their outstanding debts.

So Canadian capitalism bears all the hallmarks of the contradictions facing the rest of the G7 economies as they come out of the COVID slump.  PM Trudeau achieved nothing with his snap election and faces the same problems in getting Canada’s capitalist economy going as before.

Friday, October 9, 2020

Marxism and Indigenous Liberation


Susan Rosenthal is a retired Canadian physician. We share this article from her website at: Susanrosenthal.com  You can read more about her at this link.  The opinions in this article are her own.

By Susan Rosenthal

Capitalism always is and always will be an enemy of Native people. – Vern Harper, Following the Red Path: The Native People’s Caravan, 1974 (p. 92)

Climate catastrophes have increased support for Indigenous land and water defenders, whose mutually beneficial relationship with the environment makes a lot more sense than the slash, poison, and burn disaster of capitalism.

How can non-native people best support Indigenous struggles? What is the relationship between workers’ struggles for socialism and Indigenous struggles for sovereignty? Does marxism have anything useful to contribute?

Much has been written about the presumed antagonism between marxism and Native struggles. This conflict is the result of two factors: capitalist efforts to drive a racist wedge between Indigenous and workers’ struggles; and the destructive role of ‘managerial marxists’* who promote a ‘socialism’ that promises freedom and delivers the opposite.

This article addresses the contribution of Indigenous struggles to marxist theory, why ‘managerial marxism’ cannot end Native oppression, and how the revolutionary marxist principle of self-determination links the struggles of Indigenous peoples with those of the global working class.

Indigenous contribution

Marxism is typically dismissed as ‘Eurocentric’ theory that has nothing to offer the colonized. The opposite is true.

Marx and Engels intensively studied Indigenous cultures to uncover how a capitalist system that developed in Europe could spread throughout the world. They concluded that imperial powers are compelled to destroy Indigenous societies, not only to acquire their lands but also to establish wealth accumulation as the sole purpose of human activity. Marx wrote,

The discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the Indigenous population of that continent, the beginnings of the conquest and plunder of India, and the conversion of Africa into a preserve for the commercial hunting of Black skins, are all things which characterize the dawn of the era of capitalist production.

While capitalist productivity enabled a major increase in the human population, Marx and Engels were horrified at the barbarism of dispossession, genocide, slavery, and engineered famine, concluding, “Capital comes into the world dripping from head to foot, from every pore, with blood and dirt.”

Dispossession and displacement

Marx showed that capitalism cannot exist unless the ordinary person is dispossessed of any means of surviving other than working for the capitalist. This is achieved by transforming ‘common land’ (used by all) into private property (exclusively ‘owned’), forcing the dispossessed into servitude to the propertied classes. This practice originated inside emerging capitalist nations and became central to colonial policy.

In Europe, peasant farmers were forcibly displaced from ‘the commons,’ which were claimed by the lords as their private property. Landless peasants could then be exploited by the landlord or forced into factory work.

In North America, Indigenous peoples were dispossessed of their lands by European immigrants/settlers who, in turn, were displaced by the railroad and oil barons and later by capitalist ‘developers.’

The modern State can use expropriation or ‘eminent domain’ laws to claim anyone’s land, displace the inhabitants, and transfer land rights to the capitalist class for ‘development.’ To prevent private property from reverting to common use, the State enshrines the ‘right to private property’ in law and directs police and military to defend that ‘right.’

Marx concluded that land expropriation is a permanent feature of capitalism that cannot be stopped without dismantling the system that requires it. We see this in the continued expropriation and invasion of Native lands, the razing and obliteration of Black communities, and the gentrification that erases working-class neighborhoods.

Peaceful coexistence?

Two Row Wampum is one of the oldest treaty relationships between the original inhabitants of North America and European immigrants. Based on the Indigenous principle of mutual respect and non-interference in others’ affairs, this agreement visualized Native and settler relations as two separate vessels travelling down the same river, with neither party trying to steer the other’s vessel.

Imperial powers had no intention of honoring this or any subsequent agreement. Wanting to possess Native lands, they set out to destroy Native economies, reduce their numbers, ban their languages, outlaw their cultural practices, and shred their communal bonds. This genocide was excused with the racist argument that ‘savages’ are no more entitled to the land, or compensation for its loss, than animals in the forest.

Peaceful coexistence is impossible between societies based on sharing and those based on exploitation.

What is progress?

Capitalists insist that their system is the inevitable result of the ‘march of human progress’ and that human beings are superior to all creatures. Such arrogant fantasies are used to justify exploiting the human world, destroying the non-human world, and obliterating those labeled less-than-human.

In contrast, Indigenous traditions treat all existence as an indivisible family of beings, captured in the phrase, ‘all my relations:’

“All my relations” reminds us of the extended relationship we share with all human beings and the web of kinship extending to all the animate and inanimate forms that can be seen or imagined. More than that, “all my relations” is an encouragement for us to accept the responsibility we have within this universal family by living our lives in a harmonious and moral manner.

Science supports the Indigenous world view. In his book Wonderful Life (2006), paleontologist Stephen Jay Gould explains that nature is not organized hierarchically. Life does not evolve in a straight line but is random, ever-branching, and precarious, with many dead-ends and periodic mass extinctions that create space for the rise of new life forms. If we could go back in history and begin again, it is highly unlikely that the world would look anything like it does today, and equally unlikely that it would be inhabited by human beings. In short, we are here by accident, and our continuation is by no means assured.

For the vast majority of human history, there were no class divisions, and ‘progress’ was defined as whatever improved the quality of life. About 10,000 years ago, the rise of ruling classes changed the definition of progress to mean whatever increased the wealth of the rulers. Marx explained,

The ideas of the ruling class are in every epoch the ruling ideas, i.e. the class which is the ruling material force of society, is at the same time its ruling intellectual force. The class which has the means of material production at its disposal, has control at the same time over the means of mental production, so that, generally speaking, the ideas of those who lack the means of mental production are subject to it.

While imperialism claims to bring ‘progress’ to ‘backward’ peoples, the colonized do not experience domination as the kind of progress that makes life better.

Marx condemned British imperialism in India for clear-cutting forests, which caused more flooding, and for failing to maintain irrigation systems and grain storage units, causing widespread famine. He concluded, “The suppression of communal land ownership was nothing but an act of English vandalism that drove the indigenous population backward rather than forward.” Colonized peoples all over the world would agree.

Making wealth accumulation the definition of progress is a recipe for disaster. The world’s richest, most ‘advanced’ nation was felled by a virus because there is no profit in preserving the environment or preventing disease.

While capitalism makes it possible to improve everyone’s life, defining ‘progress’ as capital accumulation is a death sentence for humanity.

Marxism and Native Americans

Marxism and Native Americans (1983) is an important collection of essays exploring the relationship between marxism and the Native American struggle for self-rule.

Deep conflicts are revealed because the ‘marxists’ participating in this anthology could offer no alternative to capitalist oppression. The ‘socialist’ nations they defend also oppress Native people.

This raises the question: Are the so-called socialist countries oppressive because socialism is no better than capitalism, or are they oppressive because they are not really socialist at all? The second explanation makes more sense; however, most people believe the first, so an explanation is necessary.

‘Managerial marxists’ will admit that workers do not hold power in the so-called socialist states, yet still insist these states are socialist because they claim to hold power on behalf of the working class. Imperialists make a similar claim: that Indigenous people are ‘not ready’ to rule themselves and need colonial masters.

The mistaken reverence for so-called socialist States can be traced to the triumph of a workers’ revolution in Russia, and the refusal to accept its complete and utter defeat a few years later.

During the short time workers held power in Russia, Indigenous people had a taste of self-determination. The 1918 Constitution granted “equal rights to all the citizens, irrespective of their racial or ethnic affiliation.” Indigenous languages were encouraged, and books were produced in hundreds of ethnic languages.

Capitalists respond to every working-class rebellion as a threat to their existence, which it is. Combining forces, they moved to crush workers’ uprisings in Germany and elsewhere, leaving Russian workers isolated and without vital support.

The Russian revolution had transferred social power to the working-class. When workers could no longer hold onto power, it reverted to the elite. During the 1930s, a bloody counter-revolution in Russia installed a new state capitalist regime that revived all the old forms of oppression.

Acting as one giant capitalist, the State forced a rapid accumulation of capital in order to re-arm the Russian Empire. Exploitation was so intense that millions of workers and peasants starved to death. The Russian army invaded and occupied Eastern Europe. Indigenous peoples in the North were forcibly removed from their traditional lands, their languages outlawed, and their children incarcerated in ‘residential schools.’

All was justified in the name of ‘socialist progress’ and the insistence that such measures were necessary for a ‘socialist’ nation to survive in a capitalist world. It was a massive betrayal of the working class and the greatest swindle of the 20th century.

Why did so many ‘marxists’ defend Russia as ‘somehow socialist,’ even after the working class were defeated?

Many were unaware of the depth and viciousness of the counter-revolution. The Russian State continued to call itself Communist. The Cold War reinforced belief in a global conflict between capitalism and communism. And many feared that accepting the defeat of the Russian Revolution would imply that socialism is not possible.

With most of the Left convinced that socialism can exist without workers in power, other States could also claim to be socialist or communist while continuing to exploit and oppress their working classes. This led to two serious errors: The original meaning of socialism as worker self-rule was lost, and ‘socialism’ became associated with authoritarian rule or ‘Left authoritarianism.’ There is no such thing. In any form, authoritarianism is always right-wing because it opposes the right to self-determination.

‘Managerial marxists’ support continued class rule when they argue that the oppressed are not ready for self-rule. In contrast, revolutionary marxists strive to abolish class rule. We support the oppressed to organize their own liberation and collectively manage society from the bottom up.

‘Managerial marxists’ who promote socialism in theory and capitalism in practice cannot answer the challenges posed by the Native activists in this book. Worse, the chapter contributed by the Revolutionary Communist Party reeks with racist contempt, rejects Native sovereignty, and delivers empty promises. Calling this “the same old song” of the oppressors, which it is, one Native contributor concluded, “Marxism is as alien to my culture as capitalism.”

We should reject a ‘managerial marxism’ that has been stripped of its revolutionary core and made useless as a means for liberation. The alternative is not to reject marxism, but to revive the revolutionary marxist tradition of self-determination.

Stages

To justify why workers do not hold power in so-called socialist nations, ‘managerial marxists’ adopted capitalist ‘stages theory.’

Capitalist economists insist that societies inevitably ‘progress’ through stages: first foraging, then agriculture, then capitalism as the peak and final stage of human civilization. This self-serving theory is used to justify imperial conquest by treating Indigenous societies as historically backward and in need of assimilation ‘for their own good.’

Russia’s new capitalist rulers adopted stages theory with an add-on and a condition. The add-on is that socialism follows capitalism, and the condition is that capitalist economies must be fully developed before workers can be ‘ready’ for socialism. This condition justifies continued capital extraction and the conquest of societies labeled ‘less-developed.’ It also postpones the workers’ revolution to some vague and distant future.

Communist parties around the world embraced this version of stages theory with disastrous results: In China and Cuba, workers’ revolutions were deflected. After apartheid was defeated in South Africa, the new Black ruling class (advised by the South African Communist Party) insisted that African capitalism must develop further before socialism could be put on the agenda.

‘Managerial marxists’ use stages theory to argue that ‘historically backward’ Indigenous societies must be assimilated into the capitalist economy before Native people can win their liberation, as workers, through socialist revolution. This is similar to the capitalist promise of Native liberation through assimilation. Either way, Indigenous societies are erased as distinct societies, which is no liberation at all.

Revolutionary marxists reject stages theory because it prolongs the capitalist order. We oppose any measure that increases the power of the capitalist class; our goal is to end their rule. That is why Marx and Engels railed against colonialism, defended Algerian rebellions against French imperialism, and supported Irish, Indian, and African revolts against the British Empire.

Revolutionary marxists insist that socialist revolution has been on the global agenda for over 100 years. The reason we have not achieved it yet is the continued sabotage of the managerial class, including ‘managerial marxists.’

Self-determination

The emancipation of the working class must be achieved by the working class themselves. – The International Workingmen’s Association, 1864

Revolutionary marxism was founded on the principle of self-determination, that human beings are not problems to be managed but problem-solvers who can manage their own lives. Just as human societies flourished for thousands of years without police or prisons to ‘maintain order,’ revolutionary marxists support the majority to rule themselves and collectively manage society.

The demand to abolish class rule in favor of self-determination was the mobilizing principle of the Russian Revolution. Having liberated themselves, the workers of Russia moved to end all discrimination and oppression, including in the colonies of the Russian Empire. The 1917 Declaration of Rights of the Peoples of Russia proclaimed:

The free development of national minorities and ethnographic groups inhabiting the territory of Russia. [and] The right of the peoples of Russia to free self-determination, even to the point of separation and the formation of an independent state.

These were not empty words. As soon as Russian workers took power, Finland petitioned for independence, and this was granted the following month. Lenin insisted that solidarity across borders cannot be forced; it must be freely chosen. He argued that, in time, Finnish and Russian workers would recognize their common interest and choose to dismantle the walls between them.

The demand for self-determination links marxism and Indigenous liberation at the core. For workers, it means control over their bodies, their lives, and their work. For Native people, it means self-rule.

Under capitalism, Native self-rule means national sovereignty – the right to control what happens on their current lands and in their communities. A socialist revolution is necessary to achieve the ultimate goal of replacing private land ownership with common land stewardship.

Industrialization

Indigenous oppression is commonly blamed on industrialization, in and of itself. ‘Managerial marxists’ lend credibility to this belief because industry in the so-called socialist regimes is just as destructive as it is in capitalist nations. However, Native oppression did not begin with industrialization.

Before industrialization, the drive to extract wealth from the land was being imposed on Indigenous people by force and by incentive. As Natives were drawn into the fur trade, the traditional practice of taking only what you need gave way to killing animals for the commercial value of their skins, and the communal practice of sharing gave way to individual competition and economic dependence on the merchants. Industrialization accelerated these changes.

If industry is the primary problem, then Indigenous oppression can be ended only by returning to pre-industrial forms of production. However, a pre-industrial economy cannot support a global population of more than 7 billion people. Who would decide who survives and who is culled?

Revolutionary marxists argue that the root problem is not industry, but industry shaped by capitalist rule. On the one hand, it creates a global working class and the means to provide everyone with a decent life. On the other hand, making wealth extraction the sole purpose of industry degrades human labor, corrupts social relationships, and destroys the environment.

To solve the problems of capitalist industry, workers must take collective control, stop producing for profit, and start producing for need. Doing this would radically transform the structure, function, and meaning of industry.

Production for profit is insatiable because there is no limit to the capital that can be accumulated. Production for need is limited by what people can use and their willingness to work to produce it.

No one wants to waste their time making useless goods, such as weapons, or shoddy appliances that must continually be replaced. No one wants to suffer the toxic chemicals and dehumanizing, health-destroying practices that are built into capitalist industry.

Workers’ control means decisions about what to produce and how to produce it are made by those who will experience the outcome of those decisions: those doing the work, those living near the workplace, and those using what is produced. Unlike capitalists who care only for profit, workers who have freed themselves from capitalist control can only benefit by caring for their environment.

Native capitalism

Imperial powers use an outside-inside strategy to dominate Indigenous societies. The outside strategy is the use of external force to reduce Native numbers, destroy their economic base, and disrupt their social bonds. The inside strategy consists of cultivating a Native managerial class to serve as agents for colonial oppression.

The 1960s rebellions included the Native demand for sovereignty, meaning the right to live in traditional ways, free of capitalist control. To neutralize this movement, governments framed Native self-rule to mean the opposite, the right to own or manage private property as a means to produce wealth. This was encouraged through treaty-related payments and payments in exchange for Native lands and resources.

The 1975 James Bay and Northern Quebec Agreement paid $225-million in compensation for flooding traditional Indigenous lands in order to construct a massive hydro-electric project. The funds are administered by the Cree Regional Authority on behalf of the James Bay Cree, and by the Makivik Corporation on behalf of the Inuit of Northern Quebec.

Makivik has more than tripled its wealth by creating “profitable subsidiary companies, each with its own corporate leadership and board of directors, and each with a mandate to operate profitable, professional companies.” These companies include airlines, construction, shipping, logistics, and resource extraction. While some funds are used to service Inuit communities, most are reinvested in capital accumulation.

As Chief of the Westbank First Nation (WFN) in British Columbia, Ron Derrickson helped negotiate a deal with the Canadian government to allow Native communities to acquire property rights. According to the right-wing Fraser Institute,

The members of WFN have embraced private property in the forms of allotments (CPs) and supporting mechanisms such as leases, mortgages, contracts, and property tax. The result is a thriving real-estate economy that provides benefits both for WFN members and the far more numerous non-members who now live on WFN lands.

By 2007, Derrickson’s corporation was valued at over $100 million and included

20 companies with properties including mobile home parks, a family theme park, a marina, apartments, dozens of leased industrial and commercial properties, substantial tracts of prime undeveloped land, and other residential and recreational developments including a brand-new executive golf course.

Derrickson’s autobiography, Westbank Millionaire (2019), describes one man’s story of how he turned oppression and racism on its head and won prosperity for himself and his community by playing “the white man’s game.”

Native elites who promote such ‘success stories’ imply that any Native can do the same through hard work, education, and small business ownership. The capitalist class beat the same drum. According to Forbes, Native people on reservations are desperately poor, not because of racist oppression but because they lack  ‘property rights’ that would enable them to use their land as capital.

Equating Native self-rule with property rights has given rise to ‘neotribal capitalism,’ where the tribe functions as a corporation that owns or controls the land; however, it does not do so communally. The ‘corporation’ is managed by an elite class of Native bureaucrats who use tribal resources to accumulate capital, build personal wealth, and consolidate political power by dispensing jobs and favors.

To accumulate capital, you must exploit workers. Blocked by virulent racism from participating in the dominant economy, Native workers are a captive labor force. They have no other job options, and appeals for tribal unity discourage them from unionizing. Chided for her efforts to form a union, one Native worker replied,

We are an emerging government. We provide government services. Other governments have labour unions. I see no reason ours shouldn’t.

Class conflict

Self-organization and demands for self-rule strike at the core of capitalist control. To prevent both, capitalists employ a managerial class. Union bureaucrats manage workers, and Native bureaucrats manage Natives. Gord Hill notes,

We have our own band council chiefs telling us the solution is more capitalism and throwing more money at the problem. But of course that’s one of the major causes of the problem. It’s the capitalist system that is breaking down communities and destroying traditional territories and rendering people unable to understand themselves in a traditional way.

It is a mistake to oppose sovereignty for Native peoples on the basis that it would give more power to Native capitalists. The right of nations to self-determination must be unconditional, meaning, regardless of the kind of regime that results. When Finland petitioned for independence from Russia, no conditions were placed on its succession.

Native capitalism has given rise to a Native working class, some who live on reserves and more who live in cities. Solidarity means unconditional support for the right of others to choose their own path, whether we approve of their choices or not. We must trust Native people to deal with their own capitalist class, in their own way.

Solidarity

An injury to one is an injury to all.

Broad support for Indigenous self-rule can be mobilized on the basis that the capitalist State denies most of us the right to self-determination. Women are denied control over reproduction, workers are denied control over their work, and the majority are denied any control over the direction of society.

Challenging anti-native racism must not be reduced to an act of charity for the sole benefit of Native people. Any reduction in the power of the State to oppress Native people reduces its power to oppress anyone else.

Supporting others people’s choices without conditions does NOT mean forfeiting the right to offer criticisms or suggestions that you think will be helpful. Nor does it mean subordinating your own struggle against oppression to the struggles of others. Solidarity means finding creative ways to connect and strengthen all our struggles. It means fighting shoulder-to-shoulder against a common enemy.

Those who place themselves ‘under the leadership’ of Native people mistakenly assume that they speak with one voice on all things. A heated land dispute in Caledonia, Ontario revealed “a wide and conflicting range of opinions and perspectives” concerning the way forward. As one non-native participant observed,

The community is not monolithic, and it is divided along lines of religion, occupation, and class, as well as by family networks and business interests. There are divisions between an older generation of traditionalists who have little interaction with non-native society and younger activists who use the internet to share their opinions and perspectives. On top of that, there are different and conflicting interpretations of the Great Law, or guiding constitution, of the Six Nations; tensions between the different nations that make up the Confederacy; political differences between warrior society-inspired groupings and some traditional Confederacy leaders; and differences based on people’s positions at the reclamation site and the length of time they have spent there.

Despite their good intentions, those who put themselves ‘at the service’ of Native people avoid the more challenging task of organizing against racism in their own communities. Two Native activists explained,

A huge issue that kept coming up from the non-native activists was their “place” in this predominantly Indigenous struggle. They were scared that they would overstep their boundaries as “privileged” non-natives on an issue that, in their minds, should be Native-led. This fear led them to suggest that they should only work in a supportive role. This view fails to acknowledge the power, privilege and responsibility non-native “Canadian” activists have in organizing within their own country and against their own governments.

Back in the 1960s, a section of the Black Power movement expressed a similar concern,

White people who desire change in this country should go where that problem [of racism] is most manifest. That problem is not in the Black community.

In Caledonia, solidarity activists gravitated to the Native encampment, leaving racists in the town free to organize against Native rights, with business leaders arguing that White people’s standard of living would suffer if Native people won. This led to declining support for Native rights as the conflict intensified.

By failing to organize within the predominantly white communities surrounding Six Nations, the white left has effectively ceded this terrain to racist demagogues and allowed [them] to speak unopposed on behalf of the “average hard-working, taxpaying, middle-class Canadian” of the area.

Solidarity between non-native workers and Native activists was possible. The town of Caledonia was well unionized, and many workers had suffered police brutality on picket lines and as people of color.

Anti-Native racism can be countered by connecting Native oppression to the many forms of oppression that workers experience, and by demanding that any monetary reparations be paid by the same corporations that grew wealthy stealing Native lands and exploiting workers.

Seeds for our future

A mere property career is not the final destiny of mankind because such a career contains the elements of self-destruction. The time that has passed away since civilization began is but a fragment of the past duration of man’s existence; and but a fragment of the ages yet to come. The next society will be a revival, in a higher form, of the liberty, equality and fraternity of the ancient tribes. – Marx, Ethnological Notebooks (p. 139)

Marx argued that Indigenous societies play an important role in human development because of their enduring struggle against class rule, and because they retain the memory of humanity’s egalitarian past and the possibility of a future free of oppression. In Prison of Grass: Canada from a Native Point of View (1975), Howard Adams explains,

Before the Europeans arrived, Indian society was governed without police, without kings and governors, without judges, and without a ruling class. Disputes were settled by the council, among the people concerned. Indian government was neither extensive nor complicated, and positions were created only to ensure effective administration for a given period of time. There were no poor and needy by comparison with other members, and likewise no wealthy and privileged; as a result, on the prairies there were no classes and no class antagonisms among the people. Members of the community were bound to give each other assistance, protection, and support, not only as part of their economics, but as part of their religion as well. Sharing was a natural characteristic of their way of life. Each member recognized his or her responsibility for contributing to the tribe’s welfare when required, and individual profit-making was unknown. Everyone was equal in rights and benefits. (p.18)

It is our challenge to rebuild these egalitarian social relationships in a global industrial society under workers’ control where, as Marx noted about the Iroquois, “All members are personally free and bound to defend each other’s freedom.”

(*For more on the managerial class, see Rebel Minds)