Democrats need to Galvanise the Working Class to Ensure Future Victories

 

above: Court Appeals aside, a Biden-Harris victory now seems certain 

 Dr Tristan Ewins

 

As a Biden-Harris victory becomes apparent in the United States Presidential race it’s well to consider the various stratum  of voters and how they have determined the result.  The future is still in question. Although Trump has lost, voters came out for both tickets in record numbers.  The Democrats need to sustain their current base, and indeed improve upon it in the future. There’s the question of how the Democrats might in the future do even better and win control of Congress as a whole, including the Senate.  At the moment policy gridlock is a real prospect.

 

Despite Trump's loss people are now speaking of the white working class as if it is a 'natural' Republican constituency.

 

In a way the Left in the US let this happen. Not only did the white working class turn away from the Democrats ; the US Left turned away from the white working class as well. Today class is seen as secondary to racial, sexual and gender identity.

 

In reality all of these things matter and the Left needs to build a united front.  But be careful telling a white working class man on minimum wage how privileged they are. Intersectionality needs to be more complex and nuanced.  We need to do more than just stacking a number of identity categories on top of each other. Rather we need to look at specific individual circumstance. The working poor – whether black, latino, white - are not 'privileged' in the big picture.  We also need to look at the social and economic ‘structure’ (ie: patterned social relations) , and the strategic position of the working class in this.

 

Another problem is the myth of the US 'middle class' ; standing in the way of solidarity between workers more broadly. The US class structure locks the working poor in place to support the consumption of middle income Americans ; but leaves 'middle income' Americans insecure enough to be vulnerable industrially. (the old reserve army of labour again ; with lack of labour market regulation and industrial rights ; and a lack of a ‘social safety net’ as well) We need solidarity across the whole working class ; against the top 10% - the rich and elements of the self-interested labour aristocracy. 'Middle income' is not the same as 'middle class'.

 

Again we need to emphasise solidarity across the whole working class ; but I think the privilege of working poor white people can be exaggerated. Race, gender and sexuality are seen as more important in determining privilege than class.  Again: In reality it all matters. That said, black people have problems with the police which white people don't have. Men don't have to worry about reproductive rights. There's still homophobia out there. But it's not helped when some people talk of 'poor white trash' and so on. The Right understands the meaning of 'divide and conquer', and the Left should not fall for it.

 

 I'm not saying ignore sexuality, race and gender. I'm saying what we are doing to a large extent is ignoring class. I'm saying we're hurting ourselves electorally and culturally by not attempting to mobilise the working class as a whole. I'm saying you should not just write someone off because they're a white male. And our language should reflect this. They could be working poor, unemployed, disabled and so on. Or they could just be working class ; which is the layer with a broad enough and strategically placed base to potentially transition from capitalism.

 

I'm saying we should also look at peoples' individual circumstances when working out privilege. The New Social Movements arising from the 60s onwards are a crucial constituency, and reinvigorated the Left in many ways. But the fact is workers are still alienated, imiserated and exploited under capitalism. And the fact is the American Left needs a strategy to win back white workers - not because they're more important in of themselves ; but because the working class is stronger when united ; and there's an important (and sizeable) constituency which can be the difference between victory and defeat.  

 

For instance, there is the US Senate where a Republican majority could potentially stymie meaningful change.  A stronger electoral showing could overcome this.  Race, sexuality and gender are important ; but we can't allow them to become all-encompassing fault lines. Again ; it's about divide and conquer. Don't let it happen. So don’t 'write people off' because of identity categories. Take each person as an individual.  The point is many workers are voting Republican and they shouldn't be. What's gone wrong here and how can we fix it?

 

Some people are trying to pin the blame on ‘academic elites’ ; with ‘Critical theory’ and ‘Cultural Marxism’ depicted as alienating the working class. But critical theory is diverse. Habermas is less about 'identity' than Marcuse. While Habermas looks at 'Legitimation Crisis' stemming from attacks on the welfare state, Marcuse looks to New Social Movements to 'fill the vacuum'. The problem is that the working class as seen by Marcuse in the 1960s is not the same as today's working class. Today's working class has not been 'bought off' by prosperity ; but is highly exploited and alienated. In particular there is job insecurity, a weakened labour movement, and a falling wage share of the economy. But a 'popular front' of working class and New Social Movements is the only way to win today. So the Right pays great attention to dividing us against one another with narratives on ‘political correctness’ and the like.  The Left needs a narrative which engages with more socially-conservative workers while not compromising on principle.

 

In Australia we don't campaign effectively on class either. We need to make peoples' economic self-interest transparent. If we could do that we wouldn't have to worry so much about "aspirationals".

 

Looking at how many votes Sanders got the liberals still do need the socialists in the Democratic Party.  (and vice-versa)  Biden's victory is largely because the Left base turned out. This needs to be impressed upon Biden so that Biden makes it a top priority to deliver on policy.  An active industry policy creating new manufacturing jobs – especially in ‘rust belt’ states – could be offered in return for health reform (a public option) and a $15 minimum wage. (indexed) If the Republicans refuse to come to the table here they turn their backs on the working class constituency the Democrats must try and win back. So perhaps they will be open to a compromise favouring the Democrat policy agenda. And then the Democrats can take credit for the policy as well.

 

Antonio Gramsci talked of a ‘counter-hegemonic historic bloc’ ; an articulated alliance of forces – including the organised and conscious working class ; and ‘organic intellectuals’ embedded in that class – as the key to socialist transition. To this today we must add the New Social Movements.  A counter-hegemonic historic bloc must include the broad working class ; and if meaningful progress is to be attained the Left cannot allow large swathes of that class to remain feeling alienated from, and over-looked by the Left.  

In short, this means appealing to the working class as a whole ; and emphasising class at least as much as race, gender and sexuality.  It means not allowing a critique of race and gender to prevent us from identifying class-based disadvantage.  It means not "writing off" white male workers because of race and gender ; but rather applying a nuanced intersectionality which appreciates peoples' unique circumstances.  And building solidarity based on this inclusive approach.

Responding to the Legacy of George Orwell

 

Dr Tristan Ewins

Just the other day I was a participant in a debate on George Orwell. One person argued that Orwell was opposed to Left Authoritarianism, and as a consequence would be opposed to ‘Antifa.’  (For those who don’t know, ‘Antifa’ is a broad anti-fascist popular front, often led by anarchists)  Another person responded by saying Orwell was really a social democrat, and spent his life fighting fascism.  Orwell is used to discredit the Antifa cause – in a process that is, well, ‘Orwellian’.

 

Both people were right in their own way ; but despite the problems with Leninism it is best not to get it entirely mixed up with Stalinism. (though they are historically linked)   Orwell himself was a socialist, and fought in Spain against Franco.  (with the POUM – which translates as ‘Workers Party of Marxist Unification’)   The legacy of George Orwell is too important to reduce it to a critique of ‘socialist totalitarianism’.  Yes, there is an anti-Stalinist aspect to ‘Animal Farm’ and ‘1984’.  But Orwell’s opposition to ‘totalitarianism’ is deeper than this ; and capitalism is increasingly portrayed as an ‘absolute’: ‘total capitalism’.

 

Tactically and in principle it’s also dangerous to avoid the use of the word ‘socialism’ by arguing for ‘social democracy’ instead.  By using both terms together we get a better sense that ‘socialism’ and ‘social democracy’ once meant the same thing.   (and perhaps could again)  ‘Social Democracy’ is more complex than just ‘the post-war mixed economy, Keynesianism and welfare state’.   And the original social democratic (socialist) tradition deserves to be rescued, despite Rosa Luxemburg’s insistence it had become a “rotting corpse” on account of its response to World War One. 

In truth, most of global social democracy did capitulate on the issue of the War ; and this was the flashpoint which saw the rise of Leninism and its opposition to the rest of the Left.  (importantly, Luxemburg herself was what we may call a ‘libertarian socialist’ and was critical of Leninism’s practice of ‘democratic centralism’ following the revolution as well)  Here we have to distinguish, also, between ‘democratic centralism’ as a mode of organisation prior to 1917 on the one hand, and what it mutated into later under Lenin ; and worse so under Stalin.  But figures like Julius Martov and Karl Kaustsky resonated with their criticisms of Bolshevism, also, and in so doing left a legacy for radical social democracy. (socialism)  And the Austro-Marxists and their so-called ‘Two and a Half international’ also stand as a reminder that there were alternatives between Leninism and Right Social Democracy.  For many years ‘Red Vienna’ was considered a model of radical (socialist) social democracy. It also involved a ‘workers army’ (Schutzbund) which was meant to be a ‘final defence’ for ‘the democratic path’.  Ironically,  it succumbed to an indigenous ‘clerical fascism’ itself because it could not decide how to fight ; or when; or where.  But Austria’s levels of high quality public housing are an enduring legacy as well.

When people criticise Leninism they often neglect that Leninism originally still allowed for mass participation in the Vanguard Party. (ie: a party of professional revolutionaries whose job it is to lead the revolutionary working class ; often under conditions of capitalist state repression)  There is also a tension, here, between the original ‘Vanguard’ role of these parties, and later gestures towards mass participation.  This goes to the question of whether a ‘one party state’ can be truly democratic. The answer depends on freedom of participation and organisation, and the absence of internal Terror.  Stalin went one step further than Lenin and imposed Terror WITHIN the Party and the whole of society. Up until after the Revolution Leninism allowed for factions as well.  

 

Terror is undesirable anyway, and tends to expand as centralism increases beyond a certain point.  Thus far, Rosa Luxemburg is correct in her critique of Leninism. The problem is that war and foreign intervention left limited choices ; and this helped lead to tragedy.

 

So it depends what you mean by Leninism. There's democratic centralism and the Vanguard Party. Following the Menshevist/Bolshevist split of 1903 (see: 'What is to be Done?' - it is the definitive text on Bolshevist organisation ; written in 1901, published in 1902)  And then there's certain policies which followed: Terror (first outside of, then inside of the Party as well – increasingly pervasive and indiscriminate), labour militarisation, banning of factions and of other socialist parties, and so on. The point is that Stalinism took all this to a different level ; and democratic centralism was originally predicated on freedom WITHIN the party (but discipline in between Conferences ; partly as a defence against state repression).

That said, there was a logic to Leninism, which in the context of Entente and other foreign intervention, civil war, the threat of starvation and of people freezing to death – helped lead eventually to Stalinism.  More and more extreme measures were taken (largely defensively) ; and led to permanent repression.

In contrast, though, I don't believe in Leninist centralism. One reason is that in certain contexts it means the suppression of debate between Conferences. I also believe it's inevitable factions will organise ; and forcibly suppressing factions just favours the ruling stratum. Finally, I share Rosa Luxemburg’s love of freedom, and recognise that while Leninism and then Stalinism resulted in certain ‘victories’, over the long term these resulted in an object lesson which was used to discredit the Left, and justify policies like McCarthyism. (anti-socialist hysteria and repression)

The problem is: What was the 'way out' in Russia at the time? A purely liberal response may have ended in White victory, a continuation of the slaughter of World War One, and Tsarist Restoration. Also remember that the Bolsheviks were the only Party willing to pull out of World War One pretty much unconditionally.  Maybe the solution was ‘dual power’ – with co-existence of Soviets, the Constituent Assembly and the Red Army.

 

Leninism - warts and all - has problems ; but remember the context of World War One, threatened starvation and social collapse as well. And the liberal parties wanted to continue that war.  Even the Left Social Revolutionaries took this approach - resulting in an assassination attempt on Lenin.

 

Remember that the French Revolution was bloody as well ; but the tactics of the Jacobins didn't forever discredit democracy or liberalism. By contrast we are constantly told that Leninism and Stalinism have forever discredited socialism.

 

Better to avoid the dilemmas the Bolsheviks faced in the first place - because it was bound to end tragically. But appreciate the moral complexity. The Russian Revolution came on the tail end of a War that killed over 20 million people. Some of the same people who are critical on Leninism will try and justify the First World War. And ignore the long list of Western Cold War atrocities. (for example, the brutal mass murder of half a million communists and labour movement activists in 1960s Indonesia)

 
Importantly: liberal democracy ultimately triumphed. But only because it was able to ‘tame’ and internalise the broad left within a practical capitalist consensus.  And eventually a virtual neo-liberal consensus.  Still: “liberal democracy” is worth defending as opposed to the alternative of Stalinism or a Corporatist State. (ie: fascism)  Now that it lacks opponents on the Left, we see liberal democracy attracting critics on the Right.   (so much for ‘The End of History – a term coined by the liberal Hegelian, Francis Fukuyama after the collapse of the Soviet Union) Here it is well to defend Liberal Democracy . At least it retains freedoms which make liberation imaginable ; and even its limited freedoms are preferable to the Rightist alternative)

 

Libertarianism of both the Right and the Left when authentically expressed are not as bad as fascism.  A true libertarian would defend the rights of unions and their workers to withdraw labour. And would treat free speech as a universal.  A fascist would work through a corporatist nationalist state that suppressed opposition violently, and promoted a literally illiberal Ideology.  By ‘corporatism’ we mean the forcible union of capital and labour under authoritarian state nationalism. (though certain variations on ‘corporatism’ – eg: Sweden – saw rather an institutionalisation of class struggle and the mobilisation of ‘Power Resources’)  A true Left libertarian would be sympathetic to the cause of ‘Antifa.’  A right-libertarian would accept their right to participate and exist. Personally, I consider myself a socialist liberal. That said, all organisations can be penetrated by agent provocateurs.  And ‘ultra-leftism’ is often mistaken.

 

Remember, also, Marx said of the bourgeoisie that it would 'snort' at its republic "Better end with Terror than Terror without End". (written in 1852, largely in response to the context of the 1848 Revolutions)  Trump understands this and seeks a predicate for repression based on 'law and order'. Agent provocateurs understand this also and act accordingly.  (‘End with Terror’ itself can also lead to ‘Terror without End’ under Fascism ; and Hitler came close to winning the Second World War at several points)

The Left needs to respond strategically.  We should not disavow militancy generally ; and practically disarm ourselves.  But neither should we support every act of militancy when this will result in our isolation.  There is a dilemma.  Rosa Luxemburg talked of “spontaneity of the masses” : a ‘dialectic’ between revolutionary working class self-initiative and the leadership of a revolutionary party.  In a way she is right.  On the other hand, unrestrained rebellion can work as a pretext for State Terror. Think of the rise of Mussolini and fascism in the 1920s in Italy following a period of revolutionary upsurge.

 

Also, under Stalinism Western Communist Parties were often restrained to further Soviet Foreign policy.  Dulling the class struggle.  But sometimes there is wisdom in restraint.

There is also wisdom in taking the initiative at the right time ; including militant strategies.  The Left needs to be nuanced enough to know the difference.

This article was originally published at ‘The Australian Independent Media Network’

'Supply Side' Budget Stimulus - Government could have done more for 'Battlers' and Women

above:Anthony Albanese has called for more funds for Child Care and Social Housing

Dr Tristan Ewins

The 2020 Federal Budget projects a deficit of some $213 billion – a far cry from the previously projected surplus.   An already sluggish economy – hit now by Covid-induced economic collapse – left no option but massive stimulus – lest the nation sink into a Depression. 

In a way it is encouraging that the government has thrown away the book on neo-liberal orthodoxy to some extent.  A contractionary budget would have been disastrous.  A notable amount of the stimulus (about $6 billion) comprises wage subsidies aimed at the young – with the aim of supporting some 450,000 jobs. The plight of the older unemployed – thrown onto the Jobseeker scrapheap – is another question.   In the largest  single measure over $26 billion in tax breaks will be delivered to business to write off the value of new investment by June 2022.  There will also be a $4.9 billion “loss carry-back scheme” enabling businesses  “to claim refunds or offsets on taxes in previous years.”  Importantly, the third round of tax cuts – aimed at high income earners – has not been brought forward  - in a win for Labor and the Greens.  But the business sweeteners are not consistently tied to job creation and job retention – so for all that money there are no guarantees for workers.  According to ACTU President, Michelle O’Neil, the government also projects zero wage growth even if there is economic growth in the coming years.

In Aged Care, $1.6 billion will provide 23,000 home care packages. But this is below demand, and there are no big plans to reform residential care.  Perhaps this will come with the final findings of the  Aged Care Royal Commission and the next election: but the need is urgent and ought not be put off.  In fact it is dubious the Conservatives will find the money for comprehensive Aged Care reform: Home Care and Residential packages to meet demand ; with quotas for Aged Care Workers and registered nurses, a winding back of user pays, exercise and GP visits for all residents, and an emphasis on quality of life. It will be up to Labor and the Greens to put up a fight, though disappointingly Labor has known about these problems for over a decade, and is only making the right noises now with the focus provided by the Royal Commission.  We are talking many billions of dollars annually to make a difference over the long term.

‘The Age’ reports that “about 11.5 million workers will get up to $2745 more in their pay packets this financial year”.  Though the raising of the threshold of 32.5 per cent to $120,000 from $90,000 is arguably badly targeted.  And support for pensioners and the unemployed is insufficient, with a total of $500 in payments to Aged Pensioners meant to bring relief and fuel spending.  More for those on  low incomes and welfare would have a greater stimulatory effect, and would contribute to fairness.  On the other hand the low income tax offset will rise from $445 to $700 in a modest but welcome measure.

Importantly, of the new spending measures only $6.7 billion is going to the states for new infrastructure.   Including other infrastructure measures the figure is closer to $10 billlion extra over ten years.  The government’s main emphasis is in providing support and incentives to ‘kickstart’ business as opposed to measures directly supporting consumption at the low and middle ends ; although increased business confidence would support jobs.   The Budget measures emphasise the ‘supply side’ but neglects the ‘demand side’ when it comes to low income earners, the unemployed and pensioners.  The opportunity to permanently raise Jobseeker appears to have been neglected, and many jobs will be lost with the premature withdrawal of Jobkeeper.

Of most concern, stimulus is not a ‘black hole’. Getting people spending and back to work is part of a ‘virtuous cycle’ which can restore growth and rejuvenate the government’s balance sheet.  With record low interest rates the time has never been better for investment, and the Government could have done more here.

The economy’s pre-existing weaknesses have not helped ; but a Labor Government could not have avoided a Covid recession.  As Labor has argued it will be putting the case for ‘better bang for our buck’ in the stimulus. This should mean more emphasis on those on low incomes and welfare, and providing support where it will grow spending and investment in jobs most vigorously.  Too many businesses will be pocketing these 'sweeteners' without necessarily creating jobs.

In response to the Budget, Anthony Albanese has committed to further child care subsidies and half a billion to refurbish public housing.  We need wage subsidies for child care and early education workers as well however. And also subsidies for consumers of child care and early childhood education. Both as a matter of fairness (for child care and early education workers – and women workers more generally) ; to get more women working, and to attract talented educators into the field. Also with housing out of reach for so many people a big investment (into the billions) in public housing now could both stimulate the economy and promote affordability.

Modern Monetary Theory supposes government can issue currency to ensure a ‘full employment guarantee’.  Such stimulus is part of the picture, but can be limited by inflation and currency devaluation.  Though inflation seems unlikely in the current environment.   Redistribution can’t be done properly and fairly without tax ; but MMT has something to contribute to this debate.  The government's projections on unemployment are nowhere near ambitious enough.

If Labor was in government this kind of stimulus would be derided as an ‘irresponsible’ ‘cash splash’.   Consensus that stimulus is part of the way forward in times of economic weakness is at least a good thing in itself.  It sees Conservative arguments against the Rudd stimulus of the Global Financial Crisis (GFC) blown metaphorically out of the water.   Labor governments of the future will be able to point to the current effective consensus on SOME form of stimulus to help justify their own efforts when governing in times of downturn or stagnation.  Which will inevitably come as part of the capitalist cycle. But this government's emphasis on the 'supply side' of the equation is nowhere near discriminatory enough.

Covid 19 has hit the economy hard; But where is the Recovery going to come from?

Richard Denniss of The Australia Institute thinks the Economy will not simply 'snap back' after the Covid-19 Crisis. A long term government role is required.

Dr Tristan Ewins

Covid 19 has hit the Australian economy hard.   By some estimates the Australian economy will shrink by approximately 7 per cent in 2020.  Maybe more.   That’s a virtually unprecedented recession.

https://www.abc.net.au/news/2020-04-15/how-coronavirus-crisis-compares-to-1990s-recession-australia/12148020

Shutting down workplaces: hospitality and tourism, higher education and some manufacturing: comes at an enormous cost.

We can’t put a price on peoples’ lives and peoples’ health.  But many people will need to sacrifice to ‘spread the burden’ of funding recovery.

Some have suggested a ‘HECS-style loan’ for those unemployed as a consequence of this crisis.  

Because this discriminates, it is unfair.  Richard Denniss – speaking on ABC radio – is correct about this.  Though I think he is wrong about HECS more broadly.   Income contingent loans to pay for government  support of individuals during the crisis would mean a veritable ‘labour market lottery’ as to who was left with debt. Denniss agrees with this much.  But also ‘income contingent loans’ have a longer history of losing their progressivity as governments reduce thresholds to help pay for other endeavours – such as ubiquitous corporate welfare.

Also will the government temporarily increase corporate tax  during the recovery period to service debts incurred supporting the private sector during the crisis?

https://www.abc.net.au/radionational/programs/sundayextra/the-lasting-economic-damage-from-the-covid-19/12223194

The government’s stimulus has provided a lifeline for many.

But one rational assumption is that the economy won’t simply ‘snap back’ at the end of a six month period ; and as a consequence the government cannot afford to ‘step back’ and just let the private sector ‘fill the breach’.  The real economy doesn’t work like this.

In hospitality and tourism the structural effects on the economy could last quite some time. We don’t know whether there will be a ‘second wave’ or whether we will ‘break the back’ of the spread in this country.  But global travel will take years to ‘get back to normal’, and the US and the UK are still deep in crisis.  The ACT and Northern Territory also understandably want to reap the benefits of wiping out the virus, and don’t want it reintroduced from interstate.

On the other hand the crisis provides an opportunity to broaden and deepen the public sector to create the ‘economic infrastructure’ around which recovery will occur.  Make strategic infrastructure investments, as well as structural improvements in public services ; unemployment services ; in Health, Aged care and disability services ; in welfare, transport, communications, arts.  The NDIS needs to be more accessible, with 'consumers' interests protected more vigorously.  The CES (or 'Centrelink' these days) should be refunded as a 'one stop shop' for job-seekers - but without the usual harassment and humiliation.  Homelessness could be addressed 'head on' with a big investment in public housing. Fix the NBN with ‘fibre-to-the-home’.  A big public investment in renewables. And coming out of the crisis: Have an active industry policy which strategically supports and invests in high wage manufacturing.

This is also an ideal opportunity to progressively reform welfare across the board ; and lift job-seekers out of poverty.

On ABC radio high speed rail was inferred as perhaps a ‘dubious investment’.  But it could drive growth in the regions, with a flow on of jobs and affordable housing.  As well as containment of urban sprawl and the transport crises that ensue from that.

The simple truth is that the public sector might have to pick up the slack on the economy for some time to come if there is to be any chance of a recovery.  And if we navigate this in the right way it can present an opportunity.

Modern Monetary Theory (MMT) holds that as the issuer of the currency the government can create money at will to invest and ensure a ‘full employment guarantee’.   Though this is limited by real economic constraints concerning the scale and nature of goods and services actually produced in the economy at the end of the day.  In some instances there might also be inflation ; and you cannot ‘create money’ to fund an infinite influx of imports.

But full employment is in everyone’s interests: so long as there is an ‘efficiency dividend’ which provides benefits for all ; and so long as consultation with unions ensures there is no endless ‘wage-price spiral’.   Higher employment has a ‘multiplier effect’ on the broader economy that also makes debts easier to service. At the same time, the wage share of the economy has been falling for decades ; and long term there is a need for a structural correction which could also create extra demand in the economy.   

As part of this picture there should be reform of the labour market improving compensation in low-paid jobs – either with regulation, or through the social wage. (or both)

Modern Monetary Theory has been somewhat skeptical of the role of taxation, claiming it ‘takes money out of the economy’.  But this need not be the case if all that money is spent ; if indeed there is a stimulus.  Taxation also allows for a much more finely targeted redistribution of wealth: which should be desirable for progressives.

As MMT theorists also recognise, state governments in Australia cannot issue currency.

The current public health crisis is going to cause much more pain before it is overcome.  But the right kind of policies on investment, industry policy, welfare and stimulus can minimise that pain, and even help ensure in the end we come out of the crisis stronger.


(nb: I'm wanting to publish this article elsewhere as well ; but I'm interested in feedback from readers on how I can improve the piece before I do that ; looking forward to comments :)  )