Capitalist Lifeboats Will Come “At Some Point…”

The IMF reports that Greek incomes have dropped by about 10 per cent since 2010, hours worked have dropped by 7 per cent, and unemployment (especially youth unemployment) is skyrocketing.

That isn’t good enough for Greece’s lenders, who are looking to the Greek government to engineer a further direct assault on the country’s minimum wage, labour standards, pensions and collective bargaining with the aim of imposing a substantial further drop in income. Continue reading


The Economic Basis of the Withering Away of the State: The State and Revolution

by Vladimir Lenin

Marx explains this question most thoroughly in his Critique of the Gotha Programme (letter to Bracke, May 5, 1875, which was not published until 1891 when it was printed in Neue Zeit, vol. IX, 1, and which has appeared in Russian in a special edition). The polemical part of this remarkable work, which contains a criticism of Lassalleanism, has, so to speak, overshadowed its positive part, namely, the analysis of the connection between the development of communism and the withering away of the state.

1. Presentation of the Question by Marx

From a superficial comparison of Marx’s letter to Bracke of May 5, 1875, with Engels’ letter to Bebel of March 28, 1875, which we examined above, it might appear that Marx was much more of a “champion of the state” than Engels, and that the difference of opinion between the two writers on the question of the state was very considerable.

Engels suggested to Bebel that all chatter about the state be dropped altogether, that the word “state” be eliminated from the programme altogether and the word “community” substituted for it. Engels even declared that the Commune was long a state in the proper sense of the word. Yet Marx even spoke of the “future state in communist society”, i.e., he would seem to recognize the need for the state even under communism.

But such a view would be fundamentally wrong. A closer examination shows that Marx’s and Engels’ views on the state and its withering away were completely identical, and that Marx’s expression quoted above refers to the state in the process of withering away. Continue reading

Effect of Capitalist Competition on the Capitalist Class, the Middle Class and the Working Class: Wage Labour and Capital

by Karl Marx

We thus see how the method of production and the means of production are constantly enlarged, revolutionized, how division of labour necessarily draws after it greater division of labour, the employment of machinery greater employment of machinery, work upon a large scale work upon a still greater scale. This is the law that continually throws capitalist production out of its old ruts and compels capital to strain ever more the productive forces of labour for the very reason that it has already strained them – the law that grants it no respite, and constantly shouts in its ear: March! march! This is no other law than that which, within the periodical fluctuations of commerce, necessarily adjusts the price of a commodity to its cost of production.

No matter how powerful the means of production which a capitalist may bring into the field, competition will make their adoption general; and from the moment that they have been generally adopted, the sole result of the greater productiveness of his capital will be that he must furnish at the same price, 10, 20, 100 times as much as before. But since he must find a market for, perhaps, 1,000 times as much, in order to outweigh the lower selling price by the greater quantity of the sale; since now a more extensive sale is necessary not only to gain a greater profit, but also in order to replace the cost of production (the instrument of production itself grows always more costly, as we have seen), and since this more extensive sale has become a question of life and death not only for him, but also for his rivals, the old struggle must begin again, and it is all the more violent the more powerful the means of production already invented are. The division of labour and the application of machinery will therefore take a fresh start, and upon an even greater scale. Continue reading

The Interests of Capital and Wage-Labour Are Diametrically Opposed: Wage Labour and Capital

by Karl Marx

We thus see that, even if we keep ourselves within the relation of capital and wage-labour, the interests of capitals and the interests of wage-labour are diametrically opposed to each other.

industrial lansdscape

A rapid growth of capital is synonymous with a rapid growth of profits. Profits can grow rapidly only when the price of labour – the relative wages – decrease just as rapidly. Relative wages may fall, although real wages rise simultaneously with nominal wages, with the money value of labour, provided only that the real wage does not rise in the same proportion as the profit. If, for instance, in good business years wages rise 5 per cent, while profits rise 30 per cent, the proportional, the relative wage has not increased, but decreased.

If, therefore, the income of the worker increased with the rapid growth of capital, there is at the same time a widening of the social chasm that divides the worker from the capitalist, and increase in the power of capital over labour, a greater dependence of labour upon capital. Continue reading

The General Law that Determines the Rise and Fall of Wages and Profits: Wage Labour and Capital

by Karl Marx

We have said: “Wages are not a share of the worker in the commodities produced by him. Wages are that part of already existing commodities with which the capitalist buys a certain amount of productive labor-power.” But the capitalist must replace these wages out of the price for which he sells the product made by the worker; he must so replace it that, as a rule, there remains to him a surplus above the cost of production expended by him, that is, he must get a profit.

The selling price of the commodities produced by the worker is divided, from the point of view of the capitalist, into three parts:

First, the replacement of the price of the raw materials advanced by him, in addition to the replacement of the wear and tear of the tools, machines, and other instruments of labor likewise advanced by him;

Second, the replacement of the wages advanced; and

Third, the surplus leftover – i.e., the profit of the capitalist. Continue reading

Relation of Wage-Labour to Capital: Wage Labour and Capital

by Karl Marx

What is it that takes place in the exchange between the capitalist and the wage-labourer?

The labourer receives means of subsistence in exchange for his labour-power; the capitalist receives, in exchange for his means of subsistence, labour, the productive activity of the labourer, the creative force by which the worker not only replaces what he consumes, but also gives to the accumulated labour a greater value than it previously possessed. The labourer gets from the capitalist a portion of the existing means of subsistence. For what purpose do these means of subsistence serve him? For immediate consumption. But as soon as I consume means of subsistence, they are irrevocably lost to me, unless I employ the time during which these means sustain my life in producing new means of subsistence, in creating by my labour new values in place of the values lost in consumption. But it is just this noble reproductive power that the labourer surrenders to the capitalist in exchange for means of subsistence received. Consequently, he has lost it for himself. Continue reading

Is the French Communist Party Back?

by Zoltan Zigedy

After years of retreat and opportunism and consequent loss of support and influence, the French Communist Party (PCF) is showing signs of life. Aligned with smaller parties in the Left Front (Front de Gauche, FG), the PCF has rallied around the presidential candidacy of Jean Melenchon for the forthcoming first round of French elections. The latest polls show Melenchon with over 14% of the prospective voters, ahead of all other candidates excepting Hollande (PS) and Sarkozy (UMP).

This once dynamic party succumbed to the allure of reformism, anti-Sovietism, and compromise with its embrace of the so-called “Euro-Communist” stance in the seventies. With over half a million members immediately after World War II, and garnering more votes than any other party at that time, the PCF was poised to become the dominant force in French politics, if not the first CP to launch a Western European country onto the road to socialism. Continue reading