On the "One Drop Rule" and Other Mistakes in Determining Mode of Production
Among many who have not engaged with Marxist theory, there can be confusion regarding the determination of systems as Socialist, Capitalist, and so forth. Are markets Capitalism? Is public ownership Socialism? Is a worker cooperative in a Capitalist country a fragment of Socialism? These questions are answered by studying Dialectical and Historical Materialism, and I will attempt to help clarify those questions here.
The idea that Socialism means only and exclusively full ownership in public hands is wrong, and anti-Marxist. To take such a stance means either Capitalism and Feudalism have never existed either, the sort of “one-drop” rule, or that Socialism itself is a unique Mode of Production that needs to be judged based on “purity” while the rest do not, a conception that has roots in idealism rather than Materialism.
Modes of Production should be defined in a manner that is consistent. If we hold this definition for Socialism, then either it means a portion of the economy can be Socialist, ie USPS, or a worker cooperative, or it means an economy is only Socialist if all property has been collectivized. Neither actually allows us to usefully analyze the trajectory of a country and who actually has the power within it.
For the former, this definition fails to take into account the context to which portions of the economy play in the broader scope, and therefore which class holds the power in society. A worker cooperative in the US, ultimately, must deal with Capitalist elements of the economy. Whether it be from the raw materials they use being from non-cooperatives, to the distributors they deal with, to the banks where they gain the seed Capital, they exist as a cog in a broader system dominated by Capitalists in the US. Same with USPS, which exists in a country where heavy industry and resources are privatized, it serves as a way to subsidize transport for Capitalists. The overall power in a system must be judged.
For the latter, this “one drop” rule, if equally applied, means Feudalism and Capitalism have never existed either. There is no reason Socialism should be judged any differently from Capitalism or Feudalism. To do so is to add confusion, and the origin of such a desire is from idealists who believe Socialism to be a grand, almost mystical achievement of perfection. The truth is more mundane, and yet because it's more mundane, it's real, and achievable, as it already has been in many countries.
What Socialism ultimately is is a system where the Working Class is in control, and public ownership is the principle aspect of society. If a rubber ball factory is privately owned but the rubber factory is public, the public sector holds more power over the economy. In the Nordics, heavy industry is privatized for the most part, and social safety nets are funded through loans and ownership of industry in the Global South, similar to being a landlord in country form. In the PRC, heavy industry and large industry is squarely in the hands of the public, which is why Capitalists are subservient to the State, rather than the other way around.
As for the purpose of Socialism, it is improving the lives of the working class in material and measurable ways. Public ownership is a tool, one especially effective at higher degrees of development. Markets and private ownership are a tool, one that can be utilized more effectively at lower stages in development. Like fire, private ownership presents real danger in giving Capitalists more power, but also like fire this does not mean we cannot harness it and should avoid it entirely, provided the proper precautions are taken.
Moreover, markets are destined to centralize. Markets erase their own foundations. The reason public ownership is a goal for Marxists is because of this centralizing factor, as industry gets more complex public ownership increasingly becomes more efficient and effective. Just because you can publicly own something doesn’t mean the act of ownership improves metrics like life expectancy and literacy, public ownership isn’t some holy experience that gives workers magic powers. Public ownership and Private ownership are tools that play a role in society, and we believe Public Ownership is undeniably the way to go at higher phases in development because it becomes necessary, not because it has mystical properties.
Ultimately, it boils down to mindsets of dogmatism or pragmatism. Concepts like “true Socialism” treat Marx as a religious prophet, while going against Marx’s analysis! This is why studying Historical and Dialectical Materialism is important, as it explains the why of Marxism and Socialism in a manner that can be used for real development of the Working Class and real liberation.
Marxism isn't useful because Marx was prophetic, but because he synthesized the ideas built up by his predecessors and armed the working class with valuable tools for understanding their enemy and the methods with which to overcome said enemy.
Excellent post comrade. All socialists should keep the perspective that Marxism is not a dogmatic set of rules, but a science: a fluid discipline that should always be ready to take in new data, experiment, and learn from experience.
Thank you! I adapted it from a response to another comment a bit ago and cleaned it up into its own post. I see a lot of issues with people familiar with the economic aspects of Socialism, but lack an appreciation for Dialectical Materialism, and run into traps that end up serving Imperialism.
If we hold this definition for Socialism, then either it means a portion of the economy can be Socialist, ie USPS, or a worker cooperative
No. Capitalism is not the existence of the bourgeoisie, but rather the existence of the commodity form. When commodities are traded for their "exchange value", some of the surplus value of labor from the worker is siphoned off, and goes elsewhere, like to grow the business.
If a rubber ball factory is privately owned but the rubber factory is public
No. As long as the rubber ball factory sells balls it's capitalism.
This means that workers coops, and even other democratically ran systems, as long as items are engaged with the commodity form, are capitalism, and inherit the problems of capitalism (racism, forced labor, imperialism, etc).
The idea that "people" control capital, though a bourgeoisie class or something of the sort is idealism. Materialist analysis says that capital selects the systems and people that "control" it, rather than the other way around. Worker coops are not socialism, but rather, systems similar to bourgeoisie democracy.
This is why China and the other AES states are capitalism. They engage, primarily in the commodity form, and thus inherit the problems that capitalism causes such as racism, forced labor, and imperialism.
Theory I like (may add more as I find more):
https://www.international-communist-party.org/English/Texts/65ThChin.htm (although I disagree with this on some parts. The idea that the revolution in Russia failed because "Stalinism betrayed everyone" is again, idealist analysis. The Russian revolution failed/Stalinism came about because the German revolution failed (again, due to material reasons), and there was a failure to bring about international communism.)
I disagree with this analysis, though I appreciate you taking it fairly seriously.
No. Capitalism is not the existence of the bourgeoisie, but rather the existence of the commodity form. When commodities are traded for their “exchange value”, some of the surplus value of labor from the worker is siphoned off, and goes elsewhere, like to grow the business.
Capitalism is dominated by such a system. Exchange-value, as it emerges and dominates, brings with it Capitalism. However, even in Communism, well beyond Socialism, this "siphoning" of value will persist in order to "pay" for new expansions, free public services, etc. Marx in Critique of the Gotha Programme states as much:
What we have to deal with here is a communist society, not as it has developed on its own foundations, but, on the contrary, just as it emerges from capitalist society; which is thus in every respect, economically, morally and intellectually, still stamped with the birth marks of the old society from whose womb it emerges. Accordingly, the individual producer receives back from society -- after the deductions have been made -- exactly what he gives to it. What he has given to it is his individual quantum of labour. For example, the social working day consists of the sum of the individual hours of work; the individual labour time of the individual producer is the part of the social working day contributed by him, his share in it. He receives a certificate from society that he has furnished such and such an amount of labour (after deducting his labour for the common funds), and with this certificate he draws from the social stock of means of consumption as much as the same amount of labour costs. The same amount of labour which he has given to society in one form he receives back in another.
That doesn't mean commodity production will always persist, but it does mean "siphoning value" is not a hallmark of commodity production. Commodity production is contradictory to Socialist production, yes, but it does not mean that Commodity Production in an economy means it isn't Socialist, but that that is a contradiction that must be worked out. How is commodity production worked out? Not by decree, but by degree, it scales with the level of development of the Productive Forces and is ended as it must be compelled to be by economic advancement.
If you only read Marx's economic works, where Marx often speaks of perfect, theoretical conditions, it can be easy to see contradictions as evidence to the contrary. However, the real world has real contradictions, all Modes of Production do. Central planning and public ownership is a contradiction for Capitalism, yet we don't call the US "Socialist" for having the USPS. Contradictions must eventually be resolved. Moreover, I was not saying cooperatives are Socialist, I was asking hypotheticals in order to address them. The idea that Socialism is simply "worker ownership of the Means of Production" is similarly wrong, I presented a number of common questions so as to show what I was to answer.
In a higher phase of communist society, after the enslaving subordination of the individual to the division of labour, and with it also the antithesis between mental and physical labour, has vanished; after labour has become not only a means of life but itself life's prime want; after the productive forces have also increased with the all-round development of the individual, and all the springs of co-operative wealth flow more abundantly -- only then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs!
We are talking about a long and drawn out process even within Communist society.
No. As long as the rubber ball factory sells balls it’s capitalism.
Modes of Production are not found in the individual cogs of an economy, but the economy itself. The idea that you can "pluck" Capitalist parts of an economy and Socialist parts is thinking more in line with Mechanical Materialism than Dialectical Materialism. Just like you can't study a thrown ball and ignore the thrower you cannot untangle sectors of the economy from the whole.
If we are to assume that any commodity-producing economy is Capitalist, then Capitalism has existed for thousands of years, and will continue to exist well into Socialism.
This means that workers coops, and even other democratically ran systems, as long as items are engaged with the commodity form, are capitalism, and inherit the problems of capitalism (racism, forced labor, imperialism, etc).
I'd argue that it is utterly meaningless to determine what a quantum of the economy is when compared to its movements and direction as a whole. Cooperatives can exist in Capitalist or Socialist economies and determine neither. Cooperatives are petite bourgeois firms, they maintain classes, and thus aren't going to last into Communism, but they can't be considered on their own.
The idea that “people” control capital, though a bourgeoisie class or something of the sort is idealism. Materialist analysis says that capital selects the systems and people that “control” it, rather than the other way around. Worker coops are not socialism, but rather, systems similar to bourgeoisie democracy.
Capital controls people in Capitalism. Humans are always bound by material laws and social movements and mechanisms, but Humans can wrest control from Capitalists. See Marx's proposed direction of a revolution, in the Manifesto:
The proletariat will use its political supremacy to wrest, by degrees, all capital from the bourgeoisie, to centralise all instruments of production in the hands of the State, i. e., of the proletariat organised as the ruling class; and to increase the total of productive forces as rapidly as possible.
By what measure of time can a revolution wrest by degree? By as long as it takes for the conditions for central planning to economically develop themselves, the entire thesis of Scientific Socialism. Why was Bismark not a Socialist, despite nationalizing industries? Because it was both in service of the bourgeoisie, and because it was not economically compelled, but commanded by a bourgeois state. Read Engels' footnote in Socialism: Utopian and Scientific:
I say is constrained to. For it is only when the means of production or communication have actually outgrown direction by joint-stock companies and therefore their nationalization has become economically inevitable -- it is only then that this nationalization, even when carried out by the state of today, represents an economic advance, the attainment of another preliminary step towards the seizure of all the productive forces by society itself. But since Bismarck became keen on nationalizing, a certain spurious socialism has recently made its appearance -- here and there even degenerating into a kind of flunkeyism -- which without more ado declares all nationalization, even the Bismarckian kind, to be socialistic. To be sure, if the nationalization of the tobacco trade were socialistic, Napoleon and Metternich would rank among the founders of socialism. If the Belgian state, for quite ordinary political [cont. onto p. 91. -- DJR] and financial reasons, constructed its own main railway lines, if Bismarck, without any economic compulsion, nationalized the main Prussian railway lines simply in order to be better able to organize and use them in face of war, in order to train the railway officials as the government's voting cattle, and especially in order to secure a new source of revenue independent of parliamentary votes, such actions were in no sense socialistic measures, whether direct or indirect, conscious or unconscious. Otherwise, the Royal Maritime Company, the Royal Porcelain Manufacture, and even the regimental tailors in the army would be socialist institutions, or even, as was seriously proposed by a sly dog in the 'thirties, during the reign of Frederick William III, the nationalization of the -- brothels. [Note by Engels.]
Commodity production centralizes and erases itself, and a Proletarian-controlled society can wrest by the degree to which it has developed according to the natural laws of economic centralization espoused and elaborated on by Engels in the above passage. We call this "new" society Socialist, as it is one where the Proletariat has siezed control and can wield its political power to intentionally wrest from the bourgeoisie as the productive forces develop and make themselves inevitable.
By your logic, Capitalism is "magical" in that even in the microscopic it dominates the whole of an economy, and Socialism is "magical" in that it is distinct from all other Modes of Production in that it is determined by "purity." It sees Capitalism as an "impurity" to be stamped out in order for Socialism to occur, and Socialism as a mythical status determined as "pure." No such system of "purity" has ever existed, rather, as Marx says, "what we have to deal with here is a communist society, not as it has developed on its own foundations, but, on the contrary, just as it emerges from capitalist society; which is thus in every respect, economically, morally and intellectually, still stamped with the birth marks of the old society from whose womb it emerges."
Perhaps worst of all, though, is the problem Ultraleftism like Bordiga's followers support is that it produces no real revolutions and seems to work against the working class at every turn, rather than equip it to move forward. The lack of a German Revolution did not mean the Proletariat should have given up in Russia, and their success in wielding Marxism in the favor of the Working Class is proof that they were correct to press onward. What use is Marxism if not to improve the lives of working people?
well beyond Socialism, this "siphoning" of value will persist in order to "pay" for new expansions, free public services, etc.
How? What value is there to be extracted from the worker when there is no representation of debt or value in play?
and their success in wielding Marxism in the favor of the Working Class is proof that they were correct to press onward. What use is Marxism if not to improve the lives of working people?
No. They failed.
I have seen many of your comments, and you constantly bring up blackshirts and reds, despite it being historical revisionism.