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Workers Councils Part 5. The Peace


2. Towards New Slavery

The second world war has devastated Europe. In Germany nearly all towns have been turned into ruins and rubbish by American bombers, where 60 millions of people, starving and naked, have to live as savages in their holes. In France, Italy, Holland, Poland, England, large parts have been devastated in the same way. More vital still than this visible lack of housing is the destruction of the production apparatus. Under the industrial system of capitalism the production apparatus, the factories, machines, traffic are the backbone, the basis of life. Under primitive, pre-capitalist conditions of simple agriculture the soil secures life. Under capitalism-in-ruins agriculture, retrograde as it is, cannot provide sufficient food for the industrial millions, and ruined industry cannot provide tools and fertilizers to restore agriculture. So Europe, after the war, as first and main task, faces the problem of recovery.

Recovery, reconstruction, was the watchword proclaimed and heard everywhere. It meant more than simply reconstruction of the production apparatus, the construction of new machines, ships, trucks and factories. It meant reconstruction of the production system, of the system of social relations between capital and labor, the reconstruction of capitalism. Whereas during the war ideas arose and were heard of a new world to come after the war, a better world of harmony, social justice and progress, even of socialism, now it was made clear that, practically, capitalism and exploitation were to remain the basis of society. How could it be otherwise ? Since during the war the workers acted only as obedient servants, soldiers to vanquish their masters' enemies, with never a thought of acting for their own freedom, there can be no question to-day of any change in the basic principle of society, capitalist exploitation.

This does not mean restoration of old capitalism. It has gone for ever. Conditions have changed. Capitalism is in distress. We are poor. Where productive force has been destroyed so thoroughly, it stands to reason that there must be scarceness of all life necessities. But there is more to it. Poverty is not equally distributed. As President Truman lately stated, wages had risen less and profits had risen more than the prices. The poor are poorer now, the rich are richer than before. This is no chance result of temporary conditions. To grasp its meaning we have to consider the deeper economic basis of the new' social conditions. Formerly, in ordinary times, the gradual renovation of the productive apparatus at the rate in which it was used up or became antiquated, took a certain regular percentage of the entire labor of society. Now the mass destruction demands a mass renovation in a short time. This means that a larger part of the total labor has to be spent on the production of means of production, and a smaller part is left for consumption goods. Under capitalism the means of production are the property of the capitalist class; they are renovated out of the surplus-value. Hence more surplus-value is needed. This means that a larger share of the produce has to fall to the capitalist class, a smaller share to the working class. As capitalist opinion in the middle class literature expresses it : For recovery of prosperity the first condition is production of capital, accumulation of profits; high wages are an impediment to rapid recovery.

Thus the main problem of capitalist policy since the war is how to increase the surplus-value by depressing the standard of life of the workers. Automatically this happens already by the steady rise of prices, a consequence of the continuous issue of paper money under scarcity of goods. So the workers have to fight ever again for increase of the nominal wages, have ever again to strike, without attaining more than that the wages slowly, at a distance, follow the increasing cost of living. Still there may be a willingness among individual employers -- in view of the shortness of labor power -- to pay more than the contracted scale of wages; so the State intervenes in the interest of the entire capitalist class. First by means of the institute of mediators. These state-appointed mediators, formerly designated to arbitrate in case of wage disputes, now have the function of imposing standard wages, maximum wages not to be surpassed by any employer. It now happens that in a strike the employer is willing to pay more wages, but the State forbids it. Or the government proclaims a general wage-pegging which, in view of the rising prices, means a continuous lowering of life standard. Thus the strike against individual employers or employers' unions becomes meaningless; each strike is directed and must be directed consciously against State power.

Trade unions, too, now acquire a new function. They are directly interposed as officially recognized institutions that negotiate and make treaties, in the name of the workers, with the governmental and capitalist bodies. Government gives legal sanction to the decisions of the union; this means that the workers are bound morally and legally to the contracts made by the union leaders considered as their representatives. Formerly it was the workers themselves who in their assemblies had to decide on the new working conditions; they could, by their vote, accept and reject them. Now this semblance of independence, of at least formal free decision in bargaining, is taken from them. What the union leaders in conference with government and capitalists arrange and agree upon, is considered law for the workers; they are not asked, and should they refuse, all the moral and organisational power of the union is used to force them into obedience. It is clear that unions as formally self-ruling organizations of the workers with chosen leaders are far more apt to impose the new bad working conditions than would be any power institute of the State. Thus the trade unions are made part of the power apparatus dominating the working class. The union is the salesman of the labor power of the workers, and in bargaining in conference with the State officials sells it to the employers.

This does not mean, of course, that now the unions and their leaders in every case consent to the capitalist demands. Thereby their authority would soon break down, as is actually the case to a certain degree now. Their attitude, moreover, often depends on political considerations, whether they stand entirely at the side of the Government, as in England, or are hostile against the Government, as in France. The trade union leaders in France, belonging to the C.P., hence agents of the Russian rulers, have not the least interest now to sustain the French capitalist class and its government, as they did some years ago when they took part in government themselves and stood hostile against the workers' strikes. Thus the fight of the workers against impoverishment is used by the political parties as a subordinate means in the struggle between the Western system of private capitalism and the Russian system of state capitalism.

The problem facing European capitalism, however, has a still wider scope. It is not only a matter of wages; it is the question whether, after this breakdown of the economic system, the working masses are willing to rebuild it. Capitalism knows that "labor only can save us." Hard work and low wages are the conditions for recovery. Will the workers, who remember the hard life under capitalist exploitation before the war, consent to a still harder life in order to restore that state of things ? They may, if they can be convinced that it is for a better world that they now exert themselves, for a world of freedom for their class, for socialism. Socialism is the magic word able to transform sullen rebels into ready co-operators.

In broad layers of the middle class the conviction awoke that socialism, in one way or another, was needed for recovery; in most countries socialist ministers took office, socialist and communist parties dominated the parliaments. In England the slogan read : "Labor only can save us"; a large combined middle class and workers' vote gave an overwhelming majority to the Labor Party that in former governments had shown its capitalist reliability. Where a downright capitalist government would have been unable to suppress forcibly the resistance of the workers and to enforce the new hard living conditions upon them, a Labor Government was the only escape.

England, indeed, was in a critical condition. The second world war had exhausted its capital of foreign investments, the interest of which formerly directed a stream of unpaid consumption goods into the country. Uncle Shylock had given his generous aid only after his hard-pressed Ally had delivered most of its assets -- notwithstanding the fact that the war essentially had served to destroy America's most dangerous rival to world domination, a Germany disposing of the resources of the entire European continent. England had to give up a large part of its colonies, it could hardly bear the expenses of playing the part of a Big Power any longer. Also we see the English bourgeoisie lose its old self-reliant feeling of confidence; its foreign policy, e.g., in the Near East, shows signs of diffidence. The privileged position formerly occupied by the British working class, having its share in England's exploitation of the world, had gone. Now the Labor Party faced the task of clearing the bankrupt estate.

Socialism, however, was not to be simply make-believe. A good dose of Socialism was really needed to restore capitalism. Some of the basic industries of capitalist production, as coal mining and railway traffic, as a consequence of private ownership encumbered with an entirely antiquated lack of organisation, constituted a ridiculous muddle of inefficiency. To a well-developed capitalist production good organisation of such basic branches as coal, steel, traffic, is just as necessary as that of post and telegraph; so nationalization is a capitalist necessity, to which the name socialisation is given. Though there is nothing revolutionary in it former governments were too full of respect for private enterprise to satisfy those general needs; a "socialist" Labor Government was needed to establish capitalist efficiency. When now the miners complain that they find no difference in treatment between the former mine owners and the new Coal Board they have to consider that the reform was not made for them, but for capitalism. It was not an attack on capitalist property; the coal mine shares -- of doubtful quality -- were replaced by Government Bonds; this manipulation has in no way lessened the exploitation of the workers.

The State has to assume functions in the production apparatus that formerly were the domain of private enterprise. This does not yet mean state-capitalism, as in Russia, but only state-directed capitalism, somewhat as it was in Nazi-Germany. And there are more points of resemblance. Capital is scarce in post-war Europe, as it was in Germany after the first war. The strictest economy is necessary. No more than under German fascism can it now be left to the free will of the capitalist class to spill the available national capital by importing luxuries or materials for the production of luxuries. To rebuild the production apparatus of the country Government has to take in hand the control and command of all imports and exports, of all transport of values across the frontiers. International trade then cannot be left to private merchants; the governments negotiate trade pacts, often strictly bilateral, on quantities comprising the bulk of food supplies and the industrial produce of the entire country. What Nazi-Germany introduced as the new totalitarian system of trade is now imitated by all the European States, an emergency measure here, just as it was there. But the character of the emergency is different; there it was to spare forces for a new assault toward world conquest, to prepare for world war; here it is to stave off starvation and revolution, a result of world war. Every government has to import foodstuffs from abroad -- grain production in Europe by deterioration of the soil and lack of hands having diminished to only half or two-thirds of its prewar amount -- lest the hungry population should revolt and bring the C.P. into power. But they must be paid by the export of industrial products withheld from their own people; or by loans from America, tying Western Europe with the bonds of debt slavery to the master of the world's gold.

So the State has a far greater power now than before. It is the consequence of war destruction. This does not mean, however, that it is a temporary abnormal state of things. Nobody believes that hereafter old private capitalism can return. The increasing size of enterprises, the interconnection of world economy, the concentration of capital demand planning and organisation; though now and then it needs catastrophes to enforce these tendencies. These post-war conditions form a transition, an introduction to a new world, the world of planned capitalism. The State rises as a mighty power above society. It dominates and regulates economic life, it directs planned production, it distributes food and other life necessities according to its judgment of primary needs, it distributes the surplus-value produced by the workers among the owners of capital; it directs more or less even the spiritual food, having distributive power over the paper needed for the printing of books. In its organization the political parties are its bickering office-of-publicity holders, and the trade unions are part of its bureaucracy. And, most important, the totalitarian State incorporates the working masses into its social organisation as the obedient producers of value and surplus-value. This is performed by calling planned capitalism by the name of socialism.

This is not simply usurpation of a name. A simple word, a deceitful name, has no such power. The name is the expression of a reality. Socialism was the watchword of the suffering and fighting workers in the past century, the message of their liberation, the magic word occupying their hearts and heads. They did not see that it meant only an imperfect liberation, the rule of their leaders as new masters, disposing over production apparatus and product. Socialism was the program of the leaders and politicians they sent into the parliaments there to fight capitalism and exploitation. The goal of socialism, after the conquest of State power, was the organisation of production, planned economy, transferring the productive apparatus into the hands of the community, represented by the State. Now that in the 20th century capitalism in emergency needs planned economy, direction and organization of production through State power, the old slogan of the workers just fits in with the new needs of capitalism. What had been the expression of their modest hopes for liberation becomes the instrument of their ready submission under stronger slavery. All the traditions of former aspirations, sacrifices, and heroic struggles, binding socialist workers to their creed and their party and condensed in the name socialism, now act as fetters laming resistance against the growing power of the new capitalism. Instead of clearly seeing the situation and resisting, blindfolded by the dear traditional slogans, they go into the new slavery.

This socialism is for Europe; it is not for America, nor for Russia. It is born in Europe, it has to save capitalist Europe. Why did Europe succumb into such utter powerlessness ? It has outside Russia, 400 millions of people, more than the U.S.A. and the U.S.S.R. together, it is rich in raw materials for industry, rich in fertile land; it had a highly developed industry and a well-instructed population disposing of an abundance of capital. Why, then, such a lack of capitalist power ? Because Europe is divided up in a dozen nationalities, speaking several dozens of languages, and so is driven by fierce centuries-old antagonisms and national hatreds. At the rise of capitalism these nations were the right size for economic units; now that capitalist efficiency needs larger units, of continent size, Europe is at a disadvantage against the new powers America and Russia. Its inner inextinguishable enmities and wars called in those mightier rivals who trampled it down, physically and economically. What at the end of the Middle Ages happened to the Italian towns, which had been the birthplaces of burgher power and early capitalism, but which, torn by their mutual feuds and hatreds, could not establish a larger national unity, and so were, as battlefield, trampled by the French and the Spanish armies and subjected to mightier foreign powers -- now happened to Europe on a larger scale. European capitalism is now the victim of that nationalism that once was its force. When after the first world war President Wilson, as the arbiter of Europe, proclaimed the principle of national self-determination this was the very means to keep Europe powerless, divided up into a host of independent, mutually fighting parts. It is quite natural that now socialist politicians propagate the idea of one consolidated socialist Europe; but they are too late; Europe is being partitioned already into an Eastern and a Western block. The idea itself of trying to make socialist Europe a third world power bridling the aggression of the others, belongs to the realm of middle class ideology that sees only contending nations, of continent size now; this ideology means the salvation of European capitalism.

Looking from a general point of view we may say that the development of the productive forces of society renders inevitable their social organization into one well-planned entirety. It may take place in two different ways. One is the way of capital, making State power the directing power of the production, making managers appointed from above the commanders of labor. It leads to totalitarianism in different degrees, the State extending its regulative power over ever more realms of human and social life. It leads to dictatorship, more or less camouflaged by parliamentary or sham democratic form. Such dictatorship does not necessarily assume the brutal forms we have seen in Germany and Russia, with an all-powerful secret police keeping all classes in its cruel grip. For the working class the difference between Western democratic and Eastern dictatorial forms of Government is not essential, economically; in both it is subjected to exploitation by a ruling class of officials that commands production and distributes the produce. And to stand over against the State as the all-powerful master of the production apparatus, means loss of a good deal of that limited amount of free action by which it could formerly resist the demands of capital.

The other way is the way of the working class, seizing social power and mastery over the production apparatus.



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