Escape from capitalism?
On 13 February Krishnan Guru-Murthy interviewed Clara Mattei for Channel 4 News to discuss her book Escape from Capitalism: An Intervention which later circulated as a podcast.
In the interview Mattei argued that people are taught that capitalism is an economic system that arose spontaneously out of humans’ supposed natural propensity to barter, but in fact it is of relatively recent historical origin and was brought into being through violence and coercion. The state forced people off the land who, no longer able to meet their needs from directly working land, had no alternative but to work for wages.
Wage-labour, said Mattei, with workers creating more value than what they are paid as wages, is one of the two basic features of capitalism. The other is what she called ‘private investment’ for profit controlled by and for a privileged few; nothing is produced except in the expectation of ending up with more money than invested at the beginning. This means that ‘austerity’, in the sense of restricting how much people as wage-workers get to consume, is a structural feature of capitalism; it is not merely a policy pursued by some governments or the system not working properly but is the basis of the system. The logic of profit required that workers be denied direct access to what they need to live so obliging them to sell their ability to work for money to buy it; the money they are paid was never going to be enough to enable them to live without having to continue working for wages. Austerity, she concluded, was necessary for the system.
Good stuff. Questioned by Guru-Murthy, Mattei agreed that she was in the ‘Marxian tradition’ (she seemed to have deliberately used this adjective rather than Marxist, which is fair enough). What she particularly liked was Marx’s criticism of earlier writers who thought that capitalism was the natural economic system for humans; wage-labour and production for profit were parts of a system constructed by humans and so could be replaced by human action.
How, then, did she propose that people escape from capitalism? As well as being a professor of economics at Tulsa University in Oklahama, she is also the director of its ‘Forum for Real Economic Emancipation’. Here, she explained, she is running a pilot project to test on the ground an alternative. This involved encouraging people to take part in collective decision-making on economic matters, along the lines of ‘participatory budgeting’ practised in a number of cities in Brazil. Under this the local population are involved in deciding how money raised through local taxes should be spent. The implication is that in an alternative society to capitalism all economic decisions would be taken in this way, including in workplaces.
This brings out the ambiguity of the term she used to describe the second basic feature of capitalism, ‘private investment’. This could suggest that what is wrong with investment (as money used to initiate production) is not that it is money invested in production with a view to making more money but that it is controlled by a few at the top rather than democratically by all involved. What she seems to have in mind are factory councils as envisaged at one time by Gramsci (who she name-checks) and assemblies; these should decide democratically how the money obtained from sales should be allocated between individual workers, social amenities and new investment. In other words, a form of what has been called ‘market socialism’.
However, this wouldn’t be an escape from the logic of profit; it would mean that this logic would be applied by workers themselves rather than by their bosses as now. Escaping from capitalism has to mean escape from production for the market and the economic pressures this exerts on whoever actually takes the decisions at workplace level.
ALB