Monopoly Capital Blocks Rational Policy of Wage-led Growth

What lesson might the working classes of the global North take from what's happening in China? Canadian journalist Paul Jay spells it out in plain English.

Paul Jay: So we've been talking about macroeconomic policy, the G-20, austerity. And there was one little line in the G-20 document I thought was interesting, and it's sort of buried in amongst everything. It said countries could facilitate wages going up proportional to productivity, which is rather interesting, 'cause it's the only time I've ever heard it even mentioned by these guys. There's quite a big section about how wages need to go up in China. There they understand the need for increasing demand. And we've heard President Obama say, we can't be the consumer engine of the world anymore, you guys have to do it, looking at China. And they talk about increasing the social safety net in China. They even talk about allowing strike struggles in China so wages can go up, but they sure don't talk about it when it comes to their own places. . . . So the problem is -- and this is where it becomes a political problem. I mean, it's not that difficult to sit down and kind of envision a rational solution to all of this -- you just can't pass it anywhere. The way that the politics is controlled and the small gang of people that actually own the commanding heights of the economy, starting with the banks, they don't allow any of this to actually get passed, so you get to an impasse. You can talk rational visions, but you can't execute on it.

The lesson given by Jay is a Kaleckian one, one of the most important lessons, especially today, as we struggle against the drive to austerity in the North. First of all, make clear what obstacle needs to be removed if the rational alternative is to be implemented.

To that Kaleckian lesson, however, we want to add a Gorzian one, especially in the United States: take productivity gains more in the form of gains in disposable time than in the form of more consumption. That's our socialist ticket out of crisis, economic and environmental.

Minimum transitional demands: retirement at 50 with full benefits; free education and social wages for students (all the way up to doctoral degrees for those who want them); paid parental leaves (six years for each new child); two months of paid vacations per year at minimum; indefinite unemployment benefits (to last till the ruling classes come up with worthy jobs at worthy wages for the unemployed).

Separation of Religion and Science: US behind Iran

"Teach Evolution, Learn Science: We're ahead of Turkey, But behind Iran," according to Gerald Weissmann. Mollas are a dime a dozen in the world today, but Iran's mollas aren't just any mollas -- they are animal-cloning, robot-building, satellite-launching, stem-cell-researching, uranium-enriching mollas.

That is why there is no quick military solution for the empire comparable to Israel's attack on the Osirak reactor in Iraq and Israel's bombing of what is said to be a nuclear facility in Syria. Iran has succeeded in the tasks of both mass education and higher education, building a deeper and broader base of scientific and technological human capital than in any other country in the region except Israel. That means that Iran can rebuild what gets destroyed.

Given its rate of scientific production, as reported in NewScientist, Iran may eventually catch up with Israel, too:

Scientific output has grown 11 times faster in Iran than the world average, faster than any other country. A survey of the number of scientific publications listed in the Web of Science database shows that growth in the Middle East -- mostly in Turkey and Iran -- is nearly four times faster than the world average.

Science-Metrix, a data-analysis company in Montreal, Canada, has published a detailed report (PDF) on "geopolitical shifts in knowledge creation" since 1980.

Is that a "threat" to Israel or the United States? Not if these two countries aren't run by people who are given to seeing the world as if it were the stage for a zero-sum game of power struggle. The question is if they are.

Two, Three, Many 1960s

Check out this beautiful article by an American woman: Chelsea Szendi Schieder, "Two, Three, Many 1960s" (MRZine, 15 June 2010). This is a very fair assessment, and moving commemoration, of the New Left in Japan and the global Sixties (maybe only a gaizin-san can be this fair to both the J New Left and the JCP -- the only thing missing in the article is a mention of Kanba Michiko's own writings, so I added links to those). This is 200% better than most of the articles about May 68 in France that came out in 2008. Anyhow, as you can see from the article, it's not easy establishing a republican state, is it, even -- or perhaps especially -- in the North? All sides of the Iranian nation and their leadership sometimes sound nutty, but, still and all, they are "people to be reckoned with," so very unlike the people running the show, and people who let them run it, in Japan, who are not even as interesting as the AKP!

Chickengate: The Left and Science and Technology

By now you've probably heard of the Chickengate in Bolivia.

There is a chance that the president of Bolivia was joking about hormones in chickens causing premature baldness, reproductive developmental disorders, and other disorders due to sex hormone imbalances. ABI reports that the president was speaking "at times in a joking tone" ("a momentos en tono de guasa").

But if it was a joke, it in any case completely overshadowed what little coverage of the Summit on Climate Change in Bolivia there was in the corporate media. Seeking to counter the media coup, a gay indigenous man on the Left bravely put out a video statement: "I am a proud indigenous man, and I am a proud gay man, and I'd like to thank President Evo Morales for his leadership . . . in behalf of all humanity . . . in behalf of protection of our Mother Earth."

Evo can't be a homophobe -- especially given the new Bolivian constitution promulgated by his government specifically prohibiting discrimination based on sexual orientation and gender identity for the first time in the history of Bolivia -- and the corporate media are wrong to try to pass him off as one.

However, the Chickengate in Bolivia does remind us that there is a tendency in considerable parts of the Left today to be too alarmist about science and technology, especially when it comes to food and energy. That basically leaves the people hanging in the scientific and political vacuum between the Apocalypticist Left and the Panglossian Right.

Fiscal Crisis of States

In the wake of the financial crisis of 2008, what next?  In the United States,¹ a "fiscal crisis" of states and municipalities, both real (masses of public-sector workers are getting laid off even now²) and imagined (bogus public pension liabilities stats used in right-wing propaganda to attack unions³).

Money is out there, though, if only we had a powerful coalition to tax the rich!

There's a very good pro-labor, anti-racist, Green rationale to prioritize this fight above all, since one of the sectors under attack is urban mass transportation, whose workers are often unionized and, as in many other sectors of civil service, are often non-white.  Needless to say, state and municipal public service is the most feminist thing in the United States, in terms of profiles of both workers and beneficiaries.

Leftists can't win everywhere pursuing this battle to tax the rich, but we can win here and there,⁴ which would help build more durable bases for future actions than anything else.  There's nothing like victories to build a Left!

Taxing the rich is also better financial reform than any "oversight" of finance that the Democrats come up with at the federal level.  The less money the rich have, the less money for their gambles.  The financial reform PR message here is to tax the rich and spend their money here, so they won't spend it to bid up, say, real estate prices in China or something like that.


1  In the eurozone, the fiscal crisis expresses itself as the euro core of Germany versus the euro periphery of PIIGS.  See Jayati Ghosh, Heiner Flassbeck, Joseph Halevi, Costas Lapavitsas, and Mark Weisbrot.

2  Dean Baker, "State and Local Governments Have Shed 72,000 Jobs since December," MRZine, 2 April 2010).

3  Nathan Newman, "No Crisis in Public Retirement Systems: Debunking the Hype and the Attacks on Employee Benefits" (MRZine, 17 April 2010).

4  Rick Wolff, "Oregon Counters Massachusetts" (MRZine, 27 January 2010).

Taliban and the Rights of Women

The dispute between Gita Sahgal and the "Human Rights for All" campaign on one hand and Moazzam Begg and Amnesty International on the other hand is a red herring, which is the reason why it has been "taken up with relish by Britain's self-styled 'decent left' of journalists and commentators, whose superior moral compasses led them to support the invasion of Iraq." All parties directly involved in the dispute profess that they are in favor of women's rights, though they may differ here and there on what exactly the said rights consist of.

But the thing is that women's rights, or lack thereof, in Afghanistan cannot decide the most important questions that Westerners have to ask themselves: will the NATO quit Afghanistan, and, if yes, when?

Under NATO, women's rights will be protected only to the extent that they don't conflict with the military logics of the parties in combat. After NATO's withdrawal, women's rights will be protected only to the extent that the parties governing post-NATO Afghan territories respect them. That probably means that Afghan women will enjoy only such rights as granted by allies of Iran-Russia-India in one part of Afghanistan and Taliban-Pakistan in another part of Afghanistan -- for decades to come.

In either case, with or without NATO, it is not possible for Sahgals, Beggs, or human rights organizations of the West to make the level of women's rights higher than it is given the prevailing objective and subjective conditions of Afghan society. It would help speed up the NATO departure once Western activists admit their inability to make a difference for Afghan women for such a realistic admission would help the Western public concentrate on the only questions on which they have at least some say.

Jacobinism with Islamic Characteristics

The best way to understand the Islamic Republic of Iran is to see it not as "theocracy" but as "Jacobinism with Islamic Characteristics."

The power elite of Iran don't care about Islam as such (Islam, after all, is diverse, and some varieties of it, as conceived by Nader Hashemi, Mohsen Kadivar, Ahmad Sadri, and the like, are perfectly compatible with liberal democracy). What they care about is their revolution and their republic and their ideology (in which Islam does play a part but an increasingly smaller one). As IRGC General Mohammad Ali Jafari reportedly said:

حفظ نظام جمهوری اسلامی ایران از ادای نماز واجب‌تر است

They love their politico-economic order much more than prayers.

Unlike the USSR and the Eastern Bloc, whose legitimating ideology came from outside (Western Europe) and was instilled from above (the Marxist-Leninist Party), though, their ideology is one that has organically grown out of Iranian history, which is what is going for them.

My back-of-the-napkin calculation, however, says that about 20% of the Iranian population, largely of economically upper strata, are liberals who are tired of this politico-economic order and its legitimating ideology. Give Iran a couple of decades in which its social dialectic can unfold without foreign intervention, and liberals are likely to grow more numerous in the country as it undergoes its capitalist development; and liberals inside Iran might eventually transform the country in a way that liberals outside it would like, through passive revolution (much as the AKP has done in Turkey, which too was once ruled by men of the Jacobin mentalité).

Meanwhile, the duty of Iranian patriots, even liberals in exile, is not to let imperialists bomb Iran.

Sex, Drugs, Islam, Communism, and Terrorism

How does the ruling class destroy liberty, often in the name of liberalism, today? By exploiting fear, especially specters of Sex, Drugs, Islam, Communism, and Terrorism. The ruling class defines each of these categories in such a way that each becomes a mixed bag of defensible and indefensible. To take just one example, in the category of terrorism, class justice and propaganda of the Western powers insidiously merges together national liberation movements such as the Popular Front for the Liberation of Palestine (defensible) and Al Qaeda (indefensible).

The Iranian Diaspora after the Green Wave

So, what is the new preoccupation of the Iranian diaspora after the Green Wave? Having received 170 comments (and counting), this item posted on International Working Women's Day is the most popular thing today at Iranian.com.

IRIB in Japanese

A funny thing about the Islamic Republic of Iran Broadcasting (IRIB) is that, of all its numerous foreign-language versions, it provides Iranian food recipes, tourist information, a detailed introduction to master musicians of Iran, elementary Persian-language lessons, etc. only on its Japanese-language site. They know my people, whose main interests generally run toward good food, sightseeing, and cultural sampling (usually in that order)!

Hassan Nasrallah: Israel Is at an Impasse

Iran: The Islamic Revolution Defeats Western Hopes for Regime Change

. . . and Hashemi's hopes for a palace coup.

Iran Celebrates the 31st Anniversary of
the Islamic Revolution

Green Wave^* Ebbs

Isfahan	Tehran

Having defeated the Western hopes for regime change and the endogenous upper-class hopes for a palace coup, Salomes of Iran will have a better chance to fight for freedom.

سبز شدیم در این خاک از سالومه

*   For the social and political character of the Green Wave, consult Iran's Last Marxist Nasser Zarafshan: Setareh Derakhshesh, "Interview with Dr. Nasser Zarafshan and Farrokh Negahdar" (VOA Persian, 6 January 2010).

Alistair Hulett

Scottish singer and socialist Alistair Hulett died yesterday. He was only 59 years old.

It's about Time

Despite all the activism and writing about Copenhagen, few are putting shorter work hours (i.e., consuming productivity gains in the form of more leisure than commodified goods and services) on the environmental agenda. Why?

Peter W. Galbraith vs Hamid Karzai

Apparently, Karzai didn't promise Galbraith as good a deal as the Iraqi Kurdish leaders: "Mr. Eide, who is set to leave his job as head of the United Nations mission in Afghanistan by early next year, said Mr. Galbraith's departure from Afghanistan in early September came immediately after he rejected what he described as Mr. Galbraith's proposal to replace Mr. Karzai and install a more Western-friendly figure" (James Glanz and Richard A. Oppel, Jr., "U.N. Officials Say American Offered Plan to Replace Karzai," New York Times, 17 December 2009).

A New John Brown?

"If a new John Brown arose today -- fundamentalist, patriarchal, and yet devoted to the cause of racial equality, or anti-imperialism, environmentalism, or some other good cause -- and moreover employed "direct action" (which would be naturally called "terrorism") to advance the cause, how many leftists would hail him as a hero? Would he not be scorned on account of his less than enlightened views about women, homosexuals, and so on?" -- Suleman Sheikh

Looking for the Boss

Ever since I began working for Monthly Review, I've had a number of opportunities to see leftists display an attitude that one wouldn't expect from those who profess to stand for freedom, democracy, and the socialist way. The attitude in question basically is one of "I'm gonna complain to the boss if I don't see an employee jump when I tell her to." Today I had it spelled out by one such self-identified leftist, who wrote me: "Please also provide me with the contact details of your supervisor / line manager."

What It Takes to Make Keynes Work

John Ross wrote in the Guardian ("No Secrets to China's Success," 18 August 2009):

Keynes noted in the final chapter of his General Theory, in a point highly relevant to a situation where mass unemployment is again soaring, that "a somewhat comprehensive socialisation of investment will prove the only means of securing an approximation to full employment".

That "somewhat comprehensive socialisation of investment" is impossible in a private sector-dominated economy. The decisive advantage China has in the present crisis is that it does not have to rely only on indirect means (reduction of interest rates, budget deficits etc) to attempt to reverse the plunging investment that is the driving force of this as with every major recession. China can use its large state-owned company sector to increase investment and instruct its state-owned banks to lend. That is why its economy is growing, while Alistair Darling is still pleading ineffectually for UK banks to increase their lending and while UK investment in housing and transport is plunging by 30% and more.

A good point.

The thing about Keynes is that you can make Keynes work but not under a normal capitalist state in a normal capitalist market economy. It takes something like (1) China's one-party state or (2) war economy (of not capital-intensive wars like today's Afghanistan and Iraq wars but labor-intensive wars of total mobilization subordinating capital and labor alike to the state, like WW2) or (3) the working class so awesomely powerful that it might as well go ahead and do socialism instead of Keynes.

That's what typical Keynesians and typical anti-Keynesians (either of the Marxist or of the capitalist liquidationist kind) don't understand.

OutRage!ous Censorship of "Gay Imperialism"

The reader of Critical Montages has long been familiar with the problem of Islamophobia in general and its unfortunate manifestations on the (broadly defined) Left in particular in the age of the "war on terror." The reader is also well acquainted with queer variants of it, such as attempts at gay-washing of Israel. Left-wing criticisms of these phenomena, especially by queers of color themselves, are indispensable to our struggle to displace the hegemony of liberal imperialism.

One such queer-of-color criticism of "gay imperialism," a collection of essays titled Out of Place: Interrogating Silences in Queerness/Raciality, however, is being censored in Britain, apparently by Peter Tatchell of OutRage!, who evidently felt his sensationalist brand of activism and rhetoric ought to be above critical scrutiny and got the publisher of the book to take the book out of circulation. For more information about this OutRage!ous censorship, see:

• Johanna Rothe, "Out of Place, Out of Print: On the Censorship of the First Queerness/Raciality Collection in Britain" (MRZine, 15 October 2009)


• Aren Aizura, "Racism and the Censorship of 'Gay Imperialism'" (MRZine, 23 October 2009).


• Umut Erel and Christian Klesse, "Out of Place: Silencing Voices on Queerness/Raciality" (MRZine, 24 October 2009)

How can leftists beat this censorship? In addition to the actions recommended by Aren Aizura, I suggest a couple more, in the short term:

• Hold public forums to discuss the censorship of queer-of-color criticism of "gay imperialism."


• Open up your journals, classrooms, and so on (if you work in publishing, education, and related industries) to discussion of this problem.

In the long term, though, we need to work on creating a Queer Left, informed of Marxist Feminism, capable of discussing such questions as religion and sexuality in proper historical materialist fashion (i.e., supplying missing materialist foundations to Foucauldian critique of the dominant discourse on sexuality).

Notes on the Japanese Elections of 2009

Decades of increasing poverty, inequality, and insecurity, which created a powerful backlash against the ruling coalition of the Liberal Democratic Party and Komeito, finally put an end to Japan's de facto one-party state on 30 August 2009. But the backlash only benefited the social liberal Democratic Party of Japan, which increased its seats from 115 to 308 (the DPJ block now enjoys 322 seats, more than a two-thirds majority). The Communist Party and the Social Democratic Party barely hanged onto the same numbers of seats that they had before the elections: 9 for the CP^* and 7 for the SDP. On the face of it, it is not a debacle for the Left like those suffered by Communists in India and Italy in the most recent elections. But, one of the items on the DPJ agenda is a plan to eliminate 80 proportional representation seats, and it just so happens that all the Communist representatives are elected to proportional representation seats.

Why did the Japanese Left fail to advance? Take a look at this video of the 21 August 2009 press conference of JCP Chaiman Shii Kazuo (which comes with English translation), and you'll get a clue.

JCP criticisms of the DPJ agenda are to the point more often than not (which you can see in more detail in 「国民が主人公」の新しい日本を -- 日本共産党の総選挙政策), but those criticisms don't amount to a compelling vision of a new socialist society that the party should be presenting.

The strongest point of the JCP criticisms of the DPJ is that the DPJ will pay for its promise to expand the social safety net, including the formerly excluded, by increasing the taxes on working-class incomes, leveling down the existing structures of entitlements such as pensions toward the new social minimums, decreasing public works and public-sector jobs, and so on, the trade-off that the DPJ will make inevitable given its refusal to tax big businesses and capitalists and to cut military spending.

But, in the process of making this point, the JCP ends up defending the old, such as tax exemptions for dependent spouses (usually housewives), which have discouraged many a woman from seeking full-time jobs since wives earning only part-time incomes (roughly up to 1,300,000 yen) are counted as dependents for the purpose of calculating taxes, insurance and pension contributions and benefits, etc. What's good for working-class families in material terms can be bad for working-class women looking to enhance their gender-bargaining power vis-a-vis men, and the structures of the Japanese welfare state that tacitly assume male family wages, lifetime monogamous marriages, female spousal dependency, etc. are textbook cases of the common class-gender contradiction under capitalism. This contradiction is intensifying as more and more Japanese women are clearly losing interest in marriage and childbearing, powerfully demonstrating their sharp rejection of the old gender settlement and silently erecting a strong demographic obstacle to the old methods of restoring economic growth. The JCP, or any other left-wing current in Japan, needs to offer women -- and young people in general -- a new socialist vision that addresses women as individuals in their own right and creates new networks of social solidarity other than biological families, rather than a maternalist Keynesian vision in which women are tacitly assumed to be, or become, or have been wives and mothers.

The same goes for the JCP's defense of the Peace Constitution. On one hand, any constitutional revision that the DPJ will put on the agenda will likely be one that pushes Japan onto the course that Germany took in the process of the dissolution of Yugoslavia, embarking on humanitarian imperialist adventures of its own, not just as a subordinate member of the US-led coalition of the willing. On the other hand, there is nothing democratic, let alone socialist, about defending the constitution that the occupier wrote for Japan, on which the Japanese people have not been allowed to vote. Socialists must present a new democratic vision for Japan. Why not a constitutional assembly in Japan, to write a new constitution as a step toward 21st century socialism?


* The proportion of the total vote for the Communists, however, registered a slight decline, from 7.25% to 7.03%.