Marxist Theory II and III ~Capitalism and the Labor Process~ ~History and Class Struggle~ February 1, 2012 Instructor: Sarah Whetstone Social Theory 2012 Blog CHANGE YOUR USERNAME to first and last name BEFORE YOU POST AN entry- INSTRUCTIONS ON THE BLOG! FOR This week: If you posted a reflection essay-for-credit on a canceled reading, it still counts! you are permitted to write reflections FOR Marx I or II readings after class and still get credit. – must be posted By end of day, Friday Feb. 3rd for credit. 2 Three Periods of Marxist Thought Philosophical Materialist perspective of social reality; Alienation as fundamental human experience in capitalist systems The German Ideology (1844) Economic & Philosophic Manuscripts (1844) Political Class struggle as driver of social change; Marxist vision for socialist utopia Manifesto of the Communist Party (1848) Eighteenth Brumaire of Louis Bonaparte (1852) Economic How capitalism works to exploits workers; Competition, labor theory of value, commodification, fetishism, etc. “Wage Labor and Capital” “Classes” 3 SUPERSTRUCTURE Historical Materialism… Marx turns Hegel on his head! MATERIAL REALITY BASE politics, love, social relationships, family, religion, ideas, culture -Hegel: The development of ideas and knowledge drive historical change (economic, social, political) -Marx: Changes in the economic bases of society drive all other changes (social, political, production of knowledge) 4 Base-Superstructure: Capitalist Ideologies Choosing to Marry for Love Democratic Liberties Religious Freedom Belief MeritocracyAmerican Dream Consumer Freedoms to Buy We are self-interested actors. Economic Relations in Free Market Capitalism 5 Love in Capitalism: “Shopping” for Love Commodification of Love and Relationships Commodification of Romance 6 “Shopping” in the Pharmaceutical Industry 7 POP QUIZ: Alienation! According to Marx & Engels, how does capitalism alienate workers from their species-being? a) It allows workers to fulfill their creative human potential. b) It creates a culture of mutual exploitation. c) It encourages humans to act out biological drives to compete for survival. d) It’s the first economic system to create class struggles. 8 Capitalism and the Labor Process “Wage-Labour and Capital” – Karl Marx • Key Concepts – – – – – – – – – Wage Labor theory of value Commodity Competition: between capitalists and between workers Cost of production Real wages Relative wages Surplus Value Exploitation 9 Commodities everything is for sale…even labor power com·mod·i·ty – noun. 1. A thing that exists “outside of us” that we exchange for something we want or need. 2. Something with use-value and exchange-value. = = protect your feet when walking = USE VALUE $65 or 20 = (0f little use to the capitalist) = EXCHANGE VALUE (potential profits for the capitalist) 10 Cost of Production Wage, Labor and Capital • What is a wage? How is it derived? – In capitalism work/labor is a commodity, it is exchanged – Wage = sustenance cost for the worker’s labor – But the value of work vs the value derived from the work are not the same • • The labor market is not the same as the market of goods Workers sells her labor to survive– her labor becomes a commodity – Capitalists sell the goods produced by the worker, makes profit and re-invests • Exchange value of labor product – wage paid for work = surplus value (profit) that goes to the capitalist • Capitalist pays labor sustenance costs, and extracts value from worker to produce more value, in a process of exploitation. 11 Creation and Extraction of Surplus Value Cost of Production Raw material machinery plus human labor product of labor Commodities Exchange value of labor product (price) = 2X Creation of Surplus Value - profit Exchange value of labor (wages, or what it takes to survive) = X Cost of Production Decreases MORE SURPLUS VALUE Raw material faster, more efficient machinery plus greater division of human labor cheaper goods Widening Gap of Class Inequality! 12 pg 128 Further as the division of labor increases, labor is simplified. The special skill of the worker becomes worthless. He becomes transformed into a simple, monotonous productive force that does not have to use intense bodily or intellectual faculties. His labor becomes a labor that anyone can perform. Hence, competitors crowd upon him on all sides, and besides we remind the reader that the more simple and easily learned the labor is, the lower the cost of production needed to master it, the lower do wages sink, for, like the price of every other commodity, they are determined for by the cost of production. 13 The puzzle of surplus: The labor necessary to make the commodity Money required to make the commodity M = C = M’ Money made from the sale of the commodity always greater By somehow getting more out 14 of the commodity than he paid for… From “Wage-Labour and Capital”… Even the most favourable situation for the working class, the most rapid possible growth of capital, however much it may improve the material existence of the worker, does not remove the antagonism between his interests and the interests of the bourgeoisie… Profit and wages remain as before in inverse proportion… The material position of the worker has improved, but at the cost of his social position. The social gulf that divides him from the capitalist has widened.” (pg. 126-127). 15 What Happens? – Capitalism is dependent on individuals craving more and more for products • Capitalists can only generate more profit (and surviving) by expanding markets and selling more and more – Commodification of social life: More and more of social life (our institutions, desires and feelings) becomes commodified: packaged and sold in the marketplace for profit – More Alienation!!! 16 The Contradictions of Capitalism • Interests of Bourgeoisie and Proletariat are “one in the same,” yet fundamentally opposed • The accumulation and expansion of capital necessarily leads to systemic poverty and widening inequality – Relative v real wages • As working-class grows more miserable, capitalism plants the seeds of its own undoing: class revolution! 17 18 19 PBS: Land of the Free, Home of the Poor http://www.youtube.com/watch?v=YZ2zE4e1 HjI 20 Communist Manifesto • Manifesto of Communist Party aimed at both explanation (theory) & emancipation (action) – Scholar Activist KEY CONCEPTS: • • • • • History is the history of class struggle Bourgeoisie as a revolutionary class? Proletariat as the “real revolutionary class” Global spread of capitalism Capitalists dig their own graves 21 Marxist theory of historical materialism 22 mode of production relations of production means of production Capitalism creates a class-based society… 24 POP QUIZ: Class Revolution What does Marx mean when he says that the proletarians must move from a “class in itself” to a “class for itself?” a) The working class must abandon class politics to focus on extending universal democratic rights. b) The working class must find ways for technology to reduce their labor time. c) The working class must develop a class consciousness and join a common movement. d) The working class must strive to become part of the bourgeoisie through the dedication of hard work. 25 internal antagonism growing alienation class in itself 0rganize & unionize Power of bourgeoisie weakens class consciousness develops workers understand their interests class for itself revolution! …classless communism A nd it nev er w ent Why the working class is the true revolutionary class…. th ey u n d erstan d th e w o rk in gs o f capitalism p e tit-b o u rg e o isie b o u rg e o isie b u t are b lin d ed to th e to tality b y th eir in te re sts hat w ay again Credit T. Gowan lefto vers fro m feu d alism , th ey o n ly see th e sy m pto m s o f capitalism , n o t th e fu n d am en tals w o rk in g c la ss - th e o n ly class capab le o f seein g th e to tality . A b stracted , alien ated , to rn fro m n atu re, w ith n o th in g to lo se an d n o illu sio n s o f estate left. p e a sa n ts * 27 Marx’s Communist Vision • The theory of the Communists [is] the abolition of [bourgeois] private property. • “Communism deprives no man of the power to appropriate the products of society; all that it does is deprive him of the power to subjugate the labor or others by means of such appropriation.” • “In place of the old bourgeois society, with its classes and class antagonisms, we shall have an association, in which the free development of each is the condition for the free development of all.” • Communism opens up the realm of freedom- Instead of the forced division of labour, in communism we would work together in a way which leaves room for creativity. Work is not just about survival, but is about what we really want to do: “that development of human energy which is an end in itself.” 28 GROUP ACTIVITY: COMMUNIST MANIFESTO Go through each policy and how Marx and Engels justify it. Choose volunteers to speak for the group– someone to explain each policy and justify it – and a different person to also develop Smith’s critique. You should all participate, but choose one group writer to turn in your ideas at the end of class– Label your group worksheet with all group members’ first and last names. You can incorporate phrases from the original, but surround the quotes with your own language making it nice and clear to a contemporary audience. Communist Program: Your policies to explain and justify! 1. Abolition of private property ("Bourgois property") (105-106) 2. Abolition of individuality and freedom (106-107) 3. Abolition of class culture (107) 4. Abolition of the "bourgeois" family and the institution of marriage (108) 5. Abolition of countries and nationality (108-9) 6. The "most radical rupture with traditional ideas" (109-110) And then: 1. Develop Adam Smith’s Critique of the same policy– What would Smith have to say about the Communist Program? 29 Scholar-Activistism and the Role of Sociology: Discuss in Groups • What is the role of sociology as a science, according to Marx? • What about the role of the sociologist? What should sociologists be studying? Do they have a responsibility to do anything beyond making reports? What would Marx say, and what do you think? 30