Saturday, May 14, 2016

Goes Around, Comes Around

1. It's that time of the capitalist cycle again; that time when the previous agreements of Greece with its creditors, previously categorized as (pick one or more) harsh, necessary, draconian, necessary, savage, necessary, painful, necessary, when all that was previously shoved down throats and up asses, when all the signatures on the big fat T.O.U. (They Owe Us) known as an MOU... all that junk has run past its "sell by" date, and needs to be replaced with new and more harsh, necessary, draconian, necessary, savage, necessary, painful, necessary junk.

It's that time when Greece faces another structural review, another progress assessment, another audit, another check-up from the Troika-- IMF, ECB, European Commission-- to see if anyone can find anything resembling a pulse, anything that might indicate there's another bag of blood to be drained from a body stone cold; from flesh freeze dried, petrified and dessicated.

Enough of a pulse, that is, to warrant releasing another tranche, another 3 or 4 billion euros to the same or different Greek government so that the same or different government might immediately return the money in what is a Zombie Apocalypse version of charades:
"You pretend there have been some significant steps taken to 'restructuring the economy,' and we pretend to loan you money."
"You pretend to lend me money, and I pretend to pay you  back." 
Back to back and belly to belly, the same or different Greek government keeps the beat with a clave made of human bone.

2. Like last time, and like the next time, there are those who have doubts about Greece's condition.  Is it living?  Dead?  If it's dead, is this a corpse?

GDP down 26% over 7 years, with another decline registered in 2015?  Yes, but "signs of growth are returning" report the underwriters in their junk prospectus.

Non-performing loans at 40% of total loans, with default rates for consumer loans at 50 per cent? "Bank recapitalization has been successfully completed."

Exports and investment continue to decline, in lock-step with decline in the European Union? "Exports and investment are the keys to recovery."

Unemployment rate at 25 percent, like last time and like next time?  "Labor market reforms are urgently needed"... so that it's easier for employers to lay-off workers.

"Structural reforms essential..." this time like last time like next time to reduce the portion of GDP absorbed by the government?  Sure, but as GDP declines precipitously because of the government programs to reach compliance with the MOUs, the portion of GDP attributable to the government increases, expands.

Thirty-six percent of those age 16 and younger living in poverty, or at imminent risk of falling into poverty?  Not the Troika's worry, this time, like it wasn't the Troika's worry last time, like it won't be the Troika's worry next time.

3. Unlike last time, that great mass of professional, professorial, and professing leftists have little enough to say this time about the great opportunity the Syriza government represents.  No unrepentant Marxists, or Lenin's tomb raiders are out there cheerleading:  "Give me a T;  Give me an S..."

Syriza has had its 7 months of fame..  Alex who?  What was that other guy's name--the guy with the motorcycle?  The game theorist?  Begins with a V...?

No telegrams of support and congratulations flooding into Athens from the Panitchs and Gindins of the world.

Here's the only telegram that did arrive-- "In this life, you're on your own..." and that one was a mis-delivery, intended for Prince's funeral.  Oh well, it fits.

Short-attention-span socialists of the world unite!  You have nothing to lose, literally.  Others do, but that's not your problem, this time, or next time...Let's go crazy!  Let's get nuts!

4. Dearly beloved, we are gathered here today... let's see we need something old-- that's easy, the Troika; we need something blue-- how about the Aegean?  That's blue and we can use it in our tourism campaigns... and we need something borrowed... don't even ask, everything is borrowed; and we need something new...  Hmmmmm.... whatever could that be?

Here's something new:  this time the IMF is indicating it might not participate in this MOU; it may refuse to commit to funding the agreement.  The IMF is arguing that the Troika must commit to debt relief for Greece that will reduce the size of the debt by 2018, before the due dates on the bonds funding the bailouts.

Wolfgang Schäuble (he's a Tweeter! follow him at clutched his heart, but fortunately, he came up empty.  Burning rubber, Wolf wheeled around, fixed the managing-director of IMF, Ms Christine Lagarde, in his sights and said, "Sie sind nicht mehr in Frankreich, Madame Lagarde."  

Herr Schäuble is of the old school, the school that knows that the really important thing is the pretense at paying the debt.  The sanctity of the debt may itself be a pretense, but it maintains its power only through demanding real sacrifice.  Capital may be fictitious or not, but money is the real thing and has to be repaid, even if the repayment is an illusion.  The motion is what's important; the motion of repayment, like a tic, like a compulsion,  is its own reason, its own meaning.

Madame Lagarde,  well schooled in France at Nanterre La Défense, seasoned as Minister of Industry and Commerce, Minister of Agriculture, Minister of Finance in the governments of Chirac and Sarkozy, and under indictment in France for her responsibility or irresponsibility in the handing over of €404 million in government money to Bernard Tapie, thinks that Greece's debt is unsustainable.

Unlike Syriza and its once upon a time make believe it's too difficult to leave the EU supporters.- Lagarde believes the debt has to be reduced before the bonds come due because of that unsustainability. Lagarde recognizes that waiting to adjust the debt load by means of extending maturities, or allowing a partial moratorium, at the time the instruments come due, risks an unstructured, catastrophic default of Greece on the entirety of the debt before their maturity.  It is not a risk associated with sufficient reward to warrant the play.

Unlike the Syriza government and its supporters Lagarde recognizes that if the debt is not sustainable then default is inevitable.  She also knows that an "unsupervised" default represents a far greater threat to the domination of capital than it does to the welfare of the Greek people, who really would be better off if the entire system simply collapsed.

Delay in devaluing this debt that cannot be sustained, that is "protected" specifically by not being trade-able, exchangeable, of value in secondary markets, means the when the instruments "mature" their zero value will be realized, and all at once.  The IMF, the ECB, and the German government are then in the position of being the "bad bank," holding the non-performing assets, and will be placed in circumstances no different than those that currently plague the commercial banks of the EU.

Maintaining the debt at unsustainable levels, requiring unachievable primary budget surpluses of the government, also jeopardizes the big prize in this circle of jerks-- and that is the so-called labor reform measures.  The Greek government will be debilitated to the point where it cannot effectively function to discipline the working class and implement the abolition of labor protections, the roll back of pension guarantees.  That threat to that "project" of the bourgeoisie goes well beyond the borders of Greece.  Failure to achieve "labor reforms" in Greece due to insistence of primary budget surpluses and accumulating reserves to overpay an overvalued debt threatens the future of capitalism everywhere in Europe.

The managing-director is bourgeois.  She's not stupid.

The simple, humane, reasonable solution is immediate repudiation of the debt, the MOUs, and the Syriza government.

May 14, 2016

Tuesday, April 19, 2016

Best Reasons Ever For Brexit!

The Financial Times April 18, 2016

Fears over British EU referendum hold back hiring and investment

 -Uncertainty chills business -Top London Property hit -European groups delay plans

Sarah Gordon-London
Uncertainty over the outcome of Britain's EU referendum is having a chilling effect on business activity, with companies pulling back on hiring and investment across sectors from real estate to recruitment.
The slowdown is hitting property prices at the high end of the London property market and hiring in financial service last month fell 21 percent against last year.
'[Brexit fears are] having a huge impact on general confidence,' said Lord Davies, a British businessman who chairs several private equity companies. 'What is scary for foreign direct investors and investors generally is the fear of the unknown.'
...French economy minister Emmanuel Macron yesterday said Britain would struggle to regain access to the EU's single market and would lose its negotiating power in talks to protect its ailing steel industry from Chinese rivals. {My note: that's pretty hilarious given Cameron's opposition to any protectionist measures}.
His comments followed a warning from German finance minister Wolfgang Schauble, who said Berlin would be a tough negotiator if the UK voted to leave the EU and there would be no easy trade deal between the two countries.
The London property market is already showing signs of a "Brexit effect,"....
Property prices across the UK are still at historic highs, but the growth in central London, traditionally a target of foreign investors, from French bankers to Russian oligarchs, has slowed sharply.
... The real estate arm of Union Investment, the German investment company, said it had delayed buying an office building in the City of London Because of the risk of Brexit.
Now how can anyone not want more of that? More chilling of business? More declines in London property prices? More delays to buying office buildings in the City? More discord and friction among the bourgeoisie of the UK, Germany, and France?  Bring it on, Brexiteers!

Reasons to be cheerful are........(part) three, right Ian?
1. Uncertainty chills business
2. Top London Property hit
3. European groups delay plans.

When's the last time any social movement in the UK had such a "chilling effect" on the European bourgeoisie? On real estate prices in the City? Probably not since 1973- 1974 when the miners/power workers strike pushed Heath out of office. Or maybe 1926.

This is the best news from Britain since Thatcher died.

April 19, 2016

Sunday, April 17, 2016

Time and Time Again

1. Moaning and praying like a drunk with his head in the toilet bowl, the US bourgeoisie in 2001 promised themselves, and their various gods, to never ever do that again-- that being the capital spending pub crawl/keg party they had been on since 1993.  It had been a hell of a party, with a tab running to 1.1 trillion dollars, (more than all the foreign directed investment that has been pumped into China in the last 25 years).

Shirts undone, jackets ripped, ties lost, pants wet with...well, whatever, the bourgeoisie pulled their heads up long enough to plead:
"Sweet Jesus, make it stop and we promise that not only will we never spend like that again; not only will we consume more capital than we replace; not only will we drive wages down; not only will we launch a cruise missile crusade against those enemies of Christendom,the Moslems; all of that plus we promise to never ever wear plaid pants on a golf course again!"
2. And for a short time, sober, twelve-stepping their way to Baghdad and points east, the bourgeoisie consumed their capital like there was no tomorrow, above the rate of replacement. Between 2001 and 2004, net property, plant, and equipment (PPE),  those productive assets with value yet to be transferred through production, declined six (6) percent.

But.....there's always tomorrow.  With enough of those, with enough time, with their lord busy, they thought, guiding those cruise missiles to Baghdad, and the golf carts at the Doral, the bourgeoisie went back to the bottle; that bottle which they can't ever get enough of until they've had too much.  "Hair of the dog that bit us," they laughed, as capital spending turned up.  Bit more than just the hair of that dog as it turns out-- by 2007 annual capital expenditures in US manufacturing exceeded the previous peak year, 2000.  And still the bottle wasn't quite empty as capital spending in 2008 rose another five percent. Sick drunk again, crashing to the floor again, this time the bourgeoisie pushed everyone and everything into the toilet bowl.

3. The bourgeoisie, once and forever drunken frat boys that they are, always forget the lesson they never learn.  They always forget that you know the racket's gone pear-shaped when some economist, or journalist, starts announcing:  "This time, it's different.  This time the business cycle has been conquered." 

Every time is different for the bourgeoisie but it's always the same because they are the bourgeoisie.  Deja-vu is the closest the bourgeoisie get to comprehension.

This time is the same, this time is different.  This time, in 2009,  the bourgeoisie slashed capital spending, like the last time, 2001.  Unlike that last time, however, the constraints on capital spending lasted only two years.  This time like the last time, a new peak in capital spending was reached.  Unlike the last time, the new peak was reached in only five years.

This time, like the last time, net PPE declined.  Unlike the last time, the decline lasted only a single year.  This time net PPE has continued to accumulate so that by 2015 it was 23 percent above its previous peak.

4. That, the net PPE, is a lot of weight to be carried by labor-power, particularly as the labor-power declines disproportionately to the capital applied to the production process.  Then the production process and the value-process, the valorization process, of adding increments of additional value, contradict each other.

Like the last time, like the last recovery, this recovery has been based on driving production worker wages down from previous highs.  Last time, the recovery meant driving production worker wages back from the year 2000 high. This time it has meant driving the wages back from the 2007 high (which itself was still below the 2000 peak).

Like the last recovery, this recovery is driven by the reduction in number of workers in production, and the mass of production workers' hours utilized to animate the capital accumulated in the net PPE.

Like the last recovery, this recovery has not reversed  this burden on labor power; has not driven increases in production hours, the number of production workers, or the mass of production worker wages.  Between 2000 and 2014, the number of production workers, and production worker hours have declined 33 percent.  The sum paid out in wages has declined 4 percent.

This "recovery," the one since 2009, adorned with record profits, is a recovery boosted by extra increments of surplus value extracted from fewer workers, a lower wage bill.  It is limited by, and running itself into exhaustion by reduced production hours.

In 2014, production worker hours were only 7 percent above the low point of 2009.   This is the signature of a system where the distinction between recession and recovery has all but disappeared. 

The reduced production hours are both product and producer of a system where proportionately smaller increments of new value are embodied in the mass of commodities.  Capitalism moves around an axis where commodities, as values, are more difficult to produce because of the ease with which useful objects can be produced.

5.  Like last time, this time the problem is that the value-process and the production process are in opposition.  The opposition cannot be resolved by capital.  The opposition is capital in its full development.  The bourgeoisie cannot liquidate the value relations embedded in the means of accumulation without liquidating the physical existence of the means of accumulation.  Failed states, war without end, austerity now and forever, the permanent refugee economy-- pulverizing human labor power, and the human existence that surrounds, it by unleashing social movements of thugs, goons, arsonists, realtors, scam artists, all nostalgic for a glory that never was and the misery that always is, that's the bright shiny future for the bourgeoisie.

For everyone else, the way ahead begins with the liquidation of that class and its property.

S. Artesian
April 17, 2016

Sunday, March 27, 2016

Ambiguities of Surplus Value

1. In his critical inquiries into the accumulation of capital, Marx awards "pride of place" to the extraction of relative surplus value; surplus-value which is extracted by reducing that portion of the overall working period devoted to the laborers producing a value equivalent to their own wages.  He writes in Capital, Volume 1, Chapter 16:

The production of absolute surplus-value turns exclusively upon the length of the working-day; the production of relative surplus-value, revolutionises out and out the technical processes of labour, and the composition of society. It therefore presupposes a specific mode, the capitalist mode of production, a mode which, along with its methods, means, and conditions, arises and develops itself spontaneously on the foundation afforded by the formal subjection of labour to capital. In the course of this development, the formal subjection is replaced by the real subjection of labour to capital.
To be sure, Marx understands that each "type" of surplus value, absolute and relative, does not exist without the other.  Two paragraphs later, Marx is writing:

If, on the one hand, the mere formal subjection of labour to capital suffices for the production of absolute surplus-value, if, e.g., it is sufficient that handicraftsmen who previously worked on their own account, or as apprentices of a master, should become wage labourers under the direct control of a capitalist; so, on the other hand, we have seen, how the methods of producing relative surplus-value, are, at the same time, methods of producing absolute surplus-value. Nay, more, the excessive prolongation of the working-day turned out to be the peculiar product of Modern Industry. Generally speaking, the specifically capitalist mode of production ceases to be a mere means of producing relative surplus-value, so soon as that mode has conquered an entire branch of production; and still more so, so soon as it has conquered all the important branches. It then becomes the general, socially predominant form of production. As a special method of producing relative surplus-value, it remains effective only, first, in so far as it seizes upon industries that previously were only formally subject to capital, that is, so far as it is propagandist; secondly, in so far as the industries that have been taken over by it, continue to be revolutionised by changes in the methods of production
But Marx is not about to diminish the critical importance, uniqueness of relative surplus value to advancing capitalism; to capital accumulation:

From one standpoint, any distinction between absolute and relative surplus-value appears illusory. Relative surplus-value is absolute, since it compels the absolute prolongation of the working-day beyond the labour-time necessary to the existence of the labourer himself. Absolute surplus-value is relative, since it makes necessary such a development of the productiveness of labour, as will allow of the necessary labour-time being confined to a portion of the working-day. But if we keep in mind the behaviour of surplus-value, this appearance of identity vanishes. Once the capitalist mode of production is established and become general, the difference between absolute and relative surplus-value makes itself felt, whenever there is a question of raising the rate of surplus-value. Assuming that labour power is paid for at its value, we are confronted by this alternative: given the productiveness of labour and its normal intensity, the rate of surplus-value can be raised only by the actual prolongation of the working-day; on the other hand, given the length of the working-day, that rise can be effected only by a change in the relative magnitudes of the components of the working-day, viz., necessary labour and surplus-labour; a change which, if the wages are not to fall below the value of labour power, presupposes a change either in the productiveness or in the intensity of the labour.
Relative surplus-value is inexorably linked with the rate of surplus-value; the productiveness of labor; and will be linked by Marx with the productiveness of capital and the intensity of labor.  Relative surplus-value will be the motor for and the object of the accumulation of capital, for the application of accumulated capital to the production process, for the exchange between objectified labor and living labor.

2.  Marx's original exposition on the origin and source of relative surplus-value in Capital restricts the source and the impact of  relative surplus-value on the accumulation of capital to  the devaluation of labor power.  In Chapter 12 of Capital, Volume 1, Marx identifies the expansion of relative surplus-value with the reduction in value of the necessities of life, the means of subsistence, which form the value equivalent to the wage.  The reduction in the time necessary for the reproduction of these necessities reduces the time necessary for the reproduction of the laborers.  Less time is required to reproduce the reduced value, but the labor is still compensated at its full, but now diminished,  value.  Everybody might still go home hungry, but not hungrier.   Marx writes:
Granted this, it follows that the labour-time necessary for the production of labour power [the surplus producing capacity of labor; in capitalism forced to present itself as a commodity, a value for exchange-- sa], or for the reproduction of its value, cannot be lessened by a fall in the labourer's wages below the value of his labour power, but only by a fall in this value itself.  Given the length of the working-day, the prolongation of the surplus value must of necessity originate in the curtailment of the necessary labor-time; the latter cannot arise from the former. In the example we have taken, it is necessary that the value of labour power should actually fall by one-tenth, i.e. from ten hours to nine, and in order that the surplus labour may consequently be prolonged from two hours to three.
And this can only be accomplished...:
Such a fall in the value of labour implies, however, that the same necessaries of life which were formerly produced in ten hours, can now be produced in nine hours.  But this is impossible without an increase in the productiveness of labour...By increase in the productiveness of labor, we mean generally and alteration in the labour-process, of such kind as to shorten the labour-time socially necessary for the production of a commodity, and to endow a given quantity of labour with the power of producing a greater quantity of use values.....
In order to effect a fall in the value of labour power, the increase in the productiveness of labour must seize upon those branches of industry whose products determine the value of labour power, and consequently either belong to the class of customary means of subsistence, or are capable of supplying the place of those means.  But the value of a commodity is determined not only by the quantity of labour which the labourer directly bestows upon that commodity, but also by the labour contained in the means of production...Hence a fall in the value of labour power is also brought about by an increase in the productiveness of labour, and by a corresponding cheapening of the commodities in those industries which supply the instruments of labour and the raw material that form the material elements of the constant capital required for producing the necessaries of life. 
Emphasizing the unique origins of relative surplus-value, Marx continues:
But an increase in the productiveness of labour in those branches of industry which supply neither the necessaries of life, nor the means of production for such necessaries, leaves the value of labour power undisturbed.
And if the value of the labour power is undisturbed, then the portion of the working day necessary to reproduce that value is likewise undisturbed by increases in productivity in these sectors.

Now clearly, history has provided examples of exactly those circumstance where the increase in productiveness of labor in sectors making up the "necessaries of life"-- thereby reducing the value of labor-power-- causes a fall in wages, in the cost of the reproduction of the labour power.  One such example is the US "long deflation" period, from about 1868-1896.  Improvements in agricultural productivity, manufacturing productivity, and more than equally as important, transportation productivity, caused the long-term decline in the prices of  everything from wheat to coal. At the end of that period, nominal wages had declined some 12 percent.  Real wages however increased 42 percent.  The overall decline in the consumer price index in this period measured 40 percent.

None of this implies that the period was free of strife; of periodic recessions of great and greater severity; of labor struggles in the face of attempts to forcibly reduce wages; of the bourgeoisie's attempt to offset the oscillations in profitability by attacking labor.   All of those struggles occurred precisely as a result of the increasing productivity of labor, the "transition" to the "real domination" of capital, expressed in the increasing time of relative surplus-labor.

As for the "non-necessaries," Marx provides an explanation that rests on the productivity of labor creating a variance of the non-necessary commodities' individual values, or time of reproduction, and its social value, the socially necessary time for its reproduction.   

Reducing not the necessary labor to the reproduction of the wage, of the labor power, but rather  labor necessary to the production of the commodity reduces the unit value of the commodities, and increases the mass of commodities.  The capitalist then arbitrages this variance, that "spread" in unit values, transferring thereby aggrandized surplus-value from the other producers, claiming a portion of the total social surplus-value corresponding to the size of his/her capital, and its relative efficiency through the mechanism of price, through distribution. 

Marx's identification of  the "single source" for relative surplus-value, to the production of necessities and the decline in the value of labor power creates certain ambiguities.  First and foremost, at the end of the period of the long deflation, the real value of the wage is greater than at the start of the period.  The value of necessities that the wage can command has increased.  The nominal wage declined by 12 percent; the real wage had increased.  The CPI, as a proxy for the "necessary labor" had declined by 40 percent.

Secondly,  the "arbitrage" mechanism created by the enhanced productivity of labor is "universal" to capital; it is the mechanism for enhancing the rate of surplus-value in all sectors and departments of capitalist production.  This same distributive price arbitrage is the mechanism for aggrandizing greater rates of surplus-value in the capitalist production of those "necessaries" to the reproduction of labor-power.

When capitalism revolutionizes the conditions of agricultural production, it does so through enhancing the productivity of labor, which is then manifested in the arbitrage of the "spread" between the individual value, the individual cost of reproduction of the necessary commodities, and the social value, the socially necessary time for the reproduction of the necessary commodities.  There is no other way, given market relations, given in fact, private ownership of the necessary commodities for this to occur.   If the productivity of labor in the production of wheat doubles, the value of the labour power engaged in that production does not immediately decline.  The relative surplus-value does not directly reflect a increase proportional to the decline in the value necessary to reproducing the laborers.  The capitalist appropriating the results of the heightened productivity brings the expanded value to market at a lower price, and claims a larger portion of the total surplus-value in the market.

The devaluation of the labor power is expressed only through this pricing mechanism, and only over time as, in fact, the "spread" disappears, as the entire society is revolutionized by the improved means of production; as in fact the reduction of  labor-time necessary for the reproduction of all commodities is transmuted into the reduction of the necessary labor-time for the production of the value equivalent to the wage.

The identification of relative surplus value as originating in the production time for the "necessaries" of subsistence glosses over the mutability of the category of "necessaries" itself.  Semiconductors were not a "necessary of life," a component of the means of reproducing the value of the necessary labor-time,  upon discovery, or through the initial stages of refinement.  Applying semiconductors in integrated systems controlling design, production, communication, and transport has occurred over decades. And today the utilization of semiconductors in consumer products certainly have become part of the package of necessities.

Similarly, the application of GPS, in combination with semiconductor based digital control technologies, to the production of agricultural commodities, precisely providing for the application of seed, nutrients, and water, reducing the time, and value of these components in the valorization process is a new process that reduced the proportion of the value of the labor power engaged in production, but will aggrandize greater surplus-value through the market arbitrage mechanism until the process has become socially dominant.

3. The application of technology to the production process in capitalism is the application of accumulated capital to the valorization process.  In all sectors and departments of capitalist production what is critical is the reduction in the labor necessary for the expansion of value; the "disproportional" reduction of the value  of the labor power necessary for accelerating the expanded reproduction of the value of the applied capital.

The ambiguities in the presentation of relative surplus-value have allowed some to conclude that, counter to Marx's own discussions,  the application of accumulated capital cannot alter the rate of surplus-value, the rate of exploitation of labor; that in fact there are no different rates of surplus-value  in various industries; that the relative "productivity of labor" is immaterial to the expansion of value; that all of capitalism's enhancement of the rate of surplus-value, if not attributable to a decline in the value at which the labor power is compensated, amounts to nothing but a redistribution of/from surplus-value extracted from "super-exploited" sectors, that is areas and sectors where the wage is less than the value of the labor power, and is not sufficient to the reproduction of the laborers.  Each of these "conclusions" is fundamentally at odds with Marx's own exploration of surplus-value, with the application of the law value, and with the real mechanisms of capitalist accumulation in the past, in the moment, and in its miserable future.

Marx,  considering the increased production of surplus-value that arises from the curtailment of the necessary labor-time in sectors that do not make up the "necessaries" determining the value of the labor power writes in Chapter 12:
The exceptionally productive labour operates as intensified labour; it creates in equal periods of time greater values than the average social labour of the same kind (see Ch 1. Sect.1)...Hence the capitalist who applies the improved method of production, appropriates to surplus-labour a greater portion of the working-day, than the other capitalists in the same trade.  He does individually what the whole body of capitalists engaged in producing relative surplus-value, do collectively.  On the other hand, however, this extra surplus-value vanishes so soon as the new method production has become general and has consequently caused the difference between the individual value of the cheapened commodity and its social value to vanish. The law of the determination of value by labour-time, a law which brings under its sway the individual capitalist who applies the new method of production, by compelling him to sell his goods under their social value, this same law, acting as a coercive law of competition, forces his competitors to adopt the new method.  The general rate of surplus-value is therefore affected by the whole process only when the increase in the productiveness of labour has seized upon those branches of production that are connected with, and has cheapened those commodities that form part of the necessary means of subsistence, and are therefore elements of the value of labour power.
Ambiguities resolved, right?  Yes and no.  Maybe and maybe not.  On the one hand...while on the other hand...

For one thing, Marx here refers to the intensity of labor as a determining condition, without quantifying that quality.  He does not provide us with any method for measuring that quality.  We do not know therefore its impact on the actual valorization process.

To be sure, Marx has it exactly right-- the improved productivity of labor does operate "as if" it were intensified labor-- "creating in equal time greater values than the average social labor."  However, if "intensified labor" can create something so unusual, so much an oxymoron-- "greater values in equal time"-- we need to know exactly how labor is so intensified, and if  relative surplus-value is simply an expression of intensified labor.

If intensified labor is labor that produces greater values in equal time than the social average, then intensified labor is labor that produces the value equivalent to its own wage in less time. All abstract labor is measured by one thing, and one thing only--time: "Time is everything, man is nothing; he is, at the most, time's carcass," wrote Marx in The Poverty of Philosophy and he wasn't kidding. 

So how is labor intensified, given that intensified labor creates greater values than the average in equal time?  Clearly, lengthening the working period, by reducing "breaks," or eliminating a meal period,  is not the mechanism for this as that would violate the "equal time" condition.   The labor process can be accelerated.  But the pace of the labor process under capitalist relations is determined by the accumulated capital applied and reapplied to production; the pace is determined by the machine.  The machine can be sped up, and the laborers will have to follow.  In the production process, the increased pace means that greater quantities of raw materials, intermediate products, and replacement parts for the machinery will be required.  The proportion of labor time embodied in any one or all of the products, declines.  The mass of commodities increases.

In the valorization process, the proportion of constant capital embodied in any unit of time increases, but this is a mere transfer of already existing value.  It's a pass-through.  The proportion of  variable capital, the living labor expressed in the wage in any unit of time, and for each unit of production decreases.  At the end of the working period, we have the relatively reduced value and hours of living labor required for both production and valorization.  We have labor power reproducing values equivalent to its own in less time.  We have a condition indistinguishable from that of the enhanced productivity of labor.  We have a condition indistinguishable from that enhancing the appropriation of relative surplus-value.

The commodity production can also be intensified, accelerated, by the rationalization of the process, by the elimination of intermediate steps, by the substitution of machinery that can function at speeds, and levels of precision exceeding the human laborer.  

In the end, we are always left with a condition indistinguishable in production and realization from that of relative surplus-value. 

4. In the long and the short-run, the existence and increments of relative surplus-value materialize in the expanded capital values introduced into production. The reduction in the value of labor power, the necessary labor, is transformed socially into the reduction in the labor necessary for the totality of reproduction.  It is from that point of totality, pardon the oxymoron, that the "unwinding" of capital accumulation begins, when the increased rate of surplus value cannot overcome the decreased rate of living labor, and the rate of profit trips, stumbles, and falls. 

March 27, 2016

Sunday, March 20, 2016

School's Out

First, you need to understand what "real estate" is all about.  It's all about finding, targeting, and fleecing the "bigger fool."   That requires pretense, and pretending. Deception.  Advertising. That requires enforcing, imposing, that pretense as a contract.  That requires lawyers, and goons. Enforce the contract on the bigger fool, protect the "builder" from the pretense of equity inserted in the contract to deceive the bigger fool.

The "builder," "developer," is the sum total of pretense, deception, advertising, enforcement, law, and thuggery.  The entrepreneur's entrepreneur. 

Keep that in mind.

There's a "school of thought" that claims that Trump's campaign is fueled by the  "populist rage" of the "white working class"  at the "neo-liberal" establishment,  with the neo-liberal establishment personified by the likes of Reagan, Bush 1, Clinton, Bush 2,   Obama, and...the prospects of Clinton 2. 

The problem with that "school" is that "neo-liberalism"  is exactly the application of the "builder's,"  the "developer's" business model to the capitalist economy as a whole. 

"Neo-liberalism" does not exist separate and apart from it origins, its pretense as something other than the attack on racial equality, and than the attack on the few steps taken towards racial equality--the equal treatment of black and brown labor-- forced upon the bourgeoisie by the struggles after WW2.

The ideology of  "neo-liberalism"--  "free markets," "reduced regulation,"  "free trade," --  is a string of codes, of coded messages, designed to allow the implicit racism, the attack on black labor, to become public discourse and a public policy.

And...and with the election of an African-American president, Trump embodies the real moment of "neo-liberalism:"  there is no longer any need for codes.  Racism, the fundamental imperative for waging the struggle against the working class is, once again, the explicit currency of politics.

The bourgeoisie have been trading in this discourse, this code, forever, more or less. The Republicans have embraced it with particular fervor since 1964.  That the "neo-liberals" among them are now "horrified" by Trump; by his attacks on "free trade;" on their military adventures;  on sources of cheap labor;  shows that indeed Trump knows the real estate better than they do.  He has found his bigger fools.

That Trump is now more than less dispensing with the codes and explicitly appealing to racists doesn't mean we can "speak" to those  "populists" and give them an "alternative" way to "channel that rage." If there ever was a "liberal" response to a class struggle that's it. Our appeal needs to be to the migrant workers, to the most exploited sector of the working class, and it has to begin with proposing the dismantling of the Immigration and Customs Enforcement raids and attacks on workers.

March 20, 2016

Wednesday, March 16, 2016

Digital Divide

From The Wall Street Journal, Saturday/Sunday, March 12-12, 2016

Instacart Slashes Grocery Couriers' Pay
 Instacart Inc is cutting the fees it pays couriers who shuttle groceries in several cities...
 Instacart informed drivers in recent weeks in some cities, including the San Francisco  and Los Angeles metro areas, about new rates that in some cases will require workers to nearly triple their deliveries to make the same pay, according to emails reviewed by The Wall Street Journal.
Contract drivers in the company's hometown of San Francisco who collect prepacked bags from grocery stores will earn $1.50 a drop-off, a cut of 63% from the previous guarantee of $4.  Instacart is also slashing by 50% to 25 cents the commission it pays for each item in an order drivers collect when shopping in stores....
In its emails to drivers, Instacart said driver could still earn "$18 or even $20 or more per hour" based on its expectation of tips.
Other startups with apps that summon contractors...are scrambling to maintain their business models.
Many of these companies, such as Instacart, rely on a contracted labor force that pays for its own gas, insurance and other fees, helping to keep costs down.  But competitive pressure from well-heeled companies such as Uber Technologies Inc. and Inc. is forcing start-ups to rein in costs....
[Instacart], which operates in 17 U.S. markets, makes money from delivery fees as well as charging more than retail prices for items at some stores and pocketing the difference through commissions paid by the grocer.  
This model, along with the promise of simplifying delivery through smartphone apps, attracted big-name venture-capital investors...
But Instacart has signaled its business of delivering fresh groceries in as little as one hour needs revamping.
 In December, Instacart raised the delivery free for customers to $5.99 form $3.99 and increased its annual fee for unlimited deliveries to $149 from $99. 
Instacart told workers the latest rate changes came after evaluating "order volume, efficiency, and delivery costs," and promised more deliveries and improved routes.
But the immediate effect is many Instacart drivers will earn less for the same deliveries...
A 40-item delivery today pays $25, excluding tips, but would drop to $17.50 in the new structure, based on a Journal calculation
Yes, almost all the elements of the modern, digital economy are there.  The talk about models, and apps, and "contractors" and venture capital and fees  Yeah, tips, shifting the cost for reproducing the labor-power of the laborer away from the actual compensation and  So very modern.  So very egalitarian.  For an extra-dollar, the deliverer will tap dance, too.

What's missing?  Damn, the article left out "entrepreneurs" and "entrepreneurship."  The article forgot to mention the great things entrepreneurship brings to your doorstep along with your organic, vegan, whole grain quinoa, flax, chia, goji, extra dark fair trade chocolate chip cupcakes.  Like the working poor.  Like super-exploitation where the wage, wait-- don't call it a wage, call it a commission-- is essential to maintaining the marginalization of the-- don't call them workers, call them associates.

Bet you never knew that LA and San Francisco and Seattle where part of the so-called Global South, did you.   Now you do.

Nothing says primitive accumulation like the digital economy....which gets us to our forthcoming topic... ambiguities of surplus value.

S. Artesian
March 16, 2016


Saturday, March 05, 2016

Dispersed Camps, Concentrated Camps

1.  So...capitalism gives us a universe of camps. It's a system for the reproduction of camps, of camp inmates, camp followers, camp administrators. Of course as capital centralizes, converges, condenses all the manifestations of its thuggery around the unifying thuggery at its core namely driving the cost of labor, the wage, below its value, capitalism will concentrate those camps as it concentrates everything on its sole historic mission,  which is not preserving value from destruction, but rather preserving value through destruction.

Accumulation is the accumulation of camps, an accumulation of the dispossessed, the fleeing, the marginalized, those whose very existence is supposed to make them invisible, unheard, lost. 

From Guantanamo, to gated communities; from squats occupied by those without cash attempting to avoid detection to penthouses occupied and purchased by those with cash for cash likewise to avoid detection, it's a camp world.  Calais, Canary Wharf, Battery Park City, The City of London, Idomeni, none can exist without the other; each exists because of the other.

2. the United States, a golf-cart fascist, the bastard offspring from the non-marriage of Elmer Gantry and Silvio Berlusconi, as incubated in Sarah Palin's uterus, is just a ventricular fibrillation or two away from every landlord's dream, picking up the White House as part of the package of foreclosed properties in a distress sale.

3. China, president Xi Jinping is engaged in a struggle to preserve "party capitalism," that is to say the organized aggrandizement, against the prospects of oligarch capitalism, the disorganized plunder inherent in China's integration into world markets.  And how will the party/state camp protect its assets from the depredations of the laissez-faire camp?  By expelling two million workers from state-owned coal and steel enterprises in the next four years,  thereby resolving also the so-called "labor shortage" of migrant workers in the Guangdong, and thereby relieving the pressure for wage increases, thereby reducing the flight of capital to other cheaper camps, like Vietnam.  A win-win-win-win for party capitalism, president Xi assures everyone with a keyboard.

As big a number as two million is, it's but a veritable drop in the bucket of overproduction. Estimates are that almost one-third of China's workforce in the cement, glass, shipbuilding sectors face elimination.

Special enterprise zones, plus foreign direct investment, plus state owned enterprises, plus off-balance sheet local government structured investment vehicles equals....more camps.

4. Meanwhile...As it is on the sea, so shall  be it on the land.  Capsized dry-bulk carriers lay up at anchorage, container ships "slow steam" to reduce overcapacity,  and very large crude carriers (VLCC) are deployed as floating oil storage facilities as land based holding areas are at peak capacity.  Now, in the United States, about 1/3 of the tank cars used to transport shale oil are being used to warehouse the oil.  The cost for leasing a 700 barrel capacity tank car per month is $1500-$1700 month, so if the warehousing period lasts for six months, the barrel price has to increase by about 50 percent to make this exercise in market-timing fruitful.  Who says the bourgeoisie are good at numbers?

Meanwhile, annual deliveries of new tank cars to transport rather than warehouse the oil have more than tripled, from less than 10,000 in 2011, to more than 35,000 in 2015.  Just in time, right?

Meanwhile of course, the oil boom camps in North Dakota are emptying out; commercial breath in the Permian Basin is shallow, wheezy, and weakening.

The employer of next resort in the frail shale oil patch?  Welcome to Camp Meth. 

5. the European Union, the French, having failed to destroy the refugees inhabiting the camp at Calais, have decided that the refugees now have a political use-- as a threat against the UK should it opt out of the EU camp.  Should that "Brexit" occur, France will deny Britain the right of "containment"-- maintaining a quarantine of refugees on the French side of the English Channel.

In 1917, the German military command sent Lenin & Co. in a sealed train to Russia to force it to withdraw from the war.  A century later,  the French Minister of the Economy threatens allowing thousands of refugees to enter Britain via Eurofreight train in order to prevent the UK from withdrawing from the European Union.

Meanwhile and at the same time, the same minister of the economy has promised to make a place and a home for the refugees from the City of London-- bankers, asset liquidators, hedge fund managers-- at Palais Brongniart should they desire to maintain their EU connections and set up camp at 14 Place des Reflets.  Welcome back, finance campers.    Répète après moi.

Donnez-moi votre riche fatigué
Votre super-riches
Aspirant à dépenser librement
Envoie-les moi
Ces braves financiers
Leveraged au maximum

March 5, 2016