Capitalism today is not threatened by crisis; indeed, crisis is the tool it uses to renew itself

Take, for instance, Marx’s (dialectical) opposition between the forces of production and the relations of production. Marx says that the very development of capitalist relations unleashes forces — for instance, possibilities of widespread material abundance, as well as collective modes of organization — that those same relations need to repress in order to perpetuate themselves. So, as capitalism develops, it is literally bursting at the seams: it needs to control and push back the very things that it makes possible. It needs to reimpose scarcity, and privatize what is inherently common and public. This stress is a dialectical contradiction, and its result is crisis: and ideally, for Marx, crisis is the point of leverage at which revolutionary change can occur, destroying capitalist property relations and replacing them with a common, or communist, system that is much more in accordance with the abundance that capitalist relations themselves inadvertently produced.

Now, there is something overly mechanical here about how the Hegelian dialectic neatly inverts itself, so that a contradiction directly leads to its own solution on a higher level. And in fact, of course, things haven’t happened this way. Capitalism today is not threatened by crisis; indeed, crisis is the tool it uses to renew itself. The “dialectic” by which a contradiction is resolved on a higher level is entirely absorbed within capitalism itself. When the “contradictions” of what I like to call FKW (the Fordist/Keynesian/welfare-stateist system) caused trouble in the 1960s and 1970s, the result was not to trouble the capitalist system, but precisely to allow capital to regenerate itself on high-tech, neoliberal lines. (This was the case whether we refer to social movements and to stagflation in the “advanced” western countries, to stagnation in the “socialist” bloc, or to anti-colonialist struggles and subsequent nation-building in the Third World)... This entry was posted on Monday, May 22nd, 2006 at 11:49 am and is filed under Theory. The Pinocchio Theory