Are We Wrong About Capitalist Crises?
A correspondent (“Robbo,” Croydon) has been digging into year-old articles published in the Socialist Standard, and wants to know if we have changed our mind about capitalism’s crises. He writes as follows : —
“In spite of your evident contempt for the “doctrine of collapse,” I think there is at least an outside chance (notice, I do not say a certainty) of a breakdown, before we have time to make the Socialists. In this connection I have been studying the article, “Will Capitalism Collapse?”, in your April, 1927, issue. There you refer to a previous criticism (February, 1922) of the same doctrine, pointing out that “half the allotted time” had passed, and that all the essential signs of a collapse were lacking. May I now point out that the “other half” has passed, and although, to be quite fair to you, the actual collapse has not yet taken place, it is signfioant to notice that almost all the features which you postulated as acceptable indications of collapse, and which may have been lacking in April, 1927, are now present in overwhelming force.
For instance (front page), “Where, now, are the unemployed organisations?” May I suggest, very much in evidence. Again (page 114), “Barring the failure of the natural physical basis of human life, it (the capitalist system) cannot fall,” and (also page 114), “The system does not cease to function.” Again I suggest that these things are happening. The physical basis is failing, and the system has almost ceased to function. Also (page 115) you say, “Since 1921 unemployment . . . has been almost halved, currency problems . . . have been . . . satisfactorily solved, and no one now supposes that the war debts present any special difficulty.” In the light of present conditions, comment on the latter statements is surely superfluous, and a re-reading of your own article should give you “furiously to think.”
The late Mr. Bonar Law once retorted to a political opponent who had been making wild prophecies about the effects of a certain policy, “It is no use trying to argue with a prophet: one can only disbelieve him.” Fortunately one can do more than Mr. Bonar Law was disposed to do in that case. One can ask the prophet to state the grounds of his belief.
For the benefit of other readers we must first explain the references made by our correspondent to earlier articles in this Journal. In 1921 and 1922 the Communists were busy preparing for the breakdown of capitalism which they believed to be imminent. One of them said in reply to a question that 10 years would prove or disprove the soundness of that theory, on which the whole Communist movement was built up. In February, 1922, and again in April, 1927, articles by the present writer appeared in these columns criticising the assumptions of those who founded their policy on the supposed collapse of capitalism. In April, 1927, attention was drawn to the fact that half of the allotted ten years had passed, without the promised collapse and the world revolution which was to accompany it. What our correspondent “Robbo” asks us to believe is that even if the Communists misjudged the situation in 1922 and 1927 they have not over-estimated its seriousness to-day, because factors then lacking are now present. Let us consider these factors one by one.
In 1921 and 1922 the organised unemployed who were trying to force concessions from the Guardians and the Government by means of demonstrations, deputations, and the seizing of public buildings, were said to number hundreds of thousands, and the Communists claimed that they had the leadership of them. By 1927, with the passing of the worst of the industrial depression, the unemployed organisations had simply melted away ; hence the remark, “Where now are the Unemployed organisations?” Our correspondent; replies that in 1931 “they are very much in evidence.” But he quite mistakes the point of the remark to which he refers. The intention was to show the uselessness of the Communist theory of so-called “mass organisation.” Instead of building up a party of Socialists understanding Socialism, they believed in building up a loose organisation of vaguely discontented workers. Our criticism was that no permanent organisation could be constructed on such a base, and that anyway it could not be used for the achievement of Socialism because the members did not understand Socialism. We were right. Apathy and a decline in the volume of unemplovment destroyed the unemployed organisations and robbed the Communist Party of the bulk of its own members. The same thing will happen again. Our correspondent must not imagine that we believe the capitalist system to be in danger from the activities of organised unemploved even if they do number hundreds of thousands. The capitalist class can always deal with such situations by the joint method of police action and the giving of more unemployment pay and other concessions. The Communists themselves were compelled to admit that this is so. Their official organ said in 1923 : —
“The unemployed have done all they can, and the Government know it. They have tramped through the rain in endless processions. They have gone in mass deputations to the Guardians. They have attended innumerable, meetings and have been told to be “solid.” They have marched to London, enduring terrible hardships. . . . All this has led nowhere. None of the marchers believe that seeing Bonar Law in the flesh will make any difference. Willing for any sacrifice, there seems no outlet, no next step. In weariness and bitter disillusionment the unemployed movement is turning in upon itself. There is sporadic action, local rioting, but not central direction. The Government has signified its exact appreciation of the confusion by arresting Hannington.
The plain truth is that the unemployed can only be organised for agitation, not for action. Effective action is the job of the working-class as a whole. The Government is not afraid of starving men so long as the mass of the workers look on and keep the ring.” (“Workers’ Weekly,” February 10th, 1923.)
The next point is the conditions under which capitalism might come to an end. The passage referred to is as follows (S.S., April 1927, p. 114)
“Capitalism might conceivably be rent asunder and destroyed in a long-drawn-out struggle for mastery between contending classes, but, barring the failure of the natural physical basis of human life, it cannot fall and cannot be revolutionised except by the actions of the men and women who compose it.”
To this our correspondent retorts, “The physical basis is failing, and the system has almost ceased to function.” (Italics his.)
This statement is amazing, and our correspondent should himself have recognised the need for evidence to justify something so utterly out of keeping with the obvious facts of the present situation. The physical bases of human life—food, clothing, and shelter—were never so plentiful and so easily produced as they are to-day. The world is overburdened with supplies and the means of producing more of them. Yet in face of that our correspondent says that “The physical basis is failing.” Like the late Mr. Bonar Law one can only disbelieve him.
Then we are told that the system has “almost” ceased to function. There must be much virtue in that “almost” in the eyes of our critic. The production and distribution of wealth goes on with no more difficulty than it did 10, 20, or 50 years ago. The number of workers actually in employment now is more than 1,000,000 above the level in the 1921 slump. In many respects the capitalists are now better informed and better able to make adjustments to the constant demands of their system than in the past. As regards the political side we have just seen the capitalists get a new mandate for the retention of capitalism in spite of all the causes now operating to make the workers discontented. Perhaps “Robbo” will enlighten us as to what he means by “almost ceased to function.”
The last passage referred to by our correspondent is the following :—(S.S., April, 1927, p. 115.)
“Again, allowance should have been made for the familiar recurring depression which is a century old feature of the system. Such a depression, affecting almost all the world in 1921, no more justified the prophecy of ruin and collapse for British capitalism than depression did in pre-war days. Since 1921 unemployment in this country has been almost halved, currency problems in most European countries have been from a capitalist standpoint satisfactorily solved and no one now supposes that the war debts present any special difficulty.”
Our correspondent says about this, “In the light of present conditions, comment on the latter statements is surely superfluous, and a re-reading of your own article should give vou furiously to think.”
But comment is not superfluous, it is just what is needed, and in its absence we are left wondering what is our correspondent’s point. Between 1921 and 1927 unemployment fell from 2,500,000 to about 1,250,000, and now with a larger insured population it is back to about the same percentage as in 1921. But what does that signify to our correspondent ? To us it signifies that capitalism is behaving in very much the same way as in all the crises of the past. As regards currency problems our correspondent need only refer to contemporary political and economic journals to find that in the years just after the war the currency muddles of the European countries were far more disturbing than anything the world can show to-day. This country has now returned more or less to the currency position it occupied in the years from 1918 to 1925. Does that portend collapse? Obviously not. And has our correspondent forgotten that several times during the 19th century financial crises forced British Governments to suspend the Bank Charter Act governing the gold backing for the Bank of England Note issue ?
If “Robbo” believes that the war debts do present some special difficulty,” all he has to do is to tell us what feature there is in the present crisis that cannot be paralleled in one or other of the pre-war crises, when war debts did not exist in amounts comparable with the present debts. We can see no such additional feature. What we can see is the German capitalists using the depression as an excuse for getting rid of their burden of reparations. They have also used reparations as their excuse for reducing the pay of Government employees. But our correspondent has only to look at the other countries to see that reparations are a convenient excuse, nothing more, for the British Labour Government and practically every Government in the world has used the fall in prices and the depression as an excuse for reducing civil service pay. Wage reductions were of course a feature of every pre-war depression also.
In conclusion it may be of interest to point out that the idea of the imminent and certain collapse of capitalism, with its fatal effect on serious Socialist study and organisation, is far older than the Communists, who are indeed only carrying on the theories and tactics of the reformists in the Social Democratic Federation. In the ‘eighties and ‘nineties of last century unemployed organisations, demonstrations, deputations to the Guardians demanding “work or maintenance,” conflicts with the police, the seizing of public buildings, all of these things were in full blast whenever unemployment became acute. And then, as now, the reformists thought that capitalism would collapse and that the discontented non-Socialists in the unemployed organisations could be led to establish Socialism. And then, as now, there were the half-educated so-called “intellectuals,” who had misread Marx, assuring the workers that this theory is Marxian, and that it is true although it fails to fit the facts. The late Mr. Hyndman had perhaps some excuse in 1884 for holding this unsound theory of the collapse of capitalism. He wrote in “Justice,” in January, 1884 :—
“It is quite possible that during this very crisis, which promises to he long and serious, an attempt will be made to substitute collective for capitalist control. Ideas move fast; the workers are coming together.”
Later on he suggested 1889 as the probable date for the revolution. (See “Rise and Decline of Socialism,” by Joseph Clayton, p. 14.)
Edward Carpenter, in “My Days and Dreams,” says :—
“It was no wonder that Hyndman, becoming conscious as early as 1881 of the new forces all around in the social world, was filled with a kind of fervour of revolutionary anticipation. We used to chaff him because at every crisis in the industrial situation he was confident that the millennium was at hand. . . .”
Hyndman continued to see the revolution “round every corner” until the date of his death, although, ironically enough he bitterly hated the Communists who are only carrying on in Hyndman’s own earlier tradition.
His successors in the I.L.P. and the Communist Party have no such excuse as Hyndman had. They have no excuse for their ignorant assumption that Marx supports their view, nor for their failure to acquaint themselves with the easily accessible facts of past experience and the theories Marx based upon them, which show how capitalist society actually works, and how it may be replaced when, and only when, the workers want Socialism and will organise politically to obtain it.
H.