The American Phenomenon

In 1893, Frederick Jackson Turner presented his landmark essay "The Significance of the Frontier in American History" to a gathering of academics at the World's Columbian Exposition. Turner, in his thesis, argued that the unique American frontier experience shaped the United States' development and created a distinct culture and political condition. In essence, the frontier was responsible for molding the American character into what it is. 

While his thesis certainly stands true, the "Old West" also brought with it an economic anomaly -- a differentiating aspect that made the United States' economic upbringing particularly strange. From its colonial origins and throughout the 1800s, the U.S economy was consistently plagued with shortages of labor. These shortages would influence the development of slavery in the South, where plantation owners find it necessary to import more slaves to sustain their agricultural output. These shortages would also be the reason for the influx of immigrants throughout the 1800s, from which stemmed the extreme prejudice from nativists once some forms of unemployment actually became evident.

The above graph depicts estimates made by the Bureau of Labor Statistics. However, they are relatively high due to the impossibility of knowing the actual levels of unemployment. Little surveying was done, regional statistics were not kept, and much of the American population was self-employed. This makes assessing the unemployment rate during this period of exceptional American growth difficult. And further complications arise when youth employment is added into the calculations --  which customarily started the from age of 10 in most areas. Since not all households required their children to work, making fully accurate estimates is nearly impossible. 

However, given the growth of American industry during the 1800s, basic assumptions can be made. For one, the inventiveness of the U.S industrial economy can be properly explained if the labor shortages are taken into account. Because of the lack of labor in the United States, industrial capitalists had to rely on new technology to be able to increase their output and balance the lack of laborers. From this predicament, the American System of Manufacturing, as it was called, was developed. Because of its efficiency, it was revered amongst industrialists in Europe. The most important contribution being -- the creation of interchangeable parts. This allowed industry to drastically increase their output and keep costs to a minimum. This also coincided with the high degree of mechanization that was starting to take root in the United States with the beginnings of the first Industrial Revolution.

Much of this technological advancement was also a product of the contention between agricultural and industrial regions during the United States' great economic expansion. Although these clashing interests date far back to colonial times, the creation of the General Land Office  in 1812 was a turning point. This independent federal agency was responsible for distributing and surveying public domain land in the largely unexplored territories of the United States. Two laws in particular addresses the rationing of these lands -- the Preemption Act of 1841 and the Homestead Act. The former was passed to ration pieces of the uncultivated territory at a price. Up to 160 acres could be purchased at a time, and at very low prices. It was done to encourage those already occupying federal lands to purchase them. The Homestead Act, first enacted in 1862, was similar in its intent. Its aim was giving applicants roughly 160 acres of land free of charge west of the Mississippi River. Now, northern industrialists not only had to deal with labor shortages -- they also had to satisfy their workers enough so they would not opportunistically leave and go westward. 

The frontier experience did much more than cultivate the unexplored land westward; it intensified the shortages of labor in the United States. This scarcity created an inventive industrial sector that had to compensate by developing new technology, which would ultimately lead the United States to the economic dominance it enjoys today. Economist Richard Wolff, in a few of his lectures and writings, theorizes that it was this remarkable condition that created a very different experience for those living in the United States.

"What distinguishes the United States from almost every other capitalist experiment is that from 1820 to 1970, as best we can tell from the statistics we have, the amount of money an average worker earned kept rising decade after decade. This is measured in “real wages,” which means the money you earn compared to the prices you have to pay. That’s remarkable. There’s probably no other capitalist system that has delivered to its working class that kind of 150-year history. It produced in the U.S. the expectation that every generation would live better than the one before it, that if you worked hard, you could deliver a higher standard of living to your kids."

Frankly, Wolff's analysis makes sense. Rising wages kept the worker class's morale high, and attracted immigrants -- it also served as an incentive for working people to stay as laborers rather than receive land and move westward.  So, fundamentally speaking, American employers experienced competition in the labor market for two specific reasons. One, the federal land programs provided incentives for workers to move westward and entrepreneurs had to provide reasons for them to stay and work in the form of higher wages. And second, since the labor supply was constantly in high demand, workers were not easily replaceable. This implicitly forced firms to increase their wages, to attract laborers to their respective industries. 

In 2006, Michael Lind published an article in the Financial Times titled "A Labour Shortage Can be a Blessing," which indirectly supports Wolff's thesis on wages. He writes: 

"In the ageing nations of the first world, the benefits of a labour shortage, in the form of higher productivity growth and higher wages, might outweigh the costs. Where labour is scarce and expensive, businesses have an incentive to invest in labour-saving technology, which boosts productivity growth by enabling fewer workers to produce more. It is no accident that the industrial revolution began in countries where workers were relatively few and had legal rights, rather than in serf societies where people were cheaper than machines."

In order to validate Lind's and Wolff's claims, two specific economic topics must be properly historically analyzed. The first one being -- is there evidence for such a labor shortage, and if so, how severe was it?

Given the estimates made by the Bureau of Labor Statistics, it would be safe to assume that unemployment was not a major issue during the 1800s. When youth employment is taken into consideration, the estimates become very inflated, since the labor pool was so large. However, beside macroeconomic analysis, there are specific scenarios which shows that such a dilemma in production was indeed persistent in the United States during the 19th century. The PBS television series "American Experience" gives one particular scenario during the construction of railroads in the 1860s that validates this assumption.

"In early 1865 the Central Pacific had work enough for 4,000 men. Yet contractor Charles Crocker barely managed to hold onto 800 laborers at any given time. Most of the early workers were Irish immigrants. Railroad work was hard, and management was chaotic, leading to a high attrition rate. The Central Pacific management puzzled over how it could attract and retain a work force up to the enormous task. In keeping with prejudices of the day, some Central Pacific officials believed that Irishmen were inclined to spend their wages on liquor, and that the Chinese were also unreliable. Yet, due to the critical shortage, Crocker suggested that reconsideration be given to hiring Chinese..."

Historian Rickie Lazzerini portrays a similar issue in Cincinnati, Ohio during the beginning of the 1800s. 

"...the busy industries created a constant and chronic labor shortage in Cincinnati during the first half of the 19th century. This labor shortage drew a stream of Irish and German immigrants who provided cheap labor for the growing industries."

The second question that must be asked is -- was there actually a persistent increase in wages during the 1800s? 

To properly answer this question is immensely complex, since such little data is available. However, there exists one specific academic paper on the subject that addresses this question and the one posed prior. In 1960, economist Stanley Lebergott authored a chapter addressing wages in 19th century United States in a full volume called "Trends in the American Economy in the Nineteenth Century" published by the Conference on Research in Income and Wealth. The chapter itself was titled "Wages Trends, 1800 - 1900." He writes:

"Associated with the enormous size of these establishments was the
need to draw employees from some distance away. Local labor supplies
were nowhere near adequate. One result was the black "slaver's wagon"
of New England tradition, recruiting labor for the mills. The other was
the distinctly higher wage rate paid by such mills in order to attract
labor from other towns and states. Humanitarian inclinations and the
requirements of labor supply went hand in hand. Thus while hundreds
of small plants in New York, in Maine, and in Rhode Island paid 30 to
33 cents a day to women and girls, the Lowell mills generally paid
50 cents" [451].

Regions that lacked adequate quantities of labor had to rely on larger wages to attract workers from afar. However, apart from the industrial north of the United States, farm wages also increased -- perhaps signifying a competitive rift between the agricultural sectors and the industrial ones. 

Professor Lebergott, later in his analysis, then provides the full wage computations that he was able to calculate given individual data and trends recorded by local media. He combined the data he acquired on a state by state basis, starting locally and then branching out to create a national average. Also note, the drop in wages between 1818 - 1830 he attributes to "the close of the Napoleonic Wars and the end of the non-importation agreement."

Based on economist Stanley Lebergott's analysis, Richard D. Wolff's assertions are validated; the United States, for the most part, did enjoy increasing real wages throughout the 19th century. Even more so, it goes further in proving Michael Lind's claim that shortages of labor can indeed cause wage increases and heighten technological innovation. It is very likely that the combined frontier experience and shortages in the production processes created a unique variant of capitalism that was unique to the United States. It gave American households the confidence that if they worked harder, they would earn a better living. It also gave to them the optimism that their children would enjoy a better standard of living.

This unprecedented century of growth and success also had often overlooked impact on the American psyche. Because of the inflated expectations, it instilled a unique mentality amongst working class Americans. As John Steinbeck put it, the poor don't see themselves as victims -- but rather as "temporarily-embarrassed millionaires." It is this aspect of the American psyche that has allowed the broken system to flourish in the decades since the persistent stagnation of wages of the 1970s. Admitting the issue is just to difficult, for some; if we believe enough, the American dream just might become real again, as it was for those traveling out West to find riches and fortunes. In retrospect, the sooner working class Americans awake from this fantasy, the sooner they will realize that times have changed -- and not in their favor.

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- A lecture where Wolff discusses the frontier experience and 19th century wage increases.

- Some statistics and fact on U.S economic growth during this time period.

- A decent article on this topic from the Wall Street Journal (you need a subscription to view it).

Posters from the May 1968 Paris Uprising

The May 1968 protests in France were a substantial event in labor history. The event is known as being the largest general strike in history, involving some of the first wildcat strikes, and virtually bringing the entire French economy to a halt. It involved over 11 million workers, 22% of the population of France, and lasted for two weeks. Aside from the historical impact it had, it also created some beautiful artwork. The ones shown below are from the student uprisings in Paris. 

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Titles from left to right going downward: 

1. "The Beauty is in the Streets!"
2. "United Workers!"
3. "Capital"
4. "Be Young and Shut Up" 
5. "Peoples' University, Yes!"
6. "Light Wages, Heavy Tanks"

What is Work?

Work is difficult to define. In the modern mindset, it has become synonymous with economic productivity -- a primary cornerstone to progressing society: a kind of necessary evil.

Fundamentally, however, work does not implicitly have a negative connotation it. Contrary to its function in today's modern context, work is not objectively a burden nor a pleasure; It simply is. Work is indeed a necessity, that much is true, but must work be pursued and viewed as solely a negative aspect of one's lifestyle and be downgraded to the point of dissatisfaction, hatred, and dissuasion? Yugoslav Marxist-humanist Mihailo Marković, in his philosophical work titled "From Affluence to Praxis" addresses this dilemma eloquently:

"Work is a neutral concept. It refers to an activity which is a necessary condition of human survival and development in any type of society" [65].

The indispensable nature of "work" is crucial to the praxis of Marxism. The elimination of the "free rider" issue is a paramount dilemma, and has to be properly discussed before goods are allocated accordingly. Specifically speaking, this requires a clear correlation between work done and goods received to be able to function fairly; however, the proper criteria and definition of work must be defined for such concepts to be handled.

The initial question that must be answered is -- what is work, and how is it different from labor? Marković makes a stark distinction:

"In labor the worker uses only those abilities and skills which he can sell, which are needed in the process of commodity production... [Work] is the permanent exchange of matter with nature" [63].

"[Work] is the self-realization and satisfaction of human needs... [labor] might be maximization of income, or increase of power" [66].

Perhaps most importantly, work is a natural concept. It is not, by nature, exploitative nor negative. Only in the current mechanisms of the market, is "work" (better said as labor) defined by its productive forces -- by its potential to produce more capital and profit. Realistically speaking, virtually all action that progresses the social being is work once this chained view of labor is broken. Leisure, which is seen as an valueless in economic terms, is indeed a form of work. It is used as an outlet to break from the routine of labor that is a commonplace in today's age of modernity; an attempt to free oneself from the objectification of what he does. 

The largest obstacle to the realization of pure work, the fullest self-realization and satisfaction of human needs, is the alienating nature of today's labor. Marković defines it quite well:

"Alienated labor is the activity in the process of which man fails to be what he is, that is, fails to actualize his potential capacities and to satisfy his basic needs. Marx distinguished the following four dimensions of this type of alienation: (a) One loses control over produced commodities. The blind forces of market enslave man isnterad of being ruled by him. (b) In his struggle for more property and power man becomes estranged from his fellow man. Exploitation, envy, mistrust, competition, and conflict cominuate relationships among individuals. (c) Instead of employing his capacities in creative, stimulating work, man becomes an appendage of the machine, a iving tool, a mere object. (d) As no opportunity has been offered to him to fulfill his potential abilities, to develop and satisfy various higher-level needs, his whole life remains poor, one-sided, animal-like, his existence remains far below the real possibilities of his being" [63]. 

Although poetic in its definition, it is fundamentally true. Is it not human to become more inclined to work, if one feels involved in the final product? Is one not more inclined to work if he feels it is necessary for the community, which he has clearly learned, through praxis, that it likewise benefits him as well? The struggle, then, is to liberate work from being a status of wealth and power. Rather, it should be seen as a necessity for human conditioning and improvement. "Work" is not simply a commodity to be used and exhausted, to be stripped of creative spirit; it is has definite aesthetic qualities. If one realizes the beauty in work, the individual is more inclined to work to reach the means that was once outside its productive sphere. Work would develop beyond being a collection of one-sided mundane tasks for indefinite periods of time; it would serve as a necessary form of expression of one's abilities and talents.
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Labor's Struggle for Supremacy by Eugene V Debs.
The Right to be Lazy by Paul Lafargue

Pedagogy of the Oppressed (I)

There is so much to say about Paulo Freire masterwork Pedagogy of the Oppressed. It's direct, it's unrepentant in its criticisms, and it's eloquent in its message. It captures the essence of the oppressor-oppressed relationship, attempting to circumscribe such an abstract struggle onto paper -- and Freire manages to do so, quite well. The main dilemma when writing a book of this nature is that the woes of the oppressed must be properly synthesized into one concrete message in order to be discussed in any real detail. The biggest issue is that the struggle, in itself, is both metaphysical and material. It requires a look at the cognitive ramifications of being oppressed, as well as the causes of them; all in an effort to analyze the strife from a truly introspective perspective, one that virtually enters the minds of those under oppression. It is because Freire's magnum opus is able to successfully incorporate these concepts, it is able to transcend far beyond from being just a mere analytic Marxian study -- it becomes a riveting testament to those involved in the actual struggle, rather than being just a vague documentation of what their ills are. This makes it all the more powerful and enlightening. However, because it is so vast in its message, I'll contain my comparatively brief analysis to the first chapter only.

Paulo Freire, throughout the entire work, makes an effort to textually encapsulate the meaning of "humanization" and he revolves much of his analysis on "re-humanizing" the human spirit.

"But while both humanization and dehumanization are real alternatives, only the first is the people's vocation... It is thwarted by injustice, exploitation, oppressed, and the violence of the oppressors; it is affirmed by the yearning of the oppressed for freedom and justice, and by their struggle to recover their lost humanity" (26). 

However, he is careful in noting who must lead this liberation. 

"In order for this struggle to have meaning, the oppressed must not, in seeking to regain their humanity (which is a way to create it), become in turn oppressors of the oppressors, but rather restorers of the humanity of both. This, then, is the great humanistic and historical task of the oppressed: to liberate themselves and their oppressors, who oppress, exploit, and rape by virtue of their power, cannot find in this power the strength to liberate either the oppressed or themselves. Only power that springs from the weakness of the oppressed will be sufficiently strong to free both" (27).

With this, Freire makes a monumental point that has been historically validated time and time again. The greatest issue with any revolutionary struggle is dealing with the vacuum of power, which plagued the leftist vanguard experiments of the 20th century. The key point being: power cannot concentrate and cannot be exerted to form a new "ruling class" of privilege and wealth -- that would be the antithesis of any liberating movement, and would be a perversion of the humanization that was hoped to be achieved.

However, an issue arises (out of many) when attempting to foster such a radical change. The oppressed must realize the necessity to fight for it. The spark must be lit, but that must correspond with the oppressed realizing their downtrodden status. They must be lifted from their anesthetized state, by their own volition, and must be free of "their submersion in the reality of oppression" (27). Oftentimes, the downtrodden simply strive to become part of the higher class, in an effort to alleviate their poor condition, since they have been convinced it is the only way to move upward. They become fearful of greater repression to take action.

"... [the oppressed] have no consciousness of the themselves as persons, or as members of an oppressed class. It is not to become free that they want agrarian reform, but in order to acquire land and this become landowners -- or, more precisely, bosses over other workers. It is a rare peasant who, once "promoted" to overseer, does not become more of a tyrant towards his former comrades than the owner himself. This is because the context of the peasant's sitatuion, that is, opression, remains unchanged. In this example, the overseer, in order to make sure of his job, must be as tough as the owner -- and more so... during the initial stage of their struggle the oppressed find in the opressor their model of 'manhood'" (28). 

The oppressed must overcome this personal struggle before he strives for anything, that much is crucial. He must learn to accept freedom, and to cherish it, rather than take the position of his former boss or owner. He must not be fearful of real change. 

"This fear of freedom is also to be found in the oppressors, though, obviously, in a different form. The oppressed are afraid to embrace freedom; the oppressors are afraid of losing the 'freedom' to oppress" (28). 

"...the oppressed, having internatlized the image of the oppressor and adopted his guidelines, are fearful of freedom. Freedom would require them to eject this image and replace it when autonomy and responsibility... Freedom is not an ideal located outside of man; nor is it an idea which becomes myth. It is rather the indispensable condition for the quest for human completion" (29).

"...at a certain point in their existential experience the oppressed feel an irresistible attraction towards the oppressors and their way of life. Sharing this way of life becomes an overpowering aspiration. In their alienation, the oppressed want at any cost to resemble the oppressors, to imitate them, to follow them. This phenomenon is especially prevalent in the middle-class..." (44). 

Bearing this in mind, it becomes apparent that, first and foremost, reflection is essential to action. The goal is not to simply engage in dialogue with the masses, but to transform them in an effort to have them fight for their own liberation. It is this crucial step that will ultimately end their alienation. The difficulty, then, is how to go about doing so in a fashion that differentiates itself from the elusive efforts of the "humanitarian" oppressors.

"Pedagogy which begins with the egoistic interests of the oppressors (an egoism cloaked in the false generosity of paternalism) and makes of the oppressed the objects of its humanitarianism, itself maintains and embodies oppression. It is an instrument of dehumanization. That is why... the pedagogy of the oppressed cannot be developed or practiced by the oppressors. It would be a contradiction in terms if the oppressors not only defended but actually implemented a liberating education" (36). 

Simply put, by making the oppressed the objects of humanitarianism, you are in effect dehumanizing them -- you are leaving them in the same situation with produced them and fooling them with false gestures of generosity, which do little to fundamentally alleviate the ills they have grown accustomed to and inherited.

In order to fully articulate this message, you first have to clean up the semantics of certain terms to be able to even speak properly and understood in any reasonable context. The most important term that must be attended to is the definition of oppression. Oftentimes, the term is thrown around to describe the nature of egalitarianism; that equality is also oppression, since hierarchy is prevented through "force." Paulo Freire actually addresses this misguided criticism: 

"Resolution of the oppressor-oppressed contradiction indeed implies the disappearance of the oppressors as the dominant class. However, the restrains imposed by the former oppressed on their oppressors, so that the latter cannot reassume their former position, do not constitute oppression. An act is oppressive only when it prevents people from being more fully human. Accordingly, these necessary restraints do not in themselves signify that yesterday's oppressed have become today's oppressors. Acts which prevent the restoration of the oppressive regime cannot be compared with those which create and maintain it, cannot be compared with those by which a few men and women deny the majority their right to be human" (38).

Freire then goes on to describe the oppressors, and defining the class associated with that term. The quote itself is too long to post here (it surpasses a page of very concise text, and is elaborated on later in his the work), but there are a few stand-alone points that are worth reiterating. 

"For [the oppressors], to be is to have and to be the class of the 'have'" (40).  

"The oppressor consciousness tends to transform everything surrounding it into an object of its domination. The earth, property, production, the creations of people, people themselves, time -- everything is reduced to the status of objects at its disposal" (40). 

He then delves into the destructive self-depreciating impact this has on the oppressed:

"If [the oppressed] do not have more, it is because they are incompetent and lazy, and worst of all is their unjustifiable ingratitude towards the "generous gestures" of the dominant class. Precisely because they are 'ungrateful' and 'envious,' the oppressed are regarded as potential enemies who must be watched" (41). 

This is perhaps the root of Marxian alienation; it is this mentality that limits the human spirit and degrades the mind. The oppressed become convinced of their own unfitness. 

Paulo Freire ends this dense chapter on the proper method of liberating the oppressed. He differentiates two different transformations: those that are for the oppressed and those that are with them -- the latter being the valid one, which demands more than mere propaganda and simple populism. The struggle cannot be done for them, rather it must be done with them. It requires pedagogical action.

"They must realize that they are fighting not merely for freedom from hunger [or any other individually specific issue], but for the freedom to create and to construct, to wonder and to venture" (50).  

And perhaps most importantly: 

The oppressed have been destroyed precisely because their situation has reduced them to things. In order to regain their humanity they must cease to be things and fight as men and women. This is a radical requirement. The cannot enter the struggle as objects in order later to become human beings" (50).   

Therefore, with these requirements in mind, it becomes apparent that the struggle demands committed involvement and an elimination of the cultural hegemony that preceded it. This must be done through a radical pedagogy, one that is lead by the oppressed. That is the synopsis of the message in Pedagogy of the Oppressed -- that liberation, the humanization of human aspirations, can only come from the commoners themselves. 

Lincoln, Marx, & the Civil War

The election of 1864 was a bitter one for the wounded United States, having still been severely torn on strict sectional divides. In a strategic effort to garner nonpartisan support, Lincoln attempted to appeal to the splintered Democratic Party where there was a rift between War Democrats and the Copperheads (anti-war Northerners). He ran under the "National Union Party," in an effort to show American unity during a time of severe crisis and chose Andrew Johnson, a War Democrat, as his running mate. They would go on the capture the imagination of the North, winning the election of 1864 in a landslide against former General George B. McClellan who was running on the Democratic ticket.

Shortly after the election victory, an uncanny letter was handed to U.S Ambassador Charles Francis Adams with the instructions being that it be given to newly-elect, Abraham Lincoln. It was from the First International, and it was written by Karl Marx himself, congratulating Lincoln's efforts during the United States' time of war. It was praising and optimistic of the future of labor in the United States. It read:

We congratulate the American people upon your re-election by a large majority. If resistance to the Slave Power was the reserved watchword of your first election, the triumphant war cry of your re-election is Death to Slavery.

Marx goes on to further show eloquently his sincere support and bright anticipation of the workers' future:

While the workingmen, the true political powers of the North, allowed slavery to defile their own republic, while before the Negro, mastered and sold without his concurrence, they boasted it the highest prerogative of the white-skinned laborer to sell himself and choose his own master, they were unable to attain the true freedom of labor, or to support their European brethren in their struggle for emancipation; but this barrier to progress has been swept off by the red sea of civil war. The workingmen of Europe feel sure that, as the American War of Independence initiated a new era of ascendancy for the middle class, so the American Antislavery War will do for the working classes. They consider it an earnest of the epoch to come that it fell to the lot of Abraham Lincoln, the single-minded son of the working class, to lead his country through the matchless struggle for the rescue of an enchained race and the reconstruction of a social world.

It becomes apparent from this writing that Marx understood the dilemma of the laborers in the United States. Divided between racism, a blemish that became more visible during the eve of the Civil War, the working class was unable to mobilize. They lacked the capacity in numbers and in heart - being divided by systemic racial scapegoating that pitted them against their fellowman. Karl Marx even directly mentions this in his book 'Das Capital.' He writes:

In the United States of North America, every independent movement of the workers was paralysed so long as slavery disfigured a part of the Republic. Labour cannot emancipate itself in the white skin where in the black it is branded.

It would be naive for anyone to believe that liberation and class struggle could properly take place with the institution of slavery still intact. Marx fully understood this. He considered it a necessary step in bourgeoisie history for it to be abolished; it being a vital precursor to real proletariat efforts. 

A reply to the commemorative letter from Marx was actually given by Ambassador Adams in January of 1865. Seemingly, Lincoln enjoyed the warm support he received from the First International:

So far as the sentiments expressed by it are personal, they are accepted by [President Lincoln] with a sincere and anxious desire that he may be able to prove himself not unworthy of the confidence which has been recently extended to him by his fellow citizens and by so many of the friends of humanity and progress throughout the world.

The rest of the response goes on to espouse a surprisingly internationalist tone:

Nations do not exist for themselves alone, but to promote the welfare and happiness of mankind by benevolent intercourse and example. It is in this relation that the United States regard their cause in the present conflict with slavery, maintaining insurgence as the cause of human nature, and they derive new encouragements to persevere from the testimony of the workingmen of Europe that the national attitude is favored with their enlightened approval and earnest sympathies.

It was perhaps, in this reply and in the events unfolding, the First International saw a glimmer a hope for the emancipation of the laborers in the United States. It was the start of a new 'epoch,' as they call it, but however it is disheartening to note that Marx wrote little to nothing on the events that would follow during the Reconstruction. He turned his attention elsewhere, abandoning the struggle in the Western Hemisphere and instead turning to a more Eurocentric revolutionary approach - which was perhaps a mistake in and of itself.

Despite this, a portion of Marx's predictions came true. There was indeed a shift in the workers' mentality in the decades after the Civil War. The National Labor Union (NLU), founded in 1866, was the first national labor organization in the United States. Many such organizations formed likewise in the age of railroad tycoons, demanding higher wages and shorter hours. The telling revelation here is that, when compared to the building of the canals during the decades after the turn of the 19th century, the consciousness of the workingman changed. Over a thousand men died from swamp fever during the construction of the Eerie Canal, but little to no backlash followed. Many more worked long and difficult hours on similar projects during that time, but there were no strikes nor was there much violence. This only changed after the institution of slavery was abolished. Marx's optimism was therefore fulfilled, in some respects; The emancipation of slaves also emancipated the rest of the United States - in body and in mind. Frankly, although some initial momentum was lost after Reconstruction ended, it heightened the peoples' sensitivity to their impoverished state with which they responded by organizing - such that would be violently repressed years later during the wealth-concentrated time of the Gilded Age, where money was the utmost desire and politics was the wealthy man's game.

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The First International Letter to Lincoln, and the response, can be found here.
More writing by Marx on the Civil War can be found here.
Also, a letter exchange on this topic in the Fourth International (2009) can be found here.
And finally, here is an interesting article from International Socialist Review where they analyze Lincoln from a Marxist perspective.

The Tragedy of Privatization (II)

* Be sure to read part one first to understand this article in its full context.*

There a two phenomena when addressing private ownership that are absent form Hardin's famous article "The Tragedy of the Commons." Most of them are intertwined with general criticisms of the capitalist structure, but they also specific criticisms of Hardin's theoretical narrative.

For one, there have been innumerable examples of private rightsholders preventing a socially wanted outcome. Because each individual is working for his own pursuits, communal interests are excluded from the profit equation causing inherent inequity. This particular feature of private accumulation of capital and land has been called "The Tragedy of the Anti-Commons" and it is essentially the antithetical variant to Hardin's proposed scenario; when private individual ownership hinders the common good. Private owners essentially hurt the majority for their own individualistic ends, which is an incentive created only by the dollar motive. Such an outcome, I would argue, has been seen in much of the Third World with foreign ownership of resources. Arable land, oftentimes unused, is bought up by foreign investors, which strips the locals from share of their own resources. In Argentina, to take one example, foreign ownership owns about half of all land that can be used to grow crops. I've already talked about this in depth already in another post, so I won't go into it again, but more info on the inequity of land ownership in South American be found here and here.

The nature of this unequal distribution, which hurts the townsfolk of these regions, is a direct product of profit-drive economy and a privatized market structure; because the encouragement to go far and beyond to acquire foreign assets would not exist without it. This, I would argue, is the tragedy; the taking of land for the sole purpose of wealth accumulation and hurting the impoverished regional majority in the process.

Another phenomenon is something that some have called "The Comedy of the Commons," a 'parody' of Hardin's original assumption. It is when all of Hardin's absurd assumptions are found, but the outcome he predicts still does not occur. However, such an example is absent from the real world because his scenario is strictly an abstract concept. It does not pertain to the material; however, there have been examples in the virtual where value has actually increased with an open communal setting.

Wikipedia is a perfect example of this, and any online database or forum that is open to individual input. Anybody can use the information, but its value and database only increases with more communal activity and contribution. This begs the question; Why are individuals driven to contribute to a network or open system when they gain no monetary compensation? It seems that human action is driven by more than profit, especially in academia, where no worth can artificially be put on the pursuit of knowledge. It is this that privatization fails to compensate for; that ideas are invaluable 'commodities.' The downgrading of the humanities and others areas of academia are a perfect testament to this. Once you reach the area of intellectual thought, the price-determining element of capitalism seemingly cannot put a monetary number on it. This most certainly dissuades individuals wishing to pursue these respective fields, because now they are forced to fundamentally reshape their aspirations to be paid a better wage to live. I find this immensely limiting to the human spirit and mind, and it is incredibly dehumanizing to an intolerable degree.

A general article on the Tragedy of the Anti-Commons can be found here. It discusses the under-usage of resources with many private owners, completely undermining the "efficiency of the market." And here is an informative video on what motivates us, which especially pertains to academia.

The Spanish Revolutionary Spirit

As eloquently described by George Orwell in 'Homage to Catalonia:'

"...It was the first time that I had ever been in a town where the working class was in the saddle. Practically every building of any size had been seized by the workers and was draped with red flags or with the red and black flag of the Anarchists; every wall was scrawled with the hammer and sickle and with the initials of the revolutionary parties; almost every church had been gutted and its images burnt. Churches here and there were being sytematically demolished by gangs of workmen. Every shop and café had an inscription saying that it had been collectivized; even the bootblacks had been collectivized and their boxes painted red and black. Waiters and shop-walkers looked you in the face and treated you as an equal. Servile and even ceremonial forms of speech had temporarily disappeared. Nobody said 'Señor' or 'Don' or even 'Usted'; everyone called everyone else 'Comrade' and 'Thou,' and said 'Salud!' instead of 'Buenos dias.'" 

"...There were no private motor cars, they had all been commandeered, and all the trams and the taxis and much of the other transport were painted red and black. The revolutionary posters were everywhere, flaming from the walls in clean reds and blues that made the few remaining advertisements look like daubs of mud. Down the Ramblas, the wide central artery of the town where crowds of people streamed constantly to and fro, and the loud-speakers were bellowing revolutionary songs all day and far into the night. And it was the aspect of the crowds tha was queerest thing of all. In outward appearance it was a town in which the wealthy classes had practically ceased to exist. Except for a small umber of women and foreigners there were no 'well-dressed' people at all. Practically everyone wore rough working-class clothes, or blue overalls or some variant of the militia uniform. All this was queer and moving. There was much was much in it that I did not understand, in some ways I did not even like it, but I recognized it immediately as a state of affairs worth fighting for. Also I believed that things were as they appeared, that this was really a workers' State.." 

Info on worker's self-management in the public transportation system of anarchist Catalonia can be found here. Also more general info on the Spanish anarchist experiment can be found by clicking on this link, here.

The Credit Illusion

It seems that the United States has grown economically, for the most part, throughout all of its history. And for much of its history, this growth was accompanied by corresponding increases in real wages. It was assumed that with economic growth, the purchasing power of your wage for all your hard work would pay off and it would increase with time; it was part of the American Dream.

Ever since the 60s, real wages have remained mostly stagnant  - even taking a downward trend in the past year. Although maybe our nominal wages have increased, our real wages have remained the same and even more alarming the purchasing power of income has plummeted. Even worse so, the price of food and energy has gone up in recent years and we're still working the same amount of hours, sometimes more. Where is the improvement and, most importantly, why is the middle class shrinking? Although all this issues would usually mean a rise in unionization amongst workers and rallies to demand for higher wages/benefits and perhaps more equal distribution of wealth, as happened during the Great Depression and the 1910s, union membership has actually paradoxically decreased in the last 50 years.The Bureau of Labor Statistics reports that only 6.9% of workers in the private sector are union members. 

Although I've oftentimes heard the right demonize unions as dangerous to the delicate fabric of a free market, and oftentimes advocate enacting legislation to curb their power, there is no question the decrease in union membership has had a direct effect on the concentration of wealth in the United States and the middle class share of aggregate income. Here is are the results that were found by Karla Waters and David Madland of the at the Center for American Progress (CAP):

Now, before I get to the credit illusion, which is likely the culprit, first we have to dispel a few arguments against the stagnation of real wages in the United States - three of them specifically I want to talk about;

Q: Well, maybe workers' productivity has not increased and their real wages are a direct result of a stagnation in their output?

This cannot be true, hourly outputs per workers have actually been steadily increasing. This is based on information from the Bureau of Labor Statistics and Bureau of Economic Analysis; there is indeed a growing gap between output and real wages: 

Q: The average income per household has gone up, isn't that inconsistent in the stagnation of real wages? 

No, it is not. The Second Wave of feminism, which started in the early 60s, brought many more women to the workforce. It's not that the workers are bringing more real income home, it's that more people are working in the household. In an article in the journal article by Rebecca A. Clay of the American Psychological Association:

In 1940, according to the Employment Policy Foundation's Center for Work and Family Balance, 66 percent of working households consisted of single-earner married couples. By 2000, that percentage had dropped to less than 25 percent. By 2030, the center estimates, a mere 17 percent of households will conform to the traditional "Ozzie and Harriet" model.

It is this phenomenon that has caused an increase in average income per household - there are now many more new sources income per family, but that doesn't necessarily tell us anything about the average real wage for each individual bringing it home.

Q: You are not adding benefits to the real wage. The Bureau of Labor statistics has shown there has been a upward trend in real compensation per hour since the 1940s. Does this not explain the stagnation of wages?

It is true there has been a steady increase of real compensation (wages + benefits) per hour, below is a graph taken from the Bureau of Labor Statistics;

However, we have to look at this data with the increase in workers' output rather than by itself. Since the year 2000, there has been especially a disconnect between real compensation per hour and output. 

But this disconnect in average hourly compensation and productivity started far before the 00s; it actually began in the late 70s and got progressively worse since the Reagan years. Below is a graph from the Economic Policy Institute;

And although this graph does not show the growing gap between productivity and average hourly compensation since '07, it has gotten much worse since then. So yes, average hourly compensation has been increasing but not as nearly as the same rate as productivity has. 

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Now, for the topic of this post which may actually be shorter than the background information; Why aren't the workers mobilizing and demanding higher wages as they did in the first half of the 20th century? There are many reasons; one being the destruction of unionism during the Reagan years and another being the of spending money you don't actually have; the illusion of credit. Ever since real wages have become stagnant and the sharp decline of unionization in the 80s, there has been a sharp increase in household debt in the United States, which actually dissuades workers from demanding higher wages in some respects. It is this exploitative dichotomy that has kept corporate profits high and wages low; all in the guise of "buy now, pay later!" and 'economic growth.' 

Below is a graph of household debt versus persona savings taken from 'The Basis Point,' a blog by mortgage banker Julian Hebron:  

Here is a chart taken from the Federal Reserve Bank of San Francisco. It was a study pertaining to the entire United States:

Why is the middle class shrinking and being anesthetized by credit? It is this type of behavior that drives society outside of its means and gives it working class families the false perception that their wages are increases; maybe nominally they are, which is deceptive in itself, but the main hurdle we must overcome is realizing the distraction of mass consumption by credit going forward. This requires questioning this entire system which has, for the most part, become based on credit and money yet to be paid. I highly fear the collapse of this 'credit culture' and the shaky foundation it is built on; And perhaps worst of all, we are unjustly condemning future posterity to debt bondage. What happened during the crisis of 2008 we may find to become a staple in the modern 21st century economic model; and since debt wasn't properly liquidated, worse may be yet to come. The functionality of such an illusionary market method I am highly skeptical of, and its outcome will most definitely hurt the current mainstream liberal capitalist model. 

Free Trade in Death

The United States is often credited with reaching global economic status with free trade; that laissez faire capitalism and open trade with all nations brought us to modernity.

In actuality though, protectionism was vital in establishing American economic dominance and hegemony. The American System first promulgated by Henry Clay was critical of the British variant of economic thought and advocated high tariffs, a central bank, and federal subsidization of internal improvements (i.e canals, schooling, roads) amongst other things. It was built on Hamiltonian principles and the infant industry argument - that smaller industries must be protected from larger foreign competitors because they do not have the monetary means to compete. 

Usually this put regional interests at end and created a bitter American divide - the North wanted high tariffs and subsidization and the South wanted complete free trade to be able to sell its goods (predominately cotton) to Britain and other foreign markets. It was one of the main causes of the Civil War; the clash of economic ideologies. South's dependence on foreign markets was so strong that it firmly believed it could fully sustain itself without the North's industry. The "King Cotton" ideology was used as a slogan to convince Southern public opinion; Southern legislatures promoted the message that since Britain's and France's dependence on Southern cotton for their textile mills was so strong, they would be forced to aid them in their struggle of secession. As the Union began blocking Southern seaports, this rallying call proved to be unfounded - foreign markets just found elsewhere to purchase cotton. The British Empire turned back to its colonies for cotton markets. India increased its cotton production by 700% and Egypt did likewise. The South was severely crippled and took many decades to recover. In addition, their laissez faire ideology was downgraded. The Republican (former Whig) American System became the dominant school of economic thought.

Average tariffs percentages were at their highest from 1865 - 1900; when the United States underwent its second Industrial Revolution. Despite the predictions of the powers of Europe, who believed the American Experiment would never recuperate from the Civil War, the United States underwent the one of the greatest economic growth periods in its history and established itself as a great power and then ultimately, much later, as a superpower. The Gilded Age ensued, which was arguable one of the most corporate-concentrated periods of power in U.S history; where the pervading ideology was that the wealthy were the "best of society" and the poor "did not work hard enough." It was this concept that gave rise to the illusion of the American Dream and dissuaded the working class from mobilizing, in some respects. It worked in the interests of the wealthy most definitely. 

But aside from that, in looking at today's economic situation; why are we imposing free trade on other developing nations if we did not prosper from it ourselves when we were emerging as a power? The IMF and its associate organizations parade around promoting free trade and pressuring other nations to open to foreign capital only to further fill the pockets of the Western ruling class, and further impoverishing those not in high positions of power. 

In South America, locals have been exploited for over a century by foreign ownership of land. Many of the legislatures have been complicit with the policies of the United States and the West and allowed for large corporate entities to buy out land; usually unused and to save for "later use." Is this the benefit of free trade? The disproportionate ownership of global assets by Western powers? To make matters worse, a failure to allow foreign capital can have disastrous consequences. Many Latin American countries had coups staged, usually led by American interests, to halt any redistributing of land to the peasants. It is apparent that the First World depends on the Third World's impoverished state to maintain their hegemony and economic superiority; they want these impoverished nations to remain dependent on their capital and investment. Well-calculated and planned underdevelopment, as its called. 

But it seems that the leftist streak in Latin America may be changing this, hopefully soon. Some Latin American countries have already enacted legislation to redistribute unused private land to the poor, such as Hugo Chavez's Plan Zamora in Venezuela. As of now, much of Latin American land remains in the hands of foreign investors. In Uruguay, the 2000 census showed that 17 percent of its arable land was foreign-owned, but it is predicted to be 20 to 30 percent today.  In Brazil, the Brazilian Institute for Colonization and Agrarian Reform estimates that 4.5 million hectares are owned by foreigners - but this figure is low and it may be twice as large, according to government officials. Argentinian authorities place its national estimates at 17 million hectares, about 10 percent of Argentinian territory, and about half of all arable land. 

Moreover, sometimes when the land is returned back to "local hands" they're heavily concentrated. The Landless Worker's Movement in Brazil estimates, according to 1996 census records, that just 3% of the populations owns two-thirds of all arable land in Brazil. This only disempowers the majority and furthers economic inequality. According to World Development Indicators [2000] 10% of the population owns 47.6% of the wealth in Brazil. A study done by the Instituto de Pesquisa Econômica Aplicada (Institute of Applied Economic Research or IPEA) paints a even grimer picture "...in São Paulo the wealthiest 10% had 73.4% of while in Rio they retained 62.9% and in Salvador 67%." A product of unequal land distribution caused by free trade and neo-colonialism, it seems.

The moral of the story; modern free trade is not fair trade. Business clusters that congregate around areas of high GDP are inherently exploitative of poorer regions, taking their land disproportionately. The last things these emerging nations want is foreign capital owning their assets and preventing them from prospering. This forced underdevelopment is imposed through laissez faire legislation, and kept in place by multiple transnational organizations that preach the same ideology. It is dangerous to the self-determination of peoples and their long-term prosperity. It is exploitative by nature, but it seems that some free market fundamentalists just cannot abandon their distorted dream. And then their obscurities are imposed on the rest of us, with disastrous global economic consequences. 

More info on the land crisis of Latin American can be found here and here. Statistics and general info on Brazil's widening wealth gap and poverty crisis can be found here.

General Strike on May Day!

You can find more posters here.