Category: Articles

Articles

  • COVID-19 and Imperial Value: Commodity Chains, Global Monopolies, and Catastrophe Capitalism

    “COVID-19 and Imperial Value: Commodity Chains, Global Monopolies, and Catastrophe Capitalism,” International Critical Thought (forthcoming vol. 12, no. 3 [September 2022], 16 pp. 

  • The Return of the Dialectics of Nature

    The Return of the Dialectics of Nature,” Historical Materialism (forthcoming 2022, Isaac and Tamara Deutscher Memorial Lecture), 10,000 words.

     

  • Henri Lefebvre’s Conception of Nature-Society in the Revoltuonary Project of Autogeston

    Henri Lefebvre’s Conception of Nature-Society in the Revoltuonary Project of Autogeston” (coauthered with Brian M. Napoletano, Pedro Urquijo, and Brett Clark—Foster listed fourth), Dialogues in Human Geography (prepublished online March 29, 2022), 20 pp.

    Henri Lefebvre’s intricate material-dialectical approach to the nature-society problematic, taken together with his advocacy of a praxis oriented to total transformation from the ground up through autogestion, offers a unified, critical, and dialectical approach to political ecology. Unfortunately, his work in these areas has too often been interpreted as divided and fragmentary, splitting his radical analysis of the production of space-time from his critical praxis related to autogestion. We offer a corrective to this by elaborating briefly on his use of Marx’s material-dialectical approach, outlining how Lefebvre brings this method to bear on the nature-society problematic, and how his theorization of autogestion points to a radical praxis aimed at overcoming the social-ecological contradictions of capital. His engagement with Marx’s theory of metabolic rift, and his advocacy of a radical project of autogestion as part of the critique of everyday life, serve to place the underlying issue of alienation in spatial terms, offering geography a transformative perspective that avoids positing closed systems and attempting to exhaust the various meanings assigned to nature. In this, Lefebvre demonstrates how the nature-society problematic overflows issues of ontological framing and language, calling for a unity of radical theory and practice to overcome the separations.

  • Lukács and the Tragedy of Revolution

    Lukács and the Tragedy of Revolution

    Lukács and the Tragedy of Revolution,” Monthly Review 73, no. 9 (February 2022), pp. 1-12.

    In his 20s and early 30s, Georg Lukács emerged as one of Europe’s towering intellectuals, the author of the two-volume A History of the Development of Modern Drama (1908, 1911), Soul and Form (1910), Aesthetic Culture (1913), The Theory of the Novel(1916), and Heidelberg Aesthetics (1916–18). While Lukács’s primary field was aesthetics, the philosophical basis of his thought was neo-Kantian, dividing subject and object, facts and values, empirical reality and utopian free will, and society and nature. Writing in the years leading up to and including the First World War, Lukács was torn by what he perceived as a contradiction between a dominant world of vulgarity, decadence, and inauthenticity, versus a merely potential alternative lifeworld of authenticity. Although this contradiction was mediated in the cultural objectifications of art, it could not be transcended on the plane of historical practice. Politically and ethically, Lukács in these years adhered to a kind of revolutionary Dostoevskian-Tolstoyan existentialism.1 Though critical of German social democracy from the left, the dominant motif in his thought was one of tragedy borne of neo-Kantian dualism, and the perceived impossibility of revolution, constituting a tragedy of inaction. The only authentic individual actions appeared to be the recourse to religion or suicide.2

    This tragedy of inaction, as perceived by Lukács, was shattered by the Russian Revolution in 1917. Suddenly, revolutionary action, which seemed so far removed before, was conceivable. This created a period of intense internal conflict within Lukács, evident particularly in his essays “Bolshevism as an Ethical Problem” (1918) and “Tactics and Ethics” (1919). In the first of these two essays, he rejected Bolshevism on ethical grounds, as still representing a tragedy of inaction. In the second, which announced his conversion to communism, he embraced Bolshevism on ethical grounds that were, if anything, more poignantly tragic, but taking the form of a tragedy of action.3 This reflected Lukács’s recognition of the acute problems of the individual faced with the challenge posed by both action and inaction in a revolutionary situation. His solution to this problem in 1919 was to foreshadow his great work of Hegelian-Marxian dialectical synthesis, History and Class Consciousness (1923), in which he sought to transcend his previous neo-Kantian frame based on a theory of the revolutionary consciousness of the proletariat.4

    “Bolshevism as an Ethical Problem” embodies the tragic dilemma that Lukács, still embracing both neo-Kantian epistemology and a radical Tolstoyan commitment to nonviolence, found himself in when faced with the reality of the October Revolution. Although sympathizing with the Bolshevik cause, he found himself confronted by what he called the “metaphysical assumption that good can issue from evil.” Here, he referred to Fyodor Dostoevsky’s Crime and Punishment regarding the question of murder, even if, as Raskolnikov in the novel misguidedly tells himself, it is for a good cause. Hence, for Lukács writing in 1918, “at the root of Bolshevism [is] an insoluble ethical dilemma.” “Democracy,” or the pursuit of change through legal forms, requires “only superhuman self-abnegation and self-sacrifice,” since one must in the end lay aside one’s convictions and surrender to the result, running “the risk that most of humanity is disinterested in the new world.” In contrast, “Bolshevism’s moral problem” lies deeper since it is based on action. Inaction in the face of revolution seems to avoid the full severity of the ethical dilemma that confronts anyone who chooses to act. Lukács concludes that one should not bloody one’s hands through revolutionary action, particularly given an uncertain future. Tyranny and class rule, he argues, cannot be justified—even if introduced by the proletariat or the party with the aim of combating an oppressive tyranny and regressive class rule, based on the mere faith that this will negate “the endless, senseless chain of struggle.”5

    A dramatic instance of the dialectic of continuity and discontinuity can be seen in a comparison of the argument of “Bolshevism as an Ethical Problem,” which Lukács describes as “my last hesitations before making my final, irrevocable choice,” with that of “Tactics and Ethics,” written only a few months later between January and March 1919.6 In the latter essay, he publicly declared his commitment to the revolutionary cause after joining the Hungarian Communist Party in December 1918 (at a time when there were less than one hundred members), inverting his earlier position on the ethics of Bolshevism.7 Rather than simply rejecting his previous argument on ethics and revolution, he sought to transcend it dialectically, “in the direction of praxis.”8

    The same ethical dilemma as before was in many ways still evident, but what had formerly been, for Lukács, the tragedy of inaction now took the form of the tragedy of action. However, the shift in his underlying theoretical position could not have been more different. He first clearly indicated this by arguing that “the Marxist theory of class struggle, which in this respect is wholly derived from [G. W. F.] Hegel’s conceptual system, changes the transcendent objective into an immanent one; the class struggle of the proletariat is at once the objective itself and its realization.”9 This gave rise, in Lukács’s conception, to an objective historico-philosophical tendency (or logic of history) that could be directly ascertained by a revolutionary class consciousness—an argument that he developed fully in History and Class Consciousness.

    Indeed, for Lukács—who retained much of the neo-Kantian problematic after December 1918 and throughout his life, coexisting inharmoniously with his Hegelian-Marxian synthesis—the ethical problem of individual action/inaction remained, if now seen from the opposite standpoint from what he presented only months before in “Bolshevism as an Ethical Problem.” Hence, an individual was now called on to accept the need for the moral sacrifice inherent in revolutionary action in line with class-based historico-philosophical necessity. Replacing his previous Tolstoyan pacificism, then, was an ethic that openly acknowledged the necessity for sin, in the form of acts of violence and “murder,” even if on the field of battle.10

    Inaction was now seen as carrying an ultimate moral responsibility just as great as action, since standing by and acquiescing could only mean the support of the dominant reality. “The individual’s conscience and sense of responsibility,” Lukács wrote, “are confronted with the postulate that he must act as if on his action or inaction depended the changing of the world’s destiny.”11 Indeed, it was proletarian revolutionary action aimed at the realization of the objective potential of the class, including its promotion in the end of classlessness, that carried the entire moral force dedicated to “the changing of the world’s destiny.”

    Nevertheless, tragedy at the individual ethical level was inherent in the dedication to struggle, rather than the mystic’s mere surrender.12 Lukács reintroduced the classic issue seen, for example, in Sophocles’s Antigone—that of “a primary ethic (obligation toward institutions) and a secondary ethic (obligation toward the soul).” The primacy of the secondary (second) ethic over the primary (first) ethic, he argued, “always takes on a peculiar dialectical complexity when the soul is not sufficient unto itself but is involved in mankind—as in the case of political man, of the revolutionary. Here, if the soul is to be saved, the soul must be sacrificed: starting from a mystical ethic one is forced to become a brutal Realpolitiker and to violate the absolute commandment ‘Thou shalt not kill’ which entails no obligations to institutions.”13

    Referring to the novels of Boris Savinkov, a terrorist leader in the Russian Revolution of 1905—viewing these novels as “documents” rather than works of art—Lukács indicated that, according to Savinkov, “the ultimate moral basis of the terrorist’s act” was “the sacrifice for his brethren, not only of his life, but also of his purity, his morals, his very soul.”14 The point was that an immoral deed in terms of the primary ethic could turn out in terms of the secondary ethic, when combined with sacrifice for the collective cause, to be “truly—and tragically—moral.” Not content to leave matters there, in the “Luciferic” form of the second ethic represented by clearly terrorist action, Lukács ends his essay by juxtaposing this to the quite different heroine’s act represented in the biblical tradition by Judith.15 Thus, it was possible, he stated, “to express this sense of the most profound human tragedy in the incomparably beautiful words of [Friedrich] Hebbel’s Judith: ‘Even if God had placed sin between me and the deed enjoined upon me—who am I to be able to escape it?’”16

    It is in Hebbel’s Judith that we find the aesthetic key to the sense of “profound human tragedy” that accompanied Lukács’s sudden conversion to revolutionary praxis. Only months after he wrote “Tactics and Ethics,” during the short-lived Hungarian Soviet Republic in 1919, when Lukács was deputy minister (People’s Commissar of Education and Culture), what was called the “ethical group” within the party leadership gathered around him and discussed Hebbel’s Judith and Dostoevsky’s Grand Inquisitor (from the Brothers Karamazov) in the residential hall of the House of the Soviet, presumably talking late into the night. As communist writer József Lengyel indicated in his memoirs, it was determined in these discussions that “we communists should take the sins of the world upon ourselves, so that we may be capable of saving the world. And why should we take the sins of the world upon us? Once again there was a very ‘clear’ answer, one taken from Hebbel’s Judith.… Just as God could order Judith to kill Holophernes—that is, to commit a sin—so may he order the communists to destroy the bourgeoisie, both metaphorically and physically.”17

    The Sword of Judith and Lukács’s Second Ethic

    As Walter Benjamin wrote in his Illuminations: “The value of information does not survive the moment in which it was new. It lives only at that moment; it has to surrender itself completely and explain itself to it without losing any time. A story is different. It does not expend itself. It preserves and concentrates its strength and is capable of releasing it even after a long time.”18

    The Book of Judith is one of several deuterocanonical books included in the Septuagint (Greek Old Testament) and the Old Testament of both the Catholic Bible and the Eastern Orthodox Bible, but excluded from the Hebrew Old Testament canon, while Protestants assign it to the Apocrypha. Nevertheless, it is one of the most famous biblical stories. Over the last two millennia, since the Book of Judith first appeared in c. 135–78 BCE, the Judith story has been the subject of sculptors, painters, playwrights, and poets. The famous sword or scimitar with which Judith beheaded the general Holofernes is forever associated with her.

    The Book of Judith—generally believed to be ahistorical—focuses on Nebuchadnezzar, king of the Assyrians, sending his general Holofernes on a mission to punish those who did not support his war on Arphaxad, king of the Medes. All nations submit to Holofernes except the Hebrews, with the Jews of Bethulia forced to block the path of the Assyrian army to the temple in Jerusalem. The brutal Holofernes places a siege on the city, cutting off their water supplies. The population of the city is weakened and demoralized. At this point, the beautiful widow Judith prays to God and decides to take matters into her own hands. She adorns herself so that she is “dressed to kill,” promising to the population of Bethulia that all will be decided in five days. She leaves for the Assyrian camp accompanied only by her own maid, determined to kill Holofernes. God meanwhile enhances her beauty. Judith, who is sharp-witted, cleverly deceives Holofernes about her true interests and intentions, with double-edged statements. The story is filled with sexual tensions. On the fourth night, Holofernes invites Judith to his tent to seduce her but ends up drinking so much wine that he collapses on the bed. Judith then cuts off his head with his own sword and puts the head in a bag, also seizing the canopy on his bed. Upon her return to Bethulia, Achior the Ammonite is converted to Judaism on recognizing Holofernes’s head. The Jews, following Judith’s advice, hang Holofernes’s head on the city walls and take the offensive against the Assyrians who are dismayed at finding the headless body of their general, resulting in a Jewish victory. Judith is praised and lives as a widow until the age of 105. Her death is mourned by all of Israel.19

    In contrast, Hebbel’s Judith, written in 1840, gives to the tale of Judith a psychological as well as moral character, focusing on the questions of sin, human freedom, fate, redemption, and the absolute. Although a widow, Judith remains a virgin, as her extraordinary beauty had overwhelmed her husband and driven him mad. He died six months into the marriage after returning from working in the field, without their having consummated their marriage, leaving her entirely chaste. Hebbel then adds Holofernes’s brutal rape of Judith (along with her repressed sexuality) to the story, complicating her motivations, which in the moment of carrying out the deed are animated more by revenge than by the liberation of her people and the carrying out of God’s will. Confronting her maid with the reality of the rape and Holofernes’s sleeping body, she exclaims, “I will be repaid for the annihilation which I suffered in his arms; now that I will avenge myself for his brutal attack on my humanity.… If I have forfeited in my degradation the right to exist, I will win it back with this sword.… See, Mirza, there lies his head. Ha, Holofernes, dost thou respect me now?”20

    On arriving back in Bethulia, Judith confronts a population that through thirst and hunger has fallen to the brink of degradation, with one mother suspected of having already eaten her own child. Forbidding the people from putting Holofernes’s head on a pike—a warlike practice of the time, and one that Holofernes in his brutal psychology would have undoubtedly wanted—Judith has it ignominiously buried in the ground. She insists that it no longer takes courage to defeat an enemy that has already lost. Upon being praised by the people of the city, she elicits, in the closing scene, a promise that they will kill her if she so requests, fearing a pregnancy that would result in her giving birth to the evil Holofernes’s child. Hebbel’s Judith emerges, if possible, as an even greater heroine than in the actual biblical story, having so clearly taken the sins of the world upon herself in carrying out her deed.21

    It is in the passage from Hebbel’s Judith that Lukács described as “incomparably beautiful,” quoted here at greater length, that Judith first resolves to carry out the murder of Holofernes, prior to setting out for the Assyrian camp:

    I thank Thee, I thank Thee, Lord! Thou makest clear mine eyes. In Thy sight the impure becomes pure. If Thou didst place a sin between me and my deed, who am I that I should contend with Thee, that I should draw back from Thee? Is not my deed worth as much as it costs me? May I love my honor, my immaculate body more than Thee? Oh the knot within me is untied! Thou madest me beautiful; now I know wherefore. Thou didst deny me a child; now I feel why and rejoice that I have not to love my own self in another. What I formerly held a curse, now appears to me a blessing! (She steps before a mirror.) I greet thee, my likeness! For shame, cheeks, that you do not yet glow! Is the way from you to my heart so long? Eyes, I praise you; you have drunk fire and are intoxicated. Poor mouth, I do not take it ill of thee that thou art pale; thou shalt kiss Horror. Holofernes, all is thine; I have no longer share in it. I have withdrawn to the inmost depths of my soul. Take it, but tremble when thou hast it. I shall emerge at an hour when thou dost not expect it, like a sword from the scabbard, and pay myself with thy life. If I must kiss thee, I will imagine that it is with poisoned lips; if I embrace thee, I will think I am strangling thee. God, let him commit atrocities before my eyes, bloody atrocities, but save me from seeing aught good in him!22

    Lukács referred to the moral issue that he drew from Hebbel’s Judith as “the ethical conflict, of how it is possible to act unethically and yet rightly.”23 He devoted a chapter of his A History of the Development of Modern Drama to Hebbel’s tragedies, examining, in the words of Margit Koves, how “Hebbel’s protagonists, driven by inner forces clash with the moral order and institutions of their time.”24 In his plays, Hebbel’s greatest heroines, Mariamne of Herod and Mariamne and Judith, were women who found themselves in conflict with male protagonists and exhibited, according to Lukács, the conflicts associated with the “freedom of the will” and the “ethical world order” when confronted with what Johann Gottlieb Fichte in his Characteristics of the Present Age (1806) called “the Age of absolute indifference towards all truth…the State of complete sinfulness.”25

    Hebbel’s brilliance in his tragedies (particularly Herod and Mariamne and Gyges and His Ring) was that he was already pointing to the “Nora” problem of Henrik Ibsen’s famous play, and potentially toward the liberation of women. But rather than seeing this as a historical problem subject to change, Hebbel presented it as a universal tragic problem, and thus remained conservative in outlook.26 Here, it is noteworthy that Bertolt Brecht—who, like Lukács, was influenced by Hebbel—incorporated the Judith story (and the conflict between individual ethics and social forms) in a number of his plays: The Bible (written in 1914, when he was 15), Baal(1918), The Jewish Wife (a vignette, part of the play Fear and Misery of the Third Reich [1938]), and The Judith of Shimoda (1940).27 For Lukács himself, It was precisely his historical and dialectical approach to such ethical problems that drew him toward communism. As he explained, “My interest in ethics led me to the revolution.”28

    The Social Ontology of Ethics

    “It is always dangerous, if not arbitrary,” István Mészáros wrote in Lukács’s Concept of Dialectic, “to parcel up philosophers as ‘the young X’ and ‘the mature X’ for sake of opposing one parcel to another.… Even a genuine conversion from ‘idealism’ to ‘materialism’ does not necessarily imply a radical rejection or repression of the original synthesizing idea.… A striking case in point in the twentieth century is Georg Lukács. His post-idealist works reveal in his approach to all major problems the same structure of thought, even though he had genuinely left behind his original idealistic positions.”29

    In this sense, it is often more difficult to perceive the essential continuity in the structure of Lukács’s thought than the discontinuities, recognizing that there must always remain a dialectical relation between the two, no matter how great the theoretical transformation. Although Lukács is best known for his Hegelian-Marxist synthesis regarding proletarian class consciousness in History and Class Consciousness, which transcended his early neo-Kantian phase and its individualistic ethic, many of the issues of his earlier years remained and took on a transformed relationship in the development of his Marxian views. This can be seen in his struggles over the dialectics of nature, which governed his later excursions into social ontology.30 But it can also be seen in his continuing attempts (not unrelated to his ontology) to define an ethics of the relation of “self to selfhood,” that is, the individual’s active connection to suprahistorical forces (totality)—a concern that permeated all of his thought.31 If the revolutionary proletariat represented a de-reified class consciousness, the role of the intellectual (and the party) was to ease the proletarian’s way into this by focusing on the “consciousness of consciousness,” connecting individual, class, and totality.32

    In Lukács’s focus on dialectical objectivity, there is also always a struggle with what he considered “bad objectivity,” subsuming the subject. Related to this, however, was a kind of non-dialectical duality in his thought, such that he never fully transcended the subject-object problem of epistemology that animated his deepest inquiries. It was this, in fact, that eventually propelled him to seek the answer in a deeper, ontological perspective.33 As he wrote late in life: “Society is an extraordinary complex of complexes, in which there are two opposite poles. On the one hand there is the totality of society, which ultimately determines the interactions of the individual complexes, and on the other there is the complex individual man, who constitutes an irreducible minimal unity within the process. In this process, man finally becomes man;…the aspect of freedom acquires a significance which is ever greater, ever more comprehensive, embracing the whole of humanity.”34 It was this emphasis on what he was to call “the genuinely independent personality, whose possibility had been created by previous economic development,” that was central to Lukács’s philosophy, and determined his whole conception of an ethics based on the individual as a “irreducible minimal unity” existing in a mediated relation to the historical totality.35

    For Lukács in “Tactics and Ethics,” “ethics relate to the individual” but is mediated by class, giving rise to a historically generated totality.36 This focus on the “complex of the individual” remained crucial to his thought and governed his overall conception of ethics. The stakes in the consideration of the ethical as the primary mediation of the individual and society could not be higher. “Ethics,” he wrote in his Aesthetics, “is the crucial field of the fundamental, all-deciding struggle between this-worldliness and other-worldliness, of the real superseding/preserving transformation of human particularity.”37 Insofar as the genuine individual was a historical product, it was necessary, in developing an ethics in historical-materialist terms, to ground this in the historical process in its deepest sense—that is, in a social ontology. Thus, we find Lukács devoting himself to writing an Ethics (originally entitled The Place of Ethics in the System of Human Activities) at the end of his life, following the completion of his Aesthetics in 1962. He decided that this needed to be preceded by (grounded in) an ontological introduction, which quickly developed into a lengthy work, The Ontology of Social Being (and the Prolegomena to a Social Ontology attached to it), without the planned work on Ethics ever being written.38 The explanation for this, as Cornel West observes, is that Lukács sought all along to provide a new objectivist (or neo-foundationalist) basis for ethics. In this he failed to take his cue from Karl Marx himself, who, untroubled with accusations of relativism, saw ethics as thoroughly historical, arising from the class struggle itself.39

    However, Lukács’s need to ground his ethics in ontology also had to do with his long struggle to overcome what he saw as the defects of History and Class Consciousness, partly due to its still neo-Kantian epistemological hesitations before a dialectic of nature. This was not conceived primarily in Frederick Engels’s sense, which Lukács had criticized, but in what he came to see as Marx’s sense of the metabolism of labor with nature, as the objective basis of human possibility as well as of alienation under capitalism’s second-order mediations. Reconstructing historical materialism thus meant reconstructing it on the basis of the social ontology of labor as the ground of social being.

    Here, we are presented with another anomaly in Lukács, arising from the nature of his situation, compelling him to write an Ethics without having first written a Politics (a philosophy of right), despite their inextricable connection in the historical-materialist view—somehow conceiving it as possible to transcend this objective necessity. His proposed Ethics was to arise from his social ontology of labor, mediating the complexes of the individual and the totality, apparently without any systematic critique of the state, which in Lukács’s case would have necessarily meant engaging with the state of “actually existing socialism.”

    In many ways, the tragedy of Lukács’s intellectual life was that explicit politics and a far-reaching critique of the state became impossible for him, evident in the fate of his famous work, the Blum Theses, dealing with the problem of a democratic transition in a proletarian revolution, which was suppressed by the party.40 Although Lukács continued to work on political issues, he was unable in his circumstances to address in a coherent way the theory of the state. In the last decade and a half of his life—following the suppression of the 1956 Hungarian Revolution, in which he had played a significant role as minister of culture in Imre Nagy’s extremely short-lived government (crushed by an invasion from the Soviet Union)—he refrained from politics and even political critique, placing an enormous obstacle in the way of his planned Ethics.41

    Nevertheless, it was characteristic of Lukács’s approach to see ethics as partly autonomous from politics, having deeper ontological roots in the “complex of the individual.” This was signaled early on by his contention in “Tactics and Ethics” that “Hegel’s system is devoid of ethics,” a position that only made sense (even if one were to ignore Hegel’s System of Ethical Life) if one were to see ethics, as Lukács did at that time, as rooted ultimately in the individual. Such a view excluded Hegel’s attempt in The Philosophy of Right to portray the dialectics of ethical life as an objective phenomenon based in the family, civil society, and the state.42Lukács was later to rectify this judgment on Hegel in the chapter on ethics in The Young Hegel, where he presented a sophisticated mapping of Hegel’s ethics.43 Here, he focused, characteristically, on the notion of “tragedy in the realm of the ethical,” presented by Hegel in his early essay on Natural Law. “Tragedy,” Hegel wrote in relation to Aeschylus’s Eumenides (the last part of the Oresteia or Orestes cycle), “consists in this, that ethical nature segregates its inorganic nature (in order not to become embroiled in it), as a fate, and places it outside itself; and by acknowledging this fate in the struggle against it, ethical nature is reconciled with the Divine being as the unity of both.”44 It was this conception of ethics as the reconciliation of the individual and the absolute in the context of the individual’s struggle against “externalizing/alienating” reality (a concept that he also took from Hegel) that forced Lukács to move back to social ontology, rooted in labor. In this way, “the tragedy in the realm of the ethical” becomes revealed as “nothing but the contradictory path of human progress in the history of class societies—a great and real tragedy.”45

    In his various aesthetic analyses, Lukács was highly critical of the growing tendency of cultural figures, with the failure of the 1848 revolution in Germany, to “replace the objective portrayal of world-historical conflict by the subjective insight of the tragic hero into the tragic necessity of his fate”—a regressive tendency he found, for example, in the later work of Hebbel. Such an approach encouraged a reversion to the static notion of the “condition humaine” (human condition) and reconciliation with a decadent reality, leading to the impoverishment of tragedy.46 Indeed, Hebbel himself had moved toward a philosophy of “pan-tragism,” meaning that “each ‘tragedy’ in history had to be acknowledged as an ‘eternal’ decree of fate,” the liquidation of the Hegelian concept of historical progress and the growth of irrationalism.47 It was thus the failure of the 1848 revolution in Germany that for Lukács was the basis for the growing irrationalism within much of German culture leading to the tragedy of the 1930s, which he was to dissect in The Destruction of Reason.

    Revolution represented for Lukács the realm of the objectively possible. He saw the tragedy of action associated with his second ethic as a necessary element in a movement toward greater human freedom synonymous with historical necessity. One can easily read his brilliant, short book on Lenin: A Study of the Unity of His Thought (1924) and the description there of “revolutionary Realpolitik,” and see in Lenin, through Lukács’s eyes, a world-historical figure who took on the burden of Judith: “Even if God has placed sin between me and the deed enjoined upon me—whom am I to be able to escape it?”48 This is the tragedy of revolution, which is only ethically acceptable insofar as it is directly tied to a second ethic grounded objectively and subjectively in the possibility (and the historical necessity) of human liberation.

    Notes

    1. See the brilliant essay by Cornel West, “Lukács: A Reassessment,” Minnesota Review 19 (1982): 86–102; and Michael Löwy, Georg Lukács: From Romanticism to Bolshevism (London: New Left Books, 1976), 91–144.
    2. The question of suicide was central to Lukács’s short literary work of 1912, “On Poverty of Spirit,” which Max Weber compared to Fyodor Dostoevsky’s Brothers Karamazov. Georg Lukács, “On Poverty of Spirit,” in The Lukács Reader (Oxford: Blackwell, 1995), 42–56.
    3. Konstantinos Kavoulakos, Georg Lukács’s Philosophy of Praxis (London: Bloomsbury, 2018), 157.
    4. The dialectic of the proletariat as the subject and object of history in History and Class Consciousness temporarily displaced the ethical problem for Lukács. As Mészáros wrote, “In the period when the essays of History and Class Consciousness were written, ethics itself could be conceived by Lukács as unproblematically and directly political because politics was seen as directly ethical.” István Mészáros, Beyond Capital (New York: Monthly Review Press, 1995), 408. This could not stand up, however, to Lukács’s own ruthless criticism of his ideas, and the ethical problem was to reappear in his thought.
    5. Georg Lukács,” “Bolshevism as an Ethical Problem,” in The Lukács Reader, 216–21.
    6. Georg Lukács, preface to History and Class Consciousness (London: Merlin, 1968), xi.; Georg Lukács “Tactics and Ethics,” in Tactics and Ethics (London: New Left Books, 1972), 3–11; Andrew Arato and Peter Breines, The Young Lukács and the Origins of Western Marxism (New York: Seabury, 1979), 82.
    7. István Mészáros, Lukács’s Concept of Dialectic (London: Merlin, 1972), 127.
    8. Lukács, preface to History and Class Consciousness, xi.
    9. Lukács, “Tactics and Ethics,” 5.
    10. Lukács, “Tactics and Ethics,” 10.
    11. Lukács, “Tactics and Ethics,” 8.
    12. See Lukács’s early statements in “The Metaphysics of Tragedy” (1910), as quoted in Mészáros, Beyond Capital, 286–87.
    13. Lukács, “Tactics and Ethics,” 10; Kavoulakos, Georg Lukács’s Philosophy of Praxis, 153–57, 160. In Sophocles’s Antigone, Creon represents the state and hence the institutional bases of ethics, while Antigone stands for the soul, spirit, and kinship, and thus a more traditional and religious ethic. In this essentially religious, classical-Greek conception, it is the ethic of the state—which, as Antigone says, demands that she transgress “the gods’ unwritten and unfailing laws”—that was to be regarded as secondary; while the ethic derived from the gods “and no one knows their origin in time” is to be seen as primary. Nevertheless, the state demands absolute adherence in war, creating a conflict between the two ethics, in which the state as absolute ruler enforces the tragic consequences. Lukács’s second ethic, in contrast, which opposes the ethic of the existing state, is essentially a revolutionary ethic, meant to transcend social rather than religious alienation, and aimed at construction of a new historical totality. Sophocles, Oedipus the King/Oedipus at Colonus/Antigone (Chicago: University of Chicago Press, 1954), 174. Lukács himself addressed the nature of this ethical dilemma in Antigone in relation to Hegel’s analysis of it in The Phenomenology of Spirit. Georg Lukács, The Young Hegel(Cambridge, MA: Massachusetts Institute of Technology Press, 1966), 411–12; G. W. F. Hegel, The Phenomenology of Spirit (Oxford: Oxford University Press, 1977), 261–63.
    14. Lukács was doubtless unaware, in referring to Boris Savinkov in “Tactics and Ethics,” that the latter was responsible for an anti-Bolshevik uprising in Russia, which would soon lead him to support the White Army.
    15. Kavoulakos, Georg Lukács’s Philosophy of Praxis, 157, 160; Rodney Livingstone, introduction to Lukács, Tactics and Ethics, xiii.
    16. Lukács, “Tactics and Ethics,” 11. In the edition of Hebbel’s Judith translated by Carl Van Doren, this passage reads: “If Thou didst place a sin between me and my deed, who am I that I should contend with Thee, that I should draw back from Thee?” Friedrich Hebbel, Judith: A Tragedy in Five Acts, trans. Carl Van Doren (Boston: R. G. Badger, 1914), 275.
    17. Löwy, Georg Lukács, 134–37; Daniel Andrés López, Lukács: Praxis and the Absolute (Chicago: Haymarket, 2019), 5.
    18. Walter Benjamin, Illuminations (New York: Schocken, 1969), 90.
    19. Deborah Levine Gera, “The Jewish Textual Traditions,” in The Sword of Judith: Judith Studies Across the Disciplines, ed. Kevin R. Brine, Elena Ciletti, and Henrike Lähnemann (Cambridge: Open Books, 2010), 23–24; The Book of Judith, Old Deuterocanonical Books, Old Testament, Holy Bible, available at st-takla.org.
    20. Hebbel, Judith, 310, 312.
    21. In his questionable intellectual biography of Lukács, Arpad Kadarkay was so eager to utilize the former’s allusions to Hebbel’s Judith as a basis for diagnosing what he calls “Lukács’s dementia” that he seriously distorted aspects of Hebbel’s play to criticize Lukács more fully. Thus, he claimed that Judith actively “forfeits her innocence” to Holofernes, rather than being raped, which is in fact a central feature of Hebbel’s play. Holofernes is said to have “reached into her humanity,” rather than, as in Hebbel’s play, brutalizing and “annihilating” her humanity, for which she takes revenge and thus absolves herself in her own eyes and those of God. Likewise, we are told that “Judith decides to kill the child in her womb,” rather than, as in the play, eliciting a promise from the population that she be killed at her request (thus sacrificing both herself and the fetus) if the evil should appear in her womb. Kadarkay’s distortions were meant to impose on the character of Judith a sense of intense “guilt,” allowing him to claim that Lukács’s own sense of “guilt” converges with that of Judith. Arpad Kadarkay, Georg Lukács: Life, Thought and Politics (Oxford: Basil Blackwell, 1991). In Hebbel’s play, Judith is absolved from her sin by the higher ethic embodied in her deed itself, the sin nevertheless remains and falls upon her, as Lukács understood. Nothing therefore could be more absurd—insofar as Judith itself is concerned—than Lee Congden’s contention that, in Hebbel’s “tragic dramas the concept of sin was unknown; so fated were his characters that their actions could not be subjected to moral judgment.” Lee Congdon, “For Neoclassical Tragedy: György Lukács’s Drama Book,” Studies in Eastern European Thought (2008): 48. In fact, Hebbel’s Judith is concerned with conflicting ethical principles in the manner of Greek tragedy.
    22. Hebbel, Judith, 275.
    23. Georg Lukács, Record of a Life: An Autobiography (London: Verso, 1983), 53.
    24. Margit Koves, “Anthropology in the Aesthetics of the Young Lukács,” Social Scientist 29, no. 7/8 (2001): 71.
    25. Koves, “Anthropology in the Aesthetics of the Young Lukács,” 71; Johann Gottlieb Fichte, Characteristics of the Present Age (Washington DC: University Publications of America, 1977), 9; Friedrich Hebbel, “Herod and Mariamne: A Tragedy in Five Acts,” in Three Plays (London: J. M. Dent, 1914), 67–184.
    26. Georg Lukács, Conversations with Lukács (Cambridge, MA: Massachusetts Institute of Technology Press, 1975), 93.
    27. Gary Neil Garner, “Bertolt Brecht’s Use of the Bible and Christianity in Representative Dramatic Works” (PhD dissertation, Louisiana State University, 1970), 45–52, 72.
    28. Lukács, Record of a Life, 53.
    29. Mészáros, Lukács’s Concept of Dialectic, 17–18.
    30. John Bellamy Foster, The Return of Nature (New York: Monthly Review Press, 2000), 16–21; Georg Lukács, Labour (London: Merlin, 1978); Kavoulakos, Georg Lukács’s Philosophy of Praxis, 213–18.
    31. Mészáros, Beyond Capital, 286. See also Lukács, Conversations with Lukács, 135.
    32. Lukács, History and Class Consciousness, 47.
    33. Mészáros, Lukács’s Concept of Dialectic, 43; Lukács, Conversations with Lukács, 76.
    34. Lukács, quoted in Mészáros, Lukács’s Concept of Dialectic, 43–44.
    35. Mészáros, Lukács’s Concept of Dialectic, 44–45.
    36. Lukács, “Tactics and Ethics,” 8.
    37. Lukács, quoted in Mészáros, Beyond Capital, 400.
    38. Mészáros, Beyond Capital, 407; Mészáros, Lukács’s Concept of Dialectic, 150–51.
    39. Cornel West, The Ethical Dimensions of Marxist Thought (New York: Monthly Review Press, 1991), 138–66.
    40. Georg Lukács, “The Blum Theses 1928–1929,” in Tactics and Ethics, 227–53.
    41. Mészáros, Beyond Capital, 406.
    42. Lukács, “Tactics and Ethics,” 7; G. W. F. Hegel, System of Ethical Life and First Philosophy of Spirit (Albany: State University of New York Press, 1970); G. W. F. Hegel, The Philosophy of Right(Oxford: Oxford University Press, 1952), 105–10; Mészáros, Beyond Capital, 408–9.
    43. Lukács, The Young Hegel, 299.
    44. W. F. Hegel, Natural Law (Philadelphia: University of Pennsylvania Press, 1975), 104–5; Aeschylus, Eumenides, in The Oresteia (New York: Alfred A. Knopf, 2004), 93–127.
    45. Lukács, The Young Hegel, 413, 417. Hegel in Natural Law followed Aristotle in contending that “the state comes by nature before the individual” and the child is thus “suckled at the breast of universal ethical life,” from which derived his “tragedy in the realm of the ethical” that had to contend with the contradiction between the elemental principles of the soul (and inorganic life) and civilization/the state, seen in almost classical Greek terms. Lukács, in contrast, followed Marx in seeking to develop an ontology of social labor (also implicit in Hegel’s corpus) that served to ground the “tragedy in the realm of the ethical” in the contradictions of the individual in class society. Hegel, Natural Law, 104, 113–15.
    46. Georg Lukács, “Marx and the Problem of Ideological Decay,” in Essays on Realism(Cambridge, MA: Massachusetts Institute of Technology Press, 1980), 157; Lukács, Conversations with Lukács, 94.
    47. Georg Lukács, The Destruction of Reason (London: Merlin, 1980), 570. This contrasts with Lukács’s conception of Hebbel at his best, where “the fate of Hebbel’s heroes is the tragically impotent struggle of real men for the perfect humanity of men who live in the formal works of art.” Georg Lukács, Soul and Form (New York: Columbia University Press, 2010), 198.
    48. Georg Lukács, Lenin: A Study on the Unity of His Thought (London: Verso, 2009), 70–85.
  • Against Doomsday Scenarios: What Is to Be Done Now?

    Against Doomsday Scenarios: What Is to Be Done Now?

    Against Doomsday Scenarios: What Is to Be Done Now?” (John Bellamy Foster interviewed by John Molyneux and Owen McCormick), Monthly Review 73, no. 7 (December 2021), pp. 1-16.

    [Published in Irish Marxist Review, November 2021.]

    Against Doomsday ScenariosJohn Molyneux and Owen McCormack: Given the extreme summer weather and the UN Intergovernmental Panel on Climate Change (IPCC) report, just how bad are things now? What do you believe the time scale is for catastrophe and what do you think that catastrophe will look like? Are things worse than the IPCC report claims? Some, including Michael Mann, have warned against “doomsday scenarios” that might deter people from acting. In your view, are doomsday scenarios the truth that needs to be told?

    John Bellamy Foster: We should of course avoid promoting “doomsday scenarios” in the sense of offering a fatalistic worldview. In fact, the environmental movement in general and ecosocialism in particular are all about combating the current trend toward ecological destruction. As UN general secretary António Guterres recently declared with respect to climate change, it is now “code red for humanity.” This is not a doomsday forecast but a call to action.

    Still, the word catastrophe is scarcely adequate in the present age of catastrophe capitalism. Catastrophes are now ubiquitous, since extending to the scale of the planet itself. We are experiencing throughout the globe a series of extreme weather events due in large part to climate change, each of which rank as “catastrophic” by historical precedents, sometimes lying outside the range of what was previously thought to be physically possible. The extreme conditions experienced this summer in the Northern Hemisphere—including floods in Europe; Hurricane Ida in the United States, which not only devastated New Orleans, but also ended up killing people in floods in New York and New Jersey; and the worsening drought and wildfires in California and the entire Pacific Coast of the United States—clearly represent something qualitatively new.

    The latest report of the IPCC, its Sixth Assessment Report: The Physical Science Basis, explains that the various climatic and extreme weather events will tend to compound, as in the case of droughts, desertification (dustbowlification), soil erosion, wildfires, and weakening monsoons, on the one hand, and a melting cryosphere, sea level rise, megastorms, and flooding, on the other—thereby intensifying and extending these catastrophic events, which will appear to come from everywhere at once. Moreover, the human consequences go deeper with temperature increases diminishing world grain production and putting strains on the world food supply; climate change contributing, along with the destruction of ecosystems by agribusiness, to the emergence of novel zoonoses, such as COVID-19 (along with numerous other health hazards); whole populations in cities throughout the planet exposed to unprecedented flooding; the prospect of climate refugees running into the hundreds of millions; and numerous other equally dire consequences, imposed on present and future generations.

    The IPCC, which has a record of scientific reticence, tells us that we will see in the next couple of decades, and indeed throughout this century, growing cataclysms and a shift toward an Earth System that is increasingly unsafe for humanity, even in the most optimistic scenarios. Thus, in the most “rosy” scenario provided by the IPCC (SSP1-1.9)—the only one of its scenarios where the increase in average global temperature at the end of the twenty-first century is projected to be below 1.5°C—the best that can be hoped for is a situation where a 1.5°C increase is staved off until 2040 and global temperatures only increase by a tenth of a degree after that, so that by the end of the century or the beginning of the next century the increase in global average temperature over preindustrial levels can be reduced to 1.4°C, removing humanity from the extreme danger zone. The point is that even in the most optimistic scenario—which would require a global ecological revolution on the part of humanity in order to be achieved, leading to carbon emissions peaking halfway through this decade and net zero emissions being achieved by 2050—the overall climate catastrophe facing humanity will be extremely dire.

    The second most optimistic scenario is one of staying below a 2°C increase (somewhere around 1.7°C). It too would require a global ecological revolution. The other three scenarios offered by the IPCC are basically unthinkable, for which the word apocalyptic is appropriate. In fact, we are currently headed toward the IPCC’s most apocalyptic scenario (SSP5-8.5), in which global average temperatures this century would, in the “best estimate,” rise by 4.4°C, which would, according to current scientific assessments, mean the collapse of industrial civilization, raising questions of human survival. In an ominous statement leaked from Part II of the Sixth Assessment Report, on “Impacts,” which will not be published until February, the IPCC says that if humanity is driven into extinction during the “sixth extinction” arising from anthropogenic causes, evolution will not bring the human species back.

    The trouble is that if we go beyond a 1.5°C increase, and especially beyond a 2°C increase, more and more climate feedback mechanisms, such as the loss of arctic ice and thus the weakening of the albedo effect (the earth’s reflectivity), the release of methane and carbon dioxide from the melting tundra, the burning of the Amazon, and the degradation of the ocean as a climate sink will compound the climate problem and create an irreversible situation, increasing the possibility of runaway climate change that would in effect feed on itself, to the extent that the very existence of humanity would be in question.

    There is still a possibility of avoiding absolutely catastrophic climate change on the level that would threaten human existence altogether. But to accomplish this would require revolutionary changes in social relations, as well as in technology and ways of living. Such a revolution would need to begin within the capitalist system but would lead beyond capital. There is no other way. As Karl Marx indicated, the struggle against capitalism is not simply about human freedom, it is also about human survival.

    I have a lot of respect for Michael Mann’s work on climate change and his fight against the absolute climate denialism of the right. I was, therefore, surprised to see his attacks on the left as “doomsayers” in his recent book, The New Climate War. He seems, by his own admission, to have been affected by what he called “mob-like” attacks on him by followers of Naomi Klein, for his questioning of her opposition to carbon markets (as if green capitalism were the solution). He sharply criticizes British climatologist Kevin Anderson for his claims that mainstream-liberal climate science has been too complacent and that there is a need to overthrow the current political-economic hegemony, as if this were not perfectly obvious at this point. Mann was sharply critical of Bernie Sanders’s Green New Deal plan and has naively advanced the view that Joe Biden is “a climate change pioneer.”

    There is no doubt that Mann knows the science well, and he is worth paying attention to in that respect. But he seems to have no understanding whatsoever of the existing social relations of production of capitalism, leading him to dismiss as mere “doomsayers” everyone who points to the extreme urgency of the world’s present plight, rooted in the nature of our social system, and the need to change the social rules of the game—as if they were giving up, simply by insisting on the need for radical social change. He clearly believes there is some moderate, responsible, enlightened approach based on the existing political-economic system and the actions of established political elites, and to deviate from that is to be “defeatist” and a “doomsayer.”

    I am reminded here of Marx’s remark in Capital that natural scientists often “venture quite at random” and without understanding when they move beyond their own specific areas of expertise, and present themselves as authorities on social questions, which they do not even bother to take seriously or investigate. The climate problem (and Earth System emergency in general) does not arise from Earth processes directly, but from the inner drives of our contemporary socioeconomic system, namely capitalism. Failure to understand the nature of capitalism means that one can have little to offer with respect to organizing social action and solutions.

    JM/OM: Is there still time to avert disaster? Do you have any hope that existing powers and the present system will be able to avert the catastrophe of runaway climate change? Will they even seriously try? Some people are giving Biden a certain amount of credit for moving in the right direction—what do you think?

    JBF: We are now in a position, as I have indicated, where what we can only call catastrophic developments associated with the crossing of planetary boundaries (namely, climate change, the decline of biological diversity, ocean acidification, the disruption of the nitrogen and phosphorus cycles, the elimination of ground cover, the loss of freshwater, chemical pollution, and so on) are unavoidable. The COVID-19 pandemic is itself a manifestation of the destruction of ecological systems by agribusiness, which is bound to create new zoonoses, transmitted by the circuits of capital. But climate change represents at present our most serious problem because of the speed with which it is developing and its irreversible character, often likened to a tipping point leading over the edge of a cliff (as much as some like Mann may dislike the metaphor). We are in a dangerous situation. But we can still avoid such dire, irreversible consequences, likely fatal to humanity, if sufficient social action is taken, allowing us to stop short of what scientists have designated as the climate tipping point (usually now thought of as requiring to stay below 1.5°C, or at most below 2°C, although this is inherently inexact).

    But this is only possible, as the leaked Part 3 of the Sixth Assessment Report (not scheduled for publication until March, and then in redacted form), on “Mitigation,” tells us, if we are willing to carry out fundamental structural change. And, as the report also informs us, at this point we would need to alter dramatically the “demand-side” of the equation, that is, the amount and structure of what is produced and consumed, including a shift to low-energy paths, rather than simply counting on the massive ecomodernization of energy systems, much less new technologies that do not exist at scale. Time is so short that the demand-side strategies, which require challenging the current production system, are the only changes that can be effected rapidly enough and on the scale required.

    In my view, the best historical analogy for the present world situation is Cuba’s Special Period following the demise of the Soviet Union. All at once in the early 1990s, Cuba had to do without the massive fossil fuel inputs (and petrochemical inputs) from the USSR on which its economy had come to depend. Fortunately, as the dialectical biologist Richard Levins explained, Cuba had seen the growth of ecological science in the form of “ecologists by conviction” of extraordinary ability, who were then joined in the Special Period by “ecologists by necessity.” Despite the U.S. blockade, Cuba was able to provide for its basic agricultural needs and reconstruct its economy based on organic agriculture and the development of socialist ecological science, creating a better society. This meant of course increased pressure on the population due to the external pressures they were under and the loss of external resources coming from the previous Eastern bloc. But Cuba in large part succeeded, in the process turning itself into the most ecological nation on earth (according to The Living Planet Report), while protecting and even increasing the quality of its human development. Tragically, it is Cuba’s success that has caused Washington in recent years to tighten the blockade, utilizing the methods of financial war. None of this, however, takes away from the depth of Cuba’s achievement.

    The hard truth is that we are already, due to the continuing destruction of the planetary environment by the capitalist world economy, facing deteriorating ecological conditions, which will, in the most optimistic IPCC scenario, continue to deteriorate this century. For example, there is absolutely no hope that sea level rise can be turned around (though it might be lessened) in this century. It will continue to rise to the end of the century, and possibly for a millennium depending on what we do and how soon. Much the same could be said of megastorms, desertification (dustbowlification), and so many of the other problems facing us. Our first priority has to be to decrease carbon emissions as fast as possible, which in the rich countries means now by double digits annually. This would require an emergency mobilization of the whole society and controls on corporate production. It would also require social and ecological planning. This might strike one as too extreme or too utopian, but such categories do not apply when we are in the midst of a planetary emergency, which promises to be extremely dangerous (or worse) for humanity as a whole, threatening all present and future generations.

    In the very beginning of the ecological era, in the mid–1970s, the Marxist sociologist Charles H. Anderson wrote a book called The Sociology of Survival: The Social Problem of Growth, in which he addressed climate change, ecological imperialism, and the enormity of the environmental problem, arguing that humanity needed an ecological revolution if it were to survive. The book disappeared almost as soon as it was published, receiving little attention from the left. Anderson, who was clearly despondent, committed suicide shortly after. But if there was one social-scientific thinker who approached reality with a vision of what the earth was facing a half century ago, it was him. He was clear that society had to be changed at every level, that capitalism and imperialism had to be transcended through a movement toward socialism, or humanity would not survive—exactly what science is telling us today.

    So far, the emphasis of the ecosocialist movement has rightly been on mitigation, in the hope that we can simply stave off disaster. But now the situation has changed, and we must enter the struggle on two planes at once. Not only do we have to take those actions to guarantee the survival of civilization and humanity, but we also need to take measures to protect populations in the present, because catastrophe, in one sense or another, is now at our door. For ecosocialists, this is less of a contradiction than for others. It is precisely the emphasis on both substantive equality and ecological sustainability, that is, the struggle for sustainable human development in terms that go back to Marx’s arguments in the nineteenth century, which defines the ecosocialist movement. It is simultaneously a struggle over the present as historyand the future as history, which demand essentially the same actions in the face of the enormous perils of our time. Whatever transpires, there is only one answer in the twenty-first century, and that is the creation of an ecological socialism aimed at the sustainable development of all of humanity. This obviously will not happen everywhere at once, but will emerge in pockets and then expand, while also inevitably facing counter-revolutionary trends, emanating from the centers of imperialism and monopoly-finance capital.

    JM/OM: In your book The Return of Nature, you show that ecological thinking has deep roots in the Marxist tradition. Do you see climate change as the ultimate expression of the metabolic rift first formulated by Marx?

    JBF: Marx’s notion of the metabolic rift (or the “irreparable rift in the interdependent process of social metabolism” of humanity and nature) was a recognition of the alienated mediation between the capitalist “social metabolism” and the “universal metabolism of nature.” Marx originally explained this in terms of the depletion of the soil, as chemical nutrients such as nitrogen, phosphorus, and potassium were sent to the new urban centers of the Industrial Revolution, where they contributed to pollution, and never returned to the soil. This was a phenomenon that Marx, following the German chemist Justus von Liebig, called the robbery system associated with industrialized capitalist agriculture. Metabolism, which first emerged as a concept in the early nineteenth century among cell physiologists, was quickly integrated with thermodynamics within physics and was to emerge as the basis of all systems ecology. The physician and scientist Roland Daniels, to whom Marx dedicated The Poverty of Philosophy, first introduced Marx to the notion of metabolism (Stoffwechsel) and employed it in a broad ecological sense, emphasizing the interdependence of life and the interconnections of the inorganic and organic. Marx then built on this in his writings beginning in the 1850s, using it to address the larger question of the material substratum and how this related to material flows, in a capitalist context, and later developing the notion of metabolic rift based in part on Liebig’s soil chemistry. It was the concept of metabolism that became the basis of ecosystem analysis and then Earth System analysis. It is significant that the greatest theorist of ecological crisis in England, in the generation after Charles Darwin, was the biologist E. Ray Lankester, a close friend of Marx (and Darwin and Thomas Huxley’s protégé). It was Lankester’s student Arthur G. Tansley, the founder of British plant ecology (and a Fabian-style socialist), who introduced the materialist concept of ecosystem, influenced by the Marxian mathematician Hyman Levy.

    Brett Clark and Richard York made a major theoretical breakthrough in an article on the “Carbon Metabolism” in Theory and Society in 2005 (later reprinted in our joint book The Ecological Rift in 2010), in which they applied Marx’s metabolic rift analysis to the problem of climate change. This then led to a wide-ranging (and still increasing) set of applications of Marx’s method to ecological problems, creating an integrated socioecological critique. Nevertheless, I would hesitate to say that climate change is “the ultimate expression of the ‘metabolic rift,’” since climate change is, in fact, only one of the planetary boundaries that are currently being crossed in the Anthropocene, defining the limits of the earth as a safe place for humanity. Each of these boundaries currently being crossed (such as loss of biodiversity and the disruption of the nitrogen and phosphorous cycles), as a result of anthropogenic change, represent an Earth System emergency for humanity. The common denominator of all of them is the growth of capitalist accumulation. The Anthropocene crisis has in fact been defined within science as an “anthropogenic rift” in the biogeochemical cycles of the Earth System.

    The Return of Nature, going beyond my earlier Marx’s Ecology, tells the story of how socialists played leading roles—even the leading roles—in developing an evolutionary ecological critique, building on Darwin’s evolutionary theory, Marx’s materialism, and Frederick Engels’s dialectics of nature, giving rise to a dialectical systems analysis rooted in metabolic processes and the concept of emergence. The story extends from Darwin’s and Marx’s deaths in 1882–83 to the modern ecology movement, focusing particularly, within science in Britain, on Lankester, Tansley, H. G. Wells, J. B. S. Haldane, J. D. Bernal, Joseph Needham, Lancelot Hogben, and Levy. These developments within science overlapped with a related aesthetic and cultural path to ecology within Marxism in the British Isles, building on the radical Romantics, in the work of figures like William Morris, Christopher Caudwell, George Thomson, and Benjamin Farmington. Many of these thinkers traced the same path as Marx’s own development with respect to materialism, extending from Epicurus to materialist dialectics and radical conceptions of science, which Marx often treated synonymously with dialectics. This legacy of critical historical-materialist ecology, precisely because it saw ecology from the first as dialectical and interlocked with society, is crucial to the development of our contemporary critique.

    JM/OM: Do you have any expectations for the 2021 UN Climate Change Conference (COP26)? What do you think the conference will do?

    JBF: I do not have any real expectations for COP26, given past experience. In 2002, in what was called the second Earth Summit (the World Summit on Sustainable Development) in South Africa, I pointed out that despite the initiation of the Kyoto Protocol process, the developed capitalist economies were increasing their carbon emissions, not decreasing them (this can be found in my book Ecological Revolution). The various climate summits have helped keep hope alive but only barely. The same pattern has been repeated again and again. We are now reaching the decisive point. My hunch is that the COP26 will move toward staying below 2°C since there is no pretending with respect to staying below 1.5°C anymore without acknowledging that it is, indeed, a “code red for humanity.” Climate scientists at the University of Washington came out with a study recently that said if the world’s countries were to pledge to reduce their emissions by 1.8 percent annually rather than 1 percent (which of course they are not doing anyway) there would be a 50-50 (coin toss) chance of limiting global heating to below 2°C. I think this is smoke and mirrors, but is the sort of thing that the world’s so-called leaders may grab onto in order to pretend that they can and will do something, without having to promise too much. They can then say they have saved the world through their mere promises.

    Yet, it is always possible, though it seems unlikely at this point, that something will shake this up. Conceivably, China, with its global insider-outsider role, will make a decisive move, or China and the United States will force each other’s hands. Maybe there will be a split at the top of the system within elements of the ruling capitalist class and its supporting echelons, given the dangers to all of humanity, breaking away. The French Revolution of 1789, after all, began at the top with the revolution of the aristocracy against the monarchy, and then it spread in successive revolutionary waves, each of which upturned the system, to the rest of society. We could see an explosion emanating from humanity, kindled by a match somewhere.

    But frankly, I do not see any of this happening in relation to Glasgow itself, which is likely to be characterized, unfortunately, by what Greta Thunberg has called “blah blah” and some significant protests. The big action, as in Copenhagen in 2009, will be when the world realizes that they have been “sold down the river” (an idiom incidentally that arose in the U.S. slave trade and seems quite appropriate in relation to the current expropriation of the earth). Most likely, COP26 will be a huge failure and people everywhere will then have to decide what to do. There will likely be more talk about how to provide international aid to the most endangered countries, such as the world’s small, low-lying islands. None of which is likely to materialize. It looks like it is shaping up to be another betrayal, which will of course fall mainly on those who expect to see this century out, and especially on those most vulnerable.

    JM/OM: There are a number of debates within the movement and among ecosocialists. (1) Should we speak of the Anthropocene or the Capitolocene? (2) Should ecosocialists advocate degrowth—and, if so, what about development in the Global South? (3) Do you believe it is meaningful to speak of “the rights of nature”? (4) Is the time right for sabotage and/or violence, such as “blowing up pipelines”? What are your views on any or all of these questions?

    JBF: This is taking on a lot of questions and debates all at once. I will try to answer them briefly, in succession.

    (1) The Anthropocene is a quite precise scientific concept, part of the geological time scale, which is one of the great achievements of modern science. It signifies that anthropogenic forces (via society) are now the main factors in Earth System change. There is no doubting this, and there is no possibility of this changing while industrial civilization in any sense persists. Even if capitalism were to go away, and socialism were to replace it, we would still be in the Anthropocene. There is no changing this without endangering human civilization and human existence. Indeed, capitalism is right now driving the world toward an Anthropocene-extinction event (and perhaps Quaternary-extinction event), in which the anthropogenic impact on the earth will conclude with the destruction of civilization and humanity itself, along with innumerable other species. In this sense, the term Capitalocene is simply a category mistake that ignores the results of natural science and represents an unwillingness to confront the reality of the new geological epoch in which we live.

    Approaching this more concretely, we can say that while, officially, we live at present in the Holocene Epoch in geological time, stretching back about 11,700 years, in truth we are now living in the still-unofficial Anthropocene Epoch, which stands for anthropogenic factors now being the predominant forces in Earth System change. This connects more closely to human history when related to geological ages, which nest within geological epochs. Viewed from this standpoint, we live today officially in the Meghalayan Age of the Holocene Epoch, going back about 4,200 years and often associated with early civilizational collapse due to climate change (though this is in dispute within science). The Meghalayan Age is viewed as the last geological age of the Holocene. Hence, Clark and I, as professional environmental sociologists, have recently argued (in “The Capitalinian” in the September issue of Monthly Review) that, with the coming of the Anthropocene Epoch, we have entered a new geological age, the first age of the Anthropocene, which began at the end of the Second World War together with the Anthropocene itself. We propose calling this new geological age the Capitalinian Age because it marks the point at which a globalizing capitalism, emerging as a geological force threatening the planet itself, began to disrupt the entire Earth System. Consequently, humanity is now faced with either an end-Anthropocene extinction event, in geological terms, evolving out of the Capitalinian (in the historical age of catastrophe capitalism), or else we will find a way to create a community with the earth, which will require a society of ecological sustainability and substantive equality (ecosocialism), ushering in a new geological age: what Clark and I call the “Communian.” The value of this framework is that it tells us exactly what is at stake. We are thus confronted in the Anthropocene Epoch and the Capitalinian Age with a Great Climacteric, requiring the creation of a world that is coevolutionary with the Earth System, the Communian Age—or we will not survive. In this way, we can understand the relation between human history and geological history as it presents itself in our time.

    (2) If degrowth means that we have to decrease our impact on the Earth System; that Less Is More as Jason Hickel argues in his book; that exponential accumulation of capital on a world scale cannot occur in a finite Earth System; that we have to move toward a steady-state economy (with decreased economic weight in relation to the present) that promotes sustainable human development; that we need a socialist democratically planned economy that emphasizes low-energy solutions and decreases waste and destruction; that the world has to move toward equal per capita levels of energy use, somewhere around the level of Italy today (allowing poor countries to catch up); that we have to emphasize community rather than commodity production—yes, then, I support the notion of “degrowth,” though even then with some reservations. It captures an essential aspect of the problem. The capitalist pattern of growth is no longer possible.

    Yet, the concept of degrowth itself has problems in terms of the way we choose to articulate our strategy. It is simply an inversion of the notion of “growth,” which is the most powerful metaphor of the existing system, introduced after the Second World War to represent the increase in gross domestic product. Here, growth is simply the hegemonic accounting ledger, based on capitalist double-entry bookkeeping, raised to the national level. It stands for anything (war spending, crime, fossil-fuel production, nuclear waste management, immediately disposable products) contributing to “value added.” It includes everything that passes through the market, whatever the nature of the particular commodity is, and regardless of its wastefulness, destructiveness, irrationality, and the inequality, exploitation, and expropriation embedded in it. If one cuts down a forest, which in capitalist terms is millions of board feet of standing timber, that counts as growth. Ironically, the growth of the Amazon Forest itself would not constitute “growth.” The Amazon is, in fact, being destroyed today in the name of capitalist development.

    But to say, then, that what we are promoting as an alternative is “degrowth,” which merely inverts this distorted conception of growth, risks compounding the confusion, treating the ecological problem as simply a question of scale. The question is then reduced to its quantitative aspects, having nothing to do necessarily with qualitative issues, social relations, and so on. It is as though we can go along as we are, but only smaller, thus capturing only one dimension of the problem. While, in fact, the key issue is the nature of the accumulation system itself, the destructive ecological effects of which cannot be reduced simply to questions of scale. (The more sophisticated degrowth theorists, of course, realize this and incorporate qualitative concerns into their analyses.) We also run into the problem in which some influential degrowth theorists, like the French economist Serge Latouche, argue that degrowth is compatible with capitalism, as if capitalism were not a system for the accumulation of capital ad infinitum. Some degrowth theorists have also skirted the issue of the needed development in much of the Global South, which cannot be asked to degrow. In general, the degrowth conception is useful in establishing the necessary parameters. But the real issue is the social system itself. Also, we are faced with the problem of countering a fetishized concept of growth by simply turning it upside down, which produces real difficulties in building a popular conception. Some ecological systems theorists like Howard Odum have tried to get around this by addressing the question of a “prosperous way down.” I think the only real answer, however, is to make ecosocialism rather than degrowth the principal focus.

    The key problem is that we live in an “accumulative society,” as the French Marxist Henri Lefebvre called it. What we need is not so much a degrowth perspective as a deaccumulation perspective. Capitalism is dangerous to the environment not simply because it grows, but because of the way it grows (accumulation at all costs), which maximizes the dangers to the environment and to the world population. This issue is highlighted in my article (included in The Ecological Rift) called “The Absolute General Law of Environmental Degradation under Capitalism.”

    Nevertheless, the notion of degrowth does punch a hole in the capitalist growth ideology, which is essential. Exponential growth, and above all, capitalist accumulation, now actually destroys more than it creates in real-world terms, destroying the planet as a home for humanity. Moreover, in recent years, degrowth theorists have played the leading role in developing low-energy strategies for dealing with climate change. Thus, Hickel’s work (along with that of Andreas Malm and others) is referred to in the leaked Part 3 of the IPCC’s Sixth Assessment as pointing to the possibility for low-energy strategies, seen as the main hope now of staying below a 1.5°C increase in global average temperature, and as providing arguments with respect to the unsustainability of capitalism.

    (3) I do not think it makes much sense to speak of “the rights of nature,” if only because nature is likely to lose out in any such perspective, as does humanity today. Political rights (the main way in which we refer to rights in capitalist society) are associated with being part of a political order, based on the notion of some kind of elemental social contract (a notion first introduced in antiquity by Epicurus), or from being part of a consciously created constitutional order. In the capitalist mode of production, right, in this sense, is essentially reduced to property right based on the concept of the commodity, which forms the basis of the entire legal system. There is also an ethical notion of natural right that is conceived in various ways and is separate from politically derived rights. This notion is even more confused because it is removed from the notion of a social contract. Here, if we are talking about justice, as Epicurus argued, and Marx concurred, the basic concept of justice is reciprocity, plus the recognition that our notion of justice must change along with changes in our relationships and our needs. Here we can talk about the need, in a relation of reciprocity, to sustain and reproduce the earth, and how this need evolves with history. We have to recognize our sensuous and aesthetic connection to nature, the fact that human beings themselves are a part of nature, which we relate to in a sensuous, material way, something that Marx insisted on again and again. Aldo Leopold, from a different perspective, but one that challenged the commodification of nature, stressed the need to extend our sense of community to nature. We should have a sense of the intrinsic value of nature, as of life itself, and an aesthetic relation to nature, derived from this larger sense of community with the earth.

    As Marx said, we relate to nature not only through production but through our concepts of beauty. And, of course, we have to have some protective sense of “animal rights,” to prevent their abuse in a capitalist commodity society. Aside from human slavery, nothing is worse than reducing nonhuman animals to mere machines without souls, as René Descartes did. In fact, Marx directly criticized Descartes’s mechanical philosophy for demoting nonhuman animals from assistants to human beings, as in medieval times, to the mere mechanical objects of bourgeois society. As Epicurus argued (and Marx reiterated), we have to live in a way that the world—that is, nature—is “our friend.” Trying to address all of this in terms of a bourgeois concept of rights confuses matters, as the real issue is the extent and nature of our community with the earth, with nonhuman animals, and with each other.

    (4) Whatever one may think of his particular stance—which derives from a view that we must now be prepared to consider using all the means necessary to save the earth as a home for humanity—Malm has done the movement a favor in How to Blow Up a Pipeline (a work that is more reasonable than its provocative title suggests), by raising some of the most difficult concrete issues of tactics and militancy. Specifically, Malm asks us to consider to what extent and in what ways the climate movement will respond to the violence of ecocide/omnicide with its own tactics, including sabotage and violence against property. Nonviolent mass protest is obviously to be preferred. Still, we live in the context of a capitalist state, which defines itself in terms of a self-referential system of law, designed to protect and legitimize the existing exploitative order and, as Max Weber stressed (only a decade and a half before the rise of the Nazi regime), confers on itself “the monopoly of the legitimate use of force.” It often responds to threats to established authority with the use of force and violence, including—where necessary to preserve the existing property order—martial law/states of emergency and imperial war, which today has become permanent. There is a dialectic of violence in how the system operates and through which it constitutes itself.

    Sabotage (which of course derives etymologically from the French sabot, wooden shoe, and from workers throwing shoes in machines) will necessarily be part of an ecological revolution, and so will attacks on private property, given that the owners of the means of production (the wealthy and corporations) are destroying the earth itself so as to expand their financial holdings. Malm quotes Nelson Mandela, in the struggle against Apartheid, in which he declared: “‘I called for non-violent protest as long as it was effective’ as ‘a tactic that should be abandoned when it no longer worked.’” It seems inevitable to me that as the stakes for humanity rise, more and more people will inevitably take this general stance, recognizing that human survival (as well as human freedom) is at issue. How could it be otherwise, if the system refuses to respond to human needs to the point of endangering human survival? I think Kim Stanley Robinson was quite realistic in his recent novel The Ministry for the Future in making the recourse to violent resistance by some revolutionary ecological groups part of the mix and helping people develop a sympathetic understanding of why and how this could happen, while not actually advocating it.

    One example of a tactic that I do support at present is that of the valve turners in North America. On October 11, 2016, five climate activists closed the valves on four of the pipelines carrying tar sands oil from Canada into the United States. A full 15 percent of U.S. crude oil imports were closed down for nearly a day. To make sure worker safety was not violated, a call was made to each company’s emergency response around fifteen minutes before the valve turners entered the sites, giving the corporations plenty of time to shut each pipeline down. The valve turners were charged with felonies, including criminal sabotage. They are being defended by Lauren Regan, one of the foremost environmental and civil rights lawyers in the United States, as well as an MR author. Regan and her organization, the Civil Liberties Defense Council, where I am an advisory board member, has relied, with considerable success, on employing the necessity defense, not used for many years in U.S. law, arguing that the valve turners had no choice, since their actions were not only necessary but morally and legally justified in order to avoid catastrophic harm to humanity and all life on Earth. Juries several times refused to convict the valve turners, agreeing with their necessity defense.

    JM/OM: What do you think should be the immediate demands, goals, and tactics of the climate movement?

    JBF: This is a very big question. Since we have been talking already about tactics, I will focus on demands and goals.

    Clearly the goal, at a minimum, has to be to stay below a 1.5°C increase in global average temperatures until 2040, which is the most optimistic scenario of the IPCC, which will then, it is hoped, allow a return to a 1.4°C increase by the end of the century or into the next century. This, as the IPPC says in its leaked Part III report, however, requires facing the fact that fundamental structural change in the present socioeconomic system is needed and that capitalism, as a system, is “unsustainable.” Here, the IPCC cites figures like Hickel and Malm. The only real hope in the years immediately ahead, the leaked “Mitigation Report” suggests, is low-energy strategies, which can reduce energy use by 40 percent, while at the same time improving the human condition. It is this, and not the technology, which now cannot be introduced fast enough. (Solar and wind account for only 7 percent of total energy consumption worldwide at present; direct air capture and Bioenergy and Carbon Capture and Sequestration do not exist on an adequate scale as technologies today; nuclear with all its attendant problems cannot fill the gap, nor should it.) Negative emissions, the science tells us, are necessary on a supplemental basis, if we are to not break the climate budget, but this can be achieved by improved forestry, agricultural and soil methods, such as maintaining soil organic matter, without geoengineering. Basically, humanity needs a quick transition, and this can only occur by the self-mobilization of populations and fundamental alterations in social relations.

    Whatever way we look at it, it means an ecological revolution, affecting social relations, on a scale beyond anything humanity has ever seen before—or we will not make it. As Marx said when confronted with the severe ecological problems in Ireland, it is a question of “ruin or revolution.” Moreover, the burden in our time has to be put primarily on the rich countries, since they are the ones that have used up most of the global carbon budget, have higher per capita wealth, the highest per capita energy consumption, the highest carbon footprints per capita, and also monopolize much of the technology. The core capitalist system in the Global North is primarily responsible for most of the increases in carbon dioxide accumulated in the atmosphere since the Industrial Revolution. Today, the bulk of worldwide carbon dioxide emissions are concentrated in a few hundred global corporations and military spending. All of this underscores that the rich capitalist countries at the center of the world system owe an ecological debt to the rest of the world. They thus have the main responsibility for fixing the problem by bringing their economies more in line with the world average energy consumption. This requires going against the logic of capitalism in order to save the planet as a safe home for humanity.

    Part III of the leaked IPCC report explicitly supports climate strikes, a just transition, environmental justice, mass movements, protecting the vulnerable, and fundamental, “transformative change” in society. It says no new coal-fired plants can be started up from now on and that all existing ones have to be eliminated in a decade; sports utilities have to go; we need “new cities” that are not engines of ecological destruction; public transportation has to be expanded; pipelines have to be removed; fossil fuels have to stay in the ground, made possible by low-carbon pathways. Our whole production and consumption system has to change and to do this people will have to change it, going against corporations.

    However, mitigation itself is no longer enough, because catastrophe is at our doorsteps at present, even if we still have time to avoid the point of no return if we act decisively enough and on a big enough scale. Humanity needs to mitigate the problem, that is, to stop global heating and reach net zero carbon emissions by 2050 (net zero is significant because we no longer have the possibility of meeting the below-1.5°C or even the below-2°C targets without negative emissions). But we are also facing the reality that, even in the most optimistic scenario, climate conditions will deteriorate for most of this century. We have to act to protect what Marx called “the chain of human generations,” reconstituting society on an ecosocialist basis—not just for the future, but also now for the present. This can help the cause of ecological revolution, propelling people into action.

    JM/OM: You often say, “it is ruin or revolution.” What do you think that revolution will look like, and how can and should we work toward revolution today?

    JBF: A revolution—as the cultural theorist Jacob Burckhardt said in the nineteenth century—is an enormous “acceleration of history.” The only way to address capitalism’s disruption of the ecological cycles of the planet is such an acceleration of history, one in which humanity mobilizes on the largest scale possible, based on a new environmental proletariat, encompassing the full range of material needs (environmental and economic, productive and reproductive), aimed at the radical transformation of existing social relations and the creation of a socialist ecological society. Such a movement will have to take place globally and at numerous levels, with breaks within the existing order not simply at the bottom, but cracking the entire class-power edifice and its political-economic hegemony, reflecting that this is an existential crisis. It will need simultaneously to be a cultural, ecological, social, and economic revolution. In my 1994 book The Vulnerable Planet, I argued that the economic impact on the earth due to capitalism was accelerating to the point that the economy was now rivaling the ecological cycles of the entire planet. In the second edition of the book, in 1999, I argued that the only answer was to accelerate history beyond the current mode of production through a social and ecological revolution—so as to transcend the accumulative society of capitalism and create a community with the earth. The issues remain the same, but we are much further down the garden path.

    All of this may sound utopian, but the negative sense of utopian as an ideal dream, reflecting the original Latin meaning of nowhere that Thomas More played on, has no real meaning in our time—nor can we afford to dwell on dystopia—when the world scientific consensus tells us that we either make fundamental, rapid, social-structural change on a global basis or industrial civilization and the future of humanity is crushed. There is only human struggle in an increasingly harsh environment, the product of the Capitalinian Age of the Anthropocene Epoch. The planetary environment as a whole is rapidly changing around us as a result of the system that we have created and there is no standing still. None of our existing social institutions will survive existing trends, which, if we continue much longer on the present path during this century, will almost certainly, the world scientific consensus suggests, bring down industrial civilization itself.

    Capitalism is rapidly carrying out environmental changes that have already compromised the planet as a safe space for humanity during this century. Its famous creative destruction is now undermining the earth itself. There is no option left but ecological revolution, which means simply that the people, in their endless numbers, will once again be compelled to take history into their own hands, in a struggle that is likely to be stormy and chaotic, but that will also demonstrate the power and endless creativity of humanity, offering the possibility of a new ecological renaissance. There is no guarantee, of course, that in such a struggle we will succeed. Marx once said no attempt at world-historical change is ever undertaken on the basis of infallible guarantees. All that we know for certain, is that, with whole generations seeing their future being stripped away, and humanity’s existence imperiled, it is inevitable that hundreds of millions of people, if not reaching into the billions, will resist, leading to what will undoubtedly be the greatest series of revolts in history, taking place throughout the planet. We can already see this in the farmers’ revolt in India, the school climate strikes in Europe, and the battle over Standing Rock in North America. This points to a new environmental proletariat, responding to the material needs that are equally economic and ecological, productive and reproductive. It is there that our hope lies: the creation of a whole new geological (and historical) age of the earth, the Communian.

  • The Planetary Rift

    The Planetary Rift” (Interview of Foster by Haris Golemis), transform! Yearbook 2021: Capitalism’s Deadly Threat (London: Merlin Press, 2021), pp. 57-72.

    [Reprinted in Monthly Review (November 2021), pp. 1-14.

    HG: With your pathbreaking article “Marx’s Theory of Metabolic Rift” (American Journal of Sociology, 1999), you challenged the then prevalent view, even among non-dogmatic Marxists, that the effects of capitalist growth on nature was not of interest to Karl Marx. Could you briefly explain your thesis?

    JBF: In “Marx’s Theory of Metabolic Rift,” I argued that the widespread view on the left that Marx had adopted a Promethean (extreme productivist) view of the human domination of nature—and hence had failed to perceive the natural limits to production and ecological contradictions in general, giving them at most only marginal attention—was contradicted by his theory of the metabolic rift, which played a key role in his overall analysis. Marx built on the German chemist Justus von Liebig’s notion of the robbery of nature, in which nutrients were systematically removed from the soil and shipped hundreds and even thousands of miles to the new urban centers, polluting the cities, rather than being returned to the soil. Based on this, he constructed an ecological critique of capitalism, rooted in the concept of social metabolism, standing for the human relation to nature as a whole through production. Capitalism’s disruption of this metabolism generated an “irreparable rift in the interdependent process of social metabolism, a metabolism prescribed by the natural laws of life itself.” For Marx, the labor and production process constituted nothing less than the social metabolism between humanity and the universal metabolism of nature, mediating between the two. But under capitalism this had become an alienated mediation, rupturing this metabolism, which needed then to be restored under socialism, as an eternal requirement of life itself. In these terms, Marx developed a notion of sustainability, arguing that no one, not even all the people in the world, owned the earth, but rather they needed to sustain it for “the chain of human generations” as “good heads of the household.” Socialism itself was defined in volume 3 of Capital as the rational regulation by the associated producers of the metabolism of nature and society, so as to conserve energy, and promote human development.

    In short, Marx’s critique of political economy ushered in the most profound ecological critique ever developed, since it was dialectically connected to his overall analysis of capitalist production and constituting the basis of the creation of a higher society of the future. Later scientific ecology, including the concept of ecosystem, were to be developed on this same basis, with the concept of metabolism leading to systems ecology.

    The power of Marx’s analysis in this respect and the depth of his understanding of natural science surprised me and forced me to rethink Marx’s entire body of work. How had he developed such a profound ecological critique? The answer had to lie in his materialism, which went much deeper than most Marxist theorists had perceived. This led me back to the very beginnings of Marx’s thought, starting with his doctoral thesis on Epicurus, the greatest materialist thinker in antiquity, and analyzing the development of Marx’s materialist and ecological perspective from that point on, including his relation to thinkers such as Liebig and Charles Darwin. This reinterpretation of Marx’s thought resulted in my book Marx’s Ecology: Materialism and Nature, published in 2000.

    HG: In a March 2020 interview you gave to Farooque Chowdhury, you said that David Harvey was critical of the theoretical scheme presented in your book The Vulnerable Planet (Monthly Review Press, 1994). Would you say that, since then, his and your analyses of contemporary capitalism have come closer?

    JBF: Harvey is a major Marxist theorist, and his wide-ranging work is always illuminating, presented with an elegance all of its own. In the last decade or so, he has moved closer, particularly since his The Enigma of Capital (2011), to the Marxian economic analysis pioneered by Monthly Review, focusing on the problem of surplus capital absorption under monopoly finance. So, there are a lot of places where our analysis overlaps.

    However, Harvey and I have long had major differences in how we see the planetary ecological crisis and as to the significance of Marxist theory in this respect. In the 1990s, he denied the severity of the overall environmental problem, arguing in response to my book, The Vulnerable Planet (1994), in his Justice, Nature, the Geography of Difference (1996), that with respect to the human impact on the planet, “The worst we can do is to engage in material transformations of our environment so as to make life less rather than more comfortable for own species, while recognizing that what we do also does have ramifications (both positive and negative) for other living species.” In these quiescent terms, he rejected the argument in my book that biogeochemical cycles of the Earth System were being disrupted by the increasing scale of capitalist production. Instead, he strongly criticized all notions that “ecocide is imminent” due to capitalist development, claiming rather that such a view was vulnerable to right-wing criticisms that said human conditions were constantly improving.

    In a debate between Harvey and me that followed in Monthly Review (April 1998), he declared that the 1992 “Warning to Humanity” focusing on the dangers of climate change signed by over 1,500 of the world’s scientists, including more than half of the recipients of the Nobel Prize among living scientists, were “every bit as problematic as the literature [of climate change deniers and anti-environmentalists such as Julian Simon and Greg Easterbrook] they rebut.” He insisted that a Marxist perspective should prevent us from falling for the ecological rhetoric “that we are reaching some limit, that environmental catastrophe is around the corner or that we are about to destroy planet earth.” His overall emphasis at the time was to downplay and, to a considerable extent, deny the planetary ecological emergency—on putatively Marxist grounds.

    It took him several decades, but Harvey has now come to recognize the environmental problems and admit to the shortcomings of his analysis in this regard. In his Anti-Capitalist Chronicles (2020), he indicates that a graph from the National Oceanic and Atmospheric Administration (NOAA)—the kind of graph that has been around for decades based on the Mauna Loa Observatory, but this one showing the rise in carbon concentration in the atmosphere all the way to 400 ppm (reached in 2013)—finally convinced him that climate change was as serious as the scientific consensus had long contended. The question is: Why had he taken so long to realize the full environmental dangers, despite coming from a historical-materialist perspective? In answering this, Harvey goes into a long discussion on how he had been misled by focusing too much on weaknesses of some of the environmental rhetoric on the left. In 2020, he says it was the NOAA graph showing the speed with which the Earth System had gone from 300 ppm to 400 ppm of carbon concentration in the atmosphere that “changed everything in my world view. The question of climate change went from something I thought to be manageable by normal techniques and sensible interventions to a recognition of the need for radical transformation of all our ways of thinking.”

    Even with this revelation, however, his emphasis in The Anti-Capitalist Chronicles tends to favor ecomodernization perspectives, whereby technology will save the day by carbon sequestration: taking the carbon out of the atmosphere and putting it in the ground. The fact that such technology does not exist at scale, and poses its own cataclysmic problems, is not considered in his analysis. There is simply no attempt to pose this problem in ecological Marxist terms as one of ruin or revolution.

    HG: In the same interview, you say that “it has suddenly become easier to imagine the end of capitalism than the end of the world, and indeed the former would likely preclude the latter.” What do you really mean by reversing Frederic Jameson’s quote? It is true that the number of radical left intellectuals and activists who believe that capitalism is not the end of history has grown considerably. However, the ruling classes are using the pandemic to hide this truth, by presenting the virus as an external threat, and in view of the power of the mainstream media, I am afraid that the TINA (there is no alternative) narrative still prevails in the general public. I would be happy if you could convince me that I am wrong.

    JBF: You will recall that Jameson’s statement in New Left Review (March–April 2003) read: “Someone once said that it is easier to imagine the end of the world than the end of capitalism.” Well before I was conscious of his authorship of this statement, we commonly used that same exact phrase over and over in our discussions in the graduate program in environmental sociology at the University of Oregon, discussions and debates that included some of those who are now among the world’s leading environmental sociologists, who had come to study at Oregon, primarily in order to engage with Marxian ecology. In fact, I had used the exact same wording early in this century in talks I gave, though usually in the question-and-answer sessions after the talk, more as a kind of riposte to get the audience to think—just as we often raised it ironically in our seminar discussions in environmental sociology.

    The reason why the notion that “it is easier to imagine the end of the world than the end of capitalism” was approached in this circumspect way in our discussions at the time was that, although capturing part of the contemporary environmental predicament—and the dystopian consciousness that was so pervasive among youth—it tended to represent a negative, even defeatist outlook, when not put into a concrete historical context. The problem is closely related to what Derrick Jensen and Aric McBay in What We Leave Behind (2009) were to call “the inversion of the real and the not real,” such that “the end of the world is less to be feared than the end of industrial capitalism.” If such a view were to be presented, it needed to be placed in a context of generating a revolutionary ecological consciousness, rather than signaling defeat. It was a question of countering the dominant ideology and received views in general.

    This was such an important part of our overall discussions on the environment that, when I became aware that the phrase had been introduced in print by Jameson, who had prefaced it with “Someone said,” I thought it had emerged somehow from our own discussions. Now, however, I think we picked it up from him indirectly, probably from Cade Jameson, Fredric Jameson’s son, who is himself a great environmental sociologist, now teaching in Hawai‘i, and who was part of our program at the University of Oregon. It may be Cade, knowing his father’s work, who inserted this phrase early on into our discussions. I am not sure.

    The point, though, is not that the consciousness of capitalism’s role in the destruction of the planet as a safe home for humanity is wanting; rather, the point is to change this. In reversing the famous Jameson quote, and indicating that “it has suddenly become easier to imagine the end of capitalism than the end of the world,” I was pointing to the fact that the COVID-19 pandemic, coming on top of climate change, was threatening the ideological hegemony of the system, demonstrating that our ecological-epidemiological crises were products of capitalism itself. The illusion of the emperor’s clothes had vanished and suddenly the emperor was revealed as naked. The United States, at the center of capitalism, has now experienced over half a million deaths from COVID-19, which everyone knows have to do with the privatization of public health, not to mention the circuits of capital, as historical-materialist epidemiologists like Rob Wallace explain. For many, this allows them to see that what is constantly projected as the end of the world is indeed properly seen as the question of ending capitalism. You are right, of course, that in presenting the virus as an external threat to the system, the ruling ideology was attempting to steer the population away from such critical conclusions.

    You ask me about the views that prevail in the general public, given the constant outflow of propaganda on TINA under capitalism. I think that is the wrong way to think about it. A snapshot of public opinion tells one very little, given that the material conditions of humanity—the very conditions of life on Earth—are changing more rapidly than at any time in human history. People are like volcanoes and will erupt when the molten rock rises to the surface. If one starts simply with ideas, from an idealistic perspective, it looks like capitalism is supreme and will remain forever so. But the Catholic Church got Galileo Galilei to disavow his science, and yet, as legend has it, he touched the ground and said, “It still moves.” TINA is correct, but in a different way than Margaret Thatcher believed. There is no alternative to a society of substantive equality and environmental sustainability, that is, socialism—if humanity is to survive.

    HG: How do you evaluate the work of Murray Bookchin, a non-Marxist thinker, who has also tried to bring the ecological issue into the public debate? Indeed, we see radical leftists and anarchists fighting together in the streets of many cities in the world against the policies of governments that destroy the environment and increase class, race, and gender inequalities. In view of such an “alliance,” do you think that a theoretical and programmatic dialogue between different anticapitalist traditions is desirable and possible?

    JBF: I have always thought a great deal of Bookchin’s work in ecology, though it was seldom directly influential on my own thinking. I was first introduced in the early 1970s at the Evergreen State College to his Post-Scarcity Anarchism, which, however, left little impression. But his 1962 Our Synthetic Environment (written under the pseudonym Lewis Herber), which came out the same year as Rachel Carson’s Silent Spring, was pathbreaking. One of my favorite books by him is The Limits of the City. Another is The Ecology of Freedom. He could be very polemical and was a strong critic of Marxism on ecology. But he was careful in doing so to criticize Marxism and not Marx himself, for whom he always retained great respect. I cite Bookchin at various points in my work, though not extensively. When I was on the editorial board of Capitalism Nature Socialism in the early years, there was a stream of harsh criticisms of Bookchin and one edited collection opposed to his analysis that came out of the journal. I declined to be part of it. Instead, not soon after, when I was co-editor of Organization and Environment, we published a very favorable assessment of Bookchin’s ecology by Steven Best. Monthly Review has always been open to Bookchin’s ecological analysis. Brian Tokar, who is perhaps the most important figure in Bookchin’s social ecology tradition, has written for Monthly Review Press. In fact, Monthly Review as an independent socialist magazine has always been open to anarchist views, particularly where they overlap with Marxism, as part of the conversation. Our whole orientation from the beginning has been to unite various anticapitalist traditions. Of course, there are differences, but there is plenty of room for commonality. The role of anarchists in fighting neofascism; in the racial solidarity protests in the United States; and in the ecological movement has been very great. Forging coalitions in this respect is necessary in the common cause.

    HG: Ever since the 1960s, Monthly Review has been well known for its interest in developments in the Global South, or the “third world” in the language of the period. My view is that, as editor of the magazine, you keep with this very useful, internationalist tradition. In this framework, can you tell us the differences between the effects of catastrophe capitalism in the Global South as compared to the Global North?

    JBF: Monthly Review has always focused on imperialism, especially in terms of the relations of the Global North to the Global South, as the key to the critique of the capitalist world system. In terms of “catastrophe capitalism,” I think our most important contributions in the last couple of years have included the article on “Imperialism in the Anthropocene,” written by myself, Hannah Holleman, and Brett Clark, and the work that we have done on COVID-19 in relation to Rob Wallace, especially his books Big Farms Make Big Flu and Dead Epidemiologistsand his article with others on “COVID-19 and the Circuits of Capital,” as well as the article that Intan Suwandi and I did on “COVID-19 and Catastrophe Capitalism.”

    In “Imperialism in the Anthropocene,” we developed an argument that departs from most traditions on the left, in that it takes physical geography seriously as the climate catastrophe demands. Thus, we explained how low-latitude countries, essentially the Global South, are affected most, as a result of Earth System dynamics, by climate change, independently of the fact that they are already economically exploited by the nations of the Global North. Moreover, the effects of climate change on such factors as the elimination of glaciers (or water towers); desertification; the flooding of islands and other low-lying areas; the eradication of tropical forests and coral reefs; the extinction of species; and the creation of hundreds of millions, even as much as a billion, climate refugees expected this century—are all being factored into the global imperial strategy of the United States and other nations in the Global North. We, therefore, desperately need a theory of imperialism in the Anthropocene that would take all of this into account.

    In the work of Wallace and other theorists of what is known as Structural One Health (a historical-materialist approach to epidemiology), the emergence of COVID-19 and other zoonoses are seen as connected to the circuits of capital and the extension of agribusiness into ecosystems and wilderness areas. This work provides a rich understanding of the relation of global commodification to global contagions. Moreover, the same analysis points to the consequences of the privatization of public health under neoliberalism and the effects on the spread of disease, especially among the poor, pointing to the contemporary significance of Frederick Engels’s notion of “social murder.”

    HG: As the United States is one of the two world superpowers, its government’s economic policies play a crucial role in the climate crisis. Would you say that the Donald Trump administration has left its footprint on the development of catastrophe capitalism and, if so, how? Do you believe that Joe Biden might follow a different path?

    JBF: The Trump administration accelerated catastrophe capitalism in a number of ways. As detailed in our article “Imperialism in the Anthropocene,” it expedited the expenditure of trillions of dollars on the building of fossil fuel pipelines and fracking in North America in order not only to expand fossil fuel production, but also to entrench fossil fuel production so that it could not be displaced. It pulled out of the Paris Agreement on Climate Change, and removed environmental protections wherever it could, both nationally and internationally. Meanwhile, it started a New Cold War directed at China. This included putting a tariff on Chinese solar panels imported to the United States.

    Politically, the Trump phenomenon had its basis in the development of a neofascist political movement/political formation based in the white lower-middle class, with its nationalist, racist, misogynist ideologies and its hatred of both the greater part of the working-class majority (the most diverse section of the population) and of the upper-middle class professionals. In essence, monopoly capital has drawn on the rearguard of the capitalist system, as C. Wright Mills called it, to stabilize itself during a period of declining U.S. hegemony, increasing class polarization, and the rise of a significant socialist movement.

    The Trump administration, backed by the Federal Reserve, poured trillions into the coffers of corporations and the rich in tax reductions followed by aid in response to the pandemic. The result is that U.S. billionaires are running off with the store. While the economy has had negative growth, Jeff Bezos saw his wealth increase by $74 billion and Elon Musk by some $76 billion year-to-date [December 2020]. All of this has been supported by increasing U.S. federal deficits. The financial system has been expanding at a record pace during the pandemic. All of this means a bubblier economy, which will burst in the end.

    Unfortunately, not much help in any of this can be expected from the Biden administration, which represents a neoliberal politics, different from that of Barack Obama and Hillary Clinton only to the extent that the situation is now considerably more desperate. The current administration seems destined to attempt to expand its reach to elements of the non-Trumpist right, as the Democrats and Republicans continue to fight to gain the support of the lower-middle class section of the electorate. In terms of the forward movement of society, we will see very little. In fact, Biden promised Wall Street that nothing would change if he were elected. This seems to be confirmed by the fact that 83 percent of the top thirty members of the Biden team have close connections to the billionaire-plutocratic class (see the article by Laurence Shoup in the May 2021 issue of Monthly Review). In short, the Biden administration has no interest in rocking the boat.

    Part of this has to do with the already destabilized state of the system, resulting from the overaccumulation and financial crisis of capital, for which the ruling class and its political representatives have no answers. The current “solution” is in the direction of the greater repression of the population via an enhanced surveillance capitalism, the promotion of the carceral state, continuing privatization of public schools, a New Cold War with China, and so on. Biden is openly opposed to the Green New Deal (his proposed $2 trillion of spending in this area is only one-twentieth of that proposed by the Green Party’s Green New Deal, and one-eighth of what was proposed by Bernie Sanders), to Medicare for All, and to nearly every other needed progressive program. The result is likely to be a neoliberal disaster leading to a restoration of the neofascist wing. The left’s only choice is to find a way to break the current undemocratic rules of the game.

    HG: The new virus originated in China, both the second world superpower and the world’s biggest polluter. Can we expect that China’s ruling Communist Party will have learned the lessons of the pandemic, and change its policies in the future?

    JBF: To say China is the world’s biggest polluter is true in one respect and misleading in others. China, it is true, is the biggest carbon emitter. But it is way below the United States and the other wealthy countries in its carbon emissions per capita. Moreover, in terms of the carbon that has accumulated in the environment as a result of historic emissions (the really important figure), the bulk has come from Europe and North America. Finally, a very large share of China’s emissions is associated with production for multinational corporations in the core of the capitalist system, which import this production to their own countries. Essentially, production that would have occurred in the capitalist core is now happening in the periphery, but still for the capitalist core. It makes sense to see the bulk of such emissions as associated with the core countries. The United States has a trade deficit with China. China supplies produced goods and the United States asks them to hold dollars in return.

    The fact that the COVID-19 virus originated in China has less to do with China itself than with the circuits of capital globally and the destruction of ecosystems and wilderness areas, with zoonotic spillovers. No doubt China will institute and is instituting new regulations, for example, in relation to wet markets. But this is not the core of the problem.

    In terms of overall ecological responses, China, while an epicenter of ecological destruction, is also an epicenter of ecomodernism and environmental reform. It has made “ecological civilization” an official goal, unlike countries in the West. How we understand this is important. There are indications that China under its current leadership is taking decisive environmental steps (although hardly the ecological revolution that is needed). China is now the world leader in clean energy technology. I just read a very interesting book by Barbara Finamore, published by Polity, entitled Will China Save the Planet? (2018). We have plenty of reason to be skeptical. Yet, given all that China is actually doing in terms of seriously addressing its ecological crisis and that of the world, the question remains. As a post-revolutionary state, with a quite different social construction from that of the mature monopoly capitalist economies of the West, China, with all of its contradictions, may still have a hidden potential to move in the direction of its official goal of an “ecological civilization.” My view is that this depends ultimately, as elsewhere, on the spread of a genuine ecological revolution emerging from the ground up. That this is at least possible in China is suggested by its current rural reform movement.

    HG: The pandemic has not only considerably reduced U.S.-China trade, but it has also intensified the struggle between the two countries for global hegemony. Could this lead to broader geopolitical changes, and do you think that it could also signal the beginning of the end of globalization?

    JBF: A New Cold War is being launched by Washington against Beijing, explicitly aimed at bringing down the Chinese Communist Party, and then resubordinating China to the world imperial system, in a replay of the demolition of the Soviet Union. All of this is spelled out by the U.S. State Department and in foreign policy circles and is being supported by the U.S. capitalist class and multinational corporations, which realize that a China Century, replacing the American Century, is not in their interests. The Trump-initiated trade war and military buildup directed at China (and indeed both China and Russia) is now entrenched and is continuing in the Biden administration. U.S. allies, like Australia, are being asked to sacrifice their own trade interests to the New Cold War pact. This is meant to be a major geopolitical shift. China is responding in its own way by furthering its Belt and Road Initiative and creating with the 2020 Regional Comprehensive Economic Partnership the largest trade bloc in the world.

    I don’t think this will signal the end of globalization, which has its basis in global labor arbitrage, whereby multinational corporations mainly centered in the Global North locate the industrial production as measured by employment primarily in the Global South. The object is to exploit low unit labor costs, providing large profit margins (or rates of surplus value) for these corporations. But we are seeing a geopolitical shift in the growth of global blocs within this. U.S. multinational corporations are pulling out of China to some extent and relocating in other low unit labor cost countries such as India and Mexico.

    HG: In February, at the beginning of the COVID-19 outbreak, the Italian radical philosopher Giorgio Agamben wrote that the lockdowns and other government measures against the virus are intended to permanently establish a “state of exception” and make this appear to be normal. He was also worried by people accepting the restrictions of their freedoms almost with no complaint. However, we later saw people protesting violently in the streets against the lockdowns and refusing to comply with instructions even to wear face masks and keep social distancing. Do you agree with Agamben, and how do you explain these reactions to government measures? Is their reaction progressive or reactionary?

    JBF: It is hard to answer this since international situations vary so much. In the United States, we saw with racial solidarity protests in May and June 2020 the biggest mass protests in the country since the U.S. Civil War, with working-class whites and youth on a scale never seen before crossing the color line to join protest/revolt against the public police lynchings of Black people. But this was also a response to the pandemic, the lockdowns, and the laying off of millions of people. In many places, it took the form of a revolt against capital showing that there is a suppressed anger at the base of society. Of course, the neofascist, white supremacist movement based in the lower-middle class also was in evidence, but they lacked the numbers and power of those revolting against the system. For the neofascists, their main advantage is their ability to pull out their guns and even to fire them in some cases, with the support of the police. The Trump administration did everything it could to promote these “militias” and back them up with its own paramilitary forces. This is the situation in the United States. It is lessened somewhat on the surface with the coming into office of the Biden administration. But the contradictions remain.

    HG: To combat the virus, governments all over the world have resorted to, or are seriously contemplating, unprecedented state-interventionist measures (supplementary direct payments to people who cannot go to work due to the lockdowns, nationalization of private hospitals and health care providers in Spain, nationalization of railways in Wales, etc.), which conflict with free-market ideology. Could this lead to a change in the capitalist paradigm similar to what happened with the New Deal in the United States following the 1929 crisis and the implementation of Keynesian policies in Europe after the Second World War?

    JBF: One would hope so, but I am skeptical. It is strange to me that Europeans are looking to the U.S. New Deal, which was not nearly as radical as many historic changes that developed in Europe in the same period. The First New Deal, during Franklin Delano Roosevelt’s first term in office, was to a considerable extent a form of conservative corporatism. The New Deal only radicalized, and we are only talking here of about four years, in the Second New Deal, beginning in 1935, due to the Great Revolt from Below with the formation of industrial unionism, which involved pitched battles all across the country. It was not a top-down development. Roosevelt merely saw a chance to get at the head of this movement and contain it, to save capitalism. The New Deal did not increase overall government spending on public works in the United States, since the federal increases in spending in this area merely compensated for the drop in government spending at the state and local levels. In 1937–38, there was a recession within the depression decade. All sorts of radical things were proposed in 1938 but nothing really happened. In 1939, the war orders from Europe began, and the New Deal and the Great Depression ended, with the Second World War. There were some important results, particularly social security legislation. But overall, the New Deal did little in transforming the system. It merely stands out in relation to the period of entrenched ruling class power that followed. U.S. civilian government spending on consumption and investment as a percentage of GDP did not increase in the decades after the Second World War, but has remained pretty much on the level of 1939. To change this in the United States would require a New Great Revolt from Below. Some of the nationalizations occurring in Europe could have a positive effect, but unless it is part of a movement toward socialism, it will be the usual nationalizations for capital, buying them out when they are losing money, and reprivatizing once these markets are profitable again.

    HG: It seems that even a section of mainstream politicians in the United States and Europe support a Green New Deal, a name that directly refers to Roosevelt’s 1933 New Deal. Do you see this as a victory of the ecosocialist movement or an initiative to promote green capitalism?

    JBF: It is difficult to say what the Green New Deal represents because there are so many versions of it, all of which are rejected of course by the Biden administration. (Obama, incidentally, officially included a corporatist Green New Deal in his first presidential race and then dropped it as soon as he was elected.) The Green New Deal with a “just transition” proposed by Alexandria Ocasio-Cortez and Bernie Sanders could be described as a People’s Green New Deal and would be important if it inspired a genuine ecological revolution, forcing ever greater efforts. But this is not in the cards now without a massive movement from below, which briefly looked possible when the climate movement was on fire, but now has abated in 2020, due largely to the pandemic. Some versions of the Green New Deal are so feeble from the start as to be meaningless. And with Biden now in office, anything resembling an actual Green New Deal is off the agenda for the Democratic Party. In general, U.S. politicians will sign up for things that sound good if the polls point to a lot of public support, and if it is so nebulous as to not constitute a recognizable threat to business. So, the mainstream political support for real change in this sense is largely illusory, unless there is some push from below powerful enough to challenge capital. This, however, requires real organization, and there is little to point to in that respect.

    HG: The inability of capitalist states to fight the pandemic, largely due to the underfunded and understaffed health systems—together with the fact that vulnerability is closely tied to class, race, and gender—and the concomitant economic crisis have created hope among some radical leftists that an increasing number of people in the world might envision a noncapitalist alternative. Do you think that this hope is realistic?

    JBF: The question of whether hope is realistic always sounds strange to me. The question is whether hope is necessary. We shouldn’t be trying to predict the future so much as to engage in the necessary struggles, recognizing that the world’s population now has its back to the wall. I think this is what scares the ruling classes. They know a struggle is inevitable and they know they could lose. Marxists have long argued for freedom as necessity. At no time has this stance been more realistic than today, since the reality of our world is one of catastrophe capitalism. If it is impossible to save the world, humanity, and most of the world’s known species, then the struggle must become that much fiercer, the impossible has to be made possible.

    HG: In a discussion you had with Michael Yates, published in the April 19, 2020, online edition of Janata Weekly, you say that the way we can confront catastrophe capitalism is “the building of a vast, unstoppable socialist (or ecosocialist) movement.” This is a normative general statement, which however does not specify in what way the various national movements can achieve their anticapitalist goals: through revolution, or through the Poulantzasian “democratic road” to socialism? What is your view?

    JBF: I don’t think that revolution and a democratic road to socialism are necessarily contradictory. Nicos Poulantzas wrote numerous important works on the state but they were a product of the Eurocommunist period, and quickly receded. I, personally, prefer the analysis of Ralph Miliband, since he started with the harsher reality of the failure of the British Labour Party as a socialist party, as depicted in his Parliamentary Socialism. Since he was responding to a major defeat, he saw the problem of the capitalist state as a greater challenge and therefore raised harder questions. We need a more critical theory of the state than Marxist theory provided in the 1960s and ’70s, which was removed in many ways from the question of revolution—so much so that the Italian political theorist Norberto Bobbio once declared there was no real Marxist theory of the state. It is necessary to turn back to the classical tradition of the withering away of the state associated with Marx and V. I. Lenin, and powerfully revived by István Mészáros in his Beyond Leviathan, which will be published by Monthly Review Press in the beginning of 2022. The Bolivarian Revolution in Venezuela, despite the fact that it has been deeply scarred by the international siege warfare imposed on it by the United States, has things to tell us about how to promote a revolutionary strategy aimed at twenty-first-century socialism, based on Hugo Chávez’s notion of the communal state. But, of course, the conditions in every country are different. There is no universal model.

    HG: Thank you very much for your time. Before we end, could you say a few words about your latest book, The Return of Nature: Socialism and Economy?

    JBF: The Return of Nature was written to carry forward the story told in Marx’s Ecology, covering the period from the death of Darwin and Marx in 1882 and 1883, respectively. Marx’s Ecologyends with the death of Darwin and Marx. The Return of Nature begins with their funerals. It explores the interrelations between socialism and ecology in the century that followed, providing concrete research into ecology as it developed in relation to socialism and materialism. Of course, the developments went in all directions and the story becomes quite complex, especially if given historical depth so that we can comprehend the context in which the various figures emerged. Basically, the thesis is that socialists (some of them social democratic, some of them Marxist, but all deeply engaged with each other) generated ecology as a critical form of thought.

    In arguing this, I follow an analysis that is not only historical but also genealogical. One genealogical line can be seen in terms of those influenced by Marx’s ecological ideas directly, including figures like E. Ray Lankester and William Morris, and those who they in turn influenced, such as Arthur George Tansley, H. G. Wells, and Julian Huxley. The other genealogical line derives more from Engels’s ecological thought and especially his dialectics of nature, which are the focus of Part Two of the book. This leads to the dialectical and ecological contributions of such important scientists as J. B. S. Haldane, Joseph Needham, J. D. Bernal, and Hyman Levy. Some thinkers, such as Christopher Caudwell, Lancelot Hogben, and Jack Lindsay can be said to be products of both lines of development. All of these thinkers were involved not only in the development of ecology, but also in the debates on race, gender, class, and the making of socialism in their time. Nearly all of them contributed to materialist dialectics. The direct influence on the ecology movement in the 1960s and ’70s in the United States and Britain is quite evident, leading to discussions in the epilogue of the work of figures such as Rachel Carson, Barry Commoner, Virginia Brodine, Richard Levins, Richard Lewontin, Stephen Jay Gould, Steven Rose, Hilary Rose, and E. P. Thompson. We thus get a much wider picture of why ecology is such a critical, and indeed revolutionary, doctrine.

    The book also challenges the Western left to recognize that a materialist conception of history is meaningless without a materialist conception of nature—plus the role of dialectics as necessarily related to both. In this way, the long detour of Western Marxism away from the natural-material world is transcended, a necessary task in the deeper ecological and social revolution required in our times.

  • Chinese Contract Labor, the Corporeal Rift, and Ecological Imperialism in Peru’s Nineteenth-Century Guano Boom

    Chinese Contract Labor, the Corporeal Rift, and Ecological Imperialism in Peru’s Nineteenth-Century Guano Boom“, (coauthored with Lola Loustaunau, Mauricio Betancourt, and John Bellamy Foster, Foster listed third), Journal of Peasant Studies (published online November 2021), 25 pp.

    Building on the theory of ecological imperialism in the context of the Peruvian guano boom, this analysis explores the metabolic rift in the human relation to external nature and the corresponding corporeal rift in the destruction of human bodily existence. Guano capitalists robbed Peru of the manure deposited by seabirds, while British imperialism introduced a system of racialized expropriation (the ‘coolie trade’), referred to by Karl Marx as ‘worse than slavery.’ Previous failures to understand this historical tragedy were due to the legal forms adopted, which categorized as semi-free labor what was in fact the social murder of the workers.

  • The New Cold War on China

    The New Cold War on China

    The New Cold War on China,” Monthly Review, vol. 73, o. 3 (July-August 2021), pp. 1-20.

    Beijing has continually sought to defuse the tensions and avert the new Cold War that many are predicting. Credit: “US-China competition can avoid confrontation: China Daily editorial,” China Daily, October 28, 2018.
    Beijing has continually sought to defuse the tensions and avert the new Cold War that many are predicting. Credit: “US-China competition can avoid confrontation: China Daily editorial,” China Daily, October 28, 2018.

    On March 24, 2021, a high-profile article proclaiming “There Will Not Be a New Cold War” appeared in Foreign Affairs, the flagship publication of the Council on Foreign Relations, the principal think tank for U.S. grand strategy. The author, Thomas Christensen, a professor of international affairs at Columbia University and former deputy assistant secretary of state for East Asian and Pacific affairs in the George W. Bush administration, went so far as to acknowledge that “the [Donald] Trump administration basically declared a cold war on China.”1 Nevertheless, no New Cold War, Christensen optimistically indicated, would actually materialize, since Washington under Joe Biden would presumably back away from Trump’s extreme policies toward China given its “vital position in the global value chain.”2 Beijing could not be seen as an aggressive power in ideological or geopolitical terms, but was simply interested in economic competition.

    Yet, what Christensen’s analysis excluded was any mention of the imperialist world system, crowned by U.S. hegemony, which is now threatened by China’s seemingly inexorable rise and pursuit of its own distinctive sovereign project.3 In this respect, the Trump administration’s prosecution of a New Cold War on China was no anomaly, but rather the inevitable U.S. response to China’s rise and the end of Washington’s unipolar moment. Just as the United States declared a Cold War against the Soviet Union and China in the 1940s and ’50s, as part of a grand strategy to secure its global hegemony in the immediate post-Second World War era, today it is declaring a New Cold War on China in the interest of maintaining that same imperial hegemony.

    Indeed, days before Christensen’s Foreign Affairs article went to print declaring that there would be no New Cold War, the Biden administration made it clear that it not only intended to continue the New Cold War, but to accelerate it, pushing it to greater heights. This was evident in the first high-level bilateral talks between the United States and the Peoples’ Republic of China following the election of Biden as U.S. president, held on March 18, 2021, in the Captain Cook Hotel in downtown Anchorage, with U.S. secretary of state Antony Blinken and national security advisor Jake Sullivan sitting across from China’s director of the Office of the Central Commission for Foreign Affairs Yang Jiechi and Chinese foreign minister Wang Yi.4

    In the week prior to this high-level meeting, Washington had set the stage, signaling through its actions its intention to promote a hyper-aggressive Cold War 2.0 directed at China. Thus, on March 12, Biden met with the heads of state of Japan, India, and Australia, representing the new Quad military-strategic alliance led by the United States, widely seen as an attempt to construct an Asian analogue to the North Atlantic Treaty Organization (NATO). The Quad issued a joint statement the entire subtext of which was enmity toward China.5 On the same day, the U.S. Federal Communications Commission blacklisted five Chinese companies including Huawei.6 Late on March 16, less than two days before the bilateral talks with China were set to begin, the Biden administration renewed sanctions against twenty-four officials of the Chinese government, in response to the suppression of dissent in Hong Kong.7

    In a break with diplomatic protocol, Blinken started off the March 18 bilateral talks in Anchorage by bluntly stating that he and the U.S. secretary of defense Lloyd Austin had just returned from a meeting with their counterparts in Japan and Korea, two U.S. leading military allies that share many of Washington’s concerns with regard to China. Washington’s goal, he said, was “to advance the interests of the United States and to strengthen the rules-based international order.” He then entered into a direct challenge to Beijing, referring to “deep concerns with actions by China, including in Xinjiang, Hong Kong, Taiwan, cyberattacks on the United States and economic coercion toward our allies. Each of these actions threaten the rules-based order that maintains global stability.” The United States was ready not only to be competitive, and in some areas “collaborative,” with China, but also to be strongly “adversarial” where necessary.

    Sullivan followed up by pointedly referring to Biden’s hosting of “the Quad leaders’ summit” the previous week, and the Quad military alliance’s security concerns in the Indo-Pacific, thereby foregrounding the warlike pact being formed in Asia against Beijing. He added that U.S. allies and partners had expressed “areas of concern” with respect to China’s use of “economic and military coercion” in its “assaults on basic values” and that the United States would welcome “stiff competition” with China, but that it was also, he intimated, prepared for full-scale conflict.8

    Yang responded by insisting that China firmly upheld “the United Nations-centered international system and the international order underpinned by international law, not what is advocated by a small number of countries [as] the so-called rules-based international order.” “The Chinese people,” he said, “are wholly rallying around the Communist Party of China. Our values are the same as the common values of humanity. Those are: peace, development, fairness, justice, freedom, and democracy.” He stressed the quite different conceptions of democracy represented by China and the United States. Contrasting Beijing’s foreign policy to that of Washington, both historically and in the present, he stated:

    We do not believe in invading through the use of force, or to topple other regimes through various means, or to massacre the people of other countries.… The United States has exercised long-arm jurisdiction and suppression and overstretched [its] national security through the use of force or financial hegemony, and this has created obstacles for normal trade activities, and the United States has also been persuading some countries to launch attacks on China.… With [respect to] Xinjiang, Tibet and Taiwan, they are [each] an inalienable part of China’s territory. China is firmly opposed to U.S. interference in China’s internal affairs. We have expressed our staunch opposition to such interference, and we will take firm actions in response.

    Yang insisted that Washington had no basis to lecture Beijing on human rights given its own record, as symbolized by the protests of the Black Lives Matter movement. “The United States itself does not represent international public opinion, and neither does the Western world.” With respect to “cyberattacks,” he stated, “whether it’s the ability to launch cyberattacks or the technologies that could be deployed, the United States is the champion in this regard. You can’t blame this problem on somebody else.”

    Wang, in turn, indicated that

    China urges the U.S. side to fully abandon the hegemonic practice of willfully interfering in China’s internal affairs.… And in particular on the 17th of March [the day before the meeting], the United States escalated its so-called sanctions on China regarding Hong Kong, and the Chinese people are outraged by this gross interference in China’s internal affairs and the Chinese side is firmly opposed to it.… Just the other day, before our departure, the United States passed these new sanctions. This is not supposed to be the way one should welcome his guests [in these bilateral talks taking place in Alaska], and we wonder if this is a decision made by the United States to try to gain some advantage in dealing with China.9

    Blinken retorted by referring again to questions raised by U.S. allies and partners with respect to China’s actions in violation of the rules-based international order. He emphasized Washington’s determination to build strategic alliances directed at China. Sullivan then touted U.S. technological prowess and its landing, a couple weeks before, of another rover on Mars, working with its allies in Europe—a comment designed to deflate in advance China’s planned landing of its rover Tianwen [Questions to Heaven] 1 on Mars, to take place in May. He harshly criticized the Chinese delegation for its “lectures” and “long, winding statements.”10

    Yang responded that he had “felt compelled to make this speech because of the tone on the U.S. side,” in which the U.S. diplomats chose “to speak to China in a condescending way from a position of strength,” with all the appearance of having carefully “planned” and “orchestrated” this confrontation. Wang followed by returning to Blinken’s veiled reference to Japan and South Korea regarding their concerns about coercion from China. He indicated that it was not clear whether this was actually coming from these countries themselves or was simply a U.S. projection.11

    “For an astonished press, witnessing the [entire] exchange,” as Thomas Wright, a Brookings Institution senior fellow, observed shortly after in the Atlantic, it “was like being present at the dawn of a new cold war.”12 Indeed, as David Stilwell, former assistant secretary of state for East Asian and Pacific affairs under Trump, and Dan Negrea, senior associate of the Center for Strategic and International Studies, wrote ten days later in the National Interest: “Thirty years after the demise of the Soviet Union and the end of the Cold War, the world finds itself in a new cold war” centered on China.13

    Washington continued in the following weeks with its aggressive attacks on China:

    • March 22: The United States, along with the European Union, the United Kingdom, and Canada, issued sanctions on four Chinese officials over alleged human rights violations in Xinjiang.14
    • March 24: The foreign ministers of NATO’s thirty states declared that they were ready to oppose the “authoritarian threats to the rules-based international order,” in cooperation with their allies and partnerships in the Asia-Pacific, thereby singling out China as a common foe.
    • March 25: A week after the bilateral talks, Biden in a press conference declared that “Xi [Jinping, the president of the People’s Republic of China], doesn’t have a democratic—with a small ‘d’—bone in his body” and referred to him as an “autocrat.”15
    • March 28: U.S. trade representative Katherine Tai announced that the United States had no intention of removing the tariffs that Trump had imposed on Chinese goods imported to the United States, affecting a majority of Chinese exports to the United States, and designed to get multinational corporations to delink their value chains from China.16
    • March 30: The Biden administration unilaterally accused China of “genocide and crimes against humanity,” presenting this formally in its annual human rights report, though lacking any credible evidence to support its charges.17
    • April 8: Washington blacklisted seven Chinese supercomputing firms.18
    • April 30: The Biden administration arranged a public meeting between official U.S. State Department representatives and their Taiwan counterparts. This broke with the agreement with China, going back to the 1970s—known as the Three Communiques—according to which the United States would avoid all official contacts with Taiwan, which China considers to be part of One China, with two governing systems.19
    • May 5: The Group of Seven core capitalist nations, consisting of the United States, Japan, Germany, France, the United Kingdom, Italy, and Canada, presented itself as the global guarantor of the “rules-based international order,” strongly criticizing China over its domestic affairs.20
    • May 7: In a UN Security Council meeting chaired by Wang Yi, Blinken criticized China and Russia for flouting international law, and while not actually referring to China by name, which he has repeatedly accused of genocide, he stated: “Asserting domestic jurisdiction doesn’t give any state a blank check to enslave, torture, disappear, ethnically cleanse their people, or violate human rights in any other way.”21
    • May 26: (1) Biden ordered U.S. intelligence agencies to investigate the laboratory theory of the origins of SARS-CoV-2 in China; (2) Kurt Campbell, coordinator for Indo-Pacific affairs on the National Security Council, Biden’s Asia tsar, declared that “the period that was broadly described as engagement [with China] has come to an end.”22

    In its first one hundred days, the Biden administration wasted no time in ratcheting up U.S. military pressure on China. From January to April 2021, U.S. military activity along China’s borders increased sharply, with incursions of U.S. military ships in Chinese-claimed territorial waters rising by 20 percent and U.S. military aircraft incursions in Chinese air space growing by 40 percent. In March, Germany deployed a warship in the South China Sea aimed at China, with Washington welcoming “Germany’s support for a rules-based international order in the Indo-Pacific.” In April, the United States sent an additional carrier strike group to bolster its forces in the South China Sea. Meanwhile, Britain is sending its Queen Elizabeth II carrier strike group into the South China Sea in a tilt to the Indo-Pacific. The United States currently has four hundred military bases and some 375,000 command personnel (military and civilian) in the Indo-Pacific encircling China, including more than eighty thousand troops stationed in Japan and South Korea.23

    Viewed in this overall context, the confrontation between Washington and Beijing in Anchorage, rather than simply constituting an angry exchange between irate diplomats, can be seen as revealing the basic contours of the U.S. imperial grand strategy with respect to China, along with the nature of China’s strategic response. Washington’s insistence on what it calls a “rules-based international order,” in contrast to Beijing’s advocacy of a broad UN-based order of sovereign states underpinned by international law (traditionally referred to as the Westphalian system), is more than a dispute over phraseology. Rather, it stands for the current U.S. strategy of compelling China to comply with the hegemonic political-economic order imposed by an alliance of major powers under U.S. leadership, so as to “lock in” current imperial power relationships.24 As China has indicated, if the “rules-based order” is “set by the US alone, then it cannot be called international rules, but rather ‘hegemonic rules.’… If it refers to rules set by the US and a handful of other countries, then it cannot be called international rules either, but rather ‘clique rules,’ which run counter to the principle of democracy and won’t be accepted by the majority of countries in the world.”25

    In particular, the United States and the other capitalist economies at the apex of the world system, notably the triad of the United States/Canada, Western Europe, and Japan, are committed to preserving not only the hegemonic institutions forged in the Cold War era, such as the World Bank and International Monetary Fund, coupled with the system of U.S.-dominated military alliances, but also what is referred to as the post-Westphalian system or liberal international order that emerged during the era of “naked imperialism” from the 1990s to the present, made possible by the vacuum created by the Soviet Union’s disappearance from the world stage and the resulting U.S. “unipolar moment.”26 During the post-Cold War era, a continuing stream of “humanitarian interventions” in the affairs of other states have been carried out by the United States and its allies, generating an era of perpetual war—beginning with the expansion of U.S. (and NATO) power in Eastern Europe with the dismemberment of Yugoslavia, as well as military interventions in the Middle East and Africa—in violation of the sovereignty of states.27 This new aggressive imperial posture has been legitimated in terms of the “responsibility to protect” and the promotion of “democracy” and “humanitarian” values—as these are determined by the United States and other core capitalist powers, standing in for the “rules-based international order.”28

    The strategic objective of the New Cold War on China from the standpoint of the United States and its allies is not so much to contain China economically, politically, and militarily, which is not possible, but rather to find ways to constrain it, making it impossible for it to effect changes in the global order despite its emerging power position. The new imperial grand strategy is thus designed to replicate on a global scale (and in the thermonuclear age) the famous “gunboat diplomacy” imposed on the Qing dynasty by the leading imperial powers during China’s “Century of Humiliation,” stretching from the Opium Wars up to the Second World War.29 This was symbolized above all by the British destruction of the emperor’s Summer Palace in 1860, designed to humiliate the Qing dynasty. In 1900, during the so-called Boxer Rebellion (Yihetuan Movement), the great powers invaded China in what was referred to as the Eight-Nation Alliance (then consisting of Britain, the United States, France, Germany, Austria-Hungary, Italy, Japan, and Russia), imposing their authority on the Qing dynasty and forcing further unequal treaties on the country.30 Part of the justification given at the time was that China needed to conform to international rules of trade and conduct.31

    In an analogous fashion to the treatment of China in the nineteenth and early twentieth centuries, China today, according to current U.S. imperial grand strategy, is to be economically, geopolitically, and militarily constrained by a broad alliance of imperial powers. The object is ultimately that of bringing about the demise of the Communist Party of China (CPC) and tightly binding China to the imperial order of global monopoly-finance capital, while reducing it to permanent subaltern status. The principal means of achieving this will be a system of unequal treaties—the rules-based international order—imposed by a coalition of great powers, with the United States at the top.32

    The chief mechanism for defeating China was spelled out in 2017 by Harvard foreign policy analyst Graham Allison, a member of the Council on Foreign Relations, in his book Destined for War: Can America Escape the Thucydides Trap?, a work highly praised by Biden, former U.S. secretary of state Henry Kissinger, and former CIA director and former commander of the U.S. Central Command David Petraeus. In Allison’s words:

    US forces could covertly train and support separatist insurgents. Fissures in the Chinese state already exist. Tibet is essentially occupied territory. Xinjiang, a traditionally Islamic region in western China, already harbors an active Uighur separatist movement responsible for waging a low-level insurgency against Beijing. And Taiwanese who watch Beijing’s heavy-handedness in Hong Kong hardly require encouragement to oppose reunification with this increasingly authoritarian government. Could US support for these separatists draw Beijing into conflicts with radical Islamist groups throughout Central Asia and the Middle East? If so, could these become quagmires, mirroring the Soviet intervention in Afghanistan where U.S.-supported mujahideen “freedom fighters” bled the Soviet Union?

    A subtle but concentrated effort to accentuate the contradictions at the core of Chinese Communist ideology…could, over time, undermine the regime and encourage independence movements in Taiwan, Xinjiang, Tibet, and Hong Kong. By splintering China at home and keeping Beijing embroiled in maintaining domestic stability, the US could avert, or at least substantially delay, China’s challenge to American dominance.33

    All of this is now New Cold War policy.34 Moreover, by attacking China with allegations of “genocide” and “crimes against humanity” in relation to its internal populations, the United States is able to justify its New Cold War on China, including its actual hybrid warfare, combining an array of political, economic, financial, technological, cyber, and more traditional overt and covert military means.35

    The ”Rules-Based Order” and New U.S. Imperial Grand Strategy

    The foremost U.S. theorist of the rules-based international order is G. John Ikenberry, a professor of politics and international affairs at Princeton University and a member of the Council on Foreign Relations, whose work has had a strong influence on the Biden administration.36 In a famous 2004 essay on “Liberalism and Empire,” Ikenberry—although not denying that the U.S. past and present had often been characterized by imperial domination (even going so far as to cite leading left revisionist historians such as William Appleman Williams, Gabriel Kolko, and Joyce Kolko)—nonetheless argued strongly against those in U.S. foreign policy circles who believed that the United States should openly comport itself as an empire.37 A more effective hegemonic strategy, Ikenberry argued at the time, would be to utilize the unipolar moment to establish a rules-based international order that would secure U.S. and Western global domination as a fait accompli well into the future, even in the face of eventual declining U.S. power.38

    As China’s historic rise became more apparent, Ikenberry wrote a 2008 essay for Foreign Affairson “The Rise of China and the Future of the West,” in which he insisted that the “globalized capitalist system” and the Western liberal international order could only be preserved if direct U.S. hegemony gave way to the rules-based order enforced by the collective weight of the United States together with its major allies.39 In this way, an “American-led liberal hegemonic order” could be secured indefinitely.40 As U.S. secretary of state Hillary Clinton put it, it was essential to prevent a more “multi-polar world” from emerging by instituting in its stead a “multi-partner world,” a set of U.S.-led alliances and partnerships that would guarantee Washington’s continued dominance in the twenty-first century.41

    This conception of a rules-based order as means of organizing a global counterrevolution found strong bipartisan support in the United States and, most significantly, within the Pentagon. For Trump’s secretary of defense James N. Mattis (known as Mad Dog Mattis), speaking to cabinet secretaries and the joint chiefs of staff on July 20, 2017, “the greatest gift the greatest generation left us was the rules-based postwar international order,” which he illustrated by pointing to “color representations of NATO, capital markets and various trade deals to which the United States is signatory,” standing not for international law—certainly not the UN system—but rather for the U.S./NATO-dominated liberal international and strategic order.42

    Thus, central to the whole conception of a hegemonic rules-based international order, according to Ikenberry, is the surmounting of a UN-based system geared to the sovereign equality of states and a polycentric world, and which includes China and Russia as permanent members of the Security Council. Instead, the rules-based international order is meant to codify the changes introduced in the 1990s, establishing the “contingent character of sovereignty,” such that the great powers have a “a right—even a moral obligation—to intervene in troubled states to prevent genocide and mass killing. NATO’s interventions in the Balkans and the war against Serbia,” he wrote, “were defining actions of this sort.”43 The doctrine of humanitarian imperialism based on “the right to protect” thus became key to the definition of the rules-based international order.

    This notion of the contingent character of sovereignty was clarified by Richard Haass, former deputy secretary of state in charge of policy planning in the George W. Bush presidency and current head of the Council on Foreign Relations, who explained that the shift to more limited conceptions of sovereignty reflected the new hegemonic view that “sovereignty is not a blank check. Rather, sovereign status is contingent on the fulfillment by each state of certain fundamental obligations, both to its own citizens and to the international community. When a regime fails to live up to these responsibilities or abuses its prerogatives, it risks forfeiting its sovereign privileges including, in extreme cases, its immunity from armed intervention.”44 And when it comes to armed intervention, as Haass famously argued elsewhere, the United States is the self-appointed “sheriff” of the international order, while the remainder of the triad is the “posse.”45 Although the United States has recently complained of Chinese aggression and its growing global threat, due to its one foreign military base located in Djibouti in Africa, Washington as the global sheriff has up to a thousand military bases spanning the entire globe, many of these surrounding China.46

    The doctrine of a rules-based international order has been used to justify the continual U.S./NATO military interventions and U.S.-sponsored coups directed at populations in five of the six inhabited continents since the 1990s—all in the name of the promotion of democracy and human rights.47 “Liberal internationalism,” Ikenberry, its strongest intellectual defender, indicates in his latest work, “is implicated in almost constant military interventions during the era of American global dominance,” while under neoliberalism, the economic counterpart of this has become a mere “platform of rules and institutions for capitalist transactions,” invariably favoring the powers-that-be.48

    The People’s Republic of China: An Emerging Sovereign Superpower

    Commenting in January 1850 on the first stirrings of the Taiping Revolution (1850–64) in China, Karl Marx and Frederick Engels pointed to the birth of “Chinese socialism.” European reactionaries with their armies, they indicated, might someday arrive at the frontiers of China only to “find there the inscription”:

    République Chinoise,

    Liberté, Egalité, Fraternité49

    Marx and Engels’s extraordinarily prescient insight was a century premature. Six years after they wrote this, the British and French armies attacked China again in the Second Opium War, taking advantage of the disorder created by the Taiping Revolution to extend the European imposition of unequal treaties on China. Here they built on a process initiated by the British in the First Opium War in 1839, at the end of which China had been compelled to cede Hong Kong to Britain in the Treaty of Nanking in 1842.50 The Opium Wars introduced the Century of Humiliation in China that was to last until the victory of the Chinese Revolution in 1949 and the founding of the People’s Republic of China.51 The period of humiliation is seen as having finally ended with Mao Zedong’s speech “The Chinese People Have Stood Up,” on September 21, 1949, his opening address at the First Plenary of the Chinese People’s Political Consultative Conference. On that occasion, Mao declared:

    The Chinese people, comprising one quarter of humanity, have now stood up. The Chinese have always been a great, courageous and industrious nation; it is only in modern times that they have fallen behind. And that was due entirely to oppression and exploitation by foreign imperialism and domestic reactionary governments. For over a century our forefathers never stopped waging unyielding struggles against domestic and foreign oppressors, including the Revolution of 1911 led by Dr. Sun Yat-sen, our great forerunner in the Chinese revolution.… We have closed our ranks and defeated both domestic and foreign enemies through the People’s War of Liberation and the great people’s revolution, and now we are proclaiming the founding of the People’s Republic of China.… Ours will no longer be a nation subject to insult and humiliation. We have stood up.… Our national defense will be consolidated and no imperialists will ever again be allowed to invade our land.… Hail the founding of the People’s Republic of China!52

    Today, the People’s Republic of China remains focused—through what is now seen as a century-long struggle, to culminate in 2049—on overcoming the remaining traces of what Mao called the “history of insult and humiliation” going back to the Opium Wars.53 In doing so, it has initiated a course known as “China’s Dream,” enunciated by Xi in November 2012, but reflecting the entire path of Chinese postrevolutionary development. “Only by upholding socialism with Chinese characteristics,” Xi has declared, “can we bring together and lead the whole Party, the whole nation and the people of all ethnic groups in realizing a moderately prosperous society by the centenary of the CPC in 2021 and in turning China into a prosperous, democratic, culturally advanced and harmonious socialist country by the centenary of the People’s Republic of China in 2049.”54 To this has been added the longer term objective of creating an ecological civilization and a beautiful China, with ecology seen as “the most inclusive form of public wellbeing.”55 The first centenary goal, that of 2021, is now seen as fulfilled. But the second centenary goal still needs to be achieved. The centenary of the People’s Republic of China, 2049, is to mark via “socialist modernization” the “national rejuvenation” of China, having finally triumphed over the century or more of foreign and domestic oppression that produced the great divergence between China and the West.56

    Driven by this sovereign historical project, China has remained an enemy of imperialism and a strong, unswerving defender of the Westphalian system of state sovereignty, not only in terms of the original Peace of Westphalia and the UN Charter, but also backing the anti-imperialist objectives of the Third World Bandung Conference of 1955, which, based partly on V. I. Lenin’s principle of the self-determination of nations, asserted the equal rights of developing countries, and the importance of a polycentric world.57 Xi articulated this anti-imperialist stance in 2017:

    From the principles of equality and sovereignty established in the Peace of Westphalia over 360 years ago to international humanitarianism affirmed in the Geneva Convention more than 150 years ago; from the four purposes and seven principles enshrined in the UN Charter more than 70 years ago to the Five Principles of Peaceful Coexistence championed by the Bandung Conference over 60 years ago, many principles have emerged in the evolution of international relations and have been widely accepted. These principles should guide us in building a community of shared future for [hu]mankind.

    Sovereign equality has been the most important norm governing state-to-state relations over the past centuries, and the cardinal principle observed by the United Nations and its agencies and institutions. The essence of sovereign equality is that the sovereignty and dignity of all nations, whether big or small, strong or weak, rich or poor, must be respected; their internal affairs brook no interference, and they have the right to independently choose their social system and development path.58

    China’s anti-imperialist stance is tied up with its whole developmental path. Its extraordinary advance, including the more than quadrupling of its economy since the late 1970s and the recent elimination of absolute poverty, has been dependent not only on its growing integration into the world economy, but also, and no less importantly, on the limitations that it has been able to impose on the capitalist nature of that integration.59 Crucial in this regard is the existence of a number of key socialist-oriented elements distinguishing the Chinese system: (1) social ownership of land, which in the countryside is still partially managed collectively by village communities; (2) state control of money and finance; (3) state ownership of key sectors of industry, including banks, allowing for high rates of investment; and (4) a planning system, complementing the market economy, directed by the CPC by means of five-year plans. There is a continuing emphasis within the CPC on Marxist and dialectical conceptions, which are seen as keys to the fulfillment of China’s sovereign project of the creation of a modern, developed “socialist democracy” with Chinese characteristics. A core element in Chinese revolutionary theory, practice, and conception of socialist democracy is the mass line, or the notion of “from the masses to the masses.”60 Together, these traits mark China as a postrevolutionary society that is neither entirely capitalist nor entirely socialist, but that is following an overall developmental path that holds open the possibility of continued movement toward the latter.61

    The internal dynamism of the Chinese economy, its highly developed infrastructure, and its low unit labor costs (often entailing extreme exploitation in export industries) has attracted enormous investments by multinational corporations, allowing China to become the new workshop of the world in what has been called the Third Industrial Revolution, based on digital technology.62 Due to the strength of its planning system, China was able to retain a larger portion of overall surplus value generated than in the case of most developing countries, and to create partnerships with multinationals that allowed it to acquire advanced technology.63

    While still a poor country, with per capita income one-fifth that of the United States, China has managed to move to the forefront of what Klaus Schwab, founder and executive chairman of the World Economic Forum, has called the Fourth Industrial Revolution characterized by new technologies that are designed to fuse the physical, digital, and biological worlds.64 It is China’s technological prowess, its financial controls that limit the power of the U.S.-dominated imperial order, and its geopolitical assertion of a One China, which includes recapturing its historic territory, that have most disturbed the core capitalist countries. The United States and its chief imperial allies would like to see China tightly bound within what Thomas Friedman called the “golden straitjacket” of the prevailing globalized order, which is designed to place constraints on the political and economic freedoms of nations (particularly those outside the core), preventing them from going against the existing rules and relations of global power.65

    Part of the present rejuvenation of China’s historical role as a civilization, as conceived by Beijing today, is the resurrection of the ancient Silk Road, a trade route that extended from China to South Asia and the Middle East all the way to Europe. In fall 2013, Xi proposed his vast One Belt, One Road project (known in the West as the Belt and Road Initiative) involving building a Silk Road Economic Belt, extending from South and Central Asia to the Middle East and Europe, coupled with a Twenty-First-Century Maritime Silk Road that would connect China to Southeast Asia, the Middle East, Africa, and Europe via various sea lanes. In 2017, China further extended its Maritime Silk Road to Latin America. China was to be the principal initiator and founder of One Belt, One Road, providing the seed money, but other countries were invited to join with the financing and planning of infrastructure. Thirty-nine countries in sub-Saharan Africa, thirty-four in Europe and Central Asia, twenty-five in East Asia and the Pacific, eighteen in Latin America and the Caribbean, seventeen in the Middle East and North Africa, and six in South Asia are now affiliated with One Belt, One Road. All told, the Belt and Road Initiative encompasses 139 countries and close to two-thirds of the world population. As the Council of Foreign Relations noted to its chagrin, “Xi Jinping invites heads of state to China for Belt and Road forums, contributing to the view that Beijing is an economic power on par with the United States.”66

    At the Anchorage meeting between the top U.S. and Chinese diplomats in March 2021, Blinken lauded the efforts of the present U.S. administration at gaining control of the COVID-19 pandemic.67 His Chinese counterparts were no doubt unimpressed. In May 2021, the United States has seen over six hundred thousand deaths from COVID-19, a mortality rate of over 1,800 deaths per million. In contrast, China had experienced less than five thousand deaths, a rate of 3 deaths per million.68 The Chinese government years before, at the highest level, had stressed the dangers of new pandemics emerging, and was consequently far better prepared. In 2017, Xi declared before the UN General Assembly: “Pandemic diseases such as bird flu, Ebola and Zika have sounded the alarm for international health security. The WHO [World Health Organization] should play a leadership role in strengthening epidemic monitoring and in sharing information, best practices and technologies. The international community should step up support and assistance for public health in African countries and other developing countries.”69 Confronted with the emergence of a novel coronavirus (SARS-COV-2), the Chinese government made various false steps (at the local level) in the initial days, followed by the Chinese state attacking the epidemic full force, in cooperation with the population, which self-mobilized on the model of “people’s revolutionary war,” involving self-organization in localities. This revolutionary mobilization in response to the epidemic was a resounding success, pointing to the internal solidity of the polity and the vast potential revolutionary protagonism of the Chinese people.70

    China has declared that its COVID-19 vaccines constitute a “public good.” Already by April 2021 China had donated and exported 48 percent of its domestically manufactured vaccines—donating the vaccines to eighty countries and exporting to forty. The United States and United Kingdom had meanwhile shared their vaccines with zero countries, while insisting on maintaining international patent restrictions on the vaccines. By June 1, China had shared (exports and donations) 323.3 million doses of their COVID-19 vaccines with other countries, the European Union had shared 143.8 million doses, mostly with other developed countries, and the United States had shared a mere 7.5 million doses.71 Washington has accused China of “vaccine diplomacy” and has suggested that it is breaking the rules-based order to “outcompete the United States and its allies” in the international market for COVID-19 vaccines.72 China has geared up its production of COVID-19 vaccines to around five billion doses a year, most of which it plans to share as an international public good with the developing world.73

    China’s Third Revolution and the U.S.-Led Global Counterrevolution

    In his October 18, 2017, report to the Nineteenth National Congress of the CPC, Xi stated that “the Chinese nation, which since modern times began had endured so much for so long [an allusion to the Opium Wars and the Century of Humiliation], has achieved a tremendous transformation: it has stood up, become better off, and grown in strength; it has come to embrace the brilliant prospects of rejuvenation.”74 For those aware of the history of the People’s Republic of China, it was clear that Xi was speaking of the entire revolutionary process of national rejuvenation. Mao famously declared that, with the Chinese Revolution, China had stood up. The Deng Xiaoping era, often referred to as the second era in the process of national rejuvenation, was just as clearly about China becoming better off, through rapid economic development and integration within the capitalist world economy. The New Era, in the period of Xi’s leadership, has been directed toward constructing a strong, self-sufficient, and sustainable Chinese system, aimed at “building a moderately prosperous society in all respects” by 2021, and “of moving on to all-out efforts to build a great modern socialist country” by 2049.75

    Each stage in the Chinese Revolution has meant a major shift in the revolutionary process, so that the Mao, Deng, and Xi periods are sometimes referred to as China’s First, Second, and Third Revolutions.76 The “principal contradiction” in the New Era (or Third Revolution), the surmounting of which is necessary if China is to achieve its objectives, according to Xi, is the “unbalanced” or uneven and thus “inadequate” nature of Chinese development, characteristic of the capitalist growth model. This is manifested in deepening class inequality, divisions between rural and urban areas, promotion of economic development at the expense of cultural development, and an unsustainable human relation to the environment.77 Hence, a socialist-motivated shift toward greater economic equality, national self-sufficiency, ecological civilization, rural revitalization, cultural development, and the forging of a “dual circulation” model (designed to reduce China’s dependence on foreign markets and technology) are all seen as crucial to China’s emergence as a “great modern socialist society.”78

    The CPC leadership has continued to define China as “the world’s largest developing country,” albeit one in “the primary stage of socialism,” thus emphasizing its direct connections to the Global South of which it sees itself a part. Its official international stance is dictated by the “five principles of peaceful coexistence,” defined as: (1) mutual respect for sovereignty and territorial integrity, (2) mutual nonaggression, (3) mutual noninterference in each other’s internal affairs, (4) equality and mutual benefit, and (5) peaceful coexistence.79 Although China as an emerging global power has been increasingly accused of setting a new agenda and seeking to overturn the existing rules-based international order imposed by the core capitalist states, this, rather than presaging anarchy or “might makes right,” as indicated by Blinken at the March 18 bilateral meetings, has largely taken the form of a strong defense of the concept of sovereign equality, which necessarily goes against the structure of the existing imperial system.80

    The path forward in China’s Third Revolution will not of course be easy, and what Xi has referred to as the “principal contradiction” in the form of uneven development is evident in vast struggles taking place at all levels in the society—and in China’s external relations.

    It would not be an exaggeration to say that China’s Third Revolution has been greeted by the United States and the other core capitalist powers with a combination of disbelief, shock, and anger. Unaccustomed to thinking historically and dialectically, relying on mere formalistic frames of analysis, and believing in the inevitable triumph of capitalism, the dominant ideology in the West has been one quite literally of “the end of history.”81 The idea that China’s sovereign project would eventually lead to a critical challenge to, rather than absorption within, the existing capitalist and imperialist order was thus scarcely entertained in Washington. As Kurt M. Campbell, former assistant secretary of state for East Asia and Pacific Affairs in the Barack Obama administration, and Ely Ratner, Biden’s nominee for assistant secretary of defense for Indo-Pacific security affairs, wrote in “The China Reckoning: How Beijing Defied American Expectations” in Foreign Affairs in February 2018, the notion that “U.S. power and hegemony” would fail to “mold China to the United States’ liking” was until recently completely foreign to the U.S. establishment. Even more shocking was the discovery that China’s New Era, associated with Xi, would begin to look in many ways more like the revolutionary China of Mao than the reform era of Deng.82

    The enraged response of the U.S. power elite to China’s undeterred pursuit of its own sovereign project has been to launch the New Cold War centered on China (also encompassing its allies like Russia and Iran). This is now seen in U.S. ruling class circles as a new war for hegemony—though minus any genuine historical analysis, which would require an honest assessment of imperialism past and present. Rather, Allison’s Destined for War, which directly influenced Biden, drew its supposed historical frame, not from a conception of the capitalist world system, or from an understanding of the imperial imposition of unequal treaties on China. Instead, it turned to a transhistorical law of conflict associated with the “realist” perspective on international relations, derived from Thucydides, the ancient Greek historian of the Peloponnesian War, who wrote in 411 BCE: “It was the rise of Athens and the fear that this instilled in Sparta that made war inevitable.”83

    In contrast, from a Marxian perspective, any meaningful assessment of hegemonic transition in the context of the modern world must be seen as a product of the internal dynamics of the capitalist world economy, which has been characterized throughout its history by the imperialism of the core directed at the periphery and by periodic wars over imperial hegemony: the only “answer” that the capitalist system is capable of providing to the question of world power.84

    Reflecting this logic, the New Cold War on China initiated by the United States seeks to draw together the leading imperial capitalist states in a global alliance aimed at binding Beijing, together with its allies and the entire periphery of the capitalist system, to the rules-based international order controlled by the triad, while at the same time keeping the Chinese economy, the motor of world economic growth, going. China, it is recognized, is too big simply to be conquered, and too big economically to be allowed to fail. What is required, therefore, according to the ruling Washington Consensus, is a counterrevolution unleashed by the reigning powers directed at reimposing a new global set of unequal treaties on China, along with the bulk of the developing world. The object is less to contain than to constrain China. Ultimately, such a strategy is to be backed up by military force. This was what Bill Clinton’s secretary of state Madeleine Albright was to call “assertive multilateralism.” For Hillary Clinton, speaking at Chatham House on May 6, 2021, it is essential in this context for the United States to “take back the means of production” from China to ensure that the latter is kept in a perpetual subaltern state.85

    To say that these conditions puts the world’s population in an era of almost unprecedented danger would be an understatement. No New Cold War can take place without a nuclear arms race and increased danger of thermonuclear war. China, whose nuclear warheads are in the low 200s, compared to the 1,400 deployed nuclear warheads of the United States, is seeking to double its number of warheads by 2030. The United States, for its part, is currently committed to spending $500 billion on its nuclear forces alone over the next decade, $50 billion a year. This includes $100 billion on its so-called Ground-Based Strategic Deterrent, a land-based nuclear missile system designed to replace the aging Minuteman III Intercontinental Ballistic Missile system. The Ground-Based Strategic Deterrent missiles will be capable of traveling six thousand miles with greater throw weight and accuracy, each one carrying a warhead twenty times as powerful as the bomb dropped on Hiroshima.86

    The world survived the Cold War. We do not know if it will survive the New Cold War. Twenty-first-century humanity is now faced, in every sphere of its existence, with an inescapable choice: “ruin or revolution.”87

    Notes

    1. Thomas J. Christensen, “There Will Not Be a New Cold War,” Foreign Affairs, Mach 24, 2021. On the Council on Foreign Relations and the Biden administration, see Laurence H. Shoup, “The Council on Foreign Relations, the Biden Team, and Key Policy Outcomes,” Monthly Review73, no. 1 (May 2021): 1–21.
    2. Christensen, “There Will Not Be a New Cold War.” Most of Christensen’s arguments rely on the unspoken assumption that a New Cold War would take exactly the same form as the old Cold War. This is of course a misnomer. History does not repeat itself in that way.
    3. For a persuasive depiction of the prevailing imperialist order, see Cheng Enfu and Lu Baolin, “Five Characteristics of Neoimperialism,” Monthly Review 73, no. 1 (May 2021): 22–58.
    4. How It Happened: Transcript of the U.S.-China Opening Remarks in Alaska,” NIKKEI Asia, March 19, 2021.
    5. Quad Leaders’ Joint Statement: ‘The Spirit of the Quad,’” White House, March 12, 2021.
    6. US-China Relations in the Biden-Era: A Timeline,” China Briefing, May 13, 2021.
    7. US Sanctions 24 China and Hong Kong Officials Ahead of Talks,” S. News, March 17, 2021.
    8. “How It Happened.”
    9. “How It Happened.”
    10. “How It Happened.”
    11. “How It Happened.”
    12. Thomas Wright, “The U.S. and China Finally Get Real with Each Other,” Atlantic, March 21, 2021.
    13. David Stilwell and Dan Negrea, “Wanted: Alliance Networks for a New Cold War,” National Interest, March 28, 2021.
    14. “US-China Relations in the Biden-Era.”
    15. “Biden: China’s Xi Jinping Doesn’t Have ‘a Democratic…Bone in His Body,’” USA Today, March 25, 2021.
    16. “Trade War: Biden Administration Not Ready to ‘Yank’ China Tariffs, but Open to Talks,” Forbes, March 28, 2021; “Biden Has Left Trump’s China Tariffs in Place,” CNN, March 25, 2021; John Bellamy Foster and Intan Suwandi, “COVID-19 and Catastrophe Capitalism,” Monthly Review 72 no. 2 (June 2020): 14–15.
    17. “In Report, Biden Administration Formalizes Genocide Declaration in China,” Seattle Times, March 30, 2021. To say that charges of genocide are false is not of course to deny that repression has taken place. But the issue remains the former. Claims of Chinese “genocide” in Xinjiang constitutes one of the most extreme instances of the Big Lie propaganda technique in modern times. Although repression has been exercised by China in its Xinjiang Autonomous Region in response to terrorist activity in the region, the evidence points to a reality far removed from anything resembling genocide. See “Xinjiang: A Report and Resource Compilation,” Qiao Collective, September 1, 2020; “The Xinjiang Genocide Determination as Agenda,” Transnational Foundation for Peace and Future Research, April 27, 2021; Kim Petersen, “Does the West Repeating Claims That China Committed Genocide in Xinjiang Reify It?,” Dissident Voice, February 22, 2021. Even the Council of Foreign Relations has noted that what indications of repression there are hardly fit the definition of genocide in the Geneva Convention. John B. Bellinger III, “China’s Abuse of the Uighurs: Does the Genocide Label Fit?,” Council on Foreign Relations, February 3, 2021. For an informative discussion of conditions in China today, see Keith Lamb (interviewed by Alexander Norton), “All the Questions Socialists Have About China but Were Too Afraid to Ask,” Challenge, May 24, 2021.
    18. “US-China Relations in the Biden-Era.”
    19. “China Slams U.S.-China Meeting as Biden Flexes New Diplomatic Muscle Against Beijing,” S. News, May 3, 2021; Peter Beinart, “Biden’s Taiwan Policy Is Truly, Deeply Reckless,” New York Times, May 5, 2021; Xi Jinping, The Governance of China, vol. 1, 2nd ed. (Beijing: Foreign Languages Press, 2018), 2; Xi Jinping, The Governance of China, vol. 3 (Beijing: Foreign Languages Press, 2020), 26.
    20. G7 Foreign and Development Ministers’ Meeting: Communiqué,” European Union External Action, May 5, 2021.
    21. “U.S., Russia, China Poke Each Other at UN Security Council,” Reuters, May 7, 2021.
    22. “Biden Orders Review of COVID Origins as Lab Leak Theory Debated,” Reuters, May 27, 2021; “Biden’s Asia Czar Says Era of Engagement with China Is Over,” Bloomberg, May 26, 2021.
    23. “China Says US Increasing Military Activity Directed at It,” Associated Press News, April 29, 2021; “U.S. Military Activity on China’s Borders Has ‘Sharply Increased’ Since Biden Took Charge,” Morning Star, April, 6, 2021; Sam LaGrone, “S. Carrier Strike Group, Amphibious Warships Massed in South China Sea as Regional Tensions Simmer,” USNI News, April 9, 2021; Rick Rozoff, “International Law vs. Rules-Based International Order: China, Russa Call for UN Security Council Summit,” Anti-Bellum, March 23, 2021; “The US Has a Massive Presence in the Asia-Pacific,” The World, August 11, 2017.
    24. John Ikenberry, Liberal Leviathan (New Haven: Yale University Press, 2020), 97–98, 144, 207, 234, 273; Joe Biden, “Why America Must Lead Again,” Foreign Affairs 99, no. 2 (2020); Stephen M. Walt, “China Wants a Rules-Based International Order, Too,” Foreign Policy, March 31, 2021. On China and the Westphalian system, see Xi Jinping, The Governance of China, vol. 2 (Beijing: Foreign Languages Press, 2017), 590.
    25. Foreign Ministry Spokesperson Wang Wenbin’s Regular Press Conference on May 6, 2021,” Ministry of Foreign Affairs of the People’s Republic of China, May 6, 2021.
    26. See John Bellamy Foster, Naked Imperialism (New York: Monthly Review Press, 2006).
    27. Diana Johnstone, Fool’s Crusade: Yugoslavia, NATO, and Western Delusions (New York: Monthly Review Press, 2002); Jean Bricmont, Humanitarian Imperialism: Using Human Rights to Sell War (New York: Monthly Review Press, 2006); Horace Campbell, Global NATO and the Catastrophic Failure in Libya (New York: Monthly Review Press, 2013).
    28. Foreign Ministry Spokesperson Wang Wenbin’s Regular Press Conference on May 6, 2021.”
    29. Matt Schiavenza, “How Humiliation Drove Modern Chinese History,” Atlantic, October 25, 2013; Xi, The Governance of China, vol. 2, 269–70. Chinese narratives do not emphasize the notion of the Century of Humiliation, since this history is well known and painful, preferring to allude to it indirectly, or referring to the Opium Wars. The emphasis is rather placed on rejuvenation. The notion of China’s Century of Humiliation is, however, a central coordinate of U.S. military discussions of China. See Elizabeth C. Economy, The Third Revolution: Xi Jinping and the New Chinese State (Oxford: Oxford University Press, 2018), 3; Major Daniel W. McLaughlin, “Rewriting the Rules: Analyzing the People’s Republic of China’s Efforts to Establish New International Rules,” Journal of Indo-Pacific Affairs: The Department of the Air Force’s Professional Journal for America’s Priority Theater, March 8, 2021.
    30. S. Stavrianos, Global Rift (New York: William Morrow, 1981), 309–32; Dong Wang, “The Discourse of Unequal Treaties in Modern China,” Pacific Affairs 76, no. 3 (2003): 399–425. It would be wrong, as Wang Hui has argued, to say that modernization in China was propelled by the shock of the Opium Wars. Rather, China was already undergoing its own modernization process. Wang Hui, The End of Revolution (London: Verso, 2009), 126–29.
    31. Ironically, this imperialist notion was perhaps best expressed by George Bernard Shaw in his drafting of Fabianism and Empire: A Manifesto by the Fabian Society, where Shaw declared that Britain was correct in its imperialist wars designed to enforce “international rights of trade and travel.… If the Chinese themselves cannot establish order in our sense, the Powers must establish it for them.” George Bernard Shaw, Fabianism and Empire: A Manifesto of the Fabian Society (London: Grant Richards, 1900), 44–47.
    32. See John Bellamy Foster, “China 2020: An Introduction,” Monthly Review 72, no. 5 (October 2020): 1–5.
    33. Graham Allison, Destined for War: Can America and China Escape the Thucydides Trap?(Boston: Houghton Mifflin Harcourt, 2017), 224–25.
    34. Vijay Prashad and Jie Xiong, “Why Xinjiang Is Emerging as the Epicenter of the US War on China,” People’s Dispatch, April 17, 2021; “’Wipe Out China’: US-Funded Uyghur Activists Train as Gun-Toting Foot Soldiers for Empire,” Grayzone, March 31, 2021.
    35. On the bogus, evidence-less “genocide” and “crimes against humanity” charges directed at China with respect to Xinjiang, and the relation of this to U.S. imperial grand strategy, see Max Blumenthal, “Xinjiang Shakedown: U.S. Anti-China Lobby Cashed in on ‘Forced Labor’ Campaign that Cost Uyghur Worker Their Jobs,” Grayzone, April 30, 2021; Gareth Porter and Max Blumenthal, “US State Department Accusation of China ‘Genocide’ Relied on Data Abuse and Baseless Claims by Far-Right Ideologue,” Grayzone, February 18, 2021.
    36. Michael Hirsh, “Why Liberal Internationalism Is Still Indispensable and Fixable,” Foreign Policy, December 5, 2012.
    37. John Ikenberry, “Liberalism and Empire: Logics of Order in the American Unipolar Age,” Review of International Studies 30, no. 4 (2004): 611; Ikenberry, A World Safe for Democracy (New Haven: Yale University Press, 2020), 297; William Appleman Williams, The Tragedy of American Diplomacy (New York: Dell, 1972); Gabriel and Joyce Kolko, The Limits of Power (New York: Harper and Row, 1972).
    38. See “Australia’s Security and the Rules-Based Order,” Lowy Institute, March 12, 2021.
    39. John Ikenberry, “The Rise of China and the Future of the West,” Foreign Affairs 87, no. 1 (2008): 32–34.
    40. Ikenberry, Liberal Leviathan, 281.
    41. Hillary Clinton (speech, Council on Foreign Relations, Washington DC, July 15, 2009), quoted in Ikenberry, Liberal Leviathan, 325.
    42. Robert F. Worth, “Can Jim Mattis Hold the Line in Trump’s War Cabinet?,” New York Times Magazine, March, 26, 2018. Trump’s policy from the start was to engage in a New Cold War with China, while reaching a détente with Russia. In the end, the bipartisan result was to attack both China and Russia, treated as a two-headed monster, but with the New Cold War with China as the principal directive of the administration. Although Mattis, as Trump’s secretary of defense, sought to weaponize the notion of the rules-based international order, Trump himself did not subscribe to the notion—and was strongly opposed not only by Mattis but also by Blinken, Biden’s now secretary of state, on that basis. Steve Bannon, Trump’s White House advisor, referring to Mattis’s presentation, reportedly stated: “if you stood up and threatened to shoot [Trump] he couldn’t say postwar rules-based international order.” “Australia’s Security and the Rules-Based Order”; Antony Blinken, “Bannon’s Vision of the World Isn’t What Makes America Great,” Foreign Policy, February 28, 2017; John Bellamy Foster, Trump in the White House (New York: Monthly Review Press, 2017), 32, 51–52, 84–85.
    43. Ikenberry, Liberal Leviathan, 247; Samuel Moyn, “Soft Sells: On Liberal Internationalism,” Nation, October 3, 2011, 43.
    44. Richard Haass, “Sovereignty: Existing Rights, Evolving Responsibilities” (lecture, Georgetown University, January 4, 2003), quoted in Ikenberry, Liberal Leviathan, 249. On Haass, see Foster, Naked Imperialism, 97–106.
    45. Foster, Naked Imperialism, 115–16; Richard Haass, The Reluctant Sheriff: The United States After the Cold War (New York: Council on Foreign Relations, 1997), 54, 93.
    46. Kurt M. Campbell and Ely Ratner, “The China Reckoning: How Beijing Defied American Expectations,” Foreign Affairs 97, no. 2 (2018); Nick Turse, “Does the Pentagon Really Have 1,180 Foreign Bases,” Guernica, January 9, 2011; “US General Warns China Is Actively Seeking to Set Up an Atlantic Naval Base,” The Hill, May 7, 2021; John Reed, “Surrounded: How the U.S. Is Encircling China with Military Bases,” Foreign Policy, August 20, 2013; Economy, The Third Revolution, 213.
    47. Ikenberry has recently argued that the new opening to so-called humanitarian interventions is itself built on the Westphalian system of the sovereignty of states. But this goes against the widespread sense that these interventions, which have led to continual warfare under U.S. auspices since the 1990s, constitute in fact a fundamental change in the international order, identified with the notion of the rules-based international order. Perhaps because of the conflict that this poses for Ikenberry’s own conception of liberal internationalism, he has, in his latest work, largely abandoned the term rules-based order that he himself did so much to promote, and that is now associated with a system of liberal-interventionist hegemony enforced by the United States and its allies. Ikenberry, A World Safe for Democracy, 298.
    48. Ikenberry, A World Safe for Democracy, 245, 253, 276.
    49. Karl Marx and Frederick Engels, Collected Works, vol. 10 (New York: International Publishers, 1975), 266–67, 672–73. Compare Samir Amin, “China 2013,” Monthly Review 64, no. 10 (March 2013): 25. On the Taiping Revolution, see John Newsinger, “The Taiping Peasant Revolt,” Monthly Review 52, no. 5 (October 2000): 29–37.
    50. Marx was perhaps the foremost European critic of the Second Opium War. See Karl Marx and Frederick Engels, On Colonialism (New York: International Publishers, 1972), 112–25, 212–25, 231–49; Samir Amin, “Forerunners of the Contemporary World: The Paris Commune (1871) and the Taiping Revolution (1851–1864),” International Critical Thought 3, no. 2 (2013): 159–64.
    51. Amin, “China 2013,” 25–26.
    52. Mao Zedong, “The Chinese People Have Stood Up!” (opening address, First Plenary Session of the Chinese People’s Political Consultive Conference, Beijing, September 21, 1949), available at china.usc.edu.
    53. Xi, The Governance of China, vol. 1, 37; Xi Jinping, The Governance of China, vol. 3, 14; Allison, Destined for War, 122.
    54. Xi, The Governance of China, vol. 1, 6–22; Xi, The Governance of China, vol. 2, 269.
    55. Xi, The Governance of China, vol. 3, 6, 20, 25, 417–24.
    56. Xi, The Governance of China, vol. 3, 20; Kenneth Pomeranz, The Great Divergence: China, Europe and the Making of the Modern World Economy (Princeton: Princeton University Press, 2000).
    57. Vijay Prashad, “The Internationalist Lenin: Self-Determination and Anti-Colonialism,” MR Online, August 10, 2020.
    58. Xi, The Governance of China, vol. 2, 590.
    59. Ikenberry, “The Rise of China and the Future of the West,” 26; “What Does It Mean to Eradicate Absolute Poverty?,” Qiao Collective, December 3, 2020; “China’s Economic Development in 40 Years,” China Daily, accessed June 4, 2021.
    60. Amin, “China 2013,” 14–28; Foster, “China 2020”; Wang Hui, China’s Twentieth Century(London: Verso, 2016), 140; Xi, The Governance of China, vol. 2, 311–17, 352–58. Xi indicates in the foregoing pages his admiration for Robert Heilbroner’s Marxism: For and Against (New York: W. W. Norton, 1980). See also Xi, The Governance of China, vol. 3, 96–98.
    61. Amin, “China 2013,” 26; Paul M. Sweezy, “Post-Revolutionary Society,” Monthly Review 32, no. 6 (November 1980). China’s political-economic system is sometimes referred to as “state capitalist.” Amin adopted this term, for the sake of argument, as a useful but somewhat misleading designation, recognizing that it tended to oversimplify. For Amin, state capitalism was a necessary phase in the development of socialism for developing countries. What mattered was the particular character of state capitalism, which in the Chinese case was seen as part of the long route to socialism. More recently, the “state capitalist” designation for China has been embraced by the Council on Foreign Relations. Others, such as Lowell Dittmer, an East Asian specialist at Berkeley, refer to China’s present reality, particularly in the Xi era, as “an adoptive Chinese form of state socialism, with limited (and closely monitored) capitalist characteristics.” Neither characterization quite captures the complexity of the current Chinese social formation, which the Chinese leadership refer to as a society in the primary stage of socialism. See Amin, “China 2013,” 20; Robert D. Blackwill and Jennifer M. Harris, War by Other Means (Cambridge, MA: Harvard University Press, 2016), 36–37; Lowell Dittmer, “Transformation of the Chinese Political Economy in the New Era,” in China’s Political Economy in the Xi Jinping Epoch, ed. Lowell Ditmer (Singapore: World Scientifixa Publishing, 2021), 6–8.
    62. John Bellamy Foster and Robert McChesney, The Endless Crisis (New York: Monthly Review Press, 2012), 155–83; Intan Suwandi, Value Chains (New York: Monthly Review Press, 2019), 42–67.
    63. Peter A. Petri, “Technological Rivalry,” in China 2049, ed. David Dollar, Yiping Huang, and Yang Yao (Washington DC: Brookings Institution, 2020), 278–301; Amin, “China 2013,” 24, 27.
    64. Klaus Schwab, Shaping the Fourth Industrial Revolution (New York: Currency, 2018); “Comparing United States and China by Economy,” Statistical Times, May 15, 2021; “How It Happened”; Xi, The Governance of China, 523.
    65. Thomas Friedman, The Lexus and the Olive Tree (New York: Anchor, 2000), 101–11. For China, its historic territory includes not only Hong Kong, Macao, and Taiwan, but also islands in the South China Sea that were long recognized as belonging to China. See “Historical Support for China’s South China Sea Territorial Stance,” Maritime Executive, August 10, 2019.
    66. David Sacks, “Countries in China’s Belt and Road Initiative,” Council on Foreign Relations, May 24, 2021; Xi, The Governance of China, vol. 1, 315–24; Xi, The Governance of China, vol. 2, 544–49.
    67. “How It Happened.”
    68. “Reported Cases and Deaths by Country or Territory,” COVID-19 Coronavirus Pandemic, Worldometer, accessed June 1, 2021.
    69. Xi, The Governance of China, vol. 2, 594.
    70. Wang Hui, “Revolutionary Personality and the Philosophy of Victory: Commemorating Lenin’s 150th Birthday,” Reading the China Dream (blog), April 21, 2020.
    71. Why China’s Vaccine Internationalism Matters,” Qiao Collective, April 8, 2021 [updated June 2021]; “EU Vaccine Exports Outstrip Number of Shots Given to Its Own People,” Bloomberg, April 14, 2021; “EU Vaccines: Millions Exported to Rich Countries, Less to Poor Countries,” Brussels Times, May 8, 2021.
    72. “US Secretary of State Antony Blinken Talks to FT Editor Roula Khalaf,” Financial Times, May 4, 2021; “State of the Order: Assessing February 2021,” Atlantic Council, March 16, 2021.
    73. “China Close to Producing 5 Billion COVID-19 Vaccine Doses Per Year,” CGTN, April 21, 2021.
    74. Xi, The Governance of China, vol. 3, 12.
    75. Xi, The Governance of China, vol. 3, 12.
    76. Economy, The Third Revolution, 10–12.
    77. Xi, The Governance of China, vol. 3, 20. The translation in the text here follows an earlier official translation of Xi’s speech, which used the term principal contradiction rather than principal challenge. See Xi, “Secure a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Strive for the Great Success of Socialism with Chinese Characteristics for a New Era,” Xinhua, October 18, 2017, 16.
    78. Xi, The Governance of China, vol. 3, 20; “What We Know About China’s ‘Dual Circulation’ Economic Strategy,” Reuters, September 15, 2020.
    79. Xi, The Governance of China, vol. 3, 13, 79. In recent years, it has been frequently charged by Western power elites and media that China has instituted predatory loans in Africa and other developing countries, designed to acquire assets from these countries. However, a study at Johns Hopkins University showed the opposite to be true, demonstrating that China is more lenient with respect to lending and conditionalities in interactions with developing countries than Western financial institutions and governments. See Kevin Acker, Deborah Brautigam, and Yufan Huang, “Debt Relief with Chinese Characteristics” (working paper no. 39, China Africa Research Initiative, Johns Hopkins School of Advanced International Studies, June 2020).
    80. “How It Happened.”
    81. Francis Fukuyama, The End of History and the Last Man (New York: Free Press, 1992).
    82. Campbell and Ratner, “The China Reckoning”; Orville Schell, “Crackdown in China: Worse and Worse,” New York Times Magazine, April 21, 2016.
    83. Allison, Destined for War, vii.
    84. Immanuel Wallerstein, The Politics of the World-Economy (Cambridge: Cambridge University Press, 1984), 37–46.
    85. Rick Rozoff, “NATO Headquarters: Foreign Ministers of One Billion People Throw Down Gauntlet to China, Russia,” Anti-Bellum, March 24, 2021; Rozoff, “International Law vs. Rules-Based International Order”; Haass, The Reluctant Sheriff, 54, 93; Clinton quoted in Danny Haiphong, “Off the Rails: New Report by Coorporate-Funded Think-Tank Reveals How Profit-Driven Moteives Drive New Cold War Against China,” Covert Action Magazine, June 5, 2021.
    86. Jeremy Kuzmarov, “What’s Behind the Biden Administration’s New $100 Billion Nuclear Missile System?,” Covert Action, March 9, 2021; “Defense Primer: Ground Based Strategic Deterrent (GBSD) Capabilities,” Congressional Research Service, November 10, 2020.
    87. Karl Marx and Frederick Engels, Ireland and the Irish Question (Moscow: Progress Publishers, 1971), 142; Karl Marx and Frederick Engels, Collected Works, vol. 25, 153.
  • The Contagion of Capital: Financialized Capitalism, COVID-19, and the Great Divide

    The Contagion of Capital: Financialized Capitalism, COVID-19, and the Great Divide

    The Contagion of Capital: Financialized Capitalism, COVID-19, and the Great Divide” (coathored with R. Jamil Jonna and Brett Clark, Foster listed first), Monthly Review, vol. 72 no. 8 (January 2021), pp. 1-19.

    John Bellamy Foster is the editor of Monthly Review and a professor of sociology at the University of Oregon. R. Jamil Jonna is associate editor for communications and production at Monthly Review. Brett Clark is associate editor of Monthly Review and a professor of sociology at the University of Utah. The authors thank John Mage, Craig Medlen, and Fred Magdoff for their assistance.
    John Bellamy Foster is the editor of Monthly Review and a professor of sociology at the University of Oregon. R. Jamil Jonna is associate editor for communications and production at Monthly Review. Brett Clark is associate editor of Monthly Review and a professor of sociology at the University of Utah.
    The authors thank John Mage, Craig Medlen, and Fred Magdoff for their assistance.

    The U.S. economy and society at the start of 2021 is more polarized than it has been at any point since the Civil War. The wealthy are awash in a flood of riches, marked by a booming stock market, while the underlying population exists in a state of relative, and in some cases even absolute, misery and decline. The result is two national economies as perceived, respectively, by the top and the bottom of society: one of prosperity, the other of precariousness. At the level of production, economic stagnation is diminishing the life expectations of the vast majority. At the same time, financialization is accelerating the consolidation of wealth by a very few. Although the current crisis of production associated with the COVID-19 pandemic has sharpened these disparities, the overall problem is much longer and more deep-seated, a manifestation of the inner contradictions of monopoly-finance capital. Comprehending the basic parameters of today’s financialized capitalist system is the key to understanding the contemporary contagion of capital, a corrupting and corrosive cash nexus that is spreading to all corners of the U.S. economy, the globe, and every aspect of human existence.

    Free Cash and the Financialization of Capital

    “Capitalism,” as left economist Robert Heilbroner wrote in The Nature and Logic of Capitalism in 1985, is “a social formation in which the accumulation of capital becomes the organizing basis for socioeconomic life.”1 Economic crises in capitalism, whether short term or long term, are primarily crises of accumulation, that is, of the savings-and-investment (or surplus-and-investment) dynamics. Investment in new productive capacity in new or existing businesses is what determines growth. Such investment decisions are governed by expected profits on new investments.

    Viewed in these terms, the decline in the long-term growth rate experienced by the mature, monopolistic economies of the United States, Europe, and Japan over the last half century can be seen as related principally to the atrophy of net investment.2 Existing excess capacity in plant and equipment, a product of the monopolistic structure of accumulation, tends to decrease expected profits on new investment.3 The U.S. economy has seen a long-term decline in capacity utilization in manufacturing, which has averaged 78 percent from 1972 to 2019—well below levels that stimulate net investment.4 As a result, the capital accumulation process within production has stagnated, with existing idle capacity tending to shut off the creation of new capacity. From 1960 to 1980, it was common for private net investment to constitute around 40 percent of private gross investment. Since 2000, this has dropped to around 20 percent, even as gross investment has weakened relative to national income.5

    The significance of the atrophy of net investment in the core capitalist countries cannot be exaggerated. As the foremost emerging economy in the world today, China has what economist Zhun Xu calls a “high Baran ratio,” standing for investment as a share of economic surplus. Conceptually, economic surplus—the difference between national output and wage income or essential consumption—is gross property income (profit, rent, interest). Zhun uses the income of the top 10 percent as a proxy for economic surplus. On this basis, he explains, China has invested around 80 percent of its economic surplus, leading to high growth rates of 7 percent or higher. In contrast, mature, monopolistic economies such as the Group of 7 (the United States, Japan, Germany, the United Kingdom, France, Italy, and Canada) typically have relatively low Baran ratios, investing less than 50 percent of economic surplus, resulting in what for decades have been weak and declining average annual growth rates.6

    Given these conditions, it is important to ask: What happens to that part of the economic surplus held by corporations and individual capitalists that is not invested in new capacity?7Some of it is used for capitalist consumption, but this has inherent limits. The vast economic surplus (actual and potential) generated by the system of economic exploitation far exceeds what can be spent in the luxury consumption of the wealthy, however ostentatious. More importantly, capitalists do not desire to consume the larger part of the economic surplus at their disposal, since, above all else, they seek to amass wealth.

    Government spending absorbs some of the economic surplus, as does waste in the business process. However, government deficit spending also increases corporate profits after taxes above the level determined by capitalist spending on consumption and investment.8 Hence, with both the growth of the federal deficit and the stagnation of investment, the amount of free cash in corporate coffers has dramatically expanded. This free cash plays a central role in the financialization of capital and the resulting extreme polarization of society.9

    As stipulated by Craig Medlen in Free Cash, Capital Accumulation and Inequality, free cash equals corporate profits after taxes plus depreciation minus investment. (In national income accounting, corporate profits after taxes plus depreciation is known as corporate cash flow. The funds associated with depreciation [or capital consumption] are part of the gross surplus available to corporations.)10

    A wider conception of free cash, utilized in this article, also includes net interest. Hence, in the wide version, Free Cash = Corporate Profits After Taxes + Depreciation + Net Interest – Investment.11 This free cash is held by corporations or is distributed to stockholders through dividend payouts and/or stock buybacks.12

    Building on the research of Michał Kalecki, Medlen demonstrates that the amount of free cash is identical to the federal government deficit minus the excess of savings over investment of the noncorporate sector (now usually negative) plus the current account balance. The three factors of (1) the federal deficit, (2) the country’s current account balance (or the trade deficit), and (3) the deficit spending of the noncorporate sector (encompassing noncorporate business, housing, and personal finance) can therefore be seen as underpinning free cash.13

    Chart 1 shows the growth of corporate free cash in the U.S. economy from the period immediately after the Second World War to the present. Free cash, as non-invested surplus, became a much bigger and bigger factor in the U.S. economy beginning in the 1980s due mainly to the combined effects of a long-term decline in corporate taxation, the increasing federal deficit, and the atrophy of net investment.14 Free cash falls in recessions (due to lower business activity and income), but then rockets up soon afterward due to investment not keeping up with increasing economic activity, freeing up more cash after investment. This sudden rebound in cash is also a product of the fact that the Federal Reserve Board now steps in during every recession, at precisely such “Minsky Moments” when the prospects for investment are at their worst, with lavish provision of low-interest credit.

    Chart 1. Free Cash, U.S. Corporations, 1957-2019 (5-year Moving Average)

    Chart 1. Free Cash, U.S. Corporations, 1957-2019 (5-year Moving Average)

    Notes: Free Cash is calculated as the sum of Corporate Profits after tax (W273RC1Q027SBEA), Depreciation (CCFC), and Net Interest (A453RC1Q027SBEA) minus Corporate Fixed Investment, which includes investment in nonresidential structures (FBGFEEQ027S and BOGZ1FA105013005Q), residential structures (BOGZ1FA105012005Q), and inventories (NCBIAVQ027S). The ratio divides by Gross Domestic Product (GDP). Quarterly data reported as 5-year moving averages.

    Sources: Bureau of Economic Analysis, Table 1.14. Gross Value Added of Domestic Corporate Business and Federal Reserve (Financial Accounts); Table F.2 Distribution of Gross Domestic Product. Retrieved from FRED, Federal Reserve Bank of St. Louis, November 16, 2020, fred.stlouisfed.org. Series IDs corresponding to FRED variables are included above in parentheses.

    Another way of looking at this phenomenon is to chart the total cash or liquid funds that corporations actually have ready at hand, if they were to choose to invest (or otherwise productively use) the surplus at their disposal. Of course, corporate investment is not dependent on the prior availability of savings/surplus, since capitalism, as Joseph Schumpeter long ago explained, is a system that creates “credit ad hoc”; while John Maynard Keynes and Kalecki taught that investment determines savings, not the other way around.15 Nevertheless, it is significant that the cash funds of corporations in the current phase of monopoly-finance capital far exceed profitable investment outlets. At the beginning of 2020, nonfinancial corporations were sitting on over $4 trillion dollars in cash; before the end of 2020 this had risen to over $5 trillion.16 According to the Federal Reserve Flow of Funds data, shown in Chart 2, total cash held by U.S. nonfinancial corporations as a share of gross domestic product (GDP)—much of it parked abroad in tax havens—has almost tripled between the early 1990s and the present.17

    Chart 2. Cash On-Hand, U.S. Nonfinancial Corporations, 1980-2020 (5-year Moving Average)

    Chart 2. Cash On-Hand, U.S. Nonfinancial Corporations, 1980-2020 (5-year Moving Average)

    Notes: Corporate Cash is the sum of lines 1-7 of Table L.102 Nonfinancial Business from Financial Accounts of the United States. Data points are reported as 5-year moving averages.

    Source: Retrieved from FRED, Federal Reserve Bank of St. Louis, November 16, 2020, https://fred.stlouisfed.org. Series IDs: FDABSNNCB, BOGZ1FL143020005Q, BOGZ1FL143030005Q,BOGZ1FL143034005Q, SRPSABSNNCB, BOGZ1FL144022005Q, and GDP.

    The total cash holdings of nonfinancial corporations on hand at any given time are not to be confused with free cash, which is that part of the corporate cash flow left over after investment in a given year—much of which is not held as cash deposits but instead spent on mergers and acquisitions, stock buybacks, and other financial instruments. Rather, total cash on hand, as defined by the Federal Reserve Flow of Funds, simply measures the actual cash deposits sitting in the accounts of nonfinancial corporations presented as annual averages based on quarterly data. Still, the rapid growth of total cash currently held by nonfinancial corporations in the form of ready monies, both absolutely and as a proportion of GDP (as shown in Chart 2), is a further indication of an economy that has shifted from capital formation to speculation.

    As we have seen, when corporations do not invest their economic surplus in new capital formation—primarily due to vanishing investment opportunities in an economy characterized by excess capacity—they are left with abundant free cash that is partly returned to the shareholders through share buybacks and, to a lesser degree, dividends. It is also used for speculation, including mergers, acquisitions, and the panoply of corporate “cash management” techniques that amount to the leveraging of free cash to enhance returns.18 This gives rise to a whole alphabet soup of financial instruments, in which corporations use the cash at their disposal partly as collateral for debt leverage, with nonfinancial corporate debt rising rapidly as a share of national income. Predictably recurring internal corporate funds in the form of free cash constitute a “flow collateral” allowing for further leverage, feeding speculation. A speculative economy relies on borrowed funds for leverage, backed up in part by cash. Expanding cash reserves are also needed as hedges in case of financial defaults. The whole system is a house of cards.

    The progressive financialization of the capitalist economy, whereby the financial superstructure continues to expand as a share of the underlying productive economy, has led to ever-greater asset price bubbles and growing threats of world economic meltdown. So far, a complete meltdown has been headed off by central banks, as in the 2000 and 2008 financial crashes. At every major recurring disturbance, and with serious economic repercussions, the monetary authorities pump massive amounts of cash into the financial superstructure of the economy only to give rise to greater bubbles in the future.

    Theoretically, stock values represent future expected streams of earnings arising primarily from production.19 Nowadays, however, finance has become increasingly autonomous from production (or the “real economy”), relying on its own speculative “self-financing,” leading to financial bubbles, contagions, and crashes, with the monetary authorities intervening to keep the whole house of cards from collapsing. This serves to reduce the risk to speculators, thereby keeping the value of stocks and other financial assets rising on a long-term basis, along with the overall wealth/income ratio. In these circumstances, so-called asset accumulation by speculative means has replaced actual accumulation or productive investment as a route to the increase of wealth, generating a condition of “profits without production.”20

    In order to grasp the full significance of the financialization of the economy, it is useful to look at the two conceptions of capital (relative to national income) depicted in Chart 3.21 One of these, the numerator of the lower line, is the traditional conception of capital as fixed investment stock (physical structures and equipment) at historical cost minus depreciation. This is called the fixed capital stock of the nation and is tied directly to economic growth.22 It represents what economic theorists from Adam Smith to Karl Marx to Keynes have referred to as the accumulation of capital. Capital formation and national income are closely related, generally rising and falling together, producing the relatively flat line, representing the ratio of fixed capital stock to national income, shown in Chart 3.

    Chart 3. Capital and Wealth to Income Ratios, U.S., 1947-2019

    Chart 3. Capital and Wealth Income Ratios, U.S., 1947-2019

    Note: Grey bars indicate economic recession periods (USREC).

    Sources: Fixed Capital Stock: Bureau of Economic Analysis, Table 4.3. Historical-Cost Net Stock of Private Nonresidential Fixed Assets by Industry Group and Legal Form of Organization. Stock Value: FRED, Federal Reserve Bank of St. Louis, retrieved November 16, 2020, https://fred.stlouisfed.org. Series IDs: BOGZ1FL893064105Q (All Sectors; Corporate Equities; Asset, Level) and GDP.

    Yet, capital, as Marx noted very early in the process, has more and more taken on the “duplicate” form of “fictitious capital,” that is, the structure of financial claims (in monetary values) produced by the formal title to this real capital. Insofar as economic activity is directed to the appreciation of such financial claims to wealth relatively independently of the accumulation of capital at the level of production, it has metamorphosed into a largely speculative form.23

    This can be seen by looking again at Chart 3. In contrast to the lower line, the upper line depicts what is traditionally seen as the wealth/income ratio (which some economic theorists, such as Thomas Piketty, conflate with the capital/income ratio, treating wealth as capital).24 The numerator here is the value of corporate stocks. Since the mid–1980s, the ratio of stock value to national income has increased more than 300 percent. This marks an enormous growth of financial wealth, with speculation-induced asset growth sidelining the role of productive investment or capital accumulation as such in the amassing of wealth. This is associated with a massive redistribution of wealth to the top of society. The top 10 percent of the U.S. population owns 88 percent of the value of stocks, while the top 1 percent owns 56 percent.25Rising stock values relative to national income thus mean, all other things being equal, rapidly rising wealth (and income) inequality.26

    The existence of the two conceptions of capital (and of capital/income ratios) presented here—one representing historical investment cost minus depreciation, and conforming to the notion of accumulated capital stock, the other the monetary value of stock equities (in economics traditionally treated as wealth rather than capital)—is often downplayed within establishment economics under the assumption that in the long run they will simply fall in line with each other, and with national income. As leading mainstream economic growth theorist Robert Solow writes: “Stock market values, the financial counterpart of corporate productive capital, can fluctuate violently, more violently than national income. In a recession the wealth-income ratio may fall noticeably, although the stock of productive capital, and even its expected future earning power, may have changed very little or not at all. But as long as we stick to longer-run trends…this difficulty can safely be disregarded.”27

    But can the divergence of stock values from income (and from fixed capital stock) in reality be so easily disregarded? Chart 3 depicts a sharp increase in stock values relative to national income, which has now continued for over a third of a century, with decreases in total stock values as a ratio of national income (output) occurring during recessions, then rebounding during recoveries.28 The overall movement is clearly in the direction of compounded financial hyperextension. This conforms to the general pattern of the financialization of the capitalist economy, constituting a structural change in the system associated with the growth of monopoly-finance capital. This has gone hand in hand with a bubblier economy, with financial bubbles bursting in 1987, 1991, 2001, and 2008, but ultimately shored up by the Federal Reserve and other central banks.

    Today, vast amounts of free cash are spilling over into waves of mergers and acquisitions, typically aimed at acquiring megamonopoly positions in the economy. A major focus is the tech sector, much of which is directed at commodifying all information in society, in the form of a ubiquitous surveillance capitalism.29 All financial bubbles derive their animus from some common rationale, which claims that this time is different, discounting the reality of a bubble. In the present case, the rationale is that the advance of the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google), which now comprise almost a quarter of the value of Standard and Poor 500’s total capitalization, is unstoppable, reflecting the dominance of technology. Apple alone has reached a stock market valuation of $2 trillion. All of this is feeding a massive increase in income and wealth inequality in the United States, as the gains from financial assets rise relative to income. Yet, like all previous bubbles, this one too will burst.30

    Kalecki determined that the export surplus on the U.S. current account increased free cash, as did the federal deficit.31 However, the current account deficit cannot be seen, in today’s overall structural context, as simply reducing free cash, because of the changed role of multinational corporations in late imperialism, which alters other parts of the equation. Due to globalization and the rise of the global labor arbitrage, U.S. multinational corporations in their intrafirm relations have in effect substituted production overseas by their affiliates for parent company exports, thereby decreasing their investment in fixed capital in the United States.32 The sales abroad of goods by majority-owned affiliates of U.S. multinational corporations in 2018 were 14.5 times the exports of goods to majority-owned affiliates.33 Foreign profits of U.S. corporations as a proportion of U.S. domestic corporate profits rose from 4 percent in 1950 to 9 percent in 1970 to 29 percent in 2019. This mainly reflects the shift in production to low unit labor cost countries in the Global South. Samir Amin described the vast expropriation of surplus from the Global South, based on the global labor arbitrage, as a form of “imperialist rent.”34

    This expansion of global labor-value chains is also associated with an epochal increase in what is called the non-equity mode of production, or arm’s length production. Companies like Apple and Nike rely not on foreign direct investment abroad, but instead draw on subcontractors overseas to produce their goods at extremely low unit labor costs, often generating gross profit margins on shipping prices on the order of 50 to 60 percent.35

    The loss of investment in the United States, as U.S. multinational corporations have substituted production overseas, coupled with the growth of foreign profits of U.S. megafirms, has further increased the free cash at the disposal of corporations (even with a growing deficit in the current account), thereby intensifying the all-around contradictions of overaccumulation, stagnation, and financialization in the U.S. economy. Much of this free cash is parked in tax havens overseas to escape U.S. taxes.36

    Washington uses its printing press, through the federal deficit, to compensate for the U.S. current account deficit. Foreign governments cooperate, providing the “giant gift” of accepting dollars in lieu of goods, thereby acquiring massive dollar reserves.37 At some point, however, these contradictions are bound to undermine the hegemony of the dollar as the world’s reserve currency, with dire ramifications for the U.S.-based world empire.

    The COVID-19 Crisis and the Great Divide

    Received economic ideology, with its compartmentalized view, treats the COVID-19 pandemic as simply an external shock to the economy emanating from the natural environment and thus unrelated to capitalism. However, as Rob Wallace and his colleagues have shown, contagions like COVID-19 arise from the worldwide circuits of capital associated with the global labor arbitrage and the accelerated extraction of the planet’s resources.38 This is tied especially to global agribusiness, which displaces, often forcibly, subsistence farmers while advancing into wilderness areas, destroying ecosystems, and disrupting wildlife. The result is a growing spillover of zoonoses (or diseases from other animals that are capable of being transmitted to human populations). From the standpoint of the Structural One Health tradition in epidemiology, the COVID-19 pandemic can therefore be seen as part of the larger planetary ecological crisis or metabolic rift engendered by twenty-first-century capitalism.39

    In March 2020, the U.S. stock market saw a sharp dip as COVID-19 spread in the United States. The Federal Reserve immediately brought out its firehose to flood the market with liquidity, purchasing, from March to June 2020, $1.6 trillion in U.S. Treasuries and $700 billion in mortgage-backed securities, and letting markets know that there was virtually no limit to the trillions that they were ready to pour into markets.40 The result was that—just as social distancing and lockdowns were being instituted and unemployment was soaring to the highest levels since the Great Depression, reaching almost seventeen million—the U.S. stock market experienced its biggest increase since 1974 in the week of April 6 to 10.41 Wall Street profits rose in the first half of 2020 by 82 percent over the year before.42 The total wealth of U.S. billionaires skyrocketed by $700 billion between March and July 2020, even as the number of those dying from COVID-19 in the United States continued to mount and as millions of U.S. workers found themselves hit hard by the crisis.43 Amazon centi-billionaire Jeff Bezos experienced an increase in his total wealth by more than $74 billion in 2020, while Tesla megacapitalist Elon Musk saw his wealth increase in 2020 by $76 billion, making him too a centi-billionaire. (For comparison, the Supplemental Nutrition Assistance Program benefits provided by the federal government in Fiscal Year 2019, aiding tens of millions of low-income families, seniors on fixed incomes, and disabled people, amounted to $62.3 billion.)44 All of this points to the continuing operation of what Marx termed “the absolute general law of capitalist accumulation,” polarizing wealth and poverty, or what Solow, commenting on the work of Piketty, calls “the rich-get-richer dynamic.”45

    The wreckage inflicted on the U.S. population as a whole has been enormous. In mid–October 2020, more than 25 million workers in the United States were hurt in the pandemic crisis. According to official unemployment figures, 11.1 million workers in the United States were officially unemployed; another 3.1 million had lost their jobs but were misclassified as a result of the lockdowns; 4.5 million had dropped out of the labor force since the pandemic; and 7 million were still employed but experiencing cuts in pay and hours due to the coronavirus crisis. The number claiming unemployment compensation in all programs in October equaled 21.5 million people.46 Millions are behind in payments for rent, home mortgages, and student loans while food insecurity has grown from 35 million to over 50 million as a result of insufficient government help during the pandemic.47

    According to the 2020 U.S. Financial Health Pulse Report, published by the U.S. Financial Network, more than two-thirds of the U.S. population at present are in a financially unhealthy condition. Of these, more than 20 percent are concerned about not having enough food, while more than a quarter are worried about their ability to pay their next month’s rent or mortgage. Ironically, the financial health of the bottom two-thirds of the population at the time the survey was completed (August 2020) was slightly improved compared to 2019 (prior to the present economic and epidemiological crisis), due to the temporary relief mainly in the form of unemployment compensation provided by the federal government in response to the pandemic.48 In the third quarter of 2020, the U.S. economy was still 3.5 percent smaller than in the fourth quarter of 2019, with tens of millions of people suffering as a result of the crisis.49

    Exploiting these conditions, the richest 1 percent saw their financial assets skyrocketing as a share of national income. FAANG stocks led the way as corporations and the wealthy turned increasingly from investment to speculative outlets, focusing on the big tech monopolies. By October 2020, Facebook, Apple, Amazon, Netflix, and Google had seen the value of their shares rise year-to-date by 29, 61, 77, 64, and 61 percent respectively.50

    Such frenetic speculation naturally carries with it the growing danger of a financial meltdown. At present, the U.S. economy is faced with a stock market bubble that is threatening to burst. Two of the more influential ways of ascertaining whether a financial crisis centered on the stock market is imminent are: (1) the stock price to company earnings ratios (P/E) of stocks, and (2) Warren Buffett’s Expensive Market Rule. The historical average P/E ratio, according to the Shiller Index, is 16. In August 2020, the U.S. stock market was priced at more than twice that, at 35. On Black Tuesday during the 1929 stock market crash, which led to the Great Depression, the P/E ratio had reached 30. The 2000 stock market crash that ended the tech boom of the 1990s occurred when the P/E ratio reached 43.51

    According to Buffett’s Expensive Market Rule, the mean average of stock values (measured by Wilshire 5000 market-value capitalization index) as a ratio of GDP is 80 percent. The 2000 tech crash occurred when the stock to income ratio, measured in this way, reached 130 percent, while the 2007 Great Financial Crisis occurred when it reached 110 percent. In August 2020, the ratio was at 180 percent.52

    Another key indicator of growing financial instability is the ratio of nonfinancial corporate debt to GDP, depicted in Chart 4. Corporations flush with free cash have taken on debt, available at very low interest rates, in order to further pursue nonproductive ventures such as mergers, acquisitions, and various forms of speculation, using the free cash as flow collateral. In each of the three previous economic crises of 1991, 2000, and 2008, nonfinancial corporate debt reached cyclical peaks in the range of 43 to 45 percent of national income. In 2020, nonfinancial corporate debt in relation to national income reached a record 56 percent. This is a sure sign of a financial bubble stretched beyond its limits.

    Chart 4: Debt as a Percent of GDP, U.S. Nonfinancial Corporations, 1949-2020

    Note: See Chart 3. Based on quarterly data.

    Source: Retrieved from FRED, Federal Reserve Bank of St. Louis, November 16, 2020, https://fred.stlouisfed.org. Series IDs: BCNSDODNS (Nonfinancial Corporate Business; Debt Securities and Loans; Liability, Level) and GDP.

    The entire world economy, apart from China, is now in crisis, with over a million and a half lives lost worldwide to COVID-19 as of the beginning of December, disrupting normal production relations. The International Monetary Fund has projected a -5.8 percent rate of growth in the advanced economies in 2020 and a -4.4 percent rate of growth in the world.53 In these circumstances, there will be no fast recovery from the current capitalist crisis. Heavy storm winds will continue. The U.S. ability to print dollars to stave off financial crises as well as its capacity to devalue its currency so as to increase its exports (thereby reducing the value of dollar reserves held by countries around the world) may both come up against mounting resistance to the dollar system, further hastening the decline of U.S. hegemony. As in other areas, the contagion of capital, which spreads like a virus, ultimately undermining its own basis, is operative here.54 Washington’s attempt to create trade pacts that will ensure the continued dominance of U.S.-centered global commodity chains is running into increasing competition from Beijing. The 2020 Regional Comprehensive Economic Partnership, the largest trade bloc in the world, accounting for around 30 percent of the global economy, has China as its center of gravity.

    Faced with economic stagnation, periodic financial crises, and declining economic hegemony, and confronted with rapid Chinese growth, the United States is heading toward a New Cold War with China. This was made clear in the November 2020 U.S. State Department report, The Elements of the China Challenge, accusing the “People’s Republic of China of authoritarian goals and hegemonic ambitions.” The State Department report proceeded to outline a strategy for the defeat of China by targeting the Chinese Communist Party (CCP), exploiting the CCP’s economic and other “vulnerabilities.”55

    Here, the chief economic weapon of the United States is its dominance over world finance. Former Chinese Finance Minister, Lou Jiwei, recently indicated that the United States is preparing to launch a “financial war” against China. U.S. attempts at “the suppression of China” by financial means under a Joe Biden administration, he says, “will be inevitable.” Under these circumstances, Lou insists, China’s earlier goals of internationalizing its currency and initiating full capital account convertibility, which would lead to the loss of its control of state finance, are “no longer safe options.” If Washington were to use its power over the world financial system to smother Chinese growth, Beijing, according to Chen Yuan, a former Chinese central bank deputy governor, could be forced to weaponize its holdings of U.S. sovereign debt (totaling $1.2 trillion) in response. This is viewed as the financial equivalent of nuclear war. A financial (not to mention military) war between the United States and China, driven by U.S. attempts to shore up its declining economic hegemony by attempting to derail its emerging rival, could well spell utter disaster for the global capitalist economy and humanity as a whole.56

    The Boundary Line and the Contagion of Capital

    The crisis of the U.S. system and of late capitalism as a whole is one of overaccumulation. Economic surplus is generated beyond what can profitably be absorbed in a mature, monopolistic system. This dynamic is associated with high levels of idle capacity, the atrophy of net investment, continuing slow growth (secular stagnation), enhanced military spending, and financial hyperexpansion. The inability of private investment (and capitalist consumption) to absorb all of the surplus actually and potentially available, coupled with government deficit spending, leads to growing amounts of free cash in the hands of corporations. The result is the rise of a system of asset speculation that partially stimulates the economy due to the wealth effect (increases in capitalist consumption fed by a part of the increased returns on wealth), but which is unable to overcome the underlying tendency toward stagnation.57

    Hence, monopoly-finance capital of today is a deeply irrational system, in which money is seen as begetting more money without the mediation of production, or what Marx characterized as M-M’ (Money-Money + Δm or surplus value).58 “The viability of today’s money manager capitalism,” as the heterodox economist Hyman Minsky called it,

    depends upon not having a serious depression: the continued absence of a serious depression fosters experimentation with portfolio managing techniques that increases the likelihood of system threatening crises, that is, increases the likelihood of depressions. There is a basic contradiction in money manager capitalism which makes continued success ever more dependent upon an apt structure of supportive government interventions. Money manager capitalism rests upon the power of government to prevent a sharp decline in aggregate business profits.… We can expect future crises to be met with some form of ad hoc intervention which will in part reflect an unwillingness by policy makers to appreciate that once again capitalism has changed.59

    A rational strategy with which to escape this trap—if only partially—would be to increase the direct U.S. governmental role in investment and consumption in order to address the multiple crises of society, including public spending in response to: (1) the climate emergency; (2) the public health crisis; (3) the shortage of adequate housing for much of the population; (4) the deterioration of the public education system under neoliberalism; (5) the absence of a national mass transit system, and so on. Yet, for the government to enter directly into such areas would involve crossing the private sector-government boundary line, which ensures the present near-complete dominance of the economy by the private sector, a phenomenon first critically diagnosed by Marxist economists Paul A. Baran and Paul M. Sweezy in Monopoly Capital in 1966.60 As Medlen writes, “the institutional arrangements for profit-seeking investment are simply taken for granted as a boundary line that is not to be violated.”61

    So strict is the boundary line in the U.S. economy that outside of the Tennessee Valley Authority, as well as various municipal utilities and land leases, government-owned productive facilities cannot be said to produce internal revenues sufficient to compensate for costs of production. “This is primarily because the government, outside a considerable land mass, the public school system, the U.S. Postal Service and toll-free roads, owns essentially nothing.”62The bulk of federal government discretionary spending goes to the military, which constitutes a huge subsidy to private capital while avoiding any intrusions on the private sector. Meanwhile, the privatization of public health infrastructure and public education is further pushing the boundary line in the direction of the complete dominance of a private sector already prone to overaccumulation and the contagion of capital.

    A little more than forty years ago in “Whither U.S. Capitalism?,” Sweezy, writing in Monthly Review, questioned the then common view that the United States, caught in economic stagnation, was headed inevitably to “an American version of the corporate state, authoritarian and repressive internally, increasingly militaristic and aggressive externally.”63 His reasoning is worth recalling today:

    There are at least two problems with this “solution” to the crisis of U.S. capitalism. First, it assumes that because the working class has never yet organized itself for effective independent political action it never will in the future either. In my view this reflects a simplistic view of the history of class struggles in the United States and quite unjustifiably rules out the emergence of new patterns of behavior and forms of struggle. Second, it assumes that the capitalists will be united behind a fascist-type policy of repression, and this seems to me doubtful too. Not only is a strategy of this kind costly to large elements of the middle and upper classes, as the whole history of fascism shows, but even more important, it is no solution at all to the real problems of U.S. capitalism. The basic disease of monopoly capitalism is an increasingly powerful tendency to overaccumulate. At anything approaching full employment, the surplus accruing to the propertied classes is far more than they can profitably invest. An attempt to remedy this by further curtailing the standard of living of the lower-income groups can only make things worse. What is needed, in fact, is the exact opposite, a substantial and increasing standard of living of the lower-income groups, not necessarily in the form of more individual consumption: more important at this stage of capitalist development is a greater improvement in collective consumption and the quality of life.64

    Sweezy followed this up with the notion of building a “cross-class alliance” between those suffering most from monopoly capitalism and the more far-seeing elements of the ruling class, a kind of new New Deal, but with the working class as the organizing and hegemonic force. This was consistent with a political praxis emphasizing protecting the population in the immediate present while working toward the long-run revolutionary reconstitution of society at large.

    More than four decades later, in 2021, the basic conditions are similar, if more serious and threatening. The current struggle for a People’s Green New Deal, based on a just transition, is a call for a cross-class movement to protect humanity as a whole, one which, however, can only be successful by going against the logic of capital and establishing the basis for a new society geared to substantive equality and environmental sustainability: the historical struggle for socialism. If the danger of “a fascist-type policy of repression” of the kind that Sweezy pointed to has reemerged in the twenty-first century in the context of the contagion of capital, so has a new socialist movement from below aimed at ensuring a world of sustainable human development. Predictions as to the future are meaningless in this context. The point is to struggle.

    Notes

    1. Robert Heilbroner, The Nature and Logic of Capitalism (New York: W. W. Norton, 1985), 143.
    2. Harold G. Vatter and John F. Walker, The Inevitability of Government Growth (New York: Columbia University Press, 1990), 6–22; John Bellamy Foster and Robert W. McChesney, The Endless Crisis (New York: Monthly Review Press, 2012), 18–19.
    3. Excess capacity is both a cause of the atrophy of net investment, given monopolistic pricing and output strategies, and a manifestation of overaccumulation and stagnation. The issue of excess capacity was extensively examined in Josef Steindl, Maturity and Stagnation in American Capitalism (New York: Monthly Review Press, 1976), 127–37.
    4. Industrial Production and Capacity Utilization in Manufacturing-G17,” Board of Governors of the Federal Reserve System, November 17, 2020; Foster and McChesney, The Endless Crisis, 20.
    5. Timothy Taylor, “Declining U.S. Investment, Gross and Net,” Conversable Economist (blog), February 17, 2017. Productive capacity can of course expand even with no net investment since used up plant and equipment is replaced with more efficient plant and equipment paid out of depreciation funds. Luke A. Stewart and Robert D. Atkinson, “The Greater Stagnation: The Decline in Capital Investment Is the Real Threat to the U.S. Economy,” Information Technology and Innovation Foundation, October 2013.
    6. Although recognizing that economic surplus can be conceived of as the gross property income from production, in his study, Zhun uses the income of the top 10 percent of the population as a rough proxy for economic surplus, allowing for comparisons between a wide number of countries. He does a reliability check and shows that there is no significant distortion between this method and the two other measures of economic surplus: based on (1) surplus as the residual after essential consumption, and (2) the property share method (used by Thomas Piketty). The top 10 percent method has the advantage of allowing comparisons between a wide variety of countries and historical situations where the data to utilize the other two methods is not available. Zhun Xu, “Economic Surplus, the Baran Ratio, and Capital Accumulation,” Monthly Review 70, no. 10 (March 2019): 25–39; Foster and McChesney, The Endless Crisis, 4; “S. GDP Growth Rate 1961–2020,” Macrotrends. For another article employing the Baran ratio, see Thomas E. Lambert, “Paul Baran’s Economic Surplus Concept, the Baran Ratio, and the Decline of Feudalism,” Monthly Review 72, no. 7 (December 2020): 34–49.
    7. In macroeconomic terms, economic surplus that is not invested or consumed (either by private or public entities) represents a loss to society. But the losses do not necessarily fall on corporations and the wealthy—instead, they manifest in the form of “forced dissavings” of the population. Corporations are thus able to use the money capital available to them in other (nonproductive) ways, which have the effect of slowing the rate of growth while also in many cases increasing corporate assets and the earnings on these assets. Economic stagnation under monopoly capital thus leads to a redistribution of wealth and income toward the top.
    8. As Michał Kalecki wrote: “A budget deficit has an effect similar to that of an export surplus. It also permits profits to increase above that level determined by private investment and capitalists’ consumption.” Michał Kalecki, Selected Essays on the Dynamics of the Capitalist Economy (Cambridge: Cambridge University Press, 1971), 85; Craig Medlen, Free Cash, Capital Accumulation and Inequality (London: Routledge, 2010), 13. The term free cash was first introduced in Michael Jensen, “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers,” American Economic Review: Papers and Proceedings 76, no. 2 (1986): 322–29.
    9. Craig Medlen, “Free Cash, Corporate Taxes, and the Federal Deficit,” Journal of Post-Keynesian Economics 38, no. 1 (2015): 21.
    10. Medlen, Free Cash, Capital Accumulation and Inequality, 6.
    11. Medlen, “Free Cash, Corporate Taxes, and the Federal Deficit,” 21, 26. As Medlen writes in connection to the wide definition of free cash, including net interest, “It might be objected that ‘net interest’ ought not to be included in any ‘free cash’ measure as ‘interest’ is a committed obligation. For the portion of the corporate sector whose cash is inadequate to sponsor investment, such ‘interest’ does, indeed, reflect the debt necessary to carry out the given investment expenditure. But since the corporate sector—taken as a consolidated whole—had enough profit and depreciation charges after taxes to fund internal investment, the net interest portion represents free cash on a consolidated basis.” Craig Medlen, “Two Sets of Twins? An Exploration of Domestic Saving-Investment Imbalances,” Journal of Economic Issues39, no. 3 (September 2005): 564.
    12. Besides speculation, free cash can also be used for foreign direct investment. On the role of corporate cash flow in the economy, see Thomas B. King, “Corporate Cash Flow and Its Uses,” Federal Reserve Board of Chicago, Chicago Fed Letter 368 (2016).
    13. Kalecki, Selected Essays on the Dynamics of the Capitalist Economy, 85–86. “Kalecki’s conviction that aggregate demand drove economic activity underpinned his interpretation of accounting identities as ‘models.’ Under the assumption that only capitalists save, an absence of government deficits and export surpluses would mean that ‘capitalists earn what they spend.’ But by providing additional aggregate demand, government deficits act as an artificial ‘export surplus’ that generates additional profits above capitalist’s spending.… Noncorporate deficit spending by consumers and noncorporate businesses has an analogous effect to that of government deficits and adds to the generation of corporate gross profits in excess of corporate investment (free cash).” Medlen, “Free Cash, Corporate Taxes, and the Federal Deficit,” 20, 23. When noncorporate savings minus investment is negative, as it was prior to the bursting of the housing bubble in 2007–08, it contributes to free cash.

      In calculating noncorporate S-I , in this formulation, Medlen makes adjustments to avoid double counting. Thus, he subtracts from the free cash the savings from dividends (and savings from net interest in the wide version of free cash), and adds to investment the amount spent on capitalist consumption out of dividends. Medlen, Free Cash, Capital Accumulation and Inequality, 88.

    14. The increased reliance on federal government deficits was connected to reductions in taxes on corporations and the wealthy. See Craig Medlen, “Corporate Taxes and the Federal Deficit,” Monthly Review 36, no. 6 (November 1984): 10–26. The process Medlen identified in the early 1980s was, as is now clear, only in its earliest stages.
    15. Joseph A. Schumpeter, The Theory of Economic Development (New York: Oxford University Press. 1961), 107, 126; Joseph A. Schumpeter, Essays (Cambridge, MA: Addison-Wesley, 1951), 170; Joan Robinson, Introduction to the Theory of Employment (London: Macmillan, 1937), 11.
    16. Kristine W. Hankins and Mitchell Petersen, “Why Are Companies Sitting on So Much Cash?,” Harvard Business Review, January 17, 2020.
    17. Chart 2 is derived from Michael W. Faulkender, Kristine W. Hankins, and Mitchell A. Petersen, “Understanding the Rise in Corporate Cash,” National Bureau of Economic Research, Working Paper 23799, August 2018., Figure 1, 49.
    18. If the rate paid on credits secured in part by dependable internal cash flow is lower than that on financial instruments purchased with that credit, “cash management” requires that the latter be pursued.
    19. Medlen, Free Cash, Capital Accumulation and Inequality, 51. Stock values represent discounted profit expectations due to the time value of money. The discount is normally calculated by how many current dollars at the compounded current long-term rate of interest will produce the expected profit at some specific future time. The higher the rate of interest, the larger the discount. And as the interest rates approach zero, the discount—also irrationally—approaches zero. “Minsky moments” when the Fed steps in to reinforce capital to suppress the crisis now occur in every recession, at precisely the moment that the prospects for new investment are at their worst. This has therefore become a regular part of the financialization process with major structural effects. With the lavish provision of central bank credit in spring 2020 at a near-zero rate of interest, the rate of discount went into an asymptotic movement that raised stock values ceteris paribus, but that wildly privileged certain high-growth (monopoly) sectors (communications tech and pharmaceutical) and their stock values. Thus, the value of stocks now became a combination of expected streams of profit from production and evermore extreme discount rates tied to the provision and distribution of central bank credit, that is, stock values now reflect a structure of finance that is relatively autonomous from the real economy.
    20. Costas Lapavitsas, Profiting Without Production: How Finance Exploits Us All (London: Verso, 2013); James Tobin, Asset Accumulation and Economic Activity (Chicago: University of Chicago Press, 1980).
    21. Chart 3 is derived from Medlen, Free Cash, Capital Accumulation and Inequality, Figure 8.3 , 141.
    22. The flat line of capital stock to income is a product of the mutual conditioning of investment and national income.
    23. Karl Marx, Capital, vol. 3 (London: Penguin, 1981), 607–10, 707; Karl Marx and Frederick Engels, Selected Correspondence (Moscow: Progress Publishers, 1975), 396–402; Jan Toporowski, Theories of Financial Disturbance (Northampton, MA: Edward Elgar, 2005), 54; Samir Amin, Modern Imperialism, Monopoly Finance Capital, and Marx’s Law of Value (New York: Monthly Review Press, 2018), 197. For a detailed description of Marx’s theory of “fictitious capital,” see Michael Perelman, Marx’s Crises Theory (New York: Praeger, 1987), 170–217. See also Foster and McChesney, The Endless Crisis, 55–57.
    24. On Piketty’s conflation of capital as the accumulation of fixed stock and “capital” as wealth, see Thomas Piketty, Capital in the Twenty-First Century, 47; Robert M. Solow, “The Rich-Get-Richer Dynamic,” New Republic, May 12, 2014, 51–52; Craig Medlen, Free Cash, Capital Accumulation and Inequality, 139–40: John Bellamy Foster and Michael D. Yates, “Thomas Piketty and the Crisis of Neoclassical Economics,” Monthly Review 66, no. 6 (November 2014): 11–12.
    25. Robin Wigglesworth, “How America’s 1% Came to Dominate Stock Ownership,” Financial Times, February 10, 2020. The logic of this process of wealth concentration under monopoly-finance capital is vicious. As Medlen writes: “In lowering rates of equity returns and interest rates, higher stock valuations drive an ongoing feedback loop that tilts the capital/income ratio upwards. The rate of equity returns and the capital/income ratio are therefore codependent with the interest (discount) rate having a supporting role. Moreover, there is an amplification effect: An expectation of lower and lower rates of return on equity and bonds is compensated by a larger offsetting gain in capital values thereby driving a higher and higher share of income towards the wealthy.” Craig Medlen, “Piketty’s Paradox, Capital Spillage, and Inequality,” Journal of Post-Keynesian Economics 40, no. 4 (2017): 630.
    26. “If you multiply the rate of return on capital [wealth] by the capital-income ratio, you get the share of capital in the national income.… It is always the case that wealth is more highly concentrated among the rich than income from labor…and this being so, the larger the share of income from wealth, the more unequal the distribution of income among persons is likely to be.” Solow, “The Rich-Get-Richer Dynamic,” 53.
    27. Robert M. Solow, “The Rich-Get-Richer Dynamic,” 52.
    28. This is often called the capital output ratio, though it is more properly referred to as the wealth/income (output) ratio.
    29. John Bellamy Foster and Robert W. McChesney, “Surveillance Capitalism,” Monthly Review66, no. 3 (July–August 2014): 1–31; Shoshana Zuboff, The Age of Surveillance Capitalism (New York: Public Affairs, 2019).
    30. Ronald Surz, “If COVID-19 Won’t Pop the Stock Market, What Will?,” Nasdaq, August 20, 2020. Jacob A. Robbins, “Capital Gains and the Distribution of Income in the United States,” National Bureau of Economic Research (2018). It is the nature of asymptotes to signal a contradiction in the system under study that presages a qualitative change—here, the divergence between hypertrophied finance, asset prices, and the value of labor.
    31. Kalecki, Selected Essays on the Dynamics of the Capitalist Economy, 85.
    32. Medlen, Free Cash, Capital Accumulation and Inequality, 112–13; Intan Suwandi, R. Jamil Jonna, and John Bellamy Foster, “Global Commodity Chains and the New Imperialism,” Monthly Review 70, no. 10 (March 2019): 1–24.
    33. For the basic data on affiliates abroad and exports, see Bureau of Economic Analysis, “International Data, Direct Investment and MNE, Data on Activities of Multinational Enterprises, U.S. Direct Investment Abroad, All Majority-Owned Foreign Affiliates (Data for 2009 and Forward), Goods Supplied,” and “International Data, Direct Investment and MNE, Data on Activities of Multinational Enterprises, U.S. Direct Investment Abroad, All Majority-Owned Foreign Affiliates (Data for 2009 and Forward), S. Exports of Goods,” accessed December 8, 2020; Craig Medlen, Free Cash, Capital Accumulation and Inequality, 121.
    34. “National Data, National Income and Product Accounts, Tables 6.16A, 6.16B, 6.16C, 6.16D Corporate Profits by Industry,” Bureau of Economic Analysis, accessed December 11, 2020, lines 2 (Domestic Industries) and 5 (Rest of the World); Medlen, Free Cash, Capital Accumulation and Inequality, 126. See also Joe Weisenthal, “Chart of the Day: What Percent of Corporate Profits Come from Overseas?,” Business Insider, May 17, 2011; “The share of national corporate profits accounted for by foreign profits (receipts from the rest of the world) has trended upwards for the last 60 years, peaking at 45.3 percent in 2008.” Andrew W. Hodge, “Comparing NIPA Profits with S&P 500 Profits,” Survey of Current Business (March 2011): 23.

      On “imperialist rent” see Amin, Modern Imperialism, Monopoly Finance Capital, and Marx’s Law of Value, 110–11; Foster and McChesney, The Endless Crisis, 140, 173; Kenneth L. Kramer, Greg Linden, and Jason Dedrick, “Capturing Value in Global Networks,” Paul Merage School of Business, University of California, Irvine, July 2011, 5, 11; John Smith, Imperialism in the Twenty-First Century (New York: Monthly Review Press, 2016).

    35. Intan Suwandi, Value Chains (New York: Monthly Review Press, 2019); Foster and McChesney, The Endless Crisis, 140, 171–73.
    36. Nicholas Shaxson, Treasure Islands (London: Palgrave Macmillan, 2011).
    37. Martin Feldstein, “Resolving the Global Imbalance: The Dollar and the U.S. Saving Rate,” Journal of Economic Perspectives 33, no. 3 (2008): 115.
    38. Rob Wallace, Dead Epidemiologists: On the Origins of COVID-19 (New York: Monthly Review Press, 2020), 42–57; John Bellamy Foster and Intan Suwandi, “COVID-19 and Catastrophe Capitalism,” Monthly Review 72, no. 2 (June 2020): 1–20.
    39. Robert G. Wallace et al., “The Dawn of Structural One Health: A New Science Tracking Disease Emergence Along Circuits of Capital,” Social Science and Medicine 129 (2015): 68–77.
    40. Lorie K. Logan, “Treasury Market Liquidity and Early Lessons from the Pandemic Shock” (speech, Brookings-Chicago Booth Task Force on Financial Stability Meeting, Federal Reserve Bank of New York, October 23, 2020).
    41. Fred Imbert and Pippa Stevens, “S&P Index Jumps More than 1%, Capping Off Its Best Week Since 1974,” CNBC, April 9, 2020.
    42. Mark DeCambre, “Wall Street Profits Soared in First Half of 2020 Amid the Worst Pandemic in a Century, Report Says,” Market Watch, October 20, 2020.
    43. Billionaires Pandemic Wealth Gains Burst through $700B,” Americans for Tax Fairness, July 16, 2020.
    44. Billionaires’ Net Worth Grows to $10.2 Trillion During Pandemic,” teleSUR, October 7, 2020. Congressional Research Service, “USDA Domestic Food Assistance Programs: FY2019 Appropriations,” May 24, 2019, 3, Table I.
    45. “If you multiply the rate of return on capital [wealth] by the capital-income ratio, you get the share of capital [as a flow] in the national income. For example, if the rate of return is 5 percent a year and the stock of capital is six years’ worth of national income, income from capital will be 30 percent of national income, and so income from work will be the remaining 70 percent.… As long as the rate of return exceeds the rate of growth, the income and wealth of the rich will grow faster than the typical income from work. (There seems to be no offsetting tendency for the aggregate share of capital to shrink.)” Solow, “The Rich-Get-Richer Dynamic,” 53.
    46. Heidi Shierholz, “More than 25 Million Workers Are Being Hurt by the Coronavirus Downturn,” Economic Policy Institute, November 6, 2020.
    47. Bridget Balch, “54 Million People in America Face Food Insecurity During the Pandemic. It Could Have Dire Consequences for Their Health,” Association of American Medical Colleges, October 15, 2020.
    48. Financial Health Network, S. Financial Health Pulse: 2020 Trends Report (Chicago: Financial Health Network, 2020).
    49. The Conference Board Economic Forecast for the U.S. Economy,” Conference Board, November 13, 2020.
    50. Robert Francis, “FAANG Stocks and COVID-19,” Global Banking and Finance Review, October 11, 2020.
    51. Surz, “If COVID-19 Won’t Pop the Stock Market, What Will?”
    52. Surz, “If COVID-19 Won’t Pop the Stock Market, What Will?”
    53. Real GDP Growth, Annual Percent Change, 2020,” International Monetary Fund, accessed November 21, 2020.
    54. See Samir Amin, The Liberal Virus (New York: Monthly Review Press, 2004).
    55. Policy Planning Staff, Office of the Secretary of State, Elements of the China Challenge(Washington DC: Office of the Secretary of State, 2020).
    56. “Former China Finmin Says Trade Frictions with U.S. Could Remain Under Biden,” Nasdaq, November 11, 2020; “China-U.S. Rivalry on Brink of Becoming a ‘Financial War,’ Former Minister Says,” South China Morning Post, November 9, 2019; Julian Gewirtz, “Look Out: Some Chinese Thinkers Are Girding for a ‘Financial War,’” Politico, December 17, 2019.
    57. On the wealth effect, see Dean Baker, The End of Loser Liberalism(Washington DC: Center for Economic and Policy Research, 2009), 18; Christopher D. Carroll and Xia Zhou, “Measuring Wealth Effects Using U.S. State Data,” Federal Reserve Board of San Francisco, October 26, 2010.
    58. Marx, Capital, vol. 3, 515.
    59. Hyman Minsky, “Financial Crises and the Evolution of Capitalism,” in Capitalist Development and Crisis Theory, ed. Mark Gottdiener and Nicos Komninos (London: Macmillan, 1989), 398, 402. See also Riccardo Bellofiore, “Hyman Minsky at 100: Was Minsky a Communist?Monthly Review 71, no 10 (March 2020): 6–10.
    60. Paul A. Baran and Paul M. Sweezy, Monopoly Capital (New York: Monthly Review Press, 1966), 161–75.
    61. Medlen, Free Cash, Capital Accumulation and Inequality, 5.
    62. Medlen, Free Cash, Capital Accumulation and Inequality, 149.
    63. Paul M. Sweezy, “Whither U.S. Capitalism?Monthly Review 31, no. 7 (December 1979): 11.
    64. Sweezy, “Whither U.S. Capitalism?” 12.