henryk grossman 'fifty years of struggle over marxism', appendix to r. kuhn - 'marxist crisis theory...
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AppendixtoRickKuhnMarxistcrisistheoryto1932andtothepresent:ReflectionsonHenrykGrossmansFiftyyearsofstruggleoverMarxismHenrykGrossmanTranslatedfromGermanbyRickKuhnandEindeOCallaghan
AMarxistsoftheearlyperiodUntiltheendoftheseventiesofthelastcentury,circumstancesfortheunderstandingofMarxsideaswerenotparticularlyfavourable,evenwithinthesocialistcamp.AparticulardifficultywasthatinitiallyCapitalwasonlyavailableasatorso,asonlyoneofseveralvolumes.Almostanotherthreedecadespassedbeforethevolumescompletingthesystemappeared(volume2in1885,volume3in1895).AndafurtherfifteenyearspassedbeforeKarlKautskybroughtoutthelastvolumeofTheoriesofsurplusvalue(1910).These,intendedbyMarxasthefourthpartofCapital,areamagnificenthistoryofpoliticaleconomyfromtheendofthe17thcentury,onethatbourgeoishistoricalwritinghasbeenunabletoequal.
DuringthefirstdecadeafterthefoundingoftheGermanEmpireitwashardlypossibletospeakofMarxisminGermany(andstilllessinothercountries).Therewasonlyaverylooseconnectionbetweentheworkersmovementandthetheoriesofscientificsocialism.ManyyearsafterLassallesdeaththeGermanworkersmovementwasstillundertheinfluenceofLassallestheoriesandwork.Apartfromthat,itdrewitsideasandsentimentsfrommemoriesof1848,from[PierreJoseph]Proudhon,[Karl]RodbertusandEugenDhring.1ManysocialistsjustifiedtheirdemandsbyappealingtoethicsandhumanityororientedthemselvesonthepublicationsoftheInternationalWorkingMensAssociation[theFirstInternational].WhenthetwotendenciesintheGermanworkersmovement(thesocalledtheLassalleansandtheMarxistEisenachers)unitedattheGothaCongress(1875),LassallesideasanddemandsweretoagreatextentincorporatedinthenewlyagreedGothaProgramme(cf.MarxscriticismsinhisCritiqueoftheGothaprogramme).2Intiallyworkersinlargescaleindustrywerenotorganisedineitherparty,ratherthebulkofthemovementwasworkers,suchasshoemakers,tailors,bookprinters,tobaccoworkersetc.,whostillretainedclosetieswiththepettybourgeoisie.Lassallespamphletsanddemands,hisambiguousconceptofthestate,hiscompletelackofclarityaboutthegoalofthepartyevidentlyexpressedmuchmorethelabourmovementslackofmaturityatthattimethanthecohesiveandmagnificentedificeofMarxstheory.Eventheleadingfiguresinthelabourmovementwere,foralongtime,unabletograspkeyaspectsofMarxstheory.Characteristicofthisistherequest,in1868,byWilhelmLiebknecht,whoduringhisstayinLondonhadhadacloserelationshipwithMarx,thatEngelsshouldmaketheactualdifferencesbetweenMarxandLassalleclearinanarticleforthepartyorgan.3FromcorrespondencebetweenMarxandEngelsitisapparenthowdistressedMarxfeltaboutthefactthatGermanpartycircleswerealmostincrediblyindifferenttoCapital.
[1 PierreJoseph,18091865,ProudhonwasanearlytheoristofanarchisminFrance.KarlRodbertus18051875wasaGermaneconomistandtheoristofstatesocialism.EugenDhring,18331921,wasaGermaneconomistandphilosopherwhoadvocatedasocialismofcompetingproductioncooperatives.Marxwrotecritiquesoftheeconomicideasofallthree.]
[2 KarlMarx,CritiqueoftheGothaProgramme,KarlMarxandFrederickEngels,ThecollectedworksofKarlMarxandFrederickEngels.Volume24(MECW),InternationalPublishers,NewYork19751995,pp.75100.]
[3 WilhelmLiebknecht,lettertoFrederickEngels,20January1868,WilhelmLiebknecht:BriefwechselmitKarlMarxundFriedrichEngels,Mouton,Hague,1963,pp.88.]
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Onlygraduallyandinconstantstruggleagainstotherviewsthatwerewidespreadinthelabourmovement(thestruggleagainstProudhonismandBakuninismintheFirstInternational,EngelsspolemicagainstDhringin1878,etc.4)didMarxistideaspermeatetheworkersmovement.From1883KarlKautsky(born1854)soughttospreadMarxistideas,astheeditor
ofthepartystheoreticalorgan,NeueZeit.However,theperiodoftheAntiSocialistLaw(187890)wasquiteunfavourableforthetheoreticalconsolidationofMarxism.5
ThegreatpopularitythatMarxslifework[Capital]achievedisdueinitiallytothosesectionsofvolume1thatdescribetheimmediateprocessofproductionwithinthefactoryandthusmakethesituationoftheworkingclass,itsexploitationbycapitalandeverydayclassstrugglestakingplacebeforeeveryoneseyesintelligible.Sothisvolumebecamethebibleoftheworkingclassfordecades.Thefateofthosepartsoftheworkwhichpresentthehistoricaltendenciesofcapitalistaccumulationandthetendencytowardsthebreakdownofcapitalismthatfollowintheirwakewasquitedifferent.HereMarxwassofarinadvanceofhisepochintellectuallythatthesepartsofhiswork,atfirst,necessarilyremainedincomprehensible.Capitalismhadnotyetachievedthematuritythatwouldhavemadeitsbreakdownandtherealisationof
socialismanimmediatereality.Soitisunderstandablethatinareviewofvolume2ofCapital(1886)Kautskyexplainedthat,inhisopinion,thisvolumehadlessinterestfortheworkingclassthanthefirst,thatforthemonlytheproductionofsurplusvalueinthefactorywasofimportance.6Theadditionalquestionofhowthissurplusvalueisrealisedwasofmoreinteresttothecapitaliststhantotheworkingclass!KautskyswellknownbookTheeconomictheoriesofKarlMarxalsolimitsitselfexclusivelytodescribingthecontentsofthefirstvolumeofCapital.Anextremelydeficientoutlineofthetheoriesinvolumes2and3wasonlyaddedtolatereditions.7
TwogenerationshadtopassaftertheappearanceofCapitalbeforecapitalism,asaresultofcapitalaccumulation,maturedtoitspresenheightandconflictsdevelopedinitswombthattranslatedtheproblemoftherealisationofsocialismfromthedomainofaprogrammatic
demand,onlyappropriatefortheremotefuture,tothesphereofdailypoliticalpractice.TheunderstandingofMarxsideashasalsogrown,incorrespondencewiththechangedhistoricalsituation.
ThesituationwasdifferentaftertheendoftheAntiSocialistLaw(1890),whenpoliticalsocialismstartedtodeveloprapidlyfromasmall,persecutedgroupintothelargestpartyinGermanyanditsappealencompassedbroadlayersofintellectualsandthepettybourgeoisie,farbeyondtheworkingclass.ThestrengthofMarxismapparentlyincreasedinthisperiod.IntheErfurtProgram(1891)itachievedavictoriousexpression.But,preciselyatthetimewhentheappearanceofvolume3ofCapital(1895)publiclyconcludedMarxstheoreticalsystem,withtherapidblossomingofinternationalcapitalismandthestrengtheningofanopportunistlabouraristocracywithintheworkingclass,achangeoccurredthatwastobeofthegreatest
significanceforthefurtherdevelopmentofMarxisttheory.Soonerorlaterthesocial
[4 MikhailBakunin,18141876,wasaRussiananarchistwhoorganisedconspiraciesagainsttheleadershipoftheFirstInternational.FrederickEngels,AntiDhring:HerrEugenDhringsrevolutioninscience,MECW25,pp.1309.]
5 TheAntisocialistorExceptionalLawagainstthepublicdangerofSocialDemocraticendeavoursbannedsocialdemocraticorganisations,publicationsandtradeunionsinGermanybetween1878and1890.
[6 KarlKautskyDasElendderPhilosophieundDasKapital,DieNeueZeit,4,1886p.164.]
[7 KarlKautsky,KarlMarxkonomischeLehren,Dietz,Stuttgart1887;TheeconomictheoriesofKarl
Marx,Black,London,1925[translatedfromthethe8
th
Germanedition,1903,whichincludedanaccountoftheformationoftheaveragerateofprofit,fromvolume3ofCapital].]
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differentiationoftheworkingclasshadtobeexpressednotonlyinpoliticsbutalsoinitstheoreticalconceptionsofthegoalsandtasksofthelabourmovement.
BTheadvanceofreformism
a)Revisionism
Thevictoryofopportunism,initiallyinEngland,theninFranceandGermanyaswellasaseriesofsmallerEuropeancountries,isnecessarilyconnectedwiththestructuraltransformationofworldcapitalism,whichexhibitedextremelypowerfuldevelopmentandincreasinglyshoweditsimperialistfaceduringthelastdecadeofthelastcentury.Itsfundamentaleconomictraitsarethereplacementoffreecompetitionbymonopolyandcolonialexpansioncombinedwithbellicoseentanglements.Throughcapitalexports,monopolisticdominationandexploitationofhugeregionsthatsupplyrawmaterialsandprovideoutletsforcapitalinvestmentinCentral
andSouthAmerica,AsiaandAfrica,thebourgeoisieandthefinancialoligarchyofthecapitalistgreatpowersacquirebillionsinsuperprofits.Thesemakeitpossibleforthemtowinoveranupperlayeroftheworkingclassandthepettybourgeoisfollowingofthesocialistpartieswithhigherwagesandvariousotheradvantages,sothatthesetakeaninterestincolonialexploitation,arepoliticallyboundtothemandenteracommunityofinterestsagainstthebroadmassesandtheothercountries.Theseupperlayerswerethebourgeoisieschannelsofinfluenceintotheproletariat.Theemergenceofthelabouraristocracy,whichfoundexpressionpoliticallyintheformationofbourgeoisworkerspartiesonthemodeloftheLabourPartyinEngland,istypicalofalltheimperialistcountries.
Theselayers,whichfoundtherevolutionarytenetsofMarxisttheoryinconvenientandahindrancetotheirpracticaleffortstocooperatewiththebourgeoisieandstateorgans,soon
wentontotheoffensiveagainstMarxisttheorywiththeargumentthatitwascontradictedbycapitalismsrealtendencies.TheirmaindifferencewithMarxismwasthatthelatterdeniedthepossibilityofalastingimprovementintheconditionsoftheworkingclassunderthecurrenteconomicorder(apartfromtemporaryimprovementsforshorterperiods)andadvocatedtheoppositepointofview:that,withitsfulldevelopment,theimmanentpowersofcapitalismwouldnecessarilyleadtoaworseningofworkersconditions.Incontrast,therepresentativesofreformismpointedoutthat,evenundertheexistingeconomicorder,alastingimprovementinthesituationoftheworkerswhetherbymeansofstatelegislation(pensions,accidentandunemploymentinsurance)orbymeansofselfhelp(byfoundingandexpandingtradeunionsandconsumercooperatives)waspossibleandalreadyoccurring.Heretheratherslightimprovement,confinedtoanarrowupperlayeronly,wasovervaluedandgeneralisedandits
characterwasmisjudged,totheextentthatitwasnotconsideredtemporarybutthestartofatransformationthatwasconsistentlyexpandinginbreadthanddepth.
Therisingstrengthofthetradeunionmovementwas,nodoubt,themosteffectiveleverfortheenforcementofantiradicalattitudes.Fortheleadersofthetradeunionsthetypicalrepresentativesofthelabouraristocracyreformismwastailormade.Forthesemen,conductingthesmallscalewarforentirelygradualimprovementsinthesituationoftheworkersthatwereagainandagainthreatenedbysetbacks,allradicalismrepresentedathreattothepositionstheyhadconquered,theirorganizationsandtradeunionfunds.Theythereforesoughttonipeveryintensificationofthemethodsofstruggleinthebud.UndertheAntiSocialistLaw,therewasnoroomforsucheffortsasthetradeunionsthenhardlysufferedlessthanpoliticalsocialdemocracy.Withthestrengtheningofthetradeunionmovement,after
therepealoftheEmergencyLaw,particularlyfromthefoundationoftheGeneralCommission
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oftheFreeTradeUnions,whichwascombinedwiththetightcentralisationofthemovement,therelationshipofthetradeunionstothepartychanged.Theinitialdependenceonthepoliticalmovementwassoontransformedand,atboththeKlnTradeUnionCongressinMay1905andtheMannheimPartyCongressinSeptember1905,thetradeunionsandtheirleaders
knewhowtoimposetheirdemandsoftenondecisivequestionstooagainstthewillofthePartyauthorities.Nowtheirinfluenceonthetheoreticalconceptionsofthesocialistworkersmovementwasalsoincreasinglyapparent.GraduallycertainessentialelementsofMarxisttheorywereerodedbythepracticaltradeunionnegotiators.Inthehandsofthetradeunionleaderstheconceptofclassstruggleexperiencedagradualtransformation,sothatlittleofitsoriginalcontentremained.Underthesameinfluences,theattitudeofthetradeunionleaderstothestatealsochanged.Theypointedoutthebenefitstheysawfortheworkingclassinthestateinstitutionsofsocialinsurance,asystemtheyhopedtobeabletoexpandfurther.ThusthesecirclesfeltcompelledtorevisetheideaspreviouslyinheritedfromMarx(revisionism).Duringtheninetiesandaftertheturnofthecentury,thequestionwasoftenraisedofwhetheraspecialtradeuniontheorythatwouldjustifyreformismtheperspectiveofagradual
socialisation,dropbydropwithintheexistingorderoughttobecompiledforthesocialistinclinedtradeunions.Butitnevercametosuchatradeuniontheory.Allthefriendlierwasthetradeunionwelcomeforeffortsemergingwithinthepoliticalpartythataccommodatedtheirdesires.
RevisionismisinseparablylinkedwiththenameEduardBernstein(born1850).HewasthefirsttosystematicallydemandarevisionofMarxstheory,arguingthatitdidnotcorrespondwiththeactualdevelopmentofcapitalism,eventhoughtheformerradicalGeorgvonVollmarhadearlierdevelopedsimilarideas,inhisfamousEldoradospeechesinMunich(1891)andinthepamphletStatesocialism(1892),andadvocatedreformisttactics.8EduardBernstein,whoseemedtobeatruediscipleofthetheorywhileEngelswasstillalive,emergedasacriticonlyafterthedeathofthemaster,inhisNeueZeitarticlesof18967,onProblemsofsocialism
(publishedinbookformasThepreconditionsofsocialism).OtherwritingsbyBernsteinarerelevant:Howisscientificsocialismpossible?;Guidingprinciplesforasocialdemocraticprogram;Onthetheoryandhistoryofsocialism.9
BernsteinneveropenlydescribedMarxisttheoryasawholeasfalse.ItisanessentialfeatureofrevisionismthatitneitherhadtheintentionofnorsucceededinconstructingacompletetheoreticaledificetoreplaceMarxs.Itshistoricalsignificanceliesprimarilyinitsinfluenceontradeunionandpoliticalpractice.Theorywasonlyofconcerntotheextentthatitwasanobstacletothispracticalreformism.Thiswastobedisposedofthroughtherevisionistcritiquethatadaptedtheorytopracticesothatinconsistencybetweeninheritedrevolutionarytheoryandreformistactivitycouldbeovercome.Forthispurpose,inhiscritiqueofMarxstheoreticaledifice,Bernsteinusedtheconvenientprocedureofseparatingtheenduring,generallyvalid
[8 GeorgvonVollmar,18501922,wasarevolutionaryuntilthemid1880s.ProminentintheGermanfederalparliamentandstateparliaments,headvocatedaprogramofreformandallianceswithbourgeoisparties,intwospeechesinMunichsEldoradopub,UeberdienchstenAufgabenderDeutschenSozialdemokratie:zweiReden,gehaltenam1.Juniund6Juli1891imEldoradozu
Mnchen,Ernst,Mnchen,1891;UeberStaatssozialismus,Wrlein,Nrnberg,1892.]
9 EduardBernstein,Thepreconditionsofsocialism,CambridgeUniversityPress,Cambridge,1993[1899];WieistwissenschaftlicherSocialismusmglich?EinVortrag,VerlagderSocialistischenMonatshefte,Berlin,1901,Berlin1901;DerRevisionismusinderSozialdemocratie:einVortraggehalteninAmsterdamvorAkademikernundArbeitern:MiteinemAnhang:Leitstzefrein
sozialdemocratischesProgramm,Cohen,Amsterdam,1909;ZurGeschichteundTheoriedesSocialismus:gesammelteAbhandlungen,Edelheim,Berlin,1901.
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elementsofthetheoryfundamentaltheoreticalpropositionssharplyfromvariableelements,thatarepropositionsarisingfromappliedscience.Underthecoverofthisdistinction,however,thefundamentalpropositionsofthetheorywerealsoencompassed,albeitonthepretextthattheywerenowreinterpretedasnotfundamental.Thegoalof
revisionismwasneverdeclaredtobethedefeatofMarxism;ratheritwassupposedtobeamatterofrejectingcertainremnantsofutopianismthatMarxismstillallegedlycarriedinitsbaggage.
BernsteinsactofpurificationwasanattempttoliberatesocialismfromMarxstheoryofvalueandsurplusvalue.Valueisatheoreticalconstructandnota[surface]appearance.WhetherMarxstheoryofvaluewascorrectornot,Bernsteinargued,wassuperfluousforthedemonstrationofsurpluslabour,assurpluslabourisanempiricalfactwhichsufficesaloneasarationaleforsocialism.Bernsteinneverofferedsucharationale,apositivetheoryofcapitalism,builtonthefactofsurpluslabour,forsocialism.Hehasremainednegative.
BernsteinconcedestheaccuracyofMarxspredictionsaboutincreasingcentralisationandconcentrationofcapital,increasingconcentrationofenterprises,arisingrateofsurplusvalue
(exploitation)andthefallintheprofitratebutmaintainsthatthefullpictureofcapitalisminMarxisonesidedlydistorted.Marxsupposedlyneglectsthecountertendenciesintheprinciplematter.Divisionsamongalreadyconcentratedcapitalscounteractthetendencytoconcentration.Incomestatisticsshowgrowthinthenumberofshareholdersandaveragemagnitudeoftheirshareholdings.Undeniablythenumberofpropertyownersisgrowingbothabsolutelyandrelatively.Andtheemploymentstatistics,fortheirpart,provethatthemiddleclassesisexpanding.Finallyenterprisestatisticsirreproachablydemonstratethatinawholeseriesofbranchesofindustrysmallandmediumsizedfirmsarequiteviablealongsidelargeconcerns.Thisappliesnotonlytoindustrybutalsotocommerce.Totheextentthatlargeconcernsareconsidered,developmentsinagriculturedemonstrateeithernochangeatalloradeclineinthescaleofoperations.AfterBernstein,EduardDavidattemptedtoshowthatin
agricultureadevelopmentinthesizeofoperationshadbegunthatwasdiametricallyopposedtoMarxsprediction.Histhesescontendedthatthatsmallscaleoperationswerenotonlyviablebutwereevenasuperiorformofproduction.10
BernsteinregardstheMarxisttheoryofcrisisandbreakdownasanaprioriconstructioninaccordancewithHegelsschemeofdevelopment.Invariousways,actualdevelopmentshavetakenadifferencecoursethantheywouldhaveifbreakdownwasinevitableforpurelyeconomicreasons.Bernsteinconcedesthepossibilityoflocalorparticularcrisesbutthehugeterritorialexpansionoftheworldmarket,thereductionofthetimerequiredforcommunicationsandthetransportofgoods,combinedwiththeelasticityofthemoderncreditsystemandtheemergenceofcartelshavecreatedthepossibilitythatlocaldisturbanceswillcanceleachotherout.Theoccurrenceofgeneralcrisesshould,therefore,beconsidered
unlikely.Bernsteindoesnottreatbreakdownfromtheperspectiveofwhetheritwasthenecessaryresultoftheimmanentdevelopmentofcapitalism;whetherwiththeexistinglevelofeconomicdevelopmentandthedegreeofmaturityoftheworkingclassasuddencatastrophemightbetotheadvantageofsocialdemocracy.Bernsteinanswersthesequestionsinthenegativebecausethereisagreaterguaranteeofenduringsuccessesinsteadyforwardsmarchthaninthepossibilitiesofferedbyacatastrophe.ItispreciselyinthetheoryofbreakdownthatBernsteinseesthequintessenceofutopianisminMarxism,becausethis
10 EduardDavid,18631930,SocialismusundLandwirtschaft.Berlin,VerlagderSocialistischenMonatshefte,1903.
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makesthevictoryofsocialismdependentonitsimmanenteconomicnecessity.11Bernsteincombatstheironnecessityofhistory12andthematerialistconceptionofhistoryasatheoryhistoricalnecessityandemphasisestheincreasingeffectivenessofideologicalandethicalfactors.AgainstMarxheappealstoKant.Thevictoryofsocialismdoesnotdependon
economicnecessitybutonthemoralmaturityoftheworkingclass,i.e.itsrealisationthatsocialismisdesirable.
UltimatelyBernsteinconjuresawaythefinalgoalofsocialism.([T]hefinalgoalwhateveritmaybe,isnothingtome,themovementeverything.)13Thefinalobjectiveissubordinate;instead,theattentionandenergyoftheworkingclassshouldbeconcentratedonimmediategoals,ondaily,detailedworkwhichwillleadtoadvanceinculturaldevelopment,highermoralityandlegalconceptions.Itisapparentthatsuchaformulationofthetasksoftheworkersmovementhasnothingatalltodowithsocialismandcoincideswiththeconceptionsofbourgeoisliberalism.Thegeneralperspectivethatinallindividualgoalsthereisalwaysapointertoafurthergoal,yettobeachievedthathastobepursuedlateronlyleadstoprogressiontoinfinityandthatisdiametricallycounterposedtotheessenceofsocialism,
whichataparticularstageofdevelopment,wantstoandshouldreplaceonedefinitesystemwithanother(Brauer).14
HewasonlybeingconsistentwhenBernsteingaveupthefinalgoalhesimultaneouslyabandonedtherevolutionarytacticsnecessarytoachieveit.IncontrasttoMarxstheoryofclassstruggleandhisconceptionthatforceisthemidwifeofeverysocietythatiscomingintobeing,Bernsteinemphasisesparliamentaryactivityasthemeansforemancipatingtheworkingclass.TheideaofconqueringpoliticalpowerthroughrevolutionaryactionissupposedlyaforeignbodyinMarxism,aremnantofBlanquismfromwhichEngelspartedtowardstheendofhislife.
Fromhiscritique,Bernsteindrewtheconclusionthatitwasfalseanddisastroustocountongreatsocialcatastrophesandtofocusthepartystacticsonthem.Theutopiaofacoming
revolutionhadtobegivenup.Developmentbluntsclassantagonismsanddemocratisessociety.Itisappropriatetopromotethisdevelopment.Inordertogaininfluencesocialdemocracyhastofindthecouragetomakeupitsmindtoappearwhatitisinrealitytoday:ademocraticsocialistpartyofreform.15
Fromallthisitisapparent,asBrauercorrectlyemphasises,thatBernsteinisnosocialistintheMarxistsense,becauseheiscaughtupinpoliticalcategories.ForMarx,theproletarianrevolutionisnotjustapoliticalactthatreplacestheoldpower,basedonparliament,withanewone,butissimultaneouslyasocialrevolutioninsofarasitabolishesthewholeofthepreviousformofsocietytoreplaceitwithanewone.Classstrugglejustlikeitshighestform,civilwarisnot,forMarx,theproductofthegoodorbadwillofthepeopleandcannotbereplacedatdiscretionbyparliamentaryactivity.Onthecontrary,classstruggleandrevolutionareinevitableconcomitantsoftheimmanenteconomicnecessitywithwhichdevelopmentdrivestowardssocialism.
11 Bernstein,Thepreconditionsofsocialism,pp.199200.
12 Bernstein,Thepreconditionsofsocialism,p.20.
13 EduardBernsteinDerKampfderSozialdemokratieunddieRevolutionderGesellschaft,part2,NeueZeit,16(18),1898,p.556;BernsteinmakesaverysimilarstatementinThepreconditionsofsocialism,p.190.
14 TheodorBrauer,DermodernedeutscheSozialismus,Herder,FreiburgimBreisgau,1929,p.142.
15 Bernstein,Thepreconditionsofsocialism,p.186.
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TheconsiderableinfluenceBernsteinexercisedonintellectualscanbeexplainedbythefactthattheboldnessofhisapproachwasinitiallycaptivatingbecause,incontrasttothefearthatMarxismwasbeingpetrified,itinseemedtopavethewayforthefurtherdevelopment.Atthesametime,hewonoverthosewho,foropportunistreasons,didnotwishtocommit
themselvesandfoundinBernsteinsconditionaldeterminationsandqualificationstheboltholestheydesiredfortheirownindecision.
AmongthecriticsoftheMarxisttheoryofcrisisandbreakdownwho,likeBernstein,proceedfromanethicalperspective,theRussianprofessorMikhaelTuganBaranovskiiparticularlyexcelled,withargumentsthatwerelaterusedextensivelybyrevisionists(StudiesonthetheoryandhistoryofcommercialcrisesinEngland,TheoreticalfoundationsofMarxism,Modernsocialisminitshistoricaldevelopment).16AccordingtoTuganBaranovskiicrisesandtheultimatebreakdownofcapitalismcannotbeduetoalackofmarketssince,inthecourseoftheexpansionofproductiontheindividualspheresofproductionreciprocallycreatenewmarketopportunities.TuganBaranovskiiseekstoprovethis,usingareproductionschemabasedonMarxs.Norneedthereductionofsocialconsumptionasaresultoftheprogressoftechnology
andthereplacementofhumanlabourbymachinesleadtooverproduction.Withtheexpansionofproduction,humanconsumptionisreplacedbyproductiveconsumption,i.e.strongerdemandformeansofproduction.AccordingtoTuganBaranovskii,theseresultsofabstracttheoreticalanalysisareconfirmedbytheempiricalfacts.Recentcapitalistdevelopmentshowsastrongexpansionoftheindustriesproducingmeansofproduction,suchsectorsascoalandsteel,mechanicalengineering,chemicalsetc,whoseproductsdonotflowintohumanconsumption,whilethosesectorsdirectlyservinghumanconsumption,suchastextiles(cotton)havealmostreachedastandstill.
Theabsolutelimitfortheexpansionofproductionisconstitutedbytheproductiveforcesthatsocietyhasatitscommand.Capitalcanneverreachthislimittotheextentthatthisexpansionofproductionoccursproportionatelyinallbranchesofproduction.Capitalistcrisesarethus
exclusivelytheresultofdisproportionalinvestmentinindividualspheres.Withproportionalinvestmenttheproductiveforcesofcapitalismcandevelopwithoutlimit.Thecapitalisteconomycannotbreakdownforeconomicreasons.17Marxstheoryofvalueissuperfluousforthedemonstrationofsurpluslabour.Surplusproductisnottheproductofthewagelaboureremployedandexploitedinproductionalonebutistheproduceofthewholeofsocietyasaunit.Capitalistsocietysdefectisthatthepropertiedclassappropriatesthissurplusproduct.Theendofthisunjustsystemcanthusonlyresultfromethicalcauses.Thereis,therefore,nooccasiontosupposethatcapitalismwillsomedaydieanaturaldeath;itwillbedestroyedbytheconsciouswillingeffortsofman,bythatsocialclasswhichhasbeentheforemostobjectofcapitalisticexploitationtheproletariat.18ForthisreasonTuganBaranovskiipraisessocalledutopiansocialism,whichwasfarmorescientificthanMarxism,totheextentthatitdidnot
attempttoprovideuntenableobjectivejustificationsforthereorganisationoftheexistingeconomicorder.
16 MikhailIvanovichTuganBaranovskii[(18651919)wasforaperiodalegalMarxistintheRussianempire],StudienzurTheorieundGeschichtederHandelskriseninEngland,Fischer,Jena,1901,[1894];TheoretischeGrundlagendesMarxismus,Duncker&Humblot,Leipzig,1905;ModernSocialisminitshistoricaldevelopment,Sonnenschein,London,1910[1908].
17 TuganBaranovskii,DerZusammenbruchderkapitalistischenWirschaftsordnungimLichtedernationalkonomischenTheorie,ArchivfrSozialwissenschaftundSozialpolitik,19,1904,p.304etseq.
18 TuganBaranovskii,Modernsocialism,p.96.
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Inadditiontothosecited,ConradSchmidt,theauthorofavaluablebookonTheaveragerateofprofitonthebasisofMarxslawofvaluewhichwaspraisedbyEngels,oughttobementioned.YethesoonbecameoneofthefiercestopponentsofMarxstheoryofvalueandsurplusvalue.Hewasnot,however,contenttocriticiseandrejectMarxsconception,but
himselfundertookasystematicanalysisofthecapitalisteconomyanditslaws(cf.hisarticlesonthetheoryofvalueandcrisesinSozialistischeMonatshefteand,inparticular,Onthemethodoftheoreticalpoliticaleconomy).19HereSchmidtreachedthesameconclusionthatMarxdeducedforthecapitalisteconomy:withthepurchasingpowerintheformofwages,towhichheisentitled,theworkercanonlybuyaportionofvalueforwhoseproductiononlyafractionofthelabourthathehimselfperformedwasnecessary.Inotherwords,ifthecommoditiesheproducedaretobeprofitablefortheentrepreneur,hemustalwaysperformsurpluslabour.But,accordingtoSchmidt,thisbasicresultwasachievedwithouthavingtouseMarxsuntenablelawofvalue,wherebyonecanavoidmanycontradictionsassociatedwiththislawofvalue.
b)TheNeoKantians
Inadditiontotherevisionistmovement,whichsoughttounderminetheeconomicandpoliticalfoundationsofMarxism,towardstheendofthelastcentury,inthefieldofphilosophyastrongerrevisionistcurrentalsoarosewithinsocialdemocracy.Theentryofbroadintellectuallayersintotheworkersmovementsoonledtoadiscussionaboutthemeaningandvalidityofthematerialistconceptionofhistory.Engelsalreadymadecertainmodifications,inletterstosocialistuniversitygraduateswhoaskedhimforinformation(see,inparticulartheletterof21September1890toJosephBloch).Intheseletters,Engelswarnedagainstexaggerationsandobservedthatsomeyoungerwritersattributemoreimportancetotheeconomicaspectthanisduetoit20andthattheeconomicsituationwasnottheonlybutmerelythedeterminingmomentofsociohistoricaldevelopmentinthelastinstance.Theseintellectualsimportsecondaryidealisticcurrentsintotheworkersmovement,thatwanttoabandonthematerialistconceptionofhistoryorcombineitwithidealism.ParticularlyinFrance,whereJeanJaursinhisLatindissertationof189121developedtheidealistconceptionofhistoryaccordingtowhichhistorywastheproductofthehumanspiritaconceptionthathealsoretainedlaterasasocialist.Theidealistcurrentisassistedbysomesupportersofthematerialistconceptionofhistorysuchas,forexample,PaulLafargue(18421911)whosecrudeinterpretationshelpeddiscreditit.22InGermanyacurrentinitiallydevelopsinphilosophyatuniversitiesthatseekstojustifysocialismidealisticallyandtolinkitwithKant.Itoriginates
19 ConradSchmidt,[18631932,wasaGerman,socialdemocraticeconomistandjournalist,andtheolderbrotherofthesocialistartistKtheKollwitz]DieDurchschnittsprofitrateaufGrundlagedesMarxschenWerthgesetzes,Dietz,Stuttgart,1889;NachtrglicheBemerkungenzurBernsteinDiskussion,SozialistischeMonatshefte,3(10),October1899,pp.4939;ZurTheoriederHandelskrisenundderUeberproduction,SocialistischeMonatshefte,5(9),September1901,pp.66982;PositiveKritikdesMarxschenWertgesetzes,SozialistischeMonatshefte,16(10),19May1910,pp.60418;ZurMethodedertheoretischenNationalkonomie,SozialistischeMonatshefte,21(10),27May1915,pp.492502.
[20 FriedrichEngelslettertoJosephBloch,21September1890,MECW49,p.36.[wholeletterpp.336]
[21 JeanJaurs,DeprimissocialismigermanicilineamentisapudLutherum,Kant,FichteetHegel,Chauvin,Toulouse,1891.]
22 Cf.PaulLafargue,LedterminismeconomiquedeKarlMarx:recherchessurlorigineetlvolutiondesidesdeJustice,duBien,delAmeetdeDieu,V.GiardetE.Brire,Paris,1909.
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withHermannCohen(18421918),thefounderofNeoKantianism,thesocalledMarburgSchoolwho,inhisIntroductiontoFriedrichAlbertLangesHistoryofmaterialism,23attemptedtoprovethatsocialismwasbasedonthesocialismofethicsandtothisextentKantwasthetrueandgenuineinitiatorofGermansocialism.InhisbookEconomicsandlaw
accordingtothematerialistconceptionofhistoryRudolfStammler(ofHalle)recognisedthisasthebestandmostconsistentmethodforcausalresearchintoeconomicdevelopment,butdemandedthatitbesupplementedbygoalsetting(teleological)considerations.Onlybymeansofthelatterisitpossibletoachievethehighest,socialgoal,whichStammlerregardsasthecommunityofpeoplewhowanttobefree,inwhicheverybodymakestheobjectivelyjustifiedpurposesoftheotherhisown.24FranzStaudinger(18491921)attemptedevenmore,inhiswritings(Ethicsandpolitics:economicfoundationsofmorality):25toreconciletheMarxiststandpointwithKantsepistemologicalcritiqueandethics.EachKantianhadtocometoMarxbylogicallydevelopinghisownbasicideas.Andviceversa:AssoonasMarxismnolongermerelypursuessocialbecomingscientificallyinaccordancewiththecausalviewpointbutmakesconsciousandplannedtransformationofthegivenintoitsgoal,itarrivesatKant,asa
resultofconsistentpursuitofitsownprinciple.
26
AlongsimilarlinestoStaudinger,KarlVorlnderinhiswritings(Kantandsocialism,FromMachiavellitoLenin)27advocatedacombinationofMarxandKant,i.e.acombinationofaneconomic,historicalwithanepistemologicallycritical,ethicaljustificationforsocialism.
Thiscurrent,whichinitiallyaroseoutsidethesocialistmovement,soonalsocreatedanechowithinit,particularlyintheranksoftherevisionists:EduardBernstein,ConradSchmidtandLudwigWoltmann(Historicalmaterialism),whoattemptedtoundermineMarxismthroughphilosophytoo,butalsointheranksofyounger,radicalVienneseMarxistsatthetime,suchasMaxAdler(CausalityandTheologyintheDisputeabouttheEconomy,MarxasThinker,MarxistProblems)andOttoBauer(Marxismandethics,directedagainstKautsky),whoultimatelydeviatedintothecampofreformism.28Theyalldemandedastrongerconsiderationof
ideologicalaspects,epistemologicalcritiqueandethicsinsocialisttheory.SimilarattemptsbyRussianrevisionisminthefieldofphilosophyevokedtheresoluteresistanceofPlekhanovand
23 HermannCohen,EinleitungmitkritischemNachtrag,inFriedrichAlbertLange,GeschichtedesMaterialismusseitKant,HermannCohenBaedeker,Leipzig,5thedition,1896.
24 RudolfStammler,WirtschaftundRechtnachdermaterialistischenGeschichtsauffassung:einesozialphilosophischeUntersuchung,Veit,Leipzig,1896,p.5756.
25 FranzStaudinger,EthikundPolitik,Dmmler,Berlin,1899;WirtschaftlicheGrundlagenderMoral,Roether,Darmstadt,1907.
26 Staudinger,EthikundPolitik,p.159.
27 KarlVorlnder,KantundderSozialismusunterbesondererBercksichtigungderneuestentheoretischenBewegunginnerhalbdesMarxismus,Reuther&Reichard,Berlin1900;KantundMarx:EinBeitragzurPhilosophiedesSozialismus,Mohr,Tbingen,2ndedition,1926;VonMachiavellibisLenin:NeuzeitlicheStaats undGesellschaftstheorien,Quelle&Meyer,Leipzig,1926.
28 LudwigWoltmann,DerhistorischeMaterialismus:DarstellungundKritikdermarxistischenWeltanschauung,Michels,Dsseldorf,1900;MaxAdler,KausalittundTeleologieimStreiteumdieWissenschaft,VerlagderWienerVolksbuchhandlungBrand,Wien,1904,pp.195433;MarxalsDenker:zum25.TodesjahrevonKarlMarx,VerlagBuchhandlungVorwrts,Berlin1908,KantandMarxism,Berlin1925;MarxistischeProbleme;BeitrgezurTheoriedermaterialistischenGeschichtsauffsungundDialektik,Dietz,Stuttgart1913;OttoBauer,MarxismusundEthik,Neue
Zeit,24,2(41),1906,pp.48599;KarlKautsky,EthikundmaterialistischeGeschichtsauffassung,Dietz,Stuttgart,1906.
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Lenin(Materialismandempiriocriticism).29Onthewholerevisionismremainednegativephilosophicallyandproveditselftobejustasinfertilehereasinthefieldofeconomics.However,withthevictoryofreformisminGermanSocialDemocracyduringandaftertheWar,thesecurrentssucceededincomingintotheirown.Itischaracteristicofthecompletely
alteredattitudeofsocialisminthisperiodthatthearticleonthephilosophicalfoundationsofsocialisminTheprogramofSocialDemocracy:suggestionforitsrenewal,whichappearedbeforetheGrlitzPartyCongress,waswrittenattherequestofauthoritativepartycirclesbytheabovementionedKantianKarlVorlnder.30
Asfarasrevisionismasawholeisconcerned,itisnotonlythecircumstancethatbothBernsteinandTuganBaranovskiisubscribetothetheoryofmarginalutilitythatlendsitanindividualisticaspectbut,aswasshown,alsoitsattempttoreplacetheMarxistmaterialistdialecticwithKantianethicsandepistemologicalcritique.For,incontrasttosocialismthatitisafundamentalsocialism,Kantsstartingpoint,itmustbeinsisted,istheautonomouspersonality.Here,however,thereisafundamentalcontradictionwithsocialismingeneralandMarxistsocialisminparticular,whichonlyknowsandexplainstheindividualasconditionedby
thesocialenvironment.RevisionismasawholehasnotbeenabletoreplaceMarxisttheorywithoneofitsownthatinanyrespectcapturedtheeconomicmechanismwithitssocialinterconnections.Itremainedstuckincritiqueandthereforethequestionwhetherrevisionismshouldbeaddressedassocialisminprinciplehastobeansweredinthenegative.Butalsoasapurecritiquethestandpointofrevisionismhasprovedtobefalse.OneonlyneedstocompareitscritiqueoftheMarxistaccountofthepronenessofartisanalproductionandthemiddleclassestocrisesandconcentration,andfinallyitsconceptionofthesuperiorityofthesmallscaleoperationsinagriculturewiththeexperienceofthepostwarperiod(seeFritzPollockSocialismandagriculture,andJulianGumperzTheagrariancrisisintheUnitedStates),31inordertoseethathistoryhasprovednotrevisionismbutMarxiscorrect.AnybodywhodelvesintoCapitaltoday,
aftersevendecades,hastoconcedewithastonishmenthowcorrectly,indeedpropheticallyMarxunderstoodthelargescaletendenciesofcapitalistdevelopment.
OverthetwodecadesbeforetheWorldWar,reformismbecameaninternationalphenomenon.MuchearlierthaninGermany,itappearedinEngland.There,thefirstmassmovementoftheproletariat,theChartistmovement,wasdefeatedinthethirtiesandforties.ButitsstrugglehadshowntheEnglishbourgeoisiethedangerthatthreatenedit.Subsequently,itknewhowtocalmthedissatisfactionoftheworkingclassbymeansofconcessionsandthetimelygrantofrealbenefitstoitsupperlayer,whichitssupremacyontheworldmarketallowedittodo.Inthismanneroveralongperiod,itsuccessfullypreventedtheEnglishproletariatfromcombiningtocreateanindependentpoliticalparty.Thewholeenergyoftheworkingclassturnedtodevelopingtradeunions,mutualfundsandcooperatives.The
greatreorganisationoflocalgovernmentgaveworkerstheopportunitytorepresenttheirinterestsinthefieldofthemunicipalpromotionoftheeconomyandwelfarethroughautonomouslocalauthorities.Thetradeunionsdevelopedapurelyreformistpractice.The
29 VladimirIlychLenin,Materialismandempiriocriticism,inVladimirIlychLeninCollectedworks.Volume14,Progress,Moscow,19608(LCW),[1909],pp.17362.
30 KarlVorlnder,ZudenphilosophischenGrundlagenunseresParteiprogramms,inSozialdemokratischeParteiDeutschlands,DasProgrammderSozialdemokratie,VorschlgefrseineErneuerung,BuchhandlungVorwrts,Berlin,1920,pp.1017.
31 FriedrichPollock,SozialismusundLandwirtschaft,inMaxAdleretal.,FestschriftfrCarlGrnberg,
Hirschfeld,Leipzig1932,pp.397431;andJulianGumperz,DieAgrarkriseIndenVereinigtenStaaten,Buske,Leipzig1931.
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revolutionarytraditionsofChartismwereforgotten.ThereformistsocialistFabianSociety,foundedin1883/84andconsistingofafewhundredintellectuals,gainedconsiderableinfluenceinbourgeoiscirclesandthetradeunionbureaucracy,undertheleadershipofSidneyWebb(born1859)andGeorgeBernardShaw.ThereporttheywrotefortheInternational
SocialistCongressinLondon(1896)providesaclearinsightintotheessenceoftheFabians.32
TheFabiansdonotwanttobeaparty,rathertheywanttopermeateallexistingorganisationsandmovementswithFabianideas.ThetacticofpermeationisoneofthespecificcharacteristicsoftheFabians.TheFabianSocietyendeavourstorousesocialcompunctionbymakingthepublicconsciousoftheevilconditionofsocietyunderthepresentsystem..33ApartfromtheFabianSocietysnumerouspamphlets(tracts),Englishreformismfounditstheologicalexpressionaboveallintheworksofthecouple,SidneyandBeatriceWebb(HistoryofBritishTradeunionism,withanafterwordbyEduardBernstein;ThePreventionofdestitution;AconstitutionforthesocialistcommonwealthofGreatBritain;Thedecayofcapitalistcivilisation)andofJamesRamsayMacDonald(Socialismandgovernment).34TheLabourParty,whichwasfinallyfoundedin1900,immediatelyadoptedthereformistprinciplesandpracticeofthe
Fabiansandthetradeunions.InFranceonealreadyfindsreformisminthepamphletsthatPaulBroussepublishedinParisin18812.BroussewasthefounderofthepartyofthesocalledPossibilists,whichexisteduntil1899.Subsequently,reformistideasweremoststronglypromotedbytheactivityofJeanJaurs,whoalsoadvocatedparticipationinabourgeoisgovernment(ministerialism)in1899.IntheSocialistPartyofItalytoodespitetheweakindustrialdevelopmentofthecountrystrongreformistcurrentsappeared,essentiallyrepresentedbypettybourgeoisintellectualswhoparticipatedinallthetheoreticalcontroversiesaboutthetheoriesofimpoverishmentandconcentrationthatwerefoughtoutfromtimetotimeinthepartystheoreticalorganCriticasocialeintheperiod18951905,afterthepublicationofvolume3ofCapital.ThesyndicalistArturoLabriola,inhisStudyofMarx,wastheforemostcriticofthetheoryofimpoverishment
andbreakdown.35InEconomicspeculationandThedictatorshipofthebourgeoisie,36hedealtwiththeproblemofimperialism.Withthestrongerindustrialdevelopmentofthecountryafter1905,therelatedintensificationofclassstrugglesandtheadvanceofreactionwithinthebourgeoisie,numerousintellectualsabandonedsocialism.EmileVanderveldeinBelgiumworkedwiththesameorientationasJaursinFrance(WorkersBelgium;Collectivismandindustrialevolution;Agrariansocialismandagriculturalcollectivism;Essaysontheagrarian
32 GeorgeBernardShaw,ReportonFabianpolicyandresolutionspresentedbytheFabianSocietytotheInternationalSocialistWorkersandTradeUnionCongress,London,1896,FabianSociety,London,Fabiantract,70,1896.
33 Shaw,ReportonFabianpolicy,p.7.34 DieGeschichtedesBritischenTradeUnionismus,afterwordbyEduardBernstein,Stuttgart1895,
originaleditionHistoryoftradeunionism,Longmans,GreenandCompany,1894;Industrialdemocracy,2volumes,Longmans,GreenandCompany,London,1897;Thepreventionofdestitution,Longmans,GreenandCompany,London1911;AconstitutionforthesocialistcommonwealthofGreatBritain,Longmans,GreenandCompany,London,1920;Thedecayofcapitalistcivilisation,FabianSociety,London,1923;JamesRamsayMacDonald,SozialismusundRegierung,Diederichs,Jena,1912,withaforewordbyEduardBernstein,originaledition,Socialismandsociety,IndependentLabourParty,London,1905.
35 ArturoLabriola,Marxnelleconomiaecometeoricodelsocialismo,SocietEditriceAvanguardia,Lugano,1908;secondedition,StudiosuMarx,Morano,Napoli,1926.
36 ArturoLabriola,Laspeculazioneeconomica,SocietEditricePartenopea,Napoli1907;Ladittaturadellaborghesiaeladecadenzadellasocietcapitalistica,Morano,Napoli,1924.
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questioninBelgium;TheWorkersPartyofBelgium18851925).37ReformismtookaspecificforminRussia.ItsmostnotabletheoreticalrepresentativeswereTuganBaranovskiiandPetrBerngardovichStruvewho,however,soonswungovertoliberalism.ItachievedmasspoliticalinfluenceintheworkersmovementinMenshevism.
c)Theradicalsonthedefensive
TheeffortsofrevisionismweresooncounteredbythesocalledradicalsororthodoxMarxists,KarlKautsky,FranzMehring,HeinrichCunow,ParvusbutaboveallRosaLuxemburg,inNeueZeitandinspecificpolemicalwritings,whiletherevisionistsusedthenewlyfoundedSozialistischeMonatshefte.38
KautskysAgrarianquestionistargetedagainsttherevisionistcritiqueoftheMarxspresentationofdevelopmentaltrendsinagriculture.39ThisisKautskysmostsignificantandindependenteconomicwork,althoughevenherethehistoricaldescriptiveelementcrowds
outthepurelytheoreticalaspect.InhisanticritiquedirectedagainstBernsteinscritique(BernsteinandtheSocialDemocraticprogram),40Kautskydealswiththequestionsofmethod,programandtactics,particularlythetenetsdisputedbyBernstein:thetheoryofbreakdown,developmentaltrendswithregardtoenterprisesize(largeandsmallenterprises),theincreaseinthenumberofpropertyownersandthemiddleclass,thetheoryofimpoverishmentandcrisis.HereKautskyseekstorefutetheBernsteinclaimsaboutthealleviationcapitalistcontradictions,bymeansofphilologicalinterpretationofMarxstextsandcomprehensivecompany,taxandotherstatistics,andtodefendthethesisoftheintensificationofclasscontradictions.Inthecourseofdoingso,herelaxesorcompletelyrelinquishesimportantprinciplesofMarxisttheory.EventheErfurtProgramme(1891),whichwasdrawnupby
37 EmileVandervelde,WorkersBelgium,Paris1906;Collectivismandindustrialevolution,Kerr,Chicago,1901[1900];Lesocialismeagraireoulecollectivismeetlvolutionagricole,Giard&Brire,Paris,1908;EssaissurlaquestionagraireenBelgique,ditionsduMouvementsocialiste,Paris,1902;LePartiOuvrierBelge,18851925,MaisonNationaledditionlglantine,Bruxelles,1925.
[38 KarlKautsky,BernsteinunddasSozialdemokratischeProgramm:EineAntikritik,Dietz,Stuttgart,1899;Parvus,thenameforpoliticalpurposesofAlexanderIsraelLazarovichHelphand,18671924,wasaprominentMarxistrevolutionaryandjournalistintheRussianandGermansocialdemocraticmovements,whoparticularlyadvancedthedevelopmentofthetheoryofpermanentrevolutionwithLeonTrotsky.WheneditorofthedailySchsigerArbeiterZeitung,hewroteaseriesofarticles,mostheadedBernsteinsUmwlzungdesSozialismusinhisnewspaper:27,28January;8,9,12,
18,22,24,26February;9,11,24,26March1898.FranzMehringsarticlesappearedinanotherdailypartynewspaper,9,10February,10March,1898,LeipzigerVolkszeitung;HeinrichCunow,ZurZusammenbruchstheorie,NeueZeit,17,1(12,13,14),7,14,21December1898,pp.35664,396403,42430;RosaLuxemburg,Socialreformorrevolution,inRosaLuxemburg,TheessentialRosaLuxemburg:ReformorrevolutionandThemassstrike,Haymarket,Chicago,2008[1899,1908],pp.41104.[Forwritingsbymajorcontributorstothedebateandanintroductoryoverview,seeHenryTudorandJosephineM.Tudor(eds)Marxismandsocialdemocracy:therevisionistdebate189698CambridgeUniversityPress,Cambridge,1988.ThecontentsofNeueZeitandSozialistischeMonatsheftefortheperiodareaccessibleonlinefromhttp://library.fes.de/inhalt/digital/zeitschriften.htm,accessed20June2013.]
39 KarlKautsky,Theagrarianquestion,Zwan,London,1988[1899].
40 KarlKautsky,BernsteinunddassozialdemokratischeProgramm:EineAntikritik,Dietz,Stuttgart,1899.
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KautskyandsignifiedthehighpointintheMarxistdevelopmentofGermanSocialDemocracy,portraysthedecisivepointofthepoliticalprogramveryvaguely.Theprocessofcapitalistdevelopmentseemstobetheresultofblindsocialforces.Theconquestofpoweriswrappedintotaldarkness.Thedictatorshipoftheproletariatisnotevenmentioned.Asaresult,the
politicalaspectofMarxismwasvirtuallydecapitated,untilitwasreconstructedagainbyLeninafteraquarterofacentury.Engelsscritiqueofthedraftprogrammeof1891wasdisregardedandineffective,justasMarxscritiqueofthedraftGothaprogrammehadbeenin1875.41InthedisputewithBernstein,KautskyintensifiedthereinterpretationofMarxsoriginaltheoryevenfurther.ComparedwithBernsteinsdemandthatthePartyshouldbecomeademocraticsocialistpartyofreform,emphasisedthatSocialDemocracyhadtobecomeapartyofsocialrevolution.42Here,however,headdedthatitwasnotamattertheconceptofrevolutioninthesenseofanarmeduprisingbutofeverylargescalepoliticalconvulsionthatspeededupthepoliticallifeofthenationandmadeitpulsatemostenergetically.Admittedlyextralegaluseofviolencecouldformanepisodeinsuchaconvulsionbutcouldneverbetherevolutionitself.Inthisreinterpretationoftheconceptofpoliticalrevolution,itsrealcontentthe
transferofpowerintothehandsofanewclasswasclearlylost.Atthetime,Engelsspoliticaltestament,hisfamousintroductiontoTheclassstrugglesinFrance,writtenin1895,playedanotunimportantroleinthedebateovertactics.Heallegedlyrevisedthetacticsoftheworkersmovementandsupposedlycounterposedbarricadestrugglesviolentrevolutiontopurelylegalstruggle,parliamentarism.Asitturnedout30yearslater,thankstoRyazanovsuncoveringofthefulltext,theIntroductionwaspublishedbythePartyexecutiveinanabridgedformthatsignificantlydistorteditsmeaning.43
KautskyalsoreinterpretedtheeconomicsideofMarxisminimportantpoints,byinterpretinghisownconceptionsintoMarxstext.Initially,thiswasnotsufficientlyrecognisedbythesocialistpublic,sinceheappearedintheroleofdefenderofMarxstheoryagainstBernsteinandadheredtoMarxstraditionalterminology.ThiswasparticularlythecaseforMarxstheory
ofbreakdownandcrisis.InsteadofmaintainingMarxstheoryofbreakdown,thetheoryoftheobjectivenecessityofthedemiseofcapitalism,initsrealformagainstitsdistortionbytherevisionistcritique,thatthebreakdowncouldhappenautomaticallywithouttheactiveinterventionoftheproletariat,KautskydeniedthisdecisivepositionofMarxssystemaltogetherandportrayedthetheoryofbreakdownasBernsteinsinvention.Atthesametimeandincontradictiontothis,hemaintainedinrelationtocrisesthat,whiletheexpansionofproductionwaspracticallylimitless,externalandinternalmarketshadtheirlimits.Consequently,fromaspecifichistoricmomentonwardsthecapitalistmodeofproductionwouldbecomeanimpossibility.Notonlyatemporarycrisisbutincurablechronicoverproductionwouldthensetin,asthefinallimitonthemaintenanceofthecapitalistregime.Thesignificanceofthisutmostlimitoftheviabilityoftodayssocietywasthat
socialism[wouldemerge]fromthesphereofnebulousideastobecomeanecessarygoalofpracticalpolitics.44
ThatthisunclearandcontradictoryattitudeofKautskystoimportantelementsofMarxstheorywasunsatisfactoryisclearandallthemoresowhenKautskystheoreticalconfusionincreasedinhislaterwritings.Threeyearslaterinaseriesofarticles,onCrisistheory,
41 FrederickEngels,AcritiqueofthedraftSocialDemocraticProgrammeof1891,MECW27,pp.217233.
42 KarlKautsky,BernsteinunddassozialdemokratischeProgramm,pp.1813.
[43 FrederickEngels,IntroductiontoKarlMarxTheclassstrugglesinFrance,MECW27,pp.50624,(1895).ThiseditionindicatestheabridgementsmadewhentheIntroductionwasfirstpublished.]
[44 Kautsky,BernsteinunddassozialdemokratischeProgramm,pp.142,145.]
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directedagainstTuganBaranovskiiscritiquehecombatsTuganBaranovskiisviewthatcrisesarisefromlackofproportionalityinproductionandarguesagainsttheassertionoftheunlimitedexpansionofcapitalism:thecapitalistmodeofproductionhasitslimitswhichitcannottranscend.Yet,afterquarterofacentury,inhisPrefacetothepopulareditionof
volume2ofCapitalheembracedTuganBananovskiistheoryofdisproportionalityasthecauseofcrises,whichhehadearliercombated,withoutanyreservations.45Inhislastlargework(Thematerialistconceptionofhistory),intheautumnofhislife,KautskyfinallyabandonedtheMarxisttheoryoftheimpassablelimitsofcapitalistdevelopmentandbasedhimselfonTuganBaranovskiistheoryofthepossibilityoftheunlimitedexpansionofcapitalism,whichhehadcriticised25yearsearlier,andwiththatdisownedhislifework.Thepatternthateverymodeofproductionultimatelysurvivestobecomeafetteronproductionduringitsdeclinedoesnotapplytocapitalism.Industrialcapitalismdoesnotleadtodecline,buttoanevermorerapiddevelopmentoftheproductiveforces.Kautskyclaimsthatpostwarcapitalismhasdemonstratedinpracticeinthemostimpressivefashionitsabilitytosurviveandtoadapttothemostdiverse,eventhemostdesperatesituations.Therearenoarguments
ofeconomictheorythatcouldcallitsvitalityintoquestion.AlthoughheKautskyhadanticipatedachroniccrisisofcapitalismthreedecadesearlier,thisprovedtobefalse.Capitalismistoday,consideredfromthepurelyeconomicstandpoint,moresolidlyestablishedthanever.46
IfonebearsinmindKautskyslaterdevelopment,alreadypresentinnascentformatthetimeofhisdisputeswithBernsteininhisunclearandvacillatingpositiononimportantpointsoftheoreticalprinciple,itiscomprehensiblethatthecontroversybetweenthesetwotheoreticiansdidnotandcouldnotresultintheclarificationoffundamentalquestionsofMarxisttheory.BothhadabandonedMarxisttheoryindecisivepointsandconductedthestruggleonlyoveralessimportantpoints,inpartmerelyaboutwords.Atthetimethiswasonlynoticedbyafew(RosaLuxemburg).HowevergreatKautskysservicewasinpopularising
Marxism,therealrevolutionarycharacterofMarxismremainedalientohim.InKautskysstrugglewithBernstein,ultimatelyBernsteinwasthevictor.
TheargumentsthatParvus(IsraelLazarevichHelphand),anenthusiasticsocialpatriotduringtheWar,advancedinaseriesofwritingsagainstrevisionismweremoreeffective(Commercialcrisisandtradeunions,Thetradeunionstruggle,Socialismandsocialrevolution,Colonialpolicyandbreakdown).47
MostimpressiveandenduringwereRosaLuxemburgsessays,thehighpointofwhich,onthetheoreticalside,isherSocialreformorrevolution,publishedagainstBernsteinsPreconditions.
IfBernsteinwasexpectingthetransitiontosocialism[toresult]fromtheprogressivedevelopmentofthebourgeoislegalsystem,fromstatutorysocialreform,RosaLuxemburgexplains,thenhewascommittingafundamentalerrorwithregardtotheessenceofcapitalistclassrule.Thisrests,incontrasttoearlierclasssocieties,notonlegallyanchoredacquired
45 KarlKautsky,Krisentheorien,NeueZeit,202(25),1902,pp.3747,7681,1108,13343;Vorwort,inKarlMarx,DasKapital:Kritikderpolitischenkonomie.2.DerZirkulationsprozedesKapitals,Dietz,Berlin,1926.
46 Thematerialistconceptionofhistory,(1927),pp.421,42456.
47 Parvus,DieHandelskrisisunddieGewerkschaften,Ernst,Mnchen,1901;DergewerkschaftlicheKampf,BuchhandlungVorwrts,Berlin,1908;DerSozialismusunddiesozialeRevolution,BuchhandlungVorwrts,Berlin,1910;DieKolonialpolitikundderZusammenbruch,LeipzigerbuchdruckereiAktiengesellschaft,Leipzig,1907.[Later,havingbecomeasuccessfulbusinessman,
heconcludedthataGermanyvictoryinWorldWar1wasdesirableandwouldleadtorevolutioninRussianandthereforecollaboratedwiththeGermanauthoritiestounderminetheRussianEmpire]
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rightsbutonrealeconomicforces.Inourjuridicalsystemthereisnotasinglelegalformulafortheclassdominationoftoday.Nolawobligestheproletariattosubmititselftotheyokeofcapitalism.Poverty,thelackofmeansofproduction,whicharetakenfromitnotbylawbutbyeconomicdevelopment,obligestheproletariattosubmititselftotheyokeofcapitalism.
Theexploitationoftheworkingclassasaneconomicprocesscannot,therefore,beabolishedormoderatedbylegalprovisionswithintheframeworkofbourgeoissociety.Socialreform,factorylaws,healthandsafetyregulations,donotindicateanelementofsocialcontrolintheinterestsoftheworkingclass,theydonotconstituteathreattocapitalistexploitationbutsimplytheregulationofexploitationintheinterestsofcapitalistsocietyitself.Infactdevelopmentleadstoanaccentuationandintensificationofthecontradictionsofcapitalism.Fromthestandpointofindividualcapitalists,credit,businessassociationsandothermeansthatallegedlyservetoovercomethesecontradictionsandtoregulateproductionareonlysuited,toadjusttheirinsufficientmeanstothedemandsofthemarket,toraisethefallingratesofprofitinthecartelisedsectorofindustryattheexpenseoftheothers.Cartelscancelouttheirowneffectivenesswhentheyextendtoallthemoreimportantsectorsofproduction.
Fromthestandpointoftheeconomyasawhole,credithelpsincreaseproductionbeyondthelimitsofthemarketandpromotesthemostrecklessspeculation.Farfrombeingmeanstomoderatethecontradictionsofcapitalism,businessassociationsandcredit,onthecontrary,powerfullyaggravateandpromotecrisesandmustaccelerateitsdownfall.ThebreakdownofbourgeoissocietysaysRosaLuxemburgnotjustagainstBernsteinbutevidentlyagainstKautskytooisthecornerstoneofscientificsocialism.ThehistoricalnecessityofsocialisttransformationisbasedFirst,onthegrowinganarchyofcapitalisteconomy,leadinginevitablytoitsruin.If,however,oneassumestheprogressivemoderationofcontradictions,ifoneassumesthatcapitalistdevelopmentdoesnotmoveinthedirectionofitsownruin,thensocialismceasestobeobjectivelynecessary.Thenitsjustificationisonlypossiblebymeansofpurereason,thatisanidealistexplanation,whiletheobjectivenecessityofsocialism,the
explanationofsocialismastheresultofthematerialdevelopmentofsociety,fallstotheground.48
Withthesameacuity,RosaLuxemburgalsodevelopsherprincipaltacticalideasabouttheclassstruggle.RadicalMarxismtoodesireseverydaysocialreformwork,thetacticalorientationoncurrentquestionsthetradeunionstruggleoverwages,thestruggleforsocialreformandthedemocratisationofpoliticalinstitutionsjustasmuchasreformism.Thedifferenceisnotinthewhat,butinthehow.Becauseitstartsfromtheassumptionthatthepoliticalseizureofpowerisimpossiblereformismwants,throughthetradeunionandparliamentaryactivitygraduallyreducecapitalistexploitationitself.Theyremovefromcapitalistsocietyitscapitalistcharacter.Theyrealiseobjectivelythedesiredsocialchange.Bycontrast,forMarxismtradeunionandpoliticalstruggleissignificantonlyasnecessary
preparationofthesubjectivefactorinthesocialisttransformationtheworkingclassforthedecisiverevolutionarybattle,firstorganisingtheworkersasaclassandeffectingtheemergenceofunderstanding,ofunitedproletarianclassconsciousness.Thesocialisttransitionwillnotcomeofitsownaccordbyfatalisticallywaitingforittohappen.Itresults,rather,fromunderstanding,wonintheeverydaystruggleoftheworkingclass,thatthesupersessionofcapitalismsobjectivelyintensifyingcontradictionsthroughsocialrevolutionisindispensible.ThusforRosaLuxemburg,aslaterforLenin,reformsareonlybyproductsofclassstruggleorientedonrevolution.Revisionism,bycontrast,makeseverydayworkindependentofthefinalsocialistgoal.Itseparatesreformfromrevolutionand,byraisingthemovementtoanendinitself,changesitscharacter.Itisnolongerameanstoachievethatgoalsocial
48 Luxemburg,Socialreformorrevolution,pp.457,61,902[Luxemburgsemphasis].
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transformationbutinsteadofthistransformationhasitselfbecomethegoal.Thisundialecticalattitudeseesonlymutuallyexclusivecontradictionseither/or,reformorrevolutionbutnotthesubsumptionofthesecontradictionsinthetotalityofthesocialprocess.49
Aswesee,onlywiththeseexplanationsistheconceptofthefinalgoal,neglectedintheErfurtprogram,defined.RosaLuxemburgdoesnotunderstandthefinalgoalastheidealstateofthefuture,tobeerectedafterthesocialistrevolution,buttheconquestofpoliticalpower,therevolutionitself.Ifyouunderstandthefinalgoalasthefuturestate,thenyoucanconsidereverydemocraticoreconomicachievementasasteponthispathtothisgoal.Butifoneregardstheconquestofpoliticalpowerthroughtherevolutionasthefinalgoal,asharpboundaryisdrawnwithreformism,whichreplacesthestrategictaskofdevelopingpeoplesrevolutionarycapacitywithcurrent,opportunistworkorthepropagationofamoreorlessvaguefinalgoaltobeawaitedfatalistically.SoRosaLuxemburgsinterpretationofMarxismassignsthedecisiveroletoworkingclasspoliticalactivism,throughtheorientationofcurrentworkonthefinalrevolutionarygoal,eventhoughtheseizureofstatepowerisdependenton
theobjectivecourseofmaterialsocialdevelopmentandassumesacertaindegreeofripenessofeconomicandpoliticalrelations.Marxismisthereforesharplydistinguishedfrombothfatalismandpurevoluntarism.
Forthefateofthedisputebetweenreformistsandradicals,werefertothearticleInternationals.50Reformismwasdefeatedinalltheoreticalskirmishes,condemnedbyresolutionsofpartyconferencesandinternationalcongresses,refutedagainandagainanewbytheprevailingintensificationofclasscontradictionsinthecourseofactualdevelopment.Butmaturingonthebasisofanaristocracyoflabour,itneverthelessmadeatriumphalprocessionthroughthedailypracticeoftheworkersmovement.ThegrowingpowerofMarxismwas,however,demonstratedbythefactsthatofallthesocialisttendenciesinallEuropeancountriesduringthefirsthalfofthe19thcenturyStSimonism,Proudhonism,later
Blanquismetc.Butitalonedominatedthemassesintellectuallyandthatreformism,inordertobeabletowinoverthemasses,hadtosailundertheflagofMarxism.
d)ReformisminMarxistdisguise(theneoharmonists)
HerewereferprimarilytoAustroMarxism,agroupofVienneseintellectualsRudolfHilferding,OttoBauer,MaxAdlerandKarlRennergroupedaroundthenewlyestablishedtheoreticalreviewDerKampf(from1908).Theyattemptedtoprovidetheoreticalformulationsforreformistpractice.Themostimportantbookfromthistendency,onethatstronglyinfluencedlatertheoreticaldevelopment,isRudolfHilferdingsFinancecapital.Twoofits
componentshavetobedistinguished.Ontheonehand,Hilferdingstrivestointegratethelatestphenomenaofeconomiclifetrusts,cartels,exportofcapital,imperialistexpansionisminshortmonopolycapitalism,whichhasreplacedcompetitivecapitalism,intothesystemofMarxseconomics.Ontheotherhand,followingTuganBaranovskiistheoryofcrisisandrenouncingtheMarxisttheoryofbreakdown,HilferdingendeavourstoreinterprettheMarxisttheoryofbreakdownintheharmonisticsenseofthelimitlesspossibilitiesfor
49 Luxemburg,Socialreformorrevolution,pp.669[Luxemburgsemphasis].
50 HenrykGrossmann,Internationale:DieZweiteInternationale(International:theSecondInternational);andInternationale:DiedritteInternationale(International:theThird
International),inLudwigElster(ed.),WrterbuchderVolkswirtschaft,ZweiterBand,fourthedition,Fischer,Jena,1932,pp.432439and439449.
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capitalistexpansion.RevivingJeanBaptisteSaysoldtheory,whichMarxalwayscombated,thatprimarilygeneraloverproductionisimpossiblebecauseindividualspheresofproductioncreatemarketsforeachother,Hilferdingreachestheconclusionthatcrisesarenotnecessarilyassociatedwiththeessenceofcapitalism.Theyarisesimplyfromdisproportioninthegrowth
intheindividualspheres,i.e.onlyfromunregulatedproduction.Ifthedistributionofcapitalamongindividualbranchesofindustryisproportional,thenthereisnolimitonproduction,productioncanbeexpandedindefinitelywithoutleadingtotheoverproductionofcommodities.Inshort,ifproduction,evenonacapitalistbasis,canberegulated,crisescanbeavoided.51
ThefoundationoftheworkisHilferdingstheoryofmoneyandcredit,whichdepartsfromMarxstheoryofmoneyanddistortsitinthesenseofKnappschartalism.52Certainly,forthispurpose,HilferdinghastobreachthegeneralvalidityofMarxslawofvalueforthemoneycommodity,whichKarlKautskycorrectlyassertedmeantthesuicideofMarxism.53Thetheoryoffinancecapitalisbuiltonthefoundationofthistheoryofmoney.Thecharacteristicfeatureoflatestdevelopmentsisthedominantroleofbankcapitalcomparedwithindustry.With
capitalistdevelopment,thetotalsumofmoneymadeavailabletothebanksbythenonproductiveclassesandthroughthebankstotheindustrialists,i.e.theroleofbankcapitalintheformofmoneythatistransformedintoindustrialcapital,constantlygrows.Aparticularrolefallsheretothetypeofenterpriseknownasajointstockcompany.Withshareswhatiscalledfictitiouscapital,detachedfromproductivecapitalfunctioninginfactories,arises.Itenablesbankstorapidlyconcentrateownership,independentlyoftheconcentrationoffactoriesandisacceleratedbyspeculationonthestockexchangeandtheaccumulationofpromotersprofitbythebanks.Bymeansofthismobilisationofcapital;anevergrowingportionofcapitalinindustrybecomesfinancecapital,i.e.itnolongerbelongstotheindustrialistsworkingwithit.Thedirectionofcapitalinvestedinindustryfallsmoreandmoretobanks.[T]heybecomefoundersandeventuallyrulersofindustry.Thetendencytowards
concentrationinbanking,towardsprogressiveeliminationofcompetitionamongbanks,wouldfinallyresultinasinglebankoragroupofbanksestablishingcontrolovertheentiremoneycapital.Suchacentralbankwouldthenexercisecontroloversocialproductionasawhole.54
Aparalleltendencytowardscombinationisalsoatworkinproduction.InasectiononThehistoricaltendencyoffinancecapital,probablyintendedtobeacounterparttoMarxsfamouschapteronThehistoricaltendenciesofcapitalistaccumulation,HilferdingpresentsthecourseofhistoricaldevelopmentquitedifferentlyfromMarx.55Thelatterdepictedthelimitsofcapitalistaccumulationthat,inadialecticalshiftatadefinitestageofdevelopment,ultimatelyleadstotheexpropriationoftheexpropriators.56Hilferdingwantstodemonstratethepeacefulandgradualgrowthofcapitalismintoaregulatedeconomy.Thecartelisationof
industry,inordertoraisepricesandprofits,lowerstherateofprofitinthenoncartelised
51 RudolfHilferding,Financecapital:astudyofthelatestphaseofcapitalistdevelopment,Routledge&KeganPaul,London,1981[1910],p.241.
[52 Chartalismisatheoryoffiatmoney,issuedandbackedbylawratherthanpreciousmetals,elaboratedbyGeorgFriedrichKnapp,Thestatetheoryofmoney,Macmillan,London,1924[1895].]
53 KarlKautsky,Financecapitalandcrises,MarxistInternetArchive,www.marxists.org/archive/kautsky/1911/xx/finance.htm,accessed4February2012(1911).
54 Hilferding,Financecapital,pp.105etseq.,226,180.
55 Hilferding,Financecapital,pp.22735;Marx,Capital1,pp.927930.
56 KarlMarx,ThecivilwarinFrance,MECW22,[1871],p.335.
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industries,intensifiescompetitioninthemandthusthetendencytowardsconcentration.Thisleadstofurthercartelisation,intheseindustriestoo.Soatendencytowardsthecontinuousextensionofcartelisationemerges.Theresultofthisconcentrationmovement,itsideal,theoreticalendpoint,willbethecompletecartelisationofallbranchesofindustrynotonlyin
thenationalbutalsotheworldeconomy,auniversalorgeneralcartelwhichconsciouslyregulatestheentiretyofcapitalistproductioninallitsspheres,setspricesandalsoundertakesthedistributionofproducts.Withtheadvanceoftheconcentrationmovementinindustry,productionisincreasinglyplanned(organisedcapitalism)andfinallyreachesitshighestexpressioninthegeneralcartel.Theanarchyofproductiondisappears,crisesareeliminatedandreplacedbyproductionregulatedbythegeneralcartel,evenifstillonthebasisofwagelabour.Thetendenciestowardstheestablishmentofageneralcartelandtowardstheformationofacentralbankareconverging,57henceapeacefulandpainlesstransitionfromcapitalismtosocialismbecomespossible.Thesocializingfunctionoffinancecapitalfacilitatesenormouslythetaskofovercomingcapitalism.Oncefinancecapitalhasbroughtthemostimportancebranchesofproductionunderitscontrol,itisenoughforsociety,throughits
consciousexecutiveorganthestateconqueredbytheworkingclasstoseizefinancecapitalinordertogainimmediatecontrolofthesebranchesofproduction.Eventoday,takingpossessionofsixlargeBerlinbankswouldmeantakingpossessionofthemostimportantspheresoflargescaleindustry.58
Afterthewar(1927),Hilferdingdeclaredthathehadalwaysrepudiatedeverytheoryofeconomicbreakdown,whichMarxhadalsoconsideredfalse.Theoverthrowofthecapitalistsystemwouldnothappenbecauseofinternallawsofthissystembuthadinsteadtobetheconsciousactofthewilloftheworkingclass.59
Duringthepostwarperiod,otherneoharmonists,suchasOttoBauer,KarlKautsky,alsoderivecrisessimplyfromthedisproportionalityofthedistributionofcapitalamongtheindividualbranchesofindustry.Theyconsidercrisestobeavoidable,ifthedistributionof
capitalisregulated,evenundercapitalism,andthelimitlessdevelopmentofcapitalismtobepossible.BauersassertionthatthemechanismofcapitalismautomaticallyenforcesthisproportionaldistributionofcapitalevenifthisismediatedbyperiodiccrisesgiveshisharmonisticinterpretationofMarxstheoryofcrisisaspecificcolouration.[T]hemechanismofcapitalistproductionautomatically[cancelsout]overaccumulationandunderaccumulation.WhereasMarxhadmaintainedthenecessityoftheprogressivegrowthoftheindustrialreservearmyoflabour,Bauertriestoprovetheopposite:Thereexistsinthecapitalistmodeofproductionatendencyfortheadjustmentofcapitalaccumulationtothegrowthofpopulation.60
57 Hilferding,Financecapital,p.234.
58 Hilferding,Financecapital,pp.367,368.
59 RudolfHilferding,DieAufgabenderSozialdemokratieinderRepublik,VorstandderSozialdemokratischenParteiDeutschlands,Berlin,1927,p.2,http://library.fes.de/prodok/fa59843.pdf,accessed4February2012.
60 OttoBauer,Theaccumulationofcapital,Historyofpoliticaleconomy,18(1),Spring1986,pp.106,107,(1913).[Thistranslationhasbeenmodified,asindicatedbythesquarebrackets.Initsoriginal
formthetranslationseriouslydistortedthemeaningofBauersGermantextbyrenderingaufhebtasgenerates,seeOttoBauer,DieAkkumulationdesKapitals,NeueZeit,311(24),p.872.]
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CTheresurgenceofrevolutionaryMarxisma)Thedecayofrevisionisttheory
Asalreadyshown,reformismwastheresultoftherelativelypeacefulperiodofcapitalistdevelopmentbetween1872and1894.RevolutionaryMarxisttheory,itselftheproductoftherevolutionaryperiodof1848,nolongerseemedtosuitthispeacefulperiod.ThereformistattempttodivestMarxismofitsrevolutionarycharacter,inordertoadaptittothereformistpracticeofthepeacefulworkofconstruction,wasultimatelydoomedtotheoreticalfailure.Economicdevelopmentattheendofthepreviouscenturyexperiencedadecisiveshift,oncemoredemonstratingthatthepracticeofthepeacefulworkofconstructionwasentirelyquestionable.
Thepolicyofimperialistexpansion,whichinthemostadvancedcountrieswastemporarily
abletosecureadvantagesfortheupperlayeroftheworkingclass,attheturnofthecentury,ledtoasharpeningofallantagonismsinbothdomesticandforeignpolicy.Theimperialisteraofheightenedcolonialpolicy,offeverishmilitaryandnavalarmsbuildups,andfinallyofbellicosecollisionsthatledtotheoutbreakoftheworldwarbegan.
Asharpeningofdomesticclassantagonismsinallcapitalistcountrieswentinparallelwiththegrowingtensionsinforeignpolicy.Thegreatadvancesofthesocialistworkersmovementacceleratedtheprocessofcombinationofemployersintopowerfulassociationsforstruggle,whichforcedworkersontothedefensiveinalleconomicstruggles.Kautskydemonstratedin1908thatthefactorswhichhadresultedinincreasedrealwagesoverpreviousdecadeswereallalreadygoingintoreverse.Theperiodofrisingrealwageswasreplacedbyfallingwagesandcertainlynotsimplyduringperiodsoftransientdepressionbuteveninperiodsof
prosperity.61Thefactofdeterioratingconditionsoflifeforworkingclassoverthisperiodhasbeendemonstratedbyprivateandpublicinvestigationsinaseriesofadvancedcapitalistcountries.Stateprotectionsforworkersalsocametoahaltunderthepressureofemployerassociations.Moreandmore,inthiscontext,thetradeunionsoldmethodsofstruggleprovedtobeinsufficient.Theperiodofisolatedstrikesinindividualenterpriseswaspast.Developmentdroveontolargemasseconomicstrugglesinwholebranchesofacountrysindustry.Ontheotherhandthebourgeoisiebecameprotectionistandreactionary.Politicalliberalismbegantodieout.Therecouldnolongerbetalkofextendingdemocracyfurther,whichhadbeenpromotedearlierbyacertain[degreeof]cooperationbetweentheliberalbourgeoisieandtheworkingclass.ThisentiredevelopmentwasstrengthenedandacceleratedevenmorebytheimpactoftheRussianRevolutionof1905.Thedevelopment,predictedby
thereformists,ofprogressiveimprovementintheconditionoftheworkingclassandtheweakeningoftheofclassstrugglesdidnotoccur.Therewas,rather,asharpeningofclassstruggles.Asitwasapparentthattheoldtradeunionandparliamentarymethodswerenolongercapableofachievingfurthergains,theworkingclasswasforcedtoconsidernewmethodsofstruggle,thattookintoaccounttherisingeconomicandpoliticalpressurefromthebourgeoisie.Thiswasthesignificanceofthediscussionaboutthepoliticalmassstrike.62
[61 KarlKautsky,VerelendungundZusammenbruch:DieneustePhasedesRevisionismusNeueZeit26,2,42,pp.546,549.][wholearticle:NeueZeit26,2,42and43,17and24July1908,pp.54051and60712]
[62 SeeRosaLuxemburg,Themassstrike,inRosaLuxemburg,TheessentialRosaLuxemburg:ReformorrevolutionandThemassstrike,Haymarket,Chicago2008[1907],pp.11181.]
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Insuchcircumstances,duringtheeraofbellicoseimperialismandcolonialexpansionaswellasreactionarydomesticpolicies,reformismoftheoldkindwasatypicalproductofepigones:repetitionofdatedchainsofthought,diametricallycounterposedtoreality.Anexampleofthisoversimplifiedpopularisationofsocialismthatspreadouteverywhereintheworkers
movementatthebeginningofthe20th
Centuryand,despiteitsMarxistphraseology,retainingnothingofthegenuinecontentofMarxssocialism,mentionshouldbemadeofabookbyMorrisHillquit,thecurrentleaderoftheAmericanSocialistParty,Socialismintheoryandpractice,63shouldbementioned.InthechapteronSocialismandthestateHillquitsettlesaccountswithtwodozendefinitionsofthestate,startingwithAristotleandCicero,throughTurgotandBenthamtoLeroyBeaulieuandAntonMenger,accordingtowhomthestateistheorganisedhumanityofagiventerritory.Tothisdefinition,designatedasfaulty,Hillquitcounterposestheentirelycorrectsocialistdefinitionofthestate,accordingtoMarxandEngels,andshowsthatthestate,asaproductofclass[divisions]aroseatthesametimeastheinstitutionofprivatepropertyandhasatalltimesbeentheinstrumentofthepropertiedclassesand,asanorganisationoftherulingclasses,necessarilykeepstheexploitedclasses
inaconditionofdependency.Fromthisentirelycorrectdefinition,however,Hillquitdrawsnoconclusionsforworkingclasspolicy.Inrelationtothepresentday,modernstate,Hillquitneverthelessallowsthevalidityofthebourgeoisdefinitionandassertsthatithasexperienceddeepinroadsmadeinitssubstanceandfunctionsbytherisingclassofwageworkers.Underthepressureofthe[socialistand]labourmovement,thestatehasacquirednewsignificanceasaninstrumentofsocialandeconomicreforms.Thestatewhichcameintobeingsolelyasaninstrumentofclassrepression,hasgradually,andespeciallywithinthelastcenturiesassumedotherimportantsocialfunctions,functionsinwhichitlargelyrepresentssocietyasawhole,andnotanyparticularclassinit.Itsexploitativefunctionintheinterestsoftherulingclassesarecurbedmoreandmore,whileitsgenerallyusefulfunctionsclaimitsattentionmoreandmore,asitprotectsworkersfromexcessiveexploitation,soitisgraduallycomingtobe
recognisedbythe[workers]asamostpotentinstrumentforthemodificationandultimateabolitionofthecapitalistclassrule.Therulingcapitalistclasswill,indeed,nevervoluntarilygiveupitspropertyandthesupremacythatresults.Hillquitdrawstheconclusionnotthatithastobeexpropriatedeconomicallyandpoliticallybutratherthattheprocessoftransformationwillcometopassgraduallythroughaseriesofeconomicandsocialreformsandlegislativemeasurestendingtodivesttherulingclassesoftheirmonopolies,privilegesandadvantages,stepbystep.Violencedoesnot,consequently,havetobeemployed.Thatwouldbebutanaccidentofthesocialrevolution[violence]hasnoplaceinthesocialistprogram.Throughthesereforms,aperiodoftransitionwillbeentered,inwhichthestate,althoughnotyetsocialist,isnolongeranorganofthecapitalistclassbutratheratransitionalstate.Definitelinesofdemarcation,whereitbeginsandwhereitendscannotbespecifiedbuttoday[a]numberofmunicipalitiesandstatesarealreadywhollyorpartlyundersocialistcontrol.Manyofthepoliticalorsocialtransitionalreformsofsocialismhave,toacertaindegree,beenrealisedincountriesinEurope,AmericaandAustraliaandtheconcededtendencyofallmodernlawmakingisitdirectedtowardstheextensionofsuchreforms.Inthissense,itmaywellbesaidthatweareinthemidstorinanycaseatthestartofthetransitionalstate.Hillquitrecommends,inturn,tacticsthatareconfinedtoelectoraltacticsandpositiveworkofparliament,withoutviolatingtheprincipleoftheclassstruggle.64
63 MorrisHillquit,Socialismintheoryandpractice,Macmillan,NewYork1909.
[64 Hillquit,Socialismintheoryandpractice,pp.97105,174,181,189.Grossmanwroteclass
struggleswheretheoriginalhadclassdivisions;andleftoutsocialistandfromthequotationstartingUnderthepressure;Hillquittookthequotationwithoutviolatingtheprincipleofthe
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IfsuchtheorieswerestronglyutopianduringtheperiodbeforetheWartheycompletelylostanyconnectionwithrealityaftertheoutbreakoftheWorldWar.Inordertoavoidshipwreckonthiscontrastwithreality,reformisttheorywasforcedtoadapttoit.Inpurelogic,thiscorrectionwaspossibleoncourses.Fromtheproletarianstandpoint:throughareturnto
revolutionaryMarxism.Inafurther,consistentdevelopmentofitsnature,reformismchosetheothercourseandplaceditselfentirelyonthegroundofbourgeoissocietyandthecapitaliststate.KarlRenneralreadydrewthisconclusion,containedinembryoinHilferdingsbook,withgreatclarityinarticlespublishedintheVienneseKampfandArbeiterzeitung(whichappearedinbookformasMarxism,warandtheinternational).65ExtendingtheresultsofHilferdingsbook,heseekstoportraythetransformationsinceMarxsdeaththathastakenplaceinthefabricoftheeconomy,stateandsociety,inthemutualrelationsofclassesinthencharacterofownershipandinthetasksoftodaysproletariat.AlthoughhepositsdifferentdevelopmentaltendenciestoMarxinalltheseareas,althoughheabandonsallthefundamentalcomponentsofMarxstheoreticalstructureandfinallyidentifiesdifferentgoalsandtasksfortheworkersmovementtoMarx,hedidnotforegoMarxistdisguiseforhistheory.Heclaimedtobea
proponentofgenuineMarxismwhostruggledagainstthereactionarymisconstrualofMarxsthoughtagainstthevulgartendencyofMarxism,againsttheossificationandoversimplificationofthe(Marxist)theoryofclassstruggle.NothebutratherthesupposedMarxistshaddistortedthetheoryofthemaster.IntheshortperiodsinceMarxwasactive,classrelationshaveoften,almosteverydecadeandahalf,beentransformed.InsteadofluggingalongtheoldcatechisticpropositionsofMarxssystemasoldgoods,itisnecessarytorevisethetheoreticalbaggageinallareas.SohisbookwasaMarxistexaminationofthenewmaterialofsocialdevelopment,adraftofastudyprogramforMarxists.66Marxsentireperiodofactivitywas,accordingtoRenner,duringtheliberalsocialera,withitsindividualisticanarchisticeconomicmode,forwhichthepowerofthestatewasabogyman.MarxresearchedthisepochanddescribeditinCapital.Inordertoexposeitslawsintheir
pure,logicalform,everystateinterventionhadtobedisregarded.Thiscapitalistsociety,whichMarxexperiencedanddescribed,doesnotexistanymore,somethingthatMarxistshavesofaroverlooked.Theessentialfeatureofthefundamentalchangesinthestructureofsociety,whichwerecompletedfrom1878to1914consistsofthestatificationofthepreviouslystatelesseconomy,thatis,preciselywhatKarlMarxssystemlogicallyandpracticallyexcluded,whatMarxdidnotexperienceordescribe.Thereareimportantconsequencesofthisstatificationbecausetheeconomymoreandmoreexclusivelyservesthecapitalistclass,thestatemoreandmorepredominantlytheproletariat.Consequently,thestateisthetool,withthehelpofwhichthehistoricaloverthrowfromcapitalismtosocialismwillbecarriedout.Butitisacrazyconceptiontothinkthattheconquestofpoliticalpowerbytheproletariatcanbecarriedoutthroughasuddenoverthrowofthe
system,throughapoliticalsurpriseattack.Thoseareconceptionsthathavebeensmuggledfromthepoliticalhistoryofthebourgeoisieintotheworldofsocialistideas.Thestatewill,rather,beconqueredstepbystepindailystruggles.Itstransformationiscarriedoutthroughthegradualsocialisationofalleconomicfunctions.Marxwasfarfrombeingcondemningand
classstrugglefromKarlKautsky,DersozialistischenKongresseunddersozialistischeMinister,NeueZeit,19(1),p.37[wholearticlepp.3644],whointurnquotedhisownletterinPetiteRepublique,28September1899.]
65 KarlRenner,Marxismus,KriegundInternationale,Dietz,Stuttgart,1918[1917].[Renner(18701950)wasaleadingsocialdemocraticparliamentarian andtheoreticianinAustriabeforeandduringWorldWar1.HewasthefirstchancelloroftheAustrianrepublicfrom1918until1920.]
[66 Renner,Marxismus,pp.612,70,90,97.]
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negatingthestate,fromstatenihilism,withwhichcontemporaryMarxismcoquettes.Throughthestatealleconomiccategoriesarefundamentallytransformed.Thecompetitivepriceoftheprivateeconomychangeintocartelprice,finallytariffpricedevelopsintonationalprice,whoseformandextentdiffersfromstatetostate,duringtheperiodofhighprotection
andundertheinfluenceofthestate.Itisonlyonestepfurthertostatelegislationdirectlyprescribingtheprice:taxpriceorpoliticalprice.Theeconomyisnotsufficienttoexplainsuchpricing,overalldeviationfromthenaturallawsoftheeconomyisdeterminedbytheprocessofstatification.Anextraeconomiclawimposeditselfoverthebasiceconomiclaw.AndthatisnowthenewproblemofMarxism,asthedeliberateallocationofgoods,thatistheexclusivemodeofcirculationofasocialistsociety,istodayalreadymergedintothesystemofautomaticcommoditycirculation.67
Whatcanbesaidofcommoditypricescanalsobesaidofthecategoryofwages.Thewagessystemisbeingfundamentallyreorganisedbythestate.Todaytheworkerswageisalreadycomprisedofanindividualandacollectivewage.Thestatesocialisesvariablecapital,i.e.capitalspentonwages,throughcompulsorycontributionsbyworkersandemployersfor
health,accidentandoldageinsurance,afterindividualsarepaid.Basically,thestatehasalreadylongdonethisthroughcertainpublicoutlays,e.g.publicschools,thatcontributetothemaintenanceandrenewaloftheworkingclass.Theworkingclass,consequently,alreadyreceivesapartofitswagescollectively.Thedevelopmentistowardsthecollectivisationofaneverlargerpartofwages.Toanincreasingextent,theworkerbecomesthesubjectandobjectofpublicinstitutions.Theprocessofsocialisationintegrateshimasanelementintothestate.68
ThisprocessofsocialisingtheworkerswagehasnotyetbeenanalysedbyMarxists.Butlargetransformationsoftheindividualcomponentsofthewagealsotakeplace.Theindividualwageisreplacedbythetradeunionwageandfinallybytheregulatedwage[Tariflohn]CHANGEABOVE.Theseinstitutions...transformtheworkerfromaserfintoaneconomiccitizen.The
leapfromthefreewagecontracttotheregulatedsystemisofthesamesignificanceasthatfrommanorialsubjectionandpatrimonialjusticetothebourgeoiscourt.Buttheregulatedwageisstillnotthehighestpointofdevelopment.Giantcapitalistenterprisesconstructserviceprogramsfortheirwhitecollaremployeesand,toanextent,theirworkers,withawagescalethatiscalculatedovertheirwholelives,includingtheirdeaths,inshort,formsofwagepaymentthatRennercallsthepragmaticwage.Fromthisitisonlyasteptothedirectsettingofwagesbythestate,toataxwage[Lohntaxe].Throughstatification,todaytheworkingclassesfindthemselvesinadifferentsocialsituationfromMarxsperiod.Ownershipbecomesapublicinstitution,workapublicjob.Aregroupingofclassestakesplace.Industrialismisnolongerthepredominantformofenrichmentincontemporarysociety.Thefactoryowneroftheoldkindisnolongercounterposedtotheproletariat.Ratherthe
dominantpowerswithinthecapitalistclasshavebecomeagrarianismandfinancecapital.Atransformationoftheeconomicfunctionoflandownershipoccurs.Whiletheprocessofstatificationandsocialisationisveryextensiveinagriculture,landownership,encompassedeconomicallyasgroundrent,hasbecomemoreandmoreparasitic.Thequestionofgroundrentwillbecometheprincipalsocialquestionoverthenextfiveyearsanddecades.69
Loancapitalhasalsoexperiencemassivetransformations.Loancapitaloftheoldkindwas
[67 Renner,Marxismus,pp.712.28,413.AccordingtoRenner,thetariffpricewasaconsequenceoftheinteractionofcartelsandprotectivetariffs.]
[68 Renner,Marxismus,pp.467.]
[69 Renner,Marxismus,pp.4755,61,645,67.]
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usury,amereparasiticeconomicfunction.Theusurerswere,however,displaced.Creditcapitalofthenewkindisnotparasiticandisgenerallyfelttobeablessing.70
ThepurposeofRennersarbitraryconstruction,whichcannotbefullitemisedhere,isthejustificationsproducedbytheconclusionstowhichhecomes:theworkingclasshastoaffirm
thecontemporarystateand,thoughthepolicyofchangingallianceswithindividualbourgeoisclasses,painstakingly,stepbystepworkitswayupandtakepoweroverbourgeoissocietyintellectually[geistig],positionitselfeverywhereonthebasisofthestateandbourgeoissociety.Suchanalliancepolicyisnotawateringdownofclassprinciplebutitsfulfilment.Astheproletariataffirmsthestateitmustalsoaffirmstatepolicy.Thereisnoamorphousinternationalitybutinternationalityisfirsttheresultoftheeffectofgroupsofnationstateswhichisspecificallynewinourperiod.Capitalisnotinternationalbutnational.Nationalcapitalorganisedbythestatehasbecometheeffectiveagentonthetribuneoftheworld.Marxscategoriesareuniversal,Marxistsstartwiththecategoryofthestatelessworldeconomybutforthetimebeingthisisstillnotasinglestate,forthetiebeingdevelopmenthasachievedthelevelofnationalpolitical,territorialstates.Hencethereisalsonoworld
proletariat,whichisonlyamysticalunit;inrealityonlynationalproletariatswithinstateterritoriesexist.Theworldeconomyisonlycomingintobeing,promotedbythetendencyofindividualstatestoextendtheireconomicterritories.Intermsofspecificstates,theexpansionisttendenciesappearascolonialpolicyandcolonialexploitation,dominationandservitude.ButthismoralisticstandpointliesdeepbelowMarxsmodeofthought,asbehindthesemundanecomplaintsaboutcolonialpolicyoneshouldnotoverlooktheseculargreatnessoftheeconomisationoftheworld.71
Inthiswaytobeanopponentofthecolonialsystemmeansbeinganopponentofworldhistory.Solongascapitalismpersistsintheeconomyandtheanarchisticantagonismofstatesinpolitics,warsareunavoidable,becausecompetitivestrugglesamongeconomicterritoriestakeplaceintwoways:peacefullythroughstatestradeagreementsandaggressivelythrough
conquest.Theimperialistwarshouldnotbejudgedethicallybutshouldbeassessedasafact,justliketradepolicy.Itisnothingotherthantheturningofpricecompetitionintoarmscompetition.Atmost,thereshouldbeeffortstocivilisewarandtheextensionoftheorganisationoftheworldintoapeacefulassociationofnations,throughinternationallaw.Solong,however,assuchafuture,supranationalorganisationoftheworldhasnotbeenachieved,warremainspossibleand,incertaincircumstances,necessary,becauseitconcernstheexistenceofastateanditseconomy.Astradeunionworksmethodsofstrugglerestonthebasisofthiscapitalistorder,itmustactpositivelyinthestruggle.Notradeuniondesiresthedestructionofindustry.Theexistence,continuationandfutureofthiscapitalalsoaffecttheworkingclasspositively.Inbellicoseperiodstheworkingclassstruggleswithandalsooverthatcontinuation.Oncethereiswar,theproletariatalsohastotakethepathofwar:thispath
isalsoapathofhistoryand,astheproletariatcannotabsenteeitselffromhistory,ithastotravelthispath.Fromthemomentoftheoutbreakofwar,ithasnootherpossibleattitudethanaffiliationwithitsownstate.Thestandoftheproletarianpartieson4August1914wasjustified.72
ObviouslyRennerstheoremscannotbereconciledwithproletariansocialism.Theyshouldberegardedasanattempttodiverttheproletariatfromitstasksasaclassandtobringitintoallegiancewiththeimperialistbourgeoisie.Withhisproducts,reformismsankfromthelevelof
[70 Renner,Marxismus,pp.823.]
[71 Renner,Marxismus,pp.63,6566,101,106,1123,123.]
[72 Renner,Marxismus,pp.28122,331,3601,3289,353.]
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socialcriticismtoapologeticsforbourgeoissociety.Itwasthereforeunavoidablethatreformism,havingcometopowerafterthewarandtheoutbreakofrevolutioninthedefeatedstates,wasincapableoffulfillingevenoneofthetasksposedbyproletariansocialism.
EclecticismandthetendencytoturnawayfromMarxismwascharacteristicofreformist
theoryduringthepostwarperiod.EmilLedererrestrictstheapplicabilityofMarxslabourtheoryofvalueintwoways.InhisOutlinesofeconomictheory,73herestrictsittotheterrainofcompetitivecapitalism.Heregardsitasinsufficienttoexplainmonopolyprices,andhencetriestoconstructafusionofthelabourtheoryofvaluewithmarginalutilitytheory.HeregardsMarxslabourtheoryofvalue,secondly,assuitedtotheexplanationonlyofstaticeconomicprocessesbutnotdynamicconjunctualcycles.74Lederersexplanationofcrisesisinessenceanunderconsumptionisttheoryonadetourthroughmonetarytheoriesofcrisis(extensionofthelabourprocessonlythroughadditionalcredit75withallitsattendantdeficiencies.
AlfredBraunthalsThecontemporaryeconomyanditslawsisintendedtobeasocialisteconomicstextbook,faithfultotheideaofMarxism.Actually,BraunthalcombatsMarxstheorywithargumentsborrowedfrombourgeoiscriticismofMarx:itprovidesnoinformation
aboutthelawsaccordingtowhichthesocialproduct,infact,isdividedintowagesandtheearningsofcapital.The(bourgeois)theoryofproductivityis,inthisrespect,withoutdoubtsuperiortoMarxisttheory.Herefersfurthertothesecureresultsofmarginalutilitytheory.HisaccountofthecontemporaryeconomyisisessentiallyasimplifiedcompilationofHilferdingsthoughtsabouttheprogressiveorganisationoftheeconomyandRennersideasaboutstatificationandtheeverstrongerinfluenceofthestatewhichisbeingproletarianised.Throughitsgrowingregulationoftheorganisationofthewholeeconomy,finallythroughcoldsocialisationi.e.throughtheencroachmentofthepubliceconomy,thefreeeconomywithitsmarketmechanismismoreandmoresuperseded.Forthisreason,Braunthalthinks,wearestandingatthestartofasocialrevolution,asocietywhichischangingfromcapitalismintosocialism.76
WiththetransitionintheleadershipoftheworldeconomyfromEuropetotheUnitedStatesofAmericaandimpressedbyAmericanprosperityaftertheWorldWar,aflushofuncriticaladmirationofAmericanmethodsoforganisationandwork(rationalisation)aroseinbourgeoisEurope.TheemulationofthesemethodsbyGermancapitalistsfoundthefullestapprovalamongtheproponentsoftradeuniontheoryandpractice.AtypicalproductofthiscurrentistheworkofthechairpersonoftheGermanWoodworkersAssociation,FritzTarnow,Whybepoor?Theoldeconomictheoriesaboutthesocialquestion,TarnowthinksoriginatedprimarilyinEngland...ThenewtheorieswillbeformedinAmerica.Americahasshowthatpovertyisnoeconomicnecessitybutasocialillness,whosecureability,evenwithintheframeworkofthecapitalisteconomy,isundoubted.Wages,asacostfactor,havedeclinedinsignificancebutasafactorinpurchasingpowertheyhavegainedimportance.
Increasingconsumptionand,aboveall,massconsumptionisthekeytothedevelopmentofproduction.Inviewoftheenormousdevelopmentoftheproductiveforces,fromnowonwasteisablessingandrestraintacurse.Notonlyislabourdependentoncapitalbutcapitalis
73 EmilLederer,GrundzgenderkonomischenTheorie,J.C.B.Mohr(P.Siebeck),Tbingen,1922.Lederer(18821938)wasasocialdemocraticprofessorofsociologyandeconomics.
74 EmilLederer,KonjunkturundKrisen,GrundriderSozialkonomie,IV,i,1925,J.C.B.Mohr(P.Siebeck),Tbingen,pp.pp.355413.
75 Lederer,KonjunkturundKrisen,p.387.
76 AlfredBraunthalWirtschaftderGegenwartundihreGesetze:EinsozialistischesLehrbuchder
Nationalkonomie,LaubscheVerlagsbuchhandlung,Berlin,1930,pp.623,241,???,???,???.[HarvardDepositoryEcon1435.2.5,Regularloan(depository)]
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alsodependentonthepurchasingpowerofworkerconsumers.Highwagesareinthewellunderstoodinterestsoftheemployersthemselves.Countrieswithhighwageshaveaccumulatedmoststronglyandcancompetemostsuccessfully.Americanemployersareadvancingalongthetrackofthisknowledgewhichisthebasisofthesecretofthecontinuing
boomintheUnitedStatesofAmerica.HenryFordsbook,Mylifeandworkiscertainlythemostrevolutionarytextofalleconomicliteraturetothepresent.77
Inaddition,thevarioussubspeciesandcurrentsofreformismastheyappearinindividualcountriesorinternationallyshouldalsobementionedbriefly.Firstmunicipalsocialism,whichisconcernedwithreformistactivityintheareaoflocalpoliticsamongstotherthings,alsotheefforttothemunicipalisewater,gasandelectricityservicesfortheurbanpopulationinthegeneraleconomicinterest,withoutreferencetotheirprivatesectorprofitability(seeHugoC,i.e.HugoLindemann,CityadministrationandmunicipalsocialisminEnglandandGermanycityadministration.78
AcurrentintheEnglishworkersmovementisknownasguildsocialism.Itaspirestothecontrolofproductionandthesupersessionofthewagessystemthroughtheorganisational
unificationofallmanualandintellectualworkers,notaccordingtoprofessionortradeuniongroups,butinassociations(guilds)ofwholeindustries.Itseekstoachievethisgoal,possiblythroughageneralstrike.Guildsocialismdiffersfromsyndicalismi