Professional Documents
Culture Documents
Summer 2014
Briefs
Flag Burning
The NACT regime tries to cover NZs naked neocolonial dependence on the US and China with a
new flag. Key says NZ is not dependent on the UK
or Australia. His ideal solution is a black flag with
a silver fern to state NZs national sovereignty.
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red flag of international socialism. Only then will
our flags represent socialist republics as part of
the socialist united states of the world.
Chinas Win-Win?
Xi Jinpings 2-day stopover in NZ was a success. It
sealed a strategic partnership upgrading the
2008 FTA (Free Trade Agreement) with China to
match Australias recent FTA. Its all about NZ as
supplier of cheap food plus high tech inputs into
Chinas rampaging economy.
This upgraded FTA access will be exploited by the
US when it succeeds in forcing NZ to sign up to the
TPPA (Trans Pacific Partnership Agreement). US
investors will have open access to grab control of
strategic NZ IP assets and piggy back into China on
the basis of the win-win partnership. So NZ is no
more than a stalking horse for US entry into China.
The US
has
made
clear
from
the
outset
that it
must
compete with China by penetrating its domestic
economy. China developed rapidly by welcoming
Western FDI but on its own terms. To date the US,
Japan and EU have been only able to buy into
China as joint ventures. The profits from these
ventures have not been enough to rescue the US,
Japan and EU countries from economic stagnation.
China has been able to quarantine its powerful
value producing economy from a Western
takeover.
The rivalry between the TPPA and the APFTA
(Asia-Pacific Free Trade Area) is really about
getting access to more value produced in China.
China used APEC to promote the APFTA while the
TPPA was stalled over US and Japan Agricultural
trade protection. That is the meaning of the
symbolic bi-lateral deal between Xi Jinping and
Obama signed at APEC over climate change and
mutual exchanges designed to divert attention
from great-power rivalry.
Despite its setback, the US strategy is to open up
China to FDI access on the same terms as the
TPPA. That is, US corporations dictating the terms
and not China. So the next move by the US-led
bloc is to increase ownership of Chinas high tech
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nationalism from the mid 30s to 1980s, to the
open, deregulated re-colonised semi-colonial neoliberal Super City of today.
What distinguishes the Super City from its earlier
forms is SkyCity.com. The Super City concentrates
city government in one big bureaucracy to rule
over the people on behalf of Sky City the high
point of Casino capitalism. Auckland gambles its
future on the ponzi schemes of property, banking
and the stock market parasitic on the production
of value.
A liveable Auckland?
Much hot air has been generated by the promoters
of Auckland City as a liveable global city. But hot
air cannot disguise the reality that the working
class has always paid for the city which exists only
to serve the interests of the capitalist class.
Liveable ultimately means living standards. The
truth is that its population only lives in the city
to exploit or be exploited.
Fred Engels wrote about how capitalist cities
worked nearly two centuries ago. Industry is
concentrated along with finance and services in
urban areas to maximise profits. Workers are
housed in the cheapest housing, transported the
shortest distances, and worked for the longest
hours under the most exploitative conditions to
serve profits. Everything else is bullshit.
Democratic reforms, local body elections, City
visions, public consultation on planning, etc are
a cheap veneer pasted over the bottom line which
is accumulating profits. They are no more than the
pretence that urban living is has more human
value than that of labour creating value for
capitalists. Even leisure activities in parks,
playgrounds and beaches and art galleries, are no
more than the replenishment of workers physical
and mental capacity to produce profits. Auckland
is no exception.
From its founding by British settlers in the 1840s
Auckland was constructed around the port, cheap
housing for workers in the valleys and colonial
mansions for the rich on the hills, and essential
transportation between home and work. Later as
NZ capitalism developed, Auckland reflected these
changes and went through several distinct stages,
as the national economy went from a colony in the
19th century, through the period of economic
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government of complicity with organised crime
and the criminalisation of protest. Its demands
are to restore the Mexican state to its progressive
role in developing the national interest and
breaking with imperialism. All that is required is
the ousting of Mexicos president, Enrique Pea
Nieto, and its replacement by a populist regime
along the lines of the Bolivarian states. We say
that this position sows illusions in the Mexican
bourgeois state can play a
progressive role in
completing the national
revolution.
Unless capitalism is
understood as a class
struggle between capital
and labour we cant see
labours historic role as
the gravedigger of
capitalism. The
economic crisis of capital caused by the TRPF
opens up the world historic opportunity for the
proletariat to expropriate capital and socialise
production.
Mexican 43 Uprising
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arms of the Arab petty bourgeoisie that are trying
to create a new state based on the Islamic
Caliphate. Both imperialist blocs and their allies in
the MENA are against this enemy that has arisen
out of their failed policies to defend their spheres
of influence.
War and Revolution
In this situation revolutionary Marxists oppose all
imperialist wars, invasions and occupations,
including those against the Islamic Caliphate which
is a bourgeois proto-state that must align itself
with one or other imperialist bloc. The Caliphate
as a theocratic state is
no better or worse than
Israel or Saudi Arabia.
War between
imperialism and the
Caliphate is a process
of negotiation over the
fate of the Arab
masses.
How does the US and
China/Russia decide
which bourgeois faction
should rule the masses
on their behalf in
Egypt, Syria, Libya, Palestine, Iraq? Not by any
hypocritical humanitarian criteria but by their
ruthless efficiency in suppressing the masses.
Only the Arab masses rallying and organising
workers and oppressed as an international
revolutionary force can defeat both imperialism
and their secular and theocratic national
bourgeois dictatorships!
To support the Arab revolution, NZ workers
must oppose our lackey regimes alignment with
both imperialist blocs, and all military
intervention into their proxy wars in MENA,
specifically against IS. We must oppose the
designation of anti-imperialist fighters as
terrorist, and defend the right of NZ citizens to
travel overseas to fight wars they consider just.
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Left outside
Already leftists Bomber and Minto have writtenoff Labour as, yet again, National Lite. This sort of
resigned pessimism is what happens when you try
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Summer 2014
towards zero hour contracts to join the
unemployed. As this common consciousness
develops the Labour Party will be pulled left and
split along the class line to break away to form a
new mass left party of the working people.
These new mass working class political formations
do not yet represent a fundamental break with
capitalism. But their programs for popular
democracy, mass activism, social equality,
internationalism, etc are impossible for global
capitalism to meet. They will become the basis for
a mass radicalization which takes the class war out
of the talk show of parliament to contest power on
the streets. Now is surely the time for historical
optimism as capitalism reveals itself as a threat to
human survival, and the growing mass movements
for change emerge on the streets. Meanwhile
revolutionaries have to do whatever they can to
speed up this split and the formation of a mass
workers party and program.
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G20 PR exercise
Never mind the missile flexing at the G20 and the
isolation of Putin the Terrible. This is PR for the
plebs. This is desperation to ramp up support for
the US bloc to counter the Russia China bloc
expanding into the EU and Middle East. NATO is
being used to bloc Russia China from Europe and
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Summer 2014
keep barking, the China-Russia pan-Eurasian caravan
will keep going, going, going - further on down the
(multipolar) road.
Escobar describes a scenario of the rise of ChinaRussia, the decline of the US-EU as Germany aligns
with the Eurasian Bloc. We differ with Escobar in
his view of Russia-China as that of a multi-polar
force that introduces order in the US Empire of
chaos.
As we argue in BRICS around the neck of the
Proletariat the Empire of Chaos is not US
imperialism but the laws of motion of capitalist
imperialism in its terminal crisis. Russia and China
cannot resolve capitalisms terminal crisis and
prevent a third world war between the two rival
blocs. We can only overcome capitalist chaos
but overthrowing capitalism itself and imposing a
new socialist world order.
Revolutionary Politics
The consequences of APEC and G20 for the Asia
Pacific nations are clear. They are squeezed
between the two major imperialist blocs. NZ for
example, is now largely dependent on China
economically. The APEC endorsement of the
FTTAP led by China will tighten those links of
dependency because the Chinese economy, while
slowing down, is still expanding at 7% and
dominates the Asia Pacific economy.
The US is attempting desperately to rush through
the TPPA to shore up its economic power in the
region by locking its allies into US economic,
political and military deals to limit Chinas
expansion. This can only create huge tension in
the ruling elites pulled between the two blocs.
China will win this contest in the long run because
its rapidly developing productive capacity creates
real economic wealth, while the US strategy of
legally monopolising assets, technology and IP
backed by military force, is already being
overtaken and challenged by China and Russia.
The labour movement in the Asian Pacific states
must refuse to be drawn into the interimperialist rivalry that leads to economic and
military wars. The revolutionary left in Australia
and NZ must seek allies in the Chinese and US
working classes, along with those of the rest of
Asia and Latin America, behind an
internationalist strategy of socialist revolution
that overthrows their capitalist ruling classes
and puts in place Workers Governments and a
Federation of Socialist Republics of the Asia
Pacific!
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return for a cut in the profits for the new black
bourgeoisie. The bourgeoisie trickles down some
of its profits to buy the bureaucratic leadership of
COSATU as part of the popular front to strangle
any independent workers movement from breaking
with the regime. Marikana expressed the objective
reality of poverty in radicalising the subjective
consciousness of the miners. It is this radicalising
of the union base that has forced the NUMSA
leadership to split with the ANC and its Stalinist
SACP bedfellows to suppress this class
contradiction. The result is the big fight inside
COSATU where the mass membership is moving to
break with the Freedom Charter against the
resistance of the bureaucratic leadership that is
still defending it as the program of the black
bourgeoisie.
In the words of Nelson Mandela:
The Charter is by no means a blueprint for a
socialist state...The Charter does not contemplate
such profound economic and political changes. Its
declaration The people shall govern! visualizes
the transfer of power not to any single social class
but to all the people of the country be they
workers, peasants, professional men or pettybourgeoisie... For the first time in the history of
the country the Non-European bourgeoisie will
have the opportunity to own in their own name
and right mills and factories, and trade and
private enterprise will boom and flourish as never
before.
To activate this change in workers consciousness
to the point of a break from both the bureaucracy
and the bourgeois regime revolutionaries must
raise the Transitional Program in the unions.
Replacing the corrupt union bureaucracy with a
new leadership accountable to the ranks would
prove wrong Socialist Projects claim that trade
unions cannot represent the majority of workers
because they are irrevocably compromised by
their links to the bourgeois state.
Like the Marikana strike it would prove that
corrupted unions like NUM can be replaced by rank
and file struggle unions such as the AMCU and that
their isolation, as in the recent Platinum strike,
can be overcome by a united front of all
unionised and non-unionised, domestic and unpaid
workers preparing for a general strike.
Finally, it would coordinate all united front
actions under the leadership of a mass workers
party in which revolutionaries would fight for the
adoption of a transitional Workers Charter, for
working
class
power
and
a
Workers
Government, as part of an international struggle
of the working masses of the whole of Southern
Africa for a Federation of Socialist Republics!
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USA:
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The pacifists have led you into blind alleys and
into T streets for the police to ambush you, while
politically disarming the masses with impotent
attempts to reform the police. We will
remember the advice of Malcolm X who said
Well be non-violent with those who are nonviolent with us. Until such time as racists fear for
their lives and well-being, they will feel entitled
to act out their perceived white-skin privilege with
deadly force and none of the behaviour of the
bourgeois state will give them any reason to
believe otherwise.
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Piketty vs Marx
The publication of Pikettys book Capital in the 21st Century, on the historic inequality of
capitalism, has sparked a debate globally, and in NZ with the publication of The Piketty
Phenomenon: NZ Perspectives. We have commented that Piketty fails to understand the basic
cause of capitalist inequality so that his wealth tax cannot be the solution. The OECD Report on
Inequality goes further than Piketty to show that income inequality has a negative impact on
economic growth. It argues that income must be redistributed to increase labour productivity.
We explain that this solution means further increasing the exploitation of labour by capital. It
will fail because capital in the 21st century has outlived its capacity to meet the needs of
humanity so that humanity will refuse to be super-exploited. What is needed is Socialism in the
21st Century!
Marxist critique
Piketty is really lost without Marx. He lumps real
productive capital (that produces value) together
with unproductive assets (that dont produce
value) to make up his Pikapital. He discovers
booms periods when the wealthy accumulate much
more rapidly, then busts when they lose much of
their wealth. Had he bothered to read Das Kapital,
he would have realised that the switchback rides
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of the wealthy is a symptom of the inbuilt
tendency for capitalist crises.
This is a telling gap in Pikettys economics. The
underlying reality he ignores is the exploitative
relation between capital and labour where wage
labour is employed to produce more value than it
needs to reproduce itself; that is, surplus value
the source of profit. This is capitalist inequality
at the level of productive relations. Crises arise
when profits begin to fall when the amount of
surplus value is insufficient to cover total capital
investment. As the tendency for the Rate of Profit
to Fall (TRPF) kicks in capital in plant and
machines and wages must be destroyed, and
cheaper means of production employed, so that
the amount of surplus value is now sufficient to
return a profit on total capital outlaid. The
destruction of wealth of Pikettys wealthy class
then, is merely a symptom of capitalisms crises of
falling profits.
As Marx explains this relation of production
appears in the marketplace as a relation of
exchange as capitalists buy their labour power as
a commodity. Marx calls this commodity
fetishism. Exploitation of surplus value arising out
of production is perceived to be based on unequal
exchange in the market. Crises then occur when
labour demands the full price of labour and profits
fall. Or, capital demands low wages, so
consumption falls; in both cases investment stalls.
Neo-liberal economics in the thrall of commodity
fetishism argues that the market will
automatically correct for the share of wages and
profits so that demand rises and production
results. The crises, wars and depressions that
Piketty stumbles over are such corrections. Yet
as Keynes recognised in the 1920s, these painful
corrections might be avoided if wages were
boosted by the state to create sufficient demand
that would then be supplied by thankful
capitalists. Oh for a world with no more slumps!
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Marxist Revolution in thought and deed
The detail that is overlooked here is that greater
labour productivity creates more inequality not
less. Not the superficial market inequality
measured by the national Gini Index, but the
concentration of capital in fewer and fewer hands,
and the accumulation of poverty and misery in the
lives of the masses of workers. Raising the rate of
exploitation means workers produce more per
hour (because of HCA) but get a lesser share of the
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Defend Marxism
While the economic conditions for socialism exist
today, standing between the working class and
socialism are political, social and cultural barriers.
They are the capitalist state and bourgeois ideology and
its agents. These agents claim that Marxism is dead and
capitalism need not be exploitative. We say that
Marxism is a living science that explains both
capitalisms continued exploitation and its attempts to
hide class exploitation behind the appearance of
Class Struggle is the bi-Monthly paper of the Communist Workers Group of New Zealand/Aotearoa, in a
Liaison Committee of Communists with Communist Workers Group (USA) and Revolutionary
Workers Group (Zimbabwe)
Class Struggle and most articles are online at http://redrave.blogspot.com
Phone +64 0272800080
Email cwg2007@hotmail.com
Archive of publications before 2006 http://communistworker.blogspot.com/
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