There’s this irritating refrain we leftists hear from time to time, coming from those on the right side of the aisle, so to speak. Whenever critiques of capitalism are made, a response often heard from the right-wing libertarian crowd is that what is being criticized isn’t ‘real capitalism.’ Instead, the problems of the world (and of the US in particular) are being caused by ‘corporatism,’ or ‘crony capitalism.’ Only the ‘free market’ is ‘real capitalism.’
I have already debunked this nonsense in previous posts, on many occasions, so the reader can go to those if he or she is interested; I don’t wish to go through the annoyance of rehashing those arguments in detail here. The point is, as far as this post is concerned, that there is a huge difference between the ‘free market’ in theory and how it works out in practice.
Of course, the right-winger will retort by saying, ‘Well, what about communism and socialism, you hypocrite? Those ideas all sound good on paper, but when put into practice, one hundred million people were murdered by power-hungry dictators! Everybody knows that socialism has been a failure everywhere it’s been tried!’
Oh, sure. Do you know what else? Iraq really possessed WMDs, Gaddafi really oppressed his people and thus had to be removed, Assad really bombed, killed, and gassed his own people, Russia hacked the 2016 US election, and Iran‘s bellicosity must be stopped through an invasion.
Really, all of the above is true! I know because the mainstream media told me. They know the facts because the CIA, that paragon of truth-telling, has been enlightening the West ever since the days of the Cold War.
But seriously, all sarcasm aside, there are many leftists, many of them anarchists or other left-libertarians, who argue in a manner paralleling right-libertarians and their twaddle about ‘real capitalism,’ that the USSR, Maoist China, Ho Chi Minh‘s Vietnam, the DPRK, Cuba, and the Eastern Bloc did not, and still do not, practice ‘real communism,’ and for the same reason as that of the right-libertarians–that these Marxist-Leninist states were just that…states. (I used to think that way, too.)
The right-wing libertarians’ idealized abstraction, which they call “free market” capitalism, involves a belief that, without the corrupting influence of the state, capitalists will have a ‘level playing field’ allowing them to compete fairly. (As I’ve stated above, I have refuted these arguments elsewhere.) The idealized abstraction of the left-wing libertarians (or anarchists), on the other hand, involves a belief that a socialist revolution can be more or less immediately followed by full communism: no class distinctions, no centralized state authority, and money is replaced by a gift economy.
More moderately left-wing libertarians would allow for the temporary existence of a state, the dictatorship of the proletariat, which would wither away once all signs of capitalist counter-revolution have been thwarted. No classes, no state, no money.
I have tended towards this more moderate version, though I have in recent years grown even more patient than that. The reason for this need of patience is that thwarting counterrevolution is easier said than done: look at the lessons of the twentieth century to see my meaning.
Ultimately, the achievement of the goal, the idealized abstraction of communist society, should be understood as a process, a gradual flowing ever closer towards the ideal, rather than an immediately achieved utopian stasis.
The objection will still be raised: “But the socialists never achieved anything but tyranny and murder!” Now, I must give such readers a history lesson, free of bourgeois propaganda and lies. (Again, a full debunking of the whole communist death count thing is beyond the scope of this article, so click here for that. For the short explanation, here it is: blame Yezhov and famines, not Stalin or Mao. Furthermore, consider the capitalist death count.)
Remember what Russia was like before the revolution of late 1917. The tsar and capitalists were holding the industrial proletariat and peasants down under a feudalist and bourgeois boot. The provisional government following the abdication of Tsar Nicholas II improved things a bit, but the people were still stuck in an unpopular war the provisional government didn’t want to get out of. Lenin, however, got them out of it.
The USSR enshrined equal rights for women in their constitution early into its existence, allowing equal rights in education, employment, access to high-ranking positions in the government, and paid maternity leave. All of these rights had been established by the 1930s, light years ahead of such improvements in the capitalist West.
Improvements were made to aim at affordable housing for everyone. Granted, these homes weren’t exactly palatial, but so what? Even the worst quality homes were much better than the epidemic of homelessness seen today in such cities as San Francisco, Los Angeles, London, Dublin, or Toronto, often with people living in tents.
Full employment was provided, as well as free education up to the university level (sure beats student debt, doesn’t it?), and free healthcare. With such benefits as these, it’s easy to see why majorities of not only Russians, but also other east European countries look back at their socialist pasts with smiles, and generally tend to regret the switch back to capitalism.
Benefits similar to these given to citizens of the USSR were also given to people in all the other socialist states, benefits that already, and all by themselves, justify the left-wing revolutions that occurred, even without the withering away of the state that those in the libertarian camp (right and left) so fetishize. But what was so impressive about the USSR doesn’t stop there.
Returning to my point above about what Russia was like before the revolution of over a hundred years ago, the Bolsheviks inherited a largely agrarian society, with mostly peasant farmers living off the land, at the mercy of Mother Nature. If there were bad harvests (which often happened), people would starve.
The implementation of Stalin’s three Five Year Plans in the 1930s changed all that. Rapid industrialization (in large part to prepare for a Nazi invasion), collectivization of agriculture (to end the exploitive rule of the grain-hoarding, wealthy, land-owning kulaks), which included getting the mechanized farming equipment needed to end the famines (which, by the way, makes nonsense of the absurd Holodomor hoax), and the acquisition of nuclear weapons (in defence against the American nuclear threat) all brought Russia from being a backward nation to a modern nuclear superpower in a matter of not much more than two decades! Impressive.
Next, we need to remember who the real heroes of WWII were: not so much the late-arriving US and Britain, as mainstream history books would have you believe, but Stalin’s Red Army. Their commitment to justice is what saved the world from fascism, not the mere inter-imperialist conflict of Hitler and Mussolini on one side, and FDR and Churchill on the other.
Jump ahead almost two decades later, and we have even more impressive Soviet feats: the first man in space, the first woman in space, and even the first dog to orbit the Earth. Also, the Soviets did the first spacewalk. So, what is all this nonsense about socialism ‘not working‘? Actually, when you think about it, it makes a lot of sense to believe that when people cooperate, work together, and help each other, they will achieve a lot more than all those mutually alienated people competing with each other under capitalism.
This leads me to my next point: right-wing libertarians like to believe that an unregulated market–somehow, by the magical waving of an invisible hand–regulates itself and makes life good; and therefore a state-planned economy lacks the rich growth and innovation of the “free market.” Again, the USSR’s history debunks this claim.
As I said above, the Soviet Union went from being a backward agrarian society to a fully industrialized, nuclear superpower in a matter of a few decades. The Western capitalist countries went through this process much more slowly (i.e., starting from the Industrial Revolution). When the Soviet Union began industrializing around 1928, Western countries like the US and UK were already fully industrialized, so it isn’t fair to compare the USSR’s development to that of the USA. A comparison of the USSR to most of the rest of the non-Anglo-American, non-European world would be more apropos.
Over those few decades between the late 1920s and the early 1950s, the USSR shot ahead of the Third World. Though behind the West economically, the USSR was catching up. The West was feeling threatened, especially with the loss of face the US felt when the Soviets beat them into space. Indeed, the US took a few leaves from the Soviet book and started using more government-funded forms of technological innovation (e.g., NASA, DARPA) and social welfare–though in a capitalist context, of course–to save face and resist the threat of communist revolution in the West.
Economic growth was slowing down in the USSR during the Brezhnev years, but it was still happening. There were fears that, if left unchecked, the USSR would soon overtake the West economically. So by the 1980s, the Carter/Reagan administrations’ strategy was, through the arms race, the Soviet-Afghan War, etc., to drain the Soviet economy.
It worked. The USSR was forced into focusing its budget on the military when they’d have much preferred to continue building socialism. The USSR didn’t “collapse” in late 1991; it was dissolved, thanks to schemers inside and outside the Soviet Union.
Here’s the thing: if socialism ‘doesn’t work,’ why did the West (and why does it, vis-à-vis Cuba, Venezuela, and the DPRK, continue to) put so much effort into draining the socialist states of their lifeblood through economic sanctions, sabotage, etc.? Why not just be a little patient and let these ‘failed’ economic systems self-destruct of their own accord, over a presumably short time?
Despite the crippling sanctions and economic embargoes, the DPRK and Cuba are, within reason, still surviving…and that’s all the way from the wholesale destruction wrought by US imperialism during the Korean War, and from such things as the over six hundred attempts on Fidel Castro’s life, to the present. If the “free market” is so superior to state planning, how did China go from being a Third World country to the second largest economy in the world in a mere four decades?
So we see here that, even though the ideal of communist society–a classless, stateless society without money–was never attained, the progress made towards that ideal in the building of socialism is proof enough that it’s worth striving for. The practice of developing the socialist mode of production, and the benefits obtained, justify the effort even if the theoretical end wasn’t attained.
As for the failures and difficulties that inevitably were a part of this process, many, if not most, of these problems can be blamed on imperialism. The capitalist class has been ruthless in its attempts to thwart the development of socialism, right from the Paris Commune up to the present day. Such things as the Russian Civil War of 1917-1922, properly understood as an invasion by several capitalist countries to help the Russian bourgeoisie restore their rule, put pressures on Lenin’s government that forced the Bolsheviks to become authoritarian.
Similar pressures were exerted on Maoist China, the Eastern Bloc, and the other socialist states, necessitating authoritarian rule, the aggravation of class struggle under socialism. And who was–and still is–doing the pressuring? All those forces that regard the ‘freedom’ of capitalism as their ideal. If, according to right-libertarian thinking, the US isn’t–and has scarcely, if ever been–‘truly capitalist,’ then why were they so adamant about stopping the spread of communism during the Cold War?
Let’s now look at how the abstract ideal of the “free market,” though never perfectly attained, of course (because it never can be–even some right-wingers admit this!), has nonetheless been approached, step by step, in the process including tax cuts for the rich, union-busting, deregulation, and cuts to social programs and welfare.
The oil crisis of 1973 caused many at the time to believe that Keynesian economics–a form of capitalism with intensive government interventions whenever there were economic crises–had run its course. Economists like Milton Friedman argued for minimal state involvement in the economy, as had Friedrich Hayek, Ludwig von Mises, etc. Pinochet‘s government, which in 1973 forced “free market” capitalism on Chile, by the way, was portrayed in right-wing media as having brought about prosperity for the country, when in fact only the ruling class was doing well.
This kind of ‘prosperity’ encouraged the market fundamentalists to apply their dogmas to Western countries, in which the ruling classes were growing weary of paying high taxes and having regulations limit their profits. The stage was set for Reagan, Thatcher, et al, who busted unions and cut taxes for the rich. The process of gradually moving towards a “free market” had begun.
Reagan, of course, claimed ‘government is the problem,’ though even more obviously he did not shrink it. He deregulated and cut the rich’s taxes, to be sure, but his increase of defence spending only bloated the US government. This bloating, all the same, doesn’t disprove the existence of capitalism in the US, for this was the bloating of the bourgeois state. Note that in capitalism, there is deregulating and re-regulating, depending on the convenience of the capitalist. (And incidentally, in the US, there is private property; in the US, businesses produce commodities for profit; ergo, the US is a capitalist country…even if it isn’t the kind of capitalism the right-libertarians prefer.)
Right-wing libertarians have this absurd notion that the state per se is socialist, when in fact the state has been used by people of all political persuasions to further their agendas: fascists, “free market” capitalists (yes, them too!), social democrats, conservatives, liberals, and actual socialists.
Americans have been so indoctrinated by bourgeois propaganda that they think that all of the Orwellian things we’ve seen plaguing the US (the media as propaganda arm of the government, the state helping the rich get richer and leaving the poor to get poorer, the endless wars, the militarized police, surveillance, etc.) is the result of “communists” infiltrating the US. Oh, would that it were true!
What right-wing libertarians don’t understand is that capitalism is not the utopia they think it is. It’s an inherently contradictory, unstable economic system, given to financial crises about every ten years (indeed, we’re due for another one any time now, I contemplate with a due sense of exhaustion and dread).
Though the USSR’s economy stagnated during the Brezhnev years, their economy had soldiered on through the 1930s, just as the capitalist world was mired in the Great Depression. Similarly, as we in the West reeled for years after the 2008 global financial crisis, only ever so slowly crawling out of it, China–with its state-planned economy–bounced back and has continued to grow into the powerhouse it is today.
In sum: the ideological theory of socialism was meant to lead to a communist society that never materialized; still, in practice, the building of socialism in the twentieth century had successes that, outside imperialist interference, outweighed its problems, and therefore, socialism in practice was justified.
As for the ideological theory of the “free market,” that stateless capitalist utopia has never been, and will never be; while in practice, what is properly called neoliberalism has very much happened, and the appalling income inequality, imperialist wars, and all the other attendant miseries have shown how bankrupt that right-wing ideology is.
So, the left’s solution to current problems is, “More socialism!”, which, if carried far enough, might one day actually lead to the withering away of the state. Their ‘solution,’ on the other hand, is, “More free market!”, which will, if carried far enough, lead to the withering away of our Earth as we know it.
I wonder if it’s ever occurred to the free marketeers that their invisible hand isn’t seen because it isn’t there.