Excerpt from Work: Capitalism. Economic. Resistance.
Capitalism is Headed for Catastrophe (p. 335)
"However stable things may seem in some parts of the world, we’re entering a new era of crisis and uncertainty.
Capitalism has never been as pervasive as it is now. The previous generation experienced alienation, suffering from the dissonance between their roles in production and their sense of themselves; the current generation is characterized by identification with economic roles that are diffusing into every sphere of life. Yet at the moment of its triumph, capitalism is more precarious than ever.
All the peace treaties of the 20th century have expired. The higher wages Henry Ford offered his workers have vanished with the jobs themselves; unions have been flanked out by globalization; the socialist nations of the East have transitioned to free-market capitalism while the social democracies of the West are being dismantled. But those compromises weren’t just ways to avoid confrontation – they also served to perpetuate capitalism. Ford’s wage increases enabled his employees to buy products and keep the pyramid scheme expanding; unions prevented capitalists from impoverishing their consumer base. Now that the capitalists have abandoned their former means of co-optations and self-perpetuation, the future is up for grabs. The old alternatives have been discredited, but new revolutionary ideas are bound to come to the fore.
Capitalism is predicted on the endless accumulation of profit, but this profit has come to from somewhere. Once you bleed workers dry, the rate of profit falls, causing the market to stagnate. Until recently, it was possible and populations. Now capitalism has spread across the entire world, connecting everyone and rending and crisis truly global. At the same time, industrial production is reaching its ecological limits, while technological progress has rendered much of the workforce redundant, creating an increasingly restless surplus population.
Capitalism has been on the brink of crisis for decades now. Extending credit to a broader and broader range of the exploited has been a way of keeping up consumption while the workforce gets poorer. Investors have shifted their wealth into financial markets, hoping to profit on speculation now that profits from material production have plateaued. The vast majority of innovation has centered in new immaterial markets: information, branding, social networking. All this has only succeeded in delaying the day of reckoning.
The financial downturn of 2008 wasn’t a fluke, but a sign of things to come. It’s not simply a matter of waiting until things return to normal. The next phase of the crisis might not hit the US for years or decades, but it’s on its way. Already, the capitalist economy is barely able to offer people decent jobs, let along meaningful lives; even measured by its own materialistic criteria, it isn’t working.
Likewise, it’s not coincidence that you’re reading this book right now. Â
Insofar as the economy is the concrete manifestation of the values and hierarchies of our society, a financial crisis heralds a crisis of faith in the system itself. A new wave of unrest is bound to arise.
In periods of turmoil, people reevaluate their assumptions and values. Of course, we can’t be sure what the outcome will be; even if capitalism collapses, what comes next could be even worse. Right now it’s extremely important to set positive examples of what it means to resist and what the alternatives to capitalism might be. During social upheavals, people’s notion of what is possible can shift very quickly, but their notion of what is desirable usually changes more slowly. This explains why grassroots uprisings often settle for demands that are much less radical than the forms adopted by the uprisings themselves: it takes a long time for our imaginations to catch up with reality.
If it’s quiet right now where you live, that doesn’t mean it always will be. Think ahead to the upheavals on the horizon: when they arrive, what will you wish you had done to prepare? How can you maximize the likelihood that they will turn out for the bed?
We don’t offer the only road out of capitalism, but we believe ours is the most inviting one. We don’t propose corporate feudalism, ethnic warfare, or nuclear war. A few decades of pitched social conflict are nothing compared to the catastrophes that will ensue if we don’t take the initiative. Make no mistake; the world is going to change. It’s up to us whether it will change for better or worse.
We’re not peddling a utopia. We simply want to learn from the practices that worked to keep our species a healthy part of the economic system for the last million years, in hopes that we might survive at least a few thousand more. This humble aspiration places us in direct conflict with current social order."