State Capitalism: Understanding Its Forms, Characteristics, and Economic Implications - Pr, Schemi e mappe concettuali di Filosofia Politica

Scarica State Capitalism: Understanding Its Forms, Characteristics, and Economic Implications - Pr e più Schemi e mappe concettuali in PDF di Filosofia Politica solo su Docsity! State of capitalism: Its possibilities and Limitations by Friederich Pollock Introduction Our aim is to synthesize conflicting viewpoints into a coherent summary, serving as a basis for discussing the feasibility of state capitalism. Europe's social and economic changes since World War I are transitioning from private to state capitalism. While acknowledging that totalitarian state capitalism is one potential outcome, it's easier to conceptualize than democratic state capitalism, as exemplified by National Socialist Germany. The totalitarian state capitalism poses a serious threat to Western civilization's values. To preserve these values we need to stay vigilant, comprehending the potential and limitations of aggressors and its resistance. We need to demonstrate how democratic values can be upheld amidst evolving circumstances. If our assumption of the end of the private capitalism era is accurate, totalitarianism could emerge as a trailblazer, necessitating vigilance and energy to prevent its advancement. The concept “State Capitalism” The term has been used in various ways, such as "state-organized private- property monopoly capitalism" or "economy of force", but it can be misleading as it may imply a society where the state has complete control over all capital, which is not necessarily the intended meaning by those who use it. There are two main varieties of state capitalism: totalitarian and democratic. These forms differ from private capitalism in several key aspects (the term State Capitalism indicates better those differences): 1. Role of the Market: in both states the market loses its controlling function in coordinating production and distribution. Governmental interference reaches such a degree that market freedoms are practically abolished, and economic laws become subordinate to state directives. 2. State Controls: Controls over the economy are vested in the state, which employs a mix of old and new methods, including pseudo-market mechanisms, to regulate production and coordinate consumption. Full employment of resources is often cited as a major achievement, but this expansion of state activity transcends traditional limits. 3. Ruling Group: in totalitarian state capitalism the state serves a new ruling group (industry leaders, business managers, high-ranking political figures, and party bureaucracies). In democratic state capitalism, the state is controlled by the people, institutions prevent bureaucratic power from becoming totalitarian. The Heritage of the Market System We attribute the trend growing inadequacy of the market economy of to a combination of factors, including the emergence of private monopolies and increased government intervention. The concentration of economic activity in large enterprises has led to rigid pricing, financial self-sufficiency, and growing governance control over the credit and trade systems. These developments, alongside the quasi-monopoly positions of trade unions and the resulting labor market rigidity, signify a decline in the efficacy of the market system. There were similar trends manifested in the United States, particularly since the disruptions caused by the First World War. There are disturbances in the market mechanism, exacerbated by technological revolutions in farming, have further compounded the challenges facing the market system. The dislocation of the world market, coupled with a decline in export channels that previously mitigated market difficulties, has added to the complexity of the situation. In response to these challenges, we suggests that efforts are being made to address the problem of achieving full employment while simultaneously freeing the market system from restrictive forces. However without substantial reorganization, the social structure may face complete disintegration. This reorganization may occur incrementally through a series of stop-gap measures, often contradictory and against the original intentions of their authors. It is proposed to construct of an integrated model for the new organizational system, emphasizing the necessity of fulfilling certain functions related to the division of labor. These functions include coordinating needs and resources, directing production, and distributing the social product. We can identify the shortcomings of the market system in performing these necessary functions, such as the inefficiencies of the price mechanism and the disruptive nature of business cycles. A New set of Rules 1. Introduction of Planning: Planning in state capitalism marks a departure from the decentralized decision- making of the market system. Planning involves setting targets and coordinating economic activities to achieve specific goals like economic growth and social welfare. It necessitates a balance between centralized control and flexibility, often involving a combination of top-down directives and decentralized decision-making. Planning authorities face challenges such as forecasting future demand, efficient resource allocation, and balancing competing priorities, requiring expertise in economics, logistics, and social policy. 2. Administration of Prices: In state capitalism, the administration of prices is aimed at aligning market outcomes with the goals of the overall economic plan. Government authorities set or influence prices to reflect social priorities such as income distribution, employment, and resource conservation. Unlike in a market economy where prices fluctuate based on supply and demand, administered prices in state capitalism are often fixed or regulated to prevent inflation and ensure affordability of essential goods while promoting social equity. However, price administration can pose challenges such as inefficiency, distortion of market signals, and the need for effective enforcement mechanisms to prevent black markets or price manipulation. 3. Subordination of Profit Interests: In state capitalism, profit interests are secondary to the broader goals of the state or ruling authorities. This may involve regulations, taxation, or direct particularly during periods of war or other emergencies. Contrary to this belief, the text argues that state capitalism possesses the capacity to efficiently allocate resources even during peacetime, thereby challenging the traditional view of its efficacy solely in scarcity economies. Furthermore, the text refutes common arguments levied against the economic viability of state capitalism. It contends that modern planning methodologies have advanced to a point where they can effectively address challenges related to production, distribution, and resource allocation. These planning techniques are deemed capable of accommodating consumer demands, integrating technological advancements, and considering various costs such as those associated with public health, personal risks, and unemployment, which were often overlooked in private enterprise models. Addressing concerns about potential stagnation or regression in technological progress under state capitalism, the text presents a counterargument. Competitive pressures and the imperative of maintaining military superiority would likely incentivize continued investment and innovation, thereby preventing any stagnation in technological advancement. Lastly while there are limitations inherent in state capitalism, they are derived from both natural conditions and the societal structure it aims to perpetuate. However, it asserts that state capitalism, with its centralized planning mechanisms, effectively eliminates traditional economic problems, transforming economic challenges into mere administrative tasks. This assertion challenges conventional economic theories and underscores the potential of state capitalism as a viable economic system. Natural and Other Non-Economic Limitations (1) Resource Allocation and Industrial Development: The text highlights the critical importance of resource availability, including raw materials, machinery, and skilled labor, for the functioning of state capitalism. Inadequacies in resource supply can lead to inefficiencies and waste, as seen in historical examples such as Nazi Germany and the Soviet Union. The transition from an agrarian to an industrialized economy requires significant investment and planning to address shortages and build the necessary infrastructure. (2) Intra-Governmental Dynamics and Decision-Making: Conflicting interests within the ruling class can complicate decision-making processes and hinder the formulation of coherent economic policies. Internal power struggles and differing agendas may result in suboptimal compromises and delays in implementing effective economic strategies. (3) Challenges in Economic Planning and Goal Setting: Establishing clear goals and objectives for economic planning is essential but can be challenging in the presence of competing interests and divergent viewpoints. Without consensus on overarching priorities, the formulation of a comprehensive national economic plan becomes difficult, leading to potential inefficiencies and missed opportunities. (4) Political Interference and Economic Productivity: Totalitarian regimes may prioritize political interests over economic rationality, leading to interventions that distort resource allocation and hinder productivity. The suppression of dissent and control over the standard of living may be strategic decisions by ruling minorities to maintain power and stability, even at the expense of economic growth. Balancing military expenditure, ideological control, and economic development becomes a delicate task for totalitarian states, with implications for societal stability and long-term sustainability. (5) Global Implications and the Future of State Capitalism: The text prompts consideration of how state capitalism may evolve in a global context, especially concerning inter-state relations and the balance of power. Questions arise about the compatibility of state capitalism with democratic principles and the potential for conflict between different economic systems. Speculation on the long-term viability of totalitarian state capitalism raises concerns about its adaptability in a changing world order and its ability to sustain economic growth without external threats. Control of the State under State capitalism Ruling Class Dynamics: Within the ruling class of a totalitarian state capitalist system, there exists a complex interplay of interests and power dynamics. While certain factions may vie for influence, the overarching goal of preserving the status quo often supersedes internal conflicts. This dynamic equilibrium ensures the continuity of the ruling class's dominance over economic and political affairs. Transition of Traditional Capitalists: The mechanisms through which heavy taxation, market control, and societal disdain marginalize this class, ultimately rendering them obsolete in the new socio-economic order. Erosion of Middle and Small Businesses: is the process by which independent small and medium-sized businesses (as free professions) succumb to the centralization and government control is examined in detail. Factors such as economic concentration and regulatory measures contribute to the absorption of these entities into larger, state-managed structures. Implications for Labor: The light of the working class under state capitalism is elucidated, highlighting the erosion of labor rights and the imposition of strict governmental control. The text explores how labor becomes commodified and subjected to authoritarian directives, reminiscent of feudal labor relations. Role of the State: A nuanced analysis of the state's evolving role as the omnipotent institution under state capitalism is provided. The mechanisms through which the state consolidates power, utilizing both coercion and ideological manipulation to maintain social order and quell dissent. Furthermore, the text delves into the complexities of democratic state capitalism, probing the challenges of balancing economic planning with individual freedoms. It underscores the imperative of democratic oversight and accountability to mitigate the risks of bureaucratic overreach and authoritarianism. Additionally, it calls for robust theoretical frameworks and practical strategies to navigate the transition towards democratic state capitalism while safeguarding fundamental democratic principles and values. Lezione X: 08/04/2024 Studies in Philosophy and Social sciences (1942 last year of life of this journal) Its importance: its an economic text, Pollock was the leading figure of this discipline research (I. Social philosophy, II. Social psicology, III. Psycoanalysis, IV. Analisis of culture are the areas with leading figure (I. Horkheimer and Marcuse, 2 Pollock, 3- Fromm, 4-Adorno) Among those Horkheimer followed Pollock interpretation of Nazi’s regime (as state capitalism) that will push him (at the beginning sceptical) and Adorno that will move away from orthodoxies Marxism and Marxism in general. This detachment is motivated by Pollock’s thesis will reflect a new phase (the third) of the Frankfort school as the critic of instrumental reason. The core thesis of this interpretation: in the Nazi’s regime, there was a primacy of the political domination over an economical one, so the end of capitalism market having as consequence the political content as content for political theory. Account for the new totalitarian state, new structure of domination and relationships between new elite and masses of subalterns. This domination it is made by technology and generalised by an instrumental reason (and not a way of thinking), also Auschwitz was showing the paradox of the extreme form of barbarism and violence and at the same time the application of technology, and scientific progress. The two last scholars were political theorist were marginalised by the work of the institute. Machinery can:  To give competition  give to capitalist a way to reduce the human labor, reducing the strata of ppl blow me (salary, bad conditions, rights) BUT in the long run the will decrease rate of profit. Grossman think there is still a contradiction in capitalism so he claimed that in the first period in WW1 this society tends to economic crisis, the evidence for that is the Market’s crash in 1939. Germany suffered a lot this crisis, after the leaders of the school didn’t subscribe to Grossman idea. Pollock thesis: following the crisis of 1929 and to the raise of Nazism, there is a new state of Capitalism. There is possible to imagine a democratic form of capitalism but for this imagination the historical experience gives us few democratic references. The idea of state capitalism its valid but in this historical period there are very few examples that can give the idea that is possible. This model state capitalism finds into Nazis’s. There are still contradictions and tensions in this economy those are the limitations of its future developments: reject some thesis developed in Marxism where in state capitalism abolished if competition or a technological regression. For a state capitalism increasing productions works in particular until it develop the military production (“arms-raised”, until it that’s it there’s no progress). The dominant group should come to conflict of interest with the military (weapons efficiency), develop contradiction. This state, has tendency to aggression to other forces/powers, generates contradiction with them.