Adorno on Late Capitalism Totalitarianism and the Welfare State

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Adorno on Late Capitalism Totalitarianism and the Welfare State Adorno on late capitalism Totalitarianism and the welfare state Deborah Cook In his appraisal of mass societies, Theodor W. Adorno shall assess Adornoʼs position in light of contemporary briefly discussed those changes in Western economies criticisms that have been levelled against his work. that had helped to transform the earlier liberal phase This evaluation of Adornoʼs work is not only necessary of ʻfree marketʼ capitalism at the turn of the twen- to correct the secondary literature; it will also provide tieth century. Responding in part to these changes, the opportunity to flesh out Adornoʼs ideas about governments legislated into existence social welfare the relationship between the state and the economy institutions and agencies that quickly became more – ideas which, though sketchy, nonetheless implicitly or less permanent fixtures in their liberal democratic occupied an important place in his work as a whole. states. Even as he recognized that the welfare state In addition, these ideas may help to reframe histori- had alleviated some of the inequities caused by capi- cal and theoretical considerations about the role that talism, Adorno was also concerned about the loss of democratic political systems have played, and might individual autonomy and spontaneity that seemed to yet play, in capitalist economies. accompany its emergence. He was very critical of the increasingly oppressive extension of bureaucratic Pollock and Neumann on the Third Reich state agencies into the private lives of individuals, During the 1930s and 1940s, Pollock tried to account warning that state control might reach totalitarian for what was being viewed as a new development proportions, even in purportedly democratic countries. within the capitalist economies of the West. With Observing that individuals were growing more and the command economy of the Third Reich, and the more dependent on the state as its powers increased, mixed economy of the United States (represented by and noting their often servile deference to the rule of the New Deal), a qualitative shift had taken place such ʻexpertsʼ and technocrats, Adorno feared that individu- that the earlier liberal phase of capitalism had been als would relinquish the independence which serves as superseded by either totalitarian or non-totalitarian a necessary condition for resistance to repression and (formal democratic) variants of state capitalism. Prod- economic exploitation. uction and distribution in the economies of these and A number of commentators have misleadingly other countries were increasingly being taken under maintained that Adorno viewed the welfare state as direct political or state control. Acknowledging that a variant of what an associate and co-worker at the industrial and business managers continue to play an Institute for Social Research was calling ʻstate capi- important role in the newer phase, Pollock nonetheless talismʼ. Simply put, with his state capitalism thesis, maintained that the profit motive had been supplanted Friedrich Pollock alleged that the command and mixed by the power motive in command or mixed economies. economies of the 1920s and 1930s marked the ʻtransi- Of course, profits still accrue to producers under state tion from a predominantly economic to an essentially capitalism, but they can now often be made only when political eraʼ.1 Initially, this state capitalism thesis will goods are produced in accordance with the ʻgeneral be contrasted with Adornoʼs own view of twentieth- planʼ of a state or political party. Pollock further century liberal democracies. Later in the article, I believed that by establishing wage and price controls, 16 Radical Philosophy 89 (May/June 1998) the state also succeeded in controlling distribution economicsʼ.5 On Neumannʼs assessment, the National either through direct allocation to consumers or via a Socialist economy had two general characteristics: ʻpseudo-marketʼ that served to regulate consumption. it was ʻa monopolistic economy – and a command Pollock recognized that his thesis was not new; economyʼ, a conjunction for which Neumann coined a number of writers had already studied the ways the term ʻtotalitarian monopoly capitalismʼ. In other in which liberal economies had increasingly come words, the German economy under the Third Reich under the control of the state. At the same time, he was ʻa private monopolistic economy, regimented by also admitted that his state capitalism thesis could the totalitarian stateʼ.6 Recognizing, then, that aspects not be verified empirically in every respect. Con- of a command economy had been put into place, structed ʻfrom elements long visible in Europe and, Neumann proceeded to examine the extent of the to a certain degree in Americaʼ, the thesis was meant German stateʼs intervention in the economy, taking to serve only as a model, a Weberian ʻideal typeʼ.2 into account the stateʼs direct economic activities, its Moreover, although ʻthe trend toward state capital- control over prices, investments, profits, foreign trade ism was growing … in the non-totalitarian statesʼ, and labour, and the role of the National Socialist Party.7 Pollock thought that relatively little work had been He concluded that economic activity in the Third devoted to understanding the democratic form of state Reich had preserved much of its former autonomy. capitalism; a more comprehensive model still needed However, owing to the way in which the economy to be constructed for it.3 Additional research was had been monopolized by large industrial and business also required to determine whether democracy could concerns, profits could not be ʻmade and retained survive under state capitalism. While control over the without totalitarian political powerʼ.8 This is allegedly economy might remain in the hands of a small political what distinguished Nazi Germany from other Western group or faction, Pollock speculated that, in the long states (though, given the growing monopoly on capital run, economic planning could be carried out more or in these other states, one has to wonder why totalitarian less democratically. political power arose only in Nazi Germany). Pollockʼs thesis generated some controversy among Commentators on this debate between Pollock and his co-workers at the Institute for Social Research. Neumann often maintain that Adorno simply adopted One of these was Franz Neumann, a lawyer and Pollockʼs state capitalism thesis in his own analyses of administrator for the Institute who later worked as an developments in the West. For example, Helmut Dubiel economist for the United States government during believes that both Adorno and Max Horkheimer sided World War II. In his Behemoth – which offers a with Pollock, adapting his argument to their assess- detailed analysis of economic conditions under the ment of changes in the development of capitalism.9 Third Reich – Neumann launched a qualified attack David Held agrees with Dubiel; and like Dubiel, Held on Pollockʼs view that Germany could be described as also refers to Dialectic of Enlightenment by way of state capitalist. He argued that Pollockʼs state capital- substantiation without quoting relevant passages from ism thesis actually amounted to the claim that there this work in order to support his view.10 Nevertheless, was no longer any freedom of trade, contract, or Held also points out that Horkheimer and Adorno investment under National Socialism; that Germanyʼs expressed ambivalence about this thesis in their later market had been abolished; that the German state had work. Referring to Adorno, Held notes that, ʻThough complete control over wages and prices, eliminating the main principles which underpin his view of capital- exchange value; and that labour was now appropriated ism are compatible with Pollockʼs position, a reading by a ʻpolitical actʼ.4 Neumann called this thesis into of essays like ʻGesellschaftʼ [Society] (1966) and question, showing that the National Socialists had no ʻSpätkapitalismus oder Industriegesellschaft?ʼ [Late economic theory of their own, and rejecting the idea Capitalism or Industrial Society?] (1968) suggest … that Nazi Germany was organized along corporat- that while Adorno thought that class conflict and crisis ist lines. He also demonstrated that private property can potentially be managed, he did not think that they and private control over capital had been retained in would necessarily be managed successfully.ʼ11 Hitlerʼs regime. In his recent work on Neumannʼs and Otto Kirch- At the same time, however, Neumann did concede heimerʼs critique of the liberal rule of law under that, in Nazi Germany, ʻpossession of the state machin- the welfare state, William Scheuerman also refers to ery … is the pivotal question around which every- Dialectic of Enlightenment (again without quoting it thing else revolvesʼ. And, for Neumann, this was ʻthe directly) to substantiate his claim that Horkheimer and only possible meaning of the primacy of politics over Adorno adopted Pollockʼs state capitalism thesis in Radical Philosophy 89 (May/June 1998) 17 order to explain both the ʻtotally administered worldʼ capitalism thesis – even as an ideal type. Although the in non-totalitarian countries and ʻthe Nazisʼ success authors write in their introduction that individuals have in overcoming all the tensions that had plagued earlier become ʻtotally devalued in relation to the economic forms of capitalismʼ.12 Theoretical and political differ- powers, which at the same time press the control of ences subsequently emerged between Neumann and society
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