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marxisc theory oP economic crisis

pat; vont-nonaia

The object of this article is to present the THE LABOUR THEORY OF main aspects of the marxist theory of crisis in capitalist , and to give an acc­ In any where are produced, ount of some of the various ways in which not for direct use but to be exchanged, there bourgeois have attempted to must be a means by which of deal with ’s contradictions and different kinds can be compared and ex­ crises. In particular, the failure of Keynes­ changed with each other. For Marx, this ian policies will be examined, and the elem­ means of comparison was the labour-time ents of the newest weapon of the capitalist taken to produce a given . This state, capitalist , will constitutes the value of a given commodity be presented. The latter involves political in comparison with other commodities. and social policies, as well as economic ones; This , however, may have in particular, the attempt to dampen down no necessary relation to its usefulness or the union movement through product­ ; a pot or tool may be far more ivity deals, workers’ participation and the useful than an intricate piece of jewellery, like. It is therefore vital for revolutionaries but the latter may have involved more to understand why these policies are being labour-time in its and so may introduced, how they are intended to work, have a far greater exchange value. Thus, and how they can be resisted. Marx’s economic analysis locates value in the actual process of production, not in the process of circulation or exchange, and his analysis of capitalism focuses on the dynamics of capitalist production.

Pat Vort-Ronald is a post-graduate CAPITALIST PRODUCTION: research student at the University MARX’S THEORETICAL ASSUMPTIONS of Adelaide. In order to examine the dynamics of

6 AUSTRALIAN LEFT REVIEW— MARCH/APRIL 1974 capitalist production itself and to show invested in the , how and exploitation arise in the which Marx calls , to rise, in production process itself, Marx assumed relation to the capital used to pay the that commodities were exchanged (bought of productive workers, which Marx calls and sold) at their real value, discounting variable capital. Variable capital alone prod­ profit which might be made by selling uces new values since it is the of above value. Marx also approached capit­ productive workers which produces surplus- alist production in a particular country as value. The relation of the mass of the means a whole, rather than just examining indiv­ of production, and the mass of labour nec­ idual capitalist enterprises. Hence, in his essary for the means of production to func­ analysis, he uses concepts such as total soc­ tion, Marx called the technical composition ial capital and total profit. of capital. Similarly, the “structural tendencies” When this relation is expressed in value which Marx saw arising from capitalist prod­ terms, Marx calls it the organic composition uction, for example, the tendency of the of capital. A rising organic composition of to fall, or the counter-tendency capital means that constant capital is rising for the to rise, refer to in relation to variable capital, i.e. that a a capitalist overall, and cannot be smaller proportion of capital is producing measured directly at any particular time. in relation to total social Often they show themselves indirectly, capital. Thus, the tendency of the organic e.g. a falling rate of profit may be shown by composition of capital to rise means that a movement of capital from one country there is a tendency for the rate of profit to another where the rate of profit is higher. to fall. However, there are other structural or long-term tendencies which can offset the THE DYNAMICS OF CAPITALIST tendency for the rate of profit to fall. The PRODUCTION development of more sophisticated means of production increases the of In the capitalist , the labour, and so tends to push up the rate of direct producers are workers who do not own profit. Other ways in which the tendency the means of production. The latter are owned of the rate of profit to fall can be offset are by the capitalist class. In order to live, workers through depressing wages below their val­ must sell their labour-power to the capitalist. ue, or through foreign trade, which can In return, they receive a which is suffic­ involve both the export of capital to places ient for them to subsist and reproduce them­ of greater profitability, and the use of selves at a minimum standard in a particular favourable terms of trade (for both exports society. (1) However, their labour actually and imports) which enable capitalists to produces commodities of greater value for sell goods above, or buy goods below, their the capitalist than the wage they receive. The real value. difference between the value of labour-power However, most of the counter-tendencies and the exchange-value it produces for the have definite economic, not to say, political, capitalist, which Marx calls surplus-value, is limits, e.g. labour-power cannot be infinitely the source of capitalist profit, which allows exploited by extending the working day, nor them to add to and expand the means of prod­ can wages be reduced substantially without uction. The aim of capitalist production is the strong workers’ opposition. creation of more and more exchange values, The tendency for the organic composition so that profit may increase and capital be ex­ to rise, however, does not have those kinds panded. of limitations. In the long run, it tends to The technological precondition of capital­ show itself over the counter-tendencies, un­ ist production was the development of means less ways are found of keeping the other of production (steam-powered machinery etc.) tendencies in the ascendancy. A falling rate which increased the productivity of labour, of profit need not show itself in the actual i.e. reduced the labour-time necessary for the mass of profit, since the mass may increase production of a given commodity. Because even if the rate is decreasing. Thus it can the overall purpose of capitalist production show itself indirectly, through the flight of is profit, or more surplus-value, there is al­ capital from places where the organic comp­ ways an impetus to increase the productivity osition is high, to places where the rate of of labour, and hence the rate of exploitation, profit is greater. through the introduction of more and more The tendency for the rate of profit to sophisticated means of production. Hence, fall gives added impetus to the expansion in industries in which commodities are prod­ and accumulation of capital, since a falling uced, there is an overall tendency for the rate of profit can be offset tc some extent 7 J by an absolute increase in the amount of , then accumulation can proceed profit. However, if the productivity of one more. And this is precisely what capit­ labour is not increasing enough to offset alist crisis does, hence its ‘regulating’ role. the rising organic composition of capital, Stagnation, or a sudden halt in the acc­ further accumulation may reach a point umulation process, means that the exchange at which there is simply insufficient surplus- value or of capital is depreciated, al­ value being produced in relation to total though its actual use-value is the same. This social capital. When this occurs, it means means that the same quantity of use-value, that, from the point of view of profitability, of means of production, before the crisis, the existing capital is “simultaneously too repesents a smaller exchange-value of means small and too large: it is too large in relat­ of production after the crisis. However, nei­ ion to the existing surplus-value and it is ther the rate of surplus-value nor the mass not large enough to overcome the dearth of surplus-value are affected, as they relate of surplus-value.” (2) It is the contradict­ to the unaltered use-value of capital and ion between the tendency of the rate of hence to its unaltered productive capacity. profit to fall and the impetus to accumulate Hence, the potential rate of profit has which leads to the periodic cycles of booms now increased because the same amount and depressions or in capitalist of surplus-value relates to a lower total production capital. Yaffe explains how this increase in the rate of profit allows capital to be re­ THE ROLE OF CRISIS structured, so that poductionand accum­ ulation can be resumed: When reaches the point where there is insufficient surplus- “The increase in the rate of profit value being produced in relation to total soc­ only holds true once the expansionary ial capital, production is accelerated in an process has begun again and represents effort to produce relatively more surplus- a redistribution of profits(or potential value, Le. to compensate for the declining pofits) in favour of those capitalists rate of profit by increasing the mass of pro­ who have managed to buy up capital fit. This results in the of com­ ‘cheaply’; modities (particularly production goods or “Secondly, with the centralisation what Marx calls Department I commodities) and restructuring of capital that takes which is the beginning of the depression or place in the crisis through , crisis period after the “boom” of accelerated only the more productive capitals sur­ production and accumulation. The crisis ap­ vive and allow for a higher social prod­ pears as an overproduction of commodities uctivity of labour with increased mark­ although, as we have seen, its cause is the ets. It is this mechanism which decreases overproduction of capital relative to surplus- the rate of exploitation and mass of sur­ value. Because accumulation, and therefore plus-value. The larger markets allow for , is restricted, commodities prod­ increasing ‘’. uced can’t be sold or realised, and so there “Thirdly, this restructuring usually appears to be an “overproduction” or includes the abandoning of part of the “” of commodities. How­ least profitable and obsolete constant ever, these particular forms of crisis can only capital and, as such, frees the surviving be explained in terms of capitalist product­ capital (in , or in commodity ion in general, and the falling rate of profit form) for new, more productive invest­ in particular. The more detailed manifest­ ment. ations of capitalist crisis (for example, the “Fourthly, due to increased unemp­ of the 1930s) are a halt in loyment, wages, which had a tendency capitalist accumulation and therefore inv­ to go above their value in the period estment, a loss of ‘confidence’ shown of prosperity previous to the crisis, are through the collapse of the stock , etc. now temporarily pushed below their and massive . value. Simultaneously, the working- This overproduction has occurred because day can also be lengthened and the the relatively reduced labour-power (reduced intensification of labour can be increased, because of the rising organic composition of resulting in an addition of surplus-value. capital) is no longer able to reproduce and Further, through ‘rationalisations’ in enlarge the total mass of capital: it is an the labour-force, new methods and tech­ overproduction of capital with respect to a niques of work, new methods of prod­ given degree of poductivity of labour, or uction can be introduced without the exploitation. If the rate of exploitation can ‘frictions’ that would have taken place be increased, relative to the value of total before the ‘disciplining’ effects of the

8 AUSTRALIAN LEFT RE VIEW — MARCH/APRI L 1974 crisis on the labour-force. relations are governed by ‘’ and ‘supp­ “All these factors together play a ly’. Marxist theory acknowledges that the role in the restoration of profitability demand for, and supply of, commodities can of capital and this allows the accum­ play a part in directly determining the price ulation process to continue on a new of particular commodities. Unlike Keynesian higher level The crisis, therefore, re­ theory, however, seeks to explain moves a temporary barrier to further the levels of , instead of accumulation but only to set new just accepting them. For neither supply nor limits on a higher level still.” (3) demand fall from the sky: their levels are In this sense, crisis is the self-regulating determined by the rate of profit, which ref­ mechanism of capitalist production when ers us back to significant movements in the the tendency for the rate of profit to fall is production process. Marxism, then, treats not offset by other tendencies. The restruct­ supply and demand as the complex end-points uring of capital and resumption of accumul­ of scientific analysis, rather than as simple ation, however, only take place at consider­ ‘givens'. able destruction of capital values (and there­ Another notion used misleadingly by fore loss to sections of the capitalist class) Keynesian theory is that of the ‘power’ of and huge cost to the , through money. Money is often seen as a kind of unemployment. The masses of unemployed motor force in the economy, the manipulat­ present considerable social and political ion of which can slow down or speed up in­ threat to the capitalist economic and social vestment and therefore production. It is order (e.g. in the period from 1929-31, CPA true that the availability of money, partic­ membership increased by 500 per cent!). ularly in the form of , does affect Hence it is in response to the political con­ investment. However, money itself is a com­ sequences of allowing capitalism to remain modity, expressing given quantities of ex- self-regulating that capitalist policies of state change-value. Historically, money, in the intervention into the economy, particularly form of coins, then notes, was necessary as those relying on the theories of Keynes, a ‘universal equivalent’ for which other have developed. Since Keynesian economic commodities could be exchange. Originally, theory focuses on the spheres of realisation paper money was issued as an expression and circulation, rather than production, as of actual values held by national govern­ the crucial areas in the capitalist system, it ments, either in gold, or some other form. seems appropriate to briefly discuss the But no matter what form it takes, the am­ marxist view of realisation (in terms of mon­ ount of money in circulation in an economy ey) and circulation of commodities under is an expression of the total values of all capitalism commodities in circulation. If the face-value of money in circulation is increased faster MONEY AND THE CIRCULATION than new values in the form of commodities OF COMMODITIES are created, then no new value is produced; more money is merely equivalent to the same amount of values in circulation. Thus For Marx, the production process, not the all that happens is that the unit of circulation of commodities, nor their realisat­ (the dollar, for instance) is devalued, for ion in terms of money, was the key to the the ratio of the number of those units to a “inner workings” of the capitalist economy, given commodity simply rises. for values must be produced before they can Of course, adding to the supply of money be realised. Of course, surplus-value, once pro­ in circulation can have an immediately stim­ duced, must be realised in the sphere of circ­ ulating effect on (as the exten­ ulation if it is to be accumulated as profit and sion of credit in another form does). But this re-invested. This is, however, only a secondary also mortgages surplus-value not yet in exist­ problem compared to the problem of product­ ence, and which, when produced, will not ion. Although the production process is the then be available for normal accumulation. original site of the contradictions which lead to capitalist crisis, these contradictions cannot EFFECTS OF KEYNESIAN POLICY be seen or measured directly, but rather man­ ON CAPITALIST CRISIS ifest themselves through market and price re­ lations which signify either an expanding As mentioned above, keynesian economic (sufficient production of surplus-value in policy was a response to the increasingly de­ relation to total social capital) or contracting stabilising political and social effects of the (insufficient surplus-value in relation to total Great Depression, rather than to its effect on social capital) economy. capitalist production. For, as we have seen, According to Keynesian theory, market capitalist crisis, if left to itself, results in a restructuring of capital and a resumption of falling rate of profit. However, Keynes att­ capital accumulation. ributed it merely to an ‘over supply’ of capit­ al, without explaining how or why such a Keynes explained crisis and depression situation should come about. Keynesian in the following way: policy did ‘work’ in the short term in that lowering of the rate and government As capitalist production expands, there works did stimulate investment and offset tends to be an ‘oversupply’ of capital, and so unemployment to some extent. And World the potential profit from investment tends War II created precedents for qualitatively to decrease, while there is insufficient ‘eff­ greater government intervention into the ective demand’ for goods already produced. economy. However, the basic contradict­ (‘’ refers to sufficient mon­ ions of capitalist production had not been ey for actual purposes, not to social need. changed, and their effects still emerged in Keynesian economists, by discussing ‘effect­ terms of the boom- or ‘business’ ive demand’, divert attention away from the cycle. Monetary manipulation and govern­ constant gap between what capitalism prod­ ment intervention could only attempt to uces and what society actually needs.) ‘flatten’ the through stimul­ ating investment when the rate of accumul­ Keynes’ analysis of ‘oversupply’ of cap­ ation slowed, and through slowing the ital rests on the assumption that supply is rate of investment and therefore accumul­ a magical given, and that alone makes ation when it reached the dangerous peak capital profitable. With the decline in expec­ before a crisis. Hence the ‘stop-go’ policies, ted profit from capital investment, or, as in which credit squeezes (raising of the Keynes called it, a decline in the ‘marginal rate of interest) alternate with boom periods. ’ of capital, the capitalists’ ‘propensity Thus, Keynesian policies treat the effects, to invest’ declines, i.e. investments and cap­ not the causes, of capitalist crisis, the basic italist accumulation halt, leading to stagnat­ contradictions of which still remain. And in ion and depression. This comes about (savs fact, Keynesian policies create further prob­ Keynes) because capitalists prefer to hold lems for the capitalist economy as a whole. their capital in the form of , rather than invest it in further capital production, LONG-TERM EFFECTS OF KEYNESIAN which will not yield sufficient profit. The POLICY ON THE CAPITALIST ECONOMY resulting stagnation, of course, leads to large-scale unemployment. Firstly, government spending is financed by (a) ; (b) loans; and (c) deficit finan­ Keynes sought to remedy this crisis situat­ cing. But no matter what the form of finan­ ion, and to control investment and employ­ cing, it ultimately has to be paid for out of ment in general, by manipulating the ‘prop­ surplus-value, except to the extent that the ensity to invest’ of the capitalists. This could national debt is reduced by the debasement be done by the government’s lowering of the of currency (). on investment loans, part of This means that government expenditure Keynes’ , and an important uses surplus-value which could otherwise be technique in government of used by capitalists to accumulate more cap­ the economy. At the same time, Keynes ital. Government expenditure does not sought to raise , through govern­ produce any surplus-value, and for this reason ment financed public works. This not only schools, roads, etc. are ‘unproductive’ in employed workers, but it gave them the terms of capitalist production. money to spend on consumer goods, thus Government expenditure may stimulate stimulating ‘effective demand’ and encour­ demand for capital or consumer goods, thus aging capitalists to invest in production to aiding certain sections of capitalists to acc­ supply commodities for this demand. Gov­ umulate. It may also provide a transport ernment production of public works also infrastructure and cheap raw materials for meant the government hired private con­ capitalists by enabling them access to raw tractors, and so directly subsidised ind­ materials and markets. However, from the ustry. Such expenditure could not be fin­ point of view of total social capital, most anced out of taxes and loans alone. Hence government spending does not produce Keynes advocated ‘deficit budgeting’, i.e. new values, and so does not add to total governments should not be afraid to spend social capital. In fact, it prevents capitalist more than they actually received in revenue accumulation in that it uses surplus-value and loans. that would otherwise have been available Keynes’ declining ‘marginal propensity to to capitalists for further accumulation. invest’ corresponds in some ways to Marx’s As government spending increases, so does the number of government workers. This capital accumulation which creates the con­ means that there is an increasing expenditure ditions of capitalist prosperity or boom, and on both goods and wages which does not these conditions require, as a precondition, produce any surplus-value. This is paid for severe depression, bringing about the des­ out of the surplus-value produced by a rel­ truction of a part of capital, which is necess­ atively declining number of productive ary for a resumption of poduction by the workers in capitalist production. Thus, over­ remaining capital at a higher rate of profit. all, government expenditure prevents the If this cycle is continually prevented the des­ growth of total social capital. truction of capital, and the pocess of con­ As Yaffe puts it: centration and centralisation is inhibited. (In the United Kingdom the government has “ It is clear, therefore, that there are for some years encouraged and financed ‘rat­ limitations to ‘unproductive’ expend­ ionalisation’ and ‘reorganisation’ of industry iture and other government-induced to offset its own inhibiting effect on the nor­ in a capitalist economy. If mal mechanisms of concentration through production grows faster in a ‘non­ crisis.) productive’ sector, the production of profit, or surplus-value, relative to INFLATION total production, declines more rapidly than before. More surplus-value must Another effect of government expenditure be produced from a smaller base of is the impetus it gives to inflation, or the de­ productive workers in order that the of money. As we have seen, the tendency for the rate of profit to fall total value of money represents the total val­ is checked. As long as the productivity ue of commodities currently in circulation. of labour can be sufficiently increased But huge government expenditure means that so as to maintain the rate of profit and money is being expended, particularly in finance the non-productive sector, gov­ wages, without a corresponding increase in ernment-induced expenditure will in­ real values. This requires constant increases deed be the ‘cause’ of high employment in the supply of money (about 20 per cent and social stability. But this process is per year in Australia) and results in “too much self-defeating: to cope with the expense money chasing too few goods” which means of the non-productive sector, the price rises and inflation. In addition, capitalist exploitability of labour must steadily enterprises often have large unproductive sec­ be raised. This means a higher organic tors, e.g. , which contribute to an composition of capital and a decline in increase of the money in circulation without the exploitable labour force relative a corresponding increase in productivity. It to growing capital. To maintain a should be noted in passing that inflation high state of employment indefinitely does not begin with money-wage rises. While the non-productive sector must increase rises in wages have been achieved by the faster than total production. But this working class in most advanced capitalist implies a slow deterioration of private countries, inflation has increased much faster, capital expansion which can only be hence workers’ struggles for increased money halted by halting the expansion of the wages are merely defensive attempts to keep non-productive sector.” (4) up with inflation. ‘’, which means sinultaneous In addition, insofar as government expend­ stagnation (lack of investment) and inflation, iture is financed by the issue of bonds and by which has baffled many Keynesian econom­ budgetary deficits, it leads to an increase in ists, is merely a combination of inflation, the national debt. This means that future caused by increasing government expenditure productivity and surplus-value is in fact and government-induced production, and mortgaged to pay for present unproductive interference with the accumulation process, expenditure. Thus not only existing surplus- caused by government attempts to moderate value, but future surplus-value, is deployed the business cycle. into unproductive government expenditure. CRISIS Apart from government expenditure, the Keynesian approach of ‘flattening’ the bus­ One of the ways in which stagnation, or iness cycle in the long run inhibits capitalist lack of accumulation, manifests itself, is accumulation, however much in the short through an unfavourable balance of payments. run it may stimulate production in general, This means that more capital, particularly in and prevent economic and social disruption. the form of money, is leaving a country than For, as we have seen, it is only accelerated is coming in. This is partly because a low

11 J rate of profit leads capitalists to invest over­ to promote ‘growth’, which necessitates seas where profit rates maybe higher. But increased capital accumulation and therefore another important aspect of this is a lack of higher profit rates. This involves political, exports compared with imports. Low prod­ social and economic policies to this end, uctivity makes it difficult for commodities and includes as a central feature the under­ to be produced at competitive for mining of working class militancy and org­ overseas markets. Wages are an important anisation. can be divided aspect of production costs for exports, and into two spheres: firstly, policy designed to if these are high (because of general inflat­ aid and, secondly, that ion, and because full, or near-full employ­ designed to streamline the realisation process. ment gives trade unions a stronger bargain­ Capital formation is aided by increasing ing position), then export goods cannot be profits and productivity through government- produced at competitive prices. sponsored manpower policies and direct government control over wages. This means The value of imports is then likely to the government pays for workers’ training and exceed that of exports, and a nett obligation re-training schemes, child care centres (to to overseas manufacturers thus arises. allow more women to enter the work force), Eventually, the total of domestic currency etc. while, at the same time, controlling and obligations held overseas becomes of wages by political means. This leads to a such a magnitude that foreign governments direct increase in profits and productivity and capitalists lose confidence in the likelihood and so aids capital accumulation. This is of their being adequately realised, and the accompanied by rationalisation of capitalist currency must be devalued. This is what caused enterprises: policies which eliminate small, the famous American dollar and pound sterl­ inefficient enterprises, e.g. by removal of ing devaluations. tariff protection. This aids the concentration Thus, Keynesian economic policies main­ and centralisation of capital, which in turn, tain old, and create new, contradictions for assists accumulation. The control of wages, capitalist economies. which directly increases profits, since lower In addition, Keynesian remedies have had wages make exports more competitive in disturbing political implications for capital­ overseas markets. ism. For depressions can no longer be passed The realisation process is streamlined off as ‘natural’ disasters. Since workers know through general co-ordination of govern­ full well that the government can create con­ ment and private investment, and through ditions of , they know that long-term planning to make demand and sup­ unemployment represents a deliberate att­ ply predictable for large capitalist enterprises. empt on the part of the government to weak­ The policy of direct wage control can, if en the bargaining position of the working wages are kept low enough, work to offset class. Finally, state intervention in the econ­ the tendency of the rate of profit to fall and omy raises the question among workers of so maintain a reasonable rate of capital accum­ nationalisation of the economy,and comp­ ulation without crises, which are replaced by lete abolition of the private sector. planned ‘rationalisations’. Wage control can only be achieved through complex social and CAPITALIST PLANNING political policy which ties the workers to cap­ ital at three points: It is in response to the economic probl­ ems of stagnation and inflation, which have 1. In government planning boards to been increased by Keynesian policies, that which leaders are capitalist planning has been developed. appointed. This involves long and medium term govern­ ment planning (as distinct from Keynesian 2. Tying unions to the state apparatus ‘stop-go’ methods) at the social and political, in the way the Arbitration Act already as well as the economic, levels. This kind of seeks to do (the British Industrial planning is exemplified by the policies of Relations Act is a more typical example). the Organisation for Economic Co-operation and Development (OECD), an international 3. Class collaborationist schemes at the capitalist think-tank, set up in 1961 to deal point of production: (workers’ part­ with problems which Keynesian policy had icipation, job enrichment, productivity failed to solve. Australia joined OECD in deals). 1971. Whereas Keynesian policies focused on By these means workers’ class are employment and demand management, liquidated into those of capital and the indep­ OECD policies centre on a model designed endence of their organisations is undermined.

A U S T R A L IA N LE FT RE VI EW - MA RCH/APRI L 19 74 Thus, OECD economic policy depends on capitalism prevents satisfaction of the subjugation of working class political and minimum needs for the majority. It economic institutions, particularly trade unions. insists that, once again, whatever Boiled down to its essentials, capitalist plann­ the problems of the ruling class, the ing aims to keep capitalism going by sweating solutions will not be at the expense more surplus-value out of the working class, of the working class. and by co-opting their institutions to prevent resistance. If co-option fails, as it has in Brit­ 3. In the context of the above, the demand ain, sterner methods, such as Heath’s deliber­ for democracy in unions becomes inc­ ate creation of unemployment, are used. reasingly important. Workers’ control Many of the main aspects of capitalist means that workers’ organisations must planning have been introduced into Australia be made responsive to the demands of by the Federal Labor Government. These the rank and file; this is all the more include government action for the rationalis­ imperative in the face of a concerted ation of industry (through tariff cuts), man­ attempt by capitalist government to power policy and re-training schemes and integrate trade unions into capitalist worker participation schemes. (6) It is essen­ planning and make them part of the tial for these schemes to be analysed, and state apparatus. strategies formed to oppose them. The whole thrust of capitalist planning is to make work­ ers pay for regulating capitalism. Opposition NOTES to this is not merely narrow : it poses the whole question of workers’ con­ 1. The worker’s wage, according to Marx, is trol in a very concrete way: the control of based upon the labor-time necessary for his/ the working class over the capitalist to the her subsistence and . Marx did extent of preventing them from running not deal with the way in which labor-power the economy in the way they choose. It is is in fact reproduced, by the work of women a refusal on the part of the working class to in the family. Women who do this work, take responsibility for capitalism’s problems. labor outside the capitalist mode of produc­ Existing workers’ control strategies and tion, but their work is necessary to the latter, defensive struggles for wage rises could be since they workers and future workers combined with the following demands. (7) (children) for capitalist production. Revolut­ ionary struggles should take account of the 1. A rising scale of wages regulated particular work and specific oppression of by housewife and trade union comm­ women under capitalism. ittees. This demand says that the working class will decide, through 2. Mattick, P., Marx and Keynes (London, its own representatives who exper­ Merlin, 1970), p. 68. ience the problem directly, what is the rise in the working class’ cost 3. Yaffe, D., “The Marxian Theory of Crisis, of living. It would acknowledge Capital and the State”, Economy and Society, the work of housewives as the re­ Vol. 2, No. 2, May 197 3, pp. 204-5. producers of labor-power, who must directly confront cost of living rises. 4. Yaffe, D., “The Crisis of Profitability”, It would expose the anarchy of cap­ Review, No. 80, July/Aug. 197 3, italist production as the source of p. 52. price rises, and it would point to the need to establish a society where 5. Details of Labor’s adoption of OECD workers are not faced with the con­ schemes can be found in: Catley R. and tinual struggle for existence that MacFarlane, B., “Labor’s Plan: Neo-capital­ capitalism dictates. ism Comes to Australia”, Intervention No. 3.

2. The demand for work or full pay, 6. Yaffe, D., “The Crisis of Profitability”, which has already been expressed in op. cit. pp. 60-61. Australia through the work-in, or refusal to take the sack. This cannot REFERENCES be fulfilled by individual employers, but must be raised as a demand upon Mattick, P., “Marxism and Capital”, the state, as the agency of the capit­ Progressive Labour, VoL 16, No. 1,19 67 . alist class. It can be argued that this is a minimum need which should be Warren, B., “Capitalist Planning and the State”, fulfilled by any society, but again, New Left Review, March-April, No. 72.