Link Competition

Competitiveness decides who lives and who dies based on capitalist market performance Bristow, Cardiff University School of City and Regional Planning, 5
(Gillian, 4/13/200 , !"veryone#s a $%inner#& 'ro(le)ati*ing the disco+rse of regional co)'etitiveness,, -o+rnal of "cono)ic Co)'etitiveness , '. 2/012/2, (s3
Co)'etitiveness is +s+ally +sed to refer to fir) 'erfor)ance. The

discourse of firm competitiveness comes from two principal sources. The first of these is the discourse of the economics profession, where competitiveness is regarded as a somewhat abstract qualit conferred upon successful firms b the markets within which the operate. Thus, !the market is the impartial and ultimate arbiter of right behaviour in the econom and competitiveness simpl describes the result of responding correctl to market signals" (Schoen(erger, 144/, 33. The fusion of economics with evolutionar theor has imbued the concept with the notion of !survival of the fittest". #irms, like organisms, are seen as living on the edge, with survivors being those who are able to survive or !win" in a d namic world of economic competition (She''ard, 20003. Competitiveness has thus become inescapabl associated with ideas of fitness and unfitness, and these in turn with the implied premise of merit, as in !deserving to live" and !deserving to die". Secondly, co)'etitiveness is
also the disco+rse of the (+siness co))+nity %here it re'resents the f+nda)ental e5ternal validation of a fir)#s a(ility to s+rvive, co)'ete and gro% in )ar6ets s+(7ect to international co)'etition. 8his 'rovides a 'ervasive and 'o%erf+l )eans of e5'laining al)ost any (ehavio+r i.e. a fir) $)+st do9 in order to (e co)'etitive# (Schoen(erger, 144/3.

Competitiveness refers to the capacit to compete and survive in the capitalist marketplace Bristow, Cardiff University School of City and Regional Planning, 5
(Gillian, 4/13/200
, '. 2/2, (s3 8h+s, at the )icro (i.e. fir)3 level, competitiveness , !"veryone#s a $%inner#& 'ro(le)ati*ing the disco+rse of regional co)'etitiveness,, -o+rnal of "cono)ic Co)'etitiveness

has a relativel clear meaning and refers to the capacit of a firm to compete, grow and be profitable in the marketplace. :n 'rinci'le at least, relative fir)
co)'etitiveness can also (e )eas+red on a co))on scale. 8his is (eca+se it refers to co))ens+ra(le +nits (fir)s3 engaged in co))ens+ra(le activities (co)'eting in a )ar6et3. $ince it is perceived to reflect a firm"s abilit to survive

competition and to grow, firm competitiveness is generall conceived of in terms of output% related performance indicators. :ndeed, according to ;ichael Porter (14/ , 14403 firm competitiveness is simpl a pro& for productivit . Porter has arg+ed that firms that are capable of producing more output with fewer units of input than their rivals generate a !competitive advantage" in the markets in which the compete, enabling them to grow and prosper accordingl . ' firm"s productivit , he arg+es, is dependent upon its !entrepreneurialism". This is defined as its capacit to innovate in the production process, to access new and distinctive markets in different and unconventional wa s, and to produce new or redesigned goods and services with perceived customer benefit
(see also, S'ender, 144/3. 8h+s according to Porter, fir) co)'etitiveness is not si)'ly centred on a narro% efficiency1(ased conce'tion of 'rod+ctivity, (+t also de'ends on the val+e of 'rod+cts and services 'rod+ced i.e. their +ni<+eness and <+ality.

Competitiveness largel favors neoliberal motives the ('C"s focus on increasing competitiveness puts private entities in charge Bristow, Cardiff University School of City and Regional Planning, 5
(Gillian, 4/13/200 , !"veryone#s a $%inner#& 'ro(le)ati*ing the disco+rse of regional co)'etitiveness,, -o+rnal of "cono)ic Co)'etitiveness , '. 242124/, (s3

)ltimatel , the language of competitiveness is the language of the business communit . Thus, critical to understanding the power of the discourse is firstl , understanding the appeal and significance of the discourse to business interests and, secondl , e&ploring their role in influencing the ideas of regional and national polic elites. Part of the all+re of the disco+rse of co)'etitiveness
for the (+siness co))+nity is its see)ing co)'rehensi(ility. =+siness leaders feel that they already +nderstand the (asics of %hat co)'etitiveness )eans and th+s it offers the) the gain of a''arent so'histication %itho+t the 'ain of gras'ing so)ething co)'le5 and ne%.

#urthermore, competitive images are e&citing and their accoutrements of !battles", !wars" and !races" have an intuitive appeal to businesses familiar with the c cle of growth, survival and sometimes collapse (>r+g)an, 1440(3. The climate of globalisation and the turn towards neo%liberal, capitalist forms of regulation has empowered business interests and created a demand for new concepts and models of development which offer guidance on how economies can innovate and prosper in the face of increasing competition for investment and resources. Glo(al 'olicy elites of
govern)ental and cor'orate instit+tions, %ho share the sa)e neo1li(eral consens+s, have 'layed a critical role in 'ro)oting (oth the disco+rse of national and regional co)'etitiveness, and of co)'etitiveness 'olicies %hich they thin6 are good for the) (s+ch as s+''ortive instit+tions and f+nding for research and develo')ent agendas3. *n the +), for e&ample, the +uropean ,ound Table

of *ndustrialists pla ed a prominent role in ensuring that the Commission"s (--. /hite 0aper placed the pursuit of international competitiveness (and th+s the s+''ort of (+siness3, on an equal footing with 1ob creation and social cohesion ob1ectives (?overing, 144/@ =alanya et al., 20003. This discourse rapidl spread and competitiveness policies were transferred through global polic networks as large quasi%governmental organisations such as the 2+C3 and /orld Bank pushed the national and, subsequentl , the regional competitiveness agenda upon national governments
(Peet, 20033.

Competitiveness discourse is used to legitimi4e neoliberal actions Bristow, Cardiff University School of City and Regional Planning, 5
(Gillian, 4/13/200 , !"veryone#s a $%inner#& 'ro(le)ati*ing the disco+rse of regional co)'etitiveness,, -o+rnal of "cono)ic Co)'etitiveness , '. 2441300, (s3

The evolutionar , !survival of the fittest" basis of the regional competitiveness discourse clearl resonates %ith this eval+ative c+lt+re. The discourse of competitiveness strongl appeals to the stratum of polic makers and anal sts who can use it to 1ustif what the are doing and5or to find out how well the are doing it relative to their !rivals". This helps e&plain the interest in tr ing to measure regional competitiveness and the development of composite indices and league tables. :t also hel's e5'lain %hy 'artic+lar ele)ents of the disco+rse have ass+)ed 'artic+lar significanceAo+t'+t indicators of
fir) 'erfor)ance are )+ch easier to co)'are and ran6 on a single a5is than are indicators relating to instit+tional (ehavio+r, for e5a)'le. 8his in t+rn 'oints to a central 'arado5 in )eas+res of regional co)'etitiveness. 8he 6ey ingredients of fir) co)'etitiveness and regional 'ros'erity are increasingly 'erceived as lying %ith assets s+ch as 6no%ledge and infor)ation %hich are, (y definition, intangi(le or at least diffic+lt to )eas+re %ith any degree of acc+racy. The obsession with performance measurement and the

tendenc to reduce comple& variables to one, easil digestible number brings a !kind of blindness" with it as to what is reall important (=oyle, 2001, 003Ain this case, ho% to i)'rove regional 'ros'erity.
8h+s %hile a co)'osite inde5 n+)(er of regional co)'etitiveness %ill attract %ides'read attention in the )edia and a)ongst 'olicy)a6ers and develo')ent agencies, the diffic+lty 'resented (y s+ch a )eas+re is in 6no%ing %hat e5actly needs to (e targeted for a''ro'riate re)edial action. Bll of this suggests that regional competitiveness is more than simpl the linguistic

e&pression of powerful e&ogenous interests. *t has also become rhetoric. *n other words, regional competitiveness is deplo ed in a strategic and persuasive wa , often in con1unction with other discourses (nota(ly glo(alisation3 to legitimate specific polic initiatives and courses of action. The rhetoric of regional competitiveness serves a useful political purpose in that it is easier to 1ustif change or the adoption of a particular course of polic action b reference to some e&ternal threat that makes change seem inevitable. :t is )+ch easier for e5a)'le, for 'oliticians to arg+e for
the re)oval of s+''ly1side rigidities and fle5i(le hire1and1fire %or6'lace r+les (y s+ggesting that there is no alternative and that 7o(s %o+ld (e lost any%ay if 'rod+ctivity i)'rove)ent %as not achieved. Thus, !the language of e&ternal competitiveness. .

.provides a ros glow of shared endeavour and shared enemies which can unite captains of industr and representatives of the shop floor in the same big tent" (8+rner, 2001, 403. *n this sense it is a discourse which provides some shared sense of meaning and a means of legitimising neo% liberalism rather than a )aterial foc+s on the act+al i)'rove)ent of econo)ic %elfare.

The bioeconom cannot be separated from neoliberalism efforts to promote 6peace and freedom7 around the world are onl efforts to spread capitalism Birch, Cor6 University De'art)ent of Social Science Bssistant Professor, 8
(>ean, Dece)(er 2000, !8he Eeoli(eral Under'innings of the =ioecono)y& the :deological Disco+rses and 'ractices of "cono)ic Co)'etitiveness,, Geno)ics, Society and Policy, vol. 2, no. 3, '. 3, accessed 2/ /2012, (s3

/hat this means for the bioeconom is that the political econom of biotechnolog ie, how it is organised as a market can be seen as the consequence of the e&pansion of specific economic discourses and practices. *n particular, the bioeconom is tied to the rise of neoliberalism as the dominant mode of governance. 9eoliberalism itself developed as an economic ideolog for two ma1or reasons. #irst, it was a response to the totalitarian regimes of 9a4i :erman and $oviet ,ussia. $econd, it resulted from a concern with the !problem of knowledge" in economic calculation, which meant that a centrall %planned market was not seen as plausible.22 8he ter) itself %as coined in 143/ at a )eeting in Paris of li(eral intellect+als F incl+ding the li6es of von ;ises and
Gaye6 F %ho foc+sed on !the redefinition of the f+nctions of the state, to ens+re the develo')ent of freedo) and 'ro'erty rights (ie, )ar6et ethics3 and contrasted %ith the nineteenth cent+ry laisse* faire li(eral tradition (ased on re)oving state intervention altogether.23 *t also

had a strong international dimension in seeking to promote peace and freedom through international economic e&change. This earl movement was cemented after /orld /ar ** with the establishment of the ;ont 0elerin $ociet in (-<=, although neoliberalism itself failed to dominate economic discourse during the post%war period, which was instead characterised b a form of >e nesian !embedded liberalism."

0olic decisions regarding competitiveness are made onl to perpetuate neoliberal motives Birch, Cor6 University De'art)ent of Social Science Bssistant Professor, 8
(>ean, Dece)(er 2000, !8he Eeoli(eral Under'innings of the =ioecono)y& the :deological Disco+rses and 'ractices of "cono)ic Co)'etitiveness,, Geno)ics, Society and Policy, vol. 2, no. 3, '. 21/, accessed 2/ /2012, (s3

The polic discourse around innovation and competitiveness has led to the embedding of a number of specific institutional changes in the )$ bioeconom that have had enor)o+s infl+ence on other co+ntries. 't least three such components to the competitiveness regime have been naturalised as necessar polic changes intend ensure success in the bioeconom . Hirst and fore)ost %as the a(ility
to ca't+re ret+rns on the ne% (iotechnologies arising o+t of '+(lic and 'rivate la(oratories. :n 'artic+lar the clarification of %hether living organis)s co+ld (e 'atented %as cr+cial and had (een an ongoing saga (et%een 1421 and 14/0 in relation to the Dia)ond vs. Cha6ra(arty case.21 Second, there was a need to enable the capture of public science funded b the )$ federal

government and thereb e&clude others from its benefits. #inall there was an increased emphasis on the international dimensions of all these other policies in order to enable the competitiveness of )$ firms in global markets. Conse<+ently a n+)(er of trade1related 'olicies s+ch as the 8R:PS
agree)ent at the I8J %ere vigoro+sly '+rs+ed.

Competitiveness is intrinsicall linked to capitalism the onl reason to increase competitiveness is to be able to survive in the market Birch, Cor6 University De'art)ent of Social Science Bssistant Professor, 8
(>ean, Dece)(er 2000, !8he Eeoli(eral Under'innings of the =ioecono)y& the :deological Disco+rses and 'ractices of "cono)ic Co)'etitiveness,, Geno)ics, Society and Policy, vol. 2, no. 3, '. 4, accessed 2/ /2012, (s3

The final component of the competitiveness regime was in some wa s the most important because it dealt with the abilit of )$ firms to compete in international markets. 'gain, a number of polic decisions were made that provided a trading advantage for )$ firms. *n particular the Trade 'ct established a series of processes called 301 and 301 S'ecial that enabled the )$ to withdraw favourable trade status from those countries that it deemed not to have fulfilled certain demands on intellect+al 'ro'erty rights (:PR3./3 S+ch 'olicies %ere

instit+tionalised in the J)ni(+s 8rade and Co)'etitiveness Bct (14//3 %hen they (eca)e '+(lic la%. These processes meant that countries refusing to adhere to )$ demands could be threatened with trade restrictions./4 $uch international activities designed to promote )$
interests were pursued through multilateral trade negotiations as well. The most important being the /orld Trade 2rganisation (I8J3 %hich introd+ced the 8rade Related Bs'ects of

:ntellect+al Pro'erty (8R:PS3 )eas+res. Brticle 22 of 8R:PS )eant that all signatories had to enforce (iotech 'atents, %hilst Brticle 33 har)onised 'atents to a 201year )ini)+) %here non1co)'liance %o+ld entail the loss of trade 'rivileges./

Link Crisis politics

3isaster Capitalism uses fear rhetoric created b catastrophe to create new investment opportunities%plan is an e&ample of this phenomenon >lein 5 (8he Eation B'ril 14, 200 3 (8he Rise of Disaster Ca'italis) :ntrod+ction3
htt'&//%%%.f+c6yo++sa.co)/Iritings/8heKRiseKofKDisasterKCa'italis).'df Eao)i >lein is a for)er ;ili(and Hello% at the ?ondon School of "cono)ics and holds an honorary Doctor of Civil ?a%s fro) the University of >ing#s College, Eova Scotia. She is c+rrently at %or6 on a ne% (oo6 and fil) on ho% the cli)ate crisis can s'+r econo)ic and 'olitical transfor)ation. B?G =+t if the reconstr+ction ind+stry is st+nningly ine't at re(+ilding, that )ay (e (eca+se re(+ilding is not its 'ri)ary '+r'ose. Bccording to G+ttal, L:tMs not reconstr+ction at all11itMs a(o+t resha'ing everything.L :f anything, the stories of corruption and

incompetence serve to mask this deeper scandal? the rise of a predator form of disaster capitalism that uses the desperation and fear created b catastrophe to engage in radical social and economic engineering. 'nd on this front, the reconstruction industr works so quickl and efficientl that the privati4ations and land grabs are usuall locked in before the local population knows what hit them. >+)ara, in another e1)ail, %arns that Sri ?an6a is no% facing La second ts+na)i of
cor'orate glo(ali*ation and )ilitari*ation,L 'otentially even )ore devastating than the first. LIe see this as a 'lan of action a)idst the ts+na)i crisis to hand over the sea and the coast to foreign cor'orations and to+ris), %ith )ilitary assistance fro) the US ;arines.L Bs De'+ty Defense Secretary, Pa+l Iolfo%it* designed and oversa% a stri6ingly si)ilar 'ro7ect in :ra<& 8he fires %ere still (+rning in =aghdad %hen US occ+'ation officials re%rote the invest)ent la%s and anno+nced that the co+ntryMs state1o%ned co)'anies %o+ld (e 'rivati*ed. So)e have 'ointed to this trac6 record to arg+e that Iolfo%it* is +nfit to lead the Iorld =an6@ in fact, nothing co+ld have 're'ared hi) (etter for his ne% 7o(. :n :ra<, Iolfo%it* %as 7+st doing %hat the Iorld =an6 is already doing in virt+ally every %ar1torn and disaster1str+c6 co+ntry in the %orld11al(eit %ith fe%er (+rea+cratic niceties and )ore ideological (ravado.LPost1conflictL co+ntries no% receive 2012 'ercent of the Iorld =an6Ms total lending, +' fro) 10 'ercent in 144/11itself an /00 'ercent increase since 14/0, according to a Congressional Research Service st+dy. ,apid response to wars and natural disasters has traditionall been the domain of

)nited 9ations agencies, which worked with 9:2s to provide emergenc aid, build temporar housing and the like. But now reconstruction work has been revealed as a tremendousl lucrative industr , too important to be left to the do%gooders at the )9. $o toda it is the /orld Bank, alread devoted to the principle of povert alleviation through profit%making, that leads the charge. 'nd there is no doubt that there are profits to be made in the reconstruction business. There are massive engineering and supplies contracts (N10 (illion to Galli(+rton in :ra< and Bfghanistan alone3@ Ldemocrac building@ has e&ploded into a AB billion industr C and times have never been better for public%sector consultants%%the private firms that advise governments on selling off their assets, often running government services themselves as subcontractors.
(=earing Point, the favored of these fir)s in the United States, re'orted that the reven+es for its L'+(lic servicesL division Lhad <+adr+'led in 7+st five years,L and the 'rofits are h+ge& N342 )illion in 200211a 'rofit )argin of 3 'ercent.3 =+t shattered co+ntries are attractive to the Iorld =an6 for another reason& 8hey ta6e orders %ell. 'fter a catacl smic event, governments will usuall do

whatever it takes to get aid dollars%%even if it means racking up huge debts and agreeing to sweeping polic reforms. 'nd with the local population struggling to find shelter and food, political organi4ing against privati4ation can seem like an unimaginable lu&ur . +ven better from the bankDs perspective, man war%ravaged countries are in states of @limited sovereignt @? The are considered too unstable and unskilled to manage the aid mone pouring in, so it is often put in a trust fund managed b the /orld Bank. 8his is the case in "ast 8i)or,
%here the (an6 doles o+t )oney to the govern)ent as long as it sho%s it is s'ending res'onsi(ly. B''arently, this )eans slashing '+(lic1 sector 7o(s (8i)orMs govern)ent is half the si*e it %as +nder :ndonesian occ+'ation3 (+t lavishing aid )oney on foreign cons+ltants the (an6 insists the govern)ent hire (researcher =en ;o5ha) %rites, L:n one govern)ent de'art)ent, a single international cons+ltant earns in one )onth the sa)e as his t%enty 8i)orese colleag+es earn together in an entire yearL3.

The generation of crisis creates new opportunities for private companies to construct public infrastructure. This ensures the transfer of wealth from a public to private good. #arrell = (Pa+l =. Harrell, Do% -ones =+siness Ee%s, Jcto(er 10, 2002 Pa+l =. Harrell has (een a ;I col+)nist since 1442 and has
'+(lished )ore than 1400 col+)ns 'l+s nine (oo6s. Iar, 8error, Catastro'he& Profiting Hro) MDisaster Ca'italis)M htt'&//%%%.nao)i6lein.org/shoc61doctrine/revie%s/'rofiting1disaster1ca'italis)3 Got ti'& :nvest in LDisaster Ca'italis).L3 B?G

This new investment sector is the core of the emerging @new econom @ that generates profits b feeding off other peoplesD miser ? /ars, terror attacks, natural catastrophes, povert , trade sanctions, market crashes and all kinds of economic, financial and political disasters. :n this Jr%ellian f+t+re, everything )+st (e seen %ith ne% eyes& @3isasters@ are L:PJs,L opportunities to bu into a new @compan .@ Cor'orations li6e ?oc6heed1;artin are the real Le)erging nationsL
Got ti'& :nvest in Disaster Ca'italis). of the %orld, not so)e din6y co+ntries. 8hey generate h+ge 'rofits, gro% earnings. Bnd seen thro+gh the ne% rose1colored glasses of LDisaster Ca'italis)L they are hot invest)ent o''ort+nities. 8o )ore f+lly gras' this ne% econo)y, yo+ )+st read %hat )ay (e the )ost i)'ortant (oo6 on econo)ics in the 21st cent+ry, Eao)i >leinMs 8he Shoc6 Doctrine& 8he Rise of Disaster Ca'italis), %hose roots trace (ac6 the ideas of three 20th cent+ry giants& President D%ight D. "isenho%er, %ho %arned +s against the self1'er'et+ating and ever1 e5'anding econo)ic 'o%er of o+r L)ilitary1ind+strial co)'le5.L Eo(el econo)ist ;ilton Hried)an, %ho said econo)ic change never occ+rs %itho+t a crisis shoc6ing the syste)@ %hether the crisis is nat+ral, ind+ced or )erely 'erceived, as %ith enfla)ing '+(lic fears of %ar and terror threats. "cono)ist -ose'h Sch+)'eter, %hose sa% Lcreative destr+ctionL as a healthy 'rocess (y %hich ne% technologies and ne% 'rod+cts )ade old ones o(solete. @3isaster Capitalism@ is financing a new world economic order sa s

>lein, not 1ust in @the divide between BaghdadDs :reen and ,ed 4ones@ but in other disaster 4ones, from post%tsunami $ri Lanka to post%>atrina 9ew 2rleans. 3isasters come in man forms? /eapons destro ing power plants and hospitals, nature weakening bridges, hurricanes wiping out towns, ideological conflicts turning 'fricaDs farmlands into deserts, global banking s stems favoring investors over public works, shopping malls over schools, sewage treatment and power plants, and so on. Ces, this is a hot1(+tton 'olitical iss+e. =+t for the )o)ent, letMs '+t aside 'artisan 'olitics, %hich
)any %ill find dist+r(ing for the f+t+re of B)erica. ?etMs loo6 at this strictly as investors and (riefly consider %hat )ay also (e a g+ide for aggressive investors searching for invest)ent o''ort+nities in LDisaster Ca'italis).L :n a (rilliant Gar'erMs e5cer't fro) 8he Shoc6 Doctrine, >lein )a6es clear ho% this ne% econo)y is the %ave of the f+t+re for certain investors& @Toda , global instabilit does not

1ust benefit a small group of arms dealersC it generates huge profits for the high%tech% homeland%securit sector, for heav construction, for private health%care companies, for the oil and gas sectors %% and, of course, for defense contractors.@ =ig (+c6s 8his ne% )ar6et is enor)o+s&
LReconstr+ction is no% s+ch a (ig (+siness that investors greet each ne% disaster %ith the e5cite)ent of a hot ne% stoc6 offering& N30 (illion for :ra< reconstr+ction, N13 (illion for ts+na)i reconstr+ction, N110 (illion for Ee% Jrleans and the G+lf Coast.L Get itO Disasters are L:PJsPL follo%ed (y on1going reven+es for L'ro7ectsL li6e the =lac6%ater sec+rity contracts and constr+cting the %orldMs largest e)(assy in the isolated =aghdad Green Qone. 8hin6 'ositive& LDisaster Ca'italis)L 'layed a )a7or role in (ringing B)ericaMs econo)y o+t of the 200012002 (ear1recession& L8he scale of the reven+es at sta6e %as certainly eno+gh to f+el an econo)ic (oo). ?oc6heed ;artin, %hose for)er vice 'resident chaired the Co))ittee for the ?i(eration of :ra<, %hich lo+dly agitated for the invasion, received N2 (illion in U.S. govern)ent contracts in 200 alone.L P+tting that in 'ers'ective, >lein <+otes U.S. Re'. Genry Ia5)an& 8hat s+) Le5ceeded that gross do)estic 'rod+ct of 102 co+ntries, incl+ding :celand, -ordan and Costa Rica RandS %as also larger than the co)(ined (+dgetsL of the De'art)ents of :nterior and Co))erce, the S=B and the entire legislat+re. L?oc6heed itself deserved to (e characteri*ed as an e)erging )ar6et. Co)'anies li6e ?oc6heed (?;83 (%hose stoc6 'rice tri'led (et%een 2001 and 200 3 are a large 'art of the reason %hy the U.S. stoc6 )ar6et %as savedL after 4/11, hel'ing the recovery )ore than the ho+sing (oo) didP Pl+s energy& @The oil and gas industr is

so intimatel entwined with the econom of disaster %% both as a root cause behind man disasters and as a beneficiar from them %% that it deserves to treated as an honorar ad1unct of the disaster%capitalism comple&.@ Citing the Lo+trageo+s fort+nes of the oil sector 11 a N40 (illion 'rofit in 2000 for
"55on;o(il alone (9J;3 ... ?i6e the fort+nes of cor'orations lin6ed to defense, heavy constr+ction and ho)eland sec+rity, those of the oil sector i)'rove %ith every %ar, terrorist attac6 and Category h+rricane.L Go% to invest in the ne% MDisaster Ca'italis)M *tDs eas to

invest in @3isaster Capitalism@ and the new econom

. See the S'ade Defense :nde5 (D9S3 of defense, ho)eland sec+rity and aeros'ace stoc6s. >lein says it L%ent +' 20T (et%een 2001 and 2000, %hile the SUP 00 dro''ed T.L Co+ can trade the S'ade :nde5 as a Po%erShare Beros'ace and Defense "8H (PPB3 . :n addition, the Hidelity Select Defense U Beros'ace H+nd (HSDB93 offers another o''ort+nity. Bccording to ;orningstar data, there are si)ilar stoc6s in (oth, incl+ding& General Dyna)ics (GD3 , Raytheon (R8E3 , Roc6%ell Collins (CJ?3 , =oeing (=B3 , Garris (GRS3 , Eorthro' Gr+))an (EJC3 and United 8echnologies (U893 . L8he Shoc6 DoctrineL is one of the (est econo)ic (oo6 of the 21st cent+ry (eca+se it reveals in one 'lace the confl+ence of c+lt+ral forces, the restr+ct+ring of a %orld econo)y as gro%ing 'o'+lations fight over de'leting nat+ral reso+rces and the drifting a%ay of B)erica fro) re'resentative de)ocracy to a govern)ent controlled (y )+lti'le, co)'eting, %ell1financed and shado%y s'ecial interests.

Capitalism feeds off of war and disaster to generate profits #arrell = (Pa+l =. Harrell, Do% -ones =+siness Ee%s, Jcto(er 10, 2002 Pa+l =. Harrell has (een a ;I col+)nist since 1442 and has
'+(lished )ore than 1400 col+)ns 'l+s nine (oo6s. Iar, 8error, Catastro'he& Profiting Hro) MDisaster Ca'italis)M htt'&//%%%.nao)i6lein.org/shoc61doctrine/revie%s/'rofiting1disaster1ca'italis)3 Got ti'& :nvest in LDisaster Ca'italis).L3 B?G GereMs an overvie% of trends fro) the (oo6 and related ideas& 1. #ree market competes with government

*n the past when ma1or catastrophes resulted in economic disruptions and human losses governments responded with @9ew 3eals@ and @;arshall 0lans,@ sa s >lein. Toda , @3isaster Capitalism@ companies see government agencies Elike #+;'F and nonprofits E,ed CrossF as @competition@ taking awa new business. ' militar draft, for instance, would lower the need for private mercenaries. 2. Privati*ation of govern)ent for the investor class 8hese ne% forces are screa)ing to 'rivati*e o+r econo)y and
govern)ent& Bfter the ;innea'olis (ridge colla'se >lein sa% )any calls for )ore 'rivate toll roads and (ridges across B)erica. Sa)e %ith calls to 'rivati*e Ee% Cor6Ms s+(%ays after rain closed the) te)'orarily. Ditto %ith air'orts and their sec+rity. Bnd in Ee% Jrleans, reconstr+ction )oneys re(+ilt 'rivate schools in +'scale areas and neglected infrastr+ct+re in 'oor areas. 3. /ar generates

profits, peace hurts free markets @3isaster Capitalism@ firms need wars to generate profits. Bnd
(y sideste''ing the draft, :ra< (eca)e a 'rivati*ed %ar e)'loying over 1/ ,000 (20,000 )ore than the )ilitary3, incl+ding tr+c6 drivers, P9 cler6s and )ercenary soldiers. =lac6%ater %as near (an6r+'tcy (efore the %ar. 8hro+gh secret no1(id contracts the U.S. 'ays for training centers %hich the co)'anies no% o%n. Peace does not generate disaster 'rofits. 4. Pl+tocratic govern)ent favoring %ealthy over )asses L8he vast infrastr+ct+re of the disaster ind+stry, (+ilt +' %ith ta5'ayer )oney, is all 'rivately controlledL thro+gh s'ecial interests favoring the %ealth classes d+ring reconstr+ction. :n Ee% Jrleans >lein sa% the Lso1called H";B1villes& desolate o+t1of1the1%ay trailer ca)'s for lo%1 inco)e evac+ees R%ith g+ards thatS treated s+rvivors li6e cri)inals@L %hile the %ealthy gated co))+nities <+ic6ly received %ater and 'o%er generators, 'rivate school and hos'ital services. . Shado% (an6ing syste) Private e<+ity fir)s and hedge f+nds are )a6ing o+r Hederal Reserve =an6 less and less relevant. 8oday a 'rivate (an6ing syste) is e)erging nationally and glo(ally that o'erates in relative secrecy o+tside the esta(lished syste) and (eyond the oversight of sec+rities and (an6ing reg+lators and the legislat+re, o+t in a 'arallel +niverse (eyond the co)'rehension of the vast )a7ority of B)erican ta5'ayers and ;ain Street investors. So fol6s& *s @3isaster

Capitalism@ merel a hot short%term investment opportunit for ouG 2r is it a national @crisis,@ a warning bell, a @shocking@ call to rise above euphemisms like @creative destruction,@ get into action and rein in the @militar %industrial comple&@ mindset thatDs pushing 'merica into a disastrous, self%destructive futureG 8ell +s.

LinkEconomy
Market-based motivations send us toward collapse while further serving capitalist desires Smith 20 2
By Douglas K., the co-founder of Econ4 and author of On Value and Values: Thinking Differently !out "e #n n ge Of $e. %ross &osted fro' lternet (Douglas,&rofiting )ro' $arket )ailure: *o+ Today,s %a&italists Bring Bad Things to -ife,. /uly 0120, htt&:33+++.nakedca&italis'.co'301203143&rofiting-fro'-'arket-failure-ho+-todays-ca&italists!ring-!ad-things-to-life.ht'l5267B 2489:;cO+<7.==. nd, :uite clearly, in ca&ital 'arkets. !apital operates in and through markets in which people and organi"ations with money to invest find organi"ations and people looking for investors# /oe "ilson,s success +ith >ero7 de&ended on ca&ital 'arkets. *e and his colleagues had to find the ca&ital needed for their 24-year ?ourney fro' idea to i'&le'entation. nd e7ecuti@es and entre&reneurs in the healthcare, energy, food, housing, financial ser@ices, infrastructure, la+, accounting and all other 'arkets also 'ust turn to ca&ital 'arkets for the funds A the essential fuel A needed in their :uest to &rofit fro' either fi7ing or &er&etuating the failures in their res&ecti@e 'arkets. $he forces driving
today%s capital markets push far& far more capital toward s'uee"ing more and more profits and wealth out of failures instead of innovating to fi( those failures and increase the )good things to life#* +undreds of trillions of dollars of capital , including ta(payer-provided funds slosh through global markets in search of socially useless gains from trading in comple(& unregulated and out-of-control financial derivatives, instru'ents "arren Buffet calls Bweapons of mass destruction.B $ightly interwoven boards of directors and top e(ecutives openly conspire to use e(ecutive compensation schemes to e(tract wealth for themselves even as they downsi"e and outsource -obs& cheapen and overcharge for products and services& and turn their !acks on inno@ations that could spread good things to folks currently not served#

The folks at Bain %a&ital clai' to in@est in fi7ing failures, !ut far too often they actually manipulate the tax code and capital markets to !uild huge &ersonal fortunes on the suffering of others.

LinkEnvironment
Environmental strategies are tools of capitalism .radley 20
(Co!ert, $ost Dreen Energy <ro?ects re Thinly Veiled E7ercises #n %rony %a&italis',. 2131630122,
htt&:33+++.for!es.co'3sites3ro!ert!radley301223213163'ost-green-energy-&ro?ects-are-thinly-@eiled-e7ercises-in-cronyca&italis'3&rint3E
#n late Fe&te'!er on this site, %hristo&her *el'an fa@ora!ly &rofiled Oklaho'a !illionaire Deorge KaiserGs green. energy agenda. ;es, solar-&anel'aker Folyndra recently +ent !elly u&, lea@ing 2,211 &eo&le out of +ork and the federal go@ern'ent +ith a half-!illion-dollar lia!ility. But according to *el'an, Kaiser is still the 'an +ith the &lan.H Kaiser doesn,t +ant Folyndra,s colla&se to take attention a+ay fro' a 'uch 'ore i'&ortant &ro!le': 'erica,s de&endence on foreign oil.. nd, according to *el'an, this !usiness'an-turned-&hilanthro&ist has found the ans+er. for 'aking energy &olicy +ork.H Kaiser,s ans+er. is largely 'inor @ariations on e7isting so-called green energy &olicies. 'ong the highlights: a fee!ate. on gas consu'&tion that gets redistri!uted !ack to custo'ersI 'ore rene+a!le-sourcing 'andates on utilitiesI and ta7 credits for non-coal &o+er &lants.H "o+J nd you thought the @ery notion of national energy &lanning +as dead.H Kaiser,s @ie+ of go@ern'ent-led energy transfor'ation is 'isdirected. s a successful !usiness'an, Kaiser surely a&&reciates the @alue of the free 'arket in creating real +ealth as deter'ined !y consu'ers. (Fuch has !een called principled entrepreneurship !y fello+ !usiness'an %harles Koch.E ;et most green pro-ects today are -ust thinly veiled

e(ercises in crony capitalism# /nder the guise of an energy revolution& companies are e(tracting massive government favors& while destroying more -obs than are created and misdirecting domestic energy production#H %onsider the facts. -ast year& direct s&ending, ta7 !reaks and &u!lic research funding for rene+a!les totaled K24.4 !illion a 012 increase since 2003#4 5ind power alone took in almost 67 billion in subsidies in 20 0# $hat%s more than a tenfold increase from 2003# Solar energy subsidies -umped si( times over that same three-year period& from 6 38 million to 6 # 9 billion# :nd biofuels subsidies increased from 6; billion to 61#1 billion#4 "orse, green sectors don%t have much to show for all that government cash& particularly
when it comes to -obs#4

Market logic destroys environmental pro-ects <"ler and <bach 2000

(#gu and Brian, %a&italis', Ftate Econo'ic <olicy and Ecological )oot&rint: nH #nternational %o'&arati@e nalysis, Global Environmental Politics, Volu'e =, )e!ruary 011=, 43L2320, 4=-21ME
There has !een 'uch theoretical de!ate on this issue and there is no+ aH gro+ing !ody of e'&irical analyses looking at these :uestions. !ase studies4 have e(amined the way in which state policies and market forces have helped or4 stifled environmental improvements within specific industries .N Some ha@eH found su&&ort for the notion that free 'arket dyna'ics aid in the de@elo&'entH of 'ore sound en@iron'ental &rocesses. )or e7a'&le, $ol found significantH i'&ro@e'ents in the en@iron'ental &erfor'ance of the che'ical industry, H dri@en in &art !y 'arket forces and the increased &rofita!ility associated +ithH 'ore efficient resource use and +aste reduction.6 Other cases

suggest that market4 functioning& unrestrained by the state& has undermined potential environmental4 gains# 5einberg& =ellow& and Schnaiberg analy"e how the consolidation4 of economic power common in market systems undermined the recycling industry4 in one /S city .4 O!ach found contradictory e@idence in his
e7a'inationH of organic far'ing: 'arket forces e7&anded organic &roduction !ut reduced theH ecological !enefits of this a&&roach to agriculture.M These case studies shedH so'e light on the &rocesses !y +hich 'arket acti@ity can hel& or har' &rogressH to+ard en@iron'ental sustaina!ility, yet 'ore co'&rehensi@e :uantitati@e H analysis is needed to @erify the &atterns suggested !y this research.

Environmental pro-ects are manipulated to sustain capitalism +olcombe 20 2

Research Fellow at The Independent Institute, DeVoe Moore Professor of Economics at Florida State Universit , past President of the Pu!lic "hoice Societ , and past President of the Societ for the Development of #ustrian Economics$

(Candall, <resident O!a'a,s Energy <olicy: Dreen Energy, Or %rony %a&italis',. 1N304320,
htt&:33!log.inde&endent.org3012031N3043&resident-o!a'as-energy-&olicy-green-energy-or-crony-ca&italis'3E

<resident O!a'a +as ad@ocating the rene+al of +ind energy ta7 credits to promote green energy# Meanwhile& last week the <bama administration placed a L2O tariff on the i'&ortation of solar &anels fro' %hina# So& is he for green energy& as the wind energy ta( credit would suggest& or against it& as his raising the cost of solar panels indicates> :s components of energy policy these two initiatives appear contradictory& but as crony capitalism& they both make sense# <ne benefits crony capitalists who manufacture wind turbines& +ho ad'it that their !usiness is not econo'ically @ia!le on its o+n# $he other benefits crony capitalists who manufacture solar panels in the /nited States and want to raise the price of competing products# #f +e really +anted 'ore rene+a!le energy, shouldn,t +e !e delighted if the %hinese are +illing to sell us solar
Today &anels at !elo+ their costP That !elo+ cost. clai' is likely not trueQ+hich is too !adQ!ut if it is true, shouldn,t +e !e ha&&y that the %hinese are using their 'oney to su!sidiRe our consu'&tion of solar energy, and unha&&y that our o+n go@ern'ent is taking 'oney out of our &ockets to su!sidiRe the consu'&tion of +ind energyP *o+ can <resident O!a'a fault the %hinese for su!sidiRing their solar &anel industry +hile at the sa'e ti'e su&&orting su!sidies for our +ind tur!ine industryP $ean+hile, as <resident <bama pushes for subsidies that benefit his cronies in the

wind turbine business& many environmental groups oppose the turbines because they kill birds# This article says that while )###the federal government has prosecuted hundreds of cases against oil and gas producers and electricity producers for violating some of :merica%s oldest wildlife-protection laws? the Migratory .ird $reaty :ct and Eagle =rotection :ct&* it )has never prosecuted the wind industry despite myriad e(amples of widespread& unpermitted bird kills by turbines#* *o+ can +e e7&lain these &oliciesP "e &ass !ig
tariffs to kee& chea& solar energy out of the country. "e su!sidiRe +ind &o+er, +hen the industry itself says it sur@i@es only !ecause of this go@ern'ent fa@oritis'. The fa@oritis' to the industry doesn,t sto& there. "e &rosecute other energy &roducers for !ird kills, !ut +e gi@e the +ind industry a &ass +hen they kill 'ore than 21,111 !irds e@ery year. #t doesn,t 'ake sense as energy &olicy. But there is one e7&lanation consistent +ith all these &olicies. "ron capitalism$

!an%t help the environment under capitalismproduction systems are e(ploiting labor resources beyond their means @reenhalgh 2007
(%hristine, "hy does 'arket ca&italis' fail toH deli@er a sustaina!le en@iron'ent andH greater e:uality of inco'es,. %a'!ridge /ournal of Econo'ics, So@e'!er 011=, 43L2320E
From a

long-run social perspective& the labour hours supplied by workers are4 a renewable resource in the production of consumer goods and services but& under4 market capitalism in advanced countries& they are treated as an increasingly scarce4 resource in the design of production systems# Labour scarcity to employers is signalled4 by the rising real wage& which mirrors the rising scarcity of time within a finite lifetime#4 *igh inco'es offer the o&&ortunity for a +ide range of consu'&tion acti@ities, !utH +ith no rise in indi@idual ti'e endo+'ent, and +ith ti'e !eing a necessary in&ut forH al'ost any ty&e of consu'&tion acti@ity, the indi@idual,s &rice of ti'e +ill continue toH rise (-inder, 2=41E.H An contrast to labour services& all types of capital services are derived from4 e'uipment& production plant and tangible intermediate goods that embody elements4 of non-renewable resources& whether in terms of raw materials or energy for their4 construction and transport# An practice& to date there is no market price for the4 consumption of an essential non-renewable resource& the o"one layerBclean air#4 Cather& there is free disposal into the air of much pollution from the e(traction and4 transport of mined products& from energy production& and from the use of fuel for4 general transport& especially in air travel& for which the fuel attracts lower ta(es than for4 land vehicles# +ence all capital products embodying non-renewable resources and4 using free disposal via pollution are supplied at a price below social cost#

Link+egemonyB!ompetitiveness
/S hegemony is a vehicle for 5estern capitalism )ernando Coronil BHHH, To+ards a %riti:ue of Dlo!alcentris': H F&eculations on %a&italis'Ts Sature
htt&:33'use.?hu.edu3?ournals3&u!licUculture3@120320.0coronil.ht'l
Our fa'iliar geo&olitical 'a& of 'odern +orld--defined !y such classificatory de@ices as the three-+orlds sche'e, the di@ision !et+een the "est and the non-"est, and the o&&osition !et+een ca&italist and socialist nations--is !eing redra+n !y a nu'!er of &rocesses associated +ith the hege'ony of neoli!eral glo!aliRation. These include (2E the reco'&osition of te'&oral and s&atial relations through ne+ for's of co''unication and &roduction, (0E the increasing tension !et+een the national !asis of states and the international connections of national econo'ies, and (LE the gro+ing &olariRation of social sectors !oth +ithin and a'ong nations, together +ith the concentration of &o+er in transnational net+orks. s a result of these changes, peoples

and natural resources that have been treated as e(ternal domains to be coloni"ed by capital increasingly appear as internal to it& sub-ected to its hegemonic control . #n accordance +ith the %o''unist $anifestoTs fa'ous antici&ation, capital& mobili"ed by its relentless and tireless dynamics& seems to be melting all solid barriers that have stood in its way& e(panding its reach over our familiar material world& propelling it toward ever more immaterial domains& and sub-ecting all realms under its power to ever more abstract forms of control . $y
ai' is to catch an i'age of ca&italTs e7&ansi@e dyna'ics throughout &lanet Earth as +ell as into cy!ers&ace in order to e7&lore the significance of its e7&ansion for the organiRation and re&resentation of cultural differences.

Link >e nesianism

>e nesianism is 1ust an apolog to the laborers to prevent an anti%capitalist movement /olff 55(H Professor of "cono)ics ")erit+s, University of ;assach+setts ta+ght econo)ics at Cale University (1402114043 and at
the City College of the City University of Ee% Cor6 (1404114233. (Ro(ert, !"cono)ic De)ocracy, Eot B+sterity or >eynesian LGro%thL,,

htt&:33rd+olff.co'3content3econo'ic-de'ocracy-

not-austerity-or-keynesian-gro+th, Bccessed 212112, -?3

>e nesianism is capitalistsD 0lan B when radicali4ed and organi4ed workers demand s stematic entitlement, not charity, and threaten capitalism itself. *n the US d+ring the (-.Hs, successful mass unioni4ation b the Congress of *nd+strial 2rgani*ations and mass radicali4ation b socialist and communist parties built social movements with strong anti%capitalist components. *n response, President Hran6lin Delano Roosevelt E#3,F offered a deal. *nstead of austerit , he would provide +n'recedented government services to people (today 'erha's called a Lgro%thL 'lanF. Ie would establish the $ocial $ecurit and unemplo ment compensation s stems and create and fill over (B million federal 1obs for the +ne)'loyed. Des'ite three ti)es todayMs level of +ne)'loy)ent and a %orse federal (+dget
crisis, HDR f+nded greatly e5'anded govern)ent '+(lic services. J(a)a 'lans to red+ce Social Sec+rity and never )entions a federal hiring 'rogra). Capitalism then faced a powerful threat from belowC today it does not (yet3. #3, funded his

deal b ta&ing corporations and the rich and partl b borrowing from them Ethe lesser evil for themF. ;an of them agreed because the , too, feared the anti%capitalist opposition. #3, persuaded most of the left, in e&change for e&panded state services and 1obs, to downpla anti%capitalism. ;an abandoned @socialism@ as a goalC some redefined it to be what #3, proposed. HDRMs deal (+ilt an alliance that %on fo+r consec+tive 'residential elections. >e nesianism 1 the for)ali*ed theory and 'olicies dra%n fro) -ohn ;aynard >eynesM %or6 in 1430s =ritain 1 developed after #3,Ds deal. *t prompted a revised understanding of the :reat 3epression. 'ttention shifted awa from how anti%capitalist and working%class pressure from below reoriented #3,Ds policies. *nstead, smart economists and astute politicians were depicted using >e nesD @brilliant new economics@ to moderate, manage and e&it capitalist crises. 'fter (-<5, corporations and the rich still supported >e nesian government spending (they feared de'ressionMs ret+rn3, but the got reduced ta&es for themselves. 8hey also got so)e shift in govern)ent e5'endit+res fro) social services to )ore ca'italist1friendly defense and infrastr+ct+ral i)'rove)ents. >e nesians also mostl 1oined neoclassical economists in dismissing ;ar&Ds anti%capitalist economics. CapitalismDs crises, the insisted, were well understood and managed ((y >eynesianis)3. 8hey %ere )ere te)'orary (li's '+nct+ating ca'italis)Ms 'ros'ero+s gro%th. Bnti1ca'italis) %as theoretically o+t)oded and 'olitically s+s'ect in cold %ar ti)es. >e nesian economics was, for enthusiasts, superior to the mainstream orthodo& that had alwa s endorsed austerit policies for crises.
>eynesianis) (eca)e the ne% orthodo5y fro) the 1430s to the 1420s. 8hen, a ca'italist (oo) ret+rned do)inance to neoclassical econo)ics (rena)ed neoli(eralis)3. "ven after the 2002 crisis hit, >eynesians (e.g., Pa+l >r+g)an3 have so far failed to regain 'olicy1 )a6ing do)inance The @great@ debate between neoclassical and >e nesian economists is neither

great nor much of a debate. Both sides endorse, celebrate and defend capitalism. Their @debate@ % between 0lans B and ', more or less government intervention to sustain capitalism % periodicall revives as a substitute for seriousl engaging with critical economic theories, anti% capitalist social movements and their demands for economic democrac . 8he de(ate (et%een a+sterity
and gro%th 'olicies is a sidesho% for the )ain event& ca'italis)Ms %ea6ening (attles %ith its o%n contradictions and %ith loo)ing de)ands for transition (eyond ca'italis) to econo)ic de)ocracy.

>e nesian policies directl support the functioning of capitalism. #ailing economies use >e nesianism to pull themselves out of downturns which enables capitalism to pick up where it left off and prevents action against capital /olff (H (Richard, Jcto(er 23, 2010. Professor of "cono)ics ")erit+s, University of
;assach+setts, B)herst, Blternative Ro+tes, !8he >eynesian Revival, a ;ar5ist Criti<+e, htt'&//%%%.rd%olff.co)/content/6eynesian1revival1)ar5ian1criti<+e, accessed 2.4.2012, >R3
*n the modern histor of capitalism, >e nesian counter%recessionar policies Ebroadl definedF have failed in two ma1or wa s. #irst, those policies have not consistentl succeeded as means to end capitalism"s c clical downturns. The failed, for e&ample, to e&tract the )$ from the :reat 3epression of the (-.Hs. 's this is written, their effectiveness in toda "s global capitalist crisis is questionable. $econd, the promise that has almost alwa s accompanied each application of >e nesian policies ever where that it would also prevent future economic downturns has never et been kept. 8he >eynesian 'olicies have incl+ded varying )i5t+res of )onetary (easing3 and
fiscal (e5'ansionary3 'olicies and )ar6et reg+lations (es'ecially in finance3. 8hey have so)eti)es incl+ded controls on ca'ital flo%s as %ell as s+(sidies, (ailo+ts, and o+tright nationali*ations of 'rivate enter'rises. Different co)(inations of these co)'onents characteri*e >eynesian 'olicies in different co+ntries and at different historical )o)ents. The chief means that actuall ended

capitalism"s downturns have been declines in the following? productive laborers" real wages, finished product inventories, means of production prices, and the associated costs of securing profits Emanagers and other non%productive workers" wages and operating budgets, ta&es, access to credit, rents, etc.F. 2nce those declines sufficed to reach certain thresholds, capitalists could see profit possibilities and so resumed productive investment. 8hat generated )ore or less !recovery, via )+lti'lier and accelerator effects 'artic+lar to each 'lace and ti)e. *n short, capitalism is a s stematicall unstable economic s stem whose c cles are basic features of its normal functioning. >e nesian policies have never basicall altered that s stemic instabilit . >e nesian policies, we propose to argue, have largel provided quite secondar supports to the normal functioning of capitalist c cles. 8hey )arginally )oderate the cycles# a)'lit+de and d+ration. 8hey te)'orarily i)'ose (oth costs and constraints on the 'rofit1see6ing activities of cor'orate (oards of directors. *n these wa s, >e nesian policies successfull bu both political space and time for the capitalist c cle to run through its usual downward phase. *n the current global capitalist crisis, massive >e nesian deficit spending as well as credit%market bailouts have generated huge increases in man capitalist countries" national debts. ?enders event+ally (al6 at f+rther loans to the )ost over1inde(ted nations, de)anding
that they raise ta5es and/or c+t s'ending to <+alify for )ore loans. :f and %hen that 'roves 'olitically i)'ossi(le for lenders to i)'ose on (orro%ing nations, )+ltilateral agencies offer less onero+s ter)s for loan assistance (+t %ith the sa)e de)and for a+sterity conditions.

Those conditions convenientl imposed b others and not the national government all serve to drive down wages and other costs of business and so once again set the stage for the usual capitalist c cle.

>e nesian polic used to distract the public from capitalisms failures. *ncreases worker e&ploitation b increasing 1obs, which prevents a shift awa from capitalism. /olff (H (Richard, Jcto(er 23, 2010. Professor of "cono)ics ")erit+s, University of
;assach+setts, B)herst, Blternative Ro+tes, !8he >eynesian Revival, a ;ar5ist Criti<+e, htt'&//%%%.rd%olff.co)/content/6eynesian1revival1)ar5ian1criti<+e, accessed 2.4.2012, >R3
=esides their secondary role, >eynesian 'olicies also serve an i)'ortant diversionary f+nction. Govern)ents a''ear to (e %or6ing )ightily to !overco)e the econo)ic crisis, (y i)'le)enting those 'olicies %ith great fanfare. The thereb distract publics from et

another repetition of the normal capitalist"s c clical downturn. "5'loding national de(ts, li6e other >eynesian
'olicy 'rogra)s constit+te an ela(orate diversionary 'olitical theater. Bs ca'italist crises dee'en and last, 'oliticians of )ost 'ers+asions increasingly e5'ress concern, co)'assion, and/or anger a(o+t )ass +ne)'loy)ent, ho)e foreclos+res, (an6r+'tcies, 'overty, etc. The

engage in heavil publici4ed debates and legislative contests over the appropriate monetar , fiscal, regulator , subsid , bailout, capital control, and private%enterprise% take%over policies to be e&ecuted b the state. These theatrics usuall absorb the political energies of man left and right forces that might otherwise, separatel or together, make the capitalist s stem itself the ob1ect of opposition, struggle, and transformation. Left%tilting inflections of >e nesian policies often include, for e&ample, direct state subsidies to or hirings of un5underemplo ed workers, controls over private investment flows, and enterprise nationali4ations. ,ight%tilting inflections often include, for e&ample, restrictions on immigration, reduced ta&es on small businesses, and spending on business%friendl infrastructure construction. *n the conte&t of this argument, #igure ( below supports the basic irrelevance of >e nesian policies to the basic contours of capitalist e&ploitation measured roughl b the relation between labor productivit and real wages.R1S Hirst, it covers a long 'eriod of US econo)ic history& (efore, d+ring, and after >eynesian interventions occ+rred in their classic
for) in the 1430s. Hig+re 1 reveals trends for )an+fact+ring, in (oth la(or 'rod+ctivity and real %ages, that sho% no syste)atic sensitivity to either the i)'osition or the negation of >eynesian 'olicies over the last cent+ry. 8he co)'le5 overdeter)inations of real %age and 'rod+ctivity )ove)ents %ere not )+ch infl+enced (y the rise and fall of >eynesian 'olicy regi)es nor (y %hether neo1li(eral/neo1classical econo)ics or >eynesian )acro1econo)ics 'revailed in acade)ic and 'olicy1)a6ing circles. Hig+re 1& (:nde5& 1/40 V 100@ So+rces and details for Hig+re 1& see B''endi53 :ndeed, the relatively laisse*1faire 'eriod (efore the 1430s sa% 'rod+ctivity and real %ages rise )ore or less together, %hereas 'rod+ctivity rose so)e%hat faster than real %ages d+ring the 1430s %hen >eynesian 'olicies %ere i)'osed. Go%ever, in the second half of the 1400s into the 1420s, d+ring a second s'+rt of >eynesian 'olicies (-ohnson#s !Great Society,, etc.3, 'rod+ctivity rose )+ch faster than real %ages. Then, driving home the irrelevance of >e nesian policies to the

productivit %real wage relation, the e&treme laisse4%faire, neo%liberal undoing of >e nesian policies after (-JH then saw the last centur "s most unequal of productivit to real wage ratios. The end of /orld /ar * marks the beginning of a near centur of capitalist growth in the )$ Enotwithstanding the :reat 3epression"s impactF that saw a self%reinforcing divergence between what workers produced for their emplo ers Eproductivit F and what the were paid b their emplo ers for doing so Ereal wagesF. Capitalist c cles punctuated but did not basicall alter that growth pattern.R2S >e nesian policies punctuated but did not basicall alter the c cles, let alone the growth pattern. #or the working classes, the alternation between laisse4% faire and >e nesian polic regimes made little discernible difference in the long%run relationship between labor productivit and real wages. 0ut otherwise, both regimes could and did facilitate growing gaps between productivit and wages over the last half centur , much as earlier both regimes facilitated minimal gaps between them.
:n ro+gh ter)s, the 'rod+ctivity of la(or e5ceeded the real %age in 1/40, the (ase year +sed to co)'+te Hig+re 1 a(ove. 8hat is, in ;ar5ian ter)s, %or6ers 'rod+ced a s+r'l+s for their e)'loyers already then. 8hereafter, that s+r'l+s gre% (oth a(sol+tely and relative to real %ages. ;eas+red in val+e ter)s, the ;ar5ian )etric, the rate of e&ploitation rose as )$ capitalism prospered across

its c cles. 'lternations between >e nesian and laisse4%faire polic regimes, like the accompan ing oscillations of theoretical hegemon between neoclassical and >e nesian economics, were secondar side shows to the main event of rising e&ploitation . *f workers in the )$ hoped that supporting the >e nesian policies of #3,, Truman, >enned , Kohnson, 9i&on and others would alter their basic positions inside )$ capitalism, the were disappointed. Eot%ithstanding their rising real %ages fro) the 1440s to the 1420s and all sorts of 'olitical and c+lt+ral o(f+scations
(a(o+t everyone (eing !)iddle class, or the US (eing a !'eo'le#s ca'italis),3, the %or6ers lived in the gro%ing ga' (et%een their real inco)es and the %ealth of those %ho too6 the lions# share of the s+r'l+ses they delivered to e)'loyers. 8heir acc+)+lating disa''oint)ent

hel's to e5'lain so)e 'eriodic disaffections of %or6ers fro) the De)ocrats. Bfter real %ages sto''ed rising in the late 1420s, %or6ers increasingly defected to even to clearly 'ro1(+siness Re'+(licans (Green(erg 14403. 2. B Criti<+e of >eynesian 8heory#s Revival 8he laisse*1faire (neo1li(eralist3 'hase of ca'italis) that do)inated the %orld econo)y over the last 30 years has crashed. 8hat, in t+rn, has no% challenged the hege)ony of neo1classical econo)ics as the theoretical rationale for cele(rating 'rivate enter'rise and free )ar6ets, 'rivati*ing '+(lic enter'rises, and dereg+lating )ar6ets. >eynesian econo)ics is reviving (S6idels6y 200/3. Bs states every%here again intervene in the L'rivateL econo)y 11 )ore )assively than ever this ti)e 11 >eynesian econo)ics 'rovides )any of the 'rescri'tions and rationales for state econo)ic interventions. Iith revival co)e rene%ed contestations a)ong different inter'retations of >eynes. 8he differences reflect es'ecially long1standing 'ress+res +'on >eynesians fro) (oth the left (those %ho critici*e the) for LsavingL ca'italis)3 and the right (those %ho attac6 the) for LthreateningL ca'italis)3. The most widespread >e nesianism is what

prevails in the treatments b most economics te&tbooks and among advisors to most governments now intervening in their economies to contain and reverse the damages from the current capitalist crisis. 8his inter'retation of >eynesian theory rationali*es state interventions (es'ecially e5'ansionary )onetary
and fiscal 'olicies and financial )ar6et reg+lations3 in an other%ise 'rivate ca'italis). :t re'resents the 'redicta(le first (and <+ite )oderate3 'hase of a >eynesianis) 7+st e)erging after 30 years of neoclassical theory#s near total hege)ony. This >e nesian theor "s

goal is quite clearl to save capitalism from what it understands to be the dangerous consequences of laisse4%faire Eneo%liberalF polic regimes. ;ost 'artisans of another inter'retation, the relatively
ne% variant so)eti)es called Green >eynesianis), %ant traditional )onetary, fiscal, and reg+latory 'olicies redesigned to stress ecological goals (-ones 200/3. The seem, at least implicitl , to offer an alliance, a political deal to the dominant

>e nesians. :reen >e nesians will basicall support the goal of saving capitalism in e&change for a >e nesian polic package that makes capitalism significantl greener. Thus, for e&ample, :reen >e nesians want e&pansionar deficit government spending to favor energ %saving mass transportation, installation of solar energ facilities, etc., while ta& cuts should favor those who undertake pollution reduction, etc.

>e nesianism policies that aim to end economic crisis reestablish capitalism and eventuall collapse the >e nesian policies . /olff (H (Richard, Jcto(er 23, 2010. Professor of "cono)ics ")erit+s, University of
;assach+setts, B)herst, Blternative Ro+tes, !8he >eynesian Revival, a ;ar5ist Criti<+e, htt'&//%%%.rd%olff.co)/content/6eynesian1revival1)ar5ian1criti<+e, accessed 2.4.2012, >R3
8his ;ar5ian theory (egins fro) the historical o(servations s+))ari*ed in this 'a'er#s first 'aragra'h.R S >e

nesian policies have not overcome the capitalist s stem"s inherent instabilities. 9or have >e nesian economists seriousl measured, let alone found wa s to eliminate, the vast and long%lasting social costs of that instabilit . Bs %e no% live thro+gh the second great crisis of ca'italis) in 2 years, %e do 6no% that its
glo(al social costs are again i))ense. =et%een the end of the Great De'ression and the onset of todayMs crisis, the E="R co+nts an additional eleven L(+siness cycle do%nt+rnsL that also generated large social costs (htt'&//%%%.n(er.org/cycles/cycles)ain.ht)l3. So )any large and s)all crises +nderscore ;ar5ian theory#s advocacy of changing the econo)ic syste) as a sol+tion for s+ch crises rather than re'eated oscillations (et%een neoclassical ('rivate3 and >eynesian (state or state1interventionist3 for)s of ca'italis). ;odern society can do (etter than ca'italis). Hro) the stand'oint of this ;ar5ian theory, the fail+res of >eynesian 'olicies 1 and the >eynesian econo)ics that rationali*e the) F flo% fro) their neglect of the )icro1di)ensions of ca'italis). *n short, the unattended contributor to

capitalist instabilit is the relationship inside enterprises between the workers % who produce the surpluses and the emplo ers Ee.g. corporate boards of directorsF who appropriate and distribute those surpluses.R0S Because >e nesian policies impose costs and constraints on emplo ers in their e&ploitative relations with workers and in their competitive struggles within and across industries, those emplo ers have great incentives to evade, weaken or end those >e nesian policies. =eca+se e)'loyers a''ro'riate the s+r'l+ses (and hence the 'rofits3 of enter'rise, they dis'ose of the
reso+rces needed to res'ond 'ositively to those incentives. 8hat is %hat ha''ened to Roosevelt#s 1430s Ee% Deal and %hat has )ore recently (een ha''ening to )+ch of %estern "+ro'ean social de)ocracy (Clayton and Ponst+sson 144/3. :n (oth cases, the e)'loyers +sed the s+r'l+ses a''ro'riated fro) their e)'loyees to )ove their societies (ac6 to%ard a laisse*1faire 'olicy regi)e as soon as they sec+red the 'olitical conditions ena(ling the) to do so.R2S ;acro%level efforts to control and constrain capitalism"s

instabilit failed because of the capitalists" continued appropriation and politicall effective distributions of the surpluses produced inside enterprises. ;ar5ian theory e)'hasi*es ho% e)'loyers#
decisions a(o+t distri(+ting the s+r'l+ses are significantly infl+enced (y the str+ggles (et%een 'rod+cers and a''ro'riators of s+r'l+ses inside ca'italist enter'rises as %ell as (y the co)'etitive str+ggles a)ong the). Gence ;ar&ian theor suggests the

internal transformation of enterprise structures. *nstead of their t pical capitalist structures that split emplo ers from emplo ees, a post%capitalist structure would position workers as, collectivel , their enterpriseDs own board of directors %% ;ar&Ds @associated workers.@ 8he era of
ca'italist e)'loyers (e.g., cor'orate (oards selected (y and res'onsi(le to )a7or 'rivate shareholders3 %o+ld then have co)e to an historic end. 8he ca'italist class str+ct+re of 'rod+ction %o+ld have (een s+'erseded (y s+ch a collectivi*ation of s+r'l+s a''ro'riation inside enter'rises (Iolff 20103. Hor e5a)'le, consider enter'rises ne%ly str+ct+red s+ch that the %or6ers 'rod+ce o+t'+ts in the +s+al %ay ;ondays thro+gh 8h+rsdays, (+t on Hridays, asse)(led in (oth 'lenaries and s+(gro+'s, they )a6e decisions 'revio+sly ta6en (y (oards of directors selected (y ()a7or3 shareholders. 8hat is, the %or6ers de)ocratically decide %hat, %here, and ho% to 'rod+ce and ho% to distri(+te their reali*ed s+r'l+ses. 8hey decide %hen and ho% to e5'and and contract. =+t they do not do that alone. 8hey enter into co1 res'ective 'o%er1sharing agree)ents %ith the local and regional co))+nities %here their 'hysical 'rod+ction facilities are located. 8he %or6ers 'artici'ate in the residential co))+nities# decision1)a6ing 'rocesses and vice1versa.R/S S+ch a )icro1(ased level of socialis) (eco)es the necessary ne% co)'le)ent to the classic )acro1level socialis)s that stressed sociali*ation of )eans of 'rod+ction and 'lanning over )ar6ets. :ndeed, the )icro1 and )acro1levels of socialis) %o+ld then s+''ort and, 7+st as i)'ortantly, constrain one another. ;acro1level 'ro'erty sociali*ation and econo)ic 'lanning %o+ld e)erge fro) and (e acco+nta(le to the )icro1level collectives a''ro'riating the enter'rise1level s+r'l+ses they %o+ld +se to enforce that acco+nta(ility. Bt the sa)e ti)e, the )icro1level enter'rise collectives %o+ld have their 'rod+ction and distri(+tion decisions constrained (y the )acro1level (social3 needs, 'riorities, and 'lanning )echanis)s ('ossi(ly co1e5isting %ith )ar6et )echanis)s3. 8his )icro1level socialis) s+''orts gen+ine de)ocracy inside each enter'rise. :t also creates the 'arallel econo)ic 'artner for de)ocratic 'olitical instit+tions in residential co))+nities. De)ocratic collectivities inside enter'rises and their residential co))+nity co+nter'arts %o+ld henceforth together reach their interde'endent decisions. ?i6e%ise, they %o+ld share their interde'endence %ith )acro1level instit+tions, (oth econo)ic and 'olitical. Toda Ds reviving >e nesianism once again

largel ignores the micro%level issues raised in and b the ;ar&ian criticism and alternative briefl sketched above. ;ost >e nesian programs now aimed to end the economic crisis, if the actuall re%stabili4ed contemporar capitalism, would thereb initiate their own demise. That is, the would then repeat the historical pattern of oscillating back to a laisse4%faire capitalism. The ;ar&ian alternative program that included the micro%level transformation of production sketched above would break, finall , from the repeated oscillations between private and state%interventionist capitalisms and the unnecessar social costs of capitalism"s instabilit .

Link , =ostmodernB!ritical :ffs

$he affirmative re-ection of binaries normali"es capitalist relationships of ownership , we must affirm binaries to understand that all social structures are determined by a fundamental division between those that sell their labor power and those that purchase it# $he affirmatives alternative results in a class pluralism that makes it impossible to understand these divisions# Ebert and Davar"adeh in 2000(Teresa -., English, Ftate Vni@ersity of Se+ ;ork, l!any, $as,ud,
&rolific +riter and e7&ert on class ideology, %lass in %ulture., &. 2N-2ME An materialist theory& class is constructed at the point of production which, a'ong other things, means it is based on labor relations in history. "ith the rise of &ri@ate &ro&erty, o+nershi& of the 'eans of &roducing co''odities+hich e'!ody sur&lus la!or-ena!les so'e to e7&loit the la!or of others. $he materialist theory of class is, therefore, a binary theory? it argues that people in class societies are divided between those who sell (or are forced to give freeE their labor power to live& and those who purchase Eor appropriate by forceF the labor =ower of others and profit from it. #n their Multitude, $ichael +ardt and ntonio Gegri call the classical materialist theory a HunityH theory and &lace it in opposition to HpluralityH theories of class that Binsist on the inelucta!le 'ulti&licity of social classesB (21LE. #n their usual 'anner, they take an eclectic path out of the binary #and write Hthat both of these seemingly contradictory positions are true should indicate that the alternative itself may be falseH (214E. #n the end they, like Ierrida& formally concede that class is indispensable for understanding the social EDerrida, B$ar7 W FonsBE, but at the sa'e ti'e they undermine its very materialist possibility& which is the only possibility that actually matters# *ardt and Segri de'olish
class, in other +ords, not !y gi@ing u& class--in fact they say that the B'ultitudeB is a class conce&t (l1LX-!ut !y the in@ersion of class fro' an econo'ic category to a &olitical conce&t: B%lass is deter'ined !y class struggleB(l14E. #t is not the 'aterialis' of the relations of &ro&erty that &roduce classes, +hich in turn start class struggleI instead the

sub-ectivity of people lead them to struggle and

through that struggle form classes (21L-214E. *ardt and Segri actually find that Bthe old distinction !et+een econo'ic and &oliticalB is an o!stacle to understanding class relations (21NE. Their dismissal of the binary, here and in their class theory, is in &art based on GegriJs call for a Hpost-deconstructiveH ontology (BThe F&ecterTs F'ileB 20E, which implies that the binaries are undone by a capitalism that travels on the Anternet. Thus, they can no longer account for its singularities +hich constitute not only its cultural &ractices !ut also its class for'ations. $here are as many singular classes as there Jare class struggles& and there are as many class struggles as there are sub-ectivities# %lass, for *ardt and Segri, is an effect of the 'ultitude +hich is Ban irreduci!le 'ulti&licityI the singular social differences that constitute the 'ultitude 'ust al+ays !e e7&ressed and can ne@er !e flattened intoT sa'eness, unity, identity, or indifferenceB (21NE. !lass in the new capitalism is another name for singularity which is the undoing of the collective. Vsing different languages, the contemporary discourses on class repeat this narrative in which the classical materialist binary theory of class is represented as essentialist and in need of deconstruction# <ne of the most influential criti'ues of binary class theory& as +e ha@e already indicated, is by /ac:ues Ierrida, whose general theory of class and s&ecifically his deconstruction of binary class theory we will discuss and criti'ue at several points in this book. *ere, ho+e@er, +e +ould like to outline +hat is often called the Bclass-as-&rocessB theory and &oint to its underlying logic and class &olitics, $he class-as-process theory is the +ork of Fte&hen . Cesnick and Cichard D. "olff +ho, in their ground!reaking !ook Knowledge and Class, criti'ue the Hdichotomous theory of classH (220E for its determinism and foundationalism (21=-26LE and propose an anti-essentialist and HoverdeterminateH (# 24, 226E class theory situated in the multiple processes involved in the e(traction and distribution of surplus labor# Their @ie+s are reinter&reted under the strong influence of &oststructuralist
social theory !y /. K. Di!son-Draha' in The End of Capitalism as we !new it" (4=-N6E, +ho re&eat their argu'ent for a theory of class B+ithout an essenceB (NNE. "e lea@e aside here ho+ their @ersion of antiessentialis', like all other @ersions, colla&ses and !eco'es a ne+ essentialis' in +hich a trans-historical notion of sur&lus la!or !eco'es the foundation of a ne+ &ro-ca&ital social theory. Since

class-as-process theory views class as an effect of Hproducing and appropriating surplus laborH EN0E, and because in all societies surplus labor is produced and appropriated& class-as-process theory makes class the

immanent feature of all societies throughout history (NME, E@en in such societies as early co''unis' and &ostca&italist socialis', in +hich the social sur&lus la!or &roduced is a&&ro&riated not !y &ri@ate o+ners !ut !y society as a collecti@e, there is class according to this @ie+. $here is no outside to class-- ever& anywhere. %lass-as-&rocess is a rather crude translation of lthusserTs &ost-class theory of ideology into class theory. )or lthusser ideology is not a Bfalse consciousnessB !y +hich the e7change of la!or &o+er for +ages is seen as !eing a fair e7change. #nstead, he +rites that ideology is Bthe i'aginary relationshi& of indi@iduals to their real conditions of e7istenceB #enin and Philosoph$ %&'"( #deology for lthusser, +ho dra+s on -acan and )reud for his 'ain conce&ts, is !asically a theory of su!?ecti@ity (241-244E. This is another +ay of saying that, for :lthusser&

Hideology has no historyB (2N=E !ecause Bhu'an

societies secrete ideology as the @ery ele'ent and at'os&here indis&ensa!le to their historical res&iration and lifeB )or Mar* 0L0E. Fi'ilarly, for

@ibson-@raham& class is an organic part of all societies and not a specific historical stage in them The End of Capitalism NM-N=E. ll societies, they contend, secrete class. @iven their affirmation that capitalism is here to stay (06LE, it would be Hunrealistic,B to use Di!son-Draha'Ts +ord, to struggle to end class rule# $he practical thing to do is to learn to live with it. %onse:uently, the 'ark of an acti@ist agency in the class-as-&rocess theory is
not a 'ilitancy to o@erthro+ class !ecause that re:uires a re@olutionary act, +hich they clai' is Bout'odedB The End of Capitalism 06LE. #nstead,

they call for an intervention in the homogeneity of class to make it heterogeneous and plural (N0, NME. %lass staysI its 'odalities and for's 'ulti&ly (N0, NMF# $his view of class& which is represented as cutting edge (Di!son-Draha', + Postcapitalist Politics 2-02,66-6M,=1-=0E, is interesting not because of its arguments but mostly for what it says about the way the Left in the global Gorth has accommodated and normali"ed the class interests of capital. The goal of class-as-&rocess, for e7a'&le, as Di!son-Draha' state, is not to
Beradicate all or e@en s&ecifically ca&italist for's of e7&loitationB !ut to contri!ute to Bself-transfor'ati@e class su!?ecti@ityB-and change the e'otional co'&onents of e7&loitation (NLE. s al+ays, there is 'ore#

!lass-as-process is a discursive device for disSolving what Mar( calls Hthe antithesis between lack of property and property#H *e argues that this
antithesis Bso long as it is not co'&rehended as the antithesis of la!our and ca&ital, still re'ains an indifferent antithesis, not gras&ed in its active connection, in its internal relation, not yet gras&ed as a contradiction, Economic and Philosophic Manuscripts of 2M44,0=L-=4E. @rasping

this contradiction is grasping the binary theory of class and reali"ing that class is a relation of owning? the owning of labor by capital# s such, it is the other of human freedom because it is grounded in the e(ploitation of humans by humans-private property is the congealed alienated labor of the other. /sing the epistemological alibi of anti-essentialism& class-asprocess obscures the constitutive role of private property (o+nershi& of the 'eans of &roductionE #n the construction of class di@isions. Thus, in the name of opposing economism& At actually protects the economic interests of capital? Bclass in our conce&tion is o@erdeter'ined, rather than defined !y &ro&erty o+nershi& and other sorts of social relationsB (Di!son-Draha', The End of Capitalism 24=E. =rivate property& they contend& is only one of many factors that make class (NN, 24=E, and it is no 'ore significant in this construction than, for e7a'&le, Baffects and e'otionsB + Postcapitalist Politics 2-02E. .ut private property is the sensuous He(pression of estranged human life&H and class is its concrete effect in the every day# H$he &ositi@e transcendence of private property as the appropriation of human life is therefore the positive transcendence of all estrangementthat is to say the return of man from religion& family& state& etc# to his human, i#e# social, e(istenceB ($ar7, Economic and Philosophic Manuscripts of - M44, 0=4E. Ending the contradiction of the binary of property and propertyless is the end of class and the end of alienation? it is the beginning of human freedom from necessity. !lass-as-process naturali"es private property and the estrangement of humans- from their work& fro' others and fro' the'sel@es-!y 'aking class the &lural effect of Bthe intersection of all social di'ensions or &rocesses-econo'ic, &olitical cultural, naturalB (Di!son-Draha', The End of Capitalism NNE. .y plurali"ing class& the class-as-process theorists undermine the importance of private property in constructing class relations and thus absolve capital- whose history is a history of accumulation of private property and is Hdripping from head to toe& from every pore& with blood and dirtH ($ar7, Capital #, =06E. <ther critics, +ho argue class has !eco'e irrele@ant to conte'&orary society, claim that, o+ing to changes in technology and structural transfor'ations in . ca&italis', the differences within classes have so proliferated they have e(ceeded the differences between classes& thereby making the binary labor theory of class obsolete# These @ie+s go e@en further and state that the @ery &re'ise of hinary theories of class-na'ely, &ri@ate o+nershi& as deter'ining class relations- has lost its significance in sha&ing class relations. 5e live& they argue& in postproperty times in which property has been displaced by access (Cifkin, The +ge of +ccess"( $he increasing differences within classes, ho+e@er, do not demolish the binary class structures under capital. $he

Hdifferences that flourish within classes&H as /ohn OTSeill argues, Hdo not challenge but even confirm the differences between classes# =overty is colorless and genderless however much it marks women and racial minoritiesB (BOh, $y Others, There #s So OtherJB M2E.

Antellectuals on the left have been critical in normali"ing the economic structure of capitalism while critici"ing the te(tures and contours of the system , they preclude the fundamental reality that all social dynamics rely on the mode of production and not the other way around# Ebert and Davar"adeh in 2000(Teresa -., English, Ftate Vni@ersity of Se+ ;ork, l!any, $as,ud,
&rolific +riter and e7&ert on class ideology, %lass in %ulture., &. L6-LME $he cultural activism of capital against labor, ho+e@er, was not limited to conservative thinkers# At also energetically recruited Left intellectuals and Hsocialists of the heart.B The defense of free enter&rise fro' the -eft has al+ays !een of great cultural @alue to ca&italis'. 5hen Left intellectuals defend the market directly-in the guise& for e(ample& of Hmarket socialismH Mar!et .ocialism/ The 0ebate among .ocialists, ed. Oil'anI 1h$ Mar!et .ocialism2 3oices from 0issent, ed. Coose@elt and BelkinE--or denounce the enemies of capital as totalitarian& as violators of human rights& and for repressing the play of cultural meanings and thus singularity and heterogeneity (e.g., Fidney +ook, E'esto Laclau, /ean-)rancois Lyotard, /ac:ues IerridaE, their discourses seem more authoritative and sound more credible coming from the supposed critics of capital than do the discourses of conservative authors# To &ut it &recisely: the Left has been valuable to capitalism because it has played a double role in legitimating capitalism# At has critici"ed capitalism as a culture& but has normali"ed it as an economic system (e.g., DeleuRe and Duattari, +nti45edipus/ Capitalism and .chi6ophrenia7 Dunco'!e, ed., Cultural 8esistance 8eader7 Kraus and -otringer, eds., 9atred of Capitalism"( At has complained about capitalismJs so-called cor&orate culture, but has normali"ed it as a system of wage-labor that is grounded on e(change-relations and produces the corporate culture. $he normali"ation of capitalism by the Left takes many forms, but all involve the -ustification of e(ploitation& which the Left represents as redemptive# $hey are all versions-+ith @arious degrees of conce&tual co'&le7ity- -of Sicholas D. KristofJs argument in his B#n =raise of the Maligned Sweatshop.B +e writes that the s+eatsho&s in frica set u& !y ca&italists of the Sorth are in fact Bo&&ortunitiesB and ad@ises that Banyone who cares about fighting poverty should campaign in favor of sweatshops.B *is argu'ent is su''ed u& !y t+o sentences &rinted in !oldface and foregrounded in his essay: H5hatJs worse than being e(ploited> Got being e(ploited B The :ew ;or! Times, 6 /une 0116, -02E. 5hat has made this dou!le role of &ost+ar -eft +riters so effective for capitalism is the way their inno@ati@e writing, unorthodo7 uses of language& and ca&ti@ating arguments have generated intellectual e(citement. /ean-<aul Sartre, Theodor :dorno& /ean-)rancais Lyotard, /ac:ues Ierrida, /udith .utler, /ean .audrillard, /ac:ues Lacan, $ichel Loucault, Dilles Ieleu"e, Diorgio :gamben, Fla@o? Di"ek, and Ftuart +all, to na'e the 'ost fa'iliar authors, have each used :uite different, but still intellectually intriguing idioms, to de-historici"e capitalism. #n highly su!tle and nuanced argu'ents, they have translated capitalismJs :uthoritarian economic practices-+hich :uietly force +orkers to concede to the e7&loitation of their la!or-into cultural values of free choice and self-sovereignty (at the sa'e ti'e that they :uestion traditional su!?ecti@ityE. $heir most effective contributions to capitalism and its economic institutions have been to represent capitalism as a discursive system of meanings and thus divert attention away from its economic violence to its semantic transgressions-its homogeni"ing of meanings in, for e7a'&le, &o&ular culture or its erasure of difference in cultural lifestyles. $hey ha@e critici"ed capitalism, in other +ords, for its cultural destruction of human imagination& but at the sa'e ti'e, they have condoned its logic of e(ploitation by dismantling al'ost all the conceptual apparatuses and analytics that offer a materialist understanding of capitalism as an economic system . $ore s&ecifically, they have discredited any efforts to place class at the center of understanding and to grasp the e(tent and violence of labor practices. They ha@e done so, in the na'e of the Bne+B and +ith an ecstatic ?oy !ordering on religious Real (Conell, The Telephone

<oo!7 Ftrangelo@e, The Empire of Mind/ 0igital Pirac$ and the +nti4Capitalist Movement7 Di!son-Draha', + Postcapitatist Politics"( Left

thinkers& for e7a'&le& have argued that HnewH changes in capitalism-the shift, they clai', from production to consumption-have triggered Ha revolution in human thought around the idea of JcultureH which, under ne+ conditions, has itself become material& Hprimary and constitutiveH (*all, BThe %entrality of %ultureB 001, 02NE, and is no longer secondary and dependent on such outside matters as relations of production. %onse:uently, *all and others have argued that the analytics of baseBsuperstructure has become irrelevant to sociocultural interpretations because the HnewH conditions have rendered such concepts as ob-ectivity& cause and effect& and materialism 'uestionable# B$he old distinctionB between Hecono'ic JbaseJ and the ideological JsuperstructureB therefore can no longer be sustained because the new culture is +hat )redric /a'eson calls HmediaticB Postmodernism 6ME. ccording to *all,
B'edia !oth for' a critical &art of the 'aterial infrastructure ... and are the &rinci&al 'eans !y +hich ideas and i'ages are circulatedB (*all 01=E . . . The logic of *allTs argu'ent is o!tained !y treating the B'aterialB as 'aterialist. $edia, ho+e@er, are B'aterialB only in a @ery tri@ial sense, they ha@e a !ody of 'atter, and are a 'aterial @ehicle (as a B'ediu'BE, !ut media of 'aterialis' !elo+, they

are not HmaterialistB !ecause, as +e argue in our theory do not produce HvalueH and are not Hproductive#H $hey distribute values produced at the point of production. The un-said of *allTs clai' is that production and consumptionBdistribution are no longer distinguishable and more significantly& labor has itself become immaterial-+hich is no+ a &o&ular tenet in the cultural turn (*ardt and Segri, Multitude"( But, e@en <aul Tho'&son, +ho is not +ithout sy'&athy for the tu' to culture, argues that Hlabour is never immaterial# At is not the content of labour but its commodity form that gives JweightJ to an ob-ect or idea in a market economy&H and, he adds, 5hile it is true that production has been deterritorialised to an e7tent, network firms are not a replacement for the assembly line and do not substitute hori"ontal for vertical forms of coordination. Set+ork fir's are a ty&e of e7tended hierarchy, !ased, as *arrison o!ser@es, on concentration +ithout centralisation:
T&roduction 'ay !e decentralised, +hile &o+er finance, distri!ution, and control re'ain concentrated a'ong the !ig fir'sT #ean and Mean/ The Changing #andscape of Corporate Power in the +ge of )le*ibilit$, 2==4: 01E. Anternal

networks do not e(ist independently

of these relations of production# and for's of coo&eration, such as tea's, are set in 'otion and 'onitored !y 'anage'ent rather than s&ontaneously for'ed. (B)oundation and E'&ire: %riti:ue of *ardt and SegriB M4E Celations of production have shaped and will continue to shape the cultural superstructure# !hanges in its phenomenology- the te7tures of e@eryday lifestyles, +hether one listens to 'usic in a concert hall, on the radio, or through an i<od-should not lead to postmodern 9ui7otic fantasies about the autonomy of culture from its material base YE!ert, Cultural
Criti=ue with an attitude">( s $ar7 +rites, the $iddle ges could not li@e on %atholicis', nor could the ancient +orld on &olitics. On the contrary,

it is the manner in which they gained their livelihood which e(plains why in one case politics& in the other case !atholicism& played the chief part .... nd then there is Don Mui(ote who long ago paid the penalty for wrongly imagining that knight errantry was compatible with all economic forms of society. ($ar7, Capital l, 246E.

$he cultural turn evoked by )post-strategies* attempts to break part any material analysis through the use of discursive analysis , despite their attempts to incorporate materialism it remains culturalist and stuck within the paradigm of capitalism# Ebert and Davar"adeh in 2000(Teresa -., English, Ftate Vni@ersity of Se+ ;ork, l!any, $as,ud,
&rolific +riter and e7&ert on class ideology, %lass in %ulture., &. 04-0=E On the theoretical le@el, the attacks on labor focused on the material logic : the :uestion that Fu'ner *. Flichter had
raised, na'ely that the V.F. +as Bshifting fro' a ca&italistic co''unity to a la!oristic one-that is to a co''unity in +hich e'&loyees rather than !usiness'en are the strongest single influence.B $his

second cultural front developed new arguments for the legitimacy& permanence& and transhistorical moral and social authority of capitalism as an economic regime that +as seen as the condition of &ossi!ility for hu'an freedo'. This is +hat, for e7a'&le, ). . *ayekTs +ritings did.
Sot only did they &ro@ide the grounds for a Seoli!eral econo'ics that 'arginaliRed Keynesianis', !ut they also offered an ethics and a &hiloso&hy for ca&italis' (The )atal %onceit: The Errors of Focialis'E. #n a su!se:uent 'o@e, post-theory (B&ostB as in &ostcolonialis', &ostrnar7is', &oststructuralis', etc.E translated

Geoliberal economies into a new philosophy of representation that

made discourse the primary ground of social reality. Discourse +as not si'&ly a Bte7tB in its narro+ sense !ut the ense'!le of the &heno'ena in and through +hich social &roduction of 'eaning takes &lace, an ense'!le that constitutes a society as such. $he discursive is not. therefore, being conceived as a le@el nor e@en as a di'ension of the social, !ut rather as being coe(tensive with the social.. .. There is nothing s&ecifically social +hich is constituted outside the discursi@e, it is clear that the nondiscursi@e is not o&&osed to the discursi@e as if it +ere a 'atter of BT2T1 se&arate le@els. *istory and society are an infinite te7t. (-aclau, B<o&ulist Cu&ture and DiscourseB M4E !lass

in post-theory was turned into a trope whose meanings are wayward and indeterminate-a metaphor for a particular language game (/enks, %ulture 4E. $his move has demateriali"ed class by hollowing out its economic content and turning its materialism into Ha materiality without materialism and even perhaps without matterB (Derrida, BTy&e+riter Ci!!onB 0M2E. $his de-'aterialiRing has taken place through a network of HpostB inter&reti@e strategies? Such as HdestructionB (*eidegger, The Basic <ro!le's of <heno'enology 00- 0LEI HdeconstructionH (Derrida, B-etter to a /a&anese )riendBEI Hschi"oanalysisH (DeleuRe and Duattari, nti-Oedi&us: %a&italis' and FchiRo&hrenia 04L-LM0EI Hreparative readingH (Fedg+ick, Touching )eeling 20L-2N2E, Hcultural logicH (/a'eson, <ost'odernis' or, the %ultural -ogic of -ate %a&italis'EI HperformativityH (Butler, Dender Trou!leEI Himmaterial laborH (*ardt and Segri, $ult#tudeE, and Hwhatever (:ualun:ueEB ( ga'!en, The %o'ing %o''unityE. $he goal of both the populist and the theoretical campaigns against the labor movement-+hich ca&ital often referred to as Bsocialistic sche'esB ()ones- "olf N0X---has been the blurring of class lines by depicting class antagonisms as cultural differences& and to &ersuade &eo&le that, as "allace ). Bennett, chair'an of the Sational ssociation of $anufacturers &ut it, H5e are all capitalistsH (:uoted in )ones-"olf 41-4LE. #n other +ords, as far as capitalism is concerned& there are no class differences in the /#S# and what makes people different are their values& lifestyles& and preferences# 5e call this obscuring of class relations by cultural values and the play of language the Hcultural turn#H The ter' Bcultural turnB is often used to designate a T&articular 'o@e'ent in social and cultural in:uiries that ac:uires analytical authority
in the 2=41s and is e7e'&lified !y such !ooks as *ayden "hiteTs $etahistory and %lifford DeertRTs The #nter&retation of %ultures , !oth of +hich +ere &u!lished in 2=4L. "hite descri!es history +riting as a &oetic act and a&&roaches it as essentially a linguistic (tro&ologicalE &ractice ($etahistory i7E. $he

view of history and social practices as poiesis-+hich is 'ost &o+erfully articulated in *eideggerTs

+ritings and is re-+ritten in @arious idio's !y di@erse authors fro' %leanth Brooks through /ac:ues Derrida to Diorgio ga'!en- constitutes

the interpretive logic of the cultural turn. DeertRTs argu'ent that culture is a se'iotic &ractice, an ense'!le of te7ts (#nter&retation of %ultures L- L1E, canoniRes the idea of culture as +riting in the analytical i'aginary. $he cultural tum is associated by some critics with the social movements of the 810s and 830s& +hose cultural acti@is' they assu'e
energiRed re!ellion against BscientificB social and cultural in:uiries and ushered in the cultural tu' +ith its linguistic reading of culture and e'&hasis on the su!?ecti@e (Bonnell and *unt, ed., Beyond the %ultural Turn 2-L0E. <ther

critics have also related the cultural tum to the radical activism of the post- 810 era and to postmodemism as well as to a tendency among radical intellectuals& as -arry Cay and ndre+ Fayer &ut it, to approach language no longer as reflecting Hmaterial beingH but to read it (in *eideggerTs +ordsE as the Hhouse of beingH (%ulture and Econo'y after the %ultural Turn #E. $hese and si'ilar e(planations of the cultural tum are insightful in their own terms. *o+e@er, Htheir own termsH are not only historically narrow but are conceived within the very terms that they seem to criti'ue? they are& in other words& accounts of the cultural tum from within the cultural tum. s a result, in spite of their professed interest in material analysis& their interpretations& like the writings of the cultural tum& remain culturalist# $hey too analy"e culture in cultural terms-that is, immanently. !ulture cannot be grasped in its own terms because its own terms are always the terms of ideology# $herefore to understand culture& one needs to look Houtside.B