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 • The capitalist welfare state

Posted by keza at 2006-12-01 03:53 PM
I'm starting this new thread in response to quiksilverhg's request for one. 

 In response to David Mc's comment ( see p 3 of the "Iraqi voting disrupts new reports of bombings" thread )

While supporting Bush's efforts in Iraq we should not forget to credit him for his other major project, namely weakening the momentum of conservative forces in the US.

First there is his total failure to implement the conservative agenda of those who got out the votes for him in 2000 and 2004.
quiksilverhg wrote:


I'm curious what parts of the 'conservative' agenda you are opposed to? As a conservative I see the greatest failings as comprehensive tax reform, reduction of the entitlements in the government, and social security reform.  There's also the failings in border security, and his poor communications but those aren't really liberal/conservative issues.

The former and the latter he attempted, but was not successful at.  I can see you being opposed to the first since it would mainly involve eliminating/reforming/changing the progressive income tax; but why are you opposed to reducing entitlements and reforming/fixing social security? I actually see these traditionally conservative goals as actually better preparing the population for the eventual transformation you guys are looking for.

The entitlement mentality (welfare, medicare, social security etc.) obviously is an obstacle to the type of societal duty that you are hoping will somehow be imbued in every person once your system takes over.  Welfare obviously makes people think that they are entitled to a living wage whether they work or not; if it is your goal to have EVERYONE take out the garbage (as presented in another thread, for the few jobs of that type that still exist) then how are you going to get people to do that if they feel they should get paid whether they work or not.

Social security reform is a no-brainer the way I see it.  The way it is right now the system WILL go into bankruptcy at some point; therefore it WILL need to be reformed at some point AND the longer you wait, the more radical the reformation will have to be.  The alternatives here are pretty much to cover your ears and scream NO NO NO like the democrats here have done; or you can acknowledge that there is a problem and try to make sure that my generation will have something when we get to retirement age.

This seems like a good topic for a new thread if one of the admins wants to open one up.
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 • Re: The capitalist welfare state

Posted by quiksilverhg at 2006-12-04 03:41 PM
Essentially this is an argument about what is closer to the system you envision; socialism or capitalism?

In socialism there is a core of VERY rich people that the socialists need to draw the taxes from...in America the top 1% or so of the population pays more than 33% of the taxes.  I'm sure those type of statistics would be more startling in some of the more socialist countries due to the steeper progressive taxes there; but I may be wrong.

Even assuming that the tax rates were nearly uniform you still have the vast majority of the taxes (taken from those who work) going to those who do not work; or do not work as hard; or didn't educate themselves.  Furthermore the more successful a person is (either through hard work or entrepreneurship) the higher % of their income they need to pay in taxes; in effect PUNISHING hard work and innovation.

This also allows (if not encourages) those who do not work for whatever reason to continue to not work.

The society you have described as I understand it requires every person to desire to achieve merely for the sake of achievement.  Which is closer to that; a system in which you are PUNISHED for achievement; or a system in which you are REWARDED for achievement.
Think of how you train an animal; you associate positive behavior with a reward; eventually the animal associates the behavior as good even when the reward is removed.  Certainly that's a simplification; but the point still stands.
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 • Re: The capitalist welfare state

Posted by keza at 2006-12-05 09:17 PM
Some sort of welfare system is a necessity under capitalism because it's a system which requires a pool of unemployed - and of course a subsection within that group tends to become helples, hopeless and permanently unemployable (rather than being recycled back into the workforce when the opportunity arises). In complaining about the economic and social consequences of the welfare system you are really complaining about the inherent inefficiency of capitalism.  It's a system which (a) can't normally offer full employment and (b) leads to low motivation (and these two things are connected).

I'm certainly aware of the terrible social effects of what has been called "passive welfare" in which people (often generation after generation) remain outside the workforce living on government handouts (gradually becoming part of what Marx termed the "lumpen proletariat").  It seems possible to do something about the passive welfare problem (at least for some groups) under capitalism. You might be interested to read what Noel Pearson has written about the impact of welfare on some Australian Aboriginal communities in an article entitled Our Right to take Responsibility.  However in the broader sense I would see welfare as an intrinsic part of  capitalism. Although it stops people from starving to death, it also keeps them down.   It's a reason for wanting to overthrow capitalism  and create a system in which everyone can be productive and no-one requires handouts.

The pesudo-left mentality of calling for more and more welfare and effectively pushing the idea that an ideal society would be one in which a benevolent government just looks after everyone rather than one in which  people  must take on the responsibility  for running things themslves is of course a no brainer.

You wrote:


The society you have described as I understand it requires every person to desire to achieve merely for the sake of achievement.  Which is closer to that; a system in which you are PUNISHED for achievement; or a system in which you are REWARDED for achievement.
Think of how you train an animal; you associate positive behavior with a reward; eventually the animal associates the behavior as good even when the reward is removed.  Certainly that's a simplification; but the point still stands.

Yes you are correct, of course a society in which people were punished for achievement would fail. What I am arguing for is a society in which  achievement  is rewarded  far better than it is rewarded under capitalism.   Most people under capitalism have very little sense of wanting to do their best in their work places  because the rewards offered there are so meagre.  People always work hardest on their own projects rather than for their bosses  In this society people will put an enormous amount of effort into renovating their houses, looking after their own immediate family, helping at the local school, contributing in crisis situations such as natural disasters.  When it comes to their paid employment however, we see far less effort and enthusiasm.

The difference between the two situations is that when working on one's "own projects" there is a real sense of achievement and usefulness - and that is very rewarding.  If the whole society was seen as something which people owned, took responsibility for and wanted to improve,  then I think we would see people becoming far more keen to work hard. They would be doing this not because they were "selfless" and full of pure altrusim but because they would experience this as personally rewarding.

Of course the transiton from the current situation to one in which people were motivated because they had a sense of ownership over the new society wouldn't be easy.  Purely monetary motivation would have to be provided for in many areas initially.  I don't regard myself as qualified to propose exactly how it would be done.  Here I'm just attempting to point out that even within capitalism we see that many people are highly motivated to work their hardest on projects in which they feel empowered and over which they feel ownership.  If we want to unleash people's true capacities we have to think in terms of building a society based on people wanting to (and enjoying) the idea of standing up and taking responsibility.

The welfare system has the opposite effect. It keeps people dependent, child like and irresponsible.  But its an intrinisc part of a system based on wage labour. Capitalism needs it.
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 • Re: The capitalist welfare state

Posted by Cyberman at 2007-05-21 02:48 AM

Keza writes:

"But its an intrinisc part of a system based on wage labour. Capitalism needs it."

If so, and the welfare state is a creation of the capitalist class, why does it vary between non-existent in some capitalist countries to well deveoped in others?

There is another way of looking at this which is terms of the "social wage". The social wage consists of a package of benefits including  education,  health care,  legal aid,  libraries, subsidised public transport, housing  etc.  Of course the political right try to minimise the cost of the social wage to keep taxes down, and profits up, whereas the political left push to maximise the social wage and emphasise the egalitarian nature and wealth sharing aspects of it.

Where the workers movement is strong, eg Western Europe,  the social wage tends to be higher. Where it is weak, eg the USA, the social wage is lower, the social wage being essentially a product of the class struggle. In recent years, in many countries, the capitalist class has been on the offensive and the social wage has been eroded. When I was a youngster, I paid nothing for education, in fact I was paid to study. I also paid nothing for  health care. That is no longer the case for the present younger generation even though the level of production and profits is much greater now than it used to be.

Michael Moore has just released an interesting film "Sicko" on the lack of socialised medicine in the USA. What is the LS position on socialised medicine? Are you in favour of it? Is it worth fighting for as a class issue?

 

 

 

 

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 • Re: The capitalist welfare state

Posted by dalek at 2007-05-21 07:57 PM

Cyberman, I think there would be general agreement that the "welfare state" arose after the second world war that armed the workers in most countries. The ruling class was terrified and made big concessions to buy off the possibility of revolutionary overthrow.

 

Now that the ruling class no longer sees a threat  from any form of organised working class we are rapidly returning to the 19th century.

 

Imperial adventure is on the go again, but now the Imperialists hide behind a "democratic" smokescreen where once the "white mans burden" sufficed.

 

The same system of imperial rule exists now as it has for millenia; for example: on this day the supine Government of Australia paid a tribute to its Imperial masters by giving them control of the "future fund" - make what you will of that.

 

Dalek.

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 • Re: The capitalist welfare state

Posted by Cyberman at 2007-05-21 08:07 PM

PS I meant to say something about unemployment benefit, which is also part of the social wage. This is probably one area where I do agree with you, to some extent. It can lead to a cycle of dependency if workers stay on long term benefits for too long. Its a difficult problem and you are probably right in saying that the capitalist class do need a pool of unemployed. I think that Comrade Tomb said in one of his postings that there wouldn't be any work after the revolution! For most people there would be less work, but for some people there would be more , because everyone would be expected to contribute according to their abilities,  and shirkers would not be tolerated.

I don't agree with you about workers not wanting to do their best in their jobs though. It's been my experience that people, with very few exceptions,  only behave badly at work when they themselves are treated poorly.

PS I'm definitely not the same person as Dalek or Davros.

I don't want to hide behind a pseudonym. My name is Peter Martin

email address peter_martin_2001@hotmail.com

 

 

 

 

 

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Posts: 412

 • Re: The capitalist welfare state

Posted by youngmarxist at 2007-05-25 04:03 AM
Cyberman said on the "Socialised Medicine" thread:
 You've opened up a new thread but I would have thought that that this could fit into the 'capitalist welfare state thread'. Not that I agree with the title. My line on all this is that the welfare state, for all its faults, is essentially the creation of the left and the principle of socialised medicine is no different.

and also on this thread:

 I don't agree with you about workers not wanting to do their best in their jobs though. It's been my experience that people, with very few exceptions,  only behave badly at work when they themselves are treated poorly.

To the first point, I would say that, even though it seems fairly clear that the modern welfare state was erected due to fear of the working class, it still exists in the capitalist system and to serve the needs of the ruling capitalist class. It was not erected to help make the working class more powerful and encourage them to take over society. It was erected to safeguard capitalism by removing pressures that the working class would no longer tolerate.

It was not erected 'by' the working class (except in the sense that everything is built by the workers). The decision to build the welfare state, was taken by social-democratic influenced politicians who, mostly, had no desire to overthrow society or abolish wage labour. While they were acting under pressure from the left, they did so to keep the current system in place.

On the second point, in my experience (working in call centres where most people have little connection to their work), most people either dislike or are indifferent to their work. They turn up, they do what they have to, they mostly stay out of trouble because they can't afford to lose their jobs, and they whinge about the stupid bosses when none of the bosses' little spies are listening.

In my experience most people save their best for when they are not working.
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 • Re: The capitalist welfare state

Posted by Cyberman at 2007-05-25 07:23 AM

Well I must admit I wasn't thinking of telemarketing. I couldn't do that job-no way!

I guess what you are saying is something along the lines of : Reform and revolution are a contradiction.  Reform and revolution are united because they are both parts of the workers' struggle against capitalism. But reforms are to improve capitalism; revolution is to destroy it. Therefore reform and revolution are mainly in conflict.

I would say that another way to look at this is as a unity from the conflict of opposites.  If you look at Marx's approach in the Communist Manifesto , you can see the measures that he proposed were reformist in nature. These reforms were aimed not at improving capitalism but establishing the political program of the working class. If a revolution against capitalism  happens soley because the working class are totally disaffected with the capitalist sytem, without a clear idea or program of what needs to be done, the outcome is going to be unpredictable, at best. We may end up with a form of religiously based fascism.

I think you had it right in your 'Dave Hill' thread when you said  " I don't want to write off the need to fight short-term battles. We need to win people over, and that means helping to solve their everyday problems, not trying to convert them to revolution - at least not at first."

But later in the same thread,  you seemed to have a problem with the concept of defending workers' rights. In any conflict there is a period when gains are to be made and another period when it is is necessary to defend what has been gained previously, or at least try to minimise any losses. I can't see why anyone should have a problem with that. If we don't defend worker's rights now then the welfare state and Medicare will be the next to go.

 

 

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 • Re: The capitalist welfare state

Posted by youngmarxist at 2007-05-25 08:36 AM
Not telemarketing (mostly) - although I have done about 18 months of telemarketing in the last 7-odd years, the rest of my work has been in plain old inbound customer service call centres - possibly the typical clerical workplaces of the modern world.

When you say:

But later in the same (Dave Hill) thread,  you seemed to have a problem with the concept of defending workers' rights.

I am not entirely sure what you mean. I assume you refer to such sentiments as:

However, I think I am correct in saying he referred to the Congress (I) Party, not the Marxist party. His point was that the restrictions and hedges on Indian capitalism in the days of the 'licence raj', when Congress (I) dominated, were something to be aspired to.

If that is correct, that leads me to this reply to your point:

What gains are really worth defending? What things that look like gains actually are steps backwards? Or are nowhere near good enough?

As someone who has spent a fair amount of time on benefits dealing with the vile system that is C*ntrelink (and its previous incarnation as the Department of Social Insecurity) I can assure you that the Australian welfare state is patronising, barely adequate (if that), generally nasty and very good at building up the power of the system while crapping on about 'empowering' people (which is generally achieved by punishing them for not living up to the ideals of neo-liberal society).

If we have to defend this system from something worse, it should only be in the context of a counter-offensive. In fact, talking about 'defending' anything strikes me as being - or at least sounding -  quite passive. At best, it means that we get to keep what little we have now.

Perhaps it would be impossible to launch a counter-offensive at the moment. And perhaps we would not be able to lead the working class to anything more than fighting reformism right now.

But we should constantly be talking about how the institutions of today would look and operate in either a world of fighting reform or (preferably) a world of revolution. We can't satisfy ourselves with talking about 'defending', say, the welfare state. That cedes the initiative to the ruling class.

If we are engaged in defence of welfare payments that people need, we also need to keep asking people what they dislike about the system, how it should be changed and how it can be made empowering instead of humiliating and destructive (which it is now).

Constant prodding and agitating, designed to make people dissatisfied with the status quo, and make them ready to demand everything is what we need - not just 'defence'.

And we need to ask ourselves what sort of victories will empower people and encourage them to start demanding more.

For a site dedicated to tracking C*ntrelink's nasty ways, try Centreflunk.
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