Progressive Populism for the 21st Century

Populismo Progresista para el Siglo XXI!!!
MAY 11, 2010 11:23AM

Did Socialism Save America?

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We are all taught that socialism is bad, but many of us fail to realize that many of the political, social and economic rights Americans currently enjoy were the direct product of 20th century domestic and international socialism. During this period of time internal socialist agitation and external socialist and communist influence threatened the American Establishment and economic elites in a way they had never been. Unable to adequately distract the people with foreign wars sufficiently large and numerous (which could result in nuclear annihilation) the elites compromised with, or, rather, co-opted the left and granted them many of the rights and entitlements that socialists had been fighting for since the turn of the century.

 

These positive rights (positive rights are rights to something, rather than negative rights, which are rights from external interference; American constitutional rights are mostly negative rights, rights protecting individuals from various forms of government interference, but not rights to things such as water, food, education, safety and the like) included civil rights for racial and ethnic minorities, women’s rights, affirmative action, social security, welfare, labor rights, workers compensation, Medicare, Medicaid and the GI Bill.

 

Although entirely lacking the negative rights enjoyed by Americans, the Soviet Union had been at the forefront of the world’s nations in granting these positive rights to their citizens. Afraid that popular support for these positive rights would assist the rise and legitimacy of socialism in the United States as well as provide the Soviet Bloc with ideological ammunition with which to proselytize within both the First and Third Worlds, the American elites emulated Bismarck. They granted a handful of the primary claims of the leftist radicals and in so doing, stole their raison d’état, co-opted their ideas, and made these policies serve, rather than work against, the Establishment that created them.

 

This is not to undercut or minimize the efforts played by domestic actors and non-socialist agitators and activists during this time period, many of whom worked just as hard as, if not more hard than, many of the socialist activists and intellectuals of their day. That being said, without the constant threat of socialism and communism, many of the rights advocated by these non-socialist groups might not have been granted by members of the American Establishment. As political scientists often say, all equilibria are the result of competing forces, both endogenous and exogenous. So it is with the rights mentioned above.

 

Don't believe me? Voting rights for African Americans had existed, on paper, since the 1870s, but had never been truly effectuated and realized until the height of Cold War tension in the 1960s. Why? Apartheid in the United States had been criticized for over 100 years as well, but no serious attempts to dismantle Jim Crow came about until the height of the Cold War. Why? Women’s Rights had been advocated for more than a hundred years prior to the 19th Amendment, but weren’t realized until the post Bolshevik Revolution, post-1917 Red Scares that swept the nation. Why?

 

These positive rights comprised the basic tenets of socialist parties throughout the world and the refusal of status quo Establishment governments to accede to socialist demands often made the socialist parties stronger and in time, contributed to their overthrow of the existing order and the Establishment that profited from it. The Soviet and concomitant socialist revolutionary threat loomed in the hearts and minds of the American establishment, such that they granted these positive rights to the American people in order to neutralize and nullify socialism as a viable threat to their power and wealth.

  

As such, through adopting these policies, the American Establishment was engaged not so much in an act of noblesse oblige, but, rather, in an act of self-preservation during a time in which they perceived a severe threat to the social and economic order. This, even though the American economy was rather prosperous during said period of time. (It remains to be seen how the outcome might differ if a similar set of variables were in play during a period of severe economic instability).  

Americans enjoyed most of these rights throughout the Cold War. However, with the creeping collapse of the Soviet Union in the 1980s and the wholesale Chinese repudiation of Maoism in the late 1970s, (and the concomitant adoption of pro-capitalist “Deng Xiaoping Theory”), socialist agitation, both within and without, no longer posed a credible threat. Without an external counter-example, external funding to rely upon, and deprived of the necessary leadership and access to radicalized students and labor union activists necessary for a sustainable mass movement, due to repeated government, university and corporate crackdowns throughout the 1960s and 1970s, domestic socialist parties and left-wing organizations began to rapidly demise. By the late 1980s, the movement was practically dead. With the collapse of the Berlin Wall and images of long breadlines in the Soviet Union, the efficacy of Marxism as a philosophical and economic system was cast into doubt by the mainstream media, a fact which emboldened the American economic and political elite.   

Relishing the collapse of their principal, 50-year economic and geopolitical rival, and free to act without the external philosophical constraints posed by a non-capitalist Superpower, self-satisfied American elites smugly proclaimed the “end of history,” and began to overturn the various political, social and economic rights that they had been forced, by way of domestic and international crises, to grant to the American people. One-by-one, social security, welfare, workers compensation, women’s rights, civil rights for minorities, the rights of labor--all of these became targets of the newly insurgent and invigorated right-wing, Establishment attempt to dismantle the institutions their hand had been forced, by circumstance, into creating. The Presidency of George W. Bush was but the latest assault on these hard-won rights.

The question today is whether Obama will stand up to the forces of Establishment reaction, or whether he will work to uphold what few surviving vestiges of the New Deal and Great Society remain? Will he work to recreate and reinstate those laws and policies that were rescinded by prior administrations? If the boys from Goldman-Sachs have any say, Obama will be forced to betray the Left and the answer will be a resounding "no." Luckily, the individual actions of a President are often of less consequence than the irresistable currents of history. If history proves me right, the leftward swing of the pendulum, while temporarily halted, will invariably continue along its predetermined course, if the forces of finance and capital continue playing this unsustainable, kleptocratic game. For every action, there is an equal and opposite reaction and the more the leftward swing of the pendulum is averted, the more violent and passionate will its leftward momentum become, until the consequences will become too unbearable to ignore.

This isn’t the first time such a series of events have unfolded. Talleyrand, watching the behavior of Louis XVIII and the returning Bourbon émigrés in Paris during the Restoration of 1815-1816, was astounded by the hostility they openly displayed toward the popular rights and privileges created by the French Revolution and Napoleon. Many of them believed that since Napoleon was beaten and the Jacobins destroyed, the “end of history” was at hand, that the Ancien Régime would be restored to its pre-1789 authority, that feudalism could be reinstated and that the various democratic and meritocratic institutions created in the two decades prior could be abolished. They were unprepared for the popular backlash that would entail, and, as such, their actions would sow the seeds of their own overthrow two decades later. It was in this light that Talleyrand famously remarked that the Bourbons had “learned nothing and forgotten nothing.”  

The American Establishment has learned nothing and forgotten nothing and, like the Bourbons, the denial of our hard-won rights and the restoration of their primordial privileges will not last.            

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Very insightful and on point. rated. great work here, eventually the truth always, always, comes out ...
Thanks, Oahu! I have been playing with these ideas for some time. I hope I did them justice. Next week I hope to write an article about this phenomena from a European historical perspective, namely, how Bismarck, Napoleon III and Louis Cavour co-opted the left in their country, in order to make them subservient and dependent upon the Establishment and status quo.
Of course, socialism saved America -- ask anyone who lived thru the Great Depression -- unless they're a Luddite. I'm endlessly amazed at the ignorance of the American electorate, especially those who simultaneously accuse Obama of being a Fascist and a Communist, or who sport signs at Teabaggers rallies saying "Don't Socialize My Medicare".

Most Americans don't realize they've been living with socialism all their lives -- attending public schools, driving on public highways, and being defended by a public military. Nor do most of these people understand the faith most proclaim is inherently communistic in nature -- "from each according to his ability; to each according to his need".

I had my own take on this subject, if you have time:

Socialism Is Not A Social Disease
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Tom, I agree. Many of the basic functions of government are seen by the right as "socialist," even though real socialists only really advocated the stuff I discussed above. With all that out of the way, the Right is now waging war on the State itself, and as such, all the political developments since the 1648 Treaty of Westphalia and the emergence of the modern state system. This is very, very big.

We thought the biggest threat to the State would come from other states. Turns out companies are the biggest threat to the state, particularly if they control the commanding heights of the economy, or means of production.



I checked out your article and rated it. Good job.
Ramesh--you're right. It is a function of propaganda and it has taken on a life of its own. The lie has a synergistic, self-sustaining quality that sustains it, without active external financing and support.
I don't think I'd consider this to be socialism saving America. But I think most Americans are wholly unaware that we are being forced to swallow the neoliberal pill because of the fall of the Eastern Bloc. As the old saying goes, socialism or barbarism. It seems to me we've been descending into the latter, since the fall of the USSR.
Btw, the Teabaggers and Ron Paul folks seems to be applauding these developments, and they want things to get worse. They seem to be completely unaware of things like increasing inequality, an eroding middle class, and real wages that are not increasing. Not to mention that Americans work far more than the people of any other wealthy 'advanced' country. We, of course, lack many of the worker protections and rights that workers of Western Europe enjoy.
Sean--I think the elite adoption of socialist policies averted revolution in the 1930s and later, in the 1960s.
This is what Bismarck did in the late 19th Century regarding Social Security. He created it as a means of co-opting and destroying the German left.
Indeed, the Social Security Administration website actually has a page about Bismarck, why he adopted Social Security, and how the US emulated his tactics and rationale in adopting our own Social Security policy. http://www.ssa.gov/history/ottob.html
Ok, if you want to say it saved capitalism that is fine. You know maybe you're on to something though. I have a lot of problems with Soviet style communism, but I guess that's neither here nor there, we're talking about the benefits that it gave Americans. I think American capitalism and Soviet communism were both deeply flawed systems, and I don't want to throwing a bunch of complements at either one. But I suppose that's not really what we're talking about.
Sean--I agree. Both systems were flawed, because they were too purist, too extreme. But the US, being democratic, was able to develop a European style synthesis during the Cold War, which served us very well. That being said, the Elites always hated the taxes they paid to maintain it and when the USSR no longer posed a threat, and internal revolutionary upheaval was a thing of the past, they all seemed to reinstate the laissez-faire ideology that was prevalent in the US prior to the 1917 Bolshevik Revolution.
Actually we may disagree on one thing, I'm kind of a closet socialist, haha. I think the Soviet Union failed b/c it was top down centralized socialism, not bottom up decentralized socialism. I used to really believe in that sort of thing, now I do consider myself a social democrat, though. I don't know if the dreams of an ideal socialist society will ever be realized, but what the Scandinavian countries have created IMHO is pretty good.
Sean---is that why you have a picture of Hugu Chavez for your OS avatar?
I was going to try and explain myself, but this article really points out why to support Chavez versus any other I think. Correa and Morales are for the most part well-intentioned, but there 'change' has been much more cosmetic than Chavez.

Latin America’s Twenty-First Century Socialism in Historical Perspective
http://axisoflogic.com/artman/publish/Article_57194.shtml
Stellaa---intellectuals will admit it, but the group-think sheep on both sides of the aisle will not. Not because they may disagree with the idea, but mostly because they have been conditioned to cringe, like Pavlov's dogs, whenever they hear the word "socialist."

The GOP hates anything labeled as such. But at least they're honest.

Establishment Liberals in the Democratic Party (see John Kerry and the Kennedys) are far more dangerous to the Left. They use liberal politics like Bismarck did, as a means of co-opting the left, so as to preserve their own class-position and privilege. In this way, they serve as Wealthy Ambasadors to the Poor, coming to our ghettos and trailer parks, hugging us, promising us things, giving us bread crumbs, and persuading us not to revolt or ask for more. These folks hate socialists because they see them, rather than the GOP, as their true enemy (and rightfully so, mind you)
Interesting. I heard Michael Parenti make the same points about 15 yrs ago, so you're in good company. He was pointing out that with the fall of the Soviet Union what he called "a querulous note" had entered the right-wing intelligentsia in which they argued, in effect, that since there was no longer a competing system to worry about, there was equally no longer any reason to "coddle" the middle class and its dreams. They specifically attacked the idea that each generation of Americans was supposed to do better than the previous one.

If the two of you are right, it's no accident that the worst of the predatory corporate behavior began after 1989.
Other than occasional over active militias you will never see a revolution from the tea bag wing, or anywhere on the right- revolution comes from people who are actually being fucked over ... no repub can honestly say they are, and would never put any of their assets on the line, much less their life, despite utterances to the contrary.

From what my Grandfather told me about the 30s, and from I know myself from the 60s, is- the facts, cold and hard: the New Deal was put in place to stop riots in the streets, a la France. The only thing that stopped a revolution of my generation was stopping the war and repealing the draft- and, if they tried a draft today there would never have been an Iraq in the first place ... The only reason the markets supporting wealth making recovered was due to the social programs put in place for the populace ... proving, again, laissez-faire is a fantasy that never really exists, a mixed economy is, always has been, and always will be the only one for a free people.
The Czar was felled like an oak tree in a hurricane because he refused to bend but it was in Germany where the oligarchy righted the ship captained by the brilliant statesman Bismarck . Many a history book has commented that at the advent of WW1 Germans carried little cards that insured them of a decent standard of living from cradle to coffin. In fact a very good argument can be made that this was what supplied the motive that enabled the German aristocracy to mobilize an entire people to unquestioningly take on the armies of the globe and nearly win in the early twentieth century. Unfortunately you will never see that obvious connection made in these very same history books. None of this and I must repeat none of this would have been necessary if Marx had not marred his legacy with the unbelievably stupid assumption that religion is the opiate of the people if he had said it was their ambrosia we would not be having this discussion right now and the world would have managed to rid itself of this debilitating and perhaps fatal parasite that the Europeans call the nobility. Rw I thought I was the only one alive able to read through a history book and see the reality of human existence until I “ met " you !
Thanks for the support, Jack. If we continue to publicly profess our learning, in a way that is accessible to the common man and easily understood, then we will have done our duty and helped pave the way, in our own small way, for the Just Society to come.

Utopia is impossible, but we can restore EQUILIBRIUM to the system, by nullifying and neutralizing the excess right-wing surplus arguments that are corroding and debilitating the system and causing unsustainable, necrotic dis-equilibria.
Amity Shlaes, in her revisionist historical book, "The Forgotten Man," makes a good deal out of these critiques by Morgenthau, but she fails to mention some major salient points.

1. Morganthau had pretty controversial views on the New Deal, even while he was working within it as Secretary of the Treasury. From the get-go, he was opposed to Keynesianism and was dedicated to classical Adam Smith/David Ricardo interpretations of economics, in which balanced budgets, a strong currency, and minimal government involvement were promoted.

2. The Morgenthau quotation you utilize is interesting. Morgenthau is clearly being hyperbolic. Unemployment was NOT higher in 1939 than it was in 1932. http://en.wikipedia.org/wiki/File:US_Employment_Graph_-_1920_to_1940.svg

3. Granted, unemployment rates were RADICALLY REDUCED FROM 1933 to 1937. HOWEVER, FDR was forced by many fiscal conservatives to adopt some fiscally conservative policies in 1936/1937, policies which caused a SLIGHT DIP IN UNEMPLOYMENT RATES. This dip WAS NOWHERE NEAR THE LEVELS EXPERIENCED BY THE COUNTRY from 1929--1932. http://en.wikipedia.org/wiki/Recession_of_1937

4. PRIOR to the time World War 2 had begun in Europe, in 1939, and FDR had already CUT PRIOR UNEMPLOYMENT RATES IN HALF. We were already HALFWAY OUT OF THE DEPRESSION BY THE TIME WW2 BEGAN.

5. WW2 certainly provided more jobs for the economy, but this does NOTHING to disprove the efficacy of Keynesian economics, big government or deficit spending. Indeed, it was PRECISELY BIG GOVERNMENT DEFICIT SPENDING THAT CAUSED THE ECONOMIC BOOM IN WW2. It wasn't private consumer demand for tanks, planes, guns and battleships that caused post 1941 economic growth. Believe it or not (many forget this), THE US GOVERNMENT WAS THE BIG SPENDER IN WW2. THIS WAS MERELY AN EXTENSION OF NEW DEAL PUBLIC WORKS PROJECTS.

6. I agree with you regarding policies that make us lose rights, and policies that don't threaten our rights, in general. It kind of reminds me of the quote by Deng Xioping of China, when justifying his effort to move China from a pure Communist economy, to a mixed Socialist-Capitalist economy. He said, "It doesn't matter if the cat is black or white, as long as it catches mice." The same could be said about our situation.

That being said, sometimes, rights are a zero-sum game. Group X can only have rights, positive or negative, if they take them away from Group Y. For example, look at slavery in the Antebellum American South. Southern property rights were diametrically opposed to African-American civil rights.

7. In sum, FDR often justified and rationalized his economic and social programs as an effort to stymie and prevent the emergence of anarchy and radicalism in the US. This isn't revisionist history. It is fact.
Can't add much other than RIGHT ON.

Hopefully we will be brimming with self-preservationist zeal.
Glad you like it, Kate! 8)
There are a number of problems here. Your history is monocular in parts, sweeping in others . . .

The Soviet system was never anything other than state capitalism, except maybe in its chaotic beginnings when it can best be described in terms of civil war and not any particular political ideology (except maybe anarchism). The 5 Year Plans were at the heart of the system throughout its history, and they recreated the problems of capitalism through a centralised, top-heavy structure: shortages in one part, overabundance elsewhere. As a result, it went through the same patterns of recurrent crises and rounds of accumulation as other capitalist national economies but much more rapidly, unevenly, and at times, destructively. The ideal of enforced modernisation was built into the system early on, and even after political de-Stalinisation took place, it was not abandoned. This caused enormous hardship, starvation and brutality. To say we don't know this, or we should look at more positive aspects instead, is to abandon the principles of science and honesty that should stand at the center of any socialist ethic.

When the Berlin Wall fell, and Gorbachev was pushed aside in Russia in favor of Yeltsin and his "Chicago school" advisors, there was a sharp turn to the right in favor of the most extreme version of "free market" philosophy being put into practice in many parts of the former U.S.S.R. But state capitalism almost immediately began to reconstitute itself in the form of an oligarchic banking class. This really wasn't the case under the Soviet, where the structure at the top of the system was always more complex and more variable, although no less exclusive.

Socialism is a system built for social needs, not profit. As such, strictly speaking, that was not the Soviet. Or North Vietnam or any of the "real socialist" countries of East Europe for that matter. The best examples of social organization of economy can be found in the cooperative farming communities that existed in much of the world up until very recently (and most recently on a large-scale in China before Mao, who got many of his ideas about collectivism, although not his own "plans," from them). This included North America, where combines, or groups of families owning and running the business that processed their feed, was the norm prior to World War II. It was the Dust Bowl crisis in the midwestern U.S. that allowed the government to take advantage of people's desperation and reorganize farming around private capital, big loans, and industrialisation. But the history of that common social organization of labor left a deep imprint on the area politically and culturally, and this is really why places like Kansas were hotbeds of progressive action before they became reactionary. The political transformation would not have been possible without the elimination of the social-economic organization of the past. If anything, it actually took a surprisingly long time for the capitalist system to find the right combination of reactionary politics and religion to obliterate the old collective traditions. They are amazingly strong once they take root. This is why there is so much worry in Washington about the spread of the Bolivarian ideals, and the local and systemic practices that go along with them, throughout Latin America.

Of course urban workerist movements have also played a large role in gaining almost all the benefits both American and European workers enjoy today. Not only the benefits thought of as basic to a good life here, healthcare, pension funds etc. But primarily the bedrock benefits of a 40 hour week, guaranteed overtime, and especially collective bargaining rights. Notice these are all being eroded, not under the bogeyman influence of "big government," but under the conditions created by corporations in the "service sector." The fact that government doesn't automatically intervene is unremarkable--it never has, since the political class has served capital from the system's beginning more than two hundred years ago. People have always had to fight on their own. In this sense, it's not just a social system we're after, but a broad social movement. Without this, the systemic expression will never come. One will end up with a nightmare like the state capitalism of the past (probably closer to the East European "real socialist" states, with their emphasis on internal security, than either the old Soviet Russia or present-day China). Or a backlash and a return to the Friedmanite, every-man-for-himself approach. We appear to be headed in the latter direction, for the time being.
Fascinating analysis, but you still don't address the nature of the arguments made above. That said, your discussion of "socialism abroad" and "capitalism within" is quite impressive.