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Title: The Economy and Anarchy
Author: Ron Tabor
Date: August 18, 2008
Language: en
Topics: economy, anarchy, financial crisis, 2008, United States of America, The Utopian
Source: Retrieved on 4th August 2021 from http://utopianmag.com/archives/tag-The%20Utopian%20Vol.%207%20-%202008/the-economy-and-anarchy/
Notes: Published in The Utopian Vol. 7.

Ron Tabor

The Economy and Anarchy

The economic events of the last few months have raised a lot of

questions about where the US and world economies are headed and what

this means for the political climate in the United States. In what

follows, I have attempted to answer these questions. As much to clarify

my own thinking as to explain my thoughts to others, I have tried to

place the recent economic developments in the context of both my

previous understanding of the economy and a brief, and very sketchy,

outline of the history of the US economy since 1970.

In the late 1960s and early 70s, I developed an analysis that attempted

to explain the nature of the post-World War II era of economic

prosperity in the United States and why that era would come to an end.

At the time I began to develop my ideas, that long period of economic

expansion was coming to a dramatic close with the recession of 1970 and

President Richard Nixon’s imposition of wage-price controls in 1971,

both of which exploded the claims of mainstream economists that

capitalism had solved its major problems. My analysis was based largely

on a reading of Karl Marx’s theory of capital, as elaborated in his

magnum opus, Das Kapital, along with the work of contemporary Marxist

theoreticians, such as Michael Kidron, Paul Mattick, and (I am ashamed

to admit) Lyndon LaRouche, then known as Lyn Marcus.

My fundamental thesis was that the post-war boom, based to a

considerable degree on a vast increase in defense spending (the

“permanent arms economy”), which was financed in part by government

deficits (borrowing), had not solved any of capitalism’s contradictions,

particularly, the tendency of the rate of profit to fall. Instead, it

had merely covered them over—in effect, “borrowing from the future” to

pump up the economy in the present. In a nutshell, based on the

experiences of the Great Depression of the 1930s and World War II, the

capitalists had learned how to temporarily restore conditions of

profitable production through a variety of artificial means, most of

which involved the proliferation of debt, government and private, and

what Marx called “fictitious capital,” claims, in the form of stocks,

bonds, and other securities, to wealth that does not in fact exist.

Based on this analysis, I predicted that at some point in the future,

the US and world economies would experience a 1929-type financial

collapse and an economic crisis similar to the Depression. This in turn,

I thought, would lead to a period of intensified competition between the

major capitalist powers, the growth of radical right-wing movements, a

resurgence of militant working class struggles, intensified regional

conflicts, and possibly, another world war.

Today, I am no longer a Marxist and do not subscribe to Marx’s theory of

capitalism. One of my major reasons for rejecting Marx’s analysis is

that, like mainstream (“bourgeois”) economics, it attempts to describe

our socio-economic system as a self-contained whole, independently of

its relation to nature. Specifically, although Marx recognized that the

products of nature—raw materials, air, water—constituted essential

elements of capitalist production, he insisted that human labor, and

only human labor, is the source of all value. This was based, at least

in part, on his belief that the products of nature were, for all

practical purposes, infinite and therefore free (without cost). Today,

it should be obvious that this is not the case; in fact, it is a

devastatingly erroneous assumption. (One indication of this is the

tremendous environmental destruction that occurred in the former Soviet

Union, where the rulers attempted to plan the economy with methods that

were based on Marx’s theory.) Although the relation between capitalism

and our increasingly severe environmental crisis can be explained in

Marxist terms, such an explanation has an added-on, ad hoc character.

Instead, I believe that a truly revolutionary (and accurate) analysis of

global capitalism must be based on the crucial recognition that nature

and our economic system do not represent two independent realms, and

that, as a result, the economic crisis and the environmental crisis are

integrally connected. Among other things, this requires a new theory of

value, one that recognizes nature’s essential contribution to the

creation of value, and thus a substantively new theory.

Despite this, I believe that my old analysis has general validity. That

is, I believe that capitalism has not solved its fundamental problems,

but that the capitalists (actually, their economists and central

bankers) have learned how to manipulate the system to moderate the

business cycle (previously, the system’s tendency to swing between

speculative booms and depression, “booms” and “busts”) and to engender

conditions of relative prosperity for a period of time through the

expansion of debt and through deferring many of the system’s problems to

the future. A look at the situation confronting Social Security, our

healthcare system, and our public schools—indeed, the entire

infrastructure (including roads and highways, trains, airports, public

transit systems, dams and levees, electric power systems, etc.) of the

country—along with vast public and private indebtedness, suggests the

truth of this position.

The environmental crisis needs to be understood in the same way. Instead

of setting aside resources to replace and/or restore what we take and

have taken from Nature, capitalism, assuming, as Marx did, that natural

resources are infinite, just takes from, or plunders, the planet. Just

as a capitalist firm can boost its profits in the short term by deciding

not to set aside funds to replace its plants and equipment when the

current machinery wears out or becomes obsolete, and instead to include

these funds in its accounts as profits, international capitalism boosts

its profits in the short term by failing to set aside funds to pay for

what it plunders from the Earth. And just as eventually the firm, if it

is to continue, has to come up with the money to replace its equipment,

cutting into future profits as it does so, the economic system as a

whole must eventually come up with the resources to restore the

environment. If it does not, the whole system will stagnate and perhaps

die. (At the very least, the prices of the raw materials Nature

provides, including water, will rise as these materials become harder to

reach and to process or become depleted altogether.)

While the danger of a 1929-style financial crisis and global depression

a la the 1930s is real, I am no longer convinced that such events are

inevitable or even highly likely. As it turned out, the Depression of

the ’30s was exacerbated by unique historical circumstances: (1) the

saddling of Germany, one of the world’s strongest economies, with

enormous reparations payments (debts owed to the Allied powers—France,

Great Britain and the United States) after World War I; (2) in part

resulting from this, the Nazis’ takeover of Germany and their efforts to

turn the German economy inward, toward autarchy, that is, an attempt to

isolate the country from the global economy; (3), the Russian Revolution

of 1917 and the imposition of an embargo against the Russian economy by

the traditional capitalist countries; (4) actions by the US and other

capitalist governments that intensified the crisis, including attempts

to balance government budgets (President Herbert Hoover raised taxes),

and the enactment of high tariffs barriers that drastically curtailed

world trade; (5) an agricultural depression in the United States that

lasted through most of the 1920s and into the ’30s; and (6) some of

President Franklin D. Roosevelt’s own New Deal policies, specifically

his measures to prevent prices from falling. (Had prices declined, it

might have been possible to reestablish conditions of profitable

production earlier than they were.) Meanwhile, since the Depression, the

economists and the capitalist class as a whole have learned a great deal

about managing the economy; the aggressive actions taken in the last few

months by the Federal Reserve Bank under Federal Reserve Board Chairman

Ben Bernanke to ease the credit crunch, shore up the investment banks,

and calm the stock markets demonstrate this. As a result, the system has

avoided a serious crisis for now (although the financial sector is still

in turmoil), but only through the continuation of the process I had

described, that is, by postponing dealing with fundamental problems and

running up more debt. A brief look at the economic history of the

country since the 1970s suggests how this played out in practice.

Although there was no dramatic collapse and depression, the 1970s were a

period of substantial economic crisis. (Economically, it was the second

worst decade, after the 1930s, of the 20^(th) century). This included

the OPEC oil embargo, the drastic increase in the price of oil,

significant inflation (rising prices and a declining value of the

dollar) in general, and at least two severe recessions—economic

downturns, less severe than depressions, officially defined as two

consecutive quarters of a decline of the Gross Domestic Product. This

period of “stagflation” (stagnation plus inflation) was brought to a

close in the early 1980s, largely through the Reagan government’s

vicious attack on the labor unions, a lowering of taxes, and a drastic

increase in arms spending. While this led to a huge increase in the

federal budget deficit (and growth of the government’s debt), it also

laid the basis for a significant economic upturn, along with growth of

the stock market (based to a considerable degree on a merger and

acquisition binge), throughout much of the decade. This, in turn, led to

the beginning of the boom in the private housing sector (and the

proliferation of mortgages and mortgage-based debt), which, despite some

ups and downs, lasted until August of last year.

In 1988, the stock market “crashed” (prices of stocks dropped

substantially in a short period of time), but the downturn that usually

follows such events did not occur until two years later. The recession

of 1990–1991 was pretty severe, especially in California, since it

entailed a considerable cut in arms spending and the dismantling of a

significant section of the defense/aerospace industry, much of which was

based in southern California. Although the recovery from that recession

was slow, it did eventually pick up steam, fueled in large measure by

the rapid expansion of the new high tech industries (the development and

distribution of personal computers, the creation of the Internet,

bio-technology, etc.), a substantial rise in stock prices, and, once

again, the growth of the housing sector. Although this upturn was

artificially extended for several years, largely through the efforts of

then Chairman of the Federal Reserve Bank, Alan Greenspan, to keep

interest rates low, it finally came to an end in the year 2000, when the

“dot.com bubble” burst and the stock market dropped substantially once

again. Although the recession of 2000–2001 was not very deep (among

other things, it did not involve major layoffs of workers), the economic

recovery was, once again, lethargic (the attack on the World Trade

Center significantly dampened economic activity), and stock prices

remained relatively low for quite some time, not reaching their previous

highs until some years later. The ensuing period of economic expansion

(the one that recently ended) was led by the continued but less robust

development of the high tech industries and, increasingly as the boom

developed, the growth of the housing sector that had begun in the 1980s.

The burgeoning of the home-building related industry was fomented in

large measure by the extension of so-called “subprime” and

adjustable-rate mortgages, which appeared to make home ownership

possible for many people who did not in fact have the financial

wherewithal to buy a house. As the economic upturn wore on, it was more

and more impelled by this expansion of debt, and the growth of the

construction, home furnishing, and home financing industries that it

stimulated, and less and less by other sectors of the economy. In

addition, like all speculative booms, this one fed on itself. As home

prices increased while the Federal Reserve Bank kept interest rates

relatively low, more and more people, afraid to miss the boat, got into

the act, buying houses that, as it turned out, they couldn’t afford.

Meanwhile, this bubble spread throughout the rest of the US and global

economy through at least two mechanisms. (1) As homeowners saw the

values of their houses go up (as prices rose), they believed that their

financial assets had also increased and went on a spending spree, mostly

through incurring more debt, via credit cards and installment buying,

with other consumers following suit. (Since 2005, the net savings rate

of people in the country has been negative—meaning that on average,

people have been spending more than they earn— for the first time since

the Great Depression. Today, the household debt-to-income ratio—how much

people owe compared to how much they earn—has reached an all-time high,

over 19%.) Many of the goods people purchased were made abroad,

including in the newly industrializing countries of Asia, such as China,

Malaysia, and India, thus stimulating their economies, but worsening the

US balance of trade and balance of payments deficits. (2) Meanwhile, the

mortgage lenders packaged their mushrooming mortgages into bundles of

securities and then sold them to investors, including and in particular,

vast institutions, domestic and foreign, government and private, that

control enormous quantities of financial assets. This ballooning sector,

based on extremely inflated home prices, was relatively new and entirely

unregulated, and nobody knew (or knows) exactly how much money was/is

involved.

While the economic events I have been describing, that is, those that

occurred during the period from 1970 to the present, were taking place,

we also experienced substantial changes in the structure of the US

economy and of our society as a whole. This included the

“de-industrialization” of the country, as the big industries that had

once been so economically and politically dominant—automobiles, steel,

electrical appliances, textiles, chemicals, aerospace—either shrank,

were displaced by foreign competitors or disappeared altogether.

Increasingly, many US corporations built factories overseas to take

advantage of lower wages and readier access to sources of raw materials

and to foreign markets, while others went under or were bought up by

more efficient foreign firms. Those that survived increasingly automated

their operations, cutting down their workforces. These processes led to

the disappearance of millions of unionized jobs, the drastic weakening

of the trade unions, the implosion of many Midwestern cities, and a

massive increase in the size of the service sector of the economy. While

this led to the expansion of some sectors of the middle class, it also

meant a major change in the nature of the US working class, as millions

of unionized skilled and semi-skilled jobs disappeared. Meanwhile, many

of the newer jobs in the service sectors offered much lower wages, and

were taken by immigrants, legal and illegal. Virtually a whole layer of

the working class was destroyed, and the labor movement, which had

organized and represented these workers, dwindled in size. Meanwhile,

the total amount of debt—federal and state government, private

(mortgages, installment, and credit-card debt), and of the country as

whole in the form of the long-standing balance of payments deficit—has

exploded, reaching staggering levels. Next year’s federal budget deficit

is projected to be about $500 billion, while the national debt (which

does not included the indebtedness of state and local governments, nor

the unfunded liabilities of Social Security, Medicare, and Medicaid) is

nearing $10 trillion.) While all this has happened, the once

overwhelmingly dominant position of US imperialism in the global economy

has been eroded.

As all speculative bubbles eventually do, the most recent one burst, and

the fictitious capital, represented by the inflated home prices and the

billions of dollars of mortgage-based securities, began to be

liquidated. Beginning in August of last year, homeowners who had bought

their homes through questionable mortgages began to default (fail to

meet their payments), houses began to be repossessed, and, as a result,

housing prices ceased their decades-long rise and started to decline.

As these developments occurred, the holders of the mortgagebased

securities began to demand higher interest rates to offset the

increasing risk of default. And this, to make a complicated story less

so (hopefully), led to a drastic “credit crunch,” as various banks and

other lenders panicked and essentially refused to extend credit to

anybody on any terms. Consumers also got scared, as they saw their

assets shrinking, and cut back their spending. (Consumer spending

accounts for about two-thirds of the economy.) Meanwhile, the prices of

stocks dropped dramatically and the economy slowed to a crawl.

Fortunately, the Federal Reserve Bank acted quickly to cut interest

rates and to extend credit to the investment banks (including financing

the buy-out of the cash-strapped Bear Stearns investment bank). This

tended to calm the fears of both investors and consumers, at least

temporarily. Meanwhile, stock prices, which started to drop in November

and continued to fall through the first three months of this year,

seemed to bottom out in March and turn up afterward. However, the stock

market has remained extremely volatile and stock prices have recently

dropped below the level reached in March. (Stock prices, which broadly

reflect investor confidence, tend to lead the economy by several

months.) Although the Fed’s intervention may well have prevented a

financial meltdown, it did not forestall an economic slowdown.

Up to now,, the actual decline in economic activity has not been great.

(Nationally, less than 600,000 jobs have been lost, far less than in

most of the other post-World War II recessions.) Although the housing

sector is shrinking rapidly (and will likely continue to do so for some

time), there have not yet been massive layoffs in other sectors, and it

is possible that the economy may stabilize at or not too far below its

present level. (This seems to have been a pattern of the last two

recessions—this one and the one in 2000–2001—so much so that some

economists have come up with a new economic category, the socalled

“modern recession.”) On the other hand, the decline may continue for

some time, perhaps leading to a severe recession in the US and a global

slowdown, if not an outright contraction. Recent developments, such as

increases in unemployment, continued volatility in the financial sector,

and a collapse in the level of consumer confidence, suggest that this

may be happening now. Moreover, home prices, however much they have

already fallen, are still far above historic levels. They will mostly

likely continue to decline for some time, as the banks write off

billions of dollars of bad loans. (As of this writing, the banks have

written off over $300 billion; some experts predict that this figure

will top $1 trillion).

Even if we avoid a deep recession, economic problems, including

inflation, will continue. We have already seen a rapid rise in the price

of oil. This is in part caused by speculation (investors buying and

selling oil-based securities for short-term gains), but it is also the

result of a combination of other factors, including the increased demand

of newly industrialized countries, the filling of various countries’

strategic petroleum reserves, production cutbacks by a number of foreign

oil producers, and a global slowdown in oil exploration over the last

period. Food prices have also shot up, impelled in part by the fact that

many previous countries that once exported food are now, because of

their industrialization (their people can afford to buy more food), no

longer doing so or are even importing food, by speculation in

foodstuffs, and by the diversion of agricultural resources to the

cultivation of ethanol and other biofuels. While the rate of increase

may slow as speculators move out of commodities and into other areas,

the underlying pressures are still inflationary, as the high price of

oil, which is used in the production of many other commodities, will

make its way to and through the rest of the economy. To these will be

added the impact of the currently low interest rates, the Fed’s

considerable expansion of credit, and, equally important, the declining

value of the dollar (which will tend to raise the prices of imported

goods). So, what is likely for the foreseeable future is some kind of

recession, perhaps quite severe, followed by a period of very slow

economic growth coupled with inflation, somewhat like the stagflation of

the 1970s.

This will put the Federal Reserve Bank in a quandary, particularly as

the economy bottoms out and starts to recover, since while the bank

might like to keep interest rates low and credit easily available in

order to boost the economic activity, it runs the risk of fueling

inflation if it does so. On the other hand, if it keeps interest rates

too high in the interests of keeping a lid on inflation, it may choke

off or at least hamper an economic recovery. The federal government’s

budget deficit puts it in a similar bind. Cutting the deficit will mean

raising taxes and/or cutting back on government programs, either of

which will dampen economic growth. On the other hand, allowing it to

grow, which means more borrowing, will tend to increase inflation. The

role of the dollar as an international reserve currency will also limit

the Fed’s ability to act, since a rapidly depreciating dollar will wreak

havoc with the global monetary and financial system.

One of the effects of this entire situation will be to lower the living

standards of millions of people by cutting real incomes and increasing

unemployment or underemployment (people employed but not earning enough

to meet their expenses). In addition, given the continued decline in

home prices, many more people will lose their homes, while they and

others will be pushed downward, toward and under the poverty line.

Meanwhile, the long-term problems of the economy, including the decayed

infrastructure and the tremendous indebtedness, will continue to mount.

At the same time, the environmental crisis will increasingly have

directly economic effects. We are already seeing this in rising food

prices, not counting the cyclone (hurricane) that swamped southern

Myanmar (Burma) and the Hurricane Katrina disaster of several years ago,

possibly caused or made worse by global warming, and the flooding in the

Mississippi Valley. To address the growing environmental problems will

require increasing amounts of economic resources, which will not be

available for other uses. While this may result in the development of

new technology and new sectors of the economy, it will also weigh on

economic growth as a whole, increasing the risk of stagnation.

Whatever precisely happens, the overall economic situation is likely to

have an impact on the political scene in the country. Normally, the

responsibility for economic conditions is placed on the sitting

president and his political party, even though their policies, in fact,

have little to do with determining those conditions. Thus, Ronald Reagan

was credited with the expansion of the 1980s, while George H. W. Bush

was blamed for the ensuing recession. Bill Clinton was considered a

genius for supposedly overseeing the longest economic expansion in the

country’s history, while avoiding being blamed for the downturn that

followed. (That, it turned out, didn’t help Democratic presidential

candidate Al Gore enough to win the 2000 election.) I think it likely

that the current economic crisis will be blamed on George W. Bush and

the Republicans more broadly.

However, given the other issues involved in this year’s presidential

contest, specifically, the possibility of electing an African American

to the office, this may not determine the outcome of the election. (I

dare not try to predict the victor in November. I have almost always

gotten it wrong, perhaps because I am not really in tune with the

American voters. It is safe to say, however, that it is the Democrats’

election to lose.)

Even if Republican John McCain were to prevail over the Democratic

candidate in November, one of the key planks of the current conservative

program in the United States, and of the Republican party more broadly,

will be seriously damaged. Indeed, it already has been. I am referring

to the insistence that the “market” and the capitalist system as a whole

function best when they are allowed to operate freely. It should now be

apparent that left to itself, the economy does not always do well; while

at the moment, the question is not whether the government should

intervene in the economy, but how much and in what ways. Clearly, some

form of government action is needed. In fact, the recent actions of the

Federal Reserve Bank, occurring (ironically) during a Republican

administration, represent a historically significant increase in the

power and role of what is basically the US government’s central bank.

The economic situation also makes it likely that demands will rise for

serious measures to address the long-standing issues facing the country.

When the economy is growing rapidly, and everybody, or at least most

people, appear to be prospering or likely to prosper in the future, it

is easy to sweep problems under the rug. Eventually, the explicit or

implicit argument goes, economic prosperity will take care of everything

and everybody. In today’s economic climate, that kind of talk rings

hollow. People are going to start asking, with increasing vehemence,

questions like the following: What are we going to do about Social

Security, about the health care system, about the schools, about the

highways, airports, public transit, etc., about the millions of people

who have lost their homes or are about the lose them, about the millions

of people who, even working several jobs, can’t cover their monthly

expenses, let alone pay off their debts? What are we to do about

immigration, the world food crisis, and—oh yes—the environment?

(Unfortunately, the rise in oil prices will create political pressure

for measures, such as the resumption of off-shore drilling, that will

make the environmental crisis worse, once again “solving” problems in

the short-run, while makings things worse in the future.)

It is already quite clear, if one listens to the debates of the

candidates and would-be candidates for the presidency, that the major

parties have no serious proposals to address these (and the other)

issues facing the country. During the Democratic primary campaign,

Barack Obama and Hillary Clinton argued over whether to have the oil

companies pay the gasoline tax; Clinton was for it, Obama against. Obama

rightly insisted that it wouldn’t make a dent in the problem, but what

is his proposal? I have never heard it. The various ideas put forward to

address the crisis in healthcare are similarly vacuous. And what about

the other problems? Nobody is putting forward anything that remotely

deals with them. Hopefully, this will lead to a broadening of the

political debate in the country, granting some space to ideas that have

been off the political map for a while, and offering at least the

appearance of relevance to more radical—left and right—ideas and

ideologies.

This opening of the political debate is likely to get a significant

boost from what I expect (and hope) will be at least some increase in

popular struggles. Although it is possible, I find it hard to believe

that people losing, or in danger of losing, their homes are going to sit

back and do nothing about it. Already there are the equivalent of

shanty-towns, but now made of more high-tech materials, springing up

near major cities to house those who have lost their homes. How high

does the price of gasoline have to go before people start to take

action? I don’t know, but I do believe that, sooner or later, people

will. When the increasing price of food really starts to hit, how long

will people remain content? And how long will undocumented immigrants

allow themselves to be made scapegoats for the problems of the country

that are not of their making?

If the political debate does open up, what will we, as libertarian

socialists and anarchists, have to say about the issues the country and

world are facing? While we certainly need concrete proposals to address

specific issues, we also need to make clear what our starting point is.

Here is how I look at it, put in the most general terms:

First, the fundamental crisis we are confronting is global. The

environmental crisis is obviously so, while the increasing globalization

of the economy means that more narrowly economic issues are also

international in scope. Consequently, our problems must be addressed

internationally. Any plan of action that pits the people of the United

States against other nations and other peoples will ultimately fail. For

example, if the US raises tariff barriers in an attempt to protect US

industries from foreign competition, other countries will probably

retaliate (this is what happened in the 1930s). Then global trade will

shrink and we will see an international depression, which will affect

everybody. In addition, merely attempting to raise

productivity/efficiency, through more automation, layoffs, speedup,

etc., but without dealing with global warming and other environmental

issues, will only work in the short term, at best. The problems of the

US and international economy are far too great to be dealt with via the

methods that have been utilized in the past. In fact, the situation we

are confronting is not just an economic crisis or an environmental

crisis. It is a crisis of humanity. The way we have been living

throughout our entire history, among other things by attacking and

brutalizing the natural world without bothering to replenish it, cannot

continue for long. It is already having and will increasingly have a

direct impact on our economic and social system, making capitalist-based

economic growth ever more difficult to achieve.

Second, to really address the crisis will require a truly cooperative

approach, not only among nations but among the peoples making up each

nation and across the globe. The problems of the world—economic, social,

and environmental—are too vast for any one country, for any small group

of countries, or for a tiny global elite to solve. Real solutions will

require the massive mobilization of group and individual efforts. Even

now, the world food crisis is not being addressed primarily by

governments, but by so-called “non-governmental organizations.” If that

crisis and other crises, including the environmental one, are to be

addressed, the cooperation of large numbers of people will be required.

And if this cooperation is to be meaningful, it will have to involve

giving those people both a real say in whatever discussions take place

and real power to effect decisions, not only local ones, but national

and international decisions as well. Truly effective feedback mechanisms

will have to developed to determine what works or what doesn’t work and

why, while implementing decisions will require the mobilizing of

millions of people. If all this is to be real, it will require a drastic

equalization of wealth and political power throughout the world. For how

else is true cooperation going to be possible if a few people have most

of the money and, therefore, most of the power, while the vast majority

have little or none?

Finally, this drastic equalization of wealth and power amounts to what

many of us used to call a socialist revolution, and what today I prefer

to call an anarchist transformation of society. This revolution does not

have to be violent, in the sense of being an orgy of killing and

bloodletting. Most of the revolutions we have seen in the last few

decades have involved very little violence. While they have not been

totally non-violent or against violence in principle, they have been

carried out with relatively little killing, let alone the massacres that

characterized previous revolutions. The danger of truly violent

overturns, such as the French, Russian, and Chinese Revolutions, is that

entire countries are devastated while millions of people are

slaughtered. Equally important, many of those involved in these

revolutions, including and in particular their leaders, become morally

corrupted, too willing to kill large numbers of human beings and to

resort to brutal, coercive measures to get their way.

Aside from being at least relatively pacific, the kind of transformation

I am talking about must be, above all, a moral or spiritual one. Human

beings must learn a new way of relating to their fellows and to the

natural world: working together rather than competing, sharing instead

of taking, discussing rather than killing. And this will not be possible

if millions (billions?) of people become brutalized by violence.

Many anarchists have long insisted that human beings naturally

cooperate. This, to them, is the real basis for the possibility of an

anarchist—a truly democratic, egalitarian, and cooperative—society. But

it is easy to overlook the fact that this cooperation has almost always

taken place in hierarchical, competitive settings; masters and slaves,

bosses and workers, politicians and voters, preachers and congregations,

leaders and followers. Some people like to point to the existence of

what Marx called “primitive communism,” that is, small, locally-based

societies, usually centered around kinship groups and lacking social

stratification and formal governments, as a kind of proof that a

non-hierarchical, cooperative society is possible. If it happened once,

it is implied, it can happen again, but on a more advanced level. But

they forget that even where these groups were/are truly

non-hierarchical, they almost always existed/exist in conflict with

other groups of people. It seems as if human beings have only been able

to work together, to truly unite and cooperate, when they do so against

outsiders, against an “other,” in other words, by dividing humanity into

“us” versus “them.” In fact, the human species has never been able to

cooperate on a truly global, pan-human scale. But what we need now, and

will need even more in the coming years, is precisely this, human beings

uniting and cooperating on an Earthwide—species-wide—level. And this

will require a change in our attitudes toward our fellow humans, so that

we increasingly see them (all or most of them) as “us” rather than

“them.” Thus, a revolution that even has a chance of solving our global

problems has to be based on a profound psychological/social

transformation of human beings. (As the great Russian writer, Fyodor

Dostoyevsky, put it (in Winter Notes on Summer Impressions, his work

criticizing capitalist societies of 19^(th) century Western Europe):

“There has to be a change of heart.” And it won’t do to believe, as some

have argued, that this psychological transformation will occur by

itself, during the process of the revolution, as people in struggle are

supposedly impelled to unite and develop solidarity; as we have often

seen throughout our history, people often unite in order to attack

others. Panhuman unity needs to be posed as an explicit goal and fought

for, devising methods of argument and struggle that embody this

principle in action.

The creation of the kind of global, species-wide cooperation that I have

been talking about really adds up to an evolutionary step for humanity,

the human species evolving to a higher level. I do not believe there is

anything inevitable about this. (To be frank, I am not even sure it is

possible.) History (and literally, the Earth) is littered with the ruins

of societies that collapsed because they destroyed the natural

environment on which they depended. (For those who would like to read

about this, I suggest Jared Diamond’s Collapse: How Societies Choose to

Fail or Succeed.) There is no guarantee that this won’t happen to the

human species as a whole. True, there are things that might help

facilitate the transformation I am describing. Today, human technology

is capable of feeding and clothing everybody on the planet (but how long

will this be the case?). The global economy is bringing more and more

people into economic and social contact with each other. Equally

important, global communications make an Earth-wide, humanity-wide

discussion possible; for the first time in our history, we can actually

have an international conversation about what we, as a species, need to

do to survive. But there is no dynamic that will necessarily move us in

the right direction; there is no God, no transcendental logic or Reason,

no “laws of history” that will force us to make the right decision(s).

The responsibility and the choice rests with us. It involves, as the

Danish existentialist philosopher, Soren Kierkegaard, put it in another

context, a “leap.” People have to decide that they want to cooperate;

they have to be aware of the necessity of working together and then

choose to do so. (This is why I have no interest in the discussions and

debates among anarchists about the precise form of property or

society—collective, communal, etc.—that best embodies our ideals. When

human beings decide that they really want to cooperate with their

fellows, in their own country and around the world, the abstract

question of precisely what forms this cooperation might take—forms of

property and forms of organization—will virtually disappear; the answers

will be worked out as we go along.)

And just as we need to see our fellow humans as part of “us” rather than

“them,” and to cooperate rather than compete with them, we must begin to

see the Earth in the same way; not something we can attack and plunder,

but something that is really part of us, something with which we need to

cooperate.

This posing of the need to cooperate with ourselves and our planet is

the other side, the potentially positive side, of the

economic/environmental crisis that we are currently struggling with. It

may finally force us to come to grips with who we are and what we are

doing to our home, the Earth. Like the rapidly rising waters of a river

in flood, it may be what finally convinces human beings that they need

to unite, to cooperate on a world scale, and to throw ourselves into

what needs to be done, to fill the sandbags, as it were, and to stack

them at the river’s edge while there is still time.