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Title: Government in the future
Author: Noam Chomsky
Date: 1970, 2005
Language: en
Topics: libertarian socialism, government, governance, liberalism, state socialism, state capitalism, the state
Source: https://libcom.org/library/government-future-noam-chomsky

Noam Chomsky

Government in the future

Talk given at the Poetry Center, New York City, Feb. 16, 1970. This

classic talk delivered in 1970 has never seemed more current. In it Noam

Chomsky articulates a clear, uncompromising defense of the libertarian

socialist (anarchist) vision.

---

I think it is useful to set up as a framework for discussion four

somewhat idealized positions with regard to the role of the state in an

advanced industrial society. I want to call these positions:

and I want to consider each in turn.

Also, I’d like to make clear my own point of view in advance, so that

you can evaluate and judge what I am saying. I think that the

libertarian socialist concepts, and by that I mean a range of thinking

that extends from left-wing Marxism through to anarchism, I think that

these are fundamentally correct and that they are the proper and natural

extension of classical liberalism into the era of advanced industrial

society.

In contrast, it seems to me that the ideology of state socialism, i.e.

what has become of Bolshevism, and that of state capitalism, the modern

welfare state, these of course are dominant in the industrial societies,

but I believe that they are regressive and highly inadequate social

theories, and a large number of our really fundamental problems stem

from a kind of incompatibility and inappropriateness of these social

forms to a modern industrial society.

Let me consider these four points of reference in sequence, beginning

with the classical liberal point of view.

Classical Liberalism

Classical liberalism asserts as its major idea an opposition to all but

the most restricted and minimal forms of state intervention in personal

and social life. Well, this conclusion is quite familiar, however the

reasoning that leads to it is less familiar and, I think, a good deal

more important than the conclusion itself.

One of the earliest and most brilliant expositions of this position is

in Wilhelm von Humboldt’s “Limits of State Action” which was written in

1792, though not published for 60 or 70 years after that. In his view

the state tends to, I quote, “make man an instrument to serve its

arbitrary ends, overlooking his individual purposes, and since man is in

his essence a free, searching, self-perfecting being, it follows that

the state is a profoundly anti-human institution.” I.e. its actions, its

existence are ultimately incompatible with the full harmonious

development of human potential in its richest diversity and, hence,

incompatible with what Humboldt and in the following century Marx,

Bakunin, Mill, and many others, what they see as the true end of man.

And, for the record, I think that this is an accurate description. The

modern conservative tends to regard himself as the lineal descendant of

the classical liberal in this sense, but I think that can be maintained

only from an extremely superficial point of view, as one can see by

studying more carefully the fundamental ideas of classical libertarian

thought as expressed, in my opinion, in its most profound form by

Humboldt.

I think the issues are of really quite considerable contemporary

significance, and if you don’t mind what may appear to be a somewhat

antiquarian excursion, I’d like to expand on them.

For Humboldt as for Rousseau, and before him the Cartesians, man’s

central attribute is his freedom. Quote: “To inquire and to create,

these are the centers around which all human pursuits more or less

directly revolve.” “But,” he goes on to say, “all moral cultures spring

solely and immediately from the inner life of the soul and can never be

produced by external and artificial contrivances. The cultivation of the

understanding, as of any of man’s other faculties, is generally achieved

by his own activity, his own ingenuity, or his own methods of using the

discoveries of others.”

From these assumptions quite obviously an educational theory follows,

and he develops it but I won’t pursue it. But also far more follows.

Humboldt goes on to develop at least the rudiments of a theory of

exploitation and of alienated labor that suggests in significant ways, I

think, the early Marx. Humboldt in fact continues these comments that I

quoted about the cultivation of the understanding through spontaneous

action in the following way.

He says, “Man never regards what he possesses as so much his own, as

what he does, and the laborer who tends the garden is perhaps in a truer

sense its owner than the listless voluptuary who enjoys its fruits. And

since truly human action is that which flows from inner impulse, it

seems as if all peasants and craftsmen might be elevated into artists,

that is men who love their labor for its own sake, improve it by their

own plastic genius and invented skill, and thereby cultivate their

intellect, ennoble their character and exult and refine their pleasures,

and so humanity would be ennobled by the very things which now, though

beautiful in themselves, so often tend to be degraded. Freedom is

undoubtedly the indispensable condition without which even the pursuits

most congenial to individual human nature can never succeed in producing

such salutary influences. Whatever does not spring from a man’s free

choice, or is only the result of instruction and guidance, does not

enter into his very being but remains alien to his true nature. He does

not perform it with truly human energies, but merely with mechanical

exactness. And if a man acts in a mechanical way, reacting to external

demands or instruction, rather than in ways determined by his own

interests and energies and power, we may admire what he does, but we

despise what he is.”

For Humboldt then man “is born to inquire and create, and when a man or

a child chooses to inquire or create out of his own free choice then he

becomes in his own terms an artist rather than a tool of production or a

well trained parrot.” This is the essence of his concept of human

nature. And I think that it is very revealing and interesting to compare

it with Marx, with the early Marx manuscripts, and in particular his

account of, quote “the alienation of labor when work is external to the

worker, not part of his nature, so that he does not fulfill himself in

his work but denies himself and is physically exhausted and mentally

debased. This alienated labor that casts some of the workers back into a

barbarous kind of work and turns others into machines, thus depriving

man of his species character, of free conscious activity and productive

life.”

Recall also Marx’s well known and often quoted reference to a higher

form of society in which labor has become not only a means of life but

also the highest want in life. And recall also his repeated criticism of

the specialized labor which, I quote again, “mutilates the worker into a

fragment of a human being, degrades him to become a mere appurtenance of

the machine, makes his work such a torment that its essential meaning is

destroyed, estranges him from the intellectual potentialities of the

labor process in very proportion to the extent to which science is

incorporated into it as an independent power.”

Robert Tucker, for one, has rightly emphasized that Marx sees the

revolutionary more as a frustrated producer than as a dissatisfied

consumer. And this far more radical critique of capitalist relations of

production flows directly, often in the same words, from the libertarian

thought of the enlightenment. For this reason, I think, one must say

that classical liberal ideas in their essence, though not in the way

they developed, are profoundly anti-capitalist. The essence of these

ideas must be destroyed for them to serve as an ideology of modern

industrial capitalism.

Writing in the 1780’s and early 1790’s, Humboldt had no conception of

the forms that industrial capitalism would take. Consequently, in this

classic of classical liberalism he stresses the problem of limiting

state power, and he is not overly concerned with the dangers of private

power. The reason is that he believes in and speaks of the essential

equality of condition of private citizens. Of course, he has no idea,

writing in 1790, of the ways in which the notion of a private person

would come to be reinterpreted in the era of corporate capitalism.

He did not foresee, I now quote the anarchist historian Rudolf Rocker,

“that democracy with its model of equality of all citizens before the

law and liberalism with its right of man over his own person both would

be wrecked on the realities of capitalist economy. Humboldt did not

foresee that in a predatory capitalist economy state intervention would

be an absolute necessity to preserve human existence, to prevent the

destruction of the physical environment. I speak optimistically of

course.”

As Karl Polanyi, for one, has pointed out: “The self-adjusting market

could not exist for any length of time without annihilating the human

and natural substance of society. It would have physically destroyed man

and transformed his surroundings into a wilderness.” I think that is

correct. Humboldt also did not foresee the consequences of the commodity

character of labor. The doctrine is, again in Polanyi’s words, “that it

is not for the commodity to decide where it should be offered for sale,

to what purpose it should be used, at what price it should be allowed to

change hands, in what manner it should be consumed or destroyed.” But

the commodity in this case is of course human life. And social

protection was therefore a minimal necessity to constrain the irrational

and destructive workings of the classical free market.

Nor did Humboldt understand in 1790 that capitalist economic relations

perpetuated a form of bondage which long before that, in fact as early

as 1767, Simon Linguet had declared to be even worse than slavery,

writing “it is the impossibility of earning a living by any other means

that compels our farm laborers to till the soil whose fruits they will

not eat and our masons to construct buildings in which they will not

live. It is want that drags them to those markets where they await

masters who will do them the kindness of buying them. It is want that

compels them to go down on their knees to the rich man in order to get

from him permission to enrich him. What effective gain has the

suppression of slavery brought him? He is free, you say, that is his

misfortune. These men, it is said, have no master. They have one, and

the most terrible, the most imperious of masters: that is need. It is

this that reduces them to the most cruel dependence.”

And if there is something degrading to human nature in the idea of

bondage – as every spokesman for the enlightenment would insist -, then

it would follow that a new emancipation must be awaited, what Fourier

referred to as the third and last emancipatory phase of history, the

first having made serfs out of slaves, the second wage earners out of

serfs, and the third, which will transform the proletariats to free men,

by eliminating the commodity character of labor, ending wage slavery and

bringing the commercial, industrial and financial institutions under

democratic control.

These are all things that Humboldt in his classical liberal doctrine did

not express and didn’t see, but I think that he might have accepted

these conclusions. He does, for example, agree that state intervention

in social life is legitimate “if freedom would destroy the very

conditions without which not only freedom but even existence itself

would be inconceivable”, which are precisely the circumstances that

arise in an unconstrained capitalist economy. And he does, as in the

remarks that I quoted, vigorously condemn the alienation of labor.

In any event, his criticism of bureaucracy and the autocratic state

stands as a very eloquent forewarning of some of the most dismal aspects

of modern history, and the important point is that the basis of his

critique is applicable to a far broader range of coercive institutions

than he imagined, in particular to the institutions of industrial

capitalism.

Though he expresses a classical liberal doctrine, Humboldt is no

primitive individualist, in the style of for example Rousseau. Rousseau

extols the savage who lives within himself but Humboldt’s vision is

entirely different. He sums up his remarks as follows: “The whole tenor

of the ideas and arguments unfolded in this essay might fairly be

reduced to this ‘that while they would break all fetters in human

society, they would attempt to find as many new social bonds as

possible, the isolated man is no more able to develop than the one who

is fettered.’” And he, in fact, looks forward to a community of free

association, without coercion by the state or other authoritarian

institutions, in which free men can create and inquire and achieve the

highest development of their powers.

In fact, far ahead of his time, he presents an anarchist vision that is

appropriate perhaps to the next stage of industrial society. We can

perhaps look forward to a day when these various strands will be brought

together within the framework of libertarian socialism, a social form

that barely exists today, though its elements can perhaps be perceived.

For example, in the guarantee of individual rights that has achieved so

far its fullest realization, though still tragically flawed, in the

western democracies or in the Israeli kibbutzim or in the experiments of

workers’ councils in Yugoslavia or in the effort to awaken popular

consciousness and to create a new involvement in the social process

which is a fundamental element in the third world revolutions coexisting

uneasily with indefensible authoritarian practice.

Let me summarize the first point. The first concept of the state that I

want to set up as a reference is classical liberal. Its doctrine is that

the state functions should be drastically limited. But this familiar

characterization is a very superficial one. More deeply, the classical

liberal view develops from a certain concept of human nature, one that

stresses the importance of diversity and free creation. Therefore, this

view is in fundamental opposition to industrial capitalism with its wage

slavery, its alienated labor and its hierarchic and authoritarian

principles of social and economic organization.

At least in its ideal form, classical liberal thought is opposed as well

to the concepts of possessive individualism that are intrinsic to

capitalist ideology. It seeks to eliminate social fetters and to replace

them by social bonds, not by competitive greed, not by predatory

individualism, not of course by corporate empires, state or private.

Classical libertarian thought seems to me, therefore, to lead directly

to libertarian socialism or anarchism, if you like, when combined with

an understanding of industrial capitalism.

Libertarian Socialism and Anarchism

The second point of reference that I want to discuss is the libertarian

socialist vision of the state. A French writer, rather sympathetic to

anarchism, once wrote that “anarchism has a broad back – like paper it

endures anything.” And there are many shades of anarchism. I am

concerned here only with one, namely the anarchism of Bakunin who wrote

in his anarchist manifesto of 1865 that to be an anarchist one must

first be a socialist. I am concerned with the anarchism of Adolf Fisher,

one of the martyrs of the Hay Market affair in 1886, who said that every

anarchist is a socialist but not every socialist is necessarily an

anarchist. A consistent anarchist must oppose private ownership of the

means of production. Such property is indeed, as Proudhon in his famous

remark asserted, a form of theft. But a consistent anarchist will also

oppose the organization of production by government.

Quoting “it means state socialism, the command of the state officials

over production and the command of managers, scientists, shop officials

in the shop. The goal of the working class is liberation from

exploitation, and this goal is not reached and cannot be reached by a

new directing and governing class substituting itself for the

bourgeoisie. It is only realized by the workers themselves, being master

over production, by some form of workers’ councils.” These remarks, it

happens, are quoted from the left wing Marxist Anton Pannekoek, and in

fact radical Marxism – what Lenin once called infantile ultra-leftism –

merges with anarchist currents. This is an important point, I think, and

let me give one further illustration of this convergence between left

wing Marxism and socialist anarchism.

Consider the following characterization of revolutionary socialism: “The

revolutionary socialist denies that state ownership can end in anything

other than a bureaucratic despotism. We have seen why the state cannot

democratically control industry. Industry can only be democratically

owned and controlled by the workers electing directly from their own

ranks industrial administrative committees. Socialism will fundamentally

be an industrial system; its constituencies will be of an industrial

character. Thus those carrying on the social activity and industries of

society will be directly represented in the local and central councils

of social administration. In this way the powers of such delegates will

flow upwards from those carrying on the work and conversant with the

needs of the community. When the central industrial administrative

committee meets it will represent every phase of social activity. Hence

the capitalist political or geographical state will be replaced by the

industrial administrative committee of socialism. The transition from

one social system to the other will be the social revolution. The

political state throughout history has meant the government of men by

ruling classes; the republic of socialism will be the government of

industry administered on behalf of the whole community. The former meant

the economic and political subjection of the many, the latter will mean

the economic freedom of all. It will be, therefore, a true democracy.”

These remarks are taken from a book called “The State: Its Origins and

Function”, written by William Paul in early 1917, just prior to Lenin’s

“State and Revolution”, which is his most libertarian work.

William Paul was one of the founders of the British Communist Party,

later the editor of the British Communist Party Journal. And it is

interesting that his critique of state socialism resembles very closely,

I think, the libertarian doctrine of the anarchists, in particular, in

its principle that the state must disappear, to be replaced by the

industrial organization of society in the course of the social

revolution itself. Proudhon in 1851 wrote that what we put in place of

the government is industrial organization, and many similar comments can

be cited. That, in essence, is the fundamental idea of anarchist

revolutionaries. What’s more important than the fact that many such

statements can be cited is that these ideas have been realized in

spontaneous revolutionary action several times. For example, in Germany

and Italy after the first World War, in Catalonia in 1936.

One might argue, or at least I would argue, that council communism in

this sense, in the sense of the long quotation that I read is the

natural form of revolutionary socialism in an industrial society. It

reflects the intuitive understanding that democracy is largely a sham

when the industrial system is controlled by any form of autocratic

elite, whether of owners, managers, technocrats, a vanguard party, a

state bureaucracy, or whatever. Under these conditions of authoritarian

domination, the classical liberal ideals which are expressed also by

Marx and Bakunin and all true revolutionaries cannot be realized.

Man will, in other words, not be free to inquire and create, to develop

his own potentialities to their fullest. The worker will remain a

fragment of a human being, degraded, a tool in the productive process

directed from above. And the ideas of revolutionary libertarian

socialism, in this sense, have been submerged in the industrial

societies of the past half century. The dominant ideologies have been

those of state socialism and state capitalism.

But there has been an interesting resurgence in the last couple of

years. In fact, the theses that I quoted from Anton Pannekoek were taken

from a recent pamphlet of a radical French workers group, and the

quotation that I read from William Paul on revolutionary socialism was

taken from a paper by Walter Kendall at the National Conference on

Workers Control in Sheffield, England, last March.

Both of these groups represent something significant. The Workers

Control Movement in England, in particular, has developed into, I think,

a remarkably significant force in the last few years. It includes some

of the largest trade unions, for example the Amalgamated Engineering

Federation which, I think, is the second largest trade union in England

and which has taken these principles as its fundamental ideas. It’s had

a series of successful conferences, putting out an interesting pamphlet

literature, and on the continent there are parallel developments. May

1968 in France of course accelerated the growing interest in council

communism and similar ideas and other forms of libertarian socialism in

France and Germany, as it did in England.

Given the general conservative cast of our highly ideological society,

it’s not too surprising that the United States is relatively untouched

by these currents. But that too may change. The erosion of the Cold War

mythology at least makes it possible to discuss some of these questions,

and if the present wave of repression can be beaten back, if the left

can overcome its more suicidal tendencies and build on the achievements

of the past decade, the problem of how to organize industrial society on

truly democratic lines, with democratic control in the workplace as well

as in the community, this should become the dominant intellectual issue

for those who are alive to the problems of contemporary society. And as

a mass movement for revolutionary libertarian socialism develops, as I

hope it will, speculation should proceed to action.

It may seem quixotic to group left Marxism and anarchism under the same

rubric, as I have done, given the antagonism throughout the past century

between the Marxists and the anarchists, beginning with the antagonism

between Marx and Engels on the one hand and, for example, Proudhon and

Bakunin on the other. In the nineteenth century at least, their

differences with regard to the question of the state was significant,

but in a sense it was tactical. The anarchists were convinced that

capitalism and the state must be destroyed together. But Engels, in a

letter of 1883, expressed his opposition to this idea as follows: “The

anarchists put the thing upside down. They declare that the proletarian

revolution must begin by doing away with the political organization of

the state. But to destroy it at such a moment would be to destroy the

only organism by means of which the victorious proletariat can assert

its newly conquered power, hold down its adversaries and carry out that

economic revolution of society without which the whole victory must end

in a new defeat and in a mass slaughter of the workers, similar to those

after the Paris commune.”

Now, the Paris commune, I think it is fair to say, did represent the

ideas of libertarian socialism, of anarchism if you like, and Marx wrote

about it with great enthusiasm. In fact, the experience of the commune

led him to modify his concept of the role of the state and to take on

something more of an anarchist perspective of the nature of social

revolution, as you can see, for example, by looking at the introduction

to the Communist Manifesto, the edition that was published in 1872. The

commune was of course drowned in blood, as the anarchist communes of

Spain were destroyed by Fascist and Communist armies. And it might be

argued that more dictatorial structures would have defended the

revolution against such forces. But I doubt this very much, at least in

the case of Spain, it seems to me that a more consistent libertarian

policy might have provided the only possible defense of the revolution.

Of course this can be contested and this is a long story that I don’t

want to go into here, but at the very least it is clear that one would

have to be rather naive, after the events of the past half century, to

fail to see the truth in Bakunin’s repeated warnings that the red

bureaucracy would prove to be the most violent and terrible lie of the

century. “Take the most radical revolutionary and place him on the

throne of all Russia”, he said in 1870, “or give him dictatorial power,

and before a year has passed he will become worse than the Czar

himself.”

I’m afraid, in this respect Bakunin was all too perceptive, and this

kind of warning was repeatedly voiced from the left. For example, in the

1890’s the anarchosyndicalist Fernand Pelloutier asked, “Must the

transitional state to be endured necessarily or inevitably be the

collectivist jail? Might it not consist of a free organization limited

exclusively by the needs of production and consumption, all political

institutions having disappeared?”

I don’t pretend to know the answer to that question, but I think that it

is tolerably clear that unless the answer is positive, the chances for a

truly democratic revolution that will achieve the humanistic ideals of

the left are perhaps rather slight. I think Martin Buber put the problem

quite succinctly when he said: “One cannot in the nature of things

expect a little tree that has been turned into a club to put forth

leaves.” For just this reason, it is essential that a powerful

revolutionary movement exist in the United States, if there are to be

any reasonable possibilities for democratic social change of a radical

sort anywhere in the capitalist world. And comparable remarks, I think,

undoubtedly hold for the Russian empire.

Lenin until the end of his life stressed the idea that “it is an

elementary truth of Marxism that the victory of socialism requires the

joint effort of workers in a number of advanced countries. At the very

least it requires that the great centers of world imperialism be impeded

by domestic pressures from counter revolutionary intervention. Only such

possibilities will permit any revolution to overthrow its own coercive

state institutions as it tries to bring the economy under direct

democratic control.

Let me summarize briefly again. I have mentioned so far two reference

points for discussion of the state, classical liberalism and libertarian

socialism. They are in agreement that the functions of the state are

repressive and that state action must be limited. The libertarian

socialist goes on to insist that the state power must be eliminated in

favor of the democratic organization of the industrial society with

direct popular control over all institutions by those who participate in

as well as those who are directly affected by the workings of these

institutions. So one might imagine a system of workers’ councils,

consumer councils, commune assemblies, regional federations, and so on,

with the kind of representation that is direct and revocable, in the

sense that representatives are directly answerable to and return

directly to the well defined and integrated social group for which they

speak in some higher order organization, something obviously very

different than our system of representation.

Now it might very well be asked whether such a social structure is

feasible in a complex, highly technological society. There are counter

arguments, and I think they fall into two main categories. The first

category is that such an organization is contrary to human nature, and

the second category says roughly that it is incompatible with the

demands of efficiency. I’d like to briefly consider each of these.

Consider the first, that a free society is contrary to human nature. It

is often asked, do men really want freedom, do they want the

responsibility that goes with it. Or would they prefer to be ruled by a

benevolent master. Consistently, apologists for the existing

distribution of power have held to one or another version of the idea of

the happy slave. Two hundred years ago Rousseau denounced the sophistic

politicians and intellectuals “who search for ways to obscure the fact,”

so he maintained, “that the essential and the defining property of man

is his freedom. They attribute to man a natural inclination to

servitude, without thinking that it is the same for freedom as for

innocence and virtue. Their value is felt only as long as one enjoys

them oneself, and the taste for them is lost as soon as one has lost

them.” As proof of this doctrine he refers to the marvels done by all

free peoples to guard themselves from oppression. “True” he says “those

who have abandoned the life of a free man do nothing but boast

incessantly of the peace, the repose they enjoy in their chains. But

when I see the others sacrifice pleasures, repose, wealth, power and

life itself for the preservation of this sole good which is so disdained

by those who have lost it, when I see multitudes of entirely naked

savages scorn European voluptuousness and endure hunger, fire, the sword

and death to preserve only their independence, I feel it does not

behoove slaves to reason about freedom.” A comment to which we can

perhaps give a contemporary interpretation.

Rather similar thoughts were expressed by Kant 40 years later. He

cannot, he says, “accept the proposition that certain people are not

right for freedom, for example, the serfs of some landlord. If one

accepts this assumption, freedom will never be achieved. For one cannot

arrive at the maturity for freedom without having already acquired it.

One must be free to learn how to make use of ones powers freely and

usefully. The first attempts will surely be brutal and will lead to a

state of affairs more painful and dangerous than the former condition,

under the dominance but also the protection of an external authority.

However, one can achieve reason only through ones own experiences, and

one must be free to be able to undertake them. To accept the principle

that freedom is worthless for those under ones control and that one has

the right to refuse it to them forever is an infringement on the right

of God himself, who has created man to be free.”

This particular remark is interesting because of its context as well.

Kant on this occasion was defending the French revolution during the

terror against those who claimed that it showed the masses to be unready

for the privilege of freedom. And his remarks, too, I think, have

obvious contemporary relevance. No rational person will approve of

violence and terror, and in particular the terror of the

post-revolutionary state that has fallen into the hands of a grim

autocracy has more than once reached indescribable levels of savagery.

At the same time, no person of understanding or humanity will too

quickly condemn the violence that often occurs, when long subdued masses

rise against their oppressors or take their first steps toward liberty

and social reconstruction.

Humboldt, just a few years before Kant, had expressed a view that was

very similar to that. He also said that freedom and variety are the

preconditions for human self-realization. “Nothing promotes this

rightness for freedom so much as freedom itself. This truth perhaps may

not be acknowledged by those who have so often used this unrightness as

an excuse for continuing repression, but it seems to me to follow

unquestionably from the very nature of man. The incapacity for freedom

can only arise from a want of moral and intellectual power. To heighten

this power is the only way to supply the want, but to do so presupposes

the freedom which awakens spontaneous activity. Those who do not

comprehend this may justly be suspected of misunderstanding human

nature, and wishing to make men into machines.”

Rosa Luxemburg’s fraternal sympathetic critique of Bolshevik ideology

and practice was given in very similar terms. “Only the active

participation of the masses in self-government and social reconstruction

could bring about the complete spiritual transformation in the masses

degraded by centuries of bourgeois class rule, just as only their

creative experience and spontaneous action can solve the myriad problems

of creating a libertarian socialist society.”

She went on to say that historically the errors committed by a truly

revolutionary movement are infinitely more fruitful than the

infallibility of the cleverest central committee, and I think that these

remarks can be translated immediately for the somewhat parallel ideology

of the soulful corporation which is now fairly popular among American

academics. For example, Carl Kaysen writes: “No longer the agent of

proprietorships seeking to maximize return on investment, management

sees itself as responsible to stock holders, employees, customers,

general public and perhaps most important the firm itself as an

institution. There is no display of greed or graspingness, there is no

attempt to push off on the workers and the community at least part of

the social costs of the enterprise. The modern corporation is a soulful

corporation.”

Similarly, the vanguard party is a soulful party. In both cases those

who urge that men submit to the rule of these benevolent autocracies

may, I think, justly be accused of wishing to make men into machines.

Now, the correctness of the view that is expressed by Rousseau and Kant

and Humboldt and Luxemburg and innumerable others, I don’t think that

the correctness of this is for the moment susceptible to scientific

proof. One can only evaluate it in terms of experience and intuition.

But one can also point out the social consequences of adopting the view

that men are born to be free, or that they are born to be ruled by

benevolent autocrats.

What of the second question, the question of efficiency? Is democratic

control of the industrial system, down to its smallest functional units,

incompatible with efficiency? This is very frequently argued on several

grounds. For example, some say that centralized management is a

technological imperative, but I think the argument is exceedingly weak

when one looks into it. The very same technology that brings relevant

information to the board of managers can bring it at the time that it is

needed to everyone in the work force. The technology that is now capable

of eliminating the stupefying labor that turns men into specialized

tools of production permits in principle the leisure and the educational

opportunities that make them able to use this information in a rational

way. Furthermore, even an economic elite which is dripping with

soulfulness, to use Ralph Miliband’s phrase, is constrained by the

system in which it functions to organize production for certain ends:

power, growth, profit, but not in the nature of the case human needs,

needs that to an ever more critical degree can be expressed only in

collective terms. It is surely conceivable and is perhaps even likely

that decisions made by the collective itself, will reflect these needs

and interests as well as those made by various soulful elites.

In any event, it is a bit difficult to take seriously arguments about

efficiency in a society that devotes such enormous resources to waste

and destruction. As everyone knows, the very concept of efficiency is

dripping with ideology. Maximization of commodities is hardly the only

measure of a decent existence. The point is familiar, and no elaboration

is necessary.

State Socialism and State Capitalism

Let me turn to the two final points of reference: the Bolshevik or state

socialist and the state capitalist. As I have tried to suggest, they

have points in common, and in interesting respects they diverge from the

classical liberal ideal or its later elaboration in libertarian

socialism. Since I am concerned with our society, let me make a few

rather elementary observations about the role of the state, its likely

evolution and the ideological assumptions that accompany and sometimes

disguise these phenomena.

To begin with, it is obvious that we can distinguish two systems of

power, the political system and the economic system. The former consists

in principle of elected representatives of the people who set public

policy. The latter in principle is a system of private power, a system

of private empires, that are free from public control, except in the

remote and indirect ways in which even a feudal nobility or a

totalitarian dictatorship must be responsive to the public will. There

are several immediate consequences of this organization of society.

The first is that in a subtle way an authoritarian cast of mind is

induced in a very large mass of the population which is subject to

arbitrary decree from above. I think that this has a great effect on the

general character of the culture. The effect is the belief that one must

obey arbitrary dictates and accede to authority. And I think that in

fact a remarkable and exciting fact about the youth movement in recent

years is that it is challenging and beginning to break down some of

these authoritarian patterns.

The second fact that is important is that the range of decisions that

are in principle subject to public democratic control is quite narrow.

For example, it excludes in law in principle the central institutions in

any advanced industrial society, i.e. the entire commercial, industrial

and financial system. And a third fact is that even within the narrow

range of issues that are submitted in principle to democratic decision

making, the centers of private power of course exert an inordinately

heavy influence in perfectly obvious ways, through control of the media,

through control of political organizations or in fact by the simple and

direct means of supplying the top personnel for the parliamentary system

itself, as they obviously do. Richard Barnet in his recent study of the

top 400 decision makers in the postwar national security system reports

that most have, I quote now, “come from executive suites and law offices

within shouting distance of each other, in 15 city blocks in 5 major

cities.” And every other study shows the same thing.

In short, the democratic system at best functions within a narrow range

in a capitalist democracy, and even within this narrow range its

functioning is enormously biased by the concentrations of private power

and by the authoritarian and passive modes of thinking that are induced

by autocratic institutions such as industries, for example. It is a

truism but one that must be constantly stressed that capitalism and

democracy are ultimately quite incompatible. And a careful look at the

matter merely strengthens this conclusion. There are perfectly obvious

processes of centralization of control taking place in both the

political and the industrial system. As far as the political system is

concerned, in every parliamentary democracy, not only ours, the role of

parliament in policy formation has been declining in the years since

WWII, as everyone knows and political commentators repeatedly point out.

In other words, the executive becomes increasingly powerful as the

planning functions of the state become more significant. The House Armed

Services Committee a couple of years ago described the role of Congress

as that of a sometimes querulous but essentially kindly uncle who

complains while furiously puffing on his pipe but who finally, as

everyone expects, gives in and hands over the allowance. And careful

studies of civil military decisions since WWII show that this is quite

an accurate perception.

Senator Vandenberg 20 years ago expressed his fear that the American

chief executive would become the number one warlord of the earth, his

phrase. That has since occurred. The clearest decision is the decision

to escalate in Vietnam in February 1965, in cynical disregard of the

expressed will of the electorate. This incident reveals, I think, with

perfect clarity the role of the public in decisions about peace and war,

the role of the public in decisions about the main lines about public

policy in general. And it also suggests the irrelevance of electoral

politics to major decisions of national policy.

Unfortunately, you can’t vote the rascals out, because you never voted

them in, in the first place. The corporate executives and the

corporation lawyers and so on who overwhelmingly staff the executive,

assisted increasingly by a university based mandarin class, remain in

power no matter whom you elect.

Furthermore, it is interesting to note that this ruling elite is pretty

clear about its social role. As an example take Robert McNamara, who is

the person widely praised in liberal circles for his humanity, his

technical brilliance and his campaign to control the military. His views

of social organization, I think, are quite illuminating. He says that

vital decision making in policy matters as well as in business must

remain at the top. That is partly, though not completely, what the top

is for. And he goes on to suggest that this is apparently a divine

imperative. I quote: “God is clearly democratic, he distributes brain

power universally, but he quite justifiably expects us to do something

efficient and constructive with that priceless gift. That’s what

management is all about. Management in the end is the most creative of

all the arts, for its medium is human talent itself. The real threat to

democracy comes from under-management. The under-management of society

is not the respect of liberty, it is simply to let some force other than

reason shape reality. If it is not reason that rules man then man falls

short of his potential.”

So reason then is to be identified as the centralization of decision

making at the top in the hands of management. Popular involvement in

decision making is a threat to liberty, a violation of reason. Reason is

embodied in autocratic, tightly managed institutions. Strengthening

these institutions within which man can function most efficiently is, in

his words, “the great human adventure of our times.” All this has a

faintly familiar ring to it. It is the authentic voice of the technical

intelligentsia, the liberal intelligentsia of the technocratic corporate

elite in a modern society.

There is a parallel process of centralization in economic life. A recent

FTC report notes that the 200 largest manufacturing corporations now

control about two thirds of all manufacturing assets. At the beginning

of WWII the same amount of power was spread over a thousand

corporations. The report says: “A small industrial elite of huge

conglomerate companies is gobbling up American business and largely

destroying competitive free enterprise.” Furthermore it says: “These two

hundred corporations are partially linked with each other and with other

corporations in ways that may prevent or discourage independent behavior

in market decisions.” What is novel about such observations is only

their source, the FTC. They are familiar, to the point of cliche, among

left-liberal commentators on American society.

The centralization of power also has an international dimension. Quoting

from Foreign Affairs, it has been pointed that “on the basis of the

gross value of their output, US enterprises abroad in the aggregate

comprise the third largest country in the world, with a gross product

greater than that of any country except the United States and the Soviet

Union. American firms control over half the automobile industry in

England, almost 40% of petroleum in Germany, over 40% of the

telegraphic, telephone and electronic and business equipment in France,

75% of the computers. Within a decade, given present trends, more than

half of the British exports will be from American owned companies.”

Furthermore, these are highly-concentrated investments: 40% of direct

investment in Germany, France and Britain is by three firms, American

firms.

George Ball has explained that the project of constructing an integrated

world economy, dominated by American capital, an empire in other words,

is no idealistic pipe dream, but a hard headed prediction. It is a role,

he says, into which we are being pushed by the imperatives of our own

economy, the major instrument being the multinational corporation which

George Ball describes as follows: “In its modern form, the multinational

corporation, or one with worldwide operations and markets, is a

distinctly American development. Through such corporations it has become

possible for the first time to use the world’s resources with maximum

efficiency. But there must be greater unification of the world economy

to give full play to the benefits of multinational corporations.”

These multinational corporations are the beneficiary of the mobilization

of resources by the federal government, and its world wide operations

and markets are backed ultimately by American military force, now based

in dozens of countries. It is not difficult to guess who will reap the

benefits from the integrated world economy, which is the domain of

operation of these American based international economic institutions.

At this stage in the discussion one has to mention the specter of

communism. What is the threat of communism to this system? For a clear

and cogent answer, one can turn to an extensive study of the Woodrow

Wilson Foundation and National Planning Association called the Political

Economy of American Foreign Policy, a very important book. It was

compiled by a representative segment of the tiny elite that largely sets

public policy for whoever is technically in office. In effect, it’s as

close as you can come to a manifesto of the American ruling class.

Here they define the primary threat of communism as “the economic

transformation of the communist powers in ways which reduce their

willingness or ability to complement the industrial economies of the

West.” That is the primary threat of communism. Communism, in short,

reduces the willingness and ability of underdeveloped countries to

function in the world capitalist economy in the manner of, for example,

the Philippines which has developed a colonial economy of a classic

type, after 75 years of American tutelage and domination. It is this

doctrine which explains why British economist Joan Robinson describes

the American crusade against communism as a crusade against development.

The cold war ideology and the international communist conspiracy

function in an important way as essentially a propaganda device to

mobilize support at a particular historical moment for this long time

imperial enterprise. In fact, I believe that this is probably the main

function of the cold war. It serves as a useful device for the managers

of American society and their counterparts in the Soviet Union to

control their own populations and their own respective imperial systems.

I think that the persistence of the cold war can be in part explained by

its utility for the managers of the two great world systems.

There is one final element that has to be added to this picture, namely

the ongoing militarization of American society. How does this enter in?

To see, one has to look back at WWII and to recall that prior to WWII,

of course, we were deep in the depression. WWII taught an important

economic lesson, it taught the lesson that government induced production

in a carefully controlled economy – centrally controlled – could

overcome the effects of a depression.

I think this is what Charles E. Wilson had in mind at the end of 1944

when he proposed that we have a permanent war economy in the postwar

world. Of course, the trouble is that in a capitalist economy there are

only a number of ways in which government intervention can take place.

It can’t be competitive with the private empires for example, which is

to say that it can’t be any useful production. In fact, it has to be the

production of luxury goods, goods not capital, not useful commodities,

which would be competitive. And unfortunately there is only one category

of luxury goods that can be produced endlessly with rapid obsolescence,

quickly wasting, and no limit on how many of them you can use. We all

know what that is.

This whole matter is described pretty well by the business historian

Alfred Chandler. He describes the economic lessons of WWII as follows:

“The government spent far more than the most enthusiastic New Dealer had

ever proposed. Most of the output of the expenditures was destroyed or

left on the battlefields of Europe or Asia but the resulting increased

demand sent the nation into a period of prosperity, the likes of which

had never before been seen. Moreover, the supplying of huge armies and

navies fighting the most massive war of all time required a tight

centralized control of the national economy. This effort brought

corporate managers to Washington to carry out one of the most complex

pieces of economic planning in history. That experience lessened the

ideological fears over the government’s role in stabilizing the

economy.”

This is a conservative commentator, I might point out. It may be added

that the ensuing cold war carried further the depoliticization of the

American society and created the kind of psychological environment in

which the government is able to intervene in part through fiscal

policies, in part through public work and public services, but very

largely, of course, through defense spending.

In this way, to use Alfred Chandler’s words, “the government acts as a

coordinator of last resort when managers are unable to maintain a high

level of aggregate demand.” As another conservative business historian,

Joseph Monsen, writes, “enlightened corporate managers, far from fearing

government intervention in the economy, view the new economics as a

technique for increasing corporate viability.”

Of course, the most cynical use of these ideas is by the managers of the

publicly subsidized war industries. There was a remarkable series in the

Washington Post about a year ago, by Bernard Nossiter. For example, he

quoted Samuel Downer, financial vice president of LTV Aerospace, one of

the big new conglomerates, who explained why the postwar world must be

bolstered by military orders. He said: “Its selling appeal is the

defense of the home. This is one of the greatest appeals the politicians

have to adjusting the system. If you’re the president and you need a

control factor in the economy, and you need to sell this factor, you

can’t sell Harlem and Watts but you can sell self-preservation, a new

environment. We are going to increase defense budgets as long as those

bastards in Russia are ahead of us. The American people understand

this.”

Of course, those bastards aren’t exactly ahead of us in this deadly and

cynical game, but that is only a minor embarrassment to the thesis. In

times of need, we can always follow Dean Rusk, Hubert Humphrey and other

luminaries and appeal to the billion Chinese armed to the teeth and

setting out on world conquest.

Again, I want to emphasize the role in this system of the cold war as a

technique of domestic control, a technique for developing the climate of

paranoia and psychosis in which the tax payer will be willing to provide

an enormous endless subsidy to the technologically advanced sectors of

American industry and the corporations that dominate this increasingly

centralized system.

Of course, it is perfectly obvious that Russian imperialism is not an

invention of American ideologists. It is real enough for the Hungarians

and the Czechs, for example. What is an invention is the uses to which

it is put, for example by Dean Acheson in 1950 or Walt Rostow a decade

later, when they pretend that the Vietnam war is an example of Russian

imperialism. Or by the Johnson administration in 1965 when it justifies

the Dominican intervention with reference to the Sino-Soviet military

bloc. Or by the Kennedy intellectuals, who as Townsend Hoopes put it in

an article in the Washington Monthly in the last month, were deluded by

the tensions of the cold war years, and could not perceive that the

triumph of the national revolution in Vietnam would not be a triumph for

Moscow and Peking. It was the most remarkable degree of delusion on the

part of presumably literate men.

Or, for example, by Eugene Rostow who in a recent book that was very

widely praised by liberal senators and academic intellectuals, outlined

the series of challenges to world order in the modern era as follows:

“Napoleon, Kaiser Wilhelm, Hitler,” and continuing in the postwar world,

“general strikes in France and Italy, the civil war in Greece, and the

attack on South Vietnam where Russia has put us to severe tests in its

efforts to spread communism by the sword.”

This is a very interesting series of challenges to world order:

Napoleon, Kaiser Wilhelm, Hitler, general strikes in France and Italy,

the civil war in Greece and the Russian attack on South Vietnam. If one

thinks it through, he can reach some pretty interesting conclusions

about modern history.

One can continue with this indefinitely. I mean to suggest that the cold

war is highly functional both to the American elite and its Soviet

counterpart who in a perfectly similar way exploit Western imperialism,

which they did not invent, as they send their armies into

Czechoslovakia.

It is important in both cases in providing an ideology for empire and

for the government subsidized system here of military capitalism. It is

predictable then that the challenges to this ideology will be bitterly

resisted, by force if necessary. In many ways, American society is

indeed open and liberal values are preserved. However, as poor people

and black people and other ethnic minorities know very well, the liberal

veneer is pretty thin. Mark Twain once wrote that “it is by the goodness

of God that in our country we have those three unspeakably precious

things: freedom of speech, freedom of conscience, and the prudence never

to practice either of them.” Those who lack the prudence may well pay

the cost.

Roughly speaking, I think it is accurate to say that a corporate elite

of managers and owners governs the economy and the political system as

well, at least in very large measure. The people, so-called, do exercise

an occasional choice among those who Marx once called the rival factions

and adventurers of the ruling classes. Those who find this

characterization too harsh may prefer the formulations of a modern

democratic theorist like Joseph Schumpeter who describes modern

political democracy, favorably, “as a system in which the deciding of

issues by the electorate is secondary to the election of the men who are

to do the deciding. The political party”, he says accurately, “is a

group whose members propose to act in concert in the competitive

struggle for political power. If that were not so, it would be

impossible for different parties to adopt exactly or almost exactly the

same program.” That’s all the advantages of political democracy, as he

sees it.

This program that both parties adopt more or less exactly and the

individuals who compete for power express a narrow conservative

ideology, basically the interests of one or another element in the

corporate elite, with some modifications. This is obviously no

conspiracy. I think it is simply implicit in the system of corporate

capitalism. These people and the institutions they represent are in

effect in power, and their interests are the national interest. It is

this interest that is served primarily and overwhelmingly by the

overseas empire and the growing system of military state capitalism at

home.

If we were to withdraw the consent of the governed, as I think we

should, we are withdrawing our consent to have these men and the

interests they represent, govern and manage American society and impose

their concept of world order and their criteria for legitimate political

and economic development in much of the world. Although an immense

effort of propaganda and mystification is carried on to conceal these

facts, nonetheless facts they remain.

We have today the technical and material resources to meet man’s animal

needs. We have not developed the cultural and moral resources or the

democratic forms of social organization that make possible the humane

and rational use of our material wealth and power. Conceivably, the

classical liberal ideals, as expressed and developed in their

libertarian socialist form, are achievable. But if so, only by a popular

revolutionary movement, rooted in wide strata of the population, and

committed to the elimination of repressive and authoritarian

institutions, state and private. To create such a movement is the

challenge we face and must meet if there is to be an escape from

contemporary barbarism.