Sunday, May 24, 2015

competing as a royal screwing

The ideological work of the capitalist system is seen at its most successful in creating the character mask of the competitor for the laborer. In our time, the workers work against each other not only in terms of the price they put, or can put, on their work, but also in as much as they must partake of the treadmill of skilling and de-skilling, which has advanced beyond what it was in the first industrial era - much as Marx predicted. The capitalist system seeks the maximum level of interchangeability among all the members of what I’d broadly call the working class – that is, the class who do not own the means of production. Thus, as members of that class strive to attain a higher price for their skills – investing in education and training – the organizations that hire them strive to devalue those skills by breaking down the peculiarities inherent in their routines. That is, the system strives to make them purely quantifiable. Consequently, we see such things as this: in the white collar world – say, of academia – the ‘uniqueness’ of the academic skill set is continually confronted (and the academic anguished by) the quantitative protocols by which the organization not only judges it, but by which it shapes an interchangeable work force. This is true everywhere there is R and D – the single inventor is replaced with the laboratory worker, the engineer is continually forced to market his labor inside the organization, etc. In the eighties, it became faddish – and still is – to speak of the worker’s “owning” their projects. Now, of course, the workers know that the projects are owned by the company. But the false ownership relation does its ideological work by turning the workers into small entrepreneurs, engaged in rivalry one with the other, or in temporary alliances. In this way, the workers never face the organization as an associated whole. To call the project workers the ‘owners’ of the project is an interesting instance of what Althusser meant by interpellation – that the first ideological act is the identification implicit in greeting, so to speak. 

Friday, May 15, 2015

Famines and Slumps: Galiani versus Smith, or a rehearsal for the Keynesians versus Chicago part one



It struck me as a bit of a revelation, yesterday, that a now obscure debate about trade legislation in 18th century France resonates in economic thinking to this day, as the sides that were drawn in that debate took a form that was inherited by political economists who, over the last two hundred and fifty years,   have variously called themselves by different names: liberal or conservative, radical or orthodox, saltwater or freshwater, etc. They are even now arguing about the meaning of the business cycle - which has a much more insistent position in economic thinking, now, than famine. Yet it was famine that first prefigured the division, within the circle of enlightenment thinkers, between what one might call, anachronistically, the pragmatists, and those that represent the economic mainstream, from Smith to Robert Lucas.  Until Keynes, the pragmatists had no central, doctrinal figure – but in the eighteenth century they did have Ferdinando Galiani, whose Dialogue on the commerce of grain conceals one of the wittiest texts of the 18th century beneath a title only an accountant could love.
The Dialogue came out in 1770.A little background, maestro, before we proceed with the explication de texte razzmatazz
In the 1760s – and here the go to texts are Stephen Kaplan’s series of books about bread and politics in 18th century France, including Bread, Politics and Political Economy in the Reign of Louis XV and the foreward to his edition of Galiani’s Le Bagarre – the physiocrats temporarily triumphed in their struggle to de-regulate agriculture, both in France and in Tuscany – both regions, as it happens, well known to Galiani. The traditional triumphalist history concedes, at this point, that instead of what was supposed to happen in theory –the increase in competition and efficiency, and the lowering of prices for grain – there followed a number of famines. By the end of the 1760s, the circle of philosophes around the encyclopedists were divided between the orthodox adherants of the free trade doctrine and dissenters, including Diderot. It was in 1770 that Galiani, who was previously seen as an advanced economist of the free trade type, published his dialogue. All hell broke loose.
Karl Gunnar Persson summarizes the physiocrat theory well: “ only free gran trade can achieve price stability. Local price stability required exports in tiems of abundant harvests, moderating the decline in prices. In lean years imports would make price increases less violent than if a region had to rely exclusively on its own supplies. Free entry to the grain trade was vital because with many merchants excess profits in the grain trade would not prevail: they would be arbitraged away by competing merchants.” (4)
One senses, here, the invention of a device that would be used over and over in the next two centuries. One was the important place given to the natural equilibrium of the unimpeded market. It would adapt to changed circumstances so as to bring about the most efficient outcome, unlike outcomes produced by regulation. The second is the place of competition. Competition would insure that the price system corresponded to that promised by the free market. This competition, it was assumed, would never devolve into monopoly. If it did, the price distortions would lure into the market space other competitors.
The physiocrats of course had other theories that are rejected today by mainstream economics – most notably, the idea that all wealth is based on agriculture. But this we will leave to one side.
Next, lets take our hero – Abbé Galiani. Ferdinando Galiani was a prodigy, writing letters like a dean when he was seventeen, lecturing when he was eighteen. Born in 1728, Galiani came from a distinguished and educated family. He wrote his treatise on money at the age of twenty; Schumpeter, among others, has remarked on its ingeniousness, both by the hypothesis of a subjective theory of value –  which is of course the way station to the marginalist revolution in the 19th century – and for his remarks on general equilibrium.
By the time he came to write the dialogues on the grain trade, Galiani had had a lot of subsequent experience as both a writer and an adminstrator. He had, in the latter role, experienced the brunt of famine in Tuscany. It is usual to call Galiani a sceptic, which is a polite way of saying that it is hard to place him in some whiggish history of economics. I think that scepticism is rooted in two things, intellectually: one is the spirit of Vico, who seemed to have influenced all Napolitan thinkers. I’m thinking especially of Vico’s famous strike against Cartesian philosophy, On the Study methods of our time, with its rebuke of the geometrical method in philosophy. The other influence, which I may simply be making up, is Shaftesbury. Shaftesbury was a Napolitan thinker by adoption, one might say, since he retired and died there.  Galiani was not an anti-Lockian, like Shaftesbury, whose animus was born of his personal connection; but  about reasoning I think Galiani was of the same mind as Shaftesbury in moving the cursor of definition from the individual to the social: it was a product of sociability rather than introspection. It was the product of dialogue and the conditions that made dialogue possible.
Now one of our persona is in place. Our other persona – for I am making this a two person essay, radically foreshortening the whole thing – is a man who needs no introduction, as he has been in your office, kitchen, bedroom and dreams whether you know it or not: Adam Smith.
I will hold back on the background with Smith. Since he is the more known of our figures, I will merely allude to the fact that the Scotland in which Smith lived and worked was, like the Kingdom of Naples, a primarily agricultural place. Scotland, in 1695, emulated the English by encouraging the export of grain in order to bring in national income. It was a very short lived sport of a policy:  “In Summer, 1695, they were very busie in giving rewards for having their Corn carried abroad, and a few months after, as impatiently employed in buying it back again.” (Karen Cullen, 31) In fact, over the next five years, the harvests in Scotland were so bad that the people experienced scarcity and famine, only returning to the norm in 1700. As demand increased, so did prices: “In the two years from 1695, prices increased as much as 110 percent… In 1697, prices moderated a little, but in 1698 and 1699 they rose to new heights. Though precise figures do not exist, large numbers of the population died from starvation and disease. The dearth had serious consequences for rural incomes; many tenants faled to porduce a surplus.” (Richard Saville, 39)

The argument I am going to make is that the formal couple of regulation or deregulation and famine have a conceptual similarity to other forms of regulation or deregulation of cyclical economic processes. And it is this conceptual similarity that makes the debate between Galiani and Smith an interesting precursor of the contemporary debates between slightly heterodox Keynesian approaches to the economy and orthodox ones.

Tuesday, May 12, 2015

the parable of methods

In a letter to Sophie Valland, Diderot gave an account of an argument concerning method between his friend Grimm and M. Le Roy. Grimm hated method, or at least talk about method – either you knew how to arrange things through the force of things, or you do not. Le Roy took the opposite opinion. Just then the secretary of the ambassador of Naples in France – Ferdinando Galiani – spoke up:

“My friends, I am reminded of a fable: listen. It will be, perhaps, long, but it won’t bore you.
One day, in the midst of the forest, there arose a dispute concernng song between the nightingale and the cuckoo. Each vaunted his talent. “what bird, said the cuckoo, has a song as easy, as simple, as natural and also as measured as me?|”
- What bird, said the nightingale, has one that is sweeter, more varied, more lively and more light and more touching than mine?
- The cuckoo:  I say little, but what I say has weight, and order, and is thus memorable.
- The nightingale: I love to talk: but I am always new, and I am never tiring. I enchant the forests. The cuckoo saddens them. He is so attached to the lessons of his mother that he would not dare chance a tone that he hasn’t got from her. Myself, I don’t recognize a master. I play with the rules. It is when I infringe on them that I’m admired most. What comparison can there be between his fastidious method and my happy inspirations!

The cuckoo sought to interrupt the nightingale several times. But the nightingale sang on and didn’t listen: it is a little their characteristic fault. Ours, carried away by his ideas, followed them with rapidity, without caring about the responses of his rival.

However, after  the exchange of replies and counterreplies, they agreed to give the judgment of their dispute up to a third animal.
But where to find a third equally instructed and impartial who could judge them? It is difficult to find a good judge. The went in search of one everywhere.
They were crossing a meadow when they perceived an ass with the most grave and solemn aspect. Since the beginning of assdom, none had ever sported such long ears. “ah, said the cuckoo, in seeing them,”we are really fortunate that our dispute is an affair of  ears: here’s our perfect judge. God created him for us especially!”
The ass was eating grass. He hardly imagined that one day he’d be called upon to judge music. But Providence amuses itself with all kinds of things. Our two birds abased themselves before him, complimented him on his gravity and judgment, and exposed to him the subject of their dispute, after which they humbly begged him to listen to them and decide.

But the ass, hardly turning his heavy head and not missing a blade of grass, made them a sign with his ears that he was hungry and that today was not his day to assume the judge’s seat. The birds insisted: the ass continued to graze. In so doing, his appetite eased. There was some trees planted along the path through the meadow. “oh well, “ he told them, go there. I surrender to your wish: you will sing, I will digest, I will listen to you, and then I will tell you my opinion.

The birds went like a shot and perched themselves. The ass followed them with the air and step of a judge made of cement walking through the halls of the palace of justice. Finally he arrived and said: “begin, the court will hear you.” He was of course the sole court.

The cuckoo said: My lord, my argument is such that you cannot miss a word. Grasp the character of my song and, above all, observe the artifice and the method.” Then, breathing deeply and flapping his wings to emphasize the beat, he sang: coocoo coocoo coocoo coooocooo coocoo. And after having combined this in all possible ways, he fell silent.

The nightingale without a preambule deployed his voice, threw himself into the boldest of modulations, followed the newest tunes, and the ones that were the most rare. His cadences were such that they verged on the breathless; now one heard the sounds fall and murmur from the bottom of his throat like the ripples of a stream which loses itself among the pebbles, now the voice went higher, swellled little by little, filled the entirety of the air and remained there as though suspended. It was successively tender, light, brilliant, pathetic and painted whatever character it took on. But his song was not made for everybody.

Carred away by his enthusiasm, he kept singing; but the ass, who had already yawned many times, stopped him and said. I don’t doubt that everything that you sang there is very beautiful, but I don’t understand it. It appeared to me to be bizarre, tangled, and incoherent. You are perhaps more expert than your rival, but he is more methodical than you – and I, I am for method!


Such is the parable of methods.

Sunday, May 10, 2015

Gehlen on alienation, Marx, and instituted freedom

In 1952 the conservative sociologist (and literally, I should note, a former Nazi one of whose students, Fritz Arlt, was a key functionary in the destruction of Poland’s Jews) Arnold Gehlen published a famous paper entitled “Over the birth of freedom from alienation.” The paper had two goals. One was to establish the essentially idealistic geneology of Marx’s notion of alienation. Gehlen traces it back to Fichte’s notion that the I in actualizing and externalizing itself experiences some essential loss of control. That feeling of loss and the desire to reestablish total control of the ego’s activity is compared, by Gehlen, to the French revolutionary terrorist program to establish total control in order to have total freedom – except, as Gehlen amusingly puts it, Fichte was just storming the Bastille of his own head. The idealistic assumption about the total I, here, is then traced through its appearance in Schelling and Hegel up through Marx and, to an extent, Freud.
As Gehlen says, Fichte’s insight was a genuine idea – and genuine ideas are rare in philosophy. Instead of claiming that Fichte is simply wrong about the “I” and its self-activity, Gehlen claims that alienation, as it develops in German idealist philosophy, describes a genuine phenomenon. That phenomenon concerns a two-fold sense of the world: on the one hand, the feeling that “man” or some creator has constructed the world, and on the other hand, the feeling that the creator is in the power of the created. This feeling, of course, slips from man the collective to oneself as the individual, a part of a partial collective. This powerful explanatory schema was employed, according to Gehlen, by the next generation of left Hegelians, like Feuerbach, to explain and demystify religious belief. God, it turns out, is a perfect symbol of the alienation process at work: man creates God, and then reverses the relationship so that it is God, in myth, who creates man. That historical and intellectual reversal is, perhaps, the central property of myth. Myth in this enlightment sense is that which both perceives the power relationships implicated in the real and reverses them. Thus, myth cannot be dispelled simply by claiming that myth is a lie – an illusion is not a lie. It is a genuine phenomenon out in the world. Here Gehlen is content to point to how illusion is laid on the table and understood, freeing us from it. Myself, I think he could have gone further: it must be dissipated not by analysis, but by the movement of the angle of one’s vision. Analysis might convince one that what one is seeing is an illusion, but only that practical movement can dissipate the illusion.
But Gehlen isn’t just investigating the idealistic background of Marx’s comments in The German Ideology. He is also interested in Fichte’s idea on account of his own idea – that the human being characterized by a fundamental lack, which is at the nucleus of her or his consciousness. Gehlen’s philosophical anthropology might argue with the details of Fichte’s sense of the I, but not with the general structure. Fichte, according to Gehlen, characterized the lack of control to which the I is condemned as the realm of bondage, of unfreedom. Here’s the rub, for Gehlen: in fact, the dream of total control, of the identity, say, of product and intention, is not the highest degree of freedom, but instead an erroneous reading of what freedom is all about. As Gehlen puts it, in a rhetorical flourish that would gain the approval of any Cold War liberal anti-communist: “Whosever enthusiastically realizes the feeling of freedom and the great determnation of man, whosever wishes to live out this titanic relief into which this feeling streams, whoever in this thought feels his heart beating more strongly, will, by an enigmatic destiny, find himself becoming the pacesetter of the Guillotine.”
Of course, Gehlen’s words are harder to read if we put them against the background of the pacesetters of the concentration camp, like his former student Arlt, whose thesis comparing “Israelite” women and Icelandic women – to the advantage of the former – was passed right on through by his thesis advisor. But looking aside from this: Gehlen’s notion is that the moment of alienation is not a moment in which freedom is lost, but is, rather, when it becomes a practical reality. Freedom is never direct: Humans can to themselves and their kind only maintain enduringly an indirect relationship, they must take a detour, alienate themselves, find themselves, and for this purpose we have institutions. These are the clearly human produced forms, as Marx saw correctly, in which the spiritual, an even in its greatest riches and pathos an undulating material, is realized, is interlaced in the flow of things and is thereby able to endure.”

This perspective, which welcomes alienation, bears the distinct flavor the capitalist consensus of the time – when, of course, the mention of alienation could not be avoided. It lives on when alienation is no longer a word to conjure with – has been almost unanimously junked by both the rational choice right and the rational choice left.

However, I am suspicious of this junking, its motives and its function. I'll return to this another time.


Friday, May 08, 2015

the no alternative years

Labour  failed in the most basic ways. They had four years to develop a counternarrative, but instead developed a counter-excuse: "we were so austerian, as austerian as you!" Basically, if you can't capitalize on the reserve of good feeling for government agencies like National Health and the reserve of bad feelings for privatized agencies, like the train system (ooops, that dittoed under Blair), then you should not play ball.
There are good defeats and bad defeats. A good defeat is one that lays the ideological groundwork for the future. A bad defeat is one that leaves behind a wreckage of opportunism and users. The Labour defeat (why actually are they still called Labour?) is of the second variety. It was hard to care when, as was obvious months ago, they had succeeded in turning certain victory into defeat. Running on a blairite message of nudgery and sticking to austerity against a tory party that was also running on a blairite message, they lost lost lost. And then, too, there was the repulsive - to my mind - Milliband, who has the look and feel of an upper class jerk.
So why didn’t Labour hammer austerity? Well, you have to talk about why the Great Slump happened if you are truly going to hammer austerity. And that means you have to talk about the City - which were and are great friends of the Blairites. There is a stupid analytic habit of thinking of elections as separate events from the rest of the political flow. They aren't. By choosing to softpedal the problems caused by the City, Labour backed itself into a corner long ago. Plus, of course, they have to bear the burden of the insane and wicked foreign policy of the Blair years. Given these burdens, one had to mark Labour down as the underdog from the beginning. The excuse that it was mean old Murdochian media that put them down won't work - Labour's victories have traditionally come against the establishment press – the one exception being Blair, and we know the sacrifices that Blair’s endorsement imposed. To face that media attack requires being nurturing of a structure that can withstand it and attack back - organized labour – to create a counternarrative. Blair (whose victories were a disaster for Labour) carefully cut the tie to labour. While Ed Balls retreat on austerity was bad in the campaign, it was the symptom of a wholesale disintegration of the old labour structure. 
A good case in point is transportation. Have you ever ridden on a London bus or a british train? They are awful and much, much more expensive than theircounterparts on the continent.
But the thatcherism that Blair adopted and passed on to his successors disallows any discussion of the issue of privatisation - which was accomplished, in the UK, after the Thatcher government thoroughly trashed the service and maintenance of the nationalized train system. A simple populist program that would call for comparable pricing to the norm in the EU would actually have put money in the pockets of the wage class. But it would have offended the city, and the blairites, and so it can't even be spoken. Instead, the pledge was a process one of handing power over buses back to regional authorities and blah blah blah. It was typical of the thrd way style: a lot of boring process talk to get around offending the moneyed. 
I think this election is a premonitory of the next pseudo-left wipeout, in France. The PS has set itself up for one of those defeats it will be hard to survive. Unfortunately, we will have a rightwing Europe to contend with in the next decade. Unfortunately, too, it won’t look much different than if we had a pseudo-left Europe to contend with in the next decade. No alternative, once a slogan, is now a cancer.


Thursday, May 07, 2015

enough mass death, please

Excellent article about what is happening in Yemen.

It is part of the comedy of our time that the assembly in France is voting in measures to strip the citiizens of their privacy in the name of protecting them against "terrorism", when their foreign policy is directed towards flooding the Middle East with arms and helping the Saudis destroy countries like Yemen, thus creating the perfect conditions for terrorism. It is as if the government were promoting a strict quarantine of its citizens on the one hand while funding a petri dish firesale of toxins on the other hand.
When Ukraine split into two pieces, the former president fled to Russia, and Putin's Russia supplied the rebels in the East, there was universal condemnation from the bien pensants. There was even a comic conference of the usual pro war wankers, the BHL types, in Kyev. When Yemen split into several pieces, the former president fled to Saudi Arabia, a totalitarian country, and SA bombed the shit out of Yemen to restore him, without a whimper from the bien pensant crowd. The US jumped into the fray on behalf of those friends of democracy, the House of Saud, and have had a great time assisting with the dronage. Hmm, meanwhile, the outrage from the thumbsuckers at the New Yorker or the NYRB - the crowd that includes George Packer and Ben Judah, who froth every time Putin winks are busy doing other things - honing their TED talks, no doubt.
But I'm a wee little pee, not a Gargantua of liberal interventionist virtue. And I'm raising my wee little pea voice to say: stop bombing the shit out of Yemen! Immediate aid for the people, who are on the verge of an Ethiopian style famine!
I have long given up hope that the Western states are anything but the pawn of their plutocrats. But perhaps on this issue, the good side can win. Enough of mass death, please.

Monday, May 04, 2015

desperate characters

I am reading Paula Fox’s novel, Desperate Characters, and I’m grudgingly forking over the admiration. The grudging comes not because of anything having to do with Fox, but because of the backstory that the novel was “re-discovered” and republished due to Jonathan Franzen, who wrote an essay – always a venue for a Franzen ego-trip – about how good it was and that it was better than Updike or Bellow. Well, it is pretty obvious, given Franzen’s sexism, that he was using Fox as a proxy to say that he was better than Updike or Bellow – see, even a girl is better than those big boy writers!

I am reminded of Bellow – less of Updike – by the formal structure and scene of Fox’s novel. It is like Bellow’s Mr. Sammler’s Planet in that the novel takes the urban decay of NYC in the late sixties as its pervading scene.  The adventure is in the street, while all the stage setting takes place in various lengthily described rooms, where the party, the lunch, or the wait for a doctor takes place. Such staginess is, perhaps, endemic to life in the metropolis, which unfolds, for the prosperous, in a milieu of interior decorating and chatter. There is an ineradicable theatricality about such scenes, and Fox is extremely good at making it into novelistic. One should also note how of the times this is  – once you have established a standard of furnishing, the garishness and shoddiness of public space becomes all the more oppressive and threatening, all the more indicative of some catastrophic slip in the moral economy. J.K. Galbraith had already pointed out in the Affluent Society, which was written in the fifties, that underinvestment and undervaluing of public space was a creeping disaster in America. It was as though evidence of adequate funding would be taken by the middle class as an affront, since it would visibly use their tax dollars.  
Fox’s brilliant idea is to set her central couple, Otto and Sophie Bentwood, in a gentrifying neighborhood in Brooklyn. That mongrel of a word, gentrifying, hadn't yet started running around in the  vocabulary of the sixties,  but all the same we recognize the attributes, the the contact zone that, once established, allows Fox to play off public squalor and private order to the effect of undermining both the security and the virtues of the latter. Although Fox is evidently on the liberal side as a person, as we can see from one of her authorial interjections about a George Wallace for President poster, still, the pathology of the downward tending exceeds the perception of our well to do protagonists by enough of a margin that one feels more than a whiff of the Moynihan Report. The poorer residents do things like piss out the window, throw garbage on their front lawn, and kneel, drunk and vomiting, on the sidewalk. Even doing more normal things, like borrowing 11 dollars for a train fare to see a dying parent, they do it with a sort of pathological panache.
The volume on this kind of things is, of course, turned up in Bellow’s Mr. Sammler’s Planet. Bellow is too good a novelist to be confined to his intentions, I should say. However much he intends Sammler to be a sort of moral center, Sammler’s sexism doesn’t really convince the reader that this is the morally centered way to see the world – the women he directs it upon are just too concretely realized, Bellow’s own opinions be damned. They are dreamed too well to follow the will of the dreamer. High art, y’all.
Fox is not aiming for the panoramic effect in Desperate characters; none of the characters “speak” for her, nor, in spite of the numerous references to urban decay, is there a lot of larger cultural pointmaking. There is a subtext of references to French literature – Sophie being a native speaker – with the chief names being Racine, Balzac and Zola. Like Balzac, Fox has no Flaubertian neurosis about inserting herself as an author in the text. This makes the text more complex. At one point, Otto, who we have seen as cranky and given to yelling at Sophie or grumbling at her at least, is in bed with his wife, when Fox ESPs his heart:  “He loved Sophie – he thought about her, the kind of woman she was – and she was so tangled in his life that the time head sensed she wanted to go away from him had brought him more suffereing than he had conceived it possible for him to feel.”
A lesser author might have tried to wedge this news announcement about Otto’s deepest feelings into the story indirectly. Fox simply cuts to the chase. And it is all the bolder in that this announcement directly proceeds Otto’s marital rape of his wife, which ends, after he orgasms, with his thought: “He’d got her that time.”
Not, I should say, that Sophe recognizes Otto’s act as rape, either. The couple are a curious blend of insightful and blind.

This is to say: I’m glad I ignored Franzen’s recommendation and read the novel anyway.

Nervous nellie liberals and the top 10 percent

  The nervous nellie liberal syndrome, which is heavily centered on east atlantic libs in the 250 thou and up bracket, is very very sure tha...