The Sarkari Doublespeak?
The Union Minister Nitin Gadkari while talking to the journalists of The Indian Express (January 4, 2021) said:
“….after the Green Revolution, we now have surplus rice. Prior to 2020’s production, we had about 280 lakh tonnes of rice in our godowns. We can give rice to the entire world. In case of corn, the MSP is Rs 1,700, when the market price is about Rs 1,100. Last year, we exported 60 lakh tonnes of sugar, providing a subsidy of Rs 600 crore. Why is it that the cost of sugar in the international market is Rs 22 per kg but we are paying Rs 34 per kg for sugarcane? Our MSP is more than the international and market prices, and that is the problem.
I have been talking about ethanol for the last 12 years. But the permission to convert foodgrains (to fuel) was not granted. We import fuel worth Rs 8 lakh crore. We can make 480 litres of ethanol from 1 tonne of rice. From 1 tonne of corn, we can make 380 litres of ethanol. The economy of Bihar and Uttar Pradesh will be transformed.”
Ironically, Gadkari is openly considering the MSP as a problem, when his government is trying hard to convince the farmers that it does not intend to remove the MSP. At the borders of Delhi, farmers are protesting against the farm reform acts and one of their main demands is to keep the institution of MSP intact!
Surplus Foodgrains and the Hungry Poor – A Paradox?
The minister while mentioning about overflowing stocks in godowns probably forgot that this overflow is not due to surplus production, but the godowns are full because a large section of the Indian population is stricken by hunger. They lack the purchasing power to buy food items and hence the stockpile; which for the government is an achievement as well as a cause of worry.
The minister and the current government may take pride like their predecessor on the overflowing food stock, but reality is far from being rosy, or rather it is bleak.
Almost 20 crore Indians go to bed hungry, and about one third of the world’s hungry lives in India. In the Global Hunger Index 2020, India ranked 94 among 107 countries and has been categorised as ‘serious’. The report further mentioned that 14 per cent of India’s population is undernourished. It also says that the country recorded a child stunting rate of 37.4 per cent. Stunted children are those who have a “low height for their age, reflecting chronic undernutrition”. (The Indian Express, October 19, 2020)
The State of Food Security and Nutrition in the World, 2020 report by the FAO further reveals the state of abject poverty faced by the large population of the country. It reported, 189.2 million people are undernourished in India. By this measure 14% of the population is undernourished in India. Also, 51.4% of women in reproductive age between 15 to 49 years are anaemic. Further, according to the report, 34.7% of the children aged under five in India are stunted (too short for their age), while 20% suffer from wasting, meaning their weight is too low for their height. Malnourished children have a higher risk of death from common childhood illnesses such as diarrhea, pneumonia, and malaria.
A country with such a high level of hunger and malnutrition cannot be then termed as food sufficient and the logic of moving away from what is termed as ‘cereal trap’ by the official economists, does not hold ground. In fact it is the other way round. The country has enough grain because the vast majority have been denied access to it.
The surplused population of India has been driven out of the food market by making it economically inaccessible. They over years have become the proverbial ‘lost tribe’ whose life and well being does not bother the government, either at the centre or the states. They no longer hog the headline hence political outfits be it of any orientation also do not care about them.
Finance Capital, Agriculture & Surplus Population – The Logic of Capital vs the Logic of Life
To the mingled cries of the impoverished and the dying masses, the government has formulated acts that would intensify capitalist accumulation in the agrarian sector. The rate of capital accumulation and reproduction in agriculture cannot increase until it is vertically integrated with commercial and industrial capitals organised in agribusinesses and otherwise.
Furthermore, today capitalist accumulation is dominated by the finance capital, which is not simply the institutionalised merger of banking and industrial capital. In the current phase of neoliberalism, the circulation of money is increasingly making itself independent of commodity production and circulation, i.e., the real economy. Through various mechanisms, instruments and institutions of finance, capital is able to attract and accumulate surplus value anticipated and actualised in the production process without really engaging with it. The recent farm acts restructure the relationship of agriculture with commercial, and industrial interests in such a manner that the whole sector can be open for financial predation.
Hence, instead of food crops the government wants the farmers to grow cash crops to be utilised by the industries, be it in the form of ethanol or other industrial products. The profit maximisation is the key. People’s survival becomes secondary.
The myth of food self sufficiency being dished out by the government and its experts would dispel in thin air, as soon as the purchasing power increased of the dispossessed. The hungry poor and producers of the country in fact if they decide to feed themselves would be found wanting to raise the production as well they might even have to increase the area of current cereal cultivation. The entire gullible story of cereal trap and move to cash crop, has been built on the edifice of hunger, malnutrition and poverty.
The financialised logic of capital in which the Indian state has long been caught up has led to a progressive surplusing of population in India which could sustain themselves in various levels of informal economies of agriculture and industry. It is now through various legal, structural and digital mechanisms these economies are being further opened up for their direct integration in the logic of finance.
The move towards cash crop as well as diverting the agrarian land to other commercial use, ranging from industrial use to even golf course would simply mean pushing a vast segment of the population currently reproducing themselves through agricultural work towards further surplusing. Pulling people from the agricultural to industrial sector proved progressive during the initial phase of capitalist development, where the industries were able to absorb the latent force into industrial wage work. But, in the era of neoliberalism where we have been witnessing jobless development and the rate of new job creation is diminishing, the working masses of the country are at the verge of total destitution. The provisions of these three acts points to the same direction. Marx once said:
“in a declining state of society — increasing misery of the worker, in an advancing state — misery with complication, and in a fully developed state of society — static misery.”
Having a large unemployed force, is what even the capitalists want. A country having massive unemployment is also a place for maximum exploitation. The surplus labour acts to keep the wages down as well as it keeps the labour ‘disciplined’. For fear of being replaced they would not unionise nor would demand for any wage hike. Such a scenario becomes ideal for the more brutal and primitive system of absolute surplus value extraction (by extending the working day etc., complementing the more advanced relative surplus value extraction through intensified mechanisation and automation) in which the majority of the working class would suffer. What else is the meaning of the labour law changes in India today?
The Latin phrase cui prodest? meaning “who stands to gain?” needs to be applied more than ever under the present noble system of capitalism, where national interest is the veil of class interest. As capitalist brutality increases the precarities would increase, which could be managed only by violence and war (internal and external). We are standing at a juncture where the question of roti (bread), land and peace is once again at stake. Of all the political questions the struggle for bread, land and peace is the one that would take precedence and this is the struggle of the surplused and disposed, which today means the whole of the labouring masses.
Mazdoor Samanvay Kendra
Shramik Samvad (Nagpur)
Political Economy of Labour Repression in the United States: An Interview with Andrew Kolin
Andrew Kolin’s Political Economy of Labor Repression in the United States (Lexington Books, 2016) successfully demonstrates how labour repression is organic to capitalism; something that is central to the very constitution of the capitalist economy and its state. Traversing the history of the United States, the book is a survey of the evolving relationship between capital and labour and how repression has been (re)produced in and through that evolution – something that is structurally manifest in the institutional exclusion of labour. However, by presenting it as an expression of class struggle, the book refuses to deprive labour of its agency. It does not view labour as passive or even merely reactive. It suggests that insofar as the political economy of repression is composed through capital-labour interactions, it is contradictory and provides moments of escape or liberation from repression.
Pratyush Chandra and Pothik Ghosh talk to Andrew Kolin. Professor Kolin teaches Political Science at Hilbert College. His books include The Ethical Foundations of Hume’s Theory of Politics, One Family: Before and During the Holocaust, State Structure and Genocide and State Power and Democracy: Before and During the Presidency of G.W. Bush.
Radical Notes: Why is the book called “Political Economy of Labor Repression in the United States”, and not the “History of Labor Repression in the United States”? Considering it is a rather comprehensive survey of labour history in the US, how do you explain your choice of the title?
Andrew Kolin: Although the book provides an historical survey of labour repression in the United States, the underlying theme is to consider the causes of labour repression, which coincides with the rise of American capitalism and its cycles. In considering the political economy of labour repression, the dependent variable over time is labour’s institutional exclusion from the state and the economy. The independent variable is the class struggle between capital and labour during various economic cycles.
Radical Notes: Reading through the book, one gets a sense that perhaps the logic of capital-labour relations, or rather conflicts, has determined the course of the American history. Is this reading correct? Can it be justifiably claimed that the American state is a product of this logic?
Andrew Kolin: Prior to the Civil War, capital was in conflict with slave labour in the south and wage labour in the north. After the Civil War as industrialisation accelerated capital sought to maximise control over wage labour at the workplace. The great strike wave of the latter part of the 19th century was labour’s response to capital’s efforts to homogenise labour at the workplace. The extent to which capital could increase control over labour was determined by the economic cycles of American capitalism. Crushing strikes did not end class conflict, but only temporarily displaced it. During the Great Depression and with the New Deal, the goal was to have the state mediate class conflict. This worked fine until the 1970s when economic decline set in and the social welfare state was diminished. Starting in the 1980s, the state was no longer concerned with mediating capital and labour, and clearly focused, instead, on supporting finance capital.
Radical Notes: Although the book is mainly about the post-revolutionary institutions, what we find interesting is the way you discover their roots in the very operation of colonialism and waging of the anti-colonial struggle. How would you summarise the role of the politics of labour — its various segments, especially, waged, indentured and slave — in the American Revolution and the building of post-revolutionary institutions, both democratic and repressive?
Andrew Kolin: Property owners understood the need to mobilise labour in order to make the democratic revolution possible. The American Revolution allowed property owners to sever economic ties with Great Britain making it possible for them to put in place policies that supported economic expansion within North America. Most significant was that the well-to-do and labour worked together toward creating a democratic revolution. This in turn created responsive state governments that responded to the needs of the many, that is, until there was a realisation that the system of government should be reframed to better represent the interests of the propertied elites. The constitutional convention established a state structure that severely restricted labour from having a direct role in policymaking. What followed was that states working with property owners made it legally possible for the rise of the corporation. This was enabled by moving away from corporate charters, which were under state control, to the idea of the corporation as an independent legal entity with due-process rights.
Radical Notes: A crucial lesson that seems to come out from your analysis of labour repression in the US is that the tapestry of labour forms and technological changes that we find is actually capital’s mode of coping with the challenges that the working class poses. Do you agree?
Andrew Kolin: Labour repression past and present has been expressed by the organisation and reorganisation of the workplace, for purposes of controlling the labour process. The goal is to increase the production of surplus-value by speeding up the pace of work through technological innovation.
Radical Notes: How do you think segmentation, engineered through the mechanism of institutional inclusion-exclusion, has shaped the officialdom of the labour movement, or what many call, “labour aristocracy”?
Andrew Kolin: Institutional exclusion has divided labour into reform and radical segments. The AFL, under the leadership of Gompers and Green, and even the more progressive ‘CIO’ Lewis accepted capital’s monopoly of control over the workplace. This, in turn, forced labour leaders to function in partnership with capital toward the goal of achieving workplace harmony. Nonetheless, labour’s rank and file has been more progressive than its leadership, engaging in strikes and various forms of labour unrest without the support of labour leaders.
Radical Notes: Do you think the involvement of immigrant, semi-skilled and unskilled segments of workers time and again played a significant role in radicalising the American labour movement whenever it found itself mired in reformism and status quoism? What has been the impact of rank-and-file activism in the US?
Andrew Kolin: Looking back through the mid and latter parts of the 19th and 20th centuries, it was immigrants, semi-skilled and unskilled labour segments that were the force behind many of the great strikes. They were also heavily involved in creating the socialist and communist parties. These labour segments also fought against the greater imposition of technology at the workplace. Many of the major accomplishments of organised labour came from these rank-and-file activists. They supported not only the formation of the CIO, they agitated for many of the eventual New Deal reforms, which did result in better wages and working conditions.
Radical Notes: Throughout the history of labour repression and class struggle in the US that is narrated in the book, we see an interesting cyclicity of offence and defence, conflict and compromise. Can you see significant moments of leap in the history of the labour movement in the US that had the potential to radically break out of this cyclicity?
Andrew Kolin: Although the mainstay of labour repression has been labour’s institutional exclusion, labour has been successful in achieving a number of reformist demands. And even though radical labour segments have been oppressed, one finds within the capitalist economy the existence of non-capitalist enclaves in the form of public and worker ownership. The future challenge for organised labour is to increase the scope and scale of worker-based ownership, the basis for building a more radical form of economic democracy.
Radical Notes: Neoliberalism and the dominance of finance capital seem to have finally liberated capitalism from hurdles like democratisation and the impact of institutionalised/ territorialised working-class politics. What are “the limits of labor repression and possible options for the liberation of labor” today? What forms of organisation and working-class activities do you see emerging today that overcome the “legal boundaries” defined within and by the political economy of repression?
Andrew Kolin: There are two trends to consider in assessing the possible future limits of labour repression, one is the built-in feature of US capitalism—it cannot solve its problems. The persistence of the cyclical nature of American capitalism along with class struggle between capital and labour create the social effects pointing to an overall limit to a capitalist economy. A second trend is the existence on a limited scale of worker-based economic democracy. If it is to continue to grow, one can expect the appearance of an economy without labour repression. For example, key features would be that all goods and services would be produced by worker-managers. Companies would sell products for profit in a competitive market, in the absence of a class-based economic system. Each company would be owned and controlled by labour. Investments for expansion would be created by a tax on the company’s capital. Through a national fund, money would flow into the economy to public banks. The labourers in the banks would decide which projects were viable investments. Companies would be mandated to set aside monies to deal with modernisation and capital improvements. Since labour would monopolise decision-making the workers could reshape the companies or opt to leave but they could not make the companies sell capital in order to generate income. Minimum wages would have to be determined to be living wages. A company that could not pay workers a living wage would have to file for bankruptcy. All workers would be provided with a broad range of social services. This economic model has been put into practice at the Mondragon company in Spain. In the United States, there are no formal legal obstacles against labour forming a worker-based company.
Radical Notes: The ascendancy of Donald Trump and his politics of reactionary spectacle has often been ascribed to the rightward ideological shift of large sections of the White working class. How accurate is this ascription, and how would you explain this in political-economic terms? Also, in that context, how exactly do race relations currently function to segment and regiment social labour in its totality in the US? In your opinion, how has race historically functioned, if at all, in enabling and/or constituting what you call the “political economy of labor repression” in the US?
Andrew Kolin: I argue that this interpretation of a White, reactionary working class is incorrect. An interesting article appeared in the Washington Post on June 5, 2017, ‘It’s time to bust the myth: most Trump voters were not working class’. The authors cited the research findings of the American National Election Survey, which released its 2016 survey data. The conclusion was that over two-thirds of Trump voters came from the better-off half of the economy. Mainstream labour leadership supported the candidacy of Hilary Clinton. Trump did attract more working-class voters from the industrial belt, more out of desperation and a rejection of Clinton’s neoliberalism. As to the issue of race and the labour movement, the AFL had put in place policies that prevented people of colour from becoming union members. Racial tensions were heightened when people of colour were used as strike-breakers. Radical labour segments have been far more accepting of non-White workers. Recently, there have been some hopeful signs of mainstream labour breaking with its more racist past. Since the Sweeney era, the AFL-CIO has been more active in recruiting workers of colour. The AFL-CIO has supported the strikes of minority workers working for minimum wages as well as those seeking to increase the minimum wage to $15/hour. Organised labour is well-aware that its future is dependent on reaching out to and organising non-White workers.