Posted tagged ‘socialism’

‘LATE’ CAPITALISM CRASHING DOWN ITS DEATH BED

September 25, 2015

‘LATE’ CAPITALISM CRASHING DOWN ITS DEATH BED

 

Erle Frayne D. Argonza

 

Good evening!

The events in the Eurozone are now getting to be more alarming. Forecasters are now claiming that another round of recession is in the offing, as the bubble burst that began in Greece will spread to Spain, Ireland, and other member-states of the EU.

Will liberal capitalism continue to live a life that seems to hang in the balance? Or will capitalism need to restore itself through totalitarian means? What’s so wrong with the system that it just can’t be sustained enough?

Let me share to you past blog writings about the subject: ‘mad economics’ and the ‘demise of liberal capitalism.’

[Philippines, 23 May 2010]

‘LATE’ CAPITALISM ENDS IN CRASHING BLOW POST-‘MAD ECONOMICS’

 

Erle Frayne Argonza

Good afternoon!

At this moment, I’m sipping coffee contained in a pack that is sold for worth P130, or $3.00. The pack is one of the domestic brands of brewed coffee blends, ready for the drip coffee maker, of the Arabica and/or Robusta varieties. In economic parlance, this coffee is a commodity because (a) it was intended for exchange and not for the coffee producer’s consumption alone, and (b) money was used to acquire (purchase) it.

I have such deep fondness for coffee, as I acquired my coffee-drinking behavior as a childhood habit yet. In my hometown of Tuguegarao (city), Cagayan province (North Philippines), coffee beans were grounded into powder form and sold right inside the ‘wet’ market, was brewed using the local decoction techniques, and was consumed by people of all ages from pre-school to senior’s age. That was then, and that was how I learned to drink this beverage at age 5 more or less. I was hooked to the habit since then, even as I continued to drink milk that I still do till now.
Both coffee and milk are among my health formulas, and both are commodities.

The question I’m asking now is, will commodity-based economics survive the times ahead? Both coffee and milk will survive for sure, but will the money economy that underpins them survive as well? As to the broader world system of capitalism, will it survive too or is it in fact on its death knell today?

Capitalism was the last of the world systems that embodied the ‘money economy’ to which it properly belongs. With the opening of the 20th century, the socialist world system appeared on the social landscape and attempted to serve as an alternative to capitalism, but this experienced its early demise as its implementers found out that it cannot be sustained after all. Both capitalism and socialism are embodiments of the ‘money economy’ as it later turned out to be, they are just but two sides of the same coin: the ‘money economy’.

Socialism is gone, and no matter what attempts there may arrive to survive it in some other forms, this variant of the ‘money economy’ is gone. Now capitalism is all alone, and it is getting more real than virtual that it too is bound to crash a catastrophic end, and with its demise, the “last of the (economic) Mojicans” is bound to disappear (my apologies to Mojicans if my note sounds ethnically incorrect). And with capitalism’s demise, the whole of the ‘money economy’ folds up like unto a book that had reached its last chapter, and deserves more to be consigned to the archives of history.

The Frankfurt school thinkers, notably Jurgen Habermas, cogitated that capitalism’s life span was extended somehow, and was dubbed as ‘late’ capitalism in this last phase of the world system. In this phase, state planning and interventionism were infused into the system to extend its life. Before ‘late’ capital came the mercantile, free enterprise, and monopoly phases of this world system. Will there be another phase to capitalism after ‘late’ capital?

Before I answer that extension of life span, let me stress that ‘late’ capitalism shall end in the following process and manner:

· The re-introduction of liberalization—of free market and free trade principles—into ‘late’ capital shifted engagements away from production, the real foundation of the economy, to the sphere of predatory finance, thus producing the gargantuan ‘bubble economy’. The ‘physical economy’ of production transmogrified into the ‘virtual economy’ that produces no real value other than imaginary or delusional values. It is ‘mad economics’ in operation, no longer the ‘rational economics’ of mercantilists, classicists and neo-classicists.

· The ‘mad economics’ led to the yawning gap between actually produced values and the aggregates of financial derivatives and debts combined, to the extent that the former shrinks at a rapid rate relative to the latter. As bubbles burst from one commodity sector to another, leading eventually to a crisis of gargantuan proportion, all the more will production shrink, unable to produce values that can input into the demand functions for fresh money to pay for aggregate credits, primary debts, secondary debt obligations, and so on.

· The crisis will then move on to the further shrinking of production, tightening of credit sources, and hyperinflationary situation in utilities (notably gas & power), food, base metals and other vital commodities. Total economic collapse results from the foregoing.

· The economic collapse then leads to social unrests, turmoil, upheavals, civil wars, food wars, water wars, and possibly intercontinental wars such as another 3rd world war. The clash of world powers and their surrogate emerging markets will become the flames of a possible long war akin to the 30 Years War (c.1618-48).

Let me now end at that instance. Suffice me to proclaim that the death knell of ‘late’ capitalism and the whole of the ‘money economy’ of the last 2000 years or so are ending. The ‘non-cognitive economics’ of the Roman to feudal era, the ‘rational economics’ of the Renaissance to monopoly capital era, and the ‘mad economics’ of ‘late’ capital were markedly the underpinning mediation processes of that entire 2000-year epoch. The epoch and its last phase of capitalism is rapidly drawing to a close.

[Writ 22 August 2008, Quezon City, MetroManila.]

CAPITALISM’S DEMISE: WHAT WENT WRONG?

Erle Frayne Argonza

To all fellow men and women out there who may have deep fondness for the liberal capitalist model of economic adaptation, I hope that you can make some adjustments in your cognitive banks. Capitalism is not a permanent facet of human life, but merely one among various epochs that will come to pass. Only impermanence is sacrosanct in the cosmos, so please refrain from singing hallelujah to a world system that is on its death knell as I articulated in a previous article.

And please refrain from swallowing hook-line-&-sinker the contentious propaganda of Francis Fukuyama about the ‘end of history’, that accordingly history had concluded with the galvanization of liberal capitalism, that history makes no more sense. Fukuyama’s theory is a slapstick narrative of hyper-valuation of the ‘mad economics’ of late capitalism and hypo-statization of reality that has no relation at all to the real in the world out there. Fukuyama had taken as ‘real’ what is actually ‘virtual’, and froze time much like unto a fairy tale of timelessness, of history-less Nietzschean moment that is fit more for infants than for adult humans.

Fukuyama epitomizes the ‘mad economics’ of all those Pied Pipers of the global oligarchy for whom he works, and his discourse is akin to the ‘mad discourse’ so described by the late Michel Foucault. The ‘mad economics’ of Friedman, Hayek, Fukuyama, and all those technocrats who serve as processors and bagmen for the global oligarchy, is precisely symptomatic of that colossal ailment of a world system, and as we all know, madness can never salve ailments but rather hasten the system’s death. Caput! Blow your horns, prepare dirges to this Dead One!

Unless that you yourselves have become maddened by the seemingly infinite monies flowing unto your purses as you are among the beneficiaries of ‘late’ capital, unless that you are indeed now suffering from combined maladies of sociopathy and schizophrenia, unless that sanity had departed from thee forever, please heed the last plea of your own conscience where sanity had retreated: CAPITALISM IS DEAD! No amount of propagandizing, of contorted interpretations, can ever change the course of history at this juncture, as we are all headed for a TOTAL SYSTEM COLLAPSE in the months ahead. Read that please: MONTHS AHEAD, not years ahead.

What went wrong with capitalism? I’m sure all of you fellows knew what went wrong, do I even need to answer that? Your previous thinker mentors, among economists and sociologists, forewarned you all of the forthcoming demise of capitalism, but you paid nary an attention to those brilliant minds as you were so engrossed in your ‘conspicuous consumption’, behaving more like some infantile EATERS or as anthropoids rather than as thinking and spiritually evolving humans. You are all very much human, so please consistently behave like one, and begin by listening to the Inner Voice of your conscience, for that voice is your soul’s.
Let me summarize the diagnostics, forewarnings and/or prophecies of our thinker mentors from the West, and I’d stress WEST because there are some other thinker mentors from the EAST and SOUTH whose peregrinations are so recondite they are not so easily digestible. Let me just stress the WEST as this is what is common to us all. So let me re-echo the thinkers and their theories:

· Karl Marx & Friedrich Engels: The internal contradictions between the private nature of capital (ownership of means of production) and the social nature of production. The ‘crisis of overproduction’ and the ‘law of the falling rate of profit’ are attendant patterns. Social revolution results, then the alternative society will be constructed.

· Max Weber: Industrial capitalism’s granite product, the bureaucracy, led to dehumanization. He never forecast though whether this dehumanizing system can be sustained—but please read between the lines. (His contemporary Emile Durkheim had a similar observation about ‘anomie’ or normless state of urban/industrial society.)

· Thorsten Veblen: The end-phase of industrial capitalism is markedly pathological. ‘Conspicuous consumption’ is the disease of this phase, the toxic behavior from the ruling class that later filtered down to the emerging middle class.

· Joseph Schumpeter: The internal contradiction between the desire for profit and the revolutionary character of innovation. The demise of capitalism will see the possibility of the technical class taking over society and build that alternative system later.

· Daniel Bell: The ‘post-industrial’ society had already been born right inside capitalism. A distinct modality in itself, post-industrialism will eventually prevail in a system that isn’t capitalist (or money economy) but rather knowledge-based. The ‘service worker’ had arrived on the social landscape, the prototype class of the future.

· Theodore Adorno, Jurgen Habermas, Herbert Marcuse: ‘Late’ capital is characterized by the pervasiveness of ‘instrumental reason’, where reason is used to justify the non-rational (‘madness’ in Foucault’s argot), where state planning/intervention was infused into a system that scorned intervention.

· Alvin Toffler: Both capitalism and socialism are based on hoarding, both are variants of the same industrial society of yesteryears, both are based on ‘2nd wave’ capital-intensive technologies and non-renewable energy sources. The ‘post-industrial’ society is altogether distinct, isn’t based on hoarding, production-consumption (‘prosumer’) is based on ‘3rd wave’ knowledge-intensive technologies and renewable energy sources, knowledge cannot be hoarded.

I need not articulate further, do I? They all converged on one theme: capitalism is transitory, it bred social maladies (alienation, dehumanization, anomie, conspicuous consumption,…), is systemically flawed, and will be dismantled at sometime in the future.

No matter how delimited their theories maybe, as they all proceeded from certain perspectives (they were all ‘paradigm’-based in the jargon of Thomas Kuhn), they all proclaimed—in either tacit or explicit fashion—the coming demise of the system. They weren’t as silly as Fukuyama who popularized seemingly ‘satanic verses’ (distorted precepts) about a non-changing, permanent economic landscape called ‘liberal capitalism’, but were rather so adroit at social forecasting that they saw a vision of the future as they were articulating on their empirical observations of the present society.

So, fellows out there, prepare for the months and years ahead. We are headed towards those stormy months, years, maybe even decades. How the future society will come to shape is not easy to forecast. “Something blurs the Force, darkens our sight of the future,” declared a Jedi Master in the Star Wars cinema fame. Let me end right here.

[Writ 22 August 2008, Quezon City, MetroManila.]

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SCARCITY VERSUS ABUNDANCE: THE CONTINENTAL DIVIDE

December 10, 2014

SCARCITY VERSUS ABUNDANCE: THE CONTINENTAL DIVIDE

Erle Frayne D. Argonza

The Continental Divide—between Euro-America (Europe, North America, Latin America) and Asia-Pacific—is no mere geographical cleavage, but more importantly cultural-civilizational. In economic doctrines, the division lies in the core premise that underpins all other economic variables and the social class arrangements that constitute the base for appropriating the values of the totality of efforts of production, distribution, consumption and exchange. While Western thinkers premise economic realities on scarcity, the Eastern thinkers notably sages presuppose the same on abundance.

The foundational doctrines of Western political economy—mercantilism and physiocracy—were both premised on scarcity. All other doctrines that emerged thereafter, inclusive of socialism, neo-classicism and marginalism, proceeded from the same premise. The most popular socialist thinker, K. Marx, envisioned a society of abundance, rationalizing such a vision on the presumed reality of scarcity (of resources) and its attendant effect, mitigated by social structures, of pauperization on the proletariat. This ‘scarcity premise’ is indubitably a hallmark of Western discourse.

Eastern discourse raises questions about such a premise. Among all Eastern thinkers, it was Gandhi who most succinctly articulated the difference. To the folks of the East, daily living is a reality of abundance, such an abundance abetted by continuous resource materialization and allocation as graces from the transcendent spheres. With the caveat, to note, that people live according to their needs. Accordingly, the planet has more than enough for everyone’s needs, but not enough for everyone’s greed. What could be wiser today than the said dictum, so simple in structure yet so profound in substance? (Review also Buddhist economics, Sarkar’s ‘progressive utilization theory’, Sri Aurobindo’s vedic economics, Baha’i economics, Vivekananda’s socialist visions.)

I couldn’t but agree more with the Eastern discursive stream than with the Western ones. Why, let us query, do Filipinos keep on eating the whole day, sliding inputs down their stomachs as much as five (5) times a day? And why don’t the Filipinos save surplus money at all (many folks don’t even maintain back accounts)? That is because deep within their psyche, in the antechambers of their ‘collective unconscious’, resides the presupposition of abundance. Mother earth provides, the country provides, so why save for tomorrow, and why not consume that which is offered unto you when you arrive as a visitor amongst the town & country folks, such offerings being graces from God and His most divine minions?

Among ancient islanders, it was a vice to store resources (savings) for oneself, as this is a hoarding practice. Reciprocity then was the economic norm of behavior. When a household cooks nilupak, and a surplus of the delicacy is gathered after the eating, then the virtuous behavior is to share the excess nilupak among neighbors and kins rather than hoard it; and, conversely, it was a vice (read: very bad behavior) to throw away (surplus) that which has been provided for by Bathala and the anitos.

Surely, economic theorizing that is so deeply steeped in Western streams will never get to the bottom of the reality of Filipino economic behavior. Flawed premises breed flawed models that consequently produce flawed explanatory constructs and flawed practices on the developmental sphere. To a great extent, the Filipinos continue to retain, rather unconsciously, the reciprocity-based ‘systems’ of antiquity, contributing in no small measure to their bayanihan mode of adaptation. This reciprocity helps them to survive disasters and permits them to adapt quickly to new environments that are strongly cash-based, such as urban centers. It is also the basis for creating Filipino ‘social capital’ (Peter Evans had articulated well on the principle) as human asset accretions arising from networks of volunteer social groups (civil society), the kind of capital that is a catalytic factor in various development endeavors.

New Nationalism may have to find an effective bridge between the two. What is sure for now is that the exchange systems of redistribution (feudalism) and markets (capitalism), both imposed upon the islanders by Western empires, have undermined the Asian or ‘Islander Way’ of reciprocity premised on abundance. During the time of Gat J. Rizal, the islands were able to provide more than enough for everyone else, no matter how harsh the Latin-Hispanic feudal system was to the folks who were subsumed in its enclaves. Today, with over eighty (80) million people populating the archipelago, reality had assumed the scarcity mode, making us believe that scarcity has been the premise since antiquity.

The bridge between the East and West will be institutionalized through the popularization of a needs-based philosophy. However, the consumerism that is the hallmark of a revivified market strongly erodes a needs-based discourse. There surely is a dynamic tension between ‘basic needs’ and consumerism, and such a tension will be a chief definer of the premise’s compass in the succeeding decades.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

SPARTACUS UNVEILED: TROUNCING BONARPIST EUROPE

August 17, 2010

SPARTACUS UNVEILED: TROUNCING BONARPIST EUROPE

Erle Frayne D. Argonza

Hail Bonaparte! Hail New Rome! Hail the Empire!

Such slogans could very well be the reverb calls across Europe any one of these coming months. Bonaparte is coming back to Europe, beginning with the consolidation of the union and the implementation of a state ideology based precisely on the centralized institutions that Napoleon Bonaparte seeded during his halcyon days.

New Rome has arisen, with its center at Brussels. Its ‘wings’ are EU and USA (with Canada its client-state), two continents that face each other across the Atlantic like select guardians of the West. As already elaborated by this analyst in couples of articles, Bonapartism in a new form is the emerging state ideology of New Rome that is sometimes referred to as the 4th Reich.

“Bombard the old world to perdition” was the late Emperor’s agenda and directive on his enthused army. The old world today refers to the nation-states, and their destruction would mean the return to the powerful cities plus regions that would altogether bow obeisance to Brussels.

The new twist in Europe today, when it is burning economically upon the burst of bubbles in the de-industrialized south (Greece began it all), is the entry of the Jurassic Bank—the International Monetary Fund—into the Bonapartist game of the oligarchs. A salvation agenda comprising of saving ailing banks and imposing austerity measures on creditor countries is the swagger of the rather thuggish dinosaur, as we observed recently.

When a dinosaur institution is called upon to salve Europe’s problems, it is clear that the ‘handwriting on the wall’ of the old world of European nations has come. With cities and regions demanding return to old days of social privileges (evaporated by austerity measures), more riots are anticipated, thus justifying more draconian gendarme tactics enforced upon angry wage workers and professionals.

If the violent protests will continue and reach ‘critical mass’ in both southern and northern sectors of the union, then the rationale for a continental police state will arise. A New Bonaparte, whoever may this politician be, shall be catapulted phoenix-like to the nadir of totalitarian power, with the support of the union’s central and national parliaments.

As you can see, Bonapartism without a Bonaparte is an oxymoron. The maelstrom in the continent will continue to build up until the condition will be ripe for a totalitarian gendarme state. The maximum agenda of a New Bonaparte would be no less than “bombard the old world” of nations: eradicate them and replace them with pre-configured regions.

Such a move will deter whatever re-actions may come from the citizens to re-strengthen the bargaining positions of their respective nations and go back to the old national currencies. Necessarily, the assets of the national armies will be re-directed to Brussels that will serve as the central command, and the assets will include the nukes of UK and France.

Since the Roman pathos or spirit has been revived anew, with war pursuits (notably versus New Persia) on the menu of hawkish adventurisms, then Europeans can only but hope for the presence of a Mark Anthony who can battle the Emperor from within Brussel’s institutions. Wishful thinking, as in a totalitarian setting all the Mark Anthony wannabes will be either jailed or terminated. Like Mark Anthony of the last days of the Roman republic, dead, caput!

In the absence of a Mark Anthony in the continent, then Europeans can best leverage their strength via a new Spartacus. Let the Spartacists gel as a gigantic movement from the diverse grassroots and working class movements in the continent, and rest assured they can be the ones that can form the resistance.

Europeans better galvanize solidarity the quickest now as an anti-fascist front versus a determined Bonapartist oligarchy & technocracy. There is no better time to revive Spartacus than now. Reviving Spartacus after the Empire and neo-Bonaparte are in place will prove to be counterproductive and defeatist.

I hope that Europeans would wake up fast to recognize the dreaded dragon of Bonapartism rising so rapidly in their backyard. Only they can stop the new fascism from consolidating further and installing a new Emperor Bonaparte.

[Philippines, 30 July 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,
UNLADTAU: https://unladtau.wordpress.com,
COSMICBUHAY: http://cosmicbuhay.blogspot.com,
BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,
ARGONZAPOEM: http://argonzapoem.blogspot.com%5D

RED REVOLT IN BANGKOK: OLIGARCHISM ASSAULTED

May 23, 2010

Erle Frayne D. Argonza

Good evening! Magandang gabi! Buenas noches!

The Red Shirts phenomenon in Thailand seems to baffle many observers world-wide. Accustomed as they are to seeing Thailand as a nation in moderation, they just couldn’t believe that a revolt just took place right at the heart of the nation: Bangkok.

Conditioned as they were by Establishment media, they continue to peddle the same blind thought about the Red Shirts as cult followers of the former premier Thaksin Shinavatra. True, the Red Shirts exalt the former premier to the pinnacle of heroism. But there’s more to the Red revolt than Thaksin, and those blind observers better rethink their nauseating contentions.

Thailand, like the rest of the developing world, tied up its economy to the global economy with great exuberance. The Thai state showed fidelity in instituting liberal reforms that quickly encumbered the country to the global economy and therefore played themselves into the hands of the financial cartels and ‘military industrial elites’ of the North.

By mid-1990s, it was clear that Thailand had departed from the cherished principles of the general welfare, the same principle that  transformed backward regions into economic powers. The same cherished doctrines, which one finds in the teachings of spiritual masters (P.R. Sarkar, Vivekanda, Gandhi, Buddha, Baha’ullah, Sri Aurobindo), are also the ‘philosopher’s stone’ that can redistribute wealth to the greater masses.

Departing from those cherished principles would clearly spell the following hazards: (a) de-industrialization, agriculture decay, and mass lay offs; (b) destruction of national currencies upon their total subordination to currency markets dictated by the speculative maneuverings of global financiers; (c) huge income inequalities between the middle-to-upper brackets and the poorer working classes and rural food producers.

It is not surprising that in June 1997, Bangkok was the site of the 1st spark of currency attacks in the region by the cabal of George Soros & pals. What followed next was the Asian financial meltdown, and the rest was history.

Bangkok, or its technocratic-oligarchic coalition of rulers, sadly departed from the very teachings of the Lord Gautama who, 2,600 years back, showed the way to ‘right livelihood’ and proper living. The same oligarchic-technocratic elites likewise departed from the post-war interventionist policies that led to the re-structuring of its economy and could have, with more institutional strengthening, led to poverty elimination and a materialized ‘middle class dream’ for the Thais.

The revolt waged by the Red Shirts is therefore a re-declaration of the commitment to noble principles of the public welfare taught by the spiritual masters of the East. They were among those excluded from the globalization game, eking a life amid abundance accruing on select urban habitués and oligarchs.

Meantime, Thailand’s own oligarchs have clearly integrated their wealth pursuits to those of the global financial cartels, and their wealth keep on growing at the expense of the masses. King Bhumibol himself leads in the massive wealth accumulation as his exemplars, the royal houses of England and Netherlands, have taught his family the way to unhampered accumulation via a regime of liberalization, privatization, and deregulation.

The Royal Family in Thailand must be assessed by its own people whether it stood up clearly for the general welfare during its reign. Whether the same family still stands for Thailand’s interest, or for the interest of their personal pockets and those of their friends in the global oligarchy.

The Red Shirts, as I see it, is part of a worldwide chain of mass revolts against the global oligarchy whose godless global economy has been encumbering more folks down pauperism and hunger. It is much related to the people’s protests today in Greece that is suffering from the same greedy pursuits of the global oligarchs and austerity measures of the IMF.

Even if all of the revolting Red Shirts in Thailand were annihilated today, their termination will not mean death to the anti-oligarchy movement across the globe and in Bangkok. Justice is on the side of the Red Shirts no matter how violent and crude they may have behaved in the Big City.

It is doubtful whether the bureaucrats in Bangkok will manifest the political will to clip the powers of the local oligarchy, redistribute patrimonial wealth equitably, and reverse free market/free trade policies. The same bureaucrats, led by the British-twanged premier, are enjoying the fruits of their partnership with the oligarchy, so where does that lead them to?

Mark my word well: there will be more Red Shirt revolts across the globe with the passing of the months ahead. Let me repeat: the months ahead. The anti-globalization/anti-oligarchy wasn’t invented by the Red Shirts of Thailand, as they are merely among the embodiments of the ethos of the public welfare that is a global phenomenon as well.

Lucky enough if King Bhumibol and his minions of oligarchs will survive the judgement that will be cast upon them by struggling Thais in the months ahead. Bhumibol should better reflect on the Nepal experience: the handwriting on the wall of oligarchic monarchs and cronies.

[Philippines, 20 May 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,

UNLADTAU: https://unladtau.wordpress.com,

COSMICBUHAY: http://cosmicbuhay.blogspot.com,

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,

ARGONZAPOEM: http://argonzapoem.blogspot.com]

LABOR DAY 2010 SOLIDARITY

April 30, 2010

Erle Frayne D. Argonza

01 May 2010

 Solidarity greetings to all toiling men and women of the Philippines and the world!

With glee and fulfillment I, as a fellow toiling man, express the highest appreciation for the power of labor and the fruits of all the toils of struggling workingmen & women across the millennia of human history. Truly, it is through our labor that our God-given creativity and wisdom find manifestations, galvanized as goods and services in the workplace. Nothing can ever refute such a universal fact or law about the potency of labor.

As a re-dedication to the working class movement across the planet, let me share this humble poem of mine.

REFLECTIONS ABOUT WORK

Erle Frayne Argonza y Delago

There can be

no savoring the foods

offered by Terra

without working hard for their generation;

no consumption of bounties

in torrential showers

without striving

for their production;

no recital of flowery

words about justice

without active contention

for their fruition;

no pleasant rest

of mind and body

without processing by

the sweatshops of labour;

no blissful state

of realized utopias

without rendering sufferings

from waylaid obstacles.

[Poem writ. 27 Sept, 1987, University of the Philippines, QC.]

CAPITALISM’S DEMISE: WHAT WENT WRONG?

September 14, 2008

Erle Frayne Argonza

To all fellow men and women out there who may have deep fondness for the liberal capitalist model of economic adaptation, I hope that you can make some adjustments in your cognitive banks. Capitalism is not a permanent facet of human life, but merely one among various epochs that will come to pass. Only impermanence is sacrosanct in the cosmos, so please refrain from singing hallelujah to a world system that is on its death knell as I articulated in a previous article.

And please refrain from swallowing hook-line-&-sinker the contentious propaganda of Francis Fukuyama about the ‘end of history’, that accordingly history had concluded with the galvanization of liberal capitalism, that history makes no more sense. Fukuyama’s theory is a slapstick narrative of hyper-valuation of the ‘mad economics’ of late capitalism and hypo-statization of reality that has no relation at all to the real in the world out there. Fukuyama had taken as ‘real’ what is actually ‘virtual’, and froze time much like unto a fairy tale of timelessness, of history-less Nietzschean moment that is fit more for infants than for adult humans.  

Fukuyama epitomizes the ‘mad economics’ of all those Pied Pipers of the global oligarchy for whom he works, and his discourse is akin to the ‘mad discourse’ so described by the late Michel Foucault. The ‘mad economics’ of Friedman, Hayek, Fukuyama, and all those technocrats who serve as processors and bagmen for the global oligarchy, is precisely symptomatic of that colossal ailment of a world system, and as we all know, madness can never salve ailments but rather hasten the system’s death. Caput! Blow your horns, prepare dirges to this Dead One!

Unless that you yourselves have become maddened by the seemingly infinite monies flowing unto your purses as you are among the beneficiaries of ‘late’ capital, unless that you are indeed now suffering from combined maladies of sociopathy and schizophrenia, unless that sanity had departed from thee forever, please heed the last plea of your own conscience where sanity had retreated: CAPITALISM IS DEAD! No amount of propagandizing, of contorted interpretations, can ever change the course of history at this juncture, as we are all headed for a TOTAL SYSTEM COLLAPSE in the months ahead. Read that please: MONTHS AHEAD, not years ahead.

What went wrong with capitalism? I’m sure all of you fellows knew what went wrong, do I even need to answer that? Your previous thinker mentors, among economists and sociologists, forewarned you all of the forthcoming demise of capitalism, but you paid nary an attention to those brilliant minds as you were so engrossed in your ‘conspicuous consumption’, behaving more like some infantile EATERS or as anthropoids rather than as thinking and spiritually evolving humans. You are all very much human, so please consistently behave like one, and begin by listening to the Inner Voice of your conscience, for that voice is your soul’s.

Let me summarize the diagnostics, forewarnings and/or prophecies of our thinker mentors from the West, and I’d stress WEST because there are some other thinker mentors from the EAST and SOUTH whose peregrinations are so recondite they are not so easily digestible. Let me just stress the WEST as this is what is common to us all. So let me re-echo the thinkers and their theories:

·        Karl Marx & Friedrich Engels: The internal contradictions between the private nature of capital (ownership of means of production) and the social nature of production. The ‘crisis of overproduction’ and the ‘law of the falling rate of profit’ are attendant patterns. Social revolution results, then the alternative society will be constructed.

 

·        Max Weber: Industrial capitalism’s granite product, the bureaucracy, led to dehumanization. He never forecast though whether this dehumanizing system can be sustained—but please read between the lines. (His contemporary Emile Durkheim had a similar observation about ‘anomie’ or normless state of urban/industrial society.)

 

·        Thorsten Veblen: The end-phase of industrial capitalism is markedly pathological. ‘Conspicuous consumption’ is the disease of this phase, the toxic behavior from the ruling class that later filtered down to the emerging middle class.

 

·        Joseph Schumpeter: The internal contradiction between the desire for profit and the revolutionary character of innovation. The demise of capitalism will see the possibility of the technical class taking over society and build that alternative system later.

 

·        Daniel Bell: The ‘post-industrial’ society had already been born right inside capitalism. A distinct modality in itself, post-industrialism will eventually prevail in a system that isn’t capitalist (or money economy) but rather knowledge-based. The ‘service worker’ had arrived on the social landscape, the prototype class of the future.

 

·        Theodore Adorno, Jurgen Habermas, Herbert Marcuse: ‘Late’ capital is characterized by the pervasiveness of ‘instrumental reason’, where reason is used to justify the non-rational (‘madness’ in Foucault’s argot), where state planning/intervention was infused into a system that scorned intervention.

 

·        Alvin Toffler: Both capitalism and socialism are based on hoarding, both are variants of the same industrial society of yesteryears, both are based on ‘2nd wave’ capital-intensive technologies and non-renewable energy sources. The ‘post-industrial’ society is altogether distinct, isn’t based on hoarding, production-consumption (‘prosumer’) is based on ‘3rd wave’ knowledge-intensive technologies and renewable energy sources, knowledge cannot be hoarded.   

I need not articulate further, do I? They all converged on one theme: capitalism is transitory, it bred social maladies (alienation, dehumanization, anomie, conspicuous consumption,…), is systemically flawed, and will be dismantled at sometime in the future.

No matter how delimited their theories maybe, as they all proceeded from certain perspectives (they were all ‘paradigm’-based in the jargon of Thomas Kuhn), they all proclaimed—in either tacit or explicit fashion—the coming demise of the system. They weren’t as silly as Fukuyama who popularized seemingly ‘satanic verses’ (distorted precepts) about a non-changing, permanent economic landscape called ‘liberal capitalism’, but were rather so adroit at social forecasting that they saw a vision of the future as they were articulating on their empirical observations of the present society.

So, fellows out there, prepare for the months and years ahead. We are headed towards those stormy months, years, maybe even decades. How the future society will come to shape is not easy to forecast. “Something blurs the Force, darkens our sight of the future,” declared a Jedi Master in the Star Wars cinema fame. Let me end right here.

[Writ 22 August 2008, Quezon City, MetroManila.]

‘LATE’ CAPITALISM ENDS IN CRASHING BLOW POST-‘MAD ECONOMICS’

September 12, 2008

Erle Frayne Argonza

Good afternoon!

At this moment, I’m sipping coffee contained in a pack that is sold for worth P130, or $3.00. The pack is one of the domestic brands of brewed coffee blends, ready for the drip coffee maker, of the Arabica and/or Robusta varieties. In economic parlance, this coffee is a commodity because (a) it was intended for exchange and not for the coffee producer’s consumption alone, and (b) money was used to acquire (purchase) it.

I have such deep fondness for coffee, as I acquired my coffee-drinking behavior as a childhood habit yet. In my hometown of Tuguegarao (city), Cagayan province (North Philippines), coffee beans were grounded into powder form and sold right inside the ‘wet’ market, was brewed using the local decoction techniques, and was consumed by people of all ages from pre-school to senior’s age. That was then, and that was how I learned to drink this beverage at age 5 more or less. I was hooked to the habit since then, even as I continued to drink milk that I still do till now. Both coffee and milk are among my health formulas, and both are commodities.

The question I’m asking now is, will commodity-based economics survive the times ahead? Both coffee and milk will survive for sure, but will the money economy that underpins them survive as well? As to the broader world system of capitalism, will it survive too or is it in fact on its death knell today?

Capitalism was the last of the world systems that embodied the ‘money economy’ to which it properly belongs. With the opening of the 20th century, the socialist world system appeared on the social landscape and attempted to serve as an alternative to capitalism, but this experienced its early demise as its implementers found out that it cannot be sustained after all. Both capitalism and socialism are embodiments of the ‘money economy’ as it later turned out to be, they are just but two sides of the same coin: the ‘money economy’.

Socialism is gone, and no matter what attempts there may arrive to survive it in some other forms, this variant of the ‘money economy’ is gone. Now capitalism is all alone, and it is getting more real than virtual that it too is bound to crash a catastrophic end, and with its demise, the “last of the (economic) Mojicans” is bound to disappear (my apologies to Mojicans if my note sounds ethnically incorrect). And with capitalism’s demise, the whole of the ‘money economy’ folds up like unto a book that had reached its last chapter, and deserves more to be consigned to the archives of history.

The Frankfurt school thinkers, notably Jurgen Habermas, cogitated that capitalism’s life span was extended somehow, and was dubbed as ‘late’ capitalism in this last phase of the world system. In this phase, state planning and interventionism were infused into the system to extend its life. Before ‘late’ capital came the mercantile, free enterprise, and monopoly phases of this world system. Will there be another phase to capitalism after ‘late’ capital?

Before I answer that extension of life span, let me stress that ‘late’ capitalism shall end in the following process and manner:

·        The re-introduction of liberalization—of free market and free trade principles—into ‘late’ capital shifted engagements away from production, the real foundation of the economy, to the sphere of predatory finance, thus producing the gargantuan ‘bubble economy’. The ‘physical economy’ of production transmogrified into the ‘virtual economy’ that produces no real value other than imaginary or delusional values. It is ‘mad economics’ in operation, no longer the ‘rational economics’ of mercantilists, classicists and neo-classicists.

 

·        The ‘mad economics’ led to the yawning gap between actually produced values and the aggregates of financial derivatives and debts combined, to the extent that the former shrinks at a rapid rate relative to the latter. As bubbles burst from one commodity sector to another, leading eventually to a crisis of gargantuan proportion, all the more will production shrink, unable to produce values that can input into the demand functions for fresh money to pay for aggregate credits, primary debts, secondary debt obligations, and so on.

 

·        The crisis will then move on to the further shrinking of production, tightening of credit sources, and hyperinflationary situation in utilities (notably gas & power), food, base metals and other vital commodities. Total economic collapse results from the foregoing.

 

·        The economic then leads to social unrests, turmoil, upheavals, civil wars, food wars, water wars, and possibly intercontinental wars such as another 3rd world war. The clash of world powers and their surrogate emerging markets will become the flames of a possible long war akin to the 30 Years War (c.1618-48).  

Let me now end at that instance. Suffice me to proclaim that the death knell of ‘late’ capitalism and the whole of the ‘money economy’ of the last 2000 years or so are ending. The ‘non-cognitive economics’ of the Roman to feudal era, the ‘rational economics’ of the Renaissance to monopoly capital era, and the ‘mad economics’ of ‘late’ capital were markedly the underpinning mediation processes of that entire 2000-year epoch. The epoch and its last phase of capitalism is rapidly drawing to a close.

[Writ 22 August 2008, Quezon City, MetroManila.]