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Global capital, crony capital and the centre-left

April 29, 2021 - 14:52 -- Admin

Writing in the New York Times, Elizabeth Bruenig makes the case against an alliance of convenience between liberals and “woke” corporations against the threat posed to democracy by Trumpism . After acknowledging how desperate the situation has become, she presents the argument, to which I’ll respond bit by bit

Capital is unfaithful. It can, and does, play all sides. Many of the courageous businesses that protested North Carolina’s 2016 “bathroom bill,” for instance, also donated to political groups that helped fund the candidacies of the very politicians who passed the bill.

This is the nature of alliances of convenience. When the Western Allies joined Stalin to fight against Hitler they had no (or at least few) illusions about him, and didn’t rely on him to keep his word any longer than necessary, or to refrain from undermining them in other quarters

It isn’t possible to cooperate with capital on social matters while fighting them in other theaters; capital can fight you in all theaters at once, all while enjoying public adulation for helping you, as well.

This simply isn’t correct as the Biden Administration is showing. Despite co-operating with capital on social matters,. Biden has proposed substantial increases in corporate tax rates and global action against corporate tax avoidance. In this context, it is the position of capital that has been weakened by the toxicity of its usual allies, the Republicans.

Setting aside the fact that capital can in a single moment be both heroic and diabolical — Amazon wants you to be able to vote, but it would prefer if you didn’t unionize — it is, incredibly, even less democratic, accountable and responsive than our ramshackle democracy. Capital rallies to the defense of democracy while aggressively quashing that very thing in the workplaces where its workers labor.

Again, this is what happens in an alliance of this kind. Fights over unionization go on, in parallel with an alliance over the right to vote. Once again, it’s the corporations who face the bigger problem here, with opportunistic Republicans pretending to back the rights of the workers.

I have no idea what to do about this other than know it for what it is. If it were ever the case that knowledge was power, it certainly isn’t so anymore: Knowledge is more widely dispersed than ever; power remains notably concentrated. But knowledge confers a certain dignity. It’s worse to be powerless and unaware than to be powerless and perfectly clear on where you stand.

This is a counsel of despair, without any real basis. Bruenig gives no reason to suppose that the fight for democracy can’t be won, even if it requires alliances between groups with interests that are otherwise opposed. But if the Republicans can be held at bay long enough to allow the passage of strong voting rights law, they will have to reform themselves or face permanent minority status. Getting to that point (for example, by winning bigger majorities in both Houses of Congress in 2022, then scrapping the filibuster) will be difficult, but not impossible

An important limitation of Bruenig’s analysis is that she treats “capital” as a unitary force. There is a sharp division between global corporations, with a long-run interest in the preservation of the rule of law under a democratic government, and the crony capitalists, epitomized by Trump himself, for whom the object is to extract as much as possible from the US economy, as quickly as they can.

Someone with more expertise than me could interpret all this in terms of the “fractions of capital” idea put forward by Poulantzas and others in C20. A search on those terms produced this piece in The Guardian, which covers some of those points.