openbook

Anonymous

3 months ago

The cost of labour per unit of output is constantly diminishing and the price of products is also tending to fall. The more the quantity of labour for a given output decreases, the more the value produced per worker — productivity — has to increase if the amount of achievable profit is not to fall. We have, then, this apparent paradox: the more productivity rises, the more it has to go on rising, in order to prevent the volume of profit from diminishing. Hence the pursuit of productivity gains moves ever faster, manpower levels tend to reduce, while pressure on workers intensifies and wage levels fall, as does the overall payroll. The system is approaching an internal limit at which production and investment in production cease to be sufficiently profitable.

Over time, Gorz explains, this leads investors to turn away from the “real economy” of production, where productivity gains and profits are harder to achieve and instead seek profit through financial speculation in “fictitious” forms of value such as debt and new types of financial instruments. The value is fictitious in the sense that loans, return on investment, future economic growth, trust and goodwill are social intangibles that are quite unlike physical capital. They depend upon collective belief and social trust and can evaporate overnight.

Still, it is generally easier and more profitable to invest in these (fictitious, speculative) forms of financial value than in actually producing goods and services at a time when productivity gains and profit are declining. No wonder speculative bubbles are so attractive: There is just too much capital is sloshing around looking for profitable investment which the real economy is less capable of delivering. No wonder companies have so much cash on hand (from profits) that they are declining to invest. No wonder the amount of available finance capital dwarfs the real economy. Gorz noted that financial assets in 2007 stood at $160 trillion, which was three to four times global GDP — a ratio that has surely gotten more extreme in the past eight years.

Meanwhile, climate change adds yet another layer of difficulty because it virtually requires an abrupt retreat from capitalism, as Naomi Klein argues in her recent book This Changes Everything. Gorz made this point quite clear:

“It is impossible to avoid climate catastrophe without a radical break with the economic logic and methods that have been taking us in that direction for 150 years. On current trend projections, global GDP will increase by a factor of three or four by 2050. But, according to a report by the UN Climate Council, CO2 emissions will have to fall by 85% by that date to limit global warming to a maximum of 2°C. Beyond 2°C, the consequences will be irreversible and uncontrollable.

“Negative growth is, therefore, imperative for our survival. But it presupposes a different economy, a different lifestyle, a different civilization and different social relations. In the absence of these, collapse could be avoided only through restrictions, rationing, and the kind of authoritarian resource-allocation typical of a war economy. The exit from capitalism will happen, then, one way or another, either in a civilized or barbarous fashion. The question is simply what form it will take and how quickly it will occur.

“To envisage a different economy, different social relations, different modes and means of production and different ways of life is regarded as “unrealistic,” as though the society based on commodities, wages, and money could not be surpassed. In reality, a whole host of convergent indices suggest that the surpassing of that society is already under way, and that the chances of a civilized exit from capitalism depend primarily on our capacity to discern the trends and practices that herald its possibility.”

This is where the many initiatives and movements that revolve around the commons, peer production, the solidarity economy, co-operatives, Transition Towns, degrowth, the sharing and collaborative economy, and much else, come in. These are all harbingers of a different way of meeting everyday needs without becoming ensnared in utopian capitalist imperatives (constant growth, ever-increasing productivity gains, profits from the real economy). Pursuing this path ultimately destroys a society, as we can see from years of austerity politics in Greece.

In other words, the most promising way to resolve the capitalist crisis of our time is to start to decommodify production and consumption – i.e., extend and invent non-market ways to meet our needs. Indeed, we need to reconceptualize “production” and “consumption” themselves as separate categories, and begin to re-integrate them — and our role as actors in them — through commons-based peer production.

André Gorz in 2007 wrote “The Exit from Capitalism Has Already Begun”.

#climatechange_💬
#capitalism_💬 #allconsumingbeast_💬 #gifteconomy_💬

tagged: #fskynet_💬

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