Anti-Democratic Nature Of US Capitalism Is Being Exposed

By Noam Chomsky

THE SIMULTANEOUS unfolding of the US presidential campaign and unraveling of the financial markets presents one of those occasions where the political and economic systems starkly reveal their nature.

Passion about the campaign may not be universally shared but almost everybody can feel the anxiety from the foreclosure of a million homes, and concerns about jobs, savings and healthcare at risk.

The initial Bush proposals to deal with the crisis so reeked of totalitarianism that they were quickly modified. Under intense lobbyist pressure, they were reshaped as “a clear win for the largest institutions in the system . . . a way of dumping assets without having to fail or close”, as described by James Rickards, who negotiated the federal bailout for the hedge fund Long Term Capital Management in 1998, reminding us that we are treading familiar turf. Continue reading

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What Is Exploitation?

The term “exploitation” typically conjures up images of horrendous working conditions, perhaps sweatshops in China or India, or the child labour used by Western clothes manufacturers. We think of people working long hours for little pay in terrible conditions ruthlessly bullied by unscrupulous bosses or gangmasters.

Such “exploitation” is presented to us as exceptional – and contrasted with the “normality” of working life for most people, particularly in countries such as Britain.

Karl Marx had a different understanding of exploitation. Rather than seeing it as exceptional, he argued that exploitation is fundamental to capitalism.

For Marx, exploitation was not just about the level of wages received, or working conditions, but was the very process whereby capitalism creates profit out of the work we do.

In order to understand what Marx meant by exploitation we need to start with his explanation of where profits ultimately come from – the “labour theory of value”. Continue reading