[Text of a short talk presented at Socialism and Deindustrialisation event put on by Spring. See Michael Roberts’ write-up of his talk here.]
“In fact, the realm of freedom actually begins only where labour which is determined by necessity and mundane considerations ceases; thus in the very nature of things it lies beyond the sphere of actual material production.”
-Karl Marx
I want to argue today that only deindustrialisation can lead us beyond capitalism, or in other words, that post-capitalism will necessarily be post-industrial. [1] This means that rather than bemoan the loss of manufacturing jobs, or struggle to lure them back, deindustrialisation should instead be applauded as an important and irreversible achievement. Historically speaking, it is akin to the move away from agriculture-based economies. Just as the mechanisation of agriculture freed people from reliance on working the land, the deindustrialisation process has the potential to free people from the drudgery of most productive work. Yet an immediate consequence of claiming that deindustrialisation is necessary for post-capitalism means we must reimagine what the transition between economies might be like.
The traditional story of moving beyond capitalism is fairly straightforward. To be sure, this story has been complicated and critiqued throughout the 20th century, yet its general framework still underpins a number of assumptions about how to transcend capitalism. In broad strokes, the story begins with a shift away from agriculture-based economy which had been built around a large peasantry. In its place emerges rapid industrialisation – exemplified by the textile, steel, and eventually automobile industries in the 19th and 20th centuries. The social effects of this industrialisation were particularly important for understanding how post-capitalism was supposed to come about. Industrialisation involved a move from rural populations to increasing urban populations, along with a transformation of the peasantry into the proletariat, involving primitive accumulation and the dispossession of common land. The result of this was a new urban working class who had only their labour power to sell. But this transition also led to the development of a strong working class. Factories meant that workers were increasingly centralised in the workplace – they worked together, creating social connections and community. Moreover, the tendencies of capitalism were supposed to increasingly homogenise the working class. The result of all this was that the working class came to share the same material interests – things like better working conditions, higher wages, and shorter working weeks. In other words, with industrialisation there was the material basis for a strong working class identity. (It’s worth noting here, that despite this material basis, the industrial working class was always a minority of the working population. Even at the height of manufacturing in the most industrialised countries, employment in manufacturing only involved about 40% of the population.[2]) On the basis of their political strength though, the working class was supposed to become the vanguard of the population, leading us away from capitalism and towards something better. With the growing power of the working class, and the socialisation of production, it was thought that workers could simply take over the means of production and run them democratically and for the greater good.
Of course, this didn’t happen, and the best example we have of this proposal was the miserable Soviet experience. What occurred in that experiment was a glorification of productivity at the expense of freedom. Just as in capitalist societies, work was the ultimate imperative, and it was no surprise to see Taylorism, Fordism, and other productivity-enhancing techniques being forced upon the workers of the USSR. In the capitalist countries, by contrast, the industrial sectors declined and the basis for a strong working class has been systematically attacked. Yet if we look at developing countries, the traditional story finds little traction as well. Even developing countries are increasingly deindustrialised. This can be seen in two broad facts: first, newly industrialising economies are not industrialising to the same degree as past economies (measured in terms of manufacturing employment as percentage of population). Rather than 30-40% employment, the numbers are closer to 15-20%. Secondly, these economies are also reaching the point of deindustrialisation at a quicker pace. Measured in terms of per capita income levels, these economies reach their peak industrialisation at a much earlier point than previous countries did.[3] This is the so-called problem of “premature deindustrialisation”. The conclusion to draw from the experience of the 20th century is that the promise of the traditional narrative – the industrial working class leading a revolution to democratic control over the means of production – has not been fulfilled and seems to now be obsolete. We no longer live in an industrial world, and classic images of the transition to socialism need to be updated.

So what is the alternative? Continue reading →