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     May 22, 2008
Page 3 of 5
THE SHAPE OF US POPULISM, Part 6
The birth of the New Deal
By Henry C K Liu

described as "the ideology of Russia’s peasant democrats". (On Narodism, Lenin Collected Works, Progress Publishers, 1975 Moscow, Volume 18, pp 524-528)

Lenin wrote: "The theory of Narodism is the theory of the bourgeois white-washing of capitalism with the aid of catchwords like ‘labor economy’; it is a theory which plays down, obscures and hinders the class struggle by means of these very same catchwords, by advocating restriction of the mobilization of the land, and so forth. ... Narodism stands for bourgeois democracy

 

in Russia." (The Bourgeois Intelligentsia's Methods of Struggle against the Workers, V I Lenin, Collected Works, 4th English Edition, Progress Publishers, Moscow, 1964 Vol. 20, pp 455-86)

Narodism arose in Russia after the emancipation of the serfs in 1861 under Tsar Alexander II, which signaled the coming end of the feudal age in Russia. This coincided with the US Civil War, which began in 1861. Noticing that freed serfs were being sold into wage slavery in which the bourgeoisie had replaced landlords, Narodism aimed to become the political force of populism to counter regressive developments in Russia.

Narodniks rallied in response to the growing conflicts between the peasantry and the prosperous kulaks (rich large farm owners) who hired peasant labor to work their properties. Narodniks generally aimed nostalgically to reverse modern agricultural capitalism back to primitive agricultural socialism by opposing industrialization. By rejecting industrial socialism as a goal, they rejected industrial capitalism as its prerequisite. Russian Norodism had common threads with US populist communal agrarianism. Both resisted industrialization due to its socioeconomic consequences.

Narodniks viewed the peasantry as the revolutionary class that would overthrow feudal monarchism and identified the village commune as the embryo of agricultural socialism. However, they believed that the peasantry would not achieve revolution on their own, and that history could only be made by heroic leaders. Narodnik writers, such as Vasilij Voroncov, called for the Russian intelligentsia to "bestir itself from the mental lethargy into which, in contrast to the sensitive and lively years of the 1870’s it had fallen; and to formulate a scientific theory of Russian economic development". The upper-class Narodnik intelligentsia needed to provide a concrete system of economic ideals and goals that would uphold the paramount importance of the village commune. These writers called for immediate movement towards revolutionary action that went beyond philosophical and political discussion.

In the conclusion of What Is To Be Done? - written between the end of 1901 and early 1902, Lenin divided the history of Russian Social Democracy into three periods. The first period spanned a decade from 1884 to 1894, a time of embryonic development of the theory and program of Social Democracy in the absence of a working class movement. This period coincided with that of populism in the US.

The second period embraced four years, from 1894 to 1898, during which Social Democracy appeared as a social movement from an upsurge of the masses to become a political party. The third period was "a period of disunity, dissolution, and vacillation, and the voice of Russian Social Democracy began to break, to strike a false note." This period coincides with that of the co-option of populism into the two-party system in US politics.

Lenin wrote that ...
... it was only the leaders who wandered about separately and drew back; the Social Democracy movement itself continued to grow, and it advanced with enormous strides. The proletarian struggle spread to new strata of the workers and extended to the whole of Russia, at the same time indirectly stimulating the revival of the democratic spirit among the students and among other sections of the population. The political consciousness of the leaders, however, capitulated before the breadth and power of the spontaneous upsurge; among the Social Democrats, another type had become dominant – the type of functionaries, trained almost exclusively on 'legal Marxist' literature, which proved to be all the more inadequate the more the spontaneity of the masses demanded political consciousness on the part of the leaders. The leaders not only lagged behind in regard to theory ("freedom of criticism") and practice ("primitiveness"), but they sought to justify their backwardness by all manner of high-flown arguments. Social Democracy was degraded to the level of trade-unionism by the Brentano adherents in legal literature, and by the tail-enders in illegal literature.
Lujo Brentano (1844-1931), the German bourgeois economist and author of a variety of bourgeois distortion of Marxism known as Brentanoism, advocated "social peace" in capitalist society, the possibility of overcoming the social contradictions of capitalism without resorting to class struggle, maintaining that the solution of the working-class problem lay in the organization of reformist trade unions and the introduction of pro-labor legislation and that the interests of workers and capitalists could be reconciled.

A theory analogous to that of Brentanoism was propounded in Russia by the chief representative of "legal Marxism", P B Struve, in an attempt to use Marxism in the interests of the bourgeoisie. Lenin pointed out that "Struveism" takes "from Marxism all that is acceptable to the liberal bourgeoisie and rejects its living soul, its revolutionary nature. Struve ascribed to capitalism aims that were foreign to it, namely the fullest satisfaction of man’s needs; he invited people to learn from capitalism and openly advocated Malthusian ideas." According to Lenin, Struve was the "great master of renegacy, who, darting with opportunism, with 'criticism of Marx', ended in the ranks of counter-revolutionary bourgeois national-liberalism".

Lenin observed that the "Credo program" had been put in operation when the "primitive methods" of the Social Democrats caused a revival of revolutionary non-Social Democratic tendencies. Proponents of economism, or opportunism, grouped around the "program Credo", written in 1899 by Y D Kuskova. Economism, a Russian variety of international opportunism, was an opportunist trend in Russian Social Democracy at the turn of the 20th century. It limited the tasks of the working class movement to the economic struggle for higher wages, better working conditions and so forth, asserting that the political struggle was the affair of the liberal bourgeoisie. They denied the leading role of the party of the working class, considering that it should merely observe the spontaneous development of the movement and record events.

According to Lenin, deferring to the "spontaneity" of the working-class movement, economism belittled the importance of revolutionary theory and class-consciousness, and claimed that socialist ideology could develop from the spontaneous working-class movement. Adherents of economism denied the necessity for bringing socialist consciousness into the working-class movement from without, by the Marxist party, and thus, they actually cleared the way for bourgeois ideology.

They championed the existing scattered, isolated study circles with their parochial amateurish approach, encouraged disunity in the Social Democratic ranks, and opposed the creation of a centralized working class party. Economism threatened to turn the working class away from the path of class, revolutionary struggle, and to convert it into a political appendage of the bourgeoisie. Thus Bernstein's famous opportunist statement: "The movement is everything, the final aim is nothing." The Credo of 1899 advocated that workers should confine themselves to the economic struggle, leaving the political struggle to the liberals.

Lenin concluded that scientific socialism ceased to be an integral revolutionary theory and became a hodgepodge "freely" diluted with the content of every new German textbook that appeared; the slogan "class struggle" did not impel to broader and more energetic activity but served as a balm, since "the economic struggle is inseparably linked with the political struggle"; the idea is formed of a party did not serve as a call for the creation of a militant organization of revolutionaries, but was used to justify some sort of "revolutionary bureaucracy" and infantile playing at "democratic". Thus Lenin proclaimed: "we may meet the question, ‘What is to be done?’ with the brief reply: Put an end to the Third Period [of Social Democracy in Russia]."

Bernstein and the revisionists were opposed by all prominent figures of the orthodox Marxism: Kautsky, Rosa Luxemburg, Georgy Plekhanov and others. But the orthodox response was not uniform and itself was transformed in the ensuing debate. Kautsky first replied that there was no theory of breakdown in Marx's work on capitalism, and in 1902 he acknowledged there was a theory of "chronic depression", not a big-bang breakdown, but rather one that stressed the increasing severity of recurrent crises.

In 1913, Rosa Luxemburg argued that it was not obvious what Marxist "surplus-accumulation" was supposed to achieve, particularly if would come a point when there would be nobody to buy more goods produced by expanded production and thus realize further surplus. In her critique of the Marxist worldview, Luxemburg argued that crisis is only inevitable in a closed system, but that in an open system (that is, a system with exogenous consumption), the crises can be averted by obtaining new buyers in non-capitalist pre-industrial countries.

Imperialism, she argued, was the competition of capitalist nations for precisely these consumers. Beginning in the 1990s, globalization of trade and finance provided market capitalism with an expanded open system. Two decades later, the open system is showing signs of reaching its limits to once again become a closed system. Crisis then again becomes inevitable.

Modern-day German Populism
German president Horst K๖hler, former managing director of the International Monetary Fund (IMF) taking on a populist tone, expressed in a Stern magazine interview published on May 15, 2008, the contempt among German politicians towards bankers as a result of the current credit crisis. He likened bankers to "alchemists", accusing them of "massive destruction of assets" and described global financial markets as "a monster" that urgently needed reining in.

Public opinion polls in Germany have shown the public as increasingly viewing big business as unwilling to share its profits with the general population, resulting in rising prices and stagnant wages. Such public opinion has emboldened trade unions in their quest for record wage settlements this year. This has led to an escalation in industrial action and persuaded many politicians, including members of the government, to back higher pay claims.

Bukharin, Bush and the Revisionist Debate
Both Lenin in 1916 and Nikolai Bukharin in 1917 disagreed with Luxemburg's theory and provided their own view of imperialism. Imperialism, they argued, is the outcome of capitalist competition for profit derived from rents, not necessarily the outcome of crisis avoidance, even though that might be the result. They regarded the First World War precisely as a "hot" version of competitive capitalism.

Today, the second Bush administration's neo-conservative "transformational" foreign policy to "enlarge" capitalistic democracy in the world as a strategy to prevent war is based on the questionable assumption that democratic nation states do not wage war on each other, a myth created by Winston Churchill to mask the two World Wars, both conflicts caused by a challenge on the British Empire by a rising Germany, as a moral struggle between the Democracies and Fascist states. German expansionism did not begin with the Nazis. It was a key cause of World War I.

Churchill was merely waving the democracy flag to induce an ideological US to side with Britain against a rising Germany again in World War II. There was no democracy in the non-white colonies of the British Empire.

Bukharin, editor of Pravda, was regarded as the foremost theoretician of the Russian Bolshevism in its early years and a promoter of the "sociological" approach to Marxist theory championed by Austro-Marxists. Yet his 1917 book contained an attack on the Austro-Marxist School. Bukharin as leader of the left opposed Russia’s withdrawal from the war but later sided with Lenin.

His 1918 piece on imperialism was written soon after Lenin's 1916 pamphet: Imperialism, the Highest Stage of Capitalism. In 1920 Bukharin wrote The ABC of Communism. He was the main promoter of the New Economic Plan (NEP) in the USSR, which emphasized small-scale peasant farming and the use of market incentives in a socialist context. After Lenin's death in 1924, Bukharin became a full member of the Politburo, and the president of the Third Communist International (Comintern) in 1926.

Despite his internationalist tendencies, Bukharin elaborated on the thesis of "Socialism in one country" put forth by Stalin in 1924, which argued that socialism, the transitional stage from capitalism to communism, could be developed in a single country, even one as underdeveloped as Russia. This new theory stated that revolution need no longer be encouraged in the capitalist countries, since Russia could and should achieve socialism alone. The thesis became the central theme of Stalinism. The Cold War was as much a conflict of superpower expansion as a struggle to contain communist expansion. Bukharin was purged for his opposition to collectivization by Stalinists in the trials of 1938 and subsequently executed.

The revisionist debate energized a group of Viennese lawyers and scholars known as the Austro-Marxists, including Max Adler, Otto Bauer, Rudolf Hilferding and Karl Renner. Renner focused on the problem of nationality and the sociology of law. His 1904 text remains the classic Marxian work on the role of law in society. During World War I, Renner broke with the left wing of the Austrian Social Democrats represented by Bauer and attempted a re-orientation of Marxian thought to account for the rise of white-collar workers and the growth of the State. Renner was the first Chancellor of the Austrian Republic in 1918 and President of Austria in 1945.

After the failure of the German Revolution of 1918, which led to the end of the imperial system and the establishment of a republic, revolutionary goals inspired by socialist ideas failed. While all socialist were republicans, not all republicans were socialists. In January 1919, the leadership of the Social Democratic Party of Germany (Sozialdemokratische Partei Deutschlands - SPD), Germany's oldest political party - founded by August Bebel and Wilhelm Liebknecht, whose Gotha Program was criticized by Marx in his Critique of the Gotha Program - resisted socialist policies.

Fearing an all-out civil war, the SPD leadership, in line with other middle-class parties, rejected the complete stripping of the old imperial elites of their power. Instead they sought reconciliation with them under a new democratic framework. In this endeavor, they sought alliance with the army and allowed the Freikorps (nationalist militias) to suppress the "Spartakist" uprising by force. Rosa Luxemburg and Karl Liebknecht, leaders of the Spartakist, were captured in Berlin on January 15, 1919, by the Freikorps Garde-Kavallerie-Schtzendivision, tortured and shot. The German socialist revolution formally came to an end with the adoption of the new Weimar Constitution on August 11, 1919.

While revisionists opted to justify their new-found position and to alleviate the fears of the middle classes, by embracing the revisionist idea of socialism being a "conscious choice" of the

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