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Marx predicted our present crisis – and points the way out

The Communist Manifesto foresaw the predatory and polarised global capitalism of the 21st century. But Marx and Engels also showed us that we have the power to create a better world.

by Yanis Varoufakis

Part 3 - The manifesto remains a source of hope not to be dismissed

Anyone reading the manifesto today will be surprised to discover a picture of a world much like our own, teetering fearfully on the edge of technological innovation. In the manifesto’s time, it was the steam engine that posed the greatest challenge to the rhythms and routines of feudal life. The peasantry were swept into the cogs and wheels of this machinery and a new class of masters, the factory owners and the merchants, usurped the landed gentry’s control over society.

Now, it is artificial intelligence and automation that loom as disruptive threats, promising to sweep away “all fixed, fast-frozen relations”. “Constantly revolutionising … instruments of production,” the manifesto proclaims, transform “the whole relations of society”, bringing about “constant revolutionising of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation”.

For Marx and Engels, however, this disruption is to be celebrated. It acts as a catalyst for the final push humanity needs to do away with our remaining prejudices that underpin the great divide between those who own the machines and those who design, operate and work with them. “All that is solid melts into air, all that is holy is profaned,” they write in the manifesto of technology’s effect, “and man is at last compelled to face with sober senses, his real conditions of life, and his relations with his kind”. By ruthlessly vaporising our preconceptions and false certainties, technological change is forcing us, kicking and screaming, to face up to how pathetic our relations with one another are.

Today, we see this reckoning in millions of words, in print and online, used to debate globalisation’s discontents. While celebrating how globalisation has shifted billions from abject poverty to relative poverty, venerable western newspapers, Hollywood personalities, Silicon Valley entrepreneurs, bishops and even multibillionaire financiers all lament some of its less desirable ramifications: unbearable inequality, brazen greed, climate change, and the hijacking of our parliamentary democracies by bankers and the ultra-rich.

None of this should surprise a reader of the manifesto. “Society as a whole,” it argues, “is more and more splitting up into two great hostile camps, into two great classes directly facing each other.” As production is mechanised, and the profit margin of the machine-owners becomes our civilisation’s driving motive, society splits between non-working shareholders and non-owner wage-workers. As for the middle class, it is the dinosaur in the room, set for extinction.

At the same time, the ultra-rich become guilt-ridden and stressed as they watch everyone else’s lives sink into the precariousness of insecure wage-slavery. Marx and Engels foresaw that this supremely powerful minority would eventually prove “unfit to rule” over such polarised societies, because they would not be in a position to guarantee the wage-slaves a reliable existence. Barricaded in their gated communities, they find themselves consumed by anxiety and incapable of enjoying their riches. Some of them, those smart enough to realise their true long-term self-interest, recognise the welfare state as the best available insurance policy. But alas, explains the manifesto, as a social class, it will be in their nature to skimp on the insurance premium, and they will work tirelessly to avoid paying the requisite taxes.

Is this not what has transpired? The ultra-rich are an insecure, permanently disgruntled clique, constantly in and out of detox clinics, relentlessly seeking solace from psychics, shrinks and entrepreneurial gurus. Meanwhile, everyone else struggles to put food on the table, pay tuition fees, juggle one credit card for another or fight depression. We act as if our lives are carefree, claiming to like what we do and do what we like. Yet in reality, we cry ourselves to sleep.

Do-gooders, establishment politicians and recovering academic economists all respond to this predicament in the same way, issuing fiery condemnations of the symptoms (income inequality) while ignoring the causes (exploitation resulting from the unequal property rights over machines, land, resources). Is it any wonder we are at an impasse, wallowing in hopelessness that only serves the populists seeking to court the worst instincts of the masses?

With the rapid rise of advanced technology, we are brought closer to the moment when we must decide how to relate to each other in a rational, civilised manner. We can no longer hide behind the inevitability of work and the oppressive social norms it necessitates. The manifesto gives its 21st-century reader an opportunity to see through this mess and to recognise what needs to be done so that the majority can escape from discontent into new social arrangements in which “the free development of each is the condition for the free development of all”. Even though it contains no roadmap of how to get there, the manifesto remains a source of hope not to be dismissed.

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