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Scotland’s Rockstar Clean Energy Leadership — 39% Renewable Electricity Today, 100% By 2020, & More

by @ Thursday, May 16th, 2013. Filed under Green Energy, High Design, Scotland

 By Zachary Shahan

SolidarityEconomy.net via CleanTechnica.com

Scotland may not be as large as Germany or Australia or the US, but it certainly deserves a bit more attention when it comes to its clean energy leadership.

Scotland already gets over 30% renewable electricity — about 33% today according to the interviewee in the first video below; 39% of total electricity demand in 2012, according to the Scottish government. It has a 2020 target of 100% renewable electricity. And it also has an ambitious overall renewable energy target.

Notably, Scotland has some wonderful renewable energy resources — especially wind and tidal resources. But come on, who doesn’t have wonderful renewable energy resources? From sunshine to wind to geothermal to less popular types of renewable energy, countries around the world have clean, renewable resources they can tap to generate their own energy.

Check out these two videos below from Fully Charged for more on Scotland’s rockstar clean energy leadership (h/t NewEnergyNews):



 

Here are some more stories from our team on Scotland’s clean energy leadership:

  1. No Coal, No Nuclear, Only Renewable Energy For Scotland By 2030?
  2. World’s Largest Tidal Turbine, in Scotland
  3. Wind Turbine Big Enough To Land A Helicopter On? Scotland Has It Covered
  4. Scotland Opens World’s Largest Marine Energy Park
  5. Biggest Offshore Wind Farm in the World Planned in Scotland
  6. Europe’s Biggest Wind Farm Starts Producing Electricity (in Scotland)
  7. Huge Scotland Wind Farm Given Green Light (on Shetland Islands)
  8. Scotland Plans World’s Largest Underwater Tidal Turbine Project
  9. Floating Wind Turbines In Scotland Get £15 Million
  10. Scotland Well On Track To Reach 500 MW Community Renewable Energy Goal
  11. Scottish Electricity Generation Plan Underway
  12. Scotland Could Get 50% Of Its Power From Renewable Sources By 2015, Says First Minister Alex Salmond
  13. Scotland Announces Drastic Decarbonization By 2030

 

Zachary Shahan (2289 Posts)

If you couldn't guess, I spend most of my time on CleanTechnica and Planetsave. I'm the director/editor of both sites and am a little obsessed with them and the topics they cover. You can also find my work on Scientific American, Reuters, Change.org, most of the sites in the Important Media network, & many other places. For more, or to connect, go to: zacharyshahan.com

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Examining Lenin and Keynes, both Critics of Finance Capital

by @ Wednesday, May 15th, 2013. Tags: ,
Filed under Capitalism, Keynes, Marxism

lenin statue communist Examining Lenin and Keynes

By Prabhat Patnaik

At first sight no two persons could have been more dissimilar.  One was a Cambridge don, with more than one foot in the British government; a supporter of the Liberal Party, staunchly opposed to the Bolshevik Revolution; an aesthete and a member of the Bloomsbury Group; a life peer in imperial Britain, and a solid, if sensitive, member of the British establishment.  The other was a Russian revolutionary, spending years in exile in acute penury, immersed in bitter conflicts among the émigrés, until suddenly confronted with a revolutionary uprising whose strivings and possibilities he comprehended with such clarity that he came to lead it, facing a civil war, a typhus epidemic, and an assassination attempt that ultimately claimed his life.

The secure tranquillity of the life of the one contrasted sharply with the tempestuous violence that continuously haunted the life of the other.  What could these two have in common?

For a start each felt a deep intellectual respect for the other, despite their political differences.  In his report to the second congress of the Communist International, having called John Maynard Keynes “a British bourgeois pacifist”, “a petit bourgeois philistine” and “an implacable enemy of Bolshevism”, V.I. Lenin went on to base his entire thesis about why conditions were ripe for a world revolution on Keynes’s analysis in The Economic Consequences of the Peace.  He even paid Keynes the compliment that “nobody had written about the condition of capitalism better than Keynes”.  Keynes, on his part, not only referred in several places to Lenin’s “brilliance”, but, in this same book, said apropos of inflation: “Lenin is said to have declared that the best way to destroy the capitalist system is to debauch the currency; . . . Lenin was certainly right.”

But mutual intellectual respect among bitter adversaries is neither unusual nor particularly remarkable.  What is really common to both these thinkers is their belief that the hegemony of finance in the period of maturity of capitalism had brought about a denouement where it became impossible for the system to go on as before.  Of course each had his own understanding of why finance had made capitalism impossible, and each had his own reading of where to go from there.  But the belief that a sheer continuity of the existing order was no longer possible was common to both.

Keynes saw the hegemony of finance as saddling capitalism with such extraordinarily high levels of unemployment that people, he feared, would not for long tolerate such an inhumane system.  Under this hegemony, speculation was no longer a mere bubble on a steady stream of enterprise, but became a torrent that buffeted enterprise around. 

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How Can ‘High Road’ Big Capital be a Green Energy and Green Jobs Ally? Warren Buffet Offers an Example…

by @ Monday, May 13th, 2013. Filed under Energy, Environment, Green Energy, Green Industry, High Design, Technology

MidAmerican's wind energy project is $1.9 billion windfall for Iowa

By William Petroski, Perry Beeman

SolidarityEconomy.net via Des Moines Register, May 12, 2013

MidAmerican Energy Co.’s $1.9 billion investment in wind energy in Iowa will help hold down customers’ electric bills, make the state more attractive to looking for greener energy, and create good jobs, state and utility leaders said Wednesday.

The MidAmerican Energy project, owned by Warren Buffet, becomes the biggest single economic investment ever in the state, said Gov. Terry Branstad. “We’ve made that announcement a few times lately,” he said.

Over the past year, the companies taking the lead have switched off: First, Orascom Construction Industries said it would build a $1.4 billion fertilizer plant in eastern Iowa, then CF Industries said it would invest $1.7 billion in its fertilizer plant near Sioux City. And then Orascom recently said it would boost its investment to $1.8 billion. Unlike those projects, this one will receive no state incentives.

MidAmerican Energy, a utility serving 714,000 customers in Iowa, Illinois, Nebraska and South Dakota, said the project would create 460 over two years and 48 permanent jobs, primarily workers needed to maintain the 656 the utility will build through 2015.

The permanent jobs will create $2.4 million annually in pay for workers, MidAmerican said. The construction workers will take home $30 million, said Lt. Gov. Kim Reynolds. “That’s over 500 Iowa residents who will bring home a paycheck to provide for their families,” she said.

The project will add 1,050 megawatts of wind generation, pushing the utility’s total to 3,335 megawatts of energy. As a result, MidAmerican expects that about 40 percent of its power to Iowa customers will come from wind.

“That is marvelous news,” said Harold Prior, executive director of the Iowa Wind Energy Association. “MidAmerican is one of the top utilities in the country as far as embracing wind energy.”

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‘Emancipate Your Minds, Seek Truth from Practice!’: Contemporary Development of Marxist Philosophy in China

by @ Saturday, May 11th, 2013. Tags:
Filed under Capitalism, China, Marxism, Socialism

Posted on March 12, 2011 by Socialism and Democracy Online

There are many points of interest pertaining to the development of Marxist philosophy in contemporary China. This paper will focus on the following areas and problems: the debate about the criterion of truth; Marxist philosophical textbook reform; the inquiry into the human agent and subjectivity; Marxism and Confucianism; Deng Xiaoping’s theory; and the socialist market economic system. Let’s start with the debate about the criterion of truth, for this is the historical starting-point of contemporary Marxist philosophy in China.

1. The Debate about the Criterion of Truth

Academically, the real development of Marxist philosophy in contemporary China started in 1978. In that year, China’s intellectual life witnessed a great event. People in every walk of life were engaged in a debate: What is the criterion of truth?

Initially, the debate was related to the political struggle and the ideological debates within the Chinese Communist Party. Chairman Mao Zedong died in 1976, and the Cultural Revolution was officially declared to be ended. However, in ideology nothing seems to change much. The Chair of the Communist Party at that time was handpicked by Mao. As a way to maintain his position, he insisted on the doctrine of the “two whatevers”: (1) whatever policy decisions Mao had made must be firmly upheld; (2) whatever instructions Mao had given must be followed unswervingly. Hence, for the opposite faction, led by Deng Xiaoping (who was purged by Mao in 1975) to come back to power, it was necessary to break these “two whatevers.”

On May 11, 1978, a prominent Chinese newspaper, the Guangming Daily, published an article entitled “Practice Is the Only Criterion for Judging the Truth,” signed by “the Special Commentator.” The article argued that for all forms of knowledge, including Marxism, the nature of their truth must be judged and proved by practice. All scientific knowledge, including Marxism, should be amenable to revision, supplementation, and development in practice, in accordance with the specific conditions under which it is to be applied. This paper was widely echoed and provoked lively discussions throughout China. These led to a consensus that it is practice, not Mao’s words, that can tell us what is right and what is wrong. The immediate consequence of this great debate was that the advocates of the “two whatevers” lost their power, and Deng Xiaoping regained his power and started the Chinese economic reform. In contrast to the “two whatevers,” Deng’s motto is, “It does not matter whether a cat is black or white; as long as it can catch mice, it is a good cat.”

However, the debate has had a far-reaching influence on Chinese social science, in particular, on the study of Marxism itself. Since the Communist party came to power in 1949, Marxism, and its Chinese representative, Mao Zedong’s thought, has been regarded as the absolute and as a completed truth system. The only role philosophers could play¾and were required to play¾was to prove the rightness or truth of Marxism and Mao’s theory. Only political leaders, actually only Mao himself, could establish new truth and develop Marxism. Just as philosophy was the handmaiden of theology in the medieval West, so in China philosophy became the servant of Mao’s politics. Any question or criticism put to Marxism and Mao’s theory was regarded as a political challenge. For Mao, the most important thing that Marxist philosophy can teach is its theory of class struggle and the theory of proletarian dictatorship. Mao’s philosophy actually became a kind of “Struggle Philosophy.”

Now the debate about the criterion of truth and the establishment of practice as that criterion broke this myth of Marxism and of Mao’s theory. Marxism became a subject that could be reflected upon, examined, renewed, and developed. The truth-criterion discussion of 1978 was indeed a movement of enlightenment, a movement of thought liberation. It paved the way for contemporary China’s economic development, and it also paved the way for any possible new contributions to Marxism. It used to be the case that one could only “insist” on Marxism; now we could “develop” Marxism, and many now believed that only by developing Marxist philosophy could one really insist on it. It used to be the case that academic philosophy was always subordinate to the leaders’ thought and did not have any independent status. Since 1978, however, philosophical research has won a relatively independent academic position.

2. Reform of the Philosophical Textbook

The immediate effect of these developments for Chinese Marxism was the publication of new editions of the Marxist textbook. One would think that a new edition of a textbook is a matter of pedagogy, of the teaching of philosophy, rather than a matter of philosophical development, or development in philosophical thought. This is not the case in China, however.  For, generally speaking, it is only the Marxism embodied in the textbook that is regarded as the orthodox Marxism, the “true” Marxism that should be learned. A change in the textbook means therefore a change of attitude towards Marxism. To a great extent, the changes of the textbook mirror the situation of Marxist philosophical research.  To get a new edition of the Marxist textbook published, what is essential is not the approval of the referees, but that of the government. Now the situation has changed significantly, yet the reform and reconstruction of the official textbook is still regarded as an important aspect of the progress of Marxist philosophy.

Until 1978, the main textbook of Marxist philosophy in China was Dialectical Materialism and Historical Materialism (edited by Ai Siqi, the former leader of the Party School of the Communist Party). Its contents and structure were basically transplanted and transferred from the textbook of Marxist philosophy in the former Soviet Union, and it was deeply influenced by Stalinist dogmatism. Though political relations between the Soviet Union and China were broken in the early 1960s, this type of official philosophical textbook had remained unchanged.

Since 1978, Chinese philosophers have introduced important modifications or re-formulations to different aspects and levels of Marxist philosophy.

First, breaking away from the constraint of the traditional textbook, they returned to the original works of Marx, Engels, and Lenin. Many concepts have been redefined, such as matter, consciousness, existence, spirit, static, motion, ideals, struggle, social existence, social consciousness, knowledge, truth, practice. Various basic views and positions were re-evaluated, such as, “the basic problem of philosophy,”  “the challenge of epistemological skepticism,” “the relationship between dialectics and metaphysics,” “the relationship between materialism and idealism,” “the basic contradictions in human society,” “epistemological methods,” and so on. Some Marxist theories were abandoned, whereas others were re-formulated.

Second, many new concepts and views, mainly derived from Western philosophy and/or sciences, were introduced into the Marxist philosophic textbook, including concepts such as: subject and subjectivity, object and objectivity, medium, element, structure, function, information, feedback, control, social system, social organism, purpose, emotion, will, cognitive model, thinking world, value, evaluation, and so on; and views such as:  “the idealist way and the practical way of human understanding of the World”; “the interactive law between subject and object”; “the farsightedness, selection, and creativity of human cognition”; “subjective principle and the system principle in cognition”; “the unity of truth and value”, “the concrete and historical unity among Truth, Good, and Beauty.” Some new research methods were transplanted, and applied to Marxist philosophical research, for example, the methods of genetic theory, atomic analysis, constructive explanation, and functional analysis.

Third, many new domains have been explored, and many new branches have been introduced and developed, for example, axiology, theory of practice, philosophical methodology, philosophical anthropology, the theory of social organisms, the theory of social control, the genetic theory of cognition, the theory of cognitive evolution, philosophy of man, philosophy of science, philosophy of humanities and social science, scientific epistemology, social epistemology, philosophy of daily life, feminist philosophy, philosophy of environment and ecology, and so on.

These philosophical achievements provided the new foundation to the textbook reform and reconstruction of Marxism in China. There are many textbooks with different outlooks. I would like to mention briefly the following four that are the most influential.

a. Dialectic Materialism and Historical Materialism, editor-in-chief, Xiao Qian, a professor at the People’s University of China. The book maintains the main structure of Ai Siqi’s textbook but thoroughly absorbs the new achievements of the sciences. It includes sub-divisions such as materialism, dialectics, and epistemology, theory of society and history, and methodology. It is the most influential textbook of Marxist philosophy in China. The problem of this book is that some of the new contents of the philosophy could not find their suitable place in the old system.

b. The Basic Principles of Marxist Philosophy, chief editor, Gao Qinghai, a professor at Jilin University. It is based on the historical development of Western philosophy and of Marxist philosophy. The major strength of the book lies in its attempt to locate the historical sources of the main philosophical concepts and its emphasis on understanding Marxist philosophy historically. The problem of this book is its difficulty in distinguishing the content of Marxist philosophy from that of Western philosophy. The other problem is that it is too historical, and somewhat weak in the construction of philosophical arguments.

c. Professor Huang Danshen, of Beijing University, tries to compile a system of Marxist philosophy according to his understanding of Lenin’s Philosophical Notebooks. The structure of his textbook system is based on 36 pairs of concepts. Since Lenin’s philosophical notebooks are his reading notes on Hegel’s Logic, Huang’s plan carries the obvious influence of Hegel’s philosophy. The other problem of his system is that 36 pairs of concepts are not enough to include all aspects of philosophy.

d. Professor Xia Zhentao of the People’s University of China, and Ouyang Kang [the present author], a professor at Wuhan University, have created another new system of Marxist philosophy according to their understanding to Karl Marx’s “Practical Materialism.” We understand that the major characteristic of Marxist philosophy is its emphasis on “practice.” This is also the basic point of difference between Marxist and non-Marxist philosophy. It is a fact that Karl Marx never called his philosophy dialectical materialism or historical materialism; instead he referred to it as “Practical Materialism” in his Economic and Philosophic Manuscripts (1844). His most famous sentence was the one that appeared on his tombstone: “Philosophers only explain the world, but the problem is to change it.” Based on Marx’s ideas, we developed a comprehensive understanding of the concept of “practice” and redefined the nature of Marxist philosophy as a kind of Dialectical, Historical, Humanistic, and Practical Materialism. Marxist philosophy is a philosophy of the relationship between Man and the World. The highest function of Marxist philosophy is to help people to recognize, to understand, to evaluate, to control, to develop, and to deal with this relationship more rationally and more efficiently. The new outlook of Marxist philosophy will be a kind of new Subjective-Methodological system.

At the present time, the reform and the reconstruction of the textbook of Marxist philosophy is still going on. We believe that further developments of Marxist philosophy in China should be individualized and personalized, rather than following a unified pattern. Different Marxist philosophers should be encouraged to develop their own philosophical systems based on their own understanding of Marxist philosophy, and they should use their special research methodology.          

3. Exploring the Human Agent and Subjectivity

In the past, human beings had little standing in Chinese Marxist philosophy. Even when the notion of man was mentioned occasionally, it mainly referred to the collective, group, class and nation, but not to the individual. This has been criticized as “stressing nature but forgetting man” – i.e., stressing the collective man but forgetting the individual person. Now it is agreed that the individual human being should be the main topic of Marxist philosophy.

With the publication of Marx’s newly discovered  Economic and Philosophic Manuscripts,* Chinese philosophers have become more interested in the problems of humanism and alienation. Some claim that the individual human being should be the starting point of Marxist philosophy. Others think that problems of the individual human being should be the highest target, the primary task, the central subject-matter and the final destination of Marxist philosophy. Still others suggest that humanism can be included in Marxism if it is defined as a basis for ethical consideration. The discussion, however, suffered a setback in the anti-liberalism movement of 1984.

Another related topic is subjectivity. Both subject and object are new concepts of Chinese Marxist philosophy that did not appear in the old philosophical textbook. In the 1980s, discussion of this issue was not limited to Marxist philosophy, but was also found in the literatures of critical theory, ethics, aesthetics, and so on. Why were Chinese intellectuals so interested in the problems of subject, subjectivity, and the subjective principle? The answer is that in discussing subjectivity, the central philosophical position of the individual human being could be established. There are many different positions in the inquiry into subjectivity. Some argue against it on the ground that to emphasize subjectivity would lead to the denial of cognitive objectivity. Others, on the other hand, push the subjective principle to the extreme of advocating an absolute free will. My M.A. thesis is entitled “On Subjective Ability,” and I have published many papers on this topic. I believe that the subjective movement in contemporary Chinese philosophy was actually a thought liberation movement.

In May 1997, Professor Huang Danshen of Beijing University organized a National Association of the Philosophy of Man, which held its first conference in Beijing. The Philosophy of Man has become a very hot topic in China today. One strong feature is to connect this topic with the new outlook of Marxist philosophy. Some claim that the Philosophy of Man is the hallmark of contemporary Marxist philosophy. Others think that the Philosophy of Man is only a part of Marxist philosophy. Nevertheless, the efforts to establish the Philosophy of Man have stimulated much philosophical research and have greatly extended the development of Marxist philosophy in China.

4. Marxist Philosophy and Confucianism

How should Marxist philosophy deal with its relationship to the traditional Chinese value system?           

The controversy between traditionalism and anti-traditionalism has been hot in modern China for many decades. Since the New Cultural Movement of May 4, 1919, anti-traditionalism was the main trend. To some, revolution means rejecting traditional Chinese culture, especially Confucianism. Mao Zedong was deeply influenced by traditional Chinese culture in his early years. But one of the most important aims of his Cultural Revolution was to get rid of Confucianism, and even of all traditional Chinese culture. Traditional Chinese culture is regarded as an obstacle to China’s modernization. Others looked down upon Chinese philosophy, and believed that Chinese philosophy was not mature, and that it lacked logic. They admired only Western civilization and philosophy. Meanwhile, the more traditionally-minded scholars insisted that Chinese culture and philosophy should be the mainstream in China. Now the problem is whether it is possible to combine Marxist philosophy with traditional Chinese culture. Can Marxist philosophy be developed without learning from Chinese culture and philosophy? How can Marxist philosophy become intrinsic to contemporary Chinese culture? How can Marxist philosophy find its foundation and roots in Chinese soil?Almost all Chinese philosophers now realize the necessity of combining Marxist philosophy and traditional Chinese philosophy. Integrating Chinese philosophy and culture into Marxist philosophy is the necessary way to develop Marxist philosophy in China. It is also the necessary way to discover and recognize the contemporary meaning of traditional Chinese culture and philosophy.  There are many positive elements in traditional Chinese culture and philosophy that may be profitably absorbed into Marxist philosophy. Here we briefly list some of them:           

The idea of the unity of Man and Heaven (Nature)
Now our entire world is deeply involved in the ecological controversy surrounding the relationship between Man and Nature. The sharp opposition between man and nature has been characteristic of much traditional Western culture and philosophy, and Marxism itself is a product of that tradition. To find possible ways to achieve a harmony of man and nature has from the beginning been a basic theme in traditional Chinese philosophy. Chinese philosophers insisted that nature is to be regarded not as the slave of man but as the equal partner in human life and in the formation of humanity. Man should stay on good terms with nature. Human beings should respect and protect nature. To protect nature is to protect the necessary environment of human life. Traditional Chinese philosophy is full of ecological insights and anticipations.  The same ecological concerns can be found in Karl Marx’s Economic and Philosophic Manuscripts.   
The outlook and method of the Mean (Zhong Yong).
The Mean, also called “the Impartiality” or “the Doctrine of the Mean,” is the Middle Way.  Epistemologically, the method of the Mean seeks to master the object in a complete and rounded way by avoiding any kind of extreme, excess, and partiality. In the context of social life, the Middle Way prescribes that each human being should form his own judgment regardless of the opinions of others. 

Harmony among peoples
Chinese philosophy emphasizes peace and harmony among peoples and condemns irrational and unnecessary conflicts and unjust wars. Chinese philosophers insisted that human beings should respect and help each other. And their harmonious relationship is to be based on the common understanding of virtues. Rulers should treat their people as they treat their children. To show respect to the old and to protect youth were regarded as the basic virtues in ancient China. Traditional Chinese virtues, such as diligence and filial piety, have their contemporary meanings in today’s human life and should become the intrinsic content of Marxist ethics.

Recently there have been heated discussions on Asian Values in the East and also in the West.. It is generally agreed that Confucianism is the main core of Asian values, which include in particular “Family Values.”   Many Chinese philosophers believe that the teachings of traditional Chinese philosophy could still be applicable to human life today.  They retain their relevance in contemporary world culture.
5. Deng Xiaoping Theory

Deng Xiaoping theory is regarded as the new stage and new outlook of Marxist philosophy in contemporary China. It is the guiding ideology in building Socialism with Chinese Characteristics. Deng’s thought has been intensively studied.

I think that the most important contributions of Deng Xiaoping theory lie in the liberation of the human spirit in contemporary China. The core and key point of Deng’s theory is “emancipating the mind” and “seeking truth from facts.”  Seeking truth from facts is the quintessence of Marxism-Leninism and Mao Zedong Thought. Deng emphasized this in 1978 and used it to counter the “two whatevers,” thus opening up a new area for China. It was called the first Spirit Liberation Movement in China.  After the political incidents in 1989, there were some arguments about where China should go, especially whether China should continue its reform and open policy. Deng stressed the emancipation of the mind in his trip to South China in 1992. This affirmation cleared up many important misconceptions about Socialism, and advanced the reform to a new stage. This was called the second Spirit Liberation Movement, which initiated the socialist market system in China. After Deng’s death, there have been some debates regarding his theory and practice. Secretary-General Jiang Zemin and the central committee of CPC stressed these two aspects again in its 15th National Congress in September 1997. This was regarded as the third Spirit Liberation in today’s China.

Deng Xiaoping’s other important contribution to Marxist philosophy is to establish a new criterion for socialist theories. He claimed that the fundamental questions we should ask about socialism are what socialism is and how to build it. He raised three fundamental criteria for judging a proposal or a policy: whether it is favorable for promoting growth of the productive forces in a socialist society, whether it is favorable for increasing the overall strength of the socialist state, and whether it is favorable for raising the people’s living standards. The criteria were called the “three favorables.”  By these three value criteria, people could actually evaluate all social policy and social administration and could judge between right and wrong and between good and bad.

Deng Xiaoping theory is a system with rich contents. He has greatly contributed to the contemporary development of China. His philosophical ideas give us enlightenment although they do not complete the development of Marxist philosophy in China. Deng’s theory itself should be developed in time.

6. Marxism and Chinese Socialist Market System

One special and current problem facing Chinese Marxist philosophers is how Marxist philosophy answers the challenges of constructing a socialist market economic system in China. In the past 20 years, the economic system in China has been changed from the central planning system via planned commercial system to a socialist free market system. The economy has developed rapidly. The new market system has thrown all traditional disciplines, such as philosophy, literature, and history into turmoil. As everyone knows, Marxism in China had a privileged political position in the planning of the social system. Now Marxist philosophical research has become a kind of academic research. The authority of Marxist philosophy can only be based on its content and function, depending on whether it is recognized by society. Marxist philosophers stand on the same level as other scholars. It is not only a kind of challenge but also a fair competition. This situation forces and stimulates Marxist philosophers in China to do their work better than ever. It is the motivating force underlying the development of Marxist philosophy as an academic discipline.

The socialist market economy, as a part of Chinese Marxism, is both a heritage and a development of Marxist economics. In our prior understanding of Marxism, socialism is the opposite of capitalism. The basic nature of capitalism is private ownership, free market economic system, and wealth distribution according to the ownership of capital. As the opposite of capitalism, the basic nature of socialism lies in the public ownership of capital, planned economic system, and wealth distribution according to work. The former Soviet Union, some Eastern European countries, and China had tried for many years to follow these criteria for socialism, and the consequence is not good at all. This situation led the Chinese Communist Party to re-think and re-understand Marx and Engels, especially the ideas of their later years. If one inquires more deeply into why they contrasted socialism with capitalism, one will discover that in their understanding, the highest goal of socialism is to create the higher productive forces, to get rid of social inequality, to destroy poverty, and to make all social groups richer. Socialism is thus a more advanced system than capitalism. But these ideas are not easy to actualize. Each country has to find its own effective and possible way according to its own history and reality. Only when your socialist theory succeeds can it be proved to be true socialism, and only then can your practice be accepted and followed by your people. Otherwise socialism will have no reason and no power to attract the people. Here we should insist that practice is the only criterion to judge the truth of socialism and of Marxism.

The Chinese socialist market economic system is based on following arguments.           

1). Marxist socialism is not a kind of dogma but an active and practical movement. The highest goal of socialism is to develop productive forces in the most effective way. The basic doctrine of socialism is to enrich all members of society. To meet its goals, the development models of socialism in the world are not universal and unique but variable and multiple. In different countries, socialism requires different models and different ways. This is a necessary way to realize and to develop socialist theory.

2). The market, as an economic form, is neutral in relation to political and ideological systems. The market system does not belong only to capitalism but can also be used by socialism. Today’s world is basically a global market economic system. Any individual country should consciously join in the world market system if they want to become a member of international society rather than being isolated. This also applies to China.

3). It is impossible to complete the transition from capitalism to communism in one step. There are some middle stages between them. Socialism is a middle stage in the transitional process. It should contain the characteristics of these two societies.

4). The Socialist free market system with Chinese Characteristics is a new development of Chinese Marxism. On the one hand, it insists that the highest aims of socialism are to develop the productive forces and to enrich people’s lives to the greatest extent. On the other hand, it fits with the down-to-earth situation of contemporary China.

5). It has been proven through many years’ unsuccessful practice in China before 1978 that the pure central planning economic system was a way neither to develop productive forces nor to raise the people’s living standard. The fastest continuous economic development in China since 1978, especially since 1992, has strongly proved the benefits of the socialist market system.

Reference

Ai Siqi ed.: Dialectic Materialism and Historical Materialism, People’s Press, Beijing, 1970.

The Special Commentator: “Practice Is the Only Criterion for Judging the Truth”, Guang-ming Daily, May 11, 1978.

Gao Qinghai: The Basic Principles of Marxist Philosophy, Jilin Press, Changchun 1989.

Xiaoqian etc. ed. The Basic Principles of Marxist Philosophy, The Chinese People’s University Press, Beijing, 1992.
Ouyang Kang: An Introduction to Social Epistemology, China Social Science Press, Beijing, 1990.

Ouyang Kang: The Methodology of Philosophy Research, Wuhan University Press, Wuhan, 1998.

Ouyang Kang: From the Discussion of Truth Criterion to the Construction of the New Morphology of Marxist Philosophy, TIANJING SOCIAL SCIENCES, 1998(6)

The author: Prof. Dr. Ouyang Kang, Dean of the School of Humanities, Head of the Department of Philosophy, Wuhan University, Wuhan, Hubei 430072, P. R. China, Tel/Fax +86-27-87882755 , Email: kouyang@whu.edu.cn.

*[Ed. note: Although Marx’s 1844 manuscripts were first published in 1932 (in Berlin), it was not until 1979 that they were published in China.]



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Smart Grid: Now The Task Is To Make It Global

by @ Friday, May 3rd, 2013. Filed under Green Energy, High Design

monitoring.the_.gridx299.jpg

Smart power: Andrew Brown, an engineer at Florida Power & Light, monitors equipment in one of the utility’s smart grid diagnostic centers.

With Florida Project, the Smart Grid Has Arrived

Smart grid technology has been implemented in many places, but Florida’s new deployment is the first full-scale system.

 

By Kevin Bullis

SolidarityEconomy.net via MIT Technology Review

Why It Matters

May 2, 2013 - Conventional power grids can’t handle big storms or large-scale renewable energy.

The first comprehensive and large scale smart grid is now operating. The $800 million project, built in Florida, has made power outages shorter and less frequent, and helped some customers save money, according to the utility that operates it.

Smart grids should be far more resilient than conventional grids, which is important for surviving storms, and make it easier to install more intermittent sources of energy like solar power (see “China Tests a Small Smart Electric Grid” and “On the Smart Grid, a Watt Saved Is a Watt Earned”). The Recovery Act of 2009 gave a vital boost to the development of smart grid technology, and the Florida grid was built with $200 million from the U.S. Department of Energy made available through the Recovery Act.

Dozens of utilities are building smart grids—or at least installing some smart grid components, but no one had put together all of the pieces at a large scale. Florida Power & Light’s project incorporates a wide variety of devices for monitoring and controlling every aspect of the grid, not just, say, smart meters in people’s homes.

“What is different is the breadth of what FPL’s done,” says Eric Dresselhuys, executive vice president of global development at Silver Spring Networks, a company that’s setting up smart grids around the world, and installed the network infrastructure for Florida Power & Light (see “Headed into an IPO, Smart Grid Company Struggles for Profit”).

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High Design: A Way to Store Wind Energy When the Wind Isn’t Blowing

by @ Thursday, May 2nd, 2013. Filed under Energy, Environment, Green Energy, Green Industry, High Design

A new system being developed at MIT would store excess energy in concrete spheres on the s...

Concrete spheres could deliver feasible energy storage for offshore wind turbines

A new system being developed at MIT would store excess energy in concrete spheres on the sea floor

By Darren Quick

SolidarityEconomy.net via MIT

May 1, 2013 - The intermittent nature of wind and solar power generation is one of the biggest challenges facing these renewable energy sources. But this isn’t likely to remain a problem for much longer with everything from flywheels to liquid air systems being developed to provide a cheaper form of energy storage than batteries for times when the wind is blowing or the sun isn’t shining. A new concept out of MIT can now be added to the the list of potential solutions. Aimed specifically at offshore wind turbines, the concept would see energy stored in huge concrete spheres that would sit on the seafloor and also function as anchors for the turbines.

The MIT concept works by using excess energy generated by the wind turbines to pump seawater from a hollow concrete sphere sitting on the seafloor that measures 30 meters (98 ft) in diameter. Then, when the wind dies down and power is needed, a valve is opened to let the water back into the sphere through a turbine that drives a generator to produce electricity.

The MIT researchers say that such a sphere positioned in 400-meter (1,312 ft) deep water could store up to 6 MWh of power, meaning that 1,000 spheres could supply as much power as a nuclear power plant for several hours. They claim this is enough to transform offshore wind turbines into a reliable alternative to conventional on-shore coal or nuclear plants.

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High Design: The Big & Small House

by @ Tuesday, April 30th, 2013. Filed under Green Energy, Green Industry, High Design

The Big & Small House

Big & Small House proves less really can mean more

By Adam Williams

SolidarityEconomy.net via Gizmag.org

April 29, 2013

Image Gallery (26 images)

Though a large imposing house may draw admiring glances, it’s also generally expensive, and a waste of resources for a smaller family. Los Angeles-based Big & Small House by Anonymous Architects bucks the trend of sizable LA residences, and instead offers an example of small living at its most practical and appealing.

  • The kitchen countertop, feature wall, and floors are all constructed from white oak (Photo...
  • The residence contains only two full-height walls in order to impart a feeling of open spa...

 

In a somewhat similar fashion to the Like A Houseboat residence, Big & Small House sits atop four concrete stilts, reducing the footprint of the building’s foundations to under 20 square-feet (1.85 sq m). This frees at least some of the land beneath the house for potential use, which is a significant gain when working with a site half the size of the usual minimum for an LA home.

The home's unusual geometry derives from the lot's own unusual shape – an inverted paralle...

The 1,200-sq ft (111 sq-m) building area of Big & Small House follows the asymmetric parallelogram shape of the site. Therefore the interior features unusual geometry, making for a striking home and space-saving opportunities.

In order to turn the modest dimensions of Big & Small House into a veritable Tardis, Anonymous Architects used a few novel tricks, such as folding furniture and the use of partitions instead of sealed walls to impart a feeling of open space.

The single-story (plus loft and adjoining single-car parking garage) home was completed in April, 2012.

Source: Anonymous Architects via Fast Co.Design

About the Author

Adam Williams Adam is a tech and music writer based in North Wales. When not working, you’ll usually find Adam tinkering with old Macintosh computers, reading history books, or exploring the countryside with his dog Finley.   All articles by Adam Williams



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Green Jobs by Bringing Solar to Scale

by @ Monday, April 29th, 2013. Tags:
Filed under Green Energy, Solar, Technology

World’s Biggest Solar PV Projects Under Way In Southern California

By Pete Danko

What will become the world’s largest solar photovoltaic development is now in “major construction” mode in California’s Antelope Valley, about 60 miles north of Los Angeles.

The solar manufacturer and developer SunPower and the utility company MidAmerican announced this new status late last week, coinciding with a big community event at the 3,230-acre site, where preliminary work began in January.

The development consists of Antelope Valley Solar Project 1, a 309-MW plant that will straddle the Kern-Los Angeles county line; and AVSP 2, a 270-MW plant that will be entirely in Kern County.
antelope valley solar projects

SunPower’s Oasis Power Plant product consists of scalable 1.5-megawatt power blocks that employ the company’s single-axis tracking panels. (image via SunPower)

When completed by the end of 2015, if all goes according to plan, the Antelope Valley Solar Projects will add up to 579 MW, dwarfing any other PV outpost in the world.

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Micro Manufacturing, Third Wave Style…Perfect for Worker Coops?

by @ Wednesday, April 24th, 2013. Filed under Cybernation, Economy, High Design

In the Next Industrial Revolution, Atoms Are the New BitsPhoto: Dan Winters

By Chris Anderson

SolidarityEconomy.net via Wired Magazine

Jan. 25, 2010 - In an age of open source, custom-fabricated, DIY product design, all you need to conquer the world is a brilliant idea.
Photo: Dan Winters

The door of a dry-cleaner-size storefront in an industrial park in Wareham, Massachusetts, an hour south of Boston, might not look like a portal to the future of American manufacturing, but it is. This is the headquarters of Local Motors, the first open source car company to reach production. Step inside and the office reveals itself as a mind-blowing example of the power of micro-factories.

In June, Local Motors will officially release the Rally Fighter, a $50,000 off-road (but street-legal) racer. The design was crowdsourced, as was the selection of mostly off-the-shelf components, and the final assembly will be done by the customers themselves in local assembly centers as part of a “build experience.” Several more designs are in the pipeline, and the company says it can take a new vehicle from sketch to market in 18 months, about the time it takes Detroit to change the specs on some door trim. Each design is released under a share-friendly Creative Commons license, and customers are encouraged to enhance the designs and produce their own components that they can sell to their peers.

The Rally Fighter was prototyped in the workshop at the back of the Wareham office, but manufacturing muscle also came from Factory Five Racing, a kit-car company and Local Motors investor located just down the road. Of course, the kit-car business has been around for decades, standing as a proof of concept for how small manufacturing can work in the car industry. Kit cars combine hand-welded steel tube chassis and fiberglass bodies with stock engines and accessories. Amateurs assemble the cars at their homes, which exempts the vehicles from many regulatory restrictions (similar to home-built experimental aircraft). Factory Five has sold about 8,000 kits to date.

One problem with the kit-car business, though, is that the vehicles are typically modeled after famous racing and sports cars, making lawsuits and license fees a constant burden. This makes it hard to profit and limits the industry’s growth, even in the face of the DIY boom.

Jay Rogers, CEO of Local Motors, saw a way around this. His company opted for totally original designs: They don’t evoke classic cars but rather reimagine what a car can be. The Rally Fighter’s body was designed by Local Motors’ community of volunteers and puts the lie to the notion that you can’t create anything good by committee (so long as the community is well managed, well led, and well equipped with tools like 3-D design software and photorealistic rendering technology). The result is a car that puts Detroit to shame.

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Venezuela Now a Fulcrum in the World Balance of Power

by @ Saturday, April 20th, 2013. Filed under Cuba, Socialism, Venezuela

China Model Can Save Venezuela's Embattled Project

By Heiko Khoo
SolidarityEconomy.net via China.org.cn

Following the death of Hugo Chávez on March 5, 2013, last Sunday's presidential election in Venezuela produced a narrow victory for the Socialist candidate Nicolas Maduro.

The final vote was much closer than expected. President Maduro won 50.8 percent of the vote against 49.0 percent for opposition candidate Henrique Capriles. However, instead of graciously accepting his narrow defeat, Capriles claimed the vote was rigged and used private television stations to incite bloodshed and violence. Opposition social media campaigns show false images of dumped ballot papers, and mobile phone recordings of frenzied oppositionists shouting at soldiers. This is supposed to constitute proof of fraud! On Tuesday the opposition called for a general strike, which failed to materialize, but some of their supporters took to rampaging though the streets. They set fire to 18 public heath centers and three low-cost food markets, and they attacked buildings of the ruling Socialist Party and public television stations. Seven people were killed in the violence.

Nicolas Maduro was sworn in by the National Assembly Friday as Venezuela's acting president on March 8 after the State funeral of the late president Hugo Chavez. [Xinhua/Presidency of Venezuela]

Venezuela's electronic voting system is scrupulously transparent and fraud proof. It combines finger print recognition, identity card checks, electronic voting and paper records. Compare this with Britain, where there are no identity checks or fingerprinting, and literally anyone can go to a polling booth and vote, as long as they know the correct name and address of a registered elector!

If the Venezuelan opposition wishes to challenge the legitimacy of Sunday's presidential vote, they have twenty working days to take their complaints to the National Electoral Council (CNE) or the Supreme Court. But instead of using constitutional channels they immediately embarked on a hysterical campaign of civil disobedience, violence and bloodshed. The real truth is that the opposition is not interested in verifying the results of the election. It knows that the process was transparent, despite the close result, and is using its electoral advance as a launching pad for an attempted coup d'état with the intent of overthrowing the democratic system and ending the socialist road chosen by the majority.

China, Russia, Latin America's governments and most governments around the world recognized President Maduro's election victory. However, the self-proclaimed world champions of democracy, the United States and the European Union, are in only favour of democracy as long as it serves their interests. So they support the campaign of the Venezuelan opposition to bring a halt to the country's socialist experiment.

President Maduro would be justified in breaking off diplomatic relations with all countries involved in this blatant campaign of imperialist interference. He is correct to ban opposition demonstrations which aim to foster an escalation of violence. The National Militia should be mobilized to maintain peace on the streets, protect public property, and defend the election result, the constitution, and the revolution.

It should be remembered that in April 2002, the United States and the Venezuelan opposition (including Capriles) orchestrated a coup d'état against former President Hugo Chávez. It was an uprising of the masses that defeated that counter-revolution.

It is likely that the opposition's attempt to overturn the election result by force will be defeated in the next few days. Venezuela's petit-bourgeoisie has a tradition of hysterical behaviour when they fail to get their way. But when they are faced with the forceful, decisive and unified action of the revolutionary masses, they scatter like so much human dust.

The revolutionary movement must, however, take stock of the rise in support for Capriles and the opposition. The Venezuelan revolution is entering a dangerous period where fundamental decisions about the destiny of the revolution need to be taken. Inner demons, like crime and corruption, which undermine support for the revolution, must be contained and defeated.

The tearful send-off given to Hugo Chávez by millions of Venezuelans and their solemn declarations to continue his revolutionary mission continues to reflect the will of the majority; but eulogies to Chávez are not enough to defend the revolution. In order to neutralize and split the opposition, President Maduro must base himself on the heightened consciousness of his own constituency. He must rapidly and boldly shift the balance of forces decisively in favour of the revolution.

A weakening in the position of the United States and a leftward shift in South American politics has placed Venezuela's socialist project at the center of the world balance of power. Just as the United States maintains its barbaric embargo against the people of Cuba, so the U.S. military, economic and political elites want to halt Venezuela's socialist revolution by any means.

The fact is that China now plays a decisive role in sustaining Venezuela's revolution. Infrastructure projects that were plagued by corruption and incompetence a few years ago are now being realized with the support of a US$42bn loan from China's State Development Bank. Chinese state-owned enterprises are working wonders in railway construction, communications technology, and above all in the construction of public sector housing. China is building three million low-cost homes for the Venezuelan people and is engaged in a wide range of projects central to Venezuela's socialist project.

The reason China is able to provide such multilayered and concrete support for Venezuela's revolutionary process is because its economy is dominated by publicly owned banks and industries, organized around the objectives of the 12th Five Year Plan. The planned sector of the economy acts as the primary motivating force of the Chinese economy. The plan guides investment by state banks and serves the needs of the majority by improving their livelihood.

This Chinese lesson should be taught all over Venezuela and South America. Public ownership of the banks and the largest companies is what provides the foundation for China's economic success. Despite the determination and revolutionary energy of comrade Hugo Chávez, he took decisions in a rather eclectic fashion. Economic planning remained limited to specific projects, rather than constituting the core of a unified socio-economic totality.

In order to extend the political and social base of the Venezuelan revolution, the government should commission 5, 10, 20 and 50 year plans. These should be the results of research, consultation and mass democratic participation. Public ownership of the largest banks and the commanding heights of the economy can provide the optimal resources needed to make Venezuela's long-term socialist plans invincible.

The author is a columnist with China.org.cn.



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High Design: Generating Power from the Difference between Warm and cold Seawater

by @ Friday, April 19th, 2013. Filed under China, Energy, Green Energy, High Design

World’s Largest OTEC Power Plant Planned for China

By Darren Quick

SolidarityEconomy.net via Gizmag

April 18, 2013

Lockheed Martin and Reignwood Group plan to develop a 10 MW prototype OTEC pilot plant off...

Lockheed Martin and Reignwood Group plan to develop a 10 MW prototype OTEC pilot plant off the coast of southern China

Lockheed Martin has been getting its feet wet in the renewable energy game for some time. In the 1970s it helped build the world’s first successful floating Ocean Thermal Energy Conversion (OTEC) system that generated net power, and in 2009 it was awarded a contract to develop an OTEC pilot plant in Hawaii. That project has apparently been canceled but the company has now shifted its OTEC sights westward by teaming up with Hong Kong-based Reignwood Group to co-develop a pilot plant that will be built off the coast of southern China.

OTEC uses the natural difference in temperatures between the cool deep water and warm surface water to produce electricity. There are different cycle types of OTEC systems, but the prototype plant is likely to be a closed-cycle system. This sees warm surface seawater pumped through a heat exchanger to vaporize a fluid with a low boiling point, such as ammonia. This expanding vapor is used to drive a turbine to generate electricity with cold seawater then used to condense the vapor so it can be recycled through the system.

A closed-cycle OTEC system

Tropical regions are considered the only viable locations for OTEC plants due to the greater temperature differential between the shallow and deep water. Unlike wind and solar power, OTEC can produce electricity around the clock, 365 days a year to supply base load power. OTEC plants also produce cold water as a by-product that can be used for air conditioning and refrigeration at locations near the plant.

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The ‘Green New Deal’ at Work

by @ Tuesday, April 16th, 2013. Filed under Energy, Green Energy, Green Industry

Wind produces almost twice as much power as nuclear in California

Blowing away the competition in California

Shutterstock / Tim Messick Blowing away the competition in California

By John Upton

SolidarityEconomy.net via Grist.org

When winds were at their strongest in California this month, wind turbines were providing the state with nearly twice as much electricity as nuclear reactors.

The Golden State saw a surge in new wind farms last year, taking its wind power capacity to 5,544 megawatts. That put it second in the nation behind Texas, which has more than 12,000 MW of installed wind capacity.

From the Los Angeles Times:

California also ranks second in the U.S. in the amount of employment associated with the wind industry, with more than 7,000 jobs, the [American Wind Energy Association] said.

Nationally, wind energy production grew 28% in the U.S. last year in what AWEA describes as the industry’s best year to date.

“We had an incredibly productive year in 2012,” said Rob Gramlich, interim chief executive of AWEA. “It really showed what this industry can do and the impact we can have with a continued national commitment to renewable energy.”

The wind isn’t blowing everywhere all the time, so actual electricity production from wind turbines is never as high as total capacity. But storms earlier this month pushed wind power generation in California above 4,000 MW. From Greentech Media:

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Germany Showing How to Move to Clean Energy

by @ Monday, April 15th, 2013. Filed under Green Energy, Green Industry, High Design, Solar

German housing producing its own electricity, and selling the excess to the grid

Is Renewable Energy's Biggest Problem Solved?

By Paul Brown
SolidarityEconomy.net via Climate News Network

April 5, 2013 - Critics of renewables have always claimed that sun and wind are only intermittent producers of electricity and need fossil fuel plants as back-up to make them viable. But German engineers have proved this is not so.

By skillfully combining the output of a number of solar, wind and biogas plants the grid can be provided with stable energy 24 hours a day without fear of blackouts, according to the Fraunhofer Institute for Wind Energy and Energy System Technology (IWES) in Kassel.

For Germany, which has turned its back on nuclear power and is investing heavily in all forms of renewables to reduce its carbon dioxide emissions, this is an important breakthrough.

The country has a demanding industrial sector that needs a large and stable electricity supply, and some doubted that this could be achieved in the long term without retaining nuclear or large fossil fuel plants.

Solving the problem is becoming urgent. The latest figures show that on some days of the year the electricity being generated from sun, wind, biomass, water and geothermal production already accounts for more than half of the load required in the country.

The research is funded by the German Federal Ministry of the Environment and is aimed at showing that the entire electricity grid could be run on renewable energy.

Dr. Kurt Rohrig, deputy director of IWES, said: "Each source of energy - be it wind, sun or biogas - has its strengths and weaknesses. If we manage to skillfully combine the different characteristics of the regenerative energies, we can ensure the power supply for Germany.”

The idea is that many small power plant operators can feed their electricity into the grid but act as a single power plant using computers to control the level of power (see our story of 20 January, Renewables: The 99.9% solution).

Sharing the load

Scientists linked together 25 plants with a nominal power output of 120 megawatts. Surplus power could be used for charging electric vehicles and for pumped storage (pumping water uphill into a reservoir to produce hydropower later).

When many small producers work together, then regional differences when the wind blows or the sun is intermittent are balanced out in the grid and can be boosted by controllable biogas facilities.

If there is too much surplus energy then the power can also be used to create and store thermal energy to be used later.

Kasper Knorr, the project manager for the scheme, which is known as the Combined Power Plant2 research project, says the idea is to ensure that the consumer is supplied reliably with 230 volts at a frequency of 50 Hertz.

The current system of supplying the grid with electricity is geared to a few large producers. In the new system, with dozens of small producers, there will need to be extra facilities at intervals on the system to stabilize voltage. Part of the project is designed to find out how many of these the country will need.

The project has the backing of Germany’s large and increasingly important renewable companies and industrial giants like Siemans.  Researchers will be demonstrating the system at the Hanover Trade Fair from April 8 to 13.



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Questioning the Falling Rate of Profit:

by @ Friday, April 12th, 2013. Tags: , ,
Filed under Capitalism, Marxism, Socialism, Technology

A Critique of Heinrich in MR on Technology, Value and Crisis

By Keith Joseph

The Kasama Project

Monthly Review published an essay by Michael Heinrich critiquing Marx's work on the falling rate of profit called:Crisis Theory and the Falling Rate of Profit.  I haven't seen any response yet.  Here's mine.

Heirnrich puts forth three basic theses: 1. Marx, at the end of the day, does not present a coherent and final crisis theory.  2. Marx had two more or less distinct economic projects.  The first begins with the Grundrisse (although this text appears to the public last) and includes the three volumes of Das Kapital and the Theories of Surplus Value. This was the project as Marx originally conceived it and announced it in the Preface to A Contribution to the Critique of Political Economy (the six book plan). The second, lesser known, project begins after 1865 and see Marx re-working his earlier formulations in light of new evidence and even scaling down his ambitions.  He now believes he will only be able to complete part of his work and others will have to finish it.  3. The math on the falling rate of profit doesn’t add up.

The essay is very interesting and I am certainly eager to investigate Marx’s “second” project more thoroughly.  Heinrich does a fine job of explaining how Marx conceived the critique of political economy  at various moments and his emphasis on Marx’s willingness to continually question and re-think his findings is important and worthy of emulation.

I found Heinrich’s refutation of the falling rate of profit's math unconvincing because it is not clear that Heinrich understands the falling rate of profit at the conceptual level.  Setting the rate of profit and the rate of surplus value into mathematical formula  is an important step in the proof of the theory and the formalization of theory can bring clarity but the way that Heinrich proceeds obfuscates more than it reveals.  

Simply put, rising productivity of labor manifests itself in a falling profitability of capital.  It is not clear in Heinrich’s critique that he understands this basic point at the conceptual level.

Rising labor productivity means less labor embedded per unit of output so the commodity bears increasingly less value. Additionally, rising labor productivity destroys existing values since value is determined by socially necessary labor times and rising labor productivity shortens socially necessary labor times. So, existing values must compete in the market with values created under the new conditions of production.  Any labor time above the new socially necessary standard is disappeared in the market as a result of competition.  A falling rate of profit can co-exist, for a time, with a rising mass of profit if the capital relation is reaching new places and markets are expanding.  Heinrich ignores all this.  Now he does mention the importance of the credit system (which is the most developed form of money under capitalism) and its importance to understanding modern crisis.  The credit system is no doubt crucial.

Heinrich’s error, I think, is revealed in the following. Heinrich quotes a famous passage from the Grundrisse and then he argues that it is mistaken. 

“In the so-called “Fragment on Machines,” one finds an outline of a theory of capitalist collapse. With the increasing application of science and technology in the capitalist production process, “the immediate labour performed by man himself” is no longer important, but rather “the appropriation of his own general productive power,” which leads Marx to a sweeping conclusion: “As soon as labour in its immediate form has ceased to be the great source of wealth, labour time ceases and must cease to be its measure, and therefore exchange value [must cease to be the measure] of use value. The surplus labour of the masses has ceased to be the condition for the development of general wealth, just as the non-labour of the few has ceased to be the condition for the development of the general powers of the human head. As a result, production based upon exchange value collapses.”

Heinrich’s then says:

These lines have often been quoted, but without regard for how insufficiently secure the categorical foundations of the Grundrisse are. The distinction between concrete and abstract labor, which Marx refers to in Capital as “crucial to an understanding of political economy,” is not at all present in the Grundrisse.6 And in Capital, “labor in the immediate form” is also not the source of wealth. The sources of material wealth are concrete, useful labor and nature. The social substance of wealth or value in capitalism is abstract labor, whereby it does not matter whether this abstract labor can be traced back to labor-power expended in the process of production, or to the transfer of value of used means of production. If abstract labor remains the substance of value, then it is not clear why labor time can no longer be its intrinsic measure, and it’s not clear why “production based on exchange value” should necessarily collapse. When, for example, Hardt and Negri argue that labor is no longer the measure of value, they do not really refer to the value theory of Capital but to the unclear statements of the Grundrisse.7

Hardt and Negri’s arguments, regardless of what they may assert, are not consistent with the Grundrisse and that they appeal to the authority of the Grundrisse is not a mark against that text.  But that is a minor point.  Heinrich points out that value embedded in a machine (that is the labor time embedded in the machine) is transferred from the machine to the product.  This is correct. 

But when Heinrich says:

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The Next ‘American Revolution’ Already Starting in Cleveland, Cincinnati and a Few Other Places Around Here…



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