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REFORM or revolution and Other Writings
By Rosa Luxemburg
Dover Publications, Inc.Copyright © 2006 Dover Publications, Inc.
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I. The Opportunist Method
IF it is true that theories are only the images of the phenomena of the exterior world in the human consciousness, it must be added, concerning Eduard Bernstein's system, that theories are sometimes inverted images. Think of a theory of instituting Socialism by means of social reforms in the face of the complete stagnation of the reform movement in Germany. Think of a theory of trade union control over production in face of the defeat of the metal workers in England. Consider the theory of winning a majority in Parliament, after the revision of the constitution of Saxony and in view of the most recent attempts against universal suffrage. However, the pivotal point of Bernstein's system is not located in his conception of the practical tasks of the Social Democracy. It is found in his stand on the course of the objective development of capitalist society, which, in turn, is closely bound to his conception of the practical tasks of the Social Democracy.
According to Bernstein, a general decline of capitalism seems to be increasingly improbable because, on the one hand, capitalism shows a greater capacity of adaptation, and, on the other hand, capitalist production becomes more and more varied.
The capacity of capitalism to adapt itself, says Bernstein, is manifested first in the disappearance of general crises, resulting from the development of the credit system, employers' organizations, wider means of communication and informational services. It shows itself secondly, in the tenacity of the middle classes, which hails from the growing differentiation of the branches of production and the elevation of vast layers of the proletariat to the level of the middle class. It is furthermore proved, argues Bernstein, by the amelioration of the economic and political situation of the proletariat as a result of its trade-union activity.
From this theoretic stand is derived the following general conclusion about the practical work of the Social Democracy. The latter must not direct its daily activity toward the conquest of political power, but toward the betterment of the condition of the working class within the existing order. It must not expect to institute Socialism as a result of a political and social crisis, but should build Socialism by means of the progressive extension of social control and the gradual application of the principle of cooperation.
Bernstein himself sees nothing new in his theories. On the contrary, he believes them to be in agreement with certain declarations of Marx and Engels. Nevertheless, it seems to us that it is difficult to deny that they are in formal contradiction with the conceptions of scientific Socialism.
If Bernstein's revisionism merely consisted in affirming that the march of capitalist development is slower than was thought before, he would merely be presenting an argument for adjourning the conquest of power by the proletariat, on which everybody agreed up to now. Its only consequence would be a slowing up of the pace of the struggle.
But that is not the case. What Bernstein questions is not the rapidity of the development of capitalist society, but the march of the development itself and, consequently, the very possibility of a change to Socialism.
Socialist theory up to now declared that the point of departure for a transformation to Socialism would be a general and catastrophic crisis. We must distinguish in this outlook two things: the fundamental idea and its exterior form.
The fundamental idea consists of the affirmation that capitalism, as a result of its own inner contradictions, moves toward a point when it will be unbalanced, when it will simply become impossible. There were good reasons for conceiving that juncture in the form of a catastrophic general commercial crisis. But that is of secondary importance when the fundamental idea is considered.
The scientific basis of Socialism rests, as is well known, on three principal results of capitalist development. First, on the growing anarchy of capitalist economy, leading inevitably to its ruin. Second, on the progressive socialization of the process of production, which creates the germs of the future social order. And third, on the increased organization and consciousness of the proletarian class, which constitutes the active factor in the coming revolution.
Bernstein pulls away the first of the three fundamental supports of scientific Socialism. He says that capitalist development does not lead to a general economic collapse.
He does not merely reject a certain form of the collapse. He rejects the very possibility of collapse. He says textually: "One could claim that by collapse of the present society is meant something else than a general commercial crisis, worse than all others, that is a complete collapse of the capitalist system brought about as a result of its own contradictions." And to this he replies: "With the growing development of society a complete and almost general collapse of the present system of production becomes more and more improbable, because capitalist development increases on the one hand the capacity of adaptation and, on the other,—that is at the same time, the differentiation of industry." (Neue Zeit, 1897–98, vol. 18, pg. 555)
But then the question arises: Why and how, in that case, shall we attain the final goal? According to scientific Socialism, the historic necessity of the Socialist revolution manifests itself above all in the growing anarchy of capitalism, which drives the system into an impasse. But if one admits with Bernstein that capitalist development does not move in the direction of its own ruin, then Socialism ceases to be objectively necessary. There remain the other two mainstays of the scientific explanation of Socialism, which are also said to be consequences of capitalism itself: the socialization of the process of production and the growing consciousness of the proletariat. It is these two matters that Bernstein has in mind when he says: "The suppression of the theory of collapse does not in any way deprive Socialist doctrine of its power of persuasion. For, examined closely, what are all the factors enumerated by us that make for the suppression or the modification of the former crises? Nothing else, in fact, than the conditions, or even in part the germs, of the socialization of production and exchange." (Ibid, pg. 554)
Very little reflection is needed to understand that here too we face a false conclusion. Where lies the importance of all the phenomena that are said by Bernstein to be the means of capitalist adaptation—cartels, the credit system, the development of means of communication, the amelioration of the situation of the working class, etc.? Obviously, in that they suppress or, at least, attenuate the internal contradictions of capitalist economy, and stop the development or the aggravation of these contradictions. Thus the suppression of crises can only mean the suppression of the antagonism between production and exchange on the capitalist base. The amelioration of the situation of the working class, or the penetration of certain fractions of the class into middle layers, can only mean the attenuation of the antagonism between Capital and Labor. But if the mentioned factors suppress the capitalist contradictions and consequently save the system from ruin, if they enable capitalism to maintain itself—and that is why Bernstein calls them "means of adaptation"—how can cartels, the credit system, trade unions, etc. be at the same time "the conditions and even, in part, the germs" of Socialism? Obviously only in the sense that they express most clearly the social character of production.
But by presenting it in its capitalist form, the same factors render superfluous, inversely, in the same measure, the transformation of this socialized production into Socialist production. That is why they can be the germs or conditions of a Socialist order only in a theoretic sense and not in an historic sense. They are phenomena which, in the light of our conception of Socialism, we know to be related to Socialism but which, in fact, not only do not lead to a Socialist revolution but render it, on the contrary, superfluous.
There remains one force making for Socialism—the class consciousness of the proletariat. But it, too, is in the given case not the simple intellectual reflection of the growing contradictions of capitalism and its approaching decline. It is now not more than an ideal whose force of persuasion rests only on the perfection attributed to it.
We have here, in brief, the explanation of the Socialist program by means of "pure reason." We have here, to use simpler language, an idealist explanation of Socialism. The objective necessity of Socialism, the explanation of Socialism as the result of the material development of society, falls to the ground.
Revisionist theory thus places itself in a dilemma. Either the Socialist transformation is, as was admitted up to now, the consequence of the internal contradictions of capitalism, and with the growth of capitalism will develop its inner contradictions, resulting inevitably, at some point, in its collapse, (in that case the "means of adaptation" are ineffective and the theory of collapse is correct); or the "means of adaptation" will really stop the collapse of the capitalist system and thereby enable capitalism to maintain itself by suppressing its own contradictions. In that case Socialism ceases to be an historic necessity. It then becomes anything you want to call it, but it is no longer the result of the material development of society.
The dilemma leads to another. Either revisionism is correct in its position on the course of capitalist development, and therefore the Socialist transformation of society is only a utopia, or Socialism is not a utopia, and the theory of "means of adaptation" is false. There is the question in a nutshell.
II. The Adaptation of Capitalism
ACCORDING to Bernstein, the credit system, the perfected means of communication and the new capitalist combines are the important factors that forward the adaptation of capitalist economy.
Credit has diverse applications in capitalism. Its two most important functions are to extend production and to facilitate exchange. When the inner tendency of capitalist production to extend boundlessly strikes against the restricted dimensions of private property, credit appears as a means of surmounting these limits in a particular capitalist manner. Credit, through shareholding, combines in one magnitude of capital a large number of individual capitals. It makes available to each capitalist the use of other capitalists' money—in the form of industrial credit. As commercial credit it accelerates the exchange of commodities and therefore the return of capital into production, and thus aids the entire cycle of the process of production. The manner in which these two principal functions of credit influence the formation of crises is quite obvious. If it is true that crises appear as a result of the contradiction existing between the capacity of extension, the tendency of production to increase, and the restricted consumption capacity of the market, credit is precisely, in view of what was stated above, the specific means that makes this contradiction break out as often as possible. To begin with, it increases disproportionately the capacity of the extension of production and thus constitutes an inner motive force that is constantly pushing production to exceed the limits of the market. But credit strikes from two sides. After having (as a factor of the process of production) provoked overproduction, credit (as a factor of exchange) destroys, during the crisis, the very productive forces it itself created. At the first symptom of the crisis, credit melts away. It abandons exchange where it would still be found indispensable, and appearing instead, ineffective and useless, there where some exchange still continues, it reduces to a minimum the consumption capacity of the market.
Besides having these two principal results, credit also influences the formation of crises in the following ways. It constitutes the technical means of making available to an entrepreneur the capital of other owners. It stimulates at the same time the bold and unscrupulous utilization of the property of others. That is, it leads to speculation. Credit not only aggravates the crisis in its capacity as a dissembled means of exchange, it also helps to bring and extend the crisis by transforming all exchange into an extremely complex and artificial mechanism that, having a minimum of metallic money as a real base, is easily disarranged at the slightest occasion.
We see that credit, instead of being an instrument for the suppression or the attenuation of crises, is on the contrary a particularly mighty instrument for the formation of crises. It cannot be anything else. Credit eliminates the remaining rigidity of capitalist relationships. It introduces everywhere the greatest elasticity possible. It renders all capitalist forces extensible, relative, and mutually sensitive to the highest degree. Doing this, it facilitates and aggravates crises, which are nothing more or less than the periodic collisions of the contradictory forces of capitalist economy.
That leads us to another question. Why does credit generally have the appearance of a "means of adaptation" of capitalism? No matter what the relation or form in which this "adaptation" is represented by certain people, it can obviously consist only of the power to suppress one of the several antagonistic relations of capitalist economy, that is, of the power to suppress or weaken one of these contradictions, and allow liberty of movement, at one point or another, to the otherwise fettered productive forces. In fact, it is precisely credit that aggravates these contradictions to the highest degree. It aggravates the antagonism between the mode of production and the mode of exchange by stretching production to the limit and at the same time paralyzing exchange at the smallest pretext. It aggravates the antagonism between the mode of production and the mode of appropriation by separating production from ownership, that is, by transforming the capital employed in production into "social" capital and at the same time transforming a part of the profit, in the form of interest on capital, into a simple title of ownership. It aggravates the antagonism existing between the property relations (ownership) and the relations of production by putting into a small number of hands immense productive forces and expropriating a large number of small capitalists. Lastly, it aggravates the antagonism existing between the social character of production and private capitalist ownership by rendering necessary the intervention of the State in production.
In short, credit reproduces all the fundamental antagonisms of the capitalist world. It accentuates them. It precipitates their development and thus pushes the capitalist world forward to its own destruction. The prime act of capitalist adaptation, as far as credit is concerned, should really consist in breaking and suppressing credit. In fact, credit is far from being a means of capitalist adaptation. It is, on the contrary, a means of destruction of the most extreme revolutionary significance. Has not this revolutionary character of credit actually inspired plans of "Socialist" reform? As such, it has had some distinguished proponents, some of whom (Isaac Pereira in France), were, as Marx put it, half prophets, half rogues.
Just as fragile is the second "means of adaptation": employers' organizations. According to Bernstein, such organizations will put an end to anarchy of production and do away with crises through their regulation of production. The multiple repercussions of the development of cartels and trusts have not been considered too carefully up to now. But they represent a problem that can only be solved with the aid of Marxist theory.
One thing is certain. We could speak of a damming up of capitalist anarchy through the agency of capitalist combines only in the measure that cartels, trusts, etc. became, even approximately, the dominant form of production. But such a possibility is excluded by the very nature of cartels. The final economic aim and result of combines is the following. Through the suppression of competition in a given branch of production, the distribution of the mass of profit realized on the market is influenced in such a manner that there is an increase of the share going to this branch of industry. Such organization of the field can increase the rate of profit in one branch of industry at the expense of another. That is precisely why it cannot be generalized, for when it is extended to all important branches of industry, this tendency suppresses its own influence.
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