Corporatist realities and conservative fantasies: “What’s Left?” February 2009, MRR #309

The debate on the Left, in the days when the Soviet Union still existed, frequently boiled down to those who championed socialism in the abstract versus those who defended “real existing socialism.” Abstract socialism refers to any type of socialism that, with brief revolutionary exceptions, hasn’t actually been tried out in the real world. Anarchism, left communism, syndicalism, council communism, De Leonism, autonomism, democratic socialism, utopian socialism, communalism, libertarian socialism—plus the scores of variations within each category—comprise the broad, inchoate field of socialism in the abstract. Real existing socialism is much simpler, consisting of a few shopworn social democratic and a half dozen Leninist regimes, some of which continue to function to this day.

A similar distinction can be drawn between political systems in the abstract and real existing political systems. Political science, as it is taught in most universities, is an example of politics in the abstract, and academe is the perfect setting within which to discuss democracy, libertarianism, capitalism, socialism, fascism, communism, anarchism; all sorts of abstract political systems that have rarely, if ever, existed. In reality, all present-day political systems are but variations on a single theme, that theme being the corporate state.

This is an incidental insight that can be gleaned from a reading of The Contours of American History by William Appleman Williams. An inspiration for the New Left in the 1960s, Williams was a “hard revisionist” who argued that expansion and empire were essential to the American economy, and that the US was primarily responsible for the Cold War. He wasn’t so much a Marxist as he was an anti-imperialist populist, along the lines of Mark Twain, who found common cause with old school, isolationist conservatives like Herbert Hoover, and who valued American regionalism and small community.

In Contours, Williams contended that the worldwide crisis that began with the first world war, and culminated in the second, gave rise to a near universal form of governance that can be called the corporate state. Strictly speaking, the corporate state is a creature of Italian fascism, of Ugo Spirito, Sergio Panunzio and Giovanni Gentile, who posited that an authoritarian ruling party could use the state to mediate between various powerful social interests, most notably the bourgeoisie and the proletariat, by incorporating them into social governance. The triumph of Bolshevism in Russia after 1917 produced a corporate state skewed to the left, with the working class allied with, and disciplined by a totalitarian Soviet state. Mussolini’s march on Rome in 1922 established a corporate state tilted to the right, with the capitalist class allied with, and disciplined by an authoritarian Fascist state.

Bolshevism and fascism vied for influence in the United States after 1929, when social conditions during the Great Depression proved ripe for radical organizing. The labor movement in general, and the Communist Party in particular, were gaining strength and social revolution, not to mention socialism, was a distinct possibility. Roosevelt’s response, in the form of the New Deal, created a corporate state in which a democratic state regulated capital, the full partner, and labor, the junior partner, in what amounted to a tripartite governance of American society. Very little effort is required to fit most countries today into one or another corporatist model.

The clear relevance of the corporate state idea in explaining much of current nationalist politics comes at a time when theories of corporatism have lost favor among academics. The multiplication of powers and interests in a society that makes it unmanageable by any corporate state; the explosion of racial, ethnic, even regional forms of tribalism; the spread of neo-liberal, free trade economics around the world through rampant globalization; the weakening of the nation-state as a viable unit in the world capitalist economy; these have all been cited to mitigate the importance of the corporate state as a way to understand how much of the world is run on the level of nation-states. The political realities of the corporate state, however, have not evaporated simply because political science professors are no longer interested in talking about them.

Take the 11/27/08 column, “Socialist Republic,” by paleoconservative Patrick Buchanan. After noting that both George Bush and Barack Obama have learned the same interventionist lessons from studying the Great Depression, Buchanan sarcastically comments that “We are all Keynesians now.”

Consider what we are about to do. Bush in 2008 spent 21 percent of GDP. States, counties and cities spent another 12 percent. Thus, one third of GDP is spent by government at all levels. Obama and Co. propose to raise that by another 10 percent of GDP. We may soon be north of 40 percent of gross domestic product controlled and spent by government.

That is Eurosocialism.

Actually, it’s good, old American corporatism.

Another paleoconservative, Paul Edward Gottfried, points out in his book, Conservatism in America: Making Sense of the American Right, that American conservatives have failed to tackle, let alone defeat the behemoth of the modern administrative state. That’s because conservative Republicans, no less than their liberal Democratic counterparts, accept as given the corporatist fundamentals of the New Deal (Social Security, unemployment insurance, government intervention in the economy) as well as certain additions made to it by Johnson’s Great Society (Medicare, food stamps, civil rights legislation). Not even the doyen of small-government conservative Republicanism, Ronald Reagan, managed to dent America’s administrative state. Indeed, the Federal government and the deficits accrued by it grew precipitously during the Reagan years.

The corporate state is real existing politics, whereas paleoconservatism is politics in the abstract. We’re likely to witness intense internecine conflict on the Right in the next few years as conservatives try to figure out “what went wrong” in 2008. Few will defend the real existing big government conservatism of George Bush as they fight over the mantle of small-government Goldwater/Reagan conservatism in the abstract. Yet, much as anarchism went down to defeat time and again against Leninist communism in the real world, I suspect that, in practice, small government paleoconservatism will be routed by big government conservatism every time. Well, perhaps not in the platform of the Republican party, but certainly in actual governance.

The administrative state, the corporate state, is inescapable. Nor would the capitalist class wish to get rid of it, even if they could. I once joked that, if the Libertarian party’s dream was realized tomorrow, and the state was abolished in order to achieve a pure laissez-faire capitalism, the corporations would purchase and install a new government the day after. Capitalists realize the need for a strong, regulatory state, if for no other reason than to bail them out when they fuck up. Then there’s the military, handy for enforcing capital’s interests overseas, and the police, equally useful in quelling riot, rebellion and revolution at home. Labor’s participation in the corporate state, as well as the social programs engendered by that participation, might be up for question or attack. America’s corporate state is not.

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