University of Wisconsin-Eau Claire


"Socialist Perspectives on the Iraq War, Part Two"

April 15, 2003 Iraq War Teach-in Conducted by Eau Claire Staff and Faculty for Peace and Justice



"War is the Continuation of Business by Other Means"


Stacy Thompson




    My aim, here, is to take the fundamentals of socialism that Bob has been discussing and build on them.  Specifically, I want to talk about how the current U.S. business and government’s aims are entirely in line with what we might expect from the U.S.’s tiny capitalist ruling class – quite literally a plutocracy – composed of government and business interests indistinguishable from one another.  As Bob has explained, capitalism depends, for its continuation, upon the exploitation of labor and the consequent production of surplus value.  But the problem, for capitalists, is that cheap labor eventually – perhaps inevitably -- becomes organized and ceases to be so cheap.  After a time, workers begin to demand a living wage, health care, and other basic necessities.  In the best of cases, laws are also drafted to protect workers from a host of dangers on the job.  But the capitalist class doesn’t welcome these laws because they make labor more expensive.  Although I am speaking in very broad, simple terms, my point is that the logic of capitalism demands the cheapest yet most productive labor possible and, therefore, U.S. capital simultaneously chases cheap labor across the globe and tries to drive the price of labor down at home.


    For example, in August of 1981, air traffic controllers went on strike in an effort to improve their working conditions – they were especially concerned about stress on the job, wages, retirement benefits, and hours.  President Reagan intervened, announcing that it was unlawful for the workers to strike and firing them all.  Throughout the 1980s, the Reagan administration weakened labor unions, cut social spending on the poorest Americans, and reduced tax rates for the wealthiest Americans.  These domestic policies accompanied the well-documented, if often clandestine or at least behind-the-scenes, military intervention of the U.S. in the politics and economics of Latin America.  According to David North, writing for the World Socialist Web Site, the domestic and international policies of the 80s resulted in two major developments: “within the United States the living standards of the working class either stagnated or declined; [and] within the so-called ‘Third World’ there occurred a horrifying deterioration in the conditions of hundreds of millions of people.”  The ruling class and the wealthiest sections of the upper-middle class” in the U.S. reaped enormous economic gains (North).  North goes on to explain that capitalism can be understood as a type of zero-sum game:  in his words, “The American ruling elite is hardly unaware of the relationship between its own wealth and the exploitation . . . of the great mass of the world’s population.”  He adds that in the 1990s, the “economic stability of American capitalism and, with it, the vast fortunes accumulated by its ruling elite in the course of the speculative boom on Wall Street became dependent . . . [on] depressed wage levels in the United States and the continuing supply from overseas of cheap raw materials (especially oil) and low cost labor” (North).  North’s comment that the raw materials are “cheap” simply means that U.S. oil producers were exploiting the workers who actually extracted the oil at a tremendously profitable rate.


    This radically abbreviated history of the past two decades brings us to the bursting of the most recent economic bubble in the late 90s.  North notes that there has been a “protracted depression in profit levels in the basic manufacturing industries” in the U.S.  Consequently, [e]xecutives, lacking any confidence in the long-term growth in the real value of the assets for which they are supposedly responsible, devote themselves entirely to their own short-term self-enrichment.”  In other words, the executives at Enron and Worldcom read the writing on the wall and tried to take the money and run before the bubble burst.  The World Socialist Web Site’s Editorial Board reminds us that “two million workers have lost their jobs since Bush took office, nearly half a million of them in the last two months alone.”  
It is at this moment that we might consider Bertolt Brecht’s famous dictum, “war is the continuation of business by other means.”  As the Red Collective – a Marxist group that publishes the Red Critique – comments, “[t]he economic and financial weakness of the U.S. exposed by the collapse of the stock market bubble and corporate corruption scandals is ensuring that American military hegemony and wars of effective annexation become increasingly integral to global capitalism in the coming period” (Imperialism Now).  They add that “[u]sing warfare when capitalist ‘democracy’ fails to serve the interest of profit is, as Lenin explains, integral to capitalism in its monopoly phase in which giant transnational corporations grown increasingly desperate for greater profits compete for (re)division of the world market and for economic territory.”  In short, “[I]mperialist wars are not an anomaly but a necessity under capitalism,” and the war in Iraq is exactly such a war.


    In other words, the war with Iraq is a calculated effort to maintain the exploitation necessary to keep the capitalist economy of the U.S. functioning, an economy in which the annual income of the richest fourteen thousand families is greater than the annual income of the poorest twenty million families.  To maintain the incredible wealth of that 5% of the population – those 14,000 families – the U.S. desperately needs cheap labor, which is what the killing of at least several thousand Iraqis is really supposed to accomplish.  But what is the connection between oil and labor?  I would like to read the last four paragraphs from the Red Collective’s article, “Oil and War,” which explains this connection clearly:


    But objects—whether essential natural resources such as oil and water or manufactured commodities—do not produce wealth (and yield political power). Labor does. While nature provides a source of use-values [objects that fulfill some need], it is labor-power which turns them into social wealth [objects that represent a certain amount of human labor as their value].  Thus, in the first instance, without the labor of thousands of workers to build the machines that locate, drill, ship and process the oil, it would remain an undiscovered and unused substance, sitting idle in the ground. It is human labor-power that enables oil to become a resource of production and, under capitalism, it is control over exploited labor-power that turns oil, like all means of production, into a commodified source of private wealth.

    It is only through the agency of labor, in short, that capitalist wealth—whether from oil or any other object—is produced. By equating oil with wealth, the dominant commentaries on the war from both the right and the left erase the issue of the exploitation of labor in the production of wealth and thus obscure the fact that the fundamental issue of war on Iraq is not simply about control over oil and oil profits: it is about gaining control over the world supply of surplus labor. By controlling the world's oil resources, the U.S. will be in a position to control the rate of economic growth in such nations as China, India, and Pakistan—nations heavily dependent on oil from the Middle East and the major suppliers of cheap labor to transnational capital today—and thus effectively gain control of the rate at which the workers of the South can be exploited. It will gain control, in other words, over the relation between that part of the working day in which workers produce value equal to their wages and the part in which they are engaged in surplus labor: the part in which the worker works for free, producing the surplus value which is the source of profit and accumulation of capital.


    It is not a "thing"—"oil"—that determines the economic hegemony of capital and thus its political power, as evidenced by the fact that many of the nations in which the largest oil reserves sit are among the poorest nations in the world and have historically been subject to brutal colonial and neo-colonial occupation throughout their modern existence. The economic dominance of the rich imperialist states comes from their global command over the exploited labor-power—the surplus labor—of workers in all sectors of production, and the struggle for the Iraqi oil reserves is an attempt by the US to establish its decisive hegemony within this global system of exploitation.


    Oil, in short, is a social relation. It represents the exploitative relation of private ownership of the world's resources and productive forces in the hands of a few while the majority of the world is left in a subjugated state of dependence in which their ability to survive is determined by whether or not they can earn enough in wages to purchase the commodities their labor produces. The war on Iraq is about this relation. It is a war of the owners against the workers. ("Oil and War").


    In sum, U.S. corporate control of oil – and the social relations of exploitation involved in the production of oil – will grant the U.S. increased control over the labor of other nations.  And, as the 90s have demonstrated, the poorer and more desperate the people of those nations are, the cheaper their labor will be and the wealthier the U.S. corporations can become.  Oil isn’t the only commodity that the U.S. can produce through exploitative relations, though.  Naomi Klein, writing for The Nation, “[s]ome argue that it’s too simplistic to say this war is about oil.  They’re right.  It’s about oil, water, roads, trains, phones, ports and drugs.  And if this process isn’t halted, ‘free Iraq’ will be the most sold country on earth.”  However the Kellogg Brown & Root Services, which is owned by the Haliburton Company, for which Dick Cheney served as chairman until 2000, obtained a Pentagon contract for advice on rebuilding Iraq's oil fields after the war.  (In a side note, according to the Edward Epstein of The San Francisco Chronicle, “The Pentagon wouldn't discuss the exact size of the contract, nor how it was rewarded, saying the information is classified.”)  


    To return to Klein’s point, The Nation reports that “[t]he 4.8 million dollar management contract for the port in Umm Qasr has already gone to a US company, Stevedoring Services of America, and the airports are on the auction block.  The US Agency for International Development has invited US multinationals to bid on everything from rebuilding roads and bridges to printing textbooks.  Most of these contracts are for a year, but some have options that extend up to four.  How long before they meld into long-term contracts for privatized water services, transit systems, roads, schools and phones?  When does reconstruction turn into privatization in disguise?”  Klein point is clear: if U.S. corporations can keep everything in Iraq privatized – and it certainly looks as if the Bush administration will help them do exactly that -- as opposed to “allowing” the Iraqi people or the Iraqi state to own their own utilities, roads, oil, etc. – then U.S. corporations will basically own Iraq.  The “reconstruction” of Iraq alone has been valued at around $100 billion. And who will provide the wealth-creating labor for all of the new U.S.-owned businesses?  Iraqi workers.  In other words, U.S. corporations will do the owning and profiting, and Iraqis will do the work.  Based on Bush’s stance toward trade unions in the U.S., there is no reason to think that the workers of Iraq will make anything like a living wage for a long time to come.  They will have to fight for every concession that U.S. capital grants them in terms of wages, healthcare, hours, job safety, etc.


    I have two final points to make, one about Afghanistan and one about Syria.  First, I think that anyone who believes that the War in Iraq is not about economics should consider the post-9/11 War with Afghanistan.  In that case, too, the U.S. was supposedly fighting to liberate a nation from an oppressive regime and to spread democracy.  Yet, the fighting continues in Afghanistan, and the nation is at best marginally better off now than before the U.S. attack and possibly no better off at all.  Yet, Afghanistan has dropped out of the headlines.  What happened to the plan to “reconstruct” Afghanistan?  Why weren’t multinational corporations eagerly bidding on the right to take part in that reconstruction?  What happened to our fierce desire to spread democracy to that nation?  The only answer that makes any sense is that the U.S. administration no longer cares about Afghanistan, because the country produces little to no value in terms of the global economy.  Afghanistan has become an embarrassment to the U.S. government.  


    One of the demands of Marxism and Socialism is to historicize.  In other words, learn from the past so that you don’t have to repeat it and learn from the working class of the past and of other nations so that you know what needs to be done.  We seem to be living in a weirdly a-historical time.  We learn nothing from our past and, in fact, are encouraged to forget it as rapidly as possible.  To bring up Afghanistan at all is tantamount to being unpatriotic.  


    The last point that I want to make concerns Syria.  Sunday’s edition of The Observer reports: “The United States has pledged to tackle the Syrian-backed Hizbollah group in the next phase of its ‘war on terror’ in a move which could threaten military action against President Bashar Assad’s regime in Damascus.”  The Observer quotes Deputy Secretary of Defense Paul Wolfowitz, who says “There will have to be change in Syria, plainly” and adds that hawks “in and close to the Bush White House have prepared the ground for an attack on Syria, raising the specter of Hizbollah, of alleged Syrian plans to welcome refugees from Saddam Hussein’s regime, and of what the administration insists is Syrian support for Iraq during the war.”  The article continues, “Washington intelligence sources claim that weapons of mass destruction that Saddam was alleged to have possessed were shipped to Syria after inspectors were sent by the United Nations to find them.”  As I have indicated, the war in Iraq is not an aberration in American policy but a logical extension of it.  Perhaps the only difference between the current war in the Gulf and other recent U.S. imperialist wars is that each war seems to be built on flimsier excuses.  Thank you.      


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