Democrats, Republicans: Parties of Capital

“Occupy Wall Street”:

Capitalist Crisis Sparks Populist Protests

For Workers Revolution to Expropriate the Bourgeoisie!

OCTOBER 25—An amorphous group of protesters, ranging from student youth and jobless workers to veteran liberal activists, has now been camping out in Lower Manhattan’s Zuccotti Park under the banner of “Occupy Wall Street” (OWS) for over a month. With its rallies and marches in New York City drawing from a few hundred to over 10,000 people, OWS has tapped into widespread anger over corporate profit-gouging, mass unemployment and stark economic inequalities.

Similar occupations have spread to Boston, Chicago, Los Angeles and many other cities and towns across the country, even as police have repeatedly attacked and arrested large numbers of protesters. On October 15, hundreds of thousands turned out across Europe and elsewhere for solidarity demonstrations with OWS, which itself has drawn inspiration from the “Indignados” (indignant ones) in Spain and Greece. Today, hundreds of riot-equipped cops wielding flash grenades, tear gas and billy clubs surrounded the “Occupy Oakland” tent city at Frank Ogawa Plaza in the early morning hours. With helicopters hovering overhead shining a spotlight on the scene, the cops moved in, ripping apart the encampment and arresting more than 75 people. Drop all charges against the protesters, from Oakland to NYC!

The OWS protests have touched a real nerve in large sections of the population three years into the deep, ongoing economic crisis. Homeless shelters are filled to capacity. College students and recent graduates are choking under a mountain of debt, facing an increasingly bleak future. Many workers who have managed to hold on to their jobs have been made to swallow lower wages, with their benefits shredded and their pensions looted by the bosses and bankers. With the trade unions taking it on the chin, many workers have greeted the OWS protests as an outlet for their own anger. Meanwhile, the bulk of the capitalist ruling class has made out like bandits, with the Obama White House, following George W. Bush, showering hundreds of billions in bailouts onto the banks and auto companies. Fed up with government lies, foreign wars, the ban on marijuana and worsening unemployment, one protester in Phoenix said, “All the world’s problems run downhill, and I’m at the bottom.”

Many young occupiers are participating in their first political protest, and most enthusiastically embrace its democratic pretensions and “grassroots” origins, seeing the potential to do something, anything about what’s happening to themselves and so many others. While the OWS organizers pride themselves on not having a clear political agenda, affiliation or even a fixed set of demands, they do have a program: liberal reform of capitalism’s financial sector. Issuing patriotic appeals to this country’s purported democratic values, they raise slogans like: “We are the 99 percent,” “Tax the rich,” and “Banks got bailed out, we got sold out.” Like the populists of more than a century ago, their program amounts to seeking to elect a government that would defend the interests of the little man against the “robber barons” of Wall Street.

It is false that “99 percent” of the population share common interests. There is a fundamental class divide in society between the capitalists—the tiny group of families that own industry and the banks—and the working class, whose labor is the source of the capitalists’ profits. The working class is not just one more victim of capitalist austerity within the “99 percent.” It is the only force with the potential power and historic interest to sweep away the capitalist system and rebuild society based on a centralized, planned economy.

In our interventions in NYC and around the country, the Spartacist League and Spartacus Youth Clubs are fighting to win militants to the Marxist understanding that the capitalist state cannot be reformed to serve the interests of workers and the poor, but must be shattered through proletarian revolution. Ending poverty, oppression and imperialist war requires workers rule internationally, opening the road to a world socialist society. We Trotskyists are dedicated to the task of building a revolutionary workers party to organize and lead that fight. Our model is the Bolshevik Party of V.I. Lenin and Leon Trotsky, which led the workers to power in the October 1917 Russian Revolution.

Our Marxist outlook is diametrically opposed to the OWS program of liberal, bourgeois populism, which comes wrapped up in red, white and blue, as seen in the number of U.S. flags flying in Zuccotti Park. At a recent OWS General Assembly meeting, a Spartacist League spokesman drew opposition when he denounced the presence of U.S. imperialism’s banner, saying: “This is the flag that bombed Hiroshima and Nagasaki! This is the flag that bombed and attacked Vietnam! This is the flag that represents oppression to the people of the world!”

Whatever the claims of the OWS organizers to the contrary, the dominant politics of the protests point straight to support to the Democratic Party, which no less than the Republicans is a party of the capitalist exploiters. One Democratic official recently observed of the protests, “Sure, there’s been some crazy anarchy stuff, but overall, the Democrats like their message about Wall Street and accountability,” adding that “it overlaps with our own message.” In fact, with Obama channeling OWS grievances in his stump speeches, Democratic Party stalwarts like MoveOn.org are involved in organizing OWS actions for the purpose of bringing disenchanted voters back into the fold. Meanwhile, some Democratic Party strategists worry that signing on to the protests will alienate some of their financial backers. Key to mobilizing the workers in class struggle against the decaying capitalist order is the fight for their political independence from all bourgeois parties—Democrats, Republicans and Greens.

Protest organizers propound the “belief that the American dream will live again” (as one OWS Web site posting said) and argue that the government, which is the executive committee of the ruling class as a whole, should do something good like regulate banks. This is a dead end for youth looking for revolutionary answers. American democracy is the democracy of the capitalist class, whose rule is based on brutal exploitation of workers, murderous oppression of blacks and other minorities and imperialist marauding around the world. As the 1960s militant Malcolm X remarked, “I’m one of the 22 million black people who are the victims of Americanism. One of the 22 million black people who are the victims of democracy, nothing but disguised hypocrisy.... I don’t see any American dream; I see an American nightmare” (“The Ballot or the Bullet,” 3 April 1964).

American Populism and the Democrats

Appealing to the common man against the financiers has a long history in American bourgeois politics. The 1892 platform of the Populist Party strongly indicted the “Gilded Age”: “The fruits of the toil of millions are boldly stolen to build up colossal fortunes for a few unprecedented in the history of mankind.” The Populists did not desire to abolish but to moderate the despotism of the “few,” to curtail the powers and reduce the privileges of the magnates of industry and finance. The movement reached the peak of its influence in 1896, when the Democrats ostensibly adopted its aims and Populist leader William Jennings Bryan won the Democratic presidential nomination, losing in November to Republican William McKinley.

The Populists were initially a multiracial movement, encompassing poor white and black farmers as well as small businessmen. But the heroic efforts of its organizers in the South were defeated when the local ruling class launched a wave of racist demagogy and violence. Many Populist leaders, such as Tom Watson in Georgia, turned against impoverished blacks and openly embraced racism. Many did this to carve out a niche in the Southern Democratic Party, which ruled over the Jim Crow system of entrenched racial segregation through police-state terror supplemented by the KKK’s extralegal violence. On the other hand, the Populist movement also included people who would become key figures in the labor and socialist movements.

The Populist movement emerged in the period when the U.S. was preparing to enter the world stage as an imperialist power, one of a handful of advanced capitalist countries whose competition for spheres of exploitation around the world would lead to the devastation of two world wars and countless colonial wars. As Lenin described, imperialism is the highest stage of capitalism: the economy is dominated by monopolies, with the capital of the large banks combining with the capital of industrial corporations.

This crucial understanding is completely blurred by populist ideology. As we wrote in our 1997-98 series “Wall Street and the War Against Labor”:

“Central to the liberal populist outlook is a belief that the capitalist class is divided into two classes, so to speak: those directly involved in producing and marketing goods and services, and those whose incomes derive from financial dealings. The former are regarded as at least relatively progressive, while the latter are deemed outright reactionary....

“The common interests of all elements of the American capitalist class—whether Wall Street investment bankers, Midwestern manufacturers, Texas oilmen or California agribusinessmen—are qualitatively greater and more important than their differences. All want to maximize the exploitation of labor and to minimize the overhead costs of government social programs.”

—reprinted in the 2009 Spartacist pamphlet, Karl Marx Was Right: Capitalist Anarchy and the Immiseration of the Working Class

At the core of populist protest, yesterday and today, is the petty bourgeoisie, which is a heterogeneous and highly stratified social layer comprising, among others, students, professionals and small businessmen. Lacking social power and its own class perspective, the petty bourgeoisie is incapable of offering an alternative to capitalism. As the Trotskyist James Burnham wrote in the 1930s, during an earlier period of economic crisis and mass discontent, “The middle classes are seeking a way out of their impasse. But they have no possible way out of their own. And at last they must, in whole or in a division, face the ultimate choice: to line up behind one of the two basic classes and its program, to swing to the side of the bourgeoisie or the proletariat” (The People’s Front: The New Betrayal, 1937).

A case in point is Adbusters, the Canadian magazine that issued the original call for a Wall Street occupation. This “anti-corporate” outfit has received funds from the Tides Foundation—a clearinghouse for the Ford and Gates foundations. But Adbusters doesn’t just take money from fat cats; it also runs its own “grassroots capitalism”—the production of sneakers, which they hail as “ethical.” Ask the workers in Pakistan getting the pitiful local minimum wage as they produce these “no logo” kicks if it feels more humane to slave over hemp rather than nylon.

The capitalist rulers have unleashed their police thugs on the “occupy” protests, even though this movement does not hinder the functioning of the profit system. It is an altogether different matter when workers cut off the flow of profits through strikes and other labor actions. When auto workers occupied plants in Flint, Michigan, in 1936-37, winning recognition of the United Auto Workers, they were part of a militant wave of labor struggle that gave rise to the CIO industrial unions. Those struggles were pitched battles between the workers on one side and the cops, company thugs and capitalist courts and government on the other.

After decades of defeats for labor, most young activists view the working class as irrelevant to struggles for economic justice. Setting the stage for those defeats, the bureaucratic misleaders of the labor movement by and large abandoned the class-struggle methods that built the unions. In their role as the capitalists’ labor lieutenants, they tie workers to their class enemy by promoting the interests of U.S. imperialism and supporting the Democratic Party.

The occupation of the Wisconsin State Capitol earlier this year ended in defeat precisely because the union leadership refused to use labor’s strike weapon, instead diverting protest into a (failed) campaign to recall Republican politicians. The result is that the state’s public sector unions have been decimated. Facing a great deal of disillusion with President Obama, who is a Wall Street Democrat, a good section of the trade-union officialdom has endorsed the OWS protests, seeing in them a means of re-energizing liberal support for Obama in the 2012 elections. The same purpose drives pseudo-socialists like the International Socialist Organization and Workers World Party, whose hailing of the OWS protests is but the latest chapter in their history of reformist pressure politics.

The Fraud of Bourgeois Democracy

No protest movement will convince the capitalist ruling class and its government to change their stripes and begin acting in the interests of the “people.” This country’s “democracy” was founded on the enslavement of black Africans, and to this day black oppression remains a fundamental underpinning of the American capitalist system. The “American way” has meant the genocidal extermination of Native Americans, waves of deportations of immigrants, bloody battles with striking workers and a long list of savage wars the world over, most recently the invasions and occupations of Iraq and Afghanistan and this year’s bombing of Libya.

As opposed to the OWS organizers who endlessly speak about restoring democracy, Marxists understand that there is no “pure” democracy. As Lenin observed: “Even in the most democratic bourgeois state the oppressed people at every step encounter the crying contradiction between the formal equality proclaimed by the ‘democracy’ of the capitalists and the thousands of real limitations and subterfuges which turn the proletarians into wage-slaves” (The Proletarian Revolution and the Renegade Kautsky, 1918).

In a speech to the OWS crowd, liberal ideologue Naomi Klein hailed the 1999 anti-globalization protests for condemning corporations that were supposedly “becoming more powerful than governments,” saying that this was “damaging to our democracies.” The fact that capitalist governments the world over have been bailing out failing industries and banks during the current economic crisis exposes the fallacy that corporations have superceded the nation-state.

Klein sows illusions in a mythical golden age of “democratic” accountability. The reality is that for the capitalists, “democracy” serves as a veil to hide their class dictatorship, which they enforce through their state apparatus—armed forces, cops, courts and prisons. Cop brutality and the arrest of protesters are almost daily occurrences, giving a small taste of the terror daily meted out to ghetto and barrio residents. Yet the OWS organizers have continued to call on the “blue-collar police” to “join our conversation” and “speak of the crimes of your supervisors.”

Neither is the problem simply one of “police misconduct.” All cops, whatever their background and rank, are the attack dogs of the capitalist class. An SYC speaker stressed at a recent OWS General Assembly, “Cops are not workers. They beat strikers, kill black people and arrest protesters.”

Apostles of “Democratic” Counterrevolution

Liberal ideologue Naomi Klein and pseudo-Marxist academic Slavoj Zizek—leading lights at the OWS protests—like to rail against China as an affront to “democracy.” In this, they are providing ideological service to Wall Street.

The 1949 Chinese Revolution overthrew capitalist rule, liberating the country from imperialist subjugation and leading to massive advances for workers, peasants and deeply oppressed women. However, the peasant-based revolution was deformed from its inception, putting into power a bureaucratic nationalist regime akin to that of the Soviet Union after its degeneration under Stalin. Today, despite major inroads by both foreign and indigenous capitalists, the core elements of China’s economy remain collectivized. State ownership of the banking system has promoted massive economic growth in China, mainly through investment in infrastructure. This stands in stark contrast to the profit-driven world’s dominant capitalist economies, which have been mired in crisis. As Trotskyists, we stand for the unconditional military defense of China against imperialism and internal counterrevolution. At the same time, we fight for proletarian political revolution to replace the parasitic Stalinist bureaucracy with a regime of workers and peasants soviets (councils) committed to the fight for world socialist revolution.

The current protests against Wall Street are deeply stamped with the “death of communism” ideology that has been propounded by the bourgeoisie and its ideologues since the restoration of capitalist rule in the former Soviet Union in 1991-92. Zizek, who sometimes spouts “revolutionary” verbiage when it serves his “bad boy” image in academia, lectured OWS protesters about how “Communism failed absolutely.” The core of his politics was seen when he hailed Obama’s 2008 election as “a sign of hope in our otherwise dark times.”

A measure of the bourgeois politics that define the OWS protests is the invitation offered by one organizer to former Polish president Lech Walesa to speak at Zuccotti Park. Walesa was the principal leader of Solidarność, which originated in 1980 out of workers strikes in the Polish deformed workers state but rapidly adopted an openly counterrevolutionary program for the restoration of capitalist rule. This was the only “union” beloved by the likes of right-wing U.S. president Ronald Reagan and his British counterpart, Prime Minister Margaret Thatcher. With the backing of the U.S. and European imperialists, the pro-capitalist labor bureaucracies and the Catholic church, Solidarność became the principal force for capitalist counterrevolution in Poland. We denounced Solidarność at the time as a company union for the CIA, bankers and the Vatican.

The government led by Walesa that took power in 1989 dismantled Poland’s collectivized economy and implemented an economic “shock treatment” that destroyed the bulk of the social gains Poles had enjoyed under the deformed workers state—from virtually free health care to cheap, subsidized housing to pensions one could live on. In line with Catholic “family values,” the right to a safe and free abortion was abolished. Inviting Walesa to speak at Zuccotti Park was to invite a Wall Street stooge to…“Occupy Wall Street”!

Today the basic premises of authentic Marxism must be motivated against the false and prevalent misidentification of the collapse of Stalinism with the failure of communism. Against those who purvey “death of communism” and illusions in capitalist “reform,” we revolutionary Marxists tell the truth: the only road to eliminating economic scarcity is the fight for new October Revolutions. We have no illusions that this is an easy road. But the destructive anarchy of the capitalist mode of production will, if not overthrown, plunge all humanity into barbarism. The key task is the forging of a Leninist vanguard party, the necessary instrument for bringing revolutionary consciousness to the proletariat.