Posts Tagged ‘University of California’

The Capitalist Nature of Nazism

November 17, 2018

Every now and then a Conservative defender of capitalism tries to argue that Nazism and Fascism were forms of Socialism. Jonah Goldberg tried it a few years ago in his book, Liberal Fascism, a Tory MP stood up in the European parliament a couple of weeks ago and made the same accusation, though he had to take it back and apologise. And Private Eye in recent weeks have also published a couple of letters from readers making the same claims.

Fascism did have Socialistic elements. Mussolini was originally a radical Socialist, who broke with the rest of the Italian Socialist movement in supporting Italy joining the First World War. The Fascist party was originally extremely left-wing in its programme of 1919. Its corporativism was not only based on the ideas of the right-wing Italian Nationalists, but also from part of the syndicalist movement, which moved away from demanding absolute workers’ control to advocating an industrial structure which included both capitalists and workers in a series of corporations set up to govern each industry, or sector of the economy. The Nazis also included socialist elements in their 1922 programme, such as the nationalization of firms and profit-sharing in industry, as well as the break-up of the department stores.

However, the Fascists and Nazis came to power through their alliance with business and the aristocracy. Both the Italian Fascists and Nazis in Germany were hostile to socialism, communism and workers’ trade unions. In Italy, they also allied with the Vatican to destroy the Populists, a party set up to represent Italian Roman Catholics against persecution by the Liberal state, which was distrusted by the Papacy because they considered it too radical. Once in power, the socialist elements of these parties’ programmes was soon jettisoned. Hitler declared that he had no intention of nationalizing businesses, unless they were badly run. He had the SA massacred in the Night of the Long Knives because this part of the Nazi party did take the socialist elements of party programme seriously. The word ‘socialist’ had only been included in the name of the Nazi party – the National Socialist German Workers’ Party – against bitter opposition by some of its founders. Hitler stated that he did so in order to steal potential recruits from the real left-wing parties. Furthermore, the Nationalist intellectuals who first advocated a right-wing ‘socialist’ order in the 1920s stated that they did not refer to the nationalization of industry, but to the socialization of people to serve the state. And just before the Nazi seizure of power, Hitler made a speech to German industry stating that Nazism would protect private industry.

Robert A. Brady, an associate professor of economics at the University of California, made the capitalist nature of the Nazi regime very clear in his The Spirit and Structure of German Fascism (London: Victor Gollancz 1937). The book is a thorough description of German society under the Nazis – its ideology, social structure, the coordination of science, industry and agriculture, the instruments of power and the various party organisations used to recruit and control the masses. Brady states

The regime which the Nazis proceeded to establish is fairly described, by the very nature of the major interest which sponsored it, as a dictatorship of monopoly capitalism. Its “fascism” is that of business enterprise organized on a monopoly basis, and in full command of all the military, police, legal and propaganda power of the state. (p. 33, emphasis in the original). He lays out the essential capitalist nature of the Nazi state as follows on pages 41-2.

1. Productive Property and natural resources are to be privately owned; freedom of contract is guaranteed (excepting to “aliens” and the peasants under the Inheritance laws).
2. Individual initiative, the business entrepreneur, conduct of business for profit (“reward for services performed”), and ownership (individual or stockholder) control are basic.
3. Business men are to be free, if “responsible” (“self-government in business”), to fix by agreement prices, production totals and quotas, marketing areas, and the conditions and terms of purchase and sale.
4. Stock and commodity exchanges, commission houses, brokers, and speculative transactions are inevitable and necessary for the conduct of “organic business.” (Business as usual.)
5. Heavy industries, particularly those catering to the military and foreign trade, are encouraged; large-scale units, unless “uneconomical” are to be kept intact; co-operatives are to be broken up.
6. The social class structure of society is sanctified, strengthened, made semi-hereditary, and hardened into caste lines
(Standestaat, class state); the “Middle Class” are the Myrmidons of the Elite (Fuhrerstaat, leader state) and, as such, the backbone of the state.
7. Employers have practically complete control over workmen in regard to wages, hours, and working conditions. They must “take care” of their workmen-i.e. see that they are fed and do not grumble.
8. Collective bargaining is completely abolished; strikes are illegal; trade unions are forbidden; requests for wage increases are
lese majeste.
9. Control is completely from on top; there is and can be no such thing as control or discussion of policies from below; the “leaders” decide all things as they see fit; each holds appointed office for indefinite periods at the will of his superior.
10. The National Socialist Party and the German State are one and inseparable, as spirit and body. Legislative, executive, and judicial authorities are fused together. The central government controls all local government and all activities in all their details.
11. Civil and military are fused together; as in the military there can be no freedom of speech, of assembly, of writing, of acting, of “thoughts.” “Anyone may grumble or criticize the government who is not afraid to go to a concentration camp.” (Goebbels).
12. Germany must be made self-sufficient at all costs.
(Autarkie).
13. Non-Germans cannot be citizens; as a corollary, all Germans residing outside Germany either belong or owe allegiance to the Third Reich.
14 Communism (Bolshevism, Marxism) is the major enemy. There can be no such thing as equality of rights, opportunities, or income for classes, races, or sexes. The “broad masses” are fools and must be duped and led to meet the purposes of the elite
(Herrenstaat). Class war is the major crime; material rewards for the rank and file sheer folly.
15. All sciences and “culture” must be co-ordinated and made to serve the purposes of the “leader,” “total,” “corporate” “master”
(Herren)state. propaganda is the method. Propaganda knows neither right nor wrong, neither truth nor falsehood, but only what it wants.

In fact, business autonomy was severely limited by the imposition of the apparatus of state planning as Nazi Germany became a centrally planned economy similar to the Soviet Union, though in the case of Germany and Fascist Italy the economy was still very definitely capitalist private industry. Brady also goes on to discuss in his book how the Nazis celebrated and lauded the businessman as biologically superior through their social Darwinist ideology, and made sure that the leaders of industry, whether state-owned or private, were all drawn from the private sector.

Nazi rhetoric was anti-capitalist, but by this they meant free trade, which they identified with the Jews, just as they claimed the Jews were behind Socialism, Communism, the trade unions and other left-wing movements. They also borrowed some elements from Communism. Fellow Germans were ‘national comrades’, rather like the Marxist use of the term ‘comrade’ to describe a fellow Communist.

However, it is clear from this that Nazism was deeply Conservative and capitalist in its economic and social policies, and bitterly anti-socialist. It had socialist elements, but they were not taken seriously and only ever used as propaganda against the genuinely socialist parties and organisations. Any description of the Nazis as really socialist is utterly false and a lie, a rhetorical attempt to discredit contemporary socialism through guilt by association, and must be seen as such.

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The Corporate Origins of Fascism and Unemployment

February 21, 2015

Structure Nazism

Yesterday I came across a copy of Robert Brady’s The Spirit and Structure of German Fascism, published by Victor Gollancz in 1937. Brady was the associate professor of economics at the University of California. His book argued, as the foreword by Harold Laski says

that Fascism is nothing but monopoly-capitalism imposing its will on those masses on those masses whom it has deliberately transformed into its slaves. It is fundamental to its understanding that all the organs of working-class defence are destroyed; it is fundamental to its understanding, also, that society has been merged into a state the outstanding characteristics of which is the imposition of its will by coercion. There is no social revolution: the ownership of the means of production remain in private hands. There has been a political revolution in the sense that those organs through which, prior to 1933, criticism of the social order might be expressed, have been ruthlessly destroyed. What replaces them is essentially a partnership between monopoly-capitalism and the Nazi Party in which that supreme coercive power which is of the state’s essence is used to compel obedience to the new system.

This view of the Nazi state has been rejected by historians, as big business largely only started funding the Nazi party quite late, and always maintained some degree of freedom after they were absorbed into the Nazi system of controls. Despite this, Brady presents an impressive argument on how far the development of monopoly-capitalism – the emergence of vast industrial cartels and industries dominated by only single or at most, two companies paralleled and prepared for the emergence of the Nazi state.

Brady was also alarmed at the prospect of Fascism taking power in other nations, including America. The very last chapter, ‘The Looming Shadow of Fascism’, contained a number of quotations, some from American Fascist ideologues, arguing for certain aspects of Fascism. It includes this quote on using unemployment to control the masses by an economist.

“The next question is, How scarce do jobs have to be? The answer is, just scarce enough so that labourers are not likely to get uppish, make unexpected demands, and get away with them. Just scarce enough, in other words, so that wages are definitely under the control of the employing class, at least so far as abrupt fluctuations are concerned. And under what circumstances can the labouring class be depended upon to sit tight, lick the hand that feeds them, and make no unexpected demands? The answer is when they are all strictly up against it, with just barely enough wages to make ends meet – almost, and distress staring them in the face if they should lose their jobs. And this condition can obtain only when there is a reserve army of unemployed sufficient to keep those who do have jobs in abject fear of losing them” (Finney, “Unemployment, An Essay in Social Control,’ Journal of Social Forces, September 1926.)

As Guy Debord’s Cat has demonstrated on his blog, this is exactly the argument advanced by von Hayek and the Chicago School. They wanted a constant unemployment rate of 6 per cent to keep wages down. Von Hayek was Thatcher’s favourite economist, while Milton Friedman, another member of the school, went down to Pinochet’s Chile to observer for himself how well that Fascist caudillo was putting his theories into practice. And it’s a policy that’s being pursued even today by Thatcher’s successors, Cameron, Clegg and Osborne.