Capital and Ideology: Chapter 13

In chapter 13 Piketty focuses on our current inequality regime he calls hypercapitalism and neo-proprietarian. According to Piketty, the neo-liberal movement to deregulate the financial markets, privatize public/government services and lower taxes on the wealthy directly led to this new inequality regime. Neo-proprietarian describes the resurgence of the importance of private property (did it ever leave?) and the commodification of knowledge and information. Hypercapitalism refers to the new billionaire class and the reverence we have for them as wealth creators.

In this inequality regime proprietary property becomes private property. Piketty claims that this commodification of knowledge is illegitimate because much of it was created on the foundation of government funded research and collective knowledge. Tied into this is the current myth of meritocracy where these billionaires are rich precisely because of legal and tax laws that sanction this commodification. The wealthy property owners essentially control the government through funding campaigns and owning the media makes any sort of democracy impossible. Another part of the current inequality regime is the obfuscation of financial data. Obscured financial data is always skewed to favor the rich.

I don’t see Piketty bringing up anything new here. Piketty sees the property regime as the main cause of inequality in our current state. I assume how this occurs will be the focus of the next part of the book. Ironically, I think Piketty has already disproven this argument precisely by the information he has laid out. The property regime will never be changed because they have all the power to control the political system. I think Piketty, up to this point, has done a good job at describing the history of inequality up to the present. So what? Piketty has hinted at his answer; inequality will be eliminated through more access to education and the political process. Piketty hasn’t shown how the history of inequality regimes have ‘evolved’. He takes inequality and capitalism as a given.

The force of historical change has been class struggle. Inequality is part of these struggles, but not the last word. Relationships between all people are determined by the dominant ideology. In a capitalist society the capitalist owns the modes of production and the workers forced to work. Capitalism IS the cause of inequality. More education, better policies etc. will not be an ultimate solution. Inequality will only be destroyed by destroying the system that it is built on. This point eludes Piketty. This may be reductionist, but up to this point Piketty’s book has just been another report on how shitty things are in our world. We hear about this nightmare everyday. At the outset Piketty dismisses Marxism and maintains the old tropes of the failure of communism. His solution was determined before his research project, even though he claimed the opposite. Capitalism is pure evil genius. We can have so much detailed information about how miserable most of earth’s population is and even know why, but we literally cannot see the cause. So we’ll see where Piketty goes after his fairly exhaustive history of inequality. I think we all have a pretty good idea where. Thoughts

Piketty: Chapter 6

Chapter 6 is basically a summary of various slave inequality regimes which Piketty calls “extreme inequality”. Piketty sticks with pure description here, but makes some comments on the morality of slavery. Calling it “extreme inequality” being one. I’ll highlight a few of those attempts below as well as describe some of the more extreme examples of these regimes.

The most striking examples of the slavery inequality regimes are Britain and France both of which were part of the African slave trade that involved the kidnapping and selling of 20 million human beings from 1500-1900. Piketty brazenly states that this caused a “significant demographic drain on Sub Saharan Africa” (p. 205). This statement might be one of his attempts at addressing the moral context here. Britain began to abolish slavery with British Slavery Abolition Act of 1843. As expected and appalling at the same time, a major concern about this act was how to compensate slave owners for their liberated property. In total, slave owners were paid what today would be 120 billion euros. Of course the working class paid for this debt through raised taxes. These slave owners were already rich in property and political power and these payouts added to these family fortunes that still exist today as finance and real estate assets. Liberated slaves were forced to sign long-term work contracts in order to assist in paying for the slave owner indemnity.

A similar abolition scheme played out in France. The most egregious being in Haiti. Most of France’s slaves were on their island colonies and when the slave population reached a certain majority France feared revolts. Haiti revolted and claimed its independence in name only. France recognized Haiti as independent in 1825 only because slave owners would be paid, in today’s numbers, 40 billion euros for the loss of their property. Of course, Haiti had to foot the bill which led to over 100 years of debt payments to France. Haiti became a debt slave to France which led to impoverishment up to the present day. Haiti paid 5% of its GDP every year to cover the payments to slave owners. Piketty makes a good point in stating that public debt goes on and is inherited by subsequent generations. Public debt doesn’t go away.

Similar to Britain, emancipated slaves in France had to sign long term work agreements in order to pay their slaveholders for their freedom. Former slaves would work at least 10 years and their wages were garnished for these payments. Since free workers couldn’t be beaten, they were punished by longer work contracts if their performance was not what employers wanted. The legal system ensured these contracts and punishments the former slaves endured. Piketty emphasizes that this type regime is “hard on workers” (p. 224)!

The flow of events laid out in this chapter about slavery is incredible. Human beings were violently taken from their family and homeland and transported to other countries where humans with a different skin color bought them and forced them to work to death under constant threat of beatings. The wealth of the West was built by unpaid slave labor. When finally slaves were emancipated they were forced to work to pay their former owners for the property, the slaves, that they had lost. From slave to wage slave. The whole story is mind boggling.

Piketty does not discuss why slavery was abolished. I believe it became more profitable and easier for rich landowners to pay low wages than buying and dealing with slaves. Wages could be ridiculously low because former slaves had to work by law and to survive. They had no bargaining power. The landowners also retrieved a large amount of what they paid in wages through the indemnity payments to them. This system also instilled the myth of workers having freedom to make choices related to their lives. It was genius and insidious. Slaves, and everyone else who was not rich, were now free to work. In reality, they are forced to sell their labor for capitalist profit in order to just survive.

Personally, I was taken aback by this chapter. A friend went to Ghana for the Year of Return to commemorate the 400 years since the first slaves were brought to what would be the United States. The pictures he brought back, his stories of the squalor these humans endured and his continued reverence to the ancestors has forced me to really reflect on the unspeakable nightmare the slave trade was. I can no longer casually read about or discuss slavery. I feel like I have to let the agony sink in order for me to really come to some small understanding of the human-made slave experience and the subsequent trauma passed on through generations. Even as I write this I think I might not be saying the ‘right thing’. I’m a racist and for whatever reason I’m aware of it. I’ve found that it’s my place to shut up and listen, but also engage in rigorous critique of any Anglo commentary or history of slavery, much like we are doing here.

In reading this chapter I kept returning to the introduction in order to figure out what Piketty was trying to say here. I’m still confused as to what his objective is in this book. If I understand correctly, Piketty is presenting a study of inequality in history and how each society has explained said equality. Piketty’s definition of ideology is more of an interpretive device to create narratives. Accordingly, his assumption is that history has just rolled along and we can use ideology to interpret it. I’m not sure what ideology Piketty thinks he is using and I don’t think he is either. Obviously it concerns creating a narrative of how societies have explained inequality and concluding that we need to look critically at how we currently explain equality in our society and then come up with better ways of addressing it. Is this correct?

In focusing only on inequality Piketty ignores the actual causes of inequality. He arbitrarily defines equality as access to education and property and power. He concludes that history has moved via the vacillating ways societies have explained away inequality. Coming from an Allthuserian conception of ideology, Piketty’s stance is useless. Piketty is constantly making ideological assumptions and statements. His intentional focus on inequality is ideological. His assumption that equality is access to education and power is capitalist ideology. His statement that inequality is not economic, but ideological is fraught with ideological assumptions. Clearly, Piketty is working within a capitalist ideological framework. He intentionally dismisses Marx and mentions the failure of communism which I find to be lazy scholarship or just towing the party line. Class struggle has no place in Piketty’s study despite the fact that any cursory look at inequality throughout history can be explained by class struggle! It’s not who controls what for Piketty, it’s the slippery idea of inequality. According to Piketty, capitalism won and we just need to make it less hyper and more equal.