The Slow Death of Neoliberalism: Part 2

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The Slow Death of Neoliberalism Part 1.

This post focuses on the failings of neoliberal economic theory. Neoliberalism arises out of positivist philosophy, defined in Part 1. Positivism is the theory that the only true knowledge comes from the scientific process.

There are five main principles behind Positivism:

1. The logic of inquiry is the same across all sciences (both social and natural).

2. The goal of inquiry is to explain and predict, and thereby to discover necessary and sufficient conditions for any phenomenon.

3. Research should be empirically observable with human senses, and should use inductive logic to develop statements that can be tested.

4. Science is not the same as common sense, and researchers must be careful not to let common sense bias their research.

5. Science should be judged by logic, and should be as value-free as possible. The ultimate goal of science is to produce knowledge, regardless of politics, morals, values, etc.

Economists created a group of sayings which they put in their introductory textbooks and teach as laws and principles to their students at all levels. For example, N. Gregory Mankiw, economics professor at Harvard, starts his introductory economics textbook Principles of Macroeconomics with a list of ten Principles he claims almost all economists agree are true. Any thoughtful person reading this list will see that these ten statements are either tautological (you can’t do two things at once) or are mere rules of thumb. The idea that you could build a positivist science on this foundation is absurd. But Mankiw disagrees, and so does everyone who took Econ 101 and stopped, and especially so do the elites from our top schools.

It’s not surprising, then, that this version of economics is failing. It cannot perform the basic goal of a scientific theory, making accurate predictions. Economic models have failed and will continue to fail to predict disasters; and there isn’t much hope that they will ever be able to predict anything of interest.

In Part 1 I pointed out that the positivist program can’t be easily adapted to the social sciences. David Andolfatto of the St. Louis Fed agrees, and tells us what we can expect from economics:

But seriously, the delivery of precise time-dated forecasts of events is a mug’s game. If this is your goal, then you probably can’t beat theory-free statistical forecasting techniques. But this is not what economics is about. The goal, instead, is to develop theories that can be used to organize our thinking about various aspects of the way an economy functions. Most of these theories are “partial” in nature, designed to address a specific set of phenomena (there is no “grand unifying theory” so many theories coexist). These theories can also be used to make conditional forecasts: IF a set of circumstances hold, THEN a number of events are likely to follow. The models based on these theories can be used as laboratories to test and measure the effect, and desirability, of alternative hypothetical policy interventions (something not possible with purely statistical forecasting models).

This obvious straw man at the beginning of this quote is typical of the arrogant economist described by Marion Fourcade. But let’s see how well the economist business does at the weak test of effectiveness offered by Andolfatto.

For decades economists taught the Kuznets Curve which they said shows that as industrialization proceeds, economic inequality first rises and then falls.
Thomas Piketty takes up this theory in Capital In The Twenty-First Century, and extends the data forwards and backwards from the early 1950s. Here’s a graph of top decile income share from 1910 to 2010 from Wikipedia.

Looking at that graph through the time Kuznets wrote, the early 50s, it might be read to support that hypothesis. The sudden rise, starting under Reagan and continuing ever since, completely contradicts the hypothesis. That didn’t stop people from teaching it.

The Phillips Curve asserts that there is a connection between inflation and unemployment: as the unemployment rate drops, inflation increases. It’s one of Mankiw’s 10 principles; and it’s deeply embedded in the models used by the Fed to decide interest rates. It’s mostly wrong. Here’s a recent debunking from the Philadelphia Fed, concluding that the Phillips Curve might help forecast inflation in a weak economy, but does not work in an expanding economy.

The Wikipedia Page for Phillips Curve says that:

The original Phillips curve literature was not based on the unaided application of economic theory. Instead, it was based on empirical generalizations. After that, economists tried to develop theories that fit the data.

A 2008 paper, The History of the Phillips Curve: Consensus and Bifurcation, Economica (2008), P. 10, lays out the history in detail. Roughly speaking, it begins with the observation by William Phillips that in the UK there was a stable relation between the rate of wage growth and inflation over a substantial period of time, and deviations could be explained reasonably. This paper was picked up by Paul Samuelson and Robert Solow and turned into the earliest mathematical formula in 1958. Since then there have been a number of occasions where the Phillips Curve failed, and each time economists just grab some more of their existing tools and try to fix it or explain the failure, in each case after policy-makers have gone on as if it were right and forced bad results on the economy and especially the wages of workers.

Here’s a third example. Economists say that the reason wages are stagnant is that productivity is flat, as if there were a relation between wages and productivity. Anyone who looks at this chart and reads this article from the Economic Policy Institute will have a huge question about that.

And that isn’t just the right-wing. Plenty of centrist Democrats make the same argument. And by the way, what does this say about the central theory of free market economics that supply and demand for labor set prices?

As I say here and here, neoliberal economists used their ideology of free markets to influence policy and to change the entire way we think about society without having the slightest idea of the consequences of their meddling because their models aren’t designed to deal with changes in societies or economies. As my examples show, they just keep on regardless of the success or failure of their predictions, and politicians and rich people ignore the failings and continue to follow their foolish advice.

Neoliberal economics obviously fails to measure up to the standards of positivism. It can’t predict anything useful, and it barely is able to explain itself coherently. That’s a problem with positivism too. People are slowly, slowly coming to grips with these failures and the damage they have done. It’s adherents are dying off, and their replacements are into it for the money and the power. Stupid ideas never die, but maybe they will lose their influence.

Updated to correct link to EPI article and chart.

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The Slow Death of Neoliberalism: Part 1

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This is the first of a short series on my long-term project on neoliberalism. The questions I started with were 1. How did neoliberalism become the dominant discourse; 2. Was there an alternative; and 3. How can we move to some other form of discourse.

I started with the premise that the neoliberal project has two prongs, a theory of the person in society and an an economic theory.

The person in society is as a rational actor whose only important role is to get a job producing stuff which provides money to buy stuff based solely on a rational calculation of utility. The work part doesn’t apply to people with money. They just rationally concentrate on getting more money. People with no money and no job are subject to discipline by the carceral state. It doesn’t matter why they don’t have jobs. No work, no money, no freedom.

The economic theory is based on neoclassical economics, with its roots in 19th Century morality and the idea that everything can be stated mathematically. The morality is Jeremy Bentham’s utilitarianism, with a strong dose of Calvinism evidenced by the phrase “the lash of hunger”.

My project and my premise are based on reading books which broadly fall into three categories: theory (Foucault, the Frankfurt School, Kuhn, Mirowski), history (Arendt, Veblen, Polanyi), and economics, (Mankiw’s text, Samuelson and Nordhaus’ text, Jevons, Piketty). The plan was that by placing neoliberalism in a broader context, I could get some idea of how it took hold and what were plausible alternatives.

This post discusses theoretical issues. Neoliberalism is a positivist theory.

Positivism is the view that the only authentic knowledge is scientific knowledge, and that such knowledge can only come from positive affirmation of theories through strict scientific method (techniques for investigating phenomena based on gathering observable, empirical and measurable evidence, subject to specific principles of reasoning). The doctrine was developed in the mid-19th Century by the French sociologist and philospher Auguste Comte (1798 – 1857).

The scientific method is a good way to understand physical phenomena. The key step is eliminating all aspects of the object of study that cannot be measured and accounted for. If you want to know the charge of an electron for some reason, there’s an old experiment for that. In this experiment, that includes measuring the viscosity of air, but it also includes several assumptions that may or may not be accurate; one is that the droplets of oil are spherical.

In the double slit experiment you fire photons at two slits and get interference bands. Some of the photons hit on one of those bands, and others hit others. We don’t know exactly the route that they take between the photon gun and the target, and we can’t predict which band the particle will hit. There is only statistical prediction. So, there are limits to what we can know in the positivist sense. That’s true of math too for other reasons; see Godel’s Theorems.

One difficulty with positivism is what constitutes a proof in non-physical sciences. Obviously we can’t separate things analogously to the way we isolate photons. And we don’t have a way to repeat experiments and we can’t be sure we understand all the relevant considerations or their magnitude at any point in time, and anyway, people change, societies change and context is controlling.

Besides positivism, neoliberalism is centered on utilitarianism. We can see this in the writings of the inventor of marginal utility, William Stanley Jevons, as I note here. We also see it in Pareto Efficiency. These ideas, and positivism generally, are very useful in rationalizing the production of goods and services.

According to the Frankfurt School the theory that positivism provides the only authentic truth is central to the Enlightenment. Ideas and theories that cannot be proved according to the requirements of positivism cannot be taken seriously. The drive to extreme positivism leads us to ignore concepts like love, social cooperation, justice, morals and all intellectual concepts because they cannot be measured and are inconsistent over time and across societies. As an example, Keynes says that “animal spirits” lead development and stock markets. How do we measure animal spirits? Positivism tells us to find a formula to replace those concepts. Eventually it leads us to focus all our energy and attention on production for profit because that is tangible.

Critical theory rejects another underlying assumption of positivism, the absolute separation of subject and object. In order to study something, it must be segregated from other things. When one person studies another, the investigator must treat the other person as an object. If the object changes, we have to assume that the changes are measurable and predictable. In the same way, when the ruler deals with the subject, the kings treat citizens as objects, and employers treat employees as objects.

To put this in our time, Facebook algorithms treat users as objects and the company sets out to draw a picture of the not-exactly-human user so as to exploit it for profit. Facebook also allows others to use its tools to exploit for profit or for other purposes.

Every society has a system for deciding what goods and services it will produce and a system for dividing up the goods and services it produces. These systems cannot be addressed easily in a positivist framework because there is no way to predict outcomes with any certainty, and because we don’t have a scientific way to assess the quality of the current system, let alone a new arrangement. For that reason, the Frankfurt School claims that positivism reinforces the status quo, and cements it for the benefit of the current group of elites.

The effect of this extreme positivism is to reduce or eliminate imagination by focusing people’s attention on the immediate present. The emphasis on work means that people have less time and energy to think about societal issues.

This all seems terribly arid. Or boring, your choice. But it describes our putrid politics. Lambert Strether analyzed the Sanders/Klobuchar vs. Graham/Cassidy debate at Naked Capitalism; I highly recommend it. Here’s Amy Klobuchar, fn omitted:

KLOBUCHAR: [Y]ou can have things available to you like treatment, right, but if it’s too expensive, is it really available to you? And if you see a Ferrari in a car lot, well, it’s available to you, but you can’t really buy it. And that is the problem if the prices skyrocket.

So it’s doing something immediately to stabilize these prices, but then in the long term making sure we can make health care more affordable. Bernie has one idea; I have some others. And we can talk about them later.

As Lambert Strether shows, Sanders can talk about both now, while Klobuchar can’t, and it’s because she can’t imagine that kind of change as a real possibility. She can’t formulate a radically different vision of society. And that’s the problem facing the whole Democratic Party and especially its last presidential candidate.

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The Dialectical Imagination by Martin Jay: Conclusion On Labor Day

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This series has been wonky, even for me. The Dialectical Imagination by Martin Jay is an eye-opening description of the creation of Critical Theory, a way of approaching the social sciences that is still important today, although the forces of formulaic empiricism are gathered against it. The insights of the scholars of the Frankfurt School were remarkably prescient, and are crucial today. They give a nice description of Homo Economicus in Dialectic of Enlightenment, p. 175, long before Friedman and Hayek began their push to create the new human. They were also right about the culture industry and the effect of mass culture. Michael Moore tells a version of this story in his movie Columbine.

But for me, the most important insight is the form that reason took during the Enlightenment. This is from an interview of Michel Foucault in 1978.

… I think that the Frankfurt School set problems that are still being worked on. Among others, the effects of power that are connected to a rationality that has been historically and geographically defined in the West, starting from the sixteenth century on. The West could never have attained the economic and cultural effects that are unique to it without the exercise of that specific form of rationality. Now, how are we to separate this rationality from the mechanisms, procedures, techniques, and effects of power that determine it, which we no longer accept and which we point to as the form of oppression typical of capitalist societies, and perhaps of socialist societies too? Couldn’t it be concluded that the promise of Aufklärung (Enlightenment], of attaining freedom through the exercise of reason, has been, on the contrary, overturned within the domain of Reason itself, that it is taking more and more space away from freedom?

The rationality Foucault is talking about here is the same one the Frankfurt School aimed at: the systematic logic of science and technology, focused by a drive for dominance over nature and over human beings. Our society is controlled by system of mechanisms, procedures, techniques and effects of power that focus that logic and allow it to dominate us. That project is far from complete, but we can see its outlines. The political system supports only one kind of life, a life focused on work. The solution to every problem is “Get a Job”. Schools are focused on jobs training, almost from the outset. Those without jobs are scorned and openly vilified, at least if they aren’t rich.

Businesses are focused on achieving dominance. The goal is monopoly and monopsony power, or at least oligopoly and oligopsony. They lobby for laws that free them from responsibility and give them the widest possible scope to control the lives of workers, and the freedom to screw the worker as it suits managers. They pay off courts and legislators to get their way. They demand trade conditions that permit them freedom at the expense of the rest of us. Those who best succeed at dominance get all the money, and corporations fight efforts to limit their income, even by disclosure.

Dominance entails a related submission. People readily allow the growth of dominance. We tell ourselves that our work is fulfilling, and that we are making a contribution, but just ask yourself how much of your work day is filled with mindless and stupid crap that shouldn’t be done at all. Most of us work for entities which are working towards dominance, and our own work is measured by how much we contribute to achieving dominance for the employer. Those not directly involved in establishing dominance are outsourced. That has led to a two-tier economy, in which people who can directly support the drive to dominance are made actual employees and rewarded, and those who don’t are pushed out into dead-end temp, contractor, adjunct or gig jobs.

A people who once fought and died for a fair share of the productive pie now accept flat wages, grotesque inequality of wealth and income, and slowly decaying prospects for our children. We carelessly threw away the protections our parents and grandparents won for us, 40 hour work weeks, paid vacations, fair taxation, and all those communal benefits from fairly priced colleges and tech training to decent mass transportation.

We all understand the reason for these losses. We just can’t afford this stuff. We can’t pay for essentially free college and technical training. If businesses have to pay fair wages, some foreign company will under-price them and put them out of business. If we tax the filthy rich, they’ll leave for the Cayman Islands and take their jobs with them. If we don’t put in 65 hour weeks, someone else will. We don’t have money for mass transit, so we sit on the road in heavy traffic. We give up our hours to traffic, our money for schooling, and our lives for a company that will dump us when it can.

All this is guided by the formal logic of capitalism, so we understand it. That’s the rationality Foucault and the Frankfurt School are talking about.

Each of these losses makes us less free. Every surrender to the formal logic of capitalism makes us less free. Every bit of information that Amazon and Facebook and Apple and Google and all the rest glom onto makes us less free, easier to manipulate. That’s the rationality of capitalism. That’s what comes of formal logic divorced from understanding and recognition of the wide variety of possible purposes. That’s what happens when the only thing that matters is dominance. That’s what happens when we submit to economic dominance.

The promise of the Enlightenment was that we could achieve freedom through reason. Seventy years ago the creators of Critical Theory told us that was wrong. Today we are learning how right they were.

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The Dialectical Imagination by Martin Jay: The Enlightenment

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Chapter 8 of The Dialectical Imagination by Martin Jay discusses Dialectic of The Enlightenment, written during WWII by Max Horkheimer and Theodore Adorno and published in 1947. I haven’t read the book, though thanks to commenter Neighbor6 I have a copy, so this discussion is all based on Jay’s description. Dialectic of The Enlightenment (my copy is titled Dialectic of Enlightenment, but I will use Jay’s) opens with this:

Enlightenment, understood in the widest sense as the advance of thought, has always aimed at liberating human beings from fear and installing them as masters. Yet the wholly enlightened earth is radiant with triumphant calamity. Enlightenment’s program was the disenchantment of the world.* It wanted to dispel myths, to overthrow fantasy with knowledge.

The footnote references Max Weber’s quote, which I found here:

The fate of our times is characterized by rationalization and intellectualization and, above all, by the disenchantment of the world. Precisely the ultimate and most sublime values have retreated from public life either into the transcendental realm of mystic life or into the brotherliness of direct and personal human relations. It is not accidental that our greatest art is intimate and not monumental.

I think that’s how most of us would characterize the Enlightenment, as closing the door on superstition and opening the door to scientific inquiry. The obvious dark side of this apparently good thing is that nature becomes an object for study and manipulation; and human beings who are part of nature become objects for study and manipulation as well. The point of scientific inquiry moved quickly from an effort to understand to an effort to dominate. Science was primarily directed at supporting the production of goods and services and war machines. Adorno wrote that if Marx had his way, the whole world would become a “giant workshop” P. 259. Philosophy also became an element of the support system for a society based on industrial production. Kant’s effort to generate a morality from first principles failed, but for decades, it provided a basis for the morality that supported the capitalist system. Then the full potential of the power to dominate became clear as Hitler and Stalin achieved total domination and pushed the world into a nightmarish war.

A second problem, beyond domination, is the reductionism of science. As Horkheimer put it, “the formula supplants the image;”. P. 270. All that does not serve the capitalist system, about humans, animals, resources, the atmosphere and the planet itself, all of that is meaningless and is ignored. That includes all those spiritual and communal feelings that hold people together in groups of all sizes. It also includes our fellow feelings with other creatures, our feelings of oneness with the natural world, our gratitude for the bounty of the world, our respect for the beauty and power of the world, all useless and meaningless.

Jay begins Chapter 8 with a quote from Max Horkheirmer

If by enlightenment and intellectual progress we mean the freeing of man from superstitious belief in evil forces, in demons and fairies, in blind fate—in short, the emancipation from fear—then denunciation of what is currently called reason is the greatest service reason can render. P. 253.

Given the results of the 20th Century, Horkheimer can easily be excused for taking this pessimistic view. In any event, the idea of domination of nature became the focal point of the work of the Frankfurt School after WWII as the scholars worked to understand its ramifications. In a way, that work replaced the goal of unifying theory and practice, a central goal at the beginning of the Institute for Social Research, as it became obvious that this was not feasible. It was the last break with Marxism.

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Jay doesn’t explain why the Frankfurt School’s effort to combine theory and praxis failed, and why the scholars of the Institute concluded that philosophy and what they called speculative thought cannot provide a way towards social revolution and the betterment of society, so I’ll take a shot. One of the things I see in Jay’s book is that the scholars of the Frankfurt School believed deeply in the openness of the future. Jay writes:

In fact, the Enlightenment, for all its claims to have surpassed mythopoeic confusion by the introduction of rational analysis, had itself fallen a victim to a new myth. This was one of the major themes of the Dialectic [of The Enlightenment]. At the root of the Enlightenment’s program of domination, Horkheimer and Adorno charged, was a secularized version of the religious belief that God controlled the world. As a result, the human subject confronted the natural object as an inferior, external other. At least primitive animism, for all its lack of self-consciousness, had expressed an awareness of the interpenetration of the two spheres. This was totally lost in Enlightenment thought, where the world was seen as composed of lifeless, fungible atoms: “Animism had spiritualized objects; industrialism objectified spirits.” P. 260.

The scholars of the Institute completely rejected the idea that the world is closed; they saw it as infinitely open, and driven by human action. The world is not a collection of mindless fungible lifeless atoms, operating under simple laws or under the control of God. Instead, its future is open, radically open, open in ways we can’t imagine. Any social theory that could predict the future would have at its root the assertion that the social world, the world we humans create, operates under a set of definitive and permanent rules, like a clock or a computer. If there is no God, if there are no computer program, then how is it possible to create a theory that would lead to a praxis that would lead to a better society?

On the other hand, once we imagine ourselves, us humans, as part of a boundless and terrible and beautiful universe, we open up a vast panorama for action. The goals of that action are set by humans, hopefully through a decent political process, hopefully guided by our best thinking and our best judgment. That process continues even as Republican thugs carry on their war on the entire world. And it’s worth noting that nature, far from being dominated by humans, is quite able to overwhelm us.

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The Dialectical Imagination by Martin Jay: Economics in Critical Theory

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In The Dialectical Imagination, Martin Jay says that economics was not a central part of Critical Theory, but that several scholars of the Frankfurt School worked in the area. One of the leading economists was Friedrich Pollock, especially after the Institute moved to New York. Like the other scholars of the Institute for Social Research, Pollock was trained in Marxist economics. This school mosttly followed Marx in thinking that capitalism would collapse under the weight of its own contradictions. One of those contradictions was that the aggressive accumulation of capital would impoverish the working class, which would then rise up and lead the revolution.

By the early 1900s, it was obvious that the problem of pauperization of the proletariat was at least partially solved, and capitalism didn’t collapse. The leading Marxist explanation was the rise of what Marxists call “monopoly capitalism”, as taught by the Austrian economist Rudolf Hilferding, discussed here. Classical economics treated the economy as made up of many firms (or, as Marx called them, capitals) each too small to affect prices, and all responding to the demands of buyers.

Unlike the classical economists, however, Marx recognized that such an economy was inherently unstable and impermanent. The way to succeed in a competitive market is to cut costs and expand production, a process which requires incessant accumulation of capital in ever new technological and organizational forms. In Marx’s words: “The battle of competition is fought by cheapening of commodities. The cheapness of commodities depends, ceteris paribus, on the productiveness of labor, and this again on the scale of production. Therefore the larger capitals beat the smaller.” Further, the credit system which “begins as a modest helper of accumulation” soon “becomes a new and formidable weapon in the competition in the competitive struggle, and finally it transforms itself into an immense social mechanism for the centralization of capitals” (Marx, 1894, ch. 27).

In this setting, labor itself is a commodity, so that one of the goals of the firm is to drive down wages as low as possible. That was the basis for the assumption that the proletariat would be impoverished: the firm would drive the price of labor to barely enough to support life. The process of capital accumulation in “ever new technological and organizational forms” did occur, as we know from the Gilded Age in the US when trusts and cartels dominated industrial production. That process was eventually slowed down by anti-trust laws and other laws. By the 1970s, antitrust enforcement came under assault, and today we see the results in our own oligopoly.

Monopoly capitalism has its own contradictions. In theory, there is no limit to cartelization, but in practice, there are limits. Technological change is a major force, and occasionally democratic processes interfere with the actions of capital. Another major force is the general distrust of large firms that was common in the early 20th Century, but that seems less of a factor today.

Based on the rise of the Nazis in Germany and the Communists in Russia Pollock thought that monopoly capitalism had reached its limits. Pollock saw Soviet Communism and German fascism as a new form of capitalism, State Capitalism. In both countries, the new regime preserved the forms of private property, but in effect all production was organized to carry out the aims of the central government. The profit motive was subordinated; instead the productive processes was organized to achieve dominance over the population. The state was controlled by a mixture of party members and bureaucrats in Russia, and by the party and a group corporate executives and rich people in Germany. Pollock argued that this was the future of capitalism.

In the US, he might have seen some elements of state capitalism in the following: a) the use of central planning, as in the National Recovery Act: b) the encouragement of technological innovation; c) the use of central banks both to stabilize and direct capital deployment; d) a form of job guarantee, as in the Civilian Conservation Corps; and e) a large and growing military sector. These trends in the US were baby steps compared with Russia and the Axis Powers, but they were real changes.

The Frankfurt School was right about the movement towards monopoly and oligopoly, and it was right about the increasing involvement of the State in this process. They were wrong to think that capitalism would turn into State Capitalism at least in the US and Europe, but in other parts of the world there are forms of the new regime. It’s important to note that not only were they right, but right for the right reasons. Here’s a discussion of the contradictions of capitalism from the New Palgrave Dictionary of Economics that shows the way this happens.

Critical Theory rejected the idea of economic determinism which was characteristic of orthodox Marxists. The Frankfurt School saw economics relations as one aspect of human behavior along with all the different interests and concerns people might have. They rejected the idea that economic relations were determinative of human behavior and therefore of the future, according to Martin Jay.

Pollack wrote that the profit motive “… had always been a variant of the power motive.” P. 155. The power motive drove towards dominance over nature, and because humans are part of nature, it included the drive to dominate other humans. The theory that the fundamental problem with capitalism is that the profit motive becomes entwined with the drive to dominate became a central focus of Critical Theory. They saw its effect in culture and academia. All knowledge becomes instrumental, only useful or even pursued if it can be used in capital accumulation. They argued that nature becomes invisible. The natural world is only useful for its resources, not because humans are part of nature, or because its beauty and terror contribute to our lives. Other human beings become objects, not agents in their pursuit of their own interests. The Frankfurt School was right about dominance, too.

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The Dialectical Imagination by Martin Jay: Psychoanalysis in Critical Theory

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Chapter 3 of The Dialectical Imagination takes up the role of Freud’s theories in Critical Theory. A major focus is the effort to integrate Freud and Marxian analysis: Freud was pessimistic about social change, which is, of course, the goal of Marxism. That’s a problem which seems pointless. If Freud’s ideas were valuable insights, and the Frankfurt School definitely thought they were, then his bourgeois sensibility and his conservatism are irrelevant.

The scholars of the Institute agreed that the proletariat had failed to carry out Marx’s prediction that it would be at the vanguard of the revolution that would lead to Socialism, the social ownership of the means of production. After Germany’s loss in WWI, conditions were ripe for such an effort. There was an uprising, but the Social Democrats, then the ruling party, crushed it with the aid of the Freikorps. Leading Marxist activists, including the brilliant Rosa Luxemburg, were murdered by the Freikorps, and Marxism as a revolutionary movement collapsed. That failure had a decisive effect on most of the leading intellectuals in Germany, almost all of whom were trained in Marxian thought, including the scholars of the Frankfurt School.

One reason for the failure of the proletariat to lead the revolution is that it did not identify itself as a social class, but as individuals with their own ideas and goals. The Frankfurt School saw Freud’s ideas as a way to understand the proletariat not as a class but as a collection of individuals. Freud’s personality types showed the way to understand the proletariat not as individuals, but as groups of individuals with similar characteristics. Each personality type had its own response to the economic conditions and to the social superstructure raised above the economic stratum.

One of the most important Freudians in the Frankfurt School was Erich Fromm. According to Martin Jay, one important contribution Fromm made to Critical Theory was the use of

//… psychoanalytic mechanisms as the mediating concepts between individual and society—for example, in talking about hostility to authority in terms of Oedipal resentment of the father.
P. 91.//

There are a number of examples of this in later chapters. Perhaps one of the strangest is this:

… Adorno made the point even clearer: “However little doubt there can be regarding the African elements in jazz, it is no less certain that everything unruly in it was from the very beginning integrated into a strict scheme, that its rebellious gestures are accompanied by the tendency to blind obeisance, much like the sado-masochistic type described by analytic psychology.” P. 186.

The point of understanding the personality types and their responses to society was to strengthen individuals through properly designed educational and other programs. The Frankfurt School believed that human beings had an unlimited ability to make themselves better, more rational, more educated, and more moral. The experiences of childhood and repressive social forces could be overcome, and even genetic predispositions could be overcome to some degree.

The second main reason for introducing psychoanalysis into Critical Theory was the belief that Marxism ignored the importance of happiness as a motivating factor in people’s responses to social forces. The scholars believe that Marx was too fixated on the role of labor, and ignored the importance of pleasure.

I don’t know anything about psychology. I’ve read a couple of books by Freud and Jung but one seemed dated and the other seemed woo-woo. When I was in Law School I took a class in the Psych Department at Indiana University, of which my main memory is of a live pigeon-pecking demonstration in the entry hall; a lot of the professors seemed to be devotees of B.F. Skinner. So, that’s a caveat to the following thoughts.

The idea that we need mediating concepts between the individual and the societies individuals crreate seems sensible. Certainly we can’t hope to work our way from the individual to the society without such mediating concepts, at least not in a principled, reasoned, way.

But maybe that isn’t relevant any more. As we grow to understand the way our brains work, the way the meat functions, the way the leaky gray matter spreads hormones, neurotransmitters, and stuff, the easier it becomes to figure out ways to manipulate them directly, maybe as I discuss here and here.

Or maybe we don’t need mediating concepts in an era of big data. The claims made about Cambridge Analytica and the insights that data mining gives Target are examples of unmediated insights into individual action that open the door to direct manipulation of the individual for political or commercial purposes.

After all, mediating concepts like psychological categories were originally intended to help us understand ourselves as individuals participating in a society. They enable us to get past the barriers in our own minds to greater individuation, greater integration of the various parts of our selves into wholes, greater self-understanding. But that matters only to those who think we can make ourselves better human beings.

The people who manipulate us don’t want us to make ourselves better. They like us just like we are, and they don’t care if we as individuals become more racist, more misogynist, more authoritarian, or stupider than we already are. They take advantage of us, of our lack of self-understanding and our lack of integrated personalities, in ways we don’t notice and can’t defend against easily.

The scholars who worked on studies of prejudice and the role of authority in the family and then defined the authoritarian personality type, believed, according to Martin Jay, “…that manipulation rather than free choice was the rule in modern society”. P. 238. Here, as in many other areas, they were able to articulate clearly what we can barely see today.

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[Photo: Seth Doyle via Unsplash]

The Wingnut and the Comedian

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In this post I suggested that Fox News has found a way to exercise corporate bio-power directly against a large number of white men aged 55 to death. The formula calls for stoking the viewer’s rage with a smug libtard and then relaxing him with a paid hitman who verbally crushes the libtard in a scripted debate, a formula worked out by professional wrestling. This cycle is designed, according to Toby Smith, to take advantage of the brain chemistry of viewers. It works for these older viewers in part because dopamine levels drop with age, and can be influenced by a number of other factors. People with lowered dopamine levels react with more anger than those with more normal levels. Serotonin and dopamine released when the Conservative Hitman crushes the Libtard is a pleasure to these people. It’s addicting, says Smith, and some of the materials I’ve read agree.

But lefties don’t watch Fox; and they must not watch a lot of cable news shows because MSNBC, supposedly the liberal channel, is slowly drifting to the right. Speaking solely for myself, I don’t watch cable news because TV takes forever to convey information. I like to read. But I do watch some late-night TV: Trevor Noah on The Daily Show, Stephen Colbert and Seth Meyer, occasionally John Oliver, and, of course, Sam Bee on Full Frontal. How is my response to their brand of humor different from the behavior I described for the Fox garbage?

Of course, the response I have is different in one respect, it makes me laugh, both at myself and at the problems. Apparently laughing and smiling release dopamine, serotonin and several kinds of endorphins, all of which make people feel good, and scientists currently think they help us deal with anger. Here’s a nice description from a Harvard institute devoted to neuro-science. The main difference between the laugh cycle and the rage cycle might be that jokes require the involvement of the thinking part of the brain, the prefrontal cortex. The rage cycle doesn’t seem to involve that part of the brain, but something deeper. The rage was already there, and this Libtard/Hitman just pushes the buttons directly.

Or, I could be completely wrong. A few minutes of research on the internets isn’t enough to give me any certainty about this or about the Fox attacks. So all this feels like rank speculation. But it’s fun, and seems to be releasing some extra dopamines for me. So, onward.

What I do know is that I am enraged by the Republican assault on our institutions and norms of governance, and even more by their anti-intellectualism, their irrationalism, their rejection of Enlightenment values. And I am outraged by the fact that we are governed by a minority, and that lots of the people in that minority are racist, homophobic and hateful greedy people. Even worse, some of them are violent pigs, both towards those they hate and towards their own families. And I’m angry with the spineless Democrats who seem to have no idea of how to respond to these attacks.

But the people I genuinely feel rage against are the billionaires and centi-millionaires who actually run our political system. You can take your pick of the monsters who plow money into a system of liars and frauds who purposefully lie to the ignorant voters they stoke with Rushbo and his stinking ilk. They expect a huge return on their money. So, yes, I feel rage. It’s probably not that different from the rage that the men 55 to death feel about libtards like me.

When Colbert shows clips of Trump and his flying monkeys lying or spewing bile, it sets me on edge, and the punch lines do the job of the conservative Hitman Toby Smith describes. The resulting laughter is also at least partly tribal. Laughter is a sign of group belonging, and I’m one of many feeling the rage and the release.

One thing these jokes do is to open a space for me to think clearly, and to remember that I really don’t hate the people who vote Republican. I don’t feel sympathy either, more like pity and a kind of resignation that at least they asked for the kick in the face they get. I do despise the Republicans who figured Trump would be good for their wallets and ignored the damage he would do. But my real anger is directed at the rich people who manipulate all of us and who intend to benefit from it in cash and power.

But, all of us plebes, from the far left to the far right should give a big hand to dopamine, serotonin and endorphins. Let’s keep those levels high, dampen the rage and open a mental space for thinking. Even our oligarchs, Russian and American, can join that round of applause, thanking heaven for natural Soma.

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Corporate Biopower as an Instrument of US Oligarchy

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An essay titled FEAR & UNbalanced: Confessions of a 14-Year Fox News Hitman by Tobin Smith offers an explanation of the ratings success of Fox News. Smith says he asked Roger Ailes, the then head of Fox News, about the target audience of Fox News. Ailes said it was men aged “55 to dead”, who look like Ailes, “… white guys in mostly Red State counties who sit on their couch with the remote in their hand all day and night,” and “They want to see YOU tear those smug condescending know-it-all East Coast liberals to pieces . . limb by limb . . . until they jump up out of their LaZ boy and scream “Way to go Toby…you KILLED that libtard!”

Smith says this is addicting: “…Visceral gut feelings of existential outrage relieved by … the thrill of your tribe’s victory over its enemy…” The technique for achieving this addiction is the same as in pro wrestling, where there are two characters, the Baby Face and the Heel. The Heel seems on the verge of winning, but the Baby Face triumphs in the end. At Fox News, there are two characters, the Libtard and the Hitman, both totally scripted.

The Libtard’s goal is to enrage the viewer by reciting liberal or progressive ideas in a predictable, smug superior way. The viewer already hates these ideas and the people who espouse them from listening to thousands of hours of right-wing radio.

Key Point: the viewer’s rage set their brain’s pleasure giving dopamine delivery system into high gear . . .and when their fellow conservative protagonist/tribal hero (aka me the hitman) turned the liberal’s own words against them and vanquished the sniveling apostate into living hell on live TV…WOW…the pleasure chemical rushed through the Fox viewer’s brain like a deep hit of crack cocaine (btw its the dopamine system in the brain that cocaine stimulates and makes it so addictive).

I’m pretty sure this isn’t just pop psychology, although I’m not quite sure he’s got the chemistry right. Here’s an article from Psychology Today, with further links for those interested. This paper says that dopamine/serotonin systems play a role in control of anger, as well as addiction.

Fox News isn’t the only entity out there dishing out tension and release. It’s a staple in the movies. Recently I saw a fragment of a 2008 Clint Eastwood movie, Gran Torino, in which three tall Black guys were pushing around a Hmong girl whose white boyfriend was spineless. Fortunately Eastwood drives by and intervenes with what looked like a .45 caliber pistol he just happened to have in his belt. The tension was palpable as the pushing around and threatening continued for several minutes with pulsating music, then was increased as the old white guy strode up and confronted the three guys, and then was released with the sudden appearance of the gun. This ridiculous movie grossed $272 million worldwide.

Another anecdotal example: how many of us have watched our dads get hooked on Fox News, like my dad did. His hearing and vision were bad, but he wouldn’t let anyone change the channel away from the Fox. He was always a bit angry about politics, but in his old age, he was remorseless. Here’s another anecdote.

We say movies like Gran Torino keep us glued to the edge of our seats; we mean we are waiting for the next tightening of tension and the sudden release. It helps me understand why Tobin Smith says that these old guys on couches hold that remote with a death grip; they want that fix.

Of course, media have always manipulated public opinion. But that at least was done with words, and could be countered, at least potentially, with smarter words. This is a simple manipulation of brain chemistry by a corporation for its own ends. It’s a psych experiment that would never be permitted by an Institutional Review Board.

Let’s put this in a larger context.

Bio-power and bio-politics are terms used by Michel Foucault to explain the way the state controls and defends its population. This recent essay by Rachel Adams posted at Critical Legal Thinking is a good introduction to Foucault’s thinking. For starters, recall that for Foucault “… power ts a relationship in which one person has the ability to guide another, to influence the behavior of another. This is an unequal relationship, but it is in itself neither good nor bad.”

According to Adams bio-power is the power of the State to influence the lives of the people it controls in a positive manner. She says Foucault describes two poles of power in the current era. One is the disciplinary pole, jail, mental hospitals; also, training the young in schools, banning noxious chemicals, and enforcing open spaces in cities. She quotes this from Foucault’s Will To Knowledge:

The second, formed somewhat later, focused on the species body, the body imbued with the mechanics of life and serving as the basis of the biological processes: propagation, births and mortality, the level of health, life expectancy and longevity, with all the conditions that can cause these to vary. Their supervision was effected through an entire series of interventions and regulatory controls: a biopolitics of the population. (Italics in original).

I interpret this to mean that issues of births and mortality, health, life expectancy, and the conditions that cause these, are properly the subject of politics in the current era, and that it is appropriate and necessary that the State provide a framework for making decisions about those outcomes and conditions. In other words, they become a proper subject of practical politics and of theoretical and scientific study. In a democracy, at least theoretically we all have a role in making decisions about these matters. Foucault makes it clear that such decisions should be made rationally, considering the possible outcomes of possible choices and selecting those that advance the values of the society.

Of course, it’s perfectly possible that the decision-making processes can be hijacked by people furthering only their own personal interests. This is how I view the Fox News crowd. The addiction practiced on their audience makes the target audience suckers for whichever candidate multi-billionaire octogenarian Rupert Murdoch chooses. That addicted audience is the people who now rejoice at the dismay of the libtards at the gutting of government and of health care and of all our international relationships.

It’s a new form of bio-power: the direct manipulation of brain chemistry for the goals of the people who control the vast capital pools in the private sector. It fits neatly into our oligarchy. Not all billionaires support all the garbage Fox spews about cultural issues, but they all support his economic agenda. And quite a few billionaires don’t really believe in democracy; they think they should make decisions about policy and infrastructure themselves. That’s the basis of their support for privatization, public/private partnerships for infrastructure, charter schools and deregulation, all of which are ways of displacing social control and inserting themselves directly in control.

So far, the people subject to this kind of manipulation aren’t a majority. So far.

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The Dialectical Imagination by Martin Jay: Human Nature is more than Producing Stuff

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One crucial difference between the Frankfurt School and the vulgar Marxists of the 1920s was the rejection of what Martin Jay describes as the fetish of labor. The scholars of the Institute for Social Research recognized that human nature was not defined by or limited to mere production. According to Jay, Marx himself took a broader perspective, arguing that the only constant in human nature was its ability to invent itself over and over again.

Critical Theory deals with this difference in several ways. First, it emphasizes the role of politics as an arena for moral action. Religion and secular philosophers historically emphasized the importance of individual morality, but for the most part accepted society as they found it. Jay points to Kant as an example. By the 20th Century, politics offered a much broader opportunity for moral action, and one that included a growing part of the working class. Far from accepting a limited social role as the productive force, people in the working class insisted on acting on their own as agents, and rejected the view that they were mere subjects acted upon by powers, state or corporate, beyond their control.

When Marx wrote, the central problem facing the working class was that its role in society was dictated soley by whatever it could provide in the way of productive value. Workers had no ownership in the products of their labor, only in their wages. The problems of capitalist oppression and alienation are central to Marx. Max Horkheimer of the Frankfurt School rejected this emphasis, saying it did the work of the capitalist class. Instead, he wrote about the importance of human sensual happiness. Jay describes one essay in which Horkheimer “discussed the the hostility to personal gratification inherent in bourgeois culture“. P. 57. Kant, considered a bourgeois philosopher, saw an absolute distinction between duty and personal happiness.

Although [Horkheimer] gave a certain weight to both, by the time capitalism had become sufficiently advanced, the precedence of duty to the totality over personal gratification had grown to such an extent that the latter was almost completely neglected. To compensate for the repression of genuine individual happiness, mass diversions had been devised to defuse discontent. P.57.

Ranking duty to the totality above personal gratification has roots in Marx. Theodore Adorno told Martin Jay in a 1969 interview that “[if] Marx had his way the entire world would be turned into a ‘giant workhouse.’” P. 57, fn. 20. This repression of individual happiness in favor of duty to society, to the totality, reaches its peak in fascism and Soviet communism. Even in its less drastic forms, this precedence of duty over personal happiness leads people to surrender their ability to pursue their own forms of happiness without even noticing the loss. It’s hard to exercise freedom when every part of society conspires to put certain ideas into your head, ideas that are useful to the capitalist class because they reinforce the importance of labor as the price of every personal pleasure or necessity.

This view of work is essentially bourgeois, and reinforces the status quo, two things the Frankfurt School rejected.

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The idea that labor is crucial to participation in society is central to capitalism, but problems are becoming obvious. Production of material goods has become so efficient that fewer laborers are needed, and the kinds work they do is dramatically different. This article discusses the new proletariat and the rise in their recognition of their status as an actual class, with interests opposed to other classes. Outsourcing and factory relocation to countries with cheap labor have reduced the number of jobs in production in this country. Automation threatens many more jobs, and not just those of the working class but of the middle class and the professional class.

In one part of the political world, ideas are circulating about job guarantees, universal basic incomes and other possible responses for a society that has too too little socially useful work for the number of workers. In other parts of the political world, ideas are circulating for torturing those who don’t have jobs so that they will accept whatever work is available just to stay alive, a modern-day version of the 19th Century argument that the workers and slaves are lazy and need the lash of hunger to get them to work. Maybe all those lazy takers will be forced back to the farms to replace the immigrants we are so busy deporting.

Or maybe we will change our minds about the glories of work. Try googling “fuck work” for a sampling. Here’s a long and detailed article in the Baffler asking why left and right agree that the answer to social problems is “get a job”. The writer, James Livingston, a professor at Rutgers, traces leftist support for the centrality of work in forming character back to the Left-Hegelians and Marx, just as Martin Jay does.

We’re not all card-carrying Marxists now, but we’re properly fellow travelers because “full employment” appears to many, left and right, a self-justifying project. Certainly the left remains the captive of the Marxist tradition, which still peddles two ideas that now threaten to distract us from the realities of our time. These are that human nature resides in its capacity to create value through work and, consequently, that the proletariat (the “universal class”) is the appointed engine of social change and progress through class struggle.

This sounds like the vulgar Marxists Jay describes. Livingston shows that it is specifically Protestant. “Before the Reformation, almost no one believed that socially necessary labor was an ennobling activity. After the Reformation, almost everyone did.” I don’t think work is ennobling, whatever else it is or does, but I’m pretty sure this is the majority view. Everyone, left and right, seems to think work creates character, through discipline or something. I’m sure it does create a mindset, but again, how do we know what we are, how do we know how to be free, when those ideas constrain us invisibly, so that we barely know ourselves without them.

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That’s enough of Chapter 2 of The Dialectical Imagination; on to the chapter on the integration of psychoanalysis into Critical Theory. Curiously, I’m re-reading one of my favorite novels, Possession, by A.S. Byatt, and I am struck by synchronicity in this odd passage:

Maud considered. She said, “In every age, there must be truths people can’t fight — whether or not they want to, whether or not they will go on being truths in the future. We live in the truth of what Freud discovered. Whether or not we like it. However we’ve modified it. We aren’t really free to suppose — to imagine — he could possibly have been wrong about human nature. In particulars, surely — but not in the large plan —”

Roland wanted to ask: Do you like that? P. 276.

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The Dialectical Imagination by Martin Jay: Truth and Facts

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Until the Enlightenment, everyone thought that there were Absolute Truths. It was the only way to understand the physical, social and psychological state in which humans existed. God spoke to humans and established the Absolute Truth. Those who trespassed against that Truth were burned at the stake, as Giordano Bruno, or exiled. That was true of all religions and all philosophers too.

That view has never died out. It’s the root of fundamentalisms of all denominations, and even among quasi-believers it is widely held. I think is is a core principle of conservatism, at least in practice. For example they all seem to believe in the Absolute Truth that tax cuts are always the solution to any perceived problem. And neoliberals assert it too, at least in their public statements; who knows what, if anything they actually believe or if there is an authentic neoliberal self that has a principle that doesn’t involve money or power.

It’s important to note that not all religions today teach that they are in possession of Absolute Truth. From its beginning, for example, the Jews did not name or describe the Almighty. They knew they were not like the Almighty, and thus could not expect to understand the nature of the Almighty. In the same way, Catholics who accept the teachings of Vatican II know that even the moral guidance of the Pope is subject to the considered judgment of the People of God. Catholics do not surrender their moral agency. Instead, dogma is guided by the lived experience of the faithful believer.

It seems odd that anyone would claim to speak for the Almighty, but people always have and still do. Some claim to know the will of the Almighty from an ancient text or because they heard it from someone who they believe speaks for the Almighty in our time. Still others claim the authority to interpret those texts as a guide to living in a society vastly different from that in which they were first written down.

It’s a small step from believing that one knows the will of the Almighty to believing that some social practice is ordained by the Almighty. It’s another small step to believe some theory of society or economics or politics reflects the will of the Almighty. It’s easy to see how this practice infects and affects vast numbers of people.

The struggle among these people is for dominance in the definitions of Absolute Truth. It isn’t just preachers and religious leaders who try to create Absolute Truths, there are plenty of politicians and others whose interests are served by linking their projects to Absolute Truth. Obviously this struggle doesn’t take place in the realm of reason, because absolutes are not subject to reason, or to argument, or to persuasion of any external kind. The truth is a whole, and the believers hold that whole. As an example, the Nazis tried to root out “Jewish Physics”, embodied by Albert Einstein, as anti-Aryan. Einstein was a theorist, not an experimenter, and the guy driving this absurd idea was an Aryan experimenter.

In contrast to the absolutists, a lot of people began to lose that certainty at the time of the Enlightenment. By the early 1900s, most thinking people were trying to come to grips with the absence of certainty. The members of the Frankfurt School certainly did not believe in Absolute Truth. Here’s Martin Jay:

… Dialectics probed the “force-field,” to use an expression of Adorno’s, between consciousness and being, subject and object. It did not, indeed could not, pretend to have discovered ontological first principles. It rejected the extremes of nominalism and realism and remained willing to operate in a perpetual state of suspended judgment.

Hence the crucial importance of mediation (Vermittlung) for a correct theory of society. No facet of social reality could be understood by the observer as final or complete in itself. There were no social “facts,” as the positivists believed, which were the substratum of a social theory. Instead, there was a constant interplay of particular and universal, of “moment”* and totality.
P. 54, emphasis added..

One way to think about this point of view is to recognize that scientific theories are subject to massive revision. That’s the point of Thomas Kuhn’s The Structure of Scientific Revolutions. It’s a painful process, but necessary for science. If that’s true for our best and most focused practical thinking, it’s impossible to imagine that there are Absolute Truths about human beings and their intricate social relations and their personal projects and desires. Dialectics, mediation, neither will uncover universal truths.

This general view has been common for some time among academics. Here’s a nice example provided by Andrew Bacevich. It’s a speech given by Carl Becker in his capacity as president of the American Historical Association in 1931. Becker defines history as “… the memory of things said and done.” Those memories may include things witnessed or said or done by a person, and it may include other people’s memories passed along in writing or otherwise, and it may include true, false and mixed memories. He explains that “For all practical purposes history is, for us and for the time being, what we know it to be.”

Throughout the speech, he compares the professional historian to Mr. Everyman, the average person in the street.

In constructing this more remote and far-flung pattern of remembered things, Mr. Everyman works with something of the freedom of a creative artist; the history which he imaginatively recreates as an artificial extension of his personal experience will inevitably be an engaging blend of fact and fancy, a mythical adaptation of that which actually happened.

We can see this process when we look at how the myths of slavery and the Confederacy were generated purposefully by those with something to gain, as Ibram Kendi shows in Stamped From The Beginning. The process continues today as the true believers on the Texas School Board work to erase from our collective memory the vicious brutality of slavery and to replace it with the absurd view that slaves were happy under the whip of their white owners.

The Frankfort School teaches that all our ideas and theories should be tested by what Jay calls the tribunal of reason. According to Jay, they didn’t have a clear definition of “reason” or of “truth”. As he explains, the dialectic is great for attacking existing ideas, but it won’t establish any truths itself.

Jay says that the Frankfurt School “…remained willing to operate in a perpetual state of suspended judgment.” That’s fine for analysis, but at some point, you have to act. It seems to me he is saying that the role of reason is to make sure that when you act you are making the best possible choice about the act, and about the goal of the act. And that is a good description of praxis.

I won’t go further, because the contributions of the Frankfurt School in understanding society and working towards a better society do not depend on it. One such contribution, the concept of the Authoritarian Personality, deals directly with the true believers.

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