17 things about 2013

I wrote this whilst I listened to the tunes that defined 2013 for me.

What did I learn this year?

  1. I lost faith in myself. I am trying to find it again. Starting with my being.
  2. It is my faith in others that will enable me to recover my faith in myself. I need to understand how to earn faith in myself, reinforced by other’s faith in me.
  3. I feel like all I did in 2013 was survive. I learned that it is possible to survive. It is tiring to survive. But it is possible.
  4. There are some amazing people in my life, whose belief in me is greater than my self-doubt.
  5. Fuck hope. Remember courage.
  6. I can be a moody bastard. I apologise to you if you have suffered as a result. Please know that I am working on it.
  7. I will never abandon my 8 year old. As a result I will never abandon you. This is the truth that they could never see/hear.
  8. The University is broken. Irrevocably. Marketised. Privatised. Technologised. Entrepreneured. Out of the public sphere.
  9. The options are to say no, and to resist, and to push back, and to call people out, and to do so in solidarity. The options are to do these things collectively, using trades unions and pop-ups unions and strikes and protests and demonstrations and insurrections and refusals, in public spaces/times.
  10. The options are also to prepare for exodus from capital. To celebrate use value and not exchange value. For open and public association and solidarity, against private, indentured lives.
  11. To exodus is to pay down your debts, to learn some new, tradable skills, to access communal tools, to know and love/earn faith in your neighbours.
  12. I need/want/hope to be more involved in the Social Science Centre. Co-operation is the thing.
  13. My alienation is now at issue. How do I overcome my alienation from my labour, the products of my labour, my self/humanity and other people? There is something here about faith, courage, tolerance, and solidarity.
  14. I wonder whether it is possible to liberate academic labour from the living death of capitalist work? Is it possible to find spaces to liberate and repatriate knowledge, ways of knowing, organising principles, before they are commodified/enclosed out of our reach?
  15. I am increasingly pessimistic that society has the will to overcome the triple crunch of climate change, peak oil/resource availability, and this secular crisis of capitalism. It is easier to imagine the end of the world than it is the end of capitalism. See 11.
  16. I am increasingly convinced that the academic only matters as activist. See 13.
  17. What is to be done? Always.

beyond the space-time of debt and privatisation

In a paper from 2011 entitled Questioning Technology in the Development of a Resilient Higher Education, Joss Winn and I looked at the interrelationships between peak oil, narratives of economic growth, and the idea of the university. We argued the following (NOTE: I’ve stripped the references out, except for Hirsch, both of which you really should read).

The importance of oil to economic growth will become an increasing concern to universities, which are themselves seen as engines of growth. Hirsch (2008) has calculated that a decline in the global production of liquid fuels (i.e. unconventional and conventional oil) would lead to approximately a 1:1 ratio in the decline of global GDP. In the same article, the post-peak decline in oil production is calculated to be between 2% and 5% per year, suggesting a similar decline in GDP. By comparison, the decline in GDP during the global recession from 2008 to 2009 was 5%. In the United Kingdom, the Industry Taskforce on Peak Oil and Energy Security has likened the effect of an imminent ‘oil crunch’, due mid-decade, to the current credit crunch. Their report also shows the ‘highly suggestive’ correlation between oil price spikes and US recessions, stating that every US recession since 1960 has been preceded by rapid oil price rises, and that when the price of oil exceeds 4% of US GNP, a recession occurs shortly afterwards. In March 2011, this equated to an oil price of around US$80 per barrel, and therefore April 2011’s price for dated Brent spot crude oil of US$118 per barrel is a threat to economic growth in oil-importing countries. Moreover, within capitalism, a threat to economic growth is a threat to social stability, as is noted whenever there is a recession or conflict, with clear implications for the role of HE.

These issues were amplified by the US Department of Energy’s ‘Hirsch report’, which stated:

The peaking of world oil production presents the U.S. and the world with an unprecedented risk management problem. As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social, and political costs will be unprecedented. (Hirsch et al., 2005, p. 4)

The difficulty of moving away from the use of oil is highlighted by the Hirsch report, which states that ‘a minimum of a decade of intense, expensive effort’ is required to migrate from our current use (Hirsch et al., 2005, p. 5). Businesses have strategically targeted waste in energy usage of technology, and attempted to profit from its measurement and monitoring as part of a strategy to roll out smart technologies, which themselves are highly contentious. Relatively little has been done to address this anticipated problem within HE due to its focus on business as usual. Within the current model, business as usual extends the global demand for oil by at least 15% over the next 25 years.

If you want to see Hirsch talk about the risks of peak oil and its impact on growth, its relationship to national geopolitics and transnational corporations, and our (in)ability to mitigate the decline in oil supply, in order to maintain growth or in fact manage de-growth, I recommend this talk from 2007. One of the key risks in this scenario is of an energy crunch that suspends capitalism, in that it makes growth impossible or precarious. A US Joint Forces Command report from 2010 warned of a possible shortfall in global oil output by 2015:

A severe energy crunch is inevitable without a massive expansion of production and refining capacity. While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds. Such an economic slowdown would exacerbate other unresolved tensions.

The interplay of the triple crunch of peak oil (or more specifically a lack of ready access to liquid fuels), climate change and economic crisis are creating an increasingly volatile global context, against which higher education is calibrated. And that’s without talking about the geopolitical threats to a global economy underwritten by petrodollars. Moreover, as Nafeez Ahmed notes in a Guardian report on a lecture by a former BP geologist:

The fundamental dependence of global economic growth on cheap oil supplies suggests that as we continue into the age of expensive oil and gas, without appropriate efforts to mitigate the impacts and transition to a new energy system, the world faces a future of economic and geopolitical turbulence:

“In the US, high oil prices correlate with recessions, although not all recessions correlate with high oil prices. It does not prove causation, but it is highly likely that when the US pays more than 4% of its GDP for oil, or more than 10% of GDP for primary energy, the economy declines as money is sucked into buying fuel instead of other goods and services… A shortage of oil will affect everything in the economy. I expect more famine, more drought, more resource wars and a steady inflation in the energy cost of all commodities.”

According to another study in the Royal Society journal special edition by professor David J. Murphy of Northern Illinois University, an expert in the role of energy in economic growth, the energy return on investment (EROI) for global oil and gas production – the amount of energy produced compared to the amount of energy invested to get, deliver and use that energy – is roughly 15 and declining. For the US, EROI of oil and gas production is 11 and declining; and for unconventional oil and biofuels is largely less than 10. The problem is that as EROI decreases, energy prices increase. Thus, Murphy concludes:

“… the minimum oil price needed to increase the oil supply in the near term is at levels consistent with levels that have induced past economic recessions. From these points, I conclude that, as the EROI of the average barrel of oil declines, long-term economic growth will become harder to achieve and come at an increasingly higher financial, energetic and environmental cost.”

This volatility in geopolitics, access to energy, and global GDP is important for those who work and study in higher education, because we are entering a phase of increasingly complex financial mechanisms for indenturing study, which tie both institutions that are leveraged in the financial markets and students whose futures are sold through loans to the myth of infinite growth (or business-as-usual). This is a risk because as I note elsewhere:

it is private (rather than public) debt, and excessive leveraging of debt that tends to push capital into structural crises. The leveraging of private debt through excessive student loans, whilst giving a short-term financial fix for some leaves a deeper structural legacy related to crises of demand. So we end up with an inflated set of financial assets that bear no resemblance to the value of real assets in the real economy, and in the process of deleveraging the ponzi scheme leaves those individuals with high levels of debt at most risk.

This space of high-levels of individuated risk and of futures defined by individual and institutional debt is the world that defines the work of educators and students. Where bailouts meet austerity, where the realities of a quadrillion dollars of debt underpin politics in the United States, where student debt and therefore student education forms part of a coming sub-prime crisis, and where in spite of the rhetoric about higher education and employability, the realities are youth unemployment and long-term falls in real wages, or precarious employment.

And I haven’t even mentioned a future framed by oil, rising oil prices, or carbon. Yet, these matter because as Roger Pielke Jr argues:

We can simplify these four factors even further. Population and income together are simply GDP, or aggregate economic activity, and the production and consumption of energy reflect the technologies of energy supply and demand. The resulting Kaya Identity — as his equation has come to be called — simply says:

Emissions = GDP x Technology

With this simple equation before us, we can see the fundamental challenge to reducing emissions: A rising GDP, all else equal, leads to more emissions. But if there is one ideological commitment that unites nations and people around the world in the early 21st century, it is that GDP growth is non-negotiable. Right now, leaders on six different continents are focused on efforts to grow GDP, and with it jobs and wealth. They’re not as worried about emissions.

The concern then is that these factors become reinforcing. That the drive for GDP and growth recalibrates the University around the rule of money. That inside this space an agenda of privatisation based on evidential assertion or problem-solving theory is presented as de-politicised and normative, and enables technology firms, working with private equity, transnational finance, think tanks and politicians to lever open public education for profit. That student debt becomes a key power source for this drive to privatise in the name of efficiencies, scale, value-for-money and impact, and in fact generates a pedagogic and structural view of student-as-consumer that further recalibrates higher education and the use of technologies inside that sector.

And things continue to worsen, as Andrew McGettigan writes in his notes to the transcription of the Project Hero report of the Rothschild Investment Bank to the Coalition Government of 2011, designed to facilitate a sale of existing student loan debt starting in 2013. McGettigan states that:

One of the most interesting aspects of the Rothschild review is the detail provided on the rejected models, not least because of the centrality of the suggestion that universities could be encouraged to underwrite the risk of poor graduate repayments through debt issues or equity stakes in special purpose vehicles.

Rothschild conclude their report with a new suggestion in relation to all loans: that the government look further into the possibilities offered by ‘tranching’ the loan book in order to attract a better price. In effect, suggesting that the product to be sold is broken down into smaller sizes than whole cohorts. This has significance for assessing whether the much riskier ‘coalition loans’ can be sold (as David Willetts appears to be suggesting as a future funding solution). As each of these cohorts will enter the repayment system with £12billion of debt in total, any feasible sale requires more sophisticated financial engineering.

There are two approaches to tranching outlined by Rothschild: the first relates to a structuring of repayments and risk according to different ‘seniorities’; the second to structuring the product by the ‘underlying characteristics’ of the individual loans themselves.

In the face of the triple crunch, of the volatility imposed by the interrelationships between peak oil, our climate realities, and economic futures, is business as usual really possible for those who labour and study in higher education? What kinds of conversations are we having with society about our need for “more sophisticated financial engineering” to underpin increasing student debt? What kinds of conversations should we be having with young people and their parents about the volatile relationships between debt, real wages, unemployment and precarity, in the face of the added volatility of access to the resources that keep the economy growing? Volatility heaped upon volatility, so that indentured study itself underpins an increasingly precarious promise of a valuable and value-laden working life.

Precarity and volatility, as Ilargi notes at The Automatic Earth, underpins the transfer of resources to those with power and the accumulation of wealth by an elite, which threatens a clash of social forces. This clash is already happening in student/worker occupations, indignations, demonstrations, strikes, and so on, that are aimed against neoliberalism and austerity across the globe. Ilargi notes:

If we presume that a connection exists between the increase in debt on one side and the increase in “asset value” on the other, then I would say chances are we’re looking at both a gigantic wealth transfer from the poor towards the rich and a huge bubble that allows that to happen, and that will make the poor even poorer when it bursts. Which seems inevitable, because debt by itself cannot create value.

And if I’m right, what we’re seeing is not the incredible resiliency of the markets, and no real increase in asset value, but an increase in the threat to the social cohesion of our communities, cities and nations.

The Automatic Earth has long argued that in the coming revaluation, individuals and communities need: to pay down their debts (unless you wish to lose your lives as indentured student/worker or your homes as mortgagee, which are someone else’s assets); to learn some new, tradable and communal skills; to buy some communal tools; and get to know your neighbours. As we career towards an increasingly volatile energy/economic outlook, with the realities of devaluation and debt looming, and increasingly complex mechanisms being sought for locking down and making precarious the future of both higher education institutions and its students/academics, I wonder whether the only response that academics have is that there is no alternative? Or whether academics can develop alternative methods of liberating knowing and knowledge and organisation, and which are beyond the space-time of debt and privatisation.

Addendum: in a piece on the UK’s jobs crisis, Ha-Joon Chang argues that work insecurity, the collapse in real wages, unemployment, mental health problems and a lack of well-being, are hidden from serious discussion. He states that “this wider crisis – perhaps we can call it the “general living crisis” – is not seriously discussed because over the last few decades we have come to neglect work as a serious issue.” This is certainly true of higher education, which has been re-geared around entrepreneurial education and the Government’s growth agenda. Inside the University there is no alternative to an education for the living death of capitalist work. As Marx notes in volume 1 of Capital:

The capitalistic mode of production (essentially the production of surplus-value, the absorption of surplus-labour), produces thus, with the extension of the working-day, not only the deterioration of human labour-power by robbing it of its normal, moral and physical, conditions of development and function. It produces also the premature exhaustion and death of this labour-power itself. It extends the labourer’s time of production during a given period by shortening his actual life-time.

As Chang notes, we need to talk about the reality of this as we expect our students as scholars to consume and produce more debt.


The co-operative university against indenture

Martin McQuillan has argued that the Coalition Government is placing borrowing at the heart of the UK’s higher education system. He notes that:

Against all expectations George Osborne’s Autumn statement announced that the cap on student numbers in England would be abolished from 2015-16. As an interim measure an additional 30,000 places would be made available for the next academic year 2014-15. The initial numbers would be available for universities; private providers would be able to access the unlimited market from 2015. This expansion, costed at £700million per year, would be funded by the estimated £12billion sale of income-contingent repayment loans taken out between 2003 and 2010, before the Coalition’s reforms.

For McQuillan, as for so many of us who struggle with this neoliberal, entrepreneurial turn, this has given a green light to further private involvement in the delivery and assessment of higher education, alongside the Russell Group’s increasingly aggressive lobbying for the removal of the cap on fees. This is education as bourgeois consumption for an elite that sits asymmetrically against those driven towards universities which are forced to compete via riskier, more volatile engagements in the finance (bond) markets. A life predicated on and disciplined by personal or institutional debt; the socialisation of production for the market rather than for society through debt and indenture; education indentured forever.

Either way, McQuillan argues that:

It would seem that Osborne has decided that it is more important to secure the ideological legacy of the Coalition’s reforms by creating an unlimited market funded by borrowing than by balancing the BIS budget.  However, with UCAS reporting that university applications are currently 4% down on this time last year, it is not entirely clear that the demand exists for increased higher education provision at £9,000 per year.

Andrew McGettigan has also been very clear about the balance between risk, demand and volatility in the near future, and the (deliberate?) unsustainability of current Coalition policy. He argued that:

How will the planned expansion of undergraduate places will be funded after 2015/16? We don’t have the details yet: setting out policies using gross, rather than net, proceeds is incompetent. If you sell the loans, you no longer receive the associated income stream. That should be obvious.

Beyond 2019/20, there are no more sale proceeds, but income will continue to be £1billion lower than previously estimated. What happens then? This is hit-and-hope policy making.

Higher Education deserves better – a clear, sustainable financing solution without gimmickry.

Hit-and-hope, gimmickry, or ideology posing as evidence-based policy. It is worth watching McGettigan at the House of Commons BIS Committee (17/12/13), not only for the points made about volatility and the sustainability of funding mechanisms when linked to marketization, but also for the notable absence of the Minister, David Willetts MP, and the Select Committee’s apparent lack of clarity on the detail of the mechanics of HE funding. Their questions to Toni Pearce of the NUS on why this matters for current students mapped out a terrain where indenture was seen by those in-power to be almost natural; almost a state of grace. So we witness complexity plus volatility plus risk plus hedging plus an inability to see beyond the inevitable shift of funding/risk from society to the entrepreneurial individual. This is the critical point that Pearce made at the start of her evidence to the Select Committee. This is the fundamental rupture between the market and the entrepreneurial individual, and the possibilities and hope that emerge from socialised, co-operative practice.

This is the ideological rupture that is everywhere to be seen.

On challenging this on the terms of money capital, or the rule of money, the Times Higher Education reported the Institute for Fiscal Studies, stating that current short-term policy-making based on secondary legislation:

“[] may work in the near-term fiscal numbers, but economically it makes little sense”.

“Selling the loan book will be broadly fiscally neutral in the long run, bringing in more money now at the expense of less money later on. Lifting the cap on numbers will cost money every year.”

Carl Emmerson, deputy director of the IFS, said that scrapping the cap on student numbers will increase the “long run cost to the public finances of student loans”.

The transfer of the risks of failure, debt and indenture to the individual in her contract with private providers raises the spectre of debtors prisons, like these in Colorado, or these in Alabama, or in this report from Harvard about student debt, where:

somebody literally asked the internet if they could go to jail to pay off their debts. That’s desperation. And I’m neither laughing nor impressed.

And we might collectively look at what is happening to our social relationships in this ideological quickening. As we read reports of students saddled with debts and whose assumed incomes have not met expectations or the assumptions made by their Colleges or peers. The collapse in real wages and the rise in inflation; the full economic impact of devaluation as the realities of paying down quantitative easing bite; the exponential growth in student debt as an investment vehicle in the face of the falling rate of profit; the lack of growth in de-developing nations like the UK; each of which impact these real-life student stories of debt-ridden hell.

These real-life stories of an indentured life covered in the project on student debt, and in 5 stories on student debt, and in Australia, and in South Africa, and in transnational banks targeting students in India, or the complex interrelationships between debt and mental health and well-being. As Marx wrote in Volume 3 of Capital, these stories reveal how interest-bearing capital is the most fetish-like form of social relations. Marx wrote:

In interest-bearing capital, therefore, this automatic fetish, self-expanding value, money generating money, are brought out in their pure state and in this form it no longer bears the birth-marks of its origin. The social relation is consummated in the relation of a thing, of money, to itself. Instead of the actual transformation of money into capital, we see here only form without content.

Thus we get the fetish form of capital and the conception of fetish capital. In M — M’ we have the meaningless form of capital, the perversion and objectification of production relations in their highest degree, the interest-bearing form, the simple form of capital, in which it antecedes its own process of reproduction. It is the capacity of money, or of a commodity, to expand its own value independently of reproduction — which is a mystification of capital in its most flagrant form.

In its capacity of interest-bearing capital, capital claims the ownership of all wealth which can ever be produced, and everything it has received so far is but an instalment for its all-engrossing appetite.

Debt, money and time, inextricably linked and inextricably dislocated from the realities of production of commodities, labour-power, and humanity in the present, in order to inexplicably subsume the future.

And what we are left with inside higher education are a set of keywords that enclose/describe the time and space, and space-time, of the University: debt; indenture; financialisation; hedge; entrepreneurship; consumer; customer-service excellence; securutisation; policing; competition; privatisation; marketization; organisational development; performativity; impact. These keywords in this space-time represent the chronic failing of intellectual leadership.

It is in the spirit of recovery then that Joss Winn has written about a co-operative universities mailing list, as one tactic in arguing for an alternative, and in defining an alternative set of keywords that might hold us as we work for something different. As we try to write and think about what it means to be co-operative, in-and-against a higher education that is increasingly kettled, we urgently need a conversation about the organising principles for collective work and for social solutions rather than for coercion and competition.

We need to talk about a university-life that is not framed by debt but by justice, and that is against business-as-usual in the form of indenture. As Joss notes:

If you are interested in discussing, researching, keeping up-to-date and even creating a co-operative university, there is a mailing list you can join.

https://lists.mayfirst.org/mailman/listinfo/co-op-universities

The list was first set up by a group of us who attended the Co-operative Education Against the Crises conference earlier in the year. Since Dan Cook published his report and the Institute of Education hosted a seminar, people have been in touch via this blog, Twitter and email, asking me how to stay involved.

Please join the mailing list and introduce yourself.

The mailing list is hosted by Mayfirst/People Link, a politically progressive member-run collective of technologists.


On the University, protest and a post-capitalist imagination

Marx was clear that given the nature of capitalist social relations, there can be no balanced growth or equilibrium reached inside production for the market. The history of crises, and of both State and transnational responses to those crises, crystallises that reality further. Unfortunately for those living and working inside higher education this is being realised as the University moves from its formal subsumption under capitalist social relations to its real subsumption. This process involves the restructuring of higher education as a terrain for exchange value, rather than simply for the production of use values, and as a site for the expanded reproduction of capital.

This restructuring is painful bordering on the excruciating for many, and it is imposed in-part through measures like: the announcement in the Autumn Statement of 30,000 extra university places next year and the abolition of all number controls in 2015-16; the calls for the removal of the cap on fees; increased privatisation and outsourcing; encouraging alternative providers; the sale of the student loan book; the use of REF/impact measures for academic labour, and so on. Each of these tactical arrangements furthers the deterritorialisation of the idea that the public/social might underpin the organising principles for higher education. As a result we are left in asymmetrical opposition the State’s use of force to impose marketization. Market forces, indeed.

On the sale of the loan book, Andrew McGettigan has questioned:

why would you sell this asset class at the bottom of the market? that is, when the economy is only just beginning to recover from recession. If you believe in ‘the growth to come’, wouldn’t you be better holding on to an income steam [sic.] tied to graduate earnings?

So one is left to question whether this tactic is simply a deeply political move that is designed for the purpose of fundamentally restructuring the future direction and organising principles of higher education? One result is that it becomes impossible to go back. Moreover, each provider becomes a competing capital in a system of expanded reproduction, and is forced to become part of an association of capitals rather than simply a provider of education.

The potential for higher education to be folded inside a broader system of expanded reproduction is important for reinvestment or reallocation purposes across a global economy. However, this potentiality is disciplined by credit and debt and that bears its own risks. As the mainstream economist Jeremy Sachs recently argued, “The U.S. economy, and the world economy, cannot recover sustainably by propping up consumers for yet another binge.” Yet Phoenix Capital continue to argue that debt-related binges are exactly what is fuelling any semblance of growth:

So, we have investor sentiment showing record bullishness, investors are piling into stocks at a pace not seen since 1999-2000: at the height of the Tech Bubble, earnings are generally falling, the global economy is contracting, and the Fed is already buying $85 billion worth of assets per month.

We all know how this bubble will burst: badly. It’s just a question of when. The smart money is either selling into this rally (Fortress and Apollo Group) or sitting on cash (Buffett). They know what’s coming and are waiting.

In this view, Governments need to generate reinvestment and productive capacity, in order to reinstate meaningful growth that is not simply based on consumption and mortgage-debt. However, as Michael Roberts notes, corporations are increasingly unwilling to make productive investments, preferring to hold financial assets like bonds, stocks and cash. This would indicate that the returns on productive investment are too low relative to the risk of making a loss. Thus, investment in new technology or research and development, which requires considerable upfront funding for no certainty of eventual success, is stalling. In spite of limited venture capital involvement in MOOCs and the engagement of some universities in bond markets, as Audrey Watters queries, at issue are both the business model for higher learning and how its providers will make money in the medium-term.

Roberts amplifies the importance of understanding this problem for higher education, because “In order to compete, companies increasingly must invest in new and untried technology rather than just increase investment in existing equipment.” This is riskier because R&D is costlier to finance and requires firms to hold a greater cash buffer against future shocks. Thus, says Roberts, “companies have to build up cash reserves as sinking fund to cover likely losses on research and development.” As universities are restructured as competing capitals or businesses, the relationships between investment, capital intensity, labour productivity and profitability or the ability at least to service debts through surpluses, become critical.

A central issue in judgements that will need to be made about these interrelationships and especially investment opportunities will be appetite for risk. In a speech on profitability and investment in the UK private sector, Ben Broadbent from the Bank of England noted:

Even if the crisis originated in the banking system there is now a higher hurdle for risky investment – a rise in the perceived probability of an extremely bad economic outcome… In reality, many investments involve sunk costs. Big FDI (foreign direct investment) projects, in-firm training, R&D, the adoption of new technologies, even simple managerial reorganisations – these are all things that can improve productivity but have risky returns and cannot be easily reversed after the event.

This matters for academics and students in an increasingly opened-up UK higher education market, not just because the Government is cracking the public sector for the extraction for value and profit, and as a space inside which excess surplus value can be invested, but also because secondary legislation and customary practices are becoming mechanisms for the creative destruction of capital. As Michael Roberts notes in a separate blog-post, levels of corporate debt and poor rates of return on investment mean that:

According to research by the ‘free market’ Adam Smith Institute, 108,000 so-called zombie businesses in the UK are only able to service the interest on their debt, preventing them from restructuring. In a way, this is holding back a recovery in overall profitability and new investment because “Zombie firms stop workers and money being redeployed to more productive uses, they prevent new, better firms entering the market, they undermine competitiveness, reduce productivity and slow the growth of the whole economy.” In other words, they slow ‘creative destruction’ of capital by the liquidation of the weak for the strong.

It is too easy to see how the creative destruction of certain institutions and the reappropriation of their capital assets will flow from marketization.

We might therefore usefully question how Government higher education reforms are situated against a critical political economy of the restructuring of the idea of higher education. Whilst we may argue that there is an ideological hatred of the public or the poor or the disadvantaged by those in-power that is visceral and neoliberal, we also need to recognise, as Roberts does, that reforms are driven by the “dominance of the capitalist sector” and in particular by finance capital. The sale of the loan book, outsourcing, MOOCs, precarious academic labour, are all refracted through this reality. To call for public re-investment for higher education, as Roberts again highlights, “does not ensure a rise in profitability for the capitalist sector as a whole… [and] As long as the capitalist sector is dominant in the major economies, that is what matters.”

Thus, for universities, the opening-up of the sector to the coercive laws of competition is likely to mean more outsourcing and association with the private providers of services and commodities, more engagement in finance (bond) markets, limited use of venture capital for technological innovation, and a faster pace of organisational development and restructuring, each focused on capital or labour intensity, and the production of surplus value. However, this will simply expand the contradictions inherent to capital into the sector, rather than enabling those contradictions to be overcome.

One result is likely to be the removal of the fee cap for indentured study, in order to raise effective demand. For the Russell Group this will provide an opportunity to service the global, bourgeois consumption of “high-class”, expensive educational products. For the rest there will be a fight for low-cost consumers or for a foreign trade in international students/labour that is a form of arbitrage. One of the problems in all this is that market-forces tend to be anarchic (witness Phoenix Capital’s statement noted above about the looming bear market) and incoherent, and a poor guide to managing production and abundance/scarcity of resources. This is as true of academic labour as of any other form as it is subsumed under the dictates of competition and the production/accumulation of surplus value.

One of the critical questions in this restructuring relates to the response of academics and students inside the system. In a reflection on the Autumn Statement, Andrew Westwood argued:

After all of the arguments about both the affordability and the desirability of a mass higher education system, George Osborne has come down firmly and decisively in favour of both. I thought we had lost that debate – that faith in mass human capital and the knowledge economy had been irreparably damaged. I was wrong and I’m pleased about that.

That should be something to celebrate.

This statement is distasteful because it reduces humanity to “mass human capital”. As I note elsewhere, it is actually a “flagrantly despicable term to reduce people to”. However, economically it is also deeply flawed. The argument is that the worker’s labour power is her capital in the commodity form, and that education will help her to build that capital and deliver a return. As David Harvey notes, this might work in artisan/craft societies, but in the transition from craft to capitalist work this level of autonomy is restricted to capital alone as the automatic subject. The craftsman or artisan can only survive as she is able to sell her labour power in the market for a price, and to purchase her own means of reproducing that labour power. Her labour power is only capital in the hands of the capitalist. The worker is not able to make use of her skills, but sees these subsumed under the means of production of the capitalist class. She is therefore alienated from both her own labour power, which is used by the capitalist to extract surplus value, and from herself. The academic’s/student’s/worker’s skills are never their own autonomous capital. If they were human capital then they would be capable of returning interest. However, the academic/student/worker has to labour; she cannot live off the revenue that accrues from her alleged human capital.

There is no choice for the academic/student/worker but to labour as a form of coercion, and to upskill as an entrepreneur as a form of coercive practice. It is in-part as a negation of this coercion that we witness new “site[s] of occupations, strikes, road blocks and picket lines as students and workers rally against privatization.” Whilst these are related to specific issues to do with 3cosas, outsourcing, the privatisation and enclosure of university space, or cops off campus, as NovaraMedia note this is a specific reaction to the political management of austerity that is aimed as the dispossession of public, free space and time. It is designed to mobilise lives around the search for money. As Joseph Kay notes, this has ramifications for the idea of the University:

the choice to be inside the university is disappearing. Whether by escalating indebtedness, involuntary outsourcing, or indeed, summary suspension for political activity, exclusion from the university is making a comeback. At the same time, whether to be against the university is also becoming less of a choice, since the university, at least in its present form, is increasingly against us.

We confront the university less and less as a place of an idealised ‘Education’, and more and more as an exploitative boss, a spendthrift landlord, a creditor, and an instigator of violent repression. The blood on the pavement at UCL symbolises this shift.

Blood on the pavements of our universities is a marker that the State and its institutions will impose acceptance of indenture and a shift in incomes from the poor to the rich, and from the UK to London, and an attrition on real wages, and precarious employment, and ballooning unemployment, and the overcoming of stagnation through financial asset booms, credit-fuelled property ownership and exorbitant bourgeois consumption.

This reminds me that I wrote two years ago, pace John Holloway, about exodus either by Capital from any University that was in opposition to the dictates of the market, or by academics from the University as it was reinscribed for value:

The argument against this is that the constitutional view isolates the [University] from its social environment: it attributes to the [University] an autonomy of action that it just does not have. In reality, what the [University] does is limited and shaped by the fact that it exists as just one node in a web of social relations. Crucially, this web of social relations centres on the way in which work is organised. The fact that work is organised on a capitalist basis means that what the [University] does and can do is limited and shaped by the need to maintain the system of capitalist organisation of which it is a part. Concretely, this means that any [University] that takes significant action directed against the interests of capital will find that an economic crisis will result and that capital will flee from the [University] territory.

In the face of this reality, and that of cops on campus, I went on to state that:

Yet the University remains a symbol of places where mass intellectuality, or knowledge as our main socially-productive force, can be consumed/produced and contributed to by all. The University remains a symbol of the possibility that we can create sites of opposition and ontological critique, or where we can renew histories of denial and revolt, and where new stories can be told, against states of exception that enclose how and where and why we assemble, associate and organise.

Increasingly I doubt that this is the case. Increasingly I believe that the game is up, and that the crucial actions now is liberating participatory knowledge, practice, skills and organising principles, and forming co-operative associations that can begin to describe alternative forms of value beyond the market. As I wrote at the time of the last set of occupations:

academics need to consider their participatory traditions and positions, and how they actively contribute to the dissolution of their expertise as a commodity, in order to support other socially-constructed forms of production. How do students and teachers contribute to a re-formation of their webs of social interaction? How do students and teachers contribute to workerist and public dissent against domination and foreclosure?

As Kay notes: “we need to take the rage, and direct it into agitating and organising in our everyday lives.”

In this, Michael Roberts argues that we need to discuss value and organisation:

we must replace a system of production for profit and a society based on greed and self-interest with one that is commonly owned and planned for the needs of all and based on cooperation and support.

Academics need to consider how they contribute to a discussion about social reproduction that is post-capitalist co-ordination. That enables a “postcapitalist imagination”. The social is clearly possible, and we have countless examples of dissent and alternatives to neoliberalism, like: that currently being worked through in Ecuador; or in the ALBA grouping of nations; or in the Mondragon Co-operative; or in the Paris Commune; or in solidarity economies; or in the Social Science Centre; where the social relations of production might be refocused around associated workers rather than associated capitals. These examples, and those of students in occupation, offer hope that new social mechanisms or organising principles, which in turn enable solidarity networks to manage direct decision-making, might enable a transition to a different institutional structure as part of a transition to a complex, post-capitalist society.

In managing co-ordination, we might look at co-opting the principles of the very organisations in which we work, namely universities as pivots for associations of capitals. These associations not only produce means of production but also organise other means of production as inputs in a larger, networked production process. How might those principles, and in fact those means of production be co-opted and traded for use rather than exchange? The capitalist organisation of the University as an association of capitals addresses co-operation in terms of command and control. How might we co-opt this for co-operative ends and to create solidarity networks that might help us to manage issues of energy availability, climate change, poverty and so on, and more broadly the transition to a post-capitalist world? Where and how might academics and students recover their labour as a “postcapitalist imagination”?


Technology and co-operative practice against the neoliberal university

I’m presenting at the the CAPPE Neoliberalism and Everyday Life conference next September, at the University of Brighton. My abstract is below.

Abstract: Neoliberalism is a global pedagogical project aimed at the dispossession of free time so that all of life becomes productive, and education is a central institutional means for its realisation. This project aims at marketising all of social life, so that life becomes predicated upon the extraction of value. In part the deployment of technologies, technical services and techniques enables education to be co-opted as an institutional means for production and control. This occurs inside both formal and informal educational institutions and spaces, like universities and MOOCs, as one mechanism to offset the tendency for the rate of profit to fall and to re-establish accumulation. This pedagogic project also tends to recalibrate and enclose the roles of staff and students as entrepreneurial subjects, whose labour is enabled through technology. This is achieved through learning analytics, big data, mobility and flexibility of provision, and so on. This paper will analyse the relationships between technology, pedagogy and the critical subject in the neoliberal University, in order to argue for the use of technology inside a co-operative pedagogy of struggle. This demands that we ask what education is, before we ask what it is for, or the place of technology-enhanced learning in the university. The article considers whether it is possible to uncover stories of how and where education might be used for co-operation rather than competition, and what technology-enhanced co-operative education might look like?


On circuits of affect and resistance

This post was written whilst listening to LCD Soundsystem’s last concert at Madison Square Garden.

ONE. Circuits of affect and resistance

Yesterday I attended an ESRC seminar series on Digital Policy: Connectivity, Creativity and Rights. The seminar was on Affective Digital Economy: Intimacy, Identity and Networked Realities. One of the key points that emerged from the day was the need to reconnect a political critique into the lived realities of social spaces like the Allsorts Youth Project, or in work related to transnational communications amongst a diaspora, or where we are thinking about the relationships between spaces, surveillance and mental health. In particular the event had me considering how we abstract the specificities of our individual or community-based struggles, in order:

  1. To find sites of solidarity that enable us to push back against the alienation of capitalist work and the marginalisation or labelling of our identities;
  2. To recognise how we might resist capital as the automatic subject, from the standpoint of labour;
  3. To understand and analyse the relationships between affects, cognition and kinaesthetics, and how they are captured and then subsumed under the circuit of production.

One outcome of this is the extent to which we might see the social circuits of affect or emotion, not as a means for converting immaterial labour into the commodity form, but as a mechanism for refusing and then interrupting the circuits of production, commodity or money capital. This might be done by revealing our systemic alienation from the products of our labour, from our labour itself, from ourselves and from our species-being. Or it might be done by opening-out spaces for sharing rather than trading, and for use-value rather than exchange-value. Or it might be done by redefining the organising principles on which technological systems, technologies and data are used, so that they are co-operative rather than marketised and securitised. Or resistance and pushing-back might be something else entirely.

TWO. Some notes on affect, immaterial labour and cognitive capital

One of the points of contention during the day was whether affect or emotion was a commodity or could be commodified. From my perspective, there was a large amount of confusion around this point, and it connects affect, cognitive capital and immaterial labour. For Beradi, a focus on affect or emotion reveals the mechanisms through which the human soul is commodified through data, databases, being always-on, perceived speed-up, network-centrism and so on, and can thereby be put to work. In this Autonomist tradition, the autonomy or ability of globalised labour to develop its own self-awareness and to utilise technology to act for-itself is critical. Thus, feeling is critical. Here there is no outside of capitalism, and overcoming the alienation of capitalist work demands mechanisms that push back against it, and structures that are beyond its value-form. This idea of negating capital from the point-of-view of the working class as revolutionary social subject is revealed in the epithet in-against-beyond, and predicates critiques of the structures that reproduce capitalism’s domination, like the State and its educational institutions. It is important to recognise that in this view capital needs labour in order to be valorised, but labour does not need capital and is therefore potentially autonomous. This self-awareness or subjectivity is not automatic and demands a co-operative species-being that is cognitively, affectively and kinaesthetically aware.

In classical Marxism, material production forms the basis of all social life and drives the objective history of capitalist social relations. However, radical shifts in technology are important because they revolutionise the valorisation process. For Marx, the magnitude of the value of labour is driven by the labour-time that is socially necessary to produce a specific commodity ‘under the conditions of production normal for a given society and with the average degree of skill and intensity of labour prevalent in that society’ (Marx 2004, p. 129). Thus, academic labour is particularly valuable as a result of the amount of socially-necessary labour-time embedded in its products, which integrate specialised cognitive and material means of production. This promises the capitalist high rates of surplus value extraction or rental income from patents or licenses. However, the people and skills that support such high-end commodity capitalism, are both menial and leverage, and can be made precarious or be outsourced. One outcome of this cognitive work is a view that the material, objective world is replaced by a subjective immateriality that is increasingly inscribed digitally, and which suggests a limitless expansion of the system across the social factory.

Therefore, inside education a focus on immateriality encourages an analysis of the struggle between labour and capital in the creation and commodification of what is termed cognitive capital. Technology is a critical force in the production and accumulation of cognitive capital because it as Žižek notes, it ‘reduces everything to functions and raw materials’, with the result that individual emotions and affects, cultural cues and mores, and the construction of the relations between individuals ‘are themselves the very material of our everyday exploitation’. Educational contexts are vital in enabling capital to find circuits for extracting value from socio-emotional or personalised learning, using technologies like smartphones or personal learning networks. These mechanisms enable capital to enclose and commodify an increasingly fluid and identity-driven set of social relations, which themselves form the basis of further exchange. These processes of exchange are catalysed by, for example, the sharing of personal information on cloud-based social networks that can be aggregated and data-mined. Thus, all activity or work inside the social factory, including the processes of learning serve as the basis for developing new services and applications. For Beradi (2009, p. 90) this construct emerges across the length, breadth and depth of cyberspace from the immaterial labour of knowledge-workers who

move to find signs, to elaborate experience, or simply to follow the paths of their existence. But at every moment and place they are reachable and can be called back to perform a productive function that will be reinserted into the global cycle of production. In a certain sense, cellular phones realize the dream of capital: that of absorbing every possible atom of time at the exact moment the productive cycle needs it. In this way, workers offer their entire day to capital and are paid only for the moments when their time is made cellular. Info-producers can be seen as neuro-workers. They prepare their nervous system as an active receiving terminal for as much time as possible. The entire lived day becomes subject to a semiotic activation which becomes directly productive only when necessary.

In this view, social relations are increasingly structured by technically-mediated organisations like schools and the University, which then re-inscribe socio-political hierarchies that are increasingly technological, coercive and exploitative. This coercive and exploitative set of characteristics is driven by the competitive dynamics of capitalism, and especially the ways in which the socially necessary character of the labour-power expended in producing a particular commodity or innovation or technology is diminished over-time. This reduces the value of knowledge and specific immaterial skills in the market, resulting in a persistent demand to innovate, to become entrepreneurial or to hold and manage proprietary or creative skills.

Thus, constant innovation becomes a central pedagogic project, for instance in: monitoring and stimulating cognition through pervasive technology and mobility; enforcing private property rights through intellectual property and patent law so that a knowledge-rent economy can take hold; opening-up public data and knowledge so that new cloud-based services based on learning analytics can be developed and marketised; amplifying innovations around internationalisation like MOOCs and open educational resources so that world markets of consumption and production of commodities and cognitive capital are opened-up; and organising, disciplining and exploiting an immaterial workforce, orcognitariat’. This is a terrain of conflict, especially as the processes that deliver cognitive capital involve the development of cyborgs or the fusing of objectivised, fixed machinery and human subjects. Instead of the promised technologically-fuelled reduction in toil and labour-time, technology ‘suffers a dialectical inversion and becomes the most unfailing means for turning the whole lifetime of the worker and his family into labour-time at capital’s disposal for its own valorisation’ (Marx, 1993, p. 532).

In the Autonomist tradition, the concept of immateriality is tied to the production of living knowledge, or the general intellect, which offers a theoretical tool to analyse the transformation of labour and knowledge production through the integration of science and technology across society. Thus, it is important that the immaterial world of capital, in which it is believed that accumulation can occur without material production, is inverted so that the fetishised myth of technology as the creator of value is replaced by an analysis of co-operative, socialised labour-power. This can be revealed through a critique of Marx’s (1993) concept of the general intellect, inside-and-against a networked, globalised production/consumption process, as it emerges as mass intellectuality.

THREE. Some criticisms of immateriality or affective capital

Criticisms of Autonomist Marxism have focused on its apparent network-centrism and its concomitant disconnection from the hierarchical, globalised forces of production that shape our objective social reality. The same is also true of those who would make claims for affect or emotion as commodity, or themselves as the source of value (see below Camfield, 2007; Davies, 2011; Robinson, 2004). In particular, there is a tendency to forget the realities of privatisation and outsourcing to the global South, and for the accumulation of natural resources, like rare earth metals, oil and coal, and human capital from that same space, alongside cataclysmic environmental despoilation. Thus, as Camfield (2007, p. 31) argues

biopolitical labour… fails to make distinctions between the different forms of production involved in the production of all that falls within the scope of ‘social life itself ’. In a highly abstract sense, it is possible to talk of labour producing goods, services, social relations, and human subjectivities. Yet it is essential to be able to distinguish the production of ourselves as human subjects through our relationships with nature and each other in determinate socio-material conditions and particular historical moments from the production by humans of, say, microprocessors. Very different kinds of production processes and products are involved. Labour is at the heart of them all, but at different levels of abstraction and in different social forms.

Moreover, entrepreneurial education and the promise of technology in the global North support precarious work and hyper-exploitation for those without proprietary skills, alongside reinforcing transnational hierarchies. Thus King (2010, p. 287) notes that ‘From a structural perspective, even with the transformative powers of digital technology, we are not moving into a post-capitalist age. The fundamental property relationships that underpin the class structure remain intact and have sharply intensified.’ The question is whether and how the connections between sites of exploitation including education and technology can be made.

What might be noted of the Autonomist approach is that its broader categories enable a critique of capitalist work in the networked society, which point to how the whole of human life is systemically enclosed and mined for new services. The connections between immaterial or affective labour in the production of cognitive capital, and their connections to the broadening and deepening of the accumulation of value across the whole of society restructured as a factory, point towards the mechanisms through which technology-rich educational settings are co-opted for work.

When we use the term capital, we might reflect on how it is not only value-in-motion, but also an alienating social relation based on specific, totalising organising principles that are themselves coercive. Any notion of choice, ethics, morals, identity, empowerment, agency and so on, can only emerge as objectified or alienated inside and subjugated through this totality. So affective capital points to asymmetrical power relations, separation, alienated labour and being, and fetishized relations. For example, for a community forced out of its homeland by war, that maintains contact via a synchronous technology like skype, we might ask how they and those of us who tolerate this state-of-being are alienated at each point by capital: in the geographical struggles for means of production that drive war; in the struggle for self-worth and betterment that force us to migrate to earn a wage to subsist; in the promise of a better life that can only exist as capitalist work and the entrepreneurial or neoliberal self; in the fetish of familial or communal connection through the use of technology. In each case, those communities are separated from the land, from their labour, from their society and ultimately from themselves.

One problem of the use of terms like affective capital is that it risks reducing people to human capital or means of production, which are themselves dehumanising. We risk accepting our alienation through its temporary and marginal technological amelioration. Perhaps what is needed is a critique of the forms of political economy/political debate/politics of austerity/war that force us to view human lives and society as restricted by the idea of economic/exchange value. What is certainly needed is a recognition that the forces of production across capitalist society, which are increasingly restructuring all of life as means of production, are also increasingly ranged asymmetrically against the everyday experiences of young people. The question for academics is how to support both critique and the development/nurturing of alternative forms of society that in-turn push-back against the neoliberal agenda that commodifies humanity, including through the co-option and subsumption of affect or emotion or “the subject”.

FOUR. Some references on Autonomia or affect or immateriality

Amsler, S., and M. Neary. 2012. Occupy: a new pedagogy of space and time? The Journal for Critical Education Policy Studies 10, no. 2: 106-38.

Arviddson, A. 2007. Ethical Economy. P2P News 156. http://integralvisioning.org/article.php?story=p2p156.

Beradi, F. 2009. The Soul at Work: From Alienation to Autonomy. Transl. F. Cadel and G. Mecchia, with preface by J.E. Smith. Los Angeles, CA: Semiotext(e).

Bonefeld, W. 2010. What is the alternative? Shift Magazine 11. http://shiftmag.co.uk/?p=400.

Burston, J., N. Dyer-Witheford, and A. Hearn. 2010. Digital labour: Workers, authors, citizens. ephemera 10, no. 3/4: 214-221

Camfield, D. 2007. The Multitude and the Kangaroo: A Critique of Hardt and Negri’s Theory of Immaterial Labour. Historical Materialism 15: 21-52.

Casarino, C. and A. Negri. 2008. In Praise of the Common: a conversation on philosophy and politics. Minneapolis, MI: University of Minnesota Press.

Cleaver, H. 1992. The Inversion of Class Perspective in Marxian Theory: From Valorisation to Self-Valorisation. In Open Marxism, Vol. 2, Theory and Practice, ed. W. Bonefeld, R. Gunn, and K. Psychopedis, 106-44. London: Pluto Press.

Cleaver, H. 2002. Reading capital politically. Edinburgh: AK Press.

Davies, J.S. 2011. Challenging Governance Theory: From Networks to Hegemony. London: Policy Press.

Deleuze, G., and F. Guattari. 1983. Anti-Oedipus. London: Penguin.

Deleuze, G., and F. Guattari. 1987. A Thousand Plateaus. London: Continuum.

Dyer-Witheford, N. 1999. Cyber-Marx: cycles and circuits of struggle in high-technology capitalism. Chicago, IL: University of Illinois Press.

Dyer-Witheford, N. 2004. Autonomist Marxism and the Information Society. Canberra: Treason Press. http://libcom.org/library/autonomist-marxism-information-society-nick-witheford.

Dyer-Witheford, N. 2010. Digital labour, species-becoming and the global worker. ephemera 10, no. 3/4: 484-503.

Dyer-Witheford, N., and G. de Peuter. 2009. Games of empire: global capitalism and video games. Minnesota, MI: University of Minnesota Press.

EduFactory (2013). EduFactory. http://www.edu-factory.org/wp/.

Foucault, M. 1977. Discipline and Punish. New York: Pantheon.

Foucault, M. 1990. The History of Sexuality. New York: Pantheon.

Guattari, F., and A. Negri. 1985. Communists Like Us: New Spaces of Liberty, New Lines of Alliance. New York, NY: Semiotext(e).

Hall, R., and B.C. Stahl. 2012. Against Commodification: The University, Cognitive Capitalism and Emergent Technologies. tripleC: Cognition, Communication and Co-operation 10, no. 2: 184-202.

Hardt, M., and A. Negri. 2000. Empire. Cambridge, MA: Harvard University Press.

Hardt, M., and A. Negri. 2004 Multitude: War and Democracy in the Age of Empire. London: Penguin.

Holloway, J. 2002. Change the World Without Taking Power. London: Pluto Press.

King, B. On the new dignity of labour. ephemera 10, no. 3/4: 285-302.

The London Edinburgh Weekend Return Group. 1980. In and against the state. London: Pluto Press.

Marazzi. 2008. Capital And Language: From the New Economy to the War Economy. Los Angeles, CA: Semiotext.

Manzerolle, V. 2010. The Virtual Debt Factory: Towards an Analysis of Debt and Abstraction in the American Credit Crisis. tripleC: Cognition, Communication and Co-operation 10, no. 2: 221-36.

Marx, K. 1993. Grundrisse. Foundations of the Critique of Political Economy. London: Penguin.

Miller Medina, J.E. 2005. The State Machine: politics, ideology, and computation in Chile, 1964-1973. Unpublished Ph.D. thesis, MIT. http://dspace.mit.edu/handle/1721.1/39176.

Neary, M. 2010. Student as producer: a pedagogy for the avant-garde? Learning Exchange, 1 (1). http://learningexchange.westminster.ac.uk/index.php/lej/article/view/15.

Neary, M. 2012. Teaching Politically: Policy, Pedagogy and the New European University. The Journal for Critical Education Policy Studies 10, no. 2: 233-57.

Negri, A. 1988. Revolution Retrieved: Selected Writings on Marx, Keynes, Capitalist Crisis and New Social Subjects, 1967-83, trans. E. Emery and J. Merrington. London: Red Notes.

Negri, A. 1989. The Politics of Subversion: A Manifesto for the Twenty-First Century. Cambridge: Polity Press.

Negri, A. 1991. Marx Beyond Marx: Lessons on the Grundrisse. New York, NY: Autonomedia.

Newfield, C. 2010. The structure and silence of Cognitariat. EduFactory webjournal 0: 10-26. http://www.edu-factory.org/edu15/webjournal/n0/Newfield.pdf.

Novara Media. 2013. Immaterial Labour Isn’t Working. NovaraFM 2 (38). http://novaramedia.com/2013/04/immaterial-labour-isnt-working/.

Robinson, W.I. 2004. A Theory of Global Capitalism: Production, Class, and State in a Transnational World. Baltimore, MA: John Hopkins University Press.

Roggero, G. 2011. The Production of Living Knowledge: The Crisis of the University and the Transformation of Labor in Europe and North America. Philadelphia, PA: Temple University Press.

Thorburn, E. 2012. Actually Existing Autonomy and the Brave New World of Higher Education. Occupied Studies. http://bit.ly/xzcPRO.

Tiqqun. 2001. The Cybernetic Hypothesis. http://bit.ly/mTWhMI.

Tronti, M. 1971. Operai e Capitale. Einaudi: Turin.

Tronti, M. 1979, Lenin in England. Red Notes Working Class. Autonomy and the Crisis. London: Red Notes.

Vercellone, C. 2007. From Formal Subsumption to General Intellect. Historical Materialism 15: 13-36

Virno, P. 2001. General Intellect. http://www.generation-online.org/p/fpvirno10.htm.

Virno, P. 2004. A Grammar of the Multitude. Los Angeles, CA: Semiotext(e).

Wendling, A. E. 2009. Karl Marx on Technology and Alienation. London: Palgrave Macmillan.

Winn, J. 2012. Open Education: From the Freedom of Things to the Freedom of People. In Towards Teaching in Public, ed. M. Neary, H. Stevenson, and L. Bell, 133-47. London: Continuum.

Winn, J. 2013. Tag Archive: Immaterial Labour. http://josswinn.org/tag/immaterial-labour/.


On Autonomist Marxism and the affective economy

I’m speaking on 29th November at an ESRC seminar series on Digital Policy: Connectivity, Creativity and Rights. The seminar is on Affective Digital Economy: Intimacy, Identity and Networked Realities.

Whilst Josie Fraser will be speaking about our Digital Literacy Leicester Framework Project, I will briefly develop a critique rooted in political economy. My own thinking in this area is derived from a reflection on the autonomist Marxist position that relates the affective domain and network governance to core concepts of the social factory, immaterial labour and cognitive capital, the general intellect and mass intellectuality, and the cybernetic hypothesis. I am interested in how these concepts enable a critical reading of socio-economic developments in information and communication technology. This is particularly important in enabling a critique of the place of education and technology inside the circuits and cycles of globalised capitalism, which is too easily defined as frictionless and networked in the face of the hegemonic realities of hierarchical, transnational forces of production. So my take is that we might use these categories of affective labour etc. to critique how technology-rich educational settings are co-opted for work, in order that possibilities for pushing back against the subsumption of life for capitalist work might be developed.

The seminar offers a space to discuss this theoretical framework/the development of alternatives in the context of the following two questions:

*  Who are the major actors currently shaping this economy and how?
*  What are the major dangers and risks in affective digital economy?

This is especially so in the context of the intention of the ESRC seminar series that: “At this moment of potentially profound changes in policy and practice, it is crucial to bring together actors with contrasting interests and perspectives to help inform and stimulate further debate and research.”

NOTE: the Occupied Times provides quite a nice description of how our consumption of technologies, and our disengagement or anaesthetised view of them as empowering, is totally disconnected from the material realities of their production. So our circuit in space-time of the consumption of technologies and the affective production of digital artefacts, fails to connect or recognise the everyday realities of the appropriation of lives and livelihoods that exists either in the mines that produce the raw materials (Tin, Coltan etc.) that go into our consumer technologies or the factories that build them. The clean outer shells of our hardware and software tools distance us from the immiseration of other human beings and forms a layer of false consciousness. Beneath the cloud and inside the tablet lies a proletarianised hell, reinforced with every click.

For the citizen and end-user, the experience of technology throughout post-WWII decades has been one of increasing degrees of separation between the internal blood and guts of the machine – from hardware to code – and the soft, alluring outer shell of the commodity form. All the traces of isolation and alienation that stem from this formula place an increasing number of steps between the immediate sensory encounter and the reality of the machine.

To catch a glimpse of the world removed at the heart of this machine, consider this century’s resources warfare in Congo. With the tech sector operating on the back of corporate appetite, the pressure to produce is carried from the drawing boards of Silicon valleys to the point of production’s material origin. In Congo, where demand for hi-tech device resources such as Tantalum has escalated in recent years beyond the capacity to supply, this pressure has only served to fuel the wider conflict over the control and appropriation of these resources. This situation is estimated to have claimed the lives of more than 5 million people, making it the world’s deadliest conflict since the second world war.

Here we can trace commodified communications technology born from the arse-end of violence to the mouth of your receiver. From ass to mouth – the food chain of 21st century technology production crosses gulfs, from violence to exploitation, until reaching civility; a history revealed only through the will to examine the world beneath the shimmering electronic propaganda of the new Samsung or Apple device.

We find ourselves removed from the very tools we use, encountering an unarticulated domain between production and use. The space-time contours of everyday social life are dramatically revised. This is especially true in our use of technology and how we mediate our relationships with the ‘real world’, as it becomes harder and harder to define and separate our technological identities from the idea that we also exist ‘in real life’. Our agency, as political beings, flows in between these spaces; interacting and composing itself from the vast caches of information that circulate on the network while at the same time being coerced by the near-universal grammar of our state of technology.


Notes on the University and the association of capitals

ONE. Elsewhere on this blog I recently wrote about the domination of merchants in higher education:

The links between commercial educational providers and universities, educators and students as producers and consumers of educational services, data and products, demonstrate power and dependency. This complex interdependency is not reducible to fetishized ideas of money via cost-savings or emancipation based on learning for a life of capitalist work. It links to ideas of the reproduction of capital within limits or barriers, and the current condition inside-and-against education demonstrates how crises re-establish the limits and conditions existing in the system as a totality and in the circuits of productive, money and commodity capital. Moreover, we are witnessing the attempt by finance and commercial capital to synchronise production with their own circuits. This is an uncomfortable symbiosis, as those of us engaged in a higher education that is being restructured by the dictates of finance capital and a new market can attest.

What is becoming more clear is the formation of associated capitals, in the form of public/private education providers, finance capital, brokers of educational services, technology firms, venture capitalists and so on, engaging in a public policy space designed to leverage accumulation and growth. These associated capitals might form transnational activist networks; they might be working in competition. The key is opening-up new markets.

TWO. The Leadership Foundation for Higher Education is hosting a conference Moocs: What we have learned, emerging themes and what next? The conference states that it “will take a critical look at how online and open access learning has evolved during the last year, with a particular consideration of the development of Moocs in both the US, India and Europe.” The speakers at the event are from MOOC providers or are champions of MOOCs as mechanisms for creating a market for educational services and commodities from the global North, for driving down academic labour costs, and for identifying and extracting surplus intellectual capital both inside and beyond the University. The conference is about problem-solving, rather than developing a critique of the idea of “open” or “open learning” or the MOOC phenomenon in light of critical pedagogic practice. Its aims and the biographies of those who are speaking reinforce both hegemonic educational power and the idea that “open” must be used to colonise and monetise higher education. Its aims are to:

  • Evaluate critically case studies in the rapidly unfolding landscape of Moocs and open access learning;
  • Participate in discussions with practitioners of Moocs and new models of open access learning;
  • Consider how these transformations are already affecting higher education provision in the US, UK, India and elsewhere, and to examine institutional and student;
  • Further evaluate the potential for integrating Moocs into university degrees;
  • Consider existing and new revenue models for Moocs.

Recent analyses of the impact of venture capital, higher education bubbles and return on investment, related to Coursera and Udacity do little to assuage the overarching momentum to use “open” or MOOC or whatever as a lever in the struggle between social forces. In any case, the role of new markets like the Chinese in those spaces is still unclear. Any educational technology failures are less to do with pedagogic failings and more closely tied to the political economic realities of a restructuring of higher education for the market. Organisational change and technology are key levers in this process, and their transformational appeal was highlighted by Gartner’s statement that Worldwide IT spending is projected to total $3.7 trillion in 2013. One might also reflect on Gartner’s note that we are witnessing increasing “innovation in personal and competitive business ecosystems” that impact “the labor content of services and products.”

Ecosystems; associated capital; entrepreneurialism; competition; growth; new markets; labour arbitrage; higher education.

THREE. Andrew McGettigan has recently argued that we are witnessing market creation out of control in UK higher education. He notes

The government exploited the existing ‘designation’ process to allow students at over one hundred private higher education providers to access student support on terms equivalent to those enjoyed by students at established universities, with the exception that since 2012/13 those students have been only able to borrow up to £6,000 per year towards tuition fees (up from £3,375 in 2011/12).

The cost to the Government “has been £80m over budget. With 30 000 students registered that year for the HNC and HND qualifications offered by Pearson-Edexcel through private colleges (the equivalent of one or two years of undergraduate study), that represents an 150 per cent increase in such students on the previous year.”

McGettigan asks “why does this matter” and argues:

Private providers can currently recruit how they like and, once designated, their Home and EU students have the right to access the publicly backed student loans (EU students can apply for tuition fee loans only).

The loan scheme is subsidised – only 65p in the pound is expected back. Public money is therefore involved.

Many private HE providers are commercial, for-profit operations – some like, Greenwich School of Management or University of Law are owned by private equity – so public money subsidises private fees and potentially profits.

As we saw in the USA, the private sector expands rapidly when backed by public money. Where will this money end up?

Further, we have no understanding of the performance of graduates from private institutions – they may end up paying back much less and so be subsidised to a greater degree

It also transpires that in order to introduce some control to the budget, the public teaching budget will have to be reduced by £20m – this is likely to come out of the budgets of widening participation initiatives. And £25m goes from the Access to Learning hardship fund. That is, students at established universities will suffer as a result.

In education, the public and the private dance out of time. The private is used to speed-up change, and acts as a disciplinary lever on public goods and issues of equality. In this, the State demonstrates its commitment to profit through competition above all else.

THREE. A recent Ernst & Young Global Limited report on China’s productivity imperative noted that there is increasing doubt that China will provide the sanctuary for long-term growth in higher education from the global North. It reports as follows.

A gloomy global macroeconomic outlook, particularly for Europe and the United States. That has already had considerable impact on the Chinese economy as export growth to key markets in Asia, Europe, and North America has slowed significantly since 2010. The worst is Europe, where exports have recently started falling, causing revenues flowing to China’s industrial sector to slow. China’s productivity growth has also fallen. Growth in total factor productivity has dropped from an annual average of 4.7 percent in 2001-07 to 2.8 percent in 2008-10. Earlier rounds of market liberalization and privatization have largely run their course, and the mass reallocation of labor from low productivity agriculture to higher productivity manufacturing is coming to an end.

The report notes that “Raising productivity is critical for China’s economic future as the experience of other East Asian economies shows that capital-driven growth is not sustainable.” Thus, it argues that:

By harnessing the following sources of productivity, we believe that companies can maximize efficiency and drive a new round of profitable growth across the economy:

Take advantage of structural changes such as reforms to lower market barriers and the opening up of new industries to investment.

Maximize the benefits of information technology by making better use of data, improving communication, and enhancing speed and flexibility.

Exploit technological catch-up by combining different existing technologies and adapting them for China’s needs.

Increase the pace of talent development, deploy talent to the highest-value opportunities, and improve the way workers engage with each other.

Meanwhile, Phoenix Capital Research recently focused on The China Crisis You Haven’t Heard About, and stated

In the near-term, China will engage in capital investment (the substitution of capital, technology and information for labor) to drive economic growth. This means the Chinese Government throwing money at the manufacturing, information technology and healthcare sectors in its economy.

The global North’s increasing obsession with on-line learning as a lever for growth has to be seen in light of the use of organisational development and technology to drive labour efficiencies and to lower market barriers. Capital investment, the creation of a reserve army of labour with interchangeable and low-waged commodity and leverage skills, the extraction of rents, and the creation of an entrepreneurial class form a conjuncture with this need to create a global market for higher education goods and services.

FOUR. In Volume 2 (Chapter 16) of Capital, Marx discusses the turnover of variable capital including the impact of working class consumption on that process. He argues that capital advanced as wages ceases to be capital and instead forms the means of subsistence or social reproduction. The mass of commodities that is “annihilated” is consumed unproductively – it maintains labour power but does not produce surplus value. However, Marx argues that speculation both in the creation of a skilled labour force that is able to be thrown into the production process, and in the accumulation and valorisation of capital, tends to push consumption and wages up, and this in-turn tends to be followed by a crash. This restructuring of the flows of capital then reveal a deeper and more permanent problem or contradiction, namely how can capitalists sell their products when the mass of the population is impoverished?

In terms of higher education, we witness the mechanisms through which policy and practice becomes entangled with relationships to distant/new markets through on-line education, and to the idea of the student as an entrepreneur. Marx argues that credit markets, witnessed in the form of indebted study are critical in enabling the expansion of markets into social or public goods like education, and across new geographical terrains. In Chapter 16 of Volume 2 he points up the:

Contradiction in the capitalist mode of production. The workers are important for the market as buyers of commodities. But as sellers of their commodity – labour-power – capitalist society has the tendency to restrict them to their minimum price.

Further contradiction: the periods in which capitalist production exerts all its forces regularly show themselves to be periods of over-production; because the limit to the application of the productive powers is not simply the production of value, but also its realisation.

However, the sale of commodities, the realisation of commodity capital, and thus of surplus-value as well, is restricted not by the consumer needs of society in general, but by the consumer needs of a society in which the great majority are always poor and must always remain poor.

At issue is the relationship between credit markets and individuated debt, the student’s needs to prove she has the entrepreneurial skills to survive and reproduce herself in a global and stratified labour market, the collapse in real wages and graduate earnings, and the idea of the University as a competitive space scored through with a need to extract surplus value and generate profits. How is the indebted individual defined and conditioned socially through a marketised education? What might be our collective response?

In addressing this issue, just as Capital develops its productive power through association, co-operative forms mights also point towards labour’s self-actualisation. William Thompson’s, Inquiry into the Principles of the Distribution of Wealth, (p. 453) argued that socially significant wealth is not that which is accumulated either as real assets or appropriated as claims on future labour, in the form of legal titles, interest rates. Thompson (p. 443) argued that:

In almost all other systems, the productive forces have been considered with reference and in subordination to accumulation and to the perpetuation of existing mode of distribution. Compared with the conservation of this existing mode of distribution, the ever recurring suffering or welfare of the entire human race is not considered worthy of a glance. To perpetuate the results of force, of fraud, and of accident, this has been called security, and for conservation of this lying security, all the forces of production of the human race have been mercilessly sacrificed.

He stated that it was “the forces of production and their free development in the future” that offered hope for co-operative forms of distribution and for co-operative labour. Thus, the recent piece by the Social Science Centre in Lincoln offers a different perspective on what is co-operatively possible at a different, local scale.

FIVE. Technological and organisation changes focus upon reducing the amount of capital needed to produce surplus value. Thus, capitalists adopt techniques that keep labour and capital fully employed, and as a result we witness a history of innovations related to reducing production time or working time. However, in Volume 2 of Capital, Marx also looks at the ways in which capitalists attempt to use innovations in spatial organisation, transport and communications, to reduce circulation time and to increase the geography of capital accumulation.

In the Communist Manifesto, Marx and Engels argue that the need to create and enable capital flows, accumulation and spaces for further valorisation, results in “The need of a constantly expanding market for its products [which in turn] chases the bourgeoisie over the entire surface of the globe. It must nestle everywhere, settle everywhere, establish connexions everywhere.” One result is that bourgeois, transnational and cosmopolitan consumption triumphs over local, national cultures, and industries that are defined by productivity and intensity dislodge indigenous cultures.

One example of this process is the subsumption and enclosure of intellectual property produced commonly and embedded in technologies and processes as what Marx called “mass intellect”. Thus, Wikileaks recently leaked a secret draft of the Trans-Pacific Partnership, a free trade agreement between twelve markets representing 40 per cent of the global economy. The leaked chapter on intellectual property rules demonstrates that the United States is pushing to make its Intellectual Property regime the standard for these markets. This focuses upon the adoption of existing US laws, to protect commodities like patents for pharmaceuticals or digital artefacts like movies or educational content. The Electronic Frontier Foundation fears that the IP section will limit on-line freedom.

In the Communist Manifesto it is argued that the Bourgeoisie, though its new powers of production and its commodities and its restructuring of laws, inscribes new, global markets into the circuits of production, and creates a world in its own image. This echoes Marx’s argument in the Grundrisse that the hegemony of the bourgeois mode of production rests on the expansion of a global system of valorisation, which in turn demands that commodities are not simply used but exchanged. This process of exchange demands the spatial transformation of productive forces, including transport and modes of communication. Thus, Capital drives beyond its spatial barriers and we see the “annihilation of space by time”, as circulation time and labour time are revolutionised to give quicker access to new markets.

In this process, the deployment of open, on-line tools are critical and pedagogical. They enable capital to reduce the friction of distance and speed that exists across educational and social spaces They also reduce the costs of educational service and commodity production by collapsing the relative locations of places and infrastructures. For instance, MOOCs enable concentrations of both cognitive labour and associated capital that then lead to efficiencies. Thus, universities working with private educational providers and technology companies form an example of agglomeration economies that enable the relocation of higher education in the global North to new markets. Public policy, in creating a local and global higher education market, draws in further educational functions. Moreover, flattened costs and precarious employment underwrite a more competitive landscape for all higher education providers, reinforced by the agencies like the World Bank and World Trade Organisation.

SIX. Thus, we might analyse the idea of the University, inside-and-against the organisational and technological innovations that drive the speed-up or acceleration of turnover time of educational services and commodities in a global market. These innovations include the subsumption of the University inside associations of public/private capitals, in order to secure their competitive place. These innovations also tend to reduce the friction caused by distance and localised working practices. We might then ask what is the popular response to this process? Does the Social Science Centre offer one such popular response? It states that:

while there are fewer existing networks of solidarity than might exist in larger cities, there is also an intimacy and a proximity that provide possibilities for associational networks that might be diffused in larger cities. Most of us work full-time and cannot give the time to the SSC that we would like to. Without the material basis on which to work and study full-time at the SSC, we have to think creatively about the form and nature of education practised within the SSC.

As a response, educators might question how we work through association or co-operation with the geographical and spatial-temporal implications of a critique of higher education policy and practice. We might highlight the dynamics of accumulation and the need to expand markets in established economies and to create new markets as a new form of imperialism (with privileged rights to sell goods via intellectual property laws). We might ask, how does higher education policy and practice demonstrate the flows of capital between the global North and “emerging markets”, in an attempt to allow production in the former to grow, whilst supporting the creation of competitor-economies? We might ask, where is it possible to find the courage to push-back?


For a co-operative university

With Joss Winn from the University of Lincoln, I’m running a workshop at the Discourse, Power and Resistance conference next Easter. Our abstract is as follows. [Note that Mike Neary from Lincoln is also running a session on The University and the City: the Social Science Centre, Lincoln – forming the urban revolution.]

Our discussion takes as its premises the following:

1. The University is being restructured through a neoliberal politics as part of a global pedagogical project.

2. This project is aimed at the dispossession of free space/time so that all of life becomes productive and available for the extraction of surplus value.

3. This pedagogic project is recalibrating and enclosing the roles of teachers and students as entrepreneurial subjects. In part it is also creating a surplus academic population, consisting of the academic unemployed, the precariat, the outsourced, and so on.

4. If this project is to be resisted then the premises that underpin the economic utility of higher education as a positional good need to be revealed.

5. If this project is to be resisted then the idea of academic labour that underpins employment in the increasingly digitised and stratified universities of the global North needs to be critiqued.

6. If this project is to be resisted then the marketised organising principles that underpin the idea of the University need to be challenged.

7. If this project is to be resisted then educators need to define structures and practices that reinforce the sociability of everyday life, in order to realise new opportunities for pedagogic co-operation.

8. If this project is to be resisted then histories and cultures of co-operative education need to be revealed and critiqued.

The session will briefly position these headline statements about the idea of the University, and of academic labour, in the UK. The session will then ask participants to uncover stories of how and where pedagogy/educational institutions might be used for co-operation rather than competition. The session will ask participants to discuss what a co-operative University might look like.


On the domination of merchants in higher education

Merchants dominate producers now. Commercial capital and money-dealing capital dominate productive capital. The expropriation of surplus value from producers by merchant capital is a primary source of profit. In educational production, in the production of curriculum resources, in the funding of research centres, in the building of physical and technological infrastructures, in the deployment of learning analytics, in the management of the student loan book, do educators and/or students have hegemony? Do educators and/or students dominate the agenda? In the idea of open education or of the MOOC, who has power? When we are told that education must become effective or efficient or innovate, who is heard? In the deployment of organisational development or of lean systems thinking or of zero-hours contracts or of £9,000 fees, who has a voice and who is marginalised? 

It is worth re-thinking how merchant, credit and finance capital affect the inner workings of education, in particular as universities are being reconstructed as businesses. As they are being reconstructed as competing capitals, subject to the coercive logic of competition. And it is coercive. The coercive role of money as it is insinuated inside educational practice reinforces its own reification and more importantly fetishizes, for example, the student, or the entrepreneur or technology. As Pilling noted, Marx identified this idea of fetishisation as it flows through the bourgeois political economics of the kind that serves as analysis of the current crisis. He wrote:

under commodity production relations between men take the form of relations between ‘things’. The social relations are indirect relations, relations mediated through these things, and men simply ‘represent’ or ‘personify’ these things in the market place. Now Marx chastised the political economists for taking these forms ‘as given’ (by Nature) and not as social forms arising under definite historical conditions, forms which would therefore disappear under new social conditions. Those who accept the social relations of capital ‘uncritically’ in effect attribute to things in their immediate manifestation properties which, in point of fact, have nothing in common with this immediate material manifestation as such. The attention of Ricardo was directed almost exclusively to discovering the material base of definite social forms. These forms of social being were taken as read and therefore lying outside the scope of further analysis. It was Marx’s aim to discover the origin and development of these social forms assumed by the material-technical production process at a definite stage in the development of the productive forces.

In the current recalibration of education, we witness a media that denigrates public education and celebrates charter schools or academies, we witness a higher education for employment rather than for being, we witness a fetishisation of the student at the heart of the system, we witness think tanks related to global consultancies like McKinsey or PA or Pearson or to institutes like the IPPR calling for public/private partnerships and marketised open education. In each of these witnessings, we are unable to step away from the specificity of “broken education” (see, for example, this PA Consulting Delivering Education Reform paper), in order to critique the structures of domination, and who has power, and why. In pushing back against charter or free schools alone, or in pushing back against student-as-entrepreneur, or in pushing back against credit ratings for universities, we cannot possibly make sense of these individual aspects unless we develop a critique of how they relate to the generality of the reproduction of capital.

What we are witnessing for instance in the open education movement is its fetishisation as an open threshold of access, as low-cost of entry, as emancipatory, as freeing-up resources for “developing nations”. What we do not see is its co-option by commercial capital, in the form of global educational merchants like Coursera or EdX or FutureLearn, for the extraction of surplus value and for labour arbitrage and for commodity-dumping. Coursera states that it:

is an education company that partners with the top universities and organizations in the world to offer courses online for anyone to take, for free. Our technology enables our partners to teach millions of students rather than hundreds. We envision a future where everyone has access to a world-class education that has so far been available to a select few. We aim to empower people with education that will improve their lives, the lives of their families, and the communities they live in.

Coursera then mediates flows of educational products that it does not produce, in terms of the content or pedagogies of its partners or the data that is harvested from its students. One interesting point here is that for-profit educational merchant capital drives the specific development of capitalist, educational production that is separated from the sphere of production. It is not based on direct exchange between producers and consumers, but on mediated and just-in-time provision. So it is subject to the same drives to maximise the extraction of surplus value from producers and products without contributing to the circuit of production, except in forms that enable speed-up or mobility.

In the case of FutureLearn this means developing an organisation structure that is exclusive and excluding of certain providers or producers, based on maximising profits. Thus, David Willetts argued:

FutureLearn is not accessible for all of our universities. They have taken a view about the universities that they are going to allow into FutureLearn, so the other universities are going to need another route if FutureLearn won’t have them and there are other providers around and of course, part of what they will offer is help in some of the analytics as well. I think this is coming up the agenda, because clearly other universities outside the Russell will want to go down the MOOC route as well, and I completely understand that, and if I were in their shoes I would want them to do it. So there are other platforms that you may want to join, where including, and I am sure included in their terms, will be assistance in the analytics that you need to get your courses online. 

In response Tim O’Shea noted that:

I think you were correctly cautious about the idea that the Government would intervene to support a particular platform provider, because there is a diversity of platform providers in the US, there is actually three in Silicon Valley, there is FutureLearn here, and then there are some free platforms, like Course Builder, that is provided by Google, so I think for the government to intervene would be messy.

In facilitating corporate power, intervention may be denied but in creating an education market through secondary legislation, state intervention is critical. Thus, open education or the MOOC or whatever technological or organisational innovation has to be critiqued, not in terms of student costs or empowerment or democratising of learning, but inside-and-against the flows of capital and the attempt to reassert stable forms of accumulation. Thus Sarah Grossman in the Chronicle relates the profusion of commercial MOOCs to international competition, the needs of venture capital for spaces in which to invest surpluses, and to the extraction of surplus value through education at work:

Japan’s answer to Coursera and edX, Schoo, announced this week that is had raised $1.5-million from venture-capital firms, including Itochu Technology Ventures, the Anri Fund, and the Incubate Fund. Offering more than 130 courses, Schoo is aimed at a Japanese audience of mainly office workers in their late 20s and early 30s.

The market, defined by corporates operating as commercial capitalists, is divorced from the realities of educational production as a social activity, and is recalibrated around the individual production and consumption of educational services and products. Thus, students are recalibrated not as social learners but as individual entrpreneurs able to access educational services and products in a global market.

However, what is also clear in this process of commercialising education is Marx’s view in Volume 3 of Capital that where merchant capital is hegemonic, then limits emerge in the spaces for productive or industrial capital. Marx argued that:

Within capitalist production merchant’s capital is reduced from its former independent existence to a special phase in the investment of capital, and the levelling of profits reduces its rate of profit to the general average. It functions only as an agent of productive capital. The special social conditions that take shape with the development of merchant’s capital, are here no longer paramount. On the contrary, wherever merchant’s capital still predominates we find backward conditions. This is true even within one and the same country, in which, for instance, the specifically merchant towns present far more striking analogies with past conditions than industrial towns.

The independent and predominant development of capital as merchant’s capital is tantamount to the non-subjection of production to capital, and hence to capital developing on the basis of an alien social mode of production which is also independent of it. The independent development of merchant’s capital, therefore, stands in inverse proportion to the general economic development of society.

Independent mercantile wealth as a predominant form of capital represents the separation of the circulation process from its extremes, and these extremes are the exchanging producers themselves. They remain independent of the circulation process, just as the latter remains independent of them

So Marx argued that where commercial capital and money capital dissolve previous forms of production and destroy the communities on which they were based, then they in-turn they become the community. So the public University is declared to be beyond hope and is under global pressure to reform, or become revolutionised as an organisational form for the accumulation of capital, be that social, cultural or commercial/financial. David Harvey refers to this as the “solvent effect” that is also conjunctural with the development of a world market, alongside flows of commodities, virtual trade, new colonialism, and the increasing subordination in this current phase of capitalism of production to trade and commerce. The domination of commercial capital over production is witnessed in: working conditions of outsourced employees, generally in the global South, in call centres and factories that produce consumer goods; the labour rights of those mining the raw materials that go into the same consumer goods; and the proliferation of zero-hour contracts, precarious employment and the generaton of a surplus population (witness the growing number of Ph.D.s with no chance of tenure or the UK’s free schools that can require no teaching qualifications). Witness Apple’s sub-contracting of labour to Pegatron and Foxconn and the recent claims made about labour costs and labour rights related to Taskrabbit, or the claims about labour arbitrage related to teachers, the use of adjunct labour and MOOCs.

However, as Marx writes in Volume 3, this also re-focuses us on the act of production, rather than on the circuits of money or commercial capital, as the truly revolutionary social activity. Thus, David Wiley’s call at #opened13for open education to save students a billion dollars cannot be seen as revolutionary or democratising. It needs to be critiqued as fetishistic. What does it tell us about who has power in the open education movement? What does it tell us about the roles of merchants, in the form of commercial and money-dealing capital, in the open education movement? What does it tell us about open education as a discourse of power where money drives the agenda? What does this tell us about our social relationships and the production of a pedagogy that is truly critical?

The problem with reducing open education to a discourse related to money is that far from enhancing democratisation, it reinforces the impact of proletarianisation noted above. So when Willetts argues for MOOCs as opening-up new markets for UK business, or when educators give keynotes that focus upon saving student money, or where educators celebrate conferences with partners in the petrochemical industry, transnational finance capital, the Rand Corporation and Pearson (as well as organisations more acceptable to left-leaning academics), it is important to ask about the role of power in the relationships that frame that educational space. Where does power lie between finance, merchant and productive capital, and the individual producers and consumers of educational products? The domination of commercial or finance capital drives low prices in the sphere of production, and that restructures organisational forms through efficiency drives or technological innovation. Where educational corporations control most of the surplus value that is produced they can define production (processes, labour rights, shifting indemnities, who manages risk). One of the outcomes of this is labour arbitrage and a refusal to negotiate with labour, or an attack on trades unions. As employment is made precarious amongst individuated and separated educational producers, collectivisation is negated and ultra-exploitation or proletarianisation emerges.

So we need to move away from fetishizing the MOOC or the student or the money savings that can be made or the democratising of educational life, to examine how merchants dominate over our educational experiences, inside a new world market that has been opened-up by both the nation State and transnational organisations like the World Bank and the International Monetary Fund. We need to examine how our modern condition as labourers inside higher education is being revolutionised by technology and new organisational forms like MOOCs, as a result of the evolutionary processes that enable capitalism to overcome the limits imposed by crisis. These limits are socio-economic (fossil fuel depletion, climate change and so on) and are recalibrated as sustainable business or green growth, and they are economic in the current depression.

At issue for educators is how do we read this evolution? Is it to be fetishized as a specific and superficial function of the present? So do we really think that it is technology that is opening-up emancipatory or democratic educational possibilities? Or are those technologies and organisational forms a result of capital attempting to overcome the limits imposed by a falling rate of profit and labour relations? Is open education, in fact, to be analysed in terms of the general rules of motion of capitalism? Where money and commercial capital hold sway, as they do in the current condition, overcoming spatial and temporal barriers through mobility enable Capital to dominate over production and consumption. How should educators react?

However, there is a moment of hope. As Harvey (pace Marx) notes, merchant capital is predatory but it is subordinate to the production of surplus value, even if it controls those who produce it. Therefore, that merchant class and its financial co-operators have to make an ideology, media etc. in its corporate image, in order to underpin its power. This connects to Britt’s 14 points on the rise of the fascist state. As Jehu notes:

The present crisis arises from the fact that there is a mass of superfluous capital that cannot, under any circumstances, become real capital — that is, cannot produce surplus value and, therefore, profit. This mass of superfluous capital poses the constant threat to the mode of production of a general devaluation of the existing capital as a whole. If a general crisis of devaluation is to be avoided, the state must run deficits, i.e., it must spend more than it takes in in tax revenue. State deficit spending is, therefore, not determined by the needs of society (and, in particular, by the needs of the social producers), but by the needs of the owners of capital, who, if they are to avoid a nominal devaluation of this superfluous capital, must hand it over to the state to be consumed unproductively in return for interest payments.

The question is how to reveal and critique the material conditions of the working class, including those of teachers, educators and students, as they are subordinate to autonomous commercial and/or finance capital. How is it possible to recuperate the autonomy of educational producers in a way that pushes back against the hegemony of venture capital or MOOC providers acting as commercial capitalists? Is it possible to develop forms and stories of co-operative production and consumption that are beyond the money-form or cost savings? Is it possible to critique the idea of public rather than open education, and as a result to liberate skills, knowledges and practices against their marketization, and where they do not act to drive down wages through speed-up, or labour mobility, or the creation of proprietary skills that can be commodified? Is it possible to push-back against the use of open education to create a reserve army, or surplus population, of skilled workers as a disciplinary tool on wages?

The links between commercial educational providers and universities, educators and students as producers and consumers of educational services, data and products, demonstrate power and dependency. This complex interdependency is not reducible to fetishized ideas of money via cost-savings or emancipation based on learning for a life of capitalist work. It links to ideas of the reproduction of capital within limits or barriers, and the current condition inside-and-against education demonstrates how crises re-establish the limits and conditions existing in the system as a totality and in the circuits of productive, money and commodity capital. Moreover, we are witnessing the attempt by finance and commercial capital to synchronise production with their own circuits. This is an uncomfortable symbiosis, as those of us engaged in a higher education that is being restructured by the dictates of finance capital and a new market can attest.

At issue is whether we can help students to develop the analytical tools that enable them to understand the interdependencies of this world and thereby to critique power. Can we help them to change the world in the face of capital as the automatic subject, and against the dominance of our educational lives by finance and commercial capital?