Tag: Marxist theory

Misunderstanding capitalism and OER

Joss Winn / / Open Education, PhD, Theory

David Wiley has just posted about Openness, Socialism and Capitalism. Comments are turned off on his blog, so I thought I’d reply here.

David’s post makes a good point: tax payer’s money that funds research, teaching and learning, should correspond to the tax payer being one of the recipients of the outcomes of research, teaching and learning; in other words, Open Access and Open Educational Resources. He refers to this as BOGO (‘Buy One, Get One’). To most readers, I think this will appear to be common-sense.

The problem I have with David’s post is this common-sense view that ‘capitalism’ and ‘markets’ are synonymous and that if the ‘flaws’ in the market were fixed, capitalism would serve tax payers well. David makes a common error in confusing capitalism with commerce. Capitalism is a historically specific method of organising social relations among people while commerce, which sometimes takes place in markets, existed prior to the development of capitalism in the 16th century.  I found Ellen Meiksins Wood’s book on the Origins of Capitalism very useful in understanding this point. The Monthly Review published a relevant chapter from the book which is a quick read. My point here is that in simple commerce or trade in non-capitalist societies, you might have expected to get a fair return on your money, but under capitalism, you should always expect to receive something worth less than you paid for it. I paid £400 for a TV, but I know that the cost of producing and selling that TV did not cost £400. Profit is extracted at every step in the production and exchange process, making my TV cost more to me than the actual cost of that TV. Under capitalism, we accept this for the private sector, but I think that David’s point is that publicly funded goods and services, such as educational outputs should be treated differently. I agree that seems fair.

David writes about a ‘fundamental social contract that allows markets to function’, giving the example of buying a pizza. A discussion around this ‘social contract’ can tell us more about capitalism than simply referring to ‘markets’. The ‘social contract’ refers to our shared understanding of the role of private property in society and an acknowledgement of the laws in place which protect private property. When the enforcement of social order breaks down in society or when someone exists in absolute poverty, this ‘social contract’ is often ignored and we call it looting or theft. In short, the ‘social contract’, although not an explicit written contract at the time of transaction, is underwritten in law and enforced through the role of the police and to a lesser extent other social institutions, such as education. Mark Neocleous has written a nice book about this called The Fabrication of Social Order, where he discusses the historical role of the police in enforcing ‘order’ (the functioning of private property and waged labour) in capitalist society.

The main point where I think David is mistaken is the expectation that under capitalism, epitomised by the functioning of markets, tax payers should expect to receive goods and services equal to the amount that is paid in taxes: you pay for a pizza and you get the whole damn pizza; you pay for education and you get full access to education. This makes sense but in my view is a naive view of the functioning of capitalism.

One of the defining features of capitalism is the extraction of ‘surplus value‘ from the work or labour that we are forced to undertake. The basic idea is that I work 8hrs/day but the value of the output of that work is worth more to my employer than the wage I am paid for 8hrs work. This is the basis for exploitation in capitalist society, which most of us participate in. We’re all aware that capitalism relies heavily on technology to improve the creation of surplus value out of labour (Meiksins Wood writes about the word ‘improve’ – very interesting and relevant to this discussion). Marx wrote about the shift from the formal subordination of labour to capital (the creation of a labour market in early stage capitalism) to the real subordination of labour to capital: the discipline of technology on labour and the transformation of the role of labour in the production process, which in turn effects a chain of social relations throughout society, from worker to shareholder. The important point here is to recognise that capitalism is not isolated to private trade or the markets but impacts all aspects of a capitalist society. It is a social totality subservient to the production of value.

Marx referred to two forms of surplus value. Absolute surplus value is basically the value created by extending the working day or cutting rest time, forcing people to work harder and other methods of discipline such as increased supervision. A situation of high unemployment can also lead to the creation of absolute surplus value because people are forced to work for less as wages are squeezed and workers have less bargaining power. However, there are obvious limits to the production of absolute surplus value: e.g. there are only 24hrs in the day, people get sick and even die if you work them too hard, workers organise into unions and can resist downwards pressure on wages. Relative surplus value is basically value created through efficiencies and innovation. Rather than extend the working day, efficiencies are introduced into the production process which ensure that labour does more work in the same time. These efficiencies can come about through better organisation of the production process and innovation through the use of technology, for example.

Having a basic understanding of surplus value, essential to capitalist accumulation, we can now situate the role of the tax payer and public services, such as education, in the production of surplus value. Marx made the distinction between productive and unproductive labour. This is a fairly simple distinction with widespread implications: Labour employed to produce surplus value directly is productive (i.e. labour directly involved in the production of commodities). All other labour is unproductive. This includes most government employees, managers in both private and public sectors, people involved in sales, finance, etc. In this view, most of my work for a publicly funded university is considered unproductive. However, unproductive labour, although not a direct source of surplus value, is still exploited by being paid less than the value of their wage. As Fine and Saad-Filho write in their excellent introduction to Marx’s Capital,

From the point of view of capital, unproductive sectors, for example retailing or banking, capture part of the surplus value produced in the economy (and, therefore, obtain the wherewithal to pay wages, other expenses and their own profits) through transfers from the value-producing sectors, via the pricing mechanism.

Although unproductive in the sense that this work is not directly involved in the production of commodities, it is still essential work in the economic reproduction of capitalist society, e.g. educating and training workers, keeping us in relatively good health so we remain productive, loaning us money to buy a house (because we are property-less) and selling us essential and non-essential commodities.

So, in this view, the publicly-funded education sector captures part of the surplus value produced in the economy (i.e. through taxes), and uses this value to maintain institutions for research, teaching and learning. What is of interest to me (and probably David), is that since Marx’s time, the appearance (though not the fundamental attributes) of a ‘commodity‘ has changed and the term now encapsulated a much broader range of ‘things’ than it did 150 years ago. I’ll leave a decent discussion about what a commodity really is for another day, but I want to note that Marx began Capital with that discussion and it forms the basic reference for much of his work on value and labour. Research papers and books sold by commercial academic publishers are commodities and I have argued elsewhere that OERs are being treated as commodities that may or may not create value for universities. So far, I am not aware of the production of OERs (involving the application of technology to labour) actually creating surplus value for an institution (MIT appear to be breaking even with the help of philanthropic grants). When we refer to ‘sustainability’ or the ‘business case’ for OERs, I think we’re talking about the potential to create value.

What’s particularly interesting to me is that the production of OERs through institutional means seems to be very much in line with capitalist production elsewhere and I agree with David that what Martin calls ‘big OERs‘, are ‘completely compatible with capitalism’. However, I don’t agree that OERs, because they are open, are ‘completely compatible with capitalism’. I don’t think openness has anything to do with it. The institutional production of OER is compatible with capitalism because it is clearly being situated within the overall production of surplus value for the institution. When we talk about the sustainability of OERs or business cases for the production of OERs, we’re talking about how to measure the value of this endeavour and usually this is through attracting external grants and raising the profile of the institution in some way.

So, where I disagree with David is the ‘common-sense’ expectation that tax payers should expect an equal return on the taxes we pay. From the point of view of capital, those taxes are potential surplus value that has been captured and transferred away from the direct capital accumulation process (M-C-M’ : Money is invested to produce Commodities that are sold in order to create Money and so on). From the point of view of capital, taxes are captured surplus value that are reinvested into the perpetuation of capitalist society, into educating workers, keeping us healthy and so on. Once these basic responsibilities are performed through the welfare state, capital will inevitably seek a return on this surplus value captured in taxation and seek to encourage the production of more surplus value wherever possible. e.g. selling publicly funded research outputs.

So, if David and I think it’s unfair that we don’t get a fair return on our taxes, it is no surprise really. It’s just a continuation of the exploitation that most of us are forced into under capitalism, where private property and waged labour are the organising principles of subsistence. In my view, a fair return on our taxes (or BOGO, as David calls it) through openness doesn’t ‘fix a disfunction in the market’; it is completely incompatible with a society where there is an imperative (partly through competition in the markets) to accumulate capital undertaken through the exploitation of working people, be they academics, housewives, students or car mechanics.

Conjuring value out of OpenCourseWare

Joss Winn / / Open Education, PhD

I came across a post by David Wiley the other day, concerning MIT’s OpenCourseWare initiative and it got me thinking about MIT and OER in general…

I would like to suggest that OER can be viewed as another example of the mechanisation of human work, which seeks to exploit a greater amount of collective abstract labour-power while reducing the input and therefore reliance on any one individual’s concrete contribution of labour. It’s important to understand what is meant by abstract labour and how it relates to the creation of value, which we’ll see is at the core of MIT’s OCW plans for sustainability. Wendling provides a useful summary of how technology is employed to create value out of labour.

Any given commodity’s value can be seen either from the perspective of use or from the perspective of exchange: for enjoyment consumption or for productive consumption. Likewise, any given worker can be seen as capable of concrete labor or abstract labor-power. Labor is a qualitative relation, labor-power its quantitative counterpart. In capitalism, human labor becomes progressively interchangeable with mechanized forces, and it becomes increasingly conceptualized in these terms. Thus, labor is increasingly seen as mere labor-power, the units of force to which the motions of human work can be analytically reduced. In capitalism, machines have labor-power but do no labor in the sense of value-creating activity. ((Amy Wendling (2009) Karl Marx on Technology and Alienation. p. 104))

The use of technology in attempts to expand labour’s value creating power is central to the history of capitalism. From capitalism’s agrarian origins in 16th century England, technology has been used to ‘improve’ the value of private property. In discussing value, we should be careful not to confuse it simply with material wealth, which is a form of value expressed by the quantity of products produced.

Marx explicitly distinguishes value from material wealth and relates these two distinct forms of wealth to the duality of labor in capitalism. Material wealth is measured by the quantity of products produced and is a function of a number of factors such as knowledge, social organization, and natural conditions, in addition to labor. Value is constituted by human labor-time expenditure alone, according to Marx, and is the dominant form of wealth in capitalism. Whereas material wealth, when it is the dominant form of wealth, is mediated by overt social relations, value is a self-mediating form of wealth. ((Postone (2009), Rethinking Marx’s Critical Theory in History and Heteronomy: Critical Essays, The University of Tokyo Centre for Philosophy, p. 40))

MIT’s OpenCourseWare initiative provides a good example of how Open Education, currently dominated by the OER commodity form, is contributing to the predictable course of the capitalist expansion of value. Through the use of technology, MIT has expanded its presence in the educational market by attracting private philanthropic funds to create a competitive advantage, which has yet to be surpassed by any other single institution. In this case, technology has been used to create value out of the labour of MIT academics who produce lecture notes and lectures which are then captured and published on MIT’s corporate website. In this process, value has been created for MIT through the application of science and technology, which did not exist prior to the inception of OCW in 2001. The process has attracted $1,836000 of private philanthropic funding, donations and commercial referrals. In 2009, this was 51% of the operating costs of the OCW initiative, the other 49% being contributed by MIT. ((See David Wiley’s blog post on MIT’s financial statement))

In terms of generating material wealth for MIT, it is pretty much breaking even by attracting funds from private donors, but the value that MIT is generating out of its fixed capital of technology and workers should be understood as distinct from its financial accounts. Through the production of OERs on such a massive scale, MIT has released into circulation a significant amount of capital which enhances the value of its ‘brand’ (later I refer to this as ‘persona’) as educator and innovator. Furthermore, through the small but measurable intensification of staff labour time by the OCW initiative, additional value has been exorted from MIT’s staff, who remain essential to the value creating process but increasingly insignificant as individual contributors. As a recent update from MIT on the OCW initiative shows, ((OpenCourseWare: Working Through Financial Changes)) following this initial expansion of “the value of OCW and MIT’s leadership position in open education” and with the private philanthropic funding that has supported it due to run out, new streams of funding based on donations and technical innovation are being considered to “enhance the value of the materials we provide.” As the report acknowledges, innovation in this area of education has made the market for OER competitive and for MIT to retain its lion’s share of web traffic, it needs to refresh its offering on a regular basis and seek to expand its educational market footprint. Methods of achieving this that are being discussed are, naturally, technological: the use of social media, mobile platforms and a ‘click to enroll’ system of distance learning. Never mind that the OERs are Creative Commons licensed, ‘free’ and, notably, require attribution in order to re-use them, the production of this value creating intellectual property needs to be understood within the “perpetual labour process that we know better as communication.” ((Söderberg, Johan (2007) Hacking Capitalism. The Free and Open Source Software Movement, p. 72)) Understood in this way, the commodification of MIT’s courses occurs long before the application of  a novel license and distribution via the Internet. OCW is simply “a stage in the metamorphosis of the labour process”. ((Soderberg, 2007, p. 71)).

MIT’s statement concerning the need to find new ways to create value out of their OCW initiative is a nice example of how value is temporally determined and quickly falls off as the production of OERs becomes generalised through the efforts of other universities. Postone describes this process succinctly:

In his discussion of the magnitude of value in terms of socially-necessary labor-time, Marx points to a peculiarity of value as a social form of wealth whose measure is temporal: increasing productivity increases the amount of use-values produced per unit time. But it results only in short term increases in the magnitude of value created per unit time. Once that productive increase becomes general, the magnitude of value falls to its base level. The result is a sort of treadmill dynamic. On the one hand, increased levels of productivity result in great increases in use-value production. Yet increased productivity does not result in long-term proportional increases in value, the social form of wealth in capitalism. ((Postone, 2009, p. 40))

Seen as part of MIT’s entire portfolio, the contribution of OCW follows a well defined path of capitalist expansion, value creation and destruction and also points to the potential crisis of OER as an institutional commodity form, being the dimunition of academic labour, which is capitalism’s primary source of value, and the declining value of the generalised OER commodity form, which can only be counteracted through constant technological innovation which requires the input of labour. As Wendling describes, this is part and parcel of capitalism, to which OER is not immune.

Scientific and technological advances reduce the necessary contribution of living labor to a vanishing point in the production of basic commodities. Thus, they limit the main source of the capitalist’s profit: the exploitation of the worker. This shapes the capitalist use of science and technology, which is a use that is politicized to accommodate this paradox. In this usage, the introduction of new machinery has two effects. First, the machine displaces some workers whose functions it supplants. Second, the machine heralds a step up in the exploitation of the remaining workers. The intensity and length of their working days are increased. In addition, as machinery is introduced, capital must both produce and sell on an increasingly massive scale. Losses from living labor are recompensed by the multiplication of the small quantities of remaining labor from which value can be extorted. In all of these ways, capitalism and technological advancement, far from going hand in hand, are actually inimical to one another, and drive the system into crisis. In this respect, a straightforward identification of constantly increasing technicization with capitalism misses the crucial dissonance between the two forces. ((Wendling 2009, p.108))

The example of MIT given above is not intended to criticise any single member of the OCW team at MIT, who are no doubt working on the understanding that the initiative is a ‘public good’ – and in terms of creating social wealth, it is a public good. My suggestion here is to show how seemingly ‘good’ initiatives such as OCW, also compound the social relations of capitalism, based on the exploitation of labour and the reification of the commodity form.

Furthermore, being the largest single provider of ‘Open Education’, MIT’s example can be carried over into a discussion of the Open Education movement’s failure to provide an adequate critique of the institution as a form of company and regulator of wage-work.

As Neocleous has shown, ((Neocleous, Mark (2003) Staging Power: Marx, Hobbes and the Personification of Capital)) in modern capitalism the objectification of the worker as the commodity of labour serves to transform the company into a personified subject, with greater rights under, and fewer responsibilities to, the law than people themselves. As the university increasingly adopts corporate forms, objectives and practices, so the role of the academic as abstract labour is to improve the persona of the university. Like many other US universities, MIT award tenure to academics who are “one of the very tiny handful of top investigators in your field, in the world” thus rewarding but also retaining through the incentive of tenure, staff who bring international prestige to MIT. ((Unraveling tenure at MIT))  Through an accumulation of “top investigators”, effort and attention is increasingly diverted from individual achievement and reputation to the achievements of the institution, measured by its overall reputation, which is rewarded by increased government funding, commercial partnerships and philanthropic donations. This, in turn, attracts a greater number of better staff and students, who join the university in order to enjoy the benefits of this reward. Yet once absorbed into the labour process, these individuals serve the social character of the institution, which is constantly being monitored and evaluated through a system of league tables.

“…the process of personification of capital that I have been describing is the flip side of a process in which human persons come to be treated as commodities – the worker, as human subject, sells labour as an object. As relations of production are reified so things are personified – human subjects become objects and objects become subjects – an irrational, “bewitched, distorted and upside-down world” in which “Monsieur le Capital” takes the form of a social character – a dramatis personae on the economic stage, no less.” ((Neocleous, 2003, p. 159))

To what extent the Open Education movement can counteract this personification of educational institutions and the subtle objectification of their staff and students, is still open to question, although the overwhelming trend so far is for OER to be seen as sustainable only to the extent that it can attract private and state funding, which, needless to say, serves the reputational character (a significant source of value, according to Neocleous) of the respective universities, as institutions for the ‘public good’. Yet, as Postone has argued, the creation of this temporally determined form of value is achieved through the domination of people by time, structuring our lives and mediating our social relations. The increased use of technology is, and always has been, capitalism’s principle technique of ‘improving’ the input ratio of labour-power measured abstractly by time, to the output of value, which is itself temporal and therefore in constant need of expansion. And so the imperative of conjuring value out of labour goes on…