WWI’s state economic control revealed the economy’s inherent political nature

Evidence

But these massive wartime interventions exposed an inconvenient fact. Economic forces never operate independently of society’s political dynamics. If the state could mold the economy to serve the needs of war, in peacetime it could mold it to promote the well-being of those whose sweat, muscles, and brains are the basis of national prosperity. The war had demonstrated “the profoundly political nature of the capitalist economy.” — Gary Mongiovi, Austerity Is an Antidemocratic Strategy…, 29 (#corroborates, via linked claim)

The political scope of these upheavals was terrifying. Paradoxically, to promote capital accumulation, the state intervened with maneuvers so extraordinary that they overturned the social consensus on which the system rested: the idea that it was a spontaneous, untouchable, and natural order. At that critical juncture, the state opened economic analysis to political discussion. Policies cementing private ownership of the means of production and wage relations were now debatable. — Clara E. Mattei, Escape from Capitalism, 169 (#corroborates, via linked claim)

As embattled British labor leaders would declaim, the government was “compelled to drop its mask of impartiality and appear in its true character as an instrument of class domination” (Gallacher and Campbell 1972, 6). — Clara E. Mattei, The Capital Order, 204 (#expands, via linked claim)

Categorization

  • XREF: connects to: Wartime state control proved economies are politically moldable — Gary Mongiovi, Austerity Is an Antidemocratic Strategy…, 29; Government wartime economic policy revealed state as instrument of class domination — Clara E. Mattei, The Capital Order: How Economists…, 204; State control of labor made capitalist surplus extraction explicitly political during the war — Clara E. Mattei, The Capital Order: How Economists…, 186 (+14 more)

Broader Connections