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1987: Ernest Mandel – On the potential of history

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This is the text of lecture given by Mandel in October 1987 in a series of lectures by different authors inspired by the work of Leo Kofler. It was first published in a book gathering the texts of these lectures; Die Versteinerten Verhaltenisse zum tanzen Bringen. Beitrage zur Marxistischen Theorie Heute (Berlin, 1991), edited by Thomas Brüsemeister, Christian illian, Uwe Jakomeit, Christoph Jünke, Sivlia Lange, Jan van Lessen, René Reinshagen and Wolfhard Schwarz. For a materialist conception of history, it is necessary to understand that the world cannot be consciously changed without understanding it correctly. While I am not a materialist, I agree that a naturalistic method is foundational to modern science, with the proviso that naturalism is a methodological assumption that is

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This is the text of lecture given by Mandel in October 1987 in a series of lectures by different authors inspired by the work of Leo Kofler. It was first published in a book gathering the texts of these lectures; Die Versteinerten Verhaltenisse zum tanzen Bringen. Beitrage zur Marxistischen Theorie Heute (Berlin, 1991), edited by Thomas Brüsemeister, Christian illian, Uwe Jakomeit, Christoph Jünke, Sivlia Lange, Jan van Lessen, René Reinshagen and Wolfhard Schwarz.
For a materialist conception of history, it is necessary to understand that the world cannot be consciously changed without understanding it correctly.
While I am not a materialist, I agree that a naturalistic method is foundational to modern science, with the proviso that naturalism is a methodological assumption that is often illogically conflated with metaphysical truth. Science doesn't "prove" materialism. It is an assumption, which I take to be excessively reductionistic.

That said, Marx and Marxists make important observations about reality that should be taken into account in making an investigation where naturalism is relevant. So do "scientists" (whatever that means–"science" being a weasel word with respect to both denotation and connotation that is often used to argue from authority, an informal fallacy).

Ernest Mandel's lecture is about class. With the rise in inequality, "class" is becoming an important word again, although it has always been a key term in sociology. The concept that "class" refers to is somewhat fuzzy with respect to boundaries and needs careful analysis. This, of course, relates to the factors of production, labor and capital (as in the production function) and their relationship in a socioeconomic system. So it is pretty important in economics, too.

Neoclassical economics dismisses class as irrelevant, along with distributional effects–or else considers liberal societies to have transcended class distinctions and their effects. This is a weakness in the conventional conception of capitalism as an economic system that is assumed to be characteristic of a liberal society. In the Marxist critique, the conventional conception of captialism is embedded in bouregois liberalism, which is class-based and class-determined. From the Marxist point of view, capitalism is based on class power.

For example, MMT economists often says that certain effects like the level of unemployment are "policy choices." From the sociological point of view, policy in general is an expression of political power and political power is class-based. Conventional economists, on the other hand, may misrepresent economic effects of policy as an outcome of natural forces based on their modeling assumptions.

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1987: Ernest Mandel – On the potential of history

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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