Max Horkheimer
Zeitschrift für Sozialforschung
December 1939

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Whoever wants to explain anti-Semitism must speak of National Socialism. Without a conception of what has happened in Germany, speaking about anti-Semitism in Siam or Africa remains senseless. The new anti-Semitism is the emissary of the totalitarian order, which has developed from the liberal one. One must thus go back to consider the tendencies within capitalism. But it is as if the refugee intellectuals have been robbed not only of their citizenship, but also of their minds. Thinking, the only mode of behavior that would be appropriate for them, has fallen into discredit. The “Jewish-Hegelian jargon,” which once carried all the way from London to the German Left and even then had to be translated into the ringing tones of the union functionaries, now seems completely eccentric. With a sigh of relief they throw away the troublesome weapon and turn to neohumanism, to Goethe’s personality, to the true Germany and other cultural assets. International solidarity is said to have failed. Because the worldwide revolution did not come to pass, the theoretical conceptions in which it appeared as the salvation from barbarism are now considered worthless. At present, we have really reached the point where the harmony of capitalist society along with the opportunities to reform it have been exposed as the very illusions always denounced by the critique of the free market economy; now, as predicted, the contradictions of technical progress have created a permanent economic crisis, and the descendants of the free entrepreneurs can maintain their positions only by the abolition of bourgeois freedoms; now the literary opponents of totalitarian society praise the very conditions to which they owe their present existence, and deny the theory which, when there was still time, revealed its secrets.

No one can demand that, in the very countries that have granted them asylum, the émigrés put a mirror to the world that has created fascism. But whoever is not willing to talk about capitalism should also keep quiet about fascism. The English hosts today fare better than Frederick the Great did with the acid-tongued Voltaire. No matter if the hymn the intellectuals intone to liberalism often comes too late, because the countries turn totalitarian faster than the books can find publishers; the intellectuals have not abandoned hope that somewhere the reformation of Western capitalism will proceed more mildly than in Germany and that well-recommended foreigners will have a future after all. But the totalitarian order differs from its bourgeois predecessor only in that it has lost its inhibitions. Just as old people sometimes become as evil as they basically always were, at the end of the epoch class rule has taken the form of the “folk community” [Volksgemeinschaft]. The theory has destroyed the myth of the harmony of interests [between capital and labor]; it has presented the liberal economic process as the reproduction of power relations by means of free contracts, which are compelled by the inequality of the property. Mediation has now been abolished. Fascism is that truth of modern society which has been realized by the theory from the beginning. Fascism solidifies the extreme class differences which the law of surplus value ultimately produced.

No revision of economic theory is required to understand fascism. Equal and just exchange has driven itself to the point of absurdity, and the totalitarian order is this absurdity. The transition from liberalism has occurred logically enough, and less brutally than from the mercantile system into that of the nineteenth century. The same economic tendencies that create an ever higher productivity of labor through the mechanism of competition have suddenly turned into forces of social disorganization. The pride of liberalism, industry developed technically to the utmost, ruins its own principle because great parts of the population can no longer sell their labor. The reproduction of what exists by the labor market becomes inefficient. Previously the bourgeoisie was decentralized, a many-headed ruler; the expansion of the plant was the condition for every entrepreneur to increase his portion of the social surplus. He needed workers in order to prevail in the competition of the market. In the age of monopolies, the investment of more and more new capital no longer promises any great increase in profits. The mass of workers, from whom surplus value flows, diminishes in comparison to the apparatus which it serves. In recent times, industrial production has existed only as a condition for profit, for the expansion of the power of groups and individuals over human labor. Hunger itself provides no reason for the production of consumer goods. To produce for the insolvent demand, for the unemployed masses, would run counter to the laws of economy and religion that hold the order together; no bread without work.

Even the façade betrays the obsolescence of the market economy. The advertising signs in all countries are its monuments. Their expression is ridiculous. They speak to the passers-by as shallow adults do to children or animals, in a falsely familiar slang. The masses, like children, are deluded: they believe that as independent subjects they have the freedom to choose the goods for themselves. But the choice has already largely been dictated. For decades there have been entire spheres of consumption in which only the labels change. The panoply of different qualities in which consumers revel exists only on paper. If advertising was always characteristic of the faux frais of the bourgeois commodity economy, still, it formerly performed a positive function as a means of increasing demand. Today the buyer is still paid an ideological reverence which he is not even supposed to believe entirely. He already knows enough to interpret the advertising for the great brand-name products as national slogans that one is not allowed to contradict. The discipline to which advertising appeals comes into its own in the fascist countries. In the posters the people find out what they really are: soldiers. Advertising becomes correct. The strict governmental command which threatens from every wall during totalitarian elections corresponds more exactly to the modern organization of the economy than the monotonously colorful lighting effects in the shopping centers and amusement quarters of the world.

The economic programs of the good European statesmen are illusory. In the final phase of liberalism they want to compensate with government orders for the disintegrating market economy’s inability to support the populace. Along with the economically powerful they seek to stimulate the economy so that it will provide everyone with a living, but they forget that the aversion to new investments is no whim. The industrialists have no desire to get their factories going via the indirect means of taxes they must pay to an all-too-impartial government simply to help the bankrupt farmers and other draft animals out of a jam. For their class such a procedure does not pay. No matter how much progovernmental economists may lecture the entrepreneurs that it is for their own benefit, the powerful have a better sense of their interests and have greater goals than a makeshift boom led with strikes and whatever else belongs to the proletarian class struggle. The statesmen who, after all this, still wish to run liberalism humanely, misunderstand its character. They may represent education and be surrounded by experts, but their efforts are nonetheless absurd: they wish to subordinate to the general populace that class whose particular interests by nature run contrary to the general ones. A government that would make the objects of welfare into subjects of free contracts by garnering the taxes of employers, must fail in the end: otherwise it would involuntarily degenerate from the proxy of the employers into the executive agency of the unemployed, indeed, of the dependent classes in general. Nearly confiscatory taxes, such as the inheritance tax, which are forced not only by the layoffs in industry, but also by the insoluble agriculture crisis, already threaten to make the weak into the “exploiters” of the capitalists. Such a reversal of circumstances will not be permitted in the long run by the employers in any empire. In the parliaments and all of public life, the employers sabotage neoliberal welfare policies. Even if these would help the economy, the employers would remain unreconciled: economic cycles are no longer enough for them. The relations of production prevail against the humanitarian governments. The pioneers from the employers’ associations create a new apparatus and their advocates take the social order into their hands; in place of fragmented command over particular factories, there arises the totalitarian rule of particular interests over the entire people. Individuals are subjected to a new discipline which threatens the foundations of the social order. The transformation of the downtrodden jobseeker from the nineteenth century into the solicitous member of a fascist organization recalls in its historical significance the transformation of the medieval master craftsman into the protestant burgher of the Reformation, or of the English village pauper into the modern industrial worker. Considering the fundamental nature of this change, the statesmen pursuing moderate progress appear reactionary.

The labor market is replaced by coerced labor. If over the past decades people went from exchange partners to beggars, objects of welfare, now they become direct objects of domination. In the prefascist stage the unemployed threatened the order. The transition to an economy which would unite the separated elements, which would give the people ownership of the idle machines and the useless grain, seemed unavoidable in Germany, and the world-wide danger of socialism seemed serious. With socialism’s enemies stood everyone who had anything to say in the Republic. Governing was carried out by welfare payments, by former imperial civil servants, and by reactionary officers. The trade unions wished to transform themselves from organs of class struggle into state institutions which distribute governmental largesse, inculcate a loyal attitude in the recipients, and participate in social control. Such help, however, was suspect to the powerful. Once German capital had resumed imperialist policies, it dropped the labor bureaucrats, political and trade unions, who had helped it into power. Despite their most honest intentions, the bureaucrats could not measure up to the new conditions. The masses were not activated for the improvement of their own lives, not to eat, but to obey — such is the task of the fascist apparatus. Governing has acquired a new meaning there. Instead of practiced functionaries, imaginative organizers and overseers are needed; they must be well removed from the influence of ideologies of freedom and human dignity. In late capitalism, peoples metamorphose first into welfare recipients and then into followers [Gefolgschaften].

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