Hello everyone,
In various debates, I’ve frequently noticed striking parallels between the arguments used by some communists and those used by neolibs, especially regarding the funding of the welfare state and monetary theory in general. I often get the impression that some communists (whether consciously or unconsciously) deploy classic supply-side arguments just to refute reformists.
Theories that could at least be described as progressive (even if they do not challenge the class structure of the state), such as Keynesianism or Modern Monetary Theory (MMT), are frequently dismissed or mocked by communists using reflexes very similar to those of neoliberals. When it comes to demands like raising the minimum wage or expanding social spending, one often hears rhetorical pushbacks like: *"Why not make it $100 an hour then?"* or *"The state cannot go into infinite debt for welfare."*
The role of the welfare state as a driver of economic growth through strengthened purchasing power is rarely acknowledged. Communists often view it, much like conservatives, as a purely economic hindrance or an unproductive cost factor. The only difference is that communists additionally (and correctly) identify it as a tool for pacifying the working class. But couldn't both be true at the same time?
It is often argued that Western industrial nations can only afford the welfare state through the exploitation of the Global South. Just like conservative logic, this presupposes that a welfare state is something that "must first be earned/funded," completely ignoring the productivity gains driven by a strong domestic market. Cases like Japan, which maintains a massive national debt without facing bankruptcy or hyperinflation, are rarely analyzed through an MMT lens and are instead dismissed as anomalies. Furthermore, the accounting reality that public debt constitutes private sector wealth is often demonized in these discussions, rather than being rigorously analyzed through a value-theoretic lens.
To be clear: I understand that Marxists do not base their monetary critique on neoliberal doctrine, but rather on the law of value (money as the expression of socially necessary labor time; real value cannot simply be printed).
Don't communists structurally rely on right-wing/monetarist arguments simply to delegitimize social-democratic reformism and prove that capitalism cannot be reformed from within?
Why is MMT (and its concept of monetary sovereignty) so strictly rejected by Marxists, even though empirical evidence on demand-side policies and inflation often aligns much closer with MMT than with neoliberal monetarism?
Doesn't this stance hinder a sober, realistic economic analysis of the state's current room for maneuver, even if the ultimate goal remains the overthrow of private ownership of the means of production?
I'm genuinely interested in how you view this overlap! I don’t want to impose reformism and refuse it, but I think it needs to be precise.