Some random thoughts on Mutualism:
Firstly, to look at the biological aspect of this term Mutualism, its an interaction between two individual entities of different species. This interaction results in benefits to both entities. In this mutually beneficial interaction, chances of survival normally get a boost.
This is in contrast to exploitative associations, as in parasitic relationships, where only one species/partner benefits.
A good example of Mutualism is the relationship that exists between the Remora fish, and larger fish like sharks.
The Remora attaches itself to the host and yet is not a parasite, in that it scavenges for food around the hosts mouth and teeth, keeps away parasites, helps maintain a favourable eco-system, thus keeping the host in good health and hygiene. In return, the Remora get to hitch a ride, scatter and spawn far and wide, and get feed and protection.
Great Mutualism, great mutual survival benefits.
There is yet another aspect to Mutualism, and this one in an economic theory:
As a theory propounded by some Anarchists, this form of Mutualism is a labour theory of value, which holds that when labour or its product is sold, it ought to receive in exchange, goods or services representing the amount of labour necessary to produce an article of exactly similar and equal utility, and receiving anything less is considered exploitation, theft of labour, or usury. (Usury comes from old Latin for excessive interest). Mutualism opposed the idea of individuals receiving an income through loans, investments, and rent, as they believed these individuals are not labouring.
As any form of state/governance was anathema to the Anarchists, many proponents of Mutualism who originally considered themselves to be permissive Socialists, did not subscribe to State Socialism. If the state did not intervene, Mutualism believed, economic law would ensure that individuals receive no more income than what is in proportion to the amount of labour they exert. While opposed to socialising the ownership of capital, they aimed nevertheless to socialise its effects by making its use beneficial to allinstead of a means of impoverishing the many to enrich the few.
To conclude this part then, as the original concept of Mutualism is based in biology, its opposite would be Parasitism (from parasite).
And so, for the above reason, Mutualism looks upon the Capitalist order as a form of Parasitism.
So.why all this talk of Mutualism?
Well, to continue with our old saga, we now learn to see how the two variants of Mutualism help us cover a lot of ground and get closer to the end.
In the tale of the Remora and the shark, weve seen how the two species, with admirable Mutualism, lived and died together happily ever after.
Our own tale here could well have begun something like this:
Once upon a time there lived a giant Shark, known and feared as the big US of A.
The big Shark drew many varieties of Remora from all over the world.
In a great show of Mutualism, as the Shark grew, the piggyback riding Remora helped it to devour the worlds resources. The Remora kept Shark preened and prepped and primed, and in return, got to keep their crumbs of the loot.
Soon, the Sharks consumption reached titanic magnitudes:
One resident was consuming equal to 128 Bangladeshis, 307 Tanzanians, 370 Ethiopians.
In return for its gluttony, the shark gave back to the world over 22% of world's total industrial carbon dioxide emissions. . (Please recall this from earlier: Mutualism, the other kind, aimed at socializing the effect of Capital in trying to make its use beneficial to allinstead of a means of impoverishing the many to enrich the few.)
To consume more and more, wars would be fought and won, foreign lands colonized, resources cornered, puppet governments installed, lies told at testimonies. At each step of the way, the Remora all over the world be there doing their bit.
But that kind of consumption would inevitably lead to living beyond means.
Now, the need for injecting liquidity, a popular phrase in later times but an old concept nevertheless, would become necessary to keep pace with, and to stimulate that consumption: Plastic money and mortgage would be lent the high status of being equated with success.
But as the plot thickened, at the heart of all this, a kind of Parasite would be born, too powerful for even the Remora to do anything about.
In its early form, this Parasite would resemble a harmless entity known as Credit.
Later, it would grow into a demonic cancer the world would come to know as: Leverage.
This cancer would spread to all continents, the original homes of all the Remora.
Much later, as the Shark would engage in a deathly struggle against the Parasite, all the Remora governments would do everything to help:
Should the Shark sink, so would the Remora.
Mutualism, after all, is all about bettering the chances of collective survival, you see.
So now, we have so far seen the natural biological order of Mutualism degenerate and mutate into Parasitism.
Its time now to draw from the economic theory of Mutualism to tie up this piece.
We had reached the point of the cancer known as Leverage.
Well then, the cure for it was obviously known as: Deleveraging.
Typically, one condition caused by severe Leveraging is known as Recession.
Well actually, it is more a symptom of the cure rather than the disease itself.
Recession is primarily about an overdue debt reduction in the Sharklands non-government financial sector.
And so, here comes the rub:
Now enters the government, that terrible evil entity which is so abhorrent to the economic theory of Mutualism, with its kinder and gentler methods that resemble State Socialism. (Though Capitalist to its core.)
To alleviate the obvious hardships of both the indebted and the creditors, the government commits to buy the toxic assets, and inject capital into banks.
All very good.
But it is all quite toothless, as in this world there is no tooth fairy.
To begin with, the government doesn't create anything, it merely redistributes.
In other words, whenever the government bails someone out, its at the cost of another. The 700 billion bailout is not coming out of the magicians hat, but rather, out of the hat being passed around.
Were talking taxation here.
Add to that another 30% for getting the government into the picture, as it has its own overheads.
These actions increase the tax burden on the economy and do nothing to encourage economic growth.
Besides, all along, in a perversification of the economic theory of Mutualism, the Capitalist State had gotten into mutually self-serving cahoots with Joe The Hedge Fund Manager and others.
And to think that Joe The Plumber had nothing to do with either side of the Sub-Prime virus to begin with.
(Please recall this from earlier: If the state did not intervene, Mutualism believed, economic law would ensure that individuals receive no more income than what is in proportion to the amount of labour they exert.)
Borrowing from Peter to pay Paul doesn't bode well for the GDP. The stock market knows it.
To conclude, as the Shark and the Remora struggle with the cancer of Leverage by Deleveraging, they also need to deal with the fever of Recession:
There are many many trillions of Dollars in outstanding bank credit to be adjusted for starters, in way of Deleveraging.
But the combined GDP of the US and European economies is merely about $25 trillion.
In Socialising Capital, transferring Toxic Assets to the Public Sector does not eliminate indebtedness. On the other hand it has a negative impact on economic growth, the condition known as Recession.
In a magnificent if perverse show of Mutualism, the State has spread the cancer of Leverage into the hands of the Common Joes, whose hands have now been forced to become uncomplaining and persevering.
Why?
So that Deleveraging can be spread over Time.
Because Deleveraging in Price is a very scary thought indeed, as we have been seeing:
The wild dogs are on the run.
They have no place to hide.
Remember?