Page - 97 - in Otto Bauer (1881–1938) - Thinker and Politician

a contribution to the theory of imperialism 97 cycleanddevelopmentofcapitalismarenotable.Firstly,herejectedSchippel’s thesis about the counter-crisis effect ofmilitarisation.31 He pointed out that armamentsandanincreaseinmilitaryandnavyspendingleadtohighertaxa- tion,thusreducingthesocialcapacitytoconsumeandmakingitmoredifficult toovercomecrises.32Secondly,heprovedthatallpositiveeffectsof thedevel- opingarmaments industries (accelerationofcapital accumulation, economic upturn, expansionof themanufacturing base, increaseddemand for human labour, guaranteed security of favourable capital investment, reducedunem- ployment,andimprovedmaterialconditionsfortheworkingclass)onlylastfor a shortperiodof time, asmilitarismhasa tendency toexpandautomatically. Thisexpansiondrasticallyexceeds the initial goalsandmotivesofcompeting countries. It inevitablyleadstowarbetweenthemajorpowers,resultinginthe ruinofthecapitalisteconomy.33 2 TheSocio-PoliticalContextofBauer’sObservationsonImperialism IfonewantstofullycomprehendBauer’sstatements from1907–13concerning the necessity ofmaintaining colonialism,militarism, and a vast state territ- ory, one shouldnot forget that hismotiveswerenot only scientific, but also political. Hewas chiefly concernedwith two things: firstly, the political and economic interestsof theHabsburgmonarchyandthe implicationsof imper- ialistpolicies for theworkingclass; secondly, andconsequently, the stanceof theSocial-Democraticpartytowardspotentialdangersunleashedbythedevel- opmentof imperialism. Theverynotionofcreatingvast,economicallyautarkicstateterritorieswas geared towards the protection of a relatively autonomous production sec- tor.Aboveall, however, the intentionwas to safeguard the consumermarket of the Austro-Hungarianmonarchy, whose preservation Bauer passionately defendedupuntil 1917.Arguably, this standpointpredeterminedhisnegative attitudetowardsFriedrichNaumann’sproject,Mitteleuropa (CentralEurope), which theGermansectionof the sdapand theHungarianSocialDemocrats 31 InGermanSocialDemocracy,MaxSchippel foundedthe theoryofovercomingcrisesby increasing the unproductive consumption of the state. He viewed the development of militarismasitsmost favourableform.SeeSchippel 1888. 32 SeeBauer1975c,pp.780–90. 33 Bauershedlightontherelationshipbetweenfascismandimperialisminhislaterworkin the1930s,whichcontainedatheoryof fascismbasedonthetheoryof imperialism. Iwill investigatethis inChapter8.