Page - 101 - in Otto Bauer (1881–1938) - Thinker and Politician

a contribution to the theory of imperialism 101 protectthedevelopmentofhighlyorganisedbranchesofproduction,pricesset bymonopolies,andindirecttaxes.Reinforcinghisargument,Bauerstatedthat thedevelopmentofindustrialmonopoliesreducescontradictionsbetweenthe interestsof industrialcapitalistsandlandownersasthedemandforprotective tariffs unites both classes. He borrowed this line of argument fromHilferd- ing,whohadestablisheda thesis closely linkedtounderconsumptiontheory: unlike capitalists, theworking class is only interested in thedevelopment of thedomesticmarket. The twoclasses thusassumeamutuallyhostile stance. With the intentionofdefendingAustria’snational interests,Bauerconcluded thusfromHilferding’sobservations:underimperialism,theworkingclassmust reject thepositionofclassicalMarxismonprotectivetariffs,44as theyareout- datedandonlysupportpoliciesthatprotectthedomesticmarket.45Hejustified the struggleof theproletariat for changes in tariffspolicies as follows: ‘While theprofit interestsoftheenterprisesareatoddswiththepublic interestofthe nationaleconomy,theinterestoftheworkingclasscoincideswiththeinterests of national economicprogress. […] In the struggle against the tariffs policies of thepropertied classes, theworking class is the championof national eco- nomic progress’ (our translation).46He also associated the protection of the domesticmarketwith the socio-economicbenefits thatwere in linewith the policiesof theparty,whichhopedtoendthe increasinghardshipof thework- ing class. Interestingly, forAustrian SocialDemocracy–unlike SocialDemo- cracy inotherEuropeancountries– thecontroversialquestionas towhether there couldbe talkofpauperisationof theproletariat didnotplayadecisive role inanyperiod. Inthesdap, thetheoryofpauperisationwasrejected.Only Adlerdrewattention to thephenomenonof relativepauperisation inhis art- icle ‘Zur Revision des Parteiprogramms’, and protested against the rejection of pauperisation theory at theViennaCongress of 1901.47 Bauer consistently championed the view that thedevelopment of imperialismdoesnot lead to 44 About the tariff question, Marx shared Ricardo’s position. In 1849, he was not of the opinionthat freetradeandtariffpolicieswereofgreat importancefor theworkingclass. MarxandEngelsadvocatedfreetrade. 45 SeeBauer1979k,pp. 113–15. 46 ‘Während die Profitinteressen der Unternehmen demGesamtinteresse der Volkswirt- schaft widerstreiten, fällt das Interesse der Arbeiterklassemit dem Interesse des volk- swirtschaftlichenFortschritts zusammen… ImKampfe gegendie Zollpolitik der besit- zendenKlassenistdieArbeiterklassedieSachwalterindesvolkswirtschaftlichenFortsch- ritts’–Bauer1975b,p.700. 47 SeeAdler1901.