Workers vs. capitalists
on the Internet
The
following is adapted from a talk on what every worker should know about
the AOL-Time Warner merger by Gary Wilson, a managing editor of Workers
World newspaper, at a Workers World Forum in New York on Jan. 21.
Workers
World newspaper had a headline a couple years ago that declared "Merger Mayhem."
That was a great
headline.
It
described exactly what was happening and captured in two simple words the impact
that these giant mergers were having on the working
class.
The
trouble is, you could probably run that headline every
week.
Every
day there are new mergers announced, with layoffs and cuts in the new merged
corporation. This is followed by breakups and spinoffs, which are then followed
by new mergers. The reason for this mayhem is that capital generally goes to
wherever the rate of profit is highest. But eventually the rate of profit starts
to decline and then capital flees to the newest source of high
profits.
So
the first question we ask when a big merger like the AOL-Time Warner merger is
announced is: What about the
workers?
Workers
World carried an excellent account in the Jan. 27 issue on what the AOL-Time
Warner merger will mean for the workers at these companies. The bosses will use
this merger first to cut jobs, and, if they can, break the back of the
union.
For
us, that is one of the most important aspects of this or any other merger. And
we want to support the workers and their union in their struggles to protect
their jobs. There is absolutely no reason that the workers should lose their
jobs just because the bosses have decided that their profits have to be
higher.
The
Internet and the
merger
Of
course, there are other aspects to this merger. Its impact will be wider than
what happens to the workers at AOL and Time
Warner.
AOL
is the biggest Internet service provider in the country and probably the world.
Time Warner is one of the biggest media conglomerates on
earth.
The
merged company will be called AOL-Time Warner. Putting AOL at the beginning of
the new company's name is a tip-off that the Internet is the focus of the new
company.
The
Internet is the new technology that has profoundly changed business and the
economy. What does it mean? And why is media giant Time Warner merging with a
much smaller Internet company and giving the Internet company top billing? After
all, an earlier Time Warner merger with Ted Turner's CNN didn't involve any kind
of name
change.
The
Internet is a fascinating subject. It is a new technology that was not built by
the so-called free enterprise system. No, in fact, free enterprise had nothing
to do with it. It was funded entirely by big government, first by the
Pentagon--which is the biggest of all big government--and then by other agencies
of the U.S.
government.
Internet
is socialist in
form
By
design, the Internet is a thoroughly socialized technology. By this I mean that
it is completely socialist in form and remains so to this day. It can exist only
through the collective efforts of computer workers in every country of the
world, 24 hours a day, seven days a week. This is true even though the Internet
is now being
privatized.
In
this respect, the Internet can be seen as socialist. Except for one glaring
contradiction. The capitalists have control of
it.
This
is not really anything new. Lenin, in his primer on imperialism, describes the
growth of monopoly capitalism. He shows how the monopoly corporations really
create the foundation for socialism. They completely socialize the labor process
and make it ready for a socialist takeover. The only obstacle is the private
ownership by the
capitalists.
Anyway,
never before has there been such a totally global, completely collective,
socialist technology as the Internet. It is hard to describe this fully. But the
Internet is truly global. And the centers of its development are now equally
outside of the United States--from South Africa to Mexico, from Pakistan and
India to China as well as
Europe.
Only
a week or two ago IBM announced it was opening up a whole new division. It will
be headquartered in India. The Internet makes it possible to do this. And the
reason is not simply explained by the lower pay that workers in India will
receive or the ability to have instant worldwide communications through the
Internet. The fact is, some of the most important development of the Internet
technologies have come out of
India.
The
Internet is big. We know that the "experts" on TV all say the Internet is big.
So we all agree that it is big even if we don't know what that really means.
AOL's
and Time Warner's
troubles
So
where does the AOL-Time Warner merger fit into all
this?
AOL
is the number-one company for providing personal Internet services for home use.
And AOL is in trouble. You may not know that. And it may not have been mentioned
in the TV newscasts about the
merger.
But
the fact is, AOL is certain to die in a couple of years unless it can completely
change itself
somehow.
AOL
sells dial-up service to the Internet. And the day is not too far away when
dial-up connections will be completely replaced by different kinds of
connections.
There
are three basic new kinds of connections that are coming. These are called
broadband connections. One is DSL, which uses the phone lines but is not a
dialup connection. The second is a cable connection, using your cable TV
connection. The third is satellite connections using small satellite
dishes.
What
you may not know is that right now you can't get AOL in the usual way through
any of these new high-speed connections. In fact, AOL has a big lawsuit going
against the cable industry over this very issue. So there have been many
predictions that within the next five years AOL would just disappear altogether
if it can't find a way to be the primary service provider for broadband
connections.
Time
Warner is a different kind of failure. Time Warner has been trying for years to
sell its publications on the
Internet.
Time
Warner publications like Time magazine and Sports Illustrated were charging for
access to their pages. They couldn't do it. Now all of those publications are
available for free on the
Internet.
CNN,
also part of Time Warner, has never charged for access. It has become the second
most popular news site on the
Internet.
But
the bosses at Time Warner still want to charge money for accessing their
"content" on the Internet. What Time Warner hopes to do is to take AOL's success
at selling Internet services and use it through its cable connections. The Time
Warner execs hope to then be able to collect money from everyone who reads their
publications, listens to their music or watches their movie clips on the
Web.
But
there are some problems with this. Even if AOL takes control of all of Time
Warner's cable connections around the country, that's only a fraction of the
home users on the Internet. Most of the Internet would not be tied into AOL's
exclusive
system.
AOL-Time
Warner seems to be determined to control access for home users of the Internet,
and charge a premium for it. But there is no reason to think it will succeed in
doing
this.
Since
this is the age of monopoly capitalism, we know that unless there is a workers'
revolution that overturns the system, monopoly capitalism will constantly seek
out ways to control the
Internet.
But
it would be a mistake to say that AOL-Time Warner is in a position to take over
the
Internet.
The
Internet and Big
Business
In
relation to the Internet, AOL-Time Warner is only one player. It may be the
biggest among home users, but the Internet is much bigger than home users.
In
fact, as much as 90 percent of the use of the Internet is for commerce by big
business. This is the dominant force on the
Internet.
Businesses
are using the Internet for everything from tying together company work sites to
worker training to production. Company-to-company business is now dominated by
the Internet. Email is now the primary form of business communication. Banking
and the stock market are all completely tied into the
Internet.
The
Fortune 500 and Wall Street banks aren't interested in letting AOL-Time Warner
control access to the Internet. They require that the Internet and access to it
remain open, just as the roads and waterways must be open and accessible to all
businesses.
If
they are selling on the Internet, they don't want to pay an AOL-Time Warner tax
for every transaction. They will require open and free access to their company
Web sites and the free flow of
email.
In
fact, the government's lawsuit against Microsoft is probably motivated most by a
drive by a significant section of the ruling class who were alarmed by
Microsoft's move to take control of the Internet and access to it through its
Windows operating system. Microsoft's Windows is used on almost 95 percent of
the computer
desktops.
The
role of the
workers
What
shouldn't be forgotten about the Internet is that it is completely dependent on
computer workers around the world. These workers have a power much greater than
they know.
There
are many kinds of Internet workers doing many, many different tasks. It is truly
a collective effort.
So
when Seattle happened, when the WTO demonstrations were taking place, computer
workers around the world figured out a way to bring down the World Trade
Organization web site during the days of the demonstrations.
I
say, to paraphrase Karl Marx, workers of the world unite, we have nothing to
lose but some oppressive Web sites.
This article is copyright under a Creative Commons License.
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