Posts Tagged ‘’23 Things They Don’t Tell You About Capitalism’’

What A Surprise! Anti-NHS Thinktank Funded by Tobacco and Fast Food Industries

May 18, 2019

One of the fascinating articles Mike put up yesterday was about an article in the British Medical Journal that reported that Institute of Economic Affairs, a right-wing think tank that funds the Tories and which demands the privatisation of the NHS, is funded by all the industries that actively damage people’s health: tobacco, gambling, alcohol, sugar and fast food. One of the major donors to this secretive think tank is British-American Tobacco. The report noted that the IEA had attacked campaigns against smoking, drinking and the obesity academic, and raised concerns that a future leader of the Tories would side with these industries against the interests of the British people.

Well, as Bill Hicks used to say ironically, ‘Colour me surprised!’

I don’t wish to sneer at the doctors and medical professionals behind this article, and am absolutely fully behind its publication. But I’m not remotely surprised. It’s almost to be expected that a think tank that demands absolute privatisation and deregulation in the interests of complete free trade, should be funded by those industries, which have the most to lose from government regulation. And in the case of the Tories, that has always included tobacco, alcohol and gambling. Way back in the early ’90s under John Major, when Brits were just beginning to get into the habit of binge drinking and the government was considering allowing pubs and nightclubs all day licences, there were concerns about the damaging effects of alcohol. People were demanding greater regulation of the drinks industry. But this was being blocked by the Tories, because so many Tory MPs has links to these companies. This was so marked that Private Eye actually published the names of these MPs, and the positions they held in various drinks companies.

As for gambling, the Labour government after the War tried to crack down on this, but it was the Tories under MacMillan, who legalised the betting shops. Later on, Tony Blair, taking his ideas from them, had plans to expand the British gambling industry further with the opening of ‘super-casinos’, one of which was to be in Blackpool, I believe. But fortunately that never got off the ground. Unfortunately, there has been a massive rise in gambling addiction, despite all the warnings on the the adverts for online casinos.

The Tories have also had a long relationship too with the tobacco industry, resisting calls for bans on tobacco advertising. Private Eye also reported how, after Major lost the election to Blair, former Tory Chancellor of the Exchequer Kenneth Clarke then got a job with British-American Tobacco. As did, I believe, Saint Maggie of Grantham herself. BAT was employing him to open up markets in the former Soviet central Asian republics. The Eye duly satirised him as ‘BATman’, driving around in a car shaped like a giant cigarette, shoving ciggies into people’s, mostly children’s, mouths.

The Institute of Economic Affairs is a particularly nasty outfit that’s been around since the mid-70s. For a long time, I think it was the only think tank of its type pushing extreme free market ideas. A couple of years ago I found a tranche of their booklets in one of the secondhand bookshops in Cheltenham. One was on how the state couldn’t manage industry. This looked at four examples of state industrial projects, which it claimed were incompetently run and a waste of money. One was the Anglo-French supersonic airliner, Concorde. The booklet had a point, as many of the industries they pointed to, like British Leyland, were failing badly. Concorde when it started out was a massive white elephant. It was hugely expensive and for some time there were no orders for it. But now it is celebrate as a major aerospace achievement. While the British aircraft industry has decline, the French used the opportunities and expertise they developed on the project to expand their own aerospace industry.

Looking at the booklet, it struck me how selective these examples were. Just four, out of the many other nationalised industries that existed at the time. And I doubt the pamphlet has worn well with age. Ha Joon Chang’s 23 Things They Don’t Tell You About Capitalism and John Quiggin’s Zombie Economics have very effectively demolished their shoddy and shopworn free market capitalism, and shown how, rather than encouraging industry and prosperity, it has effectively ruined them. Read these books, and you’ll see just why we need Corbyn, whatever the champions of free market capitalism scream to the contrary.

Oh yes, and ladies, particularly, be warned. This is an anti-feminist organisation. Mike mentions in his article that it has a spokeswoman, Kate Andrews, who turns up regularly on Question Time to push for the privatisation of the NHS. Or rather, its reform, as they don’t want to alarm the populace by being too open about what they want to do. Despite this feminine face, this is an organisation that has very traditional views about gender roles. One of the pamphlets I found had the jaunty title Liberating Women – From Feminism. The booklet was written by women, and I know that some women would prefer to be able to stay home and raise their children rather than go to work. And that’s fine if it’s their choice. But this outfit would like to stop women having a choice. Rather than enabling women, who choose to stay home, to do so, they would actively like to discourage women from pursuing careers.

The IEA really is a grubby organisation, and the sooner it’s discredited everywhere, the better. Like the Tories.

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Now Tories Troubled by Split

February 21, 2019

Yesterday, a group of three MPs, Sarah Wollaston, Heidi Allen and Anna Soubry, defected from the Tory party to join the Independent corporation, that had split from Labour.

At their press conference they gave three reasons why they had left. Heidi Allen said she was disgusted with the suffering the party had inflicted and its lack of benevolence. For Sarah Wollaston, it was the harm the Tories had done to the manufacturing industry. And for Anna Soubry it was the way her former party had wrecked the country with their massively inept handling of Brexit. Or it might have been Wollaston, who was most concerned about Brexit, and Soubry about the destruction of Britain’s manufacturing sector under the Tories. This is how the reasons for their departure was presented on one of the short videos on YouTube, although I got the impression from listening to Heidi Allen speaking on the 45 minute long video of their press conference put out by Channel 4 News that she was also concerned about Brexit and the attack on manufacturing, as she also ran her own manufacturing firm.

The Tories, who had previously been gleefully exploiting Chuka Umunna and company’s split from the Labour party, were left outraged in their turn. Hunt gave a speech saying how much he regretted the departure of such valued colleagues. Other Tory functionaries demanded that the Splitters should now call a bye-election. Just like the real supporters and activists in the Labour party have been demanding Umunna and his coteries of bitter Blairites do.

I don’t know how sincere Allen and her two colleagues are about the suffering caused by the Tory party. She made a number of speeches saying how upset she was by the suffering caused by her former party’s wretched welfare reforms, but voted for them all the same. So in her case it was, as Mike pointed out, a case of crocodile tears. She may be genuine, and that after years of dutifully following the party line her conscience has won at last. Or it may simply be that, like some other Tories, she’s just worried that the electorate will punish the Tories for the misery they’ve inflicted at the next election.

I think the three’s statement that they’re concerned about British manufacturing and the devastating effects of Brexit are rather more genuine. Margaret Thatcher and Blair in his turn ignored the manufacturing sector. One members of Thatcher’s cabinet, who was the only member in it from that sector of the economy, described how he couldn’t get Thatcher to understand that a strong pound would harm British manufacturing by making our products more expensive. She also uncritically accepted as an article of her neoliberal, free market dogma, that failing firms and industries should be allowed to go under, and should not be given government assistance. Which contrasted with Labour’s promotion of the National Enterprise Boards and state assistance for British industry, where the government would help firms acquire plant and equipment.

And as a good Thatcherite, Blair also adopted her destructive attitude to British industry. He was also quite happy to see British manufacturing collapse. Instead, its place at the heart of the British economy would be taken by the financial sector and the service industries. Deanne Julius, a leading official at the Bank of England, recruited from America, actually said that Britain should give up its manufacturing industry, and simply concentrate on the service industries.

The result has been that vast swathes of traditional British industry have been destroyed by Thatcherism, including mining. Which was done simply to destroy the miners’ union, so they could never overthrow a Tory government as they had Heath’s. However, as Ha Joon-Chang has shown in his book, 23 Things They Don’t Tell You About Capitalism, manufacturing is still an extremely important part of the British economy. It looks weak simply because it hasn’t expanded as much as the other sectors of the British economy. But if it went, the British economy would collapse completely.

As for Brexit, the past few weeks have seen company after company leave the UK because of the Tory party’s incompetence. They’re leaving because we haven’t reached a trade agreement with EU, and so the tariff barriers that will be erected after Britain leaves will make it difficult for them to sell their products after our departure. The latest firm to announce it was closing down its British plant has been Honda in Swindon. When this goes, so do 3,500 jobs.

But I doubt that this will concern those in the Tory party demanding a hard Brexit, like the odious Jacob Rees-Mogg. The financial sector has also been hit, with various banks and international financial regulators announcing that they will leave Britain for Dublin, Paris and the Netherlands. But this doesn’t seem to dismay Mogg and his comrades. They seem to be all financiers, who make their money through investing in companies around the world. And so the destruction of the British manufacturing sector simply doesn’t affect them. They’ll get their money anyway.

The Tory party is seriously split over Brexit. It was to call the Eurosceptics’ bluff that Cameron called the referendum in the first place. He was so confident that people would vote ‘remain’ that he didn’t do any proper campaigning. The result was that he was astonished when the ‘Leave’ vote prevailed. But I gather that the Tories were on the edge of splitting years before, when Tony Blair was in power. Blair stole their policies, and indeed moved further right than the Tories had dared. The party was also split between the Tory paternalists and Thatcherites, and the rural sector, which believed that British agriculture and country communities were being ignored. I’ve heard it said that if Brown had won the 2010 election, the Tories would have collapsed completely, and would have tried to rebrand themselves instead as the English Nationalists. This has the ring of truth, as I do remember one opinion piece in the Heil actually recommending that the party thus rename itself.

I hope that the departure of Allen, Wollaston and Soubry will spark a series of other defections from the Tories and bring about the party’s much-need demise. It’s brought nothing but misery and poverty to Britain’s working people since Thatcher came to power in 1979. And even if the party doesn’t collapse completely, I want there to be so many defections that at the least it causes the collapse of May’s vile, malignant, destructive government.

Tory Health Minister Matt Hancock Receiving Donations from NHS Privatisation Think Tank

February 2, 2019

On Monday Mike published a very interesting piece revealing that Matt Hancock, the Secretary of State for Health and Social Care, has been receiving donations of between 2,000 and 4,000 pounds after his election in 2010. The donor is one Neil Record, a currency manager. Who is also the head of the board of the Institute of Economic Affairs. The IEA is one of the key think tanks behind Thatcher’s programme of privatizing everything that isn’t nailed down, and destroying the welfare state. All for the benefit of private industry, of course. It is very firmly behind the privatization of the NHS, and the IEA is campaigning to introduce a private medical service funded by private health insurance, as in the US. Where their system has broke down to such a level that 40,000 each year die because they can’t afford their medical care, and where 7 million Americans last year lost their insurance cover.

However, the IEA, according to Mike, has responded to critics of NHS privatization by saying that they’re opposed patients having a choice.

Ah yes, ‘choice’. That old Thatcherite canard. I can remember being told by one of the Tory students at College that private industry provided ‘choice’. It was one of the mantras of Maggie Thatcher. Someone once asked her what the essence of Christianity was. Her answer was simple: ‘Choice’. So, nothing about salvation from sin, the healing of a broken world, the moral duty to work for the public good and create a better society, provide for the poor, the sick, disabled and marginalized. No, nothing about that. Just ‘choice’. No wonder she fell out with Archbishop Runcie and the Scots Kirk. She had no idea.

Mike concludes his piece on Hancock with the words

In fact, privatisation would force patients into insurance schemes that are unlikely ever to pay out, meaning patients would end up with no choice at all.

The IEA is a firm fan of such insurance schemes.

And our Health Secretary takes its bribes cash.

We’ll need to watch this one carefully. Will he try to use Brexit to put through his real paymasters’ plan?

See: https://voxpoliticalonline.com/2019/01/28/how-can-we-trust-the-tory-government-when-its-ministers-behave-like-this/

It isn’t just the fact that the private insurance schemes the Tories and New Labour would love to force us all into won’t pay out that makes all the claims of ‘choice’ a farcical lie. It’s the fact that under Blair’s introduction of private medical care in the NHS, costs still have to be kept down. Blair’s reforms were based on those of the private healthcare group, Kaiserpermanente in America, which he wrongly believed provided better value for money that state-managed healthcare. Under their system, there was a special office that looked into the comparative treatment prices of different hospitals, and the patient got sent to the cheapest, regardless of what he or she personally wanted. There was no choice.

I’m not at all surprised that Hancock has been receiving money from the privatisers. All the Tories and New Labour have. The privatization of the NHS was heavily pushed by private healthcare firms like Unum under John Major and his wretched health secretary, Peter Lilley, and then under Tony Blair. Who was surrounded by any number of private healthcare companies desperate for some of that sweet, sweet NHS action. Like BUPA, Nuffield Health, Virgin Healthcare, Circle Health and others.

As for the IEA, I found a slew of their pamphlets in one of the secondhand bookshops in Cheltenham, and actually couldn’t believe how bad they were. There was one pamphlet arguing that the state can’t run industries, as shown by about 4-6 very carefully selected examples. One of them was Concorde, which did initially have a very difficult time selling the plane. However, while British aerospace companies have continued to be troubled, the French used the expertise they developed with the project to expand theirs. And Ha-Joon Chang in his book, 23 Things They Don’t Tell You About Capitalism shows very clearly that the state very much can run private companies very successfully. The examples in the IEA pamphlet are obviously very carefully cherrypicked.

And I don’t think it’s just in the economic sphere that the IEA is a backward influence. Along with this pamphlet was one Liberating Women from Feminism, which I think was basically arguing that the ladies should give up any hope of having a career or equality, and go back to running the home. I’m sure some women would like to, and that’s fine if it’s their free choice and they find it fulfilling. But the majority of women these days want a career and economic parity with blokes. And the IEA’s campaign against that would leave many women without any choice, as it was until only a few decades ago. Which all shows how much they really believe in ‘choice’.

Get the IEA and the other privatizing think tanks out of politics, and Matt Hancock and Tweezer out of government. We need a real, socialist Labour government to restore the NHS. A government that has to be led by Corbyn.

Tony Benn on Capitalism’s Failure and Its Use as System of Class Control

January 6, 2019

I put up a long piece the other day about two books I’d bought by Tony Benn, one of which was his Arguments for Socialism, edited by Chris Mullin (Harmondsworth: Penguin 1979). Benn is rightly revered as one of the great champions of socialism, democracy and working people of the late 20th and early 21st century. Reading the two books I ordered has been fascinating, because of how so much of them remain acutely relevant to what is going on now, in the last years of the second decade of the 21st century. It struck me very hard that you could open his books at random, and find a passage that would still be both highly enlightening and important.

One such passage is in the section of his book, Arguments for Socialism in the chapter dealing with the inheritance of the Labour party, where he deals with Clause IV. This was the section of the Labour party’s constitution which committed it to the common ownership of the means of production, distribution and exchange. This was removed in the 1990s by Tony Blair in his desire to remodel Labour as a capitalist, Thatcherite party. Benn however fully supported nationalization and wished to see it expanded beyond the public utilities and the coal and steel industries nationalized by the Attlee and later governments. This was to be part of a genuine socialist programme to benefit and empower working people. He also argued that this was necessary because capitalism had not produced the benefits claimed by its early theorists, and was simply maintained because it was a useful instrument of class control by the capitalists themselves, particularly the financial section. Benn wrote

The phrase ‘common ownership’ is cast widely enough to embrace all forms of enterprise, including nationalized industries, municipal and co-operative enterprises, which it is envisaged should provide the basis for the control and operation of manufacturing, distribution and the banks and insurance companies.

In practice, Labour programmes and manifestos over the years have focused primarily on the great monopolies of financial, economic and industrial power which have grown out of the theoretical operation of a free market economy. For the ideas of laissez-faire and free enterprise propounded by Adam Smith and carried forward by the Manchester School of Liberal Economists until they reappeared under the new guise of monetarism, have never achieved what was claimed for them.

Today, capitalist monopolies in Britain and throughout the world have long since ‘repealed the laws of supply and demand’ and have become centres of political power concerned principally with safeguarding the financial investors who have lost the benefits of shareholder democracy and the great self-perpetuating hierarchy of managers who run them. For this purpose they control the media, engage in direct propaganda and on occasions have been found guilty of corrupt practices on a massive scale or have intervened directly to support governments that will allow them to continue their exploitation of men and materials for their own benefit. (Pp. 41-2).

This has been thoroughly proved by the last four decades of Thatcherism and Reaganomics. The shareholder democracy Thatcher tried to create through the privatisations of the ’80s and ’90s is a failure. The shares have passed out of the hands of the working class investors, who bought them, and into those of the traditional capitalist middle class. Shareholder democracy within companies has also been shown to be extremely flawed. A number of companies have spectacularly gone bankrupt because of serious mismanagement. The directors put in place to safeguard the interests of shareholders either ignored or were participants in the dodgy schemes of the managers they were supposed to supervise. Furthermore, in many companies while the numbers of workers have been cut and conditions for the remaining staff has deteriorated with lower wages, the removal of workers’ rights and zero hours contracts, management pay has skyrocketed.

And some economists are now turning against the current economic consensus. Ha-Joon Chang’s 23 Things They Don’t Tell You About Capitalism has shown that laissez-faire capitalism doesn’t create prosperity, economic growth and jobs. He still supports capitalism, but demonstrates that what genuinely does work to benefit countries and the majority of their people economically is state intervention. He shows the benefits of nationalization, workers’ participation in management and protectionism. The American economist, John Quiggin, has also attacked contemporary laissez-faire Thatcherite, Reaganite capitalism, arguing very clearly that it is so wrong it’s intellectually dead, but still justified and promoted by the business elites it serves. He calls it in the title of his book on it, Zombie Economics, which has the subtitle How Dead Ideas Still Walk Among Us.

Thatcher’s much vaunted monetarism was effectively discarded even when she was in power. A friend of mine told me at College that Thatcher had quietly abandoned it to try to stimulate the economy instead through the old Keynsian methods of public works. And I can still remember the controversy that erupted in the early ’90s when Milton Friedman announced that monetarism was a failure. The Heil devoted a double-page article to the issue, one page arguing for it, the other against.

Tony Benn was right. Monetarism and the laissez-faire capitalism of Thatcher and Reagan was simply a means to entrench and give more power to the financial class. State intervention, nationalization and proper trade union representation were the way to protect the interests of working people. It’s long past time the zombie economics of the Blairites, Lib Dems and Tories was finally consigned to the grave, and a proper socialist government under Jeremy Corbyn and Bernie Sanders elected in Britain and America instead.

Adolf Hitler on Industry and Nationalisation

December 21, 2018

I’ve put up several articles making the point that the Nazis weren’t socialists, and that the promoted monopoly capitalism. However, Hitler did not want civil servants or Nazi apparatchiks to have interests in business because of the dangers of corruption. His example was the Danube Shipping Company, a private German firm which massively profited by having sitting members of the Weimar government on its board, who then awarded the company very large subsidies.

Some of Hitler’s views on the question of private industry versus nationalization can be found in his after dinner conversations, recorded by Martin Bormann, Hitler’s Table Talk (Oxford: OUP 1988). Hitler said

I absolutely insist on protecting private property.
It is natural and salutary that the individual should be inspired by the wish to devote a part of the income from his work to building up and expanding a family estate. Suppose the estate consists of a factory. I regard it as axiomatic, in the ordinary way, that this factory will be better run by one of the members of the family than it would be by a State functionary-providing, of course, that the family remains healthy. In this sense, we must encourage private initiative.

On the other hand, I’m distinctly opposed to property in the form of anonymous participation in societies of shareholders. This sort of shareholder produces no other effort but that of investing his money, and thus he becomes the chief beneficiary of other people’s effort: the workers’ zest for their job, the ideas of an engineer of genius, the skill of an experienced administrator. It’s enough for this capitalist to entrust his money to a few well-run firms, and he’s betting on a certainty. The dividends he draws are so high that they can compensate for any loss that one of these firms might perhaps cause him. I have therefore always been opposed to incomes that are purely speculative and entail no effort on the part of those who live on them.

Such gains belong by right to the nation, which alone can draw a legitimate profit from them. In this way, at least, those who create these profits – the engineers and the workers – are entitled to be the beneficiaries. In my view, joint-stock companies should pass in their entirety under the control of the State. There’s nothing to prevent the latter from replacing these shares that bring in a variable interest by debentures which it guarantees and which produce a fixed interest, in a manner useful to private people who wish to invest their savings. I see no better method of suppressing the immoral form of income, based only on speculation, of which England to-day provides the most perfect example. (pp. 362-3).

He also believed that the power industry should be nationalized in some way.

It’s obvious that the power monopoly must be vested in the State. That does not exclude the participation of private capital. The State would offer all its securities for investment by the public, which would thus be interested in the exploitation of the monopoly, or, rather, in the favourable progress of State business. The fact is that, when State affairs are not prospering, the holders of certificates can put a cross through their unearned incomes-for the various affairs in which the State is interested cannot be dissociated. The advantage of our formula would be to enable everyone to feel closely linked with State affairs. To-day, unfortunately, most people are not clear-sighted enough to realise the closeness of this link.

What is true of the power industry is equally true of all the essential primary materials – that is to say, it applies also to petroleum, coal, steel and water-power. Capitalist interests will have to be excluded from this sort of business. We do not, of course, contemplate preventing a private person from using the energy of the tiny stream that powers his small works.

In fact, Hitler was resolutely against profit-sharing and anything remotely like worker’s control in industry. He despised socialism, which he reviled as ‘Marxism’ and the trade unions. They were banned, and their members sent to the concentration camps. In their place was the Labour Front and its councils of trustees in factories, which were there to mediate between the workers and management, and to enforce the authority of the latter.

But Hitler is absolutely right about the problems of joint-stock firms. The Korean economist, Ha-Joon Chang, in his book 23 Things They Don’t Tell You About Capitalism, states that one of the problems with shareholder capitalism is that if the firm appears to be in trouble, the shareholders withdraw their money to invest in a better prospect somewhere else. This exacerbates the firm’s troubles. Those enterprises, which are either wholly or partly nationalized, or which have a degree of worker’s control, tend to be much more resilient as the state and the workforce have a greater interest in maintaining it as a ongoing concern.

As for the nationalization of the power and related industries, that was so obviously needed in Britain that when the Labour party nationalized the electricity and coal industries in late forties there was little opposition from the Tories and the Liberals.

Now Hitler’s own ideas on nationalization are very peculiar. He seems to wish to retain some aspects of capitalism after nationalization by allowing people to buy bonds in them. Or something like that. But when Margaret Thatcher was busy privatizing the utilities and everything else she was able to get her grubby mitts on, one of the leaders of the Labour party at the time also suggested that the party should instead look at schemes of issuing bonds in nationalized industries. This would also combine the perceived advantages of privatization with those of nationalization.

This scheme was suggested at the time when Maggie’s privatization programme was popular, or pretended to be. Her aim was to spread corporate ownership far beyond its traditional narrow base in the middle class, hence her reforms of the stockbroking industry. Britain was to become a capitalist nation of small investors.

This dream came to an end over a decade ago. By the early years of this century the Financial Times reported that the ordinary people at whom Thatcher had aimed her share-ownership scheme, had sold theirs and that all, or almost all of them, were once more back in the hands of major investors. In other words, the traditional, property-owning middle class.

Hitler was a monstrous tyrant, whose party plunged Europe into a war which killed forty millions, and who murdered 6 million Jews and 5 1/2 million non-Jews in the hell of the concentration camps. And it shows how far wrong Thatcherite orthodox economic theory is when even he talks sense about some subjects.

Privatisation has failed. It has failed to provide the investment needed to maintain and expand the utilities and other industries, and instead any profit these firms make now go out of the country to their foreign owners. It’s about time this was ended, and the firms renationalized, with their workers given seats on the board and a role in management.

Andrew Marr Praises Steven Pinker’s Book on Science, Rationality and Free Markets

February 28, 2018

Mike has posted a number of pieces on his blog commenting on the right-wing bias displayed by Andrew Marr on his Sunday morning show. One recent example of this was his comment to a Tory guest, who came on immediately after he had given a hard interview to someone from the Labour Party. His interview of the Tory was softer, and at the end of it he leaned over to tell her that she had done ‘very well’. Or something like it.

I’m not surprised by this bias. Marr is a fan of the free market, the sacred ideology at the heart of Thatcherism, against which no-one is allowed to blaspheme or question. He was in the I newspaper a few weeks ago praising Steven Pinker’s new book, which argues that the world has got immensely better due to science, reason and markets. Pinker’s a neuroscientist and atheist polemicist. The book’s a successor to his previous work, The Better Angels of Our Nature. This was written to refute the claim that the 20th century was the bloodiest period in human history. This argument has been made in defence of religion, as much atheist polemic is based on the violence and bloodshed that has been generated by religion. But the 20th century is a problem, as the massacres and genocides there took place within an increasingly secular world, and in the case of the horrors committed by Communist regimes, were perpetrated by aggressively atheist regimes. And in the case of the Fascist regimes, it’s questionable how religious they were. General Franco in Spain believed that he was defending Christianity from secularism and materialism when he launched his attack on the Republican government, and horrifically many Christians did support the Fascist regimes against the supposed threats of Communism and Socialism. I’m well aware that Hitler claimed that he was doing ‘the Lord’s work’ in persecuting the Jews in Mein Kampf, but in his Table Talk he has nothing but contempt for Christianity, and wants astronomical observatories set up near schools as part of a scientific campaign against the religion. Hitler’s own religious beliefs seem to have been a kind of monistic pantheism, possibly not that far removed from those of the Monist League, who also sported the swastika as their symbol. As for Mussolini, the Italian dictated signed the Lateran Accords with the papacy, in which the Pope finally recognised Italy’s existence as a state in return for Roman Catholic religious education in schools. But il Duce had started out as a radical socialist, and many members of the Fascist party still were vehemently atheist. Much depended on the religious opinions of the local Fascist ras whether Roman Catholic religious education was taught in the schools in his area. I don’t wish to go into this argument now, whether these regimes were really atheist or not, or if the 20th century really was the bloodiest period in human history. I just wish to make the point that this was the issue at the heart of Pinker’s previous book.

Pinker’s new book apparently tells us that everything’s getting better, including the environment, and Pinker marshals an impressive arrays of facts. But all this said to me was that people and governments have become more ecologically conscious. It does not mean that we aren’t facing the devastating loss of an extraordinary number of this planet’s animal and plant species, or that we face catastrophic global warming which may make the Middle East uninhabitable.

But even more questionable is Pinker’s and Marr’s assertion that modern, post-Enlightenment society has been immensely improved thanks to the science, reason and markets. In the case of science and reason, at one level the statement is obviously true. Human life has benefited immensely from scientific advance, particularly in medicine. But the view that science and reason didn’t exist before then is one that many Medieval scholars would strenuously reject. In contrast to the stereotypes, the Middle Ages actually wasn’t anti-science. There are poems from the 12th-13th centuries celebrating it, and the new knowledge that was flooding into Europe from the Islamic world. The 15th century English poem, The Court of Sapience, lists the various branches of knowledge known to the medieval world, and celebrates them as the area of ‘Dame Sapience’, an idealised personification of wisdom. As for superstition and the occult, historians have also pointed out that the Middle Ages were also an age of scepticism as well as faith. Medieval theologians wrote texts arguing that visions of demons were more likely caused by a full stomach interfering with the correct functioning of the nerves, and so causing bad dreams. Others doubted whether the seers, who claimed to be able to identify thieves through peering in bowls of water or other reflecting surfaces, had any such powers, and were simply using common knowledge to put the blame on notorious thieves. And in contrast to what Marr apparently thinks, free market capitalism did not suddenly emerge in the 18th century with the French Physiocrats and then Adam Smith. In fact, some Christian theologians were arguing for free trade as far back as the thirteenth century.

As for free market capitalism benefiting humanity, the evidence today is that it really doesn’t. The neoliberalism ushered in by Thatcher and Reagan has done nothing but make the lives of the poor much poorer across the world, and in so doing has increased international tension and political violence. The Korean economist, Ha-Joon Chang in his book 23 Things They Don’t Tell You About Capitalism, shows how the strong economies of the world’s developed nations were all created, not by free trade, but by protectionism.

This is very clearly not something any true-blue Thatcherite wants to hear. But it also shows the strange, cult-like nature of the ideology of free trade capitalism. A number of writers have pointed out the apparently illogical, absolute belief its supporters have, even when they are shown the plentiful evidence to the contrary. They still go on believing and demanding free market solutions, even when it is abundantly clear to everyone else that not only do they not work, they are even causing immense harm. And Marr is clearly one of these true believers. He also seems to have uncritically accepted the view that science, reason and free market capitalism were all products of the Enlightenment, when academic historians have been pushing the origins of science and capitalism further back to the Middle Ages, and demonstrated that the Age of Faith was also one of Reason, however irrational it now seems to us.

Marr’s praise of the book and its promotion of the free market also gives more than an indication of his own political beliefs, and why he is much less sympathetic to left-wing guests on his show than those from the right. He’s another member of the cult of neoliberal market capitalism, and this has to be protected at all costs from unbelievers. Even when he and the Beeb swear impartiality.

Another Fascinating Video from Ha-Joon Chang

August 17, 2016

I put up a piece yesterday about an interview Owen Jones made with Ha-Joon Chang, a South Korean lecturer in economics at Cambridge. Mr Chang’s the author of 23 Things They Don’t Tell You About Capitalism. He makes it clear in his book that he is not opposed to capitalism, but is very definitely opposed to neoliberal economics, the free market rubbish that has dominated global economic policies at the expense of the poor since Thatcher and Reagan. The book’s well worth reading, if you can find a copy. It’s written for the general reader, and so is written in clear, simple language to make a devastating critique of current economic dogma. He shows how states can make good economic decisions, constructing and managing efficient industries and planning the general economy. The welfare state does not make people lazy, but actually makes them willing to accept change. And western, developed nations are hypocritical and destructive in demanding that the developing world should open their countries up to free trade. He shows very clearly on this point that both Britain, America and the other industrialised nations actually industrialised under a system of very strict protectionism to keep foreign competition out and protect their nascent industries. He also goes on to disprove some of the twaddle that’s been talked about the difficulties Africa faces in industrialisation, such as tribal conflict and the supposed racial or national character of its peoples. He points out that there were also vast ethnic or regional friction in the developed countries of Britain, France, and even Korea, for example, until very recently. As for the supposed laziness of Africans, this was also said in the 19th century of a people, who now have a colossal reputation for hard work: the Japanese. It was also said of the Germans even further back in the 16th century.

Michelle also commented on the piece, and enclosed a link to another of Mr Chang’s videos. She wrote

Several years back when I used to blog I had links to Ha-Joon Chang’s writings, he’s brill! This recent RSA animate video of his perspective is also very much worth a watch, ‘ ‘Economics is for everyone’ (or thinking outside the matrix part one, to go with Beastie’s post): https://www.youtube.com/shared?ci=_a53Qt0ZpsUhttps://www.youtube.com/shared?ci=_a53Qt0ZpsU

When I posted both these links last week, a commentator rightly said “Neoliberalism is not a matrix it’s a crime against humanity.”

I haven’t seen the video, but anything by Chang is bound to be great. And I entirely agree with her last comment. Neoliberal has caused mass suffering across the globe. It is responsible not just for a growing number of impoverished people, both unemployed and in work, in this country, but also for wrecking the economies of whole nations in the Developing World. People are dying of starvation in this country. It’s contributed to mass starvation there. And this has also fuelled political and social unrest, from militant Islamism, to Marxist uprisings and piracy off Somalia and the South China Sea and Indian Ocean. In terms of the magnitude of the suffering it’s caused, it is indeed almost literally a crime against humanity.

Owen Jones Meets Critic of Neoliberal Economics, Ha-Joon Chang

August 16, 2016

Ha-Joon Chang Pic

In his series of videos on YouTube, Owen Jones, the author of Chavs: The Demonisation of the Working Class, goes to meet with various public figures. These include Jeremy Corbyn, Peter Hitchens and so on. In this video he talks to Ha-Joon Chang, a South Korean economics professor at Cambridge University. Chang’s interesting as he’s a critic of Neoliberalism, the free market economics that has been this country’s political dogma since the Margaret Thatcher. I put up a post a little while ago on Chang’s 23 Things They Don’t Tell You About Capitalism.

The conversation begins by Chang attacking the government’s decision to cut public spending in order to shrink the debt. He says that public debt represents public demand, and if you shrink it, the economy will also shrink, and you’ll still be left with a massive debt. This is what has happened to Greece. It’s far better actually to put more money into the economy. When Jones asked him if Osborne was stupid for pursuing this policy, Chang states very clearly that Osborne did it for other reasons – to undermine and destroy the welfare state, and make the country more like America.

The two then discuss whether it really is a case of capitalism for the poor, and Socialism for the rich. The welfare net for the poor is being destroyed, but there are massive subsidies for the rich. Chang makes the point that big business demands these subsidies, but when the issue of taxation is raised, that’s an entirely voluntary matter, and they’ll start an offshore bank account to avoid paying it. He also discounts the Libertarian attitude that ‘taxation is theft’. He makes the point that wealth is socially created. The attitude that taxation is theft may have made sense in the 16th century, when most people were independent farmers, but it doesn’t apply today, when you need a whole ranges of services to create wealth. They also remark on the double standards about the issue of inequality and greed. Libertarians and neoliberals like greed, because it supposedly stimulates the economy. But as soon the poor start resenting the excessive wealth of the rich, then they denounce them for being envious. Chang states that you can’t have inequality, as it means the poor and rich aren’t living in the same world. They might inhabit the same geographical area, but it’s like one was living in the 22nd Century and the other in the 18th and 19th.

Jones makes the point that whenever anybody discusses nationalisation, they automatically go back to the 1970s and the inefficiency of the services then. Chang states that nationalisation isn’t necessarily the answer, as if something is properly regulated you can have the benefits of nationalisation without it. However, there are examples where private enterprise, or at least unregulated private enterprise doesn’t work. He compares the British and Japanese rail networks. The British rail network now consumes massive subsidies, and is the most expensive in Europe. It doesn’t work, because you can’t have a competitive system on the same piece of railway.

Jones also tackles him about the welfare state. Isn’t it true that it’s bloated, and encourages people to be lazy and feckless. Chang states that there is one aspect to that question that he does agree with. He believes the welfare state does need some reform, as it was created in the 1940s-50s. Now people are living longer, nearly 30 years after their retirement. But he says there’s little evidence that it makes people lazy, and criticises the way people have stopped talking about it as an important form of social security. He makes the point that in countries with a strong welfare state, people are much more willing to accept corporate restructuring. Such as in Sweden, for example. This is not to say they prefer it, but they are willing to accept it. In countries like America where there is little in the way of a welfare state, workers, even if not unionised, are much more resistant to change because they can lose everything.

Chang also talks about the difference between classical liberalism, democracy and neoliberalism. Neoliberalism is a return to the economic doctrines of the 18th and 19th century, when the only form of liberty that mattered was the liberty to own and use property how you wanted. Initially, liberals weren’t democrats, because they feared that democracy would limit the freedom of the property-owners to do as they wished. Neoliberalism is a return to this system, with a bit of democracy. However, the political situation is altered so that democracy does not interfere with the liberties of the propertied classes. For example, they’re in favour of an independent central banks, as then it doesn’t have to be accountable to government over interest rates and the effect that may have on society. They’re also in favour of independent regulatory authorities, as that won’t allow government to interfere with private industry either.

Lastly, Jones asks him if he believes that the system will ever change. Chang makes the point that the past several decades have seen changes that people did not believe would happen. He talks about how Maggie Thatcher 25 years ago said that there would never been Black majority rule in South Africa. If you go back fifty years, then the leaders of the African independence movements were all hunted men in British prisons. It may not happen for decades, but eventually change will come. He quotes a proverb, which says that you must be a pessimist in your head, and an optimist in your heart. Above all, you have to keep fighting, as they won’t give you anything.

Here’s the video:

Vox Political: Real Wages Fall by Ten Per Cent Under Tories

July 30, 2016

Mike also published a piece last week on a report published on Wednesday by the TUC, which found that while wages had grown in real terms across the EU between 2007 and 2015, they had fallen in Britain by 10.4%. The average rise in wages across the EU was 6.7 per cent. In Poland, wages had risen by 23 per cent. In Germany wages rose by nearly 14 per cent, and in France by 10.5 per cent. The only countries across the OECD which suffered a fall in wages were Portugal, Britain and Greece.

Mike’s article has two illustrations – one is a graph showing the rise in real wages in various countries, while another is a meme showing the massive pay rises enjoyed by other, very privileged groups, in Britain. Like Bankers, whose pay has risen by 35%, directors of FTSE 100 companies, 14%, and MPs, whose pay has gone up by 11%.

Mike makes the point that New Labour must share some of the blame for this, as not only was Peter Mandelson and his chums very relaxed about people making money, they were also extremely relaxed about wages stagnating. He makes the point that the crash his the poorest the hardest, and the austerity launched by the Tories has been punishing and impoverishing the poor to bail out the bankers and the rich. He also makes the point that Owen Smith’s solutions are just cosmetic, and won’t do anything without concrete proposals for the redistribution of the extra money gained through the ‘wealth tax’ he proposes.

See the article: http://voxpoliticalonline.com/2016/07/27/real-wages-in-the-uk-have-fallen-by-more-than-10-per-cent-under-tories/

Mike’s right about New Labour being very relaxed about wages stagnating. In fact, wage restraint has been a major part of the neoliberal consensus ever since Maggie Thatcher took power in 1979. Keynsianism tolerated high inflation – and in the 1970s at times the inflation rate in Britain was truly eye-watering – as it was coupled to an expanding economy. Both Labour and the Tories attempted to keep pay rises within certain boundaries nevertheless. Thatcher’s Monetarism was much harder towards inflation. It saw this it as the major obstacle to economic growth, and so demanded that it be ruthlessly cut, even if this meant shedding jobs on a truly massive scale, accompanied by a fall in real wages, and the dismantlement of various welfare programmes. It also meant abandoning the Keynsian commitment, pursued over 40 years, to full employment.

Robin Ramsay in a piece on his ‘News from the Bridge’ column in Lobster, made the point that when he was studying economics at Uni in the 1970s, Monetarism as an economic theory was so poorly regarded by his lecturers that they left it to the undergrads to work out what was wrong with it. Which shows you it was known even then to be totally rubbish and useless. He argues that it was adopted by the Tory party because it gave them a rationale for doing what they wanted to do on other grounds – destroy organised labour, dismantle the welfare state, including the Health Service, and grind the working class into poverty.

Now a number of economists are pointing out that, despite the emphasis by the Tories on wage restraint and very low inflation rates, the economy is not growing. I think Han Joon Chang is one of these in his 23 Things They Don’t Tell You About Capitalism.

The comparison with Greece is particularly chilling. Greece has been ruthlessly punished by the Troika with very harsh austerity policies, partly because the Greeks dared to defy the Eurozone authorities and elected Syriza, a radical anti-austerity party. Counterpunch has attacked the economic despoliation of the country by mainly German banks as a form of economic warfare. Greece was one of the countries that suffered from the effective collapse of the Eurozone. The result has been grinding mass poverty for its people. One recent programme on the country’s plight showed children picking rubbish off dumps to sale, just as they do in Developing Nations. The presenter looked on, aghast, and made the point that he had never seen this before in what was supposed to be a developed, European country.

Is this what New Labour and the Tories have in store for us? One of the books I found in one of the secondhand bookshops in Cheltenham yesterday was about how Britain would have a ‘third world’ economy by 2014. Clearly the book was written a little while ago, and the timing’s out, but nevertheless, the appearance of third world conditions in Britain is a real possibility. There are already 3.7 million people living in ‘food poverty’, and hundreds of thousands facing off poverty only because of food banks. I also remember how this was predicted on a BBC Horizon programme, entitled, ‘Icon Earth’, twenty years ago. The programme was about how the image of the Earth in space, taken from the Moon by the Apollo astronauts, had affected global religious, political and economic perspectives. That image had stimulated people around the world to realise that everyone on Earth shared a common home. One result of this, so the programme claimed, was globalisation. It discussed the growing campaigns against migration from the developing world with an Indian anti-racism activist. She predicted that as globalisation progressed, pockets of the third world would appear in the first.

She’s right. This has happened with Greece, and it is occurring in Britain, thanks to the Tories and New Labour. But unlike Greece, we cannot blame the EU. We never joined the Eurozone, and the deterioration in wages and conditions will occur because of Brexit. The cause of this stagnation ultimately is three and half decades and more of Thatcherism.

John McConnell Promises National Investment Bank and £500 Billion Credit for UK

July 19, 2016

Mike over at Vox Political has put up another piece today, which reports that Jeremy Corbyn’s deputy, John McConnell, has promised to set up a National Investment Bank, tied in with a network of regional banks, to regenerate Britain’s communities and revive Britain’s industries after years of neglect. The bank is based on the German Development Bank. In addition, he promised £500 billion of investment. This follows Owen Smith’s promise when launching his leadership campaign this week end, to introduce a British ‘New Deal’, and an investment programme of £200 billion.

See Mike’s article: http://voxpoliticalonline.com/2016/07/18/labour-pledges-national-investment-bank-to-mobilise-500bn/

Both McConnell and Smith are right about investment in British firms by the British state being sorely needed. But McConnell is absolutely correct about the necessity of a special British investment bank to channel the money and provide the necessary credit. It’s been needed for decades. The authors of the 1s987 book, Socialist Enterprise, noted that the British financial sector was structured into investing abroad, and recommended the creation of such a bank. Neil Kinnock, in his 1987 book, Making Our Way, recognised the need for it. G.D.H. Cole, in his book, Great Britain in the Post-War World, written as long ago as 1942, recommended a similar radical reform of the banking industry. That should tell you how desperately it’s needed, and why McConnell is right.

Han-Joon Chang, in his book, 23 Things They Don’t Tell You About Capitalism, argues in one of his chapters that it simply isn’t true that we are living in a post-industrial society. Britain still has a manufacturing industry, and it’s still immensely important. It only appears unimportant, because it hasn’t grown as much as the financial sector. It is, however, still of fundamentally vital importance to our economy.

All of this, of course, will be unwelcome news to the Tory party and New Labour. Both of these turned to subsidising and supporting the financial sector as an alternative to, and at the expensive of, manufacturing. One of the functionaries Blair appointed to the Bank of England was an American banker, Deanne Julius, who stated that Britain should give up manufacturing products and leave that to America. As for the Conservatives, half of their funding at the last election came from the City of London. They have no interest and absolutely no desire to aid a British manufacturing revival. Not if it means having to spend government money, rather than rely on a bail-out by a foreign firm.

Way back in the 1970s the late Tony Benn tried something similar. The government set up various zones, and schemes in which firms could receive government grants to renovate and modernise plant and equipment. I don’t think it was taken up, and British firms continued to lag behind their foreign competitors. And the result has been the decimation of British industry in the decades since Thatcher took power.

McConnell and Benn stand for British industry, and investment to create real jobs and economic growth. All Maggie Thatcher did was cut, and hope foreign firms would come in to invest in what was left. All the while favouring the financial sector and her friends in the City. It also shows the hollowness of the Tories’ claim to represent British industry. They don’t. Labour represents industry, and the people who work in it. The Tories simply represent capital and those, who own it. The very people, who seem to enjoy increased bonuses and share options by cutting down to the point of destroying the very firms they manage.