Posts Tagged ‘Capital’

Kenneth Surin on Brexit and May’s Corporate Attack on the Poor

April 20, 2017

On Tuesday, Counterpunch published a long piece by their contributor, Kenneth Surin, on Theresa May’s plans for Brexit, and how this will inevitably harm the poor and the working people of this Sceptred Isle. And it’s what you’re already expecting, if you’ve read the Groaniad, those bits of the I newspaper that are still even remotely genuinely liberal, and bloggers like Mike over at Vox Political, the Canary, Another Angry Voice, The Void and so on. May, he predicts, will talk a hard Brexit in order to counter some of the opposition from the Tory Right, but will leave some room for a soft Brexit. She, Boris Johnson, and the other vicious grotesques currently infesting the halls of power, want to use it to turn Britain into a tax haven. So he predicts that the City of London and its connections to some very dodgy individuals – he has a paragraph giving the names of some of them – will get even murkier. But, as he points out, Britain already is a tax haven through the Channel Islands.

He states that we are likely to be given a very hard deal by the EU. He states that there was friction between Britain and the European Union as while the EU represents the power of corporate capital, it draws a line on their direct influence in government. The lingering Social Democratic tradition in these countries, like France, Germany, and the Scandinavian nations, means that the government governs for industry, but is not run like an industry. Unlike the Neoliberal vision, exported to Britain from the US, which wants government to be run exactly like a business.

He also predicts that May and her grotty team will inflict further misery on the poor, because that’s what appeals to the right-wing British press, like ‘the foreigner Murdoch’ and the ‘tax-dodging, Nazi-supporting Rothermere family’. The Tories will follow Farage, and privatise the NHS, just as the are already privatising services and levying charges for them.

He also rebuts May’s feigned concern for those ‘Just About Managing’, or the JAMs. Despite all the crocodile tears she and her cronies shed, she has done absolutely nothing for them. Wages are still stagnant, the opportunities to upgrade one’s skills are similarly being cut, as are welfare services to support the poor and unemployed.

Surin begins his article also by pointing out that when it comes to the day, the vote on Brexit is likely to be influenced by factors and issues that aren’t really relevant. He also talks about the way May has already shot herself in the foot by trying to promote Brexit using images of places, which have actually benefitted from the EU. Like the northern shipyards, which were given a million pound grant.

Surin begins his piece

“So at this moment of change [Brexit], we must respond with calm, determined, global leadership to shape a new era of globalisation that works for all”.

— Theresa May

“My plan for Britain is not just a plan to leave the EU but a plan to build a stronger economy and a fairer society, underpinned by genuine economic and social reform. To make Britain a country that works for everyone, not just a privileged few”.

— Theresa May

The UK’s Brexit roll-out is a constantly evolving project, zig zagging along because the Tories in charge of it, like everyone else, have no real idea of how it will culminate. So far it has been ad hockery all the way, though one or two of the project’s connecting threads are starting to be visible.

One week, Theresa “the woman without qualities” May, who voted against Brexit, is in favour of a “hard” Brexit (basically one involving no deal of any kind with the EU regarding the single market and immigration), the next she softens her tone and hints that a more placative agreement with the EU, amounting to a “soft” Brexit, might be welcomed in whatever hoped-for way.

Nothing was more symbolic of this chaos and muddled-thinking than the most recent pro-Brexit television broadcast by May, which showed her against the background of ships moving in the Scottish port of Aberdeen.

Oops– the port of Aberdeen was granted a €258 million loan from the European Investment Bank on 20 June 2016, just 3 days before the UK voted to leave the EU!

It all seems to depend on how much heat the pro-Brexit right-wing of her party, citing that chimerical entity “sovereignty”, can turn on her.

Her predecessor, “Dodgy Dave” Cameron, weary of feeling this heat, called the Brexit referendum to cool down his party’s right-wing, absolutely confident in his nonchalantly patrician way that Brits would consider themselves better-off by remaining in the EU.

Such referenda, although purportedly on a single-issue, tend invariably to have outcomes determined very much by the mood of the electorate, which is affected by a plethora of considerations having nothing specifically to do with the issue officially on the table on referendum day.

***

May’s calculation requires her to “talk” a hard Brexit, to neutralize the right-wingers who ended her predecessor’s political career, and to gain the support of the right-wing press– owned by the foreigner Murdoch, the Nazi-supporting and tax-dodging Rothermere family, Richard “Dirty Des” Desmond (the former head of a soft porn empire), the tax-dodging Barclay brothers, and a Russian oligarch.

This overseas-domiciled and tax-dodging (in the cases mentioned) crew have set the low-information agenda for those inclined towards Brexit, so May’s strategy, if we can call it that, has been accommodating towards their hard Brexit stance, while leaving things vague enough for loopholes to enable a “softish” Brexit if needed.

May, craving electoral success, has to cater to all sides and eventualities. The results are likely to be calamitous for the UK.

Why is this?

May’s primary objective is to convey the impression that Brexit will “work for all”.

Alas there is no evidence for this claim.

***

The UK’s pro-Brexit movement, in the absence of anything resembling a Lexit, is not going to be shackled by this or that constraint previously imposed by the EU.

For instance, the UKIP leader Nigel Farage, Trump’s non-American sycophant par excellence, though a minimal figure, has always advocated the privatization of the NHS. And this is exactly what the Tories have been pursuing by stealth since 2010.

***

May has already said she “stands ready” to use Brexit as an opportunity to turn the UK into a tax haven, or as the financial press euphemistically puts it, “a low-tax financial centre”. It is already one of course (this being the primary function of the islands of Guernsey, Jersey, the Isle of Man, and Gibraltar).

What May clearly means is that London’s financial sector, which is already awash in murky water, will become an even muddier swamp able to match similar swamps in the Cayman Islands, Bermuda, Panama, Hong Kong, Singapore, and so forth. Dwellers of these swamps include assorted drug dealers, human traffickers, gun runners, owners of illegal gambling syndicates…

***

In addition to May desiring this state of affairs for the City of London, it is clear from the composition of the team put together by the secretary of state for international trade Liam Fox to negotiate post-Brexit trade deals, that Brexit UK is going to pursue a thoroughgoing pro-corporate agenda.

***

This corporate bonanza will probably be accompanied by a weakening of environmental regulations, since most of the leading Brexiteers are climate-change deniers or supporters of fracking (and in most cases, both).

Pro-Brexit climate-change deniers include Farage, Michael Gove (who tried to ban climate change from the school curriculum when he was education minister), the foreign minister Boris “BoJo” Johnson, Thatcher’s finance minister Nigel Lawson, and the above-mentioned Liam Fox.

***

This hugely attractive and compassionate bunch (sic) are not going to be too concerned about pollution, biodiversity, natural habitats, animals abused by industrial farming, climate change, the prohibition of lethal pesticides, declining fish stocks, the international trade in endangered species, and the use of GMOs, when the agribusiness corporations howl about environmental regulation being a burden to them.

There will be no remotely green agenda under this ghastly crew.

***

May prates on about her deep concern for “just about managing” families (JAMs), but the austerity agenda passed on by the disastrous former Chancellor of the Exchequer George Osborne is being implemented with only a slight cosmetic tweak here and there.

The UK economy has grown since 2010, but, according to the Guardian, 7.4 million Brits, among them 2.6 million children, live in poverty despite being from working families (amounting to 55% of these deemed poor) — 1.1 million more than in 2010-11.

The report cited by the Guardian, produced by the reputable Joseph Rowntree Foundation (JRF), shows that the number living below the Minimum Income Standard – the earnings, defined by the public, required for a decent standard of living – rose from 15 million to 19 million between 2008/9 and 2014/5. The UK’s population is 65 million.

These 19 million people, or just under 1/3rd of the UK’s population, are its JAMs.
***

Social care is becoming increasingly unaffordable for them, the NHS is starting to charge for treatment as it undergoes a backdoor privatization, they have fewer opportunities for upskilling in order to raise their incomes, and so on. This while their wages are stagnant even as the cost of living is increasing for them.

***

Such important and pressing issues need to be addressed as a matter of urgency, but they are not.

The Tories pro-corporate Brexit agenda has become the proverbial tail wagging the dog.

***

Many have a name for what is really and truly going on in the UK and US: class warfare.

The bastards have the underprivileged by the throat. All the mainstream political parties are terrified of offending them, if they haven’t already thrown their lot in with the bastards.

What is desperately needed, for the dispossessed and disadvantaged, is a reversal of this situation, in which many firm hands turn round and grasp the throats of those responsible for the misery of tens of millions of people.

Is there anyone in the almost moribund Labour party, torn apart by infighting caused by its still significant Blairite remnant, capable of saying any of the above unequivocally?

Go read the rest of the article at: http://www.counterpunch.org/2017/04/18/the-calm-determined-stronger-fairer-uk-brexit-zig-zag/

In answer to Surin’s final question, yes, there are plenty of people in the Labour party willing to point all this out. They’ve tried to do so ad infinitum. But the Blairites and the Tory media are doing their best to stop that message getting out. They never report what they say about the detrimental attacks the Tories and Blair have made on the welfare state, the NHS and the economy, but selectively quote them in order to make it all fit the narrative that Corbyn and his wing of the party are ignoring these issues. And it’s done deliberately to fit the narrative of Corbyn as a Trotskyite entryist.

It’s why I’m afraid that the next two months will be a very hard struggle for everyone desperate to save Britain from the corporatist swamp created by the Thatcherites and their media lickspittles.

Capital Investment Funds for Trade Unions on the Continent

May 21, 2016

Introduction Unions Pic

Also in Ben Hooberman’s book, An Introduction to British Trade Unions, is a discussion of a fascinating scheme launched in Denmark to allow the unions to build up a 50% investment fund in industry. Hooberman writes

The Danish trade unions have adopted a programme for a wage earners’ national profit and investment fund. The principle behind it appears to be a form of profit-sharing in which wage earners in private and public employment would be given a share in the capital growth of industry. Employers would contribute 1 per cent of their wages bill in the first year and increase their contribution by 1/2 per cent annually until a fifty per cent contribution is made to the fund each year. It is proposed that the fund should be controlled and administered by the trade unions themselves. The object of the proposal is to create for trade unions a means of controlling capital in industry in the same way as they influence the level of wages and conditions of employment. In both West Germany and France there are in existence means for the payment of ‘investment wages’ to workers. Both the German and French schemes began with legislation; in Germany tax concessions are granted to workers involved in voluntary capital-sharing arrangements, while in France the statutory capital entitlement is calculated directly from annual profits. (P. 74).

This is a fascinating scheme, as if it were logically carried to its conclusion, it would give workers an equal share in industrial capital through the mechanism of capitalism itself. With the systems of works councils recommended by the TUC and EU, it’s more evidence just why Thatcher and the rest of the Tory Right were so frightened of organised labour. And they clearly still are, given by their continuing attempts to destroy the unions.

The continental nature of these proposals also explains why the Tory Euro-sceptics bitterly hate the EU and its Social Charter. It also explains why Thatcher got her knickers in a twist about ‘patriotism’ versus ‘Socialism’, and declared Socialism to be a nasty foreign doctrine. This is ridiculous. Trade Unions first appeared in England, as did the co-operative movement, so certain parts of Socialism are British in origin. And if we’re talking about foreign ideas, so it modern democracy and human rights, come to that. The Rights of Man were first articulated during the French Revolution, and the ideas about free trade espoused by Adam Smith were pioneered by French writers discussing the problems of the agricultural economy in 18th century France. Thatcher’s ideas on this point don’t make much sense, but then, there is so little in Maggie’s ideology that does.

Vox Political and Tax Research: Greek Debt Excuse to Destroy Syriza

January 29, 2015

Mike has a little piece over at Vox Political commenting on a guest post over at Tax Research UK. This begins by stating that the current concerns about Greek debt

is, quite simply, a device to wreck the Syriza government as quickly as possible, and to make sure that what happens can be laid at the feet of that government, and not blamed on the ECB, IMF, EC, or any other EU country, or – and this is most important – global capital (by which I primarily mean multi-national corporations, the 1% and their agents and supporters).

The articles warn that the leaders of multinational capital are alarmed at the fact that for the first time in decades a government has been elected that has rejected Neoliberalism. They predict that over the coming three months, Greece will be subjected to increasing attack and pressure, all to undermine their new government.

The Tax Research UK article further states that the Syriza government is also uncomfortable and unwelcome to the Social Democratic parties in Europe, such as New Labour in Britain, that bought into Neoliberalism, and lobbied hard for the interests of big business, telling their supporter there was no other way.

Syriza is a threat because if it succeeds, it will embolden other, non-Neoliberal parties like the Podremos in Spain. And after strengthening them, it will then spread elsewhere in Europe, most probably first to France. The Neoliberals and their multinational corporate paymasters are on the defensive. And they will do their utmost to bring down Syriza.

Mike comments that it is to be hoped the new Greek president, Mr Tsipras, now has the strength, determination and statesmanlike qualities that so determined Britain’s Churchill in our struggle against Nazism. ‘Cometh the hour, cometh the man.’

Vox Political’s article is at http://voxpoliticalonline.com/2015/01/29/why-debt-is-an-excuse-in-the-case-of-greece-tax-research-uk/.

Tax Research UK’s article is at http://www.taxresearch.org.uk/Blog/2015/01/28/why-debt-is-an-excuse-in-the-case-of-greece-guest-post/

Workers’ Self-Management in Communist Yugoslavia

February 21, 2014

Self-Management Yugoslavia

I’ve put up a lot of posts about Communist Yugoslavia recently, pointing out the similarities between the Coalition’s policies of Workfare and secret courts with the same policies there and the consequent abuses of human rights. The Yugoslav Communist party also used forced ‘voluntary’ labour after the War, and used secret courts to try dissidents, including one of the leaders and architects of the regime, Milovan Djilas. Although Yugoslavia under Tito was very much a one-party dictatorship, there is one policy, which I do find attractive. This was the experiment in Socialist self-management in which the regime attempted to withdraw partly from the economic and political control of the country and hand over some of that to the workers themselves. workers in particular business were given the power to supervise and alter the business plans of the managerial board through a system of workers’ councils, similar to the workers’ soviets in the Soviet Union before they were taken over by the Bolsheviks and turned into a rigid instrument of Communist political control. The Yugoslavian Communists went further and created a producer’s chamber in government, through which these councils and their workers were to be represented in central government. The architects of that aspect of the regime were Djilas and Edvard Kardelj.

Djilas

Milovan Djilas, Yugoslav Communist leader and architect of the Self-Management system.

In Rise and Fall, Djilas explains that they formulated the policy as a result of the Yugoslavian Communist party’s break with Stalin. They resented Soviet attempts to turn their country into a satellite of the USSR, dominating the country politically and economically so that it served Russian needs and interests, rather than their own. As they rejected Stalin, they also began to criticise Lenin and form their own, particular brand of Marxism. Djilas writes:

By late 1949 and early 1950, theoretical thinking among our top people not only had abandoned Stalin,, but als was working its way back to the roots, from Lenin to Marx. Kardelj maintained that one could prove anything with quotations, but that it was impossible to separate Lenin from Stalin completely. After all, Stalin was an outgrowth of Lenin.

As we made our way back to Marx, we often paused in our critical ponderings on the Leninist type of party. It was not only the source and instrument of victory, but a means of moving on after power had been seized. In accepting Marx’s theory of the withering away of the state- and the more decisively we broke away from Stalinism, the more firmly we believed Marx on that point – we realized that such withering away required a change in the role of the party. yet in the domain of party problems, progress was minimal and slow. We kept running up against a solid wall of ossified functionaries and a layer of party bureaucracy already formed and consolidated. (p. 267-8).

Djilas and his comrades found the solution in the passages in Marx’s Das Kapital dealing with associations of producers.

And so, as I perused in Marx those passages dealing with a future “association of immediate producers” as a form of the transition to communism, it occurred to me that our whole economic mechanism might be simplified by leaving administration to those who worked in the enterprises, the state only securing for itself the tax. One rainiy day in late spring, while we sat talking in a car in front of my villa, I presented this idea to Kardelj and Kidric. Both thought it premature. At the same time, trade union officials meeting with Kardelj proposed, among other things, discontinuing the workers’ councils, which had long existed as anemic, purely advisory forms. Kardelj, however, urged that the councils be strengthened. The one day Kidrc phoned me: “You know that idea of yours-now might be the moment to introduce it”. Kardelj was to link my idea to the workers’ councils. (p. 268). They then presented the idea to Tito and the other ruling Communists at the National Assembly’s Hall of Ministers. Tito adopted it, and then defended it to the National Assembly on June 26th 1950. (pp. 268-9).

Edvard Kardelj, in his essay ‘The System of Socialist Self-Management in Yugoslavia’, also points to the passage in Marx’s Das Kapital on social property as one of the influences on the self-management system in Yugoslavia, as well as the comments about the nature of capital in the Communist Manifesto. He also refers to the passage on the Paris Commune in Marx’s The Civil War in France.

The passage in Das Kapital runs as follows

The capitalist mode of appropriation, which springs from the capitalist mode of production, produces capitalist private property. This is the first negation of individual private property, as founded on the labour of its proprietor. But capitalist production begets, with the inexorability of a natural process, its own negation. This is the negation of a negation. It does not re-establish private property, but it does indeed establish individual property on the basis of the capitalist era: namely cooperation and the possession in common of the land and the means of production produced by labour itself.

In the Communist Manifesto Marx also discussed the nature of private property under capitalism.

Capital is therefore not a personal but a social power.
When, therefore, capital is converted into a common property, into the property of all members of society, personal property is not thereby transformed into social property. it is only the social character of the property that is changed. It loses its class character.

In the passage on the Paris Commune, Marx wrote

It wanted to make individual property a reality, by transforming the means of production, land and capital, which now represent the means of enslavement and exploitation of labour, into the instrument of a free and associated labour .. If cooperative production is not to be a falsehood, if it to repress the capitalist system, if the associated cooperatives are to regulate national production according to a joint plan and thus take it undere their own control and put an end to a continual anarchy and periodical convulsions, which are the inevitable fate of capitalist production – what, gentlemen, would this other than communism, the ‘possible’ communism. (See ‘Edvard Kardelj: The System of Socialist Self-Management in Yugoslavia’ in Blagoje Boskovic and David Dasic, Socialist Self-Management in Yugoslavia 1950-1980: Documents (Belgrade: Socialist Thought and Practice 1980) 9-49 (23-4).

Marx was wrong about the Paris Commune. The Communards were motivated less by Socialism – Socialists were in the minority – but by local, Parisian traditions of activism and a patriotic revolt against the regime that had been humiliatingly defeated by the Prussians during the Franco-Prussian War. The Yugoslavian self-management system is interesting as it went further than other experiments in workers’ control, in countries such as Germany and Austria, to try and give workers a larger degree of power in the administration of their businesses and the regulation of the economy. There was, however, a cost to this, in that when Djilas and Kardelj fell from power, the regime used the system they had created to accuse them of ‘Anarcho-syndicalist deviation’, and therefore Marxist heresy.