Posts Tagged ‘G.D.H. Cole’

Helping Labour to Win in the Countryside: Encouraging Rural Industry

December 16, 2018

As well as helping to bail out farmers, Labour could also help to reverse the decline of the countryside by encouraging businesses to relocate there. Shirley Williams, the former Labour politician who defected to found the SDP, which merged with the Liberals to form the Lib Dems, discusses this possibility in her 1981 book, Politics Is For People, published by Penguin as an example of what may be done to promote small businesses. She writes

The Wilson Committee jibbed at setting up a Small Business Agency, though the case for its seems strong. What the Committee did propose was a loan guarantee scheme, under which loans to small businesses would be partially underwritten by the banks, and an English Development Agency with similar powers to those of the Scottish and Welsh Development Agencies in relation to small firms. Thresholds for government support schemes which small firms are unable to cross, the Report said, should be reviewed.

This would be a useful start, but if the long drift towards concentration is to be reversed, much more is needed. The new agency should positively go out and look for products and services which small firms can produce, as COSIRA (Council for Siting Industry in Rural Areas) has done so successfully in rural areas. New firms should be able to qualify for capital loans at a subsidized interest rate, and they should be entitled to similar help when they reach the breakthrough point of rapid growth. This is the stage at which many small innovatory firms go under, because they cannot finance expansion on the scale needed to meet demand. Good legal and accounting services should be readily available through the new agency, which should also offer advice on government schemes that may be helpful. Red tape and form-filling needs to be kept to a minimum, since small firms rarely have the bureaucracy to cope with complicated application forms. The Microelectronic Applications Project introduced by the Labour government of 1976-9 has been successful in attracting several thousand requests for its consultancy scheme, not just because the government met the first 2,000 pounds of the consultant’s fees, but because the procedure for applying is so simple. (p. 121).

Williams is far from my favourite politician because of her role in founding the SDP and its subsequent move to the right. She is also personally responsible for helping the passage of Andrew Lansley’s Health and Social Care bill, which is part of the Tories’ continuing privatization of the NHS, through parliament by voting for it when others, like Dr. David Owen, voted against. But the book has interesting ideas. It struck me that IT is industry that could easily me moved to the countryside, if only in the form of software developers, who may not need quite so much expensive plant.

Many working people have dreams of running their own businesses, and G.D.H. Cole in one of his books on socialism argued that socialists should make common cause with small businesspeople against the threat of big business. And it is big business that is also threatening the countryside. As George Monbiot has described in his book, Captive State, the big supermarkets drive out the small businesses in their areas. This has a devastating effect on the area generally, as these industries employ more people than the supermarkets themselves. Furthermore, the supermarkets use very exploitative contracts to force their suppliers to provide them with goods at very low prices. New Labour and no doubt the Tories after them have done much to harm the country generally as well as rural areas by supporting the big supermarkets, like Sainsbury’s, against local shops like grocers.

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Tories’ Comments about Universal Credit and Self-Employed Show They Don’t Care About Small Businesses

March 2, 2018

Mike this evening put up a post about how the Tories are trying to justify the removal of benefits to the self-employed under Universal Credits by claiming that it ‘incentivises’ them. Mike makes the point that it clearly shows the cruelty behind the Tories’ policies. They’re all about cuts and making things harder, not about rewards. It’s always, but always the stick, not the carrot.

I’d have thought that to be self-employed, you have to be very well self-motivated anyway. I’ve heard from my father amongst others that to run your own business, you have to get up early and go to bed late. And about half of all small businesses fold within the first two years.

The self-employed and small businessman have it bad enough already, without the Tories making worse. And I think they should seriously consider voting Labour.

Oh, I’ve met enough small businesspeople, who say that they won’t vote Labour, because of the old canard that ‘Labour wants to nationalise everything’. That hasn’t been true since the rise of the Social Democratic consensus in the Labour party. As articulated by Anthony Crossland, this said that you didn’t need nationalisation or worker’s control, provided there was social mobility, a progressive income tax and strong trade unions. All of which have been destroyed under the onslaught of Thatcherism.

But even before then, socialist thinkers like G.D.H. Cole were arguing that Labour should also seek to protect small businesses as part of their campaign to defend and advance the cause of the working class. Cole was one of the most prolific of Socialist writers, and was one of the leaders of Guild Socialism, the British version of Anarcho-Syndicalism. Even after that collapsed, after the failure of the General Strike, he still beleived that workers’ should have a share in the management of the companies in which they worked. So definitely not a sell out to capital, then.

I am also well aware that many small businessmen are resentful of workers gaining wage rises and further employment rights. They argue that they can’t give themselves pay rises, because of the economics of their businesses, before complaining about how much it would all cost them. Well, perhaps. But they can decide how much they charge, and what they intend to pay themselves. And they control their business, not the people below them. I’m sure it’s true that some white collar workers are better paid than the self-employed, but that’s no excuse for not paying your employees better wages.

But a wider point needs to be made here: the Tories don’t support Britain’s Arkwrights, the s-s-small businessmen, who were personified by the heroes of Open All Hours, as portrayed by Ronnie Barker and David Jason.

And yes, I know about all the rubbish about how Thatcher was a grocer’s daughter, who slept above the shop when she was a child. But Thatcher, and her successors, was solidly for the rich against the poor, and big business against the small trader. That’s why they’ve given immense tax cuts to the very rich, and put the tax burden on the poorer layers of society. It’s why, despite repeated scandals, they will never willingly pass legislation to force big businessmen to pay their smaller suppliers promptly and on time.

And it’s why they will always back the big supermarkets, no matter how exploitative and destructive they are. George Monbiot in his Captive State has chapters attacking them. Not only are they parasitical, in that they pay their workers rubbish wages, so that they need to draw benefits, benefits that the Tories really don’t want to pay, they also destroy the small shops in the areas they move into. And they screw their suppliers with highly exploitative contracts.

In an ideal world, the big supermarket chains would be nationalised or broken up as monopolies.

The small businessperson needs to be protected. They, not the big supermarkets, create employment and healthy, living communities. They should be protected, just like the working and lower middle classes, which includes them, should.

And the only party I see willing to do that is the Labour party. Remember when Ed Balls said that Labour ‘wanted to grow your businesses’ to the small traders about this country? It was sincere. I think it was wrong on its own, as it shows how Labour under Blair had abandoned the working class, and was concentrating on hoovering up middle class votes. But ‘Red’ Ed did have a point. It should’t be a case of either the working class, or small businesses, but both the working class and small businesspeople.

Because the small businessman too deserves protection from exploitation. Which they will never get from the likes of Thatcher, Dave Cameron and May.

Workers’ Chamber Book: Chapter Breakdown

November 21, 2017

As I mentioned in my last post, a year or so ago I wrote a pamphlet, about 22,000 words long, arguing that as parliament was filled with the extremely rich, who passed legislation solely to benefit the wealthy like themselves and the owners and management of business, parliament should have an elected chamber occupied by working people, elected by working people. So far, and perhaps unsurprisingly, I haven’t found a publisher for it. I put up a brief overview of the book’s contents in my last post. And here’s a chapter by chapter breakdown, so you can see for yourselves what it’s about and some of the arguments involved.

For a Workers’ Parliamentary Chamber

This is an introduction, briefly outlining the purpose of the book, discussing the current domination of parliament by powerful corporate interests, and the working class movements that have attempted to replacement parliamentary democracy with governmental or administrative organs set up by the workers themselves to represent them.

Parliamentary Democracy and Its Drawbacks

This discusses the origins of modern, representative parliamentary democracy in the writings of John Locke, showing how it was tied up with property rights to the exclusion of working people and women. It also discusses the Marxist view of the state as in the instrument of class rule and the demands of working people for the vote. Marx, Engels, Ferdinand Lassalle and Karl Kautsky also supported democracy and free speech as a way of politicising and transferring power to the working class. It also shows how parliament is now dominated by big business. These have sent their company directors to parliament since the Second World War, and the number has massively expanded since the election of Margaret Thatcher. Universal suffrage on its own has not brought the working class to power.

Alternative Working Class Political Assemblies

This describes the alternative forms of government that working people and trade unionists have advocated to work for them in place of a parliamentary system that excludes them. This includes the Trades Parliament advocated by Owen’s Grand Consolidated Trade Union, the Chartists’ ‘Convention of the Industrious Classes’, the Russian soviets and their counterparts in Germany and Austria during the council revolution, the emergence and spread of Anarcho-Syndicalism, and its aims, as described by Rudolf Rocker.

Guild Socialism in Britain

This describes the spread of Syndicalist ideas in Britain, and the influence of American Syndicalist movements, such as the I.W.W. It then discusses the formation and political and social theories of Guild Socialism, put forward by Arthur Penty, S.G. Hobson and G.D.H. Cole. This was a British version of Syndicalism, which also included elements of state socialism and the co-operative movement. This chapter also discusses Cole’s critique of capitalist, representative democracy in his Guild Socialism Restated.

Saint-Simon, Fascism and the Corporative State

This traces the origins and development of these two systems of government. Saint-Simon was a French nobleman, who wished to replace the nascent French parliamentary system of the early 19th century with an assembly consisting of three chambers. These would be composed of leading scientists, artists and writers, and industrialists, who would cooperate to administer the state through economic planning and a programme of public works.

The Fascist Corporative State

This describes the development of the Fascist corporative state under Mussolini. This had its origins in the ideas of radical nationalist Syndicalists, such as Michele Bianchi, Livio Ciardi and Edmondo Rossoni, and the Nationalists under Alfredo Rocco. It was also influenced by Alceste De Ambris’ constitution for D’Annunzio’s short-lived regime in Fiume. It traces the process by which the Fascists established the new system, in which the parliamentary state was gradually replaced by government by the corporations, industrial organisations which included both the Fascist trade unions and the employers’ associations, and which culminated in the creation of Mussolini’s Chamber of Fasci and Corporations. It shows how this was used to crush the working class and suppress autonomous trade union activism in favour of the interests of the corporations and the state. The system was a failure, designed to give a veneer of ideological respectability to Mussolini’s personal dictatorship, and the system was criticised by the radical Fascists Sergio Panunzio and Angelo Olivetti, though they continued to support this brutal dictatorship.

Non-Fascist Corporativism

This discusses the way the British state also tried to include representatives of the trade unions and the employers in government, economic planning and industrial policies, and suppress strikes and industrial unrest from Lloyd George’s administration during the First World War. This included the establishment of the Whitley Councils and industrial courts. From 1929 onwards the government also embarked on a policy of industrial diplomacy, the system of industrial control set up by Ernest Bevin during the Second World War under Defence Regulation 58a. It also discusses the corporative policies pursued by successive British governments from 1959 to Mrs Thatcher’s election victory in 1979. During these two decades, governments pursued a policy of economic planning administered through the National Economic Development Council and a prices and incomes policy. This system became increasingly authoritarian as governments attempted to curtail industrial militancy and strike action. The Social Contract, the policy of co-operation between the Labour government and the trade unions, finally collapsed in 1979 during the ‘Winter of Discontent’.

Workers’ Control and Producers’ Chambers in Communist Yugoslavia

This discusses the system of industrial democracy, and workers councils in Communist Yugoslavia. This included a bicameral constitution for local councils. These consisted of a chamber elected by universal suffrage, and a producers’ chamber elected by the works’ councils.

Partial Nationalisation to End Corporate Influence in Parliament

This suggests that the undue influence on parliament of private corporations could be countered, if only partly, if the policy recommended by Italian liberisti before the establishment of the Fascist dictatorship. Those firms which acts as organs of government through welfare contracts, outsourcing or private healthcare contractors should be partially nationalised, as the liberisti believed should be done with the arms industries.

Drawbacks and Criticism

This discusses the criticisms of separate workers’ governmental organs, such as the Russian soviets, by Karl Kautsky. It shows how working class political interests have been undermined through a press dominated by the right. It also shows how some of the theorists of the Council Revolution in Germany, such as Kurt Eisner, saw workers’, peasants’ and soldiers’ councils as an extension of democracy, not a replacement. It also strongly and definitively rejects the corporative systems of Saint-Simon and Mussolini. This part of the book recommends that a workers’ chamber in parliament should be organised according to industry, following the example of the TUC and the GNC Trades’ Parliament. It should also include representatives of the unemployed and disabled, groups that are increasingly disenfranchised and vilified by the Conservatives and right-wing press. Members should be delegates, in order to prevent the emergence of a distinct governing class. It also shows how the working class members of such a chamber would have more interest in expanding and promoting industry, than the elite business people pursuing their own interests in neoliberal economics. It also recommends that the chamber should not be composed of a single party. Additionally, a workers’ chamber may in time form part of a system of workers’ representation in industry, similar to the Yugoslav system. The chapter concludes that while the need for such a chamber may be removed by a genuine working class Labour party, this has been seriously weakened by Tony Blair’s turn to the right and partial abandonment of working class interests. Establishing a chamber to represent Britain’s working people will be immensely difficult, but it may be a valuable bulwark against the domination of parliament by the corporate elite.

I’m considering publishing it myself in some form or another, possibly through the print on demand publisher, Lulu. In the meantime, if anyone wants to read a sample chapter, just let me know by leaving a comment.

Fabian Pamphlet on the Future of Industrial Democracy : Part 1

November 11, 2017

The Future of Industrial Democracy, by William McCarthy (London: Fabian Society 1988).

A few days ago I put up a piece about a Fabian Society pamphlet on Workers’ Control in Yugoslavia, by Frederick Singleton and Anthony Topham. This discussed the system of workers’ self-management of industry introduced by Tito in Communist Yugoslavia, based on the idea of Edvard Kardelj and Milovan Djilas, and what lessons could be learnt from it for industrial democracy in Britain.

William McCarthy, the author of the above pamphlet, was a fellow of Nuffield College and lecturer in industrial relations at Oxford University. From 1979 onwards he was the Labour party spokesman on employment in the House of Lords. He was the author of another Fabian pamphlet, Freedom at Work: towards the reform of Tory employment law.

The pamphlet followed the Bullock report advocating the election of workers to the management board, critiquing it and advocating that the system should be extended to firms employing fewer than the thousands of employees that were the subject of reforms suggested by Bullock. The blurb for the pamphlet on the back page runs

The notion of industrial democracy – the involvement of employees in managerial decisions – has been around at least since the time of the Guild Socialists. However, there has been little new thinking on the subject since the Bullock Committee reported in the 1970s. This pamphlet redresses this by re-examining the Bullock proposals and looking at the experience of other European countries.

William McCarthy outlines the three main arguments for industrial democracy:
* it improves business efficiency and performance;
* most workers want a greater say in their work environment;
* a political democracy which is not accompanied by some form of industrial power sharing is incomplete and potentially unstable.

He believes, however, that the emphasis should no longer be on putting “workers in the boardroom.” Instead, he argues that workers ought to be involved below the level of the board, through elected joint councils at both plant and enterprise levels. These councils would have the right to be informed about a wide range of subjects such as on redundancies and closures. Management would also be obliged to provide worker representatives with a full picture of the economic and financial position of the firm.

William McCarthy argues that Bullock’s plan to limit worker directors to unionised firms with over 2,000 workers is out of date. it would exclude over two thirds of the work force and would apply only to a steadily shrinking and increasingly atypical fraction of the total labour force. As the aim should be to cover the widest possible number, he advocates the setting up of the joint councils in all private and public companies, unionised or otherwise, that employ more than 500 workers.

In all cases a majority of the work force would need to vote in favour of a joint council. This vote would be binding on the employer and suitable sanctions would be available to ensure enforcement.

Finally, he believes that this frame of industrial democracy would allow unions an opportunity to challenge their negative and reactionary image and would demonstrate the contribution to better industrial relations and greater economic efficiency which can be made by an alliance between management, workers and unions.

The contents consist of an introduction, with a section of statutory rights, and then the following chapters.

1: The Objectives of Industrial Democracy, with sections on syndicalism, Job Satisfaction and Economic and Social Benefits;

2: Powers and Functions, with sections on information, consultation, areas of joint decision, union objection, and co-determination;

3: Composition and Principles of Representation, with sections on selectivity, the European experience, ideas and legal framework.

Chapter 4: is a summary and conclusion.

The section on Syndicalism gives a brief history of the idea of industrial democracy in Britain from the 17th century Diggers during the British Civil War onwards. It says

The first of these [arguments for industrial democracy – employee rights] is as old as socialism. During the seventeenth century, Winstanley and the Diggers advocated the abolition of landlords and a system of production based on the common ownership of land. During the first half o the 19th century, Marx developed his doctrine that the capitalist system both exploited and “alienated” the industrial workers, subjecting them to the domination of the bourgeoisie who owned the means of production. Under capitalism, said Marx, workers lost all control over the product of their labour and “work became a means to an end, rather than an end to itself” (see Philosophy and Myth in Karl Marx, R. Tucker, Cambridge University Press, 1961). During the latter half of the nineteenth century, Sorel and his followers developed the notion of “revolutionary syndicalism” – a form of socialism under which the workers, rather than the state, would take over the productive resources of industry. Syndicalists were influential in Europe and America in the years before the First World War. They advocated industrial action, rather than the use of the ballot box, as a means of advancing to socialism (see The Wobblies, P. Renshaw, Eyre & Spottiswoode, 1967).

In Britain, syndicalism came to adopt a more constitutionalist form with the formation of the guild socialists. They did not reject the use of parliamentary action, but argued that a political democracy which was not accompanied by some form of industrial power sharing was incomplete and potentially unstable. This was the basic argument of their most distinguished theoretician, G.D.H. Cole. In more recent times a trenchant restatement of this point of view can be found in Carole Pateman’s Participation and Democratic Theory (Cambridge: Cambridge University Press, 1970).

In his earliest writing Cole went as far as to argue that socialism required that that “the workers must election and control their managers”. As he put it “In politics, we do not call democratic a system in which the proletatiat has the right to organise and exercise what pressure it can on an irresponsible body of rulers: we call it a modified aristocracy; and the same name adequately describes a similar industrial structure” (The World of Labour,Bell, 1913).

Subsequently Cole came to feel that continued existence of a private sector, plus the growth of collective bargaining, required some modification of the syndicalist doctrine behind Guild Socialism. By 1957, he was arguing for workers to be given “a partnership status in private firms, “sharing decisions” with the appropriate level of management C The Case for Industrial Partnership, MacMillan, 1957. This is very much the position advanced by Carole Pateman after her critique of more limited theories of democracy-eg those advanced by Schumpeter and others. These “minimalist” democrats took the view that in the context of the modern state, the most one could demand of a democracy was that it should provide a periodic electoral contest between two competing political elites. After reviewing examples of industrial democracy at work in a number of countries Pateman concluded “…it becomes clear that neither the demands for more participation, not the theory of participatory democracy itself, are based, as is so frequently claimed, on dangerous illusions or on an outmoded and unrealistic theoretical foundation. We can still have a modern, viable theory of democracy which retains the notion of participation at its heart.” (op. cit.)

Continued in Part 2, which will cover the sections on the pamphlet ‘Ideas’ and ‘Legal Framework’.

Fabian Pamphlet on Future of Industrial Democracy: Part 3

November 11, 2017

William McCarthy, The Future of Industrial Democracy (1988).

Chapter 4: Summary and Conclusions

This, the pamphlet’s final chapters, runs as follows

This pamphlet has concerned itself with the change required in Labour’s policies for extending the frontiers of industrial democracy. It has been suggested that the objectives in People at Work need to be given concrete expression in an enabling statute which provides for the creation of elective joint councils at establishment level in all private firms employing more than 500 workers. In the case of multi-establishment firms joint councils will be needed at both establishment and enterprise level. Similar arrangements should be introduced into the public sector.

The primary condition for the establishment of joint councils would be an affirmative ballot of the workers concerned. Employers would be entitled to “trigger” such a ballot in association with recognised unions. In the absence of employer agreement recognised unions would be able to invoke the ballot procedure unilaterally. Where there were union members, but no recognition had been granted, a union with members would still be entitled to trigger a ballot covering the workers it wished to represent. Where no union members existed a given proportion of the labour force, say 10 per cent, would also be free to demand a ballot.

In all cases there would need to be a majority of the workers affected voting in favour of a joint council under the terms of the enabling Act. Such a vote would be legally binding on the employers; and there would be suitable sanctions to secure enforcement. Worker representatives would emerge by means of a universal secret ballot. Recognised trade unions would be given certain prescribed rights of nomination. Where unions had members, but were denied recognition, appropriate unions would also have the right to make nominations. This need not prevent a given number of workers from enjoying analogous right to make nominations.

Statutory joint councils would have the right to be informed about a wide variety of subjects which would be specified in the enabling Act-eg intended redundancies, closures and reductions in labour demand. Management would also be under a more general obligation to provide worker representatives with a full picture of the economic and financial position of the firm-including cost structures, profit margins, productivity ratios, manpower needs and the use of contract labour. Information could only be refused on limited and specified grounds of commercial confidentiality in parts of the public sector somewhat different criteria of confidentiality would be specified in the Act.)

Councils would have a similar right to be consulted on all decisions likely to have a significant impact on the labour force-using words similar to those set out in the EC draft Fifth Directive. This would be complemented by an obligation to consult the joint council on a number of specified subjects-such as manpower plans, changes in working practices, health and safety matters, etc. There would be a right to propose alternatives and a limited right of delay. Worker representatives would be under an obligation to present management proposals to their constituents for their consideration. The statute would stress that one of the main objects of consultation would be to raise efficiency and improve industrial performance.

The workers’ side of a joint council would have a right to complain to a special court if any of their statutory rights were ignored or denied by an employer. This would be empowered to make orders against a defaulting firm as a final resort.

The most radical changes in established Labour party policy that are recommended in this pamphlet concern the need to modify the principles of single channel representation, as these were expressed and applied to worker directors in the majority report of the Bullock Committee on Industrial Democracy. It is argued that if Labour is to establish a positive and convincing case for industrial democracy in present day Britain it must be prepared to urge its introduction over the widest possible area. To help retain the justifiability of single channel representation at board-room level Bullock understandably felt the need to confine his proposals to a fraction of the labour force. It is suggested that this degree of selectivity would not be acceptable today.

There should also be a limited area of joint decision taking or co-determination covering such matters as works rules, health and safety policies, the administration of pension schemes and training. Joint councils should also be given rights to develop and monitor equal opportunities policies and administer various government subsidies. They could also be linked to a Labour government’s regional or industrial planning process. They should provide the final internal appeal stage in cases of unfair dismissal and discrimination.

Labour should place much more emphasis on the positive case for industrial democracy. They should focus on the extent to which workers need to feel that they have some degree of influence over their work situation. Above all, Labour should stress the well-established links between participation and improvements in industrial efficiency and performance. They must emphasise that the development and extension of industrial democracy would produce substantial benefits for the community as a whole, quite apart from its impact on working people.

By stressing these aspects of the argument, it would be possible to attack the credibility and naivety of Thatcherite assumption concerning the need to ‘liberate’ British managers from all forms of regulation and responsibility-irrespective of the effects on workers in their employ. It should also make it more difficult for Labour’s opponents to misrepresent the negative case for participation as a mere cover for union restriction and control.

My Conclusions

The pamphlet makes a strong case for the establishment of joint councils below boardroom level, which would extend workplace to democracy to a greater proportion of the work force than recommended by the Bullock report. It shows how arguments for control of the means of production by the workers themselves have been around ever since Gerard Winstanley and the Diggers in the 17th century. He also shows, as have other advocates for worker’s control, that such schemes give a greater sense of workplace satisfaction and actually raise productivity and efficiency, as well as giving workers’ greater rights and powers over the terms and conditions of employment.

This is in very stark contrast to the current condition of the British economy, created through the Thatcherite dogmas of deregulation, privatisation and the destruction of unions and worker’s rights. British productivity is extremely poor. I think it’s possibly one of the lowest in Europe. Wages have been stagnant, creating mass poverty. This means that seven million now live in ‘food insecure’ households, hundreds of thousands are only keeping body and soul together through food banks, three million children subsist in poverty. And the system of benefit sanctions has killed 700 people.

This is the state of Thatcherite capitalism: it isn’t working.

As for the proposals themselves, they offer workers to become partners with industry, and contrary to Thatcherite scaremongering that ‘Labour wants to nationalise everything’, G.D.H. Cole, the great theorist of Guild Socialism recognised not only the need for a private sector, but he also said that Socialists should ally with small businessmen against the threat of the monopoly capitalists.

Thatcher promoted her entirely spurious credentials as a woman of the working class by stressing her background as the daughter of a shopkeeper. It’s petty bourgeois, rather than working class. But nevertheless, it was effective propaganda, and a large part of the electorate bought it.

But the Tories have never favoured Britain’s small businesses – the Arkwrights and Grenvilles that mind our corner shops. They have always sacrificed them to the demands of the big businessmen, who manipulate and exploit them. For the examples of the big supermarket chains exploiting the farmers, who supply them, see the relevant chapter in George Monbiot’s Corporate State.

Coles’ support for industrial democracy was thus part of a recognition to preserve some private enterprise, and protect its most vulnerable members, while at the same time socialising the big monopolies and extending industrial democracy to the private sector, in order to create a truly democratic society.

This is another point that needs stressing: without workers’ control, democracy in general is incomplete and under severe threat. The corporatism introduced by Thatcher and Ronald Reagan, and extended by subsequent neoliberal administrations, including those of Blair and Clinton, has severely undermined democracy in both America and Britain. In America, where politicians do the will of their political donors in big business, rather than their constituents, Harvard has downgraded the countries’ status from a democracy to partial oligarchy. Britain is more or less the same. 75 per cent or so of MPs are millionaires, often occupying seats on boards of multiple companies. Big business sponsors party political conferences and events, even to the point of loaning personnel. As a result, as Monbiot has pointed out, we live in a Corporate State, that acts according to the dictates of industry, not the needs of the British public.

This needs to be stopped. The links between big business and political parties need to be heavily restricted, if not severed altogether. And ordinary workers given more power to participate in decision-making in their firms.

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.

Book Review: G.D.H. Cole’s A Century of Co-Operation

July 2, 2016

Cooperative Cole

(George Allen & Unwin Ltd. for the Co-operative Union Ltd 1944).

Many of us of a certain age still remember the Co-op before it became a regular supermarket chain. It was a store in which regular shoppers – the co-op’s members, were also it’s owners, and entitled to receive a share of the profits. This meant that you were paid a dividend. This was later issued in the form of ‘Green Shield’ stamps, which could be used to buy further goods in the stores. The co-operative movement was founded way back in the 1840s by the Rochdale Pioneers, former members of Robert Owen’s socialist movement. After this had collapsed, the Pioneers then went on to apply his socialist principles to running retail stores. The movement rapidly caught on and expanded, not least because, unlike ordinary shops, the co-ops sold pure food without the poisonous substances added elsewhere. For example, many bakers added arsenic to their bread to make it whiter, and more attractive to the purchaser. The co-ops didn’t, and so their food and goods was healthier, and thus more popular. Unlike their competitors, you could be fairly sure that what you bought from the co-op wouldn’t kill you in the name of making it appear more tasty. By 1942 there were 1,058 co-operative retail societies, with a total membership of 8,925,000 – just shy of 9 million people.

I found this book on the history of the movement in one of the charity bookshops in Bristol. It’s by the great socialist and writer, G.D.H. Cole, who was one of the leading members of Guild Socialism, a British form of syndicalism, which recommended the abolition of the state and its replacement with a system of guilds – trade unions, which would include all the workers in an industry, and which would run industry and the economy. Instead of parliament, there would be something like the TUC, which would also have administrative organs to protect the consumer.

The book’s chapters include:
I: “The Hungry ‘Forties'”,
II: Co-operation before the Pioneers
II. Rochdale.
IV. The Rochdale Pioneers Begin.
V. The Rochdale Pioneers to 1874.
VI Christian Socialists, Redemptionists, and Trade Unions
VII. Co-operation and the Law.
VIII. The Origins of the Co-Operative Wholesale Society
IX. Co-operative Growth in the ‘Sixties and ‘Seventies.
X. The Second Revolution.
XI. The ‘Eighties and ‘Nineties.
XII. The Women’s Guild.
XIII. Co-operators and Education.
XIV. Co-operation in Agriculture – Ireland: The Beginning of International Co-operation.
XV. Co-operation before and during the First World War.
XVI. From War to War.
XVII. Guild Socialism and the Building Guilds
XVIII. Co-operative Development between the Wars.
XIX. Co-operators in Politics.
XX. Co-operative Employment.
XXI. International Co-operation.
XXII Co-operation Today and Tomorrow
I. the Growth of Co-operation.
ii. The Development of Co-operative Trade.
iii. Large and Small Societies.
iv. Democratic Control.
v. Regional Strength and Weakness.
vi. Co-operative Education.
vii. The producers’ Societies.
viii. The Wholesales and Production.
ix. The Next Steps.

Appendix: Who Were the Pioneers?

Cole notes that some forms of what became known as co-operation existed in various trades and businesses before the Rochdale Pioneers. Some of the capital used to set up businesses in the early 19th century, came from the workers. They tended to invest in other businesses’ than their employers, so that if their wages were cut during a recession or dip in trade, the dividends they would receive from their shares would not also suffer. Although not remarked on in the book, you could say that this shows how the working class has been disinherited. In many cases, they contributed their savings and money to the development of capitalism, but despite the existence in some firms of profit-sharing schemes, they have been and are being excluded from the profits of the modern, industrial economy.

From industry, co-operation also entered politics, with the establishment of a Co-operative Party, which is now part of the Labour party. The movement spread across Europe, to Germany and as far as Russia. Lenin was greatly impressed by the value of the co-operatives as a form of socialism. According to Aganbegyan, Gorbachev’s chief economist for perestroika, before 1950 47 per cent of all industries, including farms in the USSR were co-ops. Industrial democracy and co-operatives were a central plank of Gorbachev’s perestroika. Unfortunately, Gorby’s attempts to revive Communism failed, and Yeltsin turned them into bog-standard capitalist companies through the voucher system. Other thinkers and politicians in other countries saw co-operation as the solution to their countries’ social and economic problems. One of these was the Bulgarian Stambolisky, the leader of a peasant’s party before the First World War. He wished to organise the peasant farms into a system of co-operation, which would modernise the country by allowing them to acquire electricity and improve production and conditions. More recently, the Mondragon co-operatives, set up in Spain by a Roman Catholic priest in the 1950s, has become an industrial giant, involved in just about all areas of the Spanish economy.

Cole’s book understandably concentrates on the history of the co-operative movement from its emergence to the middle of the Second World War, and is an immensely detailed and thorough work of scholarship. Although not as prominent as they once were, co-operative businesses still exist in Britain. They were supported in the 1970s and ’80s by politicos like the great Tony Benn and Ken Livingstone, and may once again become a major force in British society and the economy.

Hope Not Hate on the Disgusting Views of Kipper Lee Harris

June 21, 2016

As Britain tries to come to turns with the assassination of Jo Cox by a committed, Nazi, Lee Harris, the Kipper candidate for Shotton and South Hefton in the council elections last year, abandoned any attempt at maintaining a tactful silence. While expressing his own disgust at Cox’s murder, Harris posted on social media a strongly worded condemnation of everything Jo Cox stood for. He wrote on social media

Let us not forget that it is cultural Marxist, PC, Europhilic MPs like her we have to thank for the sorry state this nation is in.

Her ideology was cancerous to this nation, and now her comrades shamelessly milk her death in a desperate attempt to shame us into staying in a corporatist dictatorship.

I’m sure some will be offended by this post, and those who are, I know will be the virtue signalling SJW [Social Justice Warriors] that are milking her death in a last ditch attempt at shaming us into staying in the EU.

See: http://www.hopenothate.org.uk/ukip/ukip-continue-their-overbearing-sensitivity-4925

This is pretty much typical of some of the verbiage and jargon coming from the extreme Right. Anti-racist activists and those on the genuine Left are attacked as ‘Social Justice Warriors’ and ‘cultural Marxists’. Right-wingers like Harris think that ‘cultural Marxism’ means the Frankfurt school and the tactics formulated by the Italian Communist, Antonia Gramsci, of attempting to change the nature of European and American capitalist society by attacking its culture. It isn’t. ‘Cultural Marxism’ was the term coined by British Marxists when Maggie Thatcher passed a law purging them from teaching in Higher Education. They got round this by making the fine distinction that they weren’t ‘Marxist’, but ‘Marxian’ – that is, they were Marxists by culture, not politics. It’s a very tenuous distinction, but it did manage to allow them to keep their jobs.

As for being called a ‘Social Justice Warrior’, while it is a term of contempt, the fact is that since that social justice – anti-racism, anti-sexism and attitudes to combat poverty and improve the circumstances of the working class, disabled and unemployed, are still under threat. There have been enormous strides made since the 1970s in tacking racism and sexism, but these are still extremely powerful issues where discrimination is very much present. As shown by the fact that Harris and many of the Brexiters haven’t been able to reconcile themselves to the fact that Cox was murdered by someone with a very long commitment to the Nazi Right.

Harris himself has a particular hatred of the Labour party. Hope Not Hate a few piccies of election pamphlets in the above article, in which he promises ‘to continue the failings of the Labour Party. It has let our communities down for too long!’ He also says, ‘Labour once stood for the working class, defending our way of life, defending our jobs, but now all they care about is pandering to big donors and big business. They are the party that started to privatise the NHS after all’.

This is a fair description of the greed and neoliberal economic policies at the heart of Blairite ‘New Labour’, but it doesn’t represent either Ed Miliband or the party’s new leadership under Jeremy Corbyn. As for the EU being a ‘corporatist dictatorship’, there’s a reasonable point mixed in with a gross lie. I’ve put up material discussing the massive power the EU constitution does give to corporations, and there are indeed several points in European commercial law that strongly protect and promote neoliberal economics. However, the EU is not a dictatorship, and it is a gross distortion to say that it is. This line seems to come from the old Eurosceptic idea that the EU is merely Napoleon’s Empire or Adolf Hitler’s Nazi-dominated Europe resurrected and marketed to Europe’s peoples in a more palatable form. It isn’t. It was set up by European statesmen, including Winston Churchill, after the War in the hope that by promoting European unity, such extreme nationalist movements and the drive by individual countries to conquer and dominate the country would be successfully combated. I don’t think it’s been entirely successful. Unfortunately, EU policy does represent too much the interest of the big EU nations, like France and Germany, at the expense of the smaller nations. But I do think that it has done much to promote international peace and reconciliation after the War, and so has done much to calm international tension, even if it has not succeeded in altogether eradicating it.

As for Harris’ comments about the Labour – if Harris was serious about them from a left-wing perspective, he could have joined a number of alternative Socialist groups and organisations. Buddy Hell, over at Guy Debord’s Cat, was so disillusioned with the Blairite takeover the Labour party that he joined Left Unity, if I recall correctly. I think one of the small, alternative Socialist parties was formed from all the trade unionists and Labour party members, who were thrown out of the Labour party because they did not back Bliar and Broon’s austerity campaigns.

But Harris hasn’t done that. Instead he’s moved to the Right, and shown how he despises much of the ideology of the Left with his attacks on ‘social justice warriors’. If you look through many of the classic statements of Socialism, several of them make the point that Socialists champion the working class in order to bring about a classless society, and as part of a general campaign to establish greater social equality. Marx, Engels and the early Fabians had some vile attitudes to what they considered to be less developed, backward nations, but as early as the 1920s the Labour party adopted a policy of granting the colonies their independence at the earliest possibility. Even when they were committed to the British Empire, such as in the book Empire, Your Empire, published by the Left Book club, they were critical of the way Britain’s imperial possessions around the world were being exploited. The author of that book wanted these countries developed, but in the interest of their indigenous peoples. As indeed did the veteran Socialist thinker and writer, G.D.H. Cole.

As for Labour privatising the health service, unfortunately, much of this was done by Bliar and Broon. But they were following policies established in the 1980s by Maggie Thatcher. Thatcher and Geoffrey Howe had looked at ways of abolishing the NHS and replacing it with a private medical service such as that in America. They didn’t, because they knew that it would lose them the next election. Also, Patrick Jenkin, the Health Secretary, reported just how awful American medical care was after he went on a fact-finding mission to the US. Nevertheless, she wanted more private medical care in and outside the NHS, including tax relief for people with private medical insurance. She also introduced further charges for hitherto free medical treatments in the NHS. One of these was eye tests at opticians. She stopped that, and then had one of her cabinet ‘vegetables’ try to con the nation into believing that after charges had been introduced, demand had actually gone up. It was Thatcher, who removed compulsory state funding for the elderly in nursing homes, with the result that many people now have to mortgage or sell their elderly relatives’ houses to pay for the tens of thousands of pounds it costs a year to keep them in such homes. She also picked a fight with the dentists, so that the majority left the NHS. And then Peter ‘I’ve got a little list’ Lilley introduced the Private Finance Initiative specifically as a way for big business to make money out of the health service under John Major. Bliar and Broon expanded this cruddy system, but they didn’t invent it.

Despite appealing to working constituents, Harris is, like the Kipper leadership, a Tory. He wants to capitalise on many people’s genuine disaffection from the Labour party due to neoliberal leadership of the Blairites. But he himself is very much a man of the right, and his stance is shown by the fact that he is not concerned with defending the NHS from its privatisation by Cameron and the Lib Dems. This has been going on for over half a decade now. Even last year he could not plead ignorance of it, not if he was serious about defending the NHS or his constituents against austerity and the cuts.

The Miners and Industrial Democracy: Is This Why Thatcher Destroyed the Industry?

May 2, 2016

I found this passage in G.D.H. Cole’s Fabian pamphlet, Guild Socialism (London: Fabian Society 1919) in which he discusses the way some of the trade unions and their shop stewards, particularly the railwaymen and the miners, were wishing to transform the negative control they had in their industries towards positive control. By this, he meant that they wished to change from simply telling the management of those industries what they could not do, to becoming active participants in the management of their industries. Cole wrote:

Perhaps the most remarkable tendency in that direction in recent years is the growth of the Shop Stewards Movement. it has been principally in the Engineering and allied industries, where it represents a definite attempt by the workers to convert their negative restrictions on industry into a form of positive control over industry. You may say that that was not consciously so. So far as many of the Shop Stewards are concerned it was not; but I am dealing not with what was consciously present in the mind of every Shop Steward, but with the general tendency of policy behind the Shop Stewards’ Movement as a whole. In that sense, what I say is undoubtedly true. During the present year the big control movement of the railwaymen and the miners have been obvious expressions of the tendency I have been describing. Both the railwaymen an the miners no longer content themselves with the imposition of restrictions on the way in which industry is run, but demand that they shall be admitted to a share in the control of industry, and shall have the right to a certain extent to lay down the conditions under which industry is to be organised in the future, and to share in the positive task of reorganising it. There is the second big difference between Trade Unionism as it has existed in the past and the Guild of the Future. (p. 10).

Thatcher was determined to smash the unions, and particularly the miners’, because of the way they had overturned Heath’s government with the three-day week. She was also terrified of them ‘ratcheting down’ of success reforms by the Labour party, which she believed would result in the complete socialisation of industry. 1975 was also the year of the Bullock report, which recommended a system of workers’ control, where the trade unions would place worker’s representative in the boardroom. Reading that passage and its remarks on the desires of the miners and railwaymen now nearly a century ago to run their industries, whether that was what she was also scared of. And the result was her privatisation and destruction of the mining industry, and John Major’s destructive privatisation of the railways.

Nietzsche, Academy Schools, and Elitism in Education

March 30, 2016

Mike and a number of other bloggers have wondered recently if the Tories’ own enthusiasm for privatising education and turning all schools into Academies aren’t a deliberate attempt to ‘dumb down’ education. Despite all the hype, and mendacious graphs in the Torygraph to the contrary, privately run Academies actually perform worse than state schools managed by the local authorities. Mike speculated that the Tories wanted the children of the hoi polloi – the working and lower middle classes – have an inferior education as they were afraid that the masses were becoming too bright, too well-education, and they didn’t want the competition. After all, they could hardly retain their places as the leaders of society, thanks to their extremely moneyed parents sending them to Eton and the other public and fee-paying schools, if a bunch of comprehensive school oiks actually were demonstrably more intelligent and better educated than they were.

And there is certainly some evidence that the latter is true. A year ago, the Independent and the I ran a story that students from state schools actually did better at uni than those from the private schools. How ghastly! Especially as the introduction of tuition fees and their increase to truly extortionate levels really does seem to suggest that there is a section of right-wing opinion that believes higher education should be the exclusive preserve of the wealthy few.

The German philosopher Nietzsche also took this view. He was afraid that if the masses became too well-educated, it would lead to a decline in cultural standards. The historian Gordon A. Craig describes his elitist view of education, and that of his successors in Germany: 1866 – 1945 (Oxford: OUP 1978). He wrote

(A)nd some widely read publicists expressed the view that the emphasis placed on the education of the masses was dangerous because it could not avoid diluting the quality of German education in general. This was the view of Friedrich Nietzsche, who in a remarkable series of lectures, ‘On the Future of our Education Institutions’, delivered in Basle in 1872, stated that ‘not the education of the masses can be our goal but the education of individually selected people, armed for great and permanent achievements’ and went on to charge that those who argued for a further extension of Volksbildung were seeking to destroy ‘the natural order of rank in the kingdom of the intellect’. Nietzsche’s views were repeated with variations by Paul de Lagarde, an embittered eccentric who saw German culture imperilled by the advance of barbarism and blamed this on the educational system, and Julius Langbehn, the author of the extremely popular Rembrandt als Erzieher (1890), whose insistence upon the necessity of training a racially pure elite was later to take more extreme forms in the educational practices of Heinrich Himmler.

De Lagarde and Langbehn were two of the 19th century intellectual precursors of the Nazis. The German elementary schools were called Volksschulen – People’s Schools. The Germans had had an excellent school system of primary education from the 18th century onwards. If children couldn’t go to church schools, then they had to go to state schools. As a result, illiteracy in Germany by the end of the 19th century was very, very low – about 0.05%, compared with 3-4% in England and France.

Nietzsche’s ideas might have been a novelty for Germany, but until comparatively late in the 19th century they were common amongst the British ruling class. There was some education available for the working classes in the Sunday and Dame schools, but these were by no means widespread, and standards could be very poor. The dame schools have been criticised as essentially a place where parents could send their children while they were at work trying to make a living. As a whole, the education system was geared to training an aristocratic elite for careers in government. It looks very much like this is what the Tories intend now in their eagerness to privatise schools and so create an education system that will leave children worse educated, not better.

Cameron, Osbo, Thicky Nikki and the rest of the Tory party are either aristos, or very middle class. It really does look like they are trying to drag Britain back into the 19th century, where the workers were given just enough education to satisfy the requirements of industry, while a good education, and the career opportunities that went with it, were the exclusive prerogative of the middle and upper classes. This was challenged by the Labour party, who wanted the education reformed and expanded so that more people from the lower middle and working classes had the opportunity to acquire it and so enjoy the same career opportunities and social privileges as the wealthy. It can be seen in chapter IX of G.D.H. Cole’s book, Britain in the Post-War World – ‘Education for Democracy’, for example. It’s the reason Anthony Crossland set up and championed comprehensive schools, because the existing system of grammar and secondary modern schools were elitist, and kept the working class in their place in the manual trades.

And so far from striking a blow for meritocracy, it increasingly seems to me that the privatisation of the education system begun nearly thirty years ago by Thatcher really is indeed to keep the masses in their place, and make sure that only the elite can afford an educational standard that will guarantee them their place of leadership in society. All under the guise of delivering quality, which can only be provided by private industry, of course.