Posts Tagged ‘Keynsianism’

John Quiggin on the Absolute Failure of Austerity

January 9, 2019

One of the other massively failing right-wing economic policies the Australian economist John Quibbin tackles in his book Zombie Economics: How Dead Ideas Still Walk Among Us (Princeton: Princeton University Press 2010) is expansionary austerity. This is the full name for the theory of economic austerity foisted upon Europeans and Americans since the collapse of the banks in 2008. It’s also the term used to describe the policy generally of cutting government expenditure in order to reduce inflation. Quiggin shows how, whenever this policy was adopted by governments like the American, British, European and Japanese from the 1920s onwards, the result has always been recession, massive unemployment and poverty.

He notes that after the big bank bail-out of 2008, most economists returned to Keynesianism. However, the present system of austerity was introduced in Europe due to need to bail out the big European banks following the economic collapse of Portugal, Italy, Greece and Spain, and the consequent fall in government tax revenue. Quiggin then goes on to comment on how austerity was then presented to the public as being ultimately beneficial to the public, despite its obvious social injustice, before going on to describe how it was implemented, and its failure. He writes

The injustice of making hospital workers, police, and old age pensioners pay for the crisis, while the bankers who caused it are receiving even bigger bonuses than before, is glaringly obvious. So, just as with trickle-down economics, it was necessary to claim that everyone would be better off in the long run.

It was here that the Zombie idea of expansionary austerity emerged from the grave. Alesina and Ardagna, citing their dubious work from the 1990s, argued that the path to recovery lay in reducing public spending. They attracted the support of central bankers, ratings agencies, and financial markets, all of whom wanted to disclaim responsibility for the crisis they had created and get back to a system where they ruled the roost and profited handsomely as a result.

The shift to austerity was politically convenient for market liberals. Despite the fact that it was their own policies of financial deregulation that had produced the crisis, they used the pretext of austerity to push these policies even further. The Conservative government of David Cameron in Britain has been particularly active in this respect. Cameron has advanced the idea of a “Big Society”, meaning that voluntary groups are expected to take over core functions of the social welfare system. The Big Society has been a failure and has been largely laughed off the stage, but it has not stopped the government from pursuing a radical market liberal agenda, symbolized by measures such as the imposition of minimum income requirements on people seeking immigrant visas for their spouses.

Although the term expansionary austerity has not been much used in the United States, the swing to austerity policies began even earlier than elsewhere. After introducing a substantial, but still inadequate fiscal stimulus early in 2009, the Obama administration withdrew from the economic policy debate, preferring to focus on health policy and wait for the economy to recover.

Meanwhile the Republican Party, and particularly the Tea Party faction that emerged in 2009, embraced the idea, though not the terminology, of expansionary austerity and in particular the claim that reducing government spending is the way to prosperity. In the absence of any effective pushback from the Obama administration, the Tea Party was successful in discrediting Keynesian economic ideas.

Following Republican victories in the 2010 congressional elections, the administration accepted the case for austerity and sought a “grand bargain” with the Republicans. It was only after the Republicans brought the government to the brink of default on its debt in mid-2011 that Obama returned to the economic debate with his proposed American Jobs Act. While rhetorically effective, Obama’s proposals were, predictably, rejected by the Republicans in Congress.

At the state and local government level, austerity policies were in force from the beginning of the crisis. Because they are subject to balanced-budged requirements, state and local governments were forced to respond to declining tax revenues with cuts in expenditure. Initially, they received some support from the stimulus package, but as this source of funding ran out, they were forced to make cuts across the board, including scaling back vital services such as police, schools, and social welfare.

The theory of expansionary austerity has faced the test of experience and has failed. Wherever austerity policies have been applied, recovery from the crisis has been halted. At the end of 2011, the unemployment rate was above 8 percent in the United States, the United Kingdom, and the eurozone. In Britain, where the switch from stimulus to austerity began with the election of the Conservative-Liberal Democratic coalition government in 2010, unemployment rose rapidly to its highest rate in seventeen years. In Europe, the risk of a new recession, or worse, remains severe at the time of writing.

Although the U.S. economy currently shows some superficial signs of recovery, the underlying reality is arguably even worse than it now is in Europe. Unemployment rates have fallen somewhat, but this mainly reflects the fact that millions of workers have given up the search for work altogether. The most important measure of labour market performance, the unemployment-population ration (that is, the proportion of the adult population who have jobs) fell sharply at the beginning of the cris and has never recovered. On the other hand, the forecast for Europe in the future looks even bleaker as the consequences of austerity begins to bite.

The reanimation of expansionary austerity represents zombie economics at its worst. Having failed utterly to deliver the promised benefits, the financial and political elite raised to power by market liberalism has pushed ahead with even greater intensity. In the wake of a crisis caused entirely by financial markets and the central banks and regulators that were supposed to control them, the burden of fixing the problem has been placed on ordinary workers, public services, the old, and the sick.

With their main theoretical claims, such as the Efficient Markets Hypothesis and Real Business Cycle in ruins, the advocates of market liberalism have fallen back on long-exploded claims, backed by shoddy research. Yet, in the absence of a coherent alternative, the policy program of expansionary austerity is being implemented, with disastrous results. (pp. 229-32, emphasis mine).

As for Alesina and Ardagna, the two economists responsible for contemporary expansionary austerity, Quiggin shows how their research was seriously flawed, giving some of their biggest factual mistakes and accuracies on pages 225 and 226.

Earlier in the chapter he discusses the reasons why Keynes was ignored in the decades before the Second World War. The British treasury was terrified that adoption of government intervention in some areas would lead to further interventions in others. He also quotes the Polish economist, Michal Kalecki, who stated that market liberals were afraid of Keynsianism because it allowed governments to ignore the financial sector and empowered working people. He writes

Underlying the Treasury’s opposition to fiscal stimulus, however, was a fear, entirely justified in terms of the consequences for market liberal ideology, that a successful interventionist macroeconomic policy would pave the way for intervening in other areas and for the end of the liberal economic order based on the gold standard, unregulated financial markets, and a minimal state.

As the great Polish economist Michal Kalecki observed in 1943, market liberal fear the success of stimulatory fiscal policy more than its failure. If governments can maintain full employment through appropriate macroeconomic policies, they no longer need to worry about “business confidence” and can undertake policies without regard to the fluctuations of the financial markets. Moreover, workers cannot be kept in line if they are confident they can always find a new job. As far as the advocates of austerity are concerned, chronic, or at least periodic, high unemployment is a necessary part of a liberal economic order.

The fears of the Treasury were to be realized in the decades after 1945, when the combination of full employment and Keynsian macro-economic management provided support for the expansion of the welfare state, right control of the financial sector, and extensive government intervention in the economy, which produced the most broadly distributed prosperity of any period in economic history. (p. 14).

So the welfare state is being dismantled, the health service privatized and a high unemployment and mass poverty created simply to maintain the importance and power of the financial sector and private industry, and create a cowed workforce for industry. As an economic theory, austerity is thoroughly discredited, but is maintained as it was not by a right-wing media and political establishment. Robin Ramsay, the editor of Lobster, said in one of his columns that when he studied economics in the 1970s, monetarism was so discredited that it was regarded as a joke by his lecturers. He then suggested that the reason it was supported and implemented by Thatcher and her successors was simply because it offered a pretext for their real aims: to attack state intervention and the welfare state. It looks like he was right.

Advertisements

John Quiggin on the Absolute Failure of Trickle-Down Economics

January 8, 2019

John Quiggin is an economics professor at the university of Queensland Down Under. His 2010 book, Zombie Economics, is a very thorough demolition of the economic theories that have formed the current dogma since the election of Thatcher and Reagan in 1979 and 1980.

One of the theories he refutes is ‘trickle-down’ economics. This is theory that if you act to give more wealth to the rich through tax cuts, deregulation and privatization, this wealth will trickle down to benefit those at the bottom of the socio-economic ladder. It was one of the central planks of Thatcherism. And even in the 1980s, it’s effectiveness was highly dubious. I remember watching a documentary about it on the Beeb, which illustrated the theory with a pyramid of champagne glasses. When the glasses at the top of the pyramid were filled to overflowing, the champagne flowed down to the glasses lower down. So, Thatcher and her cronies claimed, their programme of free market economics would benefit everyone in society by enriching those at the top, from whom it would trickle down to the rest of us. If I remember correctly, the programme itself argued this wasn’t happening. And it hasn’t since. on pages 155 to 157 Quggin shows how the policy has not worked in America, and in fact the poor are massively poorer off. He writes

The experience of the United States during the decades of market liberalism, from the 1970s until the Global Financial Crisis, gives little support for the trickle-down view. The gross domestic product of the United States grew solidly in this period, if not as rapidly as during the Keynesian postwar boom. More relevantly to the trickle-down hypothesis , the incomes and wealth of the richest Americans grew spectacularly. Incomes at the fifth percentile of the income distribution doubled and those for the top 0.1 per cent quadrupled.

By contrast, the gains to households in the middle of the income distribution have been much more modest. As shown in figure 4.2, real median household income rose from forty-five thousand dollars to just over fifty thousand dollars between 1973 (the last year of the long postwar expansion) and 2008. The annual rate of increase was 0.4 per cent.

For those at the bottom of the income distribution, there have been no gains at all. Real incomes for the lower half of the distribution have stagnated. The same picture emerges if we look at wages. Median real earning for full-time year-round male workers have not grown since 1974. For males with high school education or less, real wages have actually declined. According to estimates made by the Economic Policy Institute, the average annual earnings of twenty-five to twenty-nine-year-old high school graduates, expressed in 2005 values, fell from #30,900 in 1970 to $25,90 in 2000, and have stagnated since then.

Since 2000, median household incomes have actually fallen, the first time in modern history that such a decline has taken place over a full business cycle. One result can be seen by looking at the proportion of households living below the poverty line. The poverty rate declined steadily during the postwar Keynsian era. It has remained essentially static since 1970, falling in booms, but rising again in recessions.

Unlike most developed countries, the United States has a poverty line fixed in terms of absolute consumption levels and based on an assessment of a poverty-line food budget undertaken in 1963. The proportion of Americans below this fixed poverty line fell from 25 per cent in the late 1950s to 11 percent in 1974. Since then it has fluctuated, reaching 13.2 percent in 2008, a level that is certain to rise further as a result of the financial crisis and recession now taking place. Since the poverty line has remained unchanged, this means that the real incomes accruing to the poorest ten percent of Americans have fallen over the last thirty years.

These outcomes are reflected in measures of the numbers of Americans who lack access to the basics of life: food, shelter, and adequate medical care.

In 2008, according to U.S. Department of Agriculture statistics quoted by the Food Research Action Center, 49.1 million Americans live in households classified as “food insecure”, meaning that they lacked access to enough food to fully meet basic needs at all times due to lack of financial resources. Slightly more than 17 million people (17.3 million) lived in households that were considered to have “very low food security”, which means that one or more people in the household were hungry over the course of the year because of the inability to afford enough food. This number had doubled since 2000 and has almost certainly increased further as a result of the recession.

The number of people without health insurance rose steadily over the period of market liberalism, both in absolute terms and as a proportion of the population, reaching a peak of 46 million, or 15 percent of the population. Among the insured, an increasing proportion was reliant on government programs. The traditional model of employment-based private health insurance, which was developed as part of the New Deal, and covered most of the population during the Keynesian era, was eroded to the point of collapse.

Homelessness is almost entirely a phenomenon of the era of market liberalism. During the decade of full employment, homelessness was confined to a tiny population of transients, mostly older males with mental health and substance abuse problems. By contrast, in 2007, 1.6 million people spent time in homeless shelters, and about 40 percent of the homeless population were families with children.

The experience of the United States in the era of market liberalism was as thorough a refutation of the trickle-down hypothesis as can reasonably be imagined. The well off have become better off, and the rich have become super-rich. Despite impressive technological progress, those in the middle of the income distributions struggled to stay in place, and those at the bottom became worse-off in crucial respects.

(My emphasis).

Bernie Sanders in his book described just how severe the crisis in private American medical care was. It almost collapsed completely in certain states because a very large number of patients are simply unable to afford medical treatment.

And the same situation prevails here in Britain, with increasing poverty here in Britain. Millions of households now live below the poverty line, a quarter of million people need food banks to keep body and soul together, including working people with families. As Mike pointed out in a piece last week, parents are now starving themselves in order to fee their children.

The NHS is also in crisis, though for different but related reasons to those in the US. It’s in crisis because of massive funding cuts by the Tories over the last decade, and the determination of both Tory and New Labour administrations to privatise it by stealth. The introduction of private enterprise into the NHS actually raises costs, not diminishes them. It’s for the simple reason that private firms have to make a profit to pass on to their shareholders. Plus private firms also have bureaucracies of their own, which in some instances can take up 44 per cent of the firm’s income.

And added to this there is a massive increase in homelessness. But don’t worry! Yesterday, the I newspaper published a piece from the Economist telling millennials to cheer up, because in the future they’ll be able to afford their own home. Which sounds very much like simple propaganda for the current economic orthodoxy, rather than a realistic, credible prediction.

Free market capitalism has failed, despite what the press and media is trying to tell us. The Conservatives responsible for its adoption should be thrown out of government, and the Blairites who introduced it into Labour should be forced out of the positions of power they seek to monopolise. If not expelled altogether as Thatcherite entryists.

We need a genuine, socialist Labour government to clean this mess up. A government which must be led by Jeremy 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.

Eisenhower’s Speech Warning about the Military Industry Complex

September 20, 2018

This short video from RT, posted on YouTube, was under the title ‘Speeches that Still Matter’. It’s American president Dwight D. Eisenhower’s speech of January 17th, 1961, warning America about the threat posed by an unrestrained military-industrial complex.

After a few words about the structure of society at the beginning of the snippet, Eisenhower declares

We must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defence with our peaceful methods and goals so that security and liberty may prosper together.

It has become one of the classic speeches in modern American history, and is referred to whenever activists and politicians criticize the military-industrial complex. Because since Eisenhower’s time, it has grown and seized power. The American military machine and armaments industry sponsors American politicians, and generals, senior civil servants and politicians frequently take up positions on the boards of armaments firms after their military or political career has ended. And the American government gives billions, if not trillions to its weapons manufacturers and armed forces.

I’ve read left-wing analyses of this situation which suggest that this is a deliberate policy of the American government to stimulate the economy. It’s a form of Keynsianism, but as the right-wing ideology of free trade and laissez-faire prevents the government from openly stimulating the economy through public works projects and a proper welfare support network that allows the poor enough to purchase the goods and services they need, which will also stimulate production and industrial growth, the only way the government can actually do so is by giving more and more money to the arms industry.

And all those planes, tanks, ships, missiles, guns and bombs have to be used.

The result is endless war in which small countries in the Developing World are invaded and their leaders toppled, their industries and economies plundered and seized by American multinationals, and Fascist dictators or sham democracies are installed instead. All in the name of giving more profits to the military machine. If you want an example, think of the close connections between the Bush family and the massive industrial conglomerate Haliburton.

When Martin Luther King said in one of his speeches that America was the chief exporter of violence in the world today, he had a point. And our government under the Tories and Blair has been no better. Blair lied to us to get the support of the British public for the Iraq invasion. Maggie Thatcher promoted British arms exports, as did Blair, as did Cameron, drooling all over the ‘wonderful kit’ produced in that BAE factory in Lancashire.

And all the while ordinary people have seen services cut and the infrastructure of countries – roads, railways and so on – left to decay by the profiteering firms that should be maintaining and building them. There are cuts to public services and even more attacks on welfare payments, all in the name of ‘austerity’, ‘making work pay’ and the other lies and buzzwords used by the right to justify their impoverishment and victimization of the poor. And this is done to give massive tax cuts to the already bloated rich.

It’s high time this was stopped, the military-industrial complex reigned in, the wars for their profits ended, and the government invested instead in proper economic growth, domestic industries, infrastructure, public services, a proper welfare state and medical care, and giving working people a proper, living wage.

Owen Jones Talks to Rebecca Long-Bailey: Neoliberalism Has Fallen Apart

October 23, 2017

In this video, Owen Jones, the author of Chavs: The Demonisation of the Working Class and The Establishment, talks to Rebecca Long-Bailey, one of the people responsible for the Labour manifesto and close ally of Jeremy Corbyn. He states that she has been pretty central to the whole Corbyn project. And he particularly likes her because she’s a ‘scamp’ from Manchester like him.

He begins by stating that Clement Attlee established the post-War consensus of a strong welfare state, state intervention in industry and labour and trade union rights. This fell apart under Margaret Thatcher. He asks her if Thatcher’s neoliberalism is now falling apart in its turn.

She replies very positively that it definitely is, and that more orthodox economists are stating that we need a Keynsian approach to the economy. She says that when they began promoting Keynsianism, they were attacked as very much out of touch. Now the Financial Times and another major economic journal has come out and supported state interventionism. The FT even said that we need to renationalise water. This left her absolutely speechless with surprise when she read it, as it was a Labour idea.

She was the Shadow Minister in charge of business and industrial strategy. Jones notes that the hostile press would immediately attack Labour’s policies as destructive and compare them to Venezuela. He asks how she responds to that. She replies with a very clear answer: ‘Rubbish’. She points out that, under neoliberalism, Britain has become one of the least productive nations in the developed world. Indeed, productivity is at its lowest for 20 years. And thanks to wage restraint, wages are also lower than they were before the Crash of 2008.

She states we need an investment bank for England to encourage investment, as private industry won’t invest unless government does so. She also states that we need to reform industry so that it represents everyone involved in a firm, including workers and stakeholders. When Jones asks her what she considers socialism to be, she simply responds ‘Fairness’, and talks about giving employees rights at work, protecting their jobs. She also makes it clear that she believes it is very important to show people that voting Labour will make a difference to their lives. She wants to show people in the north that Labour will tackle homelessness, not just by building more homes, but by building more social housing, so that people, who can’t afford a house will get one. It will be a radical transformation of society, just like it was in the 1940s.

She also talks about how difficult it is being an MP. As a Member of Parliament, you just want to talk about your policies and the issues, but you have to be aware that every time you give an interview, the media are trying to lead you into a trap by getting you to say the wrong thing, or criticise a Labour colleague.

Long-Bailey clearly has a deep grasp not only of the abstract economic issues involved, but also of the personal dimension as people are driven in debt, misery and despair through neoliberalism’s destruction of the British economy for the enrichment of the small number of extremely rich and privileged. And she is inspired by the same ideas as those of Clement Attlee and the great labour politicians, who forged the post-War consensus and gave Britain it’s longest period of economic growth, as well as expanding opportunities for ordinary working women and men.

And it can only be brilliant that the FT, that great pillar of financial capitalism, has come on board to support a return to Keynsianism.

As for the pet Thatcherite policies of Monetarism and neoliberalism, Robin Ramsay has spoken of Monetarism that when he studied economics in the late 60s and ’70s, it was considered such as a nutty idea that his professors didn’t bother to argue against it. He has suggested that it’s possible the Tories, who embraced it also knew it to be a load of rubbish. But they adopted it because it provided an ideological justification for what they wanted to do anyway: privatise industry and smash the organised working class.

Now Thatcherite neoliberalism is falling apart very obviously, and the elite are panicking. Hence the non-story about Clive Lewis and his supposed ‘misogyny’, which is a complete non-story. It’s being used by the Tories to try to distract people from their continuing failures over Brexit, the privatisation of the health and education services. And, of course, the sheer mass of seething misogyny and racism in their own party.

TYT Cover Panel on the End of Neoliberalism at Labour Party Conference

October 22, 2017

This is another video produced by the progressive American news service, The Young Turks, of the Labour conference at Brighton the week before last. The panel was entitled ‘Welcome to the End of the Neoliberalism’. Held in a dingy nightclub, the female host jokes about how her audience can say exactly where they were when neoliberalism ended, and that, as with nearly all revolutions, the women were first and the men came late.

With her on the panel were Paul Mason, a former Channel 4 journo, playwright, documentary film maker, and the author of the book ‘Postcapitalism’; Jo Littler, an academic, who specialises in cultures of consumption, and the author of a book on meritocracy, pointing out that this is precisely what it isn’t, as meritocracy is a system that reinforces minority, elite rule; Valary Alzaga, a labour organiser working with the people at neoliberalism’s sharp end in precarity; and Clive Lewis, the MP for Norwich.

Paul Mason begins the discussion by trying to describe what neoliberalism is in reality, rather than neoliberalism as a collection of ideas. In doing so he states that he has annoyed the Adam Smith Institute. And he includes not only the perfect, ideal capitalist states of the West, but also mercantilist states like China, as they are now part of the same global system. He states that you could go back to the German ordoliberals to describe it, and to people like Von Hayek and the Chicago School. But he begins with Peugeot’s definition of its aims at a meeting in Paris in 1938. This described precisely what neoliberalism is not: it is not traditional laissez-faire economics. The early neoliberals realised that if markets and market forces were left on their own, the result would be monopolies that would be nationalised by the state, according to Marxist doctrine and praxis. So they sought to enforce competition at every level. This means not only privatisation, and the introduction of legislation to force companies to compete, but also the creation of competition as a mindset to keep working people isolated and competing against each other.

The result can be seen in the favelas – the deprived slums – of Latin America, where you have poor people living in former factories that have closed down. Then the housing association is dissolved, and the mob moves in, as only through organised crime is there safety. And Mason states very clearly that it isn’t only in Latin America that this process has occurred. It’s also happened in many of the towns in the north of England, where industry has been gutted and forced overseas, and the result has been a massive upsurge in crime.

He goes on to state that at first neoliberalism was devised so the rich West could exploit Latin America. But after the Fall of Communism opened up the 20 per cent of the world market that was the former eastern bloc, it became a global system. However, neoliberalism is now collapsing. It produces a series of crises, and so rightwing politicians like Trump, rather than destroying it, are producing nationalist versions of neoliberalism. That is, they are turning away from it as a system of international trade, but still enforcing it in their own countries as a system of private ownership that excludes and exploits the poor.

Jo Littler says much the same as Mason in a much briefer speech. She refers to it as ‘disembowelling’ the public, meaning the enforced privatisation of public services. She also describes how two of the sources for neoliberalism were the German Ordoliberals, who turned away from the state-managed economy of the Nazis, and von Hayek and the Chicago school. She also mentions how it was first proposed by the Montpelerin meeting in Paris. And she also makes the point that it took a long time for them to have their ideas accepted, as until the Chicago School, Pinochet and Thatcher they were isolated cranks and weirdoes.

Valary Alzaga explains that she is a care worker, who are some of the most poorly paid workers with the most precarious jobs. She describes how, under neoliberal capitalism, care homes have been privatised, bought up by hedge funds and venture capitalists, who have then gone on to sell off whatever was profit-making. As for care workers, neoliberalism means that if they try to form a union, they are immediately sacked. Under socialism and Keynsianism there was a social pact, by which employers and the state recognised the rights of workers to form trade unions and bargain for better pay and conditions. This no longer exists.

Clive Lewis, who to my mind looks like a younger version of Noel Clarke, the actor, who played Rose Tyler’s boyfriend in Dr. Who, is an economics graduate. He describes how, when he was studying it, he and the other students were filled with its doctrines, but no-one ever mentioned the word. He only woke up to what it was and really meant when he happened to go on a summer course about it. He describes this in terms of a religious revelation. He says it was as if he’d been deprogrammed. When he returned, his friends complained that it was as if he’d joined a cult, because all he talked about was neoliberalism, neoliberalism and neoliberalism.

He states that the goal of von Hayek wasn’t to set up an independent party, as he was asked by one of his followers. He wanted instead to permeate the academic institutions, like the universities and take over the whole system. And so this resulted in Blair and Brown accepting it as absolutely true, and introducing it into the Labour party. He refers to the story, which he thinks was apocryphal, about Thatcher being asked what her greatest achievement was. Instead of pointing to one of her wretched privatisations, she said it was Tony Blair and New Labour. Lewis states that their adoption of neoliberalism is unforgivable with the benefit of 20/20 hindsight but you have to understand the state of British politics at the time.

This is a fascinating analysis of the rise and destructive effects of neoliberalism. Robin Ramsay, the editor of ‘Lobster’, also studied economics in the late ’60s – early ’70s, and he states that Thatcher’s beloved Monetarism was considered so much rubbish that his lecturers didn’t even bother arguing against it. And before Thatcherism turned to mass privatisation and the idolatrous adulation of the free market after 1981-2, neoliberalism was considered very much an extreme doctrine held only by cranks. Which is what it should return to being.

As for annoying the Adam Smith Institute, they have been pushing for the complete privatisation of all state assets, including the NHS since the 1970s, so annoying them is, in my view, a good and holy occupation. And in amongst their dissection of neoliberalism they also have a gibe at Jacob Rees-Mogg, which is also always a good thing.

William Blum on Socialism vs. Capitalism

September 19, 2017

William Blum, the long-time fierce critic of American and western imperialism, has come back to writing his Anti-Empire Report after a period of illness. He’s an older man of 84, and due to kidney failure has been placed on dialysis for the rest of his life. This has left him, as it does others with the same condition, drained of energy, and he says he finds writing the report difficult. Nevertheless, his mind and his dissection of the ruthless, amoral and predatory nature of western capitalism and corporate greed is as acute as ever.

There’s a section in the Anti-Empire Report, where he discusses the advantages of socialism versus capitalism. He notes that there were two studies carried out under George Dubya to see if private corporations were better than federal agencies. And the federal agencies won by a huge margin every time. He writes

Twice in recent times the federal government in Washington has undertaken major studies of many thousands of federal jobs to determine whether they could be done more efficiently by private contractors. On one occasion the federal employees won more than 80% of the time; on the other occasion 91%. Both studies took place under the George W. Bush administration, which was hoping for different results. 1 The American people have to be reminded of what they once knew but seem to have forgotten: that they don’t want BIG government, or SMALL government; they don’t want MORE government, or LESS government; they want government ON THEIR SIDE.

He also states that the juries’ still out on whether socialist countries are more successful than capitalist, as no socialist country has fallen through its own failures. Instead they’ve been subverted and overthrown by the US.

I think he’s wrong about this. The Communist bloc couldn’t provide its people with the same standard of living as the capitalist west, and the state ownership of agriculture was a real obstacle to food production. The bulk of the Soviet Union’s food was produced on private plots. Similarly, Anton Dubcek and the leaders of the Prague Spring, who wanted to reform and democratize Communism, not overthrow it, believed that Czechoslovakia’s industrial development was held back through the rigid structure of Soviet-style central planning.

However, he still has a point, in that very many left and left-leaning regimes have been overthrown by America, particularly in South America, but also across much of the rest of the world, as they were perceived to be a threat to American political and corporate interests. And for the peoples of these nations, it’s questionable how successful capitalism is. For example, in the 1950s the Americans overthrew the Guatemalan government of Jacobo Arbenz after he dared to nationalize the banana plantations, many of which were own by the American corporation, United Fruit. Benz was a democratic socialist – not a Communist, as was claimed by the American secret state – who nationalized the plantations in order to give some dignity and a decent standard of living to the agricultural workers on them. The government that overthrew Benz was a brutal Fascist dictatorship, which imposed conditions very close to feudal serfdom on the plantation labourers.

Which leads to a more general point about the emergence of capitalism, imperialism and the exploitation of the developing world. Marxists have argued that capitalism had partly arisen due to western imperialism. It was the riches looted from their conquered overseas territories that allowed western capitalism to emerge and develop. Again this is a matter of considerable debate, as some historians have argued that the slave trade and plantation slavery only added an extra 5 per cent to the British economy during the period these existed in the British empire, from the mid-17th century to 1840. More recently, historians have argued that it was the compensation given to the slaveowners at emancipation, that allowed capitalism to develop. In the case of the large slaveholders, this compensation was the equivalent of tens of millions of pounds today. At the time the plantation system was in crisis, and many of the plantation owners were heavily in debt. The slaveholders used the money given to them by the British government – £20 million, a colossal sum then-to invest in British industry, thus boosting its development.

This system has continued today through what the Swedish economist Gunnar Myrdal termed ‘neocolonialism’. This is the international trading system which the former imperial masters imposed on their colonies after the end of imperialism proper following the Second World War. High tariffs and other barriers were imposed to stop these countries developing their own manufacturing industries, which could produced finished goods that would compete with those of Europe and the west. Instead, the former subject nations were forced through a series of trade agreements to limit themselves to primary industries – mining and agriculture – which would provide western and European industry with the raw materials it needed. As a global system, it’s therefore highly debatable how successful capitalism is in providing for people’s needs, when the relative success of the capitalist west has depended on the immiseration and exploitation of countless millions in the developed world.

And in the developed west itself, capitalism is failing. In the 19th century Marx pointed to the repeated crises and economic slumps that the system created, and predicted that one of these would be so severe that it would destroy capitalism completely. He was wrong. Capitalism did not collapse, and there was a long period of prosperity and growth from the late 19th century onwards.

But terrible, grinding poverty still existed in Britain and the rest of the developed world, even if conditions were slowly improving. And the long period of prosperity and growth after the Second World War was partly due to the foundation of the welfare state, Keynsian economic policies in which the government invested in the economy in order to stimulate it, and a system of state economic planning copied from the French.

Now that Thatcherite governments have rolled back the frontiers of the state, we’ve seen the re-emergence of extreme poverty in Britain. An increasing number of Brits are now homeless. 700,000 odd are forced to use food banks to keep body and soul together, as they can’t afford food. Millions more are faced with the choice between eating and paying the bills. In the school holiday just passed, three million children went hungry. And some historians are predicting that the refusal of the governments that came after the great crash of 2008 to impose controls on the financial sector means that we are heading for the final collapse of capitalism. They argue that the industrial and financial elite in Europe know it’s coming, are just trying to loot as much money as possible before it finally arrives.

The great, free trade capitalism lauded by Thatcher, Reagan and the neoliberal regimes after them has failed to benefit the majority of people in Britain and the rest of the world. But as the rich 1 per cent have benefited immensely, they are still promoting neoliberal, free trade policies and imposing low wages and exploitative working conditions on the rest of the population, all the while telling us that we’re richer and generally more prosperous than ever before.

Back to Blum’s Anti-Empire Report, he also has a few quotes from the American comedian Dick Gregory, who passed away this year. These include the following acute observations

“The way Americans seem to think today, about the only way to end hunger in America would be for Secretary of Defense Melvin Laird to go on national TV and say we are falling behind the Russians in feeding folks.”

“What we’re doing in Vietnam is using the black man to kill the yellow man so the white man can keep the land he took from the red man.”

For more, see https://williamblum.org/aer/read/150

Book on Conservative, Anti-Left Bias at the BBC

August 24, 2017

The BBC: The Myth of a Public Service, Tom Mills (London: Verso 2016).

I managed to pick up a copy of this book, which came out last year, yesterday while poking around one of the secondhand book shops in Cheltenham. The BBC has become increasingly very blatantly biased against the Labour party, trade unions and the left in general. The Corporation has huffily denied this, but it’s been the subject of academic critiques by Edinburgh, Glasgow and Cardiff academics, who have concluded that there is a very real bias towards the Tories and business leaders, and against Labour MPs and trade unionists. According to the back flap of the dust jacket, Tom Mills is another academic – a lecturer in sociology and policy at Aston University, and a former co-editor of the New Left Project.

The blurb on the front flap states

The BBC is one of the most important institutions in Britain; it is also one of the most misunderstood. Despite its claim to be independent and impartial, and the constant accusations of a liberal bias, the BBC has always sided with the elite. As Tom Mills demonstrates, we are only getting the news that the Establishment wants aired in public.

Throughout its existence, the BBC has been in thrall to those in power. This was true in 1926 when it stood against the workers during the General Strike, and since then the Corporation has continued to mute the voices of those who oppose the status quo: miners in 1984; anti-war protesters in 2003; those who offer alternatives to austerity economics since 2008. From the outset much of its activity has been scrutinized by the secret services at the invitation of those in charge. Since the 1990s the BBC has been integrated into the market, while its independence from the government and big business has been steadily eroded. The BBC is an important and timely examination of a crucial public institution that is constantly under threat.

Barry and Saville Kushner have also pointed out how the Beeb and its journos unquestioningly accept the necessity of austerity, rarely inviting on their programmes anyone dares say otherwise. When they do, the interviewer promptly throws a fit and shouts them down. They heard one instance of this while listening to a radio interview on Radio 4 with a leading trade unionist, who was very abruptly stopped when he tried explaining that there was absolutely no need for it. See their book, Who Needs the Cuts.

The anti-Labour bias is acutely obvious in Laura Kuenssberg’s treatment of the Labour leader, Jeremy Corbyn. It was also very evident with the reports on the Six O’clock news by John Pienaar and George Alagiah. Any number of people have complained about Kuenssberg’s flagrant bias, and got the same shirty treatment from the people in the media bubble. Those, who dare to complain, like Guy Debord’s Cat, get a haughty letter from one of its apparatchiks pompously informing them how the Corporations journalists are all scrupulously impartial, and they are mistaken. And the hackettes in the Groaniad immediately got on their high horses to claim that those criticizing la Kuenssberg were just doing it because they were sexist chauvinists, like the Bernie Bros in America. Which also didn’t exist, but were made up by Killary and her minions as a way of explaining why few people, including women, actually like this highly entitled, neoliberal, establishment figure, who befriends blood-soaked war criminals like Henry Kissinger.

And despite the Beeb’s protestations, several of their own journos don’t buy this rubbish either. Robert Peston, now the Beeb’s economics editor, was asked three years ago what he thought about the claims that it had a liberal bias. Peston replied that, on the contrary, the Corporation was ‘completely obsessed with the agenda set by newspapers’, naming the Heil and Torygraph. He added that it ‘quite often veers in what you might call a very pro-establishment, rather right-wing direction’. He forthrightly said that the claims that the Beeb is left-wing is ‘bollocks’. (p. 106).

But such claims have been around since the BBC was formally incorporated as a nationalized industry. When it was just a cartel of radio manufacturers and broadcasters, the Conservatives were accusing it of a Socialist bias. Glancing through the book reveals that there have been repeated attempts by the Tories to make it reflect their views. In 1947 Churchill launched one of these. Some of the most significant occurred in the 1970s with Keith Joseph and the other neoliberals around Maggie Thatcher. They got very upset in 1974 when the respected American economist, J.K. Galbraith, presented a series critiquing corporate power and the rise and crisis of industrial society, including Marxist and Keynsian perspectives, The Age of Uncertainty. This was too much for Joseph and the rest of the frothing mad Tory right. Galbraith was no liberal. He identified as Conservative, but had said the unsayable. Galbraith stated in the introduction to the ninth episode of that, ‘The Big Corporation’, that it was a myth that the consumer is sovereign and the corporation respond to their preferences, efficiently allocating society’s resources. The reality was that ‘corporations influence government, influence the consumer. Only the textbooks say otherwise.’ Joseph and Geoffrey Howe then organized a campaign to have another series set up, examination the question from a pro-Hayekian, free market perspective, presented by Milton Friedman. This was the Milton Friedman, who enthusiastically rejected democracy after realizing that his Chicago School would always been a minority. He therefore championed General Pinochet, who was also an enthusiastic Monetarist, when he overthrew the Marxist president of Chile, Salvador Allende, in a Fascist coup.

One of the most revealing sections is the chapter discussing how the Beeb’s massive pro-business bias was established about nine or so years ago, way back at the start of century around the year 2000. It was set up, and the treatment of business affairs expanded, by Greg Dyke. Dyke was a member of the Labour party, and a crony of Tony Blair. This explains why the Tories were constantly howling about how he was a dangerous Socialist, and there was a left-wing bias at the Beeb. In fact, Dyke had imbibed the same Thatcherite, neoliberal views as Blair, despite the continued whines that the Beeb had an ‘anti-industry culture’. It’s another example of how politicians on the nominal left, like Blair, took over and expanded the Conservatives’ neoliberal programme.

As for pro-Fascist bias, this even afflicted that great founder of the Beeb, Lord Reith. In 1933 Reith made a speech declaring that it was possible for someone to spread democratic values without being a democrat. Two years later, in 1935, he made a speech praising Mussolini. He personally believed the country needed a dictatorship. Fortunately, the rest of the Beeb’s governors and controllers didn’t, and forced him out.

This is interesting, as it’s an aspect of Reith’s life I hadn’t heard about before. There have been biographies of him – one of which was published in the 1990s, and, I think, reviewed by the Financial Times. However, from what I can remember, what was said about Reith’s personal failings was about his own puritanism, repressed homosexuality, and guilty infatuation with another man. I can’t recall any mention of Reith being a supporter of Fascist style dictatorship, although it should also be said that he despised the Fascists’ thuggery.

It would be too much to say that the corporation is pro-Fascist. They’re very proud of a quote made during the crisis of 1974, when one of the journos announced that the Beeb isn’t impartial – it’s strongly pro-democratic, and passionately feels this needs to be cherished. On the other hand, broadcasters tend to be Conservatives. And one aspect of the Conservative mindset is authoritarianism. See some of the pieces on YouTube discussing this by left-wing news sites like Democracy Now and so on. This would explain why they give more respect than they should to extreme right-wing movements like the BNP and UKIP. Guy Debord’s Cat has written about this over on his blog, if you want further information.

The book also places Mary Whitehouse, the moral crusader, who became the scourge of broadcasters from the 1960s onwards. Whitehouse is still a notorious figure today for her campaign against all manner of smut and filth on television with her group, the Viewers’ and Listeners’ Association. A year or so ago there was a book about her and her correspondence with the Corporation, Ban This Filth. Mills states that she is looked upon as an eccentric figure. Misguided, but essentially harmless. This isn’t quite the case.

Whitehouse was linked the Tories, and a friend of Maggie Thatcher. She and they thought that there was a plot by a left-wing elite to foist all this degeneracy and moral chaos on the British public. It’s a view that’s now become firmly established within the Right. And there was a very strong political dimension to her campaign. She believed that the liberal elite wanted to create sexual permissiveness and anarchy in preparation for a state of political anarchy, in which the fundamental institutions of British society would be torn down. And like many a bonkers conspiracy theorist, she was convinced that this was all being coordinated by Moscow. These days she’d probably be on Infowars with Alex Jones, along with nutters frothing about imaginary satanic paedophile rings operating out of Boston pizza parlours by Hillary Clinton, and those who think that the government is run by a secret cabal of aliens from Zeta Reticuli.

As for her views about political anarchism, this was also held by MI5, much to the amusement of the real anarchists in the Anarchist Federation. See one of the pieces on modern anarchism in the anthology of anarchist literature, Anarchism, edited by George Woodcock.

The book concludes that Reith’s vision of the Beeb’s role was the same as that as Matthew Arnold, the headmaster of Rugby, in his book Culture and Anarchy. The alienated laboring poor were to be incorporated into the culture and political structure of British society, but firmly under the leadership of the upper classes. The brief period when British society and the BBC had become more egalitarian due to rising affluence and the economic and social changes of the 1960s, has disappeared. This is partly due to the collapse of Communism. There is now no longer an exterior threat demanding that certain concessions be made to the working and lower middle classes, so that they don’t become too radicalized. Neoliberalism has increased poverty and jobs are precarious. At the same time, power has become more distanced and centralized amongst a powerful coterie of Oxbridge-educated managers. And just as this has occurred in industry and wider British society, so it as has also occurred in the Beeb.

This is an important study of the Beeb’s institutional right-wing, pro-Establishment bias. It’s another refutation of the Beeb’s repeated, and increasingly spurious claims of impartiality. Since Corbyn became leader, more people have become aware of how hypocritical and specious these claims are. It’s why more people are getting their news and information from the internet, and sites you can really trust. Sites like Vox Political, Tom Pride, Johnny Void, Another Angry Voice, DPAC, Kitty S. Jones, the Canary, the Squawkbox, Guy Debord’s Cat, Tony Greenstein and others too numerous to mention.

These people convey real news, and their under threat from the big corporations Google and Facebook, who only want you to view and read approved corporate, neoliberal propaganda. It’s why they’re demonetizing left-wing news shows like Democracy Now, The Young Turks, the David Pakman Show, Secular Talk and Sam Seder’s Majority Report, and changing the rules on Facebook to make it difficult for people to access the left-wing blogs.

Don’t let them get away with this. Support your favourite left-wing blogs and news shows.

Vox Political: Tories Lying About Full Employment

August 18, 2017

Mike yesterday put up a very necessary piece critically examining the Tories’ claims that Britain now has ‘full employment’, meaning that the unemployment rate is 4.5 per cent, and three million more people are in work since this time last year. Mike states very clearly that if you’re confused by your inability to get a decent job or a proper, living wage, despite this news, you’re quite right. It’s because the figures are a lie.

He cites the figures included in two critical reports of the Tory claims, one by The Canary and the other by the UK Business Insider. The Canary states that in order to reach this figure of 3 million more in work, the Tories have had to include 10,000 unpaid family workers and 35,000 on temporary training contracts.

As for wages, these have fallen by 0.5 per cent year on year, so that you’re actually £6 worse off now than when the Tories took power.

The Canary article concludes

“Since the Tories came to power in 2010, more people are in precarious self employment; the public sector has been decimated; young people have been abandoned and we’ve all seen our wages plummet. So, far from being “all in this together”, the UK is becoming a dustbin for employment opportunities. ”

And the UK Business Insider states that the official stats are lies, and the true unemployment rate is higher. Much higher. So high, it will shock you.

“The statistical definition of ‘unemployment’ relies on a fiction that economists tell themselves about the nature of work,” the article states. “The official definition of unemployment disguises the true rate. In reality, about 21.5% of all working-age people (defined as ages 16 to 64) are without jobs, or 8.83 million people, according to the Office for National Statistics.

They also state that this is proved by the fact that wages have not risen. Economics states that if there is low unemployment, then wages should rise as firms compete to attract more workers by offering higher wages, because labour is so scarce.

But instead, public sector wages are capped at 1 per cent, and wages generally are stagnant.

The article goes on

“More important, wages are not keeping pace with inflation… Workers’ real incomes are actually in decline, which is weird because so-called full employment ought to be spurring wages upward. Overall inflation ought to be driven by wage inflation. Yet wage inflation isn’t happening.

“The answer is that unemployment is not really that low. In reality, about 21.5% of British workers are either officially unemployed, inactive, or employed part time even though they really want full-time work. (The ONS has a chapter on that here.) Some of those people — parents with newborns, university students — may not want jobs right now, but they will want jobs soon.”

Mike concludes

Now, you could argue that nobody is saying that 21.5 per cent of working-age people aren’t out of work – the employment rate is only said to be 75 per cent, after all.

But the unemployment rate is said to be only 4.5 per cent. That’s why we’re being told the UK has full employment and it isn’t true.

That’s why you can’t get a job that pays well – even though the Tories claim there are 768,000 vacancies; there are still so many people out of work that they can continue pushing wages down.

http://voxpoliticalonline.com/2017/08/17/still-cant-get-a-job-even-though-weve-reached-full-employment-its-because-the-figures-are-a-lie/

This is important, as these fiddled and highly unreliable figures are being touted by the Tories to show that they’ve been successful in tackling unemployment. And as Mike’s shown, they’re a grotesque falsification.

Mike’s piece has also confirmed what I’ve suspected for a very, very long time: that the official statistics for unemployment have been doctored and adjusted by successive governments to disguise the real rate, that they’re completely unreliable.

I can remember how Margaret Thatcher’s administration altered the official unemployment rate when she came to power way back in 1979. And every government since then has done the same thing.

The latest trick done by the Tories was by making the figures count only those who were signing on as jobseekers. As the whole benefits system is designed to humiliate benefit claimants into either getting a job, or not signing on, with sanctions imposed for even the most trivial reasons, many people don’t sign on for jobseeker’s allowance because of the stress of being harangued and bullied by the jobcentre staff.

Thus the unemployment figures are a conscious lie here, based on a spurious method of counting the unemployed.

Then there’s the actual percentage of people really unemployed in Britain – 21 per cent. This makes a complete lie out of the Tory claim that we’re much better than the other EU states, which may have an unemployment rate of 25 per cent. I’ve read that this is Spain’s unemployment rate, along with some of the other EU countries. The argument is that these nations’ more generous welfare systems and highly regulated economies are causing high unemployment by stifling the free market and the beneficial effects of private enterprise.

This becomes extremely questionable if the true British unemployment rate is only 4 per cent behind that of states like Spain. Moreover, economists such as Ha-Joon Chang have shown that free market economics simply don’t work, and that the older, ‘Keynsian’ system of protectionism and a mixed economy with a welfare state actually works far better in promoting economic growth and prosperity.

My guess is that the drive of successive European government to have 50 per cent of all school leavers enter higher education is also, in part, an attempt to disguise an otherwise high unemployment rate. There probably simply isn’t the jobs for all the school leavers, if only 2 to 20 per cent of young people entered university as they used to before the expansion of higher education back in the 1990s.

In short, the unemployment figures May and her cronies are proudly boasting are complete fabrications, designed to deceive the public into believing the economy and job opportunities are far better than they are.

Don’t be fooled. Get May out before she make the situation worse, and already desperately poor people even poorer.

Cartoons of Cameron, Osborne, Peter Lilley, Milton Friedman and Paul Dacre

July 2, 2017

Hi, and welcome to another cartoon I drew a few years ago of the Conservatives and their supporters in the press and leading ideologues.

These are more or less straight drawings of five of the men responsible for the present nightmare that is Theresa May’s Britain. A Britain where a hundred thousand people are using food banks to stop themselves from starving. A Britain where a further seven million people live in households where they’re eating today, but don’t know if they’ll eat tomorrow. This is the Britain where the NHS is being gradually privatised behind the public’s back, so that the Tories don’t lose the next election. A Britain where the majority of the public would like the railways and utility industries renationalised, but the Tories want to keep them in private hands so that they provide substandard services at high prices for the profits of their managers and shareholders.

This is a Britain where the press screams hatred at ‘foreigners’ – meaning not just recent immigrants and asylum-seekers, but also EU citizens, who came here to work, but also second- or third-generation Black and Asian British. A press that demonises and vilifies Muslims, no matter how often they march against terrorist monsters like those of ISIS and their ulema – the Islamic clergy – denounce hatred and mass murder.

Immigrants and foreign workers are net contributors to the British economy. They are less likely to be unemployed and rely on the welfare state, so that their taxes are supporting the rest of us. Many of them have come here to fill very specific jobs. But they are still reviled for taking jobs from Brits, and for being scrounging layabouts, preventing true, hardworking Brits from getting the benefits they need.

This is a press that also denigrates and vilifies the very poorest in society – the unemployed, the disabled, unmarried mothers and others on welfare, so that the Tories can have the support of the public when they cut benefits to these groups yet again.

This is a Britain were the majority of people in benefits are working, but they’re stuck in low-paid jobs, often part-time, or zero hours contracts. Many of them are on short-term contracts, which means that, while they have a job today, they may not in a few months time. Nevertheless, even though these people do still work hard, the Tories have decided that the jobcentres and outsourcing companies should also pester and harangue them to get off benefits, because it’s their fault they’ve got a low-paid job. And this is despite the fact that it has been nearly four decades of Thatcherite doctrines about maintaining a fluid labour market, and a ‘reserve army of the unemployed’ to keep wages down.

The Tories are a party that yell passionately and incessantly about how they are ‘patriotic’, while the others were the ‘coalition of chaos’, but who have done so much to break up the United Kingdom into its separate kingdoms and provinces. Cameron called the ‘Leave’ referendum, hoping it would draw the venom from the Tory right. England voted for Brexit, but the rest of the UK voted to Remain. With the result that there is a real constitutional crisis about whether the UK can leave the EU and still remain intact.

It also threatens to renew the Nationalist/Loyalist conflict in Northern Ireland. Part of the Ulster peace process was that there would be an open border with Eire. The majority of people in the Six Counties, whether Roman Catholic or Protestant, wish to retain the open border. But if Britain does leave the EU, then there’s a possibility that border will have to be closed.

The Tories have also endangered the fragile peace in Ulster in other ways. Having lost their majority in parliament, they’ve gone into an alliance with the DUP, a group of highly sectarian Loyalists, who condemn evolution, abortion, homosexuality and bitterly hate Roman Catholics and Gaelic Irish. They’re the same people, who demand the right to march through Roman Catholic areas screaming hatred at the residents. A party, whose links with Loyalist terrorists are so strong they’ve been dubbed ‘the Loyalist Sinn Fein’.

This is the party, that tries to present itself as for ‘hard-working’ ordinary people, while its dominated by elite aristocratic, old Etonians toffs like David Cameron and George Osborne.

The Conservatives have also been trying to present themselves as female-friendly and pro-women, as shown by their selection of Theresa May to lead them. But the people worst hit by austerity have been women, who make up the majority of low-paid workers, particularly in the service industries, like care workers and nurses. Some of the latter are so poorly paid, they’ve had to use food banks. When asked about this, all that brilliant intellectual Theresa May could do was to mumble something about how there were ‘complex reasons’ for it. No, there’s a very simple reason: you’ve paid them starvation wages.

This is a Britain where, according to Oxford University, 30,000 people were killed by the Tories’ austerity policy – introduced by Dodgy Dave Cameron – in 2015 alone. A policy which has dictated that people on benefits should be thrown off them apparently at the whim of a jobcentre clerk, and that terminally ill or seriously injured citizens should have their benefits withdrawn, ’cause they’re ‘fit to work’. Such poor souls have included cancer patients in comas.

Here’s a selection of some of those responsible for this squalid carnage.

At the bottom left is David Cameron. Bottom centre is George Osborne, and on his right is Paul Dacre, the editor of the Daily Mail. This is the Tory rag that has done so much to spread hatred against immigrants, ethnic minorities, the EU, the working class, the trade unions and which has been consistently anti-feminist. This last has been quite bizarre, considering that it was a founded as the newspaper to be read by the wives of the city financiers, who read the Torygraph.

On the right, above Dacre and Osborne, is Peter Lilley, from a decades old issue of Private Eye.

Lilley’s there because of his role in destroying the welfare state and privatising the NHS. It was Lilley, who pranced across the stage at a Tory conference in the 1990s reciting a stupid song he’d written about having a little list, in imitation of The Mikado. This was a list of everyone he hated, including single mothers and other benefit scroungers.

Lilley was also responsible for the PFI scheme, in which the government goes into partnership with private contractors to build and run public services, such as bridges and hospitals. These schemes are always more expensive, and deliver poorer service than if the bridge, hospital or whatever had been constructed using purely public funds. Hospitals built under PFI are smaller, and have to be financed partly through the closure of existing hospitals. See George Monbiot’s book, Captive State, about the way Britain has been sold off to the big corporations. But governments like it, because the technicalities of these contracts means that the costs are kept off the public balance sheet, even though the British taxpayer is still paying for them. And at a much higher rate, and for much longer, than if they had been built through conventional state funding.

Lilley’s PFI was the basis for New Labour’s ‘third way’ nonsense about running the economy. It has also been a major plank in the ongoing Thatcherite project of selling off the NHS. A few years ago, Private Eye published an article showing that Lilley developed the scheme, because he wanted to open the NHS up to private investment. And now, nearly two decades and more on, hospitals and doctors’ surgeries are being run by private healthcare companies, and the majority of NHS operations are actually being commissioned from private healthcare providers. The Tories hotly deny that they are privatising the NHS, but Jeremy Hunt has written a book in which he stated that he loathed state medicine, and Theresa May has kept him on Health Secretary, despite the bankruptcy of an increasing number of NHS Trusts, this shows that the reality is very much the complete opposite of their loud denials.

And the person on the left of Lilley is the American economist, Milton Friedman. Friedman was one of the great, free market advocates in the Chicago school of economists, demanding that the welfare state should be rolled back and everything privatised. He was the inventor of Monetarism, which was roundly embraced by Enoch Powell and then Maggie Thatcher. This was to replace the Keynsianism that had formed the cornerstone of the post-War consensus, and which stated that state expenditure would stimulate the economy and so prevent recessions. One of the other world leaders, who embraced Monetarism as his country’s official economics policy was the Chilean Fascist dictator and friend of Thatcher, Augusto Pinochet. Friedman regularly used to take jaunts down to Chile to see how the old thug was implementing his policies. When Pinochet was not imprisoning, torturing and raping people, that is.

One of Friedman’s other brilliant ideas was that education too should be privatised. Instead of the government directly funding education, parents should be given vouchers, which they could spend either on a state education, or to pay the fees for their children to be educated privately. This idea was also adopted by Pinochet, and there’s a very good article over at Guy Debord Cat’s on how it’s wrecked the Chilean educational system. Just as New Labour’s and the Tories privatisation of British universities and the establishment of privately run ‘academies’ are destroying education in Britain. It was also Maggie Thatcher, who began the trend towards removing the payment of tuition fees by the state, and replacing the student grant with student loans. The result has been that young people are now graduating owing tens of thousands in debt.

Robin Ramsay, the editor of Lobster, said that when he was studying economics at Uni in the 1970s, Monetarism was considered so daft by his lecturers that no-one actually bothered to defend it. He suggested in an article that it was adopted by the Tories for other reasons – that it gave them an excuse to privatise the utility industries, destroy the welfare state and privatise the NHS. Even so, eventually it became too glaringly obvious to too many people that Monetarism was a massive failure. Not least because Friedman himself said so. This sent the Daily Heil into something of a tizzy. So they devoted a two-page spread to the issue. On one side was the argument that it was a failure, while on the other one of the hacks was arguing that it was all fine.

In fact, it’s become very, very obvious to many economists and particularly young people that the neoliberalism promoted by the Tories, New Labour, Friedman and the other free market ideologues is absolute rubbish, and is doing nothing but press more and more people into grinding poverty while denying them affordable housing, proper wages, welfare support and state medicine. But the elites are still promoting it, even though these ideas should have been put in the grave years ago. It’s the reason why one American economist called neoliberalism and similar free market theories ‘Zombie Economics’ in his book on them.

May’s government looks increasingly precarious, and it may be that before too long there’ll be another general election. In which case, I urge everyone to vote for Jeremy Corbyn, as he’s promised to revive the welfare state, renationalise the NHS and parts of the energy industry, and the rail network.

They’re policies Britain desperately needs. Unlike the poverty, misery and death created by the above politicos.