Posts Tagged ‘Manufacturing Industry’

‘I’ Article on Academic Underperformance and Social Deprivation of White Working Class

October 17, 2020

The most deprived section of the population according to some measurements is the White working class. There have been any number of articles written about this. Working class White boys perform less well at school compared to Blacks and Asians, have higher rates of unemployment and hold poorer paid jobs. And according to an article in last Wednesday’s I for 14th October 2020, the rhetoric used by Black Lives Matter and other pro-Black anti-racist activists may make this deprivation worse. The article states that working class Whites believe that they have little chance of improving their conditions due to their communities lacking status and this is potentially going to be made worse through talk of ‘White privilege’. The academics interviewed in the article also state that their communities are still suffering from the decline of Britain’s manufacturing industry.

The article’s by Will Hazell, and is titled ‘White working-class pupils think academic race is unwinnable’. It runs

White working-class pupils are falling behind at school because their communities suffer from a “status deficit” and talk of “white privilege” could make things worse MPs have heard.

An inquiry by the Commons Education Select Committee is examining why white children from disadvantaged backgrounds perform worse than any other group in education.

Only 17 per cent of white pupils on free school meals get a strong pass in English and maths GCSEs – the lowest of any ethnic group.

Meanwhile just 13 per cent of white British boys on free school meals progress to higher education, compared with 42 per cent from a Pakistani heritage, 51 per cent of black African boys and 66 per cent of Chinese ethnicity.

Matthew Goodwin, a professor of politics at Kent University, told MPs that there were “cultural explanations” with white working-class families suffering a “status deficit”.

White working class families were left to feel “as though they’re not being given as much recognition and esteem as others”, Professor Goodwin said.

He said the idea of “white privilege”, along with references to “toxic masculinity”, had demoralised white working class families. He added: “If we are now going to start teaching them in school they not only have to overcome the economic and social barriers within their community, but they also need to start apologising for simply belonging to a wider group which also strips away their individual agency, then I think we’re just going to compound many of these problems.”

Lee Elliot Major, a professor of social mobility at Exeter University, said white working class communities were “still recovering from the demise of the manufacturing industry”, and a “narrow academic race” in schools which felt “unwinnable” for poor white families.

The problem could only be fixed by providing improved vocational education routes for young people as well as jobs in their local communities, he said.

I think the class background of some of the children of other ethnic groups may help to explain why these generally perform better at school, and get better jobs and opportunities. than working class Whites. Not all Blacks, Pakistanis and Chinese are working class. Many of them are businessmen or professionals, who may have emigrated to Britain as part of their jobs or came over here because of the greater opportunities offered when immigration was being encouraged or at least less restricted. These children therefore already enjoy social advantages and opportunities through their parents’ higher status and education than working class children.

Also, there has been enormous effort put into improving conditions for ethnic minorities. This obviously includes affirmative action programmes. About a decade ago the former head of the Council for Racial Equality, as ’twas then, was quoted in an article in the Heil as suggesting that their should be similar programmes for working class Whites. Nothing further was then said, and I think the gentleman involved left his position shortly afterwards due to a completely unrelated matter. If he’s the fellow I’m thinking of, he was accused of making up accusations for racist abuse or something similar against a policeman at a football match.

The ideas interesting and probably necessary, but it has major problems. Not least is the way it contradicts, or appears to contradict, much contemporary anti-racist and feminist discourse and policies. The contemporary concern for equality is centred around providing better opportunities and social and economic improvement and advancement for ethnic minorities and women. Left-wing, anti-racist and feminist criticism of traditional western society is that it’s dominated by White men. This is obviously true, but it needs to be remembered that it’s dominated by elite White men. But any programme aimed at specifically improving the conditions of Whites, and especially White boys, may appear reactionary because it’s directed to improving the conditions of a gender and ethnicity – but not the class – that some view as already having too much power.

And I do think also that there’s now a lack of glamour about the White working class compared to other ethnic groups. Blacks and Asians have the glamour of the exotic, and so they can be promoted by celebrating their cultures’ achievements, as Black History Month does. But the White working class is much harder to celebrate because of their ordinariness. And the fact that the socially deprived sections are likely to be sneered at as chavs or rednecks.

The concept of White privilege has been subject to extensive criticism by people on the right. As a generalisation about society as a whole, it’s obviously true that Whites generally perform better academically, and enjoy better jobs and opportunities than many, but not all, ethnic minorities. But it ignores the fact that many Whites don’t share this privilege, and may be as disadvantaged or more than some other deprived ethnicities. I think the reason for this is that the whole concept of White privilege was formulated by middle class radicals thinking specifically about the White middle class, and lumping all Whites in with it.

I think we’re probably going to hear much more about the problems of the White working class as time goes on. The right-wing internet host and YouTube Alex Belfield has already put up a video about the plight of White working class boys. Another right-wing outfit – I think it’s called the New Culture Forum or something like that – has also put up a long video about ‘The Demonisation of the White Working Class’. I think the intention here is to exploit working class White discontent as a way of attacking the anti-racist affirmative action programmes.

Because the Tories certainly don’t care about the working class, whatever it’s colour. The Tories smashed the coal industry partly as a way of destroying the trade unions. It was the miner’s union, remember, that defeated Ted Heath. Thatcher had no interest in manufacturing, and her Labour successor, Tony Blair, blandly assumed that its role in the economy would be taken over by the financial sector. Since David Cameron’s election victory, the Tories have insisted on austerity, holding down wages, promoting zero hours contracts and attacking workers’ rights, as well as cutting the welfare benefits working people need to keep body and soul together. It’s all in the name of creating an impoverished, cowed, demoralised workforce that will take any job, no matter how poorly paid or insecure. Most of the people claiming benefits and using food banks are now people actually in work. But instead of doing anything for them, the Tories simply drum up jealousy against those even more disadvantaged. You think of the rants the Tories screamed about how they were going to cut benefits to the unemployed in order to make work pay. The unemployed were scroungers, malingerers and layabouts, who shouldn’t earn more than working people. But in all too many cases, the benefits system does not provide enough for the people who need it to live on. And how seriously the Tories take their slogan of making work pay is shown by the fact that they’ve done nothing to raise wages. ‘Cause it’s all the working class’ fault they’re poor.

In contrast to the Tories’ posturing, the people who are serious about protecting and advancing the White working class are the Labour left. The very people the anti-immigrant, racist Brexiteer right despise as traitors. But left-wing Labour activists like Richard Burgon have made it very clear that they will work for improving the conditions of White working class communities as part of their commitment to bettering conditions for all of Britain’s working people, Black, brown, White or whatever.

And you can believe them.

The Tories, however, will do nothing but patronise the White working class, drumming up racial resentments and jealousies while pushing through policies that will make them, and the rest of the working class, even poorer and more miserable.

Was Mussolini’s 1931 Policy on the Banking Crash Better than Britain’s 2008 Bail-Out?

October 3, 2020

Here’s another interesting question posed by the changing policies of the Italian Fascist state towards industry and the financial sector. Fascism celebrated and defended private industry as the essential basis of the Italian economy and society. When Mussolini first took power in the early 1920s, he declared that Fascism stood for ‘Manchester School’ capitalism – privatisation, cuts to public services and expenditure and the lowering of wages and welfare benefits. But this changed with the development of the Fascist state through the establishment of the corporations – industrial organisations combining the employers’ organisations and the trade unions, which were supposed to take over the management of industry – autarky, which aimed to make Italy self-sufficient and the movement to a centrally planned economy.

This was partly achieved in the early 1930s when Mussolini set up two state institutions to buy out the Italian banks following the Wall Street crash of 1929 and the ensuing depression. These not only bought out the banks, but also the industries these banks owned and controlled, so that the Italian state ended up owning just under a fifth of the Italian economy.

This is described in a passage in the article ‘Industry’ in Philip V. Cannistraro’s Historical Dictionary of Fascist Italy (Westport, Connecticut: Greenwood Press 1982). This runs

Two public agencies were created to save banks and crucially affected industries: the Istituto Mobiliare Italiano (IMI) on November 13, 1931, which was to control credit; and the Istituto per la Ricostruzione Industriale (IRI) on January 23, 1933. IRI was by far the more radical solution, for it purchased all the shares of stock in industrial, agricultural, and real estate companies previously held by banks. (The banking law of 1936 prohibited banks from extending long-term credit to industrial concerns). Although the industrialists fully expected a return to “normalcy” and to private enterprise after the crisis had passed, Mussolini had successfully created an instrument for the permanent intervention of government in the economy. By 1939 IRI controlled a series of firms representing 44.15 percent of the capital of Italian stock values and 17.80 percent of the total capital of the country – hence, the Fascist government controlled a proportionately larger section of national industry than any other government in Europe except the Soviet Union. (p. 278).

This allowed the government to interfere and restructure the Italian economy leading to the expansion of the manufacturing economy and a reduction in imports. On the other hand, poor government planning and an inefficient bureaucracy meant that Italian domestic manufactures were frequently inferior and the country had a lower growth rate than many other western European countries.

But this contrasts very strongly with policy of Britain and America to the financial sector after the 2008. The banks were bailed out with public money, but were not nationalised and the government has continued with its ‘light touch’ approach to regulation. Meaning that the banks have been free to carry on pretty much as before. Public spending, especially on welfare, has been drastically cut. Despite the Tories claiming that this would boost the economy and they’d pay of the debt within a couple of years or so, this has very definitely not happened. In fact, the debt has massively increased.

This has added to the long term problems of Britain’s manufacturing industry. Left-wing economists have pointed out that Britain’s domestic industries suffer from a lack of capital because the financial sector is geared towards overseas investment. A situation that has no doubt got worse due to globalisation and the personal investment of many Tory and New Labour MPs in foreign industry and their savings in offshore tax havens. British industry has also suffered from the ignorance and neglect of successive prime ministers from Maggie Thatcher onwards. Thatcher couldn’t understand that her policy of keeping the Pound strong would damage British exports, and in any case did not want to rescue failing British industries. They were either to be allowed to go under, or else sold to foreign companies and governments. Tony Blair went further, and believed that manufacturing industry’s place in the British economy could be successfully taken over by the financial sector and the service industries.

But this has also been a failure. Ha-Joon Chang in his 23 Things They Don’t Tell You About Capitalism has pointed out that manufacturing industry is still very much of vital importance. It’s just that it has grown at a slower rate than the other sectors.

Fascist Italy was a totalitarian dictatorship where Mussolini ruled by fear and violence. There was no freedom of speech or conscience in a system that aimed at the total subordination of the individual, economy and society. Mussolini collaborated with Hitler in the persecution of the Jews, although mercifully this wasn’t quite so extreme so that 80 per cent of Italian Jews survived. The regime was aggressively militaristic aiming at the restoration of a new, Roman-style empire in the Mediterranean. Albania, Greece and Ethiopia were invaded along with Tripoli in Libya and Fascist forces were responsible for horrific atrocities as well as the passage of race laws forbidding racial intermixture with Black Africans.

It was a grotesque, murderous regime which was properly brought to an end by the Allied victory of the Second World War. It must never be revived and Fascism must be fought every where. But it does appear that Mussolini’s policy towards the banks and industry was better than that pursued by our supposedly liberal democracies. But the governments of our own time are also becoming increasingly intolerant and authoritarian. The danger of our country becoming similar repressive dictatorship under Boris and the Tories is very real.

We desperately need the return to power of a genuinely socialist Labour government, committed to investment in the welfare state and public services with a nationalised NHS, a mixed economy and positive commitment to democracy and freedom of speech rather than the illusion maintained by the mainstream media and Tory press.

And that will mean overturning over three decades of Thatcherite orthodoxy on the banks and financial sector, just as Mussolini changed his policies towards them with the aim of restoring and expanding Italian industry.

It’s the Tories, Not Channel Migrants, Who Are Killing People

August 10, 2020

Hey-ho, the Torie are back to their old tricks again, drumming up hatred against immigrants and asylum-seekers. This time its the various illegal immigrants trying to make their way across thee Channel in whatever flimsy boats will take them. Mike and Zelo Street have both published excellent pieces demolishing this faux outrage. The Street reported the figures for the number of people immigrating to the UK last year and the number of asylum claims according to the Beeb. These were 677,000 and 49,000 respectively. Compared to this number, the 4,000 or so illegals who have arrived here is a vanishingly trivial number. Nevertheless, this is being described in terms of an invasion. Hatey Katie Hopkins wants gunboats to intercept them. However, the Lords of the Admiralty can’t send the navy against children and pregnant women. The odious, smirking Priti Patel has therefore chosen instead to appoint Dan O’Mahoney of the National Crime Agency to the position of chief in charge of intercepting these boats. The Royal Navy said that there wasn’t much more they could do, and Colin Yeo, a barrister specialising in immigration, stated that the navy couldn’t enter French waters to return migrants either. Furthermore, the hard Brexit sought by the government has meant that the current returns agreement with the EU ends on 31st December 2021, and so far there’s no replacement agreement for it. Which means that the government has actually made it harder to return such migrants than it was under the EU.

See: https://zelo-street.blogspot.com/2020/08/migrants-brexit-and-taking-back-control.html

Mike has also pointed out that way back in 2014, Theresa May, then home secretary, cut the Border Force, which is why the Tories have had to appeal to the navy. Mike also guesses that many of the immigrants coming here are fleeing the wars in their homelands, we have helped to start. He also says that ‘The issue is why these people want to come to the UK at all. If we really wanted to stop them, we need to help end their reasons for leaving their own homelands.’ It’s a good point, but I think some of their reasons for leaving are beyond our control. The impoverishment of the Developing World is a major cause, and some of this is due neoliberalism and the various tariff restrictions on manufactured goods which prevent developing nations in Africa, for example, from diversifying their economies and developing manufacturing industries. But there are also major problems with corruption, ethnic and religious conflict, political oppression and maladministration, for which the various governments of the developing world are responsible and which, I believe, would be extremely difficult for western governments to do anything about. But this doesn’t mean that we shouldn’t try.

But Mike has also argued very strongly that the Tories are also whipping up this hatred as a cynical distraction from their own failings.  He cites this tweet from James O’Brien:

The calculation is that, with the support of most of the media, the British public can be made angrier about innocent foreigners than guilty politicians responsible for thousands of British deaths.
And all while claiming to care about ‘Christian’ values.
It will work too.

And this from Nick Abbott

God we’re easily distracted. They don’t even have to really try any more. The excess deaths, the hundreds of millions for kit that doesn’t work, ripping up regulations to suit donors, the kleptocracy and nepotism. But look…a dinghy!

The Tories crippled their own border controls. Don’t let them use their own stupidity to boost racism

He’s right. It isn’t migrants from across the Channel, who have squandered taxpayers’ money giving contracts to firms owned by their donors for PPE that doesn’t work. It isn’t poor souls in leaky dinghies that are pushing for schools to reopen, so that parents will be forced to return to work to make money for the Tories despite the real, present danger of Covid-19.

Illegal immigrants aren’t responsible for the massive poverty caused by decades of stagnant wages and pay cuts. They aren’t responsible for real starvation and malnutrition returning to Britain because the welfare state doesn’t work thanks to benefit sanctions and the fitness for work tests, both of which are based on fraudulent research and an inbuilt presumption against the claimant in order to stop people from claiming. Illegal immigrants never made the decision to make the whole process of signing on as degrading and humiliating as possible in order to deter people from doing so – that was Maggie Thatcher, John Major, Tony Blair and so on. And it very definitely isn’t Black and Brown people coming off the beach from Dover, who have been selling off the NHS for the past forty years.

It hasn’t been powerless migrants, who have sacked thousands of low-paid workers during the lockdown while claiming the government bailout money to boost their chief executives’ pay and share dividends. And if there is competition between migrants and native Brits – by which I also mean Black and Asian Brits, who’ve been here for generations as well as Whites – for housing, jobs and other opportunities, it’s because the Tories have deliberately cut all those to make it difficult to get them.

There have been over a hundred thousands deaths due to austerity and cuts to benefits. Millions of people now have a choice between paying their rent and heating bills or feeding themselves or their children. Who are themselves going hungry to school. The number of people below the poverty line is now in millions.

And this is  very definitely the fault of the Tories, and Blair’s and Browns New Labour. It ain’t the fault of a vanishingly tiny number of illegals risking life and limb to get here.

Don’t be distracted. Don’t let them lie to you. Ignore the calls to hate them from the Tory press, Katie Hopkins and Nigel Farage. The people, who really are killing us and driving us into poverty are the Tories.

Fighting Racism Means Restoring the Welfare State

July 17, 2020

One of the most important things I learned when I was studying Geography for ‘A’ level nearly forty years ago was that poverty leads to political extremism. Part of the course was on the Third World, although I now gather that term, coined by Gandhi, is now out of favour. It was fascinating. We were taught that the countries of the Developing World varied in their levels of economic development and that many of their problems stemmed from the neocolonial system put in place when the European imperial power granted their independence. In return for their political freedom, the former colonies were required to confine themselves to primary industry – mining and agriculture. They were forced into a relationship with their former masters in which they were to trade their agricultural and mineral products for finished European goods. Punitive tariffs were imposed on industrial goods produced by these nations. They are therefore prevented from developing their own manufacturing industries and diversifying their economies. And as the primary resources they export to the global north are produced by a large number of countries, competition works against them. If one country tries to raise the price of copra, for example, the developed countries can simply find another nation willing to supply it at a lower cost. And so the Developing World is kept poor. And that poverty will drive people to political extremism – Communism and Fascism.

Poverty, Economic and Political Crisis and the Rise of Fascism

The same forces were at work behind the rise of Fascism in Europe. Part of the impetus behind the formation of Italian Fascism and German Nazism was frustration at the international settlement at the end of the First World War. Italy was angered by the great powers’ refusal to grant it the territories it claimed, like the Yugoslavian island of Fiume. Germany was humiliated by the Treaty of Versailles and the imposition of crippling reparations. The new democratic system in both countries was unstable. The Nazis made their first electoral breakthrough as the champions of the small farmers of Schleswig-Holstein in the 1920s. But arguable what gave them the greatest spur to power was the 1929 Wall Street crash and the massive global recession this caused. Combined with the breakdown of the ruling Weimar coalition between the Catholic Centre Party, the German  Social Democrats – the rough equivalent of the British Labour Party and the two Liberal parties – the crisis boosted Nazism as a mass movement and allowed President Hindenberg, then ruling by decree, to consider giving them a place in power in order to break the political deadlock. He did, and the result was the twelve years of horror of the Third Reich. Faced with rising unemployment, national humiliation and social and political chaos, millions of people were attracted by the Nazis denunciation of international capitalism and Marxist Communism and Socialism, which they blamed on the Jews.

The Collapse of Louisiana Oil Industry and the Witchcraft Scare

Sociologists and folklorists critically examining the witchcraft scare of the 1990s also noticed the role poverty and wealth inequalities have in creating social panics and the persecution of outsider groups. From the ’70s onwards a myth had developed that there existed in society multigenerational Satanic groups practising child abuse and infant sacrifice. A critical investigation by the British government over here – the Fontaine Report – and the FBI over the Pond found absolutely no evidence that these sects ever existed. But large numbers of people uncritically believed in them. As this belief spread, innocent people were accused of membership of such cults and their mythical atrocities. As the American folklorist Jan Harold Brunvand pointed out, this witch hunt emerged and spread at a time when the gap between rich and poor in America was increasing. One of the places hit by the scare was Louisiana. Louisiana had a strong oil industry, and the state levied a tax on its profits to subsidize local housing. This was fine until the industry went into recession. Suddenly ordinary, hard-working Louisianans found they could no longer afford their mortgages. There were cases where the banks were simply posted the keys to properties as their former owners fled elsewhere. With poverty and insecurity rising, people started looking round for a scapegoat. And they found it in these mythical Satanic conspiracies and in real, New Age neo-Pagan religions, which they identified with them.

1990s Prosperity and Positive Challenges to Affirmative Action

It’s a truism that poverty creates social and racial conflict, as different groups fight over scarce resources. There was a period in the 1990s when it looked like racism was well on the wane in America, Britain and Europe. Blacks were still at the bottom of American society, but some Blacks were doing well, and challenging stereotypes and the need for affirmative action. The Financial Times approvingly reported a self-portrait by a Black American artist, in which he pointedly exaggerated his ‘negrotic’ features in order to make the point that these didn’t define him. There were cases of Black college professors turning down promotion to senior, prestigious positions at their seats of learning because they didn’t want people to think that they hadn’t earned them through their own merits. They hated the idea that they were just being given these places because of their colour. Whites further down the social scale were also challenging the need for affirmative action in a different way, which didn’t involve racist abuse and violence. The FT reported that four American firemen had changed their names to Hispanic monickers, as this was the only way they believed they could get promotion under a system designed to give preference to ethnic minorities. Back in Blighty, some TV critics naively applauded the lack of racism in a series of Celebrity Big Brother, before that all shattered as Jade Goody and one of her friends racially bullied Indian supermodel and film star Shilpa Shetty. Sociological studies revealed that people’s accent was more important than their race in terms of social identity and acceptance. And then when Barack Obama won the American election in 2008, the chattering classes around the world hailed this as the inauguration of a new, post-racial America. But wiser voices reminded the world that the terrible racial inequalities remained.

Austerity, Poverty, and the Destruction of the Welfare State Behind Growth in Racism

All this has been shattered with the imposition of austerity following the banking crash, and the increasing impoverishment of working people across the world. The crash has allowed Conservative government to cut spending on welfare programmes, force through even more privatisations and cuts, and freeze and slash workers’ pay. At the same time, the top 1 per cent has become even more incredibly wealth through massively increased profits and tax cuts.

One of the many great speakers at last Saturday’s Arise Festival on Zoom – I think it was Richard Burgon, but I’m not sure – remarked that talking to people in the north, he found that they weren’t racist. They didn’t hate Blacks and ethnic minorities. But they were worried about access to jobs, opportunities and housing. He made the point that we need to restore these, to fight for all working people and not allow the Tories to divide us. He’s right. If you read rags like the Scum, the Heil and the Depress, the line they take is of virtuous Whites being deprived of employment and housing by undeserving immigrants. Who also sponge off the state on benefits, like the White unemployed the Tories also despise. But they’re obviously not going to tell the world that they are responsible for the shortage of jobs, the insecure conditions for those, who are lucky to have them, and that the shortage of affordable housing is due to them selling off the council houses and defining ‘affordable’ in such a way that such homes are still out of the pocket of many ordinary people. Even if enough of them are built by companies eager to serve the wealthy.

Austerity and Black Lives Matter

It’s austerity that has given urgency to the Black Lives Matter movement. Blacks and some other ethnic minorities have been acutely affected by austerity, as they were already at the bottom of society. If prosperity had continued, if the banking crash had not happened and austerity not imposed, I don’t believe that BLM would have received the wave of global support it has. Blacks would still have occupied the lowest rung of the social hierarchy, but conditions would not have been so bad that they have become a crisis.

White Trump Voters Whites Disadvantaged by Affirmative Action

At the same time, some disadvantaged Whites would not have given their votes to Donald Trump. While Trump is a grotty racist himself, who has surrounded himself with White supremacists and members of the Alt Right, some sociologists have counselled against accusing all of his supporters as such. Years ago Democracy Now’s anchorwoman, Amy Goodman, interviewed a female academic who had done a sociological survey of Conservative White Trump supporters. She found that they weren’t racist. But they did feel that they were being denied the jobs and opportunities they deserved through unfair preference given to other ethnic groups. She likened their mentality to people in a queue for something. Waiting at their place in line, they were annoyed by others pushing in ahead of them. And this was made worse when the queue jumpers responded to their complaints by accusing them of racism. I think the sociologist herself was politically liberal, but she stated that the Conservatives Whites she’d studied should not automatically be called racist and it was dangerous to do so.

Conclusion

It’s clear from all this that if we really want to tackle racism, we need to restore jobs, proper wages, trade union power, real affordable and council housing, and a proper welfare state. These are desperately needed by all members of the working class. I’ve no doubt that they’re most acutely needed by Blacks, but this certainly isn’t confined to them. Restoring prosperity would bring all the different racial groups that make up the working class together, and it would stop the resentment that leads to racial conflict by one group feeling disadvantaged for the benefit of the others.

 

Tony Benn on Overseas Investment at the Expense of Britain’s Workers

May 17, 2020

A few days ago I posted up a piece about Shaw’s critique of British imperialism. As I said in the earlier piece, Shaw wasn’t against imperialism in itself, if it had been genuinely for the benefit of the conquered peoples. But it wasn’t. It was really to exploit them, as a cheap workforce unprotected by the Factory Acts in Britain which protected domestic workers. The result was the exploitation of non-Whites abroad, while British manufacturers were ruined by the import of the cheap goods they produced, and British workers made unemployed.

This situation still remains, thanks to globalisation and the rise of the multinationals even though the British empire is no more. Tony Benn was a staunch opponent of the multinationals and the same abuses of overseas investment. In a 1985 speech in parliament on unemployment, Benn said

We would have to stop the export of capital. Since the government came to power, for every family of four, £4,300 has left Britain. The Chancellor of the Exchequer says that we must tighten our belts because that is the way to solve the problem. But if a worker tightens his belt, the employer sends the money to South Africa, where the wages are lower still, because Botha’s police will not allow the unions to organise. The export of capital could not continue if we wished to solve the unemployment problem.

Ruth Winstone, ed., The Best of Benn: Speeches, Diaries, Letter and Other Writings (London: Hutchinson 2014) p. 166.

That’s still very pertinent today, when Tory donor James Dyson has moved his plants to the Far East and Jacob Rees-Mogg has investments all over the world, including in a condom factory in Indonesia.

Tony Benn – the greatest Prime Minister this country never had.

Shaw’s Classic Defence of Socialism for Women Part Four

May 16, 2020

George Bernard Shaw, The Intelligent Woman’s Guide to Socialism, Capitalism, Sovietism and Fascism, foreword by Polly Toynbee (London: Alma Classics 2012).

Conclusion

While this a great book I immensely enjoyed, it also very much the product of its time. Shaw is unrealistic and more than a little sectarian himself in his advocacy of the equalization of incomes. He regards it as the real, fundamental goal of socialism and that unless they too believe in it, others advocating nationalisation aren’t real socialists. But the Soviets and various other socialist groups have tried the equalisation of incomes, and it didn’t work. But nevertheless, even if wages shouldn’t be exactly the same, the differences in wealth should very definitely be far less than they are now.

Similarly, I don’t entirely agree with his views on the unions. Now other socialists also struggled with the problems they posed for working class power. Trade unions by themselves aren’t socialist organisations. Their role is to fight for better wages and conditions for the workers, not to replace capitalism, and Lenin himself pondered how workers could go from ‘trade union consciousness’ to socialism. In the 1980s it was found that trade unionists often voted Tory, because of the improved quality of life they enjoyed. But the unions are nevertheless vital working class organisations and are rightly at the heart of the Labour party, and have provided countless working class leaders and politicians.

Shaw was right about the coal mines, and his description of the results of the great differences in viability between them and the comparative poverty or wealth of the mining companies was one of the reasons they were nationalised by Labour under Clement Attlee.  He’s also right about nationalising the banks. They don’t provide proper loans for the small businessman, and their financial shenanigans have resulted, as Shaw noted in his own day, in colossal crashes like that of 2008. He is also right about the rich sending their money abroad rather than contributing to the British economy. In his time it was due to imperialism, and there is still a hangover from this in that the London financial sector is still geared to overseas rather than domestic investment. It’s why Neil Kinnock advocated the establishment of a British investment bank in 1987. Now, in the early 21st century, they’re also saving their money in offshore tax havens, and British manufacturers have been undercut and ruined through free trade carried out in the name of globalisation.

His arguments about not nationalising industries before everything has been properly prepared, and the failures of general strikes and revolutions are good and commonsense. So is his recommendation that capitalism can drive innovation. On the other hand, it frequently doesn’t and expects the state to bail it out or support it before it does. I also agreed with Shaw when he said that companies asking for government subsidies shouldn’t get them unless the gave the government a part share in them. That would solve a lot of problems, especially with the outsourcing companies. They should be either nationalised or abolished.

I can’t recommend the book without qualifications because of his anti-religious views. Shaw also shows himself something of a crank when it comes to vaccination. As well as being a vegetarian and anti-vivisectionist, which aren’t now anywhere near as remarkable as they once were, he’s against vaccination. There are parts of the book which are just anti-vaxxer rants, where he attacks the medical profession as some kind of pseudo-scientific priesthood with sneers at the religion of Jenner. He clearly believes that vaccination is the cause of disease, instead of its prevention. I don’t know if some of the primitive vaccinations used in his time caused disease and death, but it is clear that their absence now certainly can. Children and adults should be vaccinated because the dangers of disease are far, far worse.

Shaw also has an unsentimental view of the poor. He doesn’t idealise them, as poor, ill-used people can be terrible themselves, which is why poverty itself needs to be eradicated. In his peroration he says he looks forward to the poor being exterminated along with the rich, although he has a little more sympathy for them. He then denies he is a misanthrope, and goes on to explain how he likes people, and really wants to see people growing up in a new, better, classless socialist future.

While I have strong reservations about the book, it is still well-worth reading, not least because of Shaw’s witty turns of phrase and ability to lampoon of capitalism’s flagrant absurdities. While I strongly reject his anti-religious views, his socialist ideas, with a few qualifications, still hold force. I wish there were more classic books on socialism like this in print, and widely available so that everyone can read them.

Because today’s capitalism is very much like the predatory capitalism of Shaw’s age, and becoming more so all the time.

 

 

 

Boris – Trump’s Gauleiter of Britain

January 4, 2020

A gauleiter was the Nazi officer in charge of a gau, an administrative district of the Third Reich. After the Italian Fascists’ military incompetence was revealed, and the Nazis had to intervene on their behalf in countries like Greece, they started to refer to Mussolini sneeringly as the ‘gauleiter of Italy.’ For all the Duce’s pretensions to military power and seniority in the relationship between Fascist Italy and Nazi Germany, Hitler stopped telling him his war plans after the invasion of Belgium. This was for the simple reason that after he found out about the planned invasion, the Duce told the Belgians. When Hitler asked him why he had betrayed his plans, Musso simply responded that he wanted them to put up a better fight.

Something similar is, I feel, happening in the relationship between Trump’s USA and Bozo, our clown prime minister. Oh, the Americans have been the dominant partner in the Special Relationship ever since the attempt to retake Suez from Nasser in the ’50s collapsed because the US wouldn’t back it. But a few days ago Trump showed how much he trusted or felt he needed to rely on support from his European allies, including Bozo. He had the Iranian General Qasem Soleimani, whacked out by drone without telling us or anyone else. American soldiers are, however, being rushed to Iraq. At the moment Britain and the other Europeans are urging a de-escalation of the situation, which the Iranians have, not unreasonably, described as an act of war. But you can bet that if conflict does break out – and may God help us all if it does – Trump will almost certainly demand the rest of Europe to get in line, and strong arm Britain to do so. Not that I don’t believe Bozo would be only too willing.

Critics of Bozo’s wretched Brexit deal with Trump have pointed out that it could potentially give the Americans ownership of large sections of the British economy and industry. Cheap American imports threaten British manufacturing, specifically the motor industry, and agriculture. But that’s the deal Boris wants.

It could wreck our economy, and make us economically dependent on the US. Just as Trump would demand our military support for his unilateral military adventures.

Just as Hitler eventually reduced Mussolini to puppet dictator of an Italy heavily reliant and dominated by Nazi Germany.

 

The Labour, Pro-Working Class Arguments for Brexit

December 22, 2019

The decisive factor which swung 14 million people to vote Tory in the general election two weeks was Brexit. Labour’s programme of reforms was popular, despite the predictable Tory attacks on it as impractical, costly, too radical, Marxist and so on. 60 to 70 per cent of the public in polls supported the manifesto, and the party received a slight boost in popularity in the polls after its public. The areas in Labour’s heartlands in the midlands and north that turned Tory were those which voted ‘Leave’. Craig Gent in his article for Novara Media on the lessons Labour must learn from this defeat lamented this. By backing Remain, Labour had ceded Brexit to the Conservatives, allowing them to shape the terms of the debate and the assumptions underlying it. But Gent also argued that it could easily have gone the other way.

Indeed it could. Labour’s policy, before the right-wing put pressure on Corbyn to back a second referendum, was that Labour would respect the Leave vote, and try for a deal with the EU that would serve Britain the best. Only if that failed would Labour consider a general election or second referendum. This is eminently sensible. The referendum was purely on whether Britain would leave the European Union. It was not on the terms under which Britain would leave. Despite Johnson’s promise to ‘get Brexit done’, he will have no more success than his predecessor, Tweezer. The EU’s chief negotiator, Michel Barnier, has stated that the negotiations are going to take far long than the eleven months Johnson claimed. The people who voted for him are going to be sorely disappointed.

The right-wing campaign for leaving the EU heavily exploited racism and xenophobia. Not only had Britain lost her sovereignty to Brussels, but it was because of the EU that Britain was being flooded with immigrants taking jobs and placing a burden on the social and economic infrastructure. In fact, the Black and Asian immigrants entering Britain were permitted, as Mike showed on his blog, through UN agreements covering asylum seekers. Moreover immigrants and foreign workers were a net benefit to Britain. They contributed more in taxes and took less in benefits. But with this was drowned out, along with other, vital Remain arguments in the Tory rhetoric of hate.

But there was always a part of the Labour movement that also distrusted the European Union for democratic, socialist reasons. The late Tony Benn devoted an entire chapter to it in his 1979 book, Arguments for Socialism. One of his primary objections to it, as he outlined in a 1963 article for Encounter magazine, was

that the Treaty of Rome which entrenches laissez-faire as its philosophy and chooses its bureaucracy as its administrative method will stultify effective national economic planning without creating the necessary supranational planning mechanisms for growth and social justice.

Like right-wing Eurosceptics, Benn also objected to Britain joining the EU because of loss of national sovereignty and democracy through inclusion into a European superstate. He was also worried about the threat from Brussels to British industry. The European Union hated Britain’s nationalised industries, and Benn said that he was told by Brussels bureaucrats that investment, mergers and prices in the former British steel industry would have to be controlled by them. Every issue of state aid to British manufacturing industry would have to be subject to the European commission. He was very much afraid that British manufacturing would be unable to compete against the better financed and equipped European firms, and so close. And he also argued that membership in the European Union would create higher unemployment through the EU’s economic policy, which was exactly the same as that tried by Conservative premier Ted Heath’s first government. He believed that EU membership would leave British workers with a choice of either being unemployed at home, or moving to Europe to seek work. Only the directors and shareholders in European companies would profit. He then gives the statistics showing how much Britain was paying to the EU for policies like the Common Agricultural Policy, that penalised Britain’s highly efficient farming system in favour of that of the continent, and the disastrous effect EU membership had had on British industry and jobs. The devastation caused to some sectors of British industry and agriculture also formed part of Conservative attacks on the EU. The former Mail, now Times journo, Quentin Letts, bitterly criticises the EU in his book, Bog Standard Britain, for the way the common fisheries policy drastically cut back our fishing fleet to a fraction of its former size.

It also seems that Ted Heath also used some very underhand, dirty tricks to rig the initial referendum to give the result he wanted: that the British people agreed with him and wanted to join Europe. This was the subject of an article in the parapolitical/ conspiracy magazine, Lobster some years ago.

I’m a Remainer. I was as shocked by the Tories’ victory as everyone else on the Left. I expected that they would win because of the vast propaganda and media resources they had poured in to attacking Labour and Corbyn personally. But I was astonished by how large the victory was. I believed that the continuing failure to secure a deal with Europe would have made Brexit less popular, not more. The result of the original referendum was so narrow that I believed a second would reverse the decision. How wrong I was.

Some of the Eurosceptic arguments against Europe are overstated or simply wrong. The EU was a threat to our nationalised industries, but it seemed nothing prevented the French, Germans and Dutch from retaining theirs and buying up ours, as the Dutch firm, Abellio, was awarded the contract for some of our rail services. Britain’s entry into the EU did not result in us losing our sovereignty. We retained it, and all law passed in Brussels had to become British law as well. And I believe very strongly that leaving Europe, especially under a no-deal Brexit, will badly damage our trade and economy.

But understanding Brexit and the arguments against EU membership from the Left from people like Tony Benn, may also provide a way of winning back some at least of the support Labour lost at the election. Labour can show that it understands the fear some people in those communities have about the loss of sovereignty, and the effect EU membership has had on trade, manufacturing and employment. But we can also point out that the Tories are using the same set of economic principles as the EU, and that this won’t change so long as Boris is Prime Minister. And any trade agreement he makes with the Orange Generalissimo will be worse than staying in the EU. It won’t secure British jobs or support British industry, manufacturing or otherwise. Indeed, it will cause further damage by placing them at a disadvantage against the Americans.

A proper Brexit, that respected British workers and created a fairer, better society, could only be brought in by Labour. But the Thursday before last, 14 million people were duped into rejecting that. But Labour is learning its lesson, and people are getting ready to fight back.

Labour can and will win again, on this and other issues. Brexit may have got Johnson in, but it may also be the issue that flings him out. 

Good News! Daily Mail Panicking about Drop in Tory Support

December 11, 2019

Hooray! Great news from the front page headline of the Heil. Britain’s most infamous Mosley-supporting paper is desperately worried about the sudden decline of Tory popularity in the polls. The rag’s leading headline today urges its readers not to ‘Sleepwalk into Catastrophe’. The Tory lead apparently has dropped so low, that’s urging them to go and vote to stop ‘the biggest crisis facing this country since the War’.

Well, I’m glad some people are seeing sense and turning away from the Tories. Hopefully Mike is right on his blog, that Boris’ cavalier dismissal of the picture of the little boy forced to lie on blankets in the corridor at Leeds hospital has turned the tide against the Nasty Party, in the same way that Gordon Brown’s contemptuous sneer of a female voter in Scotland as ‘some bigot’ lost him the 2010 election.

As for the election of a Labour government being the greatest crisis since the War, all Jeremy Corbyn’s doing is actually restoring the old social democratic consensus. You know, nationalised industries, a welfare state, the NHS, strong trade unions and employment legislation that protected employees. You know, the policies that the public actually voted for after the end of the War when Labour won a landslide election under Clement Attlee.

But Corbyn and his government are threatening to undo forty years of triumphalist, predatory and disastrous Thatcherism. The Thatcherism that has destroyed our manufacturing industries, impoverished working people, the unemployed and the disabled. Policies that are killing the NHS, and have killed 130,000 people through austerity. But that’s not a catastrophe, because the rich are profiting massively, even though living standards are being pushed down for the rest of us.

But while it’s great to see the Heil and Tories panicking, there is no cause for complacency. We aren’t assured of victory, and the Tories are trying to muster their troops to win the election. We can’t afford to let them.

Please everyone, get out and vote. And vote to get them out!

Lobster on the Economic Damage Caused by the Financial Sector

November 22, 2019

Lobster over the years has criticised the dominance of the financial sector over the British economy, and attacked the way this has actively harmed other sectors, particularly manufacturing industry. Thatcher, Major and then Tony Blair favoured banking and financial services over the industries, partly from economic illiteracy and partly from the conviction that Britain’s manufacturing sector was doomed. Thatcher believed very much in a strong pound and didn’t think it would harm the manufacturing industries. One of the few businessmen from that sector in Thatcher’s government tried to tell her otherwise, and show her that it would damage our exports by making them too expensive over our competitors. But Thatcher wouldn’t hear of it. She was convinced that it wouldn’t have any effect on manufacturing because the Germans had a strong manufacturing base, and they had a strong Deutschmark. The businessman tried to explain to her that the Mark was strong because they had a strong manufacturing base, not the other way around. But it was too much for the Leaderene’s brain and she refused to listen.

Thatcher also made it very clear that she was not going to help failing industries. What help there was, was supposed to come from the privatisation of state utilities and the operation of market forces. This was supposed to open up new forms of private investment. If they didn’t, then that company or industry was uncompetitive and doomed to fail. Meanwhile, the thinking went that the financial sector would take over from the failing manufacturing industries as a new source of wealth and employment. Thus Blair, Brown and the late Mo Mowlam opened up the ‘prawn cocktail’ campaign to win over the City of London, promising light regulation. One of the chief executives at the Bank of England, imported from America, was Deanne Julius, who said that Britain should abandon its manufacturing industries and allow them to be replaced by America’s. Instead, Britain should concentrate on the service industries.

This is another load of neoliberal economic rubbish that has been conclusively proved wrong. The Oxford economics professor, Ha-Joon Chang, in his book 23 Things They Don’t Tell You About Capitalism shows that despite Thatcherite dogma, manufacturing is still crucially important for the British economy. It only looks weaker than the other sectors, because it has grown at a slower rate.

Now Robin Ramsay in the latest update to his ‘News from the Bridge’ column in Lobster 78 has published a piece actually describing the active harm the privileged position of the financial sector has done the British economy as a whole. It’s in a piece ‘The Future of Britain’s Crisis’, which begins with a few sharp observations about the impotence of the House of Commons Security and Intelligence Committee. This is supposed to supervise Britain’s intelligence services, but its lack of effective power is demonstrated by Johnson’s suppression of the report into Russian influence in UK politics. From leaks to CNN and others, it shows that rich Russians have purchased UK citizenship and poured money into Tory coffers. He states that this is just part of the price Britain has to pay for Britain being one of the leading centres of money laundering. He continues

The idea that there is a structural conflict between the interests of the manufacturing economy and that of the City has been around since the late 1970s in my experience, and probably much longer. The conflict was rarely articulated by public figures beyond the British left but in 1980, with Bank of England base rates lifted to 14% ‘to control inflation’, Sir Terence Beckett, director-general of the Confederation of British Industry (CBI), told its annual conference that they had to ‘to take the gloves off and have a bare-knuckle fight’ with the Thatcher government. But no such fight ensued, Beckett resigned and in the following decade while the City boomed, British manufacturing shrank by about 20%.

The focus these days is less on structural conflict than on what is known as ‘over-financialisation’: roughly, that the financial sector gets to be too big for the rest of the economy. Recently a trio of economists/econometricians (from the Sheffield Political Economy Research Institute at the University of Sheffield) have tried to quantify the cost of UK over-financialisation and have concluded:

‘Our calculations suggest that the total cost of lost growth potential for the UK caused by “too much finance” between 1995 and 2015 is in the region of £4,500 billion. This total figure amounts to roughly 2.5 years of the average GDP across the period.

The data suggests that the UK economy, may have performed much better in overall growth terms if: (a) its financial sector was smaller; (b) if finance was more focused on supporting other areas of the economy, rather than trying to act as a source of wealth generation (extraction) in its own right.

This evidence also provides support for the idea that the UK suffers from a form of “finance curse”: a development trajectory of financial overdependence involving a crowding out of other sectors and a skewing of social relations, geography and politics.’ [Emphases in the original.] 

On similar lines, Grace Blakeley writes in her On Borrowed Time: Finance and
the UK’s current account deficit, that

‘Rebalancing the UK’s international position requires moderating the significance of finance within the UK economy and bringing asset price volatility under control, while nurturing non-financial exporting sectors.’

Ramsay concludes the article by remarking that it would be a difficult job convincing the political establishment of this, never mind the electorate. The failure of people working within London to understand that the capital’s influence and share of the country’s wealth is harming the rest of the country has helped the rise of the Scots and Welsh Nationalists, along with less significant movements like the Yorkshire Party, the Campaign for the North and Mebyon Kernow.

See: https://www.lobster-magazine.co.uk/free/lobster78/lob78-view-from-the-bridge.pdf

£4,500 billion lost to the British economy between 1995 and 2015! 

And never mind the millions of jobs lost, the destruction of working class communities right across the country from Cornwall to Scotland and Northern Ireland, lost skills and damaged lives!

All that simply so that Thatcher’s, Blair’s, and now Boris and Rees-Mogg and their chums in the City of London could make a tidy profit.

This is proof that we need a Corbyn government that will do something for public services and manufacturing industry, rather than more of the self-serving Tory economic policies that benefits only the City.