Posts Tagged ‘Manufacturing Industry’

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.

JOE Video of Farage as Trump’s ‘Mini-Me’

November 20, 2019

This is another satirical video from those merry funsters at JOE. Unlike the others I’ve posted, it’s not musical. It simply pokes fun at Farage and his megalomaniac ambitions as a kind of mini-me of Trump. It seems to be based on footage of a Trump rally at which a small boy came on to the stage. Except that the child’s head has been replaced with Farage’s.

The video begins with Trump introducing Farage to the crowd as the man behind Brexit. Mini-Farage then walks on stage, to be picked up by Trump. The Orange Buffoon asks the lad what he’s called. Mini-Farage answers, ‘Well, people in Oxfordshire call me Farage’. Trump also asks him if he’d like to go, or stay with Trump. After thinking about it, Farage replies ‘Stay with Trump’.

The video comes from 2016 when Farage and UKIP were far stronger than they were. If memory serves me right, it was before Farage left to found the Brexit Party and UKIP was taken over by Batten, who introduced into it the far right internet personalities Carl ‘Sargon of Akkad’ Benjamin, Mark ‘Count Dankula’ Meechan and Paul Joseph Watson. Instead of boosting UKIP’s fortunes, their arrival has very effectively destroyed it, leading to the massive implosion after the local and European elections and the acrimonious recriminations that have broken out since.

Farage now appears to be pinning his hopes on becoming a political force with the Brexit party. But he’s now stood a very great number of his candidates down in Tory constituencies so as not to split the right-wing Brexit vote, the Tories are demanding the removal of the rest of his people, and the former candidates themselves are angry and considering legal action. And he himself is not standing for election, as he’s never personally won an election before. His view of himself and his party as becoming a significant power in British politics is thus probably more than a little exaggerated.

But at that time he was running around with Trump at Republican and American Conservative conferences and other gatherings. And he was very much boosting Trump and his policies as well as his own. I don’t doubt for a single minute that Farage would happily give Trump everything he wants from a Brexit Britain – our agriculture, manufacturing industry and a privatised NHS. Farage has said himself that ‘we may have to move to an insurance-based system’, which is precisely what American private healthcare companies, as well as British firms like Virgin Healthcare, Circle, BUPA and so on want to hear.

But Farage’s fortunes have definitely waned, and it’s Boris who’s now occupying No. 10. But he also wants to give Trump what he wants. And despite Tory splutterings that the NHS was ‘off the table’, they held six secret meetings with Trump’s negotiators about it. Boris Johnson sees it very much as something that is for sale. He just doesn’t want to tell the British public about it, just as Thatcher in her memoirs also lied, claiming that she didn’t want to sell off the NHS. It’s now Johnson who’s running around as Trump’s mini-me.

Don’t be tricked by either Farage, Johnson or Blue Lib Dem Swinson, who would also like to sell off the NHS. If you value the Health Service and wish to defend it, you really have no choice but to vote for Corbyn.

Brexit Bias on the Beeb: Points West Goes to Weston-Super-Mare

September 4, 2019

The Beeb, as has been pointed out by countless left-wing websites and academics, ad nauseam, has a very strong Tory bias. It’s shown in its determination to vilify the Labour party and Jeremy Corbyn at every chance it can get, while packing news shows like Question Time with Tory MPs, supporters and members of right-wing think tanks. And this right-wing bias seems to go right down to local news. Points West is the local news programme for the Bristol area, covering not just Bristol, but also Gloucestershire, Somerset and Wiltshire. Yesterday, as part of the coverage of the Brexit debates in parliament and the demonstrations both pro- and anti-, they decided to gauge local attitudes in our part of the West Country. This meant talking to three local MPs, Thangam Debonnaire in Bristol, the Tory MP for Tewkesbury and another Tory from the Forest of Dean. They wanted to talk to the latter because he was one of those who threw their hat into the ring when the party ousted Tweezer and started about deciding her successor. And it was very clear that he was a Brexiteer, who wanted the whole debate to be over and done with and everyone get behind BoJob. He couldn’t, however, say what benefits Brexit would bring his constituents in the Forest, and didn’t answer the question when David Garmston, the interviewer, asked him what he was going to tell them what they would be for his constituents. Instead he just waffled about how he was sure they wanted it over and done with as soon as possible, or were fully informed of the Brexit debate. Or something.

Then it was down to Weston-Super-Mare for a vox pop. The split, their presenter announced, between ‘Remain’ and ‘Leave’ voters was very narrow, 52% versus 48%. They were down in the north Somerset resort town because attitudes in Weston closely followed those nationally. But this wasn’t evident from the people they showed speaking. Points West put out two deck chairs, labelled ‘yes’ and ‘no’, and invited people to sit in them in answer to the questions ‘Do you want an election?’ and ‘Do you support Brexit’. I think they showed four people, of whom only one was Labour and a Remainer. The rest were Tories and very definitely Brexiteers. And what specimens of humanity they were! One was an elderly lady with a Midlands accent, who ranted about Remainers being ‘Remoaners’ and ‘snowflakes’, all the while making gestures suggesting that she thought they all ought to be thrown into the sea. She then went off giggling like an imbecile at what she thought was her own wit. She was followed by an elderly gent, who declared that he wanted a general election that would return the Tories with a massive majority. And then there was a young man from Salisbury, who was also behind Boris Johnson and Brexit.

These loudmouths reminded me of the Bill Hicks joke about evolution having passed by some pockets of humanity. ‘In some parts of our troubled world, people are shouting ‘Revolution! Revolution! In Kansas they’re shouting ‘Evolution! Evolution! We want our opposable thumbs’. Evolution isn’t supposed to go backwards. But you wonder. All the anxiety about food and medicine shortages – I know people, who are stocking up on their medicines already – as well as the devastation to the economy, manufacturing industry, jobs, all that went unmentioned by the Brexiteers on the sea front. Listening to the old chap declaring that he wanted an overwhelming Tory majority, I wanted to ask him, who he thought would continue paying his pension and if he had private medical insurance if this happened. Because the Tories are determined to cut pensions, one way or another, and they are selling off the NHS. And Nigel Farage has said very openly that we may need to change to an insurance-based system. Which is a not-very-coded way of saying that he’s in favour of it. But obviously these people weren’t concerned about any of that. They just believed everything they read in the papers, like the Heil, the Scum and the Torygraph.

And I doubt very much that these talking heads were representative of the good folks down in Weston-Super-Mare. If attitudes in the city really are like those nationally, then the people sitting on those chairs should be equally split. Instead it looks like the report was very carefully staged to favour the Brexiteers. Just like rather more Tory MPs were interviewed on the programme than Labour.

The programme was on tonight about Sajid Javid and how he grew up in his parents’ fashion shop in Stapleton Road in Bristol. Apparently he still proud of his roots there, despite the fact that it is a run-down area with a reputation. It’s topical, but I still wonder if it was anymore objective than last night’s edition about Brexit. I didn’t watch it, only catching a brief glimpse of it, when one of the interviewers was asking other Asian small businessmen in the area if they shared the national fears about the harm Brexit would do to businesses like theirs. It’s possible that the programme really was more unbiased. But somehow, given the nature of last night’s programme, I doubt it.

Sutton and Cheam Tory MP Wants Brexit to Save Standard of British Curry

August 5, 2019

One of the most ludicrous reasons I’ve heard from those demanding Britain leave the EU is that of Paul Scully, the Conservative MP for Sutton and Cheam. Way back in October 2015, the Sutton and Croydon Guardian’s Anders Anglesey reported that Scully was supporting Brexit because he feared that the EU was preventing proper curry chefs from Bangladesh coming to Britain. Without them, the standard of the British curry would fall. The report quoted Scully as saying

“The curry industry is struggling at the moment, partly because of some unintended consequences of our immigration policy.

“Leaving the EU would give us more flexibility to control our borders and tackle some of the unintended consequences of immigration from outside the EU.

Mr Scully clarified his position in a Facebook post. He said: “Curries may well be tastier after Brexit.

“By leaving the EU and controlling our own borders, we could be able to be more flexible in our immigration policy when tackling unintended consequences with our traditional Commonwealth partners, such as the shortage of skilled curry chefs.

“I’ve just got back from Bangladesh when even the President lobbied us on the issue. It it actually causing a number of restaurants to close.”

The newspaper also spoke to Oli Khan, vice-president of the Bangladesh Caterers’ Association, who said that there was indeed a problem getting enough trained Bangladeshi curry chefs. British-born Bangladeshis want to become lawyers or work in other jobs, rather than cook like the parents. They have tried using eastern Europe migrants, but there is a problem as many of them don’t speak English. Mr Khan was hoping the government would introduce a six month contract to allow people from Bangladesh to migrate here, and have their contract renewed if they do well.

See: https://www.yourlocalguardian.co.uk/news/13885920.leave-the-eu-to-get-better-curries-for-brits-says-mp-paul-scully/

Now I do like a good curry myself, and I sympathise with Mr Khan’s concern for the prosperity of his industry. But Brexit threatens to destroy British agriculture and manufacturing industry, accelerate the privatisation of the Health Service as Trump and the Americans buy it up as part of their wretched trade deal, and cause massive poverty and unemployment. It will even harm the financial sector as many foreign banks and financial houses move out of Britain to Europe.

Compared to all this, supporting Brexit because you’re afraid EU migration law is preventing you getting the right chefs for a good curry is bonkers and risible. I hope Boris Johnson’s government falls at the earliest opportunity, and Paul Scully is forced out along with the rest of the Tory clowns.