‘I’ Article on the Laws Deterring Blacks from Voting in the Southern USA

As America gets ready to decide whether they want the Orange Generalissimo or Joe Biden in the White House for the next four years, it seems that many Black citizens in the American south are being put off voting by restrictive legislation. These laws, including one dating from the era of Jim Crow in Mississippi serve to disenfranchise the poor and minorities, and have prevented people of colour from being elected to government office in the state. The I published a report about this by Tim Sulllivan, ‘Laws continue to deter black voters in southern states’ in last Friday’s edition for 23rd October 2020. This ran

The weight of history and current laws are deterring the black vote in some southern states.

The opposition to black votes in Mississippi has changed since the 1960s, but it has not ended. There are no poll taxes any more, no tests on the state constitution. But on the eve for the most divisive presidential election in decades, voters face obstacles such as state-mandated ID laws that mostly affect poor and minority communities and the disenfranchisement of tens of thousands of former prisoners.

And despite Mississippi having the largest percentage of black people of any state, a Jim Crow-era election law has ensured a black person has not been elected to statewide office in 130 years. Even today, the state has broad restrictions on absentee voting or online registration, absentee ballots that must be witnessed by notaries and voter ID laws that overwhelmingly affect the poor and minorities. Nearly a third of black people here live below the poverty line, and taking a day off work to vote can be too expensive. Then there are felony voting restrictions, which in Mississippi have disenfranchised almost 16 per cent of the black population, researchers say.

Distrust of the government runs deep. As a result, black politicians have long been fighting an apathy born of generations of frustration.

Anthony Boggan sometimes votes, but is sitting it out this year, disgusted at the choices. A 49-year-old black Jackson resident with a small moving company, Mr Boggan likes how the economy boomed during the Trump years, but cannot vote for a man known for his insults. As for Joe Biden, he and Donald Trump both “got dementia”, he says, and he hates how the former Vice President tries to curry favour in the black community. “They’re all going to tell you the same thing,” he said. “Anything to get elected.”

Some of these laws were put in place quite recently by the Republicans with the ostensible intention of reducing voter fraud. They chiefly affect the poor, Blacks and students, the section of the population most likely to vote Democrat. The Young Turks produced a report about them a few years ago, noting that one Republican politico let the cat out of the bag and actually admitted that they were intended to stop people voting for the Democrats.

Unfortunately, Mississippi isn’t the only southern state nor the Republicans the only party to rig regulations to stop Blacks voting. A few years ago the Democrats in Florida did something similar, manipulating the electoral rolls so that Blacks and Hispanics couldn’t vote.

And what the Republicans do, the Tory party copies. The Tories have also passed legislation supposedly designed to prevent voter fraud, but which also acts to prevent the poor, Blacks and other ethnic minorities from voting over here. Mike has published several articles on this, noting that the actual incidence of electoral fraud in this country is minuscule and covering reports that describe how they have operated to prevent people from voting. And it isn’t a coincidence that the sections of the population they prevent are those which also traditionally favour the Labour party.

It’s long past time these laws were repealed in both America and Britain. But this will require the election of genuinely reforming left-wing governments in each country. And I don’t see that happening any time soon with the corporatist right in control of the Democrats in America and Labour over here.

Another Crisis in the Outsourcing Industry: Capita Now in Trouble

Yesterday, Mike reported on his blog that the outsourcing giant, Capita, was now in trouble. Its share price has apparently halved, knocking £1.1 billion of its stock market value. It has axed its scheme to issue £500 million in dividends to its shareholders. Instead, it intends to raise £700 million, partly by selling off parts of the company, which it needs to balance the books. There are also fears that it will make part of its 67,000 strong workforce redundant as well as concerns for the firm’s pension fund.

Mike in his article notes that the company was responsible for assessing the infamous fitness for work tests, for which the government has imposed hidden targets. One of these is that 80 per cent of reconsidered cases should be turned down. Mike therefore comments that if the crisis means that some of these assessors get a taste of what they inflicted on benefit claimants, this would be a case of poetic justice. He also wonders what the firm was doing when it devised the scheme to issue those massive dividends to its shareholders. Did they believe that the government’s magic money tree would continue to allow them to give heaps of money to their rich shareholders? He also asks other searching questions, such as whether it was deliberately underbidding to get government contracts, and then using the money to help finance those projects it had already won.

Mike concludes

So: First Carillion collapsed. Now both Interserve (remember them?) and Capita are in trouble.

Who’s next? And what will happen to public services while the Tories dither over this crisis?

See: https://voxpoliticalonline.com/2018/01/31/in-the-crap-ita-government-contractor-responsible-for-benefit-assessments-is-in-deep-financial-doo-doo/

Capita, or as Private Eye dubbed it, ‘Crapita’, has a long history of incompetence behind it. Way back in the 1990s it seemed that hardly a fortnight went by without Capita turning up in the pages of the satirical magazine. And the story was nearly always the same. The outsourcing company won a government or local authority contract to set up an IT system or run IT services. The project would then go over time and over budget, and would be massively flawed. And then a few weeks or months later, the company would be given a contract somewhere, and do exactly the same thing there.

You’re left wondering how Crapita kept winning those contracts, when it was so manifestly unfit to carry them out. Who did it have on its board? Or was there a deliberate policy by Major’s government to support outsourcing, no matter how inefficient and incompetent they were, because it was private enterprise and so preferred and supported for purely ideological reasons?

In any case, what seems to have placed the company in a very precarious financial situation is the usual tactics of big companies in this stage of capitalism: award massive dividends to the shareholders. This usually goes along with starving the rest of the company of investment, which seems to have been done to. And granting massive, and massively unsustainable pay awards to senior management. There’s no mention of that in Mike’s article, but I don’t doubt that this was done too. I’ve got the impression that it’s just about standard practice across a huge swathe of industry.

This is a financial strategy that has driven far more than one company to the wall. I also wonder if the executives weren’t also trying deliberately to create a debt, so that they could dodge corporation tax for five years. This is one of the tricks Stewart Lansley and Joanna Mack describe in their book on contemporary British poverty, Breadline Britain.

Over the years the outsourcing policy has been in operation, there’s been one crisis after another. The outsourcing companies have repeatedly shown themselves to be incompetent, not just in the case of capita, but also notoriously with G4S and the scandals over the violence and brutality it meted out towards asylum seekers in the detention centres it ran. And, of course, when a whole load of prisoners escaped on their way to court. Or jail.

Private industry has repeatedly shown that it is incompetent to do the work of the state sector. These firms have the disadvantage of having to make a profit for their shareholders, as well as the demands of their management for multi-million pound pay packets. The only way they can afford this is by cutting wages to their workers, and spending as little as possible on the service they are meant to be providing. The result of this has been a series of financial collapses. Carillion was the first. Now Capita and Interserve, another outsourcing company, is in similar trouble.

The only sensible recourse should be to cancel these companies’ contracts, and take everything back in-house. But this won’t be done. I think there’s a problem in that the state sector has been so decimated by the past four decades of Thatcherism, that it no longer has the capacity to run these services itself. There’s also the additional problem that too many politicians and media magnates have connections to these companies, or to firms in a similar position hoping for government contracts. Acknowledging that outsourcing was a failure would damage the interests of these politicos and press barons. There’s also the challenge of actually facing up to the fact that a central plank of Thatcherite dogma – that private enterprise is always more efficient than the state – is absolutely, undeniably wrong. Anybody who makes this point is denounced as a Communist in screaming headlines. You only have to look at the way the Tory press has vilified Jeremy Corbyn for daring to want to renationalise the NHS, the electricity net and the railways. His policies are very far from the total nationalisation demanded by Communists and Trotskyites, but you wouldn’t know it from the frothing abuse hurled in his direction by the Tories and Blairites.

There’s also another problem with calling an end to the outsourcing scam. PFI contracts and outsourcing allow some of the costs to be written off the official government accounts sheet. They’re still there, and we have to keep paying them, but they’re not included in the official figures. It’s why Mussolini used a similar scam when he was Duce of Fascist Italy. Any government that restores these projects to the way they were handled before risks putting millions back the official figures. And if that’s the Labour party, you can imagine the Tories making their usual hackneyed and untrue comments about ‘high-spending Labour’, and then re-iterating the spurious arguments for austerity.

I’ve no doubt that the government will do what it can to shore up the current mess the outsourcing companies are in. But the collapse of Carillion and now the severe financial troubles faced by Capita and Interserve show that outsourcing does not work. And given these companies’ highly checkered history, they should never have been given governments to begin with.

And it bears out exactly the description the author of Zombie Economics used for them in the very title of his book. Outsourcing, and the rest of the Thatcherite economic strategy of privatisation, wage restraint, low taxation and declining welfare are ‘zombie economics’ as they don’t work, but haven’t yet been put it into the grave.

It’s high time they were, and Thatcherite free trade capitalism was abandoned as the failure it so glaringly is.