Posts Tagged ‘Profit-Sharing’

Adolf Hitler on the Capitalist Nature of Nazism

January 21, 2019

According to a piece on Zelo Street, Raheem Kassam, one of the leaders of the ‘Leave’ campaign and another fixture of the Libertarian extreme right, has been on Twitter arguing with James Melville arguing about the nature of nationalism, imperialism, Fascism, Nazism and Conservativism. Kassam had been complaining about left-wingers mass-reporting his tweets to the company to get his account closed down. Melville was entirely and rightly unsympathetic, stating that Kassam had tried to get his own followers to pile onto Melville’s twitter stream, and thus force him off twitter. It’s a strategy called ‘dog-piling’. He commented that Kassam was reaping what he’d himself sown. He also upset Kassam by criticizing a photo Kassam had put up showing Winston Churchill in a yellow vest, asking Kassam if he knew that Churchill fought against right-wing extremism. The annoyed Kassam responded

”Lol now this guy who had a meltdown yesterday is going through my feed picking out tweets he thinks he can argue with. Churchill defeated imperialistic (opposite of nationalist) National Socialism (opposite of right wing) which wanted a united Europe under Germany (EU)” and

“Fascism is an ideology. Conservatism is a philosophy. There’s your first problem in attempting to link the two. Fascism concerned itself with a corporate-state nexus (like socialism, and indeed our current pro-EU system does). Your understanding of philosophy is poor”.

Which as Zelo Street noted, shows that Kassam knows nothing about history and doesn’t know the difference between Fascism, socialism and corporativism.

Both Nazism and Italian Fascism had socialist elements, but they very quickly allied themselves with the nationalist, capitalist extreme right and served their interests against genuine socialism, trade unions and organized labour. I’ve written several pieces about the capitalist nature of Nazi Germany, and how the Nazi regime promoted private industry and privatization over state-owned enterprises. Hitler did define himself as a socialist, and a strong proportion of the Nazi party did take the socialist elements in the Nazi programme of 1925 seriously. But Hitler made his opposition to the socialization of German industry and his support for capitalism very clear in a debate with Otto Strasser, one of the leaders of the Nazi left. There’s an account of the debate between the two in Nazism 1919-1945: Vol 1 The Rise to Power 1919-1934, A Documentary Reader, edited by J. Noakes and G. Pridham (Exeter: University of Exeter 1983), pp. 66-7. Hitler makes his attitude towards the nationalization of German industry clear on page 67.

‘Let us assume, Herr Hitler, that you came into power tomorrow. What would you do about Krupp’s? Would you leave it alone or not?’
‘Of course I should leave it alone’, cried Hitler. ‘Do you think me so crazy as to want to ruin Germany’s great industry?’
‘If you wish to preserve the capitalist regime, Herr Hitler, you have no right to talk of Socialism. For our supporters are Socialists, and your programme demands the socialization of private enterprise.’
‘That word “socialism” is the trouble, said Hitler. He shrugged his shoulders, appeared to reflect for a moment and then went on:
‘I have never said that all enterprises should be socialized. On the contrary, I have maintained that we might socialize enterprises prejudicial to the interests of the nation. Unless they were so guilty, I should consider it a crime to destroy essential elements of our economic life. Take Italian Fascism. Our National Socialist state, like the Fascist state, will safeguard both employers’ and workers’ interests while reserving the right of arbitration in case of dispute.’
Hitler, exasperated by my answers, continued: ‘there is only one economic system, and that is responsibility and authority on the part of directors and executives. I ask Herr Amann to be responsible to me for the work of his subordinates and to exercise authority over them. Herr Amann asks his office manager to be responsible for his typists and to exercise his authority over them; and so on to the lowest rung of the ladder. That is how it has been for thousands of years, and that is how it will always be.’
‘Yes, Herr Hitler, the administrative structure will be the same whether capitalist or socialist. But the spirit of labour depends on the regime under which it lives. If it was possible a few years ago for a handful of men not appreciably different from the average to throw a quarter of a million Ruhr workers on the streets, if this was legal and in conformity with the morality of our economic system, then it is not the men but the system that is criminal.’
‘But that-‘ Hitler replied, looking at his watch and showing signs of acute impatience ‘that is no reason for granting the workers a share in the profits of the enterprises that employ them, and more particularly for giving them the right to be consulted. A strong state will see that production is carried on in the national interest, and, if these interests are contravened, can proceed to expropriate the enterprise concerned and takeover its administration.’

Hitler thus made it very clear that he was strongly opposed to nationalization, except for failing companies, and did not want the workers to receive a share in the profits of the firms for which they worked, nor to be consulted about its management. And when the Nazis seized power, they destroyed the trade unions and sent their leaders and activists to the camps, along with socialists, anarchists and other political dissidents. Hitler didn’t believe in laissez-faire free trade – under Nazism industry was controlled by a state planning apparatus like that of Soviet Union – but industry remained by and large very definitely in private hands.

As for the Strasser brothers, Otto and Gregor, who were two of the leaders of the Nazi ‘left’, Hitler had one of them murder in the ‘Night of the Long Knives’ along with the rest of the SA and the other fled to South America. Which shows how bitterly he despised those who took the ‘socialist’ parts of his programme seriously.

Whatever Hitler himself may have said about ‘socialism’, he was no kind of socialist at all.

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Adolf Hitler on Industry and Nationalisation

December 21, 2018

I’ve put up several articles making the point that the Nazis weren’t socialists, and that the promoted monopoly capitalism. However, Hitler did not want civil servants or Nazi apparatchiks to have interests in business because of the dangers of corruption. His example was the Danube Shipping Company, a private German firm which massively profited by having sitting members of the Weimar government on its board, who then awarded the company very large subsidies.

Some of Hitler’s views on the question of private industry versus nationalization can be found in his after dinner conversations, recorded by Martin Bormann, Hitler’s Table Talk (Oxford: OUP 1988). Hitler said

I absolutely insist on protecting private property.
It is natural and salutary that the individual should be inspired by the wish to devote a part of the income from his work to building up and expanding a family estate. Suppose the estate consists of a factory. I regard it as axiomatic, in the ordinary way, that this factory will be better run by one of the members of the family than it would be by a State functionary-providing, of course, that the family remains healthy. In this sense, we must encourage private initiative.

On the other hand, I’m distinctly opposed to property in the form of anonymous participation in societies of shareholders. This sort of shareholder produces no other effort but that of investing his money, and thus he becomes the chief beneficiary of other people’s effort: the workers’ zest for their job, the ideas of an engineer of genius, the skill of an experienced administrator. It’s enough for this capitalist to entrust his money to a few well-run firms, and he’s betting on a certainty. The dividends he draws are so high that they can compensate for any loss that one of these firms might perhaps cause him. I have therefore always been opposed to incomes that are purely speculative and entail no effort on the part of those who live on them.

Such gains belong by right to the nation, which alone can draw a legitimate profit from them. In this way, at least, those who create these profits – the engineers and the workers – are entitled to be the beneficiaries. In my view, joint-stock companies should pass in their entirety under the control of the State. There’s nothing to prevent the latter from replacing these shares that bring in a variable interest by debentures which it guarantees and which produce a fixed interest, in a manner useful to private people who wish to invest their savings. I see no better method of suppressing the immoral form of income, based only on speculation, of which England to-day provides the most perfect example. (pp. 362-3).

He also believed that the power industry should be nationalized in some way.

It’s obvious that the power monopoly must be vested in the State. That does not exclude the participation of private capital. The State would offer all its securities for investment by the public, which would thus be interested in the exploitation of the monopoly, or, rather, in the favourable progress of State business. The fact is that, when State affairs are not prospering, the holders of certificates can put a cross through their unearned incomes-for the various affairs in which the State is interested cannot be dissociated. The advantage of our formula would be to enable everyone to feel closely linked with State affairs. To-day, unfortunately, most people are not clear-sighted enough to realise the closeness of this link.

What is true of the power industry is equally true of all the essential primary materials – that is to say, it applies also to petroleum, coal, steel and water-power. Capitalist interests will have to be excluded from this sort of business. We do not, of course, contemplate preventing a private person from using the energy of the tiny stream that powers his small works.

In fact, Hitler was resolutely against profit-sharing and anything remotely like worker’s control in industry. He despised socialism, which he reviled as ‘Marxism’ and the trade unions. They were banned, and their members sent to the concentration camps. In their place was the Labour Front and its councils of trustees in factories, which were there to mediate between the workers and management, and to enforce the authority of the latter.

But Hitler is absolutely right about the problems of joint-stock firms. The Korean economist, Ha-Joon Chang, in his book 23 Things They Don’t Tell You About Capitalism, states that one of the problems with shareholder capitalism is that if the firm appears to be in trouble, the shareholders withdraw their money to invest in a better prospect somewhere else. This exacerbates the firm’s troubles. Those enterprises, which are either wholly or partly nationalized, or which have a degree of worker’s control, tend to be much more resilient as the state and the workforce have a greater interest in maintaining it as a ongoing concern.

As for the nationalization of the power and related industries, that was so obviously needed in Britain that when the Labour party nationalized the electricity and coal industries in late forties there was little opposition from the Tories and the Liberals.

Now Hitler’s own ideas on nationalization are very peculiar. He seems to wish to retain some aspects of capitalism after nationalization by allowing people to buy bonds in them. Or something like that. But when Margaret Thatcher was busy privatizing the utilities and everything else she was able to get her grubby mitts on, one of the leaders of the Labour party at the time also suggested that the party should instead look at schemes of issuing bonds in nationalized industries. This would also combine the perceived advantages of privatization with those of nationalization.

This scheme was suggested at the time when Maggie’s privatization programme was popular, or pretended to be. Her aim was to spread corporate ownership far beyond its traditional narrow base in the middle class, hence her reforms of the stockbroking industry. Britain was to become a capitalist nation of small investors.

This dream came to an end over a decade ago. By the early years of this century the Financial Times reported that the ordinary people at whom Thatcher had aimed her share-ownership scheme, had sold theirs and that all, or almost all of them, were once more back in the hands of major investors. In other words, the traditional, property-owning middle class.

Hitler was a monstrous tyrant, whose party plunged Europe into a war which killed forty millions, and who murdered 6 million Jews and 5 1/2 million non-Jews in the hell of the concentration camps. And it shows how far wrong Thatcherite orthodox economic theory is when even he talks sense about some subjects.

Privatisation has failed. It has failed to provide the investment needed to maintain and expand the utilities and other industries, and instead any profit these firms make now go out of the country to their foreign owners. It’s about time this was ended, and the firms renationalized, with their workers given seats on the board and a role in management.

The Capitalist Nature of Nazism

November 17, 2018

Every now and then a Conservative defender of capitalism tries to argue that Nazism and Fascism were forms of Socialism. Jonah Goldberg tried it a few years ago in his book, Liberal Fascism, a Tory MP stood up in the European parliament a couple of weeks ago and made the same accusation, though he had to take it back and apologise. And Private Eye in recent weeks have also published a couple of letters from readers making the same claims.

Fascism did have Socialistic elements. Mussolini was originally a radical Socialist, who broke with the rest of the Italian Socialist movement in supporting Italy joining the First World War. The Fascist party was originally extremely left-wing in its programme of 1919. Its corporativism was not only based on the ideas of the right-wing Italian Nationalists, but also from part of the syndicalist movement, which moved away from demanding absolute workers’ control to advocating an industrial structure which included both capitalists and workers in a series of corporations set up to govern each industry, or sector of the economy. The Nazis also included socialist elements in their 1922 programme, such as the nationalization of firms and profit-sharing in industry, as well as the break-up of the department stores.

However, the Fascists and Nazis came to power through their alliance with business and the aristocracy. Both the Italian Fascists and Nazis in Germany were hostile to socialism, communism and workers’ trade unions. In Italy, they also allied with the Vatican to destroy the Populists, a party set up to represent Italian Roman Catholics against persecution by the Liberal state, which was distrusted by the Papacy because they considered it too radical. Once in power, the socialist elements of these parties’ programmes was soon jettisoned. Hitler declared that he had no intention of nationalizing businesses, unless they were badly run. He had the SA massacred in the Night of the Long Knives because this part of the Nazi party did take the socialist elements of party programme seriously. The word ‘socialist’ had only been included in the name of the Nazi party – the National Socialist German Workers’ Party – against bitter opposition by some of its founders. Hitler stated that he did so in order to steal potential recruits from the real left-wing parties. Furthermore, the Nationalist intellectuals who first advocated a right-wing ‘socialist’ order in the 1920s stated that they did not refer to the nationalization of industry, but to the socialization of people to serve the state. And just before the Nazi seizure of power, Hitler made a speech to German industry stating that Nazism would protect private industry.

Robert A. Brady, an associate professor of economics at the University of California, made the capitalist nature of the Nazi regime very clear in his The Spirit and Structure of German Fascism (London: Victor Gollancz 1937). The book is a thorough description of German society under the Nazis – its ideology, social structure, the coordination of science, industry and agriculture, the instruments of power and the various party organisations used to recruit and control the masses. Brady states

The regime which the Nazis proceeded to establish is fairly described, by the very nature of the major interest which sponsored it, as a dictatorship of monopoly capitalism. Its “fascism” is that of business enterprise organized on a monopoly basis, and in full command of all the military, police, legal and propaganda power of the state. (p. 33, emphasis in the original). He lays out the essential capitalist nature of the Nazi state as follows on pages 41-2.

1. Productive Property and natural resources are to be privately owned; freedom of contract is guaranteed (excepting to “aliens” and the peasants under the Inheritance laws).
2. Individual initiative, the business entrepreneur, conduct of business for profit (“reward for services performed”), and ownership (individual or stockholder) control are basic.
3. Business men are to be free, if “responsible” (“self-government in business”), to fix by agreement prices, production totals and quotas, marketing areas, and the conditions and terms of purchase and sale.
4. Stock and commodity exchanges, commission houses, brokers, and speculative transactions are inevitable and necessary for the conduct of “organic business.” (Business as usual.)
5. Heavy industries, particularly those catering to the military and foreign trade, are encouraged; large-scale units, unless “uneconomical” are to be kept intact; co-operatives are to be broken up.
6. The social class structure of society is sanctified, strengthened, made semi-hereditary, and hardened into caste lines
(Standestaat, class state); the “Middle Class” are the Myrmidons of the Elite (Fuhrerstaat, leader state) and, as such, the backbone of the state.
7. Employers have practically complete control over workmen in regard to wages, hours, and working conditions. They must “take care” of their workmen-i.e. see that they are fed and do not grumble.
8. Collective bargaining is completely abolished; strikes are illegal; trade unions are forbidden; requests for wage increases are
lese majeste.
9. Control is completely from on top; there is and can be no such thing as control or discussion of policies from below; the “leaders” decide all things as they see fit; each holds appointed office for indefinite periods at the will of his superior.
10. The National Socialist Party and the German State are one and inseparable, as spirit and body. Legislative, executive, and judicial authorities are fused together. The central government controls all local government and all activities in all their details.
11. Civil and military are fused together; as in the military there can be no freedom of speech, of assembly, of writing, of acting, of “thoughts.” “Anyone may grumble or criticize the government who is not afraid to go to a concentration camp.” (Goebbels).
12. Germany must be made self-sufficient at all costs.
(Autarkie).
13. Non-Germans cannot be citizens; as a corollary, all Germans residing outside Germany either belong or owe allegiance to the Third Reich.
14 Communism (Bolshevism, Marxism) is the major enemy. There can be no such thing as equality of rights, opportunities, or income for classes, races, or sexes. The “broad masses” are fools and must be duped and led to meet the purposes of the elite
(Herrenstaat). Class war is the major crime; material rewards for the rank and file sheer folly.
15. All sciences and “culture” must be co-ordinated and made to serve the purposes of the “leader,” “total,” “corporate” “master”
(Herren)state. propaganda is the method. Propaganda knows neither right nor wrong, neither truth nor falsehood, but only what it wants.

In fact, business autonomy was severely limited by the imposition of the apparatus of state planning as Nazi Germany became a centrally planned economy similar to the Soviet Union, though in the case of Germany and Fascist Italy the economy was still very definitely capitalist private industry. Brady also goes on to discuss in his book how the Nazis celebrated and lauded the businessman as biologically superior through their social Darwinist ideology, and made sure that the leaders of industry, whether state-owned or private, were all drawn from the private sector.

Nazi rhetoric was anti-capitalist, but by this they meant free trade, which they identified with the Jews, just as they claimed the Jews were behind Socialism, Communism, the trade unions and other left-wing movements. They also borrowed some elements from Communism. Fellow Germans were ‘national comrades’, rather like the Marxist use of the term ‘comrade’ to describe a fellow Communist.

However, it is clear from this that Nazism was deeply Conservative and capitalist in its economic and social policies, and bitterly anti-socialist. It had socialist elements, but they were not taken seriously and only ever used as propaganda against the genuinely socialist parties and organisations. Any description of the Nazis as really socialist is utterly false and a lie, a rhetorical attempt to discredit contemporary socialism through guilt by association, and must be seen as such.

The Real News on Labour’s Plan For Nationalisation and Workplace Democracy

October 16, 2018

In this 15 minute video from the Baltimore-based The Real News network, host Aaron Mate talks to Leon Panitch, professor of political science at York University about the proposals announced at the Labour party’s conference last month that Labour intended to renationalize some of the privatized utilities, introduce profit-sharing schemes and workplace democracy in firms with over 250 members, in which 1/3 of the board would be elected by the workers.

The video includes a clip of John McDonnell announcing these policies, declaring that they are the greatest extension of economic democratic rights that this country has ever seen. He states that it starts in the workplace, and that it is undeniable that the balance of power is tipped against the worker. The result is long hours, low productivity, low pay and the insecurity of zero hours contracts. He goes on to say that Labour will redress this balance. They will honour the promise of the late Labour leader, John Smith, that workers will have full union rights from day one whether in full time, part time or temporary work. They will lift people out of poverty by setting a real living wage of ten pounds an hour.

McDonnell also says that they believe that workers, who create the wealth of a company, should share in its ownership and the returns that it makes. Employee ownership increases productivity and improves long-term decision making. Legislation will be passed, therefore, for large firms to transfer shares into an inclusive ownership fund. The shares will be held and managed collectively by the workers. The shareholders will give the workers the same rights as other shareholders to have a say over the direction of their company. And dividend payments will be made directly to the workers from the fund.

Commenting on these proposals, Panitch says that in some ways they’re not surprising. McDonnell stated that Labour would inherit a mess. But his remarks were different in that usually governments use the fact that they will inherit a mess not to go through with radical policies. Panitch then talks about Labour’s commitment to bring the public utilities – rail, water, electricity, the post office – public ownership, pointing out that these used to be publicly owned before Thatcher privatized them. McDonnell particularly focused on water, before going beyond it, citing the 1918 Labour party constitution’s Clause IV, which Blair had removed. This is the clause committing the Labour party to the common ownership of the means of production, distribution and exchange, under the best form of popular administration. And unlike previous nationalized industries, these will be as democratically-run as possible. Councils would be set up in the water sector made up of representatives of the local community and workers’ representatives to be a supervisory council over the managers in the nationalized water industry.

They then go to a clip of McDonnell talking about the nationalization of the utilities. McDonnell states that the renationalization of the utilities will be another extension of economic democracy. He states that this has proved its popularity in opinion poll after opinion poll. And it’s not surprising. Water privatization is a scandal. Water bills have risen by 40 per cent in real terms since privatization. 18 billion pounds has been paid out in dividends. Water companies receive more in tax credits than they pay in tax. And each day enough water to meet the needs of 20 million people is lost due to leaks. ‘With figures like that’, he concludes, ‘we cannot afford not to take it back into popular ownership’.

Mate and Panitch then move on to discussing the obstacles Labour could face in putting these policies into practice, most particularly from the City of London, which Panitch describes as ‘the Wall Street of Britain’, but goes on to say that in some ways its even more central to financialized global capitalism. However, Panitch says that ‘one gets the sense’ that the British and foreign bourgeoisie have resigned themselves to these industries being brought back into public ownership. And in so far as bonds will be issued to compensate for their nationalization, McDonnell has got the commitment from them to float and sell them. He therefore believes that there won’t be much opposition on this front, even from capital. He believes that there will be more resistance to Labour trying to get finance to move from investing in property to productive industry.

He then moves on to talk about Labour’s plans for ten per cent of the stock of firms employing 250 or more people to go into a common fund, the dividends from which would passed on to the workers up to 500 pounds a year. Anything above that would be paid to the treasury as a social fund for meeting the needs of British people and communities more generally. Panitch states that this has already produced a lot of squawking from the Confederation of British Industry. Going to giving workers a third of the seats on the boards, Panitch states that it has already been said that it will lead to a flight of capital out of Britain. He discusses how this proposal can be radical but also may not be. It could lead to the workers’ representatives on these boards making alliances with the managers which are narrow and particular to that firm. The workers get caught up in the competitiveness of that firm, it stock prices and so on. He makes the point that it’s hardly the same thing as the common ownership of the means of production to have workers’ sitting on the boards of private companies, or even from workers’ funds to be owning shares and getting dividends from them. Nevertheless, it is a step in the right direction of socializing the economy more generally, and giving workers the capacity and encouraging them to decide what can be produced, where it’s produced, and what can be invested. And if it really scares British and foreign capital, this raises the question of whether they will have to introduce capital controls. Ultimately, would they have to bring the capital sector into the public sphere as a public utility, as finance is literally the water that forms the basis of the economy?

Mate then asks him about Labour’s refusal to hold a second referendum on Brexit, which angered some activists at the conference. Labour said that any second referendum could only be about the terms of the exit. Panitch states that people wanting Britain to remain in a capitalist Europe try to spin this as the main priority of the party’s members, even Momentum. He states that this is not the case at all, and that if you asked most delegates at the conference, most Labour members and members of Momentum, which they would prefer, a socialist Britain or a capitalist Europe, they would prefer a socialist Britain. The people leading the Remain campaign on the other hand aren’t remotely interested in a socialist Britain, and think it’s romantic nonsense at best. He states that the Corbyn leadership has said that they want a general election as they could secure an arrangement with Europe that would be progressive without necessarily being in Europe. They would accept the single market and a progressive stand on immigration rather than a reactionary one. They did not wish to endorse a referendum, which the Tories would have the power to frame the question. And this is particularly because of the xenophobic and racist atmosphere one which the initial Brexit vote was based. Panitch states that he is a great critic of the European Union, but he would have voted to remain because the debate was being led by the xenophobic right. He ends by saying that capital is afraid of the Trumps of this world, and it is because of the mess the right has made of things here in Britain with the Brexit campaign that capital might give a little bit more space for a period at least to a Corbyn government.

This latter section on Brexit is now largely obsolete because Labour has said it will support a second referendum. However, it does a good job of explaining why many Labour supporters did vote for Brexit. The editor of Lobster, Robin Ramsay, is also extremely critical of the European Union because of the way neoliberalism and a concern for capital and privatization is so much a part of its constitution.

Otherwise, these are very, very strong policies, and if they are implemented, will be a very positive step to raising people out of poverty and improving the economy. Regarding the possibility that the representatives of the workers on the company boards would ally themselves with capital against the workers, who put them there, has long been recognized by scholars discussing the issue of workers’ control of industry. It was to stop this happening that the government of the former Yugoslavia insisted that regular elections should be held with limited periods of service so that the worker-directors would rotate. Ha-Joon Chan in his books criticizing neoliberal economics also makes the points that in countries like France and Germany, where the state owns a larger proportion of firms and workers are involved in their companies through workers’ control, there is far more long-term planning and concern for the companies success. The state and the workers have a continuing, abiding interest in these firms success, which is not the case with ordinary investors, who will remove their money if they think they can get a better return elsewhere.

My concern is that these policies will be undermined by a concentrated, protracted economic warfare carried out against the Labour party and the success of these policies by capital, the CBI and the Tories, just as the Tories tried to encourage their friends in industry to do in speeches from Tweezer’s chancellors. These policies are desperately needed, but the Tory party and the CBI are eager to keep British workers, the unemployed and disabled in poverty and misery, in order to maintain their control over them and maximise profits.

Pinochet, Hillary Clinton, and Theresa May’s Proposal for Worker Directors

July 30, 2016

I found this very interesting paragraph in a piece by Michael Hudson ‘Obama Said Hillary Will Continue His Legacy. And She Will!’ in this weekend’s collection of Counterpunch articles:

Obama’s brilliant demagogy left many eyes glazed over in admiration. Nobody is better at false sincerity while misrepresenting reality so shamelessly. Probably few caught the threatening hint he dropped about Hillary’s plan for corporations to share their profits with their workers. This sounds to me like the Pinochet plan to privatize Social Security by turning it into exploitative ESOPs (Employee Stock Ownership Programs). The idea is that wage withholding would be steered to buy into the company’s stock – bidding it up in the process. Employees then would end up holding an empty bag, as occurred recently with the Chicago Tribune. That seems to be the great “reform” to “save” Social Security that her Wall Street patrons are thinking up.

Hudson’s article is a sustained demolition of the liberal image Shrillary and the rest of the establishment Democrat Party have promoted. She is not remotely on the side of the increasingly impoverished Middle and working classes, but a neoliberal corporatist concerned with promoting the profits of her donors in Wall Street and Big Business at the expense of ordinary Americans. She stands for more austerity, further cuts to education and welfare programmes, including Medicare, and the TTP and TTIP free trade agreements, that threaten to outsource more American jobs.

She’s also an extremely militaristic hawk, who has supported a series of bloody interventions from Iraq, Libya, and Syria to Honduras. She promises a further escalation of American military action around the globe. To divert attention from the corrupt machinations in her favour by the Democrat party machine, headed by Debbie Wasserman Schultz, she has attacked Putin for supposedly hacking into the Democrat’s computer, which held details of these underhand deals. She’s also using Trump’s friendship with the Russian leader to attack him, in which Hudson sees as a return to the Red-baiting antics of the McCarthy era. He describes how she has appealed to Republic voters against those of Bernie Sanders and the progressive Left. And how Bernie Sanders has also ill-served his own supporters by endorsing her, despite the fact that she stands for everything he opposes.

Hudson also makes the wider point that many, if not most of the policy positions Hillary adopts are exactly the same as Obama. Obama was no radical: he described himself as a ‘moderate Republican’. The only radical feature about him was his ethnicity. He was Black, and this constituted a liberal point in his favour, just as Shrillary’s biological femininity is a point in hers. But Hudson makes the point that Shrillary’s biological gender is irrelevant to her politics. She does not embody the traditional female characteristics of empathy, but a very masculine aggressive militarism, in which she is ‘one of the boys’ with the other army hawks.

See http://www.counterpunch.org/2016/07/29/obama-said-hillary-will-continue-his-legacy-and-indeed-she-will/

There is much here that parallels the political situation over here in Blighty. Owen Smith and the Blairites in Labour are also neoliberals, standing for austerity, welfare cuts, aggressive militarism and pursuing the aims and enrichment of the super-rich at the expense of the poor. It’s not even remotely surprising, as Blair modelled his New Labour project on Bill Clinton’s New Democrats. And both parties based their electoral strategy on trying to win over Conservative voters through the adoption of corporatist, anti-working class policies.

But the piece also indicated very strong parallels with Theresa May’s Conservatives. They’re even more corporatist than New Labour, but May announced when she entered No 10 that she was in favour of workers on companies’ boards of directors. This is a radical socialist policy. It’s one so radical, that leftwing Labour MPs like Tony Benn and Ken Livingstone were ruthlessly pilloried for endorsing it in the 1970s and 1980s. Now May, an arch capitalist, says she’s in favour of it.

She clearly isn’t, at least as far as it is conventionally considered. It may well be, as I’ve said before, just rhetoric, a piece of left-wing guff to make her sound more progressive than she actually is. David Cameron, her predecessor, did the same before he became prime minister. He and Ian Duncan Smith opposed New Labour’s welfare cuts, including the privatisation of the NHS, and made noises about supporting Green policies. Cameron’s political mentor, Anthony Blonde, claimed that neoliberalism had failed, and that the Tory party would support pro-worker policies in his book, Red Tory. He even made approving noises about the great 19th century Russian Anarchist, Peter Kropotkin.

Except that it was all rubbish. Once in power, the Green policies were swiftly jettisoned and fracking and nuclear power wholeheartedly endorsed. Neoliberalism was declared to be the only way forward. And he made deeper cuts under his austerity campaign than Labour, and, if anything, stepped up the privatisation of the NHS.

It looks like May is repeating that strategy: first appear a bit left, then, when your position has been consolidated, get rid of it all and carry on as normal.

But it may be that she does mean something about worker directors. If she does, it won’t be for the welfare of the working class. Hudson states that Hillary’s call for profit-sharing sounds like Pinochet’s attempts to privatise social security through turning it into a employee share scheme. Something like this is also likely over here with May’s worker directors. The Tory party has already tried to promote one scheme, by which workers were able to acquire shares in their company, if they signed away their employment rights. It looks very much to me that May will try something similar under the pretense of introducing industrial democracy. If she ever does anything like that at all in the first place, that is.

Capital Investment Funds for Trade Unions on the Continent

May 21, 2016

Introduction Unions Pic

Also in Ben Hooberman’s book, An Introduction to British Trade Unions, is a discussion of a fascinating scheme launched in Denmark to allow the unions to build up a 50% investment fund in industry. Hooberman writes

The Danish trade unions have adopted a programme for a wage earners’ national profit and investment fund. The principle behind it appears to be a form of profit-sharing in which wage earners in private and public employment would be given a share in the capital growth of industry. Employers would contribute 1 per cent of their wages bill in the first year and increase their contribution by 1/2 per cent annually until a fifty per cent contribution is made to the fund each year. It is proposed that the fund should be controlled and administered by the trade unions themselves. The object of the proposal is to create for trade unions a means of controlling capital in industry in the same way as they influence the level of wages and conditions of employment. In both West Germany and France there are in existence means for the payment of ‘investment wages’ to workers. Both the German and French schemes began with legislation; in Germany tax concessions are granted to workers involved in voluntary capital-sharing arrangements, while in France the statutory capital entitlement is calculated directly from annual profits. (P. 74).

This is a fascinating scheme, as if it were logically carried to its conclusion, it would give workers an equal share in industrial capital through the mechanism of capitalism itself. With the systems of works councils recommended by the TUC and EU, it’s more evidence just why Thatcher and the rest of the Tory Right were so frightened of organised labour. And they clearly still are, given by their continuing attempts to destroy the unions.

The continental nature of these proposals also explains why the Tory Euro-sceptics bitterly hate the EU and its Social Charter. It also explains why Thatcher got her knickers in a twist about ‘patriotism’ versus ‘Socialism’, and declared Socialism to be a nasty foreign doctrine. This is ridiculous. Trade Unions first appeared in England, as did the co-operative movement, so certain parts of Socialism are British in origin. And if we’re talking about foreign ideas, so it modern democracy and human rights, come to that. The Rights of Man were first articulated during the French Revolution, and the ideas about free trade espoused by Adam Smith were pioneered by French writers discussing the problems of the agricultural economy in 18th century France. Thatcher’s ideas on this point don’t make much sense, but then, there is so little in Maggie’s ideology that does.

Tory MEP Hannan Describes French Front National as ‘Left-Wing’

March 31, 2014

Daniel Hannan

Tory MEP and supporter of NHS privatisation Daniel Hannan. In his view, the Front National are left-wing.

Following this morning’s post tracing the accusation that the National Front/ BNP are left-wing parties to the pamphlet by Stephen Ayres of the National Association For Freedom (NAFF), now the Freedom Association, The National Front are a Socialist Front, I received this comment from Buddyhell:

Hannan has today written a blog that describes le Front National as “far-left”. He will not be told. Even his stablemates attack him for the way he lazily draws lines between fascism and socialism. In essence, Hannan is smearing the Left with these assertions.
http://blogs.telegraph.co.uk/news/danielhannan/100265536/france-has-given-up-on-its-politicians-with-good-reason/
.

I’ve blogged before about the way Fascism included left-wing elements amongst a number of competing and contradictory ideologies and groups. Mussolini had started off as a radical Socialist, but broke with the party over his support for Italy joining the First World War. Jess has also commented on this morning’s post about the nature of Fascism, pointing to a report in the Guardian for the 13th October 2009 that Mussolini was being paid £100 a week by MI5 in 1917 for his continued vocal support for the Italian war effort. See http://www.theguardian.com/world/2009/oct/13/benito-mussolini-recruited-mi5-italy. ‘The name’s Mussolini. Benito Mussolini’, she remarks drily. Unfortunately, Mussolini was never that suave. According to Denis Mack Smith’s biography, he got thrown out of at least one school for spending all his time in the local cemetery drinking, using foul language and seducing the local girls. He also raped one young woman, who had the misfortune to catch his eye. He did like sharp suits, however. After haranguing the crowd dressed in the rough clothes of a worker, he used to go home and put on a smart suit and patent leather shoes. So, with the promiscuity and the suits, a bit like Bond, but only a really nasty, thuggish one.

Mussolini and the Corporate State

Mussolini seized power by promising to defend the middle classes and private property from the threat of Socialism and organised labour. The Fascist squadristi pursued a campaign of violence and terror against the Socialist and Communist parties and their supporters. In power, Mussolini created the corporate state, which presented Fascism as a radical alternative to laissez-faire capitalism. The corporations were industrial bodies consisting of the trade union and employers’ organisation for a particular industry or sector of the economy. Parliament was replaced by a Council of Corporations. Each corporation sent three delegates – one from the union, one from the employer’s organisation and one from the Fascist party to represent ‘the people’. It was partly based on Syndicalism, a form of Anarchism that seeks to replace the capitalist state by a system in which industry is owned and managed by the workers themselves through their trade unions. Mussolini called his system, ‘National Syndicalism’. Several of the architects of the corporative state were former syndicalists, like Pannunzio and Michele Bianchi.

A similar system had also already been advocated by Alfredo Rocco and the Italian Nationalist Association, representing the interests of the extreme Right-wing industrialists. Their programme included state-organised cartels, and single, state-controlled union, and the destruction of the political role of Socialist party. Under the Fascist regime, strikes were forbidden and a special system of Labour Courts was set up to settle industrial disputes. Although the Fascists claimed to have solved the conflict between capital and labour, the reality was that the unions were under the strict control of the state, which favoured the industrialists and employers. Pannunzio did argue for a more radical corporate system, in which the corporations would take over the direct running of the economy, which would lead to the erosion of the differences between capital and labour and transcend private industry. His plan was, however, attacked by the industrialists and the Fascist party as ‘Bolshevism’. Noel O’Sullivan, in his book, Fascism, suggests that the corporate state was never more than half-hearted, and had been set up by Mussolini to suggest that his regime was based on more than brute force.

Radical Anti-Capitalism and the Salo Republic

After he was ousted from power, Mussolini established a Fascist rump state, the Italian Social Republic, under German control around Salo in the north of Italy. In his constitution for the new state, il Duce declared that he was going to smash capitalist plutocracy, and make labour the ‘indestructible basis’ of the state. There were to be workers’ councils, profit-sharing, social housing and land reform. He also nationalised some of the larger industries. It’s questionable how serious these anti-capitalist measures were, as the Salo republic and its leader were nothing more than German puppets.

Fascism and the Right to Private Property

After the War, the British Fascist leader, Oswald Mosley, initially supported a pan-European corporate state. However, in his 1968 autobiography, My Life, he rejects the corporate state as too cumbersome. He advocated instead a form of the prices and incomes policy, while promising to protect and support private industry. Trade unions would still be permitted, but would be confined to managing the welfare system.

Despite advocating a strong and economically powerful state, Fascism has generally aimed to protect private industry and property, within certain limits. Article 8 of the Constitution of Fiume, the proto-Fascist state established by the poet Gabriele D’Annunzio, guaranteed ‘the enjoyment of property legitimately obtained’, as well as other features of liberal democracies, such as sickness and infirmity benefits, as well as assistance for the involuntarily unemployed. Mosley, in his answer to Question 42: Do you believe in Private Enterprise? in his book Mosley: Right or Wrong? (London: Lion Books 1961) made it very clearly that it had his full support:

Yes, certainly. Private enterprise must always be the main motive of the economy. Most men work for themselves and their families, and want to do so in freedom … All men and women should have freedom to live and work as they like, and to enjoy the fruits of their labour in freedom and peace without interference or robbery by the state or vested interest. We must reduce taxation in order to prevent the present interference and robbery by the state. But we must also have strong government to protect the individual against interference and robbery by vested interest, monopoly, etc. (pp. 58-9).

Fascism as Neither Socialism Nor Capitalism

Although they ally with the Right, Fascist regimes have also presented themselves as being a ‘Third World Alternative’ between Socialism and capitalism, in which private industry is retained but made to act socially in the interests of the state. One Fascist slogan was ‘neither left nor right, but forwards!’ In the 1980s there was a scandal in Germany when it was found that the German Liberal party, the Freie Demokraten, had been infiltrated by Neo-Nazis.

Origins of Fascism in Pre-WW I Conservative Elites

Despite this, historians such as Richard Thurlough in his Fascism in Britain, 1918-86, have seen the origin of Fascism in the radicalisation of agrarian elites against modernity and the threat of a radical working class. British Fascism had its roots in pre-First World War Die-Hard Conservatism, which wished to emulate some of the welfare successes of Bismarck’s Germany as part of an efficiency campaign to strengthen the British Empire, a policy which necessarily also included military expansion.

Thus, while Fascism does indeed contain genuinely revolutionary elements, it is not Socialist and in practice sides with the Right and traditional Conservatives against the Left.

Daniel Hannan and the ‘Left-Wing’ Front National

Daniel Hannan, however, sees the Fascism as a form of Socialism. In his column in today’s Telegraph covering the electoral gains made by Marine le Pen’s Front National, he describes the party as moving in a left-ward direction. He writes

It is important to understand that Marine Le Pen positioned herself to the Left of the UMP and, at least on economics, arguably to the Left of the Socialists. She railed against capitalism and globalisation, called for higher expenditure, and supported state-run energy, healthcare, education, transport and financial services. Where her father used to complain about welfare scroungers, she wants a more generous range of entitlements. Where he used to describe his party as being of the Right, she recently told Le Monde that it was “neither Right nor Left, but founded on the opposition of the current political class, on the defence of the nation, on the rejection of ultra-capitalism and of Europe”.

Front National Programme Fascist Anti-Capitalist, but not Left-Wing

While this approach certainly looks left-wing, and is almost certainly designed to win voters from the Socialists and the Left, it does not mean that the Front National are now a Left-wing party. Le Pen fille is merely stressing the anti-capitalist element of the Fascist tradition. In fact her statement that the Front is neither Right nor Left, but founded on the opposition of the current political class, on the defence of the nation, on the rejection of ultra-capitalism’ could be taken as a general statement of Fascist ideology, with the possible exception of opposition to Europe. And it’s important to note here that she rejects ‘ultra-capitalism’, not capitalism itself.

How serious the Front National actually is about this ostensibly left-wing programme is moot. Mussolini’s original Fascist programme was little different from that of the radical Socialists and Syndicalists, but he soon rejected it in order to gain Conservative support. Hitler also made little effort to implement the Socialist parts of the 1926 Fascist programme for the same tactical and ideological reasons. And the Tricolour Flame of Berlusconi’s former coalition, led by Gianfranco Fini, is a ‘post-Fascist’, centre Right party.

Front National Voters also Rejecting Neoliberalism, Not Just French Political Class

Apart from characterising the Front National as now rather left-wing, Hannan’s view of the victory is also flawed. He sees it as a rejection by the French people of the traditional political class due to the country’s economic problems – three million unemployed, high taxation and crippling strikes. But this doesn’t seem borne out by the Front’s tactics. If they were genuinely seeking to reject Socialism, rather than the Socialist party, then Le Pen would have no need to advance a Socialistic political programme. It instead looks like Le Pen is trying to win working class voters alienated by the political class’ support for the EU and its international, Neoliberal economic and social policies, as well as hostility to immigration. And if the French electorate were rejecting Socialism, then they could simply vote for the UMP, or simply give up voting and turn inwards into apathy and cynicism, as in Britain. The UMP have made some gains, but it looks like many of them are responding to Le Pen’s attack on the EU, its open borders and Neoliberalism.

Hannan is, however, a man of the Tory extreme Right. He’s also an opponent of the EU, but strongly supports Neoliberalism, including loudly calling for the privatisation of the NHS. He thus doesn’t want to admit that the Front’s gains may show a positive rejection of laissez-faire international capitalism, as well as the political class advocating it.

Review: Tom Schuller, Democracy at Work

July 8, 2013

Schuller Book

Following on from Mike Sivier’s post on the Lib Dem’s promotion of employee ownership, there have been plans to increase worker’s participation in management for a long time. Apart from the 19th century co-operative movement, there was the League for Democratic Control at about the time of the First World War. The Labour Party formulated a number of suggestions for putting it into practice in the 1980s, which, if they had been passed, would have been the most radical in Europe. Industrial democracy has also been the subject of a number of books, one of which is Tom Schuller’s Democracy at Work (Oxford: OUP 1985). This begins with this quotation from the Liberal Industrial Inquiry of 1928.:

‘While as a citizen he (the thinking workman) has an equal share in determining the most momentous issues, about which he may know very little, his opinion is seldom asked or considered, and he has practically no voice in determining the conditions of his daily life, except in so far as trade-union action has secured it. Indeed, where management is inefficient and autocratic he is frequently compelled to watch waste and mistakes of which he is perfectly well aware without any right of intervention whatever. And this, despite the fact that when these errors issue in diminished business for the firm concerned, he, and not the management, will be the first to suffer by short-time working or complete loss of employment’.

In the introduction, Schuller also states that

‘this book’s premise is that we should be actively exploring ways of achieving a more equitable distribution of power at the workplace, but it does not engage directly with the broader currents of political discourse. It contains no concise summaries of relevant theoretical approaches and few descriptive accounts of participation initiatives or systems. Its aim is modest; to provide a relatively straightforward way of looking both at the general theme of worker participation and at specific issues which have contemporary significance, emphasizing meanwhile that the contours of the debate are undergoing constant change’. (3).

Other sections in the Introduction discuss Participation: the Moving Target; the extension of collective bargaining, examining areas, organisational levels, and timing; Beyond, besides, and between bargaining: dimensions of participation; ‘Industrial’ and ‘Economic’ Democracy; and has a conclusion. It then goes on to the following chapters:

1. The Changing Profile of Work, with sections on workforce profile; the union movement; and organizational structure.

2. Conflicts and Powers, which has sections on power. This section in turn analyses the various types of power, financial, legislative, formal position, expertise, market position, technology, state policy and ideology.

Chapter 3 is entitled, Stages, Cycles, and Rhythms, and has sections on evolution by stages, cycles in democratization, rhythms in the promotion and suppression of industrial democracy, economic activity and employment, the role of government, organized labour, and social trends.

Chapter 4 is on Self-Ownership and Self-Control: Financial Participation and Economic Democracy, comprising sections on ownership and control and individual financial participation: profit-sharing. This section in turn has brief discussions on profit-based financial participation, executive share options or incentives and savings-related schemes. The next section in this chapter is on internal democratisation in the form of worker’s co-operatives. This discusses issues of autonomy, internal democracy, and models of democratic experience. After this there are sections on collective financial participation in wage-earner funds and a conclusion.

Chapter 5 is on Occupational welfare and capital control: participation in the management of pension schemes. This has sections on the growth of participation, incorporation and excorporation, and employee trustees and the control of capital. This last section also briefly discusses the roles of active shareholders, investment policy in individual funds and collective action.

Chapter 6 is on changes to the work environment, relating to issues of health and safety. This has sections on conceptual trends in health and safety, the effect of participation in joint health and safety committees, and consultation and participations, which Schuller describes as a process of ‘fuzzy oscillation’.

Chapter 7 is on Political and Industrial Democracy. The has sections on the way the Whitley Councils in the Civil Service transformed the workers in this sector from civil servants to public employees; the management of public servants; senior officials and formal occupational participation; and professional determinism, which examines how far the nature of the Civil Service as a profession meant that it already had an in-built measure of employee control.

Chapter 8 is on Worker Directors, referring to the Bullock Report of the 1970s and the issue of workers’ representatives in the boardroom. This has sections on the origin of the move towards board-level representation, board functions, and the process of representation at board level.

Chapter 9 is on the division of labour and the role of skill in determining this. This also has sections on intrinsic skills in technology and the labour process, instrumental skills and segmentation, occupationalism and the sexual division of labour; and participative skills, and the process of learning how to represent.

The last chapter is on collective interests and the dimensions of solidarity.

The book thus provides an overview of some the issues involved in industrial democracy and worker participation and representation. One reason, perhaps, for the lack of concrete examples of legislation for worker’s control is that the author considers that the boundaries and issues involved are always changing. Schuller suggests that some of these issues may only be solved by the workers themselves through their own practical experience. The book concludes that ‘perhaps the strongest rationale for worker participation is that it provides opportunities for people to learn from each other by formulating issues, and maybe even solving them, through some form of collective enterprise.