Posts Tagged ‘Retail’

Secular Talk: Economic Policy Group Shows ‘Welfare Queens’ Have Little Factual Basis

February 7, 2016

This is another excellent political snippet from Secular Talk. In this video, Kyle Kulinski discusses the findings of the Economic Policy Institute, as reported in the International Business Times, that ‘welfare queens’ don’t really exist. ‘Welfare queens’ was the term given by Reagan to lazy, unemployed women, who didn’t want to work and just scrounged off welfare. The Institute’s study shows that most of the people on welfare are the working poor, people in work whose wages don’t cover their basic needs. The report states that

* 2/3 of all people on needs-based public assistance are either working, or have a family member who’s working.

* About half of all recipients of public assistance are working full time.

The report states outright that indolence and laziness aren’t pushing up the welfare bills. Low pay is. And the reports goes on to say that massive bonuses and pay is awarded to corporate executives, it’s appropriate to ask whether corporations are passing their societal responsibilities to tax payers.

* Nearly half of all workers in the forestry, fishing and hunting sectors receive help of some kind.

* This is also true of a 1/3 of those in retail, recreation, entertainment, accommodation and food sector.

Kulinski makes the point that the solution is to the raise the minimum wage. He states that many Republicans actually do want the minimum wage to be raised. He attacks the Republicans, who want to close down welfare programmes, arguing that this would make America Somalia, and force people to starve. He also makes it very clear that he has no time for hypocritical Republicans, who say they love Jesus, but don’t want to put Christ’s concern for the poor and excluded into effect. If America were to raise the minimum wage to a living wage, $45 billion in taxes would be saved. Kulinski points out that this is because workers, when they can’t make enough to live on, turn to the state safety net, which is provided by the taxpayer. Thus, if you pay people a living wage, the Republicans could cut the welfare bill, including Medicaid. All you have to do is make Walmart pay their workers more. He argues that Walmart would be able to afford the extra $2 an hour paid to people, and that the cost passed on to the public would at most be 8c more. This would not stop people going to Walmart.

Kulinski concludes that the system now works by making a miniscule percentage extremely rich, who then give crumbs to everyone else. They have to go on welfare to make ends meet, but the corporations have bought congress, so it looks in the other direction. Kulinski states in very forthright terms that this must go.

The show also has some of the cartoons showing the hypocritical attitude towards poor women. When they’re pregnant, the Republicans are desperate not to let them abort the child. When they have the child, the Republicans are hurling abuse and stating they should never have got pregnant in the first place. And there’s a cartoon of a fat cat businessman on a mountain of money accusing a starving worker of being greedy.

This study really should surprise no one. It’s been that way for about twenty years. At the end of the 1990s the Financial Times, then a Liberal newspaper, stated that the vast majority of the poor across the Developed World were working. This is the case for America, Australasia and Europe. They reviewed a programme on the radio about poverty in New Zealand, which showed the problems working people in the land of the Kiwi and the All Blacks had keeping body and soul together. Same as hard-workin’ folks in the Appalachians. And there has been report after report, study after study, showing it in Britain.

And it’s fairly clear that, despite the vilification of people on welfare as benefit frauds and scroungers, aIDS, Cameron and Osbo are very aware of this. No, ‘aIDS’ isn’t a spelling mistake. I’ve decided to call the ‘Gentleman Ranker’ aIDS, because like that foul disease he’s determined to kill people, and spread his vile poison throughout society. But back to the main point. IDS and the others have passed regulations stipulating that if you’re receiving benefit for low pay, you get a phone from your ‘Job Coach’ encouraging you to get a better paid job. In order to cut the welfare bill, of course. It’s a tacit acknowledgement that they know the majority of the poor in this country are working, and aren’t being paid a proper, living wage. But they really don’t want to admit that, as the free market is supposed to make sure that everyone gets what they deserve, in a rising tide that lifts all boats due to trickle down economics. This was rubbish when Reagan and Thatcher spouted it. Hunter S. Thompson had a go at it in Generation of Swine. But they’re still going on as if it were all true, thirty years later.

There’s only one sure way to tackle in work poverty, and that is to demand the minimum wage be raised. And to vote out the people, who are blocking this. Like AIDS Ian Duncan Smith.

Gorbachev and the Introduction of Co-operatives in Perestroika

May 7, 2014

Aganbegyan Pic

Abel Aganbegyan, leading economist of Perestroika

One of the ways the last Soviet leader, Mikhail Gorbachev, attempted to reinvigorate the country’s economy was through the establishment and transformation of state industries into workers’ co-operatives. They were also intended to create jobs for workers, who had been made unemployed through Gorby’s other reforms aimed at making the country’s industries more efficient. This started with 1986 Law on Economic Activity, which permitted a very limited amount of private enterprise. The only people permitted to work for themselves, either as self-employed or in co-operatives, were pensioners, students and employees working after hours. The materials they used had to be surplus to those of the state industries. The co-ops were restricted to a list of 29 permitted activities, such as taxi-driving and dress-making. This effectively legalised what many Russians were already doing any way. In March 1988 the restrictions were further lifted, so that the co-ops were allowed to pay staff and do business with foreign nationals. A further law in August 1990 allowed the co-ops near total freedom. By the end of 1990 there were nearly 260,000 co-operatives employing 6.2 million people, including those with other jobs. They produced 70 billion roubles’ worth of goods and services. 10 billion roubles were for the Soviet population. The co-ops were originally envisaged as small firms, but three-fifths of the new enterprises were in the former large state industries.

However, the impact of the co-operatives on the retail market was much smaller. Co-operatively managed garages, home decoration, household repairs, tailoring and dressmaking, catering, small manufacturing and retail only accounted for 2 per cent of the products bought by Russian consumers. Many of the new co-operatives also became more-or-less ordinary capitalist industries by a law which allowed profits to be drawn on investment, rather than the amount of work put in. See ‘Co-operative’ in Andrew Wilson and Nina Bachkatov, Russia Revised: An Alphabetical Key to the Soviet Collapse and the New Republics (London: Andre Deutsch 1992) pp. 49-50.

Abel Aganbegyan, the Soviet economist and chief architect of perestroika, describes the reasons behind the establishment of the co-operatives and the experiments in setting up the system in his book, The Challenge: Economics of Perestroika (London: Hutchinson 1988) pp. 196-9. He states that they were set up to give Soviet workers a sense of responsibility as co-owners, describes the co-operative’s management system, including the election of brigade officials and directors. There was even a nationwide competition to find the new manager for the Riga car factory, organised by Komsomolskaya Pravda, the newspaper of the party’s youth group. Describing the election of managers and officials, he writes:

The working collective carries out its functions both directly at meetings of the whole working collective and through democratically elected Councils to represent its interests. The decision to broaden the rights of the working collective was not taken dogmatically, but out on the basis of generalisation of the experience accumulated at individual enterprises in the Soviet Union. At the Kaluga Turbine Factory, for example, a council of brigade leaders, representing the working collective’s interests, has been operating effectively for many years. The fact is that here collective labour brigades were genuinely organised. Each brigade elects its brigade leader, so that the brigade leaders’ council is a democratically elected body. The factory has major productive and social results to its credit and, moreover, the long-term development policy of the enterprise is in the main the responsibility of the brigade leaders’ council.

For the first time working collectives are being given extensive rights such as the right to elect the manager. This affects the election of managers of all ranks: the brigade elects the brigadier, the workers and section foremen the section head, the working collective of the factory elects the director of the factory, and the whole working collective of the association elects the General Director. These elections are planned as a creative process. They must be preceded by public competition for managerial posts, with a preliminary selection made by, say, the working council. Each candidate then meets with the workers in the sections, departments and enterprises, attends meetings and meets with representatives of public organisations. Each candidate for the post of manager draws up a programme of action and presents it to the working collective. Secret elections then take place with votes cast for a specific person, whose particulars and potential are known, and for a definite development programme for the enterprise. (pp. 197-8).

He then proceeds to describe the election run by Komsomolskaya Pravda for the ailing Riga Car Factory.

This factory produces the RAF microbuses which gained popularity in their day, but had eventually ceased to meet the increasingly sophisticated demands as needs changed and technology developed. The factory was in a deep crisis and stopped fulfilling the plan. A new leader was needed. Under the aegis of the newspapers Komsomolskaya Pravda a nationwide competition was held for the post of director of the factory. A total of four thousand applications was received from all corners of the country and a commission was specially created composed of car construction specialists (from the Ministry of Car Industry), from the factory and from local bodies. About thirty candidates were shortlisted. They studied the factory and made their proposals for it. One the basis of a detailed examination of these more concrete data the list of candidates was further reduced to eight. They came to the factory, familiarized themselves with the work, stated their views on how to improve the situation and finally the working collective in a secret ballot selected its factory director. This turned out to be V.L. Bossert, an energetic young manager, 35 years of age, who up to them was working as the manager of the Omsk Factory, a major producer of gear boxes for the Moskvich car. The collective supported the candidacy of this new director and gave its views on his programme for the full reconstruction of the factory and the design of a new model of microbus which would be on a par with world standards. Having elected the director, the collective began to work intensively and soon fulfilled the plan. The number of claims for replacement of defective goods was reduced. The financial situation of the enterprise improved, people started to receive prizes and work motivation grew. Parallel to this, work continues on designing a new car and reconstructing the factory.

This experience has proved to be successful and it has caught on. Based on the RAF factory’s example, tens and even h7undreds of other enterprises have organised elections for directors. Success is assured wherever this is carried out not as a mere formality, but were competition is guaranteed, where time is given and conditions are created for the preparation of imaginative programmes of development for the working collective, and where people really feel they are participating in the advancement of their enterprise at management level. In discussing the question of appointment of leaders by election, we have studied attentively the experience of other socialist countries, Bulgaria and Hungary. In Hungary in particular, this democratic mechanism has been very effective. In re-election for the post of direct 8 % of former directors were voted out, but 92% had their competence at management confirmed by the collective. In this was the quality of managers has been improved. pp. 198-9).

apprentice_sir-alan_pink-pigeon

The Apprentice’s Sir Alan Sugar: Now imagine someone in overalls and work boots saying to their boss ‘You’re fired!’

The competition sounds like a radical Socialist version of Top Gear or Dragon’s Den. Certainly it would have been interesting to see Clarkson covering the election by car factory workers of their manager, all the while careering round Moscow or, in this case, Riga, while making sneering comments about the condition of the roads and Soviet era cars. As for Dragon’s Den, it might be a bit too dangerously subversive for the Dragons. After all, it turns the class system on it’s head by empowering the workers to sack incompetent bosses. Which might actually make it perfect as a kind of anti-Apprentice. After all, how many of the more pompous captains of industry, priding themselves on their ability to make ‘tough decisions’ to close down factories and throw thousands out on the streets for their profit and that of the shareholders, would welcome standing in front of committee of proles and being told ‘You’re fired’. Now that really is an idea for a TV show.

Miliband, Blair, the Financial Sector and Labour’s Rejection of the Working Class

March 27, 2014

Eye Miliband pic

Private Eye’s satirical view of Labour leader Ed Miliband from the cover of their edition for 5th -18th October 2012.

There has been increased criticism of Ed Miliband this week after an open letter signed by 28 left-wing activists was published in the Guardian criticising Miliband’s electoral strategy. Many traditional Labour supporters and voters have been increasingly alienated by Labour’s move to the Right and its policy of adopting harsh Tory policies and attitudes towards the poor. Miliband has stated that he wants to reach out to the middle classes, and this week ordered the parliamentary Labour party to vote with the government for the imposition of an overall benefit cap. Although Labour would be better by far than another Tory government after 2015, Miliband’s leadership seems to demonstrate many of the problems and attitudes of the modern political elite: very middle class, with little awareness of or sympathy for the problems and hardship experienced by the poor, the working class, the disabled, and unemployed.

Tony Blair and the Neglect of the Working Class

Much of this attitude began under New Labour with Tony Blair. Own Jones in chavs describes how the political elite have played down the existence of class in order to ignore the working class to concentrate on gaining middle class votes, quoting the politicians Jon Cruddas and Matthew Taylor, one of Blair’s aides.

Jon Cruddas is in no doubt that politicians of all colours have a vested interest in denying the existence of class. It has proved an effective way of avoiding having to address working-class concerns in favour of a small, privileged layer of the middle classes. “They devise ever more scientific methods of camping out on a very small slice of the electorate … those who are constituted as marginal voters in marginal seats.’ Working class voters were taken for granted as the ‘core vote’ who had nowhere else to go, allowing New Labour politicians to tailor their policies to privileged voters.

No New Labour politician personified this attitude more than Tony Blair. Matthew Taylor offers an interesting insight into Blair’s political approach. ‘I worked for Tony Blair, and the point about Tony is that Tony would always say when I would say to him, or other people would say to him: “What about a bit more kind of leftism in all this? What about a bit more about poverty and justice and blah blah blah? …”‘ Blair’s response was blunt, to say the least:

Tony would always say, fine, but I don’t need to worry about that, because that’s what everybody else in the Labour Party wants, and that’s what everybody else in the Cabinet wants, and that’s what Gordon [Brown] wants, and that’s kind of fine. And I’ll leave them to do that, because I know that’s how they’ll spend all their time. They don’t want to do public service reform, they don’t want to wealth creation, they’re not interested in any of that, they’ll just kind of hammer away at that agenda. My job is to appeal to the great mass of people on issues that the Labour Party generally speaking is just not interested in.

The near-obsession with ignoring working-class voters meant inflating the importance of a very small tranche of wealthy voters who were misleadingly construed as Middle England. After all, an individual in the very middle of the nation’s income scale only earns around £21,000. ‘You’re probably right that we did misportray Middle England,’ admits Matthew Taylor, ‘But that again, I’m afraid, is not just a Labour characteristic. It’s characteristic of the middle classes as a whole.’

Chavs, 100-101.

Lobster on Kinnock and the Development of New Labour

The parapolitical magazine, Lobster, has printed a number of articles analysing and critiquing Blair, New Labour and their policies. One of the most important accounts of the origins of the New Labour project is the article, ‘Contamination, The Labour Party, Nationalism and the Blairites’ by the editor, Robin Ramsay, in no. 33, Summer 1997, pp. 2-9. Ramsay views the emergence of what later become known as New Labour in Neil Kinnock’s change of policies following their 1987 election defeat. Kinnock had previously been very left-wing. In his book Making Our Way, according to Ramsay ‘had come close to a radical, anti-finance capital, anti-overseas lobby, pro-domestic economic policy’. This changed after the election defeat, when Kinnock and his economic advisor, John Eatwell, enthusiastically embraced the free market and EEC. He notes that when a group under Bryan Gould produced the report, Meet the Challenge, Make the Change, Eatwell, Gordon Brown and Tony Blair objected to the sections recommending a return to national ownership.

An Economic Secretariat was created under John Smith, including advisors from the City of London. Kinnock and Smith became pro-EEC and were convinced that Britain should join the Exchange Rate Mechanism. At a Shadow Cabinet meeting on the 16th November 1989, the Labour leadership followed Smith’s advice that the state could not stimulate the economy, either through the nationalised industries or local councils, because this was prohibited under the rules of the ERM. The Labour Party thus launched the ‘prawn cocktail offensive’ to win over the City of London, in which John Smith and Mo Mowlam assured the bankers that they would not attempt to limit their profits any more than Thatcher had. This resulted in the establishment and expansion of a series of groups creating links between the Labour party and the financial sector. These included the Smithfield discussion group, the Labour Finance and Industry Group, and the Industry Forum. The Labour Finance and Industry group represented the interests of the domestic sector, while the Industry Forum and the Norton group presented the interests of the overseas lobby – the City of London and the multi-nationals.

Transatlantic Background of New Labour Leadership

Blair, Brown, Balls, David Miliband and the rest of ‘New Labour’ all had extensive links to America and American interests. Gordon Brown, for example, used to spend his summer holidays in the library of Harvard University. Blair went on a trip to America, which was part of a scheme sponsored by the US government to aspiring young British MPs. David Miliband, took an MA at MIT, Ed Balls studied at Harvard and, before he joined Brown, was about the join the World Bank. As for Mandelson, in his final year at Oxford University he became Chair of the British Youth Council, which had originally been set up in the 1950s by the CIA and SIS as the World Assembly of Youth in order to combat the Soviet youth fronts. Ramsay states

In short, the people round Blair are all linked to the United States, or the British foreign policy establishment, whose chief aim, since the end of the Second World War, has been to preserve the Anglo-American ‘special relationship’ to compensate for long-term economic decline. The Blair’ group’s orientation is overseas: this is the territory of the Foreign Office and its think tank satellites like the Royal Institute of International Affairs – the political and propaganda apparatus of the overseas lobby. (p.7).

New Labour and the City of London and Overseas Lobby

Blair himself also announced before the annual conference of Murdoch’s News Corp that the Americans had also insisted that Britain should adopt a more pro-European policy. Due to the massive expansion in overseas investment under Thatcher, Britain was second only to America in this regard and so looked to American political and military power and influence to protect those interests. The result was an increase in support for Labour over the Tories in the London establishment over the Conservatives. The result was a complete reversal of attitude towards the City of London. Whereas the Labour report, Meet the Challenge Make the Change: A New Agenda for Britain had been highly critical of the influence of City of London, the latter was held up as a great success seven years later by Mandelson and Roger Liddle, in their book, The Blair Revolution. Liddle, incidentally, now writes for the Spectator.

Under Bryan Gould, the Labour report had stated of the City’s destructive dominance over the British economy that

‘The concentration of power and wealth in the city of London is the major cause of Britain’s economic problems’… and that Britain’s economic policy had for too long been dominated by City values and run in the interests of those who have assets rather than those who produce.

The Blair Revolution, however, described the City of London and the new, de-industrialised British economy in glowing terms.

Britain can boast of some notable economic strengths – for example, the resilience and high internationalisation of our top companies, our strong industries like pharmaceuticals, aerospace, retailing and media; the pre-eminence of the City of London.

Consequence of City Influence: Everywhere else in Britain Suffers

Ramsay goes on to describe what this change of attitude actually means for everyone else in Britain outside the elite financial circle of the metropolis.

That the British economy policy is ‘outward-looking, internationalist and committed to free and open trade’, in Blair’s words, is precisely the problem from which non-metropolitan Britain has suffered. These are the values of the overseas lobby, the Home Counties financial elite, people for whom Bradford or Norwich, let alone Glasgow and Cardiff, are far away places about which they know nothing – and care about as much.

British politics has been stood on its head. The Conservative Party, traditionally the party of financial and overseas interests, has been replaced in that role by Labour. Instructed by its new friends in the City, Labour has become the party of financial- that is pre-Keynsian – orthodoxy. Gordon Brown looks determined to re-enact the role of Philip Snowden in 1931. The last three years of the Major regime saw Chancellor Kenneth Clarke running the kind of orthodox Keynesian policy – increasing government deficits in response to the recession – which Labour, under Wilson or Callaghan, would have run, but which is anathema to ‘Iron Chancellor’ Brown. (p. 8).

Miliband’s Apparent Lack of Interest in Poverty and Working Class due to New Labour

Ramsay notes the way Labour adopted the rhetoric of ‘One Nation’ Toryism and appeals to British patriotism. This was to disguise their promotion of the overseas economy at the expense of domestic industry. He concludes

The Blair faction will fail. ‘One nation’ rhetoric, continuing membership of the institutions of the New World Order – which is essentially the same old American post-war order minus the Soviet challenge – and leaving economic policy to the overseas sector won’t affect the real structural problems of the British economy. When it does finally dawn on the Parliamentary Labour Party that it won’t work, they will have to look elsewhere. The wrong turning was taken at the point when Bryan Gould was defeated by John Smith and the party leadership decided to surrender to the overseas lobby. To that disjunction it will have to return. (p. 9).

This is the origin of New Labour and the background to Miliband’s continuing attempts to appeal to the Middle Class and the financial elite at the expense of the poor and working class. And it needs to change urgently. Even so, a Labour government would be far preferable to another Tory government. If nothing else, Labour have said that they will stop the Tories’ privatisation of the NHS. But for Labour truly to start tackling poverty and unemployment in this country, it will have to jettison much of the New Labour project and start returning to its working class roots.