Posts Tagged ‘State Investment’

Does May’s Gibe about ‘Planet Venezuela’ Indicate She Wants Economic Warfare Against Corbyn Government?

October 15, 2017

Last week at Prime Minister’s Questions, Jeremy Corbyn asked Theresa May what planet she was on. Quick as flash, she came out with an answer ten minutes later, as Ian Hislop joked on Friday’s Have I Got News For You. She struck back at Corbyn, claiming he and John McDonnell were on ‘Planet Venezuela’.

Maduro’s socialist government in the South American country is in crisis, as there are severe shortages of food and other goods in the shops, and rising discontent. Protests are breaking out all over the country. In the face of this unrest, the government has become increasingly authoritarian, redrafting the constitution in order to give itself new power to suppress the opposition.

The crisis hitting the country shows very much the attitude of May and her wretched party towards socialism. Creating any kind of welfare state, including state healthcare for the poor, is uneconomic and unsustainable. Only free market capitalism in a low wage economy brings prosperity. Well, it does to the upper 25 per cent of the population. The rest of the country is much worse, but a bit of tinkering with the statistics usually works to give the impression the Tories want us all to believe that everyone’s more prosperous and doing well, even when it’s very obvious they aren’t. And if that fails, you can always demonise the poor themselves as feckless, lazy, wasteful and so on.

In fact, the argument ad Venezuelam isn’t a good one, and there are already videos up on YouTube attacking it. Bad Mouse productions has one up, though I haven’t looked at it.

But there’s another dimension to the Venezuelan crisis. I’ve read elsewhere – possibly on William Blum’s blog, but may be also on Counterpunch – that the Venezuelan government is the target of a concerted campaign by the Americans and the multinationals to overthrow it. The American government has traditionally hated and sought to overthrow every liberal or left-wing government in Central and South America as a threat to American hegemony – the infamous Monroe Doctrine – and the corporate interests of the American big businesses that have dominated the continent’s economy. Two of the most notable instances were the coups against Jacobo Arbenz in Guatemala in 1958, and the 1975 coup against Salvador Allende in Chile. Both were democratically elected socialist politicians, overthrown with American aid and replaced with brutal Fascist dictators.

America has been trying to overthrow the Venezuelan government for some time, not least because Venezuela last week came of the petrodollar. If more countries do this, it will make it impossible for America to service its national debt, and the economic crisis hitting the country will get much worse.
And aiding the American government are the multinationals, which are deliberately withholding food and other goods in order to drive prices up.

And Venezuela may not be the only country to suffer such economic warfare by big business. Britain under a Corbyn government may be next. Also last week, at the Tory conference, the Chancellor of the Exchequer, Philip Hammond, urged business leaders to do everything they could ‘to resist’ a Labour government. Mike reported this on his blog, and commented that Hammond should be sacked for ‘unparliamentary conduct’. He had urged proprietors and managers to break the fiduciary trust between themselves, their shareholders, and the companies they run. Instead of managing them in the interests of the firms themselves, he was asking them to manage them for the political benefit of the Tories.

I commented on Hammond’s remarks that it also shows the hypocrisy by the Tories towards political activism. When the unions do it, and go on strike against a Tory government, or simply to protect the interests of their members, the Tories and big business start screaming that it’s ‘subversion’. When they do it, it’s all right. It’s simply the captains of industry working to save capitalism. Except in this case, capitalism isn’t under threat. Corbyn is simply advocating a mixed economy and a stronger welfare state. This is very far from the total nationalisation demanded by the Communist and Trotskyist parties. And business would prosper through greater state investment stimulating the economy, and the poor being given higher wages to purchase their goods.

But this isn’t what big business wants. It wants a workforce of crushed, low wage workers kept in something close to debt peonage, which they can exploit and discard at whim. Which is very much the policy of the Tory party under Cameron and May.

Hammond wanted industry to work towards overthrowing a Corbyn government. And big business is very definitely trying to overthrow Venezuela’s socialist government. May’s comment about Corbyn and McDonnell living on Planet Venezuela might be an innocent reply, or it could indicate that she’s also very aware of the real situation over there. And like her chancellor, she wants it done to Britain if Labour gets in.

Philip Hammond Urges Economic Sabotage to Stop Labour Coming to Power

October 7, 2017

On Thursday Mike put up another article, which also shows the Tories’ massive contempt for British parliamentary democracy. Paul Mason of the Politico website revealed that Hammond had told an assembled audience of CEOs and other industrialists at a £400 a head dinner that they should

“back the Tories. “I know you don’t engage in party political activity but I expect you to face up to when the principles that undermine our economic structure and your business are placed at risk,” Hammond said. “You have to decide to combat this menace or collaborate with it and let it get into power.”

Mr. Mason goes on to state that in private, Hammond’s language is even more extreme, presenting Labour under Jeremy Corbyn as a threat to capitalism. As Mike points out, it isn’t. It’s a Social Democratic party. This means it promotes a mixed economy along with a welfare state and government spending in the economy as a means of stimulating economic growth and development. It has not advocated total nationalization since the Second World War. And in the governments it formed before then, in practice its economic policies were entirely orthodox. This undoubtedly contributed to the party’s defeat as voters were disappointed by its failure to pursue a more radical programme to tackle poverty and unemployment.

Mason makes the point that Hammond risks being sacked for ‘unparliamentary conduct’, as his speech has urged captains of industry to break their bond of fiduciary trust. This is notion that they will act for the benefit of their companies and shareholders, regardless of their own personal politics.

Mike makes the point that it’s moot whether the issue of fiduciary trust has ever carried much weight amongst business management. Certainly sections of industry, particularly the financial sector, have been hostile to Labour and sought to undermine Labour governments.

Mr. Mason and Mike also point out that historically the economy has always benefited under Labour. Mason states that Labour will stabilize and re-invigorate the private sector. And Mike says, quite rightly, that the Labour government of 1945-51 led to over three decades of economic growth and prosperity in the UK. A period that only came to an end when Thatcher became PM in 1979.

And Mason also warns that Hammond may have made even more extreme claims in private to MI5.

http://voxpoliticalonline.com/2017/10/05/now-philip-hammond-is-bidding-to-be-sacked-for-unparliamentary-behaviour/

You therefore start to wonder if Hammond is a serious, democratic politician, or a barking mad Fascist sympathizer, who’s read too much Ayn Rand. He clearly thinks of himself as John Galt, the hero of her novel, Atlas Shrugs, who joins a strike by senior management to bring down a despotic socialist government. By implication, this also shows Hammond’s complete support for the poor and those on welfare. For Ayn Rand, only business leaders, artists and intellectuals matters. Ordinary working people, including and especially those supported by welfare, were just ‘moochers’ and ‘takers’. Which is ironic, because Rand was one of them. She spent some time living on social security.

As for Hammon, he has the same attitude as the industrialists and upper classes of the various South American and other developing nations, who as soon as a vaguely left-wing government came to power immediately yelled ‘Communism!’ as fast and as hard as they could, and then started plotting how they could overthrow it. This included backing military coups, supported by the Americans.

And you can guess the kind of extremism he may have been preaching to MI5 and the security services by reading Ken Livingstone’s book, Livingstone’s Labour, and Francis Wheen’s book on the 1970s, Strange Days. During the crisis hit period of the Labour minority government of 1975-6, various businessmen, and even the Times, were urging the army to organize a coup to overthrow the government. Livingstone describes how there were plans in place to intern left-wing activists, including journos, in political camps in places like the Hebrides.

It also shows the Tories’ own immense hypocrisy. They and their lickspittles in the press have been the first to denounce working class unrest as a threat to democracy, including strike action by trade unionists. You can find a video on YouTube by one person, who clearly takes John McDonnell’s demand for coordinated strike action and protests as a literal threat to democracy. McDonnell states that this type of activism has previously been called ‘insurrection’, a term he prefers. Which for that YouTuber makes McDonnell and Corbyn members of the revolutionary left.

McDonnell’s language is extreme, but it isn’t quite the language of revolution. He has not called for people to take up arms against their government. And when you think how this government is treating the poor, the unemployed and the ordinary working people of this country, you can see McDonnell’s point, even if you don’t agree with it.

And right-wing organisations have done their best to stamp out trade unions and bar the members from proper employment as true subversives. Way back in the 1990s there was a documentary uncovering the sordid history and activities of the Economic League. This was an organization that compiled and circulated blacklists of trade union members and those of left-wing organisations to employers. It’s full name was the ‘Economic League against Industrial Subversion’. It was started in the 1930s or so. It suffered a crisis after it was exposed, and found itself fending off awkward questions by people asking if they were on its lists after they were repeatedly turned down for work. In the 1990s it was succeeded by another bunch, Hakluyt, who, along with their predecessor, appeared in Lobster.

This shows very clearly the hypocrisy of the Tories and the businessmen, who support them. When it’s the left and trade unionists planning strikes and protests against them, it’s a horrendous plot to overthrow capitalism and little short of treason. But it’s fine and dandy when they’re planning to subvert democracy by overthrowing an elected social democratic government.

Hammond’s a danger to democracy. His ideal would be for Britain to be a banana republic, in which the peons have no rights, and the government is either dominated by a single party, or at best the political system as a number, none of which represents real hope or radical change for its working people.

He should not be in government. Get him out.