Posts Tagged ‘Stock Market’

The Nazis, Capitalism and Privatisation

November 9, 2017

One of the tactics the Right uses to try to discredit socialism is to claim that the Nazis were socialist, based largely on their name and the selective use of quotes from Hitler and other members of the Nazi party.

This claim has been repeatedly attacked and refuted, but nevertheless continues to be made.

In the video below, Jason Unruhe of Maoist Rebel News also refutes the argument that the Nazis were socialists by looking at the economic evidence and the Nazis’ own policy of privatising state-owned industries and enterprises. He puts up several graphs showing how the stock market rose under the Nazis, as did the amount of money going to private industry. Indeed, this evidence shows that the Nazis were actually more successful at managing capitalism than the democratic, laissez-faire capitalist countries of Britain and the US.

Then there is the evidence from the Nazis’ own policy towards industry. He cites a paper by Germa Bel in the Economic History Review, entitled ‘Against the Mainstream: Nazi Privatisation in 1930s Germany’. In the abstract summarising the contents of the article, Bel states

In the mid-1930s, the Nazi regime transferred public ownership to the private sector. In doing so, they went against the mainstream trends in Western capitalistic countries, none of which systematically reprivatized firms during the 1930s.

He goes further, and makes the point that the term ‘privatisation’ actually comes from Nazi Germany. It’s the English form of the German term reprivatisierung.

I am very definitely not a Maoist, and have nothing but contempt for the Great Helmsman, whose Cultural Revolution led to the deaths of 60 million Chinese in the famines and repression that followed, and unleashed a wave of horrific vandalism against this vast, ancient countries traditional culture and its priceless antiquities and art treasures.

But Unruhe has clearly done his research, and is absolutely correct about the capitalist nature of German industry under the Third Reich. Robert A. Brady, in his The Spirit and Structure of German Fascism (London: Victor Gollancz 1937) also described and commented on the privatisation of industry under the Nazis.

He states that the organs set up by the Nazis to ‘coordinate’ the industrial and agricultural sectors were specifically forbidden from giving any advantages to the state sector rather than private industry, and that state industry was handed over to private industrialists.

The same picture holds for the relations between the National Economic Chamber and the organs of local government. As Frielinghaus has put it, “The new structure of economics recognises no differences between public and private economic activity….” Not only are representatives of the various local governments to be found on both the national and regional organs of the National Economic Chamber, but it is even true that local government is co-ordinated to the end that economic activities pursued by them shall enjoy no non-economic advantages over private enterprise.

The literature on this point is perfectly explicit, being of a nature with which the general American public is familiar through numerous utterances of business leaders on the “dangers of government competition with private enterprise.” Under pressure of this sort the Reich government and many of its subsidiary bodies have begun to dispose of their properties to private enterprise or to cease “competition” with private enterprise where no properties are at stake. Thus the Reich, the states and the communes have already disposed of much of the holdings in the iron and steel industry (notably the United Steel Works), coal and electric power. Similarly, support is being withdrawn for loans to individuals wishing to construct private dwellings wherever private enterprise can possibly make any money out the transactions. True, the government has been expanding its activities in some directions, but mainly where there is no talk of “competition with private enterprise”, and with an eye to providing business men with effective guarantees against losses. (Pp. 291-2).

There is a serious academic debate over how far Fascism – both in its Nazi and Italian versions – was genuinely anti-Socialist and anti-capitalist. Mussolini started off as a radical Socialist, before breaking with the socialists over Italian intervention in the First World War. He then moved further to the right, allying with Italian big business and agricultural elites to smash the socialist workers’ and peasants’ organisations, and setting up his own trade unions to control the Italian workforce in the interests of Italian capital.

Ditto the Nazis, who banned the reformist socialist SPD – the German equivalent of the Labour party – and the Communist party, and destroyed the German trade unions. Their role was then taken over by the Labour Front, which also acted to control the workforces in the interests of capital and management.

As for Hitler’s use of the term ‘socialist’ and the incorporation of the colour red, with its socialist overtones, into the Nazi flag, Hitler stated that this was to steal some of the attraction of the genuine socialist left. See the passage on this in Joachim C. Fest’s biography of the dictator. The incorporation of the word ‘socialist’ into the Nazi party’s name was highly controversial, and resisted by many of the party’s founders, as they were very definitely anti-socialist.

Brady himself comments on how the Nazis’ appropriation of the term ‘socialist’ is opportunistic, and disguises the real capitalist nature of the economy. He writes

the principle of “self-management” does appear to allow the business men to do pretty much what they wish. The cartels and market organisations remain, and have, in fact, been considerably strengthened in many cases. These are the most important organisations from the point of view of profits. The larger machinery is, as previously indicated, primarily designed to co-ordinate police on threats to the underlying tenets of the capitalistic system. The fact that the new system is called “socialism,” and that “capitalism” has been repudiated, does not detract from this generalisation in the slightest. The changes made to such as worry compilers of dictionaries and experts in etymology, not economists. For the realities of “capitalism” has been substituted the word “socialism”; for the realities of “socialism” has been substituted the word “Marxism”; “Marxism” has,, then, been completely repudiated. By reversing the word order one arrives at the truth, i.e. “socialism” in all its forms has been repudiated and capitalism has been raised into the seventh heaven of official esteem.

And the structure of Nazi Germany, where there were very close links between local and state government and industry, and where private industry and big business were celebrated and promoted, sounds extremely similar to the current corporatist political system in Britain and America. Here, political parties now favour big business over the public good, thanks to receiving donations and other aid, including the loan of personnel, from private firms, and the appointment of senior management and businessmen to positions within government. While at the same time pursuing a policy of deregulation and privatisation.

And this is without discussing the murderous Social Darwinism of the Reaganite/ Thatcherite parties, including Blairite New Labour, which has seen the welfare safety net gradually removed piecemeal, so that hundreds of thousands in Britain are now forced to use food banks to survive, and around 700 desperately poor, and particularly disabled people, have died in misery and starvation thanks to the regime of benefit sanctions and the use of pseudo-scientific procedures by ATOS and Maximus to declare seriously and terminally ill people ‘fit for work’.

The Blairites, Tories and their Lib Dem partners have set up a system of secret courts, in which, if it is considered ‘national security’ is at stake, individuals can be tried in secret, without knowing what the charges against them are, who their accuser is, or the evidence against them. Cameron and May, and indeed Tony Blair, followed Thatcher’s lead in trying to destroy the unions, and have put in place progressively stricter legislation against political protests.

Meanwhile, under the guise of combating ‘fake news’, internet companies like Google and Facebook are trying to drive left-wing, alternative news networks and sites off the Net.

The Code Pink and Green Party campaigner, Vijay Prashad, gave a speech in Washington, where he stated that Trump could be the last president of the US. If he doesn’t destroy the world, the political processes that are operating under him could result in him being the last democratically elected president, should the elites get tired of democracy.

Trump’s regime is certainly Fascistic, particularly in the support it receives from racist, White supremacist and openly Nazi organisations. If the business elites bankrolling the two parties do get tired of democracy – and due to their pernicious influence Harvard University has described the current American political system as an oligarchy, rather than democracy – then the transition to real Fascism will have been completed.

And where the Republicans go in America, the Tories over here in Britain duly follow.

Advertisements

Private Eye from 2012 on the Failure and Misgovernment at the DWP

March 13, 2016

In their edition for 1st – 14th June 2012, Private Eye devoted nearly a page to the disgusting actions, policies and general misgovernment in aIDS’ DWP. Here it is.

Not Working: A DWP Special

Freudian Slip
How serious does the Department for Work and Pensions (DWP) treat cases of alleged fraud in its multi-million-pound employment programmes, under which private companies are meant to help benefit claimants find work?

Last week pressure from ministers led Tory MPs on the Commons public accounts committee (PAC) to oblige their colleagues to listen in secret to whistleblowers describing potential fraud by welfare-to-work firms like Working Links and A4E.

This was just the DWP’s latest attempt to hide its dirty washing: it has been shifty about possible cheating by the “benefit-busting” firms for years. Take, for example, the mysterious “annual report” on employment programmes which was promised to MPs before disappearing from sight.

In 2010, MPs on the Work and Pensions Committee said that reports of the “Risk Assurance Division”, which investigates allegations of fraud by workfare companies, “must be published where wrongdoing is found”.

While the DWP argued that publishing the reports would be unfair on contractors, its “delivery director” Alan Cave instead promised some “regular reporting of trends and lessons learned” in an annual report.

This March, when the Eye asked to the report, the DWP press office responded with contradictory answers. The report was published, it said, and a copy would be sent. Then it announced that the report was about to be published. Finally it stopped returning the Eye’s calls altogether.

Unable to get any sense from the press office, the Eye made a freedom of information request. The DWP pointed to a March admission to MPs by Mr Cave that the report had not been delivered. Cave said because of the new government and new Work Programme, it “seemed sensible to put a pause on that while we got the new system up and running before returning to that.”

Really? The Eye made another freedom of information request to see any papers relating to the report-but the DWP says there are none. In other words, all the work in providing MPs and the public with information on workfare fraud apparently hasn’t generated a single email, minute, letter or note.

In fact, the entire proposed annual report appears to be a fob-off, as it seems the DWP didn’t put any work into it anyway.

Missing Links
The evidence of Eddie Hutchinson, former head of internal audit at “benefit-busting” firm Working Links, confirms what the
Eye has been saying repeatedly: there is something seriously wrong with this company, which gets more than £100m a year from taxpayers (via the DWP) to help the unemployed.

Hutchinson told the Commons public accounts committee that fraud was “extensive” and “systemic” at Working Links, explaining: “All these frauds involved the falsification of job outcome evidence to illegally claim monies from the DWP, together with the false claiming of bonus payments by staff through the company’s incentive bonus system”.

In 2006, DWP research showed the firm failed to meet targets on benefit-busting schemes, whereas JobCentre staff did twice as well. The government responded by taking JobCentre staff of the job and handing more schemes to Working Links. In 2009 Ofsted found that Working Links was failing to meet targets – so the government stopped Ofsted inspecting benefit-busting programmes!

In 2011 the Eye saw a leaked report showing the DWP had caught Working Links claiming money for people it had not helped into work in Liverpool. Hutchinson’s evidence suggests that DWP clawed back cash for similar fiddles in South Wales (2007), Glasgow (2007 and 2008), Hackney (2008) and other areas. However, while the DWP asked for the money back, it does not appeared to have punished the firm.

* it may be generating bad headlines for its sloppy internal financial controls, but A4E still knows how to find work for people – if they happen to chums with the chancellor anyway.

A4E recently hired lobbyist George Bridges and his firm Quiller Consultants to help with its crisis management. Bridges, a personal friend of George Osborne, became head of Conservative Campaigns in 2006 and helped Osborne run the Tories’ election campaign in 2010.

Quiller Consultants itself is owned by Tory peer Lord Chadlington, who also happens to be Cameron’s constituency party chairman in Witney. His links with the prime minister caused embarrassment last year when it emerged that the lobbyist lord had sold Dave a strip of land used as a driveway and garage at the PMN’s Witney home. Chadlington bought the land and sold it to the prime minister, raising questions about lobbyists’ access to Cameron.

Downing Street meanwhile is considering hiring another Quiller Consultant, Stephen Parkinson, to pep up Number 10’s spin operation. Parkinson was also previously a Conservative Central Office apparatchik, underlining the close links between a4e’s new friend and the government.

Factory Fibs
Work and Pensions secretary Iain Duncan Smith refused to apologise for declaring that disabled people in Remploy’s supported factories were “not doing any work at all… just making cups of coffee”.

Perhaps he was bolstered by Remploy chairman Ian Russell’s own foreword to the recently published 2011 accounts claiming that workers “have little or no work on most days of the week”. The comments help the case for closing 36 of the remaining 54 Remploy factories, despite union figures showing that 85 per cent of disabled workers made redundant in the last round of Remploy cuts remain unemployed.

One problem – a recent congratulatory internal letter from Remploy Enterprise Businesses (EB) managing director Alan Hill paints a different picture of life in the factories. “I am delighted to say the overall performance of EB has been outstanding,” writes Hill, reporting that sales have grown 12.2 per cent in the last financial year, reaching £117m.

Indeed, after cutting costs as well, the Remploy factories’ overall operating result had improved by a whopping 27.9 per cent, according to Hill. A KMPG analysis produced in Mary found that some of the Remploy businesses – such as making car parts and monitoring CCTV – were viable and even profitable, while others could also be made sustainable.

NEST beg

Misleading advertising is nothing new when it comes to financial product mis-selling, but few would expect the government to exploit a loophole to produce its own dodgy sale pitch.

The DWP has been busy pushing “workplace pensions”, using adverts that feature toy people building a rising wall. “A simple step to a better future” is the unequivocal message.

The principle “workplace pension” being promoted is the government’s default scheme into which employees will soon be automatically enrolled, the National Employment Savings Trust (NEST). But tis is a stock-market based scheme in which there will be a large number of losers after fees, the loss of other means-related benefits and the fact that stock markets can go down as well as up. Go in at the wrong time and you’re effectively screwed.

The standard disclaimer to this effect is, however, missing from the government’s adverts because, the DWP tells an Eye reader, its lawyers agreed that the adverts’ purpose “is to promote the general concept of saving through workplace pensions, rather than saving through a specific product”. Never mind that almost all such schemes, including the reassuringly branded NEST, are now stock market-based.

The government is effectively saying that volatile investments will be a good bet for a safe pension, risk-free. The next big mis-selling scandal, in other words.

This catalogue of incompetence, lies, fraud and failure also puts the lie to another claim by the Right: that Socialism somehow punishes excellence. By redistributing wealth and putting checks on the rapacity of senior management, the argument goes, Socialism and the welfare state somehow punishes the superior skill and talents of private entrepreneurs. This shows the opposite: that it actively rewards failure and punishes excellence. How else can you explain the determination to stop JobCentres finding work for the unemployed and hand it over to fraudsters like Working Links, or close profitable and potentially profitable Remploy factories? Or promoting potentially underperforming ‘workplace pensions?’ This is all about supporting failing private industry, the Tories’ paymasters, and punishing excellence in the state sector. This even goes as far as the personnel selected to run the Department. Ian Duncan Smith stands out as a man of precious little talent, but somehow this massive failure of a man has been awarded an entire department to run, and run into the ground.

Hard Times for Terrorists: ISIS Cuts Salaries by Half

January 21, 2016

It seems that ISIS is also having to suffer cuts and austerity, like everyone else. In this video, The Young Turks’ John Iadarola and Ana Kasparian discuss the recent decision by Daesh to cut their fighters’ pay by 50%. Apparently, the mujahidin can receive anything from $400 to $1,200, with $50 extra for their wives and $25 for their children. But now that things aren’t going so well for them, they’re having to take a cut in salary.

The two presenters express surprise that the crazed mass-murderers of the Islamic State were taking so much in pay, considering that they were supposed to be doing it for the faith. Ana Kasparian states that she doubts that this will make much difference to the suicide bombers. Iadarola takes the point, but believes it might have some effect. Some of the Islamic State’s recruits do become disillusioned and try to leave, when they find out that Daesh’s soldiers aren’t moral supermen inundated with women throwing themselves at them. Unfortunately, when the do try to leave, they’re executed by their former comrades.

It’s also likely to create even more disillusionment with Daesh amongst the subject population. The Islamic State has stated that their fighters are free to find ways to supplement their pay from the surrounding people. That means that they can start extorting money and protection rackets. This will naturally be resented, and cause further opposition to them.

And Ana Kasparian also makes a good point that we could also put a stop to their popularity by stopping killing women, children and civilians with bombs and drone strikes on wedding parties and so on. Although not all bombing is necessarily bad or counterproductive, such as when one bomb hit the building where ISIS were storing their money, thus destroying part of their funds.

My guess is that the cut in salaries is probably caused by ISIS having alienated some of their backers in Saudi Arabia, when they announced they were launching a jihad against them. Also, the Saudis themselves have also taken an economic hit after America lifted sanctions against Iran, allowing the Iranians to start selling their oil again. On Monday the I reported that the Saudi stock market had crashed, after falling 5.4 points the previous night.

I also found it deeply ironic that ISIS should also have to cut their pay after the sneer by their latest spokesman and professional murderer about our soldiers being on basic pay. Memo to psychopathic bouncy castle salesmen, who fancy themselves as ruthless ghazis: don’t tempt fate. Or Allah. Still, perhaps he things that if things get really bad, he can go back to selling bouncy castles in Syria and Iraq.

Private Eye on the Non-Dom Press Barons of Fleet Street

April 22, 2015

Ed Miliband’s announcement a few weeks ago that he would end non-dom tax status was greeted with howls of derision from the right-wing Tory press. The Evening Standard, Torygraph and the Heil all claimed that if the various millionaires resident in Britain, who weren’t paying their taxes here, were forced to do so, then they would all leave en masse.

As Private Eye pointed out in last week’s issue, these paper’s stance has hardly been disinterested. Their owners are all non-doms. Evgeny Lebedev, the Russian oligarch, who owns the Evening Standard, last year dodged the Eye’s questions on where he pays his tax. The weirdo Barclay brothers, the owners of the Torygraph, are tax exiles in Monaco and the Channel Islands. And the Mail’s Viscount Rothermere is another one. He inherited his non-dom tax status from his father, despite not living abroad and building something that can only be described as a stately home in the south of England.

Sky also decided to join in the criticism, while obviously not mentioning that its owner, Rupert Murdoch, also doesn’t pay tax in Britain. Neither in fact, does Dirty Rupe’s papers, the Sun and the Times, which the Eye revealed a few years ago to be registered abroad for the purposes of corporation tax. So much for the true-blue British patriotism of these papers.

The Eye refuted all this criticism by printing the views of Jolyon Maugham, a QC who has advised both Labour and the Tories on tax policies. Maugham pointed to the similar criticisms levelled at Labour by the papers when the party first started levying taxes on non-doms in 2008. Then the Mail predicted a massive stock market crash, and it, the Telegraph and the British Banking Association all warned that Britain’s millionaires were considering leaving the country. In fact, the opposite was true. By the end of 2014, according to the Eye, about 54 per cent of property sales in Kensington were to foreign purchasers. At the moment, there are 115,000 non-doms in London, because the capital is still an extremely attractive place for millionaires.

The article also points out that the Financial Times also supports the ending of non-dom tax status. They suggest, however, the paper didn’t come out and make its opposition to the tax status earlier because until 2013, it was partly owned by Dame Marjorie Scardino, who would have been entitled to non-dom tax status on her London flat.

Readers of Johnny Void’s blog will know about the problems created in London by the presence of the global super-rich, and the way they are pushing ordinary working and lower-middle class Londoners out of the city. In a post I reblogged here a few days ago, Mr Void described the appalling destruction of London’s working class and counter- or alternative cultural heritage. Like the historic Black Cap gay bar, Soho, Tin Pan alley, parts of Camden market, and the relocation of St Martin’s school of art. It does seem that the capital’s real, living heritage that has grown up over decades and centuries, is being gutted in order to leave the capital another sterile, homogenous global environment for the planet’s super rich.

This has to be resisted – not just in London, but all over England and the UK. It’s part of a general process throughout Britain where gentrification and the desire to please and attract the wealthy from across the world is destroying working class communities, and the places they live, work, shop and relax across the UK.

The problem isn’t that if Ed ends the non-dom tax bracket, there’ll be an exodus of oligarchs and multi-millionaires, as the Week put on its cover last Friday. The problem is the opposite – that if the power and cupidity of the super-rich isn’t curtailed, they’ll price the poor out of their homes altogether. It’s most acute in London, but if it isn’t stopped, it’ll come to somewhere near you very quickly.