Posts Tagged ‘Tax Cuts’

‘I’ Newspaper: Aristocracy Have Doubled Their Wealth in Past Decade

July 22, 2019

The cover story on Saturday’s I for 20th July 2019 was a report that Britain’s landed gentry had doubled their wealth in a decade. Beneath the headline declaring that very fact were the lines

  • Dramatic surge in fortunes of British nobility since the 2008 financial crash, I learns
  • 600 aristcratic families now as wealthy as they were at the height of the British Empire.

The story on page 12 of the paper by Cahal Milmo was based on the research of two academics, Dr Matthew Bond and Dr Julien Morton, lecturers, sociology lecturers at the London South Bank University, who had examined probates, or settled wills, of 1,706 members of the aristocracy going back to 1858. However, the article made the point that these wills only represented part of the aristocracy’s immense wealth, and their real fortunes is likely to be much higher because their lands, property, art collections and business investments are very frequently held in separate trusts which cannot be examined.

The article stated that

A hereditary title is now worth an average of more than £16m – nearly twice the value it stood at proior to the 2008 financial crisis, I can reveal. their fortunes contrast starkly with the decade experienced by the vast majority of Britons, whose inflation-adjusted wages remain stuck at 2005 levels.l Since the Thatcher era, the value of a hereditary title has also increased four-fold.

The academics’ research also

shows that the minimum value of one of these (aristocratic) titles now stands on average at £16.1m. The same figure, adjusted to reflect current purchasing power, stood at £4.2m between 1978 and 1987.

The four-fold increase suggests the aristocracy has prospered spectacularly under the era of financial deregulation and economic liberalisation ushered in by Margaret Thatcher when she came to power in 1979.

The I also stated

The figures represent a sharp recovery in the fortunes of the nobility, which went into a decline during the Second World War and the post-war consensus, which brought in more progressive taxation and the welfare state. From a pre-war high of £23m, average fortunes fell to £4.9m by the 1980s.

The data suggests that Britain’s wealthiest aristocrats have more than weathered the economic problems caused by the 2008 financial crisis, apparently using existing assets to take advantage of low interest rates to buy up stocks and shares and other investments which have rocketed in value. In the decade to 2007, the average wealth of the nobility stood at £8.9m – suggesting it has nearly doubled in the decade since. (pp. 12-13).

The article also looked at the educational background of the ten richest toffs. And what a surprise! They nearly all went to Eton and Harrow, before going on to Oxbridge.

Of the ten largest probates between 2008 and 2018, seven of the deceased attended Eton or Harrow, with the remaining three also attending major public schools. Six of the 10 went to either Oxford or Cambridge universities. (p. 13).

The newspaper also asked the Labour MP, Chris Bryant for his views about this. Bryant was the author of A Critical History of the British Aristocracy, published two years ago in 2017. He responded

“For more than a century the landed aristocracy have been moaning about their terrible impoverishment. Ostentatiously sitting in dilapidated drawing rooms with buckets and pails catching drips from the beautiful but bowed stucco ceiling, they have extended the begging bowl.

“Yet the last century has seen many do remarkably well. The end result is that eh great old landed, crested and hallmarked families of the UK are still in possession of most of the land and a large part of the wealth of the nation.” (p. 13).

The I was at pains to state that the study itself takes no view on the social role of the aristocracy, whose fans argue that it plays a valuable role supporting rural communities through fishing and farming. It quoted Morton as saying

“It may well be that having a rich and vital aristocracy is good for the country. We are interested in understanding this group as objectively as possible.”

Well, that might be the case, but they’ve also been severely bad for the rest of us. The I doesn’t mention it, but one of the ways the aristocracy has almost certainly increased their wealth is through the massive tax cuts the Tories have given high earners. They’ve been enriched through the Thatcherite doctrine that taxes and government spending have to be cut, the welfare state destroyed and everything, including the NHS privatised, in order to benefit the upper classes. Their wealth will then magically trickle down to the rest of us, as they open new businesses, pay higher wages and so forth. Except they don’t. They simply take the money and put it in their bank accounts, where it stays. And far from opening new businesses, business proprietors simply carry on as before, laying off staff in order to enrich themselves and their shareholders. The Young Turks and a number of other left-wing American internet news shows, like the Jimmy Dore Show, have put up videos about various companies that have made thousands unemployed after they were given tax cuts by Trump.

As for the British aristocracy, way back in 1988 Private Eye published a very critical review, ‘Nob Value’, of Hugh Montgomery-Massingberd’s The Field Book of Country Houses and their Owners: Family Seats of the British Isles, as well as the-then emerging ‘heritage’ sector. Massingberd, who wrote a ‘heritage’ column in the Torygraph, was a massive fan of the aristocracy to which he belonged, and, of course, Maggie Thatcher. In this book he loudly praised her policies, and looked forward to a ‘social restoration’ that would see the blue-bloods return to power. The Eye wrote

The ‘heritage’ mania has softened us up for a return to inherited wealth. Hugh Montgomery-Massingberd may be a richly Wodehousian figure, but his book, lauding the privately owned, is symptomatic. It is the correlative to Peregrine Worsthorne’s recent articles about the desirability of large inheritances and the return of a rentier class: the desirability in short of ‘a social restoration’. Come the day, of course, Massivesnob knows where he will be – in his seat again. But the fans of his snufflings seem curiously unaware of where that leaves them: which is sat upon. 

In Francis Wheen, ed., Lord Gnome’s Literary Companion (London: Verso 1994), 320-2 (322).

Quite. It’s as true now as it was then, after Downton Abbey on the Beeb and now with the Tory party dominated by two toffs, Boris Johnson and Jacob Rees-Mogg, coming after another Eton educated aristo, David Cameron, all of whom very much represent the interests of their class against the poor.

The only chance for the rest of us to shake them off, and go back to having a society where ordinary people have a decent standard of living, can enjoy good wages, proper welfare support and a truly national, and nationalised health service, is by voting for Corbyn.

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Unison: Money from Tax Cuts for Rich Could Have Funded Social Care

July 9, 2019

Yesterday’s I, for 9th July 2019, carried a story on page 8 by Alex Jones, reporting that Unison had said that the money the Tories had given away to the rich in in tax cuts could have been spent on solving the social care crisis. The article, ‘Tax cuts for rich ‘could have gone to social care’ ran

Tax cuts for the rich in recent years have deprived the public of almost £14bn – money that would fund plans to end the social care crisis for two years, a study has suggested.

The trade union Unison said the Government’s decision to cut the top rate from 50p to 45p in 2013 had saved the richest taxpayers hundreds of thousands of pounds, while local authorities have been starved of funds and services cut, contributed to social care problems across the country.

Unison calculated that the savings for those with incomes of more than £1m a year have reduced payments to the Treasury by £13.98bn between 2013 and the current financial year.

The union said its analysis of HM Revenue & Customs statistics published last week shows the number of taxpayers earning more than £1m each year has risen from 15,000 to 21,000 since George Osborne introduced the tax cut.

Dave Prentis, Unison’s general secretary, said: “Instead of helping the rich line their pockets, the Government should be ploughing money into services which make a real difference in society”.

Absolutely – this is what the Tories always stand for: tax cuts to make the rich richer, and cuts to services to hit the poor. All in the name of a trickle-down economics, which has never worked and has been proven not to work.

But Boris and Hunt have started lying again, promising they’ll increase funding for a range of services, like the police. This is a sick joke. Numerous left-wing bloggers have pointed out that both these charlatans have consistently voted to cut public spending, privatise what they could, including the NHS, and reduce the welfare state. And they very keenly backed the savage reduction in police officers. Oh, they’ll promise any amount of public spending from the ‘magic money tree’ they claim doesn’t exist, except when the Tories need it, but the reality is very different. None of these promises are to be taken remotely seriously. On the other hand, Boris’ initial promise where he told the rich he’d cut their taxes even more, are definitely what he really intends.

As for the concern some Tories express over the crisis in social care, this won’t lead them to anything that’s really needed to correct it. A few weeks ago Points West, the local BBC news programme down here in Bristol, Gloucester, Somerset and Wiltshire, ran a story about the deplorable state of funding for social care in Somerset and the closure of many homes due to council cuts. A local Tory MP, one Fysh, raised the issue in parliament. This was also covered on the programme, and he was interviewed about it by anchor Dave Garmston. Garmston asked him what he believed should be done about it. Should people be encouraged to take out private insurance to cover it. Fysh said that one way would be to introduce a surcharge for people, who didn’t have such coverage, as this was done in some countries. What about raising taxes to fund it? Fysh’s reply was quick and dismissive: ‘Oh, let’s not go back to tax and spend.’

Bog standard attitude from a bog standard Tory: Wants to do something, or to be seen doing something about a crisis, but is resolutely against taxing the rich to help the poor. Like Johnson, Hunt and all the rest of them, whatever they may now be claiming in their desperation to look like acceptable candidates for occupancy of No. 10.

Have the Tories Killed More Disabled People than the Nazis?

April 9, 2019

Some may be outraged by the question, but it’s perfectly legitimate. The Nazis were Social Darwinists, who believed that the social elite, aristocrats and businessmen, were biologically superior to those at the bottom of the social hierarchy. And like Social Darwinists elsewhere in the West, they bitterly despised the disabled. They were ‘lebensunwertigen Leben‘, ‘life unworthy of life’, and a danger to the racial purity and biological fitness of the German people. Other nations had attempted to prevent the congenitally disabled from breeding through eugenics legislation providing for the sterilisation of the congenitally disabled and mentally handicapped. 22 American states had passed such legislation prior to the Nazi seizure of power, and when the Nazis in their turn enacted such laws, they claimed they had done nothing new. But they went much further, setting up a programme of official euthanasia in which the disabled and the incurably insane were taken by the SS to special clinics, where they were medically murdered.

A similar attitude seems to underlie the Tories’ policies towards the disabled and the hated fitness to work tests. These are based on policies introduced by Blair’s New Labour, in that the disabled are required to undertake tests administered by private contractors like Atos and now Maximus in order to judge whether they are ‘fit for work’. Those that are, are thrown off benefits and left to survive on their own. And all too many don’t. As has been pointed out by left-wing and disability rights bloggers and activists, the tests are based on pseudoscience within an inbuilt assumption that people are malingering. Whistleblowers have also come forward to tell how there are targets set by the DWP for declaring a certain proportion of claimants well enough to work, even though they are anything but. Blogs like Atos Miracles and the satirical magazine Private Eye have reported incidents where people in terminal comas have been declared fit for work, along with others with serious physical and mental conditions. Amputees have been asked when they expect their limbs to grow back, and depressives suffering from suicidal thoughts have been asked why they haven’t attempt to kill themselves. People in real, pressing need have been thrown off benefits and left to starve to death. Mike at Vox Political and other activists and bloggers have fought hard  to get the statistics out of the DWP for the number of people, who have died after being declared fit for work. The Tories have attempted to refuse the information, and only very grudgingly released it. At the same time they have also consistently denied that there is any connection between their policies and the deaths of the disabled and the unemployed, who have suffered similar removal of benefits under the infamous sanctions system. This has been so even when people have taken their own lives, leaving behind notes explaining why they have taken their own lives and placing the blame firmly on the DWP’s iniquitous policies.

Yesterday John McDonnell, Corbyn’s chief ally, urged people to make their concerns about the hardships caused by the DWP and Universal Credit known to their MPs personally, especially Tory MPs. He believes that if MPs personally met people, whose lives have been made worse through the sanctions system and Universal Credit, MPs would have a greater understanding of their suffering than through the ordinary process of parliamentary debate.

Mike in his piece about it was sceptical, pointing out that the government shares the same fundamental attitude towards the disabled as ‘useless eaters’, and believe that any policy that cuts down their number is good for the nation. Which means that it allows them to give massive tax cuts to the very rich. Mike also points out that the same rich the Tories defend and promote are far worse parasites, as they contribute less to the economy and use more of the state’s resources, funded by the taxpayer. Many of the business elite aren’t responsible for establishing the businesses they own or run. They simply inherited them.

But contacting the Tories won’t do any good. They’ll simply spit out the same old stories denying that their policies are responsible for the suffering and death they have manifestly caused. Meeting the disabled and unemployed personally won’t do any good either, they’ll just nod solemnly, look concerned and then carry on as before. This is because the Tories want the disabled and the unemployed, who find it difficult to get work, to die. Mike feels that the only way the DWP’s reign of terror can be stopped is if a court case or public inquiry found that a reasonable person would conclude that there was a connection between their policies and the deaths of the unemployed and disabled. This would open the way to the government being prosecuted for corporate manslaughter, possibly of as many as 100,000 people, although this is a conservative estimate.

The only other possibility is through a general election which puts Labour in power, though this may not be possible. Although the public believes in Labour’s policies, they are being deliberately misled into thinking that Corbyn himself is a threat. Hence the spectacle last week of soldiers in Afghanistan shooting at a picture of the Labour leader. Mike concludes

The system is stacked against Labour, and therefore against anybody who is in a position of vulnerability; anybody who isn’t a vastly rich Tory.

So if you have a relative or friend who has to claim sickness and/or disability benefits, go and see them, and give them a lot of affection. They may soon be dead – and if you voted Conservative, it’ll be because of your vote.

See: https://voxpoliticalonline.com/2019/04/08/confront-your-mp-personally-about-tory-abuse-of-people-on-benefits-says-mcdonnell/

Mike here is absolutely right. The rich do use more state services than the poor, which is one reason why they should be charged a consequently higher tax rate. And the Tories have cut welfare benefits in order to give massive tax breaks to the rich. Who don’t pass the benefits of their increased wealth further down the social hierarchy in the form of wages increases or opening new businesses. It simply stays in their accounts. And they really do seem keen to kill as many of the poor and disabled as possible.

Which brings us back to the Nazi euthanasia campaign. This ran between January 1940 and August 1941, when public outrage led by the Roman Catholic aristocrat, Count Galen forced the Nazis to abandon it. By that time they had murdered somewhere between sixty to eighty thousand disabled people. See D.G. Williamson, The Third Reich (Harlow: Longman 1982) 68-9.

If the Tories are responsible for the deaths of 100,000 people through Universal Credit, benefit sanctions and the fitness for work tests, then they have killed at least 20 – 40,000 more people disabled people than the Nazis.

This is horrendous. I dare say that Tory supporters would reject the comparison, as those left to die are not being forcibly taken to places against their will, like the Nazis’ murder hospitals or concentration camps, where they are then murdered by SS soldiers or compliant doctors. They are just thrown off benefits to starve on their own, so that the Tories, with a clear conscience, can say that they had nothing to do with their deaths.

But they did, and are. And its a disgrace. It’s long past time the Tories’ murder of the sick, disabled and unemployed was ended. Ideally those responsible, like Iain Duncan Smith, should be personally brought to trial and charged with their manslaughter. But this is probably impossible. The best solution would, as Mike says, be a Labour government brought in by a snap election.

And the fact still remains that the Tories have now killed more disabled people than the Nazis, and that those who voted for them are complicit in this.

Haim Bresheeth Talks to Press TV about the Independents and the Labour Anti-Semitism Smears

March 4, 2019

Haim Bresheeth is another Jewish critic of Israel. He’s put up a number of videos on YouTube covering the Jewish supporters of Jeremy Corbyn and their demonstrations of solidarity with him and against the anti-Semitism smears. In this video, posted on 20th February 2019, the academic and film-maker talks to the Iranian news service, Press TV about the Independents and particularly Joan Ryan.

The video begins with him telling the host that the only thing the Independents have in common is support for Israeli apartheid and the attacks on Gaza, and for wars everywhere. It that’s going to be their platform, and the founding eleven may be joined by one or two more, then Bresheeth states that he thinks they have no future. They are supporting another government, which is legally an apartheid government, is not going to bring voters to that movement.

The host asks Bresheeth for his response to her claim that she left Labour because of its anti-Semitism. Bresheeth states that he has been a member of the Labour party has been living in Britain for 45 years, and he has not met an anti-Semite, either in the Labour party or anywhere else in Britain. So they must be hiding so well it’s unbelievable. He’s not saying there are no anti-Semites in Britain, but they’re not in the Labour party. They’re more likely to be in UKIP. Joan Ryan was not only shown to be a friend of Israel, and is definitely not a friend of Labour, but she was working with Mossad people, Shai Masot, as shown in al-Jazeera’s documentary, ‘The Lobby’. They were plotting to bring down a British minister tells you just what Joan Ryan is about. She’s not the MP for North Enfield, she’s the MP for Mossad.

Readers of this blog will know the absolute contempt I have for the Iranian regime, its human rights abuses, corruption and oppression of that ancient nation’s working people. But, like RT, which is owned by Russia, it’s one of the few news broadcasters that’s actually telling the truth about the anti-Semitism smears.

Haim Bresheeth is not along when he states that he’s lived in this country without meeting an anti-Semite. Corbyn’s Jewish supporters in organisations like Jewish Voice for Labour, who are resolutely ignored by the media, have also said that, like him, they’re sure it exists, but they’ve never encountered it personally. Statistics show that only 3.6 per cent of the Labour have anti-Semitic views. In the Tories, it’s 3.9 per cent. And in UKIP it’s something like 4.2. per cent. I don’t know whether Masot really was part of Mossad, but it is certainly true he was conspiring to remove a Tory member of cabinet, Alan Duncan. Just as Ryan was shown manufacturing a fake anti-Semitism accusation against another Labour supporter, Jean Fitzpatrick. Ryan’s notorious advocacy of Israel at the expense of her own constituents is notorious in the Labour party, and earned her the soubriquet ‘the MP for Tel Aviv North’.

And I’ve no doubt that Bresheeth is also right when he says they stand for more wars everywhere. They all supported the Iraq invasion, and they are all desperate for there not to be a public enquiry, as this would no doubt expose their illegality, acquiescence and promotion of Blair’s lies. And as supporters of Israel, an apartheid state, they are definitely not anti-racists, no matter what they scream about anti-Semitism.

Domestically the Independents, or at least Chris Leslie, stand for supporting the Tory party against Jeremy Corbyn, privatisation, including that of the NHS, tuition fees, keeping the water companies private, destroying the welfare state, and more tax cuts for the rich at the expense of the poor. They are warmongering Tories, who have nothing to offer Britain’s working people, except possibly membership of the EU. There is absolutely no doubt that we should have bye-elections now, so that they can be voted out, and replaced with those, who really do respect the wishes of their constituents.

John Quiggin on the Absolute Failure of Trickle-Down Economics

January 8, 2019

John Quiggin is an economics professor at the university of Queensland Down Under. His 2010 book, Zombie Economics, is a very thorough demolition of the economic theories that have formed the current dogma since the election of Thatcher and Reagan in 1979 and 1980.

One of the theories he refutes is ‘trickle-down’ economics. This is theory that if you act to give more wealth to the rich through tax cuts, deregulation and privatization, this wealth will trickle down to benefit those at the bottom of the socio-economic ladder. It was one of the central planks of Thatcherism. And even in the 1980s, it’s effectiveness was highly dubious. I remember watching a documentary about it on the Beeb, which illustrated the theory with a pyramid of champagne glasses. When the glasses at the top of the pyramid were filled to overflowing, the champagne flowed down to the glasses lower down. So, Thatcher and her cronies claimed, their programme of free market economics would benefit everyone in society by enriching those at the top, from whom it would trickle down to the rest of us. If I remember correctly, the programme itself argued this wasn’t happening. And it hasn’t since. on pages 155 to 157 Quggin shows how the policy has not worked in America, and in fact the poor are massively poorer off. He writes

The experience of the United States during the decades of market liberalism, from the 1970s until the Global Financial Crisis, gives little support for the trickle-down view. The gross domestic product of the United States grew solidly in this period, if not as rapidly as during the Keynesian postwar boom. More relevantly to the trickle-down hypothesis , the incomes and wealth of the richest Americans grew spectacularly. Incomes at the fifth percentile of the income distribution doubled and those for the top 0.1 per cent quadrupled.

By contrast, the gains to households in the middle of the income distribution have been much more modest. As shown in figure 4.2, real median household income rose from forty-five thousand dollars to just over fifty thousand dollars between 1973 (the last year of the long postwar expansion) and 2008. The annual rate of increase was 0.4 per cent.

For those at the bottom of the income distribution, there have been no gains at all. Real incomes for the lower half of the distribution have stagnated. The same picture emerges if we look at wages. Median real earning for full-time year-round male workers have not grown since 1974. For males with high school education or less, real wages have actually declined. According to estimates made by the Economic Policy Institute, the average annual earnings of twenty-five to twenty-nine-year-old high school graduates, expressed in 2005 values, fell from #30,900 in 1970 to $25,90 in 2000, and have stagnated since then.

Since 2000, median household incomes have actually fallen, the first time in modern history that such a decline has taken place over a full business cycle. One result can be seen by looking at the proportion of households living below the poverty line. The poverty rate declined steadily during the postwar Keynsian era. It has remained essentially static since 1970, falling in booms, but rising again in recessions.

Unlike most developed countries, the United States has a poverty line fixed in terms of absolute consumption levels and based on an assessment of a poverty-line food budget undertaken in 1963. The proportion of Americans below this fixed poverty line fell from 25 per cent in the late 1950s to 11 percent in 1974. Since then it has fluctuated, reaching 13.2 percent in 2008, a level that is certain to rise further as a result of the financial crisis and recession now taking place. Since the poverty line has remained unchanged, this means that the real incomes accruing to the poorest ten percent of Americans have fallen over the last thirty years.

These outcomes are reflected in measures of the numbers of Americans who lack access to the basics of life: food, shelter, and adequate medical care.

In 2008, according to U.S. Department of Agriculture statistics quoted by the Food Research Action Center, 49.1 million Americans live in households classified as “food insecure”, meaning that they lacked access to enough food to fully meet basic needs at all times due to lack of financial resources. Slightly more than 17 million people (17.3 million) lived in households that were considered to have “very low food security”, which means that one or more people in the household were hungry over the course of the year because of the inability to afford enough food. This number had doubled since 2000 and has almost certainly increased further as a result of the recession.

The number of people without health insurance rose steadily over the period of market liberalism, both in absolute terms and as a proportion of the population, reaching a peak of 46 million, or 15 percent of the population. Among the insured, an increasing proportion was reliant on government programs. The traditional model of employment-based private health insurance, which was developed as part of the New Deal, and covered most of the population during the Keynesian era, was eroded to the point of collapse.

Homelessness is almost entirely a phenomenon of the era of market liberalism. During the decade of full employment, homelessness was confined to a tiny population of transients, mostly older males with mental health and substance abuse problems. By contrast, in 2007, 1.6 million people spent time in homeless shelters, and about 40 percent of the homeless population were families with children.

The experience of the United States in the era of market liberalism was as thorough a refutation of the trickle-down hypothesis as can reasonably be imagined. The well off have become better off, and the rich have become super-rich. Despite impressive technological progress, those in the middle of the income distributions struggled to stay in place, and those at the bottom became worse-off in crucial respects.

(My emphasis).

Bernie Sanders in his book described just how severe the crisis in private American medical care was. It almost collapsed completely in certain states because a very large number of patients are simply unable to afford medical treatment.

And the same situation prevails here in Britain, with increasing poverty here in Britain. Millions of households now live below the poverty line, a quarter of million people need food banks to keep body and soul together, including working people with families. As Mike pointed out in a piece last week, parents are now starving themselves in order to fee their children.

The NHS is also in crisis, though for different but related reasons to those in the US. It’s in crisis because of massive funding cuts by the Tories over the last decade, and the determination of both Tory and New Labour administrations to privatise it by stealth. The introduction of private enterprise into the NHS actually raises costs, not diminishes them. It’s for the simple reason that private firms have to make a profit to pass on to their shareholders. Plus private firms also have bureaucracies of their own, which in some instances can take up 44 per cent of the firm’s income.

And added to this there is a massive increase in homelessness. But don’t worry! Yesterday, the I newspaper published a piece from the Economist telling millennials to cheer up, because in the future they’ll be able to afford their own home. Which sounds very much like simple propaganda for the current economic orthodoxy, rather than a realistic, credible prediction.

Free market capitalism has failed, despite what the press and media is trying to tell us. The Conservatives responsible for its adoption should be thrown out of government, and the Blairites who introduced it into Labour should be forced out of the positions of power they seek to monopolise. If not expelled altogether as Thatcherite entryists.

We need a genuine, socialist Labour government to clean this mess up. A government which must be led by Jeremy Corbyn.

Lenin on Worker’s Industrial Management, Government and the Withering Away of the State

December 24, 2018

One of the central tenets of Marxism is that the period of socialism ushered in by the seizure of power by the workers will eventually lead to the withering away the state and begin the transition to the period of true Communism. This will be the ideal, final phase of society when the government of people will be replaced by the administration of things.

Lenin seems to have believed that the transition to this ideal society would begin after everything had been nationalized and placed in the hands of the workers. The workers would then be able to manage the economy and society through the way capitalism had simplified the management of industry so that it could be performed by the workers themselves. This is explained in a passage from his The State and Revolution, reproduced in Lane W. Lancaster, Masters of Political Thought, Vol. 3: Hegel to Dewey (London: George Harrap & Co. Ltd 1959), pp.193-4.

Accounting and control – these are the chief things necessary for the organizing and correct functioning of the first phase of Communist society. All citizens are here transformed into hired employees of the State, which is made up of the armed workers. All citizens become employees and workers of one national state ‘syndicate’. All that is required is that they should work equally, should regularly doe their share of work, and should received equal pay. The accounting and control necessary for this have been simplified by capitalism to the utmost, till they have become the extraordinarily simple operations of watching, recording and issuing receipts, within the reach of anyone who can read and write and knows the first four rules of arithmetic.

When the majority of the people begin everywhere to keep such accounts and maintain such control over the capitalists (now converted into employees) and over the intellectual gentry, who still retain capitalist habits, this control will really become universal, general, national; and there will be no way of getting away from it, there will be ‘nowhere to go’.

The whole of society will have become one office and one factory, with equal and equal pay.

But this ‘factory’ discipline, which the proletariat will extend to the whole of society after the defeat of the capitalists and the overthrow of the exploiters, is by no means our ideal, or our final aim. It is but a foothold necessary for the radical cleansing of society of all the hideousness and foulness of capitalist exploitation, in order to advance further.

From the moment when all members of society, ore even the overwhelming majority, have learned how to govern the State themselves, have taken this business into their own hands, have established control over the insignificant minority of capitalists, over the gentry with capitalist leanings, and the workers thoroughly demoralized by capitalism-from this moment the need for any government begins to disappear. The more complete the democracy, the nearer the moment when it begins to be unnecessary. The more democratic the ‘State’ consisting of armed workers, which is no longer a State in the proper sense of the term, the more rapidly does every State begin to wither away.

for when all have learned to manage, and independently are actually managing by themselves social production, keeping accounts, controlling the idlers, the gentlefolk, the swindlers and similar ‘guardians of capitalist traditions’, then the escape from this national accounting and control will inevitable become so increasingly difficult, such a rare exception, and will probably be accompanied by such swift and severe punishment (for the armed workers are men of practical life, not sentimental intellectuals, and they will scarcely allow anyone to trifle with them), that very soon the necessity of observing the simple fundamental rules of every day social life in common will have become a habit.

The door will then be open for the transition from the first phase of Communist society to its highest phase, and along with it to the complete withering away of the state.

Lenin’s ideas here about industrial management and the withering away of the state are utopian, despite his denials elsewhere in his book. Lancaster in his comments on the passage points out that industrial management required to feed, clothe and house a society is far more complex than simply ‘watching, recording and issuing receipts’. Lenin in fact did try to put workers’ control into practice, with the result that industry and the economy almost collapsed completely. The capitalists and managers, who had been thrown out of the factories and industries in wheelbarrows by the workers, were invited back in afterwards, and restored to their former power. At the same, Alexandra Kollontai and the Left Communists, who wanted the workers to run the factories through trade unions, were gradually but ruthlessly suppressed as Lenin centralized political decision making.

Lancaster also points out that the administration of things nevertheless means government, and that it is very hard to convince a man, who has just been refused permission to open a new bus route or produce as many shoes as he can, that he is not being governed. Lancaster also argues that practice in both the democratic west and the USSR shows that a truly ‘stateless’ society impossible. He also states that the reduction of society to one enormous factory or office will repulse the normal mind, as it resembles a colony of insects, and that the similar routinization of the fundamental rules of normal social life into a habit destroys the autonomous individual and reduces them to a machine. He could also have mentioned, but doesn’t, the very sinister implications of ‘armed workers’ and the use of military force. The USSR was created by violent revolution, and maintained itself through force. Those attempting to set up their own businesses were arrested for ‘economic sabotage’ and sent to the gulags, where they were treated worse than ordinary criminals.

However, workers are capable of participating in government. One of the points Anthony Crossland made in one of his books was that the American unions had a large measure of industrial democracy, all though it was never called that. He was arguing against worker’s control, considering it unnecessary where there were strong unions, a progressive income tax and the possibility of social advancement. The unions have since been all but smashed and social mobility has vanished. And under Thatcherite tax reforms, income tax has become less progressive as the rich are given massive tax cuts, while the tax burden has been shifted on to working people. But the point remains: workers are capable of becoming managers. It was demonstrated by the anarcho-syndicalists in Catalonia during the Spanish Civil War. And Red Ken, when he was once asked by a journo why he supported worker’s management, said that it came from his experience as had of the GLC. Livingstone was now the head of a vast local government system, but there was nothing special about him. So, he believed, could ordinary people run a business. I think Leninspart was probably too modest, and he possessed managerial talents others don’t have, but the point’s a good one.

If the ability to make managerial and governmental decisions were broadened, so that they included employees and members of the public, this would empower both groups. It would make the domination of the rich 1% more difficult, and lead to a more equal, less class-ridden society. A truly classless, stateless society is probably impossible, as the example of the USSR shows. But introducing a measure of workers’ control is surely worthwhile in order to make things just that bit better.

Of course, to do so properly might mean giving working people management training. Well, Thatcher tried to turn British schoolchildren into a new generation of capitalists by making business studies part of the curriculum. She stressed competition and private enterprise. But it would turn her ideas on its head if such education instead turned workers not into aspiring businesspeople, but gave them the ability to manage industry as well as the elite above them.

That really would be capitalist contradiction Marx would have enjoyed.

The Operation of Worker-Owned Companies in Martian SF

December 9, 2018

A week or so ago I put up a few passages from Kim Stanley Robinson’s Blue Mars (London: HarperCollins 1996), a science fiction book about the colonization and terraformation of the Red Planet. In Robinson’s book, on breaking away from terrestrial domination the Martians establish a constitution which makes all the companies not owned by the global Martian state or its constituent cities worker-owned cooperatives, partly modelled on the Mondragon cooperatives in Spain. On page 301 Robinson describes how Nadia, the new Martian president in the capital, Sheffield, works to transform the planet’s industries, including those formerly owned by terrestrial metanats – vast multinationals that now dominate the industries of whole countries – into the new system. Robinson writes

Nadia, however, never made it to this conference. She got caught up by affairs in Sheffield instead, mostly instituting the new economic system, which she thought important enough to keep her there. The legislature was passing the law of eco-economics, fleshing out the bones drawn up in the constitution. They directed co-ops that had existed before the revolution to help the newly independent metanat local subsidiaries to transform themselves into similar co-operative organisations. This process, called horizontalization, had very wide support, especially from the young natives, and so it was proceeding fairly smoothly. Every Martian business now had to be owned by its employees only. No co-op could exceed one thousand people; larger enterprises had to be made of co-op associations, working together. For their internal structures most of the firms chose variants of the Bogdanovist models, which themselves were based on the co-operative Basque community of Mondragon, Spain. In these firms all employees were co-owners, and they bought into their positions by paying the equivalent of about a year’s wages to the firms equity fund. This became the starter of their share in the firm, which grew every year they stayed, until it was given back to them as pension or departure payment. Councils elected from the work-force hired management, usually from outside, and this management then had the power to make executive decisions, but was subject to a yearly review by the councils. Credit and capital were obtained from central co-operative banks, or the global government’s start-up fund, or helper organisations such as Praxis and the Swiss. On the next level up, co-ops in the same industries or services wer associating for larger projects, and also sending representatives to industry guilds, which established professional practice boards, arbitration and mediation centres, and trade associations.

I can’t say I’m happy about the idea of worker managers buying their share of management with the equivalent of a year’s pay. This seems far too easy for someone to exploit to me. And I’m also not sure how practical it would be to turn all companies into co-operatives. However, we do need industrial democracy, if only to overturn the massive exploitation of working people that has gone on under Thatcherism. Under the current Thatcherite orthodoxy, wages are frozen, jobs insecure and the welfare system undermined and destroyed. A quarter of a million people have been forced to use foodbanks to save themselves from starvation, and 330,000-odd people are homeless. And the number of people dying on our streets, and the elderly in their homes due to Tory cuts in the cold weather payments, has shot up. And this has all been to give the rich tax cuts and provide employers with a cheap, cowed workforce.

Enough’s enough. We need a proper government with a proper vision that treats working people decently, with proper wages and rights at work, invigorates trade unions, restores a strong and health welfare state, builds properly affordable homes and reverses the privatization of the NHS. Only Corbyn’s Labour promises all that. And part of this promise is to put workers on the boards of all firms with over a certain number of employees.

Corbyn is the person we need to have in No.10. Not Tweezer and her gang of crooks and profiteers. Get them out, and Labour in.

Corbyn Attacks Tories For Using Food Banks as Photo Opportunity

December 6, 2018

Here’s another great little video from RT where Corbyn once again savages May and the Tory party for causing nothing but despair and poverty for millions of working Brits. In this one, of just over a half a minute, Corbyn takes them to task for cynically using food banks as photo ops. He says

The Trussel Trust has also pointed out foodbanks face record demand this December. I just gently say to her and the MPs behind her foodbanks are not just an opportunity for Conservative MPs, who themselves, all of whom supported the cuts in benefit that have led to the poverty in this country.

Corbyn’s again absolutely right. It’s disgusting, hypocritical and disgraceful that the Tories are exploiting foodbanks in this manner.

Mike put up an article about this earlier this week, showing Dominic Raab, Claire Perry, Ross Thomson and Stephen Crabb posing at foodbanks and alongside Tesco workers, who were supposed to be contributing some of the produce at their stores to the banks. He also included the comments of the peeps on Twitter, including comedian David Schneider, neurologist Prof. Ray Tallis, Claire Hepworth OBE, Charlotte Hughes, the author of the Poor Side of Life blog, teenage corbynista Hasan Patel and many, many others, all of whom tore into the Tories. James Colwell tweeted about Perry’s voting record, reminding the world that she

consistently voted against raising benefits, almost always voted for reducing housing benefit, & generally voted against spending to create jobs for young people. She is one of the reasons foodbanks are needed.

These are the people, who have left over a quarter of a million people needing to use foodbanks to stop themselves starving to death through their insistence on low wages and benefit cuts and sanctions, the work capability tests and the introduction of alterations to the way benefits are paid, so that people have to wait even longer for them.

All of this is to create a cowed, obedient workforce will put up with any form of exploitation in order to keep their jobs, and give massive tax breaks to the rich.

As for the Tories posing in the foodbanks, Steve Perry pointed out that all the tweets about them were following a script. And the Labour whips immediately smelt a very large, odoriferous rat. The tweets and photos came at the same time as May was applauding a batch of new Tory candidates ready to fight the next election. The Labour whips put two and two together and concluded that they made four: the Tories were preparing for a possible general election if May’s Brexit deal goes sour.

https://voxpoliticalonline.com/2018/12/02/hypocritical-tories-try-gaslighting-us-with-foodbank-photocalls-but-is-something-more-serious-behind-it/

Now today we have the spectacle of the Beeb and the rest of the media castigating Corbyn for concentrating on the poverty the Tories had created at yesterday’s Prime Minister’s Questions, rather than Brexit. He dropped the ball on this one, they chorus. Those repeating this nonsense included Laura Kuenssberg and the Macclesfield Goebbels, Nick Robinson. This provoked the retort from the Labour supporters on Twitter, including Mike, that Corbyn had done very well. If Corbyn had asked May about Brexit, she would have used it as an excuse to get out of debate with him about it later, arguing that she had already discussed the matter. But he didn’t, and she can’t. And the peeps on Twitter applauded Corbyn for concentrating on poverty and bitterly criticized May for laughing about the poverty she had caused in parliament. Mike on his blog quoted Clare Hepworth, who said

Jeremy Corbyn was ABSOLUTELY right to major on the Alston report and the JRM report – there are FIVE days of #Brexit.
It was OBSCENE to witness the PM and the Tories LAUGHING at the mention of poverty, deprivation & low wages !!
The pundits on #PoliticsLive didn’t mention that !

And she was one of very many.

They also ripped into Kuenssberg, Robinson and Co. for being part of a complacent media elite, sealed inside the Westminster bubble, who have no idea what it’s like to be genuinely poor.

They also connected this to the four Tory MPs posing at food banks this weekend. Tory Fibs and Another Angry Voice applauded Corbyn attacking May for the Tories exploiting them to promote themselves. Clive Lewis said of them

.@jeremycorbyn: “Foodbanks are not just for photo opportunities!” #PMQs > 14 million people are in poverty in the UK. That’s one in five people. It’s not just @UKLabour saying it – even the @UN has said that the Tories are in a “state of denial” about poverty in this country

As for May’s response, and in particular her comment about ‘making difficult decisions’, Lisa Nandy and Mike had their answers to this pathetic, timeworn excuse.

Lisa Nandy tweeted

Theresa May says the Tories had to take “difficult decisions” on benefits. They cut taxes for the richest and cut benefits for the poorest. That isn’t “difficult”, it’s immoral #PMQs

And Mike posted these two tweets

.@theresa_may is going over the usual arrogant nonsense about benefits. People are NOT better-off, and the govt is NOT saving money. We heard about her #ContemptOfParliament yesterday – now we are seeing her contempt for the people she is supposed to serve. #PMQs #PoliticsLive

.@theresa_may has no defence against claims by .@jeremycorbyn about mistreatment of the poor. All she can do is attack .@UKLabour because she cannot defend herself. We’ve heard this before and she’s coming across as a silly, braying old Scrooge. #PMQs #PoliticsLive

But if the Tories are secretly preparing for another general election, and the Tory photographs at foodbanks were part of that, as the Labour whips suspected, then Corbyn was absolutely right to remind Britain of the grinding poverty they had created.

Disability campaigner Paula Peters also tweeted asking people to remember the suffering and death done by the Tories and their benefit cuts. She tweeted

While everyone is concentrating on Brexit, spare some thought for disabled ppl losing PIP, social care, ESA, claimants sanctioned, facing eviction, going hungry. Many are dying & having human rights violated. Christmas isn’t happening for many. Rise up! #GTTO

Mike concluded his article with the statement:

It seems Mrs May has scored enough own goals herself to make such an uprising – at the ballot box – a distinct possibility.

Let us hope we all have a chance to demonstrate our opinion of her, and the privations she has inflicted on us, in the very near future.

https://voxpoliticalonline.com/2018/12/06/pmqs-drama-corbyn-outplays-may-and-her-poodle-press-by-highlighting-poverty/

Any such chance won’t come too soon!

Corbyn Attacks May for Laughing at Poor Wage Growth

December 5, 2018

This is a great little video from RT. It’s only less than half a minute long, but it shows Jeremy Corbyn tearing into Theresa May for laughing about the smallness of the rise in wages.

Corbyn says

The chief economist at the Bank of England describes the last decade as a lost decade for wages and well the Prime Minister might laugh at this, it’s the reality of peoples’ lives! It’s the reality of peoples’ lives!

It ends with the House in uproar and Bercow crying “Order! Order!”

But Corbyn’s right, as you can see when the video shows May and her wretched gang shaking their heads with their stupid, facetious smiles on their face. They’re no doubt trying to show that they don’t take his accusation seriously, but it instead shows that Corbyn is absolutely right. They don’t take ordinary peoples’ misery seriously. You could see that on a previous video, where Cameron and Iain Duncan Smith had a good guffaw as one woman told her story of how the bedroom tax had left her in poverty and despair. And May herself has done this before, when Corbyn has read out the letters he’s had from people describing how they’ve been left worse off – much worse off – due to the government’s benefit cuts.

They have no sympathy for the poor. Not a shred. All the care about is cutting taxes for the rich. Ordinary people are simply raw material for corporate capitalism, either as a workforce, who are to be kept on low wages to increase profits, or as consumers to be exploited. Like when the government privatizes the healthcare and educational systems, so that private medical firms and academy chains can get big profits from government contracts before the whole lot is privatized completely and they can exploit everyone through private hospital and insurance charges and school fees.

That snide, smug grin is the real face of Tweezer and her cabinet. They’ve got to go. All of them. NOW!

Corbyn Criticizes the Tory Budget

October 30, 2018

The main news story today is Philip Hammond’s budget. Details of it were released a few days, and it’s been discussed ever since. In it, Hammond, dubbed by some ‘Phil the Bleak’, is trying to convince the voting public that austerity is coming to an end, and more money is going to be pumped into welfare services like mental health and the NHS, and town centre shopping in the high street will be revitalized as business rates for the shops in those areas will be dropped.

It’s strange how all these promises were suddenly made just when the Tory party is seriously challenged by Jeremy Corbyn’s Labour, and is being widely attacked for its colossal ineptitude and massive divisions over Brexit, and the immense hardship it is causing with Universal Credit. I don’t doubt that the Tory press will hail – or in the case of the Daily Mail, heil, the budget as a genuine boost to the economy, which should be enthusiastically embraced by all right-thinking Brits. Just like I can remember the Sun’s headline screaming the benefits of Norman Lamont’s budget back in the late ’80s or first years of the ’90s: ‘The Lager of Lamont’. Which pretty much shows the level the Scum is aimed at – drunken yobs. And for ordinary people, you have to be drunk to think there’s any substance or real benefit in the budget.

Mike’s extensively critiqued it on his blog over the past few days. Yesterday he put up a piece showing that it was all a tissue of lies. Despite his claim that austerity is over, public sector pay is not going to rise, nor are benefits, the bedroom tax ain’t going to be repealed and there aren’t going to be 20,000 more police on our streets.

Furthermore, the tax cuts he’s promising will only really benefit the rich. As Mike points out, this is another swindle to decrease the amount the state takes in tax, which is then redistributed as benefits to the poor, or spent on public services.

But the Tories are still going to introduce 7 billion pounds’ worth of cuts. Hammond also said that

Brexit would not affect spending plans because he had assumed an “average-type free trade deal” between the UK and EU after Brexit, and had £4.2 billion in reserve in the case of a no-deal scenario.

Mike ends his piece by stating that this is also a piece of deception, saying

But you can bet that this will not be enough to deal with the consequences of a Tory Brexit. They want harmful effects because they will then be able to justify harsh cuts to your rights and living standards.

About the only welcome announcement in the whole sorry mess was the decision to stop using hugely-wasteful Private Finance Initiative (PFI) schemes.

One of Mike’s many excellent commenters, Barry Davies, points out that the PF1 and PF2 deals would simply become PPP, so there’s really no change there.

See: https://voxpoliticalonline.com/2018/10/29/its-phil-the-bleaks-fantasy-budget-would-you-buy-anything-hes-offering-before-brexit/

Actually, I think all Hammond’s promises are worthless for the same reason Mike does: their provisional. They only have force until Brexit occurs in March, when I full expect Hammond to announce that the terrible deal forced upon Britain by the European Union will mean that they’ll have to reverse their policies and start cutting benefits, public services and again reverse their spending on the NHS.

It’s all lies, from a government of liars, who lie and lie again without qualm of conscience.

Jeremy Corbyn has already responded. This little video from RT UK, posted yesterday shows him denouncing it as ‘a broken budget’. He says

The Prime Minister says austerity is over. This, Mr. Deputy Speaker, is a broken promise budget. What we’ve heard today are half measures and quick fixes while austerity grinds on and far from people’s hard work and sacrifices having paid off as the Chancellor claims, this government has frittered it away in ideological tax cuts to the richest in our society. This budget won’t undo the damage done by 8 years of austerity and doesn’t begin to measure up to the scale of the job that needs to be done to rebuild Britain. The government claims austerity has worked, so now they can end it, but that is absolutely the opposite of the truth, austerity needs to end because it has failed.

Corbyn’s right: austerity has failed. It’s failed working people, the poor, the disabled, the long-term sick, and the unemployed. But it’s done wonders for the rich, who’ve benefited massively from the Tories’ tax cuts, and privatization of public services, including the NHS. And, of course, the provision of cheap labour through the welfare to work industry, pay freezes and the removal of workers’ rights. Reforms all intended to make workers easy to hire and discard, and create a cowed workforce in constant fear of the sack and starvation, which will accept any work, no matter how precarious or poorly paid.

And as you can see from the video, when Corbyn laid into the budget, he was greeted with the usual Tory sneers and laughter, especially from Hammond and the Maybot, who jerked and spasmed as if she was suffering a short-circuit. Well, the Tories always find working class poverty a great laugh. You just have to remember how Cameron and IDS had a right good guffaw in parliament when one woman’s suffering due to the benefit cuts was read out.

Well, let’s cut their cackling short, and vote them out at the earliest opportunity.