Posts Tagged ‘Tax Havens’

J.A. Hobson on Capitalism and Imperialism

May 18, 2020

One of the crimes for which Jeremy Corbyn was pilloried as an anti-Semite was that he had written a foreword for an edition of J.A. Hobson’s book, Imperialism. First published in 1903, Hobson’s book has become one of the classic critiques of imperialism. Hobson considered that the motive force behind imperialist expansion and overseas conquest was capitalism and the continual need to find new markets. The book influenced Lenin’s own analysis of imperialism, Imperialism: The Highest Form of Capitalism. Fifty years after the book was published it was praised by the great British historian A.J.P. Taylor, who said that ‘No survey of the international history of the twentieth century can be complete without the name of J.A. Hobson’ because he was the first to identify imperialism’s economic motives. Hobson has been accused of anti-Semitism.

Imperialism and the Anti-Semitism Smears against Corbyn

I think it’s because he believed that Jewish financiers were behind the Anglo-South Africa or ‘Boer’ Wars. I think the real force was the British desire to expand into the African interior,  retain the Afrikaners as imperial subjects and acquire the riches of the southern African diamond fields as well as Cecil Rhodes own megalomaniac personal ambitions. However, when the various witch-hunters were howling about how anti-Semitic Corbyn was for endorsing the book, others pointed out that it was a very well-respected text admired and used by entirely reputable historians. Yes, it was a bit anti-Semitic. A very small bit – there was only one anti-Semitic sentence in it. It was another case of the witch-hunters grasping at whatever they could, no matter how small, to smear a genuinely anti-racist politician.

Financial Capitalism, Imperialism and the Decline of Ancient Rome

There’s an extract from Hobson’s Imperialism in The Penguin Book of Twentieth-Century Protest, edited by Brian MacArthur (London: Penguin 1988). This is a collection various writings protesting against a wide variety of issues ranging from indictments of the poverty of Edwardian England, to various wars, including Vietnam, Civil Rights and anti-Racism, as well as feminism, gay rights, the power of television and the threat of nuclear war. Yes, there’s an extract from Hitler’s Mein Kampf, but there’s also a piece by the American Zionist rabbi, Stephen S. Wise, against the persecution of the Jews in Nazi Germany as well as other condemnations of Nazis and their horrific rule. The book very definitely does not endorse Fascism or the Communism of Stalin, Pol Pot and the other monsters.

The extract included in the book does identify financial capitalism and militarism as the force behind Roman imperialism, which led to the enslavement of Rome’s enemies abroad and the emergence of an immensely wealthy aristocracy, while impoverishing ordinary Romans at the other end of the social hierarchy, and compares it to the comparable development of the British imperialism of his own time. The extract runs

The spirit of imperialism poisons the springs of democracy in the mind and character of the people. As our free self-governing colonies have furnished hope, encouragement and leadership to the popular aspirations in Great Britain, not merely by practical successes in the arts of popular government, but by the wafting of a spirit of freedom and equality, so our despotically ruled dependencies have ever served to damage the character of our people by feeding the habits of snobbish subservience, the admiration of wealth and rank, the corrupt survivals of the inequalities of feudalism. This process began with the advent of the East Indian nabob and the West Indian planter into English society and politics, bring back with his plunders of the slave trade and the gains of corrupt and extortionate officialism the acts of vulgar ostentation, domineering demeanour and corrupting largesse to dazzle and degrade the life of our people. Cobden, writing in 1860 of our Indian Empire, put this pithy question: ‘Is it not just possible that we may become corrupted at home by the reaction of arbitrary political maxims in the East upon our domestic politics, just as Greece and Rome were demoralized by their contact with Asia?’

The rise of a money-loaning aristocracy in Rome, composed of keen, unscrupulous men from many nations, who filled the high offices of state with their creatures, political ‘bosses’ or military adventurers, who had come to the front as usurers, publicans or chiefs of police in the provinces, was the most distinctive feature of later imperial Rome. This class was continually recruited from returned officials and colonial millionaires. The large incomes drawn in private official plunder, public tribute, usury and official incomes from the provinces had the following reactions upon Italy. Italians were no longer wanted for working the land or for manufactures, or even for military service. ‘The later campaigns on the Rhine and the Danube,’ it is pointed out, ‘were really slave-hunts on a gigantic scale.’

The Italian farmers, at first drawn from rural into military life, soon found themselves permanently ousted from agriculture by the serf labour of the latifundia, and they and their families were sucked into the dregs of town life, to be subsisted as a pauper population upon public charity. A mercenary colonial army came more and more displace the home forces. The parasitic city life, with its lowered vitality and the growing infrequency of marriage, to which Gibbon draws attention, rapidly impaired the physique of the native population of Italy, and Rome subsisted more and more upon immigration of raw vigour from Gaul and Germany. The necessity of maintaining powerful mercenary armies to hold the provinces heightened continually the peril, already manifest in the last years of the Republic, arising from the political ambitions of great pro-consuls conspiring with a moneyed interest at Rome against the Commonwealth. As time went on, this moneyed oligarchy became an hereditary aristocracy, and withdrew from military and civil service, relying more and more upon hired foreigners: themselves sapped by luxury and idleness and tainting by mixed servitude and licence the Roman populace, they so enfeebled the state as to destroy the physical and moral vitality required to hold in check and under government the vast repository of forces in the exploited Empire. The direct cause of Rome’s decay and fall is expressed politically by the term ‘over-centralization’, which conveys in brief the real essence of imperialism as distinguished from national growth on the one hand and colonialism upon the other. Parasitism practised through taxation and usury, involved a constantly increasing centralization of the instruments of government, and a growing strain upon this government as the prey became more impoverished by the drain and showed signs of restiveness. ‘The evolution of this centralized society was as logical as every other work of nature. When force reached the stage where it expressed itself exclusively through money the governing class ceased to be chosen because they were valiant or eloquent, artistic, learned or devout, and were selected solely because they had the faculty of acquiring and keeping wealth. As long as the weak retained enough vitality to produce something which could be absorbed, this oligarchy was invariable; and, for very many years after the native peasantry of Gaul and Italy had perished from the land, new blood, injected from more tenacious races, kept the dying civilization alive. The weakness of the moneyed class lay in this very power, for they not only killed the producer, but in the strength of their acquisitiveness they failed to propagate themselves.’

This is the largest, planest instance history presents of the social parasite process by which a moneyed interest within the state, usurping the reins of government, makes for imperial expansion in order to fasten economic suckers into foreign bodies so as to drain them of their wealth in order to support domestic luxury. The new imperialism differs in no vital point from this old example. The element of political tribute is now absent, or quite subsidiary, and the crudest forms of slavery have disappeared: some elements of more genuine and disinterested government serve to qualify and and mask the distinctively parasitic nature of the later sort. But nature is not mocked: the laws which, operative throughout nature, doom the parasite to atrophy, decay, and final extinction, are not evaded by nations any more than by individual organisms. The greater complexity of the modern process, the endeavour to escape the parasitic reaction by rendering some real but quite unequal and inadequate services to ‘the host’, may retard but cannot finally avert the natural consequences of living upon others. The claim that an imperial state forcibly subjugating other peoples and their lands does so for the purpose of rendering services to the conquered equal to those which she exacts is notoriously false: she neither intends equivalent services nor is capable of rendering them, and the pretence that such benefits to the governed form a leading motive or result of imperialism implies a degree of moral or intellectual obliquity so grave as itself to form a new peril for any nation fostering so false a notion of the nature of its conduct. ‘Let the motive be in the deed, not in the event,’ says a Persian proverb…

Imperialism is a depraved choice of national life, imposed by self-seeking interests which appeal to the lusts of quantitative acquisitiveness and of forceful domination surviving in a nation from early centuries of animal struggle for existence. Its adoption as a policy implies a deliberate renunciation of that cultivation of the higher inner qualities which for a nation as for its individual constitutes the ascendancy of reason over brute impulse. It is the besetting sin of all successful state, and its penalty is unalterable in the order of nature.

(Pp. 15-18).

Financial Capitalism Operating to Exploit Former Colonies and Undermine Domestic Economy

While the British Empire has gone the way of Rome’s, the same forces are still operating today. The Iraq invasion was really to enable western multinationals to seize Iraq’s state industries, and for the American and Saudi oil industry to seize its oil reserves. They weren’t about bringing it democracy or freeing its citizens. Although our former African colonies are now free, they are still plundered through highly unfair trade agreements. At home manufacturing industry has declined because Thatcherite economics favours the financial sector. And the immensely rich now hoard their wealth in offshore tax havens or invest it abroad, rather than in domestic industry. Thus denying British industry investment and making millions of domestic workers unemployed. There’s a further parallel in that in the later Roman Empire, the senatorial aristocracy retreated to their estates rather than pay tax, and so the tax burden increasingly fell on the ordinary Roman citizen. This is the same as the way the Tories have given vast tax cuts to the rich, which have ensured that the tax burden must also be increasingly borne by the poor.

Conservatives have also drawn parallels between the fall of the Roman Empire and today’s west. This has mostly been about non-White immigration, which they have compared to the barbarian invasions. But as Hobson’s Imperialism showed, capitalism and imperialism were connected and together responsible for Rome’s decline and fall. 

But strangely they don’t talk about that!

 

 

Shaw on Imperialism: Exploitation Abroad, Poverty and Unemployment at Home

May 13, 2020

As I may have already said, I’ve been reading George Bernard Shaw’s The Intelligent Woman’s Guide to Socialism, Capitalism, Sovietism and Fascism. It’s a brilliant book, in which the great Fabian playwright attacks and exposes the contradictions, flaws, poverty and inequality in capitalism and argues for a gradual, socialist transformation of society through nationalisation and the equalisation of incomes. Although it was written between 1924 and 1928 some of the topics Shaw covers are still acutely relevant. He argues for the nationalisation of the banks because private bankers have caused massive financial problems and concentrate so much on big business that small businessmen and women suffer through lack of funds. He also shows how the extremely wealthy should have their incomes reduced, because instead of doing anything genuinely productive with their money they simply hoard it. And that means sending it overseas. This is an acute problem now, with the super-rich hoarding their money unspent in offshore tax havens, instead of properly paying their fair share to build up the country’s health service and infrastructure.

Shaw is also acutely critical of imperialism for the same reason. He is not against imperialism per se. Indeed, he states that it would be admirable if we really had taken over the different lands of the empire for the benefit of the indigenous peoples. But we hadn’t. We’d taken them over purely for the enrichment of the capitalists through the exploitation of their non-White inhabitants.

The process, according to Shaw, began with the arrival of a single British trading ship. This was fine on its own, but others also arrived. Soon a trading post was set up, and then the merchants behind the trade demanded the entire country’s annexation. Capitalism preferred to fund socially destructive enterprises, like gin, rather than the socially useful, like lighthouses, which had to be set up and managed by the government. The market for gin had been saturated, and so the capitalists had proceeded to look abroad for more profits for the gin trade. And once a country was conquered and incorporated into the empire, its Black inhabitants were forced into commercial labour unprotected by legislation, like the Factory Acts, that protected British workers.

These overworked, underpaid, exploited colonial workers were able to produce goods that undercut those of domestic, British manufacturers. As a result, British businesses were going bankrupt and British workers laid off, except for those in the service industries for the extremely wealthy. The great mill and factory towns of the north and midlands were declining in favour of places for the genteel rich, like Bournemouth.

Ordinary working people couldn’t starve, as the capitalist class had grudgingly allowed the establishment of the dole following the mass unemployment that followed the First World War. But there weren’t any jobs for them. This was why the British government was encouraging them to emigrate, promising to pay £12 of the £15 fare to Australia if the worker would provide £3 him- or herself.

Now Shaw’s description of the foundation and expansion of the empire is obviously over-simplified, but nevertheless contains more than a grain of truth. Both Fiji and New Zealand were annexed because they had suffered an influx of White settlers through trading ships. The people arguing for their annexation, however, did so because they were opposed to the indigenous peoples’ exploitation. The White settlers in Fiji were aiming to set up a government for Whites with an indigenous king, Cakobau, as puppet ruler to give it a spurious legitimacy. More enlightened colonists therefore persuaded Cadobau and his government to approach Britain and ask for annexation in order to prevent the dispossession and enslavement of indigenous Fijians. In New Zealand the request for annexation was made by Christian ministers, who were afraid that the country would be conquered for Roman Catholicism by France on the one hand, and that the whalers and other traders who had already settled there would destroy and exploit the Maoris through alcohol, prostitution and guns.

And the enslavement and exploitation of the indigenous peoples certainly occurred. Apart from enslavement and dispossession of the Amerindians and then Black Africans in the first phase of British imperialism from the 17th century to the end of the 18th, when the British empire expanded again from the early 19th century onward, it frequently did so under the pretext of destroying the slave trade. However, once we were in possession of those territories, indigenous slavery was frequently tolerated. Moreover, British colonists often used forced labour to build up their plantations and businesses. This occurred around about the time Shaw was writing in Malawi. When slavery was outlawed in the British empire in 1837, the planters replaced it with nominally free indentured Indian labourers, who were worked in conditions so atrocious in the notorious ‘coolie trade’ that it was denounced as ‘a new system of slavery’.

The British government had also been encouraging its poor and unemployed to emigrate to its colonies as well as the US in what historians call social imperialism from about the 1870s onwards.

Reading this passage, however, it struck me that the situation has changed somewhat in the last 90 or so years. Britain is no longer exporting its surplus labour. All the countries around the world now have strict policies regarding emigration, and the developed, White majority countries of Canada, New Zealand and Australia are busy taking in migrants from the developing world, like Britain and the rest of the West.

But the super rich have found a way to surreptitiously go back on their early policy of providing welfare benefits for the unemployed. Through the wretched welfare reforms introduced by Iain Duncan Smith and other Tory scumbags, they’ve torn holes in the welfare safety net with benefit sanctions, fitness to work tests and a five week waiting period. The result is that the unemployed and disabled are starving to death. And those that aren’t are frequently prevented from doing so only through food banks and private charity. This has been changed somewhat with the expansion of welfare payments for workers on furlough and food packages for the vulnerable during the lockdown, but this is intended only to be a temporary measure.

I can remember when globalisation first began in the 1990s. It was supposed to lead to a new era of peace and prosperity as capital moved from country to country to invest in businesses across the globe. But the result for Britain has been mass unemployment. And while developing nations like India have massively profited, it has been at the expense of their own working people, who are now labouring for lower pay and in worse conditions than ever.

The empire has gone to be replaced by the commonwealth. But what Shaw said about it and the exploitation and poverty it caused is true of today’s neoliberal global economy.

Except instead of encouraging emigration, the Tories and the rich have found ways to starve to death Britain’s surplus workers.

Yay! Denmark Rules Tax-Haven Companies Ineligible for their State Aid

April 20, 2020

Bravo to our friends across the North Sea! Mike posted a piece last night reporting that the Danish government had passed legislation preventing companies registered in tax havens, or which issued dividends or bought back shares from receiving the state assistance given to companies struggling under the Coronavirus lockdown.

This is great, because it shows the Danes are determined to make sure the money goes where it’s needed – to businesses and people who are really in trouble, and who actually pay their fair share of tax. It isn’t going to be used as a scam to make their already obscenely rich even richer.

However, as the peeps Mike quotes on Twitter point out, there is absolutely no possibility of Britain following suit. Why? Easy! The Tories only listen to their donors, and their donors are extremely rich people with their money squirreled away in tax havens. It’s also been suggested that the party is actually only being kept afloat financially by American hedge fund managers resident in London.

This is quite apart from the fact that the Tories are like the American Republicans, absolutely committed to corporatism. This is the domination of government by private, big business interests. It’s the military-industrial complex Truman warned Americans against. It’s been described as ‘socialism for the rich’. In this form of capitalism, state aid in the form of tax relief and subsidies is given to the rich, while welfare spending for the poor is reduced or abolished. It’s been attacked in America by the book Take the Rich Off Welfare, published by Feral House. But any move actually to do this is immediately attacked as an evil leftie plot to penalise success. It’s thus died in with Republican and Tory Social Darwinism which sees the rich as biologically superior, who deserve their wealth and privilege, and the poor as biologically inferior and so undeserving of state aid.

The Danes have shown that they’re willing and able to challenge the corporatism dominating Britain and the US. It’s too bad for us that our elites won’t follow. But perhaps that might change if the rest of Europe follows their example.

See: https://voxpoliticalonline.com/2020/04/19/coronavirus-this-tax-haven-exclusion-is-just-one-way-the-uk-is-missing-the-chance-to-change/

Private Eye Attacks the Tories’ Stupid and Damaging ‘Free Ports’ Policy

February 20, 2020

Eight days ago on 12th February 2020, Mike put up a piece criticising the Tories’ great new wheeze for invigorating Britain’s economy. They want to set up ten ‘free ports’ after Brexit, in which there will be no import/ export tariffs on goods if they aren’t moved offsite. No duty is paid, if these goods are re-exported, so long as they don’t come into the UK. Similarly, no duty will be paid on imported raw materials if they are processed into a finished product, provided that these aren’t then move to the rest of Britain.

Mike comments

No doubt the businesses involved in taking raw materials, processing them and re-exporting them would have their head office based in a tax haven.

So, who benefits? The UK economy won’t!

See: https://voxpoliticalonline.com/2020/02/12/who-will-profit-from-post-brexit-freeports/

This is exactly the same point made by Private Eye in its latest issue for 21st February to 5th March 2020. In its article, ‘Unsafe Havens’, the Eye says

Given Rishi Sunak’s background in offshore finance, it’s no surprise he will soon be turning parts of the UK into tax havens. Just three days before last week’s promotion, the eager-to-please Sunak launched hi spet policy for freeports around the UK.

He first pushed the plan as a relatively new MP in a 2016 paper for the right-wing Centre of Policy Studies. Now he has his hands on the tax controls and can do whatever it takes to entice major investment in the zones (ie big tax breaks and few questions asked).

At this point, warnings from the EU begin to sound ominous. Although Sunak claimed that freeports, which exempt imports from various taxes and tariffs in great secrecy, weren’t possible within the EU, there are in fact 82 of them. But the EU has found they do far more harm than good. And on the very day Sunak launched his consultation promising to “unleash the potential in our proud historic ports, boosting and regenerating communities across the UK as we level up”, the European Commission was clamping down on freeports yet further, pointing to a “high incidence of corruption, tax evasion, criminal activity”.

Even Sunak innocently asks in his consultation: “In your view, are there any particular tax policies that you think could increase the risk of tax avoidance or tax evasion activity being routed through a freeport?” To which the correct answer is: yes, the freeport policy itself.

I was immediately suspicious of this policy, because it looks like an attempt to copy the Chinese ‘Special Economic Zones’. These are islands of unrestricted capitalism in certain provinces, where there are very low taxes and, I believe, employment rights for workers. They have helped to turn the country into an economic superpower, but the cost is immense. There is massive worker exploitation, and there have been well-publicised cases of employees at various companies, who have committed suicide because of their ill-treatment. So much so that one company responsible for extremely poor working conditions put up suicide nets around one of its factories in order to catch staff trying to end their lives but jumping off. China’s an extremely authoritarian state, but there are rumblings of discontent from its impoverished and exploited workers and human rights activists.

Way back in the late 19th and very early 20th century a nasty term, ‘Chinese slavery’, was applied to conditions like this. Part of the impetus in the formation of the early Labour Party was the fear among British workers that the government was going to force them into similar conditions.

The Chinese shouldn’t have to work in such exploitative environments, and neither should Brits – who include people of Chinese descent, who have been here for generations. This is yet another nasty, exploitative idea from a nasty exploitative party, which feels that the workers, whether White, Black or Asian, should be forced into conditions of near slavery.

While they enjoy the profits funneled through tax havens.

‘I’ Review of Movie About British Iraq War Whistleblower

October 25, 2019

One of the flicks coming to our cinemas, if it isn’t there already, is Official Secrets, the film about whistleblower Katharine Gun’s attempt to prevent Blair’s illegal and criminal invasion of Iraq by leaking government emails about it. The I printed a review of it by Demetrios Matheou in last Friday’s edition for the 18th October 2019. Entitled ‘Spies, lies and a drama that resonates’, this ran

Early in the political drama Official Secrets, Keira Knightley’s real-life whistle-blower Katharine Gun watches Tony Blair on television, giving his now-infamous justifcation for the impending Iraq War, namely the existence of weapons of mass destruction. “He keeps repeating the lie,” she cries. “Just because you’re the prime minister doesn’t mean you get to make up your own facts.”

There’s simply no escaping the resonance. The current occupant of No 10 isn’t the first to economical with the truth; the real shock is that we keep on putting up with it. And the power of the film resides in the fact that the idealistic, courageous Katharine Gun would not.

The film opens with Gun about to face trial for breaching the Official Secrets Act – Knightley’s face expressing the sheer terror of someone in that position – before winding back a year to explain how she got there.

Katharine is working as a Mandarin translator at the intelligence agency GCHQ in Cheltenham. One day, she and her colleagues receive a classified email from America’s National Security Agency, requesting that the Brits spy on delegates from the United Nations Security Council, with a view to blackmailing them to vote for the resolution in favour of war.

In the UK, the very idea of the war is historically unpopular with the public. And here is evidence of its illegality. Katharine secretly copies the memo and smuggles it out to a friend who is an anti-war activist, through whom it reaches Observer journalist Martin Bright (Matt Smith). 

Until now, the film has been operating on something of a whisper. Once Smith appears on screen – quickly followed by the equally energetic (nay, combustible) Rhys Ifans as fellow journalist Ed Vulliamy – there is a sonic boom. From her, the action switches urgently between the paper’s investigation of the memo’s authenticity and Katharine’s personal hell as the leak is revealed, which includes the threat of deportation from her Muslim husband, Yasar.

Gavin Hood is an intriguing director, alternating between mainstream fare (X-Men Origins: Wolverine) and issues-based dramas charting government malfeasance, such as rendition (Rendition) and the use of drone strikes (Eye in the Sky). He is on strong form here, with a film that’s gripping, righteous, relevant, moving – in short, a very good yarn that just happens to be true.

At the heart of it is Knightley, impressively commanding as a woman who is principled and defiant, but also deeply vulnerable as the government cranks up its intimidation. Around his star, Hood has assembled a comprehensively find cast, with a particularly lovely turn by Ralph Fiennes as the lawyer determined to defend Gun against the odds. 

This looks like a brilliant movie, and I’d like to see it if and when it comes to my neck of the woods. Over one million people marched against the invasion, not just Muslims, but also people of all races and religions and none. One of the marchers was a priest from my local church. I’ve reviewed a book on this site presenting a very strong case that Blair’s invasion constitutes a war crime, for which the slimy creature should be prosecuted along with Bush. According to the late William Blum, there were attempts to do just that, but they were stymied by the British and American governments. The demonstrators’ chant is exactly right: ‘Blair lied, people died’. But despite this and subsequent books exposing his venality and legal tax-dodging through a complex mass of holding companies and off-shore tax havens, he still seems to think that he’s somehow the great champion of British politics. He’s been one of the figures behind the attempts to create a new ‘centrist’ party, and every now and again he pushes his head up from wherever pit in which he’s been hiding to make some comment about contemporary politics. Usually about Jeremy Corbyn and the Labour party. 

Hopefully this picture will remind people that ‘Teflon Tony’ wasn’t some kind of visionary statesman. He was a butcher, who backed the illegal invasion of a country for no better reason than the multinationals’ desire to loot their oil wealth and state industries. Oh yes, and cut off Hussein’s occasional support for the Palestinians. Thanks to him and his master, Bush, hundreds of thousands of people in Iraq and the Middle East have died or been displaced, a country has been wrecked and its secular, welfare state dismantled and reduced to chaos and sectarian violence. This bloody, illegal war has also claimed the lives of good men and women in the forces and in the civilian organisations trying to rebuild the country.

As for the reason why people like Blair keep getting elected – if government in this country had been genuinely accountable, they wouldn’t. It shows a flaw in our political system, a system in which the media must take its share of the blame. Warmongers like Blair get elected because they have the full support, with some exceptions, of the Thatcherite press and Murdoch papers. The same papers that are trying to bring down Jeremy Corbyn. 

 

 

The Discreet, Poisonous Corporatism of the Labour Party Quitters

February 19, 2019

Yesterday, a group of seven MPs formally split from the Labour party. Now going independent, this glittering array of third raters, has-beens and deadbeats were supposed to form the nucleus of this new, shiny Blairite ‘centrist’ party that has been mooted for the past year or so. The group included such luminaries as Gavin Shuker, Luciana Berger, Chris Leslie, Chuka Umunna, Angela Smith, Mike Gapes and Ann Coffey. They were all Blairites, who had been trying to overthrow Corbyn or undermine his leadership since he was elected head of the party. Or else had been threatening to quit.

Comparisons have been made to the Labour split in the 1980s which saw the notorious ‘gang of four’, including Roy Jenkins and Shirley Williams form the short-lived Social Democratic Party. They ended up shortly forming an alliance with the Liberals before finally merging with them to form the Liberal Democrats. At the time there much verbiage in the press about the SDP ‘breaking the mould’ of British politics. It didn’t happen, despite the TV critic Clive James in his Observer column sneering at Tony Benn, who said that support for the SDP had peaked. But, as Zelo Street has pointed out, the comparison also doesn’t do the Quitters any favours in another way. Some of the MPs, who formed the SDP were actually first rate politicos. As Home Secretary in the 1960s, Roy Jenkins oversaw some profound changes in the liberalization of British society. Like the partial decriminalization of homosexuality, for which, among other things, he’s still bitterly resented by the Tory right today. Reading Shirley William’s 1979 book, Politics Is For People, it’s clear that she did have a powerful mind with strong, distinct views on how socialism should improve British society and industry.

This bunch, by contrast, don’t seem to have any distinct views or anything more to offer than rehashed, warmed up Blairism. Before their website crashed yesterday, Zelo Street was able to get on it and read what they had to say. Which seemed to be a lot of flannel. More fine-sounding words about democracy which didn’t actually come down to meaning very much. The website said

Our primary duty as Members of Parliament is to put the best interests of our constituents and our country first. Our free media, the rule of law, and our open, tolerant and respectful democratic society should be cherished and renewed. We believe that our Parliamentary democracy in which our elected representatives deliberate, decide and provide leadership, held accountable by their whole electorate is the best system of representing the views of the British people. Zelo Street remarked that the first part of this statement, about cherishing and renewing free media, rule of law and democratic society doesn’t actually mean anything, while the second – about parliamentary democracy being the best method of representing the views of the British people – is just what every MP in the House believes.

But what the group really stands for is best shown by the group’s legal organization and its members’ very cosy relationship with private enterprise. The group’s website was set up in 2015 in a tax haven. The new party actually isn’t a party. It’s been registered as a private corporation, Gemini A, which means that it doesn’t have to identify its backers. This also, apparently, makes it exempt from the spending restrictions on campaigning which apply to genuine political parties.

And then there’s Angela ‘People of funny tin…’ Smith’s connection with private water companies. Smith is chairman of the all-party water group, which is mainly funded by private water companies like Wessex Water and Affinity Water. Talking to Smith on This Morning Yesterday, Ash Sarkar pointed out that her group were some of the very few people left, who still believe in water privatization. She predicted that people would like at Smith’s leadership of the group and say, ‘You know what, that stinks of corruption’.

Sarkar isn’t going to be wrong either. The Canary in their article on this pointed out that 83 per cent of the population want the water companies to be renationalized. And Blair’s very strong links to private industry were very heavily criticized when he was power. Blair was a corporatist, who gave business leaders and senior management key positions in government in exchange for donations. This whole, nasty web of corporate links was exposed by the Groaniad’s George Monbiot in his book, Captive State, which lists various businessmen and the government positions Blair gave them. Even at the time Blair’s government was notorious for doing political favours in return for donations, as Blair did for Bernie Ecclestone, the Formula One magnate, in return for something like a million pounds of corporate dosh.

‘Bevan Boy’ described what other Blairite policies this crew probably also stand for in this tweet, quoting by Mike in his article on them:

What will this new “Centrist” party stand for?
More Austerity?
Rampant marketisation & uncontrolled capitalism?
Neoconservative Thatcherism?
I suspect all of the above under a pro EU banner. The policies are being rejected & thank Christ they are.
We need a socialist LAB govt!

And what the splitters really think of democracy is shown by the fact that none of them actually want to hold a bye-election and give their constituents a say in whether they want them to represent them in parliament. It’s been pointed out that only one per cent of voters say that they actually vote for the individual MP, rather than the party. But these avowed democrats really don’t want to give their constituents the opportunity to decide whether they want to keep them as their MP or whether they want to elect someone else.

Which is what you could expect from a group that includes Luciana Berger. Berger, or should that be Lucrezia Borgia?, was facing a vote of no confidence from her local constituency. She then declared that they were bullying her, and demanded Jenny Formby expel the constituency party from Labour. Formby told her that she had no cause to do this and refused.

But Borgia, sorry, Berger, has carried on whining about bullying and intimidation nonetheless. Just as all the Quitters have moaned about anti-Semitism. The truth is, anti-Semitism is not the reason they’re splitting. It never has been. It has only been a convenient stick with which to beat Corbyn and his supporters. In fact anti-Semitism in the party has fallen under the Labour leader. It is lower in the Labour party than in the others and in the general British population. And the anti-Semitism accusations against him and the majority of those accused are nothing but contrived smears.

The real truth is that Berger, Umunna, Shuker, Leslie, Smith, Coffee and Gapes are corporatist anti-democrats. They wish to hang on to power against the wishes of their constituents, in order to promote the power of private corporations. Just as Mussolini and Hitler promoted private industry and gave it a seat in government and the management of the economy in Fascist Italy and Nazi Germany.

For further information, see:
https://voxpoliticalonline.com/2019/02/18/mps-split-off-from-the-labour-party-voters-say-good-riddance/

https://voxpoliticalonline.com/2019/02/18/mps-split-off-from-the-labour-party-voters-say-good-riddance/

http://zelo-street.blogspot.com/2019/02/the-independent-group-on-way-out.html

https://www.thecanary.co/trending/2019/02/18/ash-sarkar-takes-down-a-resigning-blairite-mp-so-brutally-a-bbc-host-intervenes/

Another Empty Promise from May: ‘I’m Getting What the British Public Wants from Brexit’

February 2, 2018

Another vapid, empty piece of spin from Tweezer. I heard this today on the breakfast news, and really couldn’t let it go.

Over the past few days, May has been running around trying to negotiate trade deals with the Chinese. When asked about the negotiations to leave the EU, May responded ‘I’m getting what the British public want from Brexit’.

It’s a bald lie. For a start, a large part of the British population didn’t vote ‘Leave’. The majority of Scots and Ulster people voted to remain. It’s only the English that voted to leave the EU. And an increasing number of them have changed their minds, so there’s growing support for a second referendum to be taken on this issue.

And May’s own party is hopelessly divided on the issue. Mike has put up articles on the coterie of Hard Brexiteers that has coalesced around various cabinet members and leading Tories, including Young Master Rees-Mogg. For them, it’s not so much what the public wants that’s important, as what’s important to them and their donors and supporters as managers and senior executives in the financial sector. They’d like to turn Britain into another tax haven just outside the Eurozone, as this would benefit the banking industry. Never mind the damage that it would do to manufacturing, or the immense poverty that would be inflicted on the ordinary working people of the UK as they repeal even more workers’ rights and destroy the very last remnants of the Health Service and welfare state. Just so long as those bankers’ bonuses keep rolling in, and there are nice, fat dividends for the shareholders.

And the Tory party, and particularly May, has always been extremely vague about what kind of Brexit deal they would strike. Remember a few years ago when May was mechanically intoning ‘Brexit means Brexit’ at every speech and interview, all the while glaring at her interlocutors as if it was them, not her, who was unbelievably stupid, simply for asking the question. She had nothing to offer, and could make absolutely no promises. But like Maggie Thatcher, her response to a difficult, reasonable question she couldn’t answer was to go on the offensive and try to make the other person look stupid. I can remember how Maggie replied with the highly considered, detailed response ‘Oh, you stupid man!’ after one journalist dared to ask her a question she couldn’t answer. ‘Brexit means Brexit’ was a response in a similar vein, though without Thatcher’s ad hominem abuse.

Then there are the jokes Merkel has been making at Tweezer’s expense. I blogged yesterday, following Mike, about the way Frau Kanzlerin has been joking about the circular nature of negotiations. May will say to her, ‘Make me an offer’. Merkel will respond, ‘We don’t have to. You’re leaving.’ At which May will repeat, vacuously, her appeal. ‘Make me an offer’. It’s less a business negotiation between equals as May begging for some kind of deal, no matter how bad.

And it shows that the one thing that May is definitely not getting is what the public wants from Brexit.

But all we’re getting from her and the rest of the Tories is more lies and spin to try and deceive us into believing it’s so.

Merkel Claims May Begs Her to ‘Make Me an Offer’

January 31, 2018

Remember when the Tories were trying to convince everyone that Tweezer was ‘strong and stable’, and could be trusted to get us a good deal on Brexit? Oh, how times have changed!

Mike put up a story yesterday, reporting that the German Chancellor has been making jokes at our PM’s expense about her negotiating style. According to die Kanzlerin, all the negotiations between her and May go round in circles, with both of them saying exactly the same things. May will say, ‘Make me an offer.’ Merkel will reply, ‘We don’t have to. You’re leaving.’ At which point May will repeat her first request. Merkel then repeats her reply, and the conversation goes on, round and round in circles.

See Mike’s article at: https://voxpoliticalonline.com/2018/01/30/brexit-make-me-an-offer-says-may-but-nobody-wants-to-talk-with-her/

Now before we go any further, it needs to be said that domestically Merkel is in a precarious position. She’s hung on to power, but her decision to welcome the wave of Middle Eastern refugees from Syria and North Africa a few years ago has damaged her popularity, and boosted that of the Nazi AfD. I also gather that there are problems about whether or not the SPD will join her grosse Koalition. They joined a coalition with her before, only to find their share of the vote declining as Merkel’s Conservative Christian Democrats took the credit for genuine improvements in the benefits system, which had actually been done by the SPD. The pressure’s on Merkelt to make herself look strong for the voters in Germany.

But this actually shows how weak May is. If this is right, then it shows how May actually doesn’t have anything to negotiate with. As we’re leaving the EU, they don’t actually have to make any concessions to us whatsoever. But the country needs them to, as does May personally. And so her remark to Merkel, ‘Make me an offer’, sounds less like an invitation by a skilled business negotiator in a Hollywood drama to productive talks than begging by a desperate and embattled PM. It also seems to show that May can’t talk, except in clichés she’s learned from the movies. Or had programmed into her by her handlers at Tory Central Office. But the cliché, coming as it does from Hollywood, is there to convince someone that actually she’s a tough negotiator. Perhaps she’s trying to persuade Merkel that she’s going to be able to make an offer Merkel can’t refuse. In which case, she and the Tory hordes behind her are very, very sadly deluded.

May needs an offer, any offer, even if it’s one she has no option but to reject, in order to show the Tory faithful and the voting public that she is able to negotiate any kind of settlement at all. And Merkel is determined to show her the opposite: that she’s in absolutely no position to demand anything.

Thus the Brexiteers, far from leading Britain back into a resurgence of pride and sovereignty, as people like Jacob Rees-Mogg would have us all believe, have actually done the opposite. Repeated studies have shown that Brexit will damage our economy, and the process has left the Prime Minister suppliant and begging before Merkel and the other leaders of the EU.

So much for ‘strong and stable’.

Not that Young Master Rees-Mogg is upset. Mogg makes his money, or a fair part of it, from investments, and so hopes that by going outside the EU and turning Britain into a low tax, low regulated economy just outside the EU, they can make Britain into a colossal tax haven for the global financial industry. No matter that the rest of the British economy, such as manufacturing, and its working people, have already suffered because of the Thatcherite promotion of the financial sector. Mogg’s a true blue, Tory aristocrat, who has consistently voted to give him and his class generous financial rewards, while cutting welfare for the poor, the disabled and working class. This shows his priorities, and those of the Hard Brexiteers that stand behind him. Whatever deal he wants to negotiate will very definitely not benefit anyone, who isn’t a millionaire investment banker.

Martin Odoni: Lack of Brexit Impact Assessments Means Government Should Go

December 7, 2017

There were calls last week for David Davis to reveal the 60 or so impact assessments on Brexit, that the government had compiled and was supposed to be suppressing. Davis himself was facing accusations of contempt of parliament for refusing to release them. Now he has revealed that, actually, there aren’t any. Mike over at Vox Political has put up a short piece from Martin Odoni over the Critique Archives, who makes the obvious point: the government is seriously negligent, and should go. The members of every opposition party in parliament should unite and demand their resignation. He makes the point that the referendum was conducted so that Cameron could get the Tory right on board, and that in the 2 1/2 years since it is absolutely disgraceful that the Tories simply haven’t bothered to work out how Brexit would affect Britain.

http://voxpoliticalonline.com/2017/12/07/if-there-are-no-brexit-impact-assessments-the-entire-tory-government-is-grossly-negligent-and-must-go/

I can’t agree more. Every day brings fresh news of how Brexit is damaging Britain’s economy and world status. Today there was a piece on the news reporting that universities are finding it difficult to recruit foreign graduates, thanks to Brexit. We have lost three regulatory bodies to Europe in the past week. Mike has also reported that Britain’s scientists will also losing funding due Brexit, as they will no longer be quite so much a part of the European science infrastructure.

At the same time the Tory right is trying to strip the human rights and workers’ rights legislation out of British law, to make it even easier to fire and exploit British workers. And British businesses are wondering how well they will fare without access to the single market.

Brexit is a mess. And you could tell it was going to be a mess, from the way the Maybot mechanically intoned ‘Brexit means Brexit’ whenever anyone asked her what Brexit meant, all the while staring at the interlocutor as if they, not she, were the stupid one. The Tories have no plan, only slogans and lies. In this case, we’ve seen Michael Gove pop up again and again to give his spiel about how wonderful everything will be after Brexit. As has Young Master Jacob Rees-Mogg. Gove was on the One Show Last Night in an article about the crisis hitting the British fishing industry. And guess what – he said that Britain would once again have the largest, or one of the largest fishing fleets in the world, after Brexit.

As Christine Keeler said all those years ago, well, he would say that, wouldn’t he?

Many people voted for Brexit because they were genuinely sick and tired of the neoliberal policies forced upon Britain and the other European countries by the EU. This was quite apart from the nationalist and racist fears stoked by UKIP about foreign, and specifically Muslim, immigration.

In fact, Brexit has been promoted by the financial sector and its Tory cheerleaders so that Britain can become another offshore tax haven. It’s part of a very long-standing Tory policy going right back to Maggie Thatcher, that has seen the financial sector given priority over manufacturing. The attitude became official policy under Blair, when it was announced that we shouldn’t try to restore our manufacturing industries, and should concentrate on the financial sector and servicing the American economy.

It’s a profoundly mistaken attitude. Ha-Joon Chang in his books on capitalism states very clearly that manufacturing is still vitally important for the British economy. If it occupies less of the economy, it’s because it hasn’t grown as much as the financial sector. But it’s still the basis of our economy.
But I doubt that will cut much ice with Tory grandees like Jacob Rees-Mogg, who makes his money through investments, rather than actually running a business that actually makes something.

And so the British economy is being wrecked, British businesses are looking at ruin, and British workers looking at precarity and unemployment, because the government in this issue is guided by tax-dodging bankers.

The Tories have been colossally negligent to the point of treating the British public with absolute contempt. Mike and Mr Odoni are absolutely right.

They should resign. Now.

Crisis and Closures in the Academy Schools

September 13, 2017

One of the major issues is the Tories’ continuing attempts to destroy whatever remains of value in the British education system, all for the profit of big business. Last week, one of the academies closed only a week after it had opened. I did wonder what would happen to its pupils. Would they be thrown out and denied an education, as they had enrolled in the wrong school and there may not be places available in the other local schools.

Fortunately, that’s not going to happen. From what I understand the school will be kept open until someone else is found to take it over.

But it is still absolutely scandalous that British schools are now run by private companies, who can announce at any time that they are no longer interested in running them. Especially as tens of millions of taxpayers’ money is given to individual academies, far beyond the budget for the local LEA. In some cases, the amount spent on an academy can reach £40 million, while the budget for the LEA is under a million.

As for replacing LEA’s, from what I understand from talking to friends about them, the authorities dictate that schools can only join certain academy chains. This makes a mockery of the claim that they are outside LEAs, as these chains in effect act as them. But I suppose as the academy chains are all privately run, the government thinks this is just as well then.

I also understand that one of the academies in Radstock in Somerset doesn’t even belong to a chain based in the UK. The chain’s based in Eire, and all its directors live across the Irish Sea. I can’t say I’m surprised. Eire attempted to encourage investment by massively cutting corporate taxes, in the same way that the Tories are doing for Britain. Thus you find many businesses, that actually do their work in Britain, have their headquarters over there, using the country as a tax haven. And the ordinary people of Ireland have paid for this, just as we Brits are paying for the Tories’ self-same policy over here. One of the books I found rooting through one of the bargain bookshops in Park Street was by an Irish writer describing the way his country’s corporate elite had looted the country and caused its recession. Like the banksters in Britain and America.

The academies are a massive scam. They were launched under Maggie Thatcher, and then quietly wound up as they didn’t work. Blair and New Labour took over the idea, as they did so much else of the Tories’ squalid free market economics, and relaunched them as ‘city academies’. And then, under Dave Cameron, they became just ‘academies’.

They were never about improving education. They were about handing over a lucrative part of the state sector to private industry. They aren’t any better at educating children than state schools. Indeed, many can only maintain in the league tables by excluding poorer students, and those with special needs or learning difficulties. And if state schools had the same amount spent on them as those few, which are more successful than those left in the LEAs, they too would see improved standards.

In fact, academies offer worse teaching, because as private firms in order to make a profit they have to cut wages and conditions for the workforce to a minimum. And with the Tories freezing public sector workers’ wages, it’s no wonder that tens of thousands of teachers are leaving the profession.

And those companies interested in getting a piece of this cool, educational action are hardly those, whose reputation inspires confidence. One of them, apparently, belongs to Rupert Murdoch, at least according to Private Eye again. Yes, the man, who has almost single-handedly aimed at the lowest common denominator in print journalism, lowering the tone and content of whatever newspaper he touches and whose main newspaper, the Sun, is a byword for monosyllabic stupidity and racism, now wants to run schools. Or at least, publish the textbooks for those who do.

Academy schools are a massive failure. They’re another corporate scam in which the public pays well over the odds for a massively inferior service from the private sector, all so that Blair and May’s mates in the private sector could reap the profits.

It’s time they were wound up. Get the Tories out, and private industry out of state education.