Panama: the way capitalism works

April 8, 2016 at 7:32 pm (banks, capitalism, corruption, posted by JD, Tory scum)


A squirming Cameron finally admits to having profited from his late father’s offshore investment fund

By Martin Thomas (edited by JD: the full article appears in the current issue of Solidarity)

Each week the capitalist economic system pumps new wealth, created by the labour of workers across the whole economy, into the pockets of owners and shareholders and their associates, advisers, bankers, lawyers, and so on.

No-one denies that. Those who defend capitalism as the best system available reply only that it is a manageable problem.

The greed for riches (so they say) motivates the capitalist class to innovate and improve efficiency. And the rich pay taxes. And they put their wealth into new investments which create new jobs. The Panama Papers show that in fact the rich hide their money in offshore tax havens and often pay little tax. They invest productively only when they feel fairly sure of large private gains, and much of their loot is spent on luxury and on swindling.

The papers, revealed on 3 April, are a stash of documents from just one law firm, Mossack Fonseca, based in Panama, which specialises in helping the rich by setting up for them obscure companies in which to hide their wealth, based in low-tax areas.

Many of these companies are in the British Virgin Islands, a tiny group of Caribbean islands which is a British Overseas Territory, but outside British tax laws. The islands are home to just 28,000 inhabitants, but to 950,000 companies.

As lawyer Geoffrey Robertson says: “Britain is at the heart… of international tax avoidance by allowing these little remnants of empire to have tax secrecy laws and enable offshore trusts and offshore companies to operate without transparency”.

Not all “shadow banking” (banking-type operations by non-banks) is offshored, but a lot is.
Still booming in fact, according to a recent Financial Times report, doubled in numbers in London since the 2008 crash, are family offices, firms of lawyers and financiers employed by wealthy families to manage their loot and save it from taxes.

The working class, which produces that wealth, should keep it in common ownership and under democratic control.

As the socialist Jean Jaures said in the French parliament when a great financial scandal of the 19th century, also called Panama, broke: “It isn’t enough to brand and denounce the scandals… It would be a sad contradiction not to take up the struggle against that power that holds the railroads, the banks, and all the large enterprises…It’s the beginning of the trial of the dying social order, and we are here to substitute for it a more just social order”.

The 19th century scandal has another lesson. To go beyond indignation to propose socialist solutions, taking the loot back into common ownership may also be necessary to stop the scandal being exploited by right-wing demagogues who are in fact the looters’ friends.

Frederick Engels wrote about the 19th century Panama: “This business brings the moment considerably nearer when our people will become the only possible leaders of the state in France. Only, things ought not to move too quickly; our people in France are not ripe for power by a long way…In the meantime, that ass Boulanger [a proto-fascist anti-semitic demagogue who had come close to seizing power in 1889] had not shot himself [which he did, literally, in 1891, first having fled to exile], he would now be master of the situation… If only some general or other does not swing himself to the top during the interval of clarification and start war, that is the one danger”.

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The Guardian and the Panama Papers

April 4, 2016 at 5:17 pm (capitalism, corruption, crime, Guardian, Jim D, media, Russia, tax)

Capture of the Guardian's totally accidentally misleading headline.

Above: from the Guardian’s  front page today

The ‘Panama Papers’ is without doubt the biggest and most important story (so far) of the century, and Shiraz will be keeping a sharp eye, in particular, on how Putin’s fans and apologists on the supposed “left” deal with it. The Mossack Fonseca documents were initially passed to the German newspaper Süddeutsche Zeitung, which then shared them with the International Consortium of Investigative Journalists. The fact is that the Guardian is just one among 109 media organisations in 76 countries that have helped break the story – which makes this message from Deputy Editor Paul Johnson a bit of a damn cheek. I don’t think I’ll be sending them any money just yet:

Hello,

The “Panama Papers” is the biggest leak in history: 11.5m documents – which would take one person 27 years to read – describing in the finest detail, for the first time, how rivers of money are moved around the world, hidden from sight by secret offshore banking operations.

The scale of the story is staggering: inside those papers 113,000 shell companies were discovered – helping hundreds of national leaders, politicians, celebrities and business people hide their money.

If the scale of the leak was enormous, the journalistic effort to bring it to full exposure was just as big: 370 journalists from 70 different countries worked in an unprecedented scale of co-operation. At the Guardian, we had five journalists dedicated to the investigation for six months, in conditions of tight secrecy, working through the dozens of stories and an exhaustive legal process.

Readers can support such journalism by making a financial contribution to the Guardian. Make a contribution here.

Today’s investigation has created a much-needed worldwide debate about tax and fairness. There are another four days of stories to come. We think they are of vital public importance. We hope you agree.

Thank you for your support and for reading the Guardian.

Paul Johnson
Deputy Editor, Guardian News and Media

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The socialist stance on the EU and the referendum

February 21, 2016 at 8:36 pm (AWL, capitalism, class, democracy, Europe, labour party, left, posted by JD, workers)

This article is slightly adapted from the editorial that appeared in the 10 February edition of Solidarity:

On 9 February, in Berlin, former Greek finance minister Yanis Varoufakis launched a new “Democracy in Europe Movement”. It seems not so much a movement as a personal vehicle. But the spirit of its manifesto — demanding, by 2025, a EU constituent assembly that will create a democratic federal Europe — is right. It aims beyond the petty “what’s best for our little corner” or “what’s safest” calculations which dominate the official debate, and dares to restate the old ideals which motivated calls for a United States of Europe as early as the mid-19th century. “A Europe of reason, liberty, tolerance, and imagination, made possible by comprehensive transparency, real solidarity, and authentic democracy”.

The first radical journal which Karl Marx wrote for was called the German-French Yearbooks. He looked to a day when “the day of the German resurrection will be heralded by the crowing of the Gallic cock”. His Communist Manifesto was written for an international organisation, mostly of migrant workers, active in France, in Belgium, in Germany, in England. Marx was educated in German philosophy, learned socialism from French workers, formed the outlines of his distinctive theory in Brussels, and gave most of his life to studying Scottish and English political economy.

The creation, from a continent wrecked for centuries by incessant national and dynastic wars, of a Europe of mutual enrichment, and melded traditions, inspired many other democrats. In all fields, a Europe of cosmopolitan culture, free movement, diminished borders, is an advance not just “for Britain”, or for this or that grouping, but for the whole continent.

To take an offbeat example: as recently as the 1930s, André Weil became an epoch-making figure just because he broke the chauvinist barriers which had stopped French mathematicians learning from German mathematics. There was an equivalent in England in the 1820s: a students’ revolt at Cambridge University was needed to break down the narrowmindedness which had paralysed English mathematics for a hundred years after the death of Isaac Newton, banning the use of “German” notation.

The arrogance, and shameless capitalist dogmatism of the EU leaders, their drive to make the rules of the single market and the eurozone axioms to be enforced by unelected officials whatever the cost to human lives, is drowning those ideals in a quicksand of bureaucratism. And in so doing, it is nourishing narrow-minded reflex responses, nationalism, xenophobia, migrant-hating. Varoufakis is right: “The European Union will be democratised. Or it will disintegrate!” He is also right in his warnings: “If we return to the cocoon of the nation-state, we are going to have a fault line somewhere along the River Rhine and the Alps. Everything to the east of the Rhine and north of the Alps would become depressed economies and the rest of the Europe would be in the territory of stagflation economics, of high unemployment and high prices. “This Europe could even produce a major war or, if not an actual war, so much hardship that nations would turn against each other… We would have condemned the whole world to at least one lost generation. “Out of such an event, I counsel my friends that the Left never benefits. It will always be the ultra-nationalists, the racists, the bigots and Nazis that benefit”.

The mess of the major campaigns aimed at Britain’s EU in-or-out referendum, to be held on 23 June, confirms his judgement. Three campaigns are squabbling over who gets the official Electoral Commission franchise as “the” exit campaign. Vote Leave is run by Dominic Cummings, previously the Tory party’s “director of strategy”, then an adviser to Michael Gove as education minister, notorious for his arrogant abuse even of other Tories and other officials. It is figureheaded by former Tory chancellor Nigel Lawson, who is now mostly active as a climate change-denying crank.

Shamefully, the leading Labour MPs who support exit, Kate Hoey and Kelvin Hopkins, first linked their Labour Leave campaign to Vote Leave. Now Hoey and Hopkins, but not John Mills, the millionaire who’s been financing Labour Leave, have jumped ship to Grassroots Out (GO). Not an improvement, because GO is financed by UKIP millionaire Arron Banks, was founded by two right-wing Tory MPs, and advertises UKIP leader Nigel Farage as a key supporter. Bizarrely, at its recent public meeting in London, GO introduced George Galloway (who some people still consider to be a left-winger) as its surprise “big name” speaker, alongside Farage. GO may merge with the third campaign, Leave.EU, also funded by Banks, also backed by UKIP. If there is a shade of difference between Leave.EU and Vote Leave, it is that Leave.EU is more straight-for-the-nerve anti-migrant and Vote Leave is more for a free-market Britain, free of annoying “over-regulation” (read: worker protections) from the EU.

Although some genuine left-wingers back exit — Kelvin Hopkins is a soft Stalinist who writes for the Morning Star — they have no distinct voice, and figure in this squabble only as backers of this or that Tory/ UKIP faction. That is logical. Re-raising borders between Britain and the EU countries may contribute to the racists’, xenophobes’, and ultra-capitalists’ aims of excluding migrants and destroying worker protections. It cannot possibly contribute to left-wing aims.

On the “in” side, Britain Stronger in Europe has no rival for the official Electoral Commission franchise. It argues that remaining in the EU is good for “stability”, for “security”, for “business”. The message is as uninspiring as a wet sock to the millions whose lives have been made unstable and insecure, and who have been exploited or sacked by “business”, through the global capitalist crash of 2008 and the EU leaders’ management of its sequels in Europe. Labour, anxious not to repeat the fiasco of its merging with the Tories in the Better Together campaign in Scotland, has an independent “in” campaign, Labour In For Britain. But notice that — “for Britain”, not for workers. The campaign is led by Labour right-winger Alan Johnson. Its profile is feeble, and mostly an echo of the arguments of Britain Stronger in Europe, with a quiet footnote about workers’ rights.

Socialists need a campaign which opposes exit from the EU, not in the name of endorsing the existing EU, but in the name of taking it as the start-point for battle to bring down barriers, level up conditions, extend democracy, and weld workers’ solidarity across the continent. In order to do that, Solidarity has initiated the Workers’ Europe campaign, and works with the Another Europe Is Possible campaign.

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Osborne’s shameful sweetheart deal with Google

January 26, 2016 at 4:36 pm (capitalism, corruption, internet, Jim D, London, profiteers, tax, Tory scum)

George Osborne’s claim that Google’s £130 million over ten years tax settlement with HMRC is a “major success” now looks like a pretty sick joke.

Tax campaigners like Richard Murphy of Tax Research UK have exposed the deal as involving a tiny proportion of Google’s $5.6 billion (£5.6 billion) annual UK revenues. Google spends about $12 million a year on chicken for its staff canteens.

Shadow chancellor John McDonnell has aptly described the settlement as a “sweetheart deal” , making the point that tax experts (including Murphy, Prof Prem Sikka and  Labour tax barrister Jolyn Maugham) all think that the likely tax rate paid by Google on its likely UK profits may, even after this settlement, not exceed 5%. Google has paid an effective tax rate of around 3% over the past decade, despite a UK corporation tax rate of more than 20%.

Today’s Times reports that French officials have pursued Google far more aggressively, and are in the process of negotiating a settlement worth three times the amount agreed with Britain, despite Google doing more business and employing thousands more staff (2,500) in the UK. Referring to the company’s practice of registering all European sales in Dublin (to benefit from a lower tax rate), a French official (quoted in The Times) said, “We have a hard time believing that 150 well-paid salespeople with advanced degrees employed by one particular company in France are nothing more than busboys for Ireland.”

Anyone who heard the wretched performance of Jim Harra (HMRC’s ‘Director General Business Tax’) attempting to defend the deal on Radio4’s World At One today, will be aware that when all else fails, HMRC falls back on the plea of ” taxpayer confidentiality” to avoid discussion of the principles it has applied when reaching its deal with Google. Nils Pratley, in today’s Guardian, gives the “taxpayer confidentiality” argument short shrift:

“Google and Osborne were happy to publish selected highlights of HMRC’s settlement – the former to appear a good corporate citizen, the latter to try to appear a muscular chancellor. If limited disclosure is OK, both parties should be able to agree full disclosure for the sake of wider understanding.”

But perhaps the most astonishing and outrageous aspect of this whole sordid business is the claim (in todays Times) that:

“HMRC officials never challenged the company’s central and most controversial claim — that it has no ‘permanent establishment’ in Britain — even after they were given whistleblower evidence challenging its account

“The claim is critical to a complex structure used by Google to avoid hundreds of millions of pounds in UK corporation tax. By arguing that it has no fixed place of business in Britain, the company is able to book all its sales to UK customers through an Irish subsidiary, from where profits are again diverted to the tax haven of Bermuda.”

Never mind “whistleblower evidence”: you’d have thought this building, the Google offices in central London, might just have given the game away:

 

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Ellen Meiksins Wood: Marxist who put class at the centre of her analysis

January 15, 2016 at 4:49 pm (Andrew Coates, capitalism, capitalist crisis, class, democracy, economics, intellectuals, Marxism)

Re-blogged from Tendance Coatesy:

Ellen Meiksins Wood, the wife of former NDP leader Ed Broadbent, has died of cancer at the couple’s Ottawa home at the age of 73.

Reports 

She was a noted intellectual figure on the international left, whose studies of class, politics and political ideas influenced several generations of thinkers and activists.

Wood’s writings were thought-provoking and luminous.

She first came to a wide left audience with The Retreat from Class: A New ‘True’ Socialism (1986). This was a collection of her intervention in debates, conducted through the pages of New Left Review, and the Socialist Register,  that took place in the wake of Eric Hobsbawm’s famous polemic, The Forward March of Labour halted? (Marxism Today 1978 – expanded in book form with replies from supporters and critics in 1981).

Many left intellectuals not only backed Hobsbawm’s view that the material importance of class institutions in shaping politics was declining with the drop in numbers in the industrial working class, but extended this to question the relationship between class and politics itself.

Post-Marxists began to argue that a plurality of ‘democratic struggles’ and social movements would replace the central place of the labour movement in politics. Some contrasted  ‘civil society’ a more complex and open site of democratic assembly to the alleged ‘monolithic’ vision of politics embodied in the traditional labour movement. In a diffuse way this was associated with the once fashionable idea that “a “post-modern” society dissolved reality in ‘simulacra’. Others claimed it  meant the end of “grand narratives” – or more bluntly, that the ideas of socialism and the Left was splintering so quickly that only a fragmented series of ‘critical’ responses were possible against neo-liberal regimes of ‘governance’.

Wood argued for the importance of class in shaping not just political interests but the potential constituency of  radical socialist politics. Fights over power were at the centre of Marxism and these were part and parcel with disputes over exploitation and the appropriation of the social surplus. The ‘new social movements’, the women’s movement, the rising ecological movement, campaigns for racial and sexual equality, were interlaced with class conflicts. Democracy could not be abstracted from these relations. To appeal, as writers such as Ernesto Laclau and Chantal Mouffe did, to the formation of a new hegemonic strategy based on  relations of “equivalence” between various democratic demands ignored the basic facts about class and power. Like her comrade Ralph Miliband Wood saw socialism as an effort to bring together people around the central issues of exploitation and oppression in democratic organisations that could shape politics. This had historically been the result of conscious action, and this kind of collective work was needed more than even against a very real and growing grand narrative – the reality of neo-liberal economics and government assaults on working people, and the unemployed – in building a new regime of capitalist accumulation.

In academic as well as left-wing activist  circles Wood became known for her “political Marxist” approach to history. This focused on the issue of the transition from feudalism to capitalism and social property relations.  The Pristine Culture of Capitalism 1992  was a summary of this approach. It was also directed against the views of Perry Anderson (Editor of New Left Review) and Tom Nairn (today best known for his Scottish nationalism). In the early days of the Second New Left they had asserted  that the so-called ‘archaic’ British state was a reflection of a an equally ‘pre-modern’ capitalism. They also claimed that the ‘supine’ bourgeoisie – who abdicated political rule to the ‘aristocracy’ (which they claimed continued to dominate UK politics in the early modern period) – had been mimicked by a “supine” working class. In later writings Anderson talked of the need for a new wave of democratic modernisation to bring the country into line with the ‘second’ bourgeois revolution of modernity.

Wood, by contrast, pointed out, had a developed capitalism, indeed it was the most ‘modern’ form of capitalism. Its state form was related to its early advance, and its allegedly old-fashioned trappings – from the Monarchy downwards – had not thwarted capitalist expansion but arisen in relation to needs of its own bourgeoisie. The labour movement had developed in struggle with these forces, not in deference to them.

On all the essential points present-day Britian was no more, no less, ‘modern’ than anywhere else in Europe or in any contemporary capitalist state. Indeed it was for long a template for bourgeois democracy. In particular Wood attacked the claims of Tom Nairn that in some fashion Ukania (his ‘funny’ word for the United Kingdom, modelled on the novelist (1880 – 1942) Robert Musil’s term for the Austro-Hungrian empire, Kakania – shit land) owed its economic difficulties to its constitution.  Economic problems  arose at root from the general contradictions of capitalist accumulation, in a specific form. The problems of British democracy were due to its capitalist character – it is hardly alone in having a Monarchy to begin with – not to the issues Nairn-Anderson dreamt up about its sonderweg.

More widely Wood is known as an advocate of a version of the ‘Brenner thesis’ (after Robert Brenner’s article, Agrarian Class Structure and Economic Development in Pre-Industrial Europe”1978). The creation of market relations in British agriculture were considered to be the foundation of modern capitalism. The essential condition was separation from non-market access to the means of subsistence, the means of self-reproduction. Wood argued that it was the capitalist transformation of agriculture, followed by the rise of merchant class expanding these forms through international trade, created the ground of Western capitalism.  It was also responsible for the distinctive state forms that emerged in Britain.

In the Agrarian Origins of Capitalism (1998) Wood summarised her views,

The distinctive political centralization of the English state had material foundations and corollaries. First, already in the 16th century, England had an impressive network of roads and water transport that unified the nation to a degree unusual for the period. London, becoming disproportionately large in relation to other English towns and to the total population of England (and eventually the largest city in Europe), was also becoming the hub of a developing national market.

The material foundation on which this emerging national economy rested was English agriculture, which was unique in several ways. The English ruling class was distinctive in two major and related respects: on the one hand, as part of an increasingly centralized state, in alliance with a centralizing monarchy, they did not possess to the same degree as their Continental counterparts the more or less autonomous “extra-economic” powers on which other ruling classes could rely to extract surplus labor from direct producers. On the other hand, land in England had for a long time been unusually concentrated, with big landlords holding an unusually large proportion of land. This concentrated landownership meant that English landlords were able to use their property in new and distinctive ways. What they lacked in “extra-economic” powers of surplus extraction they more than made up for by their increasing “economic” powers.

Wood’s political stand was firmly within the Marxist ambit. In 1999 she stated (The Politics of Capitalism) ,

…all oppositional struggles—both day-to-day struggles to improve the conditions of life and work, and struggles for real social change—should be informed by one basic perception: that class struggle can’t, either by its presence or by its absence, eliminate the contradictions in the capitalist system, even though it can ultimately eliminate the system itself. This means struggling for every possible gain within capitalism, without falling into the hopeless trap of believing that the left can do a better job of managing capitalism. Managing capitalism is not the job of socialists, but, more particularly, it’s not a job that can be done at all.

The broader  focus on the links between capitalism and state forms continued in her study Empire of Capital (2003). This analysed how the “empire of capital” (rather than the vague ‘globalisation’ or the rhizome of Hardt and Negri’s  ‘Empire’) shapes the  modern world through “accumulation, commodification, profit maximization, and competition.”

Wood’s later works, Citizens to Lords: A Social History of Western Political Thought from Antiquity to the Middle Ages (2008) and Liberty & Property: A Social History of Western Political Thought from Renaissance to Enlightenment  were ambitious attempts to narrate and analyse Western political thought in the light of class categories.

Wood had a profound influence on countless people.

She was a democratic Marxist, a feminist, a perceptive writer and a force for good.

Homage to her memory.

Remembering Ellen Meiksins Wood

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Paul Mason: ‘This Is A Coup’

December 20, 2015 at 8:22 pm (capitalism, democracy, economics, Europe, Greece, posted by JD)

From Social Europe:

Dear readers,

We would like to draw your attention to a new documentary #ThisIsACoup on the Greek Crisis by leading UK journalist Paul Mason. It is split into 4 episodes and free to watch (see videos below):

  Episode 1
Video
  Episode 2
Video
  Episode 3
Video
  #ThisIsACoup – Episode 4 – SURRENDER OR DIE
Video
There will be limited posting between now and the new year so the whole Social Europe team would like to take this opportunity to wish you, your family and your friends a happy Holiday Season and a great start to 2016.

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An initial attempt at a socialist and humanitarian response to the Paris massacres

November 15, 2015 at 6:29 pm (capitalism, democracy, Europe, fascism, France, Human rights, humanism, internationalism, iraq, islamism, Jim D, Marxism, Middle East, modernism, Racism, reactionay "anti-imperialism", solidarity, terror, turkey, war, workers)

What follows is a statement drawn up by myself. It is based in part upon the AWL’s statement in the immediate aftermath of 9/11. I have not discussed it or “cleared” it with anyone. Critical comments are welcome -JD:

To massacre ordinary workers enjoying a drink, a meal, a concert or a sporting event after work, is a crime against humanity, full stop.

What cause could the Islamist killers have been serving when they massacred 130 or more people in Paris? Not “anti-imperialism” in any rational sense — whatever some people on sections of the left have argued in the past — but only rage against the modem, secular world and the (limited but real) freedom and equality it represents. Only on the basis of an utterly dehumanised, backward looking world-view could they have planned and carried out such a massacre. Such people are enemies for the working class and the labour movement at least as much as the capitalist ruling class – In fact, more so.

Modern capitalism includes profiteering, exploitation, and imperialism, but it also includes the elements of civilisation, sexual and racial equality, technology and culture that make it possible for us to build socialism out of it.

Lenin, the great Marxist advocate of revolutionary struggle against imperialism, long ago drew a dividing line between that socialist struggle and reactionary movements such as (in his day) “pan-Islamism” [in our day, Islamism]: “Imperialism is as much our mortal enemy as is capitalism. That is so. No Marxist will forget, however, that capitalism is progressive compared with feudalism, and that imperialism is progressive compared with pre-monopoly capitalism. Hence, it is not every struggle against imperialism that we should support. We will not support a struggle of the reactionary classes against imperialism.”

We, the socialists, cannot bring back the dead, heal the wounded, or even (unless we’re present) comfort the bereaved. What we can do is analyse the conditions that gave rise to the atrocity; see how they can be changed; and keep clear critical understanding of the way that governments will respond. This must not be mistaken for any kind of attempt to excuse or minimise this barbarity or to use simplistic “blowback” arguments to suggest that it is simply a reaction to the crimes of “the west” or “imperialism.”

Immediately, the Paris massacre is not only a human disaster for the victims, their friends and families, but also a political disaster for all Muslims, refugees and ethnic minorities in Europe. The backlash against this Islamic-fundamentalist atrocity will inevitably provoke anti-refugee feeling and legislation, attacks on civil liberties and hostility towards all people perceived as “Muslims” in Europe: that, quite likely, was at least one of the intentions of the killers. The neo-fascists of Marine LePen’s Front National seem likely to make electoral gains as a result of this outrage.

The present chaos in the Middle East has given rise to the Islamic fascists of ISIS, and their inhuman, nihilist-cum-religious fundamentalist ideology.

Throughout the Middle East, the rational use of the region’s huge oil wealth, to enable a good life for all rather than to bloat some and taunt others, is the socialist precondition for undercutting the Islamic reactionaries.

In Afghanistan, an economically-underdeveloped, mostly rural society was thrust into turmoil in the late 1970s. The PDP, a military-based party linked to the USSR, tried to modernise, with measures such as land reform and some equality for women, but from above, bureaucratically. Islamists became the ideologues of a landlord-led mass revolt.

In December 1979, seeing the PDP regime about to collapse, the USSR invaded. It spent eight years trying to subdue the peoples of Afghanistan with napalm and helicopter gunships. It was the USSR’s Vietnam.

The USSR’s war had the same sort of regressive effect on society in Afghanistan as the USA’s attempt to bomb Cambodia “back into the Stone Age”, as part of its war against the Vietnamese Stalinists, had on that country. In Cambodia the result was the mass-murdering Khmer Rouge, which tried to empty the cities and abolish money; in Afghanistan, it has been the Islamic-fundamentalist regime of the Taliban. In Iraq the West’s bungled attempts to clear out first Saddam’s fascistic regime and then various Islamist reactionaries, and introduce bourgeois democracy from above, have been instrumental in creating ISIS.

Western governments will now make a show of retaliation and retribution. They will not and cannot mend the conditions that gave rise to this atrocity, conditions which they themselves (together with their Arab ruling class allies) helped to shape. Ordinary working people who live in war-torn states and regions will, as ever, be the victims.

Civil rights will come under attack and the efforts of the European Union to establish a relatively humane response to the refugee crisis will be set back and, quite possibly, destroyed.

These blows at civil rights will do far more to hamper the labour movement, the only force which can remake the world so as to end such atrocities, than to stop the killers.

Public opinion will lurch towards xenophobia. Basic democratic truths must be recalled: not all Middle Eastern people are Muslims, most Muslims are not Islamic fundamentalists, most of those who are Islamic-fundamentalist in their religious views do not support Islamic fundamentalist militarism. To seek collective punishment against Muslims or Arabs, or anyone else, is wrong and inhuman.

The first, and still the most-suffering, victims of Islamic fundamentalist militarism are the people, mostly Muslim, of the countries and regions where the lslamists are powerful.

The only way to defeat the Islamists is by the action of the working class and the labour movement in such countries, aided by our solidarity.

Refugees seeking asylum in Europe do not in any way share blame for this massacre. In fact, many of them are refugees because they are fleeing Islamic-fundamentalist governments and forces like ISIS. To increase the squeeze on already-wretched refugees would be macabre and perverse “revenge”.

We must remake the world. We must remake it on the basis of the solidarity, democracy and spirit of equality which are as much part of human nature as the rage, hatred and despair which must have motivated the Paris mass-murderers.

We must create social structures which nurture solidarity, democracy and equality, in place of those which drive towards exploitation, cut-throat competition and acquisitiveness and a spirit of everything-for-profit.

The organised working class, the labour movement, embodies the core and the active force of the drive for solidarity, democracy and spirit of equality within present-day society. It embodies it more or less consistently, to a greater or lesser extent, depending on how far we have been able to mobilise ourselves, assert ourselves, broaden our ranks, and emancipate ourselves from the capitalist society around us.

Our job, as socialists, is to maximise the self-mobilisation, self-assertion, broadening and self-emancipation of the organised working class.

We must support the heroic Kurdish forces who are fighting and defeating ISIS on the ground in Syria and Iraq, opposed by the Turkish government. We must demand that our government – and all western governments – support the Kurds with weapons and, if requested, military backup: but we will oppose all moves by the governments of the big powers to make spectacular retaliation or to restrict civil rights or target minorities or refugees.

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Cripps: egalitarian hero or reformist sell-out?

November 9, 2015 at 2:33 pm (capitalism, economics, From the archives, Guardian, history, labour party, posted by JD, reformism, SWP)

Stafford Cripps 1947.jpg

Paul Mason, in today’s Graun:

“(Cripps’s 1948 economic programme) is a programme to make Corbynomics look positively Thatcherite by comparison. A rough modern equivalent would involve today’s government spending £61bn on food subsidies alone. Yet Cripps and his generation were cutting with the grain of history.”

But Tony Cliff wrote:


From Socialist Worker Review, No. 88, June 1986.
Transcribed by Christian Høgsbjerg.
Marked up by Einde O’Callaghan for the Marxists’ Internet Archive.


In the 1930s Stafford Cripps became the most prominent spokesman for the far left of the Labour Party. His rhetoric was well to the left of Tony Benn’s in the 1980s. Yet in the 1945–51 Labour government he became ‘Mr Austerity’, congratulated by the Tories for his budgets. Tony Cliff looks at the career of Stafford Cripps.

HALF a century ago the left of the Labour Party was organised in the Socialist League. Its main leader was Stafford Cripps. His story is quite revealing of the weaknesses of the Labour left, not only in the 1930s, but also today.

Cripps was born into a very rich family and was educated at Winchester then at Oxford. His father was a Tory MP for some two decades, and then received a peerage to become Baron Parmoor. Stafford was not indifferent to his father’s political activities. One biographer writes: ‘Stafford took up the furtherance of his father’s cause as the Conservative candidate with all the ardour of a young man of drive and initiative.’

In 1913 he was called to the Bar, and a short time later was appointed Justice of the Peace. In 1927 he became King’s Counsel.

‘In the years from 1919 to 1926 Stafford Cripps had one other interest outside the law and the village of his adoption. He had become engaged in the affairs of the Church, and particularly in the affairs of the World Council of Churches.’

In 1924 when Ramsay MacDonald formed his first Labour government he hunted for talent outside the Labour Party, and got four Tories and Liberals to join his government: Lord Parmoor, Lord Haldane, Lord Chelmsford and H.P. Macmillan (later to become Lord Macmillan). ‘Macmillan, with the consent of the Conservative Party leaders, accepted the office from MacDonald on a non-political basis as a matter of public duty.’ In the 1929–31 Labour government Lord Parmoor served once again – as President of the Council and Labour’s leader in the House of Lords. (Stafford’s uncle, Sidney Webb, who became Lord Passfield, served as Secretary of State for the Colonies.)

As the 1929 general election approached Herbert Morrison tried to attract Stafford Cripps to the Labour Party. Morrison wrote to Stafford Cripps:

‘I am personally very anxious to have you in the Party. Please let me know if and when you would like to join the ranks of the Party and I shall be very happy to make the necessary arrangements.’

In May 1929 Cripps became a member of the Labour Party. Early in 1930 he became candidate for the West Woolwich division, and for the rest of that year he gave much time to that constituency. In October 1930 the Solicitor-General, Sir James Melville, resigned in ill health, and Ramsay MacDonald offered the position to Stafford Cripps. He at once accepted, though without a seat in Parliament. On the death of the Labour MP for East Bristol, Cripps was adopted as the Labour candidate and in January 1931 was duly elected.

In government Cripps did not evince any leftist tendencies. Quite the contrary. When he spoke on the 1927 Trades Disputes Act, imposed by the Tories after the defeat of the general strike, Cripps called not for its repeal, but only its amendment. Read the rest of this entry »

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Nationalism cannot save remnants of Scottish steel industry

October 28, 2015 at 3:44 pm (capitalism, internationalism, posted by JD, scotland, solidarity, unions, workers)

General view of the Tata steel factory in Cambuslang. Pic: DR

By Ann Field (at Workers Liberty)

Two hundred and seventy jobs are directly at risk after Tata Steel announced plans to “mothball” its Dalzell and Clydebridge plants, the final remnants of the Scottish steel industry after the Tories’ de-industrialisation of the 1980s.

Hundreds more jobs in local communities which depend on the plants and their workforces are also at risk.

The Scottish Labour Party has responded with a range of slightly confusing demands on the SNP government in Holyrood:

– Use public procurement powers to ensure that Scottish infrastructure projects place orders with the two plants.

– Support short-time working (but Tata, not the Scottish government, is the employer).

– Temporarily bring the plants into public ownership (but why only “temporarily”?).

– Cut Tata’s energy costs by putting pressure on Scottish Power and SSE (but why can’t we all have cheaper electricity?);

– Consult with “workers and the industry” to develop a government-led steel strategy (but why allow Tata to be involved if the industry is to be taken into public ownership?);

– Provide support for those who will soon be out of a job (which suggests a certain lack of confidence in the other demands).

Scottish Labour also demands action because of the “iconic” status of the Scottish steel industry. This is not a persuasive argument. Razor-gangs in Glasgow on a Saturday night also once enjoyed an “iconic” status. But this hardly justified their preservation.

However confused and inconsistent such demands might be, they reflect a genuine commitment to try to protect jobs in the residual Scottish steel industry. Local CLPs have also been campaigning on the streets to save steelworkers’ jobs.

SNP First Minister Nicola Sturgeon visited the two plants last week. A government-led taskforce has been set up to try to find an alternative buyer for the plants. According to Sturgeon, “nothing is off the table”, including public ownership.

The SNP, Scotland’s patriotic party, can hardly point to its record of supporting Scottish steel jobs. In 2012 it awarded all steel contracts for the new Forth crossing to China, Poland and Spain. Not a single one went to Dalzell or Clydebridge.

While any steps to save jobs are to be welcomed, more is needed than either Scottish Labour or the SNP are currently proposing.

And far more is certainly needed than anything the notoriously right-wing leadership of the Community trade union – the biggest union in the steel industry – has to offer by way of a ‘campaign’.

The job losses in the west of Scotland are part of a bigger wave of job losses in the British steel industry, hitting Tata workers in Scunthorpe, SSI workers in Redcar, and workers employed by Caparo Industries.

Jobs have also been lost or are now at risk in the steel industry throughout Europe and elsewhere – including China. These losses are a product of the unregulated and globalised nature of steel production and supply.

China and other major steel-producing countries (such as South Korea, India and Russia) have massively increased steel output in recent years, while global demand has been stagnant or declining.

The result is a typical capitalist crisis of overproduction. But, in the context of a globalised economy, it is a crisis on an international scale: in line with the logic of capitalism, excess steel output is sold cut-price (‘dumped’) in the international marketplace.

One ‘answer’ to globalisation – whether it be in the steel industry or any other industry – is nationalism: Put the blame on a particular country (in this case: China), demand controls on imports from that country, and retreat behind tariff barriers, national borders and trade wars.

This is the often unspoken ‘logic’ at the heart of the SNP’s demand for independence.

But why, in an independent Scotland, would the steel industry, with a current workforce of less than 300, be better able to compete against the more than 800 million tons of steel produced each year by China, and the 100,000 workforce of the biggest Chinese steel company alone?

The socialist answer to the anarchy of capitalist production – which produces too little of what people need, and too much of what can find a buyer in the marketplace – is not economic autarky, when states and nations try to wall themselves off from the world market and strive for economic self-sufficiency.

Our answer is the socialisation of the means of production: democratic planning; production to meet need not profit; work-sharing with no loss of pay; and environment-friendly production processes.

This campaign to saves jobs in the steel industry throughout the UK should be a part of an international campaign which brings together steelworkers and their unions to fight for such demands, backed up by industrial action.

The labour movement unites workers across national borders. Nationalism divides workers according to their national identities. In the fight to save steelworkers’ jobs – whatever their country, and whatever their national identity – the labour movement internationally must take the lead.

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Corbynomics: Putting the Political back into Political Economy

October 7, 2015 at 2:24 pm (capitalism, democracy, economics, labour party, posted by JD, reformism, workers)

Embedded image permalink

By Ewan Gibbs and Nathaniel Blondel (at Left Futures)

The reaction to John McDonnell’s announcement that he would aim for a balanced current account, whilst maintaining borrowing for capital investment, revealed a recurrent fault line within left-wing economic thought. At its most banal McDonnell was accused of signing up to George Osborne’s ‘austerity charter’, whilst more sophisticated critics argued such policies would weaken demand and harm economic growth. This article will not address the technicalities of figures and whether Labour should borrow limited amounts rather than aim for a balance (see a critical account here). Instead we will focus on the key political division the fallout from this announcement has revealed, and what it says about the character of ‘Corbynomics’, and the barriers it faces.

During the last thirty years of political setbacks, socialist economic policies have taken a particular battering. This has been very apparent in the predominant responses to the onset of austerity since 2008. Rather than proposals for a fundamental restructuring of the economy, the main left response has been both defensive, and grounded in an argument for why “ideological” cuts are unnecessary and harmful. Invoking mainstream Keyensian economists such as Joseph Stiglitz and Paul Krugman, the argument has gone that government could stimulate an economic recovery through borrowing at cheap rates. Insofar as it went this was welcome, but it was a more or less passive argument that could unite trade unionists, and political forces of the ‘centre-left’ from Labour, to the SNP and Plaid Cymru. At best, the Keynesian approach amounts to a tepid intervention and stimulation of demand. Read the rest of this entry »

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