“It was our lifelong dream coming true. It was a utopia. We were for it 100 per cent. What celebrations there were! The industry which had broken generations of miners was ours at last.”
On the 1st January 1947 miners took an unofficial holiday. The red flag was hoisted over the pits and the miners social clubs rang to choruses of the workers’ anthems of the Red Flag and the Internationale. The euphoria did not last.
Nationalisation (or in some cases municipalisation), is sometimes called “state socialism”, but more accurately it amounts to a form of state capitalism. The Post Office, would serve as an example of a “socialist” public service or the National Health Service. Or the BBC. But in the past we have had coal mines, the railways, the electricity and gas networks and tele-communications all owned by the state. Nationalisation has been wrongly equated with socialism. State ownership does not mean socialism. Nationalisation is a complete distortion of the idea of common ownership. The Labour Government has not only performed an essential service for British capitalism but at the same time has been able to hold in check the class aspirations of the British workers by representing such measure as the beginnings of socialism. So-called socialists demnding the re-nationalisation of the privatised industries and the new fresh nationalisations of key parts of the economy are committing an old fraud. Nationalisation does not facilitate the revolutionary task and are state-capitalist measures, not socialist ones.
At the dawn of capitalism, when the individual factory was usually quite small, it was normal for the capitalist to fill all three functions of ownership: he owned it, controlled it (in the sense of making all the operative decisions on the policy on the firm) and personally managed it. Today, in all the big corporations, ownership by shareholders is usually divorced from control by the big financial or and both are far removed from management which is exercised by (highly paid) salaried managerial employees. Private enterprise has become less private, less enterprising. Instead of the image of the self-confident businessman, owning his own factory, we now have the giant, impersonal monopolies, reliant on state contracts or subsidies. So what the form of ownership is not the decisive question; what matters are the interests in which industry is being run. Instead of individual ownership, the capitalist class as a whole owned the railways, the mines and energy producers.
Nationalised industries are said to be for the profit of the community but they are for the benefit the capitalist class and when they no longer serve that function, they are privatised. Certain industries, delivered up to the greed of private companies, become instruments for the exploitation of other sections of the capitalist class, and so powerful they grow that they disturb the whole bourgeois system. Capitalism is forced to make attempts to overcome its own anarchy of production if it is to continue to survive under modern conditions. The first attempts in this direction are represented by the organisation of cartels and trusts; later the direct intervention of the state become increasingly necessary. On the world market, state control is needed by the capitalist, in order to render the national industries better able to compete. While many saw nationalisation as a step towards the socialist planned economy it was merely the natural consequence of the modernisation of the out-of-date industries by the capitalist state in order to render British capitalist industry as a whole more able to compete. The whole reason for the nationalisation measures of the Labour Government 1945-51 was that the recovery of the whole economy would have been endangered without cheaper access to transport and fuel.
Naturally the whole process of state control over industry remains in the hands of the capitalist class and its representatives. In Britain the management of the nationalised industries stayed in the hands of much the same people who ran them previously—plus a number of loyal labour lieutenants of capitalism who were rewarded for services rendered with jobs. By December, 1949 of 131 names listed by Mr. Attlee on central nationalised boards, sixty-one also held directorships in private companies, twenty-three were knights, nine were lords, and three were generals. It may not be altogether unfair to suggest that their devotion to the socialist idea was not primary. In such a state-controlled economy the profit motive—the fundamental cause of capitalist crises—naturally remains untouched. In fact the control itself exists solely for the maintenance and the increase of profits.
In capitalist society a private industry only becomes a State service in order to better serve the interest of the bourgeoisie. We witnessed that with the state take-over of the failed banks of Northen Rock, Royal Bank of Scotland and the Halifax Bank of Scotland to preserve the integrity of the financial sector as a whole. Nationalising the banks have been instrumental in maintaining the class structure of British society. It was a nationalisation which feathered the bed of the capitalists and the banking oligarchs remained safe in their beds. The capitalist bank nationalisations is the clearest proof that capitalists are prepared to concede formal ownership of the means of production to the state provided that it is in what they call ’the national interest’ (i.e. in the interests of their class as a whole, as represented by their state). Ownership is a secondary matter; there are all kinds of private, collective and state forms of ownership - what is important is the class reality which lies behind these legal arrangements in that the capitalist class is still in power and in control of its capitalist state.
State employees, like workers in private employment, strike and engage in a struggle with the exploiters. Even if the new state owners desired to improve the lot of those employed would they be able to do so? The work-places of the state and municipality are prisons quite as bad as private workshops, if not worse. But those “revolutionaries” will have to mount guard over the general interests of society served by the socialised industries, and in particular over the interests of those directly engaged in them. The state ownership of the Post Office in this country since the 18th century has meant neither improved conditions for the post office workers, nor any advantage to the working class as a whole. We witnessed the same despotic rule and saw that those who worked most and hardest would still get the least remuneration.
There is no question of syndicalism or “guild socialism”: each factory and work-place will not be owned by its own workers. They will be “owned” by the working class collectively. Nor will the question of competition (and conflicts) between various factories arise through a system of “”market socialism.”
Surely, today, nobody believes that thanks to a British Rail or a National Coal Board, we will reach the New Jerusalem. We have learned from the political failures of the past just how disastrous the idea is that socialism can be established over time by a “working class government” through nationalisation and state control. Yet nationalisation under workers’ control is the now the cry being raised in some quarters but it is a call for the working class to undertake the management of their own exploitation.
Within this model wage labour would still function and it follows that so too would capital. Capital accumulation out of surplus value would be the overriding imperative of this system. At the end of the day what we have is just another class-based society parading as one in which the means of production are purportedly publically-owned but actually owned by the state-apparatus. It is the Left’s mistaken belief mistaken belief that “socialism” is simply a change in administration and so if nationalisation gives the appearence of worker-control it must be well down the road to socialism.
Although they left no detailed blueprint of a socialist society, the viewpoint of Marx and Engels, was that socialism would be a new mode of social production that would in essence be an “association of free and equal producers", not a system where the administrator of production and distribution would be the state, but rather the producers and consumers themselves to whom these functions of ownership and control would fall. The path to socialism is not through nationalisation, public corporations or even trade union control, but through a fundamental change in class relations. Socialism is rule by the working people. They will decide how socialism is to work. This was how Marx defined socialism. To-day there is no difficulty whatever in creating wealth far in excess of our requirements and the motto, “From each according to ability, to each according to needs,” now ceases to be utopian and becomes a reality.
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