Friday, October 03, 2008
GOD AND MAMMON
BABY, IT'S COLD INSIDE
(BBC News, 2 October) RD
Thursday, October 02, 2008
Food for Thought
“ I can calculate the movement of the stars, but not themadness of men.”
- Meanwhile, the excesses continue. CEO of the failed Lehman Brothers Walked away with $34 million in salary this year, and the CEO of AIG collected $14 million for overseeing the demise of his company (CBC radio). Richard Gwynne (Toronto Star, 26/09/08) reported that the pay of corporate executives increased from 27 times that of an average worker in 1973 to 400 times as much today. That means the executive has earned, by afternoon tea on the first day of the year, as much as the worker will get for a year’s toil!
- In Dubai, they have created a $1.5 billion tourist island, shaped in the form of a palm tree and with hotels that have $25 000 per night rooms.- Against all this talk of trillions and billions we learn that the UN has finally committed $3 billion over the next seven years, about $400 million per year, to the elimination of malaria. Malaria kills one million peoplea year, mostly infants, none of whom have any shares on the stock market and thus do not qualify for a trillion dollar bailout.
- The bleeding of manufacturing jobs in Ontario continues apace as Toyota cuts a shift and 1200 jobs its Woodstock plant. They may get something but it won’t compare to the CEOs parachutes.
- An article in the Toronto Star (19/09/08) reported that a national poll showed that nine out of ten Canadians thought it was “very” or “somewhat” important that the federal budget help the poor. Yet, Canada’s percentage of low-income people has never been lower than 10 percent in the last 40 years, and 150 000 to 300 000 people sleep on our streets or in shelters.They are still waiting for the ‘trickle down effect’ from the rich and famous.
- Haiti, battered by several hurricanes in the past weeks has to rely on star power to get aid. Actor Matt Damon and musician Wyclef Jean flew in to publicize the plight of the islanders. Give them credit for trying but if they have to wait as long as the Make Poverty History campaign, it will be a long recovery.
- Prisoners appearing in court in Durham Region (just east of Toronto)have had their cheese sandwiches cut to a granola bar and juice box to save money. They are finding it hard to concentrate on proceedings. A lawyer commented, “ In a 12-hour period, the prisoners are being fed the nutritional equivalent of what I scatter in the yard for the birds in the morning.” (Toronto Star).
- Ontario Premier, Dalton McGuinty has made bold strides to fight the economic crisis. After making poverty a priority, but doing next to nothing, he announced last week that trying economic times mean ‘adjustments’ to the programme. Say no More! - An agency to help new immigrants to settle in our region and servicing 40 000 people has had its funding cut by the federal government and two thirds of its workers laid off. The foregoing is to emphasize the fact that when the needy are in trouble, there is never any money, but when the multi-billionaire corporations are mired in a mess of their own making, trillions magically appear to their rescue, somewhat similar to the vast amounts of money that appeared at the outbreak of WWII after a decade of deprivation and starvation for the workers who were constantly told there was no money for them and their families. As I said at the beginning, this is the normal operation of the capitalist mode of production.
John Ayers
Wednesday, October 01, 2008
COMPETITION
THE FREE MARKET
Competition
Some comedian once asked "If it's true that all the world loves a lover, why are there so many policemen in Hyde Park?" A good question but a better one for workers to ask themselves is "If competition is such a wonderful and desirable thing, why does everybody try so hard to avoid it?". For example, when solicitors lose their monopoly in house conveyancing, opticians lose theirs in selling spectacles, or shopkeepers hear that a supermarket is to be built nearby, do they say "Good! Just what we need: the icy blast of competition"? They do not, instead they protest bitterly and do everything they can to preserve the status quo.
This dislike of competition is shared by all business, big and small. In 1980 the world's largest corporation, American Telephone and Telegraph Company (AT and T) lost an anti-trust action brought against it by a much smaller rival, MCI, who were awarded 1,800 million dollars. AT and T have a near monopoly in the manufacture of vital equipment which MCI needed but they refused to sell them any. In Britain the giant British Oxygen Company, which had a turnover of £ 1,700 million in 1983, was exposed for trying to close down a small competitor whose turnover was only £150,000 - less than a third of the salary of BOC's chief executive. The competition of even such a minnow was more than BOC could tolerate.
The big three in the British drugs industry, ICI, Glaxo and Beecham's, are putting every obstacle in the way of small competitors who want to market half price, unbranded versions of some of the big three's most profitable drugs. Although these drugs are patented the law provides for “licences of right” to be available to other companies but does not specify what royalties are to be paid. The big three use this loophole to ensure that would be competitors have to sell for little less than themselves.
The airline industry is notorious for eliminating competition. Remember how big Atlantic carriers, including British Airways, forced Freddie Laker out of business? Now they have a new target in their sights. Richard Branson's one-aircraft Virgin Atlantic airline. Branson's attempt to take over where Laker left off by providing cut-price fares between Britain and America was countered by BA, Pan-Am and TWA who all reduced their fares to equal Virgin's. Predictably Branson howled "unfair" but why should the game be played by his rules? If he really believes in free market competition then he cannot complain if the big airlines slash their fares too. Branson's problem is that his rivals have much greater resources than he has and can easily outlast him in a protracted fares battle.
Dislike of competition has also been shown by the cross channel ferry companies. They are trying to persuade the government and potential investors that the channel tunnel will be unsafe to use and unprofitable. If the tunnel scheme goes through then these champions of the free market want to remove competition
between themselves by integrating their services in order to offset the expected loss of business. If this is not allowed then they will seek compensation from the government. Whatever happened to "standing on your own two feet"?
Although governments try to encourage competition within their own frontiers they assist their own industries to avoid it in international trade by loading the dice in their favour. The governments of the EEC protect their own farmers from competition from abroad by erecting tariff barriers and subsidising their production. These subsidies produce such mountains of food that the EEC can sell it on world markets at rock-bottom prices---butter sales to Russia are an obvious case. The American government denounces these subsidies because they keep inefficient EEC farmers in business whereas American farming is extremely efficient and could easily undercut EEC farming if only it were given the chance. In 1983 the American government played the EEC at it’s own game by using subsidies to sell flour to Egypt which had been an EEC market. Did the EEC say “fair enough”? It did not, instead it threatened to retaliate by dumping farm produce in American markets in Latin America. Does this mean that the United States is all for free trade? Only in those industries where it can win, such as farming. It is a different story when it comes to steel and textiles so they protect those industries with barriers against Imports. Most serious is the penetration by Japan of American home markets in cars, electronics and consumer goods. The United States’ trade deficit with Japan was over 50 billion dollars last year and members of Congress, business leaders and trade unions are demanding legislation aimed at reducing Japan’s exports to the United States.
Needless to say the Japanese are not in favour of this but they want to have it both ways - free trade for their exports but every obstacle placed in the way of imports from other countries. For example, Scotch whisky is subject to a level of taxation which makes it much more expensive than home produced spirits. Why don't these other countries simply keep out Japan's exports? They are afraid that such a move would spark off worldwide tit-for-tat protectionism with the resulting collapse in world trade. The cure would be worse than the ailment and the Japanese government is taking advantage of this fear.
Groups of governments sometimes band together into a cartel or price-fixing ring to avoid competition among themselves. For years the Organisation of Petroleum Exporting Countries (OPEC) shared out most of the world oil market. Each member-nation was allocated an agreed production quota of oil and no more. This year there has been a drastic fall in oil prices caused by the world slump, resulting in a sharp fall in demand, plus the entry of North Sea oil which is not controlled by OPEC. This fall in price has meant less income for OPEC members and some of them have been breading the agreement by increasing production to try make good the lost revenue.
This is what usually happens with governments or companies which organise themselves into a cartel. They are all for cartel when trade is booming and they can carve up the market but when trade is bad they will break ranks and look after themselves. OPEC has just reached a temporary agreement and the price of oil has started to rise again but no one knows what will happen in 1987.
Nevertheless, western governments do try to avoid monopolies within their own countries. As the executive committee of the national capitalist class a government must look after the interests of that class as a whole and not just one section of it. If a monopoly was allowed in an industry then the other capitalists will feel that they may be held to ransom when they purchase from the monopoly. But surely the soon-to-be privatised British Gas is a monopoly, the very thing the government wants to avoid? There are two reasons for this contradiction. The first is that the gas industry cannot really be split up into several competing companies for practical reasons, among them the cost of setting up alternative nationwide installations. The second is the political factor which is that the government sees wide share ownership as a vote catcher at the next general election end the privatisation of British Gas gives it the opportunity to achieve this aim.
This episode has provided an example of the double standards used by politicians. Tory MP Michael Forsyth, a free market zealot. argued that privatised gas would not be a monopoly as it would have to compete with electrcity, oil and nuclear power. This is like arguing that if some company owned the entire meat industry it wouldn't be a monopoly because it would have to compete with fish and chicken.
Both the American and British governments think they have a method of reversing what they see as the drift towards monopoly by stimulating competition. This is called de-regulation and is aimed at providing the incentive and opportunity for new companies to come into the market by removing whatever obstacles stand in their way. This has happened in the American airline industry since 1978 and the initial effect was an explosion of new, small companies and a drop in internal air fares. But the drift towards what is actually fewer and bigger economic units cannot be permanently reversed. Since 1978 sixty-three American airlines have gone bust and the big airlines are swallowing up the small fry in order to add the busy and profitable internal routes to their shakier international operations. The result is that airfares in America are on the increase again. This is what happens with cut-throat competition. It cuts profits to the bone so that when business drops off companies get into trouble and the conditions are created for the very thing de-regulation is supposed to curb - mergers and the drive towards bigger and fewer companies.
Companies sometimes need to grow if they are to survive. How could a company meet its competitors if it merely stands still while they grow? This need partly explains the recent merger-mania which saw huge companies being taken over by others. Guinness, the British drinks giant, justified its plan to take over Distillers in order to meet the challenge of American and Japanese rivals like Seagram's and Suntory with full-page newspaper adverts which said "It will take our combined strength to defeat adversaries such as these"
This is also why Britain's biggest electronic engineering company, GEC, wants to take over its main British rival, Plessey. James Prior, GEC's chairman, explained that although GEC is Britain's biggest private employer with 180,000 workers, it is dwarfed by the likes of General Electric in America and Siemens in West Germany. Plessey rejected GEC's bid and instead offered to buy GEC's interest in the System X digital telephone exchange system. Their chairman pointed out that neither company had won any worthwhile export orders for the system and since 10 per cent of the world market is required to be profitable it would, he added, make sense to merge the two interests --- under Plessey, naturally -to meet international competition.
How does this fact of life in capitalism square with the government's obsession with promoting small businesses and its frequent use of the Monopolies Commission to prevent the mega-mergers which are necessary to enable British capitalism to compete internationally? The simple truth is that many of those who are heavily into capitalism, like some of the free marketeers, don‘t under-stand the basic laws of the system, one of which is that while small may be beautiful in business, big is infinitely more successful.
The supporters of competition claim that it is of benefit to society because it eliminates wastefulness. In fact it is the cause of massive waste of humanity's time and energy. For example, thanks to the elimination of their competitors, there are now only three makers of large jet aircraft engines in the world outside of the so-called communist bloc. They are Rolls-Royce and the two American companies, Pratt and Whitney and General Electric. All three employ numerous scientists and technicians in the competition to produce an engine for a particular type of aircraft. Of the three engines produced one may be a little cheaper in price, the second may use a little less fuel and the third may need a little less maintenance but really all three engines are practically identical. So true is this that the one which wins the orders is probably chosen more for political reasons than any other and this is why British Airways have recently chosen Rolls-Royce engines for its new aircraft.
And just look at the hordes of companies eagerly competing to supply us all with double glazing, fitted kitchens, and the like, with armies of salespeople chasing after the same order and all of them selling exactly the sarne product. This spectacle is repeated all over the world as millions of useful human beings engage in this wasteful duplication of effort. just how does this benefit society?
So competition isn't what it's cracked up to be. Even the capitalists and politicians only regard it as a necessary evil in the scramble for profit and avoid it whenever they can. Certainly it has nothing to offer the workers except the opportunity to become one another’ s enemies over their exploiters' quarrels and which have nothing to do with them. Socialists work for a society in which the watchword will be co-operation and where capitalism’s competition will seem as strange and awful as we regard cannibalism today.
V.V.
Socialist Standard January 1987
William’s Words
“And first, please to understand that our present system of society is based on a state of perpetual war. Do any of you think that this is as it should be? I know that you have often been told that the competition, which is at present the rule of all production, is a good thing, and stimulates the progress of the race; but the people that tell you this should call competition by its shorter name of war if they wish to be honest, and you would then be free to consider whether or no war stimulates progress, otherwise than as a mad bull chasing you over your own garden may do. War, or competition, whichever you please to call it, means at the best pursuing your own advantage at the cost of someone else’s loss, and in the process of it you must not be sparing of destruction even of your own possessions, or you will certainly come by the worse in the struggle. You understand that perfectly as to the kind of war in which people go out to kill and be killed; that sort of war in which ships are commissioned, for instance, “to sink, burn, and destroy”; but it appears that you are not so conscious of this waste of goods when you are only carrying on that other war called commerce; observe, however, that the waste is there all the same.”(From the pamphlet. “How We Live and How We Might Live”, page 19) John Ayers
A SCAREY FUTURE?
Tuesday, September 30, 2008
More on Child Poverty Levels
Of the 13,233,320 children in the UK, 5,559,000 - more than a third - live in low-income families or families in poverty.
"A child in poverty is 10 times more likely to die in infancy, and five times more likely to die in an accident. Adults who lived in poverty as a child are 50 times more likely to develop a restrictive illness such diabetes or bronchitis." Campaign director Hilary Fisher said
The research was compiled from Government statistics and also includes the numbers of children in families on Working Families Tax Credit.The campaign classes households as being in poverty if they are living on under £10 per person per day.
Monday, September 29, 2008
TIME UP AT IBROX
Rangers' blue is used on the dial and the logo is engraved into the oscillating weight seen through the sapphire crystal case back.
Martin Bain, Rangers' chief executive, said: "International brands are now looking at football clubs that offer partnerships which go beyond local exposure."
The club commissioned a global research agency to look at Rangers' exposure across the world last season and found that it reached more then 73 million people in Europe alone. "Importantly, we can now tell brand owners exactly who was watching, in which countries and at what time," said Bain.
The ABC of Inflation
The Royal Mint said it was illegal to make or use counterfeited coins.
However what happens when world governments behave like counterfeiters? Nowadays the pound is an inconvertible paper currency and enormous additional amounts have been printed and put into circulation. It is legal but the consequence is inflationary. This article from the Socialist Standard in October 1972 explains some of the fallacies.
The ABC of Inflation
THE LABOUR PARTY and the Tory Party accuse each other of being responsible for the continuing rise of prices, but there is absolutely nothing to choose between the records of the two parties. Measured by the government's own Retail Price Indexes, the Labour government 1945-51 scored a 28 per cent rise and the Labour government 1964-70 another 30 per cent (of the 1964 level); while the Tories marked up 50 per cent between 1951 and 1964 and another 17 per cent (of the 1970 level) between 1970 and June 1972. Added to the 32 per cent rise recorded between 1939 and 1945 under the National government (admitted to be an understatement), the present price level is at least four times what it was before the war.
In 1944 the three parties-Tory, Labour and Liberal -in the National government committed themselves to do what they could after the war "to stabilise prices", and at each of the eight general elections Labour and Tories both repeated the promise-and it hasn't meant a thing.
Individual prices can rise (or fall) for several different reasons. Good harvests will reduce prices and bad harvests will raise them. Booming trade increases demand and sends prices up, bad trade will send them down again. Even against the present trend of rising prices metal prices fell heavily last year as demand slackened off-the price of copper fell by 40 per cent. Improved methods of production, by reducing the amount of labour required, will operate to lower prices, while the exhaustion of easily accessible seams of mineral ores (coal and metals) will operate the other way because mining at greater depths or in less rich seams requires more labour to produce each ton.
During the nineteenth century when all of these price factors operated the general price levels in Britain went up in some periods and down in others, or remained nearly stationary, but the extent of the movement up and down was always within a range of about 25 per cent either way-nothing like the 300 per cent added since September 1939. Wages also rose and fell during the nineteenth century; sometimes in line with the movement of prices, sometimes by more or less, and occasionally wages moved in the opposite direction to prices.
Fallacies
All sorts of explanations have been offered for the abnormal rise of prices since 1939 as compared with the up-and-down movements of prices in the nineteenth century. Most of the so-called explanations take the form of blaming some group or other for being "greedy"; bankers, or manufacturers, or retailers or trade unionists. It is an explanation that a glance at certain facts will show to be nonsense. Did the copper companies reduce their prices by 40 per cent in 1971 because they had suddenly become less greedy? Between 1948 and 1968 prices rose by 100 per cent in Britain, but only by half that amount in America and Switzerland: are the British twice as greedy? In the nineteenth century did the whole population go through alternating phases of being more greedy and less greedy? Between the end of 1920 and the middle of 1933 prices fell by over 50 per cent. The fall was continuous for thirteen years. What had happened to greed?
The fact is that sellers always try to get as big a price as they can, "as much as the market will bear", and if they can get more or are forced to take less it is because external circumstances over which they have little or no control determine that it shall be so.
Two popular beliefs are that prices go up because wages go up, or vice versa. It does not occur to those who hold one or the other view that wages are prices - the price the worker gets for the sale of his labour power, his mental and physical energies, to the employer. So, properly stated, their two propositions become the single useless assertion that prices go up because prices go up.
If they re-stated it in the form that one group of prices (wages) go up because the other group of prices go up-or vice versa-they overlook the truth that both groups of prices go up because of common external factors which affect both of them, more or less to the same extent. To illustrate this we can note that in summers when more Londoners visit the country the harvests are good. Nobody asks whether it is the London visitors who make the corn ripen, or whether it is the ripened corn which attracts the visitors. It just happens that a long hot summer both produces the good harvest and attracts visitors to the country - the sun is the common cause of both.
Paper & Prices
The new factor which has operated to push up prices abnormally since the war-the "sun" in relation to prices and wages-has been the continuous and accelerating "depreciation of the currency". In the nineteenth century the amount of notes and coin in circulation was controlled by the device, enforced by law, that the pound sterling was a fixed weight (about a quarter of an ounce) of gold, and Bank of England notes were always convertible on demand into the corresponding weight of gold. Nowadays the pound is an inconvertible paper currency and enormous additional amounts have been printed and put into circulation. In 1939 the total of notes and coin in the hands of the public was £454 million. It is now over £3,500 million and rising steadily, an amount far in excess of whatever increase would have been necessary in line with the actual increase in production and sales of goods.
Karl Marx, whose study of the subject has never been rivalled, enunciated the economic law in the form that if the amount of inconvertible paper currency exceeds the amount of gold that would be needed if gold coins circulated, the excess simply operates to push up prices. Before Keynesian doctrines were swallowed by most of the modern economists and politicians, this relationship between excess issues of inconvertible notes and the price level was generally accepted by economists (including Keynes). In 1919 the government deliberately put a stop to the issue of additional notes and this played a large part in the subsequent fall of prices. Now the political parties and the trade unions have deceived themselves, against all past experience, into the belief that what they call increasing "money supply" leads to greater production and the maintenance of "full employment".
Facing Facts
Not quite all of the economists and financial authorties have swallowed the "new economics". One exception is the First National City Bank of New York which, in its Monthly Bulletin for January 1970, ridiculed the notion that rising prices are due to greed or to the wage demands of trade unions:
Most of the blame for inflation is misplaced. For although inflation has a hundred faces, it has but one essential cause : overly expansive and erratic monetary policy that has pushed up the quantity of money more swiftly than the quantity of goods and services.
Governments, even if they perceived the truth of this, are afraid to repeat the restrictive policy applied in 1919 because they think it might lead to a big depression and much heavier unemployment. The economist Lord Robbins, speaking in the House of Lords on 5th July, said:
I know of no case in history where inflation of the order of magnitude of that from which we are now suffering has been stopped by measures of this sort without that sort of effect.
The government's view, according to Patrick Jenkin, Chief Secretary of the Treasury, is that while curbing the money supply would affect prices it would do so only after a considerable time lag:-
"The immediate effect would be increased unemployment and reduced output. As a solution, it was politically, wholly unacceptable". (Financial Times 17 July)
They Lord Robbins and Jenkin, are equally afraid that continued and accelerating depreciation of the currency may end with the kind of monetary collapse that Germany experienced between the wars.
Most workers believe that if only prices came down or were at least stabilised their chief troubles would be over. They should remember that while it is true that at present hundreds of thousands of workers cannot afford to buy a house on mortgage, exactly the same was true between the wars when prices of houses and prices in general (and wages) were only a fraction of what they are now. For the workers capitalism means hardship whether prices are high or low or falling or rising. H.
Socialist Standard October 1972
$3.5 BILLION IN 2 DAYS
THE TOP 400
Sunday, September 28, 2008
PROFITS ARE THE PRIORITY
(Independent, 8 September) RD
ROCK AGAINST RELIGION
Saturday, September 27, 2008
MORE SILLY IDEAS
BRAINWASHED
(Yahoo News, 18 September) RD
Friday, September 26, 2008
IF YOU'VE GOT IT, FLAUNT IT
(Times, 21 September) RD
Thursday, September 25, 2008
Getting the blues in suburbia
Who are the working class?Is there a middle class?Do you agree with this view?Let us know. A member's view from yester year.
There aren't many factory workers like me in the area where I live-a pleasant suburb called Giffnock which lies just over the south side of the Glasgow boundary. I moved there about five years ago and when my workmates heard where I was moving to they were amazed. Almost all of them live in council flats or houses (Scotland has a much higher percentage of council and other rented housing than England) and they seemed to place Giffnock in the same wealth bracket as Beverley Hills or Mayfair. "They've all got money up there" I was told.
Of course, when I moved into the place I found the reality to be just as I expected. Nearly every household is dependent on at least one wage or salary earner and so far I haven't met or even heard of a single millionaire. On the other hand, I have met people who have equally strange notions about factory workers. They presumably get their ideas (prejudices would be a better word) from the media and are quick to condemn strikes and wage demands which they imagine industrial workers indulge in every five minutes, just for the fun of it.
Obviously, different sections of the working class have false ideas about the others, but it only needs a look beneath the surface to see the essential sameness of all their lives.
Every morning from Monday to Friday, excluding holidays, I leave home at three minutes to seven. I buy my newspaper in the newsagent round the corner and stand in a shop doorway waiting for my lift to work. I get picked up about five minutes past seven and we are on our way. The streets are deserted and as we approach Eastwood Toll we, pass the big houses and the tall blocks of luxury flats which sell for around £80,000. All of them are in, darkness so the occupants must still be in bed, and' it's the same with the bungalows just along the road.
In the next ten minutes we pass through the massive Pollok council estate. There's plenty of lights burning in the houses here and lots of activity, with people walking along the streets, standing at bus stops or waiting at corners for their lifts. Most of them probably feel, like me, that it's tough having to start so early, but in an hour's time the Fenwick and Kilmarnock roads will be jammed with the cars of the salary-slaves from Newton Mearns, Whitecraigs, Williamwood and Giffnock all heading into. the city. For despite what my workmates may think, most of those who live in the big houses, luxury flats and bungalows are employees too, and the fact that they start around nine changes nothing-except that they get home in the evening an hour or two later than we do.
So there are superficial differences between these owner-occupiers and council tenants but the things they have in common are much more important. Like problems, for instance. When we read about all those redundancies in factories, shipyards and steelworks, does anyone imagine that only the shopfloor workers are involved? "White-collar" workers, right up to the highest levels of management, get the push, too. They are not immune to this (nobody is these days) and many of them live in places like Giffnock.
Just recently we noticed that Ian, one of near neighbours, was home a lot during the day and, his car was usually parked outside his house. Eventually we learned what had happened. He worked as some kind of executive (he sometimes talked about his "staff") in a big whiskey company, and as the trade is in the middle of its biggest slump in over fifty years his employers had "let him go".
Ian's problem now is to find a new employer. Naturally, a man in his position will look up the situations vacant columns in so-called "quality" newspapers like the Scotsman and the Glasgow Herald rather than the more "popular" Daily Record. There was a time when he could have made an appointment at the impressively titled Executive Register, but not now. The Register was closed as part of the government's economy drive so instead of a private interview in a posh office with a fitted carpet, Ian may have to go to the local Job Centre the same as anyone else.
It cannot be denied that the inhabitants of Giffnock are generally a bit better off than those in, say, Pollok. Here and there you can see an extension being built onto the back of a house or maybe double glazing being installed, but they feel the pinch just the same as workers in industry. Another neighbour, Colin, hasn't taken his family on holiday for two years. "Can't afford it", he tells me; the high interest rates which mortgage payers currently face could be the reason. There must be lots like him in Giffnock.
So some of them try to earn a bit extra just as electricians, plumbers, painters, joiners, and other workers do by taking on "homers" in their spare time. The local newsagents have some cards in their windows which demonstrate this. For example, a local man who is probably an architect will draw up plans for your new extension or garage; an accountant offers his services and someone who is "fully qualified will provide English tuition in the evenings. In the next street there is a woman who does part-time market research. They need more cash, too.
The classified ads in the newspapers also tell a story. Some years ago the discovery of oil in the North Sea encouraged speculation that the fuel would cost next to nothing, so people in places like Giffnock rushed to have oil-fired central heating systems installed. Nowadays the rush is to convert to cheaper gas and the ads are filled with unwanted oil burners and tanks but you can't give them away. I know, I had to pay the local dustmen to get rid of mine.
The fact that many people in places like Giffnock live in better houses, do different work or earn more money than some others does not elevate them out of the working class. They still have to work for a living, worry about making ends meet, face the indignity of the sack and in one degree or another, suffer the problems created by capitalist society. This is what places them firmly in the ranks of the workers whether or not they like it or my workmates know it, and the passing of time makes it more and more evident.
V.V. Socialist Standard January 1981
Strange Bed-Fellows
He said it had become - much as Marx suggested - "a kind of mythology" in which people invested their faith, wrongly assuming it would work for the common good.
In a speech to bankers by the Archbishop of York, Dr John Sentamu.
he called share traders who cashed in on falling prices "bank robbers and asset strippers".
"We find ourselves in a market system which seems to have taken its rules of trade from Alice in Wonderland, " he said. "One of the ironies about this financial crisis is that it makes action on poverty look utterly achievable. It would cost $5bn to save six million children's lives. World leaders could find 140 times that amount for the banking system in a week. How can they tell us that action for the poorest is too expensive?"
Unfortunately , these two theologians are incapable of taking their arguments to its full conclusion i.e. calling for the abolition of the capitalist system as a whole and not simply eliminating what they consider the unpalatable parts . Both men place their faith in an unachievable ethical fair capitalism .
Council workers in strike action
Up to 150,000 council staff in Scotland staged the second 24-hour strike over pay in two months.
Schools, ferry services and rubbish collections are being disrupted as members of the Unite, Unison and GMB unions take part in the action.
It comes after the rejection of an amended offer from local authority umbrella group Cosla to change the 2.5% pay offer from three years to one year.
The unions are calling for a 5% increase in line with inflation.
Matt Smith, Unison's Scottish secretary, said he was impressed by the turnout for the strike and threatened more industrial action if the dispute continued.
Members of the Socialist Party participated in this walk out, just as ordinary workers who are union members.We reject any notions of wage increases 'ever' being the cause of inflation.Wages always play 'catch-up' with inflation.
There is over a century of socialist writing on this subject which can be accessed on the SPGB website, as this search will show.
Wednesday, September 24, 2008
The Worker's Weekend
FROM MONDAY TO FRIDAY the weekend is the time most of us look forward to. This is the time for living it up or taking it easy, and so well is this recognised that numerous books and songs have been written and films made which deal with this theme. Indeed "the weekend" has become one of the most important social institutions in modern society. Life without Saturday night and Sunday morning would be unthinkable for most
people and yet the weekend is only one more institution which, like any other, is evolutionary in character and must eventually disappear.
Just as the legal and political institutions of a society must correspond to the needs of that society (more accurately, of its dominant class) then so must the institution of leisure. The weekend can only have any real meaning in capitalism: it didn't exist in feudalism and certainly won't exist in Socialism.
In feudalism production was largely agricultural so time off work was partly governed by the seasons of the year. Even so, the Church made sure that many holidays (holy days) occurred in winter when work in the fields was often impossible anyway. And the idea of today's summer break would have been ridiculous in medieval times as summer is when work is most needed in agriculture. Modern industrial society requires its work to be carried on throughout the year as the market knows no seasons and it has the artificial means (factories, mills, etc.) to do this. Indeed, lost working time in capitalism is usually caused by purely social factors - slumps leading to redundancy are an obvious example.
The Church, as the most powerful social and political institution in feudalism, decreed when and how many holy days should be observed. In medieval England and, right into the 17th century, the Catholic countries of Europe there were over a hundred holy days a year on which no work could be done and Church courts inflicted fasts and penances on those who broke this law. Further opportunities for leisure were provided by the many Fairs at which the known world displayed its wares. Eileen Power describes in Medieval People how Bodo, a Frankish peasant in the time of Charlemagne, and his family looked forward to these Fairs although their real purpose was to provide essential trading outlets in an age of poor communications. Obviously they have little relevance to modern society and have been replaced by the airborne travelling salesman, the telephone, and the manufacturer's prospectus.
Medieval holidays took place irrespective of the day of the week they fell on. The Church was powerful enough to see to that. And they didn't follow the mechanical two consecutive days-out-of-every-seven pattern like today. Rather they occurred in conjunction with important social, religious, and trading events like feast days and Fairs. In capitalism holidays have to coincide with the demands of industry -whereas May Day traditionally fell on May 1, today it has been relegated to the first Sunday in May. In other words, times for living it up in feudalism happened when there was an excuse for it. They were times for dancing and drinking, sport and lechery, with the clerics wailing that more sin was committed on holy days than on any other. We can confidently say that medieval leisure (or recreation) was geared to the productive forces and social relationships of feudal society.
Meanwhile, as the merchant class grew in strength and power it could see that the medieval system of holidays was incompatible with its need for an ideology fostering the regular working habits required by the new manufacturing system. The cry that England's allegedly weak competitive trading position was due to the "misspending of our time in idleness and pleasure" occasioned by holidays and absenteeism is not the pro-duct of the mid-20th century but of the early 17th.
With the triumph of capitalism over feudalism and the consequent further weakening of the Church's power, the holy days were steadily eliminated until by the 1830s they had almost vanished. Holidays for much of the new-born working class meant, apart from Sundays,
only Christmas Day. The same trend affected office workers too. The Bank of England closed for 47 holidays in 1761, 40 in 1825, 18 in 1830, and 4 in 1834. In Italy, where the Church is still powerful, the remaining Church holidays are coming under fresh attack and legislation is being prepared to rearrange these for the convenience of industry.
The long term effect of such harshness was that many workers used Sunday to drown their sorrows in and the resulting over-indulgence in alcohol produced widespread absenteeism. The shrewder of the employers saw the way to combat this and even rejuvenate the workers by providing more recognised holidays. The 60 hour week in the 1860-70's produced the Saturday half holiday and by 1878 the term "weekend" was in use. Next came secular holidays unconnected with religious festivals and with dates specially picked to suit industry. In the 1890's came summer holidays when whole industries closed down for a week with many workers spending the time away from home. The weekend which we now take for granted -Saturday and Sunday off-was not widespread until after world war two (this writer, employed in engineering, didn't get it until 1948) and was due to the improved bargaining position of the workers caused by full employment.
Leisure as we know it today is the product of a modern industrialism which compels a division of labour within the factory and at the same time gathers all the work of the plant into a unified production process. Similarly, whole industries with their many plants and diverse component units become an integrated network. All these industries are linked together on a global scale so that all the workers directly or indirectly engaged come under this single dominating influence to which they must co-ordinate their use of time. This is why we have the weekend and why we all take our holidays together-to fit in with the requirements of those who as a class monopolise industry - the capitalist class.
Obviously, the way we spend our leisure has changed with the passing of centuries. In feudal times recreation was associated with participating in physical activity such as sport, dancing, etc. Today it means paying to watch others do this, going to the pub, or, more likely, watching TV. But there is an important similarity between the two ages in that both were societies in which men's labour was controlled by a ruling class, so they usually hated their work. Up to the present day work and recreation have been strictly segregated and considered to be mutually exclusive.
But must this always be so? After all, there are some people, even in capitalism, who enjoy and even live for their work. This is especially so when they have some control over what they do and when the work is useful and stimulating. This will certainly be the case in Socialism, a society of production for use with everyone owning and controlling the means of production and distribution in common. People will be able to indulge in work that is engaged in from choice because of the enjoyment and satisfaction which it brings and is not subject to the compulsion imposed by the wages system. What people today call work may well be regarded as leisure or recreation in the future. So even our very concept of leisure changes along with changes in the economic basis of society. Certainly no regimentation of leisure such as today's weekend represents will be tolerated in a free society like Socialism.
If the reader looks around him today he can see that this is not so far fetched as it may seem. Already there is an evolution away from the weekend idea. The increase of rotating shiftwork has made many workers dissatisfied with fixed leisure time by giving them a taste of something different. Also, the growth of "Flextime" where workers may report for and depart from work within certain limits is an indication of their desiring and achieving more control over their own time. These developments should mean that workers hearing the socialist case aren't required to mentally bridge such a wide gulf between the practices of capitalism and of Socialism. Our task as propagandists is made easier by developments within capitalism which erode fixed ideas about the world.
V.V. Socialist Standard April 1972
Tuesday, September 23, 2008
AND EVEN MORE NONSENSE
Monday, September 22, 2008
ANOTHER REFORM OF CAPITALISM
Reading Notes
–- Labour – One of the processes by which A acquires property for B.
- Economy – Purchasing the barrel of whisky that you do not need for the price of the cow that you cannot afford.
- Scribbler – A professional writer whose views are antagonistic to one’s own.
- Scriptures – The sacred books of our holy religion, as distinguished from the false and profane writings on which all other faiths are based.
- Saint – a dead sinner, revised and edited.
- Justice – A commodity which is a more or less adulterated condition the state sells to the citizen as a reward for his allegiance, taxes, and personal service.
John Ayers
Sunday, September 21, 2008
Never a truer word spoken
Nevertheless , however, the Labour faithful should not be too downhearted. Ussher kept calling contributors "comrade" throughout the proceedings.
EVEN MORE NONSENSE
Israeli Foreign Minister and newly elected Kadima party chair Tzipi Livni
"An ultra-Orthodox Jewish party run by an octogenarian rabbi who has said Hurricane Katrina was divine punishment emerged Thursday as the kingmaker in forming the next Israeli government. Having won a fight to be leader of the ruling Kadima Party, Tzipi Livni now will likely need Shas as a partner to become prime minister. But Shas opposes any compromise on Jerusalem, and including it in a coalition could tie her hands in peace talks with the Palestinians."(Yahoo News, 18 September) RD
MORE RELIGIOUS NONSENSE
'recession crime wave'
According to crime figures, around 95 percent of all statutory crime is property-related. This breaks down very roughly as follows: 25 percent theft from or of motor vehicles, 25 percent burglary, 30 percent other forms of theft – fraud, forgery, shoplifting etc., and 15 percent criminal damage to property. The remaining five percent comprises four percent violence against the person and one percent sexual offences . The great bulk of the residual five percent (violence against the person and sexual offences), can be attributed to the everyday stresses and alienations that are part and parcel of our existence in capitalist society. We are conditioned into seeing our fellow workers, with whom, economically, we have everything in common, as rivals; as competitors for jobs and houses.
The system is almost entirely responsible for statutory crime. In socialist society, common ownership and production solely for use would prevail. Almost all statutory crime would fade away. Theft would not exist. What would there be to steal? Your own property? If you really want to be “Tough on crime; tough on the causes of crime”, the solution is very simple – abolish capitalism and establish socialism.
Predictions by the government that deteriorating economic conditions will send crime rates spiralling are borne out by an Observer analysis of official police figures which reveals a significant increase in burglaries across England and Wales. In many cases, the percentage rise was in double digits and in most it was more than 5 per cent. The figures suggest that years of falling crime may be coming to an end. For more than a decade the number of recorded thefts from homes has been on the way down, partly because the plunging value of household goods such as DVD players and stereos has made burglary less lucrative.
Jacqui Smith, warned last month that crime levels will increase amid the economic downturn. A leaked draft of a letter to Downing Street from Smith suggested there will be 'significant upward pressure on acquisitive crime [theft, burglary, robbery] during a downturn'.
It said that if the economic slowdown was on a similar scale to the last recession, property crime would be likely to rise by 7 per cent this year and a further 2 per cent in 2009. Smith's letter warned that the economic climate could boost support for 'far-right extremism and racism'. It also suggested there would be an increase in public hostility to migrants as the job market tightens.
Saturday, September 20, 2008
AN EMPTY SOCIETY
WORKING-CLASS HEROINE: Price at a book signing in London this year for
“Angel Undercovered.” Like her other novels, “Angels Uncovered” is ghost-written
in a distinctly Katie Price voice: cheeky, unpretentious and hypersexual."I regret to inform you that Katie Price plans to put her removed breast implants up for auction on eBay with a minimum bid of one million pounds; that her reality show is a continuing success on British television; that her three autobiographies, all written before she was 30, have been No. 1 best sellers; that her endorsed product lines of lingerie, jewellery and perfume are about to be joined by house wares and baby clothes — and that her original renown springs not from any distinction as an actress, dancer, singer or ... anything, but from a career as a topless model."
(New York Times, 12 September) RD
TURN THE OTHER CHEEK?
Lebanese troops have intervened a number of times to quell violence
"A gunfight between rival Christian political groups in northern Lebanon has left two people dead and three wounded, security officials say. The clash between the anti-Syrian Lebanese Forces group and the pro-Syrian Marada group was triggered by a disagreement over hanging banners. On Tuesday, leaders of 14 of Lebanon's rival factions started talks aimed at solving deep divisions in the country. The army has now set up checkpoints around Bsarma where the clash occurred. Violent incidents across Lebanon in recent days have raised fears of a return to sectarian violence that left at least 65 people dead in May, correspondents say."
(BBC News, 17 September) RD
THE PROFIT QUEST
WORLD HUNGER WORSENS
Thursday, September 18, 2008
A MURDEROUS BUSINESS (2)
UPMARKET DOWN-AND-OUTS
A MURDEROUS BUSINESS
KNOWLEDGE AND PROFITS
Don’t Buy That Textbook, Download It Free
"In protest of what he says are textbooks’ intolerably high prices — and the dumbing down of their content to appeal to the widest possible market — Professor McAfee has put his introductory economics textbook online free. He says he most likely could have earned a $100,000 advance on the book had he gone the traditional publishing route, and it would have had a list price approaching $200. “This market is not working very well — except for the shareholders in the textbook publishers,” he said. “We have lots of knowledge, but we are not getting it out.” While still on the periphery of the academic world, his volume, “Introduction to Economic Analysis,” is being used at some colleges, including Harvard and Claremont-McKenna, a private liberal arts college in Claremont, Calif." (New York Times, 14 September). RD
BETTER LATE THAN NEVER
(CNN.com, 15 September) RD
Wednesday, September 17, 2008
CRISIS MANAGEMENT
PROFITS BEFORE PATIENTS
SUFFER THE CHILDREN
CONSPICIOUS CONSUMPTION
SWEAT SHOP FASHION
Tuesday, September 16, 2008
THE RESTRICTIVE SOCIETY
Reading Notes
During the struggle between the capitalists and the aristocracy, the proletariat was used by the latter to win the fight and then cast aside, pointing the way to a new direction for the workers – class consciousness and political action. Gustav Bang in “Crises in European History” writes,”The proletariat had been betrayed and they knew it. They began to perceive that only through independent action could they make any progress. For obviously any cooperation with the bourgeoisie ran counter to all common sense, since the interests of the two classes were diametrically opposite. The capitalists were given added political power without the slightest gain to the workers – the circumstances attending the latter would be no less oppressive and slave-bound. The capitalists, with the aid of the workers, had acquired new powerful political means that could be used with equal effectiveness against the workers below and the landed aristocracy above. The emancipation of the working class must be its own class-conscious work.” On which rests much of our case for achieving socialism.
John Ayers
DYING FOR CAPITALISM
Monday, September 15, 2008
Food for Thought
- That contrasts wildly with “The High Cost of Low Wages” (Toronto Star,22/08/08) which asked the question, “Why should billion dollar corporations be allowed to pay poverty wages in Canada?” (so the superrich can pay for billion dollar condos, stupid!) More than a million workers in Toronto earn less than $30 000 per year. As the economy shrinks and pinches the workers, big oil and banks report record profits.As we continually point out, don’t expect capitalism to work for the workers.- Capitalism also forces people to act in strange ways –
1.Jazz Airlinesrecently announced that in order to save weight, and therefore fuel, they were removing life jackets from all its planes, including those flying over water. Now you have to hang on to your seats, literally!
2.The high price of gas – a Kentucky woman was arrested for trading sex for the pricey commodity.
3. A German purse thief escaped a would-be captor byexposing her breasts and yelling rape.
4. A man is arrested in San Jose for breaking into a small airport and siphoning airplane fuel into his cargas. tank.
5. Police in Peel Region (near Toronto) arrested two men and confiscated fake high-end labeled goods worth $10 million.
6. In Toronto thieves make off with 14 catch basin (road sinks) covers for scrap value and leave gaping holes in the roadway edges. The rest are being welded on.(mostly taken from “Proof the World is getting Worse”, Toronto Star).-
On the environmental front, Clayton Ruby (Toronto Star 16/08/08)reports that the Alberta Tar Sands Project is the ‘single most destructive fossil fuel development in the world.’ There are 207 countries in the world that track the emissions they emit and the tar sands alone out performs 145 of them. Each day the project uses 300 million cubic feet of natural gas, enough to heat 3 million Canadian homes. Each barrel produced in Alberta produces three times the greenhouse gas emissions of a conventional barrel of oil, yet $50 billion a year is being invested there instead of developing new clean technologies. Is there a better example of how capital slavishly follows the path of greatest profit now, without regard to humans or their environment? Harper’s intensity targets which reduces emissions per unit while letting overall emissions rise freely on greater volume, Dion’s carbon tax that allows trading of carbon credits,and Layton’s ‘make the polluters pay’ (as if!) don’t even begin to address the problem, just as you would expect. Our government did go to Washington to tout the green energy (sic) of the tar sands. Unfortunately for them,while there, a large flock of ducks landed in the ever-growing tar ponds, died en masse, and hit the headlines.- In the 1990s, Big Tobacco was in a life and death struggle to retain market share as cigarette prices soared to $50/200. The answer was to work through Canada’s native reserves and smuggle cigarettes in at cheap prices. They got caught and the resulting civil settlement reported onAugust 1 (Toronto Star) said that Imperial Tobacco and Rothman’s, Benson &Hedges paid out $300 million. On the second of August the same newspaper reported that the federal government paid out compensation to the tobacco farmers, who are being squeezed out of the market by a diminishing customer base, to the tune of …$300 million! John Ayers
Sunday, September 14, 2008
MODERN TIMES
INVADE AND THEN PROFIT
POST-WAR PROFITS
Saturday, September 13, 2008
CITY SLICKERS
THE INDIAN RUPEE TRICK
BEHIND THE RHETORIC
Thursday, September 11, 2008
Cold Profit
"It will make more money for us."
Whether meant as a joke or not , spoke the truth of what drives capitalism .
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Paternalism is a common attitude among well-meaning social reformers. Stemming from the root pater, or father, paternalism implies a patria...