PROFIT THE GREATER CONCERN

It's getting closer to election time; politicians claim their concern and understanding for the unemployed. Socialist  remind workers that concern over profits take priority over concern for the unemployed, when the profit motive looks achievable, it becomes business as usual, for example,

 

Recently TV channels have reminded us that the miners strike was 25 years ago, they point out that at the time of the strike, the industry employed 180, 000 miners, after the strike, the number eventually decreased to just over 6,000 being employed in the industry, new cheaper sources of energy were available and that was all that mattered to the capitalist class.

Over recent times, energy supplies have become more uncertain for the capitalist class and the possible profit in coal production has lead to more investment in coal production.

The owners of a UK coal mine have bought state-of-the-art machinery worth £37m - the biggest such UK order in over 20 years.

The cutting and ancillary equipment will be used at Hatfield Colliery near Doncaster in South Yorkshire.

It closed in 2004 but will be fully operational next year.

The six deep mines operating in the UK produce 10m tonnes of coal annually but there is uncertainty over the industry's future.

'Milestone'

Hatfield is having a re-investment programme to develop coal reserves and hopes to produce two million tonnes of coal per year by 2009.

The equipment is being bought from Joy Mining Machinery at its factories in Worcester, Wigan and Pinxton on the Derbyshire-Nottinghamshire border.

Powerfuel's chief executive Richard Budge said: "This is the biggest single order for mining equipment for many years and underlines our confidence in coal and the role it will play in meeting Britain's energy needs for decades to come.

"This is a further major milestone in the re-birth of Hatfield. The equipment is proven technology, manufactured in the UK by a company with the highest reputation on the world stage for quality and performance." ( BBC Sunday 26^th August 2006 )

 

 

The company which owns Scotland's only commercial gold mine has floated on a London stock market.  

Scotgold Resources said it hoped to raise up to £2m on the Alternative Investment Market (AIM).

Initial fundraising will help the Australian company pay for further exploration and development of a mine at Glen Cononish, near Tyndrum.

But it will only be a fraction of the cost of putting it into production, which could be more than £12m.

Scotgold Resources hopes that a high gold price of about $1,100 (£715) an ounce will help make the economics work for such a risky venture.

It has previously claimed there could be up to £70m of gold in the mine.

The mine was previously abandoned in 1997, when the price of gold fell to under $400 (£260) an ounce.

Chris Sangster said there was probably 4.5 tonnes of gold in the mine

Chris Sangster, chief executive of Scotgold, said: "We are in a very fortunate position that in 1997 when the project was due to have gone ahead before, most of the technical work had already been completed, so we have picked up on that technical work, updated with a bit of new technology, and we are almost ready to roll.

"Our current resource estimate has about 4.5 to five tonnes of gold and about 20 tonnes of silver. That's 150,000 to 160,000 ounces of gold, which at the moment is worth probably $170m, with a bit of silver on top. That's what we know about at the moment."

Mr Sangster said the firm also had a wider exploration programme in the southern Highlands area and there were "good indications" there was more gold available.

Tim Williams, director of mining and metals at analysts Ernst & Young, said: "The Australians are very good at mining this kind of gold - narrow veins and so on.

"In Australia and in Canada, you have this army of investors who will put their own personal money into these little companies and they understand the way the industry works.

"There are about 150 of these junior mining companies on the AIM market in London but it is nothing compared to the thousands in Toronto and in Sydney."

Mr Williams said an AIM listing allowed companies to raise money when they did not have the same trading history as they would need for a main board listing.

 

Friendly Fire?

For some reason, an apology is expected to make people who have nothing to gain from this war, forgive!

KANDAHAR, Afghanistan - The commander of U.S. and NATO forces in Afghanistan went on national television Tuesday to apologize for a deadly airstrike, an extraordinary attempt to regain Afghans' trust while a mass offensive continues against the Taliban in the south.

Two U.S. Marine battalions, accompanied by Afghan troops, pushing from the north and south of the insurgent stronghold of Marjah finally linked up after more than a week, creating a direct route across the town that allows convoys to supply ammunition and reinforcements.

In a video translated into the Afghan languages of Dari and Pashto and broadcast on Afghan television, a stern Gen. Stanley McChrystal apologized for the strike in central Uruzgan province that Afghan officials say killed at least 21 people. The video was also posted on a NATO Web site.

Increasing pessimism

Trading in your car and renewing other household items, can't stop the boom slump cycle of capitalism.

 

NEW YORK - Americans' outlook on the economy went into relapse in February. Rising job worries sent a key barometer of confidence to its lowest point in 10 months, raising concerns about the U.S. economic recovery.

The Conference Board said Tuesday its Consumer Confidence Index fell almost 11 points to 46 in February, down from a revised 56.5 in January. Analysts were expecting only a slight decrease to 55. It was the lowest level since the index recorded a 40.8 reading in April 2009.

The increasing pessimism, which erased three months of improvement, is a big blow to hopes that consumer spending will power an economic recovery. Economists watch the confidence numbers closely because consumer spending accounts for about 70 percent of U.S. economic activity.

THE RECESSION IS OVER, FOR WHOM?

President Barack Obama speaks about creating new energy jobs, February 16 in
Maryland.

Washington. - Job creation in the U.S. is stuck in an uphill treadmill.

So many jobs have been lost that the U.S. must run hard just to keep from losing more ground. Despite the election -year emphasis on job creation by both parties, the short term outlook is bleak.

While many economists believe the recession is technically over, nearly 15 million Americans remain unemployed. Six million of them have been out of work for more than half a year.

Hear in Britain the economists have yet to make up their minds about the recession being over, however, I'm sure increased unemployment will be around even when they decide that it is over.

Insiders and Others

With all this talk of buying bank share in today's papers,

what happens to most of the shares over the years?

This article from the Socialist Standard gives you an
insight of past share dealings

 

 

Another article from the Socialist Standard archives exploring the world of capitalist financial institutions.

Did you get your British Gas shares ? What's that, you didn't bother? Well, neither did most other workers who had the chance, and no one knows how many of those who did buy the shares will hold on to them. It was estimated that on the day after the sale, around one tenth of the shares had already changed hands as small-time buyers sold out to the big institutions like insurance com­panies and pension funds. This is what hap­pened with British Telecom shares. When they were first sold in 1984 the number of individual shareholders was 2.3 million. By May 1986 the number was down to 1.6 mill­ion, a drop of over 30%, and this figure is cer­tain to fall still further as time passes.

Nevertheless, interest in the stock market is a lot higher than ever it was before. Until recently most people only ever saw the stock market quotations in the newspapers if they accidentally turned over two pages at once, but the saturation coverage by the media of the government's privatisation programme has changed all that. Also, the fear of unemployment has ensured that many employees of quoted companies follow the share price of those companies as a guide to their job prospects.

However, the workings of the stock mar­ket remain a mystery to the vast majority of people and this helps preserve the silly notion that financiers, stockbrokers and the like who do understand it are brainier than the rest of us. Actually, it's not nearly as difficult as it seems . One of the main reasons why someone not involved in finance finds it baffling is the frequent use of several different words to describe one item. For example, government "stock" , which pays a fixed rate of interest, is also called "gilts" (gilt-edged) or "consols" (consolidated) while "securities" is simply the all-embracing name for stocks and shares of all kinds.

Different types of shares have different rights and rewards. The "ordinary" shares are the ones which actually own the com­pany. Holders of these have full voting rights and receive a variable dividend depending on the company's profits, if any, and what the directors decide to pay out. These shares are also referred to (more confusion) as "equities". </EM"Preference" shares usually have no vote but entitle holders to a fixed dividend ahead of the ordinary shareholders assuming there is something to pay out. "Deben­tures" are loans made to companies by investors who receive fixed-interest whether the company makes a profit or not.

Until October 1986 members of the Lon­don Stock Exchange had to be British-born. And although they would angrily denounce "who does what" disputes in factories, ship­yards, etc. they had their own restrictive practice. This meant that only those who were brokers could buy and sell securities for the public and they made their money by charging clients a fixed commission. "Job­bers", on the other hand, bought and sold on their own account but could only deal with the public through the brokers and made a living from the difference between the prices at which they bought and sold. So brokers couldn't act as jobbers and vice-versa. Since October membership of the Exchange is open to other nationals and the difference between brokers and jobbers is abolished along with fixed commissions. Now the price on deals is negotiable

All of these changes, known as "de-regu­lation", are the result of the "Big Bang" we have all heard so much about. The idea is to make the London Stock Exchange more competitive with its main rivals in New York (Wall Street) and Tokyo. After all, if custom­ers can have their business carried out more cheaply in New York or Tokyo then that is where they will make their deals and the new computerised communications technology makes that easy to do. This new technology also means that dealers in London will now transact business in their offices and the Stock Exchange floor will be almost deserted from now on

Any stock market must protect its reputa­tion for honest dealing If investors think that they may be ripped-off then they will take their business elsewhere and this is why the New York and London Stock Exchanges are trying to curb "insider dealing". The most notorious insider is the Wall Street speculator, Ivan Boesky, who for years had apparently anticipated the rise in price of var­ious securities which he bought on a huge scale. Hailed as a genius, Boesky had simply been using confidential information passed to him, for a cut, by people who were profes­sionally engaged in takeover bids which would push up the price of the shares involved.

It is hard to imagine that Wall Street didn't know what Boesky was up to. No one can consistently tell in advance what the market will do. The anarchy of capitalist production sees to that. When every company in every industry is making its plans independently of all the others, and when all of them are sub­ject to forces beyond their control such as decisions taken by foreign governments or even their own, then how can future market trends be forecast with any certainty? The truth is that large-scale insider dealing has been the norm for a long time and will con­tinue in the future whatever steps are taken to eliminate it. So much for the claim fre­quently made on behalf of the capitalists that their high returns are justified because they are the "risk takers''. Not if they can help it, they're not!

What about the other claim that the capitalists are the "wealth creators" because of their activities in the stock market? The real wealth of society consists of human beings using their physical and mental energies plus the resources of nature to produce the goods and services society needs. This wealth is legally owned by the owners of the enter­prises whose workers have produced it. All the workers receive in return for their efforts is a part of the total value produced in the form of their wages and salaries. The remain­der, surplus value in the form of dividends and interest, belongs to the owners of the various stocks and shares. These securities are merely legal title to this surplus and it is this title which is being traded when sec­urities are bought and sold. So capitalists create not a scrap of wealth and stock exchanges are only the places where surplus value is divided between them.

Even so, the enormous power of the capitalists makes them seem invincible and many workers, even against their wishes, cannot see how capitalism can ever be top­pled. But the power of the capitalists does not lie in the amount of pounds, dollars and francs they own. It lies in the fact that the vast majority of workers still see production for profit as the only possible method of produc­ing and distributing society's wealth. If that idea should weaken due to the growth of socialist consciousness in the world's work­ing class then the power of the capitalists would not look so invincible at all.

We can see today how easily stock mar­kets can tremble when investors get the jit­ters over, say, the mere rumour of a small increase in interest rates or some other trivial matter. Imagine what those jitters will be like when the socialist movement begins to grow. Who will be willing to invest then? Capitalism depends for its continued exis­tence on working-class support for it. When that support crumbles then so too will the power of the capitalists.

V. V.
Socialist Standard February 1987

ALL RIGHT FOR SOME

"Last year, investment bankers and their spouses kept their wallets shut during bonus season, first, out of panic, and later, fearing mobs with torches would descend upon their gated estates.
Now, after a year of self-imposed austerity and in what is shaping up as a spectacular bonus season, the Wall Street crowd is shaking off what one luxury retailer called its "frugal fatigue." Unlike earlier spending sprees, however, the consumption will be a lot less conspicuous. On Wednesday, Morgan Stanley said it was setting aside $14.4 billion for salary and bonuses, or $235,000 per employee. A day later Goldman Sachs said it would pay an average of $498,000, with top producers at each of the two banks earning in the millions. More than in past years, this year's bonus numbers are stirring deep resentment in a nation staggering under 10 percent unemployment." (New York Times, 22 January) RD

MOTHER OF THE FREE

At the last night of the Proms exploited members of the working class like nothing better than to bawl out the words of Land of Hope and Glory. Poor, deluded workers image that there is something superior about being born on a piece of dirt thrown up on the Atlantic Ocean. They never realise that it is an accident where you happen to be born, and indeed that it was probably an accident that they were born at all. This misguided nationalism is fostered by governments and the media. Britain is superior to Johnny Foreigner with his deceitful regimes. No underhanded politics in dear old Britain says the patriot critical of foreign powers, but what is the reality? "MI5 faced an unprecedented and damaging crisis last night after one of the country's most senior judges found that the Security Service failed to respect human rights, deliberately misled parliament, and had a "culture of suspicion" that undermined government assurances about its conduct. The condemnation by Lord Neuberger, the master of rolls, was drafted shortly before the foreign secretary, David Miliband, lost his long legal battle to suppress a seven paragraph court document showing that MI5 officers were involved in the ill-treatment of a British resident, Binyam Mohamed." (Guardian, 11 February)
Yet another example of how the quest for markets soon overcomes any ethical scruples. Not so much a case of Britain Rules The Waves as Britain Waives The Rules. RD

CLASS DIVISION

Socialists are often pilloried because we look at the world from a class perspective. We are accused of being outdated, old fashioned and living in the 19th Century. All that Marxists stuff about class division has been outdated by the new dynamic capitalism of the 21st Century we are told by our critics. A recent government sponsored health review seems to give the lie to that notion.

 " Healthy living is cut short by 17 years for poorest in Britain. The poor not only die sooner, they also spend more of their lives with a disability, an "avoidable difference which is unacceptable and unfair", a government-ordered review into Britain's widening health inequalities said yesterday. ... Not only is life expectancy linked to social standing, but so is the time spent in good health: the average difference in "disability-free life expectancy" is now 17 years between those at the top and those at the bottom of the economic ladder, the report says." (Guardian, 11 February)

A GREATFUL NATION

Capitalist nations are continually in conflict with their rivals and inside capitalism economic rivalry leads to military action. During these actions the press praise " Our Boys" in uniform and regale us with tales of heroism. Nothing is to good for "Our Boys" they claim, but the reality is far different. "Britain's military veterans are too often descending into alcoholism, criminality or suicide because of a lack of support from the Government according to the Mental Healtlh Foundation. Veterans under 24 are two to three times more likely to kill themselves than civilians of the same age. An estimated one in five veterans and Service personnel is said to have a drinking problem. The charity said:"More needs to be done to help veterans stay well."
(Times, 28 January) Having risked life and limb in pursuing the interests of their masters in these hellish conflicts the heroes of yesterday are thrown on the social scrapheap. RD

Food for Thought

The economy seems to be improving but that may be an illusion. Stocks and shares are up mainly because interest rates are so low that capital has flowed there. The real numbers show a different perspective - Ontario lost 17,000 jobs in December and the managed unemployment rate is at 9.3%. Meanwhile, in the US, food stamps are needed by one adult in eight and one child in four to keep food on the table. Real wages there, adjusted for inflation, are lower than they were a decade ago.
How capitalism works on the East coast - no jobs, put your life in hock to buy a boat and catch lobsters, sell them to the US market and make ends meet, wait for the recession that drops the lobster prices to $3/lb when the break even point is $5, what to do? "That ( boat is ) my retirement package. If I sell it to pay my bills, then I'm finished" says a fisherman
( Toronto Star, 26/Dec/2009 )
It's a great competition - a few win, most lose. John Ayers

Summer School 2010

__________________________________________________________

The Socialist Party's Summer School is being held at Fircroft College, Selly Oak, Birmingham, over the long weekend 23rd - 25th July.

The theme is 'Future Visions' - This year's weekend of talks and discussion looks to the future. But what kind of future? For centuries, people have imagined utopias where advances in technology and attitudes create freedom for all. Or, they have described dystopias, where society turns into a nightmare. Back in the real world, how will capitalism survive and adapt to ongoing economic and environmental concerns? And what kind of socialist society can we aim for as an antidote to this?

The residential cost (including accommodation and all meals) is £130.
The concessionary rate (for students, unemployed people, pensioners etc.) is £80.
The non-residential cost (including meals) is £50.
If you're interested in attending, e-mail Mike Foster at spgbschool@yahoo.co.uk
________________________________________________________

Food for Thought

On crime, it's illuminating to read James Morton's article in the Star ( 3/Jan/2010 ). Although the government and the media fuel the fear of crime, Canada is reasonably safe. Violent crime has been dropping for years and was lower in 2007 than in the last decades and property crime is 40% below 1991 levels. Poverty, he says is what drives crime, destabilizing families and areas leading to drug, alcohol, sexual and family abuse. Our abominable prisons tend to be filled with drug addicts, mental patients, poor people, and, as I can attest as a prison volunteer tutor, learning disabled people. As we are aware, poverty is a natural outcome of capitalislm. That wasn't stated , of course. John Ayers

PEACE PRIZE?

"President Obama is planning to increase spending on America's nuclear weapons stockpile just days after pledging to try to rid the world of them. In his budget to be announced on Monday, Mr Obama has allocated £4.3 billion to maintain the U.S. arsenal - £370 million more than George Bush spent on his final years on nuclear security. The announcement comes despite the American President declaring nuclear weapons were the 'greatest danger' to U.S. people during during in his State of the Union address on Wednesday. And it flies in the face of Obama's Nobel Peace Prize, awarded to him in October for 'his extraordinary efforts to strenghthen international diplomacy and cooperation between peaples'"
( Daily Mail, 29 January ) RD

Food for Thought

The only safe injection site for drug users in Canada is sucessfully operating in Vancouver. Other North American cities have noted its sucess and want to have their own. The federal government has tried for years to shut it down. It's much better to throw these people in jail, boost the crime statistics, bring out 'tough on crime' legislation, and look popular. Recently the Supreme Court ruled that it could not be shut down, not because it's sucessful, but because the Fed's don't have any jurisdiction over provincial health. Capitalism is not common sense!
John Ayers

"CARING" CAPITALISM

"CARING" CAPITALISM

Lt. Gov. Andre Bauer has compared giving people government assistance to "feeding stray animals." Bauer, who is running for the Republican nomination for governor ( of South Carolina), made his remarks during a town hall meeting in Fountain Inn that included state lawmakers and about 115 residents. "My grandmother was not a highly educated woman, but she told me as a small child to quit feeding stray animals. You know why? Because they breed. You're facilitating the problem if you give an animal or a person ample food suply. They will reproduce, especially ones that don't think too much further than that. And so what you've got to do is you've got to curtail that type of behaviour. They don't know any better," Bauer said."
( Greenville News, 23 January) RD

ANOTHER LABOUR FAILURE

"The divide between rich and poor is greater after 13 years of Labour rule than at any time since the Second World War, according to the Government's own report into inequality. It concludes that Britain remains a nation riven by class " from cradle to grave", despite programmes costing billions of pounds in the past decade designed to narrow the gap." ( Times, 27 January ) RD

Socialist Standard February 2010 Vol.106 Issue,No.1266

As PDF As HTML

Features Haiti - an un-natural disaster The reality with earthquakes is they kill so many only if we let them. They are inevitable, but the death toll is not...Read more > Christmas bombers The son of a Nigerian banker wasn’t the only one on a bombing mission at Christmas...Read more > Who bailed out the bankers? They tell us that we “the taxpayers” did? But it’s not as simple as that...Read more > Beyond capitalism Attempts to reform capitalism, whether through parliament or dictatorship, have failed. This leaves conscious majority revolution as the only way forward...Read more > The market versus cooperation Difficulties with cooperation arise when the restrictions of the market start to operate...Read more > Car boot capers Shopping, it’s said, is the new religion, the new opiate of the people...Read more > Regulars Editorial Contact Details Meetings Cooking the Books 1 Dreams and nightmares Cooking the Books 2 The yellow brick road Cartoons The Irate Itinerant Free Lunch Pathfinders Machine in the ghost Material World America and the S-Word Pieces Together Tiny Tips Reviews Cronies or Capitalists?; First as Tragedy...; Red Planets 50 Years Ago You’ve never had it so good” Greasy Pole Hoon or buffoon? Voice from the Back

Reading Notes

In "Fast Food Nation", Eric Schlosser comments on the line speed of slaughter houses in the meat packing business: "I could always tell the line speed," a former Montfort nurse told me, "by the number of people with lacerations coming into my office." "A faster pace means higher profits. Market pressures now exert a perverse influence on the management of beef plants: the same factors that make these slaughter houses relatively inefficient (lack of mechanization, the reliance on human labour) encourage companies to make them even more
dangerous (by speeding up the pace)" "The line speeds and labour costs at IBP's non-union plants now set the standard for the rest of the industry. Every other company must try to produce beef as quickly and cheaply as IBP does: slowing the pace to protect workers can lead to a competitive disadvantage." " From a purely economic point of view, injured workers are a drag on profits. They are less productive. Getting rid of them makes a good deal of financial sense, especially when new workers are readily available and inexpensive to train." Just some of the basic tenets of the capitalist mode of production. John Ayers

THE GAP WIDENS

"The richest 10% of the UK population are now more than 100 times as wealthy as the poorest 10%, according to the Anatomy of Economic Inequality. The study shows that by 2008 Britain had reached the highest level of income inequality since soon after the second world war. Household wealth (including cars and other

possessions) of the top 10% amounts to £853,000 or more, while the poorest 10% amass £8,800 or less."  (Observer, 31 January) RD

ALL RIGHT FOR SOME

"Bob Diamond, president of Barclays, sold £5m of shares in the bank, days after the 21,000 investment bankers at Barclays Capital - overseen by Diamond - were awarded hefty pay rises. Diamond still has 8.3 shares, worth £20m, so don't worry about him being short of a few bob." (Observer, 31 January) RD