Food for thought

Austerity riots have been experienced all over the world and it is at least part of the cause of the Arab Spring. According to David Olive (Toronto Star, Aug 13, 2011) the American austerity measures have left 46 million Americans (15%) reliant on food stamps – a staggering figure in the richest nation ever on earth! Surely these workers will figure out what is happening to all that wealth. Will they find the socialist answer? John Ayers

Under-employed

While Scotland’s official unemployment rate is 7.7%, combined with people seen as “economically inactive” and “underemployed”, then what it terms as the “full-time unemployment deficit” rises to 17.25% or 468,301 Scots the STUC has said.

Grahame Smith, STUC general secretary, said:
“There are simply far too many people in Scotland at this time unable to access the quality, full-time work opportunities necessary to provide for a decent standard of living for themselves and their families.” He added: “Of course, the UK Government is continuing down the road of austerity, cutting jobs when they are most needed. There is little sign of hope for the half-million people in Scotland who are unemployed, inactive or underemployed.”

Food for thought

Capitalism being capitalism, poverty raises its ugly head with an alarming regularity. A group of well meaning advocates for the poor are proposing a new Ontario Housing Benefit to help the poor with housing costs (Toronto Star, Aug 26, 2011). On in five renters in the province spend more than half their income on housing, and for food bank users, that percentage is seventy-two. Renter's incomes fell by $6 396 between 1981 and 2006. More than 152 000 Ontario households are now waiting up to fifteen years for affordable housing. Successive governments have chopped subsidized housing programs or sold them off as liabilities. Astounding, when we have the materials to hand, and construction workers looking for employment. The proposed benefit would give $100 per month to 200,000 low-income tenants. The cost would be $240 million against poverty costs in health care, social assistance, and foregone tax revenue of $38 billion. Of course, government, constrained by short term goals and budgets will never go for the idea just as they had no intention in making good on an all- party promise in 2006 to reduce poverty by 25% in five years. It grew. John Ayers

Who owns the North Pole Part 41- No-one says Greenpeace

Greenpeace director John Sauven he plans to save the North Pole from big oil by building a legal wall, an international prohibition, which will prevent the countries surrounding the Arctic from claiming the top of the world for themselves, in order to exploit the mineral riches which lie under its seabed.

The melting of the Arctic ice, as the global climate warms, is opening up the great frozen wilderness, the world's most untouched ecosystem; indeed, this week a new record minimum for the ice is likely to be reached, surpassing even the record low of September 2007, which was such a plunge downwards it astonished polar scientists. It means that climate change is having its most unmistakable effect so far on the fabric of the Earth. Yet it also means that gluttonous eyes are being cast on the Arctic for what it holds, not least its 160bn barrels of oil, both by the "supermajor" oil companies such as Shell and Exxon Mobil, and the countries by which the Arctic Ocean is surrounded – Canada, Russia, the US, Norway and Denmark (via Greenland). They are looking to extend their territorial waters and consequent sovereignty of the seabed out to 90 degrees North.

"And what we want do," says John Sauven, who is executive director of Greenpeace UK, "is say that this area, which is currently not national territory, this area of sea ice around the North Pole, should be a 'global commons', collectively owned by humanity under the auspices of the United Nations. It has huge symbolic importance as a pristine ecosystem. Yet the oil companies and the surrounding nations are saying, this might be at the ends of the earth, but we're just going to go in and carve it up. The Arctic sums up the complete and utter madness, the bankruptcy of their strategy. They will go to these extreme lengths to dig up the last bit of fossil fuels because they cannot be bothered to deal with energy efficiency and find alternatives, and they're prepared to suffer all the consequences, the impacts on wildlife and the fact that you can't do anything about them. It's insanity."

So now Greenpeace is planning a global campaign to make the North Pole off-limits. Internalionalised. No development. No oil drilling. No territorial claims.

"The Arctic is an iconic part of the global commons, rather like the Amazon for the rainforest," Mr Sauven says. "Is it just to be a grab by these huge corporations to extract the resources, which will have a calamitous impact on the world?"

GOVERNMENT PAYMASTERS

Recent proposed legislation by the government to allow house building on previously designated green areas has aroused some opposition, but the background to the proposals is likely to cause even more resentment. "Dozens of property firms have given a total of £3.3 million to the party over the past three years, including large gifts from companies seeking to develop rural land. Developers are also paying thousands of pounds for access to senior Tories through the Conservative Property Forum, a club of elite donors which sets up breakfast meetings to discuss planning and property issues. The disclosures are likely to provoke a new "cash-for-access"row and will give rise to fears that planning policies could have been influenced by powerful figures from the property industry." (Daily Telegraph, 10 September) The newspapers fears about "powerful figures" influencing the government seems somewhat naive. The whole purpose of legislation inside capitalism is to accommodate the wishes of the owning class. RD

Snouts in the trough

One-third of Scotland’s “double-jobbing” MSPs are continuing to collect salaries from council jobs, four months after being elected to £58,000-a-year posts at Holyrood.

Unions have criticised those still collecting the salaries, which comes at a time of unprecedented redundancies and reductions in workers’ terms and conditions.

Martin Doran, who heads the GMB union in Glasgow, said: “...my feeling is that this is an obscenity. If these people had any decency they would stand down.”

VILLAINS AND MORE VILLAINS

The use of torture or the mistreating of prisoners is completely unlawful and would never be countenanced by the British Army we are assured by our politicians. So how do they explain the following discovery? "An Iraqi man died after suffering an "appalling episode of serious gratuitous violence" in a "very serious breach of discipline" by UK soldiers, a year-long inquiry has found. Its chairman, Sir William Gage, condemned "corporate failure" at the Ministry of Defense over the use of banned interrogation methods in Iraq. Baha Mousa died with 93 injuries in British army custody in Basra in 2003." (BBC News, 8 September) It is surely significant that the authorities have dragged their feet on this enquiry. Eight years and a year long investigation have helped to blunt the events - or so they hope. His widow and children might think differently. Baha Mousi was found to be innocent. RD

HEROES AND VILLAINS

British newspapers are fond of depicting capitalism as a struggle between the good guys and the bad guys with the British always being the good guys. This is a complete fantasy of course. Whenever it suits their political and economic interests they will side with mass murders, torturers and dictators. "The Security Service MI5 asked Colonel Gadaffi's secret service for regular updates on what terrorist suspects were revealing under interrogation in Libyan prisons, where torture was routine. MI5 also agreed to trade information with Libyan spymasters on 50 British based Libyans judged to be a threat to Gadaffi's regime." (Sunday Times, 4 September) These disclosures only became public when documents were found in the ruins of the British Embassy in Tripoli. RD

Scotland the Brave?

The Socialist Party of Great Britain, part of the World Socialist Movement, argue that every nation state is by its very nature anti-working class. The “nation” is a myth as there can be no community of interests between two classes in antagonism with one another, the non-owners in society and the owners (the workers and the capitalists). The state ultimately exists only to defend the property interests of the owning class at any given point in history – which is why modern states across the world send the police and army in to break strikes and otherwise seek to protect the interests of the capitalists and “business” at every turn.

The goal of the socialist movement is not to assist in the creation of even more states but to establish a real world community without frontiers where all states as they currently exist will be destroyed. In a socialist society communities, towns and cities will have the opportunity to thrive – and people will no doubt feel an attachment to places that are real and tangible – but nation states will be consigned to the history books where they belong.

Constitutional reform such as Scottish independence is of no benefit or relevance to us. It leaves our lives and the problems the profit system causes completely unchanged. Exploitation through the wages system continues. Unemployment continues. A crumbling health service, a chaotic transport system, a polluted environment, failing schools, rising crime and drug addiction and the general breakdown of society all continue. As far as solving these problems is concerned, constitutional reform is just a useless irrelevancy.

We are told by the nationalists that it would be an extension of democracy, bringing power nearer to the people, so how can socialists not be in favour of this? Yes, Socialists are in favour of democracy, and socialism will be a fully democratic society, but full democracy is not possible under capitalism. Supporters of capitalism who talk about “democracy” always mean only political democracy since economic democracy--where people would democratically run the places where they work--is out of the question under capitalism, based as it is on these workplaces being owned and controlled by and for the benefit of a privileged minority. An independent Scotland can have the most democratic constitution imaginable but this won’t make any difference to the fact that profits have to come before meeting needs under capitalism. The people’s will to have their needs met properly is frustrated all the time by the operation of the economic laws of the capitalist system which no political structure, however democratic, can control.

But socialists are just as much opposed to British nationalism as we are to Scottish nationalism. Just because we are not prepared to back the efforts of Scottish nationalists to break away from the United Kingdom--and vigorously oppose their efforts to split the trade union movement--does not mean that we are Unionists. We don’t support the Union. We just put up with it while we get on with our work of convincing people to reject world capitalism in favour of world socialism.

HOME OF THE BRAVE?

It is the most developed capitalist nation in the world, but there is more to the USA than shiny cadillacs, penthouses and luxury swimming pools. Behind the Hollywood luxury of the owning class lurks the reality for many members of the American working class. "A long way down the US housing ladder, beneath the grisly 'projects' of The Wire and the trailer parks hymned by Eminem, beneath the slums of New Orleans and the ghettos of Detroit, you'll find the long-stay hotel. Cheap, not very cheerful, and pretty much a last resort, these institutions provide four walls and a roof, for a few hundred bucks a month. It's some of the cheapest accommodation you'll find anywhere in the US, aside from a cardboard box. Long-stay hotels can be found in almost every major American city." (Independent, 3 September) RD

THE PRICE OF PROGRESS

The development of capitalism in Western Europe led to the displacement of thousands of farm workers, pollution and human misery. The same development is now taking place in China. "In the dust-blown mountains of China's coal belt, locals have lived for years with choking clouds of soot and the continual roar of mines that never sleep, digging for 24 hours a day. Now they face being buried alive as China tries to extract every last nugget of coal from beneath them. Shanxi Huang Jia Po is a village on the edge. For centuries, 500 farmers have lived here, carving stepped fields into the side of their mountain and planting corn, marrows and aubergines in the fertile yellow soil that covers Shanxi province. But the children of the farmers will have to live somewhere else, because it is only a matter of time before the village falls into the honeycomb of mining tunnels below." (Daily Telegraph, 3 September) In its relentless drive for more and more profit capitalism pays scant heed to the needs and aspirations of the working class. RD

FINANCIAL WIZARDS

The supporters of capitalism are always telling socialists that the owning class enjoy their elevated social status because of their masterful abilities to operate the financial and commercial system. The news that US authorities are to sue 17 major banks for losses on mortgage-backed investments that cost tens of billions of dollars seems to contradict that notion. "The Federal Housing Finance Agency said it was taking action against banks including Goldman Sachs, Barclays, Bank of America, Deutsche Bank, and HSBC. The agency says they misrepresented the quality of the mortgages they sold during the housing bubble. The values plunged as the US was engulfed in the financial crisis. The FHFA oversees mortgage giants Fannie Mae and Freddie Mac.The two firms lost more than $30bn (£18.5bn), partly because of their investments in the subprime mortgages, and were bailed out by the US government. Since the rescues, US taxpayers have spent more than $140bn to keep the firms afloat." (BBC News, 2 September) $140 billions - some masterful ability! RD

AN ILL-DIVIDED WORLD

We are told by politicians and political commentators that although we live in tough economic times "we are all in this together". This touching sentiment seems a little difficult to grasp when we read about how two members of the capitalist class are coping with the economic situation. "News International boss James Murdoch has declined a $6m (£3.7m) bonus, citing the "current controversy" over phone hacking at the News of the World. His father, News Corp boss Rupert, received a $12.5m (£7.7) bonus. His total remuneration for the year to 30 June was $33.3m (£20.5m), up 47%. James Murdoch saw his pay packet rise 74% to $17m, but said declining the bonus was the "right thing to do". (BBC News, 2 September) RD

NO LOG CABIN HERE

It is a popular myth that US schoolchildren have been taught over the years. How in America you can rise from poverty to become the president of the USA. Abraham Lincoln and his log cabin is usually trundled out in support of the myth. In fact many of the present day US politicians are extremely wealthy individuals as this report illustrates."GOP presidential contender Mitt Romney, scheduled to attend a series of fundraisers this weekend in San Diego, is also working on plans to nearly quadruple the size of his $12 million oceanfront manse in La Jolla. Romney has filed an application with the city to bulldoze his 3,009-square-foot, single-story home at 311 Dunemere Dr. and replace it with a two-story, 11,062-square-foot structure." (SIGN ON San Diego, 26 August) RD

CONSPICUOUS CONSUMPTION

Inside a capitalist society it is the norm for the poor to to try to survive from day to day whilst the wealthy indulge themselves with the best of everything. It is not enough for some of them though. Not content with the best food, clothing and shelter some of them like to indulge themselves with over-priced baubles just because they can. "A Porsche once owned by Hollywood legend Steve McQueen has been sold for a record-breaking $1.375 million. ...... The car appears in the prologue of the film (Le Mans) being driven through the French countryside by McQueen. According to RM Auctions, who handled the sale at its Monterey, California event on August 19th, it was the highest price ever paid for a Porsche 911. ....Nevertheless, it was far from a record for a car from the noted automobile enthusiast's extensive stable. In 2007, an ex-McQueen 1963 Ferrari 250 was sold for $2.3 million, nearly five times the amount of what similar cars were going for at the time." (FoxNews.com, 26 August) RD

A BILLION DOLLAR DEAL

The conflict in Lybia has proved to be very profitable for the British oil firm Vitol who have supplied fuel and associated products to the rebels and traded oil on their behalf. The deal is estimated to be worth about $1 billion. "The deal with Vitol was said to have been masterminded by Alan Duncan, the former oil trader turned junior minister, who has close business links to the oil firm and was previously a director of one of its subsidiaries. Mr Duncan's private office received funding from the head of Vitol before the general election. Ian Taylor, the company's chief executive and a friend of Mr Duncan, has given more than £200,000 to the Conservatives. Vitol is thought to be the only oil firm to have traded with the rebels during the Libyan conflict. Oil industry sources said that other firms including BP, Shell and Glencore had not been approached over the deal. One well-placed source said this was "very surprising" because other companies would have been keen to be involved." (Daily Telegraph, 1 September) Of course, the other firms are unhappy with the deal and questions are likely to be raised in parliament. The enquiries are likely to be about how political donors were given the business, but no one will query the accepted fact that war and military conflict is often an excellent business opportunity. RD

WARTIME ILLUSIONS

There are many illusions about the cause of World War Two. One of them is that it was a war about democracy. Nonsense. How come the Stalin dictatorship in Russia was supporting democracy? Another illusion was that it was about persecution because of Germany's treatment of the Jews, but Germany was not alone in persecuting the Jews. Even now over 60 years later there is plenty of examples of Jewish persecution in Eastern Europe. "Vandals have desecrated a monument marking the spot in Poland where hundreds of Jews were burned alive during World War II. They defaced the stonework, scrawling 'they were flammable' and also daubing a swastika on the memorial. The monument in the eastern town of Jedwabne honors the victims of July 10, 1941, when about 40 Poles hunted down Jews, closed them in a barn and set it alight. It is estimated between 300 and 400 Jews were killed." (Daily Mail, 1 September) If the second world war was fought to protect democracy or to stop persecution then it failed badly. The truth of course is that the war was fought, like all wars are, over trade routes, markets, sources of raw materials and spheres of economic and political influence. RD

poverty trap for kids

Poverty trap for children as fifth of Scottish families jobless. The number of under-16s living in households without adults in employment rose to 145,000 (15.8 per cent of under- 16s) this year from 141,000 (15.3 per cent) last year. In Scotland, there were 359,000 workless households in June.

Mr Peter Kelly, the director of the Glasgow-based Poverty Alliance, said that if people were going into part-time or low-paid work, their earnings would not be enough to make a huge difference to their lives. "Sometimes you have to question the extent to which giving someone a job can lift them out of the low-income bracket. We want to see people moving into jobs that lift them out of poverty."

THE COLD WAR HEATS UP

In a multinational race to seize the potential riches of the formerly icebound Arctic, being laid bare by global warming, Russia is an early claimant. "Within the next year, the Kremlin is expected to make its claim to the United Nations in a bold move to annex about 380,000 square miles of the internationally owned Arctic to Russian control. At stake is an estimated one-quarter of all the world's untapped hydrocarbon reserves, abundant fisheries, and a freshly opened route that will cut nearly a third off the shipping time from Asia to Europe. The global Arctic scramble kicked off in 2007 when Russian explorer Artur Chilingarov planted his country's flag beneath the North Pole. "The Arctic is Russian," he said. "Now we must prove the North Pole is an extension of the Russian landmass." (Christian Science Monitor, 14 August) It is typical of how capitalism operates that global warming should lead to a heating up of international rivalry over the potential profit-making in the Artic region. RD

DR. DOOM AND DR. MARX

You don't often hear of university professors praising Karl Marx or this business journal reporting it, but we must give credit where credit is due. "Economist Nouriel "Dr. Doom" Roubini, the New York University professor who four years ago accurately predicted the global financial crisis, said one of economist Karl Marx's critiques of capitalism is playing itself out in the current global financial crisis. ..."Karl Marx had it right," Roubini said in an interview with wsj.com. "At some point capitalism can self-destroy itself. That's because you can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working. What's individually rational ... is a self-destructive process." (International Business Times, 13 August) Being a university economic professor he couldn't get it all correct of course. Marx never claimed that capitalism would "self-destroy itself". That destruction can only come about by the political action of the working class. RD