THE US CLASS DIVIDE

The recent electoral activities in the USA have enraged Mitt Romney because of the issue of economic justice. "Break the news gently to Mitt Romney, who seems apoplectic that the whole "rich get richer, poor get poorer" thing is being discussed out loud. In front of the children, for goodness sake. "You know I think it's fine to talk about those things in quiet rooms," he told the Today show's Matt Lauer last week. "But the president has made this part of his campaign rally. Everywhere he goes we hear him talking about millionaires and billionaires and executives and Wall Street. It's a very envy-oriented, attack-oriented approach." (Washington Post, 16 January) Despite Komney's distaste the issue of the class divide in the USA won't go away RD

CHILD SLAVES OF CAPITALISM

Everyone loves chocolate. But for thousands of people, chocolate is the reason for their enslavement. The chocolate bar you snack on likely starts at a plant in a West African cocoa plantation, and often the people who harvest it are children. Many are slaves to a system that produces something almost all of us consume and enjoy. "The CNN Freedom Project sent correspondent David McKenzie into the heart of the Ivory Coast - the world's largest cocoa producer - to investigate what's happening to children working in the fields. His work has resulted in a shocking, eye-opening documentary showing that despite all the promises the global chocolate industry made a decade ago, much of the trade remains unchanged. There are still child slaves harvesting cocoa, even though some have never even tasted chocolate and some don't even know what the word "chocolate" means." (CNN, 12 January) RD

A CORRUPT SOCIETY

Capitalism is a corrupt society with contracts and sales often the subject of under the counter deals. The world of medical treatment is not exempt from this all-pervading practice. "To head off medical conflicts of interest, the Obama administration is poised to require drug companies to disclose the payments they make to doctors for research, consulting, speaking, travel and entertainment. Many researchers have found evidence that such payments can influence doctors' treatment decisions and contribute to higher costs by encouraging the use of more expensive drugs and medical devices. ..... Large numbers of doctors receive payments from drug and device companies every year, sometimes into the hundreds of thousands or millions of dollars,in exchange for providing advice and giving lectures." (New York Times, 16 January) Workers in the USA who imagine their medical treatment is untouched by the taint of monetary consideration should think again. RD

Who owns th North Pole - part 44

China, Brazil and India want seats on the Arctic Council as global warming creates new opportunities for shipping and resource extraction in the vast Arctic region. Japan and South Korea have indicated they want observer status as well. Non- Arctic countries want to exert economic and political influence in the region. China already has a research station in Norway's high Arctic.

http://ipsnews.net/news.asp?idnews=106455

workers shares - a share in losses

For Bank of Scotland and Royal Bank of Scotland workers, the chance to buy discounted shares in their employer seemed a no-lose deal. Schemes such as the Sharekicker plan at HBOS, which allowed employees to buy the bank’s shares with their bonuses and get 50 per cent more free shares after three years.

In December 2007, the HBOS share price was 741.5p. A year later, after its takeover by Lloyds, it had plunged by more than 90 per cent to 69p, giving thousands of employees who had taken up the Sharekicker plan not only their jobs to worry about, but their savings.

Many staff were confident of prosperity-laden future of their employer and invested much of their cash back into the very company they worked for. The tragedy is that when things went pear-shaped, many lost both their jobs and their savings.

The Deputy Prime Minister talked of a democratic share ownership culture. A lot of bank workers can be forgiven for feeling cynical towards Nick Clegg’s proposal for employees to have a universal right to ask for company shares.

How much say in the running of HBOS, RBS and Northern Rock did the thousands of employees who owned shares in those firms have? Not even 100 per cent take-up would give a workforce sufficient ownership to earn a voice loud enough to be heard. Groups of individual shareholders can’t come close to the ownership held by pension schemes and other institutional investors, who have been found badly wanting as far as accountability is concerned.

http://www.scotsman.com/scotland-on-sunday/business-opinion/comment/jeff_salway_bank_workers_know_pitfalls_of_share_perks_1_2070693

LAZY WORKERS

A popular piece of nonsense that the press are fond of spreading is that all Britain's economic woes arise out of the laziness of the working class. Recent research would seem to give the lie to that view. "Workers who spend long hours at the office are more than twice as likely to develop depression as those who do a standard day, according to a study. British researchers found those who spend more than 11 hours a day - or 55 hours a week - at their desk faced a higher risk." (Daily Mail, 26 January) An 11 hour day hardly seems like the ideal for the work-shy. RD

A SENSE OF VALUES?

Government ministers have extremely arduous tasks and from time to time they must make harsh decisions. Thus the education minister has set about the task of cutting expenditure on education and introducing higher university fees. However a sense of priorities must be applied to government expenditure. "The Queen should be given a new royal yacht - likely to cost at least £60m as a way to help overturn Britain's mood of austerity, according to Cabinet minister Michael Gove. The Education Secretary suggested that greater efforts should be made to celebrate the Queen's Diamond Jubilee this year to stop it being overshadowed by the Olympic Games." (Independent, 16 January) Cutting expenditure on working class education is one thing but Her Majesty needs a nice new means of transport. How is my knighthood doing by the way? RD

A DETESTABLE SOCIETY

There are many reasons to detest capitalism. You may detest that millions of children will die from the lack of clean water or your special hatred may be reserved for the millions of preventable deaths caused by malaria, but surely this piece of madness deserves a place in that catalogue of detestations. "For most dogs, a kennel used to comprise a few planks of wood held together with rusty nails to form a rather rudimentary shelter from the wind and rain. But now besotted owners are lavishing up to £3,000 on designer homes for their pets - from a Bauhaus-inspired cube-shaped structure to a pink castle complete with turrets." (Daily Mail, 14 January) A couple of pence for a mosquito net could save a life? Let's spend £3,000 on Rover's kennel. Detestable! RD

a drop o' the hard stuff?

Scotch whisky is now outperforming traditional investments, including the stock market and gold.

Figures from investment firm Whisky Highland show that some portfolios’ value has risen by almost 300 per cent in the last year. Three-year figures reveal that an investment in the 100 best-performing whiskies in 2008 would have risen by 163 per cent in 2011, while gold – which has soared due to the recession – rose 146 per cent. Diamonds rose by just 10 per cent, while shares and crude oil stock values fell.

Arthur Motley, buyer at Royal Mile Whiskies, said: “Collectors used to be interested in whisky as a drink and wanted a good bottle as part of their collection. Increasingly, people are buying as they see prices rising on eBay or at auctions. It is simply seen as an investment.”

David Robertson, Dalmore’s rare whiskies director, said: “People see whisky as an asset and with stocks and shares being so tough and interest from bank accounts so low, investors have been starting to look for other opportunities.”

The most expensive bottle of whisky so far is a bottle of limited-edition Dalmore, bought last year for £135,000

http://www.scotsman.com/news/scottish-news/edinburgh-east-fife/whisky_investors_cheered_by_rise_in_values_1_2084366

SCHOOLED FOR FAILURE

It is well known that the very rich take advantage of their wealth to ensure that their children obtain the best possible education. What is not as well known is how those from the poorest families are extremely handicapped by their lack of resources early on in their academic career. "The stark gap between the performance of disadvantaged pupils and their classmates from better off backgrounds is exposed in school league tables for the first time today. Figures show that only 33.9 per cent of disadvantaged pupils achieve the benchmark of five A* to C grade GCSE passes including maths and English compared to a national average of 58.2 per cent." (Independent, 26 January) Just another reason to get rid of the inequalities of capitalism. RD

NO LOG CABINS HERE

One of the illusions fostered by capitalism is that the poorest in the land can rise to a position of prominence by hard work. Thus we have the story of a USA President who came from humble beginnings in a log cabin. Recent figures published about Republican nominees for the highest office would seem to contradict that notion."Mitt Romney -Total net worth: $85 million to $264 million. Jon Huntsman - Total net worth: $16 million to $72 million. Newt Gingrich-Total net worth: $7 million to $31 million." (Yahoo Finance, 13 January) RD

A SLOW LEARNING PROCESS

One of the difficulties experienced by socialists when trying to convince their fellow workers about the importance of class and ownership is that the ideas of nationalism and racism are so prevalent. So it is heartening to see some evidence of social attitudes changing. "Conflict between rich and poor now eclipses racial strain and friction between immigrants and the native-born as the greatest source of tension in American society, according to a survey released Wednesday. About two-thirds of Americans now believe there are strong conflicts between rich and poor in the United States, a survey by the Pew Research Center found, a sign that the message of income inequality brandished by the Occupy Wall Street movement and pressed by Democrats may be seeping into the national consciousness. The share was the largest since 1992, and represented about a 50 percent increase from the 2009 survey, when immigration was seen as the greatest source of tension." (New York Times, 11 January) RD

MORE ELECTION PROMISES

Politicians love nothing better than making promises and the nearer they get to election time the greater the promises. "US President Barack Obama has attacked income inequality as he set the tone for his re-election bid in his third State of the Union speech. Mr Obama emphasised the importance of an economy that works for everyone, in the nationally televised address to Congress. The speech saw a renewed call for higher taxes on the wealthy, something Republicans strongly oppose. The US economy is on the mend, but unemployment remains high at 8.5%." (BBC News, 25 January) After a couple of years of Obama in power we still have 400 Americans with an income equal to that of the total income of half the population, but that does not stop him from going on about "an economy that works for everyone". RD

BEHIND THE GLITZ

We are constantly being told by the mass media that we should admire the enterprise and inventiveness of the great American computer and electronic companies, but behind all that glamorous facade lurks the ugly realities of capitalism. "As American consumers ogle over shiny new gadgets at this week's Consumer Electronic's Show, the workers that make those products are threatening mass suicide for the horrid working conditions at Foxconn. 300 employees who worked making the Xbox 360 stood at the edge of the factory building, about to jump, after their boss reneged on promised compensation, reports English news site Want China Times. It's not like this is the first time working conditions at Foxconn have made news outside China. But iPhone and Xbox sales surely haven't lagged in the wake of those revelations and neither Apple nor Microsoft has done much of anything to fix things." (Yahoo News, 10 January) Instead of the raise they requested, these Chinese workers were given the following ultimatum: quit with compensation, or keep their jobs with no pay increase. Most quit and never got the money. RD

CAPITALIST "PROGRESS"

For thousands of years tribes have lived in isolated parts of the Amazon jungle without contact with the so-called "civilised" world. Sometimes this contact turns out disastrously. "Loggers in Brazil captured an eight-year-old girl from one of the Amazon's last uncontacted tribes and burned her alive as part of a campaign to force the indigenous population from its land, reports claimed on Tuesday night. ... Luis Carlos Guajajaras, a local leader from a separate tribe, told a Brazilian news website that they tied to her a tree and set her alight as a warning to other natives, who live in a protected reserve in the north-eastern state of Maranhao . "She was from another tribe, they live deep in the jungle, and have no contact with the outside world. It would have been the first time she had ever seen white men. We heard that they laughed as they burned her to death," he said." (Daily Telegraph, 10 January) Capitalism, with its ceaseless drive for profits is always catastrophic for tribal society. RD

The New Vietnam Class War

When around 100 police and local officials came to seize their land outside the northern port city of Haiphong, the family of farmer Doan Van Vuon was ready and waiting, with shotguns in hand and improvised explosive devices planted in the ground. Six security officers were injured in the ensuing shoot-out on January 5, the culmination of a long-running land dispute between Mr Vuon and the local government. Foreign diplomats say that the government is concerned about the potential for such disputes to spiral out of control, at a time when it is facing other threats to social stability such as the record number of labour strikes and soaring food prices.

Jairo Acuña-Alfaro, a policy adviser on the United Nations Development Programme in Hanoi, says that disputes over land use rights were “perhaps the largest source of corruption nowadays in Vietnam”, with many Vietnamese complaining that local authorities often set compensation prices for land too low.

Following the path laid out by China, Vietnam embarked on its first steps toward a market economy in the late 1980s. In 1993, Vietnam allowed citizens to acquire “land use rights” but the state has retained official ownership of all land. As Vietnam’s economy boomed over the last decade, that ambiguity has led to an increase in the number of disputes over land between residents, on the one hand, and developers and local governments, on the other. The case echoes similar land disputes in neighbouring China. In December, a confrontation over land sales turned violent in the southern village Wukan after the local government sent in paramilitary troops to quell demonstrations.

http://www.ft.com/intl/cms/s/0/8625ddc6-4352-11e1-8489-00144feab49a.html#axzz1kXYAo7Ax

THE RISE OF INEQUALITY

It is often difficult to get up-to-date figures about ownership and incomes inside modern capitalism, but the BBC recently came up with some interesting data. "US presidential candidate Mitt Romney paid 13.9% tax on his multi-million dollar income - promoting a debate about tax levels among the "super rich". Meanwhile, protesters in the Occupy Wall Street movement claim they speak for the "99%" of Americans who stand in opposition to the one per cent who control the majority of the country's wealth. But how accurate are these figures? While developed countries have grown richer over the past 30 years, not everyone's pay packets are getting bigger at the same rate. Income inequality is on the rise in most developed countries, according to the Organisation for Economic Co-operation and Development (OECD). In the United States, the 400 richest individuals earn roughly the same as the bottom 50% of the population. About one third of the world's 100 richest people live in the US." (BBC News, 24 January) It seems indisputable that inequalities in ownership and income are on the increase. RD

DOWN-MARKET SHOPPING

Workers are being advised to tighten their belts because of the recent economic downturn, but even the capitalist class are feeling the pinch. "ROLLS ROYCE sold 3,538 cars in 2011 - a new record for the BMW-owned luxury marque. And with Volkswagen-owned Bentley reporting pre-recession levels of 7,003 cars sold last year, the luxury car market as a whole appears to be in rude health. .... According to BBC News, the increase in sales is in the main due to Rolls Royce's "smaller and less ostentatious" Ghost model, which costs a mere £165,000 compared to the £235,000 Phantom." (The Week, 9 January) The owning class are tightening their belts - the safety belts on their "mere £165,000" Ghost models. RD

Dance of the Apprentices

All pupils taking Higher English will have to learn at least one Scottish text under a new requirement by the Holyrood Government to ensure future generations of Scottish young people grow up with an understanding of their culture and literary heritage.

This blogger for Socialist Courier recommends that school students read "Dance of the Apprentices" - a socialist classic some say.

The novel gives a vivid account of the struggles of a Glasgow family from the first World War and into the Depression are at the end of the twenties. It is a story of Glasgow apprentices, their lives dignified with a desire for art and learning and with the ideal of reforming the world. The book follows the fortunes of one particular family - the Macdonnels. The mother dreams of success, struggling to raise her family and her ambitious husband out of slum life. A social critique of Glasgow.

Written by Edward Gaitens (1897 – 1966) who was born in the Gorbals of Glasgow. Leaving school at fourteen, he undertook a variety of casual jobs to support himself over the years. When the First World War broke out he became a conscientious objector and was imprisoned for two years in Wormwood Scrubs.

Feel free to share your own Scottish reading-list suggestions in comments.

Independence for Shetland !!!

In the 14th century Shetland was still a Norwegian province. The Norn language, a form of Old Norse, continued to be spoken until the 18th century when it was replaced by an insular dialect of Scots known as Shetlandic, which is in turn is now being replaced by Scottish English. Udal law is a Norse derived legal system, which is found in Shetland. Scottish Courts have intermittently acknowledged the supremacy of Udal law in property cases up to the present day. Major differences from Scots law include shore ownership rights, important for pipelines and cables. It declares that the Shetland community owns the Sea and Seabed. The Crown Estate has had to admit the supremacy of Udal Law (and unlike the rest of the UK, swans are not legally the British Queen's property in Shetland.)

In 1468 Shetland was pledged by Christian I, in his capacity as King of Norway, as security against the payment of the dowry of his daughter Margaret, betrothed to James III of Scotland. As the money was never paid, the connection with the crown of Scotland has become perpetual. Christian had secured a clause in the contract which gave future kings of Norway the right to redeem the islands for a fixed sum of 210 kg of gold or 2,310 kg of silver. Several attempts were made during the 17th and 18th centuries to redeem the islands, without success.

After the islands were transferred to Scotland, thousands of Scots families emigrated to Shetland in the 16th and 17th centuries but studies of the genetic makeup of the islands' population indicate that Shetlanders are just under half Scandinavian in origin

From the early 15th century on the Shetlanders sold their goods through the Hanseatic League of German merchantmen. The Hansa would buy shiploads of salted fish, wool and butter and import salt, cloth, beer and other goods. The trade with the North German towns lasted until the 1707 Act of Union when high salt duties prohibited the German merchants from trading with Shetland. Shetland then went into an economic depression. By the late 19th century 90% of all Shetland was owned by just 32 people. The Crofters' Act in 1886 emancipated crofters from the rule of the landlords and enabled those who had effectively been landowners' serfs to become owner-occupiers of their own small farms.

The East Shetland Basin is one of Europe's largest oil fields. The extracted oil is sent to Sullom Voe, the leading oil export harbour in the UK, producing approximately 25 million tons of processed crude per year and 23 per cent of Scotland’s North Sea Oil revenues. Furthermore, scientists have that up to five billion barrels of oil could be found in unexplored volcanic rocks to the west of Shetland.

As a result of the oil revenue and those cultural links with Norway, a small independence movement developed. It saw as its model the Isle of Man, as well as Shetland's closest neighbour, the Faroe Islands, an autonomous dependency of Denmark.

In 2008 the Shetland Chief Sandy Cluness called for autonomy from Scotland for its 22,000 population. Cluness, the figurehead of the Shetland Islands council, who has no political party affiliation, advocates an independent Shetland assembly with tax-raising powers. Cluness believes that the Shetland council has been hindered by government centralisation and has called for a wide range of services including transport, policing, coastal protection, in-shore fisheries, further education and the arts to be administered from the capital Lerwick, rather than from Edinburgh. In the 1978 devolution vote the Shetland Isles voted against devolution .The general feeling was if we are not to be governed by Westminster, as part of the United Kingdom, then we would rather be on our own than governed by Edinburgh.

It has highlighted the weakness in the independent Scotland argument - if Scotland can gain its independence from the UK what is to prevent Shetland (which is closer to Oslo than Edinburgh) seeking its independence from Scotland, too. If Scotland does become independent again, then is it prepared to surrender a "cash cow" if Shetlanders chose to go it alone? Would an independent Scotland say to a breakaway Shetland "fair enough then, off you go and the oil is yours"?

"Born in iniquity and conceived in sin, the spirit of nationalism has never ceased to bend human institutions to the service of dissension and distress"