THIS IS PROGRESS?

Recent reports on income distribution paint a gloomy picture for those who imagine that modern society is making tremendous progress.
"The distribution of wealth lies at the heart of political economics. Nations and empires have risen and fallen, and millions have died, as a result of humanity’s struggle to decide how (or whether) to divide wealth. But for all that, the level of wealth inequality has remained remarkably consistent over the last 2,000 years, according to a recent study by Branko Milanovic, a researcher with the World Bank, and two economics professors, Peter H. Lindert of the University of California, Davis, and Jeffrey G. Williamson of Harvard University (economics.harvard.edu.) While “human civilization has advanced by leaps and bounds over the past two millennia, income inequality has stayed relatively the same,” Zubin Jelveh of Portfoloio.com wrote about the study." (New York Times, 1 December) RD

LABOURING UNDER LABOUR

For many years we have been told by apologists of capitalism that the lot of working men and women was gradually improving. One of the illusions that we were fed was that with improvements in capitalism the working week would be dramatically cut and the big problem of the future would be what to do with all our new-found leisure. Like many other promises of capitalism this has proven to be false.
"A culture of working long hours is on the rise once more in the UK after a decade of gradual decline, according to figures today. More than one in eight of the British workforce , now work more than 48 hours a week, the maximum allowed under the law unless workers agree to waive that limit. The proportion rises to one in six in London. The figures highlighted by the TUC and extracted from the latest Labour Force Survey, prompted warnings from campaigners that children and family life risk being squeezed further. The UK's working hours are among the longest in Europe. But there has been a steady if slow fall in long-hours working since 1997. The latest figures reverse that trend for the first time under the Labour government, with 93,000 more people now working more than 48 hours a week compared with 2006, taking the total to almost three and a quarter million (3,242,000). The increase represents a rise from 12.8% to 13.1% of the workforce." (Guardian, 28 November) RD

PANAMANIAN PARADOX

No matter where in the world you look the contrast between extreme wealth and extreme poverty is obvious. In a booming Panama the story is the same as it is all over the capitalist world.
"These are heady days for tiny Panama. It is undertaking a massive expansion of the Panama Canal, luring billions of dollars in maritime and high-tech investment that could make it the Hong Kong of the Americas. But here's the other side: in the past few months, scores of toddlers have died of malnutrition in villages around the country. More than half of Panamanian children under 5 are at risk of suffering the same fate." (Time, 2 November) RD

FORESTS VERSUS FORTUNES

This dreadful report from Honduras shows what capitalism's priorities are.
"The blunt economic truth is clear: deforestation can never be stopped as long as trees are worth more dead than alive. The two environmentalists never stood a chance. As they drove into the small Honduran town of Guarizama on 20 December last year, armed men forced Heraldo Zúñiga and Roger Iván Cartagena to the side of the road, dragged them from their car, stood them against a wall next to the municipal building in full view of passers-by, and shot them. Although at least 40 shots were fired, Zúñiga survived long enough to denounce those who had hired the assassins - the timber barons who are making a fortune by razing the region's pine forests and exporting wood to the United States. ..Now, after a long campaign, the Environmental Investigation Agency is supporting a rare bipartisan legislative effort in the US Congress to choke off domestic demand for imported illegal wood products. Promoted by Republicans and Democrats alike, as well as by an unusual coalition of environmental and industry groups, the Legal Timber Protection Act would make it a crime to import or sell illegally sourced timber. The EU is also on the way to similar legislation. Despite these positive moves, however, the blunt economic truth is clear: deforestation can never be stopped as long as trees are worth more dead than alive." (New Statesman, 22 November) RD

DEATH IN A HARSH SOCIETY

The latest figures on deaths in winter make for harsh reading and illustrate the fate awaiting many British workers when they are unable to work anymore. "More than 23,000 people died of cold last winter despite it being one of the mildest recorded, according to the Office for National Statistics. Of these deaths, 19,200 were among those aged 75 and over. Charities called it a "national scandal" and gave warning of more deaths this winter because of higher fuel prices and colder temperatures." (Times, 29 November) RD

The Super-Star Super-Rich

A report by the BBC on those super rich super-stars .

England captain Bobby Moore lifted the World Cup in 1966 he earned £100 a week. Today's England captain, John Terry, holds the same position, but reportedly earns over £130,000 a week. David Beckham earned over £11 million from endorsements alone last year.

Then there are humble cooks like Gordon Ramsay , wealth of nearly £70 million , James Oliver , almost £60 million .

Superstars are boosting the luxury goods market, with worldwide sales in the sector topping £75 billion last year. Its all Aston Martins and private jets .

Naturally , the apologists of this insane distribution of riches claim that there are the benefits of the "trickle-down effect " but other commentators are more observant .

"Although these are people who will clearly have significant interests here in the UK and invest here in the UK, they're also looking to place their money around the world," said Mr Charrington , head of Citi's UK private banking arm , adding that the super-rich are looking for opportunities in China, India and Latin America "whether that be in private equity or hedge fund businesses. "

The BBC Money Programme produced a few interesting facts . 1% of the British population controls nearly 25% of the wealth. The top 10% in the UK having nearly 7 times the disposable income of the bottom 10%, up from only 3 times in the mid 1970s.( In the US, for example, 1% of the population control almost 40% of wealth and 20% of income.)

The lowering of the top rate of UK income tax from 98% to 40% in that time, with businessmen and women now able to turn income into capital gains paying a special low rate of 10%, has also widened the gap between after tax pay of high and low earners. For many foreign-born super stars, London is a tax haven, with non-domicile status meaning that they don’t have to pay UK tax at all – apart from council tax.

Workers Have No Country

From the editorial of December's Socialist Standard

Whether Polish plumbers, Portuguese hop-pickers or Chinese cockle-pickers, migrant labour in the UK is undoubtedly higher profile now than it has been for many decades. The focus groups and private polling used by the major parties are confirming immigration as the No 1 issue for voters at the moment.

In some parts of the UK the influx may well have resulted in increased unemployment for existing workers and appears to be putting a downward pressure on wages in some sectors.

It’s worth noting that there has been an enormous effort made to vilify, criminalise and erase racist language and ideas over the last few decades. World socialists have not opposed these developments but we have argued that racism – like other the so-called "hate" crimes – is usually fuelled and ignited by poverty and fear, and therefore cannot be removed until the cause is.

For workers fighting over crumbs in lower wage unskilled jobs, the temptation to blame your unemployment or wage level on foreign labour may be strong. But nevertheless such views are false. The blame lies elsewhere. In order to stay profitable, UK employers are demanding cheap labour. It makes good business sense to welcome cheap labour from overseas – you didn't have to pay for its education, and after you have exploited it for a lifetime, you still won’t have to pay its pension.

In many ways the government is only repeating at the national level what has been happening at employer level for many years with out-sourcing of staffing costs.

And while the free movement of labour is restricted, capital is of course expected to roam the globe looking out for ever better rates of exploitation, sniffing around the sweatshops for signs of harsher working conditions or longer hours. But if these chickens come home to roost – if little pockets of the third world's poor actually have the gumption or bravery to start popping up on our doorstep – then our local administrators of capitalism start to get a bit edgy.

As with so many issues, politicians are slowly realising that governments must simply accommodate to capitalism with regard to migration and accept it. They can only try to control it but if they are to have any hope of effectively securing borders and finding those who slip through they must expend vast sums as on ID cards and the like.

The World Socialist Movement didn't get its name for nothing. Unique amongst all political parties left and right we have no national axe to grind. We side with no particular state, no government, no currency. We have no time for nationalisation or privatisation, for border controls or for migration incentives. The world over, workers must do what they can individually and collectively to survive and resist capitalism. In many parts of the world that means escaping the tyranny of political terror or economic poverty. Politically however, workers should try and resist taking sides in the battles of the economic blocs who just happen to be named on the front of your passport. You must not blame another worker for your poverty. Instead we would argue that workers should recognise that – whether migrant or not, whether illegal or legal.

See also National Nonsense

"... socialists must oppose nationalism in all its forms: not just refusing to espouse their creed, but defying the rituals, the anthem signing, flag saluting and other expressions of craven loyalty to the nation-state, that help enforce the idea of nation in our minds."

Long Live The Workers - NOT

Men in routine jobs, such as bus drivers and refuse collectors, are more likely to die early figures show. The Office for National Statistics data showed routine workers were nearly 3 times more likely to die by the age of 64 than high-level managers. After the routine workers, semi-routine staff, including postmen and security guards, were most likely to die early.

The average 65-year-old man in Glasgow could expect to live a further 13.8 years, the lowest life expectancy in Britain.

"Those in better paid, more prestigious jobs are less likely to suffer violence, behave differently, are treated better and value their work more."

The report said the most disadvantaged were more likely to live in poor housing, be exposed to environmental pollution and occupational hazards, have a poor diet and smoke. Conditions at work also play a part with career prospects, control over work and performance-related bonuses associated with better health and longer life.

This latest research just confirms previously that we have featured here on Socialist Courier

The report said: "Generally, the literature suggests that occupations with greater autonomy and control experience better health."

Price Fixers

Capitalism is all about competition , right ? Wrong , if these stories are to go by .

Four of the world's biggest glass manufacturers have been fined a total of £348.2million for illegally co-ordinating price rises. The firms are Guardian of the US, Pilkington, which is the UK unit of Nippon Sheet Glass, Saint-Gobain of France and Belgium's Glaverbel. The European Commission said the firms had raised or stabilised prices in 2004 and 2005 through illicit contacts.

Between them they control 80% of Europe's market for flat glass. Flat glass is used in products such as windows, glass doors and mirrors.

Then there was this in Canada too

Regulators have launched an investigation into allegations of price-fixing by some of the biggest makers of chocolate bars in Canada. Officials from the Canadian divisions of Nestle, Cadbury, Hershey and Mars confirmed the probe is underway.

"We can confirm that we are investigating alleged anticompetitive practices in the chocolate confectionery industry," said the Competition Bureau's John Pecman. "The volume of commerce affected here is definitely potentially in the billions of dollars per year."

And there was this in Australia , as well .

Australian airline Qantas has been fined US$61 million in the United States after it admitted price-rigging freight costs between Australia and the United States. Qantas plead guilty for its role in a price-fixing conspiracy and is the third airline to admit to wrongdoing after British Airways and Korean Air Lines in August pleaded guilty to similar charges.British Airways and Korea Air Lines were each ordered to pay fines of US$300 million for their roles in passenger and freight price fixing conspiracies. The charges say that Qantas participated in meetings, conversations and communications in the US and elsewhere to fix cargo rates on trans-Pacific routes.During the period the breaches occurred Qantas was the biggest cargo carrier between Australia and the US, earning more than $US600 million from trans-Pacific freight.

And another in the USA

A class-action lawsuit was filed against six monitor manufacturers on Tuesday, alleging the companies of being a "global cartel" involved in price-fixing of CRT monitors. The prices of CRT monitors should have fallen as technologically superior products were introduced such as LCD monitors . Instead, for almost a decade, we have seen periods of unnatural and sustained price stability, as well as inexplicable increases in the prices of CRTs . The complaint alleges collusive behavior by the manufacturers, causing the plaintiff and direct purchasers to overpay for CRT monitors.

Yet again , in Australia

Teac is the latest local company successfully prosecuted for price fixing by the Australian Competition and Consumer Commission (ACCC) after investigations into Topfield set top boxes and Optima computers.The ACCC recently convicted another set top box manufacturer, Topfield, of similar price-fixing charges and fined the company $297,500. The owner of the brand's Australian distributor, Jai Kemp, was also personally fined over $17,000 for his involvement in the misdemeanor.Optima Computers was also prosecuted by the ACCC in December last year for resale price maintenance.According to the Current.com.au report, products sold through The Good Guys, Retravision and Leading Edge were investigated after a complaint was made to the ACCC about alleged resale price maintenance. Optima admitted it had told two of its dealers they should top discounting and raise their prices for Optima computers to Optima's recommended retail prices. The dealers were threatened with having the supply of Optima products withheld or their dealership cancelled.

And in South Africa

Bread is a basic commodity. The anti-competitive practices involving a basic commodity like bread disproportionately affects the poor. On November 12, Tiger Brands was ordered to pay a R98,7-million fine by the Competition Commission after admitting to participating in bread and milling cartels.

In France kids suffered when French trading standards office DGCCRF has called for 10 retailers and 6 manufacturers in the toy market to be fined over price-fixing. The companies under investigation include Carrefour, France's largest retail group, and Danish toy maker Lego.

Just a brief google search has produced the above recent scams . Need we go on ?

MONEY MADNESS

If the idea of world socialism could be summed up in one phrase it would probably be "a world without money". So the following news item seems particularly crazy. "An anonymous buyer has paid more than $30 million for a collection of rare U.S. prototype coins, some from the 1700s, that never went into circulation, according to the dealer that brokered the deal. The collection consists of about 1,000 coins that collectors refer to as pattern coins — trial designs that never went into production because the U.S. Mint chose other designs. "This collection is an incredible collection. ... These were some of the first coins ever, ever struck by the United States government," said Laura Sperber, a partner in Legend Numismatics of Lincroft, N.J., which brokered the deal. ... "Both the buyer and the seller are very competitive people. And they're very successful in their careers, and they both love the romance and collectability of coins," Sperber said." (Yahoo News, 17 November)
What Laura is really saying is that two members of the capitalist class are so rich they don't know what do with their money except collect useless things. RD

THE GLORIES OF WAR

We are all aware of the Hollywood movies about the nobility of heroism, but here is a blast of reality to question that nonsense. "The psychotherapist remembers the strapping young soldier, slouched in a chair in her office one morning last month, asking if God could be punishing him because he had once thought it would be exciting to fight in a war. By then, the soldier, Sgt. Brad Gaskins, had been absent without leave for 14 months from his post at Fort Drum in northern New York State, waging a lonely battle against an enemy inside his head — memories of death and destruction that he said had besieged him since February 2006, when he returned from a second tour of combat in Iraq. “I asked Sergeant Gaskins whether he thought about death,” the psychotherapist, Rosemary Masters, said in an interview on Thursday. “He said that death seemed like a good alternative to the way he was existing.” (New York Times, 18 November) It is hardly John Wayne material is it? RD

EVEN THE RICH GET RIPPED

"A Manhattan restaurant that unveiled a record-breaking $25,000 dessert last week has been forced to shut its doors temporarily due to an infestation of mice and cockroaches. Serendipity 3 on the Upper East Side failed its second consecutive health inspection in a month on Wednesday night after health officials found a live mouse, mouse droppings in multiple places, flies and dozens of live cockroaches, the Heath Department said. "We're rectifying it as quickly as we can," said owner Steven Bruce, adding the restaurant would then be allowed to reopen. Serendipity 3 set a Guinness world record on November 7 for the most expensive dessert when it partnered with luxury jeweller Euphoria New York to create "Frozen Haute Chocolate," a blend of 28 cocoas fused with 0.2 ounces of edible 23-karat gold."£ (Yahoo News, 16 November)
Mice and cockroaches can shit on the owning class, why don't we? RD

The Credit Crunch

Further to the previous post this news item perhaps explains the reason why many workers find it necessary to work long hours .

Around one in three mortgage customers face higher repayment rates and difficulty in borrowing more on their homes in the light of the recent credit crunch.Lenders have become increasingly cautious following the problems in the credit markets, and as a result many home- owners will be offered less favourable terms if they want to remortgage their homes. More people than ever are set to fall into the sub-prime category as a result of missed debt repayments, meaning that borrowing will now be put out of reach for many.

Mintel market analysts , estimates that around 9% of the UK's 16.5 million mortgage holders will now be considered sub-prime by lenders. It also forecasts that a further 24% could also be considered a high risk because of their personal circumstances, such as being self-employed or not having a regular income, or because they had moved frequently or fallen behind with household bills. Those coming off fixed-rate deals taken out before the recent interest rate rises will be particularly hard-hit and that many people may not be able to absorb these increases and millions of people could start to suffer financially.

Other research released yesterday, from web credit specialists uSwitch.com, claimed that one in four people are now struggling with unmanageable debts and 12% admit they have missed repayments during the past six months. Around 23% of people say their current level of borrowing either borders on being unmanageable or is no longer manageable. The group said 12% of people also admitted they have missed payments on debts or bills during the past six months and 10% have had a payment bounced by their bank because they had insufficient funds in their account. 38% of people applying for new credit were turned down with 19% of personal loan applications rejected.

One in 10 people claim they are now trapped in a vicious cycle of debt where they may need to get further into debt just to meet their existing financial obligations, and 13% may have to turn to credit just to meet their living costs. At the same time, one in five consumers say they have maxed out at least one of their sources of credit, with 11% going up to their spending limit on a credit card and 10% doing the same on an overdraft.

23% of people are now more worried about money than they were a year ago and 18% are more worried about debt.At the same time 34% say they are feeling financially worse off and more than half of people do not think it is a good time to make a life-changing decision such as buying a home, having a baby or changing jobs.

The average person now sees half of their take-home pay eaten up by debt repayments, with 35% going on their mortgage and 18% spent on unsecured debts.

Is it no wonder that many now try to earn more by working more - just to pay off debts

Working Hours Get Longer

People are working longer hours, reversing a 10-year trend of a cut in the working week, a report suggests. More than one in eight people now work more than 48 hours a week, rising to one in six in London, the TUC said.

An analysis of official figures revealed that 3.2 million people were now working more than 48 hours a week - more than 13% of the workforce. Official figures underestimate long hours because they are unlikely to include migrant workers or people who live at their place of work, such as hotel or care staff.

According to the study, the biggest rise in the number of people working a 48-hour week was in the south-east of England and London, with 16% of staff in the capital now working long hours.

Of course , the lick spittles of capitalism have their own spin on this trend to work longer - according to the government minister for Employment Relations research has shown that seven out of ten long-hours workers would not want a cut in hours if it meant a cut in pay and that in the UK, people have the choice to refuse to work long hours if they don't want to and the flexibility to work longer hours and earn overtime if they wish . This is rather similar to the fox-hunting fraternity's pronouncement that “The fox enjoys the hunt.”

See "All This Hard Graft No Longer Makes Sense"

Malnutrition in the UK

A quarter of all adults admitted to hospital and care homes in the UK are at risk of malnutrition, a major survey has found.

The survey found that it was not just older patients who were at risk of malnutrition.
Patients under the age of 30 had a 27% risk of malnutrition, compared with a 34% for those over 80. Malnourished people stay in hospital longer, succumb to infection more often and visit their GP more frequently. They also require longer-term care and more intensive nursing care.

Professor Marinos Elia said: "This finding establishes - if there was any doubt - that malnutrition is a major public health issue in the community that must be addressed both at source and when individuals are admitted into care."

Wage Slavery

Anti-racism protestors have marched through Glasgow to mark the 200th anniversary of the abolition of the transatlantic slave trade.The St Andrew's Day Anti-Racism March, organised by the Scottish Trades Union Congress, will remember the anniversary of the act to abolish the trade. First Minister Alex Salmond has given his support to the rally.Yet we know there still exists to-day another type of slavery - wage slavery

JUSTIFED KILLING?

We live in a dreadful society and we obviously need a new one that would never use phrases like "justified killing". Let us all cooperate to get rid of capitalism's killing fields, and make the following news item impossible.
"Federal agents investigating the Sept. 16 episode in which Blackwater security personnel shot and killed 17 Iraqi civilians have found that at least 14 of the shootings were unjustified and violated deadly-force rules in effect for security contractors in Iraq, according to civilian and military officials briefed on the case. The F.B.I investigation into the shootings in Baghdad is still under way, but the findings, which indicate that the company’s employees recklessly used lethal force, are already under review by the Justice Department. Prosecutors have yet to decide whether to seek indictments, and some officials have expressed pessimism that adequate criminal laws exist to enable them to charge any Blackwater employee with criminal wrongdoing. Spokesmen for the Justice Department and the F.B.I. declined to discuss the matter. (New York Times, 14 November)
If you kill someone it is called murder, if your masters tell you to kill someone it is justifiable. Lets hope the Justice Department and the FBI come up with a conclusion that says all killing of human beings is unjustified. Don't hold your breath for that one. RD

NEW YORK, NEW YORK

If the United States is the embodiment of capitalism, then New York must be the jewel in its crown. A modern technologically advanced city it is forever being revered as the epitome of modernity, but there is another side to capitalism as revealed in this news item.
"Over 1.3 million people, one in six New Yorkers, cannot afford enough food, with queues at soup kitchens getting longer, anti-poverty groups say. The New York City Coalition Against Hunger says the number of people who use food pantries and soup kitchens in the city increased by 20% in 2007. Some of the food distribution points are struggling to meet demand. The coalition blames the situation mainly on increased poverty as well as government cutbacks in food aid." (BBC News, 21 November) RD

THE WASTEFUL SOCIETY

It is difficult to assess just how wasteful the society capitalism is but a recent estimate of the US government's military expenditure in the Middle East gives some idea of the astronomical waste involved.
"The economic costs of the wars in Iraq and Afghanistan are estimated to total $1.6 trillion — roughly double the amount the White House has requested thus far, according to a new report by Democrats on Congress' Joint Economic Committee. The report, released Tuesday, attempted to put a price tag on the two conflicts, including "hidden" costs such as interest payments on the money borrowed to pay for the wars, lost investment, the expense of long-term health care for injured veterans and the cost of oil market disruptions. The $1.6 trillion figure, for the period from 2002 to 2008, translates into a cost of $20,900 for a family of four, the report said. The Bush administration has requested $804 billion for the Iraq and Afghanistan wars combined, the report stated. For the Iraq war only, total economic costs were estimated at $1.3 trillion for the period from 2002 to 2008. That would cost a family of four $16,500, the report said. Future economic costs would be even greater. The report estimated that both wars would cost $3.5 trillion between 2003 and 2017. Under that scenario, it would cost a family of four $46,400, the report said." (Yahoo News, 13 November) RD

Reforming Child Poverty

Child poverty in Scotland once again is in the news .

A charity has launched a campaign aimed at eradicating child poverty in Scotland. Save the Children said almost one in every 10 children in Scotland was living in "severe poverty" and that the problem was a "national disgrace "

Save the Children classes the worst deprivation as that which forces families to live on £19 a day, after paying housing costs. Previous research by Save the Children revealed that 90,000 children in Scotland live in severe poverty.

"Parents are being forced to make impossible decisions between such basic provisions as providing an adequate meal or putting on the heating..." said Save the Children's programme director for Scotland .

Yet , as always and as before , the solutions offered by the charity are aimed at only alleviating child poverty through tinkering with the system - more government money (£4 billion) , helping parents back to work, and a new scheme to give poorer families seasonal grants of £100 for each child in summer and winter - remedies that Socialist Courier place no hope in .

"The palliatives over which many worthy people are busying themselves now are useless because they are but unorganised partial revolts against a vast, wide-spreading, grasping organisation which will, with the unconscious instinct of a plant, meet every attempt at bettering the conditions of the people with an attack on a fresh side. " - William Morris .

We have seen many times how after all of the reforms obtained by "worthy" reformers who sought welfare aid for workers, the system simply creates new dimensions of poverty which undermine whatever apparent progress the reformers made. Capitalism as a social system cannot be humanised by reforms .