In the red, Whyte and blue

A "large number" of players at struggling football club Rangers have agreed pay cuts of between 25% to 75% to save the jobs of non-playing staff, administrators have said. It is understood senior players like captain Steven Davis and Scotland internationals Allan McGregor, Steven Naismith and Steven Whittaker have accepted the largest wage cuts.

In a statement, joint administrator Paul Clark said: “The agreement on very substantial wage reductions and voluntary departures from the club represents a major sacrifice by the Rangers players."

Socialist Courier takes this opportunity to clarify why footballers earn so much.

Footballers at least start from the same position as the rest of us: not owning any wealth from which to obtain an unearned income, to obtain what they need to live they have to go out on to the labour market and offer their mental and physical energies for sale. Most professional footballers, working for clubs in the lower divisions or for non-league clubs, never earn anything more than the average worker.

But some, those who play for the top clubs, are paid fabulous amounts of money, by working class standards. What is their income? Is it wages? Not really. It’s more like rent. Rent is paid whenever there is a natural monopoly in something that cannot be increased, normally land, mineral deposits and other natural features that can be employed in production. The rent of land and natural resources is essentially fixed by the paying demand for it. The higher the demand, the higher the rent.

As Arsène Wenger pointed out, “you normally need special qualities to be a strong footballer”. It is these “special qualities – which are a sort of natural resource that cannot be increased – that enable the best footballers to command so high an income, but as rent rather than as the price for the mere sale of their labour power. Their income is so high because the demand for their talents is so high.

MORE BANGS FOR YOUR BUCKS

While more and more manufacturers find it difficult to increase sales of their products there is one branch of manufacture that is experiencing a boom. "Sales of weapons and services by the world's biggest arms companies have continued to rise during the downturn and now exceed $400bn (£250bn), a leading independent research body has reported. Though the increase has slowed, just 1% year-on-year in 2010, the rise in sales has been 60% in real terms since 2002, figures released by the Stockholm International Peace Research Institute (Sipri) showed. The total sales, including military services, of the top 100 arms companies, reached $ 411.1bn (£257.6bn) in 2010, Sipri said." (Guardian, 29 February) It is difficult at present to make profitable the sale of food, clothing, shelter and medicines but selling weapons of destruction has never been easier. That is capitalism for you! RD

Rangers Blues

The woes of Rangers grows by the day. The insolvency firm Duff and Phelps have set a 48-hour deadline over the sale of the club after cost-cutting talks involving slashing players' salaries to prevent redundancies broke down and are already considering the possibility of liquidation if they cannot reach a deal. They also said Rangers may not be able to fulfil their remaining SPL fixtures without the promise of new income or drastic measures to reduce costs while also confirming Rangers had no chance of competing in Europe next season as they would not be able to submit fully audited accounts by a March 31 deadline. .

Asked if Rangers was in a state to be sold, an administrators source admitted: "There's an awful lot still to be resolved. It is all about who owns what. It doesn't matter whether you are selling a house, or a football club, or a company, you have to know what you're buying."

Scottish Football Association chief executive Stewart Regan has described the prospect of Rangers going into liquidation as "a disaster...[and] the news that the club is running out of cash and may be unable to fulfil their fixtures is the final piece of news that will send Rangers fans into despair."

The popularity of football inside capitalism made it an activity much adored by workers often too unfit to play it themselves, but keen to follow the efforts of their local sporting heroes. With the development of capitalism football has just become another business opportunity. Its development more likely to be followed by financial journalists rather than football ones. Football used to be about watching the match, buying a greasy pie and a cup of bovril. But now stadiums are like shopping malls. It is a truism - if not a cliché - that football today is big business.

Every activity that capitalism touches it turns into commodities.

As Rangers football club ails, vultures circle. In a society where common and shared identity count for little when there is a quick buck to be made, it can be no surprise that football has become infested by the sort of parasites whose idea of of a pastime is making money, especially at other people's expense. The market economy creates the conditions in which they can prosper and seize control of assets that communities often mistakenly think are theirs already.

It is time to take the money out of football altogether. And that means abolishing money in all other areas of life.

We live in a world of inequality. That is a natural consequence of the workings of capitalism. Socialists want a world of equality where everybody would have an equal say in the way things are run including our local sporting associations and where there would still be football, but no bankers or stockbrokers dealing in a football club's future, that being determined solely by the players skills on the field.

CONSPICUOUS CONSUMPTION

The press have recently made great play of how a rich woman, former beauty queen Kirsty Bertarelli and her husband Swiss-Italian pharmaceutical tycoon Ernesto Bertarelli have purchased a yacht for £100 million. "Britain's richest woman may have set a new benchmark in floating status symbols with a new boat that costs £250,000 just to fill up with fuel." (Metro, 5 March) The yacht is 315 foot long - an improvement on their old 154 foot one, but it is dwarfed by Roman Abramovich's 538 foot yacht. Such reports of conspicuous consumption are circulating at a time while millions of people are starving. RD

Safe Motoring

Scottish towns and cities had the worst rates for major MoT failures in the UK last year, figures have shown. Motoring groups expressed alarm at the news, which they said suggested there were more unsafe cars on Scottish roads than elsewhere.

Dundee topped the test table for “major failures”, with 15.3 per cent of vehicles not getting an MoT certificate

Halfords Autocentres said the cost of repairs following failed tests had nearly doubled to an average of £143 compared with £82 some 18 months ago. The firm said that added up to a total bill of £1.44 billion for motorists. A survey found nearly a quarter of drivers just “keep their fingers crossed” and hope their car will pass.

Edmund King, president of the Automobile Association said: “It is of concern that a higher proportion of cars in Scotland are failing the MoT as this indicates that there are more unsafe cars on the roads in Scotland.” He said: “We have also found that 10 per cent of drivers are cutting back on servicing their cars as a result of record fuel prices at the pumps. This means that many safety faults will only be picked up at the annual test.”

Neil Greig, the Scotland-based policy and research director of the Institute of Advanced Motorists, said: “However, the garage trade as a whole has a poor reputation...Until drivers can be confident they are not being ripped off, many will continue to worry the MoT is a sales opportunity rather than a safety check.”

http://www.scotsman.com/news/transport/mot-failures-show-scotland-has-most-unsafe-cars-in-uk-1-2159169

Food for thought

The way of capitalism -- Resilient Technologies of Wassau, Wisconsin, have produced, after five years work, an automobile tire that won't go flat. Great, does that mean savings for all, less social labour expended? Not likely, it was developed for army humvees to transport troops and their necessities for war!
When the Honeywell plant closed in Scarborough, 250 people, many of whom had worked there for decades, were unemployed. That was through the early months of last year. Only 18 have found work. Most are chasing jobs that pay about half the $20 an hour, plus benefits,  that they earned on the assembly line. An all too familiar tale for far too long -- time to act.
Re the environment -- we have just had an incredible year – dust storms in Arizona, drought and fires in Texas, towns like Goderich, Ontario flattened, tornadoes, massive floods, yet, according to Dailyclimate.org (The Toronto Star, Jan 15 2010) mention of climate change in newspapers dropped 20% from 2010 and 40% from 2009. It asks is it climate change fatigue? I ask, is it a deliberate attempt to put it on the back-burner. John Ayers

THE DAY TO DAY STRUGGLE

Politicians like to paint a picture of Britain as a country of happy, contented citizens going about their day to day life in a carefree manner. The reality however is much grimmer."One in five Britons are borrowing money for groceries because of the soaring cost of living, research reveals. One in four said they have had to dip into their savings to buy food or other daily essentials, while 19 per cent have gone into debt to do this. Another 10 per cent said they could envisage borrowing money to buy food in the future. The survey by consumer group Which? found that only 43 per cent of consumers feel they can afford to live on their income, while 36 per cent admitted to finding things difficult - twice the proportion who were struggling in 2006." (Daily Mail, 5 March) Having to borrow money in order to buy the groceries is hardly a recipe for contentment. RD

A JUBILEE OF NONSENSE

The British press is going insane about the sixtieth year of Queen Betty's rule. Socialists are absolutely opposed to the privileged position of emperors, kings, queens, dukes, duchesses, lords, princes, princesses and all their useless and confused children. We are also opposed to the present owning class of capitalists who lord it over us. We want world socialism wherein every human being on earth works to the best of their ability and takes according to their needs. In such a society our children will learn of the awfulness of kings, queens, dictators and capitalism. Speed that day! RD

A BLEAK FUTURE

It is the constant hope of members of the working class that no matter how bad things may seem at present the future will somehow improve their economic and social position. "A generation of pensioners face lives of poverty and loneliness, without enough money even to heat their own homes, says the first report on life for the over-60s in austerity Britain. The future for many of the country's older people is bleak, according to the Age UK report Agenda for Later Life, to be published this week. Sixteen per cent, or 1.8 million, of people over state pension age are living in poverty; 3.3 million are unable to warm their homes (an increase of more than half a million in the past two years); and 800,000 are not receiving the care they need." (Independent on Sunday, 4 March) According to the experts on the subject the future looks far from bright! RD

Food for thought

Republican presidential hopeful, Newt Gingrich, got it right. He said,
"If we identify capitalism with rich guys looting companies, we're going to have a very hard time protecting it." (Toronto Star, Jan 21, 2012). If he just changed 'companies' to 'workers', he would be there.
The same article, though, shows just how dazed and confused the press is. Gingrich was defending himself against 'anti-capitalism charges'. That's because he attacked opponent, Mitt Romney for his leadership of a private equity firm known for plundering floundering companies and tossing workers into the streets and walking away with $250 million. Later on the article says, " Was Karl Marx correct? Is the boom and bust cycle about to go bust forever?" Something he never supported, of course. And this, "socialism is for tycoons and capitalism is for the rest of us." Go figure where that one came from. Dazed and confused!

The National Post, the mouthpiece of laissez faire (unfair) capitalism Reported that the capsizing of the Costa Concordia would cost the owners $90 million US not counting the impact on bookings. Shares in the cruise company are down 16% reducing the company's value by $1.09 billion. Wow, the social good we could do with that kind of value!
The Toronto star reports that 297 000 UK firms folded in 2010 – 813 everyday. On the same page it is remarked that Ekaterina Ribolovlev, 22 year-old daughter of Russian billionaire. Dymitri, bought a New York apartment for $88 million -- 10 rooms, 6 744 square feet. The
differences in human fortunes are truly staggering. Surely there will be a call for the end of this nonsense.
Well, it seems there is one alternative -- 'System D', the black market, the lemonade stands, flea market vendors, etc. About 1.8 billion people are counted in this class with an economy as large as that of the US. It's all cash and no taxes. Apparently, System D outperformed the regular economy as the recession hit. John Ayers

dirty capitalism

he Scottish Environment Protection Agency (Sepa) has warned that revised targets to reduce air pollution – already postponed for up to a decade – will be breached because not enough is being done to curb vehicle exhaust emissions.

As a result, people in Glasgow, Edinburgh, Aberdeen, Dundee and other urban areas will keep breathing in toxic gases, which can damage their lungs, blood and immune systems. According to the Institute of Occupational Medicine, air pollution kills more than 600 people a year in the Scottish central belt.

An analysis by the Sunday Herald has revealed that European Union (EU) safety limits for nitrogen dioxide, one of the main vehicle exhaust fumes, were breached at 12 sites in urban areas across Scotland in 2011. As well as the four big cities, they included Perth, Paisley, Kirkintilloch, East Kilbride and Broxburn. By far the worst pollution was measured in the centre of Glasgow on Hope Street, followed by Corstorphine in Edinburgh and Atholl Street in Perth.

http://www.heraldscotland.com/news/environment/revealed-traffic-fumes-safety-limits-set-to-be-breached.1330830213

Food for thought

Alan Greenspan, former golden boy of the monetarist camp until that is, the recent financial meltdown, advises us in all his glorious wisdom that capitalism is not to blame for the growing and obscene income inequality. No, what is to blame is innovation and globalization (?). As if all the capitalist class, or any of them, were great innovators or workers. George Soros reputedly made $3 billion in a recent year, that's just $1.5 million per hour on the average forty-hour week, or about two minutes to earn the average worker's wage! That's some innovation! Some hard worker!

Our local country paper out in the sticks here reported on hospital CEO's Salaries. The CEO of Toronto Sunnybrook receives $750 000 per year including bonuses like, health club membership, parking, transit passes, and car allowances up to $1 500 per month. Meanwhile the average Joe, earning some $40 000 has to pay his own way for everything. Makes sense?

Of course, as we all know, don't expect capitalism to be fair or just. That's the big mistake of the Left Wing. The locking out of the workers at the Caterpillar plant in London, Ont. shows that. The workers held a rally on January 22nd . Prime Minister Harper was invited to show his support for the workers but was a no show. London mayor, Tom Fontana said, "We need you down here to support the workers. Get your ass down here!" (Toronto Star, Jan 22, 2012) Nice sentiment but it's going to take more than that. Caterpillar just reported record profits. John Ayers

EXPLOITATION IS INTERNATIONAL

The nature of capitalism is such that many mis-informed observers imagine that it is one of imperialists exploiting underdeveloped countries, but that view is due for a re-appraisal. "It used to be that European carmakers opened plants to assemble their cars in China. Now the Chinese have turned the tables with the opening of their first factory in Bulgaria, an EU country with low labor costs and taxes. Increasingly, Chinese carmakers are setting their sights on the European and American automobile markets." (Spiegel, 22 February) Irrespective of which section of the owning class gain in this competition - one thing is true the working class remain an exploited class. RD

No worker is illegal

Phil Taylor, regional director of the UK Border Agency in Scotland and Northern Ireland, said: "We will not tolerate illegal working which threatens to damage our communities - it undercuts wages and exploits vulnerable workers."

Simple solution - make them legal. Cracking down on illegal immigration only leads to the creation of an underclass of undocumented migrants

It is all too easy to blame immigrants for causing or at least aggravating problems such as unemployment and low wages. The socialist response to this is simply to point out that poverty and social disruption are caused by capitalism. All those people seeking migration, whether legal or illegal, are simply obeying the imperative that they must try to find a place to work; and no amount of government restrictions will change that fact.

Food for thought

Surprise! The Paris-based Organization for Economic Cooperation and Development reported that in Canada a small group of winners was reaping a disproportionate share of global wealth and noted that we were the country with the sharpest increase in income inequality. Wonder where these guys have been for the last one hundred and fifty years! There are other winners too. The Star article, "Yes, Virginia, You Can Contract Out Christmas reports that the owner of Emblem Florists put up a fourteen foot Christmas tree in his home on Toronto's prestigious Bridle Path and adorned it with three thousand lights at a cost of $7000. A client requested six trees done for $25 000. One has to think how many starving children could be fed with that money.

The banks, of course, are managing quite well. The Royal Bank of Canada reported fourth quarter profits of $1.6 billion, up 43% and the Bank of Nova Scotia did OK, too at $1.24 billion in profits. That's only about $15.5 million a day. Just wondering if they are among the 'small group of winners reaping a disproportionate share of global wealth?

Finally, the environment -- As expected, representatives of the Canadian and American capitalists clearly showed their disdain for the Kyoto Accord or any post-Kyoto Accord at the recent UN climate meetings in Durban. Any attempts to help poor countries of the Southern hemisphere to preserve their ecologically vital rain forests were snubbed. Presumably, any whiff of making a profit out of the resource would bring them running back. The drive for profit is merely a short term and blind point of view but thoroughly consistent with the needs of capitalism. When Canada and the US experience coastal flooding, desertification, and
massive crop losses, these people who ignore climate action might wonder if there is a better system after all. John Ayers

THE HUMAN NATURE ARGUMENT

One of the commonest arguments against world socialism is that it is against human nature. According to that view there is something intrinsically basic about human behaviour that makes it impossible for people to behave in a co-operative, social fashion. This old defense of capitalism has recently received a body blow from recent scientific research."Biological research is increasingly debunking the view of humanity as competitive, aggressive and brutish. "Humans have a lot of pro-social tendencies," Frans de Waal, a biologist at Emory University in Atlanta, told the annual meeting of the American Association for the Advancement of Science on Monday. New research on higher animals from primates and elephants to mice shows there is a biological basis for behavior such as co-operation, said de Waal, author of The Age of Empathy: Nature's Lessons for a Kinder Society. Until just 12 years ago, the common view among scientists was that humans were "nasty" at the core but had developed a veneer of morality - albeit a thin one, de Waal told scientists and journalists from some 50 countries at the conference in Vancouver, Canada. But human children - and most higher animals - are "moral" in a scientific sense, because they need to co-operate with each other to reproduce and pass on their genes, he said." (Aljazeera, 21 February) RD

A DIFFERENT KIND OF LIFE

The owning class inside capitalism lead lives completely divorced from that of the working class who produce all their wealth. The multi-millionaire Ted Turner is a case in point. "Turner and his third wife Jane Fonda divorced in 2001, after 10 years of marriage, and the Oscar-winning actress has been replaced in his personal life by a complicated arrangement involving a quartet of other women. In an interview with The Hollywood Reporter the media mogul and philanthropist, who owns 28 homes including 14 ranches, said a week per month for each girlfriend was "pretty much the general rule." (Daily Telegraph, 1 March) Not content with a different house every fortnight he swops wifes every week. RD

Bleak Times

One in ten working-age people in Scotland will be on the dole by the end of the year, according to a new report.

Professor Brian Ashcroft, the editor of the commentary, blames in part the UK government’s austerity measures for choking off growth, describing it as a “serious economic policy mistake” which will be remembered for “generations”.

The core problem, the commentary suggests, is that the supply of labour is rising too fast compared to the number of jobs on offer. This mis-match between people and available jobs is now “identical to the trough of the recession”.

ECONOMIC REALITY

Many workers may imagine in the present economic downturn all the news is bad, but it is not all doom and gloom. "The world's largest advertising group, WPP, has reported record profits, and says events such as the Olympics should boost business this year. Pre-tax profits were £1.008bn in 2011, up 18.5% on the previous year, with revenues topping £10bn." (BBC News, 1 March) The truth is that even in the worst economic times sections of the owning class keep coining it in. RD

COLD REALITY

The recent extremely cold spell in Eastern Europe left many workers in peril of their lives with many homeless workers dying of the cold. This was not the fate of the wealthy minority however. "Monaco-based potash tycoon Dmitry Rybolovlyev has bought the priciest piece of residential real estate in New York City, paying $88 million for a Manhattan penthouse, the Wall Street Journal reported Thursday. Rybolovlyev purchased the apartment from a former head of Citigroup in the name of a trust for his daughter Yekaterina, a 22-year-old college student, the newspaper reported." (The MoscowTimes , 17 February) The demise of state capitalism in the former USSR has certainly ensured the warmth and comfort of the minority capitalist class in that country. RD