Showing posts with label Black Market. Show all posts
Showing posts with label Black Market. Show all posts

Friday, May 17, 2019

Profit the goal (1985)

From the August 1985 issue of the Socialist Standard

From the Report, published on 6 July, of the Special Commission set up by the Belgian Parliament to investigate the incidents that led to the deaths of 38 football supporters at the European Cup final at the Heysel Stadium on 29 May:

Further, the immediate cause of these incidents is to be found in the fact that English and Italian supporters were side by side in blocs X, Y and Z, which was impossible to foresee given that bloc Z was reserved for Belgians. 
The Belgian Football Union and the UEFA seemed to have been motivated more by preoccupations of a lucrative and commercial nature than by their duty to ensure the safety of spectators. 
Ticket sales, as it emerges from many statements and in particular that of Mr Roosens, were completely uncontrolled. A large number of tickets allowing entry to the Z zone (a neutral zone where under no circumstances should there have been Italian supporters) were sold to Italians. 
The sale of tickets at the Heysel Stadium (where in theory only 5 tickets could be sold per person) was organised in such a way that anyone - including Italians — could without problem buy tickets for the Z bloc. This went against not only the UEFA directives but also against the measures decided before the match. Such a procedure necessarily led to a black market.

Blogger's Note:
See also the article, 'Putting the boot in', from the same issue of the Socialist Standard.

Saturday, May 4, 2019

Running Commentary: Behind the Iron Curtain (1981)

The Running Commentary Column from the July 1981 issue of the Socialist Standard

Behind the Iron Curtain
On 8 June, Panorama (BBC television) showed a film called “Behind The Curtain” made by Antoine Fournier, which consisted of interviews with workers in Moscow. The similarity with life in the West was quite remarkable, as the camera panned over Coca-Cola adverts, horse- and car-racing and amusement arcades. One assistant salesman on £45 a month explained how he is forced to try to earn some money “on the side” dealing in the black market. Another, dealing in the foreign clothes market, explained:
  Underground market is a very popular thing in the Soviet Union. All the young people I know do the things I do because, for two reasons. The first is a great profit, and the second is a simple interest to connect with foreigners. But there are lots of police in civil clothes who control the situation and if they catch you with the clothes, they never take you to the police station, they simply take your clothes and then resell them. Policemen have a little salary too, so we can understand them.
Here are some more excerpts from the interviews.
Can we film you at work? The bosses would never allow it.
Do you get good wages? Good pay? You must be joking . . . If I make 150 roubles a month. I’m doing alright . . . I’m just slaving away.
Do many women do your job? What can I say? There are so many of them. They need money, or they want to get a flat. But we're told a pack of lies. They’ve been lying for five years now about the flat, saying they’re going to give it to us. But we’re still living in a room like this one, we still haven’t a flat, just a room. When will you get your flat? We haven’t any idea. That depends on the boss. Go and ask him yourself. Looks like we haven’t earned it yet so they haven’t given it to us.
Are you going to vote tomorrow? Of course (they laugh) what a stupid question!
And who are you going to vote for? Don’t you have an easier question? (They all laugh cynically.) The portrait of our deputy is already hung up in the entrance!
What about Party members? If somebody joins the Party, either that means he’s a careerist, that he's already decided he wants to make a career of it, or, well it means that he’s just no good.
And Western people? First of all, I think they shouldn’t be afraid of us. We are people just like them. We live like they do.

Brixton
The hysteria over the Brixton riots has faded now, but with unemployment and resentment mounting all the time, it is quite possible that there will be further outbreaks of violence in inner-city areas. Brixton was quite clearly not a “race riot”; the police were attacked as representatives of state harassment and authority. But in the aftermath, references to the “black community” in the press suggested that the main division is between blacks and whites. In fact, the whole community, black and white, is divided into two classes. There are both black and white investors, property-owners, who profit from the poverty suffered by black and white workers.

For example, a Nigerian called Chief Francis Nzeribe has said he wants to invest money in Brixton. Some people in Brixton will be allowed to have jobs, to get wages which are just enough to live one, while Nzeribe will own all of the wealth they produce for him. He owns £50 million worth of assets around the world, and heads twenty-seven companies. He has been a private arms dealer and lives in a flat in Mayfair. He has said of his plans for Brixton: “I see this as an opportunity to make money” (New Standard, 5/5/81). Colour is irrelevant.


Gluts
A few years ago, the media were stirring up a popular fear that oil resources were going to run out. There was a danger of a shortage. Now the tune has changed, and they are getting worried about a “glut”. OPFC and other representatives of oil interests are complaining about the threat of falling prices and profits as hundreds of barrels of oil pour out from the Middle Fast each week, to say nothing of all of the other sources in the world. Because of the recession, world market demand is down, so supply seems to be too high to satisfy the profit demands of the owners.

Resources today are not measured by simple human needs, any more than production is controlled by them. The market rules. This is why today's glut becomes tomorrow’s scarcity. The present crisis in world capitalism is not just affecting oil, though. America has a “butter mountain” which is “growing by ten million pounds a week” (Guardian, 30/5/81); and on 26 May a Guardian article entitled: “There's an awful lot of coffee” referred to “the prospect that the world is likely to be oversupplied with coffee during the next twelve months or so”. But in today’s insane system, that will not prevent millions of people from starving to death this year, and millions more from drinking tea because it is cheaper.


China-Cola
China is supposed to be a People’s Republic. Its government claims to have saved its workers from the ravages of capitalist exploitation. So it is rather odd that on 15 April, Coca-Cola, the epitome of world capitalism, opened a bottling plant in Peking. But the Chinese workers will, it seems, be saved from this danger by their benevolent masters after all. At first, the drink will only be sold to people with hard currency (the Chinese ruling class). Later it may be available for “ordinary” Chinese people (the working class), but probably at a price well over what most of them could afford, (Times, 16/4/81) so thoroughly are they being drained dry by the “People’s” Parasites.


Capitalism's Casualties
Dr. Jay Herbert, chairman of the Hospital Doctors’ Association, remarked recently that more than half the country’s junior doctors work more than eighty hours a week, and that their resulting tiredness was a major cause of death in hospitals (Guardian 30/5/81). He pointed to Sunday evenings as a critical time, and said that the massive amount of overtime worked by doctors was allowed to continue for economic reasons: “Juniors are still expected to work for an overtime rate of one-third the basic rate. It is cheaper for hospitals to employ fewer doctors for longer hours than more doctors.”
Clifford Slapper



Saturday, April 6, 2019

50 Years Ago: Human Nature, the Black
 Market and Socialism (1992)

The 50 Years Ago column from the July 1992 issue of the Socialist Standard

When the war began we were told by those who claimed to know that there would be no “profiteering" in this war. Socialists smiled and were disbelieving, knowing that a system built on a foundation of private ownership and profit-making will go on producing evil results whether in peace or war. We smiled again when the News-Chronicle, nearly two years after the war began, said "the days of the profiteers in clothing and other necessities are numbered" (July 25th, 1941). We were not impressed with the story that the capitalist thistle would suddenly produce a crop of social figs because of the appointment of “34 Board of Trade inspectors" who were going to track down the “profiteers". Nor were we mistaken. (. . .)

But, retorts the reformer, make the penalties more severe, copy Russia and Germany and introduce the death penalty, then it will cease. How little they know of that “human nature” they so often talk about. The history of capitalism has demonstrated beyond refutation that given the opportunity (the ownership of goods for sale and a ready market) and given the motive (big and quick profits) nothing will stop illicit deals in one form or another, from robbery and smuggling to black marketeering, and to the numerous operations that can be conducted just on the borderline of legality.
(From the editorial in the Socialist Standard, July 1942.)



Sunday, December 16, 2018

The Black Hole of Calcutta (1943)

From the December 1943 issue of the Socialist Standard

What might be termed the sequel to the historical incident we know by the above term has been, and is being written in the blood of thousands of starving, pestilence-stricken Indian workers and peasants of Bengal. Daily references in the newspapers to the famine in India have provided grim evidence of the ghastly scenes enacted on the streets of Calcutta by actors unable to choose the part they wish to play. Stories have been related of children being sold for a handful of rice, and of skeletons of men and women feeding on jungle roots and leaves. Figures of the death rate show it to have increased to nearly four times the normal average. The whole tragedy is graphically epitomised by the Calcutta Statesman which said:-
  “Thousands of emaciated destitutes still roam the streets in the ceaseless quest for food, scouring dustbins and devouring rotten remains of castaway food and fruit. Rickety children clutching imploringly the tattered garments barely covering the bones of their mothers are seen in all quarters of the city.” (Quoted in Manchester Guardian Weekly, October 15, 1943.)
Famine has always been a factor to reckon with in the economy of India, and has usually meant suffering for large sections of the population. It is commonly understood that a famine means a shortage of food owing to the natural failure of crops, but what is not generally recognised is that the character of the famine, and the way in which it affects the people, varies with the type of society in which it occurs. To the middle of the nineteenth century famines in India were localized in the area in which there was a shortage of crop, and meant an appalling lack of food in that area and of employment. Even if one had money there was no food to be brought, and the general solution was to migrate to areas where food was available. From about 1850, however, capitalism, under the tutelage of the British, became superimposed on the old Indian feudal economy at an ever quickening rate, with an ever greater intensity. With the spreading of capitalism the growth of industrialisation, the development of the plantation and factory system, the production of goods for sale came more and more into evidence. Concurrently with this development the means of transport and communication were vastly increased and extended. Hence, in the latter half of the nineteenth century, it became relatively easy to shift quantities of foodstuffs into famine-stricken areas, and a change in the general character of Indian famines took place. They now meant, not so much an appalling lack of food as high scarcity prices and lack of employment, and whilst the growth of the means of communication lessened the danger of local famines, it tended to widen the area where high prices would prevail.

Thus the famine, from being a calamity of the natural order, turned into a calamity of the social order, aggravating the sufferings inflicted on the poorer sections of the population, notably the peasants, the landless day-labourer, and the growing urban working class.

It is true that in the area most affected by the recent famine, Bengal, Bombay, and Madras, there has been some destruction of crops due to natural causes, but at the same time there have been good crops in other provinces. In the reports that have arrived in this country there is a general insistence that the catastrophe has not come about because of any basic natural shortage, but because such deficits in supply as did exist have been taken advantage of by hoarders and speculators. The loss of the Burma rice crop, excessive inflation, and general economic dislocation (all factors arising out of the war), and natural shortages in certain districts, all tended to encourage the farmers and merchants to hold on to their stocks in order to get still higher prices and greater profits when they did at last decide to sell.

This was the position as early as January 15, 1943, when in the Manchester Guardian Weekly it was reported that “price control has never been rigorously enforced, except against small retailers. The impression is widespread that there are considerable stocks which would be brought out if price control was removed and this would relieve the shortage until next harvest.” The same issue of the paper also stated that black markets flourished everywhere.

After seven months had elapsed the same paper wrote as follows (August 13, 1943):-
  “The Government of India’s Food Member did not deny last week the allegation that men in authority have obstructed the Government’s measures to bring relief to the masses. The Food Secretary on Sunday admitted that Sind had made enormous profits through the sale of surplus wheat and rice. Lack of foresight, the toleration of profiteers, and the fear of alienating certain favoured sections like the landlords, have created the food crisis.”
Whilst we learn on the one hand of the fear of alienating certain favoured sections of the property owning class, we learn that there was no such fear during the period of alienating those sections of the population with little or no property. Side by side with the blackest of black markets, dealing in the very life-blood of the poverty-stricken masses, there were “long queues of hungry workers waiting all night outside Government controlled grain shops in places like Bombay.” (Manchester Guardian Weekly, January 15, 1943)

Investigations conducted by Calcutta University have revealed that 50 per cent of the families of destitutes have been broken up, and that 47 per cent are landless labourers, 25 per cent small cultivators, 6 per cent town beggars, and the remainder unclassified.

Such evidence as this throws into bold relief the fact that it is the propertyless who suffer and die, whilst the propertied reap excess profits and get all they want in the black markets.

The Indian scene, in normal times, is a picture of a vast mass of humanity living in the grip of abysmal poverty. Utter destitution resulting in a prolonged death through starvation, or a quicker death through mal-nutritional diseases such as tuberculosis, cholera and typhoid, is the lot of Indian workers and peasants. What then must be their lot when the price of the food they require for a bare existence soars far and away above their means? What can they do but wait for death to claim them, their bony hands held out imploringly for food, on the pavements of the second largest and one of the “most prosperous” cities in the British Empire! In other parts of the same empire the granaries of Australia and Canada are full to overflowing with the wheat that would bring succour to those in need. The problem, however, according to Mr. Amery (Secretary for India), speaking in the House of Commons, October 12, 1943, was “entirely one of shipping, and has to be judged in the light of all the other urgent needs of the Allied Nations.” Yet the Allied Nations are producing ships faster than they have ever been produced before in the history of mankind, and the USA is able to boast of a production of 15,000 naval ships of all dimensions in the past three years.

Well might the reader at this point exclaim, “This is madness!”

No, reader, this is not madness—simply another example of the ever present anarchy in CAPITALISM, the economic system of society that holds the world enslaved.

An economic system that is based on the ownership of the means of life by the few, and the exclusion of the means of life from the many. Only under capitalism is it possible for conditions to arise where hoarders, speculators, and black marketeers of every nationality can flourish on the one hand, and be the social complement of starvation, unemployment, squalor, disease and poverty on the other.

Only with the abolition of this private property basis of society and its replacement by the ownership of the means of wealth production and distribution by the whole of humanity, can humanity solve the evils with which it is confronted.

This is the job, the only worth-while job, of the working class. Not only the working class of this country, but of the working class of the world acting in unison. No longer must they acquiesce in the retention of a system which condemns great numbers of men and women to exist like a seething mass of gentils beneath a rotten, stinking piece of meat. Just as the meat is a condition of existence of the gentils, so is capitalism a condition of existence of the working class. It must be removed, and with it will go all class divisions.

This can only be done by a working class conscious of the cause of its troubles, desirous of solving them, and with knowledge of the solution. Even in the case of the Indian working class the solution to their problems is the same as ours. It does not lie in the substitution of one kind of capitalism for another. It does not lie in the substitution of a native Indian master class in place of the British Raj; their fellow countrymen are among their most ruthless exploiters. In common with the rest of the workers of the world, their solution lies in the establishment of a system of society based upon the common ownership and democratic control of the means of life – the establishment of SOCIALISM. Along this road alone, however tiresome may be the journey and however many pitfalls may be on the way, lies the emancipation of all mankind without distinction of race or sex.
N. S.

Friday, August 10, 2018

Private Enterprise in Russia (1954)

From the August 1954 issue of the Socialist Standard

When all the arguments for the existence of Socialism in Russia have been exhausted by Communist Party members and their sympathisers, they usually conclude with the idea that "At least Russia has, in abolishing private enterprise, taken a great step towards Socialism." Even if Russia had nationalised everything, this would not mean that they have got Socialism but only State capitalism. Avowedly capitalist countries have never hesitated to nationalise industries when it suited them. But has Russia abolished private enterprise? 

Readers Digest for May, 1954, condenses an article from the Wall Street Journal by Tom Whitney who has recently returned to the United States after nine years in Russia, first as chief of the economic section of the U.S. Embassy in Moscow, and later as correspondent for the Associated Press. He wrote “If you dial a certain telephone number in Moscow you can arrange to buy a TV set within 24 hours—instead of the two or three months it takes to get one from the State run electrical appliance store. Calls to other Moscow numbers will summon such people as washing machine salesmen, doctors, repair-men, and house builders—all private enterprise ready to provide speedier or higher quality service than the Soviet Government offers."

Many traders, asserts Whitney, wait (or more likely get the tip) of a new delivery of goods arriving at a store where there has been a shortage for a long time, and buy a huge quantity and resell them for a handsome profit to those not willing to wait or stand for hours in queues. Rosa Martynova, a member of the Moscow branch of the Komsomol (Communist national youth organisation), is now serving five years for this practice. Another eminent party member, M. Kogan, obtained several thousands of watch movements from the government, assembled them and netted £89,000 profit before the government woke up! There were two brothers who sold leeches to the government (they are still widely used there and were applied to Stalin before he died), made 400,000 roubles profit a year on the sales.

Everywhere in Russia, and in every branch of activity, according to Whitney, there is some private enterprise and it can successfully compete with the inefficient state enterprises. Of course if the goods are just stolen, as they frequently are, or if the raw material has been wangled from a government store, then competition should not be too difficult. Whitney claims that even landlords can get rents above controlled prices, and he witnessed that a friend of his in Moscow signed a lease for a room priced at 265 roubles a month; but on top of that the landlord demanded extra cash to boost the total rent 450 per cent, claiming that he would go bankrupt if he only charged the official rent!

How can the police prevent the buyer of a television set from selling it to a "friend” for a profit? Whitney claims that only 100,000 TV sets are at present coming on to the market annually, yet the demand is for at least ten times that quantity.

He points out that not all private enterprise is illegal in the U.S.S.R. Soviet law permits individuals to work privately under licence at any of about 20 trades and professions, including medicine, hair-dressing, book-binding, house-repairing, etc. Russians can work full time at such jobs and part-time at many others. House repair must cover a multitude of occupations, and with a few friends (or business partners in state warehouses) can be very lucrative. Taxes on private incomes are levied as a recognised thing.

Stealing from government factories keeps private enterprise going very profitably according to Whitney. In most of the large towns medical, dental and even teaching is done privately. State-run clinics are inefficient and always overcrowded. One Russian doctor maintains a private practice in Moscow as a homeopath and earns over 16,000 roubles a month. His income from official work could never approach that mark.

Whitney concludes his article by saying that "You can get private help in practically any service field in Moscow—if you can pay the price.”

Private enterprise is hard to stamp out, even with secret police, who are sometimes as corrupt as the private traders. So long as the workers don't understand or want anything else, the profit motives of society will survive. There is no socialism in Russia. State capitalism is the dominate form, with private enterprise, according to Whitney, as a flourishing subsidiary.
Horace Jarvis

Friday, November 17, 2017

Scenes Deleted From The Jungle Book (2016)

The Pathfinders Column from the November 2016 issue of the Socialist Standard
Did you know that cheetahs can't roar scarily like lions, they mostly purr prettily like kittens? Or that they are generally good-natured and easy to tame, unlike other big cats? You probably know that the cubs are incredibly cutesy-cute. What you probably don't know is that these reasons, taken together, are helping to drive the fastest animal on Earth to its extinction.
Why? Because as well has having to deal with low birth rates in the wild due to shrinking habitat combined with around 70 percent cub mortality thanks to lions and hyenas, the cheetah has to face a rather less natural form of predation. Humans want them as pets. But not pets to look after properly, of course. Trophy pets, costing up to $10,000 each on the black market, to dress up in stupid outfits so that their rich, narcissistic owners can impress their shallow and supercilious friends.  So poachers box up whole litters of wild cubs in packing crates, bundle them onto trucks and then container ships, and then lift out whatever has survived at the other end from the heap of starved and dehydrated corpses (BBC Online, 23 September: http://tiny.cc/s7b2fy). Most of the 15 percent of furry little cuties which survive transit rarely make it past their first year as pets anyway because their rich owners have no clue or care about diet or exercise, and are entirely unconcerned about keeping an animal indoors which normally has a 500 square mile backyard to run around in. And if by a miracle they do survive this domestic incarceration, they get too big to feed and the adoring owners promptly dump them in back alleys to starve.
To see who these pet owners are, here's a sample of the Daily Mail in all its fawning glory, gushing over a pair of South African owners and without a single word of criticism (actually, here's a link instead: http://tiny.cc/o0b2fy - we don't want to make Socialist Standard readers feel sick by inserting Daily Mail text here). Here is the same paper simpering over Mr Ultra-Rich Humaid AlBuQaish ('it is not entirely clear what AlBuQaish does for a living') as he flaunts for his 850,000 Instagram followers his menagerie including a lion, a cheetah, a tiger, several chimps and some marmosets, together with an unidentified woman in a bikini and a Ferrari (Link.).
It's one thing, you might argue, to farm animals for their meat, though many would question whether even this is necessary. As humans we are inevitably going to put humans first, and socialists are no different. If animal testing of important medicines is deemed necessary, we are not going to argue that it should not be done, because that would unconscionably put the welfare of animals above that of humans. Indeed there is something rather peculiar about humans and their double-standards towards animals, on the one hand billing and cooing over chicks or lambs or bunny rabbits and then eating them in pies, or keeping pet moggies out of a 'love for animals' while overlooking the massacre of wildlife these same moggies cause on a daily basis. It's estimated, for example, that domestic cats kill around 14 billion small mammals and birds every year in the USA, while in Australia there is serious talk of imposing cat curfews and outdoor enclosed 'catios' to keep the destruction to within sustainable limits (New Scientist, 8 October).
Even so, it is surely beyond any reasonable person to defend the wholesale slaughter of African large animals for the ivory or bushmeat trade, or the exotic pet business, especially when this is a trade indulged in largely by and for the amusement of the rich alone. It's not as if we can really blame the individual poachers either. Faced with poverty themselves, what else are they going to do? And can you even blame individual states, if it comes to that? Swaziland caused a huge row recently at the Conference on International Trade in Endangered Species by arguing that, in order to finance anti-poaching measures, they needed to sell off some of their stock of rhino horn (New Scientist, 1 October). Rhino horn is hugely valuable in Asian markets for quack remedies, and as rhinos approach total extinction in the wild Asian buyers are keen to stock up in advance, thus driving the price further up. The naysayers are adamant that a legitimate market in rhino horn, however limited, will be a disaster for rhinos. They're probably right too. When a limited sale of stockpiled elephant tusks was restarted in 1997, elephant poaching went stratospheric.
Cynics talk about capitalism as 'the law of the jungle' but in fact it's much more vicious and destructive than any law of the jungle, for animals as well as humans. It's a mindless profit-machine, without care or conscience, that like some giant combine harvester rages across the world shredding everything in its path, whether human, animal or natural resource. Where it makes wealth, the rich use it as their plaything. Where it makes a desert, they call it good business practice.
But the rich ought to beware, because one of these days the overwhelming majority of helpless and enslaved workers are going to discover something very important. Whether they are mostly concerned for themselves or their fellows, or else for whales or cheetahs or the environment, or for ideas of justice and human dignity or their children's ultimate welfare, workers are going to discover that they have something uniquely in common, which is that they don't need to be slaves and that they are not helpless at all. And then, just like so those humiliated pets, dressed up in stupid clothes with stupid names in the service of an even greater stupidity, they are going to discover that they have claws too.
Paddy Shannon