Troubled Waters (2011)

Book Review from the March 2011 issue of the Socialist Standard

Crude World. By Peter Maass. Penguin. £10.99.

The delta of the River Niger is an enormous wetland, once a flourishing ecosystem with a wide range of life forms. But now it is not a wildlife sanctuary: rather it is a horrendous landscape of ruined villages, devastated populations and roving armies. The reason for this is simply the delta’s vast oil reserves and the prospects for wealth and power that these entail.

This is but one clear example of the ‘resource curse’, which states that countries dependent on the export of resources such as oil are susceptible to more corruption and warfare but less freedom or economic growth. In this enlightening book, Peter Maass surveys a number of cases and shows how oil rarely produces benefits for those who live in the places where it is found.

In Equatorial Guinea, for instance, the discovery of offshore oil led to enormous riches for the dictator-president Teodoro Obiang. Few local workers were employed in the exploring and drilling work, and massive profits were made by American companies like Exxon. The US government, and various lobbying groups, played their part in supporting Obiang and keeping him friendly to American business. This is particularly important as Chinese companies start flexing their own oil-producing muscles.

In Ecuador Texaco was able to do more or less as it wished, since the officials of the newly-formed state oil company knew next to nothing about oil. The natural gas that came to the surface with the oil was just burned off, which can be deadly for both people and environment. Rivers and land have been contaminated and the government left with massive debts.

The profits, of course, go to the oil companies and their owners. Lee Raymond received $686 million for his thirteen years as chief executive of Exxon-Mobil, while billions went to share-holders. As Maass points out, oil companies in fact do not ‘produce’ oil, they simply take it from the ground. Extracting, purifying and transporting oil are complex tasks (performed by skilled workers), but selling oil to realise the profits is not difficult. What is needed in the first place is a licence from the local government to explore and extract oil, which is why the oil industry is usually rife with corruption and works closely with diplomats and generals to ensure this kind of access.

So a substance used to provide fuel and warmth also causes wars and destroys the environment. Inevitable consequences of a world that belongs to a privileged few and is driven by profit.

Paul Bennett

Tunisia – people power, but . . . (2011)

From the March 2011 issue of the Socialist Standard

The new regime won’t be able to improve the lot of the population.

The lightning rapidity and relative ease with which Zine El Abidine Ben Ali was chased out of Tunisia in January, is a clear testimony not only of the power of the masses but also (though unknown to many) how vulnerable and cowardly many a dictator is. Hours before his ignominious flight, Ben Ali appeared on television visibly shaken and pleading with the people to give him time to address their problems. Too late; the masses were already up in arms. It is said that the capitalist system digs its own grave. But it does not do so willingly. It is an inevitable fate that it must fulfil; it developed the internet to enhance its insatiable crave for profits but, ironically, it is the same internet that the masses will use as a collective organiser to mobilise the exploited to bury the system. The present upheavals in the Arab countries are one such example.

Elsewhere in the Arab lands, this defiant action of the Tunisians sent frosty shivers down the spines of the other dictators and, apprehensive of a possible domino effect, some of these rulers started making jittery reforms to avert a similar (and deserved) fall.

In Tunisia, discontent with the government was deep and widespread, cutting across class lines. The low income earners had no hope of escaping poverty because the government had no way of providing them with jobs. The middle income earners had little chance to improve its lot because the government had so badly sapped the economy that there were few government services and the development of business was virtually impossible except for the few who had close ties with top officials. Many of those who did no more than merely question or complain about injustice were thrown into jail. Many useful people were turned into beggars.

Pernicious adulation
These dramatic events in the Arab lands (and they are still unfolding) also reveal, in black and white, the negative role that the corporate media play in the struggle for the emancipation of mankind. On the eve of the uprising, one would have thought, going by what the media wanted the world to believe, that Tunisia was a kind of heaven-on-earth. For instance, in 2002, a number of ‘Special Reports’ on Tunisia were published in New African – so far the leading English language magazine in continental Africa –  that need some paraphrasing and scrutiny here. They were, in the main, prepared by one, Anver Versi.

According to him, visionary political leaders like Ben Ali are saviours and so when Ben Ali took charge of the country 15 years ago, he called the process The Change. Many at that time took the words at their literal value; most at that time did not fully grasp what he meant. When one looks at Tunisia at that time and what it has become today, one feels the full, stunning impact of the words,

The Change:

“These 15 years have seen one of the most remarkable transformations in modern history of the world. From a country teetering on the brink of social economic and political collapse, Tunisia today is on the threshold of entering developed world status. And this was achieved without any miraculous discovery of gold or oil. The country has also not borrowed heavily to finance its growth, neither has there been any ‘Marshall Aid’ from wealthy nations. Growth has been maintained at a steady 5% per annum despite a four-year drought. Industrial efficiency has been gained without the loss of employment. The infrastructure has quadrupled. Education is universal and incomes have increased by 400%. Eight out of ten households own their homes and there is hardly any poverty. The rights of children are protected by law. An advanced social security programme is in place.”

Versi wrote further that “in Tunisia the term ‘solidarity’ is not a political slogan for organised groups. It stands for the principle ‘one for all and all for one’. ‘Solidarity’ means that you are never alone; your problems are not yours only; you are not isolated but part of an intricate chain. Since a chain is as weak as its weakest link, it is everybody’s duty to ensure that the weak links become stronger with each passing day.” Versi added that according to Ben Ali, the National Solidarity Fund, which is the vehicle used to reintegrate marginalised groups, has been so spectacularly successful that delegations from virtually all corners of the globe arrive almost every week to study how it works. It is a remarkable journey undertaken at a dizzying speed. A miracle indeed!

The above pernicious adulation typifies the mercenary media’s manipulation of public opinion which, unfortunately, is swallowed hook, line and sinker by many. But even if that was actually the reality in Tunisia only a few years ago, how could the situation of the majority of the people be so messy today? To be able to reconcile this rather bizarre equation, one needs to consider the inner workings of the trap set for Tunisia (and indeed all peripheral states) by the capitalist system..

Free trade with the EU
Tunisia was the first country to sign an Association Agreement with the European Union. According to the terms of the Agreement, the EU and its Association partners would introduce a Free Trade Zone in 2010. This would mean that tariffs and other protective barriers would be eliminated. This was way back in July 1995. The Agreement provided that Tunisia would be given enough time and room to adjust its national structures to fit into the partnership. It would also not surrender its competitive advantages, such as its cheap labour. Naturally, a less developed nation joining an advanced economic market such as the EU has as many advantages accruing from it as there are dangerous pitfalls. One thing, however, is clear: removal of tariffs and deregulation always leads to the importing of cheap goods from the West which greatly damages local production.

But the Tunisian rulers, and that is always the bait, were made to believe that with time they could compete on an equal footing with their European counterparts. The Agreement also provided for a 12-year transition period after which it would come into force for the implementation of the free trade arrangement. However, Tunisia had started dismantling tariffs on industrial goods in 1996, two years before the agreement came into force in 1998. It would therefore be able to enter the Free Trade Zone by 2008.

The EU opened an office in Tunis and the grants started flowing in. A 40-strong team from the European Commission flew in. Its function was to carry out EU policies and co-ordinate with Tunisian authorities. They would work together with the Tunisian Ministry of Co-operation and Investment and provide technical management assistance to improve productivity. They were also to budget aid money against reforms and disburse funds after checking that targets had been met. They would also link with lending institutions like the World Bank for more loans. The office then proceeded to open up trade services such as insurance, banking and other commercial and professional set-ups.

That marked the beginning of the end. The government failed to understand that the tighter the grip of the capitalists on industry, the more intense is the poverty of the masses and the more marked are the riches of the few.

Decorated donkeys
Coming back to the crisis, the demonstrations continued in spite of the ignominious flight of Ben Ali. This is understandable because those individuals who, in one way or the other, helped mess up the lives of the ordinary people were the same who came back as the interim government; a clear case of the decorated donkey still being an ass.

But one thing is obvious; no matter who are brought in to assume leadership of the country, the plight of the ordinary Tunisian will not see any significant improvement. The so-called opposition are no better than the likes of Ben Ali. At the beginning of 2002, for instance, the opposition parties and some civil organisations were invited to contribute to the framing of a draft constitution before it was put to the public to vote on. Later, the secretary-general of the Popular Unity Party (PUP) one of the six opposition parties, Mohammed Bouchiha, gleefully commented that the reforms marked the crossing of the Rubicon and signified a point of no return in the development of modern Tunisia. “The system has now been changed as we demanded,” he said.

On the issue of the reforms dropping the limitation on presidential terms, Bouchiha said, defending the open system, “That was an irrelevancy; the clause was brought in when President Ben Ali revoked the President-for-Life system introduced in the latter stages of Habib Bourghiba’s administration. But if the electoral system is fair, why should the public be denied the opportunity to vote in the candidate of their choice as many times as possible?”

Now, observers across the anti-capitalist spectrum may enthusiastically welcome the courageous action of the people but the fact is that the opposition is not a unified ideological entity. It is a random collection of (often irreconcilable) groups whose interest in getting rid of the government only happens to coincide now. Though such an amorphous group may be able to seize power, they can hardly help the masses as they do not have any common and well-thought-out agenda except that they want to see the back of the leader. And even if they are able to hammer out some sort of radical programme, they will soon be forced to make concessions to the same ruinous capitalist world around them as there is virtually no possibility that massive foreign aid will be offered them to alleviate the poverty of the populace.

Thus, the untold hardship visited on the masses and which necessitated the mass action can only be possible (and will always be so) under the capitalist system. This system is based on an insignificant minority of the world owning all the means of production and distribution of wealth i.e. land, factories, transport and communication networks, the media, etc. These few individuals control all the wealth of the world whereas the majority have nothing and have to work for the owning class to continue making their profits. It is this sort of relations that is the source of all the suffering in the world.

Therefore, it is only when this profit-driven system is abolished and replaced with a system that is operated on the basis of ownership of the world’s resources by the whole of humanity that such uncalled for situations in society can be done away with. But this cannot be achieved except when there is a concerted action on a global scale. Individual countries may rise up and chase away their leaders but it does not solve the problem. It is only when the majority of mankind and in particular the working class understand the capitalist system and, based upon this understanding, decide to do away with capitalism and replace it with a better mode of organising society (call it socialism) that the human race will be really human. For, such a socialist system will be run on the basis of collective ownership of the world’s resources for the use and benefit of all.

Suhuyini

Greasy Pole: Grow up and understand (2011)

The Greasy Pole column from the March 2011 issue of the Socialist Standard

You can’t help feeling sorry for coalition ministers with their sleepless nights and restless days having to do something they call Taking Tough Decisions even when these lead to thousands of people catapulted into unemployment, agonising over whether to pay the rent or mortgage or buy food or try to keep warm in the winter. So it helps to know that, at any rate for those struggling ministers, there is another way. Some spin doctor in the deeper recesses of Westminster has come up with the idea that the victims of current policies might regard themselves as less repressed and impoverished if they could accept it all in a more mature and perceptive manner. One great advantage of this reasoning would be that it promises to be stunningly cheap to operate. Another is that any residual resentment by penurious benefit applicants and the like might well be stifled by their feelings of guilt at their own inadequacy in accepting reality.

Clegg

Here, for example, is Deputy Prime Minister Nick Clegg, seemingly unshaken by his being abruptly transmogrified from the focus of a national mood of “Cleggmania” into “the most hated man in Britain”. The tension between the LibDems and their patient fans was aggravated by the fact that Clegg had led his party into the coalition along a path of dishonoured pledges and his excited complacency at holding so eminent a governmental post. Last November, before the Commons voted on the proposal to increase the university tuition fees, Clegg wrote to the President of the National Union of Students and, after asserting that the government’s intention was that graduates on lower incomes would be better off than now, stated that “I believe it is crucial that all of us are able to ensure that people know the true picture”. Take note of the use of words like “crucial…all of us…ensure…true picture…” designed to imply that anyone who does not fit into this compliant mould has defects which are – well, crucial. This argument might be more effective if it was not put by the same Nick Clegg who, when he was touting for votes during the general election, said that to raise tuition fees would be “a disaster”. So while we consider how to maintain a maturely informed attitude among the confusion, can we also settle where we place Clegg? Are we impressed that he eventually admitted the LibDems (including himself) should have thought more carefully before signing those flamboyantly reckless pledges? Or would it be more instructive to remember that this confession was a response to lost votes and the fact that Cleggmania had decayed into a septic memory of a disreputable past.

Cable 

Which brings us to the Deputy Prime Minister’s deputy who, while never embellished by Cablemania, has coincidentally been reduced from the world’s most immaculately insightful economist to piteously Vincible Vince. Among a procession of savaging blunders in early November Cable boasted to two undercover reporters from the Daily Telegraph who came to his constituency surgery pretending to need his advice that he had the power to scupper Rupert Murdoch’s attempt to completely take over BSkyB and that to get his own way in the coalition he could operate the “nuclear option” of threatening to resign from it. Although supposedly a hardened political operator, the terror of affluently bonused bankers, Cable seemed powerless of suspecting that he was being set up precisely to embarrass himself in such an unwise, almost terminal, style. An outraged David Cameron swiftly relieved him of these feverish delusions – and of some of his ministerial responsibilities. But he clung on as Business Secretary, in which post he had brushed aside the protests at the planned rise in tuition fees: “I think a lot of the people who are protesting actually don’t understand what’s being proposed. It doesn’t actually affect them – we’re talking about a system of graduate contribution that will only affect people who start going to university in a couple of years’ time”. There are however problems for anyone eager to give any weight to Cable’s views in this matter since he has himself demonstrated a distinct confusion in understanding – at times declaring himself to be in favour, then against, the rise in fees, then that he would abstain from voting (there are no prizes for guessing that, when he came to it, ambition overruled and he obediently supported the rise). But how are we to regard anyone so susceptible to trickery and confusion, who nevertheless tells us that we “don’t understand” our everyday problems?

Cameron

From the other bit of the coalition David Cameron, in what seemed like a fit of exasperation, hit out at the opponents of the “reform” of what are called public services (in which this government is merely following Labour’s policy). Cameron’s complaint is that the critics need to grow up and realise that what counts is the standards of the service rather than which organisation – state, private, charity – delivers it. Well growing up – although not in the way Cameron means – is mostly a useful, not to say necessary, process from which a certain education is assumed to follow. But until that happens we must work with the outrageous fact that an Old Etonian, ex-member of the vandal Bullingdon Club such as Cameron can lecture us about maturity when he is unable – or perhaps reluctant – to confront the fact that the working class exist under continual pressures of survival in their everyday lives. Dependency on employment in order to survive is a vastly educative, maturing experience. For example the housing charity Shelter recently reported that some 3 million people have problems paying their rent or mortgage, which means that millions of people live under the persistent threat of being homeless. According to Shelter’s chief executive “thousands of people are hanging on to their homes by the skin of their teeth…”. That is the kind of experience which should be enough to result in such enlightenment about capitalism as to be mightily serious for the Tories, Labour, LibDems and all other supporters of this chaotic, degrading social system.

Ivan

Zambia: the riots in Barotseland (2011)

From the March 2011 issue of the Socialist Standard

The events that took place in Western Province on 14 January strongly and correctly underpin that Zambia’s politics are tribalist – that tribalism in Zambia exists and is partly instigated by self-seeking politicians through inciting disgruntled ethnic groups in order to advance their political objectives.

What is called nationalism comes to emphasise political allegiance to the state. Political states in Africa were mapped out by European imperialist nations under the guise of economic interests and military influence. Thus African kingdoms and empires were brutally decimated and different ethnic groups were forcibly integrated into colonial states and protectorates.

British imperialism (colonialism) was politically, religiously and poetically lampooned as bringing civilisation. What is known today as Zambia consists of 72 ethnic groups and the Lunda-Luba speaking tribes comprise 90 percent of Zambia’s population. Politically and linguistically the Bemba remains one of the dominant tribes. The Lozi and Tonga remain linguistically and culturally differentiated from the Lunda-Luba complex tribe. It is undeniable that rigid ethnic and tribal patterns exist in Zambia today as a major factor determining the strength of political parties.

The Barotseland Agreement was enacted on 7 May 1974 in London between the then Prime Minister of Northern Rhodesia Kenneth Kaunda, the Litunga of Barotseland and the British colonial government. The document in itself signified the end of British protectorate of Barotseland and entailed the incorporation of Barotseland (Lozi) into a self-governing independent state of Zambia under the leadership of Dr. Kenneth Kaunda. There is nothing sinister about the Barotseland Agreement that needs to be revised today as a way of protecting and safeguarding the political and economic aspirations of the Lozi-speaking peoples of Western Province,. Thus recent calls for political and ethnic separation of the Lozi-speaking people from Zambia is mainly propagated by a bunch of political hooligans without any viable backing from the political fraternity.

It may be juxtaposed that calls for revising the Barotseland Agreement and the consequent bouts of mob violence that took place in Western Province in January were partly the outcome of economic backwardness that still prevails in Western Province. The mob went berserk, stoning vehicles and damaging public property. The police replied with live ammunition and two lives were lost.

What we are now saying is that economic underdevelopment that prevails in Western Province was the main motivating factor behind the violence that took place otherwise than political dissatisfaction with the Barotseland Agreement as such.

Political rebels within the ruling MMD have blamed President Rupiah Banda for having seemingly deviated from the political legacy of the late Levy Mwanawasa – economic development through tackling corruption and money laundering. Banda by himself does not command any ethnic group nor parliamentary constituency. He was only hand-picked from UNIP political retirement by Mwanawasa to the position of vice-President in 2007.

Favoured by political fortune Banda automatically became acting President when Mwanawasa died in 2008. In the presidential elections held in 2008, Banda managed to win with a mere majority of 350,000 votes against Patriotic Front president Michael Sata and became the fourth president of the republic of Zambia.

Apart from the Bemba, the Lozi and Tonga have played a prominent rôle in Zambia’s domestic politics such that any beleaguered political pronouncements on events taking place in Western Province tends to elicit feelings of Lozi tribal parochialism against the ruling MMD. Because the violent mobs in Western Province were attacking non-Lozi we may infer that there is any ethnic rebellion there.

It is sad to note, come 2011 general elections, the majority of workers and students in urban areas of Lusaka and the Copperbelt will massively vote for Michael Sata of the PF, whereas the peasants in rural village communities will vote for the MMD. The people who live in towns believe that PF leader Sata will achieve economic miracles in the belief working conditions in Chinese-owned mines will improve and new jobs will be created. Those who live in rural village communities are content with fertiliser subsidies, new schools and paved roads and will vote for the MMD.

But wealth and power under capitalism can only be realised through legalised exploitation of some people by others. This is a complete contradiction of socialism that envisages a future society in which economic and political privileges will not exist because goods will be produced for consumption and not or sale – while racial and ethnic taboos will not prevail because there wouldn’t be political leaders nor class interests to defend.

Kephas Mulenga

50 Years Ago: “Democratic” Portugal (2011)

The 50 Years Ago column from the March 2011 issue of the Socialist Standard

The recent seizure of the Santa Maria by an armed group led by Captain Galvao, on the instructions of the exiled General Delgado, has focused attention on Portugal.

The Portuguese monarchy was overthrown in 1911, and after 15 years of political instability Dr. Salazar came to power. Amongst those who supported him were Captain Galvao and General Delgado. The regime in Portugal— Britain’s “oldest ally” —is one of dictatorship, where only one political party is permitted and opposition is suppressed. The office of Prime Minister, held by Dr. Salazar, is the top job, with that of President merely the state figure-head. (  . . .)

General Delgado’s avowed aims are first to oust Salazar. He says that he wants to lessen the economic gap between Portugal’s tiny minority of wealthy families and her desperately poor working population, and to democratise the colonies; to have universal suffrage both in Portugal and the colonies and vastly to improve education. Portugal is the least industrialised country in Europe, and Delgado may well have been reflecting that it is essential to have an educated working class in order to develop industrially.

The Socialist sympathises with aspirations to political democracy, but there is no guarantee that Delgado’s professed aims would be achieved if he succeeded to power in Portugal, nor is there any guarantee that in a private property society, democracy, once obtained, will remain in being. He may, like many political candidates, be only dangling a bunch of carrots in front of the donkey’s nose, in order to obtain personal support. It is possible that Delgado is voicing the aspirations of a new stratum of Portuguese society, a capitalist class whose needs, namely an educated working class, are directly opposed to those of the entrenched, almost feudal aristocracy administered by Salazar.

(from ‘News in Review’, Socialist Standard, March 1961)

The Budget: rearranging the furniture (2001)

From the March 2001 issue of the Socialist Standard

Politicians are sometimes conscious liars—often proudly so. Indeed, that’s their job, to persuade people to support them regardless of their merits rather than because of them, and to justify the actions that the economy demands they make. Politicians confront journalists, grinning from ear-to-ear, knowing their interlocutor knows that they are lying, as they dance through the empty ritual of the media interview. This very fact makes it difficult to estimate what politicians are going to do, and means that they can only be fully understood in retrospect.

This applies especially to the spinmeisters of the Labour Party, who had gone out of their way prior to the election to disguise their intentions under a barrage of rhetoric. With Labour now close to completing its first four-year term, it is possible to look back and examine their period in government by what they have actually done while in office.

The issue of taxation dominates contemporary political debate, with each party competing to be the Party of Low Taxation, whilst simultaneously offering voters higher public services. Tories allege the tax burden has risen, Labour states that tax rates have been cut, endless streams of statistics are hurled viscously in either direction, with illumination being no-one’s goal. In the meantime leftists bleat and demand that Labour “tax the rich and make them pay”. On top of all that, the immense complexity of the taxation system, coupled with intricate shifts in the economy and in methods of presentation, makes it a struggle to try to accurately find out what is really happening.

It has become orthodoxy among Labourites that they lost the 1992 election because of their image of being a tax-raising party, scaring away the affluent workers known as “Middle England”. As a part of their image make-over campaign, and their half-truthful manifesto, they pledged themselves to lower income tax when elected. In the manner of political debate, this allowed their speakers to state that they were going to lower taxes (that is, income tax) even as and when they were going about raising the overall tax burden. Whenever challenged by the Tories, they simply pointed out that the Tories raised taxes 22 times during their period in power.

Taxing problem

Labour have so far succeeded in reducing the starting rate of income tax down to 10 percent. The logic for this is that whilst benefiting the poorest workers, it also cuts taxes for almost everyone else, including the most well-off (since cutting the basic rate lowers the tax paid on that band by all tax payers). Also, as the bulk of income tax nominally falls upon the mid-range of the income scale, reducing the starting rate allows for the appearance of cutting tax for all, without actually costing the government much money. At the same time the state has raked in sizeable sums by ending the IR-35 tax exemption upon self-employed contractors, who though technically selling only their labour power as employees, are able to register as small companies and gain tax benefits.

Reducing the starting rate also has the advantage of tying in with Labour’s employment strategy. Since workers are selling their labour power for a market-defined rate, and will not work for less then that rate, it must be their take-home pay that decides their willingness to work. If their take home pay is lowered, say by taxes, this translates into upwards wage pressures, which ultimately means that the burden for any increase in taxation will fall upon the employers. Conversely, if tax rates are cut, it makes it cheaper to actually employ people, and so cutting the starting rate of tax allows more people to move from unemployment to low paid jobs which can be made profitable.

Labour tied this concept in with their benefits policy, by introducing “The Working Families Tax Credit” (which, they passed off as a tax cut) whereby tax is rebated to low-paid workers, instead of paying them directly in the form of benefits. Whilst this does not affect the overall level of their income, it structures it so that dependence is upon gaining employment rather than claiming state benefits. Essentially, it is using the taxation system as a means of social control to work within the wages system, and to apply labour discipline to the workforce. Thus they can present it as a double coup both of cutting taxes, and also cutting the size of the welfare budget; all by simply rearranging the furniture. Thus, employers are able to exploit cheap labour, without having as great a tax burden to pay.

This reduction in the taxation upon exploiting labour is also reflected in their aim of reducing Corporation Tax as well. The aim is clearly to cut taxes upon production, and so promote investment into those areas. For a long time capital investment in the UK has been problematically low, and the government has sought to ease the burden upon investment via the taxation system. It is in this context that, when they imposed the Climate Change Levy, Labour were keen to point out that it did not represent an additional tax burden, due to offsetting decreases in employer contributions to National Insurance.

Tax farming

The shift from taxation directly on the point production to indirect taxation on consumption has been slowly going on since 1979. The Tories in their final budget observed how nearly half of all taxation came from indirect sources, mostly VAT. Labour has continued this trend, particularly through ever-increasing duties levied on fuel and tobacco.

There are limits, though, to the extent to which a government can exploit a monopoly or oligopoly to levy duties. If businesses are able to pass on the tax increase to the consumer in the form of higher prices this can cause problems. In some circumstances, if the price of a product rises alternative products are sought and demand is choked off. But since both tobacco and fuel, for example, are in their own ways essential with few if any substitute goods available, the result of any price increases caused by tax rises is that black markets and resentment grow up (as the state capitalist regimes in the former Soviet bloc found out). Recently the government has had to increase the amount of money spent on enforcing tobacco excise duty, which has eaten in considerably to its taxation gains. Likewise, the fuel increases resulted in last year’s national blockade and protests. Despite the tantalising promises of politically safe revenue for governments, there are limits to the amounts that can be levied through excise duties.

The reality of the government’s position is that the state is effectively a tax-farming business, and like other businesses, it is entirely subject to the ebbs and flows of the market. It can only raise so much taxation, from any given source and the economy as a whole, as the state of the market will bear. Given that the surplus value siphoned off via taxation is surplus value that cannot be re-invested for capital accumulation by the private sector, taxation represents a restriction upon the capitalist class. Hence, historically, high taxation has been seen as anathema by the capitalists, and much like the small-holder truckers they have organised politically to fight taxation. The amount of tax revenue the state can garner is entirely circumscribed by the needs of profitability.

State spending cannot add to the total of demand in the economy, all it can do is actuate demand, and guide it to overcome consumption problems (e.g. such as sustaining the reserve army of labour). In an economy without nationalised units of production—such as we now have—the best it can do is simply help circulate goods. Capital can tolerate the lost potential valorisation in times of plenty, but when accumulation and profitability slow, it begins to resent the resources lost to unproductive expenditure. Given that taxation has risen from about 9 percent of GDP at the beginning of the century to nearly 40 percent now, a figure that both Labour and Tories seem unable to reduce, it is clear that taxation is becoming too burdensome upon capital.

Labour’s reliance on windfall taxation can be seen in this context. Rather than increase current and general spending which the state will have to sustain in perpetuity, Gordon Brown has chosen to spend large sums on special projects, such as the “New Deal for the Unemployed”, by grabbing the £3 billion “Windfall Levy” from the recently-privatised utilities: a targeted tax which did not affect capital in general, and which did not represent an ongoing drain of surplus value. Likewise, the Chancellor benefited enormously from the sale of the mobile phone frequency licences—a cool £21 billion which can conveniently be accounted as taxation spread throughout the duration of the licence, whilst still being liquidity in the state’s hands.

War chest

Brown’s careful application of taxation, as well as some luck with the economy which has been at the high point of the business cycle, has left the government with a budget surplus, the infamous war chest. Although some money is likely to be spent to create the appearance of a give-away in the March budget, the statements of the government seem to suggest that this surplus will be held to hedge against the next downturn in the economy.

This would be consistent with the government’s whole strategy. Their taxation policies have largely been the usual fare from left of centre social democrats since they all abandoned overt Keynesian practices. What little effect its minor tinkering and readjustments of poverty have, it is always entirely within the scope and allowance of the ongoing workings of the market, and entirely devoid of any capacity to control the economy at a macro level.

Like a ragged, has-been stage magician, the government must keep on performing its budgetary tricks to give the appearance of doing something—anything—to keep hold of some sort of interest in its audience. Taxes go up, go down, and are moved from place to place in a blinding game of find the lady. Underneath it all is a watered-down version of an old illusion—the illusion that the state can control the economy, can direct its course, by playing around with its tax structure. That the act remains the same, time after time, will not stop the show, since the has-beens refuse to stop. They need booing from the stage.

Pik Smeet

50 Years Ago: Socialism on the state? (2001)

The 50 Years Ago column from the March 2001 issue of the Socialist Standard

We are not concerned with discussing the relative merits of state or private ownership in any particular industry, or in general. The basic features of capitalism remain the same in either case—the relation of buyer of labour power to seller, with the propertyless and poverty condition of the latter.

Those workers who expected a better deal from the state than from private employers have been, and are being sadly disillusioned. In rejecting claims for pay increases for railway workers Mr. W. P. Allen for the Railway Executive, recently told a Court of Inquiry “It is possible that far too many of those in our employ expect far too much from nationalisation far too quickly.” (The Star, 8.1.51).

As time goes by it is becoming increasingly clear that the interests of the majority of people cannot be served by any group of leaders who profess to be “on their side” any better than those who avowedly rule them. As Gordon Rattray Taylor puts it, “workers in nationalised industries are slowly waking up to the fact that they have only changed one kind of master for another.” (Are Workers Human?, p.18).

To those who voted Labour last time in the belief that state ownership holds out a solution, or even a step towards it, of their problems we say—profit from your mistake. The only prerequisite to a good life is your understanding its highest expression—a socialist world.

(From article by S. R. Parker, Socialist Standard, March 1951)

Indian Earthquake: Did it really kill? (2001)

From the March 2001 issue of the Socialist Standard

In January, a 42-day long Indian religious festival began at Allahabad, 500 miles east of New Delhi. The Kumbh Mela attracted over 70 million Hindu pilgrims and believers, the largest gathering of humanity in history. Around one million “holy” men trekked from their remote hideaways in caves, forests and walled ashrams to be there, some revealing acts of devotion which along with the more traditional maintaining of absolute silence and sleeping on beds of nails, has included hanging upside down over smouldering fires, sitting under pots of dripping water, standing on one leg for years, staring at the sun for long periods, keeping arms permanently raised until they atrophied and in pursuit of total celibacy, having their penises enclosed in cages or fitted atop with iron rings. Such penances apparently bestow special powers, as demonstrated at the festival by the pulling along of heavy vehicles by sacred John Thomases. On one day, 24 January, over 30 million Hindu followers plunged joyously into the River Ganges to gain salvation, immortality and miraculously wash away their sins and diseases. According to the stars, this particular day had been determined to be the festival’s most auspicious time. And how did the Hindu gods respond to this immense display of spiritual faith, devotion and self-punishment with its high point of a mass dip in “sanctifying” waters where devotees prayed for “Mother Ganges” to bless them? With a 7.9 Richter earthquake just 48 hours later devastating Gujarat and killing over 30,000 people.

According to a Naga priest “bathing in the Ganges will accelerate the road to illumination”, so one might expect that following this disaster, a great many people will now stop believing in ridiculous fairy tales about divine nectar of immortality having spilled from a Kumbh (pitcher) into the confluence of three rivers (one invisible!) and thereafter becoming active every 12 years. Dedication and respect by humankind should go towards humankind, not any supernatural being or phenomenon which even if it did exist, manifestly has no inclination or ability whatsoever to prevent death, disease, poverty, hunger, exploitation, wars and numerous other everyday troubles. If thought of as an earthquake from god, and conveying a message, then it would be loud and clear: if the living want to go on living and be free of such horrors and suffering, they should forget all about religion, and act to look after themselves. Something applying as much to India’s Muslim minority who were soon praying to Mecca amidst the quake’s dead, dying and devastation, as it does to the Hindu majority.

If people let others deceive and persuade them into giving priority to belief in an almighty being, life after death and acceptance that loss of life and suffering from natural forces, conflicts, authoritarian control, hard work and the like are the will of god, then those religious leaders and governments claiming to be god’s Earthly assistants possess immense power, freedom to exploit and abuse that power and immunity for social failings. Such extreme influence, class privileges and infallibility explains why religion has existed for thousands of years and continues into the twenty-first century. But if those seeking to brainwash and manipulate us—and young impressionable minds especially—are rejected, and people instead give priority to looking after themselves and their needs collectively through socialism, then we prevent religious leaders from ruling and ruining our lives, along with political, military or any other type of would-be chiefs.

Reality

The reality with earthquakes is they kill only if we let them. They are inevitable, but death is not. It is collapsing buildings that take lives, not tremors in the ground. Throughout the animal kingdom, creatures have adapted to survive in their surroundings, but in our environment, where earthquakes are a fact of life, though nature challenges us to do something to protect ourselves, capitalism compels us to surrender safety to monetary profits and savings. No matter how severe earthquakes are, if buildings were properly built in the first place, then the vast majority of people would survive. This does not happen under capitalism, particularly in poorer countries, since the unavoidable pressure to make and save money affects what does, or more importantly, does not happen. There are pressures to build quickly and slapdashly to meet housing needs by landless labourers forced by poverty to find work in urban areas; inferior materials and construction methods are used in accordance with market forces, with poor people getting poorly-built homes; building inspectors are persuaded by politicians or back-handers to ignore breaches of rules so that businesses get the cheap employees they want and workers get hovels they can afford; landowners lobby governments, hand over party “donations” or resort to simple bribery to have new housing built on their land, even if it is unsuitable or downright dangerous; Mafia groups will drive away more legitimate building constructors. With, moneyless, socialism all such potentially lethal activity is avoided. Human needs and safety come second to nothing.

Even in rich countries like America, money can degrade safety. Multi-storey housing and office premises reach high into the sky despite earthquake risks because maximum profit comes from maximum exploitation of available ground. That means tall buildings crammed with residents or employees of capitalism’s banks, insurers, law firms etc, but high casualties if a major quake brings them down. But even where structures are well-built and designed to withstand quakes, it is usually because owners have decided that far more money would be lost than saved should damage arise from poor construction work or non-adherence to building codes. It might be said that the Japanese earthquake at Kobe in 1995 was an example of economic failure in weighing up money saved to potential losses. At $100bn, it was the most expensive “natural” disaster ever with 6,400 lives lost and 300,000 people made homeless. However, if the cost for achieving maximum safety and structural endurance had been $500bn, then Japanese capitalists acted “correctly”, and the dead were a “price worth paying”. The point is that where residents or workers find they have better survival prospects in better buildings; with capitalism, it is often more incidental than intentional.

Though seismologists don’t know precisely where or when earthquakes may strike, general areas of risk are identifiable. In a socialist society, how we respond to this information would be very different. There would be far greater freedom for those in danger to move to safer areas—action under capitalism that can involve huge financial losses from writing off unsafe homes, shifting businesses to where workers then live, adapting that region’s infrastructure to aid in exploiting the new workforce etc. And those who, for whatever reason, chose to reside in seismic zones, they would then have access to the best buildings capable of withstanding the most powerful of quakes. Although Japanese and Californian architects have designed “active buildings”, some on top of massive rubber shock absorbers or with computerised counterbalancing systems that identify and counteract seismic shocks, what’s the likelihood of such sophisticated technology being used under capitalism on multi-storey dwellings in poverty-stricken areas for workers on subsistence wages? And whereas with capitalism it is nuclear submarines, military satellites, stealth bombers, tanks and the like which get “properly” designed and rigorously tested beforehand to prevent any failures when they’re built in bulk, with socialism such diligence would then be applied to endangered homes and workplaces. Using superior designs, building methods and materials, there is no reason why populated areas should suffer any loss of life or major disruption after experiencing very powerful quakes.

Avoidable catastrophes

In a united socialist world, people would be able to move in large numbers if necessary to completely different regions of the world without any of today’s “them” and “us” animosity and violence created by capitalist exclusive assets, property rights and market-supporting politicians, as witnessed world-wide in places like Northern Ireland, the West Bank, Kosovo, Rwanda etc etc. Not forgetting India’s own continuing divisive caste system with “untouchables” lowest down, ranked as society’s toilet cleaners, 8,000 of whom were employed as “turd pickers” at the Kumbh Mela festival. India’s divisive internal Hindu-Muslim tensions which left thousands dead in riots when Hindu zealots destroyed an ancient mosque in Ayodhya in 1992, and which may soon erupt into further bloody confrontation if a planned new Hindu temple gets built there. And the on-off divisive dispute with Pakistan over Kashmir, a struggle that could claim many times the 26 January death toll in less than the short while the earthquake lasted, thanks to both sides’ possession of nuclear weapons.

We have access to more comprehensive information and news coverage about world disasters than any previous generation of humans, and yet it appears that people don’t feel driven to bring about an end to such catastrophes. Some may be moved to send money to charities or hand over old clothes and blankets, while others are assumed to have compassion fatigue. So why no sizeable political activity for real progress? It seems our society has been influenced to believe that nothing can be done. That big death tolls from quakes, famines, droughts, conflicts etc are inevitable. What efforts do schools and the media make to change this, by explaining both capitalism’s culpability and socialism’s solutions? If people don’t understand, then all there will be are yet more generations of children brainwashed on how to obtain “suitable” employment and use money, and endless TV reports of global tragedies, quickly downgraded by ratings concerns for the next show-biz marriage break-up or rich person’s demise. Brief public interest at best, or channel-changing “Not-another-disaster. There’s-nothing-I-can-do-is-there” indifference at worst. Of course, that suits capitalists and politicians just fine, but it’s only a matter of time before those far-away populations that we feel incapable of helping now will themselves one day be shrugging their shoulders while watching pictures of immense death, destruction and suffering in our part of the capitalist world. A major disaster is heading our way, and the only way to stop it is through widespread realisation that human needs can and must be prioritised, and collective political action for the social change that brings that about.

Max Hess

World View: The politics of poverty in Zambia (2001)

From the March 2001 issue of the Socialist Standard

We are approaching the 2001 presidential and general elections and the political situation remains tense. Unemployment, poverty and the lack of viable education and health care has bred outright social discontent and resentment throughout Zambia.

President Frederick Chiluba’s MMD government is still in power and commands majority support in Parliament. The opposition parties remain weak and unable to capture a national consensus, because political allegiance in Zambia is determined by linguistic and tribal affiliations. Thus many of the opposition parties are little known in other provinces or areas. The only notable opposition parties are the UNIP, the Republican Party and the National Party for Democratic Development.

UNIP, after the retirement of Kenneth Kaunda from active politics, is embroiled in a leadership fiasco and stands a slim chance to command a large following. UNIP has a strong regional support in the Eastern province. The Republican Party, led by the local tycoon and former MMD party stalwart, Ben Muria, has a large following in the Copperbelt and Wapula provinces. The National Party for Democratic Development is led by former LONRHO group chairman in Zambia, Anderson Mazoka. This party has managed to scoop a number of parliamentary seats, mainly in the Southern and Western provinces. Its regional base is the Southern province.

An analysis of Zambia’s political scene reveals that the opposition parties have come to concentrate their election campaigns in the Copperbelt Province, especially in Kitwe. This is because historically this province has come to play a dominant role in Zambia’s domestic politics. The mining town of Kitwe is the hub of the copperbelt, inhabited by a vocal and politically aligned working class population. In this semi-industrial and mining town political consciousness and social discontent seem to be expressed more than anywhere else on the copperbelt.

The demise of the copper-mining giant ZCCM has had a marked impact on the commercial and industrial sector in Zambia. Economic development of any kind in Zambia depends upon the export potential of Zambia’s mono-copper-mining sector. Thus the privatisation of the copper mining industry has entailed the loss of revenue to the government. There has occurred a startling decline in overall commercial and industrial production in the copper belt mining towns.

The working class on the copper belt have been subjected to untold misery. The public sector has shed its labour force while those who have remained in active employment receive salaries in arrears and work under shoddy conditions. Privatisation of the public and commercial sector has led to widespread unemployment in Zambia. The surrendering of city council housing units to people paying rent to themselves has deprived the city council of revenue and thus led to a decline in community welfare.

The sale of the council houses was a presidential directive and thus political. But the future consequences were not taken into consideration; nor could these consequences be corrected by the government. Urban cities have been turned into villages overnight, characterised by social poverty, child malnutrition and squalor. This voluntary creation of slum townships is a new development in Zambia and has led to the frantic manoeuvres of President Chiluba to retain a large following.

The city townships have been turned in havens of social poverty. Because those who have purchased council houses cannot go back to rural areas when they retire, this tends to have a marked pressure on land in urban areas. Most of the retrenched working class population remain restricted in the townships, where they engage in household commercial activities of one kind or another. The unpaved roads, unlit streets and unmaintained water and sewage systems means that life in these townships remains hard and unbearable.

In an economy characterised by endemic social poverty and unemployment the MMD government is concentrating on handing out hefty amounts of money through well-timed presidential donations to needy members of society. But this is a naked political campaign gimmick which has brought rebuke upon the MMD government and tarnished the charismatic status of President Chiluba. Recently in Kitwe’s Mindolo township a Catholic priest turned down the presidential donation of K10,000,000 from the MMD Member of Parliament for Nkana constituency. It was an incident that shocked and which had never happened before.

Because the MMD government is heavily funded by mining investors like the Anglo-American Corporation, the opposition political fraternity stands a little chance to compete with the MMD in terms of campaign expenditure. Nor does anyone need to be told what purpose the colossal sums of money realised from the sale of privatised para-statal firms has been used for. If the MMD government is unable to find funds for expenditure on education and health, from where does the president get the money he hands out in donations? The widely publicised calls for a third term of office for President Chiluba are merely designed to create an image of his popularity and thus win the confidence of the overseas private investors, since, legislatively, Chiluba cannot stand for a third presidential term.

In its political composition the MMD government retains its linguistic and provincial allegiances as a party of the Wapula province. Linguistic and provincial allegiances determine the strength and popularity of every political party in Zambia. Thus tribalism acts as an impediment to multi-party politics in Zambia, and political domination comes to depend upon the entrenched historical pattern of linguistic and cultural complexities. Political consciousness is more pronounced among the relatively educated and working class in urban areas, more so than among the backward and static rural traditional societies.

Because the MMD is the ruling party, the large following it can command must be attributed more to curiosity than to sympathetic support as such. A large number of people flock to MMD political rallies just to have a glimpse of President Chiluba. But every politically conscious Zambian is aware that the MMD government has disastrously failed to resuscitate Zambia’s ailing economy.

Kephas Mulenga

Zambia

The biggest rogue (2001)

Book Review from the March 2001 issue of the Socialist Standard

Rogue States: The Rule of Force in World Affairs. By Noam Chomsky, Pluto Press, 2000.

Over the years, Chomsky has been described in various ways: as “the medic trying to cure a national endemic of selective amnesia”; as “the most dangerous man in the US”; as “the little boy who told the emperor he was naked” and, more recently by the New York Times, as “an exploder of received truths”. In this, his latest book, we find Chomsky very much living up to this long-standing reputation.

It is often said that if you’ve read one Chomsky book, you’ve read them all, which is perhaps true in so far as he is a relentless critic of US foreign and domestic policy, sinking his teeth deeper into the same old foe like a vengeful rottweiler with each new publication. Rogue States is no departure from the norm—it’s Chomsky doing what he does best.

Through skilful analysis of internal documents combined with historical context, a meticulous scrutiny of the activities of the US State Dept and a thorough gleaning of the quality broadsheets both sides of the pond, Chomsky again sets himself the task of gauging the US and its allies by the standards they use as justification for the interference in the lives of others.

The Balkans, East Timor and Colombia come in for close scrutiny in separate chapters which reveal the extent of US collusion in the ongoing misery there. In Kosovo, observes Chomsky, the US “has chosen a course of action that undermines—perhaps destroys—promising democratic development”. The Clinton regime’s praise for Colombia as “leading democracy” is stringently challenged by Chomsky. Citing Colombia’s human rights record as one of the worst in the world, Chomsky provides ample proof that the Clinton/Blair doctrine of “new humanism”—the self-styled “historic mission of bringing justice and freedom to the suffering people of the world”—is a total sham. Colombia, notorious for its state terror, produces 300,000 refugees and 3,000 deaths per year at the hands of its security forces, yet is presently the biggest recipient of US military aid in Latin America. The same favoured nation status is reserved for Turkey, whose security forces, in their persecution of the Kurdish people, have destroyed 3,500 villages and created three million refugees. Meanwhile, the US is keen to promote the redeeming qualities of resource-rich Indonesia ahead of the political fate of East Timor at the hands of the former.

Chomsky further reveals the US to be wholly contemptuous and dismissive of UN resolutions and the United Nations Declaration of Human Rights it helped to bring into existence and to be severely lacking in any credible justification for its policies beyond its own borders. In the regard, Chomsky further highlights the US passion for free trade, pointing to the developing countries compelled not only to accept US cigarettes and other drugs and commodities but also to advertise them under threat of trade sanctions.

Sanctions and indeed debt “is a very powerful weapon of control” says Chomsky, with half the world subject to US unilateral sanctions, a cruel form of economic coercion condemned repeatedly by the UN. In a chapter on the paranoiac US relationship with Cuba, Chomsky reminds us that Cuba has suffered 40 years of embargoes—the longest in history, and in spite of two-thirds of the US population opposing the sanctions and in breach of WTO rules, all of which is dismissed with the defence that Cuba is a threat to US national security.

Though this can at times be a hard-going book for the uninitiated, the mountains of information make it an indispensable reference work and guide to the methods the powerful use to further their own interests to the detriment of so many. It is moreover an invaluable tool for deciphering the rhetoric the powerful use to rationalise their excesses.

John Bissett

Correspondence : What is our attitude toward the Communist Party? (1921)

Letter to the Editors from the July 1921 issue of the Socialist Standard

Mr. Mosley, of Gedling, Nottinghamshire, writes appreciatively of the "S.S." and asks some questions. He says he could ask more. We invite him to send them along. Our editorial staff work under certain difficulties, but all questions are considered and dealt with as soon as circumstances permit.

Oar correspondent's chief question is: What is the S.P.G.B.'s official attitude toward the recently formed Communist Party of Great Britain? The answer is: One of opposition. The reasons are as follows :

The Socialist shows that the master class are able to maintain and continue their rule in society because they control political power. The centre of this power is Parliament. Here the laws are made and the forces (Army, Navy, Police, etc.) are authorised and supported for the purpose of enforcing those laws, the wishes of the master class. This political power is placed in the masters' hands by the workers, as the latter possess the majority of the votes. At every election the candidates depend upon receiving a certain number of votes in every area before being elected. Except for two or three special constituencies the workers have the majority of votes in every area. Hence the necessity for the masters to obtain these votes either for themselves or for their agents, at each election.

Once in control of political power the masters can crush any attempted use of force by the workers, whether such attempt be through economic organisations or secret societies.

The only solution in line with the facts of life around us is for the workers to use the franchise to obtain political power for the purpose of achieving their emancipation. Equally clear is it that, until a majority of the workers understand their slave position and desire to alter it, they will allow the masters to continue to rule by voting them into control of political power. Hence the stupidity of fancying that an "intelligent minority" can carry through a revolution.

At the moment of writing the Communist Party have not published a constitution of their own, but as they are affiliated to the Third (Communist) International, obviously they accept the conditions laid down for joining that body. Among those conditions are the following:

  4. A persistent and systematic propaganda is necessary in the Army where Communist groups should be formed in every military unit. Wherever, owing to repressive legislation, agitation becomes legally impossible, it is necessary to conduct such agitation illegally. Refusal to carry on, or to participate in such work, should be considered a treason to the revolutionary cause and incompatible with affiliations to the Third International.

Apart from the fact that it is impossible to organise the working class secretly, there is no country in the world that allows of the formation of such groups in their fighting forces. Hence the above conditions are ordered to be applied in all countries quite irrespective of the conditions prevailing there, and of the means of propaganda that may be available in any of them. In backward countries, countries of low economic and political development, such methods may be useful, but that is a point to be settled by the people in those conditions. In countries where there is an easy, simple, safe means of seizing full power ready the hands of the workers (i.e., the franchise)—and this exists in all fully developed capitalist countries—to adopt the methods of the Third International is not only idiotic, but suicidal. Therefore all Socialists must be opposed to organisations that preach such futile methods in the latter countries.

Another reason for our opposition is that Socialism means the social ownership of the means of life. Hence the majority of society must not only be convinced of the necessity for Socialism before it can be established, but they must keep control in their own hands if social ownership is to continue. The Third International lays down a system of rule by oligarchy, for in Clause 12 of the "Conditions" it says:

  In the acute period of civil war the Communist Party will be able fully to discharge its duty only if it is thoroughly well organised, if it possesses an iron discipline, and if its executive enjoys the confidence of the party members, who are to endow the Executive with full power and authority.” (Italics ours.)

This is exactly the claim of all the misleaders of the working class, from the Tory politician to the Labour leader. "Trust us," they say, "we will look after you." To give "complete power and authority" to any individual or group is to give them something they can and may sell to the enemy. The only safeguard the working class has in its fight for emancipation is to keep control and power in its own hands. Executive committees, organisers, officials, etc., paid or unpaid, must all be servants of the working class, taking their instructions from, and carrying out their orders under the control of, that class.

The policy and method of Communist Party being thus shown to be in direct contradiction
t to Socialist policy and methods, the Socialist organisation must be in opposition to the Communist
 Party.

Ed. Com.

The “Plebs” Again (1923)

From the May 1923 issue of the Socialist Standard

Our exposure of the ignorance of the “Plebs” magazine editor on currency questions has driven that individual to various shuffles, as each attempted excuse has been shown up.

In the February issue of the “Plebs,” our article in the December issue of the Socialist Standard is referred to, but not a single attempt is made to deal with the facts of that article.

While carefully avoiding our proof that prices had risen before any alteration of the currency had taken place—which one fact completely disproves all the rubbish about “inflation raising prices”—he tries to misrepresent our case by, saying in reference to our figures :—”Therefore, it is argued there was no inflation of currency relative to prices.”

As the “Plebs” had stated that “inflation of currency had raised prices,” and as we proved that prices had risen first (thus knocking their whole case to pieces), it is easy to see how they are driven to misrepresentation in the attempt to hide the collapse of their case.

More ! Despite our repeated exposure of the falseness of their claim that “inflation had raised prices,” they repeat the same lie in their attempt at a definition of inflation. Their statement is that inflation “simply means an expansion in the volume of currency leading to a rise in prices,” and the editor adds, “And the figures in the Socialist Standard merely go to show this.”

As our figures proved exactly the opposite, the statement shows the contempt the editor of the “Plebs” has for his readers when he can write such a brazen lie. 

Not only so, but his so-called definition smashes his own case. Our figures proved that the rise in prices preceded the expansion of the currency. Therefore, the expansion did not lead to a rise in prices; and, therefore, there was no “inflation,” according to the “Plebs'” own attempted definition . In other words, the “Plebs” has given up its whole case.

Once again, an endeavour is made to save a plank from the wreck by stating that the Socialist Standard is wrong about convertibility, as “There was only nominal convertibility.” We quoted the Act of Parliament. The “Plebs” dare not touch that point. The matter, however, is placed beyond all dispute and cavil by certain facts.

Thus, to take an illustration, in 1919 a couple of private individuals drew out 110,000 sovereigns, weighing more than 18 cwt., from the Bank of England, in exchange for Treasury Notes (see Daily News, 28/2/1920).

If the changing of Treasury Notes into sovereigns to the extent of nearly a ton is only “nominal” convertibility, it would be interesting to know what is “real” convertibility !

There the matter may rest. Not one of the facts, figures, or arguments of the Socialist Standard on this question has been met or touched by those who, either from ignorance or fraud, have supported the capitalist lie about “inflation raising prices.”

Jack Fitzgerald

Wood for the Trees: The Art of Cynicism (2020)

The Wood for the Trees Column from the March 2020 issue of the Socialist Standard

Those who might be unaware of it can be confidently assured that we live in a ‘Golden Age of Rock Music’. The music of bands like: Disturbed, Ghost, Godsmack, Rammstein, Epica, Kamelot, Nightwish and Band-Maid represent my evidence for this. The last two bands have released new singles that have rekindled the old debate between the cynical and the hopeful. Some see Nightwish’s Noise and Band-Maid’s The Dragon Cries as merely profiting on the environmentalist zeitgeist whereas others hope that these tunes represent the political integrity of the respective bands and will help create political change. Obviously these videos and the music that they promote are extremely costly and can only be made within the capitalist context because they represent a commodity that will, for the investors, sell at a profit. However this fact, beloved of the cynics who choose to believe that nothing will ever change, does not exclude the possibility that the nature of that commodity might itself become subversive of the system which helped create it. Change, for good or ill, is inevitable and we can ask what role music and the arts play within our culture’s restless history.

Nightwish have a long track record of using their music to communicate a political perspective. It is only recently that this Finnish band, courtesy of the internet, has started reaching a global mass audience. They have become commercially powerful enough to only create the music that they want to make rather than bow to the commercial pressures incarnated by studio execs, producers and owners of record companies. The Japanese Band-Maid, although very popular with the rock cognoscenti online have not reached a similar stage of commercial ‘independence’. Their single The Dragon Cries is their first overtly political song but because it was produced in the USA and is sung in English some suspect it of cynically exploiting the environmental and political concerns of its intended youthful listeners. What is beyond dispute is the quality of musicianship that produces the aesthetic catharsis so essential to great rock music (or any art form). Another possible avenue for a cynical critique is the appearance of the band. They wear doll-like house maid uniforms which emphasize the extreme feminine quality of many young Japanese women. Again whether this is purely a commercial decision to attract male audiences or whether it represents an intriguing antithesis to the macho posing and costumes of the traditional purveyors of heavy rock music is debatable. If we like a band we feel the need to defend it against criticism, whether justifiable or not, but is it necessary or important to do so?

Art, as with all concepts, is full of dialectical contradictions; it can serve the powerful or it can subvert their power. It can also, if it’s any good, contradict the intentions of the artist through the interpretation of its audience. Born in the USA by Bruce Springsteen became, famously, an anthem for patriots despite the composer’s opposite intentions. In his effort to communicate with a global audience Bob Marley, according to some, sold his soul to Island Records. Art seems quickly to become independent once it leaves its creators hands. We use the word zeitgeist to emphasise this phenomenon in an attempt to understand why some art becomes iconic whilst other art, despite being of equal aesthetic quality, drifts into historical obscurity. Of course without the artist, recording technology, capital investment, the internet etc. we wouldn’t have any art to discuss but although the motivation, inspiration and integrity of those concerned in its creation is intriguing it is not the most decisive factor in the political and historical fate of any work of art.

In America the music of Jimi Hendrix, Marvin Gaye, The Doors and Creedence Clearwater Revival all fed the anti-Vietnam War zeitgeist that helped to end the conflict. The music of James Brown, Gil Scott Heron, War, the Temptations and Harold Melvin all strengthened the Civil Rights movement in the US. Not that this represented the cause of any political improvement but it would be foolish to deny that it helped create a cultural background for change. Perhaps the reason that we see such a flourishing of rock music is because of another surge of political discontent? Another irony is that many of these bands no longer come from rock’s birthplace (the USA) and oppose its economic and cultural imperialism. The German band Rammstein have said that they will never use English in their lyrics for this reason. Ironically seventy years on from the end of the Second World War we see a young band from Germany’s old axis ally Japan having to make the decision of whether to confront (like Rammstein) the contemporary icon of capitalism and its destructive values or try to subvert it – that is if they do indeed possess the political integrity one might wish them to have. It has always been challenging to believe that those with extraordinary talent might have no moral integrity or political good will and would sell themselves to the highest bidder but, to misquote the lyrics of another great rock band, ‘we’ve all been fooled before’.

Wez.

Editorial: Russia: Revolution and after. (1905)

Editorial from the February 1905 issue of the Socialist Standard

The entry of Russia into the stage of machine production and international commercial inter-communication made it essential that there should be a limitation of the aristocracy which had hitherto dominated that empire. To engage in competition for foreign and neutral markets with other commercial countries rendered it necessary that the press should be removed from the censorship of the ruling class, so that the widest publicity should be given to matters concerning commerce; that education should become more general, so that the worker might become a more efficient machine minder; that freedom of contract should be exhibited in all trade relations between merchants and manufacturers, so as to secure equality of competition.

With an autocracy interfering in all matters, private or public, these freedoms desired by the middle-class could not be secured, so that it was but a question of time how soon the growing middle-class would seek to secure political power for itself. This could only be obtained by the establishment of a constitutional government, either of the republican or of the monarchical form.

Against this desire the autocracy exercised all its powers. The knout, the mines, Siberia – these were some of the powers they used, and used mercilessly. As a result the agitation of the middle-class was driven below the surface. Secret societies, Nihilists societies were but the expression of the objects of the middle-class. True! they sometimes had the support of working men, but it was nevertheless a middle-class movement. The members were mainly from the commercial class, the professions, the students at the universities. These formed the centre of the movement. Any support they received from the landed aristocracy, or from the uneducated working masses, was of minor import.

At the same time that this movement was going on, taxation in Russia was excessive. The autocracy, knowing that its only hope for the maintenance of its stability was imperial aggrandisement, carried on wars against the weak and incoherent races of Asia, built railways at immense cost for the furtherance of those warlike designs. The ruling class, financially corrupt, and financially bankrupt, carrying on their schemes with borrowed money, found it necessary to levy heavy taxes to pay such portion of the interest of such borrowed money as was not itself paid with the borrowed money.

The result was great distress among many of the trading sections of the community, and among many of the members of the agricultural communes. The Mir, instead of being a commune carried on for the benefit of its members, was maintained as a machine for facilitating the collecting of taxes.

The distress was greatly augmented by the war with Japan, and recently hardly a week has passed without hearing of men mutilating themselves to prevent their being taken as soldiers, of wholesale emigration from Russia, of murders of governors of towns and provinces.

The working-class, too, – that class which has to carry on the battles of its masters – began to manifest signs of unrest. Strike has followed strike in all parts of Russia. The desires expressed have been for economic and political reform on the part of the workers, for political reform on the part of the middle-class.

In order to gain those desires a large number of the discontented wished to make a peaceful demonstration before the Winter Palace at St. Petersburg. These were no revolutionists! They did not belong to Socialist Societies, nor did they believe in Socialist principles! They were but unlettered working men with middle-class leaders, who believed that the Czar – the father of his people – had but to learn of their wrongs to redress them.

Poor misguided workers! Foolish you, to believe that you could gain redress except from among yourselves. A ruling class whose interests are opposed unto yours will do nothing for YOU. You must emancipate yourselves.

This lesson taught the workers in many countries, had yet to be learnt by the Russian working-class. They had not sufficiently learnt that in other countries the military was a weapon used to quell strikes. Men and women shot down in Milan and Turin during the grain riots, when Leiter tried to corner the world’s supply of wheat; men struck down in the recent general strike in Italy; innocent men shot down in Featherstone; gunboats sent to Hull during the dock strike, and to Grimsby, and soldiers to Penrhyn during the strike there; martial law declared in Colorado; men tortured to death in the Monjuich Prison at Barcelona; Pinkertons used to shoot down the strikers at the steel works of Carnegie at Homestead; strikers bludgeoned in the streets of Rosario. Everywhere the same civilised methods have been used, and will be used, when the workers strive to endanger the stability of commercial society by securing a greater quantity of the products of their own labour for their own consumption.

Now this lesson is being taught in autocratic Russia, as it has been taught in Monarchical England and Republican France. Hundreds of men, women and children have been butchered in the streets of St. Petersburg. In other centres, too, a like answer has been given to the demands of the workers. The class struggle manifests itself clearly, and what will be the result in Russia? We fear that the result will be but the victory of the middle-class. The Constitutionalists in Russia in 1905 will, like the Liberals in England in 1831, and the French middle-class in 1789, 1830, and 1848, use the working-class for their own ends, and then throw them over. The Russian worker is, we fear, too illiterate to understand clearly his own class interest, and will, therefore, need years of education before he takes his place with the vanguard of the international working-class revolution.

We think the result will be the disruption of the Russian empire into middle-class republics. Although to-day the revolutionaries in Finland will join with those in Poland, or Lithuania, and in the other Russian provinces in the same way as middle-class and working-class will combine in opposition to the ruling class, yet no sooner will they have achieved their victory, and desire to carry on the constructive work of government then all the disharmony of jarring interests will be manifested. Then, too, one section of the vast empire will be found more advanced than another, and agreement will be obtained only by separation.

Be this as it may, it is for the Russian Socialist, as for the Socialist everywhere, to recognise that it is for him to carry on his propaganda. He must use every phase of the movement for the furtherance of his ideal, always remembering that neither the rule of the Zemstovs, nor of any other middle-class government, will mean emancipation for him from his economic bondage. His hope must be in propagating his principles, in making capital out of every mistake of his enemies, in organising the workers to seize hold of the reigns of government, in teaching them how best to use that government when they have it in their possession.

Whether this should be now, or should be later, they should clearly recognise that the best wishes of the international Socialist movement is with them, for the victory of the Socialist movement in Russia will be a victory for it everywhere, and would lend fresh hopes, and give fresh incentive to their comrades throughout the world. The interests of the workers of all countries are the same – the establishment of the Socialist Republic.