People before profits? (2010)

Book Review from the March 2010 issue of the Socialist Standard

People First Economics. Ed. David Ransom and Vanessa Baird, New Internationalist Publications .2009.

Here is a book with contributions from twenty or so well-known writers, economists, politicians, activists and professors; inspiration for readers who seek to be part of a 'fairer world’. In one way or another all the contributors succeed in pointing out major flaws in the capitalist system and all have their ideas on how many things could be improved to work better for more people. Recurring themes include restructuring the tax system, transparency in the tax system, putting an end to corporate tax dodging, closing tax havens, prosecution of the guilty, cancellation of Third World debt, protection of the environment, reducing inequalities, investing in sustainability. I don't recall an example of a call for a non-capitalist alternative, just adjustments although some of them quite major.

A former derivatives trader possibly overcome by guilt or remorse reveals the predator/prey relationships in banks and finance companies. 'Replacing the interest-based money system is the critical struggle of our time. It is not a system we can reform. We must simply defeat it because if we don't it will defeat us.' How it will be possible to defeat the interest-based money system is left open to conjecture but as he reveals in his article no-one was interested in taking up his new 'debt-free' home finance product because debt expansion is more profitable than debt reduction. He is listed as a financial adviser.

Other suggestions are to regulate and control, to put social services back into the hands of communities, away from the market, to use local currencies, to expand the commons and to share the common wealth. The closest we get to a socialist alternative comes from Nicola Bullard, an Australian researcher, campaigner and writer with 'Focus on the Global South' who reminds us that Marxists (and some others) agree that capitalism destroys nature and alienates society but that the main objective of the G20 is to put it back on its feet again after the recent 'crisis’. Her way forward is three-fold: expand the common good by decommodifying goods and expanding open-source; cool the planet by using appropriate agricultural methods, and share the common wealth – meaning a fairer sharing of profit between labour and capital, tax reforms etc. She ends by proposing that it should be possible for all to live in a system of economic production and consumption where the commons is for all and wealth is shared by all but owned by none.The chapter 'Equality is better – for Everyone', written by Richard Wilkinson of the University of Nottingham Medical School and University College London and Kate Pickett of the University of York and the National Institute for Health Research and taken as an edited extract from their book The Spirit Level: Why More Equal Societies Almost Always Do Better is interesting in its focus on various measures of well-being. What they show is that the wider the difference in monetary terms between rich and poor in any society, the greater are the problems within those societies, from rates of mental illness, teenage birth rates, prison populations, distrust of others within society, life expectancy and murder rates, which confirms that socialism (a more equal society will not be found) should be hastened and welcomed by all.

The final three chapters focus on climate change but again largely promote regulation and reform and the final paragraph of the final chapter pretty much sums up the tone of the book, 'The current movement…is an opportunity to be ambitious, to challenge the central precepts of the capitalist system at its roots and replace it with a new set of economic power relations founded on principles of justice, redistribution and collaboration' – as if to say that money can be retained but a new system can be organised around it without the negative aspects that now abound.

There are plenty of optimistic suggestions but you would have to believe that those who currently have the power – corporations, the mega-wealthy and their media and puppets in governments – are actually seeking such a wide-ranging, inclusive solution for it to have any possible chance of success. If this were the case then they would surely have already been working towards it.

Janet Surman