Monday, March 10, 2025

Instability and Corruption (1995)

From the March 1995 issue of the Socialist Standard
It is now almost universally accepted that politicians aspiring
 to positions of power do so on the failings of those already in 
power rather than on any ideas of their own. Everywhere we 
look in the world today capitalism is in chaos - and it isn't
 going to get any better.
It seems that the more capitalism develops the more anarchic the global as system becomes, with chaotic economic development in such areas as China's free enterprise zones and the mad scramble for power in the wars of Soviet succession. In the West so-called democracy just seems to lead to confusion as politicians are unable to solve basic economic and social problems. As people have not yet identified capitalism as the real cause of these problems, the latest set of incumbent politicians are blamed, as if the next lot have the magic formula.

So in France we have seen the “Socialist" government and parliamentary representatives decimated in elections as unemployment and crime rise, to be replaced by a right-wing government who in turn are incapable of solving economic problems and will probably be replaced by a resurgent left. Whilst in Italy a government elected on a specific anti-corruption ticket has collapsed through corruption allegations and a confused electorate are prepared to vote in desperation for extremist parties.

The list could go on, so in this context the convoluted events in Ireland do not seem so surprising. The fact that Ireland's electoral system, in common with much of Europe, creates coalitions means that frequent changes of government are common as partners in these coalitions squabble. In Ireland the specific causes of that squabbling in recent years revolved around the main coalition partner, Fianna Fail, and its cosy relationship with Ireland's largest beef baron and how that relationship upset the “normal” running of government business, irritating the other coalition parties.

Having already caused one general election this underlying feeling quickly soured another coalition, this time between Fianna Fail and an electorally confident Labour Party. The catalyst that broke this coalition, as everyone probably knows by now, was the inexplicable delay by the Irish Attorney General's office to extradite a paedophile priest to Northern Ireland, and the insistence of Fianna Fail to promote the very man responsible for this delay. The catalogue of excuses, blame and backbiting that ensued meant that the coalition was doomed. This bizarre story finally ended with a parliamentary coalition reshuffle excluding Fianna Fail and the introduction of Democratic Left into the coalition to make up the numbers.

Political instability and corruption seem to be endemic to governments but whatever the specific causes of each incidence of graft or dispute the general underlying cause is capitalism.

Never-ending search for profit
Capitalism as an economic system is inherently unstable for a number of
reasons.
  • It is based on the never-ending search for profits through competition, which manifests itself as rivalry between companies, regions and social and economic interest groups. Just the fact that the world is divided into about two hundred countries at the last count is example enough. The majority of them are divided again into numerous regions each with their own elites who in turn are divided into various factions due to historical, cultural or regional developments. This can only result in unequal economic development as resources go to areas of greatest potential profit or patronage rather than to areas of greatest economic need. This economic confusion and instability caused by capitalism leads to threatened or actual armed conflict between economic rivals on a grim and regular basis.
  • The economic cycle of boom and slump caused by the tendency of capitalism to over-produce during a boom and thus reduce the rate of profit causing a slump. This cycle tends to hit the most economically and socially vulnerable harder in a slump and benefit the wealthy most in a boom.
  • The division of society into two opposing and unequal classes. The minority owns the means of production and obtains profit by extracting unpaid labour from the majority who have only their labour power to sell. This fundamental difference of needs automatically results in conflict, class conflict, a never-ending, daily war of attrition that manifests itself in various ways. The most obvious is continual industrial disputes throughout every sector of the capitalist economy as workers attempt to defend or improve their economic position and are resisted at every step by the employers intent on improving their profit margins.
Thus, because the economic base of society is unstable, it is logical to assume that the social and political structure which rests on this base is also unstable. The facts prove this assumption correct. The supposed separation of powers in liberal democratic governments between the judiciary, legislature and executive, rather than acting as checks and balances on each other, are just the tools or conduits through which rival groups compete for access to power and resources. Indeed the American government, which is supposed to be the prime example of the separation of powers, can also be the prime example of a government in thrall to graft and corruption from lowly congressmen up to the President and riven by rivalry between the regions and social groups.

So what of the future? Well it's business as usual. The political theatre may provide entertainment but, as one economic commentator mentioned at the height of the crisis, who is in government has very little impact on the workings of the capitalist system. The iron laws of competition, profit and class conflict will remain as long as capitalism remains together with the disastrous global ramifications that this entails.
Jonathan Meakin

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