Enter the trading stamp
In this present world of ours, goods are produced for sale. To enable things to be sold, a whole complicated network of distribution has grown up, involving wholesalers (first, second, and the rest), retailers, hire purchase companies, credit firms, discount houses, as well as sundry other middlemen and hangers-on. Each of these takes his cut, which naturally he tries to make as large as possible, from the process whereby the articles of life find their weary way from the factory to the consumer.
Now yet another group of middlemen are trying to muscle in the trading stamp companies. They are not, of course, entirety new to this country, but so far they have not played much of a role. In the United States, on the other hand, they have become big business and some of the American firms are now invading Britain.
Arguments are already heated about whether the consumer really gains anything from trading stamps. Some observers say that he does and that it is the retailer who does not give stamps who suffers by losing his trade to his competitor who does give them. Others say that American experience shows that the consumer may benefit slightly at the beginning but that later he will be no better off because more and more retailers will go over to the stamps and add their cost to their selling prices. They allege that this has already happened in the U.S., where the net result of the trading stamp boom has been to put up retail prices to the point where what the consumer gets back in stumps he pays for in higher prices.
But all this is really beside the point. Whether the consumer gets a small advantage at the expense of the retailer, or the latter makes it up by higher prices, it only serves to conceal that all that has happened is that yet another set of middlemen has managed to get into the act, getting a nice fat rake-off for doing something which is utterly useless from the point of view of actual production.
It really amazes us sometimes the way people will dismiss Socialism as utopian, but accept all the idiocies of capitalism as normal and reasonable. Not one ounce of extra wealth is produced from the activities of the trading stamp companies; the only result is to sharpen the struggle over the profit derived from what has actually been produced.
Competition goes supersonic
Things look like moving faster than ever in the air world. And we don’t mean only aeroplanes. The prospect of lots of extra supersonic bangs before long is going to disturb more than the sleep of those unfortunate to live too close to airports. Lots of airline operators, as well as politicians, are already reaching for the tranquillisers. Everything seems ready for yet a further round of waste, muddle, and stupidity in the international air industry.
Pan-American's decision to order six Anglo-French Concords took only 24 hours to squeeze an announcement from President Kennedy that the United States were going to build an even faster plane. The staggering sum of $750 million has been mentioned as a likely cost.
The Concord venture is being supported by the British and French Governments to the tune of £75 million from each. The final cost may well be more. All the purpose of all this vast expenditure of wealth? To enable a microscopic few of the world’s inhabitants to cross the Atlantic in three hours or get to Australia in half a day.
All this against a background of waste and absurdity in which the great majority of the airline companies are already losing money and where the pace of competition is so hot that large numbers of perfectly good aircraft are discarded with years of useful life in them. So fierce is the drive for speed that many of the world's airports are no longer really capable of coping with the planes. Now all the sorry story over jets seems likely to be repeated with supersonic aircraft.
Not all the experts are happy about the new development. Lord Brabazon is one. Instead of “promoting air transport for the peoples of the world,” he has said, “the airlines have simply helped the rich to travel vast distances at very higher speed and cost.” And, he added, “A big machine carrying 200 people in comparative comfort at up to 250 m.p.h., but landing at no more than 60 knots should be safe, welcome, and pay.”
But Lord Brabazon, more than most, should know that his appeal will go unheeded. Air transport and aircraft construction are no longer the concern of private capitalists, but have become wards of the state. In general, they now make no more sense, even from the capitalist economic viewpoint, than the vast industries that have grown up to throw rockets into space. They have become part and parcel of the struggle between national groups, in which the various governments are prepared to go into all sorts of projects, spend vast amounts of money, engage in ridiculous competition with each other. They are a supreme example of the tendency of the units of capitalism to get bigger; in the air it is no longer the private capitalists that fight each other, it is their national states. Behind every aircraft company there are state subsidies, government orders, and national military needs.
No, the Concord was not well-named. Discord would have been more appropriate.
Facts about fish
A recent report from F.A.O. reveals that 1961 saw the world's highest production of fish—just over 41 million tons. This shows an increase of 10 million tons, or 30 per cent., over the total catch in 1957, but the picture is really not as optimistic as it looks.
Most of the increase is the result of a phenomenal rise in Peruvian production —of small anchovies processed into animal feed. Apart from this and "a modest rise in the Chinese catch, world production has remained virtually static. Indeed, the alarms are already sounding of a likely decrease in production as the well-known fishing grounds become depleted. The boats get bigger, their engines more powerful, and their range ever-wider, but the catch tends to get smaller. Competition has led to overfishing.
But, as usual, the paradox of production under capitalism discloses that there are still many more fish in the sea than ever come out of it; of the sea’s possible production, 90 per cent. is still left untouched. And even under present conditions. F.A.O. reckons that the total world catch could be doubled without too much danger to stocks. Today, 80 per cent. of total production is caught north of the Equator; the southern seas are almost unfished.
Capitalism will itself see to it that the oceans of the world give up more of their riches. But progress will as usual be slow and wasteful. The trawlers of dozens of countries will continue to compete fiercely with each other; will set out to fish over the same grounds; will spend useless weeks at sea, some of them, before reaching fishing areas which the trawlers of other countries can reach in a quarter of the time. There will still be disputes over international rights; over 3 mile, 6 mile, 12 mile limits; prices will still be subject to catastrophic fluctuations. Over all will remain the constant threat of overfishing.
Even in this situation, F.A.O. tries to introduce a little order and co-operation, but competing self-interests foredoom its efforts to failure. What is required is the harmonious, organised and co-operative development of research and productive techniques to provide a steady, reliable, and efficient production of food from the sea.
But we shall not get that under capitalism.
Stan Hampson
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