Thursday, February 14, 2008

Recession? What Recession?

Cut and pasted from the Socialist Courier blog


Conspicous Consumption


"If you're partial to all things bling, then a platinum and jewel-encrusted desktop PC could be just what you're looking for. Jupiter from Japanese manufacturer Zeus, features a solid platinum case studded with diamonds which, the company claims, replicate astrological constellations. The PC runs on an Intel 3GHz E6850 Core 2 Duo CPU and features 2GB of DDR 2 memory and a 1TB hard drive. The only downside is its price tag - a cool $746,000. Zeus has also launched a cheaper, gold alternative. It still has diamonds in its case and the same tech spec, but will only set you back a mere $557,284. Both PCs are available now in Japan." (PC World, 31 January)

Wednesday, February 13, 2008

Weekly Bulletin of The Socialist Party of Great Britain (33)

Dear Friends,


Welcome to the 33rd of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.


We now have 1169 friends!

Recent blogs:


  • The death of ideas?

  • Assumption and Ignorance Versus Reason and Reality

  • Upload, download, freeload!

  • This week's top quote:


    "Your Honor, years ago I recognized my kinship with all living beings, and I made up my mind then that I was not one bit better than the meanest on earth. I said then, and I say now, that while there is a lower class, I am in it; and while there is a criminal element, I am of it; and while there is a soul in prison, I am not free." Eugene V. Debs, Statement to the Court Upon Being Convicted of Violating the Sedition Act (1918).

    Continuing luck with your MySpace adventures!


    Robert and Piers

    Socialist Party of Great Britain

    Monday, February 11, 2008

    ‘Rogue Traders’ or Business As Usual?

    From the World Socialist Party of the United States website:

    The case of the ‘Rogue’ French Bank trader, Jerome Kerviel, underscores many observations about capitalism made by socialists.

    Most importantly, it shows how “social” capitalism has become. The more capitalism grows, the more connected we are to the actions of everyone else. If the accusations are true, one minor 31 year old French bank trader can cause the potential impoverishment of many. We are all tied together, and capitalist rugged individualism is an illusion. the scary fact is that while capitalism has bound us to each other, it is anti-social in it’s structure.

    This case also shows how capitalism’s operates as a big crap game. The trader purportedly lost 4.9 Billion Euros in unauthorized gambles on future stock and bond prices. Evidently he lost badly. But again, as stated above., capitalism is social even if it is structured anti-socially. So while this ‘rogue’ trader does his job by placing society’s wealth on the gambling table. Since it’s anti-social certain folks - workers - loose every time, win or lose. As the hobo folksinger Utah Phillips said in his lament on the gentrification of Denver’s skid road:
    My bookie joint closed when your cops pulled a raid,
    But you built a new hall for the stock market trade.
    Finally, we’ll observe the role of “justice” in capitalism. Scapegoat or no, the young French trader who lost Billions in wealth will likely face 3 to 5 years in prison. This sentence is similar to those in the US. But compare it to the black man in California who received a life sentence for stealing a slice of pizza. Or the case of the Native American elder who served 18 months of a 5 year prison term for selling 300 salmon. He was sentenced the same month as American ‘junk bond’ trader Michael Milliken who served 22 months on a 10 year term for 1 Billion Dollars in fraud.

    Utah Phillips again sums up the issue:
    Now I’m finding out there’s just one kind of war -
    It’s the one going on ‘tween the rich and the poor;
    I don’t know a lot about what you’d call class,
    But the upper and middle can all kiss my ass.

    FN Brill

    I'm Getting Tired Of This

    From the Marx and Coca-Cola blog:

    Another one of those kinds of stories. From The Old Grey Lady:

    "A North Dakota manufacturer has agreed to pay $2 million to settle a suit saying it had repeatedly shortchanged the armor in up to 2.2 million helmets for the military, including those for the first troops sent to Iraq and Afghanistan."

    And I bet they will never see another government contract.

    "Twelve days before the settlement with the Justice Department was announced, the company, Sioux Manufacturing of Fort Totten, was given a new contract of up to $74 million to make more armor for helmets to replace the old ones, which were made from the late 1980s to last year."

    Of course. Rip off the taxpayers. Endanger people's lives. Walk away with a net of 72 million. Sounds about right. But no one should worry:

    "Sioux upgraded its looms in 2006, company executives say, and the government says it has started inspections at the plant.

    Of course, it was the looms' fault. Fucking looms. And the government does such a good job inspecting industries that I'm sure this will never happen again. No one knows how many troops were killed or injured (lots of troops have come back with traumatic brain injuries) because of this, and I bet 74 million dollars the Pentagon won't do an investigation to find out.

    The right-wingers always like to talk about how the government should be run like a business. The free-market is the best way to deliver goods and services. Capitalism regulates itself. Blah blah blah. The truth is that when making money is more important than the actual product, corners will be cut, and quality will suffer. And sometimes people's safety will be sacrificed (actually like a lot of the time).

    On a side note, Sioux Manufacturing is owned by the Spirit Lake Nation, a Native American tribe. Native Americans serve in the armed forces at disproportionate high rates. Greed doesn't have any loyalties.

    JM

    Friday, February 8, 2008

    Capitalism Chinese-Style (2008)

    From the February 2008 issue of the Socialist Standard

    The 17th Congress of the Chinese 'Communist' Party was held back in October. It was five years since the previous one, so this is clearly not a decision-making body that determines how the party — and therefore the country — should be run. Rather it's a rubber-stamp gathering that endorses what the CCP's power-holders have already decided. The Central Committee is 'elected', but even that meets less than once a year, and it is the political bureau and its standing committee (nine men in dark suits) who really run things.

    The CCP has changed over the years. It now has over 70 million members, and another 20 million applicants for membership. The growth of private capitalism in China has led many of the wealthiest people in the country to join the party. In the Hongdou textile group, which has assets of over a billion yuan (around £60 million), all the high-level managers are party members. Another capitalist, Liang Wengen, who has a fortune of three billion yuan (£190 million), was a delegate to the congress. If private entrepreneurs can join the party, he said, it "helps to enhance the brand recognition of our company." Western companies may promote their brands by sponsoring football teams, while in China they do so by joining the 'Communist' Party!

    A new party constitution was adopted at the congress. This talks about building 'socialism with Chinese characteristics', which includes a supposed socialist market economy, i.e. "optimizing resource allocation while giving play to market forces". As the balance shifts towards private rather than state capitalism and state-owned enterprises are increasingly listed on the stock market, all pretence at any connection to Marxism has long since been dropped.

    Instead, the rich are getting much much richer. According to some reports there are over a hundred billionaires in China, while the average income is less than $1000 a year. No wonder many Chinese workers, especially in the south, are prey to the 'snakeheads' who promise good jobs and decent wages in return for a huge fee for smuggling people out of China and across to Europe. The jobs and pay are never quite what is promised, of course, but the prospect is better for many than the grinding poverty of life in China. Within China there are 120 million migrant workers who have moved to the cities to find work and yet fail to escape poverty and exploitation.

    In December, the China Labour Bulletin published a report on the workers' movement in China 2005-6 (see the following link). It begins as follows:

    "After working repeated overtime shifts for an entire month, Hu Xinyu, a 25-year-old employee at the Huawei factory in Shenzhen, collapsed and died from multiple organ failure on May 28, 2006. Two days later, Gan Hongying, a 35-year-old woman employed in a clothing factory in the Haizhu district of Guangzhou, died after working a total of 54 hours and 25 minutes (22 hours overtime) in the previous four days. A few weeks later, a senior union official publicly admitted that China's official trade union was virtually powerless to prevent forced overtime in factories across the country."

    So workers endure forced overtime in dangerous conditions while the bosses count their ill-gotten gains and flaunt their membership of the 'Communist' Party. It's still capitalism, and becoming less and less different in any way from the kind found in the West.
    Paul Bennett

    Wednesday, February 6, 2008

    Weekly Bulletin of The Socialist Party of Great Britain (32)

    Dear Friends,


    Welcome to the 32nd of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.


    We now have 1170 friends!

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  • Our enemies' friends

  • Emission Control? We have a Problem

  • Changing the system

  • This week's top quote:


    "When a firm makes a profit this means that productive factors have been properly employed and corresponding human needs have been duly satisfied." Pope John Paul II, Centesimus Annus, 1991.

    Continuing luck with your MySpace adventures!


    Robert and Piers

    Socialist Party of Great Britain

    Tuesday, February 5, 2008

    Social responsibility and Corporations (2008)

    From the February 2008 issue of the Socialist Standard
    Can corporations be trusted, or even expected, to have any social responsibility?
    Millions, billions even, are spent by corporations in PR attempts to green up their images. Not spent to improve conditions for their workers, not spent to find alternative, better methods of production less harmful to the environment, not spent to seriously reduce consumption of the world's shrinking non-renewable resources, not spent to significantly reduce pollution of the planet's earth, air and water; simply spent to present an illusion of green, caring, altruistic, socially responsible business. One may even be lulled into believing that profit is the least of their worries.

    Yeah, but – that far too frequent punctuation in what was meant to be a meaningful conversation – there are laws and regulations that outlaw trade in illegal timber and diamonds and there are agreements like Kyoto to reduce pollution and big name companies are now taking responsibility for the level of pay and conditions of their workers in the sweatshops in Indonesia and Bangladesh etc.

    Right, of course. There are laws and agreements and treaties but for every one there are loopholes. Agreements are signed and then reneged on regularly. The buck gets passed from pillar to post with elites denying knowledge until forced by public pressure to 'take steps' to repair damage done to their image. Business just doesn't work with the best interest of the majority in mind. We have to look at the raison d'être of the business world which is not to make or supply goods specifically at the behest of the citizenry, not to provide the services demanded by them. Business makes the goods and provides the services and manufactures the need. It is simply and straightforwardly to make a profit. One very simple example is the call-centre. Who do you know who would choose to sit waiting on the end of a phone with mind-numbing music and recorded apologies just to get the answer to a simple question and you know you're waiting while the company is either making money by selling you something or saving money by not employing enough bodies to answer the phones. Where's the responsibility to the consumer there?

    Yeah, but we need these products and services anyway, don't we?

    Maybe we do need some of them but many products are produced for a created market; stuff to sell to those who have enough money to be in any particular market place. Obsolescence is built in – to cars, washing machines and other electrical gear; fans' football strip needs replacing/updating once or twice a year; fashion is a must in everything, spurred on by advertising and the media, itself a smaller and smaller group of expanding mega-businesses concentrating profit and control into fewer and fewer hands; clothes, furniture, house decoration, garden decoration, accessories of all kinds, creating an unending lust for more, more, more. The other side of this is that millions of people don't have access to most of this stuff because they don't have the resources or the access to earn the resources with which to pay for them. Even sufficient food, clean drinking water and adequate shelter is beyond the reach of many. This surely demonstrates that the over-riding motivation is profit, not responsibility. There is a green-washing, white-washing, brain-washing going on constantly by corporations and their PR departments trying to keep up with or preferably to stay one step ahead of the watchdogs and activists ready to reveal their next miscalculated step.

    Yeah, but the activists and watchdogs do get some changes made . . .

    Yes, they do. However, what gains are made are more than made up for by losses in other areas. Ask the activists. Ask them and ask yourself why there are more activists working in more areas than there ever were before. Slavery was abolished generations ago but it hasn't stopped slavery and trafficking. Forcing one clothing company to stop employing children or to pay a minimum wage or to allow their workers some time off the premises or even to accept that these are areas of their responsibility, not just of their sub-contractors' doesn't address the fundamental issue of general social responsibility. 'Social responsibility' and 'environmental responsibility' have become convenient screens to hide behind, theatrical masks behind which amoral, unethical pirates can continue their quest for a larger share of the world's pie untouched by the cognisance of starving millions who can't get close enough to even smell the pie. The fact is, whatever sop a corporation may deign to give, whatever concessions any number of corporations may yield, globally there are more people without work, without prospect of work, who are homeless, who are destitute – and closer to home there are more who work longer hours for less pay, who have reduced pension rights and less bargaining power.

    Yeah, but back to public pressure . . .

    Public pressure is important but to know, to be aware of what form that pressure should take is more important. Public awareness must come first for any kind of pressure to be effective. First we have to recognise that the corporations are just following their designated route in pursuing maximum profits so it's pointless complaining about them doing their utmost to fulfil their mission. If we focus on this only as a single issue then we are allowing ourselves to be sidetracked. If we truly wish to give people and the environment a fair deal we have to see this issue as one part of a much bigger whole. In this particular issue the only way to positively affect the whole production line from raw material to consumer is to remove the profit involved. By removing money from any transaction along the chain the gains will be for the environment and people's welfare. Similarly with regard to other issues (water – health / big dams / privatisation; wars – weapons and proliferation / numberless casualties; oil the far too frequent punctuation in what was meant to be a meaningful conversation conflict / environmental problems / imbalance in use of resources; farming – cash crop problems / big pharma – seed rights ownership / landless peasants; trafficking – drugs / sex / workers / babies; and on and on---) awareness of the negative effects of the money/profit system reveal that, as it's the capitalist system itself that requires this profit motive at its base to function, it goes without saying, it's the capitalist system as a whole which has to be replaced. And imagine how much more quickly that change could be brought about with the combined effort and energy of all those dedicated people around the world seeking justice and fairness for all through their single issue campaigns; how much stronger and more powerful the whole when all the separate parts work together for the ultimate single issue, socialism.
    Janet Surman

    Friday, February 1, 2008

    Editorial: Democracy Matters (2008)

    Editorial from the February 2008 issue of the Socialist Standard

    Recent months have seen power contested across the world. Brutal suppression of fledgling democratic demands in Burma were followed by blatant abuse of elections in Kenya.
    At the same time the various factions of Russian capitalism have been brazenly playing out in public their private chess game: to control the state for their own economic ends.

    Meanwhile in Pakistan, hope for "democracy" apparently dies with the assassination of an unelected political leader at the head of a feudal political dynasty. And while all this happens, in parts of the USA, voters get an early chance to pick the leader of the "free world". A choice, that is, between the $100 million presidential candidate and the $90 million candidate (with every likelihood of two dynasties being in power in USA for some 25 consecutive years).

    Closer to home, in a "mature" democracy such as the UK's, all the major parties have been pimping up their policies for drooling millionaires to purchase by means of ever-more creative accountancy over donations.

    In contrast to this shabby and sleazy reality of democracy in this society, workers are continually spun the convenient tale that democracy and capitalism are intertwined. It is a reassuring thought for some: that the obscene inequalities of the capitalist economic system are justified by the political freedoms the market supposedly enables.

    But it's a myth, of course. Around the world the profit system can be found bedding down very nicely with all sorts of political systems. From fascistic religious dictatorships to liberal democracies, from national liberation movements to supra-economic geo-political blocs, they all end up having to accommodate themselves to capital and its unquenchable thirst for profit.

    World socialists applaud those workers around the world who fight at massive risk to themselves for basic civil liberties and trade union rights, for the freedom to hold meetings and participate in free elections.

    The fight for a measure of democracy world-wide is an essential part of the struggle for world socialism. After all, if workers are not able to fight for something as basic as the vote, they are unlikely to be able to work for the transformation of society from one based on production for profit to one based on production for human need.

    The World Socialist Movement does not intend playing into the hands of the global ruling class and their political mouthpieces, whether dictatorial or democratic. We don't intend making it easy for them to treat world socialism as an "undemocratic" threat.

    But neither are we under any illusion about the nature of democracy inside capitalism. We confront the myth that capitalism and democracy are interdependent. We oppose the practices of so many so-called revolutionary organisations down the years who expect to bring democracy to the masses while unwilling to practise it internally.

    We challenge the notion that revolution cannot at the same time be democratic and planned, cannot be participative and structured.

    Where it is available to workers we take the viewpoint that capitalist democracy can and should be used. But not in order to chase the ever diminishing returns of reforming capitalism. Instead we see democracy as a (indeed arguably the only) critically-importantinstrument available to class-conscious workers for making a genuine and democratic revolution.

    And in the process of making a revolution the really interesting work can start of course: that of reinventing a democracy fit for society on a human scale. A democracy that is free from the patronage, the power games and the profit motive that currently, from Moscow to Rangoon, Nairobi to Washington, abuses it.

    Thursday, January 31, 2008

    Weekly Bulletin of The Socialist Party of Great Britain (31)

    Dear Friends,


    Welcome to the 31st of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

    We now have 1166 friends!


    Recent blogs:


  • The making of "killing machines"

  • Why governments can't just spend and spend

  • The Continuing Trade Cycle

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    "But capital not only lives upon labor. Like a master, at once distinguished and barbarous, it drags with it into its grave the corpses of its slaves, whole hecatombs of workers, who perish in the crises." Karl Marx, Wage Labour and Capital, 1847.

    Continuing luck with your MySpace adventures!



    Robert and Piers

    Socialist Party of Great Britain

    Saturday, January 26, 2008

    “Socialism is Illogical and Irrational” (2008)

    From the January 2008 issue of the Socialist Standard
    Free-market capitalism, left to its own chaotic and predatory devices would self-destruct in very short order.
    I’ve been told this on a number of occasions when attempting to discuss the pros and cons of socialism and capitalism . . . not that the proponents of that view can offer any evidence that the present system of free-market capitalism is either rational or logical. Theirs is the response of the semi-secure, semi-comfortable, and semi-informed; they sit within the bubble that the system allows them, observing the world through the reversed telescope of capital’s media machine. What they see, hear and read “informs” them and shapes their world-view. When compared with much of the rest of the world their semi-existence looks infinitely better than that of the vast majority of humankind. Better not to rock the boat, better not to question, better to be satisfied with one’s lot, better to follow the advice of our leadership, after all, didn’t we elect them to take the difficult decisions in our name? Following the crisis of “9/11” didn’t Bush suggest that the best contribution the citizenry could make was to kick-start the economy back into top gear? Don’t think, don’t question – consume!

    The capitalist system is rather like an onion. At the centre sits the elite controlling the system and drawing to themselves the fruits of the labours of the rest of us. From this centre each skin or layer gets progressively bigger with those nearest the centre being granted the largest share of the remunerations and benefits that form a part of the “overhead costs” that capital incurs, and those at the outside who are deemed to be totally non-productive by the elites, receiving nothing – not even the right to exist.

    Whilst those who are near to the centre refuse to see the faults and failures of the system, there are two groupings who recognise the failings only too well – those on the outside who are robbed of everything, often even their lives, and those at the centre – the thieves and murderers themselves, aka the elites.

    We are conditioned to believe that the free-market capitalist system has always been around and because it’s the only system that actually works, will always be around. First, it actually doesn’t work. Free-market capitalism, left to its own chaotic and predatory devices would self-destruct in very short order. Second, there really is no free-market capitalist system in the developed world – the “free-market” is reserved for the rest of the world, the people and resources that are there to be exploited and plundered.

    In the developed world the elites have established a system of protectionism and state intervention through subsidies that pass as government contracts; the defence industry with its associated satellite firms is perhaps the definitive example. Through these and similar routes the elites can regulate their economies in an attempt to balance the short-termism that is inherent in the “maximum-profit-now-regardless-of-consequences” free-market. Whilst scorning “big government” in public the capitalists are creaming off vast amounts of money from the so-called public purse through government contracts and through bail-outs for “vital” industries where greed, fraud and ineptitude has resulted in the likely collapse of part of the capitalist’s empire. Witness the revolving door that allows the so-called Captains of Industry or key managers within the bureaucracy to be “fired”, handed huge severance payments and then immediately rehired somewhere else on even higher remunerations. Could there be a better indicator that the elites recognise that there really is no skill in “working” the system, only chance. As long as you are a paid-up member of the free-market masonic club there will be warm hand shakes and even warmer hand-outs as you head off for your next boardroom appointment.

    The logic and rationale of socialism is that at its heart lies the principle, not of maximising profits for the few, but of meeting the needs of everybody on the planet. From that it follows that exploiting people or the environment upon which they depend for the short-term benefit of a few chosen individuals is purely illogical and irrational. Witness that illogicality, that irrationality of capitalism in the following comment by Noam Chomsky in conversation with David Barsamian, “Keeping the Rabble in Line” on a news item in the business section of the New York Times (7 February 1992) about a report prepared by Lawrence Summers, chief liberal economist at Harvard, for the World Bank setting out its position for the Rio conference in June that year:
    “The idea is that the rich countries should take the position, led by the World Bank, that the problem of pollution is that the poor countries, the Third World, don’t follow rational policies. ‘Rational’ means market policies. Many of them are resource and raw material producers, energy producers, and they sometimes try to use their own resources for their own development. That’s irrational. That means that they are using resources for themselves, often at below market rates, when there are more efficient producers in the West who would use those resources more efficiently. That’s interference with the market. Also, these Third World countries often introduce some measures to protect their own population from total devastation and starvation, and that’s an interference with the market. It’s an interference with rational market policies. The effect of this Third World irrationality is to increase production in places where it shouldn’t be taking place, to increase development where it shouldn’t be going on, and that causes pollution. So if we could only convince those Third World countries to behave rationally, that is, to give up all their resources to us and stop protecting their own populations, that would reduce the pollution problem. This document was produced with a straight face” (author’s emphasis).
    The same day on the same page of the New York Times there was another unrelated article, reproduced from Economist magazine, about a World Bank internal memo, written by the same Lawrence Summers, which had leaked. The NYT included an interview with Summers in which he claimed that the article was meant to be sarcastic. Chomsky commented:
    “The World Bank memo added to what had been said in the article about Third World irrationality. It said that any kind of production was going to involve pollution. So what you have to do is do it as rationally as possible, meaning with minimal cost. So suppose you have a chemical factory producing carcinogenic gases that are going into the environment. If we put the factory in Los Angeles, we can calculate the number of people who will die of cancer in the next forty years. We can even calculate the value of their lives in terms of income or whatever. Suppose we put the factory in Sao Paulo or some even poorer area. Many fewer people will die of cancer because they’ll die anyway of something else, and besides, their lives aren’t worth as much by any rational measure. So it makes sense to move all the polluting industries to places where poor people die, not where rich people die. That’s on simple economic grounds.”
    Summers did point out in his memo that there might be some counterarguments based on human rights and the right to a certain quality of life. But he further points out that if we allow these arguments to enter into our calculations, then just about everything the World Bank does would be undermined.

    In the fifteen years since that report there is plenty of evidence of its principle thrust, the export of hazardous production processes to poorer areas of the world, in action. The same principle works in all areas of production. Capital is international, it goes where the profit is and in the process it undermines the position of the workers in the areas it leaves behind opening them up to greater exploitation as wage and benefit costs are driven down ready for whatever menial service jobs may be introduced for some in the next stage of the capitalist merry-go-round. Capital has no conscience and neither do those who function at the higher levels of the system who benefit from it.

    So, there you have it, on the one hand the rationality and logic of free-market capitalism, a world devoid of humanity in every sense. Corrupt, polluting and choking to death on the consequences of its own greed and immorality. On the other hand you have the rationality and logic of socialism, a world where humanity can thrive, where the challenges of meeting the needs of every human being on the planet are balanced against the needs of the planet. Where everyone, including Mother Nature, has a voice and a place at the table, where there are no weak and poor, where there are no needy, where there are no outsiders . . . and no money. The choice is ours; we have to want change enough to bring it about. We have to build socialist thinking one brick at a time, spread the message one person at a time. Last November pundits were predicting the “Perfect Storm” economic collapse scenario due to the convergence of high oil prices and the credit crisis. Both of these events were triggered by the logic and rationality of capitalist greed and corruption; the first through an illegal attempted grab of resources and the second through greed for the easy money to be made out of sub-prime mortgages and the subsequent selling on of re-packaged and concealed risk to other greedy “suckers”. In both instances the capitalists are making vast fortunes or are being bailed out from the “public purse”, screened from the consequences of their greed and crimes. Some might feel that this “event” will provide a window of opportunity where the masses will suddenly get the socialist message by osmosis. Don’t hold your breath! Socialism is about spreading the truth, about making socialists and only socialists can do that. Socialism is logical, rational, pro-people, pro-environment, and above all + pro-active.
    Alan Fenn

    Cooking the Books: Dreaming of a super cycle (2008)

    The Cooking the Books column from the January 2008 issue of the Socialist Standard


    On 19 November the (London) Times published a special supplement on “Minerals and Mining”. One optimistic article “Boom time for world-wide mining” raised the prospect that world mining was entering a “super cycle” and that “we are now in the early stage of a prolonged upward shift in prices, fuelled by the industrialisation of China and India”.

    Industrialisation involves not just the building of new factories but also the uprooting of people from the countryside and their move to urban industrial centres to work. One expert spoke of “the movement of anything from around 10 million to 20 million people per year into an urban setting” in China, so increasing the demand for new houses, roads, administrative buildings and the other features of an urban infrastructure.

    Copper is used extensively in the construction industry, for electric wiring and the like. Recent years have seen a boom in the price of copper and the other base metals, zinc (used for galvanising steel and batteries) and nickel (also used in steelmaking), attributed largely to the increased pace of industrialisation in China since 2003. The optimists believe that their “super cycle” will be the third in the last 150 years, “the previous two occurring around the end of the 19th century as the US became a major economic power and the second being the post war expansion of the Japanese and European economies after 1945”.

    Three days later, the headlines of the Times business section read: “Fears of recession in US spook commodity markets” and “The wheels are coming off the supercycle”:

    A metals analyst, Nick Moore gave his opinion:
    “’The supercycle has a flat tyre,’ Mr Moore said, referring to a theory promoted by some analysts and mining groups which suggested that extraordinary demand from China and India would sustain continued long-term growth and prevent the traditional boom and bust cycle of the mining industry. ‘China is not the tooth fairy that can absorb all the ore’”.
    Of course since, as on all markets, speculators operate on the commodities market, too much store should not be set on short-term changes there. But the state of the US economy is relevant since China is not industrializing on its own: the motor is exports. If, due to a recession in the US, these fall off so will China’s demand for copper and zinc and the mining industry will suffer from “overcapacity”. Hence the comment of the Times Business Editor, James Harding, that in the longer term, there is concern that the industry has retained its tendency towards oversupply, adding production capacity and removing the squeeze that props up prices”.

    In other words, the classic scenario under capitalism. When the market for some product is expanding, all the firms supplying it assume that this will continue and invest in new productive capacity; when all this comes on stream it is found that supply exceeds demand and boom turns to bust and slump. The mining industry has traditionally been prone to this because of the longer time needed to explore for, find and extract minerals than to build a factory. The last time the world mining industry went through a slump was in the 1990s:
    “At that time, with lower demand and lower prices, and in the midst of technological change, metals were, as Tulpulé [chief economist at Rio Tinto] puts it ‘passé’. This of course led to a lack of investment in plant, a fall off in exploration, and a declining growth on the supply side” ( London Times, 19 November).
    As long as capitalism lasts, this zigzagging between boom and slump will always be the course of economic activity.

    Wednesday, January 23, 2008

    Editorial: Bobby's Discretion. (1919)

    Editorial from the June 1919 issue of the Socialist Standard

    So, the bobbies have funked it. We are not, for the present, at all events, to be treated to the comic spectacle of strike processions of bluebottles being shepherded through the streets by their own blacklegs, the "specials." The world has lost an entertainment.

    Of course, we are not blind to the difficulties of the policemen's situation. Their bosses had got the strangle-hold on them. By the simple expedient of stopping sixpence in the pound of their wages, confiscating their fees for the service of summons, and in other dubious ways, the capitalists provide a pensions fund at poor Booby's expense. The loss of this pension, together with the "sack," is the first threat the bosses hold over the bobbies' heads. Bobby is a man with no other trade in his hands in the vast majority of cases. So the threat of losing a regular job has special terrors for him. In addition, the loss of his pension—a pension designed, as most pensions are, to get a disciplinary grip upon the subject which probably no other expedient possible in a "free country" could afford, is a prospect requiring a quite uncommon type of mind to withstand.

    The bosses, of course, played the game for all it was worth. They said they were flooded with applications from soldiers and ex-soldiers to take the policemen's jobs. They also talked loudly but vaguely about the arrangements that were being made to meet Buttons' grievances. It was the old, old game of bribe some and threaten others—the game played from the beginning to the end of the recruiting for the war—the game played to kill the demobilisation trouble after the Armistice. As, in the earlier case, the single and the young were promised jobs and preferment if they enlisted, and the married and the older ones were threatened that they would have to go if they did shove the others in; as, later, the older men were promised early demobilisation if they kept quiet, and detention till the last if they did not, while the younger men were soothed with extra money, so the older policemen were threatened more particularly with the loss of all that was so nearly won, while the younger men were soothed with promised improvements in the longer road before them.

    Meanwhile the policemen played their cards just about as badly as they could. They have climbed down under threats—than which hardly anything could more completely have exposed their weakness and fear. Added to this they have climbed down before their bosses had committed themselves to the vaguely talked-of concessions, and in face of this confession of funk and weakness those concessions are going to shrivel up considerably. The bosses have found out all they wanted to know—that the reward they are offering their bulldogs is sufficient to secure their allegiance to their odious duties. If they dare not decline those duties for themselves they can never dare to decline to perform them for others. So, when labour troubles come Bobby will not, the masters are assured, be a trade unionist, and they have secured this, thanks to their cunning, at about the lowest possible price.

    The Daily Chronicle in its issue of June 2 tries to point out to the policemen why the Government can never recognise the Police Union, and, as usual, it reveals only half the truth. "The police exist," our contemporary says, "to support the State. That is what they are for. . . They cannot strike and agitate, or even become public politicians, without ceasing to be policemen." Which is true enough as far as it goes, but does not dispose of the not unimportant fact that the policeman is so essentially a member of the exploited class that he cannot get his admitted grievances redressed until he threatens to cease to be a policeman.

    The more important matter, however, is the statement that a policeman is only such to support the State. The complement of this half truth is, of course, that the State is only an instrument for keeping the workers in subjection. Directly this position is realised it becomes obvious how far the police are from getting recognition for any police union that could possibly link them with the unions of the industrial world. The position of police force affiliated with the industrial trade unions would indeed be a tragic one in a time of strife. This the bosses have sense enough to perceive, if the underlings have not. And it is for this reason rather than that they are afraid of being dictated to by the men that the Government will never recognise the Police Union.

    It was probably a lie that the police authorities are inundated with blackleg applications from soldiers, but the capitalists have a deep pocket, and, as long as their control of the instrument of the State lasts will have no serious difficulty in obtaining men who will carry out their behests. It is simply a question of the price.

    The only thing that can deliver the policeman—as the rest of us— from the tyranny of his tormentors is for the working class to assume control of the State, and to use its forces, including the police, to abolish capitalism and establish the Socialist Commonwealth.

    Weekly Bulletin of The Socialist Party of Great Britain (30)

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    Sunday, January 20, 2008

    Jack London’s The Iron Heel (2008)

    From the January 2008 issue of the Socialist Standard
    London's widely read book of this title was published a hundred years ago. But how realistic was it and how much of a socialist was Jack London?
    By the time he had published The Call of the Wild in 1903 and White Fang in 1905, Jack London had established a reputation as the author of highly profitable popular fiction and adventure stories. He had risen to become the highest-paid American author of his era and with his income secure he set about writing a novel expressing his individualistic brand of militant politics. Aroused by the failure of the 1905 Russian Revolution, the inability of the Socialist Party of America to build on earlier electoral successes and the popularity of the serialisation of The Jungle, Upton Sinclair's novel about working conditions in the meat-packing industry, London quickly completed a new novel, The Iron Heel, which was published one hundred years ago in 1908. After his death the work became an influential classic of anti-capitalist literature with prophecies and warnings that, according to the introduction to the most recent Penguin edition, 'Aryan nationalists and communists alike have championed' ever since.

    The novel combines two narrative themes: an inner autobiographical narrative set mainly in the period 1912-1918 and a secondary narrative providing an historical commentary on the fictional 'Everhard Manuscripts' from centuries in the future. The work is essentially the autobiography of Avis Everhard, a woman steeped in social prejudice who falls in love with and later marries a 'socialist leader' and then discovers the realities of capitalism. Under the guidance of her husband Ernest she becomes a revolutionist seeking to overthrow the 'Oligarchy' – the combination of the large monopoly trusts that had bankrupted smaller capitalists and reduced farmers to serfdom and the majority of workers to slaves.

    This elite has created a military caste – the 'Mercenaries' – as a private army and undermines working class solidarity by establishing a privileged 'labour caste' from skilled workers in essential industries. The 'Oligarchy' has absolute authority over civil law and political institutions, exercising power through force and intimidation, bolstered by the prejudices propagated through the press, church and education system. The novel ends after the unsuccessful 'First Revolt' against this elite.

    The Iron Heel was not an entirely original work, heavily influenced by the work of other authors. London took inspiration from H.G. Wells' apocalyptic fantasy When the Sleeper Walks (1899) and from the idea of a 'double-view' achieved by opening a second narrative in the future, in Edward Bellamy's Looking Backward (1888). To this he adds images of summary executions and unrestrained violence from the 1871 Paris Commune, using this as a historical model for his 'Chicago Commune' that stirred memories of the infamous Chicago Haymarket Massacre of 1886.

    The novel was also closely modelled on Ignatious Donnelly's Caesar's Column (1890), a melodrama set in the New York of the future which, like London's later work, revolved around political intrigue, secret agents, disguises and spies. Both novels are interwoven with love stories and end in cataclysm. London relocates the scene of this cataclysm from the New York to Chicago. His central theme was drawn from W. J. Ghent, the author of Our Benevolent Feudalism, a work 'which foresaw the "complete integration of capital" into an iron fisted dictatorship'(Richard O'Connor, Jack London – A Biography). Even London's title, The Iron Heel, which is the condemnatory phase dramatically used by London's hero Ernest to describe the 'Oligarchy,' turns up in many other contemporary political and literary works as a symbol of oppression.

    Much of what is related in the narrative of Avis Everhard London gleaned from newspaper articles and the printed views of 'muckrakers' such as Lincoln Steffens and regular contributors to the Oakland newspaper Socialist Voice, including William McDevitt and Austin Lewis. London's opportunistic reliance on this newspaper was demonstrated in 1906 when at a time when it was publishing articles denouncing organised religion, London – for the only time in his literary career – denounced the church, and he devotes several chapters in his novel to the theme.

    'Borrowing' ideas and phrases was second nature to London and he was repeatedly accused of plagiarism. Moreover his habit of appropriating the work of others was not just confined to newspaper articles. Chapter seven of his novel, The Bishop's Vision, is almost identical to Frank Harris's essay 'The Bishop of London and Public Morality', published years earlier. London tried to explain his tendency to plagiarise to Elwyn Hoffman, by saying: 'expression with me is far easier than invention. It is with the latter I have the greatest trouble, and work the hardest' (Andrew Sinclair, A Biography of Jack London).

    London was not widely read in the works of socialist literature and he never really understood socialism. His politics were a blend of conflicting theories: a mixture of emotional demands for 'social justice' acquired during his early life, interwoven with ideas of racial superiority and social Darwinism. He had joined the Socialist Labor Party (SLP) in 1896, a period in which the SLP supported a programme of 'immediate demands'. When these were dropped in 1900, London was one of those who left the Party and after standing as the Social Democratic Party's candidate for the mayor of Oakland in 1901 he joined the reformist Socialist Party of America (SPA). London's 'socialism' was always overshadowed by the conviction that the strongest must inevitably triumph over the weak and by a resolve to drag himself out of the 'social pit' by becoming a prosperous writer even when this meant being criticised for compromising his principles and political convictions.

    After completing People of the Abyss, an account of working class life in the East End of London and arguably the only truly 'sincere work' that he ever wrote, London became increasingly disillusioned with the 'underfed parodies of humanity' who refused to 'fight' for a new society. By 1903 his frustration with the working class and his views on social Darwinism were widely acknowledged and drew criticism from the membership of his own political party. He responded with accusations that the SPA leadership was weak and doomed to fail and though he stood as its candidate for the mayor of Oakland in 1905, it was clear, even before he began his novel, that his sporadic flirtation with 'socialism' was over.

    Although he remained a Party member, believing his 'socialist credentials' enhanced his reputation, it is certain that by 1906 that London had already 'parted ways with the idea of a mass working-class movement to overthrow capitalism and establish a new society' (Robert Barltrop, Jack London, the Man, the Writer, the Rebel). The Iron Heel's reputation as a 'socialist' classic, deriving from London's scathing attack on capitalism in the first half of the novel, does not conceal the fact that it was 'also his statement why socialism was not achievable in the foreseeable future' (Barltrop). The novel is London's pessimistic declaration that the working class is incapable of self-emancipating and in it he does not even credit the 'socialist' movement with the eventual downfall of the fictional 'Oligarchy,' which instead implodes under its own internal weaknesses and divisions.

    London unquestionably believed that capitalism should be replaced, but never explains 'socialism' or how it can be achieved. His main indictment of the capitalist system in The Iron Heel is that it is managerially incompetent, 'blind and greedy', and wasteful. As well as this, London is convinced that an alternative society cannot be achieved without leaders. He creates the character Ernest as his alter ego, a 'socialist leader' (a contradiction in terms) who stands above the working class as an embodiment of London's image of 'socialist' man, a 'blond beast such as Nietzsche has described', the personification of self-sacrifice and martyrdom.

    Ernest is the leader that London always wanted to be. But Ernest is betrayed – in the same way that London felt he had been - by comrades who refuse to listen to him and by an irresponsible working class, 'the refuse and scrum of life', incapable of helping itself and unworthy of his leadership. London's fictional 'socialists' view the working class with dread and refuse to build class solidarity with what they see as an abject and uncontrollable mass. The novel concludes on a note of disgust aimed less at the detested 'Oligarchy' than at the working class, whose mindless behaviour is said to have contributed to the defeat of the 'First Revolt.' The remnants of the 'socialist' movement are driven away to continue a terrorist war for centuries into the future until the weakened 'Oligarchy' finally yields.

    The vision articulated in The Iron Heel is the social Darwinian struggle in which the strongest must always be supreme. It is developed within the framework of a quasi-religious fable. The setting is summed up by one critic in the following way: 'For the individual capable of it, a transforming moment of inspired vision; for those in society incapable of such a vision, a providential catastrophe and ultimately the regeneration of society through martyrdom' (Charles N. Watson, The Novels of Jack London). The work is peppered with biblical phraseology and religious symbolism as Avis experiences 'a new and awful revelation of life'. The story builds towards an apocalyptic conclusion reminiscent of religious deliverance when the 'evils' of capitalism will be purged from the world and, through sacrifice and martyrdom, society will be reborn as 'The Brotherhood of Man.'

    The dramatic idealisation of the main protagonists, the heightened romanticism of the action, and the virtual absence of the working class for much of the novel all accentuate an infatuation with leadership. Some have justified the novel's lack of realism in various ways. Trotsky, for example, explained the work as a didactic tale where the author was interested 'not so much in the individual fate of its heroes as in the fate of mankind' (Joan London, Jack London and His Times). But is this an adequate defence for a tale whose core message is one that consigns the working class to an essentially passive and insignificant role in the social revolution?

    So The Iron Heel is a decidedly anti-socialist work by an author who wrote more from his heart than his head. When it was first published the novel received unfavourable reviews even from so-called 'socialist' journals and the International Socialist Review described it as 'well calculated to repel many whose addition to our forces is sorely needed'. It is difficult to disagree with Robert Barltrop's judgement that London's 'socialism' was always a self-deception where 'the pleasures of intellectual company, of being lionised, of always having a platform waiting, caused him to set aside or rationalise the differences which were plainly there'. It is perhaps not surprising that London's egotism, overblown self-esteem and overriding preoccupation with his personal finances led Mark Twain's to remark: 'It would serve this man London right to have the working class to get control of things. He would have to call out the militia to collect his royalties.'

    Jack London died in 1916 at the age of 40. In 1945, George Orwell said that had he lived 'in our day, instead of dying in 1916, it is hard to be sure where his political allegiance would have lain', and went on: 'One can imagine him in the Communist Party, one can imagine him falling victim to the Nazi racial theory, and one can imagine him the quixotic champion of some Trotskyist or Anarchist sect.' The Iron Heel, still open to all kinds of unsettling interpretations, will undoubtedly continue to be considered a classic of its time, although worryingly perhaps for all the wrong reasons.
    Steve Trott

    Friday, January 18, 2008

    Weekly Bulletin of The Socialist Party of Great Britain (29)

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