Tuesday, January 20, 2009

Weekly Bulletin of The Socialist Party of Great Britain (81)

Dear Friends,

Welcome to the 81st of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

We now have 1434 friends!

Recent blogs:

  • Five more benefits of not having money
  • Reformist dead–ends
  • Peace in Palestine
  • Coming Events:


    Tuesday 20 January, 8pm

    WHAT IS HAPPENING IN THAILAND?
    Chiswick Town Hall, Heathfield Terrace, W4.(nearest tube: Chiswick Park)


    Wednesday 21 January, 8.30pm
    BANKS, BOOM AND BURST.
    Speaker: Vic Vanni
    Community Central Halls, 304 Maryhill Road, Glasgow.


    Saturday 24 January, 3pm to 5pm.
    PUBLIC DEBATE: DID TROTSKY POINT THE WAY TO SOCIALISM?
    Yes: Hillel Ticktin, editor of Critique; No: Adam Buick, Socialist Party.
    Hillhead Public Library, Byres Road, Glasgow. (next to Hillhead subway)


    Saturday 24 January, 12 noon to 4pm
    EAST ANGLIAN REGIONAL BRANCH MEETING
    12pm informal chat, 1pm meal, 2pm to 4pm Discussion
    The Conservertory, back room of Rosary Tavern, Rosary Road, Norwich.


    Monday 26 January, 8.30pm
    ‘IS A WORLD OF ABUNDANCE FEASIBLE?’
    Unicorn, Church Street, Manchester City Centre.


    Saturday 31 January, 6pm
    Film: ZEITGEIST ADDENDUM
    Socialist Party Head Office, 52 Clapham High St, London SW4.

    Quote for the week:

    "Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave." Leo Tolstoy, What shall We Do Then? 1886

    Continuing luck with your MySpace adventures!

    Robert and Piers

    Socialist Party of Great Britain

    Socialist Party Debate: Did Trotsky Point The Way To Socialism?

    Hat tip to Fraser for the poster.

    Monday, January 19, 2009

    A booming industry . . . even in a recession (2009)

    From the January 2009 issue of the Socialist Standard

    A recent issue of the magazine Time (14 October) highlighted the immense profits to be made in capitalism even in a trade recession. "Need to start a war? No problem. While stock markets grate and financial institutions (and even whole countries, like Iceland) teeter on bankruptcy, one global industry is still drawing plenty of high-end trades and profits: weapons."

    The article reported the case in a Paris courtroom where 42 officials went on trial for taking millions in kickbacks and organising huge arms commissions from the Angolan government during the mid-1990s. This group, which included a former French Interior minister and the son of the late French President Mitterrand, were charged with having supplied almost $800 million worth of arms to Angola, including 12 helicopters, 6 naval vessels, 150,000 shells and 170,000 mines.

    The Angolan President Jose Eduardo Dos Santos used this huge stockpile to crush the US-backed Unita rebels during Angola's devastating civil war. It is worth noting that Dos Santos is reckoned to have made millions of dollars from the transaction and that he is still in power with no prospect of a fraud trial for him.

    The source of this arms hardware was the huge stockpiles of Soviet weapons left behind when the Soviet Union collapsed.The French businessman Pierre Falcone allegedly plied Angolan officials with tens of millions of dollars – some of it stuffed in in suitcases – and deposited other sums in offshore accounts.

    You might imagine that these shady dealings having been brought to light could no longer occur, but you would be dreadfully wrong. "Researchers say arms trading has boomed in the decade since the Angolagate scandal was uncovered. That's partly due to heightened supply. As ex-Soviet republics emerged as economic actors in their own right, several countries developed national arms industries, refitting weapons from their stocks and manufacturing new weapons of their own. These industries have taken off in in recent years. Ukraine has about 6 million light weapons from Soviet stockpiles, and has modernised tanks, anti-aircraft missiles and other weaponry, says Hugh Griffiths, an expert on illicit weapons at the Stockholm International Peace Research Institute."

    "It is very difficult to stop arms trafficking, because there is no control," says Griffiths, who has researched Ukraine's arsenal for the US government. Although NATO funds Ukraine to destroy its stockpiles, "the Ukrainians realize how much money they can make by selling surplus weapons," he says. In an action that broke no laws, the Ukrainians shipped about 40,000 Kalashnikov rifles to Kenya last year during the tense standoff following the country's disputed presidential election."

    As the struggle for oil and minerals intensifies inside capitalism we have rebel conflict in Chad, Sudan, Congo and elsewhere. This conflict needs weapons and so the arms trade legitimate or otherwise flourishes. In Africa and all over the world capitalism reigns supreme. The basis of capitalism is production for profit, so in its remorseless drive for profit it leads to conflict, and eventually armed conflict. It is the nature of the beast to maim and kill and all attempts to civilise it by such grandiose titled groups like the Stockholm International Peace Research Institute are doomed to failure. As the expert Hugh Griffiths himself admits – "there are plenty of arms out there - so long as you have the money to pay for it."
    Richard Donnelly

    Saturday, January 17, 2009

    Editorial: Just another war? (2009)

    Editorial from the February 2009 issue of the Socialist Standard

    It's understandable that the conflict in Gaza should command such worldwide attention. As well as the genuine suffering incurred (overwhelmingly on the Palestinian side) this war has had a particular resonance.

    The conflict kicked off while many people around the world were sleeping off their Christmas celebrations. The usual pious words of peace and goodwill spoken by popes, queens and presidents only a few hours earlier choked in their throats that bit sooner than normal, as the missiles from the Holy Land started to fall on Gaza, deep and crisp and even.

    But, let's not lose sight of the fact that the Gaza conflict is just one of over 20 wars underway at present. Fatalities in this conflict so far have been a small fraction of the approximately 100-300,000 direct and indirect war fatalities that capitalism can reliably promise humanity for 2009.

    War isn't some sort of exceptional occurrence for capitalism. Just as recession is an essential and unavoidable part of the economics of capitalism, rather than some sort of aberration, so war is a normal consequence of the international political tensions inherent within capitalism. The legitimate global ruling class comprises various different gangs of pirates, oligarchs, conmen, princes, dictators, and gangsters. Each of whom funds its local government or political administration to best protect its interests.

    That's not to say we shouldn't try and do anything. But for our efforts to have any success they must be based on a recognition as to the root cause that ultimately connects all these conflicts – a world owned by, and divided up between, the small global minority who live off that monopoly to the exclusion of the vast majority. The global working class is left to do the dirty work for the owning class, the employing class and the officer class - working in their factories and dying in their armies.
    It may be tempting to support the underdog and take sides with the Philistine David v Israeli Goliath. But such thinking blinds us to the real causes of what is only the latest flare up in the particularly brutal history of the Middle East.

    Israel and the region's security has strategic implications far beyond its borders. Enormous existing and potential oil wealth is present in the region as a whole. And with $4bn worth of natural gas reportedly discovered some 30 miles directly offshore from the Gaza Strip there is – for many governments around the world – definitely something worth fighting for.

    World socialists are revolted by the violence of the Gaza conflict. We condemn both sides and denounce the senseless killing of our fellow workers. History shows that in times of war, working-class interests are never served by workers throwing in their lot with nationalist or other political leaders of capitalism, whether they are well-funded like the Israeli state, or weaker like Hamas. The slaughter in Gaza underlines yet again the urgent need to work for a world without nations and nationalism, bosses and workers. Instead of a "two-state" solution, world socialists offer the "no-state" solution as the only one that can ever give the Middle East lasting peace.

    Thursday, January 8, 2009

    Weekly Bulletin of The Socialist Party of Great Britain (80)

    Dear Friends,

    Welcome to the 80th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

    We now have 1430 friends!

    Recent blogs:

  • Education, politics and language
  • Changing the System
  • The Price of Everything
  • Coming Events:



    Saturday 10 January, 6pm

    DID YOU ENJOY YOUR CHRISTMAS?

    Speaker: Jim Lawrie

    Socialist Party Head Office, 52 Clapham High St, London SW4 (nearest tube: Clapham North)


    Tuesday 20 January, 8pm

    WHAT IS HAPPENING IN THAILAND?

    Chiswick Town Hall, Heathfield Terrace, W4.(nearest tube: Chiswick Park)


    Wednesday 21 January, 8.30pm

    BANKS, BOOM AND BURST.

    Speaker: Vic Vanni

    Community Central Halls, 304 Maryhill Road, Glasgow.


    Saturday 24 January, 3pm to 5pm.

    PUBLIC DEBATE: DID TROTSKY POINT THE WAY TO SOCIALISM?

    Yes: Hillel Ticktin, editor of Critique; No: Adam Buick, Socialist Party.

    Hillhead Public Library, Byres Road, Glasgow. (next to Hillhead subway)


    Saturday 24 January, 12 noon to 4pm

    EAST ANGLIAN REGIONAL BRANCH MEETING

    12pm informal chat, 1pm meal, 2pm to 4pm Discussion

    The Conservertory, back room of Rosary Tavern, Rosary Road, Norwich.


    Monday 26 January, 8.30pm

    ‘IS A WORLD OF ABUNDANCE FEASIBLE?’

    Unicorn, Church Street, Manchester City Centre.


    Saturday 31 January, 6pm

    Film: ZEITGEIST ADDENDUM

    Socialist Party Head Office, 52 Clapham High St, London SW4.

    Quote for the week:

    "Every gun that is made, every warship launched, every rocket fired, signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. The world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children." Dwight D. Eisenhower, 1953, a speech to the American Society of
    Newspaper Editors.

    Continuing luck with your MySpace adventures!

    Robert and Piers

    Socialist Party of Great Britain

    Friday, January 2, 2009

    Editorial: Capitalism must go (2009)

    Editorial from the January 2009 issue of the Socialist Standard

    We are now in the middle of the biggest economic and financial crisis since the 1930s. In a world that has the potential to produce enough food, clothes, housing and the other amenities of life for all, factories are closing down, workers are being laid off, unemployment is growing, houses are being repossessed and people are having to tighten their belts. There are in fact already 16 million officially recorded unemployed in the EU. Outside Europe the situation is worse and people are rioting because they can't afford even the basic necessities of life.

    Capitalism in relative "good" times is bad enough, but capitalism in an economic crisis makes it plain for all to see that it is not a system geared to meeting people's needs. It’s a system based on the pursuit of profits, where the harsh economic law of "no profit, no production" prevails. It's because the headlong pursuit of profits has led to a situation where they can't make profits at the same rate as before that those who own and control the places where wealth is produced have gone on strike – refusing to allow these workplaces to be used to produce what people need, some desperately. So, as in the 1930s, it’s poverty in the midst of potential plenty again. Cutbacks in production alongside unmet needs. Why should we put up with this?

    But that's the way capitalism works, and must work. The politicians in charge of governments don't really know what to do, not that they can do much to change the situation anyway. They are just hoping that the panic measures they have taken will work. In Britain the Labour government is trying to spend its way out of the slump, but this has been tried before and has never worked. The slump will only end when conditions for profitable production have been recreated, and that requires real wages to fall and unprofitable firms to go out of business. So, there's no way that bankruptcies, cut-backs and lay-offs are going to be avoided, whatever governments do.

    What can be done? Nothing within the profit system. It can’t be mended, so it must be ended. But this is something we must do ourselves. The career politicians, with their empty promises and futile measures, can‘t do anything for us. We need to organise to bring in a new system where goods and services are produced to meet people's needs. But we can only produce what we need if we control the places where this is produced. So these must be taken out of the hands of the rich individuals, private companies and states that now control them and become the common heritage of all, under our democratic control.

    In short, socialism in its original sense (which has nothing to do with the failed state capitalism that used to exist in Russia or with what still exists in China and Cuba) as a society of common ownership, democratic control and production for use not profit, with goods and services available on the basis of "from each according to ability, to each according to needs".

    Why we need a theory (2008)

    From the December 2008 issue of the Socialist Standard

    Towards a better understanding of the world, in order to change it.
    The world we live in is a world of contradictions. The environment is in a state of decline, yet industry continues to pump pollutants into the atmosphere whilst non-polluting technologies are neglected. Thousands starve, while food stocks remain unused. We can communicate with strangers from all around the globe, yet no-one knows their neighbour. Automation could free us from involuntary labour, yet we are chained to the machine. We live amongst vast material possibilities, yet poverty is the universal experience – not just in the narrow economic sense but also in terms of the quality of lived experience. “Never in history has there been such a glaring contrast between what could be and what actually exists” (Ken Knabb, The Joy of Revolution).

    Central to all these contradictions and reshaping all previous antagonisms is the global commodity-capitalist system. A system characterised by the production of commodities, wage labour and the market economy. A commodity is what is produced by the worker under capitalist conditions, its purpose to reproduce and enlarge capital (stored surplus value). The pursuit of ever increasing profits is the driving force behind the whole process – the fulfilment of people’s needs is a secondary and not always occurring result.

    Commodities are only available in exchange for other commodities, money being the universal commodity and measure of all others. Since all goods have been turned into commodities and access to non-commodified materials restricted, those without the means of producing anything to exchange must sell the only thing they have, their physical or mental labour-power. The logic of the market economy treats this labour like any other commodity; to be bought, sold and discarded as the market dictates. In effect the worker becomes a commodity. This transformation of living activity into an object creates an alienated or estranged world in which humankind does not recognize or fulfil itself, but is overpowered by the dead things and social relations of its own making.

    Capitalist society is therefore split into two camps, the bourgeois or capitalist class (those who own and control the means of production – the land, equipment, machinery, buildings and raw materials necessary to create the things we need and use every day) and the proletariat (those with “nothing to lose but their chains”), broadly speaking the “modern working class” including the un-employed and unemployable. However the proletariat is not to be understood as a sociological category of people in such-and-such income group and such-and-such occupations, but as a social relation of capitalism. It is all those who have little or no means of support other than selling their physical and mental labour-power. The proletariat is the only class capable of ending class society, as it produces the material conditions of its own enchainment. However, both classes are subject to the laws of the market economy – our concern is with the social relation capital not the individual capitalist – the functionaries of capitalism are more and more disposable as individuals. While the rag-wearing classical proletariat of Marx’s time has all but disappeared, at least in the developed countries, the fundamental division remains; power and wealth are becoming more rather than less concentrated under the control of a small minority. The modern proletariat is almost everyone; it is the working class which must destroy both alienated work and class.

    The “official” history of the working class’s struggle against capitalism is an inversion, what is presented as its greatest triumphs are in reality its most bitter defeats; Leninist “Communism” in the East and reformist “Socialism” in the West were both expressions of a general movement towards state-capitalism. The greatest tragedy of these times is that in the minds of the vast majority of workers the project for the dissolution of the commodity economy became associated with its exact opposite. “So the light darkened that had illuminated the world; the masses that had hailed it were left in blacker night… By usurping the name communism for its system of workers' exploitation and its policy of often cruel persecution of adversaries, it made this name, till then expression of lofty ideals, a byword, an object of aversion and hatred even among workers” (Anton Pannekoek, Workers Councils).

    Though the call for a new society was never thoroughly extinguished; small and often profoundly isolated groups and individuals arguing the case for a social reorganization to bring free access and control of the means of production into the hands of the whole of humanity. “From each according to ability, to each according too need!”

    The creation of such a society has two preconditions; firstly that technological production techniques have been sufficiently developed to be able to fulfil the material needs of the whole of society and secondly, that the majority of the population have an understanding of what needs to be done and want to carry it through. Revolutionaries are painfully aware that the first requirement has long since been reached but that the second is still far from being realized.

    If we are to avoid repeating the mistakes of the past it will be necessary to develop a theory of revolutionary practice, a theory which seeks to “get to the root of all things” and improve them. It is not a matter of choosing from one of the pre-existing ideologies of the old workers movement and basing our world view around it, but a matter of finding the “moment of truth” in all the theories of the past and synthesising this with our experience of the present.

    “Theory itself becomes a material force when it has seized the masses” (Karl Marx, Contribution to the Critique of Hegel's Philosophy of Right)
    Darren Poynton

    Wednesday, December 31, 2008

    Weekly Bulletin of The Socialist Party of Great Britain (79)

    Dear Friends,

    Welcome to the 79th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

    We now have 1426 friends!

    Recent blogs:

  • Let’s make a real socialist revolution
  • What is Poverty?
  • The problem that never went away
  • Coming Events:



    Saturday 10 January, 6pm
    DID YOU ENJOY YOUR CHRISTMAS?
    Speaker: Jim Lawrie
    Socialist Party Head Office, 52 Clapham High St, London SW4 (nearest tube: Clapham North)


    Tuesday 20 January, 8pm
    WHAT IS HAPPENING IN THAILAND?
    Chiswick Town Hall, Heathfield Terrace, W4.(nearest tube: Chiswick Park)


    Wednesday 21 January, 8.30pm
    BANKS, BOOM AND BURST.
    Speaker: Vic Vanni
    Community Central Halls, 304 Maryhill Road, Glasgow.


    Saturday 24 January, 3pm to 5pm.
    PUBLIC DEBATE: DID TROTSKY POINT THE WAY TO SOCIALISM?
    Yes: Hillel Ticktin, editor of Critique; No: Adam Buick, Socialist Party.
    Hillhead Public Library, Byres Road, Glasgow. (next to Hillhead subway)


    Saturday 24 January, 12 noon to 4pm
    EAST ANGLIAN REGIONAL BRANCH MEETING
    12pm informal chat, 1pm meal, 2pm to 4pm Discussion
    The Conservertory, back room of Rosary Tavern, Rosary Road, Norwich.


    Monday 26 January, 8.30pm
    ‘IS A WORLD OF ABUNDANCE FEASIBLE?’
    Unicorn, Church Street, Manchester City Centre.


    Saturday 31 January, 6pm
    Film: ZEITGEIST ADDENDUM
    Socialist Party Head Office, 52 Clapham High St, London SW4.

    Quote for the week:

    "The first duty of society is to give each of its members the possibility of fulfilling his destiny. When it becomes incapable of performing this duty it must be transformed." Alexis Carrel (1873 - 1944), Reflections on Life, 1965.

    Continuing luck with your MySpace adventures!

    Robert and Piers

    Socialist Party of Great Britain

    Saturday, December 27, 2008

    Pieces Together (2008)

    From the December 2008 issue of the Socialist Standard

    HOW THE OTHER 5% LIVE

    "Once it was the Greeks who commanded the best boats. Aristotle Onnasis's yacht, Christina O, hosted Marilyn Monroe, Frank Sinatra, Eva Peron and Sir Winston Churchill who were all photographed on board. Then the Arabs became involved. Ten years ago, Diana, Princess of Wales, was photographed sunbathing on Mohamed Al Fayed's yacht the weekend before she died. But in the past five years the Russians have turned it into a different league. Your bog-standard superyacht now costs between £40 and £70 million depending on the interior specification. The running costs tend to be about £5 million a year for the bigger vessels." (London Times, 23 October)


    YOU SHOULD BE SO LUCKY

    "If it was not evident already how much developers in Dubai value the input of a celebrity name, the news that Kylie Minogue is to be paid about $4.4 million (£2.8 million) to officially open the $1.5 billion Atlantis Hotel on November 20 should silence any doubters. The Australian singer's first performance in the Middle East will be part of a $35 million extravaganza billed as the most expensive party yet held - the fireworks alone are to cost $6.8 million. But why bother with such expenditure? The Atlantis has already attracted huge publicity over its £13,000 a night suites." (London Times, 31 October)


    BORN IN THE USA

    "Bruce Springsteen wants to make sure one bank remains solvent: the Community Food Bank of New Jersey. The singer will appear in a newspaper ad for the state's largest food bank that says: ‘We Can't Let This Bank Fail!’ Springsteen has been a supporter of the food bank for 23 years, often donating proceeds from concerts or encouraging fans to bring food donations to his shows. This is the first time he's lent his image to the anti-hunger campaign. The Community Food Bank says the economy has resulted in a 30 percent increase in those needing food and could lead it to ration supplies for the first time in its 26-year history. The food bank assists charities serving a half-million people each year." (Yahoo News, 11 November)


    AMERICAN NIGHTMARE

    "Families are flooding homeless shelters across the United States in numbers not seen for years, camping out in motels or staying with friends and relatives, homeless advocates say. ‘There are lots of families haemorrhaging into homelessness and we need to figure out how to put a tourniquet on the haemorrhaging,’ Philip Mangano, the homelessness czar appointed by President George W. Bush in 2002, told Reuters. There is little time to waste. The U.S. unemployment rate is at a 14-year high and more job losses are forecast, while the Mortgage Bankers Association says nearly 1.5 million homes are in the process of foreclosure." (Reuters, 12 November)


    OLD AND COLD

    "Millions of elderly people will heat just one room in their homes this winter to cut down on soaring heat bills. Research by the charity Help the Aged found that 4.5 million people planned to live in one room in the coldest months. Many would stay in bed longer to keep warm, the charity found. A spokesman said: ‘It is a scandal that in a civilised society we are behaving in this way.’ Energy bills have risen by about 30 per cent this year." (London Times, 10 November)

    Thursday, December 25, 2008

    Is the World Slump Over Yet? (1994)

    From the August 1994 issue of the Socialist Standard

    The Great Reckoning by James Dale Davidson and William Rees-Mogg (Pan, London, 1994 £7.99), subtitled "How the World Will Change Before 2000", aims to be prophetic. It foresees rocketing taxes, worldwide stock market crashes, a further fall in the property market, a collapse of the welfare state, social disintegration writ large, petty nationalist squabbles and terrorism.

    The odd thing is that its authors are both gung-ho supporters of the very system - capitalism - that is capable of unleashing such horror, and find no contradiction in their position. They view the economic basis of capitalism as being fundamentally unstable, yet their advice is only to those already wealthy enough to be able to use their capital to their own advantage in the coming economic crunch. No talk of revolution here.

    Nevertheless, The Great Reckoning is a fairly sophisticated book, which is unusual for one that prophecies a Doomsday scenario. Central to its analysis is its prediction of a 1930s-style economic crisis from which other dangers will follow. Davidson and Rees-Mogg claim that there are two main reasons why the world capitalist economy is in for a major period of slump. One is taken from the Austrian Physicist Cesare Marchetti who has spent time analysing the penetration of innovations and products in the capitalist economy. Marchetti dispenses with price-analysis and deals only in physical quantities, claiming that the penetration of commodities into markets can be equated with the spread of living species. He has, for instance, argued that the growth and spread of motor-cars into Western Europe can be explained by the same logistic equation that describes the penetration of, say, rabbits into Australia. Ten years ago Marchetti claimed that most of the markets that provided the spur for the post-war economic boom, like motor-cars, had become saturated. This, he reasoned, would mean economic slowdown.

    Economic Slowdown
    Marchetti's argument doesn't fully take into account that technological innovation is itself a spur to capitalist growth and that the "old" industries are forever being replaced by new ones - and continue to be so. If capitalism is true to its development so far, the industries supposedly at the point of market saturation today will be heard of only in history books in the future. It should also be noted that devices exist - from proverbially "reinventing the wheel" to built-in obsolescence - which ensure that the long-term growth in cars, televisions and many other lines of production continue apace. There used to be near-physical market saturation for black-and-white TVs, but did that stop growth in the market for television? - Hitachi, Sony and Ferguson are testament to the fact that it did not. The manufacturers replaced black-and-white with colour, then brought out VCRs, then replaced colour mono with colour stereo, then stereo with surround-sound. Market saturation disappeared in a flurry of pound notes and dollar bills.

    In truth Davidson and Rees-Mogg have a far better argument than Marachetti's to justify their view of the major world economic slowdown. Their second, more plausible view, is that capitalism is currently drowning in an ocean of debt:
    Debt cannot go on compounding faster than output forever. At the rate it expanded in the United States in the 1980s, interest payments would consume 100 per cent of GNP by the year 2015. No such thing will happen. Long before debt reaches that extreme, it will be wiped away...One way or other we expect a great reckoning. A settling of accounts. We expect the long economic boom and credit expansion that began with World War II to come to an end. The end, when it comes, will not only reveal the insolvency of many individuals and corporations, it may also bring bankruptcy to the welfare state and breakdown of authority within political economies.
    There is more than a grain of truth in this. In many world economies, debt is compunding at a faster rate than income and total world indebtedness, by every yardstick that can be named, was heavier at the start of the present slump than at the beginning of any other. In the United States alone the rate of debt to national GNP is now 195 percent, compared with 120 percent before the 1929 crash.

    History has demonstarted that sustainable recoveries only begin when a considerable of debt built-up during the boom has been liquidated. If debt liquidation is insufficient, growth will remain sluggish even when "recovery" has supposedly begun, such as at present. Davidson and Rees-Mogg estimate that the amount of debt still to be liquidated during this slump in the US is three to four trillion dollars-worth.

    The extension of credit effectively delays the onset of capitalism's periodic economic crises only to make them worse when they finally occur. In all economic booms some industries over-extend their operations in the pursuit of further profits and find that they have overproduced for their particular markets. A case in point in the present slump was the commercial property sector.

    Perilous Situation
    While some industries get into difficulties, other sections of the owning class find that their profits are increasing. The banks, acting as intermediaries between the buyers and sellers of money capital, lend out their accumulated capital to the enterprises in difficulty to keep them going. But this cannot generally correct the fundamental disproportion in growth between the industries and uneven expansion in relation to market demand. Through knock-on effects in industry overproduction spreads and the demand for money capital rises, pushing interest rates up. In this way, the mechanisms of credit extension in the capitalist economy papers over the underlying weaknesses in the productive sphere and buys firms some breathing space before the crisis comes - and this usually comes when the demand for credit is highest and interest rates are at their peak. However, the ultimate outstanding debt increases through this process, requiring a much greater "correction" in the slump as capital assets are devalued to bring productive capacity back into line. The result is not merely an industrial slump, but a financial, banking and property crash as well, as in the 1930s.

    Davidson and Rees-Mogg see this as the present outlook for world capitalism. Mounting corporate, government and personal debt has placed the world economy into its most parlous situation for decades. They are all too aware that the only way out for capitalism, sooner or later, is a financial reckoning which will bring about a growth in poverty, a reduction in social welfare programmes and possibly more armed conflict between nation states.

    Their analysis of the situation ends there. There is no prescription for how the slump can be avoided - we must just let it wash over us. The authors are completely blind to how the world might be organised to avoid financial slumps, without the market mechanisms which causes them in the first place. They dismiss the Soviet Union's model of capitalist planning out of hand, as well they might, but in doing so claim that this proves socialism to be an impossible dream. Particularly crass is a chapter on the fall of the Eastern Bloc - which socialists predicted - containing the assertion that this demonstrates the failure of Marxism. Indeed, some of the comments in this chapter, like the assertion on page 188 that workers exploit capitalists rather than the other way around, defy rational analysis and are completely at variance with the otherwise coherent account presented. But, of course, the likes of Davidson and Rees-Mogg want workers to think that there really is no alternative to capitalism, however bad it may be, and that, despite everything, workers still get a good deal out of the system. Unluckily for them some of us know different.
    Dave Perrin

    Weekly Bulletin of The Socialist Party of Great Britain (78)

    Dear Friends,

    Welcome to the 78th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

    We now have 1425 friends!

    Recent blogs:

  • Cold charity
  • Who are "we"?
  • The struggle for democracy
  • Quote for the week:


    That time of the year is almost on us

    When department stores will cheat and con us,

    Trying to steal our money from us.

    So you'd better watch out because

    There's a fat old jolly bloke

    With the long white beard and the bright red cloak,

    Who'll do his best to send us broke?

    It's Santa Bloody Claus.

    Eric Bogle, Santa Bloody Claus.

    Continuing luck with your MySpace adventures!

    Robert and Piers

    Socialist Party of Great Britain

    Saturday, December 20, 2008

    Manufactured scarcity (2008)

    Book Review from the December 2008 issue of the Socialist Standard

    Green Capitalism. Manufacturing Scarcity in an Age of Abundance. By James Heartfield. www.heartfield.org .2008

    James Heartfield is associated with the former Trotskyist (British) Revolutionary Communist Party (RCP) which used to publish Living Marxism (LM) and has moved on considerably since “the collapse of Communism” at the end of the 1980's and the dissolution of the formal RCP organisation in 1997. These days the so-called “LM network” produces the edgy www.spiked-online.com website and organises debates and events under the auspices of the Institute of Ideas and a myriad of propaganda campaigns expedited largely through a robust, sometimes entertaining, and not ineffective style of media entryism.

    One area this current has been particularly interested in over the last two decades is in promoting a full-on critique of the reactionary imperatives of the politics of “Environmentalism”. In Green Capitalism James Heartfield reminds us that the profit system is essentially a system of rationing, which is now, in certain circles and in a variety of ways, being dressed up as “greenwashing” by Big Business and Governments – as the contemporary ruling elites reinvent scarcity in an age of abundance.

    Heartfield rightly presents the capitalist mode of production as an epoch in which the force of human ingenuity has sought to ameliorate the exigencies of life through technical breakthrough with the result that happiness is the condition for most of us in Western societies. I do, however, take issue with the notion that one out of any of the 300 workers at the Lombe silk works on the Derwent in 1721 or the 5000 wage slaves at Arkwright's Mill in Cromford in 1771 woke up for work every day with a sense of unmitigated joy. Whilst those long deceased exploited workers are no longer “variable Capital”, my modern-day neighbours don't seem to enthuse much about the conditions of their means of living whilst having a sup on a Friday night in the local pub, either. Nevertheless, the material gains we have made in the interim between the first factories and 21st century capitalism are impressive.

    In a summation of capitalist economics Heartfield tackles the neo-classical economists and suggests they were in effect “Rationers by Trade“ (my phrase not his) but you get the point. Notwithstanding that, the book opens with a great sense of optimism and opines succinctly upon the gains made by the working class under capitalism. The author explains carefully the concomitant progressive and destructive forces at play within the profit system and hints at transcending towards a more rational form of society founded upon technological progress.

    This work sets out to show how modern Environmentalism came about as a consequence of ruling elites ideas about scarcity. Heartfield‘s argument is that, in Western society, the myth of the “fragile” planet emerged as a consequence of the retreat from production in the original heartlands of industrial capitalism.

    Much of the Green Capitalism provides an excellent exposition of the fools' errand of “Environmentalism” and the levers of power behind that aspect of the moribund profit system. Meanwhile, at times the prose is poor and plodding, and some of the referencing is both points-scoring and unnecessary to make the more essential issue clear. Do we really need to be lectured about Trotsky's ideas on production? Some of this stuff would leave the general reader all at sea in very short order. Whilst a final extraordinary point is clearly made: the world population grew from 791 million in 1750 to 5.9 billion in 1999, as a consequence of advances in agriculture, transport, sanitation, industry. Many of that number exist at the level of subsistence – and it should not be that way! So, from an editorial perspective the narrative simply peters out – a bang and a whimper! Where is the alternative?

    Notwithstanding that, this book has much to recommend it, not least for cocking a timely snook at both the modern-day misanthropes who see mankind as a plague upon the planet and the long-dead 'dismal scientists' of neo-classical economics who could not comprehend a theory of productive growth through collective endeavour. Heartfield puts a well aimed, populist boot into the modern-day Green Capitalists – Branson, Goldsmith, Charles Windsor, Al Gore, Bill Clinton, Lord (Peter) Melchett, and makes reasoned argument that Western Capitalism has got to go Green for the sake of exploiting new sources of profit.

    There is an argument that modern socialists need to take on the Green catastrophists and promote technology and real democracy to face down the spectre of Austerity Capitalism in the 21st Century - in order to kill the pernicious profit system once and for all.
    Andy P. Davies

    Thursday, December 18, 2008

    Weekly Bulletin of The Socialist Party of Great Britain (77)

    Dear Friends,

    Welcome to the 77th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

    We now have 1423 friends!

    Recent blogs:

  • Co-operation
  • Banks - Who needs them?
  • 150 Years of the Communist Manifesto
  • Quote for the week:

    "The credit system has a dual character immanent in it: on the one hand it develops the motive of capitalist production, enrichment by the exploitation of other's labour, into the purest and most colossal form of gambling and swindling, and restricts ever more the already small number of exploiters of social wealth; on the other hand however it constitutes the form of transition towards a new mode of production." Marx, Capital, Volume III, Chapter 27 (1894)

    Continuing luck with your MySpace adventures!

    Robert and Piers

    Socialist Party of Great Britain

    Thursday, December 11, 2008

    Weekly Bulletin of The Socialist Party of Great Britain (76)

    Dear Friends,

    Welcome to the 76th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.

    We now have 1416 friends!

    Recent blogs:

  • Booms and slumps - what causes them?
  • Capitalism, war and atrocity
  • Future al Fresco
  • Quote for the week;

    'A rise in the price of labour, as a consequence of accumulation of capital, only means, in fact, that the length and weight of the golden chain the wage-worker has already forged for himself, allow of a relaxation of the tension of it.' Marx, Capital, Volume I, Chapter 25 (1867)

    Continuing luck with your MySpace adventures!

    Robert and Piers

    Socialist Party of Great Britain

    Friday, December 5, 2008

    Material World: The next capitalist frontier (2008)

    The Material World column from the December 2008 issue of the Socialist Standard


    Over the last few centuries, one region of the planet after another has been “opened up” to capitalist plunder. Often rival capitalist powers fought over the spoils of conquest. In the 19th century they had the “scramble for Africa.” In the 21st they are scrambling to control the resources of the Arctic, which global warming and technological advance are making accessible to exploitation (Socialist Standard, September 2007).

    Once the Arctic and Antarctic are brought fully under the sway of capital, what next? Won’t that be the end of the story, the closing of the last frontier? There remains space, to be sure. But won’t the costs of extracting resources and transporting them to Earth be prohibitive? So you might think.
    In fact, the strategists of the six powers that now have active space programs – the United States, Russia, the European Union, China, India, and Japan – already have their sights on the commercial and military potential of the cosmos.

    Helium-3
    On 22 October India launched the Chandrayaan-1 satellite, and on 11 November it entered Moon orbit. One of its main tasks is to map deposits of Helium-3 (He-3). This isotope, used together with deuterium (H-2), is the optimal fuel for nuclear fusion: in particular, it minimises radioactive emissions. It is very rare on Earth – according to one estimate, only 30 kg is available – because the solar wind that carries it is blocked by the Earth’s atmosphere and magnetic field. The dust and rocks in the Moon’s surface layer contain millions of tonnes of the stuff.

    It has been calculated that a single shuttle flight bearing a load of 25 tonnes (currently valued at $100 billion) would meet energy demand in India for several years or in the US for one year, while three flights a year would suffice for the world (Guardian, 21 October; Tribune, 23 October).

    The main problem is extracting the He-3 as gas from the lunar soil. This requires heating the soil to a temperature of 800ºC. in furnaces or towers, using solar power. (Silicon for solar cells is also abundant on the Moon.) To collect enough gas for one load, it would be necessary to process 360,000 tonnes of soil. Nevertheless, technologically this is believed to be feasible; modern furnaces do actually process such huge quantities of material. Some specialists question whether it would be economically feasible to strip mine the Moon in this way.

    Despite uncertainties, Indian strategists hope that the Chandrayaan-1 satellite will enable India to “stake a priority claim” on He-3 resources when lunar colonization begins (SkyNews). India’s main rivals in this field appear to be the US, which has “re-energised” its Moon program and plans to establish a manned base by 2020, and also China.

    Enough for everyone?
    Given the abundant supply of He-3 relative to foreseeable demand, why should India need to compete with other space powers for preferential access? Surely there is more than enough for everyone.

    Yes, but some locations on the Moon’s surface are much better for mining than others. Finding the best locations is the main aim of satellite exploration.

    First, the nature of the terrain will obviously matter when building bases and installations, whether operated by human workers or robots. It will be a great advantage to have water (ice) available nearby.

    Second, it will be least expensive to work in areas where deposits are richest, where the smallest amount of soil has to be processed for each unit of gas extracted.

    Third, reliance on solar power for soil heating (and other purposes) puts a premium on those parts of the lunar surface which are exposed to sunlight for most of the time.

    These are also the warmest regions (by lunar standards). An example is the Shackleton Crater at the South Pole. India is especially interested in this area, and it is also here that the US wants to establish its base.

    Militarisation of the Moon?
    Certain places on the Moon are already thought of as “strategic locations.” Thus, the topography of Malapert Mountain makes it an ideal spot for a radio relay station. Near the Shackleton Crater, it enhances the strategic value of the crater area.

    Considerations of this kind will become more important in the event of the Moon’s militarisation. This may happen as a result of competition for land and resources on the Moon itself. Or it may happen simply as an extension of existing military preparations: lunar stations may serve as reserve command centres for wars on Earth.

    Even if international agreements are reached to constrain the process of militarisation and divide the lunar surface into zones belonging to the various space powers, military threats may arise from “dual use” technologies. Let us suppose, for instance, that instead of mining He-3 a space power decides to generate electricity on the Moon using solar cells and transmit it on microwave beams to a receiving station on Earth. The problem – under capitalism – is that these same beams may equally well be used as powerful weapons against Earth targets.

    There will also be potential conflict between the space powers and other countries that for one reason or another are unable to compete in this sphere. Like the club of nuclear weapons states, the space powers may constitute themselves as an exclusive club and think up a rationale for joint efforts to thwart “space power proliferation,” that is, to prevent other countries from acquiring space capabilities. The two clubs will, of course, largely overlap.

    Space programs and socialism
    It is absurd for humanity to venture into the cosmos while still divided into rival states and still dominated by primitive mechanisms like capital accumulation. Even the first people in space, almost half a century ago, could see that our planet is a single fragile system.

    A world socialist community will have to decide which elements of existing space programmes to retain and which to freeze or abandon. National programmes that are retained will be merged into global programmes, eliminating the wasteful duplication inherent in the competition among space powers. Ambitious programs of purely scientific interest may be deferred pending the solution of more urgent problems.

    Attitudes in a socialist world toward reliance on space activities may diverge quite widely. Some people may wish to enjoy the benefits of a complex high-consumption lifestyle made possible by He-3 fuel for nuclear fusion and other off-Earth technologies. Others may prefer to avoid the irreducible risks of a space-dependent strategy and solve Earth’s problems here on Earth, at least to whatever extent this proves possible.
    Stefan