Archive for the ‘Capitalism’ Category

1 Million US Children Fall Asleep Hungry

November 18, 2009

The Guardian reports that 1 million American children regularly go to bed hungry, and that in 2008 1 American in 6 – that is 50 million people – has at some point been unable to afford food sufficient to keep themselves healthy. 6.7 million regularly do not have enough to eat. And this information does not come from a poverty or children’s charity, but from the US Government itself. The figure of 50 million is a rise of a third on the year before. Not only that, but the Secretary for Agriculture, Tom Vilsack, said he expected this year’s figure to be worse again. 17 million children live in households that experienced food shortage at some time. Unsurprisingly, those worst affected are from minorities. There are millions more on foodstamps, or who rely on foodbanks. Significantly, Feeding America, which runs 200 food banks helping to feed 25 million people, says that 40% of those it helps are families with at least one working adult.

Such figures, we are expected to say, are shocking. Which they are. At another level, however, they are the predictable outcome of the capitalist system. We are used to see people suffering hunger, and starvation as well, in Africa and Asia, but we do not expect to see it in the most powerful country the earth has ever seen, with unprecedented riches and massive productive capacity. But herein lies the point. America has a very vicious and brutal form of capitalism. Although it can be highly regulated – one need only look at salary caps and player drafts in sports to see an area where US capitalism is more regulated than European – US capitalism as we all know is much more unchecked than we in western Europe are used to, with brutal consequences for those at the sharp end of economic exploitation. That it is not just the unemployed but large numbers of working people that can’t feed their families drives home how unforgiving capitalism is.

Vilsack talks about the need “for us to get very serious about food security and hunger, about nutrition and food safety in this country.” I’m sure that is music to the ears of US agri-business, which has long benefited from the patronage of its government, both through subsidies and protection against foreign competition. They have also been benefiting recently from an alliance with the energy industry. Fidel Castro has been pointing out for some time the danger to the world’s food supply and humanity’s poorest and most vulnerable represented by the promotion of biofuels. Food security means much more than simply ensuring food on the table. The US must take into account the environmental and human impact of their policies on the planet as a whole.

In the Communist Manifesto, Marx and Engels predicted that modern capitalism would result in the immiseration of the working class, provoking the proletariat to overthrow the system and institute socialism. While they in fact meant immiseration in relative rather than absolute terms, it is undeniable that the ability of capitalism to raise the absolute living standards of workers to an acceptable level of comfort has been responsible for the survival of liberal capitalist political systems. That success has blinded a lot of people on the left to the real nature of capitalism. Statistics such as these, and the figures from Britain showing that inequality has worsened under Labour, should help remove their blinkers. They should also demonstrate to those on the left inclined to single-issue campaigning the absolute centrality of politics. The main difference between the US and western Europe lies in its political culture. The US singularly lacks any significant form of working-class political organisation. Hungry children and families, ordinary people unable to access decent healthcare, parents working two and sometimes three jobs in a desperate effort to make ends meet, drug culture, criminality, apathy, and capitalism running amok are the results. If we are not to follow the US example, then we must remember the centrality of the organised working class, in trade unions and political parties.

As for the President, who has been making welcome and strenuous efforts to extend healthcare, what was his response? The situation is “unsettling”. Change you can truly believe in.

International Solidarity for Coca Cola Workers and Seán Garland

October 27, 2009

greekcocacolademo

This post also appears over at Cedar Lounge Revolution.

The strike by Coca Cola workers over plans to sack 130 workers and outsource their jobs pits Irish workers against Coca Cola HBC Ireland Ltd, which is a subsidiary of the Greece-based Coca Cola HBC. Following a request from the International Department of The Workers’ Party, the Greek Communist Party (KKE) and the workers’ organisation PAME organised a protest in solidarity with the Irish workers at a recent shareholders’ meeting of Coca Cola HBC in Athens. The KKE has also been a strong supporter of Seán Garland, with a delegate from their international department who was present at the 2005 Ard Fheis when Seán was first arrested taking part in protests, and protests taking place in Athens within days. The KKE also raised the issue in the European Parliament.

Meanwhile, two musical giants have added their voice to the campaign against the extradition of Seán Garland, who is due to appear in court again tomorrow. The 90-year old folk music legend Pete Seeger has been active in left-wing politics since the 1930s. Like the Hollywood Ten, he refused to plead the fifth amendment against the McCarthyite House Un-American Activities Committee, and was subsequently convicted of contempt of Congress, a conviction subsequently overturned. Seeger opposed the Vietnam War, and was active in the US Civil Rights movement. He was one of those who helped popularise its anthem “We Shall Overcome”. His is a powerful voice to be added to the campaign against the extradition, and hopefully will help raise the profile of the issue in progressive circles and beyond in the United States. Christy Moore, who of course needs no introduction here, has also added his support to the campaign, another sign of his long-term commitment to progressive causes. Both of their signatures are signs that the injustice of attempting to extradite Seán Garland to the US is plain for all to see.

And the British branch of the Campaign to Stop the Extradition of Seán Garland is holding an awareness music and social night to raise the profile of the case in Britain. It will addressed by Councillor Ted Tynan of The Workers’ Party. It takes place in the Green Room in Lewisham High Street on Saturday October 31st at 8pm.

Internationalism is alive and well.

Class, Community and Starbucks

September 29, 2009

The Telegraph reports the work of Professor Bryan Simon which argues that Starbucks has had an extremely detrimental effect on community life. The report comes ahead of the launch of Simon’s book on Starbucks, Everything But the Coffee. Based on research in nine countries, Simon argues that although Starbucks supposedly offers a communal experience, in reality most of its shops represent a conglomeration of individuals.

“People immediately create their own little private, gated communities. You come in, set up your laptop and put on your headphones,” he said yesterday. “You couldn’t be more alone in public if you wanted to be.”

Simon compares the coffee shops of today to the coffeeshops of the past, and their role in providing a forum for debating issues of political importance.

He said the rise of Starbucks and its rivals was a far cry from the British coffee houses of the 18th and 19th centuries “which were the cornerstone of democracy with a small ‘d’”.

The most interesting part of the article though is that which discusses the class aspect of Starbucks, and its relationship to the aspirational consumerist lifestyle. By opening up in expensive areas, and charging high prices, Starbucks creates a feeling among its clientele that they are successful, sophisticated, and fashionable. This is a reflection of how modern consumer capitalism seeks to provide atomised consumers with the illusion that they are part of a broader community. Whether it is the self-congratulatory recognition of a fellow owner or an iPhone or whatever the gadget du jour is, or online fora to discuss ownership of a pricey item, it provides people with a sense of being part of something bigger and yet exclusive, while in reality hindering the development of genuine community feeling. As Simon points out, sitting in a room with like-minded people is not the same as engaging with them.

In this sense, Starbucks is representative of a broader issue within society. Capitalism has succeeded as never before in driving out a sense of the collective, and the organisations capable of collective action. Whether it is non-union workplaces or the fetishisation of the small business by Maggie Thatcher, the impulse is the same. To wage an ideological war against the solidarity necessary for class politics. Starbucks stands for many things. But it is perhaps as a representative of the fall in solidarity that it is most significant.

Trickle Down Economics No Answer

September 21, 2009

The Irish Left Review has a short article by the Research Section of The Workers’ Party analysing the failure of trickle down economics in Northern Ireland, in light of Peter Robinson’s declared faith in trickle down economics. Here is its conclusion, pointing to the twin failures of the current set up:

Just as the current Stormont regime has sectarianism built into its DNA, it seems as if any social democratic policy urges will be severely constrained by the privatising agenda of the UK Treasury. And nothing will trickle down to the working class.

Class Politics Versus Identity Politics

August 23, 2009

I’ve just put this post up at Cedar Lounge Revolution, but I’m sticking it up here too.

Interesting article from the current London Review of Books by Walter Benn Michaels, a professor of literature at the University of Illinois at Chicago. The article touches on some of the themes raised in this recent piece I wrote on the necessity for the left to concentrate on economic issues, specifically the failure of identity politics to address the fundamental importance in society of economic relations. The flavour of it may be guessed by the fact that Michaels has written a book entitled The Trouble with Diversity: How We Learned to Love Identity and Ignore Inequality (which I am planning to order for myself in the near future).

Michaels starts by talking about how over the last forty years sexism, racism, and homophobia have declined in America, and obviously acknowledges this as a good thing. And then there is the ‘But’. And it is a big ‘But’.

But it would be a mistake to think that because the US is a less racist, sexist and homophobic society, it is a more equal society. In fact, in certain crucial ways it is more unequal than it was 40 years ago. No group dedicated to ending economic inequality would be thinking today about declaring victory and going home. In 1969, the top quintile of American wage-earners made 43 per cent of all the money earned in the US; the bottom quintile made 4.1 per cent. In 2007, the top quintile made 49.7 per cent; the bottom quintile 3.4.

He goes on to make another important point:

More generally, even if we succeeded completely in eliminating the effects of racism and sexism, we would not thereby have made any progress towards economic equality. A society in which white people were proportionately represented in the bottom quintile (and black people proportionately represented in the top quintile) would not be more equal; it would be exactly as unequal. It would not be more just; it would be proportionately unjust.

Michaels believes that the increasing intolerance for racism, sexism and homophobia is in accordance with the key ideas of neo-liberalism – to put it crudely, when Regan and co and later Bush and his cohorts argued for spreading democracy it wasn’t entirely a front for economic imperatives, but a genuine part of their world view, wherein legal equality and a heavily skewered version of meritocracy were key components of their ideal socieities. But, Michaels points out, just as it is intolerant of discrimination on grounds of gender, race or sexuality, so neoliberalism increases the tolerance of economic inequality.

Hence the extraordinary advances in the battle against discrimination, and hence also its limits as a contribution to any left-wing politics.

Couldn’t (and didn’t) put it any better myself. Michaels swiftly outdoes himself though.

But a diversified elite is not made any the less elite by its diversity and, as a response to the demand for equality, far from being left-wing politics, it is right-wing politics.

Exactly. Hence the facility with which so many seeming radicals obsessed with identity have shifted quickly into the realms of vacuous New Labour politics, if not further to the right.

Michaels singles out the US universities as an example of the inadequacies of identity politics, whereby the race for diversity covers up the failure to address economic inequality. In the UK, the same function is performed by Oxbridge admitting state school pupils whose social and economic background is by and large the same as those of their public school cohorts. In Harvard, which I think takes 40% legacy students (other colleges take more and won’t even reveal the figures), 9% of students are black – but only 7% are poor. Michaels uses the outrage over the recent arrest of Professor Gates in Harvard as indicative of the fact that anti-racism and anti-discrimination enables the elite to feel better about the possession of its wealth – if discrimination against peple is removed, then their wealth is because of their talent, not structural inequality. And the poor deserve to be poor.

in a society like Britain, whose GINI coefficient – the standard measure of income inequality – is the highest in the EU, the ambition to eliminate racial disparities rather than income inequality itself functions as a form of legitimation rather than as a critique.

I’d say that in Britain gender and sexuality would be more important than class, but the point holds.

Michaels’ article is itself a review of a report from January 2009 from the Runnymeade Trust, Who Cares about the White Working Class? The introduction by the report’s editor begins with the subtitle ‘Class Re-emerges in Political Discourse’. Reintroduced, apparently, by Harriet Harman of all people, in a speech to the TUC conference in September 2008. The report points out that when it has suited them, politicians and pressmen who object to the use of class as a political term when it smacks of increasing equality have expressed a great desire to ensure that the white working class is not left behind when they might support the causes of the xenophobic right. The introduction ends with the hope that it will

initiate a dialogue to ensure that a re-emergence of class onto the political agenda will not feed divisions, but promote equality for all.

And here we need to return to Michaels, to see how in the absence of clear class politics, the language of class can obfuscate rather than elucidate the challenges for the left.

In the event, however, what Who Cares about the White Working Class? actually provides is less an alternative to neoliberal multiculturalism than an extension and ingenious refinement of it. Those writing in this collection understand the ‘re-emergence of class’ not as a function of the increasing injustice of class (when Thatcher took office, the GINI score was 0.25; now it’s 0.36, the highest the UK has ever recorded) but as a function of the increasing injustice of ‘classism’. What outrages them, in other words, is not the fact of class difference but the ‘scorn’ and ‘contempt’ with which the lower class is treated.

Michaels highlights a dangerous tendency in what he calls ‘left neoliberalism’, whereby being working class is like being a member of an ethnic group, and that all that is needed is to treat them with respect rather than addressing the injustice that workers suffer.

The great virtue of this debate is that on both sides inequality gets turned into a stigma. That is, once you start redefining the problem of class difference as the problem of class prejudice – once you complete the transformation of race, gender and class into racism, sexism and classism – you no longer have to worry about the redistribution of wealth. You can just fight over whether poor people should be treated with contempt or respect. And while, in human terms, respect seems the right way to go, politically it’s just as empty as contempt.

Michaels points out how race in the US has functioned similarly to sectarian identity in Ireland. Poor whites have been encouraged to identity with the white elite, while poor racial minorities have been encouraged to identify with rich people of similar colour, and see their wealth as somehow reflecting well on them. Anyone familiar with Daniel O’Connell’s selling out of the forty-shilling freeholders, never mind the history of Northern Ireland, will recognise this pattern. At the same time, anti-discrimination in Michaels’ argument seeks to form a sense of solidarity between the liberal white academic and the African-American woman who cleans his office for a tenth of his salary. She is supposed to recognise that he values her as a person, and her culture as equal. And thus forget about the income disparity. Michaels doubts that she does, and he may well be right. But the problem for the left is that far too many people do buy into the myths of an unequal society. Again, Northern Ireland gives the perfect example.

So how can we apply Michaels’ argument to our own situation? Ireland is a changing society, with growing diversity in colour and culture among its inhabitants. That brings challenges, which are often met by placing people into pre-determined boxes, especially in NI, where we remain Protestant Atheists and Catholic Atheists in the census. And we must meet those challenges. And sections of the broad left are doing so. One of the issues on which trade unions have been active in the north of late is in reaching out to immigrant communities, and there is a burgeoning NGO sector (some of it state-funded) dealing with these communities. Several recent Workers’ Party Ard Fheiseanna have been addressed by representatives from immigrant communities too. But whereas The Workers’ Party maintains its focus very clearly on class, the same cannot be said for everybody. While Ireland changes and throws up new situations, the Left must place class at the centre of all it does, including issues surrounding immigrant communities and racism. We cannot allow ourselves to be sucked into the vacuous equality-speak of what Michaels terms the left neo-liberals. A case in point would be the complete mess that has been made of the NI Human Rights Bill by the Human Rights Commission, where at times it seems every interest group has been included to the detriment of the overall goal of providing a strong, simple, and clear Bill of Rights. As the diversity of Irish society grows, we must avoid the temptation to fall into the identity politics trap, as has happened so many before. Class is the fundamental division of society. We know that. We must remember it. And we must communicate that message at all opportunities.

Trouble at t’Mall

June 17, 2009

In March 2008, a massive shopping centre opened in Belfast after years of work that refashioned a significant part of the city centre. Victoria Square was opened with tremendous fanfare and trumpeted as symbolic of a bright new future under the new dispensation. It hasn’t quite worked out that way. Several stores have closed due to the failure of their parent companies, and now comes the bad news that 100 more jobs are being lost with the closure of two restaurants in the supermall. Although those who run the centre have announced that four new retailers will create 70 new and part time jobs, it is clear that the mall itself has failed to meet the expectations of those who built it, and those who saw it as representing a bright new economic future.

This raises the question of the economic development strategy pursued by the authorities in NI over a number of years. Basically, all our eggs have been put in the basket of low-paid and unskilled jobs in call centres and the retail sector on the one hand; and begging the Americans and EU for investment on the other. This may have seemed logical after the failure of heavily-subsidised high-profile industrial enterprises – Delorean being the classic example – and the Thatcherite policy of destroying the UK’s industrial base. It was also a strategy facilitated by the massive expansion of credit on which the false economy worldwide has been based, but which governments and economists told us was bringing an end to boom and bust.

However, as we can see from our own experience as well as that of others, it is not and cannot be a sustainable economic policy. Even the very term, ‘the real economy’, that has become popular tells us where we should be focusing our efforts. If we wish to have a government strategy aimed at creating valuable and sustainable jobs, then the NI executive must focus its efforts on developing native – preferably state-owned – industry jobs, whether they be in technology or manufacturing. Will they have the courage to stop up to the plate and argue for this against the prevailing hostility to the state’s involvement in the economy (unless it is giving huge sums to banks and multi-nationals of course)? I doubt it. But I’d like to see them do so. And we need them to do so.

UK Income Gap Widens

May 8, 2009

I can’t really say I’m shocked by the news in the Guardian that the income gap between rich and poor has widened in the UK, and has reached the greatest level since modern records began in the 1960s. The gap has worsened in particular since Labour’s last election victory in 2005 with income for the rich rising and that of the poor actually falling. 15% of UK pupils are now eligible for free school meals, meaing their household income is below £15,575. Inflation has seen 20% of the UK population with the lowest incomes seeing income cuts of 2.6% in real terms, while the richest saw their income rise by 3.3%. Attempts to end child poverty have had little impact. 11 million adults – about one in six -live below the poverty line. These are staggering statistics. During a decade of sustained economic growth, the poor have actually suffered declining living standards, both relative to the rich, and more recently in real terms.

Worse is the most damming statistic imaginable for a Labour government

As a result, income inequality at the end of Labour’s 11th year in power was higher than at any time during Margaret Thatcher’s premiership.

What can you say about that?

The Irish Right at War

February 27, 2009

I’ve just put this up over on Cedar Lounge, but I’m sticking it up here too. Because I can.

There has already been some mention here of the remarkable ten minute televisual feast that was Junior Finance Minister Martin Mansergh and Margaret Ward of the Irish Times debating the southern economy on Hearts and Minds last night. Available to us all thanks to Pete Baker at Sluggerotoole. Without him some of us may have been denied the opportunity to see Mansergh demonstrating that he is not cut out for the cut and thrust of frontline politics by nearly losing it. Noel Thompson’s introduction pulled no punches, describing the Celtic Tiger as “toothless tabby” and the south set to be the worst performing developed economy in the EU, as well as raising the issue of a European bailout. Margaret Ward has offered her account of the debate, and I want to pick up on some of what she said, and how it relates to the emerging discourse of crisis we discussed here.

So what was Ward saying? She accused the government of fiddling while Rome burned, arguing that its inaction was itself a form of action. Here is her own paraphrase of what she said

Paraphrasing it I basically said this was an emergency and that we were at war for our economic survial. It was
time for unity. The time for party politics is over. We all need to come together, start talking to the social partners and make cuts
across the board. Why isn’t the Financial Regulator organisation in the dustbin? All senior bank management still not gone?
People are frightened – they’re losing their jobs, emigrating, huge numbers of small businesses are failing with banks refusing to
make loans…They need some hope.” I asked him loads of questions and asked him what they were doing about it. Why weren’t
they asking for help from the extraordinarily intelligent experts we have in this country? Why weren’t they communicating a plan to
the people?

As with Eoghan Harris, John Gormley and others, Margaret Ward is convinced that there is something rotten in the state of the Irish economy, and that we are now fighting for our very life. Engaged in a war no less. I’ll come back to the implications of this argument at the end. However, unlike them she believes that the corruption scandals have hurt the Irish economy in the eyes of the world.

If you are not extremely angry about what is going on then you should be. Ireland will be bankrupt in about 12 months. We are burning through about €1 billion or so a week. Internationally, Ireland Inc. is viewed as corrupt country where cronyism is rife and that’s accurate. Are you happy with that reputation? I’m not. It’s embarrassing. We ALL have to inform ourselves about the FACTS and then take action – quickly.

She was more explicit on Sluggerotoole

No one wants to lend to us because we are seen as corrupt fraudsters. As a result, we pay more to borrow money than other countries.

The other half of her argument was that the government was not ensuring that enough money was getting to private enterprise from the banks, and that a new bank should be created by the state to loan to small business. No arguments from me about the need for a new bank, about the need to ensure that businesses do not go to the wall where possible, but of course we also need to expand this to individuals, and especially to their mortgages.

It’s fair to say that Mansergh was not best pleased with her attitude and arguments. It’s also fair to say that I find myself in the unpleasant and unexpected position of being on his side of the argument. Mansergh made the point that the government was not going to clobber the people all at once. Ward’s response was an outraged and repeated “Why not?” The implications of her question are remarkable. While trying to appear as the voice of the man on the street, alone, abandoned and ignored by government, the actual consequences of her policies being adopted are simple. She said the government needed to talk to the people, to communicate with it. That is all well and good. But what does it seem she thinks the government should actually be saying? We are cutting your wages, your benefits, your public services, your schools, your hospitals, and our commitments to you and to social welfare. Instead we are going to concentrate on ensuring that we give money to business so that if you are lucky some of this will trickle down to you (because there was no mention of helping individuals out, just businesses). This is her version of offering the people hope. Spare us.

As I’ve noted already, this argument is being made by a range of government and media figures in the language of war. Ward in fact argued that there was a danger of being “economically colonised” by Europe. Yet it never seems to dawn on any of them to ask what governments do during times of war. Do they cut public spending? Do they reduce their activity? Do they downsize their role in the economy and in the lives of the citizens? Of course not. In order to win a war, the government takes into its own hands the direction of the entire economy. It creates new factories and new jobs. It suspends political ideology in favour of the efficiency offered by the collective energies of the people harnessed by the state. Perhaps when they meditate a little more on that, Ward and co might rethink their use of the terminology, or even the supposed solutions they are offering to the crisis.

A new low from Ryanair and the Power of the State

February 27, 2009

So, Ryanair is thinking of charging people to use the toilets on its planes. The depths to which it will sink should have long ceased to amaze us, but I’m still quite shocked. The question is, faced with the power of a multinational and its determination to wrack every last drop of profit out of its consumers, is there anything we can do? It seems to me that this is a health and safety issue, and that the state – or the EU – should regulate to ensure that this is impossible. Ryanair needs its wings clipped, so to speak.

Terminated

February 19, 2009
A solution to his party's factional struggles?

A solution to his party's factional struggles?

So, California’s public sector is, not to put too fine a point on it, scheduled for termination. But not at the hands of the man-machine himself, but rather his cohorts in the Republican party in the state Senate, who are refusing to pass his budget, insisting on tax cuts for ideological reasons. Arnie is one vote short of the two-thirds majority needed. The consequence is that one in five workers employed by the state will lose their jobs. This is, at a local level, the same type of dispute that held up Obama’s stimulus package. So we have a Republican arguing that they will protect the people from more taxes. Great I’m sure. Although if you lose your job because of this, probably not so good. I hope that at least one Republican will see sense, though I doubt it. Let’s just hope the voters punish them, and hard, for it at the next opportunity. I’m sure though there are plenty in the Irish Republic’s establishment taking heart from the Republican comrades in California.

ADDS: Splintered Sunrise has a post putting this story in much broader context.