Why I will be voting for Romayne and Will

Very soon Green Party members will be receiving ballot papers for the election for Leader, Deputy Leader and GPEx posts. Understandably, most attention will be focused on the election for Party Leader. The leadership election was precipitated by the decision of our MP Caroline Lucas not to stand again after completing a two year term. As I said in a previous post on this issue:

"..party leader Caroline played a blinder as an advocate for the Party's policies of social justice, economic regeneration, fighting climate change, and support for the public sector. As leader, she is going to be sorely missed, and hard to replace..."

I don't want to get bogged down in the leadership election rules but the rules state that for the leader and the deputy, each post must be filled by a person of the opposite gender. So if a male wins the leadership, the deputy must be female and vice versa. Voting is by STV so that does make it possible to support one candidate of either gender for either position. In this post I want to focus on the leadership election.

There are four candidates; Peter Cranie, Natalie Bennett, Pippa Bartolotti and Romayne Phoenix. All of the candidates have put their case, both on their own websites, Facebook, and through party hustings. As far as the latter is concerned, arrangements for hustings were haphazard to say the least, and little account was made by the organisers of the fact that some of the candidates might not be able to attend. In fact, not all the candidates could attend all of the hustings. Next time we need to do much better in ensuring we have a coordinated and organised programme of hustings, including online hustings.

I have made no bones in this blog about the fact that I am an ecosocialist and that I believe that the Green Party must be a radical party or otherwise it has very little useful purpose. We are not here to tinker with the current system. We are fighting against economic and an ecological crises, both of which are linked, and an increasing democratic deficit. 'Business as usual' is no longer an option and the Party needs to be able to get its radical message for change across in an effective way. This is not the time to simply pick a leader who we think will appeal to disaffected Liberal Democrats as some in the Party have suggested. We need to make an electoral breakthrough to bring about change, and we can only do that by having a leader who, like Caroline, can argue our radical case and make their voice heard.

So it will come as no surprise that I believe that Romayne is best placed to do this. Romayne fits the bill very well as an experienced and active, campaigning Party member, who has been an elected councillor, GPEx member, and a very effective platform speaker through her role as chair of the Coalition of Resistance. Like Caroline, she is also well aware of the kind of message we need to get across to a disillusioned electorate, and has clearly put herself at the front of the fight against austerity nationally, in a way that none of the other candidates has been able to do.

Having said that, I have taken time to study the statements and views of the other candidates, and there can be no doubt that they are making all the right noises in terms of growing the membership, improving party organisation and getting more Greens elected. Nothing wrong with that, all good stuff. Peter Cranie has a very good, relaxed, media presence which will be popular amongst many Party members, and is probably seen as a safe pair of hands, and the favourite to win. My problem is that I'm not hearing enough from any of them about that radical edge that I have been talking about, how to promote the real alternative that the Green Party has to offer, and crucially, the kind of policies that support that alternative.

I also like that fact that Romayne and Will are standing as a team on the same platform, and I believe that if they are both elected that will greatly strengthen the Party. I have met Will and I was very impressed both by his down-to-earth approach and the key role he has played in the electoral success the Party has had in the West Midlands. I'd urge you to vote for both of them and as you can see from the video they have made they are perfectly capable of speaking for themselves. If you want to know more about their views visit their website here.

The 'free' market Taliban pose a very real threat to our society

There can hardly be a person in the UK who has not heard of the 'terrorist threat' or the 'war on terror'. We have become used to living with heightened security. If you travel by train as I do you will have heard automated Orwellian announcements which refer to "unattended luggage being removed and destroyed by the security services" - whoever they are supposed to be. Some people have argued that all this security has gone way over the top and that the 'terrorist threat' has been deliberately exaggerated by politicians to suit their own purposes. Adam Curtis, in his excellent documentary, The Power of Nightmares, argued that politicians play on our fears and use the terrorist threat to get us to vote for them, and ultimately, to control us. I am sympathetic to this view, but that is not what this post is about. It is about a very real threat which is causing enormous economic damage, human misery and death in the West on a scale that terrorist groups like Al Qaeda could never hope to emulate.

Ayn Rand - prophet of the 'free' market right

But the real threat doesn't come from outside, from some foreign power or terrorist group it comes from within. Those who a perpetrating very real damage to our society are not terrorists or even idealists -  they, like the Taliban, are fundamentalists. These people are neoliberal 'free' market fundamentalists whose views are not economic, nor even really ideological, they are more a belief system. If you wanted to compare these 'free' market fundamentalists with other groups you would find they had more in common with extremist religiously inspired groups like the extreme evangelicals in the USA or the Taliban in Afghanistan.

The holy tenets of this 'free' market religion are not to be found in one holy book, though if they had a bible it would probably have to be Atlas Shrugged, and their prophet would be its author, Ayn Rand. The 'free' market fundamentalists claim to be the descendants of Adam (Smith) though their views are a distorted and selective extract from his writings. They believe in deregulation, privatisation, in outsourcing, downsizing, austerity and small government. They believe that there are magic beings called entrepreneurs who we all depend upon for wealth and  prosperity. And make no mistakes these are beliefs, which when examined closely, turn out to have about as much validity as the beliefs of the Creationists and other flat-earthers. Do they care about that? Not at all! -  because they have faith.

The 'free' market fundamentalists are the very people who brought you the greatest economic crisis in capitalism, a near collapse of the world economic system, featuring the credit crunch, the sovereign debt crisis, and the Eurozone crisis. These are the people who have deepened and made worse those same crises by their belief in austerity, and, as things continue to get worse, as economies crumble, mass unemployment grows and people's living standards are destroyed, what is their answer? Why - of course - more of the same! They are like the mad medieval doctors who while bleeding the patient to death - call for yet more blood to be spilt. Believe me, these people are a far greater threat to the planet, your family and your community than the Taliban or Al Qaeda ever could be. They need to be stopped, for all our sakes, before they bring the whole world down in ruin.

It's not just the banks that need a change of culture

Speaking about the banks last week , Mervyn King, Governor of the Bank of England, said that what was needed was a "change of culture". Some people might think that was an understatement given the emerging scale of wrongdoing at Barclays, and other major banks. Vince Cable, Secretary of State for Business, described the City as a "cess pit".  Strong stuff then? But criticism is about as strong as it gets these days from our feeble politicians. In relation to the banks there can be no doubt where real power lies, and it's not in our democratically elected parliament.

But King was right, we do need a change of culture, but not just in the City of London, we need it throughout business and throughout our whole society. When I grew up in Britain in the 60s and 70 s there was a much greater culture of mutual support and solidarity than there is now. This stemmed, in large measure, from a sense of solidarity in adversity that developed during WWII, and a large factory-based working class that had jobs and pride in their work.


The aim of Thatcherism was to destroy that social solidarity and create a culture of selfishness and individual gain. In the 1980s it became smart to get rich quick and jump on what then seemed like a capitalist bandwagon that promised endless growth. Measures such as the sale of council housing, at knock down prices, contributed to the fact that many working class people thought they had "arrived" and that they were better off if not actually better than their forbears. We have had 30 years of relentless plugging of this Thatcherite culture by politicians and the capitalist media, and it has had a corrosive effect on our society at all levels, in politics, business and in our democracy. More than ever, in recent history, we have seen the revolving door in Westminster where politicians and senior civil servants have colluded in the privatisation of public assets, to be rewarded afterwards by lucrative jobs in the private sector.

Margaret Thatcher: "There is no such thing as society"

In the noughties we had a relentless attack from New Labour on the public sector and the values of public service. Public sector workers were lambasted and pilloried  as petty bureaucrats, jobsworths and inefficient skivers on bloated pensions. Public bad, private good was the message. Why bother with serving the public when you could be making a profit out of their illnesses and public service needs?


Its not just a change of culture in the banks that we need, its a wholesale change of culture across British society. We need to re-establish the values of social justice, solidarity and equality, which made our society a much better place to live in the decades after WWII. We need to kick out commercialism from the public sector, re-establish the commons, and create a lasting systemic change. I think that millions of  people want this kind of change. Many were never part of the Thatcherite revolution anyway. That change can only happen if people get involved in our democratic process and vote for parties and politicians who can deliver that change, and if they show social solidarity in their personal lives.  And, believe me, its essential that we succeed in doing this because the crisis of capitalism isn't going away anytime soon, and, as we have seen with the flooding recently, we will have to come together to mitigate the worst effects of climate change.

Talking about a revolution!

Did you know there was a revolution going on? If you had been watching and reading the corporate media you might have got some inkling but hardly the full picture. But lets look at some of the examples; the Arab Spring; Libya, Egypt, Tunisia, Syria, Bahrain, and even Saudi Arabia; Occupy in the USA; Protests in Russia; in Greece with SYRIZA; and in Spain, Italy, Ireland and the UK; Massive student protests in Chile and Canada. Many of these protests have been ignored by the media but this is a real revolution, and it is happening before our eyes if we care to look for it.

There is a revolution going on!

Why is this happening? - it is because the mass of ordinary people globally are sick and tired of  poverty, unemployment, and the cosy neoliberal stitch-up between commercial interests and tame 'free' market fundamentalist politicians and economists, which is destroying our economies and the planet. In our own small way, as individuals, we are all part of this revolution, but we need to come together as part of a wider international movement which can throw-off the sham democracies we live in, and bring about real and lasting change.That change must include democratic control of our economies and decent housing, healthcare, jobs and education for all.

In the UK, we have the "let them eat cake" politics of David Cameron, his banker friends, and his rotten, discredited Coalition government. In the USA, we have a battle between Obama and Romney, the former is marginally less bad than the latter but both are corporate creatures, dependent on big money to get elected. In Europe, we have Merkel and the sterile dead end of austerity, designed to protect the banks at the expense of the European taxpayers. People have had enough!

It is time for radical democratic change,  and the only way that change can happen is for people to channel their anger and throw off their apathy with the 'system', take to the streets, protest, and vote for parties that can bring about that change. The people of Egypt have shown us the way. In the UK, the Green Party is the only mainstream party which opposes the neoliberal paradigm and has the policies to make the breakthrough that people want. But the Party can only do that if it maintains its radical edge, engages with and works with the wider movement, and campaigns hard for change. Simply seeking electoral success is not enough. To make that breakthrough, we need to demonstrate that we are serious about the changes people want, and we must be able to take them with us. In Romayne Phoenix and Will Duckworth I think we have two leadership candidates for the Green Party who can accomplish that task.


Footnote: I will give my detailed views about the Green Party leadership contest in a later post.

Now the banks must be brought under democratic control

Its not that long ago that UK taxpayers bailed-out UK banks to the tune of £1.2 trillion. This, in the UK alone, is a sum which dwarfs the amounts being spent on the bailouts of five Eurozone countries - Greece, Ireland, Portugal, Spain and now Cyprus. It was a scandal that this happened and banks such as Northern Rock, RBS and HBOS (which was merged with Lloyds TSB) were allowed to remain under private management and the senior managers continued to award themselves, and traders, vast bonuses. Nobody was really held to account. Nobody went to gaol, despite the damage done to the UK economy, which has lead to savage cuts in jobs and benefits, affecting the very taxpayers who funded the bailout - though Tory chancellor George Osborne couldn't find £81 billion to help them. As I have said before, this is pretty much the biggest heist in history.

But now we find out that Barclays Bank has been fined £290 million by the FSA for fiddling the LIBOR interbank lending rate. Not just Barclays though, apparently they were in cahoots with other banks. This kind of stuff, coming on top of the bailout, beggars belief. Barclays boss Bob Diamond earned £20.9 million in 2011 as chief executive. Did he know what was going on? One thing we have learned from the News International scandal is that top people just can't remember whether they knew anything or not, so perhaps Bob won't.

Bob Diamond: earned £20.9 million in 2011

This is an unfolding scandal so we don't know what the outcome will be but it seems incredible that nobody will face criminal charges. It has to be some sort of fraudulent activity surely? Those affected, and there are bound to be many companies and individuals who lost money, will be asking these questions and expecting compensation. And all this comes on top of the recent RBS IT debacle.

For me, the case for breaking up and nationalising the banks has become unanswerable. There will never be a better opportunity because most of them are bust anyway. For a start, RBS and Lloyds must be brought under national democratic control. They should be broken up. We need smaller, regionally-based banks which can help to grow jobs by investing in local communities, and we need mutuals and credit unions to support and democratise finance in our economy. Finally, can anyone really understand that a UK government can give such support to the banks but can't find £69 million to bailout a hospital trust?

We must Occupy the economy

The roller coaster ride of the world economic crisis continues. Elections in Greece and France have shifted the political ground slightly to the left, with a Socialist majority in France, and the spectacular result obtained by SYRIZA in coming second in Greece with about 27% of the vote. But the Eurozone crisis stumbles on and the 'free' market fundamentalists, the architects of the broken economic system, are still in the driving seat. Banks are bust and, under the current system, there is nothing to look forward to apart from years of economic stagnation at best. Meanwhile in the UK, millions are being pushed below the breadline by the governments cuts in benefits, tax credits, and increases in rents.

In 1966, the Marxist economist Paul Sweezy wrote a book, with Paul Baran, called Monopoly Capital, in which he said that the natural tendency of monopoly capitalism was economic stagnation, as capitalists struggled to use the surpluses of capital accumulation, and that they could only achieve this by increases in spend on marketing and defence spending, and increasing debt. Was Sweezy right? Its certainly true that US defence spending in WWII ended the Great Depression, and that a mountain of debt has been used to keep capitalism going in the past 30 years or so.

So what do we do? The market fundamentalists have no answer. They are like the mad person who repeats the same actions over again in Einsteins famous quote:

"Insanity is doing the same thing, over and over again, but expecting different results"

Einstein: described the madness of market fundamentalists

 
So we need an economic alternative. But what is that alternative? Neoliberalism, over the past 30 years has put commercial interests above democratic sovereignty. This has happened globally through organisations like the WTO and the European Union. We need to reverse this process and re-assert democratic control of our economy. This economic change must put governments in charge, actively planning and managing economic development, allow local decision making and create a mixed economy based on  genuine sustainable development to deal with ecological crises and halt endless growth. In the longer term the only answer to the domination of private commercial interests is to put the economy in the hands of the 99%. How can we do all that?

Firstly, we need to nationalise the bust banks that are hoovering up resources which need to be spent on creating jobs. Its a scandal that the UK's bust banks have been bailed out but are still in private hands. This must end, some banks must fold, and we need banks to be broken up to provide finance to small businesses, and local and regional banks which can focus on reviving local economies;

Secondly, we need to take the creation of credit out of private hands and put it under democratic control. Debt creation is too great a power to be left in the hands of private enterprise - this is what caused the current crash;

Thirdly, we need to take control of the big utilities such the energy and water companies, and sectors which rely on massive public subsidy to continue such as the railways;

Fourth, we must institute a programme of investment in our economy to create jobs through green quantitative easing and a Green New Deal;

Finally, and most importantly, we must break the power of the corporations by mutualising the economy, providing the finance to set up co-operatives and giving employees the power to buy-out the companies they work for and control them. This latter measure is crucial in putting economic power into the hands of ordinary people. We need to create a new culture of doing business in which people work together to create successful mutuals which are focused on local communities. Co-operatives have a better success rate than companies and they don't outsource downsize, or export jobs overseas.

Its a little known fact but there was an expansion of mutuals in the USA during the last Great Depression and there are many successful co-operatives both in the USA and here. It is a sector that is already growing. 130 million (yes that is million) people in the USA are now involved in mutuals and if you want to find out more detail read this previous post. You should also take a look at Gar Alperovitz's excellent book 'America beyond Capitalism' which gives practical examples of how the 99% in America are taking control of their economy from the bottom up by creating co-operatives. This is economic democracy in action and something we should celebrate.

Think it can't happen? Well, we have to make it happen. Its likely that the failure of the global banking system is going to mean that states are going to have to take a much bigger role in managing the economy now that the failures of the market have been exposed, and that people are going to be much more willing to trust democratic control and planning after they have experienced the privations of neoliberal austerity. If we want to really cure the malaise of neoliberalism and avoid the stagnation of monopoly capitalism we need to participate in the most important occupation of all, we need to Occupy the economy.

While Cameron schmoozes Murdoch, Greeks and Spaniards are fighting austerity

There are thousands of Spanish and Greek workers fighting to defend their jobs against the dead hand of austerity which is threatening to wreck Europe's economies. You would hardly know about this if you followed the mainstream media, which is instead fascinated by David Cameron's schmoozing of the Murdoch empire, and Simon Cowell's string of girlfriends.

Meanwhile, in Spain thousands of miners have been on strike since the end of May, defending their jobs and communities. In time-honoured fashion the Spanish government have unleashed the police who have been given a free hand to break up the strikes and protests leading to violent clashes. In Greece, striking steelworkers have stopped work for 228 days in their fight to protect their jobs.

So why doesn't this make the headlines? Because it doesn't fit with the media agenda which is the modern equivalent of bread and circuses, designed to distract and manipulate us, whilst pandering to the 'free' market neoliberalism of the corporations and their tame politicians. Its OK to report such clashes in the middle east, in places like Egypt,  because that is considered safe, but in Europe such events are not considered to be "newsworthy".

The big event this weekend is the Greek election and its looking like the Eurocrats have managed to turn the screws enough on the electorate to ensure a government which will support the 'memorandum' which is killing the Greek economy, and causing great pain to the Greek people. If New Democracy and its pro-bailout allies can form a government the Greeks will be ground down even further to protect the banks and the Euro vanity project. We can only hope that SYRIZA and its allies can gain enough votes to prevent this from happening. Since the bailout cannot work, a victory for the pro-bailout parties would be based on fear and ultimately fruitless. Either the terms of the bailout must be renegotiated and the debts written off or Greece will have to default anyway. Whatever happens the European Union has been badly damaged by this attempt to make its people pay for the blunders of the ruling 'free' market elite, who are wholly responsible for the current crisis.

Zombie capitalism

Ever since the crash of 2008, when Lehman Bros. bank went under, politicians in the EU and USA have been battling to restore the status quo, which is often described as 'business as usual'. But it wasn't the collapse of Lehman's which brought the capitalist economy to its knees, it was the accumulation of a huge bubble of toxic debt in the world banking system. Rather than a crash, it has been more of a slow motion collapse, as the house of cards comes down.

The banking bailouts which followed, where governments injected capital into a bust banking system, was supposed to solve the problem, but it hasn't and it never could have done because the debt is still there, it hasn't just disappeared. In the shorter term the debt problem has become a sovereign debt crisis which is threatening to break up the Eurozone. European banks have been propped up by short term loans from the ECB, and this still hasn't solved the problem, but what if it can't, what if there is simply too much debt for the system to pay off?

I have blogged before about how I suspected that there were lots of insolvent banks which were hiding their insolvency with the collusion of governments. For any other kind of business this activity would be illegal, but as we have seen, there is one law for the banks and another for everyone else. Now the Telegraph has revealed the state of hidden debts in the UK banking system. The article, by Liam Halligan, shows that UK banks are sitting on £40 billion of undeclared losses, and that is just what we now know about.

Britain's banking black hole

My guess is that taxpayers patience is exhausted. Are we really going to be expected to bailout a bust system yet again? Not a chance in my view. The reality is that there can be no return to 'business as usual'. Neoliberal capitalism, through privatisation and deregulation, has broken the world economic system. The emperor has no clothes. There isn't going to be a recovery, not in the short to medium term, probably not ever. In a recent post I explained why I thought capitalism had reached the end of the road. In essence falling profits have lead to a class-war attack on the 99%, cannibalisation of the public sector, mass unemployment and an unsustainable property and financial bubble. Now there is nowhere left to go. We urgently need a radical alternative economic strategy which has to involve the state taking responsibility for control of the economy, nationalisation of the banks, a Green New Deal, and a move to a low carbon economy. The alternative could just be a collapse into the kind of barbarism we saw in the 1930s. Oh, and don't forget the fact that we have to deal with climate change, and we saw a graphic illustration of that in the UK this weekend.

GM technology is not the answer

In the past week a row has broken out over the actions of a group of protesters called 'Take the Flour Back ', which threatened to trash some GM wheat crops being grown as part of field trials in Hertfordshire by scientists from the Rothamsted Research Institute. On the day, the attempt was foiled by Police but the event raised arguments about whether opposition to GM crops is 'anti-science', and whether GM technology should be used in this way.

Jenny Jones, who recently stood as the Green Party London Mayoral candidate, attended the event and wrote a blog post criticising the decision to carry out field trials of the GM crop. As a result she, and the Party, were criticised in a Daily Telegraph blog by Tom Chivers as being anti-science. Of course Chivers could have bothered to look at Green Party policy before heading a blog post "Don't vote Green until they drop the anti-science zealotry", because as Jenny pointed out in her response to him, the Party's position is not anti-science but "sceptical and precautionary", and for very good reasons as I will explore below.

In an earlier post, I referred to an international report by 400 scientists which stated that GM technology was not the answer to feeding the world as has been claimed by its supporters. At the time the report was published the Daily Mail commented:

"Genetically-modified crops are not the solution to spiralling food prices or Third World hunger, according to a powerful international report published yesterday." and

"Professor Watson [UK Government Chief Scientific Adviser] and his team made clear that GM or transgenics - moving genes between plant species - was not the solution to providing plentiful cheap food."

This was a scientific report and the proponents of GM appear to have conveniently ignored this scientific view. Does that mean they are anti-science?

On Monday, whilst driving, I heard Professor John Beddington, the Chief Government Scientist, make supportive comments about the trials on Radio 4, during the interview he referred to the fact that food prices had surged in 2007 as if this was some sort of justification for GM crop technology. What he didn't say however was that the increases were caused by market speculators. A recent report from the World Development Movement said:

"Financial speculators have flooded food commodity markets, creating massive inflation and sudden price spikes. These broken markets are bad news for people in the UK, whose average annual food bills increased by £260 in one year alone. But for people in poverty in developing countries, price rises are disastrous,"

There is no compelling evidence I have seen that GM will reduce food prices and I believe that speculation in food should be banned. Food should not be treated like any other commodity, it is far too important for that. The problem of food shortages is caused by speculation and distribution. GM technology isn't going to solve that problem.

Organic vegetables at a farmer's market in Argentina

But if GM technology is not needed to feed the world what about the actual field trials that are being carried out? Those who oppose the field trials are not 'anti-science', they have legitimate concerns, based on science, that field trials pose unacceptable risks. The danger is that the trials will cause contamination of surrounding plants and crops or will have unexpected effects on organisms the food chain. In this particular trial:

"There is serious doubt that the aphid alarm pheromone as found in this GM crop would even work. Other scientists have raised concerns that if aphids get habituated and insufficient predators are available, this may increase the aphid burden on the wheat and thus potentially increasing the need for pesticides and chemical spraying against aphids."

In a small crowded island like ours these fears are very real, particularly amongst people who support organic agriculture, which would be ruined by such contamination. There is also a danger that the traits in GM crops such as herbicide resistance will be passed on the native plants creating 'superweeds', that there will be knock-on effects on biodiversity and environmental food webs, and harm to human health - see here. The pros and cons of GM are too complex to go into in this post but the key point is that supporters of GM have attempted to paint the protestors as 'anti-science'. This is not true. They are concerned about the use of GM technology, not science or research. They also have legitimate concerns about how this technology will be used by commercial interests.

The fact that the field trials were publicly funded and carried out by Rothamsted has been used by supporters to demonstrate the 'neutrality' of the scientists carrying out the research but according to Jonathan Matthews of the Ecologist:

"And this industry alignment is perfectly illustrated by Rothamsted itself, which partners up with corporations like Bayer, Syngenta and Dupont and has an Institute Director who not only drives a Porsche with a GMO number plate but has a c.v. to match. It is Maurice Moloney’s GM research that lies behind Monsanto’s GM oilseed rape."

Which is why its such a pity that commentators like Will Hutton have chosen to rush to support this slanted and unfair view of both Jenny Jones and the protestors. The problem is, of course, that science can easily be presented as 'progress' and opposition to it as 'Luddite'. Nuclear technology is science-based but there are plenty of good reasons, science based and otherwise, to be opposed to it. There is nothing anti-science about that. My view is that the protestors should have protested but have stuck to the arguments rather than threatening to damage the crops, making themselves an easy target for the likes of Will Hutton. I also believe that public money could be much better spent on research into methods of improving organic agriculture, which is more energy efficient, employs more people, and has the potential to feed to world in a sustainable way without risks to human health or the wider environment.

A report in 2007 concluded that:

"organic methods could produce enough food on a global per capita basis to sustain the current human population, and potentially an even larger population, without increasing the agricultural land base. (from the abstract)"

Perhaps we should re-name it 'organic technology' so that it can be taken more seriously by scientists themselves? But the real problem with organic farming is that it doesn't provide agribusiness with the same opportunity to make a profit. That is why so little research, publicly funded or otherwise, is being carried out.

David Cameron's illiterate class war 'economics'

Once again David Cameron's chums in the capitalist class have seen an opportunity to kick the workers of the UK whilst they are down. Workers who have been subjected to pay freezes and pension cuts to pay for a crisis that was not of their making are to have their employment rights trashed to benefit those  'free' market fundamentalists who helped to cause  the crisis.

David Cameron: economically illiterate class warrior

In time-honoured fashion whenever a UK government has a 'problem' to solve they turn to a 'businessman' for ideas. And those ideas, which are habitually presented as being from someone who is 'dynamic' and 'innovative', always personally benefit the individual who came up with them, and people like him, at the expense of other people, usually workers. In this case, step forward Adrian Beecroft, a venture capitalist and Conservative Party donor, who thinks that fair compensation for loss of earnings at an employment tribunal, and reasonable notice of redundancy are hampering 'growth'. Even people inside government recognise that Beecroft is talking nonsense. See this quote from Garry Gibbon's blog about Beecroft's 15 page report:

"Government aide: “crap – supported by only one person in No. 10,” (Steve Hilton, allegedly)".

And Beecroft  is one of the people behind the company Wonga which provides small short term 'payday' loans at 4214% and have been described by campaigners as "legal loan sharks".

The Daily Telegraph claims this is a war on red tape, but then I guess that the pundits at the Telegraph think that any legislation which makes our society fairer and gives ordinary people decent protection at the expense of their chums in business has got to be a bad thing. I have no doubt that David Cameron's, and the Telegraph's lust for worker-bashing will only be satisfied when most of us are reduced to the abject penury and wage-slavery that they and their 'free' market fundamentalist buddies appear to think ought to be the lot of all UK workers - their own children and families excepted of course.

This is pretty pernicious stuff in itself but what makes it worse is that it is economically illiterate also. These kind of so-called 'structural' changes won't make one iota of improvement to UK growth, in fact, by making people poorer they are likely to reduce it. It was James Tobin the economist who came up with the financial transaction tax known as the Robin Hood Tax who said; "structural labour market policies can make only marginal improvements". 

Just as 'growth' and 'cutting red tape' are the fraudulent excuses for David Cameron waging class war on UK workers, now the government have shifted their excuses for our failing economy onto the Eurozone crisis. Before it was Labour government overspending that was the cause. So, one lie replaces another. Finally, one bit of good news today is that the Guardian now seems to have caught up with reality. Its well worth reading this editorial, and I'm quoting one of the key passages:

"At the heart of this calamitous [government] strategy is a wholesale misdiagnosis of how the market economy functions and a complete failure to understand why the financial crisis took place, the profundity of its impact and its implications for policy. For a generation, business and finance, cheered on by US neoconservatives and free market fundamentalists, have argued that the less capitalism is governed, regulated and shaped by the state, the better it works. Markets do everything best – managing business and systemic risk, innovating, investing, organising executive reward – without the intervention of the supposed dead hand of the state and without any acknowledgement of wider social obligations.

The lesson of the financial crisis is that this is complete hokum that serves the political and personal interests of the very rich."[my italics]

Really pleased to see that the Guardian has at last picked up on my "free market fundamentalist" tag. Someone must have been reading my blog :)

Greece: the frontline in the battle against austerity

In July 2011 I posted on this blog about how 'The Greeks MUST default on 'their' debt'. Getting on for 12 months later that default is looking increasingly likely. The Greeks are being sacrificed for the sake of the Eurozone and the banks. The crucial point is that the bailouts were never intended to help the Greek people. The purpose of the bailouts is to save banks, Greek, German and French banks, NOT the Greek people. The pain the Greeks are suffering is to save bust institutions which made bad lending decisions. Once again, banks are too 'big to fail' but people lose their jobs and go hungry and homeless, or lack access to medicine - that is OK, apparently.

This is appalling and inhuman, and what it tells us is about the kind of economy we live in, an economy where people come a long way second to money, and financial institutions. It also tells us a lot about the EU, and what kind of institution it has become. Angela Merkel had the nerve to talk about Solidarity with Greece. But what is happening is the exact opposite of solidarity. The Greeks are being screwed. It is the Germans who have benefited from years of having a weak currency, the Euro, which has helped them to export. This has been at the expense of Greece and other southern European countries.

In the aftermath of the recent Greek election, now that the parties have failed to form a coalition, the screws are being turned on the Greek people once again. Threatening noises have been made in Germany and elsewhere. There is a clear attempt to bully the Greeks into voting for a coalition in June which will implement to terms of the bailout which have been imposed on Greece. This has come about largely due to the resistance of the SYRIZA coalition which came second in the recent election. Quite rightly, SYRIZA have insisted that the terms of the bailout must be renegotiated because they recognise that the debt can never be repaid on these terms and the Greek economy is being destroyed. Its well worth reading the letter that Alex Tsipras, leader of SYRIZA, sent to Manuel Barroso, President of the European Comission. It is perfectly level headed and points out that the terms of the bailout have to be re-negotiated.

SYRIZA: fighting austerity

So where does that leave us? Another election, in which SYRIZA is expected to gain even more of the Greek vote. And we are today being told that if SYRIZA win Greece will have to leave the Euro. So much for solidarity! The tragedy is that 70% of Greeks still want to remain in the Euro. I can only assume they would feel that it would be a national humiliation to leave. But what could be more humiliating than the position they now find themselves in? A default and a return to the Drachma would be hard. Banks would go bust and close. But the outcome, the longer term would be that Greeks could regain their self-respect, and a much larger measure of sovereignty than they have now. It would be a chance to re-build their economy and it has been done before, most recently in Argentina.

You can be sure that the Eurocrats are shoring up the EU economy as best they can, to protect themselves against a default. What they should be doing is helping the Greeks out of the mess both they and the leaders of Greece have created. Whatever happens, and make no mistake a Greek default could have serious ramifications for the world economy, the EU has been severely damaged by this debacle, which leaves a very nasty taste in the mouth.

After Caroline - what next?

I'm guessing most Green Party members were shocked by the news last night that Caroline Lucas is not seeking re-election as the Party leader. I also suspect that our political opponents will be relieved. As party leader Caroline played a blinder as an advocate for the Party's policies of social justice, economic regeneration, fighting climate change, and support for the public sector. As leader, she is going to be sorely missed, and hard to replace, so perhaps I should have said - "who next?"

Caroline Lucas

After the local elections, and the news of Caroline's departure as leader, Green Party members need to take stock of where we are, before thinking about what they want from a new leader. We are still a minority party and, although we punch well above our weight, we have a long way to go before we can get into government, even as part of a coalition. We keep making gains in local elections but we have failed to make a national breakthrough despite our anti-austerity message and support for jobs and public services. Many people in the party are committed to plugging away, doing the hard work of leaflet delivering and canvassing, and, whilst this is necessary and commendable, on its own it is not enough.

What the Green Party needs is a strategy which will increase both membership and support in the country as well as energising many of our less active members. What's worrying about the GPEW statement about Caroline (link above) is the talk about attracting disillusioned Liberal Democrats, because that is not the best way forward for GPEW. Why? because the Liberal Democrat Party is neither radical nor green, despite what many of its current and ex-members might like to think. It is an entirely conventional, grey, neoliberal party committed to austerity and the 'business as usual approach' so often condemned by Caroline Lucas herself.

Depressingly, there are those in GPEW who think entirely in conventional political terms and would like to see GPEW replace the Liberal Democrats in Westminster. This is delusional politics for two main reasons: Firstly, the last thing the UK needs is another Liberal Democrat Party, even if it was a fairer, greener version, and the voters won't be fooled by any attempt to do this; Secondly, this is a potentially a move to the right, to what some people would see as the centre ground, though centre-right would be more accurate, and risks the GPEW falling into the same trap as the Irish Greens did - I posted previously about this trap here.

The way forward is for the Green Party to strengthen its position as a party of social justice and radical economic change. By the latter I mean an explicit rejection of neoliberalism, austerity, corporate domination, and the democratic deficit in the EU, and a commitment to the alternatives such as the Green New Deal, ending privatisation and de-regulation, saving the NHS, ending tuition fees, government planning, and control of the banks.  What we should be aiming to do is to attract support from the huge pool of young people, many of whom have never voted, and who want real change, and access to jobs. We should also be attracting support from the millions of ex-Labour voters who believe in the public sector and social justice. And we need to do much better in attracting support from the ethnic minorities. These are all potential supporters who are more likely to be attracted by a party offering a radical alternative than many of the disillusioned Liberal Democrats.

As things stand, Ed Millband is likely to be Prime Minister in 2015, if not before. But this will be a victory by default. People will vote Labour to get the Tories out, not because they love Labour, but in the hope that things will be less worse than they are now. There is still plenty of room for a radical party of social justice at the next general election. We are more likely to make gains then, by going down the route I have described, than the dead-end advocated by those who see replacing the Liberal Democrats as the best bet.

One of the things those on the right of GPEW, who oppose a more radical Party direction, need to come to terms with, is that that green, environmental politics and 'free' market capitalism are ultimately incompatible. This is the elephant in the room, and is central to the whole debate about what kind of Party the GPEW should be. The kind of society we Greens want, is more democratic, more fairly regulated, more local, more community based and truly sustainable, and this is anathema to the corporations, because they understand fully that such a green economy would exclude both them and their destructive practices. That is why people like Nigel Lawson of the Global Warming Policy Foundation (GWPF) expend so much energy and cash railing against climate change. And that is why so many commenters in CiF rage about Greens being eco-fascists. They get it even if some Greens don't. As I said in a previous post:

".....you have to ask - why is it that climate change has become a left vs right issue over the past decade or so? Why do right-wingers like Nigel Lawson, of the GWPF, Tory MPs, and Ruth Lea seem to think that all environmentalists are lefties and climate change is a left-wing plot to bring about an eco-socialist world? Why do they object so strongly? The answer is simple - capitalism and corporate profits. The 'free' market right have recognised that climate change is a potential threat to established big businesses and capitalist accumulation, which relies on compound growth."

If Ruth Lea and co. think like that, then it makes Green politics radical and anti-capitalist whether you like it or not. Don't believe me? Then read this excellent article by Naomi Klein, "Climate vs Capitalism", which sums up why capitalists are out to kill climate change and green politics. Here is a telling quote:

"The [climate change] deniers did not decide that climate change is a left-wing conspiracy by uncovering some covert socialist plot. They arrived at this analysis by taking a hard look at what it would take to lower global emissions as drastically and as rapidly as climate science demands. They have concluded that this can be done only by radically reordering our economic and political systems in ways antithetical to their “free market” belief system."

There is no route to a green future in going down the same political cul-de-sac as the Liberal Democrats, and no point in wasting time with the illusion that capitalists will 'see the light' and suddenly become socially and environmentally responsible. In addition, as I've made clear in previous posts, neoliberal capitalism will never revive our economy, and those that believe that existing economic systems can be made to work in the face of climate change are doomed to disappointment and failure.

Finally, there was an interesting post in the Guardian today by party colleague Jim Jepps entitled "Caroline Lucas stepping down is good for the Greens". I do hope he is right. For my money there is only one Party member who has the track record and credibility to replace Caroline Lucas as leader. I just hope he is willing and able to stand.

Footnote:

I just wanted to update this post to clarify some of the points I made in the light of comments I have received here and elsewhere. As for Lib Dems:

1. Lib Dems may be active and disillusioned but do they really share our values? - I don't think so. I'm sure that many ex-Labour supporters and members have values which are closer to our own. I can't pretend this is scientific but it is based on my 40 years of involvement in politics. I am, of course, not opposed to ex-Lib Dem supporters or members who share our values joining GPEW -  In fact I would welcome them.

2. Following on from 1; Five million voters deserted Labour from 2005 onwards, there are over 1 million unemployed people under 25, and many others who are politically disengaged. We also need to reach out to ethnic minority voters. This is a much larger pool of people than disillusioned Lib Dems and these are people we should be targeting. Targeting Lib Dems is a very limited approach for a party that wants to make a breakthrough and shows a lack of ambition as far as I'm concerned.

On Capitalism:

If you have read other posts on this blog you will know that I have been careful to distinguish between "capitalism" and the "private sector". By capitalists I mean people who own the means of production such as Branson, Murdoch etc, people who control and own the the corporations. However, I have no problem with the "private sector". Your local newsagent, pub landlord, tenant farmer, co-operative, and numerous other small businesses etc etc are not capitalists. I welcome the contribution these people make to our economy, in fact, I think it is essential. The problem of "capitalism" centres around the power and sheer social, economic, and environmental destructive capacity of corporations and financial capitalism, including the banking sector. If we want social justice and to fight climate change and deal with resource depletion we will have to move away from the current "capitalist" model which is unsustainable in any case, as I have argued above, and in other posts.

A key part of the purpose of this blog as far as I am concerned is to share ideas and stimulate debate so I welcome both comments that are supportive, and those that are critical, the latter as long as they are constructive and deal with the arguments. I don't publish comments from people who are simply out to slag me off or be abusive.

Why we can and must build our own economy

UK companies are sitting on a cash pile of about £750 billion, and EU companies have about €2 trillion stashed away. So why on earth is our economy struggling? There is plenty of cash to get the economy moving and create the much-vaunted 2.5 million private-sector jobs that George Osborne has been promising us. Why isn't this private-sector job creation happening? Apparently, it's because firms don't want to invest due to a lack of "confidence" (sic!). The problem is that neoliberal austerity policies are reducing the share of national income for working people and depressing demand in a consumer-capitalist society. This is confirmed by a quote from the following article in the Wall Street Journal which states:

".... that policies aimed at further depressing the share of labor in national income will further undermine economic growth. He [SimonTilford] suggests increasing corporate income won't help spur investment while squeezing households by cutting wages will damp growth." [my italics]

In other words, neoliberalism is self-defeating, as I argued in a recent post. Erm... but isn't our government meant to be doing what the private sector - the market - wants? If the corporations and banks want austerity, why haven't they any confidence? What this situation clearly illustrates is that capitalism always wants to have its cake and to eat it. They want austerity to make us pay for the crisis and to trash the welfare state, but they also want us to be able to buy their products!

If we can't rely on either governments or the private sector to lift the economy and produce the jobs that we so desperately need, what are we going to do? Well, we can forget the banks and the corporations because they are not going to help us. They are part of a failing neoliberal economic system which is essentially exploitative and destructive, a system which is eating the planet, and in the process, destroying the prosperity of most of us, of the 99%. As capitalism gobbles up the planet's resources, cannibalises the public sector, and indulges in an orgy of financial and property speculation in order to try and maintain its falling profitability, millions of people are suffering globally. Not just people in the so-called third world, but people in the once-prosperous west, and nowhere has this become more obvious than Greece, which is the front-line of neoliberal austerity.

But one of the starkest outcomes of this crisis is in the modern home of capitalism itself, the USA. Detroit, the motor city, and once-great powerhouse of American capitalism has been devastated. Paul Craig Roberts has written about this in The Ruins of Detroit :

"Detroit’s population has declined by half. A quarter of the city 35 square miles is desolate with only a few houses still standing on largely abandoned streets. If the local government can get the money from Washington, urban planners are going to shrink the city and establish rural areas or green zones where neighborhoods used to be. President Obama and economists provide platitudes about recovery. But how does an economy recover when its economic leaders have spent more than a decade moving high productivity, high value-added middle class jobs offshore along with the Gross Domestic Product associated with them?"

Capitalism at work: economic devastation in Detroit

But amongst the ruins of Detroit, at the grassroots, economic activity is stirring. This is a grassroots revolution. People are beginning to come together and realise that if they want a better economy they are going to have to do it for themselves, and they are starting to rebuild from the ground upwards through co-operatives like the Evergreen Co-op. What's so inspiring about this re-birth is that it is community-focused and lead not by overseas investors or the 'entrepreneurs' of neoliberal myth, and hungry for a buck, but 'ordinary' citizens, and what it shows us just how extraordinary us ordinary people can be. Here is an extract from the recent Re-imagining Work in the Motor City conference:

"In another discussion, participants acknowledged that relying on political and economic leaders to lead was a fruitless endeavor because they have forgotten the people they are supposed to represent. A “we have to do it ourselves” attitude permeated the conference in a recognition that representative democracy is in serious decline. Besides, they said, societal change usually occurs at the grassroots level—and rigid social class distinctions and hierarchies have no place in the new economy we are envisioning". [my italics]

People in Detroit have realised an essential truth - that capitalism dis-empowers all of us. The system is designed to make us think that we need the super-managers and capitalists, that without them, we just couldn't survive. This system is designed to keep us in our place and to keep them in the luxury that only they can afford. But as a result of this crisis, in which whole communities have been abandoned, this myth has been busted, because more and more people are beginning to understand that 'they' need us, but we really don't need them.

But its not just in Detroit that this phenomenon is happening. All over the USA, people are beginning to turn their backs on capitalism and the banks and find their own solutions by building their own economy. According to Gar Alperovitz in his New York Times article entitled Worker Owners of America Unite:

"Some 30 million Americans, for example, now participate in the ownership of co-op businesses and credit unions. More than 13 million Americans have become worker-owners of more than 11,000 employee-owned companies, six million more than belong to private-sector unions."

The politicians and corporations who control our economy want us to believe that it can be restored, but only on their terms, and they are resorting to ever more desperate means to try and continue as if the great crash of 2008 never happened. In the process, through neoliberal austerity, they are making the poorest pay for the crisis, but they're also beginning to scrape the bottom of the fossil fuels barrel with tar sands extraction and shale gas exploitation, both of which are environmentally destructive. These are acts of desperation, meant to prop up a failed system which has run its course.

The truth is that we cannot rely on capitalism and its tame politicians like Obama and Cameron to help us. Essentially, we are on our own. But that, despite the hardship, gives us an opportunity, an opportunity to build an economy that we own and control ourselves. Such an economy needs to be co-operative and community based, supported by local banks and credit unions, which are subject to democratic control.

Co-operatives create wealth and employment, they are rooted in communities, they do not downsize or outsource jobs overseas. They build strong local economies that are resilient in the face of climate change. Best of all, there are no fat-cat managers or owners to cream off the bulk of the wealth that is created. That does not mean we should ignore political parties, we need to support and help build parties that are supportive of this kind of economic development. And we need to help to propel such parties, through the democratic process, into government. Then we can really get down to the business of rebuilding an economy that is truly our own.

For reference see: America Beyond Capitalism

Will Hollande beat the EU austerity stitch-up?

Good news for all those on the left of politics who want to fight the neoliberal austerity programme being forced onto the people of Europe by the EU! -  Francois Hollande has been elected President of France on an anti austerity ticket and the Greek parties New Democracy and PASOK who collaborated in the EU, IMF and  ECB bankers carve-up of Greece have been battered in the latest elections.

The problem remains that the European neoliberal elite of politicians, bankers and corporations who run the EU are committed to crushing all democratic attempts to derail their austerity programme, which is designed to protect banks and bondholders at the expense of ordinary Europeans. As I've blogged before, previous attempts by the people of Europe to stymie this elite have been defeated. The Irish, French and Dutch people tried and failed to block the European constitution (we were told it wasn't really a constitution) in referendums but the attempts were in vain.

The Euro-elite have a way of dealing with the inconvenience of democratic decisions - they make you vote until you give them the required answer. This has happened in Ireland - twice. Now that Hollande has been elected and the Greek pro-austerity parties have been humiliated, you can be sure that Brussels and Berlin will be working overtime to ensure that their plans can't be derailed.

The obvious answer in Greece, as it has been in other European countries before, is to make the Greeks vote until they come up with a pro-austerity choice. New Democracy has failed to form a coalition, lets hope that SYRIZA can do it, if they can't, its likely that the `Greeks will be required to vote once again. As for Hollande, we can only hope that he is serious in bringing about real change, and even if he is, then he may be bullied into submission for all we know.

Need the European elite worry about the inconvenience of democracy ?

So conformist and robotic has been the acquiescence of Euro-politicians to neoliberalism and austerity that its tempting to think that they must have Euro-microchips fitted before they are allowed to take power. Lets hope that Hollande can avoid this fate. Whatever happens its clear that the European people, when they get a chance, want no truck with austerity, and the sooner the left can get its act together and respond to this the better. In the UK the Green Party have made a good start, but its time for others to stand up and follow.

We need boldness to replace the weak timidity of the Coalition

When people are under pressure they often retreat into what they think they know, and what makes them feel safe. The global economic crisis, triggered by the banks and the collapse of Lehman Brothers in 2008, threatened to bring down the whole global economy and capitalist order. The response, lead by politicians in the UK, including Gordon Brown and Alastair Darling, was to use the power of the state to preserve the status quo. Losses were nationalised and profits remained in Wall Street and the City as taxpayers were required to bail out the private sector banking system. The aim was to restore "business as usual", as if nothing had ever happened.

Since the 2010 general election in the UK, David Cameron and George Osborne, have continued to use the British state to maintain "business a usual", playing the class war card and ensuring that corporations and the rich continue to be shielded by making the rest of us pay to reduce the structural deficit and prop up the banks. As long as the 'markets' and bondholders are safe, the rest of us can go hang. The recent budget provided ample evidence of this with the top rate of tax being reduced to 45% and Osborne later claiming that, even though he is a millionaire, that he didn't know that wealthy people pay lower taxes overall than the rest of us.

But its not just the ongoing economic crisis that we should be concerned about, we are facing a crisis of resource depletion and climate change. Far from being a sign of strength as, Cameron, Osborne, Brown and Darling have claimed, in 'protecting' 'our' economy they have shown weakness. Brown and Darling could have taken the opportunity of the crash to bring the banks under control, Cameron and Osborne could have taken the opportunity of election victory to re-engineer our economy to deal with the very real challenges we face. They all failed. The same mistakes have been reproduced by Sarkozy and Merkel in the EU, making the Eurozone crisis even worse, something which the economist Joseph Stiglitz has recently described as a "suicide pact".



What we need now is politicians like Caroline Lucas who have the courage to cast aside the failed 'free' market neoliberal ideology of business as usual and build an economy which can deal with the very real challenges which we face. Sadly, there is no hope of this happening with this government, Cameron and Osborne will continue to protect the interests of their class, and fiddle while Rome burns, but lets be clear - what they offer us, apart from years of hardship is, for all the posturing, not strength, but weakness in the face of adversity.