Outsourcing

Workers’ Chamber Book: Chapter Breakdown

As I mentioned in my last post, a year or so ago I wrote a pamphlet, about 22,000 words long, arguing that as parliament was filled with the extremely rich, who passed legislation solely to benefit the wealthy like themselves and the owners and management of business, parliament should have an elected chamber occupied by working people, elected by working people. So far, and perhaps unsurprisingly, I haven’t found a publisher for it. I put up a brief overview of the book’s contents in my last post. And here’s a chapter by chapter breakdown, so you can see for yourselves what it’s about and some of the arguments involved.

For a Workers’ Parliamentary Chamber

This is an introduction, briefly outlining the purpose of the book, discussing the current domination of parliament by powerful corporate interests, and the working class movements that have attempted to replacement parliamentary democracy with governmental or administrative organs set up by the workers themselves to represent them.

Parliamentary Democracy and Its Drawbacks

This discusses the origins of modern, representative parliamentary democracy in the writings of John Locke, showing how it was tied up with property rights to the exclusion of working people and women. It also discusses the Marxist view of the state as in the instrument of class rule and the demands of working people for the vote. Marx, Engels, Ferdinand Lassalle and Karl Kautsky also supported democracy and free speech as a way of politicising and transferring power to the working class. It also shows how parliament is now dominated by big business. These have sent their company directors to parliament since the Second World War, and the number has massively expanded since the election of Margaret Thatcher. Universal suffrage on its own has not brought the working class to power.

Alternative Working Class Political Assemblies

This describes the alternative forms of government that working people and trade unionists have advocated to work for them in place of a parliamentary system that excludes them. This includes the Trades Parliament advocated by Owen’s Grand Consolidated Trade Union, the Chartists’ ‘Convention of the Industrious Classes’, the Russian soviets and their counterparts in Germany and Austria during the council revolution, the emergence and spread of Anarcho-Syndicalism, and its aims, as described by Rudolf Rocker.

Guild Socialism in Britain

This describes the spread of Syndicalist ideas in Britain, and the influence of American Syndicalist movements, such as the I.W.W. It then discusses the formation and political and social theories of Guild Socialism, put forward by Arthur Penty, S.G. Hobson and G.D.H. Cole. This was a British version of Syndicalism, which also included elements of state socialism and the co-operative movement. This chapter also discusses Cole’s critique of capitalist, representative democracy in his Guild Socialism Restated.

Saint-Simon, Fascism and the Corporative State

This traces the origins and development of these two systems of government. Saint-Simon was a French nobleman, who wished to replace the nascent French parliamentary system of the early 19th century with an assembly consisting of three chambers. These would be composed of leading scientists, artists and writers, and industrialists, who would cooperate to administer the state through economic planning and a programme of public works.

The Fascist Corporative State

This describes the development of the Fascist corporative state under Mussolini. This had its origins in the ideas of radical nationalist Syndicalists, such as Michele Bianchi, Livio Ciardi and Edmondo Rossoni, and the Nationalists under Alfredo Rocco. It was also influenced by Alceste De Ambris’ constitution for D’Annunzio’s short-lived regime in Fiume. It traces the process by which the Fascists established the new system, in which the parliamentary state was gradually replaced by government by the corporations, industrial organisations which included both the Fascist trade unions and the employers’ associations, and which culminated in the creation of Mussolini’s Chamber of Fasci and Corporations. It shows how this was used to crush the working class and suppress autonomous trade union activism in favour of the interests of the corporations and the state. The system was a failure, designed to give a veneer of ideological respectability to Mussolini’s personal dictatorship, and the system was criticised by the radical Fascists Sergio Panunzio and Angelo Olivetti, though they continued to support this brutal dictatorship.

Non-Fascist Corporativism

This discusses the way the British state also tried to include representatives of the trade unions and the employers in government, economic planning and industrial policies, and suppress strikes and industrial unrest from Lloyd George’s administration during the First World War. This included the establishment of the Whitley Councils and industrial courts. From 1929 onwards the government also embarked on a policy of industrial diplomacy, the system of industrial control set up by Ernest Bevin during the Second World War under Defence Regulation 58a. It also discusses the corporative policies pursued by successive British governments from 1959 to Mrs Thatcher’s election victory in 1979. During these two decades, governments pursued a policy of economic planning administered through the National Economic Development Council and a prices and incomes policy. This system became increasingly authoritarian as governments attempted to curtail industrial militancy and strike action. The Social Contract, the policy of co-operation between the Labour government and the trade unions, finally collapsed in 1979 during the ‘Winter of Discontent’.

Workers’ Control and Producers’ Chambers in Communist Yugoslavia

This discusses the system of industrial democracy, and workers councils in Communist Yugoslavia. This included a bicameral constitution for local councils. These consisted of a chamber elected by universal suffrage, and a producers’ chamber elected by the works’ councils.

Partial Nationalisation to End Corporate Influence in Parliament

This suggests that the undue influence on parliament of private corporations could be countered, if only partly, if the policy recommended by Italian liberisti before the establishment of the Fascist dictatorship. Those firms which acts as organs of government through welfare contracts, outsourcing or private healthcare contractors should be partially nationalised, as the liberisti believed should be done with the arms industries.

Drawbacks and Criticism

This discusses the criticisms of separate workers’ governmental organs, such as the Russian soviets, by Karl Kautsky. It shows how working class political interests have been undermined through a press dominated by the right. It also shows how some of the theorists of the Council Revolution in Germany, such as Kurt Eisner, saw workers’, peasants’ and soldiers’ councils as an extension of democracy, not a replacement. It also strongly and definitively rejects the corporative systems of Saint-Simon and Mussolini. This part of the book recommends that a workers’ chamber in parliament should be organised according to industry, following the example of the TUC and the GNC Trades’ Parliament. It should also include representatives of the unemployed and disabled, groups that are increasingly disenfranchised and vilified by the Conservatives and right-wing press. Members should be delegates, in order to prevent the emergence of a distinct governing class. It also shows how the working class members of such a chamber would have more interest in expanding and promoting industry, than the elite business people pursuing their own interests in neoliberal economics. It also recommends that the chamber should not be composed of a single party. Additionally, a workers’ chamber may in time form part of a system of workers’ representation in industry, similar to the Yugoslav system. The chapter concludes that while the need for such a chamber may be removed by a genuine working class Labour party, this has been seriously weakened by Tony Blair’s turn to the right and partial abandonment of working class interests. Establishing a chamber to represent Britain’s working people will be immensely difficult, but it may be a valuable bulwark against the domination of parliament by the corporate elite.

I’m considering publishing it myself in some form or another, possibly through the print on demand publisher, Lulu. In the meantime, if anyone wants to read a sample chapter, just let me know by leaving a comment.

Afshin Rattansi on UK Army Recruitment and When Trump Was Anti-War

In this short clip from RT’s Going Underground, main man Afshin Rattansi reports on and comments on the British army’s latest attempts to recruit more squaddies, as well as the time when Donald Trump appeared to be an anti-war candidate. The clip was posted on July 15, 2017, when Defence Secretary Michael Fallon was attending an air tattoo here in the UK.

In order to find 12,000 new recruits for the army, the government started looking for them in sub-Saharan Africa. Rattansi then pointedly comments that if there are viewers from that region of the continent, from poor and starving nations like Malawi, Mozambique or Sierra Leone, and they fancy dying for Britain, they can get through to army recruitment on the following number.

He also talks about the army’s attempts to recruit child soldiers using a video, This Is Belonging. It shows one squaddy walking behind his a truck carrying a load of his mates. At first they tease him by slowing down, so that he thinks he can climb in, before speeding up and pulling slightly away. They then slow down again, he manages to climb him, and is greeted with cheers and comradely backslaps from his mates.

Rattansi discusses how this video has been criticised by an anti-war group, Child Soldier International, because it is aimed at young people aged 16-25. And in particular those from the poorest and least educated sections of society. The video is also targeted at the good folk of the northern towns, which have been hardest hit by Thatcherism.

He also quotes the response from the government’s outsourcing partner, Capita, which predictably finds nothing wrong in this.

He then goes on to say that there is evidence from America that when poor kids, like those targeted by Capita’s wretched film, do come back from fighting and dying, they vote for anti-war candidates. Like Donald Trump. ‘You do remember when Trump was anti-war, right?’ he asks. He then plays footage of Trump telling the crowd that if he gets in, he will not send any more troops to the Middle East. It’s unjust to the millions of people that’ve been killed there, as well as to America. Thanks to the wars in the Middle East, America’s roads and hospitals aren’t properly maintained. If he gets in, he’ll stop the war and spend the money on that instead.

Child Soldier International isn’t the only organisation that has expressed concern about the UK’s recruitment of child soldiers. The issue got into the papers, or at least the I a few weeks ago. We are the only nation in Europe, I believe, that recruits children of 16 years old. Michelle, one of the great commenters on this blog, has also posted comments talking about the concerns of peace groups about the way the British army goes into schools to recruit there.

This used to happen at my old school here in Bristol. I don’t remember it ever happening to us in the top streams, but certainly recruiting films were shown to the less bright in the lower bands. One of our art teachers, a woman of left-wing opinions, was outraged by this. Someone told me that her father had been an air-raid warden during the War, and so had seen the bits of bodies strewn amongst the rubble after a bomb strike. If that was the case, then it’s not hard to see why she hated war, and those who seduce the young into fighting in one, so much.

As for Trump, I do remember when he was anti-war. Just like he also suggested at one point he was in favour of Medicare for All. Now he’s turned out to be no such thing. It was all lies. The result has been that many of the people, who voted for him are seriously disillusioned, and this is contributing to opposition to Trump within the GOP. A few days ago I came across a video on YouTube with the title, ‘Trump Will Destroy Capitalism’. I don’t think he will, but he’s certainly doing his damnedest. And if he does destroy it, then it won’t come too soon.

How do you like them facts?

Published by Anonymous (not verified) on Tue, 12/09/2017 - 11:00pm in

wage-inequality

Apologists for mainstream economics (such as Noah Smith) like to claim that things are OK because good empirical research is crowding out bad theory.

I have no doubt about the fact that the theory of mainstream economics has been bad. But is the empirical research any better?

Not, as I see it, in the academy, in the departments that are dominated by mainstream economics. But there is interesting empirical work going on elsewhere, including of all places in the International Monetary Fund (as I have noted before, e.g., here and here).

The latest, from Mai Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian, documents two important facts: the decline in labor’s share of income—in both developed and developing economies—and the relationship between the fall in the labor share and the rise in inequality.

I demonstrate both facts for the United States in the chart above: the labor share (the red line, measured on the left) has been falling since 1970, while the share of income captured by those in the top 1 percent (the blue line, measured on the right) has been rising.

labor shares

Dao et al. make the same argument, both across countries and within countries over time: declining labor shares are associated with rising inequality.

And they’re clearly concerned about these facts, because inequality can fuel social tension and harm economic growth. It can also lead to a backlash against economic integration and outward-looking policies, which the IMF has a clear stake in defending:

the benefits of trade and financial integration to emerging market and developing economies—where they have fostered convergence, raised incomes, expanded access to goods and services, and lifted millions from poverty—are well documented.

But, of course, there are no facts without theories. What is missing from the IMF facts is a theory of how a falling labor share fuels inequality—and, in turn, has created such a reaction against capitalist globalization.

Let me see if I can help them. When the labor share of national income falls—the result of the forces Dao et al. document, such as outsourcing and new labor-saving technologies—the surplus appropriated from those workers rises. Then, when a share of that growing surplus is distributed to those at the top—for example, to those in the top 1 percent, via high salaries and returns on capital ownership—income inequality rises. Moreover, the ability of those at the top to capture the surplus means they are able to shape economic and political decisions that serve to keep workers’ share of national income on its downward slide.

The problem is mainstream economists are not particularly interested in those facts. Or, for that matter, the theory that can make sense of those facts.

Tagged: 1 percent, economics, economists, exploitation, facts, inequality, mainstream, outsourcing, surplus, technology, theory, wages, workers

Cartoon of the day

Published by Anonymous (not verified) on Mon, 04/09/2017 - 10:00pm in

Cartoon of the day

Published by Anonymous (not verified) on Wed, 02/08/2017 - 9:00pm in

SilkJ20170729_low

Special mention

198505_600   The Democratic Party Restart

Tagged: Carrier, cartoon, Democrats, jobs, Mexico, outsourcing, Trump, Trumpcare