workers

Lenin’s Speech Denouncing Anti-Semitism

I found this fascinating little clip of a speech by Lenin, the founder of Soviet Communism, on Maoist Rebel News, presented by Jason Unruhe. I am very definitely not a Maoist, as I think it’s undeniable that he was one of the most murderous tyrants of the 20th century. About 60 million Chinese died in the purges and mass starvation created by the ‘Cultural Revolution’, and countless precious art treasures and other monuments from the country’s rich, ancient past, were destroyed.

Nevertheless, this piece is interesting and important as it shows how the Bolsheviks took seriously the threat of anti-Semitism, and were keen to stamp it out. Unruhe made the video in response to an appearance by Rick Harrison of Pawn Stars on Mark Levin’s radio show. Harrison owns the pawn shop featured in the show. It’s an American programme, but it’s also shown over here on one of the satellite/cable channels. I tried watching it once, when it was on the History Channel, in the vague hope that it might actually be interesting. It wasn’t. The programme largely consisted of the crew musing over various artifacts – in this case, a couple of pistols left over from the Old West – and speculating about how much they were worth. It reminded me a little of the Beeb’s antiques’ programmes, with the exception that the people looking at the antiques didn’t actually seem to know very much about them, apart from the very basics.

On Levin’s show, Harrison went off and laid into Barack Obama. Obama was ‘anti-business’ and blamed the Jews and intelligentsia for everything, just like Lenin. Well, no. Barack Obama is not at all like Lenin. Barack Obama is very definitely not ‘anti-business’, even remotely. As the Jimmy Dore Show and other alternative news shows have pointed out, ad nauseam, Obama is a bog-standard corporatist politician. He tried to privatise the public schools by turning them into Charter Schools, the American equivalent of British academy schools. Even Obamacare is private enterprise. It was originally dreamed up by the right-wing Heritage Foundation and promoted by Newt Gingrich, an arch-Republican. The last time I looked, America was still very much a private enterprise economy. Obama has even said that he considers himself to be a ‘moderate Republican’.

But such accusations are almost par for the course for the bonkers end of the Republican party. There have even been right-wing Christian radio hosts declaring that he was a mass-murderer, who was secretly planning to kill even more people than Mao and Stalin. And this is apart from all the hysterical screaming that he was a Communist-Nazi-crypto-Islamist terrorist intent on bringing about the fall of America and western civilisation.

He also spent eight years in power, and has now departed. Nobody was assassinated, or rounded up in cattle trucks to be deported to death camps. Or incarcerated in FEMA, which would be the modern equivalent, if you believe Alex Jones. But the rhetoric shows the sheer, blind hysteria that gripped some of these maniacs whenever Obama was mentioned.

Unruhe points out that it is factually incorrect that Lenin blamed the Jews for the problems of the nascent Soviet Union. He states that the Soviet leader spent a year touring the former Russian Empire, denouncing anti-Semitism and Jew hatred. How is this known? Because there are recordings of him. He then plays one. It’s clearly from a gramophone recording, complete with crackles and scratches, but it is subtitled in English. My Russian really isn’t very good at all, but from what little I can catch, the translation is accurate, and it states what Lenin is actually saying.

Lenin states that it is the capitalists, the landowners and the tsars, who were trying to stir up hatred against the Jews, as a way of dividing the working people of all nations and getting them to hate each other. He states that it is a medieval, feudal superstition, that exists only when workers and peasants are kept in slavery by the landlords. He says that most Jews are workers, and therefore our brothers. He acknowledges that amongst the Jews there are capitalists, the bourgeois and kulaks, just as there are all of these amongst Russians. He states that this hatred against the Jews is being stirred up by the capitalists to divert attention away from who really is exploiting working people: capital!

He cries out several times ‘Shame upon the tsars’ for stoking hatred against the Jews, for stirring up pogroms, massacres and persecution.

Unruhe points out in his introduction to the speech that it was actually Lenin’s opponents, the tsars, who were anti-Semitic. This is solid, established fact. Nicholas II was viciously anti-Semitic himself, and believed firmly in the ‘Blood Libel’ – the poisonous myth that Jews killed Christian children and used their blood to make the matzo bread for Passover. One of the issues that discredited Nicholas II’s rule was his repeated attempt to prosecute a Jew, Beilis, on this charge, despite the most anti-Semitic of his ministers telling him that it was stupid and ridiculous.

And in opposition to the workers’ and revolutionary movements, there were the Black Hundreds. These were groups of extreme right-wing supporters of the traditional order, who were viciously anti-Semitic.

It’s obviously glaringly true that Lenin was ‘anti-business’. But saying that makes it appear as though it was just a matter of prejudice. It wasn’t. Russia’s working people and peasants at the time laboured in appalling conditions, with many on literal ‘starvation wages’. And although the serfs had been freed in the 1860s by Alexander I, their lords and masters still treated their workers as unfree slaves. There were cases where factory masters told their workers ‘We own you!’ Hence before the Bolshevik coup there were hundreds of strikes and peasant revolts up and down the Russian Empire. You can easily see why before Lenin and the Bolsheviks seized power, there was a revolution that overthrew the Tsar, and the workers began electing left-wing parties like the Bolsheviks, Mensheviks, Trudoviks and Socialist Revolutionaries on to the workers’, peasants’ and soldiers’ soviets they set up to represent their own interests against the power of the capitalists.

As for the capitalists and business using anti-Semitism to divide working people of all nations, anti-Semitism in the West has been rightly discredited and regarded with loathing by the majority of people since the defeat of Nazism. But the right has used racism to try and attack the left and organised Labour. You can see it in the way the Tories have tried to stir up nationalist sentiment against Muslims and other ‘unassimilable’ immigrants, quite apart from the fearmongering about workers coming from elsewhere in the EU and eastern Europe.

I’m not a fan of Lenin. He created a very authoritarian system, which eventually led to the murderous tyranny of Stalin. But he was no anti-Semite, and his speech still remains a very relevant commentary on the political uses of racial hatred.

Cartoon of the day

Published by Anonymous (not verified) on Sat, 18/11/2017 - 11:41pm in

202726

Special mention

202730

Tagged: cartoon, middle-class, tax cuts, time, Trump, workers

Desperately seeking a link between wages and productivity

Published by Anonymous (not verified) on Tue, 14/11/2017 - 1:00am in

productivity

Everyone, it seems, now agrees that there’s a fundamental problem concerning wages and productivity in the United States: since the 1970s, productivity growth has far outpaced the growth in workers’ wages.*

Even Larry Summers—who, along with his coauthor Anna Stansbury, presented an analysis of the relationship between pay and productivity last Thursday at a conference on the “Policy Implications of Sustained Low Productivity Growth” sponsored by the Peterson Institute for International Economics.

Thus, Summers and Stansbury (pdf) concur with the emerging consensus,

After growing in tandem for nearly 30 years after the second world war, since 1973 an increasing gap has opened between the compensation of the average American worker and her/his average labor productivity.

The fact that the relationship between wages and productivity has been severed in recent decades presents a fundamental problem, both for U.S. capitalism and for mainstream economic theory. It calls into question the presumption of “just deserts” within U.S. economic institutions as well as within the theory of distribution created and disseminated by mainstream economists.

It means, in short, that much of what American workers are produced is not being distributed to them, but instead is being captured to their employers and wealthy individuals at the top, and that mainstream economic theory operates to obscure this growing problem.

It should therefore come as no surprise that Summers and Stansbury, while admitting the growing wage-productivity gap, will do whatever they can to save both current economic institutions and mainstream economic theory.

First, Summers and Stansbury conjure up a conceptual distinction between a “delinkage view,” according to which increases in productivity growth no long systematically translate into additional growth in workers’ compensation, and a “linkage view,” such that productivity growth does not translate into pay, but only because “other factors have been putting downward pressure on workers’ compensation even as productivity growth has been acting to lift it.” The latter—linkage—view maintains mainstream economists’ theory that wages correspond to workers’ productivity and that, in terms of the economy system, increasing productivity will raise workers’ wages.

Second, Summers and Stansbury compare changes in labor productivity and various time-dependent and lagged measures of the typical worker’s compensation—average compensation, median compensation, and the compensation of production and nonsupervisory workers—and find that, while compensation consistently grows more slowly than productivity since the 1970s, the series (both of them in log form) move largely together.

Their conclusion, not surprisingly, is that there is considerable evidence supporting the “linkage” view, according to which productivity growth is translated into increases in workers’ compensation and hence improving living standards throughout the postwar period. Thus, in their view, it’s not necessary—and perhaps even counter-productive—to shift attention from growth to solving the problem of inequality.

ButSummers and Stansbury are still unable to dismiss the existence of an increasing wedge between productivity and compensation, which has two components: mean and median labor compensation have diverged and, at the same time, there’s been a falling labor share in the United States.

That’s where they stumble. They look for, but can’t find, a link between productivity and those two measures of growing inequality. There simply isn’t one.

What there is is a growing gap between productivity and compensation in recent decades, which has result in both a falling labor share and higher growth of labor compensation at the top. That is, more surplus is being extracted from workers and some of that surplus is in turn distributed to those at the top (e.g., industrial CEOs and financial executives).

Moreover, one can argue, in a manner not even envisioned by Summers and Stansbury, that the increasing gap between productivity and workers’ compensation is at least in part responsible for the productivity slowdown. Changes in the U.S. economy that emphasize capturing an increasing share of the surplus from around the world have translated into slower productivity growth in the United States.

The only conclusion, contra Summers and Stansbury, is that even if productivity growth accelerates, there is no evidence that suggests “the likely impact will be increased pay growth for the typical worker.”

More likely, at least for the foreseeable future, is the increasing inequality and the (relative) immiseration of American workers. Those are the problems neither existing economic institutions nor mainstream economic theory are prepared to acknowledge or solve.

 

*Actually, the argument is about productivity and compensation, not wages. In fact, Summers and Stansbury assert that “the definition of ‘compensation’ should incorporate both wages and non-wage benefits such as health insurance.” Their view is that, since the share of compensation provided in non-wage benefits significantly rose over the postwar period, comparing productivity against wages alone exaggerates the divergence between pay and productivity. An alternative approach distinguishes what employers have to pay to workers, wages (the value of labor power, in the Marxian tradition), from what employers have to pay to others, such as health insurance companies, in the form of non-wage benefits (which, again in the Marxian tradition, is a distribution of surplus-value).

Tagged: CEOs, compensation, inequality, Larry Summers, productivity, surplus, United States, wages, workers

Cartoon of the day

Published by Anonymous (not verified) on Tue, 14/11/2017 - 12:00am in

Cartoon of the day

Published by Anonymous (not verified) on Mon, 13/11/2017 - 1:00am in

Fabian Pamphlet on the Future of Industrial Democracy : Part 1

The Future of Industrial Democracy, by William McCarthy (London: Fabian Society 1988).

A few days ago I put up a piece about a Fabian Society pamphlet on Workers’ Control in Yugoslavia, by Frederick Singleton and Anthony Topham. This discussed the system of workers’ self-management of industry introduced by Tito in Communist Yugoslavia, based on the idea of Edvard Kardelj and Milovan Djilas, and what lessons could be learnt from it for industrial democracy in Britain.

William McCarthy, the author of the above pamphlet, was a fellow of Nuffield College and lecturer in industrial relations at Oxford University. From 1979 onwards he was the Labour party spokesman on employment in the House of Lords. He was the author of another Fabian pamphlet, Freedom at Work: towards the reform of Tory employment law.

The pamphlet followed the Bullock report advocating the election of workers to the management board, critiquing it and advocating that the system should be extended to firms employing fewer than the thousands of employees that were the subject of reforms suggested by Bullock. The blurb for the pamphlet on the back page runs

The notion of industrial democracy – the involvement of employees in managerial decisions – has been around at least since the time of the Guild Socialists. However, there has been little new thinking on the subject since the Bullock Committee reported in the 1970s. This pamphlet redresses this by re-examining the Bullock proposals and looking at the experience of other European countries.

William McCarthy outlines the three main arguments for industrial democracy:
* it improves business efficiency and performance;
* most workers want a greater say in their work environment;
* a political democracy which is not accompanied by some form of industrial power sharing is incomplete and potentially unstable.

He believes, however, that the emphasis should no longer be on putting “workers in the boardroom.” Instead, he argues that workers ought to be involved below the level of the board, through elected joint councils at both plant and enterprise levels. These councils would have the right to be informed about a wide range of subjects such as on redundancies and closures. Management would also be obliged to provide worker representatives with a full picture of the economic and financial position of the firm.

William McCarthy argues that Bullock’s plan to limit worker directors to unionised firms with over 2,000 workers is out of date. it would exclude over two thirds of the work force and would apply only to a steadily shrinking and increasingly atypical fraction of the total labour force. As the aim should be to cover the widest possible number, he advocates the setting up of the joint councils in all private and public companies, unionised or otherwise, that employ more than 500 workers.

In all cases a majority of the work force would need to vote in favour of a joint council. This vote would be binding on the employer and suitable sanctions would be available to ensure enforcement.

Finally, he believes that this frame of industrial democracy would allow unions an opportunity to challenge their negative and reactionary image and would demonstrate the contribution to better industrial relations and greater economic efficiency which can be made by an alliance between management, workers and unions.

The contents consist of an introduction, with a section of statutory rights, and then the following chapters.

1: The Objectives of Industrial Democracy, with sections on syndicalism, Job Satisfaction and Economic and Social Benefits;

2: Powers and Functions, with sections on information, consultation, areas of joint decision, union objection, and co-determination;

3: Composition and Principles of Representation, with sections on selectivity, the European experience, ideas and legal framework.

Chapter 4: is a summary and conclusion.

The section on Syndicalism gives a brief history of the idea of industrial democracy in Britain from the 17th century Diggers during the British Civil War onwards. It says

The first of these [arguments for industrial democracy – employee rights] is as old as socialism. During the seventeenth century, Winstanley and the Diggers advocated the abolition of landlords and a system of production based on the common ownership of land. During the first half o the 19th century, Marx developed his doctrine that the capitalist system both exploited and “alienated” the industrial workers, subjecting them to the domination of the bourgeoisie who owned the means of production. Under capitalism, said Marx, workers lost all control over the product of their labour and “work became a means to an end, rather than an end to itself” (see Philosophy and Myth in Karl Marx, R. Tucker, Cambridge University Press, 1961). During the latter half of the nineteenth century, Sorel and his followers developed the notion of “revolutionary syndicalism” – a form of socialism under which the workers, rather than the state, would take over the productive resources of industry. Syndicalists were influential in Europe and America in the years before the First World War. They advocated industrial action, rather than the use of the ballot box, as a means of advancing to socialism (see The Wobblies, P. Renshaw, Eyre & Spottiswoode, 1967).

In Britain, syndicalism came to adopt a more constitutionalist form with the formation of the guild socialists. They did not reject the use of parliamentary action, but argued that a political democracy which was not accompanied by some form of industrial power sharing was incomplete and potentially unstable. This was the basic argument of their most distinguished theoretician, G.D.H. Cole. In more recent times a trenchant restatement of this point of view can be found in Carole Pateman’s Participation and Democratic Theory (Cambridge: Cambridge University Press, 1970).

In his earliest writing Cole went as far as to argue that socialism required that that “the workers must election and control their managers”. As he put it “In politics, we do not call democratic a system in which the proletatiat has the right to organise and exercise what pressure it can on an irresponsible body of rulers: we call it a modified aristocracy; and the same name adequately describes a similar industrial structure” (The World of Labour,Bell, 1913).

Subsequently Cole came to feel that continued existence of a private sector, plus the growth of collective bargaining, required some modification of the syndicalist doctrine behind Guild Socialism. By 1957, he was arguing for workers to be given “a partnership status in private firms, “sharing decisions” with the appropriate level of management C The Case for Industrial Partnership, MacMillan, 1957. This is very much the position advanced by Carole Pateman after her critique of more limited theories of democracy-eg those advanced by Schumpeter and others. These “minimalist” democrats took the view that in the context of the modern state, the most one could demand of a democracy was that it should provide a periodic electoral contest between two competing political elites. After reviewing examples of industrial democracy at work in a number of countries Pateman concluded “…it becomes clear that neither the demands for more participation, not the theory of participatory democracy itself, are based, as is so frequently claimed, on dangerous illusions or on an outmoded and unrealistic theoretical foundation. We can still have a modern, viable theory of democracy which retains the notion of participation at its heart.” (op. cit.)

Continued in Part 2, which will cover the sections on the pamphlet ‘Ideas’ and ‘Legal Framework’.

Two Russian Revolutionary Posters: Victory to the Workers and Peasants or Death Under Capitalism

As I’ve mentioned several times, this is the centenary year of the October/November Russian Revolution. A week or so ago I put up a few Communist era Soviet posters, which I felt still held an important for the contemporary, post-Communist world. They were against Fascism and war, with one in particular against the threat of nuclear holocaust. We now face the threat of a resurgent extreme Right in America and Europe, while Trump has brought us perilously close to a nuclear war with North Korea.

The two posters below come from the time of the Russian Revolution and Civil War.

The text in the poster above talks about the workers and peasants arming themselves in order to defend their freedom against the power of the capitalists and the White Russians. The two panels at the bottom state that the power of the bourgeoisie is the power of death.

This poster shows a victorious worker, holding a banner proclaiming all power to the workers’ and peasants’ Soviets, underneath which is the slogan ‘Or Death to the Capitalists’ on one side the page. On the other side is a caricature capitalist standing on top a prone worker, waving a banner proclaiming ‘All Power to the Capitalists’. Underneath this the legend reads ‘Or death under the feet of the capitalists’.

I very definitely do not believe in violent revolution, and don’t want British democracy overthrown by anyone, whether of the Right or the Left. But I’m putting these posters up as they are acutely relevant to Britain in the Present.

This government is killing people for the benefit of the rich. On Tuesday Mike blogged about a report by the Trussell Trust that revealed that the roll out of Universal Credit in more districts had resulted in a thirty per cent increase in people using food banks. Between April and September of this year, 2017, foodbanks handed out 586,907 emergency food parcels, which constitutes a 13 per cent rise on the figures for the same period last year. In those areas where Universal Credit has been implemented for six months or more, the number of people using them has risen by 30 per cent.

Mike commented on the way IDS had appeared on the Beeb today, to comment on the misbehaviour of Priti Patel and Boris Johnson without anyone commenting on his crimes against the British people. He concluded

Thousands of people have died. Remember that, whenever you see this man.

http://voxpoliticalonline.com/2017/11/07/this-should-be-the-proof-we-need-that-tory-universal-credit-is-starving-british-families/

Absolutely. As in the Russian revolutionary posters above, this government is killing people for the benefit of the rich and big business. It is destroying the welfare state to create bigger profits for industry, an impoverished, crushed workforce prepared to work for starvation wages, and immense tax cuts for the wealthy 25 per cent of the population.

The solution is not armed revolution, but organisation. We just need to keep campaigning, putting pressure on this weak and wobbly government and its blustering, corrupt and incompetent leader, and force them out. And then keep them out.

Before the party of Thatcher, David Cameron and Theresa May murder thousands more people through IDS’ policies.

Where has all the surplus gone?

Published by Anonymous (not verified) on Fri, 10/11/2017 - 1:00am in

profits abroad

Thanks to the release of the so-called Paradise Papers, and the additional research conducted by Gabriel Zucman, Thomas Tørsløv, and Ludvig Wier, we know that a large share of the surplus captured by corporations is artificially shifted to tax havens all over the world. This, of course, is on top of the conspicuous tax evasion practiced by the individual holders of a large portion of the world’s wealth.

Thus, for example, U.S. multinational corporations now claim to generate 63 percent of all their foreign profits in six tax havens, the most prominent being the Netherlands, Bermuda and the Caribbean, and Ireland. This is 20 points more than in 2006.*

What this means is that, in the tax havens themselves, low tax rates can generate large tax revenues relative to the size of the economies. But it also means large multinational corporations can play off one tax have against others, and shift their profits to those with the most generous laws and regulations—as Apple has recently done, by relocating tens of billions of dollars from Ireland to the small island of Jersey (which typically does not tax corporate income and is largely exempt from European Union tax regulations).

tax loss

It also means that the putative home countries of the multinational corporations lose potential tax revenues, which means a larger tax burden is imposed on others, especially individuals and small businesses.

In the case of the United States, Zucman and his colleagues estimate that the United States loses almost 60 billion euros to tax havens (about three quarters from European Union tax havens and the rest from tax havens elsewhere), which amounts to about 25 percent of the corporate tax revenue it currently collects.

As Zucman explains,

Tax havens are a key driver of global inequality, because the main beneficiaries are the shareholders of the companies that use them to dodge taxes.

Clearly, the existing rules are such that large multinational corporations win twice: first, by capturing more and more surplus from their workers, whose wages have barely budged in recent decades; and second, by using tax havens to avoid paying taxes on a large portion of that surplus, thus shifting the tax burden onto workers at home.

 

*I created the charts in this post based on data that have been made publicly available by Zucman, Tørsløv, and Wier.

Tagged: chart, corporations, Europe, inequality, surplus, tax havens, taxes, United States, workers

The Nazis, Capitalism and Privatisation

One of the tactics the Right uses to try to discredit socialism is to claim that the Nazis were socialist, based largely on their name and the selective use of quotes from Hitler and other members of the Nazi party.

This claim has been repeatedly attacked and refuted, but nevertheless continues to be made.

In the video below, Jason Unruhe of Maoist Rebel News also refutes the argument that the Nazis were socialists by looking at the economic evidence and the Nazis’ own policy of privatising state-owned industries and enterprises. He puts up several graphs showing how the stock market rose under the Nazis, as did the amount of money going to private industry. Indeed, this evidence shows that the Nazis were actually more successful at managing capitalism than the democratic, laissez-faire capitalist countries of Britain and the US.

Then there is the evidence from the Nazis’ own policy towards industry. He cites a paper by Germa Bel in the Economic History Review, entitled ‘Against the Mainstream: Nazi Privatisation in 1930s Germany’. In the abstract summarising the contents of the article, Bel states

In the mid-1930s, the Nazi regime transferred public ownership to the private sector. In doing so, they went against the mainstream trends in Western capitalistic countries, none of which systematically reprivatized firms during the 1930s.

He goes further, and makes the point that the term ‘privatisation’ actually comes from Nazi Germany. It’s the English form of the German term reprivatisierung.

I am very definitely not a Maoist, and have nothing but contempt for the Great Helmsman, whose Cultural Revolution led to the deaths of 60 million Chinese in the famines and repression that followed, and unleashed a wave of horrific vandalism against this vast, ancient countries traditional culture and its priceless antiquities and art treasures.

But Unruhe has clearly done his research, and is absolutely correct about the capitalist nature of German industry under the Third Reich. Robert A. Brady, in his The Spirit and Structure of German Fascism (London: Victor Gollancz 1937) also described and commented on the privatisation of industry under the Nazis.

He states that the organs set up by the Nazis to ‘coordinate’ the industrial and agricultural sectors were specifically forbidden from giving any advantages to the state sector rather than private industry, and that state industry was handed over to private industrialists.

The same picture holds for the relations between the National Economic Chamber and the organs of local government. As Frielinghaus has put it, “The new structure of economics recognises no differences between public and private economic activity….” Not only are representatives of the various local governments to be found on both the national and regional organs of the National Economic Chamber, but it is even true that local government is co-ordinated to the end that economic activities pursued by them shall enjoy no non-economic advantages over private enterprise.

The literature on this point is perfectly explicit, being of a nature with which the general American public is familiar through numerous utterances of business leaders on the “dangers of government competition with private enterprise.” Under pressure of this sort the Reich government and many of its subsidiary bodies have begun to dispose of their properties to private enterprise or to cease “competition” with private enterprise where no properties are at stake. Thus the Reich, the states and the communes have already disposed of much of the holdings in the iron and steel industry (notably the United Steel Works), coal and electric power. Similarly, support is being withdrawn for loans to individuals wishing to construct private dwellings wherever private enterprise can possibly make any money out the transactions. True, the government has been expanding its activities in some directions, but mainly where there is no talk of “competition with private enterprise”, and with an eye to providing business men with effective guarantees against losses. (Pp. 291-2).

There is a serious academic debate over how far Fascism – both in its Nazi and Italian versions – was genuinely anti-Socialist and anti-capitalist. Mussolini started off as a radical Socialist, before breaking with the socialists over Italian intervention in the First World War. He then moved further to the right, allying with Italian big business and agricultural elites to smash the socialist workers’ and peasants’ organisations, and setting up his own trade unions to control the Italian workforce in the interests of Italian capital.

Ditto the Nazis, who banned the reformist socialist SPD – the German equivalent of the Labour party – and the Communist party, and destroyed the German trade unions. Their role was then taken over by the Labour Front, which also acted to control the workforces in the interests of capital and management.

As for Hitler’s use of the term ‘socialist’ and the incorporation of the colour red, with its socialist overtones, into the Nazi flag, Hitler stated that this was to steal some of the attraction of the genuine socialist left. See the passage on this in Joachim C. Fest’s biography of the dictator. The incorporation of the word ‘socialist’ into the Nazi party’s name was highly controversial, and resisted by many of the party’s founders, as they were very definitely anti-socialist.

Brady himself comments on how the Nazis’ appropriation of the term ‘socialist’ is opportunistic, and disguises the real capitalist nature of the economy. He writes

the principle of “self-management” does appear to allow the business men to do pretty much what they wish. The cartels and market organisations remain, and have, in fact, been considerably strengthened in many cases. These are the most important organisations from the point of view of profits. The larger machinery is, as previously indicated, primarily designed to co-ordinate police on threats to the underlying tenets of the capitalistic system. The fact that the new system is called “socialism,” and that “capitalism” has been repudiated, does not detract from this generalisation in the slightest. The changes made to such as worry compilers of dictionaries and experts in etymology, not economists. For the realities of “capitalism” has been substituted the word “socialism”; for the realities of “socialism” has been substituted the word “Marxism”; “Marxism” has,, then, been completely repudiated. By reversing the word order one arrives at the truth, i.e. “socialism” in all its forms has been repudiated and capitalism has been raised into the seventh heaven of official esteem.

And the structure of Nazi Germany, where there were very close links between local and state government and industry, and where private industry and big business were celebrated and promoted, sounds extremely similar to the current corporatist political system in Britain and America. Here, political parties now favour big business over the public good, thanks to receiving donations and other aid, including the loan of personnel, from private firms, and the appointment of senior management and businessmen to positions within government. While at the same time pursuing a policy of deregulation and privatisation.

And this is without discussing the murderous Social Darwinism of the Reaganite/ Thatcherite parties, including Blairite New Labour, which has seen the welfare safety net gradually removed piecemeal, so that hundreds of thousands in Britain are now forced to use food banks to survive, and around 700 desperately poor, and particularly disabled people, have died in misery and starvation thanks to the regime of benefit sanctions and the use of pseudo-scientific procedures by ATOS and Maximus to declare seriously and terminally ill people ‘fit for work’.

The Blairites, Tories and their Lib Dem partners have set up a system of secret courts, in which, if it is considered ‘national security’ is at stake, individuals can be tried in secret, without knowing what the charges against them are, who their accuser is, or the evidence against them. Cameron and May, and indeed Tony Blair, followed Thatcher’s lead in trying to destroy the unions, and have put in place progressively stricter legislation against political protests.

Meanwhile, under the guise of combating ‘fake news’, internet companies like Google and Facebook are trying to drive left-wing, alternative news networks and sites off the Net.

The Code Pink and Green Party campaigner, Vijay Prashad, gave a speech in Washington, where he stated that Trump could be the last president of the US. If he doesn’t destroy the world, the political processes that are operating under him could result in him being the last democratically elected president, should the elites get tired of democracy.

Trump’s regime is certainly Fascistic, particularly in the support it receives from racist, White supremacist and openly Nazi organisations. If the business elites bankrolling the two parties do get tired of democracy – and due to their pernicious influence Harvard University has described the current American political system as an oligarchy, rather than democracy – then the transition to real Fascism will have been completed.

And where the Republicans go in America, the Tories over here in Britain duly follow.

Fabian Pamphlet on Workers’ Control in Yugoslavia: Part 2

Published by Anonymous (not verified) on Wed, 08/11/2017 - 6:37am in

Continued from Part 1.

The Role of the Trade Unions

It is usually assumed that in a capitalist economy the Trade Union movement fulfills a different and essentially more democratic role than the unions in a country such as Yugoslavia. It is said that by remaining independent of management and government the unions provide the essential element in any democracy, that of opposition. This has always been one of the stumbling blocks which any advocate of workers’ control must encounter. An understanding of the role of our own trade union movement is a necessary first step towards working out a programme for democratising industry which does not fall foul of this traditional objection. This understanding may be furthered by an appreciation of the position of trade unions in other countries where social systems are different. In Britain it may well be that the trade unions become more and more committed to the status quo in industry, so their opposition function is weakened. The respect for national collective agreements, the support of the leadership for the current productivity drive, the discouragement of unofficial strike action, the rejection of co-ordinated industrial action to break the pay pause, and finally the decision to join the NEDC suggest that the unions are moving towards the position of partners in a managerial society.

The simple distinction between free trade unionism in a capitalist society, and trade unions in a communist state which become organs for the implementation of state policy, becomes increasingly blurred. We should think instead of a spectrum of relative degrees of independence from the state, ranging from the Russian trade unions at one extreme, through Yugoslav, Scandinavian and Dutch, to the British and American movements at the other, with perhaps the Communist Unions of France and Italy as the least committed to the state. The recognition of this trend does not imply advocacy of a general strike mentality over the pay pause, for example, but we need a more honest recognition of what is taking place. We should admit first that it is inevitable that the trade unions will move in the direction of close co-operation with government, and towards a ‘national interest’ point of view. As this trend continues, the worker is faced with the growing prospect of an alliance between government, employers and unions. In this situation union leaders no longer express the independent sectional and industrial aspirations of their members. Partly because of this, the role of the voluntary rank and file element in trade union government appears to be diminishing and its functions are being superseded by paid officials. The unions are becoming agencies run for their members and not by them.

With the weakening of the elements of opposition and participation there is a need to seek alternative means by which employees can express themselves in the government of industry. This need arises not only from a consideration of industrial democracy, but also of industrial efficiency. Appeals for increased industrial production, such as British Productivity Year, evoke slight response because they are based on an assumption of team spirit and equal partnership which is excluded by the very nature of social relationships in a private enterprise economy. Yugoslav experience strongly suggests that increased productivity is one of the results of their form of industrial democracy. However if democratisation in industry is advocated solely on grounds of higher productivity, it will be received with suspicion. The question would not be how much power and control can we give to democratic forms of management, but rather how small a concession will be necessary in the interests of productivity. Such a path would reproduce the history of progressive disillusion which has befallen Joint Consultation. Thus the idealist exponent of workers’ control may claim to solve must fully the economic problem of incentive.

In Britain, advocates of workers’ control have traditionally thought in terms of Trade Union management of industry. Efforts in this direction have always ended in a blind alley, since the objection that this involves a dual loyalty for the union is a valid one. As we have seen, the Yugoslav system does not involve Trade Unions in the direct management of the Enterprise. It suggests not only a new role for the Unions, but also the practical constitutional forms for the management of the firm by its employees.

The role of the unions in such a system is that of a mass social institution representing the wider national interests of the workers and tackling problems such as the overall levels of incomes and income structure, labour productivity etc. As we have suggested, there is already a tendency for British unions to assume such a role, and the doubts which we have raised about the desirability of this trend would be dispelled if the unions were operating within the framework of an industrial democracy. If workers had legally guaranteed rights of management then the need for the union to be an instrument of opposition is weakened. However, unions could still continue to protect the interests of their members by taking up grievances on behalf of groups and individuals who are in dispute with the elected management bodies. They should certainly seek to influence the decisions and activities of management bodies, but should not be tied to them in an institutional sense.

Workers Democracy in Britain

In considering the relevance of the Yugoslav model to British conditions, two objections may arise. The First concerns the compatibility of Industrial democracy and the private ownership of industry. Does it not challenge the very origins of power which are possessed by the managers of private enterprise firms? Is it not desirable for the Labour movement to give much closer attention to the possibility of introducing experimental forms of workers’ control within existing nationalised industry. This would demonstrate the practicability of the method and point a way to the fully democratic society at which the socialist movement aims.

The second objection is more difficult to counter. Yugoslavia is a one party state. is it likely that in a multi-party state, industrial democracy could be introduced with any guarantee of its permanence? Would not the anti-socialist forces exert such pressure that the system was undermined whilst it was being introduced, and abolished at the first opportunity presented by the return of a Conservative government? It is probably true in Yugoslavia that the permission of opposition views and organisations could generate counter-revolutionary forces which would seriously retard the evolution of the system. The government and the Party clearly fear this. Thus after flirting with Djilas’ heresies, which included the advocacy of a second – though socialist – party, the leadership decided against taking the risk. This is the point at which Yugoslav experience ceases to be helpful to us.

We should not therefore assume that the introduction of industrial democracy in the British context is impracticable. There are signs that unease concerning status at work has penetrated through to the political arena. Liberal party references to ‘syndicalism’ and the long-awaited Conservative Industrial Charter are manifestations of this. These schemes relate to the improvement of the position of workers within the present hierarchical framework, and do not tackle the root of the problem. We would expect that the early demonstration of the viability of a system of democratic control within the nationalised industries would generate enthusiasm for the idea and lead to demands for its extension. The British political system certainly restricts the speed of change, but a change which has become truly popular is difficult to reverse (e.g. The National Health Service). We believe that the Labour Party could, by taking the first steps towards democracy within nationalised industry, transform what has been an electoral embarrassment and a millstone into its biggest asset.

See Part 3 for my own conclusions.

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