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To Win in the Countryside, Labour Can Start by Defending the Small Farmers

Published by Anonymous (not verified) on Wed, 09/09/2020 - 1:28am in

Mike put up a piece yesterday reporting the prediction that if Boris and the Tories get the no deal Brexit their paymasters, the hedge funds, want, 1/3 of Britain’s farmers will go bust in the next five years. These are going to be the small farmers, who were suckered into believing that leaving the EU would make things better for them. They were wrong, and Mike asks how much sympathy we should have for them, considering they voted for Brexit. Actually, it’s not difficult to understand how. We were taught about the EEC as it was then in geography at my old school, including the Common Agricultural Policy. I can’t remember the details, but this was geared to granting subsidies and rewarding the much-less efficient farming systems of France and Germany, and penalised our agricultural sector, which is much more mechanised and employs far fewer people. The system of subsidies, if I remember correctly, also tranferred money and funding from the advanced agriculture of northern Europe to the less developed farms of the grain belt around the Mediterranean. Given that the Common Agriculture Policy actually put our farmers at a relative disadvantage, it isn’t hard to see why our farmers, like the fishermen, wanted to leave.

However, the big farmers were advised not to vote for Brexit, didn’t, and probably won’t suffer quite as much as their smaller cousins. However, I do think this crisis offers Labour an opportunity to show Britain’s rural communities that it hasn’t forgotten them. There have already been discussions about how Labour could win in the countryside, including a Fabian pamphlet about the issue. Well, I think Labour can start by following the example of the Swedish Social Democrats in the 1920s and 1930s. I can’t remember where I read it, but I read somewhere that the Social Democrats’ 50 year stay in power began in the 1920s when it backed the small, peasant farmers against the threat of bankruptcies and land seizures. I think the party and its members not only opposed these in parliament and local councils, but actually physically turned out to stop the bailiffs seizing individual farms and evicting the peasant farmer.

There’s a crisis going on in the countryside. If you watch the Beeb’s Countryfile, you’ll have seen reports about British farmers rural communities being under threat. Apart from the continuing problems of British agriculture, many rural communities are also suffering from cuts to local services and a lack of housing that local people can afford, rather than rich outsiders. Also, if you read George Monbiot’s Captive State, you’ll also know how the corporativism of New Labour and now the Tories actually harms farmers and local small businesses. Corporativism gives government subsidies and positions to big business in return for their donations. New Labour especially favoured the big supermarket chains, like Sainsbury’s, and gave it’s chief, David Sainsbury, a position on one of regulatory bodies, because Sainsbury at the time backed the party and donated to it. However, the supermarkets offer their cheap food at the expense of the producers, who are bound into manipulative and highly exploitative contracts. One of the supermarkets boasted a few years ago about the money it was giving to charity. In fact, none of that money came from the supermarket itself – it was all taken from its producers. At the same time, supermarkets undercut small businesses, like the local butcher, greengrocer and so on. But this also creates unemployment, because small businesses like theirs employ more people. If Labour wants to improve conditions in the countryside for small businesses like Arkwright’s in the classic Beeb comedy series, Open All Hours, it has to attack corporativism and the big supermarket chains. But I can’t see that happening under a Blairite like Starmer.

I expect that most of Britain’s farmers are probably Conservatives. But this doesn’t alter the fact that, whatever they believe, the Tories have abandoned them and their policies are actively harming small farmers and businesses and rural communities. The Labour party can start winning back the countryside by actively and obviously defending those hit by Tory policies.

And that means protesting against the closures of small farms when the Tories’ no deal Brexit hits them.

From 1996: Downsizing Guru Realises It Doesn’t Work

Published by Anonymous (not verified) on Thu, 23/07/2020 - 8:55pm in

Remember the downsizing craze of the 1980s and 1990s, when Thatcherite economists all demanded that big firms should slim down through mass lay-offs and sackings? Firms were overstaffed, and it was all flab that needed to be cut out to make them ‘lean and mean’ in the marketplace.

Looking back through my scrapbooks of newspaper clippings, I found this article by the Daily Mail’s industrial correspondent, David Norris, ‘Guru of the job cutters admits downsizing has its down side’ in that paper’s edition for Monday, May 13, 1996. The article runs

‘An international economic guru who advocated massive job-shedding to make big business lean and fit has admitted he got it all wrong.

American Stephen S. Roach coined the word ‘downsizing’ in the early Eighties to sum up his philosophy that ruthless workforce pruning was needed to boost profits and productivity.

It was seized on around the world – not least in Britain, where hundreds of thousands of full-time jobs have disappeared over the last ten years.

His astonishing turnaround is certain to provoke more outrage against ‘fat-cat’ bosses, who have often used huge payroll savings to justify big salary rises for themselves.

‘Downsizing’ became a boardroom buzzword, with directors proudly telling shareholders that they were able to  pay higher dividends through redundancy-related cost-savings. The slick  term was more acceptable than talking of throwing people out of work.

Middle England has been worst hit, with thousands of white-collar jobs axed. High street banks have between them got rid of 90,000 staff since 1989. Downsizing has created a climate of insecurity which many blame for the still sluggish economic recovery. And the Government has lost millions of pounds in tax from workers axed from previously labour-intensive industries.

It emerged yesterday that Mr Roach, chief economist at the investment bank Morgan Stanley on Wall Street, announced his conversion in a memo to his firm’s clients.

He confessed he had now concluded that relentless cost-cutting was bad for business. ‘If you compete by building, you have a future. If you compete by cutting, you don’t’,’ the contrite guru said.

‘For years I have extolled the virtues of America’s productivity-led recovery. While I think it’s safe to say that such a scenario has become the new mantra for U.S. businesses in the 1990s, I must confess that I’m now having second thoughts.”

And he warned of a worker backlash ‘not on the shopfloor, but in the polling booths’.

That forecast was echoed by TUC boss John Monks yesterday.

He said: ‘Downsizing has done more than any other single business strategy to create the deep insecurity felt in Britain.

‘I hope this will herald a re-think in Britain’s boardrooms. Long-term success comes from steady investment and skilled, motivated staff.”

Around 38 per cent of Britain’s workforce – nearly ten million people – are now not in full-time permanent jobs. They are either in part-time or temporary work, or self-employed.

The main full-time job creation thrust has come from small firms, employing 20 staff or fewer. They have taken on 2.5 million extra workers in ten years.

Big retail chains have also taken on more workers. Tesco recently announced it was recruiting 4,500 to pack bags and generally assist shoppers. Last month it revealed record profits.

Late payment is still a problem for 45 percent of small and medium businesses.

The average time taken to be paid has risen from 52.8 days in 1994 to 53.2 this year, according to a survey by the Confederation of British Industry and accountancy firm Coopers & Lybrand.’

Ha-Joon Chang describes in his book, 23 Things They Don’t Tell You About Capitalism, how downsizing has literally driven firms bankrupt. They cut back their staff and plant so much in order to boost management pay and shareholder dividends beyond the point where they were economically viable. He argues that the most durable firms tend to be those where the state also has a stake in the firm, and so in maintaining it, or where the workers are also strongly involved in its management. Chang’s not anti-capitalist, but he states that shareholders are fickle – the moment they think a firm is no longer as profitable as another company, or is in trouble, they’ll sell their shares and go elsewhere.

Despite this attack on downsizing’s credibility and the loss of government revenue it has created, job insecurity has increased massively to the point where it is normal. Blair and Gordon Brown are as responsible for this as the Tories, as they accepted the neoliberal, Thatcherite dogma that the labour market had to be fluid and flexible. Which means that firms should find it easy to lay off staff and their should always be a supply of cheap workers waiting to be taken on.

Thatcherism has been a disaster. This clipping from a quarter of a century ago shows one of its central doctrines was recognised as such by the man who invented it even them. But it’s kept the rich richer, and the poor poorer, and so despite articles like this, it’s still being pushed.

And the result is a Britain of despair and poverty where working families, never mind the unemployed and disabled, are dying of starvation or forced to use food banks.

 

Boris Johnson Is Not the New, British FD Roosevelt

It’s the first of July, the beginning of a new month, and a new set of lies, falsehoods, spin and propaganda from our clownish and murderous government. Yesterday, BoJob announced he was going to spend his way out of the recession caused by the Coronavirus lockdown. £5 billion would be spent on public services. Michael Gove hailed this as a ‘New Deal’, like F.D. Roosevelt’s for ’30s America.

No. No, it isn’t. Mike and Zelo Street have both published articles tearing great, bloody holes in this latest piece of monstrous spin. Zelo Street’s concentrates on the failings of Roosevelt’s original New Deal. Apparently it didn’t really begin to pay off until Roosevelt’s second term, because the great president was himself too committed to the economic orthodoxy of the time. This was to reduce government spending during a recession. Mike’s article, from what I’ve seen of it, dismantles Johnson’s promises. How much can we really trust them? Remember those forty hospitals Johnson told us the Tories were going to build. They weren’t, and aren’t. It was more lies and the number that were actually going to built was much, much lower. I think about six. The rest were going to be additions to existing hospitals, that had already been planned. And the numbers that were going to be built were far lower than those which were to be closed, either wholly or partially.

Everything says that this latest announcement of Johnson’s is exactly the same. More lies, and more promises that are going to be quietly broken later on.

And then there’s the matter of the amount Boris has said he intends to spend. £5 billion is an enormous amount, but Johnson has proudly boasted of spending such sums before. Like when he announced he was going to splurge out on renovating the country’s rail network. Zelo Street then put up an analysis of the figures and how much actually building new stations would actually cost, and the amount fell far, far short of what Johnson was actually claiming. I suspect that the £5 billion Johnson is now trying to get us all to believe he intends to spend is similar. It’s an impressive amount, but in reality much, much less than what’s actually needed.

And you can also bet it’s going to be lower than what our former partners in the EU are spending to get their economies started again. Recently, Private Eye published a piece attacking the Tories’ previous claim that leaving the EU would allow us to spend more on our economy. They compared what our government was spending with what France, Germany and some others were. They’re actually spending more than we are, which also demolishes the Tories’ claim that it was EU legislation that was preventing the government from spending more on the economy. No surprise there. The Tories have consistently lied about the European Union being the source of the country’s ills when the reverse has been true, and they themselves are responsible for the disastrous policies that have decimated our country and its people.

And when a right-wing British politico starts shouting about a ‘New Deal’, it’s always bad news.

Tony Blair similarly announced his new deal to tackle unemployment at the beginning of his government. He was going to introduce new reforms to encourage firms to take on workers. In fact, this was the wretched ‘welfare to work’ or ‘workfare’ policy, in which the unemployed would be sent to work for corporate giants like the supermarkets in return for the Jobseeker’s Allowance. If they didn’t go, no unemployment relief. As was documented by Private Eye, inter alia, the scheme does not help anyone get jobs. In fact, in the case of a geography graduate it actually stopped her getting the job she wanted. She was looking for work in a museum and had something in that line arranged as voluntary work. But the DWP insisted she work stacking shelves for Tesco or Sainsbury’s or whoever instead. It’s actually been found that if you’re unemployed, you are far more likely to get a job through your own efforts rather than through workfare.

And there’s another huge difference between the Tories and F.D. Roosevelt:

Roosevelt laid the foundations of an American welfare state. The Tories are destroying ours.

Roosevelt introduced some basic welfare reforms, like state unemployment relief. It wasn’t extensive, but it was something. The Republicans in America and the Tories over here hate the welfare state with a passion. It’s supposed to be subsidizing idleness and responsible for cross-generational pockets in which whole communities haven’t worked. The libertarianism which entered the American Republican party with the victory of Ronald Reagan was at heart concerned with reversing Roosevelt’s welfare reforms. Although it’s very carefully obscured now, it’s why the Libertarian’s magazine, Reason, in the mid-70s devoted an entire issue to denying the Holocaust. This featured articles by genuine neo-Nazis. This was vile in itself, but it was motivated by an underlying desire to undo Roosevelt’s legacy. FDR had been the president, who took America into the Second World War. This is seen as a good war, because of Nazis’ horrific genocide of the Jewish people, as well as others, though they rarely get a mention these days. If the Libertarians and their Nazi allies could prove that the Holocaust didn’t happen, it would discredit America’s entry into the War and make further attacks on Roosevelt and the New Deal plausible.

One of the reasons why he introduced unemployment benefit, such as it was, was because if you give money to workers during a recession, their spending will stimulate the economy.

But the Tories hate the idea of unemployment benefit and the workers actually having any money. They are the party of low wages, conditionality and benefit sanctions. Thatcher viewed the Victorians’ attitude that conditions should be made as hard as possible for the poor to encourage them not to rely on state assistance and agree to take work no matter how poor the wages and conditions as a ‘virtue’. It was one of her wretched ‘Victorian values’. During her reign, you couldn’t get away from her and the rest of her scummy party prating on about rolling back the frontiers of the state and the need to abolish the welfare state. The rhetoric has since quietened down and been modified, so that instead of abolishing the welfare state they talk about reforming it to target those who are genuinely in need. But the ideology hasn’t changed.

As a result, the British welfare state is in tatters. One organisation dealing with poverty and hunger in this country has stated that they’ve torn such great holes in it that it no longer functions. You can see this by the way unemployment has shot up so that one in four people is now claiming Universal Credit.

This isn’t just due to the Coronavirus. It’s due to the forty-year long Tory assault on the welfare state.

Johnson isn’t the new FDR. He’s the exact opposite – the destroyer of unemployment benefit and killer of those who need it.

See: https://zelo-street.blogspot.com/2020/06/bozo-is-not-franklin-roosevelt.html

New deal? No deal! We can’t accept a plan for the future from the failed PM who deliberately wrecked it