Tag Archive: west

Where the World’s Unsold Cars Go To Die

Above is just a few of the thousands upon thousands of unsold cars at Sheerness, United Kingdom. Please do see this on Google Maps….type in Sheerness, United Kingdom. Look to the west coast, below River Thames next to River Medway. Left of A249, Brielle Way. Timestamp: Friday, May 16th, 2014. There are hundreds of places like this in the world today and they keep on piling up…

Houston…We have a problem!…Nobody is buying brand new cars anymore! Well they are, but not on the scale they once were. Millions of brand new unsold cars are just sitting redundant on runways and car parks around the world. There, they stay, slowly deteriorating without being maintained.

Below is an image of a massive car park at Swindon, United Kingdom, with thousands upon thousands of unsold cars just sitting there with not a buyer in sight. The car manufacturers have to buy more and more land just to park their cars as they perpetually roll off the production line.

There is proof that the worlds recession is still biting and wont let go. All around the world there are huge stockpiles of unsold cars and they are being added to every day. They have run out of space to park all of these brand new unsold cars and are having to buy acres and acres of land to store them.

The images on this webpage showing all of these unsold cars are just a very small portion of those around the world. There are literally thousands of these “car parks” rammed full of unsold cars in practically every country on the planet. Just in case you were wondering, these images have not been Photoshopped, they are the real deal! Its hard to believe that there are so many unsold cars in the world but its true. The worse part is that the amount of unsold cars keeps on getting bigger every day.

It would be fair to say that it is becoming a mechanical epidemic of epic proportions. If anybody from outer space is reading this webpage, we here on Earth have too many cars, why not come and buy a few hundred thousand of them for your own planet! (sorry but this is all I can think of) Below is shown just a few of the 57,000 cars (and growing) that await delivery from their home in the Port of Baltimore, Maryland, U.S.A. With Google Maps look South of Broening Hwy in Dundalk for the massive expanse of space where all these cars are parked up.

The car industry would never sell these cars at massive reductions in their prices to get rid of them, no they still want every buck. If they were to price these cars for a couple of thousand they would sell them. However, nobody would then buy any expensive cars and then they would end up being unsold. Its quite a pickle we have gotten ourselves into.

Below is shown an image of the Nissan test track in Sunderland United Kingdom. Only it is no longer being used, reason…there are too many unsold cars parked up on it! The amount of cars keeps on piling up on it until its overflowing. Nissan then acquires more land to park up the cars, as they continue to come off the production line.

UPDATE: Currently May 16th, 2014, all of these cars at the Nissan Sunderland test track have disappeared? Now I don’t believe they have all suddenly been sold. I would guess they may have been taken away and recycled to make room for the next vast production run.

Indeed next to that test track and adjacent to the Nissan factory, they are collating again as shown on the Google Maps image below. So where did the last lot go? This is not an employees car park by the way.

None of the images on this webpage are of ordinary car parks at shopping malls, football matches etc. Trust me, they are just mountains and mountains of brand spanking new unsold cars. There is no real reason why you should be driving an old clunker now is there?

The car industry cannot stop making new cars because they would have to close their factories and lay off tens of thousands of employees. This would further add to the recession. Also the domino effect would be catastrophic as steel manufactures would not sell their steel. All the tens of thousands of places where car components are made would also be effected, indeed the world could come to a grinding halt.

Below is shown just a small area of a gigantic car park in Spain where tens of thousands of cars just sit and sunbathe all day.

They are also piling up at the port of Valencia in Spain as seen below. They are either waiting to be exported to…nowhere or have been imported…to go nowhere.

Tens of thousands of cars are still being made every week but hardly any of them are being sold. Nearly every household in developed countries already has a car or even two or three cars parked up on their driveway as it is.

Below is an image of thousands upon thousands of unsold cars parked up on a runway near St Petersburg in Russia. They are all imported from Europe, they are all then parked up and they are all then left to rot. Consequently, the airport is now unusable for its original purpose.

The cycle of buying, using, buying using has been broken, it is now just a case of “using” with no buying. Below is an image of thousands of unsold cars parked up on an disused runway at Upper Heyford, Bicester, Oxfordshire. They are seriously running out of space to store these cars.

It is a sorry state of affairs and there is no answer to it, solutions don’t exist. So the cars just keep on being manufactured and keep on adding to the millions of unsold cars already sitting redundant around the world.

Below are parked tens of thousands of cars at Royal Portbury Docks, Avonmouth, near Bristol in the United Kingdom. If you look on Google Maps and scan around the area at say 200ft you will see nothing but parked up unsold cars. They are absolutley everywhere in that area practically every open space has unsold cars parked up on it.

Below is that same area in Avonmouth, UK, but zoomed out. Every gray space that you see is filled with unsold cars. Anyone want to hazard a guess at how many are there…

As it is, there are more cars than there are people on the planet with an estimated 10 billion roadworthy cars in the world today.

We literally cannot make enough of them. Below are seen just a few of the thousands of Citroen’s parked up at Corby, Northamptonshire in England. They are being added to daily, imported from France but with nowhere else to go once they arrive.

So there they sit, brand spanking new cars, all with a couple of miles on the clock that was consummate with them being driven to their car parks. Below is the latest May 2014 Google Maps image of unsold cars in Corby, Northamptonshire.

Manufacturing more cars than can be sold is against all logic, logistics and economics but it continues day after day, week after week, month after month, year in year out.

Below is shown a recent (April 2014) screen grab from Google Maps of the Italian port of Civitavecchia. All those little specks are a few thousand brand new unsold Peugeots. Just collecting dust and maybe a bit of salty sea spray!

Below, all nice and shiny but with nowhere to go. Red and white and black and silver, purple, pink and blue, all the colors of the rainbow and be they all brand new. Indeed all the colors of the rainbow are down there on those cars, making pretty mosaics, montages of color and still life. Maybe that is all they will now ever be, surreal urban art of the techno production age. Magnificent metal boxes, wasting space and saving grace, all sitting still, because its business at mill.
All around the world these cars just keep on piling up, there is no end in sight. The economy shouts out quite loud that nobody has the money anymore to spend on a new car. The reason being that they are making their “old” cars go on a lot longer. But we cannot stop making them, soon we will run out of space to park them. We are nearly running out of space to drive them that’s for sure!

Below, more cars mount up in the port of Valencia in Spain. They will not be exported as there is nowhere for them to go, so they just sit and rot in their colorful droves.

Gone are the days when the family would have a new car every year, they are now keeping what they have got. It may be fair to say that some families still get a new car every year but its the majority that now do not.

The results are in these images, hundreds of thousands if not millions of cars around the world are driven from their factories, parked up and left.

Could we say that these cars have been left to rot! Maybe, as these cars will certainly rot if they are not bought, driven and cared for. It does not look like they will be sold any day soon, many of them have been standing for over 12 months or even longer and this is detrimental to the car.

Below, as far as the eye can see, right into the background, cars, cars and more cars. But what’s beyond the horizon? Have a guess…Yes that’s right…even more cars! All brand new but with no homes to go to. Do you think they will ever start giving them away, that may be the only radical solution. Who knows, you could soon be getting a free car with every packet of cornflakes.

When a car is left standing idle, all the oil sinks to the bottom of the sump, and then corrosion begins to set in on all the internal engine parts where the oil has drained away.

Cold corrosion is when condensation builds up in the cylinders and rust forms in the bores. The engines would then start to seize and would need to be professionally freed before they could be started. Also the tires start to lose air and the batteries start to go flat, indeed the detrimental list goes on and on.

So the longer they sit there the worse it slowly becomes for them. What is the answer to this? Well they need to be sold and that just isn’t happening.

The epidemic is not improving, it is getting worse. Car manufactureres are constantly coming out with new models with the latest technology in them. Hence prospective buyers of, for example, a new Citroen Xsara Picasso want the latest model, not last years model. Hence all the unsold Citroen Xsara Picasso cars from the previous year will now have even lesser chance of being sold.

The problems then just keep on mounting up. In the end, the unsold cars that are say 2 years old will have no alternative but to be either crushed up, dismantled and/or their parts recycled.

Some car manufacturers moved their production over to China, General Motors and Cadillac are examples of this. They are then shipped over in containers and unloaded at ports. However they are now being told to put a big halt in their import into the U.S.A. as they just can’t sell them in the quantities they would desire. Consequently Chinese car parks are now filling up with brand new American cars. Well nobody in China can afford them on their meagre pittance wages, so there they will stay until our economy improves..And lets not hold our breath for that!Enemy Is Profit

voice of anti-capitalismThe truth is out: money is just an IOU, and the banks are rolling in it

David Graeber, theguardian.com
Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn’t know how banking really works, because if they did, “there’d be a revolution before tomorrow morning”.

Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called “Money Creation in the Modern Economy“, co-authored by three economists from the Bank’s Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window.– moneyTo get a sense of how radical the Bank’s new position is, consider the conventional view, which continues to be the basis of all respectable debate on public policy. People put their money in banks. Banks then lend that money out at interest – either to consumers, or to entrepreneurs willing to invest it in some profitable enterprise. True, the fractional reserve system does allow banks to lend out considerably more than they hold in reserve, and true, if savings don’t suffice, private banks can seek to borrow more from the central bank.

The central bank can print as much money as it wishes. But it is also careful not to print too much. In fact, we are often told this is why independent central banks exist in the first place. If governments could print money themselves, they would surely put out too much of it, and the resulting inflation would throw the economy into chaos. Institutions such as the Bank of England or US Federal Reserve were created to carefully regulate the money supply to prevent inflation. This is why they are forbidden to directly fund the government, say, by buying treasury bonds, but instead fund private economic activity that the government merely taxes.

It’s this understanding that allows us to continue to talk about money as if it were a limited resource like bauxite or petroleum, to say “there’s just not enough money” to fund social programmes, to speak of the immorality of government debt or of public spending “crowding out” the private sector. What the Bank of England admitted this week is that none of this is really true. To quote from its own initial summary: “Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits” … “In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.”

In other words, everything we know is not just wrong – it’s backwards. When banks make loans, they create money. This is because money is really just an IOU. The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind, ones that the government will recognise as legal tender by its willingness to accept them in payment of taxes. There’s really no limit on how much banks could create, provided they can find someone willing to borrow it. They will never get caught short, for the simple reason that borrowers do not, generally speaking, take the cash and put it under their mattresses; ultimately, any money a bank loans out will just end up back in some bank again. So for the banking system as a whole, every loan just becomes another deposit. What’s more, insofar as banks do need to acquire funds from the central bank, they can borrow as much as they like; all the latter really does is set the rate of interest, the cost of money, not its quantity. Since the beginning of the recession, the US and British central banks have reduced that cost to almost nothing. In fact, with “quantitative easing” they’ve been effectively pumping as much money as they can into the banks, without producing any inflationary effects.

What this means is that the real limit on the amount of money in circulation is not how much the central bank is willing to lend, but how much government, firms, and ordinary citizens, are willing to borrow. Government spending is the main driver in all this (and the paper does admit, if you read it carefully, that the central bank does fund the government after all). So there’s no question of public spending “crowding out” private investment. It’s exactly the opposite.

Why did the Bank of England suddenly admit all this? Well, one reason is because it’s obviously true. The Bank’s job is to actually run the system, and of late, the system has not been running especially well. It’s possible that it decided that maintaining the fantasy-land version of economics that has proved so convenient to the rich is simply a luxury it can no longer afford.

But politically, this is taking an enormous risk. Just consider what might happen if mortgage holders realised the money the bank lent them is not, really, the life savings of some thrifty pensioner, but something the bank just whisked into existence through its possession of a magic wand which we, the public, handed over to it.

Historically, the Bank of England has tended to be a bellwether, staking out seeming radical positions that ultimately become new orthodoxies. If that’s what’s happening here, we might soon be in a position to learn if Henry Ford was right.Enemy Is Profit

Grass Roots Rank and File Launch Conference.

Saturday 12 April 2014. 12pm
Comfort Inn, Opposite New St Station,

Station Street,

Birmingham. B5 4DY.

Following the successful meeting of the Grass Roots Left National Committee in Birmingham on 18 January the launch conference of the new Grass Roots Rank and File now looks to be on a far healthier basis than was feared when Socialist Fight supporters had been reduced to a minority of two in defence of the Constitution and Platform of the GRL as the basis for the new organisation at the AGM of 9 November. Between the two meetings the SWP had split at its December conference and the new organisation, now called the Revolutionary Socialists of the 21st Century, took the majority of the Unite the union faction who had supported Jerry Hicks for general secretary twice. Both the SWP and the SR21C attended the GRL NC and as they were now rivals they sought to accentuate their leftism. It seems now that the new joint Rank and File organisation will be open and democratic and be based on a platform and constitution at least similar to the old GRL one. Both Workers Power and Socialist Resistance had to reverse themselves and now say that standing on Jerry Hicks election points really was minimalist and not enough and they abandoned their charges of ultra leftism against SF. The SWP, of course, continues its opportunist tailending of all the other the TU bureaucracies as Laurence Humphries’s report on the Unite the Resistance conference on page 30 makes clear. In the meantime we hear that fusion discussions between Unite and the Public and Commercial Services Union (PCS), whose Executive is dominated by the SP/CWI, are going to succeed because the government will withdraw check-off facilities from the PCS and so probably bankrupt it. The SP has already approached the United Left, the Unite bureaucracy’s mouthpiece, to ensure that they become ensconced as that bureaucracy’s footstools as well as for the RMT’s Bob Crow.grass-roots-RandF

How science is telling us all to revolt

Is our relentless quest for economic growth killing the planet? Climate scientists have seen the data – and they are coming to some incendiary conclusions.

Naomi Klein speaks to The VOAG (Well kind of)Irrigation

In December 2012, a pink-haired complex systems researcher named Brad Werner made his way through the throng of 24,000 earth and space scientists at the Fall Meeting of the American Geophysical Union, held annually in San Francisco. This year’s conference had some big-name participants, from Ed Stone of Nasa’s Voyager project, explaining a new milestone on the path to interstellar space, to the film-maker James Cameron, discussing his adventures in deep-sea submersibles.

But it was Werner’s own session that was attracting much of the buzz. It was titled “Is Earth F**ked?” (full title: “Is Earth F**ked? Dynamical Futility of Global Environmental Management and Possibilities for Sustainability via Direct Action Activism”).

Standing at the front of the conference room, the geophysicist from the University of California, San Diego walked the crowd through the advanced computer model he was using to answer that question. He talked about system boundaries, perturbations, dissipation, attractors, bifurcations and a whole bunch of other stuff largely incomprehensible to those of us uninitiated in complex systems theory. But the bottom line was clear enough: global capitalism has made the depletion of resources so rapid, convenient and barrier-free that “earth-human systems” are becoming dangerously unstable in response. When pressed by a journalist for a clear answer on the “are we f**ked” question, Werner set the jargon aside and replied, “More or less.”

There was one dynamic in the model, however, that offered some hope. Werner termed it “resistance” – movements of “people or groups of people” who “adopt a certain set of dynamics that does not fit within the capitalist culture”. According to the abstract for his presentation, this includes “environmental direct action, resistance taken from outside the dominant culture, as in protests, blockades and sabotage by indigenous peoples, workers, anarchists and other activist groups”.

Serious scientific gatherings don’t usually feature calls for mass political resistance, much less direct action and sabotage. But then again, Werner wasn’t exactly calling for those things. He was merely observing that mass uprisings of people – along the lines of the abolition movement, the civil rights movement or Occupy Wall Street – represent the likeliest source of “friction” to slow down an economic machine that is careening out of control. We know that past social movements have “had tremendous influence on . . . how the dominant culture evolved”, he pointed out. So it stands to reason that, “if we’re thinking about the future of the earth, and the future of our coupling to the environment, we have to include resistance as part of that dynamics”. And that, Werner argued, is not a matter of opinion, but “really a geophysics problem”.

Plenty of scientists have been moved by their research findings to take action in the streets. Physicists, astronomers, medical doctors and biologists have been at the forefront of movements against nuclear weapons, nuclear power, war, chemical contamination and creationism. And in November 2012, Nature published a commentary by the financier and environmental philanthropist Jeremy Grantham urging scientists to join this tradition and “be arrested if necessary”, because climate change “is not only the crisis of your lives – it is also the crisis of our species’ existence”.

Some scientists need no convincing. The godfather of modern climate science, James Hansen, is a formidable activist, having been arrested some half-dozen times for resisting mountain-top removal coal mining and tar sands pipelines (he even left his job at Nasa this year in part to have more time for campaigning). Two years ago, when I was arrested outside the White House at a mass action against the Keystone XL tar sands pipeline, one of the 166 people in cuffs that day was a glaciologist named Jason Box, a world-renowned expert on Greenland’s melting ice sheet.

“I couldn’t maintain my self-respect if I didn’t go,” Box said at the time, adding that “just voting doesn’t seem to be enough in this case. I need to be a citizen also.”

This is laudable, but what Werner is doing with his modelling is different. He isn’t saying that his research drove him to take action to stop a particular policy; he is saying that his research shows that our entire economic paradigm is a threat to ecological stability. And indeed that challenging this economic paradigm – through mass-movement counter-pressure – is humanity’s best shot at avoiding catastrophe.

That’s heavy stuff. But he’s not alone. Werner is part of a small but increasingly influential group of scientists whose research into the destabilisation of natural systems – particularly the climate system – is leading them to similarly transformative, even revolutionary, conclusions. And for any closet revolutionary who has ever dreamed of overthrowing the present economic order in favour of one a little less likely to cause Italian pensioners to hang themselves in their homes, this work should be of particular interest. Because it makes the ditching of that cruel system in favour of something new (and perhaps, with lots of work, better) no longer a matter of mere ideological preference but rather one of species-wide existential necessity.

Leading the pack of these new scientific revolutionaries is one of Britain’s top climate experts, Kevin Anderson, the deputy director of the Tyndall Centre for Climate Change Research, which has quickly established itself as one of the UK’s premier climate research institutions. Addressing everyone from the Department for International Development to Manchester City Council, Anderson has spent more than a decade patiently translating the implications of the latest climate science to politicians, economists and campaigners. In clear and understandable language, he lays out a rigorous road map for emissions reduction, one that provides a decent shot at keeping global temperature rise below 2° Celsius, a target that most governments have determined would stave off catastrophe.

But in recent years Anderson’s papers and slide shows have become more alarming. Under titles such as “Climate Change: Going Beyond Dangerous . . . Brutal Numbers and Tenuous Hope”, he points out that the chances of staying within anything like safe temperature levels are diminishing fast.

With his colleague Alice Bows, a climate mitigation expert at the Tyndall Centre, Anderson points out that we have lost so much time to political stalling and weak climate policies – all while global consumption (and emissions) ballooned – that we are now facing cuts so drastic that they challenge the fundamental logic of prioritising GDP growth above all else.

Anderson and Bows inform us that the often-cited long-term mitigation target – an 80 per cent emissions cut below 1990 levels by 2050 – has been selected purely for reasons of political expediency and has “no scientific basis”. That’s because climate impacts come not just from what we emit today and tomorrow, but from the cumulative emissions that build up in the atmosphere over time. And they warn that by focusing on targets three and a half decades into the future – rather than on what we can do to cut carbon sharply and immediately – there is a serious risk that we will allow our emissions to continue to soar for years to come, thereby blowing through far too much of our 2° “carbon budget” and putting ourselves in an impossible position later in the century.

Which is why Anderson and Bows argue that, if the governments of developed countries are serious about hitting the agreed upon international target of keeping warming below 2° Celsius, and if reductions are to respect any kind of equity principle (basically that the countries that have been spewing carbon for the better part of two centuries need to cut before the countries where more than a billion people still don’t have electricity), then the reductions need to be a lot deeper, and they need to come a lot sooner.

To have even a 50/50 chance of hitting the 2° target (which, they and many others warn, already involves facing an array of hugely damaging climate impacts), the industrialised countries need to start cutting their greenhouse-gas emissions by something like 10 per cent a year – and they need to start right now. But Anderson and Bows go further, pointing out that this target cannot be met with the array of modest carbon pricing or green-tech solutions usually advocated by big green groups. These measures will certainly help, to be sure, but they are simply not enough: a 10 per cent drop in emissions, year after year, is virtually unprecedented since we started powering our economies with coal. In fact, cuts above 1 per cent per year “have historically been associated only with economic recession or upheaval”, as the economist Nicholas Stern put it in his 2006 report for the British government.

Even after the Soviet Union collapsed, reductions of this duration and depth did not happen (the former Soviet countries experienced average annual reductions of roughly 5 per cent over a period of ten years). They did not happen after Wall Street crashed in 2008 (wealthy countries experienced about a 7 per cent drop between 2008 and 2009, but their CO2 emissions rebounded with gusto in 2010 and emissions in China and India had continued to rise). Only in the immediate aftermath of the great market crash of 1929 did the United States, for instance, see emissions drop for several consecutive years by more than 10 per cent annually, according to historical data from the Carbon Dioxide Information Analysis Centre. But that was the worst economic crisis of modern times.

If we are to avoid that kind of carnage while meeting our science-based emissions targets, carbon reduction must be managed carefully through what Anderson and Bows describe as “radical and immediate de-growth strategies in the US, EU and other wealthy nations”. Which is fine, except that we happen to have an economic system that fetishises GDP growth above all else, regardless of the human or ecological consequences, and in which the neoliberal political class has utterly abdicated its responsibility to manage anything (since the market is the invisible genius to which everything must be entrusted).

So what Anderson and Bows are really saying is that there is still time to avoid catastrophic warming, but not within the rules of capitalism as they are currently constructed. Which may be the best argument we have ever had for changing those rules.

In a 2012 essay that appeared in the influential scientific journal Nature Climate Change, Anderson and Bows laid down something of a gauntlet, accusing many of their fellow scientists of failing to come clean about the kind of changes that climate change demands of humanity. On this it is worth quoting the pair at length:

 . . . in developing emission scenarios scientists repeatedly and severely underplay the implications of their analyses. When it comes to avoiding a 2°C rise, “impossible” is translated into “difficult but doable”, whereas “urgent and radical” emerge as “challenging” – all to appease the god of economics (or, more precisely, finance). For example, to avoid exceeding the maximum rate of emission reduction dictated by economists, “impossibly” early peaks in emissions are assumed, together with naive notions about “big” engineering and the deployment rates of low-carbon infrastructure. More disturbingly, as emissions budgets dwindle, so geoengineering is increasingly proposed to ensure that the diktat of economists remains unquestioned.

In other words, in order to appear reasonable within neoliberal economic circles, scientists have been dramatically soft-peddling the implications of their research. By August 2013, Anderson was willing to be even more blunt, writing that the boat had sailed on gradual change. “Perhaps at the time of the 1992 Earth Summit, or even at the turn of the millennium, 2°C levels of mitigation could have been achieved through significant evolutionary changes within the political and economic hegemony. But climate change is a cumulative issue! Now, in 2013, we in high emitting industrial nations face a very different prospect. Our ongoing and collective carbon profligacy has squandered any opportunity for the ‘evolutionary change’ afforded by our earlier (and larger) 2°C carbon budget. Today, after two decades of bluff and lies, the remaining 2°C budget demands revolutionary change to the political and economic hegemony” (his emphasis).

We probably shouldn’t be surprised that some climate scientists are a little spooked by the radical implications of even their own research. Most of them were just quietly doing their work measuring ice cores, running global climate models and studying ocean acidification, only to discover, as the Australian climate expert and author Clive Hamilton puts it, that they “were unwittingly destabilising the political and social order”.

But there are many people who are well aware of the revolutionary nature of climate science. It’s why some of the governments that decided to chuck their climate commitments in favour of digging up more carbon have had to find ever more thuggish ways to silence and intimidate their nations’ scientists. In Britain, this strategy is becoming more overt, with Ian Boyd, the chief scientific adviser at the Department for Environment, Food and Rural Affairs, writing recently that scientists should avoid “suggesting that policies are either right or wrong” and should express their views “by working with embedded advisers (such as myself), and by being the voice of reason, rather than dissent, in the public arena”.

If you want to know where this leads, check out what’s happening in Canada, where I live. The Conservative government of Stephen Harper has done such an effective job of gagging scientists and shutting down critical research projects that, in July 2012, a couple thousand scientists and supporters held a mock-funeral on Parliament Hill in Ottawa, mourning “the death of evidence”. Their placards said, “No Science, No Evidence, No Truth”.

But the truth is getting out anyway. The fact that the business-as-usual pursuit of profits and growth is destabilising life on earth is no longer something we need to read about in scientific journals. The early signs are unfolding before our eyes. And increasing numbers of us are responding accordingly: blockading fracking activity in Balcombe; interfering with Arctic drilling preparations in Russian waters (at tremendous personal cost); taking tar sands operators to court for violating indigenous sovereignty; and countless other acts of resistance large and small. In Brad Werner’s computer model, this is the “friction” needed to slow down the forces of destabilisation; the great climate campaigner Bill McKibben calls it the “antibodies” rising up to fight the planet’s “spiking fever”.The VOAG is everywhere

SF Logo2The Marxist theory of the state:
Deformed and Degenerated Workers’ States and Capitalist States

From Socialist Fight (British Section, Liaison Committee for the Fourth International) 
The post WWII debate in the Fourth International of the late 1940s and early 1950s on the class character of the ‘Buffer States’ in Eastern Europe was resurrected in 1989-92 with the fall of the Berlin Wall and the collapse of the USSR following the Yanayev coup and Yeltsin’s counter-coup of August 1991. We will see from the struggles we have outlined below that the Stalinist bureaucracies became divided into three camps following the defeat of the Brezhnevites by Gorbachev in 1989; those Gorbechevites on the left who wished to retain the degenerate and deformed workers’ states by opening up the economic plan by glasnost (openness) and perestroika (restructuring), those in the middle (Yanayev and Deng in China) who sought the restoration of capitalism by slow, planned measures, maintaining the Stalinist bureaucracy as the vehicle of restoration and those on the right like Yeltsin who sought a rapid capitulation to western Imperialism and their own enrichment by plundering the state assets in alliance with western transnational corporations. We can observe at least elements of these three tendencies in most of the counter-revolutionary overturns of 1989-92.

The first debate on the nature of the East European countries behind the ‘iron curtain’ in the FI in the late 1940s eventually resulted in the correct conclusion that they were deformed workers’ states, but much confusion remained. We will look at the position again as it emerged in the debate over the class character of Cuba in the early 1960s and the debate about the class character of Cambodia in the late 1970s following the invasion by Vietnam on 25 December 1978. And of course, as we have mentioned, the debate following the victory of the counter-revolutionary restoration of capitalism in Eastern European and Asian states in the late 1980s and early 1990s. Continue reading

socialist-actionFive Precedents For Understanding Egypt’s July Coup


Socialist Action 2nd October 2013
The Egyptian army’s July coup was met with widespread confusion  on the left. Within Egypt and internationally some socialists actually supported  the coup, others were explicitly neutral in the struggle between the Muslim  Brotherhood government and the army.
The article by John Riddell that appears below considers these  issues from the point of view of the experience of the international communist  movement from 1917 to the 1930s, drawing out why these positions are dangerously  wrong.
John Riddell, a Canadian Marxist, is the foremost historian of  the Comintern and translator of its proceedings. His article is reproduced, without  permission, to inform the debate amoungst activists in Guildford,

Five precedents for understanding Egypt’s July coup

By John Riddell, September 15, 2013
Two months after Egypt’s generals ousted its elected Muslim Brotherhood  government, there is still a wide spectrum of views among socialists regarding  the meaning of this event. (See my “Egypt:  Socialists Need to Rethink”) This discussion can be deepened by considering  a few precedents from socialist history – some well known, others obscure.
1. 1917: The Kornilov coup
My first and best-known example of workers’ response to an attempted rightist  coup took place a year and a half before the Comintern was founded. In August  1917, workers and soldiers in Russia united to block an attempted coup by  General Lavr Kornilov against the Provisional Government of Alexander Kerensky.  At the time, Kerensky’s regime, a coalition of reformist and bourgeois forces,  was blocking progress on key revolutionary goals like peace and land reform  while repressing the Bolsheviks and other revolutionary forces.
The Bolsheviks recognized that the working class, not Kerensky, was the real  target of the reactionary military forces. Together with most other Left  currents and in alliance with Kerensky, the Bolsheviks rallied workers to oppose  the coup. Workers won a quick victory, while the Bolsheviks and their allies  gained respect and confidence from the masses. This outcome set the stage for  the Russian soviets to assume power two months later.
Surprisingly, discussions in the Comintern during its early years contain  almost no references to the Kornilov episode. In 1930–33, however, Leon Trotsky  repeatedly cited this experience as a precedent for the united front of  working-class forces needed in Germany to beat back the rising danger of  Fascism. His fullest treatment was in section  6 of What Next? Vital Questions for the German Proletariat (1932). A detailed analysis of resistance to Kornilov appeared in two chapters  of Trotsky’s History of the Russian Revolution, published in  English the same year.
2. 1920: The Kapp putsch
Two years later, workers in Germany faced a similar situation. A Social  Democratic-led government had waged a brutal war against revolutionary workers  and was building up the state’s forces of repression. On March 13, 1920,  however, far-right forces made a bid for power. They led army detachments in  seizing the capital, seeking to replace constitutional government with military  dictatorship. The coup became known by the name of one of its leaders, Wolfgang  Kapp. Trade unions reacted to the coup with a call to general strike. Amazingly,  the German Communist party (KPD) called on workers not to take part in the  struggle. The strike was immensely powerful, and the KPD rapidly rectified its  stance. Only four days into the strike, the coup regime was toppled. (The story  of the Kapp Putsch is well told in chapter 18 of Pierre Broué’s masterly  history, The German Revolution 1917–23, Merlin: 2006.)
Despite their initial error, the Communists played a leading role in several  aspects in the anti-Kapp movement. In one important industrial city, Chemnitz,  the KPD led workers’ councils, representing all workers’ parties, in forming a  municipal government during the period of most intense struggle. Communists took  part in armed workers’ detachments that, for a time, drove the army out of  significant areas of the country. At one point, the KPD gave guarded support to  a union call for a government of unions and workers’ parties.
During the Kapp struggle, workers in action provided clear answers to a  series of strategic issues that were much debated in the Comintern at that time:  united front, response to rightist coups, and governmental power. However, after  an initial flurry of debate, the Kapp experience was rarely mentioned in  Communist International discussions, and its lessons were not assimilated.
Drawing the parallel
There are striking similarities between the Kornilov and Kapp experiences and  the military takeover in Egypt. Still, I have seen only one attempt to draw the  parallel: by Vancouver-based socialist Roger Annis.
A few days after the Egyptian takeover, Annis  wrote of the Kornilov and Kapp coup attempts: “These were both cases of  military intervention by the old orders to try and forestall and ultimately  destroy developing revolutionary situations. The Russian and German military  officers played on political deadlocks in the respective political situations in  which neither the capitalist nor the working classes could deliver a decisive  blow that would decide who would rule. In both cases, the immediate targets of  intervention were discredited or increasingly unpopular governments led by  social democrats or political equivalents.” The Egyptian situation is different in important ways, Annis says, but  “perhaps there are useful analogies here.”
3. 1923: Abstention in Bulgaria
During the Comintern’s early years, its Bulgarian section, a formidable mass  party, was widely regarded as the Communist movement closest to the Bolsheviks  in history and outlook. Bulgaria was ruled from 1919 by a radical peasant party,  the Agrarian Union, led by Alexander Stamboliski. Threats of a rightist coup  against his regime did not, however, lead to an effective alliance between the  peasant forces and the Communist Party. By late 1922 the Agrarians and  Communists were locked in enmity.
Elections were held April 1923, and the Agrarians were re-elected with an  absolute majority of the vote. Two months later, the rightist bourgeois  opposition mounted a coup to oust the peasant government. Resistance was  crippled by abstention of the Communist Party, which declared its neutrality.  The Stamboliski government had “used its power to defend its class and clique  interests,” the party declared. “The working masses in town and village will not  participate in the armed struggle … between the urban and rural bourgeoisie,” it  stated. (Joseph Rothschild, The Communist Party of Bulgaria, p. 120) The  coup triumphed rapidly.
The Comintern Executive Committee sought to convince the Bulgarian party of  its disastrous error. The response in Bulgaria to this critique, however, was a  premature and poorly prepared attempt at an uprising by the Communist forces  alone, which was quickly suppressed. The Comintern response to this fiasco was  ambiguous. Comintern President Gregory Zinoviev endorsed the Bulgarian party’s  conduct, while the Comintern’s representative in Bulgaria condemned the party  for “having shown itself incapable of maneuver and of leading the mass  movement.” (Broué, Histoire de l’Internationale Communiste 1919–1943, pp.  333–35)

4. 1926: A ‘socialist’ general’s coup in Poland
In our fourth example, Communists in Poland actually fought alongside rebel  army detachments in a brief civil war against defenders of a constitutionally  established but discredited bourgeois government. The coup’s leader, Joseph  Pilsudski, reputedly represented the bourgeoisie’s more progressive wing.  Indeed, Pilsudski had long been a leader of right-wing Socialist forces in  Poland, before emerging as the leader of Polish armed forces on the  Austro-Hungarian army during World War 1 and then as the president of newly  independent Poland from 1918 to 1922.
In 1926, Poland was gripped in economic crisis. Its rightist government, just  installed, was displaying authoritarian ambitions. Pilsudski, formally retired,  in fact led and inspired the bourgeois opposition. The Communist Party declared  conditional support for Pilsudski’s movement, “if they fight to defend  democratic institutions.” On May 13, troops loyal to Pilsudski rose in revolt;  the Communist and Socialist parties declared a general strike in their support.  The strike, widely effective, was decisive in enabling the rebels to win out in  a four-day civil war. Although Communists fought on the rebel side, they were  being arrested by Pilsudski’s forces even before fighting ended. Pilsudski’s  regime, which lasted until his death in 1935, preserved some democratic forms  but was heavy-handed and repressive toward the working class.
Party members quickly regretted what they ruefully called their “May mistake”  but differed in explaining what the mistake was. By now, the Comintern was  deeply influenced by Stalinism, which obstructed a correction. In 1927, an  ultraleft current took the party’s helm, wrongly explaining the Pilsudski  movement to be “fascist.” (Broué, Histoire, pp. 472–75)
5. 1932. Germany’s ‘red referendum’
Six years later, the German Communist Party launched a campaign in support of  a Nazi initiative to unseat the Social Democratic-led government of Prussia, the  state containing two-thirds of the German population and its capital, Berlin. By  this time, the Comintern had embraced Stalin’s assertion that Social Democracy  represented another form of fascism, “social fascism,” which had to be opposed  as strongly as the Nazis. The Communist Party claimed it would transform the  Nazi initiative into a “red referendum” for workers’ rule.
The Nazi initiative was not in itself a coup, but it was an important step  along the road to fascist power. If the referendum had won, it would have forced  new elections, which the Nazis and their allies felt sure they would win. Even  with Communist support, however, the Nazi campaign fell short, winning 38% of  the vote.
The Communist Party declared the result to be a victory, “the greatest blow  of all that the working class has yet dealt Social Democracy.” Trotsky commented, “The most rabid foe could not have thought up a surer way  of inciting the Social Democratic workers against the Communist Party and of  holding up the development of the policy of the revolutionary united front.” (Tony  Cliff, Trotsky: 1929-40)
It was three years before the Comintern abandoned this sectarian approach –  only to flip over to a “people’s front” policy that aimed for alliances with  parties of the imperialist bourgeoisie.

What can be learned from these disparate examples? Some conclusions:
· None of these examples is fully comparable to the events in Egypt. There is  no textbook here.
· Even in the Comintern’s best years, its parties sometimes, under the  pressure of events, became entangled in complicity with right-wing military  coups.
· In every such case, Communists soon realized that involvement or tacit  support had been a serious error.
· The most damaging aspect of these episodes was not the error itself but the  failure to correct it clearly and openly.
This article is reproduced, without  permission, to inform the debate amoungst activists in Guildford,Voag-Logo-Darker

VOAG Logo (Brick)5Labour, The TUC and the Levy

The crisis of British capitalism is reflected in the war waging inside the Labour party between Ed Miliband and Len McCluskey General Secretary of Unite, the biggest trade union in Britain. According to Channel 4’s Fact-Check, “Unite the union is Labour’s biggest donor by far. It has provided 20 per cent, or £11.9m, of party donations since the election.”

Miliband, in a letter to Labour party members, is propagating the idea of “one nation”, so that Labour can prepare for coalition government with either the Tories or Liberal Democrats. Miliband states “A hundred years ago the Trade Unions helped to found the Labour Party”. From 1900 the working class through the trade unions founded, built and financed the Labour party to advance the cause of the working class by representing it in parliament.

Miliband further comments “The organised trade unions are no longer part of the Labour party, we are changing that relationship between the Labour party and the trade unions”. The actions of Kinnock who drove out the Militant Tendency and Blair who removed Clause 4 from the Labour party constitution were de-signed to kill off the last vestige of socialism in the Labour party. Miliband takes up the right-wing offensive anew and wants to turn the Labour party into an open capitalist party with no connection to the trade unions or the working class, although he wants to continue receiving big donations from unions like Unite.

McCluskey’s compromise is not designed to starve the Labour party of funds but accept abolition of the political levy. The levy is taken from each member’s contributions and goes directly to the Labour party. It is approximately £3 per year on an “in if you do not opt out” basis. As in the same debates about the Osborne Judgement from 1909 to 1913 most Tory and Liberal politicians want an “out if you do not opt in” position which would cost the party millions of lost subscriptions. The Great Unrest forced the 1913 compromise we still have today.

Ending the political levy would abolish the block vote at conferences and TU influence in local associations. It was the response that Jerry Hicks got crucially on Labour party funding in the General Secretary election in April from 80, 000 Unite members that aerated McCluskey to make his stance. The Labour party want money for nothing, vague Warwick Agreement pre-election promises never kept

The rank and file influence in the Labour party is via the TU bureaucracy, who are at one with Labour lead-ers in pandering to Imperialist chauvinism: British jobs for British workers, anti-immigrant bigotry and support for wars in Iraq, Afghanistan, Libya and Syria. We must defeat this reactionary clique by establishing rank and file control. The Labour party membership must be won to this mass struggle. This is how to win the British working class to the revolutionary party.Join Guildford Against Fees And Cuts Facebook page for details of local events against the cuts.

Hands Off Our NHS

The NHS – Rationing And The Two-Tier Health Service

NHS hospitals performing record numbers of private operations in ‘two-tier’ health service. Hard-up hospitals can now earn up to 50% of income from private work. Shock figures show their income from private patients rose 12% last year – with a further 10% rise forecast for the next 12 months. The Tories are creating a two-tier NHS – with those who pay gobbling up scarce resources.

A Freedom of Information request by Labour MP Gareth Thomas revealed English NHS hospitals earned £434million from private patients in 2012/13, up £47million in a year. And hospitals are forecasting they will earn even more this year (2013/14), raking in some £480million from private work.

Ealing Hospital in London, where the A&E department is under threat, increased the amount it got from their private patients by 250% in the last two years; while Great Ormond Street hospital saw a 58% rise, and Nottingham University Hospitals NHS Trust has budgeted for a 30% increase next year.

The MP who unearthed the figures, said: “Our hospitals are seeing a huge rise in the amount of money they receive from private patients. With yet more increases to come this year, it’s clear that under David Cameron a two-tier health service is emerging; pay privately and you’ll be seen quickly – don’t pay privately and join an increasingly long waiting list.”

He said there was growing evidence that patients are being forced to go private because they are being turned away from the NHS or spending so long on waiting lists. “Last year more than 52,000 patients in England were denied routine operations because of the financial pressures on the NHS. This included people waiting for common procedures such as cataract operations and varicose veins treatment”.

Meanwhile, one in five GPs who sits on a Clinical Commissioning Group (CCG) board has a financial stake in a provider which currently provides services to their own CCG, a Pulse investigation has found, potentially having a conflict of interest because they hold a financial stake in a private healthcare provider.

Figures released by NHS England for July revealed more than half a million patients are on hospital waiting lists in London alone. Dr Clive Peedell, co-leader of the National Health Action Party said: “lifting the cap on private treatments would see a further rise in waiting NHS lists”. “It is a reflection of the huge financial strain on hospitals. The only way to survive and stop from going bankrupt is to increase the number of private patients. We are heading to a two-tier system with consultants having to decide who takes priority: do they see private or NHS patients first”. “The knock on effect will be increased waiting lists as the NHS only has a limited capacity, and if they treat private patients that pushes other patients out of the system. David Cameron is privatising our NHS”.

According to the NHS Support Federation: 70% of GP’s are unable to refer patients to the NHS for treatment at least once a month, while 66% of GP’s reported an increase of patients enquiring about private health care because their treatment was no longer available on the NHS. Meanwhile, increased health care rationing is being felt accross the country. 56% of CCGs have further reduced access to care this year according to the Telegraph.

The NHS Support Federation reports that: 39% of people with diabetes have been left unable to monitor their blood glucose levels because the test strips required are being rationed to save money. Self-monitoring of blood glucose levels is essential for many people with the condition. Failure to do so can lead to serious complications such as hypoglycaemia and ketoacidosis.

The Evening Standard reported last month that the number of operations cancelled at the last minute by London hospitals is at a new high, with more patients having to wait at least four weeks for their rescheduled surgery. Other treatments being increasingly rationed include cataract surgery and hip and knee replacements. GP’s are to be given thresholds to ration 28 common surgical procedures including knee replacements, cataract surgery and bariatric surgery under new guidance currently being developed by the Department of Health.

A recent report from the National Audit Office stated: Hospitals in certain areas have stopped offering elective treatments for smokers or people above a certain level of obesity, while in others cataract patients are being forced to wait until their eyesight deteriorates further before being allowed surgery. Rationing elective operations “essentially defers, rather than avoids, spending,” the report said.

A survey of NHS professionals has found that ‘efficiency savings’ are not working, staff morale is low and services are being cut. Almost half of those surveyed believe patient safety is being affected by the need to save £20 billion by 2015, while nine out of 10 say staff morale is being badly hit.The VOAG

Picket Of The Greek Embassy, Saturday 31 August:
Defend Savas Michael-Matsas; Defend Communities Against The Nazi Golden Dawn

The Socialist Fight has called a picket of the Greek Embassy for Saturday 31 August between 1 and 2 pm and propose to hand in the following letter. We are requesting that your organisation participate in the picket and endorse the letter as an organisation so you name can appear as supporters.

The Ambassadoraddress
 H.E. Mr. Anastase Scopelitis
Greek Embassy in London
1A Holland Park,
31 August 2013

 Dear Mr. Anastase Scopelitis,

 We, the undersigned, are protesting today against of trail of Savas Michael-Matsas a Greek Jewish Marxist intellectual and General Secretary of the Workers’ Revolutionary Party (EEK) of Greece and Constantino Moutzouris, the former rector of the University of Athens, on 3 September 2013.

 Savas Matsas is accused of “defamation” against the Greek openly Nazi party, the infamous “Golden Dawn”, for “instigation of violence and chaos” and “disruption of the civil peace” because, four years ago, in May 2009, the EEK has issued a leaflet calling for participation into an antifascist demonstration of protest against a murderous attack by the Nazis against the immigrant communities in Athens covered by the Greek police.

 In December 2008, an important youth revolt had shaken the entire country following the murder of a 15 years old youth, Alexandros Grigoropoulos, by two police guards. The revolt continued for nearly for two months, in what Dominique Strauss Kahn, head of the IMF at that time, had rightly described as “the first political explosion of the current world financial-economic crisis”.

 The police pogroms against the immigrants reached a climax in spring 2009, in Athens, in the neighbourhood of Aghios Panteleimonas, where Golden Dawn thugs terrorised the immigrants with the support of the local police. Left organizations had called for anti-fascist demonstrations. The EEK took part and issued a leaflet calling on the people to participate. The leaflet signed by the EEK as a political party was also published in the party newspaper NEA PROOPTIKI and presented in the party’s web site. This is the “crime” for which the General Secretary of the EEK is accused and put on trial.

 In May 2009, leading members of the Golden Dawn, including Ilias Panagiotaros, now a member of the Greek Parliament, and Themis Skordeli (a woman with dark connections with the underworld, was accused of the assassination of an Afghan immigrant but who never was been charged), posed a lawsuit against the entire spectrum of the Greek left, from the Communist Party of Greece(KKE) and SYRIZA to the extra-parliamentary left, ANTARSYA and EEK, all the immigrant associations, and independent personalities like the Dean of the National Technical University of Athens Constantinos Moutzouris (accused to allow the alternative web site Athens Indymedia to broadcast from the space in the campus).

 The lawsuit was not acted upon until late 2012, after the Greek elections of May and June 2012, when, the Golden Dawn was catapulted to Parliament from the margins of political life and the shadow of the State repressive apparatus. In November 2012, at the day celebrated nationally for decades now as the anniversary of the 1973 youth revolt in the Athens National Technical University(Polytechnic) against the military dictatorship of the colonels, the Greek Police, after receiving orders from the judiciary, started interrogations of all the accused in the Nazi lawsuit of 2009. In June 2013, from the dozens of the accused in the legal action of 2009, and interrogated in 2012, only Savas Michael(Sabetai) Matsas of the EEK was called to trial on September 3, 2013, together with the former Dean C. Moutzouris.

 Simultaneously with this preposterous “legal” action, the Nazis have intensified a non-stop, vicious anti-Semitic and anti-communist campaign against the Secretary of the EEK, accusing him of being “an instrument of the World Jewish Conspiracy to foment civil war among Greeks to impose a Judeo-Bolshevik regime in Greece”. Pictures of Savas Michael are presented combined with anti-Semitic insults and openly death threats: “Crush the Jewish vermin!”

 We wish to express our total opposition to the Greek state and government collaboration with the Nazi Golden Dawn in bringing these persecutions. We wish to express out outrage at the collaboration of the Greek state and government in failing to oppose and thereby collaborating with the vile anti-Semitic campaign against Savas Michael-Matsas and thereby against all Jews.

 We demand that the charges against Savas Michael-Matsas and Constantino Moutzouris be dropped immediately and that the Greek state and government protect the immigrant community against the fascist assaults of the Golden Dawn and cease prosecuting their defenders. Signed:

Steve Hedley, on behalf of the Rail and Maritime Union. Weyman Bennett, on behalf of Unite Against Fascism D.R. Rayner Lysaght, on behalf of Socialist Democracy (Ireland) David Yaffe, on behalf of the Revolutionary Communist Group Michael Holden, on behalf of the Irish Republican Prisoners  Support Group Michael Pröbsting on behalf of the Revolutionary Communist International Tendency (RCIT) Alex Steiner on behalf of permanent-revolution.org Martin Ralph on behalf of the International Socialist League To add your organisation to the list email:  Socialist_Fight@yahoo.co.ukSocialist Fight

Join-The-SWPThe Socialist Party Debates: The Tendency For The Rate Of Profit To Fall Vs Underconsumptionism.

The VOAG can’t help but notice the growing debate inside the Socialist Party (SP). The VOAG’s inbox had just quietened down following an avalanche of emails during the recent SWP splits. Now it seems it’s the Socialist Party’s turn to spam the living daylights out of us all.

The VOAG has already heard rumours of people being banned from the Socialist Party’s International Summer School, now I understand the SP’s NC is removing members from the SP Facebook group and banning all discussion relating to Marxist economics. (1)

As Bruce Wallace, one of the leading dissidents put it: “Under the pretext of agreeing to comradely debate, the critical material of oppositionists is being censored and repressed while public attacks on us are made by the leadership”. How SWP. (2)

And just like the SWP debacle, the argument is being conflated with a general dissatisfaction with internal party democracy. One dissident quotes Lenin: “Criticism within the limits of the principles of the Party Programme must be quite free, not only at Party meetings, but also at public meetings. Such criticism, or such “agitation” (for criticism is inseparable from agitation) cannot be prohibited”

What’s it all about.
 At the root of the argument are different perspectives regarding the relative importance in Crisis Theory (why capitalism goes into cyclical recessions) of “The Tendancy For The Rate Of Profit To Fall” (TRPF) and “Overacculation /Underconsumption”. Another SP dissident, calling himself Crucial Steve, writes on his blog:

“According to Lyn Walsh [editor of the SP’s monthly Socialism Today], the current crisis is one of over accumulation and lack of demand. Peter Taaffe writes in issue number 157 “The capitalists refuse to invest because there is no ‘profitable outlet’. In this sense, it is a crisis of ‘profitability’. Not because profits have dropped or there is a ‘tendency’ for the rate of profit to decline. Both the rate and the absolute amount of profit have increased it seems, even during this terrible crisis”.” (3)

Crucial Steve (Steve Dobbs) counters: “Marx was very clear that the accumulation of capital and the Tendency of the Rate of Profit to Fall were in fact “two expressions of the same process”. As capital accumulates, the organic composition [fixed capital over variable capital] rises and the rate of profit tends to fall. Thus to speak of over accumulation without reference to the rate of profit is somewhat “one-sided”, shall we say.

Cde. Crucial sets out his stall: “According to the statistics, the rate and the absolute amount of profit have not increased as the SP would have it. As anyone who has worked with management in the private sector will tell you, capitalists are concerned with the rate of return. So naturally, the projected rate of profit will determine investment. A fall in return and a subsequent fall in investment can also lead to a drop in the mass of profits. We can see empirically that the fall in the mass of profits precedes a fall in investment prior to a recession”.

Crucial quotes Walsh in Socialism Today No.161: “How, as socialists, should we regard a stimulus package or programme of public works? In the face of mass unemployment and the prospect of prolonged economic stagnation, the leaders of workers’ organisations should indeed be calling for a massive programme of public works to provide jobs and stimulate growth. Effective economic stimulus would require a big increase in social spending, increasing pensions and other benefits. Tax rates for the wealthy and big corporations should be substantially increased, with a levy on the uninvested cash piles of big companies. Effective measures should be taken against tax evasion and avoidance”. (4)

The SP’s official position, that the current crisis is one of over accumulation and lack of demand, implies that the answer is to inflate the economy by increasing salaries and public spending, in order to spend ones way out of crises. In other words, classic Keynesianism. We at The VOAG reject this approach and agree with Marx, that capitalism has structural contradictions that cannot be resolved by keynesian economics or reformism.

Socialist Fight breaks it down.
To get some help understanding this argument, let’s visit the pages of this month’s Socialist Fight:
Let us first of all set out the proposition according to Marx: “The progressive tendency of the general rate of profit to fall is, therefore, just an expression peculiar to the capitalist mode of production of the progressive development of the social productivity of labour. This does not mean to say that the rate of profit may not fall temporarily for other reasons. But proceeding from the nature of the capitalist mode of production, it is thereby proved a logical necessity that in its development the general average rate of surplus-value must express itself in a falling general rate of profit. Since the mass of the employed living labour is continually on the decline as compared to the mass of materialised labour set in motion by it, i.e., to the productively consumed means of production, it follows that the portion of living labour, unpaid and congealed in surplus-value, must also be continually on the decrease compared to the amount of value represented by the invested total capital. Since the ratio of the mass of surplus-value to the value of the invested total capital forms the rate of profit, this rate must constantly fall”. Karl Marx, Capital vol. 3, chapter 13.

TFRP is the central plank of Marx’s revolutionary economic theories. He formed his theory in opposition to the closely related theories of the so-called “iron law of wages” and underconsumptionism, and sharply counter-posed TFRP to them. The Iron Law of Wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker. Karl Marx attribute the doctrine to Lassalle (notably in his Critique of the Gotha Programme, 1875), but credited the idea to Thomas Malthus in his work, An Essay on the Principle of Population.

Marx did not have several theories of capitalist crisis, he had one: TFRP. Marx attacked the “iron law of wages” in two lectures to the international Working Men’s Association in 1865. The argument was that the “iron law” meant the absolute immiseration of the working class which led to a lack of demand for commodities and hence a crisis pushing prices below the value of commodities finally squeezing profits.

This is closely allied to underconsumptionism. Of course it has an immediate reformist implication; there is a Keynesian solution to the crisis of capitalism. All we need to do is raise wages and pump more money into the economy and the crisis will be solved. The underconsumptionist tells us there is plenty of money available but the capitalists just won’t invest. So implicitly all we have to do is force them to do so or get the government to do so on their behalf. It is this reformist conclusion that Bruce Wallace has correctly identified in the line of both the CWI and the CPGB. The notion that they won’t invest because the rate of profit is too low is beyond them.

The point about TFRP is that it is a revolutionary theory; capitalism is in crisis because it has these fatal structural flaws; private ownership of the means of production and a system of production for individual profit which has this inescapable tendency to fall and halt production through lack of investment. Only a rationally planned socialised economy based on production for need will overcome the ever recurring [and increasing] crises of capitalism. War on a global scale is the only thing that will temporarily solve this crisis for the capitalists; a much smaller group of monopoly capitalists will now have their profits rates restored before they fall again and the next conflagration is prepared. That is the history of the twentieth century. The same iron laws apply to the twenty-first. (6)

1. http://howiescorner.blogspot.co.uk/2013/07/is-shttp://howiescorner.blogspot.ocialist-party-heading-fo-split.html
3. http://socialismiscrucial.wordpress.com/2013/07/15/ted-grants-notes-on-marxist-economics/
4. Ibid
5. https://suacs.files.wordpress.com/2013/08/socialistfightno14.pdf
6. Ibid

Acknowledgements and Thanks
Many thanks to Ray Rising for providing a selection of print-outs regarding the Tendency for the Rate of Profit to Fall.

The VOAG would like to acknowledge Socialist Fight for their article “Ticktin, Taaffe and Underconsumption” in Socialist Fight No.14 some of which is reproduced here.

Thanks also go out to Socialist Fight for their excellent Open Meeting on the “Tendency for the Rate of Profit to Fall” which The VOAG attended. For details of future Socialist Fight meetings contact: Socialist_Fight@yahoo.co.uk.The Voag