A Thought for Halloween

Writing this week in City AM, Diego Zuluaga, Head of Financial Services and Tech Policy at the Institute of Economic Affairs, seeks to defend capitalism. His article on 24 October Big Businesses Denigrating Capitalism Don’t Understand It is interesting not for its call on big business leaders not to rock the boat, nor for its arguments in defence of capitalism – even the author must surely recognise, deep down, they are disingenuous – but because it was felt necessary to publish such a defence at all.

For Marxists, a study of history and an analysis of capitalism and its instabilities leads us to conclude that capitalism is merely the penultimate stage in our evolving, class-based society, not the final equilibrium or ‘end of history’ envisaged by Francis Fukuyama. Marxists are sometimes accused of irrational belief, but belief has nothing to do with it. Our approach is a rational and scientific one. It is the defenders of capitalism who exhibit irrational belief. Their confidence that de-regulating markets will lead to the welfare of all is, at best, based on an elegant model built on unrealistic assumptions[1]. In practice, it is based neither on economic theory nor on Zuluaga’s flimsy arguments but on the self-interest of the ruling class and those in their pay. Our theories, on the other hand, have concrete evidence to support them: the 2007 financial crash; historic levels of inequality; Grenfel Tower; global warming; the housing crisis; growing hospital waiting times; bloated expenditure on ‘defence’; and …. Readers of this blog are invited to complete the list.

It may be too soon to claim again, as did Marx and Engels in the Communist Manifesto, that ‘a spectre is haunting Europe, the spectre of communism’, but we can take comfort from the thought that something is spooking our ruling class.

[1] The Arrow-Debreu Model, a mathematical expression of Adam Smith’s ‘hidden hand’. Amongst its many unrealistic assumptions is perfect and complete markets.

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Our “Free” Press

It would be a mistake to believe that the power of the capitalist press has been irrevocably damaged by its failure to deliver the Tory vote at the last general election. Social media may have enabled the Left to function without national newspaper support on that occasion but it must not be forgotten that the Tories still gathered 42.4 % of the popular vote against 40.0% for Labour. In the event of a Labour victory next time, unless something is done popular discontent will soon be whipped up against it. If anyone doubts this, look what is happening in Venezuela.

As Rob Griffiths, our General Secretary, reminded readers of the Morning Star this weekend, there is an old aphorism that the Express is read by those who think the country should be run like it used to be run, the Telegraph by those who think the country still is run like it used to be run, the Mail by the wives of those who run the country, the Guardian by those who think they should run the country, the Times by those who do run the country and the Financial Times by those who own it. While this is merely an amusing adage, it retains a germ of truth. But as Bill Barnett pointed out in a letter published in the same edition of the Morning Star, in times of falling readership, the “power of the press” is now largely dependent on the status it is afforded by national broadcasters, especially the BBC. ‘What the papers say’ is still treated as something of consequence to be faithfully reported. The continuing decline in readership is ignored. Every attempt to get the BBC to extend coverage to the Morning Star, despite well supported Early Day Motions in Parliament, is ignored.

A lot of nonsense is talked about the value of a “free” press. If a Corbyn led government is not to be undermined from the start, it should be a matter of priority for it to improve press regulation, require balanced reporting, establish an equal prominence right of reply, dispossess expatriate owners and, if any newspapers are to remain in private ownership, to properly tax the benefit of such ownership. As was pointed out in the Communist Party pamphlet From Each According To Their Means[1], newspapers are not owned for any (modest) profits they may generate, they are owned for the political power they confer on the owner. This pamphlet called for a public debate on newspaper ownership and how it should be taxed. One possibility would a substantial per copy levy on the number of copies distributed (rather than actually sold) in the UK with an exemption for reader owned co-operatives. An extra levy could be charged on any free bottles of water accompanying the purchase!

Footnote

[1] £2.50 including postage Follow link