CAPITALISM’S STRUGGLE TO SURVIVE

The Guardian yesterday (14 May) quoted from the Daily Torygraph an internal report by HM Treasury officials leaked to that paper outlining the options for re-starting the economy after Covid-19. As readers will appreciate, it would be asking too much of me to read the odious Torygraph – reading the Guardian is bad enough – but here is the gist of the summary of the leaked document as the Guardian reported it.

• A forecast budget deficit for 2020-21 of £337 billion, up from pre-Covid forecast of £55 billion

• A possible intensification of the austerity programme, including an inevitable extension of the public sector pay freeze. As public sector pay is already depressed by years of pay
freeze, this would, however only save a paltry £6.5 billion over two years.

• “Broad based” tax rises, which is Treasury-speak for increasing VAT and National Insurance.

• Borrowing – but here the report is said to have warned of a “sovereign debt crisis”. Thus, despite record low interest rates and, thankfully, still with our own currency, borrowing is dismissed as a longer-term strategy.

• Cutting the state pension – but abandoning the triple lock would only generate modest savings. Not mentioned by the Guardian is the obvious strategy of ensuring that no state pensions need be paid. Encouraging an early return to work and opening schools before the Summer Break may well suffice to kill everyone currently receiving the state pension, but, if not, increasing the state pension retirement age to 75 should complete the job.

• Cutting welfare spending. Again, no mentioned was made of the obvious strategy of ensuring that poor people die in large numbers, thus saving most of the £130 billion previously spent on welfare.

Government strategy could be seen as already starting down the roads suggested by the last two strategies. Schools are to re-open in the teeth of opposition from NEU and other teaching unions while the mass media and, most shamefully of all, the BBC , seek to assure us all that this will be quite safe. In the private sector that may well be true, but not in most of the state sector. Funding that keeps the homeless off the streets is to be cut which will ensure that they will die within weeks. Return to work by low paid workers, i.e. those who cannot work at home using a PC, is being encouraged and, in effect, enforced. Many of these workers have no trade union to speak up for them, the result of policy by a succession of Tory and Labour governments.

Capitalism is threatened and these are desperate measures intended to shore it up. It can only survive if the current social relations on which it depends are maintained. Banks must be allowed to enforce their security. Landlords must be allowed to evict and sue their tenants. Creditors must be paid. Employees must work and obey their employer. The message from the government will be that, if these social relations are not maintained, there will be anarchy.

Not necessarily! There is an alternative: working class power and socialism.

About drmartingraham

Branch Secretary Croydon CP Convenor Communist University in South London

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s