Saving capitalism

While the Tories would like to see the NHS destroyed and replaced by a US-style insurance-based system (all those lovely profits just waiting to be extracted) and, aided by the Lib Dems, they have done everything they can to facilitate this (GP commissioning, sub-contracting and partial privatisations), the current crisis in the NHS has a single cause: the 2006 financial crisis. In order to save capitalism, the government had to save the banks, or, more precisely, the speculative capital invested in banks, and to do this they:

  • froze the level of funding for the NHS (ignoring increasing demand);
  • froze the pay of NHS staff and worsened the terms of employment of junior doctors (ignoring the need to recruit and retain staff); and
  • slashed funding for local government social services for frail and elderly patients (ignoring the need for such services if patients are to be discharged from hospital).

The current crisis in the NHS is the consequence. But it is not the only one. The bank bailout and the way it was financed depressed economic growth for at least a decade, increased inequality by underwriting the earnings of the financial elite and destroyed social services beyond those supporting patients discharged from hospital. Furthermore, it yielded no return on the government’s investment in the banks – like Lloyds Bank, they are returning to 100% private ownership and yielding not even a notional profit to the government.

Despite the cost of this bailout, the government has failed to ensure that the banks won’t ask to be bailed out again. Yet the risk of losing our money transmission services and that individual depositors could call on the government guarantee could again allow banks to blackmail governments into bailing them out when their speculative activities collapse. The report by John Vickers in 2013 looked at the “too big to fail” argument but failed to call for a complete separation of simple banking activities – money transmission services and lending against deposits – and the banks’ speculative activity. Vickers, a neo-classical economist with, as his track record as a former Director General of the Office of Fair Trading demonstrated, a misplaced faith in more competition as the remedy for every economic problem, accepted that (his words) “some risk of failure” had to be tolerated and opted for ring fencing and a capital reserves regime. Notwithstanding monitoring by the Financial Conduct Authority, this “risk of failure” is real and will materialise when the banks’ speculative activity next comes off the rails, as it surely will.

But at least we will know what to do next time. Saving capitalism won’t be the priority. We will insist that the government truly nationalises the banks without compensation, not give them what were, in effect, interest free loans until their share prices recover. They must then remain in the public sector to be run in the interests of working people on whose labour their existence depends. These interests will include not pauperising the NHS; they don’t include saving capitalism.

The Future of the NHS and the role of the Independent Left

The news, suppressed until the Tory Party Conference had ended, that NHS Trusts and Foundation Trusts have gone nearly a billion pounds in the red in just three months did not come as a surprise to the Communist Party and others such as Keep Our NHS Public who have been waiting for the figures. Make no mistake, the Tories intend to destroy the NHS and replace it with a US style private insurance based scheme, not stop at merely tendering out services. The outsourcing of Croydon University Hospital’s A&E service, now shambolically and expensively run by Virgin, is just the start. As a step to achieving their aim, the Tories, naively supported by the Lib Dems for the first five years, engaged in a programme of inadequate funding and enforced ‘efficiency savings’. But these alone will not enable them to bring their plans to fruition. For all their bluster, they know they lack enough support across the country to enforce a complete privatisation of the NHS. Not even the backing of the capitalist press and sympathetic coverage by a BBC cowed by the prospect of charter renewal will be enough to force it through. They need a TINA argument – There is No Alternative. They are looking for continued membership of the European Union and ratification of TTIP, the Transatlantic Trade and Investment Partnership, to provide this.

From where will the opposition to the Tories’ plans come? Jeremy Corbyn deserves our support following his election as Labour Leader, especially in his struggle with a sullen Parliamentary Labour Party (PLP) – many Labour MPs resent the power exercised by new members and supporters in electing him and will seek to oust him as soon as they can. The NHS cannot, however, be saved by parliamentary opposition alone; nor should everyone on the independent left, especially those in the Communist Party, tear up their membership cards and pile into the forthcoming internal struggle inside the Labour Party. It will take time to clear out the PLP (assuming it can be done) and, meanwhile, we need to organise independently in the trade unions and trade union councils, support what’s left of our free press (the Morning Star and the internet) and campaign on the streets and in our community groups. Even more important than the next meeting of Croydon Constituency Labour Parties is the next public meeting of the Croydon Assembly. This is a genuine, bottom-up democratic initiative by Croydon TUC and will take place on Saturday 7 November at Ruskin House, 23 Coombe Road, Croydon CR0 1BD. Confirmed speakers include John McDonnell, the Shadow Chancellor, and Christine Blower, the NUT General Secretary. Such grass roots initiatives, conducted independently of the current struggle within the Labour Party, are essential if continued membership of the European Union on unsatisfactory terms and ratification of TTIP, the Transatlantic Trade and Investment Partnership, both essential steps in the destruction of the NHS, are to be opposed. We cannot rely on an internally divided Labour Party to do this for us. We must do it ourselves.