Friday, April 21, 2017

George Praises Marx

I am unable to accept the invitation of our committee to address the meeting at Cooper Institute, but I desire to express my deep respect for a man whose life was devoted to efforts for the improvement of social conditions.
I never had the good fortune to meet Karl Marx, nor have I been able to read his works, which are untranslated into English. I am consequently incompetent to speak with precision of his views. As I understand them, there are several important points on which I differ from them. But no difference of opinion can lessen the esteem which I feel for the man who so steadfastly, so patiently, and so self-sacrificingly labored for the freedom of the oppressed and the elevation of the downtrodden.
In the life and in the teachings of Karl Marx there were the recognition of two profound truths, for which his memory deserves to be held in special honor.
He was the founder of the International — the first attempt to unite in a “holy alliance of the people” the workingmen of all countries; he taught the solidarity of labor, the brotherhood of man, and wherever his influence has reached it has tended to destroy those prejudices of nation and race which have been in all ages the most efficient means by which tyranny has been established and maintained. For this I honor Karl Marx.
And I honor Karl Marx because he saw and taught that the road to social regeneration lies not through destruction and anarchy, but through the promulgation of ideas and the education of the people. He realized that the enslavement of the masses is everywhere due to their ignorance, and realizing this, he set himself to work to master and to point out the social economic laws without the recognition of which all effort for social improvement is but a blind and fruitless struggle.
Karl Marx has gone, but the work he has done remains; whatever may have been in it of that error inseparable from all human endeavor will in turn be eliminated, but the good will perpetuate itself. And his memory will be cherished as one who saw and struggled for that reign of justice in which armies shall be disbanded and poverty shall be unknown and government shall become co-operation, that golden age of peace and plenty, the possibility of which is beginning even now to be recognized among the masses all over the civilized world.
I join with you in paying to such a man the tribute of brotherly regard.
Sincerely Yours,
Henry George

Sunday, April 09, 2017



Gibraltar is not part of the UK, can set its own tax rates and has been using them to aggressively undermine us as much as, if not more than, everyone else. A Gibraltarian growth industry in recent years has been online gambling, with most of the big UK operators – William Hill, Ladbrokes, Bet365 moving their operations to  Gibraltar. There are now 30 gaming companies in Gibraltar. There are more than 60,000 companies registered in Gibraltar (two for every resident) . According to media reports quoting a confidential EU investigation, the Rock imported 117m packets of cigarettes in 2013, enough for every Gibraltarian to smoke almost 200 a day. The cigarettes didn’t stay there, however; they were passing through. This epic smuggling operation may have cost EU countries €700m in lost tax revenues over four years.

Wednesday, April 05, 2017

The Food Corporations

Only 10 companies control almost every large food and beverage brand in the world.
These companies — Nestlé, PepsiCo, Coca-Cola, Unilever, Danone, General Mills, Kellogg's, Mars, Associated British Foods, and Mondelez — each employ thousands and make billions of dollars in revenue every year.

Here's a further breakdown of the companies that own the brands and products we use every day:
2016 revenue: $13 billion
Forget Froot Loops and Frosted Flakes — Kellogg's also owns noncereal brands including Eggo, Pringles, and Cheez-It.
Associated British Foods
2016 revenue: $16.8 billion
This British company owns brands such as Dorset Cereals and Twinings tea, as well as the retailer Primark.
General Mills
2016 revenue: $16.6 billion
General Mills is best known for cereals like Cheerios and Chex, but it also owns brands like Yoplait, Hamburger Helper, Haagen-Dazs, and Betty Crocker.
2016 revenue: $23.7 billion
Best known for yogurts like Activa, Yocrunch, and Oikos, Danone also sells medical nutrition products and bottled water.
2016 revenue: $25.9 billion
This snack-centric company's brands include Oreo, Trident gum, and Sour Patch Kids.
Mars is best known for its chocolate brands, such as M&M, but it also owns Uncle Ben's rice, Starburst, and Orbit gum.
2016 revenue: $41.9 billion
Coca-Cola is moving beyond soda, with beverage brands including Dasani, Fuze, and Honest Tea.
2016 revenue: $48.3 billion
Unilever's diverse list of brands includes Axe body spray, Lipton tea, Magnum ice cream, and Hellmann's mayonnaise.

2016 revenue: $62.8 billion
In addition to Pepsi and other sodas, PepsiCo also owns brands such as Quaker Oatmeal, Cheetos, and Tropicana.
2016 revenue: $90.2 billion
Brands you may not have known that Nestlé owns include Gerber baby food, Perrier, DiGiorno, and Hot Pockets — plus, of course, candy brands including Butterfinger and KitKat.

Citizens Wage

 Old fallacies that were debunked years ago are resurrected and presented as new and profound truths.  One being circulated around as the panacea for poverty and all the accompanying social ills is the Universal Basic Income (UBI) or Citizen's Wage. UBI is an unconditional pay packet for everyone in the country. It replaces all existing benefits and is granted to people no matter their job, wealth or circumstance. It will not make you rich, but provide you with the means to survive. Such schemes were first suggested as far back as the 1930s and the ILP but actually goes as far back as the Speenhamland system in the Middle Ages. The first Muslim caliph, Abu Bakr (573-634 CE), who introduced a guaranteed minimum standard of income, granting each man, woman, and child ten dirhams annually; this was later increased to twenty dirhams. Thomas Paine advocated a citizen's dividend to all US citizens as compensation for "loss of his or her natural inheritance, by the introduction of the system of landed property" (Agrarian Justice, 1795). While Napoleon Bonaparte echoed Paine's sentiments and commented that 'man is entitled by birthright to a share of the Earth's produce sufficient to fill the needs of his existence'. Nevertheless, no country has actually implemented such a system nationally.

On the right UBI in some shape or form has now a solid base amongst its neo-liberal advocates (such as Hayek) who hope to use it to abolish the provision of any state provision of social services and just give every citizen a small equal cash handout instead. It is clear why the UBI concept is most popular on the libertarian right - a means to deismantle the Welfare State. universal unlimited welfare provision. 

Many Left proponents assume that if the government gives everybody, working or not, a regular income this is going to have no effect on wage levels? They seem to be assuming that this would be in addition to income from work whereas what is likely to happen is that it would exert a huge downward pressure on wages and that over time real wages would on average fall by the amount of the "basic" income. In other words, that it would be essentially a subsidy to employers. It would be "basic" in the sense of being a mimimum income that employers would top up to the level people needed to be able to reproduce and maintain their particular working skill. Don't they understand how their much-vaunted law of supply and demand works?

These radical supporters of a Universal Basic Income want to end capitalism while presupposing its continued existence. If people are free from any compulsion to work for a capitalist company, this would destroy the capitalist mode of production. This, after all, relies on the workers to produce the products which are turned into profits. It also relies on the exclusion of workers from these products so that they can become profits. However, at the same time, the same supporters also ask the same capitalist firms to produce the profits to pay for freedom from them in the form of a Universal Basic Income. They want both: the continued existence — for now — of the capitalist mode of production where the reproduction of each and everyone is subjugated to profit and the end of this subjugation by providing everyone with what they need. They want companies to make profits, which relies on and produces the poverty of workers, while at the same time ending mass poverty. They want to maintain the exclusion from social wealth through the institution of private property and end this exclusion by giving everyone enough money.

Monday, April 03, 2017

Abolishing money - an old debate

It is quite difficult to envisage a world without money. It requires a considerable imagination to think of life without, pound-notes, coins, banks and financial worries over paying the next bill. From birth to the grave, workers’ lives are conditioned by money. People grow old before their time because of it. Without money we starve; because of it we are poor; to get it we are forced into wage slavery; if we steal it we can be locked away.

in the Chartist journal, The Red Republican, 27 July 1850, a letter, from George Smith of Salford, was published iunder the heading “ABOLITION OF MONEY” He argues that:
. . in order . . . to prepare the way for the absolute supremacy of the working classes, preparatory to the abolition of the system of classes, what should be done? Evidently something more than getting possession of political rights, or even destroying those twin monsters, rent and usury; for had we possession of the one and had successfully destroyed the other, there would yet remain in existence a monster which would reproduce its kind to torment humanity; and that monster is money! Sir, in my opinion, so long as mankind will agree to have a circulating medium — will allow everything in life to be measured by money — so long will they suffer the evil consequences springing therefrom . . .”
By 10 August, Smith’s letter had provoked a response. The writer, who signed himself “A Wage Slave”, opposes the need to abolish money, stating that “What society wants is just social institutions”. He argued that capitalism survives because workers are not paid the full value of their labour power and that the real need is for an equitable distribution of money. (The Left has not advanced beyond such theoretical fallacies.)

The Red Republican of 24 August contains two letters on the money question, taking up three columns. The first is from RPP, who states that the abolition of money “is the most important subject for discussion at the present time”. He goes on to agree that money should be abolished:
I would root out and abolish a system that compels man to give the sweat of his heart’s blood to the great money-mongers, wasting his own time, strength and happiness, as wealth may command. It is the slavery of the many for the sake of the few. Such a state of things must no longer exist, for man was made to enjoy all things equally with his fellow-man”
But — just as the reader is thinking that the correspondent has hit the nail very close to its head — RPP proceeds to argue that “the working classes must return to barter”. The second letter is from George Smith, who initiated the correspondence, and contains some excellent answers to the arguments of “Wage Slave”:
Strange, that in the 19th century, any wage slave should be found to advocate the continuance, in any shape, of that which, whilst it shall last, must perpetuate his vassalage, to its “fortunate possessors”. Does not my friend see both the craft and the hellishness of money? Who produces everything which sustains life, and feeds our desires for luxuries? The workers! Through the instrumentality of their labour, and by no other means can these things be produced. Then by what chicanery do those who “work not, neither do they spin” obtain all they want to superfluity, whilst those who produce are kept almost without? Why, by the crafty invention and use of money, with which they, like true “philanthropists”, come to the producer, and assure him that the food he is taking home is not “the stuff of life” but that which they will give him in return for his food is the real sustainer of existence, and thus he is cheated out of his produce for a shadow.”
Smith rather confuses cause and effect — it is not money which produces class division, but the other way round — but nevertheless he is clearly moving in the direction of the ideas later to be elaborated by Marx. Responding to “Wage Slave’s” advocacy of a “just commercial system”, Smith rightly states that:
For a man to dispose (or sell) of his labour at the “public mart” presupposes a buyer of that labour, and, according to our friend’s just commercial system, I am afraid that no buyers would purchase unless they could live out of such purchases. To live by buying and selling is to live nefariously.
“Wage Slave” replies on 7 September, stating that he can now see the importance of Smith’s idea, but doubts whether everyone else will be intelligent enough to live in a moneyless society. (A familiar argument from modern Leftists.) “Why propose to do that which is impossible at the present time?” asks “Wage Slave”. This question was asked of the SPGB when it was formed in 1904 and it was for this reason that our members were labelled “the impossibilists”. If those who took this view in 1850 and 1904 had spent less time running away from the need to convince people of a good idea, and telling its advocates that they were wasting their time, we would have achieved the seemingly impossible long ago.

On 14 September Alexander Bill contributed a letter to the correspondence, in which he argued (rather confusedly) that he was opposed to “the total and unconditional abolition of money”, although he did agree with Smith “when he says that our present monetary system is the basis of all those social evils under which we labour”. His answer was to introduce a “prohibition of private trading” and “the establishment of public marts”. Effectively, this was an argument for state capitalism.

The final letter on the subject was published on 28 September and came from George Smith. To “Wage Slave’s” claim that workers could not arrive at the point of intelligence which would make a moneyless society possible, Smith responds:
Intelligence! What is it? Walker says intelligence is “perception, understanding”. Now, will my friend say that it is impossible for the intelligent to excite the perception of the, at present, ignorant, and give them understanding?”
No further letter appeared on the subject. Smith’s question remained unanswered. But since 1850, the post-Chartist Left has responded to the question in the negative. While claiming to be fully committed Marxists, they refuse to advocate the case for the abolition of money because they consider the working class too stupified by capitalist conservatism ever to accept or understand it. Instead, they argue in favour of state capitalism. It is because of this that socialists are fundamentally hostile to the left-wing parties and groups.

Genuine socialists stand for a society in which all factories, farms, offices, docks, mines — indeed, the entire means of producing and distributing wealth — will be owned by the entire world community. The resources of the earth will belong to everyone. No laws will exist to preserve the right of one section of society to use things and another section to be denied the use of them. World socialism will be a social order based on free access for all people to all the goods of the earth. In such a society money would by an out-dated relic. Nobody will buy anything or sell anything or pay for anything. Those who cannot easily imagine such an arrangement should remember that people in pre-capitalist societies would have found our present social order equally difficult to comprehend. Those who have made the mental leap from the prison of the money system to the freedom of world socialism are urged to join us now in our struggle to create the society of tomorrow. The objective is urgent; we have waited for too long.

Steve Coleman