How can we bring about change that will irrevocably transfer power back into the hands of the many?
Mervyn Hyde writes: “I feel that in order to get to the heart of our struggle we need to highlight where power lies and the tools by which the powerful maintain their interests”.
If we are to convince people that there is such a thing as a better life, we have to inform them of the past and how things have to come to pass – from the first world war to the present day
It should of course be obvious that neoliberalism is the main tool that took hold in the early 1970s; the other tools are the institutions and language used to propagate the messages that sustain the whole system.
An American description:
Prior to the 1970s a pre-war dispute raged between Friedrich Von Hayek and John Maynard Keynes as to what economic values best served people’s interests. Naturally Keynes won the argument and his policies were broadly implemented post the Wall Street crash and the last world war; they created growth and an expansion of living standards never seen before.
- Greater openness to international trade and investment;
- total freedom of movement for capital, goods and services;
- de-unionisation of workers, lowering of wages and working conditions;
- cutting public expenditure for social services like education and health care;
- reducing the welfare safety-net;
- eliminating the concept of “the public good” and replacing it with “individual responsibility”;
- increasing government subsidies and tax benefits for business;
- reducing government regulation of everything that could diminish profits;
- selling state-owned enterprises, goods and services to private investors.
“The Golden Age of Capitalism”
Then in the 1970s Milton Friedman (part of the Mont Perelin society of which Hayek was also a member) persuaded us that freedom of expression could only be achieved through free markets, privatisation and deregulation – the main pillars of neoliberalism.
Using crises created by the corporate sector or by political events as outlined in Naomi Klein’s book “The Shock Doctrine”, they redrew the political consensus that had existed since the war. This process has been in continual flux up to the present day but moving ever forward to return all public property and services into the private sector – aided by politicians, political institutions “Think Tanks” and Lobbyists.
The reasons for their success have been the coordination of all the instruments of state, a corrupt media and stage-managed attacks on working people’s support systems.
This document drawn up by Nicholas Ridley in 1977 shows the kind of planning the Tories drew up long before trade unions ever dreamt of such attacks.
The key proposals are in the confidential annex, showing how they break the power of the unions in order to privatise the nationalised industries.
Following this and the advent of the Thatcher era, the Labour Party had been either infiltrated or through our universities – MPs began to accept greater degrees of private intervention and took neoliberal doctrines as read into the future.
Whilst outwardly objecting to the harsh nature of Thatcherism as it was then known, more and more Labour politicians have become wedded to it. Even today over 100 Labour MPs are still committed neoliberals although would never admit it.
Margaret Thatcher and her chancellor Sir Geoffrey Howe were behind a politically toxic plan in 1982 to dismantle the welfare state, Margaret Thatcher’s secret 1982 cabinet papers “the longer term options” released in 2012 are reported to have caused consternation amongst her colleagues and she later disowned them.
Mervyn Hyde adds, “The actual archive link can be found here, noting that it is viewed through archive viewer, so you have to click on where it says Image viewer” – but as yet the writer has failed to see them.
Until now this has been the general trajectory, in essence neoliberal politicians of all colours have collaborated to achieve the same ends, a transfer of power and wealth to the corporate sector.
From here on, what do we have to recognise in order to bring about change that will irrevocably transfer that power back into the hands of the many?
The last election could be described as a text book analogy revealing how, over the last three years, established sources combined to defeat the one and only enemy they have – socialism. Using a fabricated crisis and the perfect divisive outcome of the referendum, they were able to manipulate just enough people and confuse the rest, whilst weakening support for the Labour Party from within. The elements brought to bear to achieve this were: racism, ignorance, and apathy, aided by a complicit media that feeds prejudice and hate as well as confusing information.
Neoliberal doctrine has successfully divided the nation into fragmented parts, creating an illusion that this is how life really is. People have over the last forty years grown to accept the conditions two-thirds of us now see as normal – roughly one-third being dedicated to opposing the illusion.
For this minority ever to break out of the cordon set up by the establishment, they must recognise that those within our movement have to be challenged, as well as those outside it. That means challenging these orthodoxies:
- we can’t afford our public services,
- private enterprise is efficient and will increase the well-being of people,
- competition is no longer relevant,
- deregulation brought about the financial crash
- and the myth that we need rich people and financiers to provide us with wealth to sustain our life style
Apart from the media and its influence we also have to recognise that a lot of people seem not to care about anything except their own interests and it will require substantial efforts to break them out of their mould. When told that the NHS is being dismantled, their eyes glaze over – some would even say ‘oh well it needs changing anyway’ without the slightest knowledge of what they were talking about. Hyde calls this a form of blind faith that either they won’t suffer from these changes or they just won’t happen and things will go on as they have done; he points out that the reality is that the agenda will roll on and possibly over them.
The way to break out of this from his point of view is to challenge power at its source, be that the media or government and change the way members of the party think essentially through educating them.
Rebuild our manufacturing base via public investment, which would make our economy much more stable
Again through general ignorance lots of good people in the Labour party are oblivious to Britain’s real economic position. Some have socialist beliefs on how they can transform our well-being, but they still don’t understand that Britain’s position is unique in Europe, due to the fact we have our own currency and as such can spend directly into our economy, without the need to raise taxation, which would be used as a regulator of the economy.
What this also means is that we do not have to rely on trade to raise income, since Margaret Thatcher dismantled our manufacturing base we are a net importer of other countries finished goods, we could therefore rebuild it via public investment, which would make our economy much more stable and even export some of what we produced. Doing nothing as we are is financially unstable (Ed: also socially damaging).
This video of Professor Costas Lapavitsas (above, SOAS) breaks the EU illusion held by lots of Labour supporters, by describing in detail why getting out of Europe is essential. But after seeing the video readers may also find that we are not likely to get a genuine settlement no matter how hard we try.
Fundamentally the countries in Europe (Eurozone) can only spend into their economies by raising Euros through trade, this causes huge disparity among EU members especially those in the south, and the only real winner in this is Germany with its massive manufacturing base. This creates such an imbalance of trade and power that it can’t theoretically survive unless changes are made, like becoming a federation of states subsidised by the European Central bank, which breaks all the neoliberal trade rules they have put in place. This graph clearly describes the fundamental imbalance that currently exists:
Hyde sees a need to challenge the perception of Labour Party members that somehow Europe is some sort of economic Utopia that will defend our interests and feels that due to the problems facing Europe, sooner or later the whole pack of cards will fall in.
In addition to the economic problems facing Europe fascism is on the rise. Germany is still the richest country in Europe with massive trade surpluses, yet it has consistently produced right of centre governments and coalitions. As in England the left suffered defeats even though wages and living standards were falling under right wing regimes – due of course as here to the perception that the neo-liberal centrist politicians were no better than their counterpart conservatives. Since the war the predominant party coalitions have been centre right. So Hyde feels it would be better to concentrate on attacking the establishment and describing how Britain, with its unique position, can effect change more rapidly than any other.
Within our ranks we have neoliberal MPs dedicated to undermining any socialist advances
“When Blair first took office as prime minister, I attended one of his members’ forums in Reading, and after he gave his speech, a member asked the question, “where was the socialism in his speech” and Blair replied, “socialism is dead”. Judging from some of his old front benchers and their comments over the years I have no doubt they hold the same views and won’t ever change. the Lisa Nandys of this world etc. Our messages have been stifled and diversions such as anti-semitism have been created and not adequately rebuffed; hence we now need a voice strong enough to call out the lies and deceit in the media.
“This is not a full explanation of the need to change perceptions about our economy and relationship with Europe, there are a number of academics that highlight just how bad Europe is and how progressive Britain could become with the right government in place, but trying to change Europe from within as explained by Costas is virtually impossible.
“Changing those perceptions and ridding the Labour Party of those who actively work against us is the priority. Identifying LibDems, New Labour, and the Tories as being the same is essential to growing support, which they are, although they would claim they are not as extreme as Johnson etc., the reality though is no different; they all have the same objectives, just faster or slower time- tables – in fact if you listen to them they all use the same language, which is the big give-away.
“We lost the last election for many reasons, some of which I have outlined here, Jeremy’s only fault as Ian Lavery said, was that he wouldn’t join Johnson in the gutter. Sadly our unsophisticated electorate didn’t comprehend his magnanimity and – if we are to cut through – we need to speak the language they understand, without of course getting in the gutter to do it”.
Posted on January 16, 2020, in Economy, EU, General Election 2019, Government, Jeremy Corbyn, Labour Party, Media, NHS and tagged Costas Lapavitsas, imbalance of trade, manufacturing base, Margaret Thatcher, Mervyn Hyde, neoliberalism, private enterprise., public investment, Tories. Bookmark the permalink. Leave a comment.