Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/556/6599

From The Socialist newspaper, 12 November 2008

Economy in recession

Defend workers' jobs and pay

Socialist policies needed

"Buy one car, get one free", was the desperate offer of a Colchester car sales broker. Nationally, car sales have fallen to a level not seen since 1966. And now falling consumer spending and the credit crunch are impacting heavily on jobs; British businesses have laid off 300,000 workers in the last three months. Finance, property and construction have been worst hit.

Judy Beishon

News like this led the Bank of England to drastically cut its interest rate by a third - the biggest percentage cut in over half a century - and to warn of a coming "severe contraction". The talk everywhere is of a deep, prolonged recession.

Further interest rate cuts are likely and other emergency measures are being seriously discussed, such as tax cuts. But these limited measures won't stop the recession from worsening. Too many people are massively overburdened with debt or insecure about their jobs for some extra pounds delivered via tax or interest cuts to reverse the downward trend in spending.

The disgusting, short-term greed and arrogance of the top bankers was shown when all but two of the major banks had to be dragged kicking and screaming by the government into passing on the 1.5% interest cut to their customers. This does not mean that New Labour has changed its fundamental stance to one of acting in favour of ordinary people. Despite the hundreds of billions of pounds of public money that he has made available to several banks, chancellor Alistair Darling has repeatedly said that he does not want to interfere in banks' "commercial decisions".

The ungrateful bank chiefs still asserted that they will not be "brow-beaten" into passing on interest rate cuts next time, moaned that they are "not charities" and that base rates are now so low that their "margins are desperately small". While the Bank of England base rate has been falling, many banks have actually increased the interest they charge on credit cards, instead of passing the benefit on.

They want fat 'margins' so that they can continue to pay themselves obscene salaries and bonuses and so that their shareholders can go on receiving huge dividends. They are raking off public money for this, at the expense of working and middle class people who are losing their homes and jobs, and of many more who will bear the burden of increased government debt in the future.

The only people who should lose their jobs are the top banking bosses and government ministers who are in league together to benefit the fat cats at workers' expense. If the banks can be given billions, why can't the hundreds of thousands of workers' jobs be saved?

And it is abhorrent for the government to take an arm's length distance from the banks' decision-making when the public money put in justifies - to most people - taking complete control. All the banks should be fully nationalised immediately, and run by democratically elected committees of workers' representatives from the finance industry and from wider society.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 12 November 2008:


Socialist Party campaigns

Defend workers' jobs and pay

PCS union: Strike threat wins talks

Confined to one room

Fast news


Socialism 2008

Socialism 2008 - an inspiring weekend


War and occupation

Iraq, Afghanistan... End the occupations!


Socialist Party Marxist analysis

A political awakening propels Obama to victory

Why Labour won the Glenrothes by-election


Socialist Students

'Students in the Red' day of action

East Anglia region demands free education


Education

NUT leadership fails to call strike

Scotland: Victory for the Vale of Leven Four

The workload of a teacher


Socialist Party review

Prescott: the class system and me


 

Home   |   The Socialist 12 November 2008   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Economy:

triangleForeign aid's not the problem - it's capitalist thieves

triangleSuper-rich subsidised

Recession:

triangleSocialist Students launched in USA

triangleThe EU and the economy - Project Fear steps up

triangleSocialist Party national congress 2016

Banks:

triangleSuper-rich shareholders cause of pension deficits

triangleBosses' pay goes up by 82% for nothing

triangleFood banks and the real Daniel Blakes

Reports and campaigns

Reports and campaigns

20/2/17

Russian revolution

Meetings on the 1917 Russian Revolution

17/2/17

Steel

Tata pension deal: 'Gun to the head' offer accepted

15/2/17

London

Vibrant Picturehouse pickets in continued living wage strike

15/2/17

Leicester

Thousands march to defend Glenfield heart centre

15/2/17

May Day

May Day greetings in the Socialist

15/2/17

Fracking

Toxic fracking could start in England in 2017

15/2/17

The Socialist

The Socialist: 20 years old and more important than ever

15/2/17

Unite

Workplace news in brief

15/2/17

PCS

PCS union pledges to fight Jobcentre job losses at public meetings

15/2/17

Tesco

Solidarity with Tesco Ireland Valentine's Day strike

15/2/17

IWGB

Ultimatum as Deliveroo drivers down tools in Brighton

15/2/17

PCS

"Disgraceful" treatment of sacked EHRC workers

15/2/17

Rail

United fightback needed as entire grade of rail worker is at stake

15/2/17

Trump

Resist Trump and his rotten policies: why I'm walking out on 'Day X'

15/2/17

Socialist Party

New Socialist Party press

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle17 Feb Tata pension deal: 'Gun to the head' offer accepted

triangle16 Feb Aslef members reject Southern deal - now for coordinated action to...

triangle15 Feb Socialist Students: growing, brimming with confidence

triangle15 Feb March to save #OurNHS

triangle15 Feb Vibrant Picturehouse pickets in continued living wage strike

triangle15 Feb French presidential election: crisis in the establishment parties

No cuts!, photo by JB

triangle15 Feb Council cuts can be fought - and they must be!

More ...

triangle20 Feb Chesterfield Socialist Party: Capitalism - On the edge of the volcano?

triangle20 Feb Leeds Socialist Party: LGBT rights & the Russian Revolution

triangle21 Feb Bristol North Socialist Party: Where is Britain heading?

triangle21 Feb Manchester Socialist Party: Where does British capitalism come from?

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice