spotCampaigns

spotOrganisations

spotArguments for socialism

spotPeople

spotInternational

spotEvents

spotAround the UK


All keywords


All Campaigns subcategories:

Anti-capitalism

Anti-fascist

Anti-racism

Anti-war

Asylum

Black and Asian

Children

CNWP

Corporate crime

Disability

Education

Election campaigns

Environment

EU

Finance

Food

Gender Recognition Act

Health and safety

Health and welfare

Housing

Human Rights

LGBT Pride

Local government

Local services

Low pay

Migration

Nationalisation

New workers party

NHS

Pensions

Post Office

Poverty

Privatisation

Public Services

Socialism

Socialist

Sport

Stop the slaughter of Tamils

Students

The state

Transport

TUSC

Welfare rights

Women

* Workplace and TU campaigns

Youth


Workplace and TU campaigns keywords:

35-hour week (23)

AUT (7)

Aer Lingus (6)

Agency workers (56)

Airport (56)

Amicus (53)

Argos (19)

Aslef (84)

BAA (2)

BBC (188)

BMW (26)

BT (60)

Besna (22)

Bin workers (81)

Blacklisting (108)

Bloc (3)

Bosch (2)

British Airways (81)

British Airways (81)

Burslem 12 (9)

Bus workers (86)

CWU (376)

Cadbury (7)

Cadbury-Schweppes (3)

Call Centres (18)

Car workers (42)

Care worker (17)

Care workers (81)

Civil Service (229)

Classroom assistants (8)

Cleaners (132)

Clyde (8)

Coastguards (7)

Compulsory redundancy (10)

Construction (266)

Construction workers (166)

Corus (37)

Council workers (153)

Crossrail (12)

DVLA (21)

DWP (198)

Dockers (24)

Docks (9)

Drivers (232)

EPIU (4)

Electricians (81)

FBU (234)

Firefighters (228)

Ford (106)

Fujitsu (16)

GMB (268)

Gate Gourmet (7)

General Motors (11)

Glaxo Smith Kline (1)

Health and safety (112)

Heinz (6)

Honda (19)

JCB (16)

JIB (7)

JJB Sports (4)

Jaguar (17)

Jane Norman (1)

Jarvis (9)

Jobcentre (52)

Jobs (1517)

Journalists (77)

LOR (15)

Lecturers (95)

Linamar (40)

Lindsey (41)

Lindsey Oil Refinery (30)

Local government (253)

London underground (152)

Lucas Aerospace (6)

Manufacturing (61)

Metro (38)

Metronet (13)

Milford Haven (8)

Miners (179)

NASUWT (53)

NUJ (68)

NUT (360)

Natfhe (10)

Nurses (142)

Oilc (4)

Outsourcing (65)

PCS (986)

POA (87)

People's Charter (1)

Peugeot (8)

Pfizer (11)

Port workers (4)

Postal dispute (28)

Postal workers (154)

Printers (2)

Prison officers (54)

RCN (26)

RMT (785)

Railworkers (10)

Redundancies (137)

Redundancy (38)

Refinery (36)

Remploy (51)

Reps (71)

Rover (32)

Saltend (20)

Seafarers (10)

Self-employed (1)

Self-employment (1)

Shelter (44)

Shipyard (10)

Shop Stewards (253)

Siemens (3)

Single status (31)

Sita (6)

Social workers (17)

Sodexo (9)

Stagecoach (26)

Staythorpe (1)

Steel (97)

Strike (3321)

Sunday trading (4)

Supermarket (42)

TGWU (60)

TSSA (48)

Teachers (500)

Textile (9)

Thomas Cook (5)

Total (18)

Toyota (2)

Trade Union Freedom Bill (4)

Trade union (648)

Trade unions (436)

Train drivers (31)

Tube Lines (5)

Tube workers (51)

Tubelines (3)

Twinings (2)

UCATT (30)

UCU (239)

Unfair dismissal (16)

Unions (1032)

Unison (1014)

Unison witchhunt (5)

Unite (942)

Usdaw (186)

Vauxhall (51)

Vestas (26)

Visteon (92)

Volkswagen (7)

Waterford Crystal (1)

Wedgwood (1)

Whipps Cross (63)

facility time (9)

Manufacturing


Highlight keywords  |Print this articlePrint this article
From: Socialist Party docs British Perspectives 2018, 27 April 2018: Party document as amended by Socialist Party national congress in March 2018

Search site for keywords: Capitalism - Britain - Brexit - Economy - Finance - Manufacturing - Working class - Capitalist - Debt - EU

British capitalism in crisis

27) That is not to suggest, as the capitalist remainers do, that the crisis of British capitalism is caused by Brexit.

Nor is it to suggest that British capitalism would be safer within the EU. On the contrary, it would face the likelihood of new crises within the EU and particularly the Eurozone.

At root the economic crisis stems from the continued global crisis of capitalism added to Britain's continued decline as a world power.

Britain has not recovered from 2008 and is heading towards a new crisis, which the political uncertainty of Brexit is only exacerbating.

Britain's decline shows in any number of indicators. Productivity per hour has still not reached its pre-crisis peak, and is lagging further behind the G7 average than at any time since records began! In 2008 nine of the world's biggest 100 corporations were UK-owned, now the figure is only five.

Meanwhile, the US, despite its decline in many respects, has increased the number of its companies in the top 100, now taking an absolute majority at 55.

28) Britain's economy remains dominated by the service sector, particularly finance. The finance sector employs over two million workers across Britain.

Of these only a small minority are the international financiers based in and around the Square Mile. Nonetheless, it is true that the London Stock Exchange (LSE) is second only to Wall Street, the only field in which Britain is a first-rate power.

Outside of the EU, the pro-Brexit wing of the Tory Party dream that British capitalism will succeed by becoming even more dominated by finance, little more than a giant hedge fund.

The majority of Britain's financial capitalists recognise, however, that while the LSE would remain a global player, it would be bound to lose jobs to Paris and Frankfurt.

Close to 100,000 people are employed in asset management alone, for example, a significant section of whom could relocate.

29) The UK economy has long been overwhelmingly driven by consumer spending. This, however, started to slow in the final part of 2017 as low pay combined with price increases hit workers' pockets.

For those who managed to grasp the bottom rung of the housing ladder, mortgage debt is once again increasing.

The number with mortgage debt more than four times their earnings is the highest since 2013, as is the proportion paying more than 40% of their earnings on the mortgage.

UK house prices are at close to their pre-crisis levels, the only major economy where they have reached such stratospheric levels.

Personal indebtedness goes far beyond mortgages, however. The growth rate in personal loans, credit cards and car finance is more than five times the puny rise in earnings.

Personal debt has risen to levels unseen since the financial crisis, reaching more than 200 billion.

30) At the same time, the growth in employment (albeit on a low paid, insecure basis) appears to have come to an end after official figures showed the number of people in work fell by 56,000 in the three months ending in October 2017.

The CBI do not expect any improvement in 2018: "Persistent cost pressures will ensure inflation remains at a high level, perpetuating the squeeze on household spending, particularly impacting consumer-facing firms and retailers." GDP growth is predicted to drag along at well under 2%, and this could prove optimistic.

The shock of a hard Brexit, for example, could also potentially lead to a run on sterling, leading to dislocation of the economy, a sharp rise in interest rates, and much steeper price increases than have taken place up until now.

Given the level of indebtedness in Britain this would be an economic disaster for millions. It could trigger the mass repossessions that took place in the US in 2008, but which Britain largely escaped.

31) It is true that the fall in the price of sterling that has taken place so far has allowed exporting manufacturers to make some gains.

Any positive by-products for manufacturing from a further fall in sterling as a result of Brexit would be likely to be wiped out, at least in the short term, by economic dislocation and increased tariffs that would also result.

In any case, the positive consequences of a fall in sterling have been limited for two reasons. Firstly because the UK economy is so reliant on consumer spending that a growth in the puny manufacturing sector (which makes up only about 10% of GDP) has done little to rebalance the overall economy.

And also because manufacturing industry has, with typical short-termism, chosen to increase its cash piles rather than lower prices and fight for a bigger share of the market.

32) This reflects the deep pessimism of the capitalist class for their own system. Yet again profits are soaring but the capitalist class sit on their cash rather than invest it.

The FTSE has reached record levels yet huge amounts of investors' money is, as the Evening Standard put it, "sitting idly on the sidelines in cash.

"Some estimates put the figure at between $60 trillion and $70 trillion." Richard Buxton, chief executive of Old Mutual Gold Investors explained: "This is the most hated bull market ever...

People just don't trust this market. There's no euphoria and no characteristics of a bubble." The latter isn't true.

"Fuelled by years of quantitative easing (QE), the price/earnings ratio is once again climbing as share prices soar further away from the underlying economic reality.

"Nonetheless, the investors' sense of doom rises from a dim awareness of what is happening and a fear of a repeat of 2007/08.

33) Britain will face a new economic crisis, possibly as severe or even worse than 2007/08, at a certain stage.

Any number of political or economic events could act as the trigger, including but not only Brexit. Even if the crisis is shallower, which would be the best outcome for the working class, the economic, social and above all political consequences will be profound, because they will come on top of all the misery the working and middle classes have suffered over the last decade.

The poorest sections of the working class are suffering terrible hardship. The introduction of Universal Credit is a brutal attack on many including the jobless, the disabled and the growing army of so-called self-employed and low-paid workers on benefits.

The method of administration is also a direct cause of evictions and has some very negative consequences for women, especially victims of domestic abuse.

The main consequence of the general, prolonged driving down of living conditions, is likely to be a profound radicalisation, with much wider layers of the working class drawing socialist conclusions.

If, of course, the trigger for a new crisis is related to Brexit, this could be a certain complicating and divisive factor.

Our role in that situation would be to point out the fundamental reasons for the crisis and the need for a united struggle against its consequences.

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 







Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: [email protected]

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 075 4018 9052

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 078 0983 9793

ABOUT US

ARCHIVE

Alphabetical listing


June 2021

May 2021

April 2021

March 2021

February 2021

January 2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999