A New Winter of Discontent?

It seems there will still be no end to the resistance movements against the depredations of capital that have sprung up in the wake of the economic crisis. Things are coming to a head in France, where hundreds of thousands have gone on strikes and demonstrations against the attempts of the Sarkozy government to raise the pension age across the board. In a brilliant move reminiscent of the powerful miners’ strikes in Britain in the 1970s, the majority of which were won by the unions, the demonstrators are now blockading petrol depots and stations in addition to gathering for protests. The French government has already been forced to admit that it only has a couple days’ worth of stockpiles to supply Charles de Gaulle airport and other major transport hubs with petrol, and it is seeking to prevent panic buying which would further diminish the flow of this lifeblood for industrialized economies.(1) If the protests do succeed at blockading the government’s access to the coal equivalent of the contemporary world, prospects of victory look good: repeated conflicts with the miners in Britain forced governments of both the Conservatives (Heath and Thatcher in ’82) and Labour (Wilson and Callaghan) to cede to the workers’ demands. Continue reading “A New Winter of Discontent?”

A Critique of ‘Human Capital’ theory

One of the staples of contemporary neoclassical theory is the use of the concept of ‘human capital’, by which it broadly means all investment into skills and education as applied to individuals or an entire population. In particular in popular neoclassical growth theories, such as those developed by Robert Solow and refined by the likes of Elhanan Helpman, human capital plays a key role. It often appears as an essential component in those theories because they tend to see growth as reliant primarily on increases in productivity, which in turn are based on the interaction between the quantities of the ‘factors of production’ (capital, land and labor, though usually just capital and labor) and the state of technology. The virtue of human capital as a concept within these theories is that they allow the technological level to be determined endogenously to a greater or lesser degree, that is, that they enable the theory to take non-given and non-constant levels of technological increase into account, and model variations in technological improvement between countries. Continue reading “A Critique of ‘Human Capital’ theory”

The Schizophrenia of Mr Duncan-Smith

The Conservative-Liberal Democrat coalition government has at long last unveiled their ‘welfare reform’ plans, which are already touted as being “the “most significant reform” of the coalition so far”.(1) As expected, the reforms are mainly centered around the Work and Pensions Secretary Duncan-Smith’s pet project, the implementation of a single benefits system. Under this system, all benefits would be put essentially into one ‘package’, the universal credit – with the notable exception of disability benefits – and be immediately linked to the payroll deductions tax database. The advantage would be that doing so would allow the government to no longer have to rely on the old ‘all or nothing’ approach to benefits, and thereby eliminate the possibility of part-time or short-term work causing an actual decrease in overall annual income compared to unemployment. Instead, people under such partial contracts would be allowed to keep part of their universal credit so they would not lose out on the move towards regular work. Continue reading “The Schizophrenia of Mr Duncan-Smith”

Boycotting Israel: What Is To Be Done

Electronic Intifada has run an excellent article outlining the historical background of the divestment and boycott campaign against Israel. When the regime of the NP in South Africa implemented the ‘apartheid’ policy of racial segregation, total disenfranchisement of non-whites and open and concealed warfare against left wing forces, the head of the African National Congress openly called for a campaign to boycott South Africa. This campaign was extraordinarily succesful on the part of the common people as well as intellectuals in Europe and America, despite ongoing support for the reactionary dictatorship in South Africa by the US government and some right-wing European parties. From the early 1960s on, the boycott first and foremost took the form of a campaign to ‘divest’ from South Africa, that is to say to withdraw any capitalist investment in that country on the part of pension funds, city boards, and individual corporations in order to economically undermine the basis of the South African regime. The United Nations General Assembly passed a resolution in 1961 to the effect of calling for economic sanctions against South Africa for the apartheid crime, but predictably, rather than taking economic action against a ‘friendly country’, the Western countries decided to boycott the GA meeting instead. Because of the persistent refusal to implement divestment or sanctions on the part of Western governments, whether of the right or ‘left’ (such as Harold Wilson), it took until the early 1980s for the international campaign for boycotting South Africa to reach the necessary critical mass. Eventually the strength of the anti-apartheid movement was so great that a Republican US Congress passed the Comprehensive Anti-Apartheid Act in 1986, overriding their own President Reagan’s veto. Continue reading “Boycotting Israel: What Is To Be Done”

European Strikes Confront the Assault of Capital

All throughout Europe the organized peoples have been on strikes and protest actions against the massive assault of capital against the so-called ‘welfare state’. Governments from the United Kingdom to Greece have sought to greatly reduce the meaning and scope of the variegated systems of protection that exist in Europe against the depredations of the ‘free market’, using the great financial crisis produced by that same ‘free market’ as an excuse. They seek to support private capitalists such as banks and insurance companies by aiding them with enormous loans, while at the same time using the state debt this entails as a pretext for declaring insolvency in the face of popular demands for relief against the effects of the crisis and the rising unemployment. In so doing, they have however been forced to show their true face more than in these days most liberal governments like to do: they have brazenly and openly declared the maintenance of the profit system to be of greater importance than the well-being of the citizens whom they supposedly represent. This is the true ‘dictatorship of capital’, and more and more the peoples of Europe are seeing it for what it is. Continue reading “European Strikes Confront the Assault of Capital”