Capitalism: Destroying the economy & our future?

by El Bull Sun Jul 05, 2009 10:38

Limerick SP make a number of indisputable points in this article: FF did indeed squander the boom and it is the workers who are paying the price; the government is using billions of our money to save their banker and developer friends; and the banking sector certainly should be nationalised. For the sake of balance, it is worth noting that a significant proportion of the workers now paying the price in terms of their jobs actually voted for FF in the previous general election... so there is an element of “sow what you reap” when it comes to suffering for the recklessness of FF. However, that doesn’t take from the central point of this article, i.e. that capitalism’s pursuit of profit to the detriment of the rest of society is rotten and rotting.

So what about the SP proposals of no dole cuts and reducing the working week to 35hr (with no accompanying pay cut)? I have two questions that are crying out to be answered: how much would these proposals cost and where would the money come from?

Last week’s exchequer figures showed a deficit for the first 6 months of the year of about €15 billion. Now, to put that figure into context, overall revenue for the year is forecast to be €34 billion. This was described in a recent article by UCD Economist Ray Kinsella (link below): “Government expenditure for 2009 is estimated to come in at about €60 billion. Revenue is projected at about €34 billion. We have to borrow some €26 billion to keep the show on the road.” So, this government is overspending to the tune of one and three quarter times what it is earning.

Just imagine if a typical worker on the average industrial wage of €500 per week realised that he was actually spending €882 per week. Now, whereas the worker’s initial reaction might be to cut back on his spending, Comrade Barry’s advice equates to keep on spending, and in fact, increase the spending. This might be palatable if such spending was on capital infrastructure that would generate long-term returns, but our average industrial worker is overspending on day-to-day costs, with no plan of reigning in this imbalance.

I don’t think it’s too much to ask that Comrade Barry outlines how he would fund his proposals at the public talk next Wednesday. If the SP is to be taken seriously as a bona fide political party, it’ll have to move beyond simplistic populist “cookies for everyone” economic sound bites and give us something approaching policy. I’m looking for something along the lines of “Our proposals would cost €x billion” and “This money would come from ...” – am I asking for too much?

by Jolly Red Giant - Socialist Party/CWI Sun Jul 05, 2009 16:13

El Bull said
'how much would these proposals cost?'

Answer
A hell of a lot less than the bank bailout.

El Bull said
'where would the money come from?'

Answer
How about the 450 people in Ireland who made a combined €41 billion over the past three years (including €11 billion from property speculation) to now control a combined wealth of €63 billion.

Or maybe the companies that made €83 billion in profit in 2008 and pay the misely sum of €5billion in tax (i.e. about 6%).

El Bull said
'This might be palatable if such spending was on capital infrastructure that would generate long-term returns, but our average industrial worker is overspending on day-to-day costs, with no plan of reigning in this imbalance. '

Answer
The Government is overspending to bail out the bankers, developers, spivs and speculators. The average industrial worker has been robbed to the tune of €83 billion last year through the obscene profits of these companies and by the €41 billion over the past three years by these 450 people who created a property bubble and raked in obscene wealth that they couldn't even spend in a hundred lifetimes.

El Bull said
'If the SP is to be taken seriously as a bona fide political party, it’ll have to move beyond simplistic populist “cookies for everyone” economic sound bites and give us something approaching policy.'

Answer
I can assure you that saying 'make the rich pay for the crisis - not the working class' is not simplistic or populist - it is a clear statement of intent that the Socialist Party will fight to defend working class people and their jobs and services against the plan by the bosses and their political hacks to dump the cost fo teh crisis onto the backs of workers while they swan off in their yachts to their holiday villas in the South of Frace.

by Fred Johnston Thu Jul 09, 2009 12:13

Interesting to note how the FF/FG deal done post-elections at Galway City Council to keep Labour and other Lefties out had for motive, according to at least one newspaper, developers who intended to lobby for various projects and a return of the Salthill Airshow. So these sworn enemies got in to bed because local developers wanted them to. Any Dublin-based media coming up to see how that works? Didn't think so. Any statement from Fine Gael?