Archive for the ‘Economics’ Category

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The following article first appeared in issue #6 of revolution magazine, May-June 1998.  Although nearly 20 years old, the article – which is actually based on talks given between 1995-97 – unfortunately remains highly relevant.

by Philip Ferguson

Over the last few years the term ‘political correctness’ has started to enter the vocabulary here.  Originating with a layer of liberals and leftists in the United States, politically correct practices and outlooks have gained a hold among elements of the professional classes in New Zealand.  The Anna Penn case in 1993, in which a trainee nurse was expelled from the nursing course at Christchurch Polytech for allegedly being “culturally unsafe”, and several cases in other nursing schools and social work courses, have garnered widespread media coverage.

In many ways, political correctness is stronger in New Zealand than anywhere else in the world.  It has become an important industry, with lucrative financial rewards, for a host of touchy-feely middle class liberals.  We have a range of counsellors now operating in most spheres of human problems, along with various consultancy agencies and individuals doing very nicely for themselves advising establishment institutions on how to be “culturally sensitive” to the people upon whose oppression these institutions depend.

In a real sense, political correctness in New Zealand has become the new (more…)

Tame Iti and mate Jenny Shipley, the Tory prime minister of NZ at the time.

The article below first appeared in issue #14 of revolution magazine, dated Xmas 2000/March 2001.  The introduction to the article stated that it argued “Trendy liberal race relations nostrums are more about social control than emancipation”.  Footnotes have been added for this re-publication. 

by Philip Ferguson

From cultural safety in nursing training to the banning of vegetables from primary school play groups – use of vegetables to make, for example, potato stamps is now regarded as ‘culturally insensitive’ because ‘traditional’ Maori society didn’t use spuds for such frivolous activities – Maori culture appears to be increasingly important and respected.

Virtually everyone from the far left through to much of the National Party (with the exception of the minor-league redneck element typified by the now-retired John Banks)[1] appears to be in favour of cultural diversity and the ‘empowerment of Maori.

Yet, as has been noted in this magazine before, the cultural revival coincides with a worsening of the actual material conditions of the majority of Maori (see, in particular, revolution #7) and the collapse of old forms of collective class organisation.  It is in this situation that some Maori have retreated into idealised versions of the past.  This retreat coincides with an interest on the part of the ruling class in finding new forms through which to mediate conflicting interests and establish social control in the midst of the decay of society itself.

Changing ruling class ideology

The ruling class ideology today is clearly not the one which existed in the decades before 1984 and was reflected in commitment to the welfare state, monoculturalism and the kind of old-fashioned patriotism and nationalism epitomised by powerful right-wing groups like the Returned Servicemen’s Association (RSA).

Today’s ruling class, for instance, actively promotes multiculturalism, liberal pluralism and has no problem with homosexuality and other things that were taboo in the past.  A lot of formal legal inequality has been abolished as it was an obstacle to the needs of a new round of capital accumulation and the new style of managing an increasingly fragmented society.

For someone seen as right-wing economically, such as recent National Party prime minister Jenny Shipley, ‘respect for difference’ is a key principle, as she made clear when (more…)

by Michael Roberts

Financial markets may be booming in the expectation that the US economy will grow faster under president Donald Trump. But they forget that the main emphasis of Trump’s programme, in so far as it is coherent, is to make America “great again” by imposing tariffs and other controls on imports, and forcing US companies to produce at home – in other words, trade protectionism. This is to be enforced by new laws.

That brings me to discuss the role of law in trying to make the economy work better for bourgeois interests – an area that has been badly neglected. How is the law used to protect the interests of capital against labour; national capital interests against foreign rivals; and the capitalist sector as a whole against monopoly interests?

Last year, there were a number of books that came out that helped to enlighten us both theoretically and empirically on the laws of motion of capitalism. But I think I missed one. It is The great leveler by Brett Christophers, a professor in human geography at Uppsala University, Sweden.1 His book looks at the nature of crises under capitalism from a refreshingly new angle. He says that we need to examine how capitalism is continually facing a dynamic tension between the underlying forces of competition and monopoly. Christophers argues that, in this dynamic, law and legal measures have an under-appreciated role in trying to preserve a “delicate balance between competition and monopoly”, which is needed to “regulate the rhythms of capitalist accumulation”.

Monopoly/competition imbalance

He reckons this monopoly/competition imbalance is an important contradiction of capitalism that has been (more…)

Regina Elsea and her fiance

by The Spark

Regina Elsea was killed last year when the robot she was trying to repair suddenly moved and crushed her. She was working for Ajin USA, a car parts company, earning $8.50 an hour.

Chambers County, where the company was located, offered tax breaks and other financial aid to companies to locate there. Encouraged by such free taxpayer-backed money, car companies, with their high-tech robots and technologies, started to move to the region. People were hired, but most of the wages remained very low. In addition, much of the work was supplied through staffing agencies and was temporary.

Elsea was not an Ajin employee. She was employed through a (more…)

Che was an avid reader and student of the founders of scientific socialism.  At the end of his short political biography of Marx and Engels, Che presents the following recommended reading list:

Marx

Introduction to A Contribution to the Critique of Hegel’s Philosophy of Right (1844)

Economic and Philosophic Manuscripts (1844; published in 1932)

The Holy Family or Critique of Critical Criticism.  Against Bruno Bauer and Company (1845), written with Engels

The German Ideology (1845), written by Engels

The Poverty of Philosophy (1847)

Wage Labour and Capital (1847)

Manifesto of (more…)

by Tony Norfield

At a recent talk I gave on imperialism, there was an interesting question raised on what I thought about Marx’s theory of value. This seemed to be prompted by my reference to Marx’s theory, while I spent little or no time using the terminology in Capital. So the logic of the question was: what is the point of Marx’s theory if one can do without it when explaining what is going on in the world?

Partly, the question is answered by saying that one does not always have to use specialist terminology to express ideas. For example, I have found it to be simpler in presentations to avoid Marx’s term ‘fictitious capital’, because that concept would take some time to explain properly and most people are not familiar with it. Even those who are commonly misunderstand it. Instead, I usually develop the same ideas more directly through discussing the role played by equities and bonds and their relationship to what the economy produces. However, the question needs to be put in a broader context.

Marx’s value theory analyses social labour under capitalism and the increasingly odd forms that it takes as capitalism develops: from being represented in the prices of commodities, to being the source of interest, profits, dividends, rents and tax revenues, to underlying, in an even more distorted fashion, the prices of financial securities. Marx’s theory shows how the capitalist market gives the system a particular dynamic, one that leads to the monopolisation of production and the creation of a world market as capital accumulates. The labour embodied in commodities may not tally directly with the prices they command in the market, but those prices remain strongly influenced by changes in social productivity. Furthermore, we get a longer-term process by which barriers to capitalist production are set by the (more…)

1054Thanks to Barrie Sargeant for passing the following statement on to us. 

IUF (Uniting Food, Farm and Hotel Workers Worldwide) Statement, March 3:

Four hundred workers in Dunedin, New Zealand have been fighting to save their Cadbury plant since parent company Mondelez announced on February 15 that it plans to close the facility. Cadbury Dunedin is the city’s largest private sector employer, and indirectly supports a far larger number of jobs.

The former Kraft Foods Inc. bought UK-based Cadbury in 2010 in a takeover that was financed with massive debt. When Mondelez was spun out of Kraft in 2012, that debt remained on the new company’s books. Mondelez workers around the world have been paying for the takeover with sell-offs, closures, outsourcing and downsizing to fund outsize returns to (more…)