April 2011 - Centre for Civil Society - University of KwaZulu-Natal

and Social Research (a think-tank traditionally close to the Treasury),
writes: “Given this economic weakness, and the large amount of spare
capacity in the economy, stretching out the fiscal consolidation by scaling
back spending cuts seems reasonable”. He dismisses the idea that shortterm
deficit reduction is necessary to avoid a government borrowing crisis
as gross exaggeration: “…to liken the UK to Greece is scaremongering”.
Pointing out that there are already over a million young people
unemployed, he argues that the postponement of cuts and promotion of
economic growth would be a more effective policy.
However, it is still a capitalist policy: slow cuts and spread out austerity as
opposed to the ‘instant’ deficit reduction proposed by Osborne, that may
well push British capitalism into another downturn.
For a socialist economic policy
Some on the left have rightly raised the question of what is our
alternative. For instance, George Monbiot (writing in The Guardian, 6
March), says that we need to “unite behind what we want, not just against
what we do not want”. Monbiot proposes a policy based on a big increase
in taxation on the wealthy and big business, cuts in arms expenditure, and
a massive expansion in public services. He also advocates the creation of
green jobs through environmental projects. The proposed measures are all
desirable in themselves and, if implemented, would improve the
conditions of working people. It is possible that, given a deep economic
crisis and a mass working-class movement, a capitalist government could
concede some of these demands, if only temporarily.
But the policy advocated by Monbiot does not address the class character
of capitalism: big business, which operates for profit, would not tamely
accept a big increase in taxation, or a sustained expansion of expenditure
on welfare, education, the NHS, etc. Big business is already sitting on piles
of cash, because it is not currently profitable to invest in new productive
capacity. They would use all their economic and social powers to resist
‘punitive’ taxation and redistributive public spending on services for
working people.
We need not merely an alternative policy, but an alternative to the
current system, which is based on profit and the anarchy of the market.
We need an economy which meets the needs of the majority. This raises
the question of control of the economy, which could only be achieved
through nationalisation of the banks and the big monopolies in the
manufacturing and service sectors. The commanding heights of the
economy should be run on the basis of a plan by democratic bodies made
up of elected representatives from trade unions, community groups,
consumer organisations, etc. Successful socialist planning would also
require collaboration with the workers of other countries to begin a
process of economic planning internationally.
Socialists are at the forefront of the drive to build an effective mass
movement against the cuts and, at the same time, we raise the need for
clear, socialist aims.
www.socialistworld.net
Popular protests in Burkina Faso
Lila Chouli First Published in Pambazuka 7 April 2011