The success of more radical politicians should not be a surprise, since the 1980s and the dawn of Neo-Liberalism the working class have suffered and inequality has widened.
Since the Thatcher era in the 80s, productivity has increased dramatically due to automation and technological advances. And whilst productivity rose, in soared the era of globalisation where workers wages have remained stagnant.
Keynes’s Golden Age vs Neo-Liberalism and the Washington Consensus:
A reason why we no longer tax the rich properly:
How capitalism has failed the majoirty: UK
^ In addition to this, 16 million working age people in the UK have less than £100 in savings, living paycheck to paycheck. Prior to 1980 the UK peoples were net savers, post 1980 you can see whats happened.
^ This chart shows that the majority of new income generated from the explosion of profits post 1980 has not been passed on to those who created those profits. It’s gone to our corporate elite, not the workforce.
How capitalism has failed the majoirty: USA
For a country that has no universal healthcare nor free education to spend that much on war does nothing more than create enemies with whom to fight. US total military spending + reserve = $1Trillion a year. For Comparison, Russia spends $60Billion. As does the UK. The banks however are making a killing off Arms in general.
What happened to executive pay post 1980: US
^ This doesn’t even cover their hard assets. This is just the excess cash they don’t know what to do with because there is virtually no return on investment to be found in the global economy and you can only buy so many shares before the returns do not match your outlay. It is now $12 Trillion and counting as of 2016 and its also a big driver behind a rising stock market above a stagnant global economy.
When wage theft took off the in the USA
UK- A mirror image
You can replicate this picture in most capitalist countries. A model exported via financial markets of the US & UK over the 1980’s and 90’s is now dominant. It is supply side economics or “neoliberal” economics as the media likes to say without a clue as to its history (nor the citizens of Chile murdered for its founding, but that’s another story).
Generally speaking, modern capitalist economics doesn’t give a damn how much money is in your pocket, you are only a consumer. Only when you can’t increase your consumption year on year by taking on more debt do the asset owning classes care (1929/2008) but only enough to pillage your country’s savings to allow them to keep lending you the wages you no longer get for what you produce for them per hour, and haven’t done since before 1980, never to change.
Indeed,it’s getting worse.
Points of interest:
66% of all shares globally are owned by 1% of the population. That 1% decide the board of directors who make decisions in their interests that effect the economics and thus lives of billions of people.
In the UK, half the working age population has less than £100 in the bank. Thats 16 million people. The next 4 million have less than £1000. These are working people, in their millions, that after working the entire year wouldn’t have enough left in the bank to pay for a new combi boiler. The USA and many other western nations are no better.
Question: Do I think going back to the laws and tax rates of 1945 -> 1980 (a return to Keynesian economics) will help? NO. If we reverse history with laws, when we are grey and mostly gone, the new generation of the 1% will use their wealth to undo everything working people achieved, as they have done many times before. The repeat of history has to stop if this world is to survive, the instabilities of capitalism have to end if all our people are to live with dignity. And you can only do that with systemic change.
How Modern Socialism can solve these problems, and what Corbyn wants
Along with this is a law that UK Labour party will pass that states that any company selling up, merging, off shoring, or closing, its’ workers will be given the option to take control of and operate the company or the buildings and equipment that the company has here if a multinational chooses to leave, and the public bank Jeremy will create will provide the loans to do so.
The corporations will not be allowed to take the equipment and resources the UK taxpayer subsidised if they leave. The workers left behind take that over. It’s called Democracy @ work and Germany already has similar laws including that 45% of the board of directors of a company employing over 1000 people must be taken from the base work force. All combined, it’s a major reason why their manufacturing hasn’t buggered off to China.
If the UK/USA had these laws by 1980 the last 40 years would have been very different indeed. It would have made it so much more difficult for capitalism to abandon the country’s in which it grew up, and with the tools and factories left behind turned over to the workers the corporate elites would have to compete with the workers they left behind for their UK market share which they would lose once the word got out in favour of the UK workers at X factory v shoddy Chinese goods from x Global Capitalist Supranational Corporation.
We are told three lies regarding Karl Marx & Socialism by our historians, teachers, parents, media, and the defenders and beneficiaries of capitalism:
The Media Says Socialism is:
1) Central planning
2) Government ownership
3) Single party rule i.e. the USSR on wards …
He never wrote a single word on these three topics above, nor did he ever propose “an economic model to follow”. He was a critic of capitalism. For the private sector, he wanted nothing less than democracy at work in order to save capitalism from itself and save us from capitalism. He saw and documented the future from 150 years ago, and our leaders response was to discredit him through manipulations of economic fact and history taught from the youngest age in the farthest schools for eternity.
His entire and only focus was on the problems and injustices of capitalism and how to solve them, this is why our ‘Captains of Capitalism’, our education, our historians and the media have lied to us for generations. His life and writing are a danger to the slave master relationship that the asset owning classes want regardless of the country where they control the show, capitalism promised to get rid of this slave master relationship which is a hangover from feudalism with liberty, equality, and fraternity and then it failed to do so anywhere on this earth, instead creating a global version of the hunger games with a trans boarder capable elite.
In summary, Capitalism, has collapsed twice in 75 years and had 11 downturns in between for the USA, 6 for the UK, now entering the 12th/7th since the depression. We need to move far quicker than we are at reclaiming our economies for the many not the few.