building a movement against cuts

by Steve Ryan

So , the cuts continue, and every day new tales of slash and burn emerge from London Fire Brigade through the NHS to the Ministry of Justice.

The Left claim that this is the worst attack since the 1970s: depressingly the response is very far from that of the 1970s.

no escape from theory: remarks on the movement against cuts

by Oleg Resin

The following text is just an invitation to begin collectively exploring the character of the credit-crunched state in 2010. To think that now, with cuts falling everywhere, there is no time for general discussions or to develop theory, is to artificially separate theory from action.

You can't smash the state like a bank's window...

This is an illusory idea, for each action involves theory. To rush to the streets with STOP THE CUTS banners is hardly avoiding having a theory, it is just avoiding awareness of the theoretical assumptions behind any campaign action.

the cuts agenda and ‘social capital’

by Dave Spencer

When we are talking about building communism from below, we need to know our starting point – the state and the consciousness of the working class.

One of the greatest influences on the theory of this matter and on the consequent policies and actions of local government and of workers in the voluntary or “Third” sector is Robert Putnam’s book Bowling Alone (2000). In it Putnam introduces the term “social capital”. By this he means any type of social or community engagement whatsoever – formal, informal, to do with friends, work, the family, hobbies, faith, politics, sport, the community. In other words social capital refers to how society works at grass roots, street and community level.

a ripple in the storm

Joe Thorne reports on anti-cuts initiatives in Hackney

On the last day of June, nearly fifty trade unionists, socialists, and community activists met in an old church hall in Hackney, east London.  We came together to discuss the wave of public sector cuts which has already begun, and how we can organise to push them back.

Around the city, and across the country, equivalent meetings have been held or will be held shortly.  Many of them, such as ours, will decide to establish campaigns of one sort or another.  The real content of these campaigns, just like the content of the meetings, will differ widely.

fighting the cuts: the task ahead

By Kojo Kyerewaa

The emergency budget comes as no surprise to most on the revolutionary left. The Coalition agreement, rather than holding back Conservative plans for dismantling the welfare state, has instead legitimised them in the public’s eyes.

we should put forward a vision for public services, not only defend the status quo

The day after the budget, polls showed that 57% of the population approved of the cuts. Although polls can’t necessarily be trusted, there was a distinct lack of protests.

who benefits from cuts?

by Adam Ford

European governments have been announcing public spending cuts almost daily since they agreed a €750 billion ‘rescue package’ for the euro currency a fortnight back. Greece (€30 billion), Spain (€80 billion), Italy (£24 billion) and Portugal (£2 billion), were this week joined by the new UK government, which slashed £6 billion with immediate effect, and promised the financial markets much, much more.

In their statement, Conservative Chancellor George Osbourne and Liberal Democrat Treasury secretary David Laws (who would later be forced to resign following expenses revelations) declared there would be a civil service “recruitment freeze”, along with substantial losses for regional and university budgets. The Transport department will lose £683 million, meaning a drastic scaling back of badly needed road maintenance seems inevitable.

stop demonising the unemployed

by Duncan Smith

Unemployment figures were up to 2.5 million by the end of March, and there’s no reason to think they won’t get any higher: some estimates put them as high as 3.3 million by the end of the year.

As well as rises in unemployment over the past few years, there have been increased attempts on the part of capital to project an image of criminality onto the unemployed, with high-level campaigns targeting “benefit thieves”. Such campaigns have the basic effect of portraying the unemployed as lazy, scrounging criminals, in what seems like a more-or-less conscious campaign to undermine solidarity on the part of the rest of the working class.

the deficit! the deficit! but what about unemployment?

by Oisín Mac Giollamóir

Listening to the debate in the media today you would conclude that there is consensus amongst economists that the key problem of the UK economy is the deficit. And the key question is how to cut it. And the key election issue therefore should be how to cut spending. This is not the case.

Working backwards, perhaps the most ridiculous issue here is the notion that the only way of cutting the deficit is by cutting spending. Fraser Nelson of The Spectator goes so far as to say, “Cameron should ban the word ‘deficit’ and simply say ‘overspend’ instead.” It would seem that some right-wing commentators can’t add. A deficit arises when revenue is less than expenditure. An equally good way of cutting the deficit is by increasing revenue, i.e., by raising taxes. Saying the deficit is an ‘overspend’ is as idiotic as calling the deficit an ‘undertax’.

obamacare: the nuns strike back

by Ernie Haberkern
Berkeley, California

The Health Care Reform bill has finally made it through the archaic legislative labyrinth our slave-owning founding fathers left us. Our modern corporate capitalists have found this unrepresentative system as useful as the slave owners did. One of features of the system is that it facilitates behind-closed-doors dealing that makes it extremely difficult for the average voter, or even the fairly well-informed voter, to find out what exactly the effect of the legislation will actually be. In fact, the result is usually so complicated that it often has consequences unforeseen and unintended by the authors of the legislation.

So what does this ‘reform’ actually amount to? In the first place, there is no regulation of the cost of drugs. In particular, the current twelve year monopoly granted to companies for brand name drugs remains in effect. This deal was made last August and in return the pharmaceutical industry, which played a major role in the defeat of Bill Clinton’s attempt to pass a health care bill, actively lobbied in favor of Obama’s plan.

a beginners’ guide to cuts

by Robert Kirby

In the last few months, the constant refrain from all the mainstream parties has been the need for cuts in the public sector. Lib Dem leader Nick Clegg promised “savage”  cuts at his party conference – before rapidly backtracking when his attempt at virility didn’t go down well with the party faithful. David Cameron has promised an “age of austerity”; an entire political era built around government belt tightening. George Osborne has threatened a pay-freeze for all public sector workers. And whilst Labour party figures like Peter Mandelson have complained that the Tories would be “gleeful” in enforcing cutbacks, their “responsible” brand of austerity will mean the same cuts in living standards for ordinary people.

The UK national debt is currently around £800 bn; around 60% of GDP, and is predicted to rise much higher in coming years. The government runs an approximately 12% deficit, meaning that a predicted £175 bn more will go out than come in. Around half of this deficit is structural – meaning that it is a permanent feature rather than a credit-crunch induced blip. This means that the increasing interest on government debt has to be serviced, a cumulative weight on the exchequer that will get worse and worse without action. The deficit could raise interest rates throughout the economy, cause inflation and potentially lead to a devaluation of the currency. From the perspective of the ruling elite, these figures make it seem pretty imperative to restore the economy to balance and competitiveness. But ultimately, capitalism isn’t about balance and competitiveness, but about profit.

‘giving jobseekers the support they need’

Joe Thorne introduces an anonymous testimony by a young unemployed person, in the context of the government’s plans for further ‘welfare reform’.

This is an account by a ‘customer’ of the Department for Work and Pensions – that is, an unemployed person seeking work.  In particular, the account describes their experiences at the hands of DWP subcontractor Action4Employment, or A4E as they are better known.  A4E administer elements of the New Deal Program; their treatment of working class people is something we can expect more of if the Welfare Abolition Bill goes through.  They also treat their staff appallingly.

The account is also valuable because it shows how different aspects of the ‘welfare state’ can intersect to create a labyrinth of abuse for disadvantaged working class people.  One example of this, rarely mentioned, is the poverty trap of temporary accommodation, in which parents of families who are housed by local authorities are penalised for working to the tune of hundreds of pounds a week.  For the testimony of some Hackney temporary accommodation residents, see here.

I have been a client of A4e and was appalled by how I was treated.  I will start by telling you a little of my background. I had hit rock bottom in my life, lost my job and was living in a hostel with a lot of debt and was trying to rebuild everything I’d lost. I was waiting to start university and had already been accepted. Because of the situation I was in at the time I could not afford to take a minimum wage job and was waiting for council housing to become available. I was in a supported hostel for young girls and if you start work while living there the weekly rent is extortionate.

Regardless of my personal circumstances I was forced to go to A4e and told I would lose my benefits if I didn’t attend. I already had low self esteem because I hadn’t been working for the previous 6 months and had tried to get a job that would cover all of my bills. I had even voluntarily taken up typing courses and had got my level 3 qualifications in the hope that I could get a job that paid enough. I was also waiting to start voluntary work at citizen advice but I couldn’t start there because of attending A4e.

week of action to stop the ‘welfare abolition bill’: 7-15 march

by Joe Thorne

A coalition of grassroots organisations, including Feminist Fightback, the Disabled People’s Direct Action Network and London Coalition Against Poverty have called a week of action against the government’s plans for welfare ‘reform’.  You can find out more about the government’s plans, and about the perspective of the workers charged with administering them, here and here.