The left and right offer the same bankrupt capitalist model
Six million public sector workers wait with bated anticipation for the Comprehensive Spending Review (CSR) on 20 October 2010. Public sector cuts totalling £83billion are to be announced with some Government departments likely to see cuts in their budgets of up to 40%. The CSR is the Coalition Government’s response to the UK’s fiscal deficit totalling £153billion.
The near collapse of the capitalist financial system in 2008, with the then Labour Government bailing out banks wholesale, was a major contributor to the record deficit. Increased social security payments and lower tax revenues during the recession combined with subsequent fiscal stimulus spending to revive the economy were other contributory factors.
With the UK economy yet to claw back much of the lost output from the recession there is a real danger that the record public spending cuts will push the UK in to a double dip recession. Reducing social security payments in the form of universal state support like child benefit with 5 million people dependent on out-of-work benefits and the economy on the brink of another recession is fermenting civil strife, strikes and unrest.
UK policymakers are now resorting to currency wars – artificially devaluing the Sterling exchange rate as a last resort in order to stimulate export growth – exposing the absurdity of Fiat currency,
These economic events reveal the following:
- Both the left and right offer the same bankrupt capitalist model. At best the difference is in style alone – with Labour only differing from the Coalition in the speed and scale of cuts.
- Removing benefits and new taxes are never non-negotiable despite political posturing from both the left and the right
- Both the left and right safeguard vested business interests ensuring the majority of people do not benefit in times of boom while in times of recession and adjustment pay the price for capitalism’s failures
- Both left and right have presided over booms and busts showing that it’s an inherent feature of the capitalist model whichever party is in government
Systemic flaws in the capitalist financial model were exposed during the financial crisis. The subsequent recession and now the CSR reveal the cruel nature of capitalism, which oppresses the weak and vulnerable while making the rich even richer whether during boom or bust.