Editorial

Who pays for the crisis in capitalism? Certainly not those who helped turn what would have been an inevitable downturn in the economy into a recession and probably a full scale depression. They will have “crisis-proofed” their life styles based on hugely inflated salaries and bonuses, such as Sir Fred “the shred” Goodwin, late of the Royal Bank of Scotland, who was paid 1.3m and 2.9m in bonuses in 2007 - more than most of us will spend in a life time.

Working families have been sucked into capitalism in a way they could never have imagined 30 years ago. Starting with Thatcher and continuing under New Labour, our homes and pensions have become linked to the uncertainties of an economic system that was never intended to spread wealth, but rather to concentrate it. It is bad enough to lose your job or to be worried about losing your job, without the added fear of what is happening to your home and your pension.

Gordon Brown describes the crisis as if it is a natural disaster like a tsunami – unfortunate but no one is actually to blame. Rather than questioning the economic system that created it, he instead calls for the IMF to provide “an early warning system” to alert us to future economic crises. While the crisis is far from natural, the financial meltdown is like the tsunami in one respect. There are land grabbers and other vultures waiting to benefit from the misfortune of those worst affected.

Unsurprisingly, this issue of the Citizen focuses on the current crisis of capitalism, on its causes and on how the Left should respond. The sheer magnitude of the sums of money involved are highlighted by Prem Sikka as well as the mammoth ineptitude of government responses. Prem offers an alternative set of measures including, setting a maximum wage, restoration of trade union rights and a serious strategy for re-distributing wealth to those who actually spend it.

Ögmundur Jónasson of the Icelandic Left Green Movement exposes how, in a cynical attempt to show himself as a ‘strong‘ leader in times of crisis, and to distract attention from the nature of global capitalism’s inherent instability, Gordon Brown used terrorist legislation to force the people of Iceland to carry the can for the failures of financial speculators. Ögmundur argues that international solidarity can help us weather this storm and rebuild the movement for socialism.

Bill Butler, looks at what the Scottish Parliament might do in an effort to address some of the problems highlighted by Prem Sikka and John McDonnell and also points out that at the very least we need a Scottish Investment Bank, a reversal of the SNP’s funding squeeze on local authorities, more regulation, more social housing and more public ownership – in particular the railways.

John McDonnell considers how not only in the immediate crisis but in the 12 years in power, New Labour have failed working people. He highlights the fact that wealthy men living in Kensington and Chelsea live on average 13 years longer than men in Glasgow and women from the same area ten years. He calls for democratic control of our economy at every level and the establishment of democratic rights for trade unions at the plant level.

Democratic rights for trade unionists is also the theme of Lynn Henderson’s piece. She reminds of the first and arguable last radical measure undertaken by the New Labour government, the restoration of rights to the workers at GCHQ to join a union, removed 25 years ago by the Thatcher government. Their struggle is celebrated by a plaque in the Scottish TUC. Lynn goes on to argue that the Tory laws left in place by New Labour need to be repealed and new laws introduced which will allow workers to fight for fairer society.

John Gallacher describes how Lord Carter of Coles, who is described as having “substantial commercial experience”, has been appointed Chair of the Commission for Co-operation and Competition which will oversee the awarding of contracts to his old friends in the private sector. We have a Scottish equivalent in Sir Ian Byatt who is a “Senior Associate” of Frontier Economics, a consultancy that advises on opening up public services to competition and is at the same time, Chair of regulatory body for the Water Industry. These private sector businessmen are like children in a sweetie shop surrounded by rich public sector pickings.

The celebrations of the 50th anniversary of the revolution in Cuba have not diminished the campaign to free the Miami 5. Joanne Smith reports on the visit of two of their wives to Scotland and the continuing campaign of support.

We do not forget the unbearable suffering of the people of Gaza at the hands of the Israeli military. For a short time their situation replaced the economic crisis in the headlines. While it has fallen further down national news coverage we will continue our solidarity with their struggle.