Rjan:
Carryfast:
There seem to be a number of false conclusions there.Starting with an exaggerated view of the effects of oil dependency v supply.In which at least us from the mid-late 1970’s and the US were in a far better situation of self sufficiency than Germany for example.While for ‘some’ reason the German economy as usual seemed to suffer less from the 1973 on oil situation than ours did.When ours would have been expected to be far better insulated from that at least from the mid 1970’s.IE yet another example of the government not applying protectionist measures in which UK produced oil would have been expected to be kept in artificially higher supply in the domestic market at the expense of oil exports.Just to be clear, I’m not locating the problems of global capitalism as being fundamentally caused by the 1973 oil shock, it just triggered the crisis and the vampire finally struck back.
What I am saying is that it’s precisely an example of how when other states control essential components of the economic system, or if nobody really controls them, unmanageable disruption will regularly arise from that part of the system. If we respond entirely within our own political domain, such as by building big oil bunkers within our own borders, then prices will go up to pay for this, and they’ll just turn the supply taps off twice or ten times as long, or redirect the oil to their closer allies or opportunists waging a trade war, or the oil wells will be taken over or destroyed by external events.
As for the UK prioritising it’s own supply, that’s just a return to beggar thy neighbour. Other states, to avoid ruinous disruptions, then have to secure their own supplies (at any military cost), and the supplies they seek to secure militarily may well be ours. Or their economy collapses, and they become failed states, or hotbeds of guerrilla action, or so forth.
It’s only by integrated political control that such oil (or other resources) is secured properly, and distributed according to principles like fairness and need (and rationing, if required, is imposed in an orderly and legitimate fashion, and appropriate compensations and compromises made elsewhere at the same time if necessary).
As for Fordist re distribution resulting in less profits,that goes against all the laws of Fordist economics.
It resulted in less profits for the capitalists he put out of business, and it resulted in lower rates of return on capital. Clearly, a 5% return on £1m is better than 30% return on £1k, and with each iteration it takes longer to accrue the capital needed to fund the next iteration. And in some cases, it will be found that there isn’t a potential next iteration at all - because production is as massive as it can be, and the capitalist owners with their duplicate competitive endeavours have been reduced to the fewest numbers there can be (usually 1, the monopolist).
Another problem is that today there aren’t so many obvious unfulfilled consumer needs. Cars were things people obviously wanted, and by having the mobility offered by cars that itself created huge new economic potentials. Today, our economy can already provide for all reasonable needs (it’s merely a question of distribution). The rich don’t seem to have an abundance of new products that we’re all going to want in a few years and which will make us massively more productive.
When the fact is higher wages just result in higher economic growth and higher levels of employment and higher levels of consumption.Also bearing in mind that a 10% increase in just the wage component of costs doesn’t mean a corresponding 10% increase in ‘overall’ unit price of the product nor a 10% ‘overall’ reduction in the profit margin.
Ultimately it does mean that. If wages go up 10% along the full chain of production, then the unit cost will typically go up by about the same. That will act as a transfer from unearned income to earned income, because those who live on wages will pay higher prices but receive higher wages, whereas those who live on dividends will pay higher prices but not receive the same dividends as before (which is a loss relative to consumer prices).
That’s why the Tories and Blairites constantly want competition in consumer prices, because to reduce consumer prices they normally force down wages or aggravate the conditions of work that workers experience without putting wages up, but they do not force down profits and dividends, so wage-earners are typically disfavoured by consumer price competition whereas dividend-recipients are favoured.
As for international governmental integration and economic inter dependency as opposed to Nation State protectionism.We’ve already got that in the form of the global free market economy and the EU.
But the EU is currently underpinned by politicians who think in terms of neoliberalism and the free market. It’s not an iron law. The EU could just as easily be driven by socialists.
Firstly how do you reach the conclusion that us prioritising our own national interest,in the form of keeping UK oil for the UK market,instead of giving the stuff away to Europe,means automatic war
.To the point where Germany was actually better off economically after the 1973 ‘oil shock’ than we were.In just the same way that Greek debt and austerity v German prosperity is just an example of Germany looking after its own national interest all within the borders of the bs EU.
As for the idea that Socialism is the answer that’s as believable as your idea that 10% on just the wage cost component needs to be reflected by a 10% increase in total overall unit price at the factory gate. On that note I’d guess we’re seeing this from the point of view of an obvious Callaghan supporter v Shore.Unfortunately your bs Socialist Europhile vision having won out.With the state of the UK economy and democracy from 1979 to date,being the result.
While maybe hopefully things might be about to change in that regard in us getting the split we need in the Labour Party between Blairites,Socialists and Nationalists.