economics


In a speech given at the Global Labour Institute summer school in Manchester earlier this year, life-long trade unionist Dan Gallin stated:

The need of the hour is a serious challenge to global transnational capital and to the world order it has fashioned, but such a challenge cannot be mounted unless the movement recovers a common identity based on an alternative vision of society. (1)

Also adding:

Our movement is in a deep crisis, a two-fold crisis: a crisis of the trade union movement and a crisis of socialism, and we should be aware that these are related, so much so that it is impossible to deal with them separately.

Here I think Gallin is spot-on!  The reason organised labour cannot mount a serious challenge to global capitalism is due to a crisis of socialism which has had an inevitable weakening impact on the international trade union movement.  It therefore follows that in order to overcome the crisis in the trade union movement we first need to address the crisis of socialism.

Drawing on the work of Michael Albert and Robin Hahnel I will briefly explain why I think socialism is in crisis.  I will also propose an alternative economic vision to that of socialism (informed by ‘participatory economics’ theory) as a means of overcoming this crisis.  Finally I will describe how this new economic vision could be used to inform global unionism – presented here as an alternative to the current international trade union movement – as a means of organising the desperately needed challenge to the current insane system of capitalist destruction and greed. (more…)

Network member Mike Waghorne warmly recommends Asbjørn Wahl’s new book ‘The Rise and Fall of the Welfare State’, published by Pluto Press and available for browsing or purchase here. Mike writes:

Many unions will be offended by this book because Wahl criticises their ignorance of how the welfare state came to be won but also because too many of them remain overly committed to social dialogue in circumstances where it is no longer a valid model, given that ‘the other two sides’ have repudiated, in fact if not in PR stances, the consensus and class compromise on which it was built. (more…)

If you’ve been puzzling over this whole #Occupy thing, Guy Standing’s latest book “The Precariat: The Dangerous New Class”(1) is essential reading. If you’re a unionist or center-left politician who’s been wondering where the hell your membership base went (and how to win it back), ditto.

If Standing(2) is correct, then we can expect movements like Occupy to evolve and grow. Unfortunately, we can also expect a continuing revival among the extreme right. Hence the word “dangerous” in the title of the book.

At the heart of Standing’s book is the contention that a new class is developing. Just as the rise of the “proletariat” (or industrial working class) changed the face of the 20th century, so is the rise of the “precariat”(3) affecting us today. The implications of this shift are no less radical. Unionists who ignore this change, or cling to hopes of a revival of the 20th century model, are already following in the footsteps of the Guilds. (more…)

Along with so many unions and groups within the wider labour movement, the New Unionism Network has voted overwhelmingly to support the Occupy movement*. As a contribution, we are producing a series of leaflets by network members who have fully developed alternatives to the current system. (David Schweickart’s model here; Michael Albert’s model here).

Among the hundreds of unions and federations that have endorsed the movement and offered support are:

  • ITUC – the International Trade Union Confederation (the world’s leading international union body) (details);
  • WFTU – World Federation of Trade Unions (the second largest international body) (details);
  • EI – Education International – largest of the sector-based “global union federations” (details);
  • UNI global union – another of the global union federations (details);
  • ITF – the International Transport Workers’ Federation (details);
    (We are still trying to find out about the other global union federations)
  • AFL-CIO – the largest union federation in the U.S.A. (details);
  • SEIU – largest union in Change to Win – the second largest federation in the U.S.A. (details);
  • AFT – the American Federation of Teachers – largest union in the U.S.A. but independent from both of the federations above (details);

(Other U.S. unions…)

The movement went global in October. More than 2,500 Occupy groups are currently listed on the global hub, Occupy Together. However, OccupyWallStreet – the group who catalysed the movement in the U.S.A. – has since been evicted. Similar actions have closed sites across many other cities. There have been 1200 arrests in New York alone. With 2012 approaching, we are about to find out if this is a movement or just a moment. (more…)

“We are a movement that builds, not destroys.”
César Chávez, U.S. union organizer

Some people see history as a battle of ideas — each attracting adherents in a struggle for rational progress. Others see it as a battle of forces — each recruiting supporters in a struggle for power. Taken together, these two traditions have been busy lately — producing a powerful new critique of capitalism. It can’t be dismissed as the usual lefty rhetoric either… the contributors include a growing number of Nobel-winning economists, World Bank staff and consultants, senior figures at the IMF, Wall Street traders, corporate executives and other defectors from free market ideology. (1)

If you’re not keen on reading any of the key books in this critique (2), you could try watching The Corporation, Capitalism – A Love Story, Inside Job and/or The Shock Doctrine. Here are some extracts from another recent movie:


Between them, these writers and film-makers have revealed the dreadful costs of free market economics. They have shown its flawed rationale; its necessary links to crisis and despotism; and its recurrent failures in practice. They have put hard numbers on the transfer of wealth into the hands of those who had the most already. They have shown what this has cost the poor, and how it has left us all with a looming crisis in “externalities” that threatens our survival on this planet.

Too bad to be true? Remember – this is not just the view of “the usual suspects”. This is coming from those who were there when the decisions were made. It comes from the exposure of primary sources, first-hand testimony, key documents, independent reviews, official statistics, analysis by Nobel-winners, and even (especially since Enron) legal affidavits and court records.

BUT.

No matter how well-reasoned, criticism will get us nowhere unless it inspires action. As He-Who-Must-Not-Be-Named said: “Philosophers have merely interpreted the world… the point, however, is to change it.” (3)

The process of change, when it comes, usually features an escalation in protests and strikes. We are certainly seeing this. It is also accompanied by a thirst for new ideas. So what has been tabled in the past ten years, beyond calls for a return to social dialogue, state socialism, and/or the regulatory regimes of the twentieth century?

The point of this article is to look at four recent proposals for a new way forward. As you’ll see, each of them has something rather interesting in common. If you take nothing else away from this article, just make a mental note of one thing, right now: each of the proposals is predicated on the democratization of work. (more…)

Following the 2008 global economic crisis, many in the labour movement have been supporting a fundamental reform of taxation systems as an alternative to neo-liberal public spending cuts.

The campaign for ‘tax justice’ has, at its heart, the reform of the tax havens, a phenomena that has grown dramatically in recent decades and attracted the critical attention of many NGOs and academic researchers. Foremost amongst these is the global wide ‘Tax Justice Network’ (TJN), which provides much of the intellectual ammunition contained in Tax Havens – how globalization really works by Ronen Palan, Richard Murphy, Christian Chavagneux (Cornell University Press, 2010).

Richie Leitch reviews the book for us below. You can order a copy here. (more…)

I get carried away. I do. So when I say this is the greatest book ever about work (in all its forms), you probably need to apply a couple of filters. That said, I’d go one step further. Guy Standing’s new book “Work After Globalization: Building Occupational Citizenship” offers us the kind of foundation we need to launch a new social-democratic program. And let’s face it, the old one is long since dead. And starting to get a bit smelly. This review will attempt to summarise the book, but do yourself a favour, don’t take my word for it. You need to read this book for yourself. We’ve even arranged a 35% discount for you. Click here for details. And no, we aren’t taking a cut!   :) (more…)

The New Unionists of the late 19th century built trade unions as we know them by organizing the proletariat – the working class of the day. Similarly, today’s new unionists are beginning to organize the precariat – workers without security. To say this latter group represents the most rapidly growing sector in society entirely misses the point. The labour force has fundamentally changed. And according to many labour analysts, the real jolt is still to come:

“Most of the full-time jobs lost in this recession won’t come back. Most of the employees laid off in the past year won’t find permanent work. When the statistics catch up to the reality, people will be forced to confront the new normal.” [i] (more…)

meltdownFor many trade unionists the financial events of the last year have been troublesome, to say the least. What has been going on to create such economic turmoil: massive job loss, bankruptcies, credit freezes and incredible amounts of debt and bailout funds? Moral condemnation is easy – and certainly justifiable. But what lies beyond this – in the realms of analysis and political response? Paul Mason’s Meltdown: the end of the age of greed (2009) provides one answer, in its attempt to relate the spectacular economic events of autumn 2008 to long–term economic and political trends within contemporary capitalism. (more…)

faceless2The recent crop of stimulus packages presents us with a once-in-a-lifetime opportunity to compare economic strategies. The sums involved are staggering. How will we feel when we look back on this period in 10 years? Will we wish we had all adopted Thailand’s “trickle up” model, giving money straight to those who need it most? Or will we wish we had followed the US example, covering as many bases as possible? The European Union is turning the crisis into an opportunity, and taking significant steps towards a greener world. And then there’s the option of the big spend-up on infrastructure, as exemplified by countries like Norway. 

One thing is certain: unions must help bring economics under democratic control. The Age of Ideology is over. (more…)

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