SPC Newsletter 1st August 2013

The Socialist Party of Canada

Secretary’s Report for August 1, 2013

Email Report

• WSPNZ GAC meeting minutes for June received with thanks.

Good of the Movement

• The sales part of the July meeting was rained out.

• Next activity will be Word on the Street in September.

• Two introductory packages sent out.

Finances

Secretary’s expenses for July, $13.85. Donations of $50 anonymously, and $310 from the Glasgow Branch of the SPGB received with thanks.

Karl’s Quotes

• In the chapter on The Law of The Tendential Fall in the Rate of Profit, Marx highlights the contradiction of capitalism and discusses the real purpose of capitalist production, “ The true barrier to capitalist production is capital itself. It is that capital and its self-valorization appear as the starting and finishing point, as the motive and purpose of production; production is production only for capital, and not the reverse, i.e. the means of production are not simply means for a steadily expanding pattern of life for the society of the producers. The barriers within which the maintenance and valorization of the capital value has necessarily to move – and this in turn depends on the dispossession and impoverishment of the great mass of the producers – therefore come constantly into contradiction with the methods of production that capital must apply to its purpose and which set its course towards an unlimited expansion of production, to production as an end in itself, to an unrestricted development of the social productive powers of labour. The means – the unrestricted development of the forces of social production – comes into persistent conflict with the restricted end, the valorization of the existing capital. If the capitalist mode of production is therefore a historical means for developing the material powers of production and for creating a corresponding world market, it is at the same time the constant contradiction between this historical task and the social relations of production corresponding to it.” (Capital, volume III, pp. 358/9, Penguin Classics edition). A contradiction that must be rooted out by the whole of the working class acting politically.

Food For Thought

• A recent story on The Guardian website claimed the US Foreign Intelligence (?) Surveillance Court granted the FBI unlimited authority to access data on phone calls from April 25 to June 19. They are now collecting telephone records of millions of Verizon communication customers. In other words, privacy laws can be subverted any time the powers-that-be want. Of course, nobody other than those giving the orders likes it. There is a solution to a world of snooping on each other but it won’t be found in capitalism.

• Eighty-two-year-old Alan Gosling died after being evicted from his Toronto Community Housing Corporation subsidized apartment in June, 2009. He failed to keep up with paper work verifying his low- income status. Locked out, Gosling lived in a stairwell until he was then taken to a shelter where he picked up an infection that killed him. A recent enquiry into the treatment of seniors at TCHC homes found, “The current strategy of sending tenants a constant stream of letters, some of which use threatening language, needs to change.” So it took four years to come up with that little goodie. Under capitalism if you ain’t got the money (or you are useless to the production of surplus-value), you don’t count.

• Thomas Walkom of The Toronto Star in writing about the current recession, quotes Bank of Canada governor, Stephen Poloz, referring to Austrian economist Joseph Schumpeter who famously called boom and bust capitalism a process of creative destruction, “We’ve certainly had the destruction. But the creative side of the equation has been delayed” Agreed, but whose destruction are we talking about?

• The same article gives us a clue, “ Employment insurance has become particularly irrelevant. A new study by the Canadian Labour Congress calculates that only 35% of the jobless now qualify for EI. In Ontario, the percentage is 25, in Toronto 20.” (although everyone and their employers contribute!).

• The Brazilian saviour of the poor, Lula de Silva, a mineworkers’ leader, rose to become president of Brazil. Although he put in reforms to help the poor, not out of poverty, of course, and presided over a period of economic prosperity that made Brazil the new economic miracle for a while (surely a curse for developing nations) people are demonstrating in massive crowds that overshadowed the event, the Confederations cup of soccer. This shows again that no matter who gets control of power, if you are going to run capitalism, you are going to do it in the interests of the capitalists.

• A fire in a factory in north-east China, where 119 people died, seems to have been eclipsed news-wise by the collapse of a building in Bangladesh, but is no less terrible in its blatant lack of preventative measures. Many of the deaths at the Baoyuan poultry plant were caused by blocked and inadequate exits. As one survivor said, “ People were all rushing, pressing and crushing each other. I fell over and had to crawl forward using all my might.” This is similar to the infamous fire at New York’s Triangle Shirt Waist Factory in 1911 where 140 died because of a locked door. This clearly shows that nothing has changed in a hundred years of capitalism because the capital to fix it would have to come out of profits and that can’t happen. To emphasize this point The New York Times of Sunday, July 28^th. contained an article entitled, “Halfhearted Reform In Bangladesh”. The world pressure has prompted the Bangladeshi government to make union forming to counteract the rapacious demands of capitalism. Unfortunately, the changes fall far short of what is needed and will be essentially ineffective. Surely, it’s time to abolish a system that allows, no encourages, this monstrosity!

• The same paper (July 7) provided yet another example of a ‘tiger economy’ leaving the people behind. The Philippines growth of 7.8% and the rising glass towers is evidence of lots of money but work is scarce, low-paid, and seventeen million have left to find work elsewhere. More than nine million cannot afford the $135/month needed to eat.

• Meanwhile, research conducted by Equilar for the Times shows that the 200 top executives’ average paypacket came in at $15.1 million, a leap of sixteen per cent from 2011. For example, Leslie Moonves, CBS pulled in $60.3 million, Rupert Murdoch, News Corporation, $22.4 million, Lawrence J. Ellison, Oracle, $96.2 million, Marissa A. Mayer, Yahoo 36.6 million. Nice work if you can get it, and get away with it.

• Though some countries are getting too much water with flooding caused by global warming, in Egypt the government is worried they may not get enough. Their concern is caused by Ethiopia’s proposed construction of the $42 billion Grand Renaissance dam that might reduce the amount of water in the Nile. The Egyptian government said, “Egypt will never surrender its right to Nile water and all options to safeguard it are being considered.” Younis Makhyoun, the leader of the Islamist party said that Egypt should back rebels in Ethiopia or, as a last resort, destroy the dam. Whatever the outcome, it will not be good and underlines the primitive division of the earth into competing countries under our current system. A socialist world would manage resources for the benefit of everyone using the best scientific and common sense paradigms.

• Saudi prince, Alwaleed Bin Talal is suing Forbes magazine because in their list of the world’s billionaires, his fortune of $20 billion was underestimated by $9.6 billion, according to the prince. Consequently, he should be a few rungs higher on the rich list. How arrogant can they get?

• Seems Marx must have been wrong with his crisis theory. In “What’s Holding Developing Economies Down” by David Olive (Toronto Star, July 6, 2013) he quotes Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management, and author of “Breakout Nations”, as saying, “ Crisis gives birth to reform, which flowers into a boom, which matures into political complacency, which ages into a new crisis”. Nothing to do with the capitalist system really then!

• Relevant to the recent revelation that the US is spying on its own citizens and the governments of other countries, the New York Times (July 21) reported on two Italian hackers working on the Mediterranean island of Malta. They search for bugs, software flaws that governments pay hundreds of thousands of dollars to learn about an exploit. It allows them to break into the computer systems of their foreign adversaries. Of course, we all know that all countries are at the same game and that the US just got caught with its pants down. What a system that forces everybody to spy on everybody else just to keep up and compete.

• Garment factories in Bangladesh are not just killing people by collapsing and bursting into flames. They also dump their toxic wastes into rivers and canals that, naturally, drift downstream and contaminate drinking water for people there. So companies like Walmart, J.C. Penney, and H & M not only benefit from low wages and appalling working conditions, but also by having no cost or responsibility to keep the environment clean by properly disposing of their waste. It must be heaven for the profit takers, just what capitalism ordered!

• Staying with the environment, and contradicting all the clean, green Tar Sands adverts we are getting on TV, The Toronto Star (July 20) reported that Canadian Natural Resources has been unable to stop an underground oil blowout that has gone on for six weeks at Cold Lake, Alberta. So far, some 26,000 and counting barrels of bitumen and 30, 600 kilograms of oily vegetation have been removed. To say nothing of the ‘in situ’ or underground extraction technology called cyclic steam stimulation that involves injecting thousands of gallons of super hot, high pressure steam into deep underground reservoirs. Obviously, it’s a crazy thing to do and is an accident waiting to happen, but it makes money, for some.

Reading Notes

• We are all familiar today with the tax evasion antics of the rich, but it is nothing new. In “A brief History of Life in the Middle Ages”, Martyn Whittock writes, “Local landowners could remove their lands from royal taxation by setting up a monastic church, administered by a family member. This was clearly not in the spirit of how monasteries should be established and such monasteries were more of a tax loophole than a statement of individual piety.” (to put it mildly!)

• How far has humanity come in its still primitive stage? The same book states, “ In terms of life expectancy, life in early medieval England was comparable with the poorest less economically developed countries (LECDs) of the twenty-first century. In fact, when life expectancy for women dropped to 26 years in Sierra Leone in 2002, following a catastrophic civil war which had brought the country to the lowest point on the world rating of LECDs, it was one year longer than the estimate for women in the early Middle Ages. That same year, the male life expectancy in Burkina Faso was 35.3 years – about the medieval male average.” Obviously, we have a long way to go until we can call ourselves civilized.

For socialism, John