Showing posts with label Welfare. Show all posts
Showing posts with label Welfare. Show all posts

Monday, 26 April 2021

Beyond the Growth Imperative

 


Written by Olaf Bruns and first publish at Green European Journal

For 30 years, environmental economist Tim Jackson has been at the fore of international debates on sustainability. Over a decade since his hugely influential Prosperity Without Growth, the world is both much changed – reeling from a pandemic and with unprecedented prominence for environmental issues – and maddeningly the same, still locked in a growth-driven destructive spiral. What does Jackson’s latest contribution, Post Growth, have to say about the way out of the dilemma?

Tim Jackson’s new book, Post Growth: Life after Capitalism (Polity Press, 2021), follows his ground-breaking Prosperity without Growth (2009, updated in 2017). Whilst the previous work reflected, partly, the austerity-driven answers to the Great Recession, Post Growth falls into a different world. It is a world where the recognition of climate change as the greatest challenge facing humankind is moving towards consensus. In the United States, even the Republican Party’s younger members are looking for ways out of the corner into which the party has manoeuvred itself.

It is also a world where the Covid-19 pandemic has not only taken many lives and destroyed many livelihoods, but – via the need for state intervention – has also dealt a blow to the gung-ho neoliberalism that is one of the main culprits of financial chaos and the looming breakdown of planetary life-support systems.

US President Joe Biden’s rescue plan as well as the EU’s Next Generation pandemic recovery fund are questioning the free-market paradigm that has held sway the since the Reagan-Thatcher area, and that had trickled down into centre-left politics as well. In parallel, from the Paris Agreement to the European Commission’s European Green Deal, environmental concerns that were condescendingly smiled upon until recently have now moved centre stage. The newly discovered role for the state and the emerging environmental consciousness might not be discussed at length in Jackson’s new book, but they are the backdrop against which it is to be read.

The good life

True to the idea of “post growth”, Jackson does not author a completely new book to join others in trapping dust on overburdened shelves. Rather, he deepens, fleshes out, and extends thoughts that were already present in his previous works. Post Growth is a next step, not away from the economy, but certainly closer to a host of other disciplines: from medical science, psychology, sociology, and anthropology to philosophy.

In that light, the subtitle of the book, Life after Capitalism, is chosen carefully: it is a book about life, about the good life, and how the “myth of growth” – the title of the first chapter – has led us astray from what actually matters in life.

But are philosophers the ones to turn to when the wounds of an economic crisis are still raw, when a health crisis has just struck with unknown vehemence, and another crisis, unimaginable in all its consequences, looms on the horizon?

Well, following Jackson, the figures we have turned to for the past decades – mainstream economists – are the very ones who brought us to the current conjuncture of multi-layered crises. In the early pages, he quotes the standard bearer of neoliberalism – and, let us not forget, winner of the Nobel Prize in Economics – Milton Friedman’s infamous bon mot, “the business of business is business”. Much of the book is dedicated to untangling the anthropological lunacy of an economy that serves profit rather than the people, their subsistence, and, ultimately, their purpose in life.

Limits to growth

Capitalism, to get the other word in the subtitle out of the way, bumps into another problem: the limits of what planet Earth can take, what the Club of Rome already called “the limits to growth” back in 1972. It relies on growth and, to keep the wheel turning, on constant expansion into new territories, commodifying whatever lies in its path. Jackson trails, with a pinch of scepticism, Rosa Luxemburg’s critique of Karl Marx here. Capitalism’s claim to social progress depends on high growth rates to finance the redistribution of wealth.

The wheel must turn ever faster. However, as Jackson writes, “the peak growth rates of the 1960s were only possible at all on the back of a huge and deeply destructive exploitation of dirty fossil fuels, something that can be ill afforded […] in the era of dangerous climate change”. Hence the dilemma: growth either stops fulfilling its meagre promise of prosperity for all, or it destroys the planet. Or both.

Jackson, for one, is doubtful that economists can shepherd us out of the impasse. He only slightly caricatures when he writes, “their message is that only growth can deliver us from the mess growth itself has brought us in” – but, this time, a “green growth”, where technological innovation will allow us to “decouple” from environmental destruction.

Green growth hubris

While Jackson does not deny that the destructive intensity of a given economic output can be lowered, he reminds us that the planet does not care about relative efficiency: what matters is humanity’s overall footprint. The equation is simple: if GDP grows faster than emissions per given output decline, then the emissions keep spiralling higher regardless. Hoping for a technological miracle to solve the problem means betting on technological “efficiency” outrunning scale faster than it has ever done in the past, and doing so indefinitely into the foreseeable (and unforeseeable) future.

There is a call for “ecological investment”, but altogether, Post Growth is a little light on the question of whether another growth is possible – one driven by health, education, culture, and community work rather than the increasing production of stuff. Notwithstanding, Jackson’s equation is the yardstick against which the EU’s Green Deal – sold as a “growth strategy”, and essentially one reliant on green tech – needs to be examined.

Rather unsurprisingly, fresh data concedes the point to Jackson. Recent research has shown that meeting the Paris Agreement’s goals requires that carbon emissions fall every two years by an amount equivalent to the shrinkage caused by recent lockdowns. However, the world seems to be heading in precisely the opposite direction.

The International Energy Agency has shown that as soon as the first lockdowns were lifted, emissions returned to their upward trajectory. In December 2020, carbon emissions were already higher than in December 2019. For Jackson, green growth is more hubris, comparable to former US President Ronald Reagan’s principled refusal to even envisage such a thing as limits to growth.

Dead and kicking

Perhaps prematurely, the chapter analysing the overarching economic system asks, “who killed capitalism?”. Jackson’s straightforward answer is capitalism itself. Its downfall is “the result of its own obsession with growth”. Unbound neoliberalism, untethered from rules, unbothered by purpose, oblivious to limits, has driven us to the verge of social and ecological disaster.

Here Jackson follows economist Wolfgang Streeck, arguing that capitalism, to the extent that it is still around, is a dead man walking. The point, however, is that even in intensive care, it continues to give a severe kicking to the planet and humans alike.

This reflection takes us to where Post Growth is at its very best: if capitalism and its growth addiction were only trashing the planet, it would be bad enough. But it gets truly vertiginous upon realising that capitalism also fails to achieve its original purpose: generating happiness.

Chasing unhappiness

In times of shortage, more is generally good. But when there is too much, more becomes a recipe for disaster. States pursue GDP growth based on the “assumption that money is a good proxy for happiness”. Yet sociology and psychology tend to corroborate the popular wisdom that “money cannot buy happiness”. Only in a few well-defined circumstances does GDP growth trigger an increase in happiness.

However, the evidence that happiness increases and decreases with equality in societies is solid. Closing the equality gap should therefore be what societies pursue, precisely for utilitarian reasons. With a host of scientific disciplines and data, Jackson exposes how capitalism structurally creates unhappiness. How, for example, the food industry has gamed our in-built dopamine response to sugar and fat, resulting in a world where “more people die of obesity than they do of undernutrition”.

But capitalism not only makes us fat, sleepless, burned-out, addicted to consumerism, lonely, unhealthy, and unable to concentrate. It also hits precisely what links most of us to the economy: work and our connection to what is produced.

Bullshit jobs

Over a long stretch, Jackson follows Hannah Arendt, who wrote in The Human Condition that “there is no lasting happiness outside the prescribed cycle of painful exhaustion and pleasurable regeneration. Whatever throws this cycle out of balance (misery as well as great fortune!) ruins the elementary happiness that comes from being alive.” Arendt’s distinction between “labour” (roughly, the continuous activity necessary to secure our biological maintenance), “work” (the creation of durable human artifice), and “activity” (our social role) speaks to the anthropological need for physical work, for an impact on the world of things and people.

Capitalism, however, denigrates labour, undermines craft and creativity, and trashes the intrinsic anthropological worth of objects that last. It needs to sell, always more, and is therefore inimical to values like durability. As Jackson points out, “the enormous success of the advertising industry has been to persuade us that physiological needs are the very least of the functions delivered by clothing.”

Despite all the clapping in the early lockdowns, we still have precarious, underpaid, and disregarded labour on the one hand, and on the other what the late anthropologist David Graeber called “bullshit jobs” that provide neither satisfaction to the individual, nor benefit to society.

Automation will not save us either: instead of being a way to realise the economist John Maynard Keynes’s dream of a 15-hour working week, it is, as Graeber argued, the very reason for the existence of bullshit jobs. Automation could scarcely replace the labour-intensive activities that were recognised as the backbone of society in the early Covid period.

Care work does not generate enough profit to attract investment – certainly not courtesy of the markets – or pay decent wages. Returning to Hannah Arendt, Jackson reminds us how excessive automation has deprived us of the deeply human need for grasping and changing the world with our own hands.

Turning Kant downside-up

Immanuel Kant’s philosophical concept of the categorical imperative asked people to act only according to principles they can reasonably want to become “universal law”. Today, as sociologist Stephan Lessenich has reasoned, capitalism has turned this imperative on its head. Industrialised societies live and consume in such a way that they cannot hope to become universal: if it did, the breakdown of Earth’s life-support systems would become all but certain.

Post Growth can be read as a playbook of how to turn the categorical imperative back on its feet again, how to build a world where equal rights to production and consumption do not ruin the planet, and how to subordinate the economy to a broader reflection on its purpose.

“State intervention” may no longer be a swearword, but economic stimulus to boost growth and redistribute wealth will not achieve social progress unless paired with a deeper reflection on work, labour, and their place in society. Society is beginning to understand the environmental challenge, but greening the economy will not be enough if current consumption patterns persist. On this point, Post Growth shows the way, by placing Keynesian economics within the limits of what the planet can take.

Neoliberalism might have taken a hit, but it is still standing. Environmentalism might have made some inroads, but it is still only budding. Radical questions, radical answers, and radical policies are a historical responsibility towards the people and the planet. It is categorical imperative against growth imperative.

Olaf Bruns is a trained anthropologist, and has been a journalist in print, online, radio, and television for over 20 years. After 5 years as deputy chief of Euronews’ Brussels office, he is now – amongst others – deputy editor-in-chief of the Progressive Post.

Monday, 7 December 2020

In Defence of Universal Basic Income


Written by Anne Gray 

As a member of the Green Party of England and Wales (GPEW) Working Group on Universal Basic Income (UBI), I take issue with Huseyin Kishi’s post on this blog. It seems he fundamentally misunderstands the GPEW’s proposals and the relationship of UBI to free public services:- 

* UBI is not an alternative to free collective public services that Greens defend and expand, like the NHS, social care, education, public transport and free childcare. Both are affordable – it’s a question of fiscal policy and the will to implement it. 

* Kishi’s cost figure of £331bn is hugely exaggerated; it was the GROSS cost, of the GPEW 2016 scheme, not the NET cost which is close to zero after Exchequer savings from abolishing many existing  benefits and tax concessions. Similarly, NET costs of the 2019 scheme were under £1bn. 

* With the addition of the carbon dividend (explained below), the GPEW rates were considerably higher in the 2019 proposal than in the 2016 one Malcolm Torry criticised in the Guardian. But in both years, illustrative calculations for household types comprising over 95% of households showed no losses compared to the Universal Credit (UC) system. Kishi mentions the Joseph Rowntree Foundation’s (JRF) argument that poverty would worsen if a UBI was introduced without also keeping means tested benefits. 

What JRF criticised were the schemes Compass rejected in a 2016 report[i] that JRF co-funded. Compass concluded, either keep existing benefits or fund a higher UBI by using  a wealth tax or higher corporation tax – and modelled some alternatives to illustrate that. The GPEW’s 2019 proposal has higher UBIs and lower income tax  than any of Compass’s  schemes. 

It introduces a carbon tax, which funds a ‘carbon dividend’ as part of the UBI, and abolishes some tax concessions the Compass report didn’t. However, in case of unusual needs, the GPEW proposal had about £1bn in a discretionary fund for special cases – perhaps a 12-child family, or a complex household with two Carer’s Allowances. 

* Kishi argues correctly that housing benefit has become a handout for landlords. The Green Party would address this through rent controls. For simplicity, most UBI proposals treat housing cost and disability support – which also needs to be substantially increased – as a separate issue.

The New Economics Foundation argument about UBI versus free public services assumes we cannot afford both. 

Surely we can? 

Drawing on corporate and private wealth to augment public spending is vital to reverse austerity in public services. Fiscal sources need to evolve gradually in the context of moving towards more public ownership, less inequality and a greener economy - probably towards more wealth taxes and land taxes. 

Compass (2016 report, pp 19-20) points out that reversing the 2015/6 cuts in corporation tax and fuel duties would raise around £19.5bn, and that taxes on wealth fell considerably in recent years. Since buildings cannot move overseas, the Green Party advocates a land value tax in the  long-term, to enhance redistribution and public spending. One could add; cancel Trident and cut subsidies on fossil fuels amongst other useful savings. 

Compass suggests replacing means tested benefits gradually, moving from an unconditional  supplement to existing benefits to a larger UBI. With reason, the GPEW says introduction of a UBI needs longer than one Parliament. The March 2019 Compass scheme[ii] envisaged long-term expansion of UBI  based on a ‘national wealth fund’ – income-earning public sector assets plus levies on corporate and private wealth. This would be a useful successor to a carbon tax, which if successful in reducing emissions would yield less over time.

UBI would be massively popular for two reasons: ending the ‘poverty trap’  and its abolition of benefit sanctions and means tests. Freed from the huge ‘marginal tax rates’ caused by benefit withdrawal at 63p of UC for each £1 earned, more people would take work even if casual or insecure.  

Claimants suffer untold stress from means-testing and conditions about work search and job-centre requirements, plus the five week wait for UC, threatening letters demanding repayments if the Department for Work and Pensions gets its sums wrong, and criminalisation of people who don’t report changes of circumstances when earnings vary from week to week.

The JRF critique of  Compass’s ‘full UBI’ proposals - the ones Compass rejected because they increased poverty – argues that the current benefit system achieves better targeting of monies at the most needy. Mainly because abolishing the personal tax allowance – a major funding source for UBI - makes the lowest incomes very sensitive to the new income tax rate. 

The rejected Compass schemes had a 30% standard rate plus national insurance at 12% on all income above the exemption band; GPEW 2019 has 32% ‘all in’ with no extra National Insurance. Compass’s latest (2019) proposal had standard  income tax at 23%, but  only 15% for the first £11,850 earned. The GPEW had instead a tax-free earnings band of at least £1000 at the bottom of the scale, partly to save people with tiny earnings from doing tax returns.

Perfect targeting at the poorest is impossible without high withdrawal rates of benefit on low incomes.[iii] UBI evens out marginal tax/withdrawal rates on income (counting the benefit taper rate for UC as a kind of tax). They fall for people dependent on state support, rise for those whose earnings help finance UBI. That fall in the effective ‘tax’ on the unwaged is crucial to fairer taxation and to ending the poverty trap. 

UBI is ever more needed in the post-pandemic period – to deal with mass unemployment and job insecurity, plus providing part of a fiscal stimulus. Its unconditional  nature is crucial. There are many UBI schemes and many ways to fund them. The JRF’s critique didn’t prevent Compass from initiating a major campaign for UBI to alleviate COVID-engendered poverty.[iv] It’s high time to join it and campaign for better public services as well. 

Notes


[i] Universal Basic Income; An idea whose time has come, May 2016, https://www.compassonline.org.uk/wp-content/uploads/2016/05/UniversalBasicIncomeByCompass-Spreads.pdf.

The GPEW 2016 proposal had much lower income tax than in the ‘full BI’schemes that this Compass report rejected. 

[iii] Kishi confuses this process with a means test taper – Natalie Bennett meant the tax take-back. 

[iv] https://www.basicincomeconversation.org/ 

Anne Gray is a member of Haringey Green Party and a supporter of Green Left

Wednesday, 25 November 2020

Universal Basic Income: Time for a rethink


Written by Huseyin Kishi

Senior Green Party Politicians proposal would increase poverty according to modelling.

Since 1983 the then Ecology Party, which was to be renamed the Green Party of England and Wales have argued for a National Income Scheme, later renamed the Citizen’s Income in 1990s and more recently known in the 2000s as the Universal Basic Income.[1] [2]In 2020 Jonathan Bartley in Bright Green heralded it as “...only universal and unconditional protection ensures that nobody is left behind.”[3]. Sian Berry opined “Universal basic income has been Green policy since long before I joined the party, and is exactly what it sounds like: a guaranteed income for everyone, replacing benefits in an unconditional way, which is ready and able to take care of your basic needs if a personal crisis hits.”[4]

For Greens it wasn’t a widely discussed policy until 2015, in which it was declared by the Guardian as “...The renewed focus on the cost and feasibility of a citizen’s income, including the way in which it would differ from the government scheme to integrate universal credit, demonstrates the extent to which Green policy is now being taken seriously. “

Baroness Bennett, who recently said in an interview with Green World “A universal basic income, to meet its proper definition, ensures that you can meet all of your basic needs with an income that comes to you simply for being a member of a society – unconditionally.” [5]

An idea whose time has come

For its proponents, it seems as clear as day for its implementation. A radical shift for welfare and the alleviation of poverty and unemployment. They then point to a Finish trial but a press release that was published in 2019 said “The positive evaluation may not relate to basic income as such but to public debate around basic income and to the fact that people were members of a selected group” adding “The Finnish experiment was about partial basic income targeting able-bodied people without work, it was not about universal basic income.” [6]

It did not do anything near what its proponents had argued – despite the positive headline in the New Scientist.[7] For the Green Party, in their 2015 manifesto they state “Scrap most of the existing benefits apart from disability benefits and Housing Benefit. Abolish the income tax personal allowance. Then pay every woman, man and child legally resident in the UK a guaranteed, non-means-tested income, sufficient to cover basic needs – a Basic Income”. [8] They followed this up in their 2019 manifesto by stating that it would be funded by a Carbon tax and additional payments would be made to those with children or were disabled. [9]

Impact

Molly Scott Cato said in her article for the Ecologist “...But a basic income would only provide fundamental security and would leave most people on lower incomes than they enjoyed before the crisis.”[10]

Moreover, Caroline Lucas in 2016, though in support of the policy, noted “A universal payment for all must not undermine additional help for those who need it most.[11]  The party’s own consultation paper in 2015 stated “It includes abolishing most existing benefits, abolishing income tax allowances, changing employees’ National Insurance, reducing tax concessions on private pension contributions, and replacing the current contribution-based basic State Pension (for existing pensioners) and the new single-tier flat-rate Pension (for new pensioners) with a non-contributory Citizen’s Pension.” It would still pay housing and disability as additional payments and the total estimated cost was £331 billion.[12]

At the time the Independent noted “The Greens have since admitted that it “would not be practical or right to carry out that change within a single parliament.”[13] Sky News declared “The party says this is a long term ambition rather than concrete policy going into the 2015 election - but the thought of giving millionaires more money is likely to be a voter turn-off.” [14]

Individualism over the collective

There is an established example of an income-subsidy, though means-tested, that provides some economic support. It is called housing benefit and has been place since the 1980s. Sir George Young, the then Minister of State for Housing and Planning, remarked in 1991 that: 

“Housing benefit will underpin market rents-- we have made that absolutely clear. If people cannot afford to pay that market rent, housing benefit will take the strain.” [15]

Housing benefit now costs £22 billion a year and does not lessen the risk of eviction, improve the quality housing, nor the energy, utility and tax costs either. As the Institute for Fiscal Studies notes: 

“...for most working-age people it covers a lower proportion of their actual rent than was the case in the past.”[16]

Housing benefit – far from merely taking the strain when it was believed that the market would later expand for all income-bands – continues to grow and has now become a private landlord subsidy. An aversion to capital spending in housing and the shift to income-subsidy has not resulted in a housing market that competes on price, quality and amenities. More concerning, due to changes in housing benefit from 2011, rather than payment going directly to the landlord payments were paid instead to the tenant, this resulted in landlord arrears.[17]  Rather than benefiting the poorest, over the last three decades it has increased the property portfolios of private landlords according to Shelter.

Returning to universal basic income, In 2015 Baroness Bennett stated in the Guardian that a citizen’s income would be withdrawn when a citizen’s income reached an unspecified level.[18] Milton Friedman, the free-market economist, also agreed with the Green Party in their 2015 and 2019 manifesto, and instead proposed a negative income tax in his book  “Capitalism and Freedom.” Rather than benefits: 

“...he wanted to give poor people cash rather than an array of welfare benefits. People could then use the money as they saw fit”[19]

Likewise, in 2018, the Adam Smith institute proposed “Basic Income would ensure that ‘capitalism and efficient redistribution can be vindicated in equal measure”[20]

Assets over income-subsidy

Senior Greens often refer to UBI as increasing security and choice – but in effect – as was seen with housing benefit; this isn’t guaranteed. In fact, when Joseph Rowntree Foundation undertook modelling of it. They found that

“Those wholly dependent on state support would be neither better nor worse off if a UBI were introduced at the level of the current safety net. Those with modest earnings would benefit most from having the new non-means-tested payment. “ adding that “...it is not possible to raise the revenue needed to support them from taxation ­– even by increasing the basic rate to 30% from 20%. The UBI schemes also INCREASE poverty for children, working-age adults and pensioners compared to the current tax-benefit system: child poverty rises by over 60%. [21]“.

Similarly, the New Economics Foundation found “making cash payments to individuals to increase their purchasing power in a market economy is not a viable route to solving problems caused by neoliberal market economics” they also note that  “If cash payments are allowed to take precedence, there’s a serious risk of crowding out efforts to build collaborative, sustainable services and infrastructure”[22]

Senior Greens have stated we need a radical shift in thinking about welfare – but it is clear that universal basic income does not serve progressive ends and in that regard shares more in common with conservative thinkers and supporters of neoliberalism. They should instead look to take a leaf out of Karl Polanyi’s work – who observed that markets are planned as the economy is embedded into society and thus shaped by the state – but there has been previous resistance towards this – with the exclusion of market forces in welfare and housing in the 1940s.[23]

In order to provide unconditional protection while accommodating the most vulnerable. We should move away from the individualist universal basic income and its substantive costs. Instead we should look at the long-term collective and public ownership of universal basic services. Assets such as housing, information and transport would benefit us all.  

More information can be found here: universal_basic_services_-_the_institute_for_global_prosperity_.pdf (ucl.ac.uk) 

Huseyin Kishi is a writer and photographer based in London. He is a member of Sutton & Croydon Green Party

Notes

[1]          https://green-history.uk/library/doc-archive/category/28-ep-manifestos

[2]          The Green Party | Social Welfare

[3]          Labour's failure to embrace UBI shows they haven't grasped the scale of the crisis | Jonathan Bartley (bright-green.org)

[4]          Sian Berry: This is the time to bring in universal basic income | Hampstead Highgate Express (hamhigh.co.uk)

[5]          The decade of universal basic income | Green World

[6]          https://www.helsinki.fi/en/news/nordic-welfare-news/heikki-hiilamo-disappointing-results-from-the-finnish-basic-income-experiment

[7]          Universal basic income seems to improve employment and well-being | New Scientist

[8]          Green.pdf (lancs.ac.uk)

[9]          Green Party Manifesto 2019.pdf

[10]          Coronavirus and the Universal Basic Income (theecologist.org)

[11]          The case for a Basic Income is growing | Caroline Lucas

[12]          Basic Income: a detailed proposal (greenparty.org.uk)

[13]          https://www.independent.co.uk/voices/editorials/general-election-2015-green-party-has-failed-make-its-mark-10196826.html

[14]          How Will Green Party's Medicine Go Down? | Politics News | Sky News 

[15]          House of Commons Hansard Debates for 30 Jan 1991 (parliament.uk)

[16]          Doubling of the housing benefit bill is sign of something deeply wrong - Institute For Fiscal Studies - IFS 

[17]          The impact of the direct payment of housing benefit: evidence from Great Britain (shu.ac.uk) 

[18]          Green party outlines plan for basic citizen’s income for all adults | Politics | The Guardian 

[19]          Negative income tax, explained | MIT Sloan

[20          Rising evidence for universal basic income — Adam Smith Institute 

[21]          Universal Basic Income - not the answer to poverty | JRF

[22]          Universal basic income: new study finds little evidence that it can live up to its promise | New Economics Foundation

[23]          https://www.dissentmagazine.org/online_articles/karl-polanyi-explainer-great-transformation-bernie-sanders

Thursday, 30 April 2020

May Day 2020 – Covid 19 and a Call for System Change




World capitalism, is only concerned with its own survival, it exploits and abandons the working class to the contagion. Capitalism can and must be overthrown - everywhere.

Capitalism is responsible for the losses caused by this epidemic. In all continents the chaotic cramming of rural people, in search of a wage to live on, in the frightening and insane urban agglomerations of capitalism, and the convulsive migration of people makes any preventive care impossible.

For years, medical science has predicted the worldwide spread of a new virus and its dire effects. However, epidemics can neither be avoided nor contained within present-day society. Capital, always in search of immediate profit, has no interest in predicting and preventing.

It has not set aside adequate stocks of medical devices and has not trained an adequate number of medical personnel. Indeed, it has drastically reduced them everywhere, forcing them into intolerable overwork; it has closed many hospitals and turned others into “companies”. Its imperative is always to save on the maintenance and care of the working class.

The expected contagion has finally arrived, upsetting a humanity completely unprepared to face it and shattering the latest misplaced certainties about capitalism’s ability to protect health and life on the planet.

In the face of the universal scourge, which can only be attacked with a coordinated world-wide plan of science and solidarity, each state does its own thing. Worse, the crisis intensifies the competition between national centers of capital and their hateful and inhuman selfishness. It exacerbates the trade war in the fear that competitors from other countries will take advantage of the situation to deprive them of market share. In this war between national bourgeoisies, workers have nothing to gain and everything to suffer.

Industrialists have postponed the closure of factories to the point where further delay was impossible: from China to Italy and France, to the United Kingdom and to the United States, which has seriously extended the contagion. Even when measures to close commercial and recreational activities were no longer postponed, the managers of the majority of industries found ways to circumvent the rules to continue production, apart from companies where it was convenient to close, finding easy loopholes in the ambiguous rules of governing blocs.

So, they forced workers to go to the factory, even in industries that have nothing to do with the health emergency, such as steel production, and to flock onto public transport, grossly dividing society along class boundaries: proletarians today are no longer even masters of their own lives. As in war, they must sacrifice themselves to the god of bourgeois profit.

While factories are kept open, strikes and worker assemblies are prohibited. The unions, which have sold out to the regime in the name of “national solidarity”, endorse the bourgeois dogma that reducing production “is not an option”. Be content with a little more soap and masks: a few dollars.

And it is true. In order to continue generating and appropriating profits, capitalists must infinitely grow the scale of production. For this reason, each company, without any agreement with the others in the sector, indeed at war with them, pushes the rhythm and scale of work to the maximum, in the vain hope of being able to find a buyer for the crazy growth of goods of all kinds, a deranged and anarchic system.

Capitalism does not produce based on what is needed; it produces based on the expected profit. The majority of goods produced therefore have no social utility and increasingly penalize the workers who manufacture them, the consumers who are driven to use them, and the environment, which is unnecessarily cluttered and intoxicated.

This irreparable and obvious absurdity must necessarily block all the apparatus for the reproduction of capital and commerce with increasing frequency. It is now a single and closely interconnected global machine, a monstrosity in which up to 95% of activity is useless or harmful.

In fact, in the course of the past year, well before the outbreak of the epidemic, the general, historical, centuries-old, inescapable crisis of the capitalist mode of production had arrived punctually and was already affecting all spheres of life and society.

So, it was not the plague that caused the crisis. Sanitary isolation, which is blocking the consumption of all the goods that are not really necessary for life, around the world and simultaneously, amplifies the pre-existing overproduction of goods, and is almost bringing the infernal cycles of capital accumulation to a standstill.

The panic spread among the bourgeoisie, who ran to sell on the stock exchange, while entrepreneurs were horrified at the decline of their profits. Desperate capitalists in all countries appeal to the State for orders, credits and commercial protection, as well as to help them defend against the workers’ struggle.

But states are nothing more than associations between capitalists and, in the end, they only derive sustenance from capitalist production. They are not above the economic laws of capitalism: they can only transfer wealth from one part of the ruling classes to the other. Or anticipate something that must come back sooner or later.

The failure of this political, economic, social system is so evident that even many bourgeois, in the scientific, political and religious fields, are calling for its profound reform: a different relationship with nature, a different way of producing and a different choice of what to produce: “hospitals, not weapons”, they say. All empty talk. As soon as the emergency is over, and maybe even before, everything will go back to business as usual. This system is as absurd as it is incapable of reform.

The ruling classes will not peacefully surrender their power or give up their petty privileges, the immense profits and the repressive paraphernalia of their states. The present upheaval of the rhythms of life must not only teach us the failure of capitalism, but that the working class can do without capitalism, this entire social and economic system. It is the bourgeoisie that needs the working class and not vice versa.

The international anti-worker solidarity of the bosses, who attack workers’ very existence, must be opposed with the international solidarity of the working class fighting for its emancipation and for the salvation of all humanity.

The working class will have to mobilize in all countries to defend itself from the disastrous effects of this crisis, to impose its longstanding demands through struggle:

- wages in full for the unemployed

- generalized reduction of working hours for the same wages

- regularization of the status of immigrant workers

- free health care for all workers

The working class, well organized in its true class unions and well directed by its party, the custodian of its long-established internationalist program, must succeed with its revolution in breaking through the thick shell of prejudices and forces of repression that still imprisons the new, communist society, which will be classless and stateless, and which is ready, robust and complete to free itself and spread to all the countries of the world.