Unemployment – profits first!
The first thing to note about unemployment is that it is a working class problem. A problem which only afflicts those who normally function as wage workers or employees.
The permanent non-producing existence of the capitalist class is not regarded as unemployment. They are a class which either privately, or through the State, function as an exploiting class. Their dominance over the means of production gives them a privileged position as wealth controllers, they have access to surplus value, and since as a class they are employers they never suffer from unemployment.
For unemployment to arise and be regarded as a dire social problem, a class must exist in society whose condition of life is mean and degrading. To be able to sell their working abilities for wages, to find an employer who will harness them like beasts of burden to his machinery of production, so that their lives may be spent producing wealth they do not own, is far preferable to being unused in a state of forced idleness.
Further, this alienated and dehumanised mode of existence must be their only means of gaining a livelihood. Such a class must depend on its income from wages or salaries, must have no property that would relieve them of the need to toil—no means of living save through prostituting their physical and mental energies on the labour market as employees.
Such a class exists all over the world. They are the working class.
Ideally they should be so conditioned to their slave position in life as to aspire only to demanding “the right to work”. To deny the slave his toil and his pittance is the last straw, the final insult. Capitalism for all its ills and woes can be tolerated with the occasional groan so long as there is work. Deny him his humanity. Deny him his personality. Deny him his freedom. This he can accept. But to deny him work is to affront him. He will produce all the wonders of modern science and technology. He will fashion and erect the most lavish hotels and luxury mansions, design and produce the most expensive jewellery and beautiful yachts, fine clothing and costly furs, wonderful ocean liners and a vast variety of delicate foods, and he will be content to live in squalid slums, wear inferior clothing, and eat adulterated food while “bargaining” only over the price at which he sells himself.
He will make do with the sham, the shoddy and the make-believe, so long as he is permitted to work. Work itself comes to equate with employment. And employment comes to equate with life.
This is the background against which unemployment must be understood. If unemployment means hardship, misery and deprivation, it is because poverty and insecurity are always with the worker.
Work is vital to the class of employees, not because they are docile, but because they depend upon wages to live. Their behaviour is determined by their position in the private property relationships of capitalism. They accept this position from want of an understanding of any alternative.
With this in mind, let us look at the current situation.
Shaking Out
Just a year ago the Sunday Times Business News published a report from Nicholas Faith. Unemployment was then 929,000 and it was thought “the gloom is not a temporary one”. It was pointed out that the present decline started in the mid-1960s, under the Labour government. The present government hoped for another upward turn, but it was feared that the investments boom of the 1960s was not sufficient to produce a big enough growth rate, i.e. more than 3 per cent, to take up the slack. The report blamed decades of neglect of capital stock for the low productivity rise, not (be it noted) the laziness of the workers. Capitalism is a system full of contradictions. Not least of its absurdities is the fact that those who run this system are forever screaming about insufficient growth rate, while at the same time nearly a million workers (in Britain alone) are thrown on the scrap heap and industrial resources grossly underused. All this while millions live in slums and many more millions in other countries starve.
In September 1971 Coventry had over 4 per cent unemployed; the figure still stood at 4.4 per cent in July 1972. For forty years Coventry was a boom town, with unemployment below the national average. The average for Great Britain in July was 3.6 per cent. The actual figure for the whole of Britain (early September 1972) was 930,123. Over a thousand more than a year ago, and the highest August figure for 33 years.
In Faith’s report the great “shake out” of 1966/67 is referred to. It is stated that the whole geography of post-war unemployment altered from that period and that “the whole of England outside the South East is now, by historic standards, a depressed area”. The Labour government was of course in power when the “shake out” began. It was in fact Wilson as Prime Minister who coined the phrase “shake out” in arguing that 400,000 was an “acceptable level” of unemployment.
The nationalised industries have been among the worst casualties. It will be recalled that the Labour Party sold nationalisation to the working class as a cure for various social problems, among them profiteering and unemployment.
Now, those mines and rail services which are unprofitable are ruthlessly closed. The process of “shaking out” many tens of thousands of miners and railway workers was at full tilt during Wilson’s Labour government. In Durham for example, miners have been redundant for ten years or more and “retired” whilst still unemployed, and therefore no longer figure in the unemployment statistics.
The changing pattern seems to indicate, according to the Sunday Times, a long-term change in the actual number employed, with unskilled workers over 40 years of age remaining virtually unemployable until they retire. There are 120,000 in this category.
Hopes Deferred
The National Institute for Economic and Social Research was said to be vaguely looking to 1973 and entry into the Common Market, for an investment boom. How vaguely might be seen from the fact that all the major European countries have unemployment problems of their own, with figures up on last year. They too could do with an “investment boom”. Unemployment is also up in the United States over last year, standing at 4,697,000 in April 1972, an increase of 203,000. Russia discreetly refrains from publishing any figures.
Those workers who trusted capitalism and thought they had secure jobs for life, among them the Upper Clyde shipworkers, those at Rolls Royce and in the mining and railway industries, not to mention the docks and many others, have been sadly disillusioned. Capitalism defies all attempts to control it. The Keyensian disciples of the Labour and Tory parties have had to stand powerlessly aside while the tidal wave of depression rises. All they are able to do is advocate more of the same futile policies and hope for the best.
Ramsey McDonald in 1929/31 had his “economic blizzard”. Attlee did not plan the half-million unemployed of 1947. Wilson was “blown off course” with unemployment averaging over 600,000 during his last year of power.
The so called extreme “left” can demand nothing better than more work, better leadership, reforms and nationalisation. All the same old fallacies they were trotting out forty years ago. The Trotskyists and the “Communist” Party have helped spread the lie that the Labour Party is better for the workers than the Tories, and fostered the illusion that State capitalism can solve unemployment and other working-class problems.
Unemployment has always been a feature of capitalism. An industrial reserve army is the capitalists’ ultimate weapon against wage demands.
When wages reach a level where machinery becomes a better investment, the composition of capital will tend to favour the machine over the worker. Also, intensified world competition for markets produces the same result, namely relatively fewer workers to increasing technology. No major capitalist country can afford to lag too far behind the techniques employed by the fastest. This is the significance of what the Sunday Times calls “decades of neglect” of capital stock.
That’s What it’s All About
Capitalism inevitably creates situations where it chokes on its own surplus products, simply because of its market economy. Expanding industry means that ever wider markets must be found as profitable outlets for the sale of goods. As the whole world is drawn more and more into the orbit of capitalism, so the number of rivals grows and a stage is reached where it is no longer profitable to maintain production of goods which cannot be sold. The costly plant of modern industry demands the mass market. When markets begin to contract or fall to rivals, then unemployment starts to reappear.
The Daily Telegraph (1 October 1971) put it in a nutshell:
“Industry does not function, as some seem to think, to provide jobs. It functions to make profits. And if profits are unduly low as they have been now for at least five years the inevitable result is low investment. New finance becomes hard to get, adaptation and renewal slow down and the decline of jobs in the old industries remains unmatched by a growth of jobs in new industries. No priority, therefore, should rank higher than the restoration of British industry to a proper level of profitability.”
Capitalism can have no higher priority than profits.
The recurring cycle of boom and depression, at ever higher levels of technology, demonstrates more than anything the total inability of capitalism to harness its productive resources to the satisfaction of human needs. It further proves the complete obsolescence of the market economy.
What is really redundant, in terms of social welfare and human happiness, is the private and state ownership of the means of production.
H.B.