Cooking the Books 2 – ‘Raise everyone’s wages’
‘Cut bills and raise everyone’s wages’ promised the Green Party in a leaflet put out for elections earlier this year (‘Stop Reform. Replace Labour. Vote Green’). Wage increases all round is more typical of Trotskyist candidates trying to get workers to follow them by dangling impossible ‘transitional demands’ in front of them. In this case it was an example of Polanski’s professed ‘ecopopulism’ which consists of making attractive promises on bread-and-butter issues to gather votes, in particular from those who normally vote for the Labour Party. But it is just as unobtainable as any Trotskyist carrot.
If ever the Green Party came to form the government and decreed that all employers should pay their workers more, the result would be an immediate financial and economic crisis since everyone’s wages could only be increased at the expense of overall profits and profits are what drive the capitalist economy. A lower economy-wide rate of profit would mean less investment and so a drop in production.
Derek Wall, a one-time speaker for the Green Party (before they had a Leader) and still a Green Party activist, described in 1990 what he expected to happen if a Green government came into office on a programme of putting the environment before profits:
‘A Green government will be controlled by the economy rather than being in control. On coming to office through coalition or more absolute electoral success, it would be met by an instant collapse of Sterling as “hot money” and entrepreneurial capital went elsewhere. The exchange rate would fall and industrialists would move their factories to countries with more relaxed environmental controls and workplace regulation. Sources of finance would dry up as unemployment rocketed, slashing revenue from taxation and putting up social security bills. The money for ecological reconstruction — the building of railways, the closing of motorways and construction of a proper sewage system — would run out’ (Getting There. Steps to a Green Society, p. 78).
As the Green Party accepts the ownership of the means of production by private corporations and individuals and doesn’t even have any state-capitalist pretensions, it is fair to assume that they would come into office, if ever they did, under capitalism as it is today. So Wall’s scenario is entirely plausible.
Wall envisaged this happening if the Green government was elected on the basis of implementing far-reaching measures to protect the environment. The Green Party doesn’t seem to say much these days about protecting the environment (the leaflet in question doesn’t mention it at all) but the same would happen if a Green government were elected on a pledge to make all employers pay their workers more. In fact, the immediate crisis would be economic and not just financial as Wall envisaged. Some employers would go bankrupt immediately. Others would lay off workers. Unemployment would soar. Production would slump.
The Greens are taking workers for fools, though we doubt many were fooled into voting for them because they believed that the Greens would, or even could, bring about a general increase in wages. Increased wages for everybody sounds good but is too good to be possible under capitalism.