LETTER from Mark Langabeer
The current situation is in my opinion is unprecedented. All the indicators suggest that we are entering a period of political storm and stress that has no parallels in history. According to press reports, private debt now exceeds levels that preceded the 2008 economic crash. The housing bubble and the prospect of higher prices will inevitably lead to high interest rates. The return of stagflation has been the prediction of most economists.
It appears that the current strategy of Johnson and the Tory Leadership is to curb immigration and allow all kinds of shortages of basic necessities. ‘Short term pain for long term gain’ is one of their soundbites. Will labour shortages result in higher wages and improved living standards? It may be the case that labour shortages would strengthen the hand of organised workers in securing better pay and conditions. However, this would soon be eroded by inflationary pressures.
Most economists argue that the key to increased living standards is growth, which require increases in productivity. The curbing of immigration will reduce productivity (Britain ‘s productivity is already below that of most of the EU nations). The bosses are not happy with Johnson, including those that backed Brexit. These numbskulls thought that Brexit would reduce so-called EU red tape and increase profits.
Virtually every day, announcements are made about price rises. Energy, food, council tax, fuel and rail are just some on the list. Alongside the increase in National Insurance and the weekly cut of £20 in Universal Credit, they will cut the living standards of the working class. The Tories will become the most unpopular government in living memory.
Inevitably, Labour will be the political benefices of Tory misrule. The defeat of Labour’s left-wing and the return of a right-wing leadership will be music in the ears of the bosses. Starmer advocates an increase in immigration to reduce the current shortages. Meanwhile, he has jettisoned the radical policies of Labour under Corbyn and adopted a more friendly posture towards big business. They think that they will be more ‘electable’, if they cosy up with the gaffers, like writing an article in the right-wing Sun.
In my opinion, the most likely perspective is for a Labour victory at the next general election, (perhaps a minority government). All the indicators suggest a crash that would make the recession in 2008 look like a Sunday afternoon picnic by comparison.
Labour must adopt a genuine socialist programme that includes the public ownership of the banks and the hundred big companies that dominate the economy. The failure to adopt a socialist programme will result in a growth of poverty, whichever party is in government.
