Wildcat 87,Summer 2010
A season in (the vestibule of) hell
The economy is depressed, as is proper in an economically depressed area
Elfriede Jelinek
Sometimes, Stimpy, your wealth of ignorance astounds me!
Ren Hoek
Credit Action UK statistics, Feb. 2010: 1,841 redundancies per day (August 2009 peak: 3,300); one home repossession every 11.4 mins.; one personal insolvency or bankruptcy every 3.69 mins.; average household debt £58,040; daily increase in govt. debt: £384,900,000.
In April 2009 the UK Ministry of Justice announced plans to build a new 1,500-capacity prison on the site of the former Dagenham Ford factory1. Proletarian prospects as officially scheduled in a 'managed' crisis could hardly be summed up better. But what happened next is also indicative of the way social tension has been simultaneously contained and deepened over the last year. In Dagenham the state eventually gave way on the local issue after a respectable campaign backed by the Labour MP and council: no jail will sully that particular Business Park, but identical projects remain on track elsewhere, and the government will keep its 'promise' to lock up 96,000 people. Meanwhile the Wildcat thesis that state-led 'crisis provisions do not aim at economic recovery, but at surviving politically'2 has been played out in practice. Life has not stopped getting materially worse for workers and claimants: hundreds of thousands have lost jobs, wages, housing, benefits, state services, and above all the certainty of future access to these things. But the effects have been dispersed across time, place and self-identifying social groups, and attempts at struggle have been correspondingly uneven. Socially concentrated - and therefore collectively experienced - 'shocks' have been forestalled and rescheduled for a near but unspecified future. The experience of personally plunging from 'aspirational' to proletarianized to 'socially excluded' (and therefore prison-ready) status has apparently not yet become common enough to extirpate the widely held belief that when this happens it's at least partially the fallen individual's fault.
In terms of the 'phases of crisis policy' set out in the Wildcat '15 Theses'3, the state in Britain (as elsewhere, but with the added incentive of an imminent general election) seems to have done everything possible to prolong 'phase 3', in which full-scale attack is prepared and 'spelled out', but left suspended while 'gimmicks' buy political time. As in other large 'financialized' economies, this has meant turning enormous volumes of private sector debt overhead into state liabilities. But in Britain the interim effectiveness of the 'political fix' may have been enhanced by particular characteristics of the local economy before and during the crisis. For example:
- One of the main employment growth areas in the pre-crisis economy was the so-called 'public sector', where the timing of mass layoffs is largely under political control. One reason the official unemployment rate stood at 'only' 7.8 per cent (2.46 million) in December was the postponement of state sector downsizing until the post-election deficit-cutting drive promised by all parties. This is not just a matter of direct state employment of supposedly privileged civil servants. The huge system of PFI, outsourcing and sub-sub-contracting4 made government sinecures a major source of private 'services industry' revenue in the 'boom' period, with corresponding growth in 'state sector' employment on private sector or temp terms. In this respect the results of the deferred but imminent central and local government budget cuts may be contradictory. Contracts will be tightened and lost in 'non-essential' areas, with effects all along contractors' supply/ownership/financing chains, while at the same time the state's anxiety to keep borrowing off its own books will lead to more use of PFI and outsourcing in previously 'in-house' activities (youth detention, probation and parole were recently mentioned), shifting work from 'secure public sector' to insecure private/temp status rather than directly onto the dole.
- The government money poured into the financial sector may not have 'trickled down' into the 'real economy' on any significant scale, but bank profits and trader bonuses were not the only result of the subsidy. The partial and temporary reprieve also applies to all the ancillary services feeding directly or indirectly off the claims on value captured as 'financial revenue', from contract cleaning and restaurants to IT and PR. In a 'deindustrialized' economy this recycling of financial flows accounts for much of the income in circulation, especially in London where a lot of younger people seem to regard work in 'professional services' as the universal norm.
- Fourth quarter statistics showed tiny increases in GDP growth and even in manufacturing output, but these were relative to the unprecedented lows of the year before, and more importantly they also represent all the benefit exporters have managed to derive from the sustained decline of sterling since late 2008. In other words financial reflation driven by government debt has more or less exhausted itself (quantitative easing was suspended early in February) without restoring 'independent' momentum to non-financial capital, despite export-friendly exchange rates and the gradual international recovery of international trade (itself artificially stimulated by Chinese state intervention). Money creation on a scale that by any 'normal' criteria would be hyperinflationary has stayed locked into financial assets (anecdotal evidence points to a renewal of the 2007-2008 round of commodities speculation, with JP Morgan and Nomura/Lehman among others buying into physical energy storage), slowing the collapse of these assets from their previous hyperinflated prices without making them any more of a viable basis for accumulation than they were in 2006-7-8.
- As Aufheben observed in October 20095, the last year has seen some encouraging signs of self-organized struggle (the energy/construction wildcats starting at Lindsey, school occupations in Glasgow and London, plant closure occupations at Visteon and Vestas6), but in a period of mass redundnacies what may be "most pertinent" is "how atypical" these struggles are7. Already a year ago workers were being frightened into accepting wage cuts in some cases and shortened hours (with no Kurzarbeit system) and/or wage freezes much more widely in the hope of keeping jobs. The income lost was not restored with the statistical 'end of recession', of course; meanwhile carefully cultivated awe of uncontrollable 'systemic' forces held confrontation down where (almost a million) jobs were actually lost. At the same time there have been several serious 'official' strikes, largely in the public(or public-contracted) sector8, where management seized on the crisis as an opportunity to restructure, without always immediately threatening jobs.
- At Royal Mail leaked management documents referred to plans to 'prove that strikes don't work' by provoking one; after weeks of constant rolling and intermittent all-out stoppages it looked for a moment like the reverse might be proved, until the Communication Workers Union threw away the advantage by agreeing to a Christmas 'truce', which has so far lasted until March.
- Leeds garbage collectors stayed out for three months (September-November) against an attempt to use 'equal pay' law to cut wages by £4-6,000 a year; they eventually won most of the wages back in most cases, but only with 'productivity' targets attached. Local councils are planning or already trying to implement similar measures over much of the country.
- In the education sector attempts to force course closures, compulsory and 'voluntary' redundancies and speed-up one institution at a time on grounds of 'local' funding crises met with varying degrees of real or symbolic resistance. An indefinite strike by Tower Hamlets College ESOL teachers in East London, with strong support from other college workers, students and community, lasted for 4 weeks, then ended with a limited and ambivalent deal to stop compulsory redundancies, claimed as 'victory' by the UCU union and the SWP.9
- The response to a 48-hour London tube strike in June gave a discouraging impression of how little the crisis has altered 'common sense' perceptions of where real interests lie. 'Public' outrage against transport strikes is always exaggerated and tightly media-managed, but crisis-anxiety was sure to manifest around a strike against compulsory redundancies10 happening in June 2009. And so it did, but no-one (apart from the few supporters who turned up at the picket lines - invited explicitly by RMT for the first time) suggested that the ability of relatively strong bodies of workers to resist cuts was now more than ever a matter of wider class interest. Instead the prevailing line was more like: "don't they know there's a crisis on? The rest of us have to make sacrifices, so why shouldn't they!"
Of course this impression of 'public opinion' is only anecdotal, and boorish anti-solidarity may also be unusually common in London, where wealth and ignorance tend to concentrate.11 But there are plenty of signs that 'phases 1 to 3' of the crisis have not gone far in breaking down the widespread assumption that the natural relation between wage-earners (whether individually or in groups, eg. by nationality or employer) is competitive, and success or failure in this competition is a matter of merit. In Scotland the SNP deputy first minister was forced to apologise for 'inappropriately' suggesting that someone convicted of 'benefit fraud' should not be sent to jail. Unions thundered against bank bonuses, but uttered not a word about 'performance-related pay' in general and its wage-cutting, hours-stretching uses below senior executive level.12 In particular, identification with real estate 'ownership', rather than the wage, as the basis of personal survival seems to have survived the crash of housing prices, even among the propertyless and bearers of 'negative equity'. This is evident from the way the Tory promise to cut the deficit (i.e. public sector wages and pensions, plus benefits) in order to keep mortgage interest rates down was unequivocally framed as 'populist' policy targeting non-impoverished working-class voters. (In socio-psephological terms, the targeted group is labelled 'Motorway Man': still-employed residents of housing estates outside London, with children, cars and aspirations.)
But the resilience of pre-crisis social attitudes during an artificial period of economic pseudo-'normality' does necessarily not mean a 'political fix' has worked, if the latter is also supposed to ensure the future survival of capitalist institutions. The often-heard phrase 'socialization of the losses' will take on concrete meaning once the liabilities absorbed by the state in the name of 'society' are passed on to the working and state-dependent class, and familiar material elements of social reproduction start disappearing.14 To the extent that 'attitudes' also imply expectations, collective shock may be all the more violent when the basis for competitive personal aspiration is revealed retrospectively to have been maintained an illusion for so long.
Certain aspects of preparation for this social trauma have been discernible during the reprieve the state has bought for capital at our expense, although it would be a mistake to see too much cohesion in them: some institutional operators may even sincerely believe in 'economic recovery'! Rhetoric about future 'collective sacrifice' and 'shared austerity', often with allusions to the Second World War bombardment of London, has been common for a while now, but it remains to be seen whether it will pass unchallenged when economic bombardment becomes present-tense reality. Concrete detail about 'austerity' (or Structural Adjustment) policy is rare, but occasionally it slips through dressed up in 'communitarian' and preferably 'green' morality. Thus Labour proposes a 'co-op'15 local government model (in a country where welfare, housing, schools and other basic state functions are run municipally): essentially permanent scabbing by 'community groups', who would 'volunteer' to do for free the work the council previously paid someone for. (Branding suggestion: 'Dig Your Own Grave'.) More generally, functions abandoned by the state will be among targets (whether through new outsourcing deals or direct privatization) for 'bottom-feeding' private investment, leveraged thanks to state-backed financial reflation. Financial media are already predicting a new private equity boom, with freshly-created money expected to capture 'distressed' public and private assets, maybe even providing some sort of employment on 'caught-down-with-the world-market' terms. One sign is that Blackstone is lining up along with Tesco and Virgin to grab opportunities in retail banking; it's also easy to imagine well-funded corporate buyers sweeping up 'distressed' housing when rising mortgage rates provoke a foreclosure bonanza. Pensions are sure to be another target, with private employer schemes gutted by employer contribution 'holidays' and stock market losses, while public sector 'entitlements' are already under political attack; meanwhile the government has just appointed the manager of a liquidated hedge fund to run the new quasi-compulsory 'personal account' system.
Certain other developments are never publicly linked to the crisis, but nonetheless look like preparation for a period of demographically inclusive 'social exclusion'. A major growth area for public-private contractor services is management of the 'hard-to-reach' population. The distinction between the criminal justice, care/training and welfare systems is increasingly irrelevant here, with the same methods (unpaid 'community service', cognitive-behavioural therapy, drug and alcohol testing) used at all levels, and by the same contractors (Serco, G4S, Sodexo). Convergence is the rule across the various enforcement sectors: BAE Systems recently missed out on a contract for military drone aircraft for Afghanistan, but as a consolation prize it gets to provide security drones to fly over Greater Manchester. Meanwhile traditional 'safety valves' for the unemployable also still function: army recruitment is up substantially, even in big cities, where recruitment showrooms in low-income areas use video simulation war games.16
Provisions like these seem mainly to be directed towards containment of an expanded but chaotic and unorganized 'underclass'. Meanwhile it's uncertain how seriously the state takes the quite different prospect of 'political' hooliganism, but an unprecedented body of political/security laws, ostensibly directed against Islamic militancy, is already there to be used. Perhaps the most effective 'preparation' against any class-based political threat, though, is one which has been developed over years, i.e. the diversion of an acute and correct sense of dispossession among the locally-born working class (including children of immigrant parents) into anger against more recently immigrated labour market 'competitors'. The left fails to make the connection between this hijacking of class hostility and the wholesale adoption of 'anti-racism' by the class masters of the putative working class 'racists'. 'Anti-racism' is almost the only ideology unanimously avowed by the bourgeois beneficiaries of class dispossession, so repudiating it means repudiating them, and recently-immigrated proletarians effectively function as human shields for the anti-racists' real dispossessing role as asset owners, employers, managers etc. How this mechanism works is well known, but its potential to divide and undermine class troublemaking is worth emphasising now, because the state effort to 'nationalize' the stakes of the crisis has made it much more likely that struggle in the long-delayed 'phase 4' will be 'political'.
Fußnoten:
[1] The Ford plant, which once employed 40,000 workers, was closed in 2002. once employed 40,000? – for troublemaking history see Big Flame/Gambino references?
[2] 15 theses on the crisis, spring 2009 n.7
[3] as above, n.10
[4] See James Heartfield, 'State Capitalism in Britain', http://www.metamute.org/en/content/state_capitalism_in_britain
[5] 'The red shoots of resistance?', Aufheben 18.
[6] Lindsey: last report/libcom; Visteon: Pete, Wildcat, also The Commoner; ???schools, vestas references???
[7] Aufheben article
[8] One relatively rare private sector dispute was at British Airways , where cabin crew were determined to use the Christmas strike weapon against downsizing of long-haul crew numbers, with the airline pleading 'uncompetitiveness' in an industry-wide profit crisis. BA eventually stopped the strike with a court injunction, supposedly over ballot procedures but framed by the judge in terms of inconvenience to passengers etc. A new ballot ensued, but Unite had apparently learnt its lesson and pre-emptively ruled out striking over Easter. The new ballot was overwhelmingly in favour of striking, so Unite put it 'on hold'.
[9] This account of recent strikes doesn't pretend to be anywhere near adequate, either as a list or in conveying the events and stakes in the instances mentioned. These cases are used only in order to suggest some tendencies running through the year.
[10] At the former Metronet, a maintenance/services operation outsourced under PFI, duly bankrupted, then expensively remunicipalized.
[11] Web forum comments on the Leeds bin strike - all from the immediate area, as it was hardly reported anywhere else - were split between sentiments like those against the tube strikers and statements of solidarity, often from other public sector workers expecting similar attacks.
[12] Web forum comments on the Leeds bin strike - all from the immediate area, as it was hardly reported anywhere else - were split between sentiments like those against the tube strikers and statements of solidarity, often from other public sector workers expecting similar attacks.
[13] The kind of thinking at work in the outcry over parliamentary expenses was best summed up when one MP complained that if he lost First Class train travel privileges he'd have to share carriages with "a totally different kind of person". A spokesman for "ordinary people" wrote to the Evening Standard explaining that what was outrageous about this was not the politician's horror of commoners, let alone the institution of empty First Class carriages in overcrowded, overpriced trains, but the idea that the MP might not have to pay personally for his special ticket. Class privilege is fine and natural, provided its monetary value - i.e. its reflection of merit - is not undermined.
[14] Imminent state-led class attack (or 'fiscal consolidation') is treated as certainty by all mainstream opinion, with disagreement only over scale and timing. More controversial in orthodox debate but recognized by many Keynesian and a few scorched-earth monetarist 'experts', all of whose most fervent wish is to save capitalism, is the irrelevance of the 'political fix' to the underlying accumulation crisis, which when 'stimulus' ends can be expected to resume 'unwinding' the 'real economy' with a vengeance. But this, mercifully, is not the place to expound that argument in full.
[15] They sometimes say 'John Lewis council', referring to a department store founded in the 19th century with a co-operative structure. A more appropriate historical allusion might have been the co-operative credit 'building societies' formed at around the same time, then transformed in the 1990s into predatory mortgage-specialist banks such as...Northern Rock. [16.]Whether the virtual enemy conscripts are already 'Argies' this early in the revived Malvinas pantomime is unclear.
[16] Whether the virtual enemy conscripts are already 'Argies' this early in the revived Malvinas pantomime is unclear.