Greece: A Vote for All of Us

Greece has voted decisively to reject the latest demands from the European Union for austerity economics.

The Hellenic people have today dealt a huge blow for all Europeans against the corporate interests that over the last 8 years have foisted the political choice of austerity economics across the Continent. The 60%-plus vote to reject the latest demands for massive cuts in public services and welfare to the poorest represents a major victory in the struggle to reverse the "mainstream" view that the monetarism first adopted by Thatcher and Reagan in the 1980s should be the default form of orthodox economics. It is a massive vote of confidence in the Syriza government and the stewardship of Prime Minister Tsipras and Finance Minister Varoufakis, but it leaves huge questions for them to tackle in terms of next steps. For although Greece has spoken loudly and clearly, the anti-democratic forces in the European Central Bank and the IMF, backed by the neoliberalism of German Chancellor Angela Merkel, are unlikely to deviate from their obsession with reducing the public sector and increasing the wealth of the rich across the Eurozone. The economics of austerity will not go quietly or quickly.

This is a particularly pernicious form of political economy - it holds that balanced budgets are key for governments, whose involvement in society should rarely extend beyond basic policing and the military (although in practice it actually extends to providing subsidies and  handouts to the big corporations that fund our political masters, either via bailouts viz the banking system or "private finance initiatives" and outsourcing of services such as health and education at criminally high costs to the taxpayer).

Syriza's Varoufakis and Tsipras

 In this scenario, there is a fetish about reducing the deficit even when sucking money (and demand) out of a becalmed economy will simply lead to a downward spiral with huge costs to the lives of ordinary people. Its proponents however claim that, in the long-run, a harmonious equilibrium of supply and demand will be reached - although this is somewhat incredulously to be determined by the mystical invisible hand of the market rather than any socially-conscious intervention by humans. We are to serve economics, it seems, not the other way round.

The counterpoise to this - the investment-led approach of Keynesian economics - is somewhat more humane (albeit not necessarily an exclusively socialist response). It sees social objectives, primarily the minimisation of unemployment, as a key objective. Here, Governments will borrow or even just print new money to keep demand going in the economy, keeping activity moving so that people stay in work - this reduces the cost of out of work welfare and increases tax take, so that in time, if useful, the deficit can be reduced or eliminated without ruining the lives of ordinary people. As Keynes said of those who would leave things for the market to somehow work things out in the longrun, "In the long run, we are all dead." Economics should serve society; social objectives should be their sole purpose, not the enrichment of an ever -smaller circle of owners and shareholders.

However, the neoliberal elite who came to dominate our political landscape as well as the economy during and since the 1980s have made several key changes that undermine the potential for investment-led economics. They removed many of the controls on money and globalised the movement of capital; and they gave banks the right to create new money out of nothing - a ludicrous and highly dangerous arrangement that led to the 2008 crisis and continues to this day.

And into the midst of this, although Britain is outside it, the Eurozone came into being and countries like Greece surrendered their economic and monetary independence to the European Central Bank. This now determines the economic policies not only of Greece but in effect all Eurozone states. And with its decisions in the hands of austerity-obsessed bankers whose sole objective has been to increase the power and wealth of the elite, the social needs of the poor in Greece, or Spain or even Germany have been of no concern. Hence their belief that Greece should cut and cut and cut and simply keep on bleeding.

In this context, we have seen Greece previously be forced to accept an unelected Prime Minister to impose the diktats of the ECB on its people. This was being openly contemplated again in Berlin last week as Merkel and her gang felt bullish about a Yes vote in the referendum cutting the legs from under the elected Syriza government. This is the same mindset that reportedly led to some bankers allegedly opening a book on whether or not there might be a military coup d'etat to "solve" their problems with the irritant of democratically elected Greek politicians not going along with inflicting ever more misery on their people.

Greece has said no to the austerity that is at the cold heart of Europe now. But the only real option for the Hellenic democracy is to now leave the Eurozone as quickly as possible. With the drachma restored, they would be free to adopt an investment-led recovery, restore their battered public services and revive their economy. In doing this, they would be leading the way for democratic forces across Europe to rise and turn our fractured societies away from the austerity that has left Britons to choose between heating and eating, Spaniards to watch their health services crumble and youth unemployment soar, and Greeks to see their country unravel around them, their young and their rich taking flight abroad.

For some of us on the progressive left in Britain, until now reluctant supporters of the European Union as at least some form of minimal defence against the corporatocracy, the treatment of Greece (and of Portugal, Spain and Italy) demands we revisit our views ahead of the British referendum. The Europe we seek, one that puts people and planet before the profit of big companies and the demands of our elite, is not on offer.

It may feel uncomfortable to be on the same side of the fence as the likes of UKIP, but is it any easier standing alongside the three pro-EU, pro-TTIP, pro-austerity parties coalesced under David Cameron? At the very least, the debate must be had - why should any progressive wish us to remain part of this "ever closer union" that would willingly, even enthusiastically, destroy one of its own? Can this project be saved from itself? How do we get a social Europe genuinely on the agenda? Or do we need to break away to come back together in something more constructive and sustainable?

The No vote for the Hellenes is no negative result. It is a terrifying but optimistic vote that says society must be for everyone. That the collective need, the common good, must come before the apologists of robber-capitalism who hold power in the boardroom, banks and Cabinet offices in capitals across the European Union (including London). It is a line in the sand, but will need to be the first of many.

It is a vote for a future that is about people, not profits.

From the birthplace of democracy, it is a vote for all of us.

Athens was the birthplace of European democracy: this ballot said "No" to Themistocles in a vote 2,400 years ago.

Spanish Revolution

Marx - saw it coming and got the teeshirt!

The last twenty four hours have seen a wave of anti-austerity protest in Madrid. Galvanised by social media, the Indignants have marched on Congress in their tens of thousands to demand an end to the harsh austerity measures of the conservative government which, deferring to the European Central Bank's "tight money" regime, have slashed public services and catapulted one in four Spaniards onto the dole.

They have faced rounds of rubber bullets from the police, but they remain in place even now; follow them here.

The Spanish Government's fiscal policy is the same that is being applied across Europe for the sake of saving the beleaguered Euro - while in Britain, which is not part of the Eurozone, the Con Dem Government pursues deficit reduction as its first and, many would argue, sole monetary policy objective. All this in spite of the fact that cutbacks depress economic activity and cause the whole economy to spiral down in an ever-decreasing circle - and with less tax generated and more unemployed people needing state assistance, the deficits continue to grow.

Madrid on Tuesday evening

There are alternatives - Keynes and Roosevelt demonstrated that borrowing to invest in employment pays dividends many times over - a tack echoed in the current round of Green New Deals proposed by Green Parties (including US Presidential candidate Jill Stein). And in the case of sovereign currency states like the UK, expanding the monetary supply by "quantitative easing" (printing money) can kick-start a stagnant economy (and as a nation that can print its own money, the UK can never go bankrupt contrary to Tory and Lib Dem claims of pending insolvency).

But on another analysis, this round of austerity, just like the previous period of expansion, is just part of the never-ending capitalist not-so-merry-go-round; a cycle of boom and bust followed by more boom and bust. It will never end, never be resolved, especially in a world where many resources are fast becoming expensively scarce. On this analysis, the only real answer is to change the economic and social systems completely - to a more planned economy, with resources used to the benefit of all and strict limits placed on what private individuals and companies can take from the common wealth. 

Otherwise, we are condemned to Austerity Groundhog Day:

The bourgeoisie cannot exist without constantly revolutionising the instruments of production, and thereby the relations of production, and with them the whole relations of society. Conservation of the old modes of production in unaltered form, was, on the contrary, the first condition of existence for all earlier industrial classes. Constant revolutionising of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones. All fixed, fast-frozen relations, with their train of ancient and venerable prejudices and opinions, are swept away, all new-formed ones become antiquated before they can ossify. All that is solid melts into air, all that is holy is profaned, and man is at last compelled to face with sober senses his real conditions of life, and his relations with his kind.

Karl Marx and Friedrich Engels, "The Communist Manifesto" (1848)

"Why don't they start with the bankers?"

The British Government has announced its programme of cuts in public spending today. Carefully crafting a wide range of substantial reductions in spending so that the average cuts per Government department come in at 19% over four years rather than Labour's planned 20%, the Con Dems betray the essential unity of the three main parties around a monetarist, free market agenda. Their little school boyish prank may make waves in the Westminster Village, a bit like waving condoms about in a Prefects' Room, but the impact on a wide range of poor and vulnerable citizens will be even worse than feared, with £7 billions more than expected off disability payments - £50 per week taken from people on Incapacity Benefit for more than 12 months - and a 50% reduction in the social housing budget. At the same time, precisely nothing is done to tackle the massive tax evasion and corporate tax exemptions that plague Britain.

So amidst the gloom, it was good to see this video (below) of Green Party leader Caroline Lucas MP railing passionately against the cuts as socially damaging and economically illiterate - worsening the crisis of the deficit rather than tackling it. Clearly angered by the Chancellor's approach, she calls for action on investment in sustainable jobs and action against tax evasion. Government led spending on a range of activities such as improving public transport and developing renewable energy would pay dividends in a multiplicity of ways - generating jobs and tax revenue, cutting the deficit, reducing our dependence on foreign energy and cutting our carbon emissions.

This type of Keynesian economic theory,on which the "Green New Deal" is based, used to be the economic orthodoxy that worked for a coherent society. By contrast, Monetarist theory adopted by right wingers in the 1970s onwards changed that - placing economic objectives above social ones and seeking to reduce government involvement in the economy and socirty as a whole. As Nigel Lawson, Thatcher's Chancellor, explained on BBC Radio 4 last night, "I wasn't much bothered about damaging solidarity and social cohesion." All he was bothered about was creating space for tax cuts for the wealthy and a chance to flog off the national assets.

As the Conservatives and Liberal Democrats contemplate the biggest sale of public assets ever, as well as cutting deep into the welfare state, the Con Dem regime is emerging as one of the most avowedly ideological governments in British history, rolling back the shrinking public sector further than Mrs Thatcher ever dared imagine.

At least, hearing Caroline Lucas' speech, there is clearly a voice in Parliament showing that there IS an alternative to an agenda that turns citizens into numbers and shuts its eyes to real human suffering. Let's hope it keeps getting louder. And heard.