Yet again, Energy Debt

 

Deja vu becomes tiresome when it becomes necessary to report ad nauseam on the iniquities of capitalism over and over again. SOYMB ibid. From Citizens Advice comes a report (23 January) detailing the ongoing energy issues that those living in the sixth or seventh largest economy in the world continue to face. As in SOYMB post, Fuel poverty kills, the ‘solution’ offered by Citizens Advice is more help from the government. To repeat, and to repeat again, the only solution to this and to many other issues is the replacement of Capitalism by Socialism. https://soymb.com/2024/01/fuel-poverty-kills.html



The need for energy bill support is urgent. New polling and Citizens Advice data shows the extent to which some consumers across Great Britain were struggling in the first weeks of winter:

More than 3 million people have been disconnected from their energy in the last year because they could not afford to top up their prepay meter – including more than 1.4 million since November

Over 5 million people live in homes with an energy debt, and are at greater risk as a result of actions to reduce costs, including turning off the heating or skipping meals

1 in 5 Citizens Advice debt clients have an energy debt, and it is now the most common debt we support people with. The average energy debt owed has increased to £1,835 by the end of 2023, up from £1,579 a year earlier.

The rest of winter looks set to be even worse, with prices rising 5% this month and colder weather seeing typical household energy usage reach its highest point. We estimate that over 2 million people will disconnect because they can’t afford to top up by the end of winter. The total energy debt pile has reached at least £2.9bn – and growing. This is weighing down millions of consumers and risks becoming unsustainable for the sector.

Some respite may be on the horizon, with prices predicted to fall somewhat from April – but this won’t be enough to fix the crisis. Bills will still be 40% higher than they were in 2021, while the end of extra support through the benefits system means many families on lower incomes will have less disposable income than they do currently. Meanwhile, wholesale prices remain volatile, and some changes in the energy system are likely to put upward pressure on bills in the coming years. We risk an annual winter crisis unless action is taken to help those struggling most. 

Last year Citizens Advice looked at designs for new targeted support with energy bills that could work alongside energy efficiency improvements to lower bills sustainably. In this report we set out how these principles can be applied to the existing Warm Home Discount scheme to expand support to more low income households, at a level that is tailored to their energy needs. It also needs to be responsive to changes in energy prices so the scheme doesn’t fall behind when prices go up, or remain unchanged if prices go down.

Alongside this support, Ofgem and the Government should develop a joint action plan to support people in energy debt. This should include additional funding for independent debt support to help people find sustainable solutions based on their individual circumstances, and steps to ensure energy suppliers are doing right by their customers.’

The best advice that Citizens Advice can give to their clients is to say no to the existing social system that is only interested in profit and replace it with the social system where goods and services and energy will be produced for free use.



https://www.citizensadvice.org.uk/about-us/our-work/policy/policy-research-topics/energy-policy-research-and-consultation-responses/energy-policy-research/shock-proof-breaking-the-cycle-of-winter-energy-crises1/


Promised Land. Repost from Socialist Standard Past and Present Blog

 

Wednesday, January 24, 2024

Promised Land (1982)

From the December 1982 issue of the Socialist Standard

The “promised land” of Biblical myth is so-called because, for all the
 impoverished Jewish and Arab workers who are trained to kill over it.
 “promised” is all it will  ever be. Investors, capitalist employers of one side
 or another will continue to dominate, or come to dominate, the lucrative 
industry and markets there  as long as world capitalism remains.


Class division among Jews was typified towards the end of the last century
 by the reaction of the “Cousinhood” of established Anglo-Jewry to
 the wave of poorer Jewish immigrants from Eastern Europe. For example
Benjamin Cohen, the Conservative MP for Islington at the time,
 supported the 1905 Aliens Act to limit further immigration. The historical
 tendency towards international integration and class polarisation makes 
Jewish nationalism, like its Palestinian counterpart, a pointless and 
reactionary response to the exploitation and oppression of the past and present. 
There is no Jewish “race”: Israeli and British workers share the same interest
 in i breaking down national boundaries and forming a democratic, socialist society.


In the nineteenth century, Zionism developed as a nationalist movement
 similar to many others involving the setting up of capitalist states. Because of
 the banning of Jews from many fields of work in the Middle Ages, and 
the Christian ruling against taking part in money-lending, many Jews ended up
 as moneylenders. This was used as part of the vicious campaign of persecution 
directed against Jews over centuries, as they were used as a scapegoat
 for the problems of poverty and conflict which were endemic to the rise of 
capitalism. In the twentieth century, the idea of giving the Jews a country
 where they might be safe from the painful discrimination and attacks they
 had suffered was harnessed to the need for Western capitalism to have 
an outpost in an area of great strategic importance, the Middle East.


As early as 1840 Lord Shaftesbury, anxious to ensure an overland
 route to India, proposed a scheme of Jewish colonisation to use “the wealth
 and industry of the Jewish people for the  economic development of a backward
 area”. In the nineteenth century Rothschild invested £2 million in Palestine,
 and the French government showed an interest in colonisation. The first 
Zionist conference was held in 1897 at Basle, at a time of violent 
anti-semitism in Germany and France. Herzl originally advocated a
 Jewish settlement in Uganda, but the congress decided on the area of
 Palestine, because of its religious significance. For thousands of years,
 it had been a crucially situated trade centre. The pogroms in Russia 
since the 1880s had sent thousands of Jews fleeing across Europe, and 
the prospect of a Jewish state seemed welcome to them.


During the First World War, as pact of its contradictory war-bribes,
 Britain promised the Jews a “national home” and the Arabs independence 
throughout the Middle East. In 1940 Joseph Weitz, then heading the Jewish 
Agency Colonisation Programme, wrote in his diary:


Between ourselves it must be clear that there is no room for both 

 peoples together in this country . . . the only solution is Palestine

 without Arabs (Quoted in Socialist Charter, February 1979).

Indeed, the attempt to solve the problem of anti-semitism within a
 nationalist framework demanded that Jews should remain in a majority 
in the newly created state, with all of the immigration restrictions that implies,
 if the exercise was not to lose its point.


The state of Israel was founded in 1948, and by 1968 the annual influx of
 capital invested in the area was equivalent to about one tenth of the total
 world “aid” bill. Most of this capital was owned by British, French and 
American investors who did not live in the Middle East and for whom
 the religious ideals of Zionism meant nothing, other than a pool of 
labour inspired by those ideals to work hard to produce a substantial return for 
such investors.


Did the formation of Israel solve the problem of anti-semitism? Clearly not,
 and for three reasons in particular. First, the only real binding factor between
 people calling themselves Jewish is the acceptance of Judaism. Like other
 religions, Judaism is a reactionary dogma with its own implicit racism, 
in its reference to the “chosen people”. Second, capitalism generates racism
 and divisiveness because of its class divisions, and the competition 
between nations over world markets and between workers over jobs. 
The problems of poverty, unemployment, state violence and war are as evident 
in Israel as anywhere else. Israel is allied to the segregated state of 
South Africa. At least three Israeli trade unions bar Palestinian Arabs. 
The elements of Jewish culture which have attracted some to Zionism are all 
but wiped out by the demands of the capitalist state. Shops are opened on 
Saturdays, despite the religious ruling against it, to compete more aggressively
 for the market. Yiddish has been all but suppressed.


Thirdly, there is the creation of a new, Palestinian “diaspora” around Israel,
 and a Palestinian minority within Israel. The search for a scapegoat for the 
problems of the area, in the form of “Arab terrorists”, or the official anti-Jewish 
policies of some of the surrounding Arab states, are yet another way in which 
Zionism has generated racism, rather than ending it.


The persecution of Jews over many centuries, culminating in the Nazi
 genocide of the ’thirties, led many Jews sincerely to hope for a better future
 in the creation of a “humane” Jewish homeland in the Middle East. Such hopes
 are dangerously idealistic, and have themselves proved divisive and 
reactionary. The Zionists and Palestinian nationalists who argue over the
 borders in the area hardly own between them a single acre of that territory. 
As workers, owning no substantial property, they are arguing about where
 and by whom they will be exploited. The solution to the oppression which 
Jews have suffered is not to build “Jewish” prisons, tanks and bombs.
 The truncheons in the hands of Israeli police feel no different to those wielded 
in Germany, Russia or Ireland. In this respect, Israeli nationalism is 
basically no different from dozens of other nationalist movements with their
 roots in the nineteenth century expansion of capitalism. Each has its own 
myths, its own religious sanction, irrational loyalties, violence and senseless
 support for capitalism.


One final way in which racism is still being generated is in the reaction towards
 Israel’s recent military policies. Liberal newspapers like the Guardian,
 for example, have tried to interpret events by unsubstantiated racist myths:


Most opponents of the government are Ashkenazi, and most supporters

 of the government are oriental. “And those people don’t understand

 peace or compromise.” said the journalist, “they understand dominance.

 And that’s what Begin promises them.” For much of this constituency, the

 arguments about Palestinian purposes don’t matter. (Martin Woollacott,

 2 September 1982)

Like every other state, Israel is a political unit for the accumulation of
 capital. From 1948 to 1968, productivity increased nine-fold. Lacking natural 
resources, Israel imports more than 67 per cent of its raw material requirements,
 uses its pool of labour to work these up into finished products, and then exports
 nearly half of the resulting industrial production to earn foreign currency. In 1981,
 about 5 billion dollars was received from industrial exports, and 7.5 billion dollars
 spent by Israel on the world market. Since the early ’seventies there has been
 a high technology boom, which has largely replaced textiles and other
 industries of the ‘fifties. The general way in which the profit system functions 
across the world has been very clearly summed up in the ease of Israel as 
follows: 
That magic ingredient (“added value”) is the difference between the cost of

 raw materials, plus transport and related costs, and the same price after the

 raw materials have been turned into highly sophisticated equipment . . .

 the higher the added value, the more foreign currency Israel earns. With

 diamonds, for example, the added value is between 20 and 25 per cent;

 in many electronic and other highly sophisticated products, it can reach

 between 45 and 70 per cent.

British Israel Tradejournal of British-Israel Chamber of Commerce, May/June 1982.

The wages and salaries on which the majority of Israelis depend in order to live are simply one of the “related costs” which this process seeks to minimise.


Seventy per cent of capital in Israel is owned by private investors, ten per 
cent is controlled by the state and about twenty per cent is owned by 
Hevrat Ovdim, the industrial holding company of the Histadrut, the main trade 
union, which is otherwise known as the General Confederation of Labour.
 In any of these cases, the same extraction of “added value” from the
 subordinate class of wage- and salary-workers is carried on in the interests
 of capital; 35 per cent of the budget goes on arms. When the Sinai Peninsula 
was evacuated it still had over 17 billion dollars’ worth of military bases
 and armaments invested in it. It was Israeli and American shareholders 
who lost out as a result, not wage-earners or peasants.


Earlier this year, the President of the Israeli Bonds Drive attended a London 
lunch given by Bank Leumi for “business people and financiers”. He reported 
that Israel’s stock exchange, currently valued at over 11 billion dollars,
 is growing “by leaps and bounds” and is second in profitability only to 
Singapore, with an average rate of profit of 18 per cent. Israel Bonds are now
 the third most widely held security in the USA, after US government bonds
 and shares in AT and T. The President of the Bonds Drive stressed that
 Israel Bonds were “making an important contribution to peace”. They are in
 fact doing so no more than Israeli bombs.


Some of the more idealistic of the early Zionists thought that it would be
 possible to establish a separate country which would be insulated from the
 conflicts and crises of world capitalism. This hope has also been shown as
 ill-founded by the course of history. Ernest Japhet, Chairman of Bank Leumi,
 said at the Industrial Club in Israel in January 1982, that “the Israeli
 economy, more than many other national economies, is dependent on 
developments in the world economy” and he went on to list problems such 
as fluctuations in markets and prices, and the uncertainties of market demand
 for Israeli exports.


The only practical way in which the majority of Israelis. Palestinians and others 
in the Middle East are going to come together in harmony and solidarity is
 through the recognition of their common class interest against their
 border-drawing rulers. How many Arab workers and peasants sat at the
 Arab summit conference of oil-sheiks and princes, which proclaimed
 the PLO the “sole legitimate representative of the Palestinian people”?
 How many Israeli workers, their wages and salaries trailing desperately
 behind the spiralling cost of living in Israel, are among the millionaire 
shareholders in high- technology industries, or American and French arms 
and firms?


Hundreds of thousands of Israeli workers have recently been involved in the
 Peace Now movement against the war in the Lebanon. If they are to
 make their dream of peace into a practical reality, they must be prepared
 to throw off their ideological chains of religion, nationalism and support for the
 profit system in any of its many forms. They could do worse than to follow 
the advice given nearly a hundred years ago. in the Yiddish socialist
 paper Arbeiter Freund (“Workers’ Friend”). January 15, 1886:


We say again that no colonisation, no land of one’s own and

 no independent government will help the Jewish nation. Jewish happiness

 will come with the happiness of all unhappy workers, and Jewish

 emancipation must come with the general emancipation of humanity.

 Clifford Slapper



Blogger’s Note:
A correction to an item in this article appeared in the January 1983 issue of 
the Socialist Standard
.

Socialist Sonnet No. 132

Meaning of Genocide

 

Must a word’s definition stay fixed now

Forever? Having stood at Arrivals

And Selection, the railhead that appals,

As the significance of Birkenau

Presses home in its desolate extent,

The dreadful power of words misused exposed.

But who decides a definition’s closed,

Or meaning is particularly absent?

Circumstance must make a pedant relent

Surely? How many thousands dying and dead

Before the word is allowed to be said?

Is it qualified through stated intent?

Either by gas chambers or bombs,

Genocides are as vicious as pogroms.

 

D. A.

Only one way to end Poverty

 

Sociologist Peter Townsend’s 1979 definition of the wider aspects of poverty;

“Individuals, families and groups in the population can be said to be in poverty when they lack resources to obtain the type of diet, participate in the activities and have the living conditions and amenities which are customary, or at least widely encouraged and approved, in the societies in which they belong.”

https://cpag.org.uk/child-poverty/what-poverty

The Joseph Rowntree Foundation has this, (23 January) ‘Hardship deepens as millions find the poverty line further out of reach.’

The report details the widening poverty gap amongst six million people within the UK.

The poverty gap, or the amount of money needed to bring the incomes of people in poverty to the poverty line, has grown wider. Six million of the poorest people – those living in very deep poverty – would need on average to more than double their income to move out of poverty.

Analysis of the latest data shows that the average person in poverty has an income 29% below the poverty line, with the gap up from 23% in the mid-1990s. The average income of people in very deep poverty – is 59% below the poverty line.’

JRF says, ‘This is equivalent to a couple with two children under 14:in poverty needing an additional £6,200 per year to reach the poverty line. In the mid 90’s, the gap was £3,300 after adjusting for inflation and in very deep poverty needing a whopping £12,800 more to reach the poverty line.

https://www.jrf.org.uk/news/hardship-deepens-as-millions-find-the-poverty-line-further-out-of-reach

As in the SOYMB post, Fuel poverty kills, JRF, like the End Fuel Poverty Coalition, looks to the government to offer the solution to the problem.

As we approach a general election, political parties must urgently address entrenched high levels of poverty by: Introducing an ‘Essentials Guarantee’ into Universal Credit, to ensure that everyone has a protected minimum amount of support to afford essentials like food and household bills.

Beyond this, future governments must focus on expanding the foundations of economic security to everyone in our society. People experiencing poverty, especially deep poverty, will be looking for plans from parties to ensure that they are not left unprotected when times are hard.’

https://soymb.com/2024/01/fuel-poverty-kills.html

If wishes were horses, beggars would ride. Poverty, relative and absolute, will only cease to exist with the abolition of Capitalism and its replacement by Socialism where quality goods and services will be produced for free use, not profit.

From the Socialist Standard, June 2000

What is Poverty?

It was hardly surprising, after the depredations of war and the austerity of rationing, that the early post-war years should have been a period of rising expectations. This increasing optimism was fuelled by rapid growth. The huge task of social reconstruction soaked up labour like water in a sponge. Low unemployment pushed up wages and that, together with the introduction of the “welfare state”, meant that the scourge of poverty seemed to be inexorably receding. Technological advances made affordable household items that were once the province of privilege. The mass market had at last truly arrived: a veritable cornucopia disgorging its superfluity of refrigerators, TV sets and automobiles. And it was against this backdrop of rising consumption that the first green shoots of a new kind of social protest would soon emerge—from budding environmentalists to the hippies of the “flower-power” generation-fulminating against the crass materialism and extravagant excesses of the “throwaway society”.

It was in these years that a spate of books appeared which seemed to capture the mood of the time. One such was one written by the economist, J.K. Galbraith, called The Affluent Society (1958). Galbraith’s thesis was that we live in an age of unprecedented affluence yet our habits of thought are still rooted in the past. This was a past traumatised by the experience of “grim scarcity”. We need, he argued, to radically adjust our economic thinking if we are to fully capitalise on the new prospects opening up and avoid jeopardising what had hitherto been achieved.

It was just as well that Galbraith saw fit to prudently qualify his observations, restricting their scope to what he called a “comparatively small corner of the world populated by Europeans”. Yet, it must be remembered that, at the time, even among the developing countries, there was a widespread expectation that the benefits of modernisation would soon “trickle down” to everyone, heralding the end of global poverty. They had only to keep to the same trajectory of economic development that had so unerringly guided their ex-colonial masters towards the sweet pastures of capitalist paradise. Little did they know what awaited them around the corner. The 1970s’ oil crisis, mounting Third World debts and the crushing, hope-extinguishing cutbacks imposed by IMF structural adjustment programmes soon put paid to such wishful thinking.

Relative poverty

But, to be fair to Galbraith, he did not suppose that the disappearance of “grim scarcity” in the so-called First World signalled the eradication of poverty altogether. There remained a more intangible, indeed intractable, kind of poverty—the “elegant torture of the spirit which comes from contemplating another man’s more spacious possessions”. “People,” declared Galbraith  “are poverty-stricken when their income, even if it is adequate for survival, falls markedly below that of the community. Then they cannot have what the larger community regards as the minimum necessary for decency; and they cannot wholly escape, therefore, the judgement of the larger community that they are indecent.”

This is “relative poverty”. It is often contrasted to what is called “absolute poverty”—the kind of poverty where one has barely enough to survive on—but, in a sense, that can be quite misleading. Indeed, it can lend itself to the complacent conclusion we having nothing really to grumble about; at least compared to others less fortunate. Like a child, admonished for not eating all their peas, we are told to remember “the starving millions in the Third World”. So we should. Not the inference that we should be eternally grateful for living in a society that manages to put food on our plate—providing we can afford it—is, frankly, one that sticks in the gullet. For this is a society the vast majority have good reason to get rid of and, perhaps, none more so than those it lets starve in the very shadow of the food mountains it has wilfully created.

Rather than see “relative poverty” as something to be contrasted to, and separate from, “absolute poverty”, it can be better understood as encompassing the latter. As the anthropologist, Marshall Sahlins, perceptively observed:

“The world’s most primitive people have few possessions but they are not poor. Poverty is not a certain small amount of goods, nor is it just a relation between means and ends; above all, it is a relation between people. Poverty is a social status. As such, it is the invention of civilization” (Stone Age Economics, 1974, p.37).

In short, poverty presupposes affluence just as affluence presupposes poverty. Each only acquires meaning in and through its relation to the other. And, paradoxically, what underpins their mutual dependence is what enables us to analytically separate one from the other: our experience of material inequality. In other words, we would not be aware that we were poor unless we had reason to believe others were better off then ourselves.

It is conventionally assumed that it is the duty of government to look after the “less fortunate”. But if poverty is essentially relative, how does one differentiate between those who supposedly warrant this support and those who do not? In other words, on what grounds are we to classify one person as “poor” and another, “affluent”? After all, a millionaire might conceivably be considered “poor” by the standards of a billionaire.

One approach might be to calculate the average income—or arithmetic mean—for society as a whole such that all who fell below it are deemed “poor” and all above it, “affluent”. By this token, given the highly skewed distribution of wealth in society today, a clear majority of the population would fall into the former category, and a small minority, the latter. However, while this pattern of distribution remained the same, any increase in overall living standards which the state may rely upon to improve the welfare of its citizens would, by definition, have no impact on the extent of poverty among them. This is because the proportion of “poor” would itself remain unaltered. For a government committed to the alleviation of poverty, this would pre-empt any possibility of success on those terms and, so, may prove politically damaging.

It could, of course, decide to significantly alter this pattern of wealth distribution. Even so, short of everyone getting exactly the same, the optimum outcome it could thereby hope to achieve—which, in statistical terms, means eliminating any “skewness” around the “mean”—would be to reduce the ratio of poor to only half the population by this reckoning.

There are, in any case, clear limits to a policy of redistribution that a government cannot ignore in a competitive environment without hindering the process of capital accumulation. In this regard, there is undoubtedly some truth in the neo-liberal critique of the welfare state: “excessive” redistribution, involving massive increases in sate welfare, would impose an unacceptably high tax burden on capitalist enterprises which would substantially reduce their profits. That, in turn, would diminish their capacity to mobilise capital for future investment and, hence, their ability to compete in an increasingly globalised market.

Redefining the poor

Clearly, then, from the state’s point of view, some other approach to the identification of poverty is needed to circumvent these difficulties. Ideally, this would allow it to conclude that the problem of poverty was, by no means, widespread. An appropriate formula could then be devised to yield just such a conclusion. By such means, a state could, if not altogether define it out of existence, at least enable this problem to “assume” manageable proportions.

 There are several reasons why such an approach might be officially favoured. Firstly, the “poor” could thus be portrayed as a minority, small enough not to appear as a serious political threat and not too large as to overwhelm the state’s efforts to render them some token “assistance”. Secondly, by defining poverty in this arbitrary fashion, this draws attention away from a structural explanation of poverty, allowing it to be blamed, say, on personal “defects”. Thirdly, by effectively splitting the working population into those officially classified as “poor” and those who are not, this facilitates the state’s ideological objective of securing their support through a process of “divide and rule”.

Since Elizabethan times, poverty was equated with destitution. Initially, parishes were responsible for supporting the poor but, after the 1834 Poor Law, this task was taken over by boards of “guardians”, each comprising several parishes, which were overseen by a government commission. As David Donnison points out, paupers “had to pass a crude kind of means test-calculated in loaves of bread—and the relief they were given kept them alive at a standard which was intended to be worse then the lot of the lowest-paid labourers . . .” (The Politics of Poverty, 1982, p.10).

According to Donnison, one of the main purposes of the 1834 poor law was to “impose the labour disciplines required for an industrial economy”. Another was to mitigate the risk of social unrest. However, the “lowest-paid labourers” were themselves not given any assistance, and this effectively remained the case right until 1971 when the family income supplement was first introduced.

Then, in the early 20th century, the meaning of poverty underwent a subtle shift, in part instigated by Seebohm Rowntree’s classic surveys of poverty in York. Rowntree’s notion of poverty involved the formulation of a minimum income needed to ensure the reproduction of labour power at a level of physical efficiency increasingly demanded by industry. To that end, a simple diet sheet was prepared with help from the British Medical Association which would ensure adequate nutrition at minimum cost to the state. “Subsistence poverty” was held to be a standard of living that fell below this tolerable minimum; as such, it was distinguishable from “destitution poverty”—or what we usually mean by “absolute poverty”—which was simply concerned with physical survival.

From the standpoint of the state, the advantage of setting a fixed threshold is that it enabled it to look to a gradual rise in living standards to lift growing numbers of the poor above a condition of poverty without having to seriously address the vexed question of unequal distribution. In short, it could thus hope to progressively reap the political benefits of a society that was becoming increasingly “affluent”. However, at around about the time that The Affluent Society was first published, an increasing number of social scientists, led by Peter Townsend, began to question the validity of this approach.

Townsend and his colleagues, argued that, far from disappearing since the war, poverty had increased. They pointed out that the “poverty line” adopted by the then National Assistance Board (set up in 1948) was actually lower than even that recommended by Rowntree himself. Further, it was unrealistic to expect the poor to confirm exactly to such a stringent spending pattern paternalistically laid down by the state; what the state regarded as a “necessary expenditure” was not something that could be absolutely fixed for all time but constantly changed along with society itself. This called for a definition of poverty that was essentially relative and thus sensitive to the distribution of social wealth.

Their approach was one that had been anticipated, not only by Marx, but also, Adam Smith. In The Wealth of Nations Smith wrote that “by necessaries I understand, not only the commodities which are indispensably necessary to support life but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without“. Such a sentiment was, as we saw, echoed by Galbraith himself.

In due course, the notion of a fixed “poverty line” was abandoned and replaced by more relativistic measures of poverty. One current example is what is known as “Households Below Average Income” (HBAI) which identifies “the poor” as those living below 50 percent of average income. But, crucially, from the standpoint of the dominant ideology, this still retains the assumption that the poor constitute only a minority and, consequently, that the majority have reason to be grateful for not being included amongst their number.

But, in truth, that majority is impoverished. It is impoverished insofar as it has no other option than to sell its working abilities to those who monopolise the means of living and whose conspicuous wealth must irresistibly provide the very yardstick by which that poverty will be starkly exposed.

This may not be the poverty of material destitution. But if the measure of a human being consists in the accumulation of material possessions to which he or she may claim the, by that token, we are demeaned. And, ultimately, it is in this devaluation of our human worth—not simply in the fact of material inequality but in the meaning this society attaches to it—that we may glimpse the very essence of this poverty.

Robin Cox

https://socialiststandardmyspace.blogspot.com/2017/01/what-is-poverty-2000.html


NOT tin foil hat wearing

 

Update to SOYMB post, What does upcoming NATO exercise presuppose?

https://soymb.com/2024/01/what-does-upcoming-nato-exercise.html

The MailOnline has a long article, with lots of pictures and graphics;

Long-range missiles strike civilian targets across Europe. Baltic states are invaded. AI-controlled tanks rule the battlefield. As NATO warns of Russian attack in 20 years, a terrifying prediction of how it will unfold.’

It concludes, ‘So how can the West stop this from happening? According to experts, deterrence is the key. This requires NATO and its member states to have a military that is not only ready to repel any invading Russian force, but strong enough to outmatch Moscow’s armies to the point that the Kremlin will be unwilling to launch an attack in the first place.’

https://www.dailymail.co.uk/news/article-12983961/Long-range-missiles-strike-civilian-targets-Europe-Baltic-states-invaded-AI-controlled-tanks-rule-battlefield-NATO-warns-Russian-attack-20-years-terrifying-prediction-unfold.html

The Sun, 21 January, has, ’Three emergency moves the West must take NOW to crush Putin’s chilling plan to spark WW3 next year.’

https://www.thesun.co.uk/news/25402205/europe-nato-ukraine-russia-putin-ww3/

Are these stories in populist press newspapers being paid for and placed there by the industrial-military complex? Is this the equivalent of putting a frog in warm water then cranking up the heat?

Whilst one swallow does not a summer make it might be deduced that there is beginning to be more to this than appears apparent.

Capitalism, and its cheerleaders, is never to be trusted

THE SOCIALIST PARTY AGAINST ALL CAPITALIST WARS!

Fuel poverty kills


From the End Fuel Poverty Coalition comes this;

Following publication of new official data, the End Fuel Poverty Coalition has estimated that 4,950 excess winter deaths in the UK were caused by living in cold homes during winter 2022/23.

Historic records also indicate that when the mean winter temperature in the UK drops below four degrees centigrade, the level of excess winter deaths sky-rockets. The average temperature last winter was 4.3 degrees.

While December 2023 was exceptionally warm, average daily temperatures for the UK in January are forecast to dip as low as -1.6 degrees and fell to -14 in some parts of the UK.

The Government continues to rely on Warm Homes Discounts, Cold Weather Payments and Winter Fuel Payments as the measures of support to households, however these are limited in eligibility and impact.

This winter the Government refused demands to support households through an Emergency Energy Tariff and a help to repay scheme for those in energy debt.

But the Government’s approach is an increasingly dangerous strategy with the effects of climate change taking hold.

The Met Office official guidance is that El Niño winters are more likely to be colder in the UK and scientists predict that these El Niño winters could become more common as global temperatures increase. With 2023 being declared as the hottest year on record, campaigners have urged politicians to grasp the seriousness of the situation.

A spokesperson for End Fuel Poverty Coalition, commented

Figures from the Warm This Winter campaign show that 8.3 million adults are living in cold damp homes this winter and, as temperatures drop, these conditions go from being uncomfortable to downright dangerous.

But while households struggle, Ministers are sitting on their hands and leaving matters of life and death to chance.

Instead of taking action on energy bills, they have allowed energy firms to restart using the courts to force households onto prepayment meters and have now ruled out reform to energy tariffs to help those most in need.

They would rather play politics with a ridiculous Oil & Gas Licensing Bill that will do nothing to improve energy security or lower bills than take meaningful action to help households struggling right now.”

Jan Shortt, General Secretary of the National Pensioners’ Convention, which is part of the Warm This Winter campaign, said:

We are very concerned at the level of disinterest shown by the government in the welfare of older people at a time when the temperature is dropping well below freezing.

It fell as low as minus fourteen degrees this weekend even in towns and cities it does not get much warmer until later in the day. This presents a real dilemma for older people struggling with the cost of energy and other inflated bills – we know many are already afraid to turn the heating on at all.

Add to this the decision by Ofgem and the government to allow the force-fitting of energy prepayment meters to resume, while energy providers continue to enjoy inflated profits, smacks of abandonment of those struggling to pay their bills without any relief on the horizon.”

Greenpeace UK’s climate campaigner, Georgia Whitaker, said:

This is a national scandal. The UK has the least insulated homes in Western Europe. We’ve known this for years. Yet every year thousands of people are dying as a result. And our government is doing practically nothing to fix the problem.

Insulating homes at speed and scale right across the UK would drastically reduce these unavoidable deaths, as well as helping to tackle the cost of living and climate crises by lowering bills and slashing household emissions. But until that happens, this shameful government negligence will continue to cost people their lives, and without climate leadership the government will be punished at the ballot box.”

https://www.endfuelpoverty.org.uk/4950-excess-winter-deaths-caused-by-cold-homes-last-winter/

Asking how empirical the figure of almost five thousand excess winter deaths due to insufficiently heated accommodation is doesn’t detract from the cause of the problem. Whether five thousand, fifty, or even five, this is not acceptable in a society that purports to be civilised.

The hand wringing and disgust felt by the various organisations noted above are likely to be shared by most.

The ‘solutions’ offered do not however identify the underlying cause of this particular issue and whereas they might, if implemented, offer some modicum of relief in the short term, they are not a long term fix.

In a society based upon production of commodities and services for profit, not for free use, no matter how many sticking plasters are applied the major wound still remains and continues to suppurate.

To place your eggs in the basket of ‘government’ is naive at best and foolish at worst. There is a solution to the issue highlighted and it’s a straightforward one. It’s the replacement of Capitalism with Socialism. Whilst accepting that the social conscience of the individuals and organisations listed above is admirable it will ultimately be of more practical use to educate themselves as to the benefits of real Socialism and the means to achieve it.




Pepsi hurt by French meanies

 

Quelle surprise! Handbags at dawn? More like leave my profits alone!

Who knew that multinationals would be so sensitive? Further to the SOYMB post, French food for thought: Still Capitalism, we find the the sensitive souls at corporate Pepsi are upset with the French.

https://soymb.com/2024/01/french-food-for-thought-still-capitalism.html

PepsiCo is insisting that it was the one who initiated an inflation-fuelled contretemps with French grocery giant Carrefour, not the other way around.

Though Carrefour said that it had decided to pull Pepsi products off its shelves in France, Italy, Spain, and Belgium because they were getting too expensive too quickly, the Wall Street Journal reported (Jan. 8) that Pepsi had decided to stop.

Regrettably, Carrefour has mischaracterised the chain of events,” a PepsiCo spokesman told the paper. “Given the lack of agreement on a new contract, we stopped supplying to Carrefour at the end of the year, something they were aware could happen.”

Carrefour’s terse response: “We, at the Carrefour Group, have taken this decision.”

The whole thing started because French inflation spiked to double digits last year. The French government, which usually mandates that retailers and suppliers in the food business negotiate just how much prices will rise, had to step in and push for more talks.’

https://qz.com/pepsi-to-french-grocer-carrefour-you-cant-fire-me-beca-1851153522?

The MailOnline 20 January , has an article about shrinkflation.

From teabags to sausages – how we are paying more money for products that are getting smaller and include fewer expensive ingredients.’

https://www.dailymail.co.uk/news/article-12985601/From-teabags-sausages-paying-money-products-getting-smaller-include-fewer-expensive-ingredients.html





What does the upcoming NATO exercise presuppose?

On 23 January the Bulletin of Atomic Scientists will reset the Doomsday clock.

Just because you’re paranoid doesn’t mean to say capitalism won’t start a world war. How many more pieces does the jigsaw need to make the picture clearer? Capitalism makes life harder than it ought to be for many so the news that Western capitalism seems intent on replaying the Cold War and all the tensions that went with it may understandably not yet have crossed everyone’s radar. But has the softening up begun? Amongst the dross published by The Sun is a short piece which quotes Alexander Osovtsov, a Russian exile and ‘high-ranking Putin enemy.’

‘In a stark warning to policymakers, he argued that peace with the existing Russian state will never be possible.

Any kind of ceasefire between Kyiv and Moscow will “only be a chance for [Putin] to increase his forces and begin once again,” he said.

“This is the nature of the modern-day Russian state – [it] cannot live in peace, the only style of life is aggression and destruction.”’

https://www.thesun.co.uk/news/25422204/ww3-already-begun-russia-north-korea-putin-enemy/

Capitalism breeds war

‘War, the threat of war, and preparations for war are built into the global capitalist system involving as it does economic competition both between capitalist enterprises and between capitalist states. Economic conflicts arise over sources of raw materials, trade routes, markets and investment outlets, and strategic points and areas to protect these.’

Socialist Standard April 2022

https://socialiststandardmyspace.blogspot.com/2022/04/the-labour-party-flag-and-big-stick-2022.html

Two top Swedish officials have warned the country should brace for war as it prepares for the first stages of joining NATO. During a security conference in western Sweden over the weekend, the country’s Civil Defence Minister Carl-Oskar Bohlin said action needed to be taken rapidly to mitigate against a looming threat from Russia pointing to the developing situation in Ukraine as evidence that war could spread to other parts of Europe.

Many have said it before me, but let me say it with the force of my office – there could be a war in Sweden,” he said, adding that awareness needed to be translated into practical action, such as investing more heavily on defence spending. Such an effort can only be made quickly enough if the vast majority of people are aware of the situation and understand what is at stake.” The immediate reaction to his comments was mixed, drawing criticism from former officials while military chiefs praised the call to arms.’

The Independent 11 January 2024

https://www.independent.co.uk/news/world/europe/sweden-nato-ukraine-russia-b2476901.html

It’s reported that, ‘NATO is set to hold its largest round of war games in decades, with some 90,000 troops from all 31 member states – as well as Sweden – planning to participate. The drills will run for several months, and see training operations held across Europe.

Dubbed “Steadfast Defender 2024,” the exercise will kick off in January and continue into May, the US-led military bloc’s Supreme Allied Commander for Europe Christopher Cavoli announced.

“Exercise Steadfast Defender 2024 will be the largest NATO exercise in decades, with participation from approximately 90,000 forces from all 31 Allies and our good partner Sweden,” Cavoli said, adding that the drills would simulate an “emerging conflict scenario against a near-peer adversary.”

At least 1,100 combat vehicles are also set to take part in the war games – including 133 tanks and 533 infantry fighting vehicles – in addition to more than 50 naval vessels from aircraft carriers to destroyers. Around 80 helicopters, drones and fighter jets will join them.

Cavoli went on to say that the training operations would show NATO’s ability to “reinforce the Euro-Atlantic area via trans-Atlantic movement of forces from North America,” suggesting the drills would rehearse a major US deployment to the continent.

In a separate announcement, the bloc said the drill would demonstrate NATO’s ability to “conduct and sustain complex multi-domain operations over several months, across thousands of kilometres, from the High North to Central and Eastern Europe, and in any condition.”

UK Defence Secretary Grant Shapps said London would contribute 20,000 military personnel to Steadfast Defender, including troops with the Royal Navy, the Army and the Royal Air Force. British fighter jets, warships and submarines will also take part.

The last war games to rival the size of the upcoming exercise came in 1988, at the height of the Cold War, when 125,000 Western troops gathered for the US-led “Reforger” drill. The annual operation was meant to simulate a large deployment of forces to West Germany in the event of conflict with the Soviet Union, but was halted in 1993 following the collapse of the USSR.

German media has claimed that Berlin was bracing for hostilities with Russia, which it projected could arise as early as summer 2025.

Moscow has for decades voiced concerns about NATO’s expansion towards its borders, viewing it as an existential threat. President Vladimir Putin earlier cited Ukraine’s desire to join the bloc as one of the key reasons for the current conflict.’

https://socialiststandardmyspace.blogspot.com/2022/04/the-labour-party-flag-and-big-stick-2022.html

‘After Russia launched its military operation in Ukraine in late February, NATO deployed 40,000 troops to its eastern flank, nearly ten times more than a year before. Moscow, meanwhile, considers NATO military sites close to its border as a national security threat and has warned that sending heavy weapons from the West to Kiev risks a direct confrontation between Russia and NATO.’

https://soymb.com/2022/12/dig-out-old-copy-of-protect-and-survive.html 2022

‘The essence of the North-Atlantic alliance was a military and political bloc against Russia has not changed since its establishment in 1949. NATO has not changed its goals. In the grand geo-political strategic chessboard little changes ever since Anglo-Austro-Prussian-Franco concerns about an expansionist Tsar in the 18th/19th centuries.’.

https://soymb.com/2012/05/we-hate-nato-too.html 2012

Wealth disparity in USA

This is hardly a shock horror moment. All sorts of data shows the disparity in wealth, no matter how measured, between the minority ruling class and the majority working class. How many though are asking themselves how did they acquire all this?

A huge 93 percent of stock market wealth in the US is held by the richest 10 percent of the population – a new record. While Americans on the whole have been investing in the stock market at a higher rate, the amount of wealth held is still skewed toward the richest households.

According to Federal Reserve data, 92.5 percent of equities are held by the richest 10 percent of Americans – meaning it is largely the already-wealthy who are benefiting from last year’s stock market boom.

Following a disastrous 2022, Wall Street rallied in 2023. The benchmark S&P 500 index gained 24 percent last year alone, driven mainly by the so-called ‘Magnificent Seven’ tech stocks including Apple and Microsoft.

Lawmakers were among those who made the most out of trading stocks last year, it has emerged, with some members of Congress making returns as high as 238 percent.

Two decades ago, in 2004, 81.6 percent of stock market wealth was held by the richest 10 percent of the population, Fed figures show.

In 2014, it had risen to 86.8 percent, and has increased steadily since to the most recent figures from 2022.

While much has been said about Americans turning to investing during the pandemic – when they had more time and disposable cash on their hands – it appears that stock ownership has not shifted too much from the richest households.

A record 58 percent of households owned stocks in 2023, according to the Fed’s Survey of Consumer Finances, but in the aggregate the amount of stock most people own is small.

The bottom 50 percent of Americans by wealth owned just 1 percent of all stocks and mutual fund shares in the third quarter of last year, central bank data shows.

In the third quarter, the bottom 50 percent of households held $4.8 trillion of real estate assets, but just $0.3 trillion worth in stocks, according to Fed data cited by Business Insider.

The top 1 percent, by comparison, held over $16 trillion in stocks, and just over $6 trillion in real estate assets.

Stock market booms have traditionally reaped the most rewards for those who are already wealthy, researchers said in a 2020 study.

That is because the richest tend to have their assets tied up in equities, while the middle-classes tend to have their money in housing, the study said.

Over the past decade, the S&P 500 index has gained 155 percent, while the tech-heavy Nasdaq has risen by a huge 250 percent.

MailOnline 12 January 2024

https://www.dailymail.co.uk/yourmoney/banking/article-12952963/ultra-rich-record-share-stocks.html






Wealth disparity in USA

This is hardly a shock horror moment. All sorts of data shows the disparity in wealth, no matter how measured, between the minority ruling class and the majority working class. How many though are asking themselves how did they acquire all this?

A huge 93 percent of stock market wealth in the US is held by the richest 10 percent of the population – a new record. While Americans on the whole have been investing in the stock market at a higher rate, the amount of wealth held is still skewed toward the richest households.

According to Federal Reserve data, 92.5 percent of equities are held by the richest 10 percent of Americans – meaning it is largely the already-wealthy who are benefiting from last year’s stock market boom.

Following a disastrous 2022, Wall Street rallied in 2023. The benchmark S&P 500 index gained 24 percent last year alone, driven mainly by the so-called ‘Magnificent Seven’ tech stocks including Apple and Microsoft.

Lawmakers were among those who made the most out of trading stocks last year, it has emerged, with some members of Congress making returns as high as 238 percent.

Two decades ago, in 2004, 81.6 percent of stock market wealth was held by the richest 10 percent of the population, Fed figures show.

In 2014, it had risen to 86.8 percent, and has increased steadily since to the most recent figures from 2022.

While much has been said about Americans turning to investing during the pandemic – when they had more time and disposable cash on their hands – it appears that stock ownership has not shifted too much from the richest households.

A record 58 percent of households owned stocks in 2023, according to the Fed’s Survey of Consumer Finances, but in the aggregate the amount of stock most people own is small.

The bottom 50 percent of Americans by wealth owned just 1 percent of all stocks and mutual fund shares in the third quarter of last year, central bank data shows.

In the third quarter, the bottom 50 percent of households held $4.8 trillion of real estate assets, but just $0.3 trillion worth in stocks, according to Fed data cited by Business Insider.

The top 1 percent, by comparison, held over $16 trillion in stocks, and just over $6 trillion in real estate assets.

Stock market booms have traditionally reaped the most rewards for those who are already wealthy, researchers said in a 2020 study.

That is because the richest tend to have their assets tied up in equities, while the middle-classes tend to have their money in housing, the study said.

Over the past decade, the S&P 500 index has gained 155 percent, while the tech-heavy Nasdaq has risen by a huge 250 percent.

MailOnline 12 January 2024

https://www.dailymail.co.uk/yourmoney/banking/article-12952963/ultra-rich-record-share-stocks.html