The Crisis of British Capitalism

[p017] THE CRISIS OF BRITISH - CAPITALISM by W. Hunter From 1950 to 1952 the volume of world exports rose 7 per cent but the volume of British exports fell 5 per cent. Britain’s share in the exports of manufactured goods by the ten main exporting countries fell from 26 per cent to 22 per cent. The drop has continued this year. The “‘ Financial Times ”’ of the 24th of November 1953 bluntly accused the Government of failure in its export policy. ‘‘ The favourable balance of the U.K. balance of payments so far this year owes a great deal to sheer luck,” it declared “...the latest Treasury Bulletin of Industry points out that the same volume of exports as was actually ‘achieved in 1951 would today buy 25 per cent more im- ports. It is chiefly this fortuitous movement in world mar- kets that has‘ made it possible for Britain to relax her im- port restrictions and to increase the range of consumer choice at home.”’ The struggle for markets is becoming sharper, and Bri- tain is losing out in its battle with its major competitors. The changes in the volume of exports of the three principle capitalist powers—Britain, Germany and the U.S.A. make this plain. If we take the volume of exports in 1950 as 100, then in June 1953 British exports were 96, the Ger- man figure, however, was 179 and the American, 144. A bitter price war is waging, and Britain is getting the worst of it. Last November the Chancellor of the Ex- chequer, Mr. Butler, speaking to the ‘“‘ National Produc- tion Advisory Council on Industry,” declared: ‘In many important non-sterling areas we seem to have lost ground to competitors pretty steadily over the last two years...”’, Heathcote Amery, from the Board of Trade, added to this —**,.. he regretted the loss of the Indian Locomotive Con- tracts ...there was quite a substantial difference in the 17

[p018] to lost were contracts locomotive The prices.” German Germany. - their expanding are Japan and U.S.A. the Germany, shrinking. is share Britain’s while market world the in trade Commonwealth own’ ‘ her in even undercut, being is She depres- American an of threat the is there Now, markets. with competition fiercer into America push will which sion in exports British of difficulties the increase and Britain, : markets. American ATTACK AN PREPARES CAPITALISM main- in had has Government this successes Whatever results the been have production capitalist British taining are which food, and materials raw of prices in drop the of goods manufactured of prices the to relation in imported, move- this of advantage Taking exports. Britain which calls ”’ Times Financial ‘“‘ the prices—which world of ment pursued 1951, since have, ’—they movement fortuitous “‘ a home. at prices of decontrol and derationing of policy a result The subsidies. food out wiped virtually have They re- fallen, have prices food wholesale while that been has . risen. have prices food tail Janu- since cent per 11 by risen have prices food Retail prices food wholesale period, same the in while 1952, ary, the had words, other In cent. per 18 over just by dropped Tories the when existing level the at retained been subsidies would wholesale as well as prices retail power, to “came fallen. have appealing been has Government Tory the policy its In the and class capitalist supporters—the traditional its to rationing by benefit who class, middle the of ranks higher in extra pay to prepared quite are They purse. the by consumer of variety and quantity greater a receive to order of standard higher a them, For food. particularly goods, pay. to afford can they cost, extra the worth is living the Government, the of policy housing: the with Similarly the again Here sale. for houses of thousands of building require not do money the with Those benefit. classes same queue. housing the in place their take to the and increase rent a with bribed are landlords The 18

[p019] promise of decontrol of rents in the near future. The Tory Government is serving its class and solidifying its base in preparation for conflict with the workers movement. Capitalist Britain, in short, is moving into a crisis. That crisis can only be met by the most drastic methods. That must now be seen as the background to all political and industrial developments. . Costs are too high for British capitalist economy. The situation is in many ways analagous to 1931. British capit- alism must cut labour costs. Real wages are already being undermined by the rise in food: prices. But more will be demanded; money wages and working class standards built up during the war and post-war period must be directly attacked. Despite the illusions expressed from the platform at the Margate Conference of the Labour Party on the possibi- lity of an immediate election, the Tories since have demon- ' Strated unquestionably, that they are determined to hold on to the Government to help British capitalism to meet this situation. The big problem for the capitalist class is how to pass over to the attack on Labour’s standards in face of a trade union and labour movement embracing a greater number of workers than ever before, which has not experienced any big defeats for many years; and in which there is a growing militancy despite the opposition of sections of the leader- ship to direct action, and despite their attempts to compro- _ Mise with the Tories. At the present time they are con- ducting a defensive struggle against the wages movement, manoeuvring for the best possible ground for a battle to stem the tide, and strike a blow at the trade union move ment. The Government retreated in the face of a serious chal- lenge from the railwaymen. It knows it cannot defeat a united working class movement and it feared that the rail- waymen would be backed by the engineers, the miners, the building trade workers all of whom have wage demands and all of whom know that the railwaymens’ case is more 19

[p020] a is there though even But own. their than desperate the of sections basic the among determination growing force capitalism British of difficulties economic the workers All labour. against offensive an for prepare and resist to it are explosions political and industrial for ingredients the here. SOLUTION NO IS STATE WELFARE THE PATCHING The situation. the of seriousness the realise must Labour with sympathy little a for room found has ’’ Herald Daily ** How- wages. higher for pressing are who unionists trade in clashes threatening the for presents it reason the ever, cut- been has Government Tory the that simply is industry symp- are These prices. decontrolling and subsidies ting Un- capitalism. British of crisis disease—the the of toms that appear can it then recognised is itself disease the less up patch to order in power regain to simply task.is Labour’s torn have Tories the where State Welfare the of fabric the it. : 1953) 29th, (December declares ’”’ Herald Daily ‘‘ The Mr. abroad, falling or stable was living of cost the While ** up forcing was subsidies, in cuts and decontrol by Butler, has Britain result, a As country. this in wages and prices ana Japan Germany, to market export the on heavily lost Mr. by repentance” of sign ‘‘ A countries. other and USS. _ a than less Nothing unrest. labour reduce might “‘ Butler, greater even avert will policy Government in change dangers.” Daily “ the as however, question, a simply not is It con- subsidies, putting of believe, us have would Herald” nov is task Labour’s back. services health free or trols attacks. Tory against State’? Welfare “ the defend to just over taking by crisis the of roots the out dig must Labour For planned. be can production that so industry capitalist a on guaranteed be longer no can State’? Welfare “ the working of product a was It capitalism. of foundation the towards fact, In boom. post-war the in pressure class ”’ State Welfare ‘‘ the itself, Government Labour the of end drive. rearmament the under blows suffering already was the of wing right the for speaking Herald,” Daily “‘ The 20

[p021] Labour Party and Trade Unions, sees the threatening economic crisis from the same angle as the Tories. It has nothing to do with how we produce, but only with how much, and how cheaply, we produce. If wages and prices were frozen then Britain would not have “lost heavily on the world market.” That is the practical conclusion from the ‘‘ Daily Herald” analysis. It talks of a change in Government policy and not a change of Government. But the Tories and the employers can do no other but attempt to unload the crisis on the workers’ back. It is not a ques- tion of more or less controls, but how to take industry out of capitalist hands. In fact the Tory Government itself may be forced to in- troduce some controls to ensure that capital investment goes to the export industries and not to industries produc- ing consumers goods for the home market. Every capita- list crisis of markets is accompanied by greater interven- tions of the state. And a Labour Government, if it failed to lead a movement to take over the basic industries and plan Britain, would be forced, in order to maintain capi- talism, to carry on a policy of concessions to the industrial- ists, to ‘stimulate’ production while cutting the workers’ standards. ° . THE LESSONS OF THE CRISIS The big task for the Labour Movement shaping up for 1954 is to get a Labour Government which will take radi- cal measures against capitalism. The first question arising from that is: how to get the Tories out ? It is more than ever evident that they are determined to hang on to power. No smart manouevres in Parliament or filibustering is go- ing to remove them. The fight to get them out must con- sist of more than Parliamentary debates. That much is clear. _ The economic situation of Britain precisely means that the main struggle against the Tories is going to shift. from Parliamentary speeches to the factories, the mines and the workshops. The left of the Labour Party can gain heart from the fact that many thousands of trade unionists: will now be forced sharply to draw political lessons in action. Their wages struggle has deep political implications. When 21

[p022] inevitably industry, in movement in are workers of masses fer- political and life intense and varied more a is there ever than more Today organisations. workers the in ment politics. of problems to straight leads movement wages the battle. serious every in intervene must Government The the serves Government Tory the policy wages its By for raises this beginning the at Right represents. it class a securing of question the struggle in involved worker the class. his of interests the represent will which government wing right those that is importance further of is What against bulwark the been have who leaders union trade coalition hidden a for and Party Labour the in wing left the of growth the with also conflict in are Tories the with the of Conference Margate The industry. in militancy had there Morecambe since that, showed Party Labour right the and left the between stalemate a almost developed give will developments industrial These party. the in wings unions the in Relations left. Labour the to impetus new in- of growth a be inevitably will there fluid, become will have which organisations the in even militants of fluence wing. right the of bulwark the been cob- the away sweep will workers the of movements Big will They . Party. Labour the in thinking’ new ‘ of webs produc- capitalist of problems classical the all that show of question the that and remain struggle class the and tion production. of question the before solved be to has power not One Party. Labour the from needed is lead bold A of crisis this from lessons serious the out draw to afraid people working the mobilise to afraid not and capitalism rul- Government, Tory the that now clear is It it. against be only will minority, capitalist the of interests the in ing demonstration. and action mass by down shaken de- the around developing already is action mass That ' opportunities generate will It increases. wage for mands board the sweep to Party Labour the in wing left the for necessary. leadership bold the provide and Party the in mea- Socialist with proceed rule, Tory end can we Then com- capitalist eliminate will which abroad and here sures planned and production planned substitute and petition trade. international 22