The total chaos consuming the Liz Truss government, leaving her a lame duck prime minister after just a few weeks in office, may be fun to watch but comes with a sting in the tail.
That’s because the disintegration of the Tory Party before our very eyes expresses a moment of deep political crisis for globalised capitalism which can’t be left to fester.
Global corporations and financial markets rely on the state to get its act together and create the conditions for the economy to flourish. When political direction of the state breaks down, as it has, the result is turmoil and instability.
That can’t be allowed to last.
The crisis of the state – from the Treasury to the Bank of England to the cabinet, hasn’t come out of the blue. In fact, it is the outcome of several decades of neoliberal political economy.
The financial crash of 2008, when major investment banks were wiped out and others rescued with taxpayers’ money, was a turning point. A global economy driven by massive public and private debt proved unsustainable.
A decade of austerity followed that wrecked public services, accompanied by gross and increasing inequality, low wages, inflated house prices and job insecurity. Growth was noticeable by its absence.
Political fantasy kicked in with the notion that Brexit would make the UK economy a force to be reckoned with. That dream turned to nightmare when Boris Johnson’s corrupt regime collapsed. Truss, who is clearly out of her depth, then convinced party members that her version of fantasy economics would unlock the door to untold riches for all.
Having sacked her chancellor for implementing policies they had agreed together, which have since been abandoned by Jeremy Hunt after the financial markets effectively staged a strike, her days are numbered.
Surely the greater lesson here is that in that there are actually no solutions within the framework of capitalist economy where profits and a return on capital are the only driving force. Neither state control nor wild, ignore-the-markets let’s borrow billions can outweigh the mountain of debt that is greater than at the time of the 2008 crash.
Tell that to the Labour leadership! Pat McFadden, the shadow chief secretary to the Treasury, remarked: “Labour will match the financial stability the country needs with a proper plan for growth based on the efforts of the whole country, not tired and failed trickle down economics.”
With this patriotic faith in capitalism, Starmer’s party could end up implementing a new austerity, either in a national government cobbled together because the Tories are too divided to rule or in a post-election coalition.
Either way, the capitalist system – economically and politically – offers no way forward. Climate chaos will intensify, inequality continue to grow and public services disintegrate.
Alternatives do exist to mobilise people for system change. Our new podcast introduces some ideas and proposals. Take a listen and then join the discussion on a way forward on the RDM Community forum.
Amazing that even just the idea of an alternative world–without capitalism–is censored or out of bounds throughout the entire media. Maybe not so amazing considering who owns and controls the media, but it means exciting ideas don`t get aired except by small organisations such as the Real Democracy Movement. Of course the Labour Party should be exploring these alternative worlds, together with the means of putting one in place. But under Starmer and co the party is confined to simply criticising the Tory Government as incompetent and putting forward the idea that Labour could run the same kind of economy better. The Labour Party becomes the alternative Tory Party that will do everything in its power to obey the commands of the capitalist market–without any inspiring system-changing ideas and policies to excite the hundreds of thousands of youth and millions of trade unionists that face such a bleak future.
Both parties are no longer fit for purpose We need alternatives I don’t believe that for 1 minute that Starmer’s crew are going to be any different I myself joined the Social Democratic Party in April 2020 because of my dislike of the 3 tired old parties