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Is Capitalism on the Wane?

John Mcdonnell, Labour’s Shadow Chancellor today announced Labour’s plans to renationalise the railways and many other public utilities at no cost to the public.

Does this mean that Jeremy Corbyn’s rejection of contemporary capitalism is now the new mainstream, and/ or does this represent the end of Capitalism as we know it?

It does seem that Capitalism has become something of a dirty word ever since the financial crash of 2008, and in a recent poll, most British people regard capitalism as ‘greedy, selfish, and corrupt’; and many are more sympathetic towards socialism, and favor the renationalisation of the railways and utilities.

 

However, the ideological scare-mongers are out, claiming that re-nationalisation will be far from free, and it will be interesting to see how much genuine public appetite there is for bringing back services into public ownership!

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The Capitalist Mode of Production

Understanding the Capitalist Mode of Production is crucial to an understanding of both Modernisation Theory and Dependency Theory – I thought the passage below did a nice job of summarizing what the ‘capitalist mode of production’ is.

A a special treat for my American readers, I have used the correct, British spelling of ‘labour’.

‘Today we think of Capitalism as the normal way of organising economic activity and tend to take it for granted, but it is a very different mode of production to previous feudal economies and hunter gatherer livelihoods…

Capitalism is based on private ownership of enterprises such as factories, plantations, mines, offices or shops and the operation of these assets for profit. Other elements of the means of production such as labour, land, technology and capital are also privately owned and can be bought and sold.

Labour is the most important input for production. Under capitalism, labour, the work of men and women, has become a special type of commodity which is sold in the marketplace. Capitalists use their money to buy labour and combine this commodity with other inputs, such as land, raw materials etc. to produce new goods and services. In profitable businesses, the economic value of these new goods and services are greater than the other inputs required to produce them.

Workers’ labour generates a surplus value greater than the workers’ wages. When the capitalist sells the finished commodities on the market they extract surplus value from the labour of the workers by paying them less than the value of the work they have completed. Capitalists are able to profit from the labour of others because they control the means of production.

The capitalist mode of production was different to earlier feudalism because of the role for waged labour and the importance of capital and markets for acquiring wealth. The important transition which lead to the expansion of capitalism around the globe through colonialism was the concentration of capitalist power through the fusion of state authority and capital.”

Source – Brooks, Andrew (2017) The End of Development 

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Why Did Labour Gain Seats in the 2017 General Election?

In the recent June 2017 General Election, Labour won more votes than it did in 2001, 2005, 2010 or 2015, proving almost all the forecasts and commentators wrong.According to this Guardian article there are three main reasons for this…

It motivated young people to get out and vote.

A lot’s been made of the historically high turnout by 18-24 year olds…. It looks like in key constituencies – from Harrow West to Canterbury (a seat that has been Conservative since 1918) – the youth vote was vital. Labour showed it cared about young people by promising to scrap tuition fees, an essential move to stop the marketisation of higher education, and it proposed a house-building programme that would mean many more could get on the property ladder.

This is in stark contrast to the two other major parties – the Lib Dems in 2010 under Nick Clegg lied to them, and the Conservatives have attacked them – cutting housing benefits for 18- to 21-year-olds, excluding under-25s from the minimum wage rise and slashing the education maintenance allowance. At this election, Theresa May offered nothing to young people in her manifesto. Their message was: put up with your lot. Under the Tories, young people have been taken for granted and sneered at as too lazy to vote.

The NUS reported a 72% turnout by young people, and there is a definite thread in the media attributing the swing towards Labour as down to this.

However, this is contested by Jack Sommors in this article who suggests that it was middle-aged people who swung the election result away from the Tories.

‘Lord Ashcroft’s final poll, which interviewed 14,000 people from Wednesday to Friday last week, found people aged 35 to 44 swung to Labour – 50% voted for them while just 30% voted for the Tories. This is compared to 36% of them voting Labour and 26% backing the Tories just two years ago’.

A further two reasons which might explain the swing, let’s say among the younger half of the voting population, rather than just the very youngest are:

Labour offered localised politics, not a marketing approach

Labour rejected the marketing approach to politics in favour of a strong, localised grassroots campaign… this was not simply an election May lost; it was one in which Corbyn’s Labour triumphed. Labour proposed collectivism over individualism and a politics that people could be part of.

Labour offered a genuine alternative to neoliberalism…

Labour offered a positive agenda to an electorate that’s been told its only choice is to swallow the bitter pill of neoliberalism – offering a decisive alternative to Tory austerity in the shape of a manifesto packed with policies directly challenging what has become the economic status quo in the UK. Labour no longer accepted the Tory agenda of cuts (a form of economics long ago abandoned in the US and across Europe): it offered investment in public services, pledged not to raise taxes for 95% of the population, talked about a shift to a more peaceful foreign policy, promised to take our rail, water and energy industries out of shareholders’ hands and rebalance power in the UK.

So how is this relevant to A-level Sociology…?

  • In terms of values…It seems to show a widespread rejection of neoliberal ideas among the youth, and possibly evidence that neoliberal policies really have damaged most people’s young people’s (and working class people’s) life chances, and this result is a rejection of this.
  • In terms of the media… It’s a reminder that the mainstream media doesn’t reflect public opinion accurately- just a thin sliver of the right wing elite. It also suggests that the mainstream media is losing its power to shape public opinion and behavior, given the negative portrayals of Corbyn in the mainstream. .

Value-Freedom and explaining election results…

The above article is written with a clearly left-leaning bias. Students may like to reflect on whether it’s actually possible to explain the dramatic voter swing towards Labour objectively, and how you might go about getting valid and representative data on why people voted like they did, given that there are so many possible variables feeding into the outcome of this election?!

Sources

Young people voted because labour didn’t sneer at them. It’s that simple

General Election 2017: Young turn out ‘remarkable’