Greece « Labour Uncut

Posts Tagged ‘Greece’

Look at Syriza. Look at Greece. That’s what Jeremy Corbyn would do for Labour and Britain

14/07/2015, 11:38:45 AM

by Kevin Feeney

During a recent twitter discussion about the lessons to be learnt from the latest stage of the interminable saga of the Greek crisis, one of Britain’s finest centre-left commentators, Phil Collins, claimed that it was quite simple; there are in fact no lessons for the British left from Greece.

After six months of hyperbolic nonsense about a war between democracy and austerity from many sections of the Labour party, this is an understandable reaction – especially in light of the colossal differences between the societies, political systems and present economics of the two countries.

Nevertheless, Collins goes too far here – there are in fact two key lessons which we might usefully draw, even if these are more reinforcements of points that might have been guessed before rather than innovations.

The far left can win (just about, if presented with the total collapse of the political system)

Commentators like Collins spend much of their time pointing out to the sort of people now backing Jeremy Corbyn for Labour leader that they can’t possibly win a general election. Many of them now respond that Greece’s election of the far left Syriza proves otherwise and it’s true; all it would take would be the complete implosion of the economy, political system and much of civil society and the UK too could have an extremist government.

In Greece, even presented with all of those things and a five year depression under the major parties of left and right, the far left still barely crawled over the finish line on a vote share so low that it was below that won by the second placed party in every Greek election between 1985 and 2009, necessitating coalition with Greece’s equivalent of UKIP.

This is not to suggest that this government lacks legitimacy. The Syriza regime, after all, possesses almost as much legitimacy as Cameron’s Conservatives, who won a higher vote share on higher turnout months later.

Yet it has required an enormous amount of spin and new levels of self-delusion for many on the left to convert a bare mandate from an exhausted and disillusioned electorate reckoning things can’t possibly get any worse into what one columnist hilariously dubbed “the politics of hope.”

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The 1980s were a tragedy for Labour, but this decade is turning into a farce

02/07/2015, 12:14:07 PM

by Alex White

Two things happened in the Labour party recently which managed to make me sympathetic to things said by both Karl Marx and Neil Kinnock, which is no mean feat.

First, a group of left Labour MPs did what groups of left Labour MPs are reduced to now: they wrote a letter calling for the cancellation of Greek debt, which is one step up on the ladder of Parliamentary left-wing activism from signing an Early Day Motion.

Letters do not generally cause me distress, but letters telling the country that a group of Labour MPs want to let another country abdicate its fiscal responsibility, when our own party has lost two elections weighed down by perceptions of our own fiscal irresponsibility, are definitely a bad thing.

Second, at the Unions Together hustings for the Labour leadership earlier this week, Jeremy Corbyn rallied passionately on the topics of Hugo Chavez, Greece, Colombian trade unionists, Greece again, TTIP, how the bad outweighed the good done by the last Labour government, and occasionally the Conservative Party.

Marx was wrong about a lot of things but he had a good turn of phrase, particularly when he said of a dying regime that it ‘only imagines that it still believes in itself and asks the world to share in its fantasy’.

The same is true of the Labour left who are rallying not just around Corbyn but against any attempt to make Labour electable. They would have you believe that the more you wrap their language around you – anti-austerity, public ownership, industrial action, alternative economic strategies – the more you are on the side of working people.

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Finding grace in America and Europe

29/06/2015, 05:44:24 PM

by Jonathan Todd

“We as a country,” said President Obama in his first statement on the Charleston shootings, “will have to reckon with the fact that this type of mass violence does not happen in other advanced countries.” He spoke with a forlorn resignation that was odd coming from the world’s supposedly most powerful person and realistic, given “the politics in this town foreclose a lot of (gun control) avenues right now”.

In the past week, however, Washington DC has not been the cradle of disappointment that it has for Obama. Through rare bipartisanship, he’s taken a big step towards completing the Trans-Pacific Partnership (TPP), a massive trade deal intended to cover 40 percent of the world economy and an important plank of Obama’s legacy planning. Obamacare and gay marriage, issues upon which the Supreme Court has this week backed him, also feature in this legacy.

Obama’s America, though, is also a place where, according to the National Bureau of Economic Research, black men in their 20s without a high school diploma are more likely to be incarcerated than employed. It will take, of course, much more than TPP to change this. Only in relation to prison services does black America have better access to public services than white America.

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Golden Dawn’s neo-Nazis came third and wait in the wings. Europe must remember that when negotiating with Syriza

26/01/2015, 09:36:33 AM

by Ranjit Singh Sidhu

It has been a few years since the great financial crash, which started when the US financial houses saw the products they created out of junk and sold as pure gold turn back to worthless junk. One by one they were either scarified or saved, with a notable survivor being one of the biggest culprits of all: Goldman Sachs.

We can look back and see how the contagion spread across the world leading to government after government instinctively cutting back spending, this in turn leading to an inevitable spiral down first to recession and then to a depression, every area of the globe entering a period of unrest.

In Europe one country, being bound by a financial accord that meant it was dictated economically by others, suffers worst of all. Unemployment had risen from 8% to 30%, it has also lost 42% of it’s economic output. With the old political order seen as failing the people turn to alternative radical parties. In just 3 years one party that polled 2.3% now is on the edge of power: It has 1.4 million members and stands on the edge of gaining power with 37% of the vote.

Sound familiar?

The party is the National Socialist Party, the country Germany in 1932 ,the financial crash that of Wall Street 1929 ( and yes, Goldman Sachs was pivotal in selling junk in that crash as well) .

On the 31st of July 1932 the Nazi party received 37.4% of the vote and became the largest party in the Federal Elections. The German people’s rising anger towards the financial reparations of the Treaty of Versailles had been shown a few years earlier when the referendum calling for the abolition of the ‘Law against the Enslavement of the German People’ received 94% of the vote.

As Syriza goes about building a government, Greece stands with 30% of its economic output gone since 2009, unemployment at 26% and youth unemployment at 50%. We must not be deaf to history and what can arise when economic destruction is imposed on a country.

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Why the government is PIG ignorant on economics

06/03/2012, 02:12:07 PM

by Stuart Rodger

The world is transfixed by the Greek Tragedy unfolding before our eyes. It is increasingly clear for those on the left that what is being foisted upon the Greek people by the IMF, EU, and ECB as we speak is nothing less than a form of economic ‘shock therapy’: the labour markets must be ‘liberalised’, large public assets are to be sold off (at rock bottom prices), and banks are to be re-capitalised but maintain their “managerial independence”.

The Golden Dawn – Greece’s equivalent of the BNP – is on the verge of winning representation. In a recent Newsnight report, one unemployed, professional Greek citizen spoke of “civil war”. The place where democracy was born is turning out to be the place where democracy goes to die.

But far from being an irrelevant calamity at the other end of Europe, the economic crisis unfolding may have some important lessons for us – David Cameron et al, after all, routinely bring up the examples of Portugal, Ireland, and Greece as warning signals for what could happen to Britain should it not cut its way out of its deficit, with the price of debt spiralling up and growth stalling.

But a cursory reading of the news made me wonder if austerity is in fact exacerbating their problems, and is in fact the root cause of their problems in the first place.

So I decided to dig into the statistics to see if my theory was true. So, is David Cameron’s government PIG-ignorant? (see what I did there?). The following fiscal and growth statistics are all from the Eurostat and World Bank websites respectively, unless otherwise stated (measures of inflation have also been taken from the World Bank).

P is for Portugal. This country is important because it has been held up by David Cameron as his response to the Labour Party’s proposals to halve the deficit over the course of this parliament, rather than try to eliminate it entirely.

What policy did they follow? Initially, they increased spending moderately and the result was a moderate recovery. But in May 2011 they announced cuts to public spending and then, six months later, Portugal was reduced to “junk” status, with Eurostat estimating moderate contraction in 2011.

The lesson from Portugal is that spending brought recovery, and cuts promptly killed it off, worsening their debt problems. Crucially – punishment by the bond-markets came post-austerity. By citing Portugal, Cameron cites an economic experiment which proves him wrong.

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Greece has taken one for the team; for now

23/02/2012, 08:00:22 AM

by Peter Watt

What a relief, the world has been saved. Again.

In 2008 there was a financial crisis that many have described as being worse than that of the 1930s. Markets collapsed, banks failed and lives were ruined. In essence, and over many years, much of the western world had begun to believe in magic. Somehow we could all have really low taxes and really high spending by governments. We could have relatively low interest rates and unlimited access to borrowing. Individuals and governments indulged themselves as excess cash from the economies of the east poured into a market of gorging consumers. Credit cards, mortgages, car loans, government bonds – it didn’t matter as there was so much money to go around.

But it was all too good to be true and it couldn’t go on forever.

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