It’s now clear that cuts in public spending, and resistance to them, will be the stand-out issue in domestic British politics during the coming years. The three major parties, the mass media (from the Mail to the Guardian, BBC to talk radio), think-tanks and pundits, not to mention the OECD, all insist that large-scale cuts must be made, that they are the only way to address the projected gap between state revenues and spending, and that this gap is the number one problem facing the British economy.
It’s been a remarkably deft manoeuvre. In less than a year, a system-challenging global financial crisis has been turned into a tussle over national bookkeeping. The problem has been redefined as an allegedly unsustainable public debt, rather than an economic recession brought on by demonstrably unsustainable private debt.
The ‘hole’ in the public finances that has occasioned so much hysteria is the result, not the cause, of the economic crisis. The public sector did not create the hole (that was the work of the banks) and it does not follow that cutting public spending is the way to fill it.
There are, of course, savings that might be welcome but will not even be considered. Getting out of Afghanistan and Iraq, cancelling Trident, ditching ID cards, ending exorbitant payments to outside consultants, curtailing the number of people we imprison – all these together would go some way to reducing the deficit. Even more progress would be made by increasing taxation on corporate profits and individual wealth.
The fact that such options are being ignored suggests that closing the deficit is not quite the ineluctable, non-negotiable priority its proponents claim. The cuts policy is not a matter of economic necessity but of political choice – in this case, the wrong choice.
Public sector cuts will lead to fewer and poorer public services at a time when more people are in greater need of them. They will entail huge increases in unemployment and casualisation, which will weaken workers in the private sector, reduce overall economic demand and thereby renew and deepen the recession. As numerous economists have argued, what’s needed now is exactly the opposite: greater stimulus, job creation and increased demand.
What’s been involved in this manoeuvre is a massive transfer of responsibility, moral and fiscal, from speculators and manipulators of debt to the general public. Despite its flimsy intellectual foundations, it has secured widespread acceptance. A dispiriting example appeared recently in the Guardian, which headlined a spread on the current distribution of UK public spending with the question ‘What would you cut?’
The Tories’ con-trick has worked partly because Labour subscribed to it, but also because it accords with popular mythology, with a consciousness generated by three decades of neoliberal ideology echoing in every corner of our culture. The litany is familiar: individualism, consumerism, disbelief in collective change. All this, unfolding amid the violent instability of our times, has bred a lack of compassion and empathy, a knee-jerk readiness to blame victims and a suspicion of appeals to solidarity. In defending the public sector, we’re challenging not just three parties but three decades of moralistic neoliberalism – a system that evacuates ethics from its functional core while setting itself up as some kind of moral categorical imperative.
We need to expose this ‘common sense’, however deeply embedded, as self-serving nonsense.
Thatcher liked to compare the national economy to the individual household, where everyone knows that you can’t spend more than you earn. Leave aside the fact that households regularly borrow many times their annual earnings in the form of mortgages, or that the Polonius-style lecturing might be more fairly delivered to the bankers – the analogy is bogus at the root. As Marx explained, and most capitalists know, the national debt was the engine of modern capitalism, and credit was the necessary fuel of capitalist growth.
Tragically, the public sector as a whole has come to be regarded as an optional extra, whereas, in fact, public sector workers reproduce the framework required for modern economic activity, for the existence of our society. In the deeper sense of the word, they, and not the bankers, are the ‘wealth creators’.
The cuts will be driven by the propagation of artificial divisions between ‘frontline’ and ‘bureaucratic’ public sector employees, between ‘productive’ and ‘unproductive’ workers, between the deserving and the undeserving poor. Misplaced popular resentment against public sector workers, an expression of envy, fear and denial of shared social dependency, will be exploited to the hilt. Public sector workers are being portrayed as enjoying a cushy life, over-protected from the economic maelstrom the rest of us have to face. In fact, they are paid less than their equivalents in the private sector, their pay has grown more slowly than in the private sector, and those infamous public sector pensions are actually worth on average £7,000 a year.
In any case, the precariousness of labour is not a virtue to be spread more widely. In fact, one of the aims of the forces pushing the cuts is to increase the precariousness of workers in order to increase profits. Private sector workers, beware.
The deficit is not apocalyptic. Historically, in comparison with other countries, and in light of the needs of the hour, it is not excessive. Despite the scaremongering, there is no reason to believe that it cannot be financed. It will diminish as the economy grows, as long as that growth is not of the lop-sided, top-heavy type that helped precipitate the crisis in the first place. Redistribution and recovery must go hand in hand. That’s not just a moral aspiration, it’s an economic necessity.
‘Welfare scroungers’, ‘feather-bedded bureaucrats’, the ‘evils of debt’ – the arguments and stereotypes of the 1970s are being recycled. In the middle of that decade, a redistributive Labour government, faced with a global economic downturn, submitted to IMF demands for cuts in public spending. The volte-face split the labour movement and led to a wave of public sector strikes. The media hammered public sector workers while Labour leaders lectured the movement about the non-negotiable necessity of shrinking state spending. What was true, then as now, was that the cuts and wage freezes were needed not to stave off bankruptcy but to restore the profitability and privileges of capital. The upshot was the election of Margaret Thatcher in 1979.
Although you wouldn’t know it from many portrayals of the era, the 1980s witnessed protracted local and sectoral struggles against public sector cuts. Central to Thatcher’s ambitions was an attack on local government powers and spending. This required not only squeezing councils’ allocation from central funds but restricting their local revenue raising powers.
What came to be known as ‘rate-capping’ was an attempt to force Labour-led authorities – centres of resistance to Thatcherism – to impose cuts on their own constituencies. A plan of resistance, relying on refusal by Labour councils to implement rate-capped budgets, was mapped out and agreed by Labour parties, trade unions and community organisations. The ensuing struggle coincided with and was profoundly influenced by the course of the miners’ strike. In the end, the bulk of Labour councillors broke ranks, with the support of party and trade union leaders, and opted for what they dubbed the ‘dented shield’ approach (because it was, they said, better than no shield). They became transmitters and enforcers of Thatcher’s claim that There Is No Alternative.
Not surprisingly, in this context, resistance was fragmented and isolated. We were told that nothing could be done until we had a Labour government at Westminster. By the time that happened, both local government and the Labour party had been gutted.
A problem we faced, then as now, was the inadequacy and poor quality of many public services. The reality may be ludicrously misrepresented, but those whose experiences with public services have been frustrating are inevitably reluctant to spring to their defence. Part of the answer to that is to expose who are the real losers and winners in the cuts programme. Another part involves tying opposition to particular cuts to positive support for enhanced and accountable public services in general.
While we have to fight the cuts on a case by case basis, we won’t win unless we do more than that. If we fail to expose the illogic and dishonesty of the cuts strategy as a whole, resistance will be blunted. We need to mount a confident challenge not only to the three-party-media consensus on the cuts, but to the economic imperatives of neoliberalism. A good example of exactly what not to do came from TUC general secretary Brendan Barber, who commented: ‘We need a proper debate about making public services better in an age of austerity … There is nothing wrong in looking for these savings. Undoubtedly, there is some waste around.’
Any time you set out to bust the straitjacket of common sense, you’re in for a formidable battle, but certainly not, in this case, an unwinnable one. Precisely because their impact will be so widely distributed, the cuts will generate large forces of opposition, including from hitherto passive quarters. From the left’s point of view, every victim of the cuts – public sector worker or public service user – should be a potential resister. It’s our job to make sure people are not left alone in their victimhood, struggling for personal survival without hope of social change.
Though it is necessarily defensive, insofar as this opposition insists on a change in social priorities, it has the potential to unveil possible futures, to remake a desolate political landscape.
Mike Marqusee’s column, Contending for the Living, appears regularly in Red Pepper. His other writing can be found at www.mikemarqusee.com
Yasmin Gunaratnam reflects on John Berger’s gut solidarity with the stranger
Charlie Clarke and Heather Mendick discuss how to work through the tensions within Momentum
As man-made global warming gets closer to the tipping point, Andrew Simms finds reasons to be positive about averting catastrophic climate change
In this extract from his new book The Candidate, Alex Nunns tells the inside story of how Jeremy Corbyn scraped onto the Labour leadership ballot in 2015
Graham Jones proposes a framework for a diverse movement to flourish
Musician Eliane Correa reflects on the fading revolution
Trump's victory is another sign of the failure of the centre-left's narrative on climate change. A new message is needed, and new politicians to deliver it, writes Alex Randall
Siobhán McGuirk says the question we are too afraid to ask is simple - what kind of society leads to Donald Trump as President?
The battle lines are clear. Democracy is in peril and the left must take itself seriously electorally and politically. Ruth Potts speaks to Gary Younge, who was based in Muncie, Indiana, for the US election, about the implications of Donald Trump’s victory
We need a society built on openness, community and equality to truly defeat everything that trump stands for, writes Nick Dearden.
Utopia: Work less play more
A shorter working week would benefit everyone, writes Madeleine Ellis-Petersen
Short story: Syrenka
A short story by Kirsten Irving
Utopia: Industrial Workers Taking the Wheel
Hilary Wainwright reflects on an attempt by British workers to produce a democratically determined alternative plan for their industry – and its lessons for today
Mum’s Colombian mine protest comes to London
Anne Harris reports on one woman’s fight against a multinational coal giant
Bike courier Maggie Dewhurst takes on the gig economy… and wins
We spoke to Mags about why she’s ‘biting the hand that feeds her’
Utopia: Daring to dream
Imagining a better world is the first step towards creating one. Ruth Potts introduces our special utopian issue
Utopia: Room for all
Nadhira Halim and Andy Edwards report on the range of creative responses to the housing crisis that are providing secure, affordable housing across the UK
A better Brexit
The left should not tail-end the establishment Bremoaners, argues Michael Calderbank
News from movements around the world
Compiled by James O’Nions
Podemos: In the Name of the People
'The emergence as a potential party of government is testament both to the richness of Spanish radical culture and the inventiveness of activists such as Errejón' - Jacob Mukherjee reviews Errejón and Mouffe's latest release
Survival Shake! – creative ways to resist the system
Social justice campaigner Sakina Sheikh describes a project to embolden young people through the arts
‘We don’t want to be an afterthought’: inside Momentum Kids
If Momentum is going to meet the challenge of being fully inclusive, a space must be provided for parents, mothers, carers, grandparents and children, write Jessie Hoskin and Natasha Josette
The Kurdish revolution – a report from Rojava
Peter Loo is supporting revolutionary social change in Northern Syria.
How to make your own media
Lorna Stephenson and Adam Cantwell-Corn on running a local media co-op
Book Review: The EU: an Obituary
Tim Holmes takes a look at John Gillingham's polemical history of the EU
Book Review: The End of Jewish Modernity
Author Daniel Lazar reviews Enzo Traverso's The End of Jewish Modernity
Lesbians and Gays Support the Migrants
Ida-Sofie Picard introduces Lesbians and Gays Support the Migrants – as told to Jenny Nelson
Book review: Angry White People: Coming Face to Face With the British Far-Right
Hilary Aked gets close up with the British far right in Hsiao-Hung Pai's latest release
University should not be a debt factory
Sheldon Ridley spoke to students taking part in their first national demonstration.
Book Review: The Day the Music Died – a Memoir
Sheila Rowbotham reviews the memoirs of BBC director and producer, Tony Garnett.
Power Games: A Political History
Malcolm Maclean reviews Jules Boykoff's Power Games: A Political History
Book Review: Sex, Needs and Queer Culture: from liberation to the post-gay
Aiming to re-evaluate the radicalism and efficacy of queer counterculture and rebellion - April Park takes us through David Alderson's new work.
A book review every day until Christmas at Red Pepper
Red Pepper will be publishing a new book review each day until Christmas
Book Review: Corbyn: The Strange Rebirth of Radical Politics
'In spite of the odds Corbyn is still standing' - Alex Doherty reviews Seymour's analysis of the rise of Corbyn
From #BlackLivesMatter to Black Liberation
'A small manifesto for black liberation through socialist revolution' - Graham Campbell reviews Keeanga-Yamahtta Taylor's 'From #BlackLivesMatter to Black Liberation'
The Fashion Revolution: Turn to the left
Bryony Moore profiles Stitched Up, a non-profit group reimagining the future of fashion
The abolition of Art History A-Level will exacerbate social inequality
This is a massive blow to the rights of ordinary kids to have the same opportunities as their more privileged peers. Danielle Child reports.
Mass civil disobedience in Sudan
A three-day general strike has brought Sudan to a stand still as people mobilise against the government and inequality. Jenny Nelson writes.
Mustang film review: Three fingers to Erdogan
Laura Nicholson reviews Mustang, Deniz Gamze Erguven’s unashamedly feminist film critique of Turkey’s creeping conservatism
What if the workers were in control?
Hilary Wainwright reflects on an attempt by British workers to produce a democratically determined alternative plan for their industry