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With so much of this, Red Pepper’s Christmas issue, examining the financial crisis, it doesn’t look like we are exactly bringing yuletide good cheer. But the holiday is also a time to reflect, recharge and prepare for the New Year. So we’re unashamedly adding to your seasonal menu some tough food for thought! We want to convey both the sense of a historic opportunity for egalitarian change, and the real and evident threat to millions of people’s livelihoods if we do not grasp it.
We have to think and act strategically: refusing those solutions from above that attempt to solve the bankers’ crisis at the expense of people entirely innocent of the crime, and campaigning from below for constructive solutions. That may not bring down capitalism, but it can begin to force decisions on the basis of social need.
There’s a lot of mental pollution to clear away first, like the idea of the ‘credit crunch’ itself – as if we’re all in it together, rich and poor. As if this financial crisis is some great equaliser: we’re all going to feel the pinch but if we swallow this wholesome ‘credit crunch’ breakfast cereal we’ll soon get better.
The solutions on offer that go beyond ‘grin and bear it’ still go nowhere near the kind of change that the depth of the crisis requires (see Hugo Radice). Read the Guardian and you sense a palpable sigh of relief at the idea of going back to Keynes, as if somehow the policies associated with past prosperity represent firm ground. The nostalgia for Keynes also represents a yearning for definitive schemes and new supermen to guide us through the global economic maze. Every minor rearrangement of the global financial deckchairs is greeted as ‘new architecture’, while Gordon Brown is confidently refashioning the role of a contemporary Keynes to fit his more clunky conservative persona.
But Stuart Holland witnessed the breaking of Keynesianism while a young adviser to Harold Wilson in the 1960s, as its once-sharp instruments of managing demand came up against two obstacles that rendered it almost powerless: the growth of the multinational corporation with inordinate power over the market, including international trade, and the re-established power of the City and finance capital after years of financial stability.
Both, ironically, were the product of the success of Keynesianism – along with the economic consequences of the second world war – in kick-starting a further phase of capital accumulation and in re-establishing the international financial system so that once again financial institutions flourished.
The growth of the corporate giants shattered Keynes’s assumption that the state needed only to influence the level of demand (through lowering taxes and/or increasing public spending) and the market could be left to itself. And the increasing power of the City created a powerful enemy of the welfare state and any attempt by the government to intervene in industry or significantly to borrow to expand.
The financial crisis that has its roots in those years is surely the moment to begin to tackle these two unaccountable sources of economic power. With the banks visibly dependent on the government and the taxpayer it becomes a logical step to turn the banks into public utilities (see Leo Panitch). To make money the servant not the master of the public, going well beyond the non-voting (and temporary) shares that the British government has taken as part of the rescue package.
Public control over the banks would give the government power to radically influence the real economy. Through its control of lending it would have real bargaining power over multinationals, to tackle the recession and require ecologically driven investments; through its capacity to create social funds (see Robin Blackburn) it could give huge support to the social and co-operative economy and the development of new forms of peer-to-peer production (see Michel Bauwen).
The key to such possibilities is democracy and movement-building, locally and globally. There is an appetite for this: for democratic control over money, to end the gross inequalities now revealed to all, to end the waste and destruction of war, to meet the housing, health and education needs of all.
The worldwide excitement over Barack Obama’s election is an expression of these long-suppressed desires. Whether we can build globally on his victory depends on our ability to tap previously hidden sources of power, to scale up the alternatives we have been developing or trying to develop on the ground, as we resist.
Nick Dowson looks at the new wave of co-ops and community groups where people are building their own truly affordable homes
Hsiao-Hung Pai meets people affected by the fire, and finds sadness and suffering mixed with a continuing wariness of the official investigations
Chris Williamson MP, winner of the election's tightest marginal, Derby North, and recently reappointed shadow minister for fire services, talks to Ashish Ghadiali about Jeremy Corbyn, the housing crisis and winning from the left
The Corbyn-supporting group is preparing for another election at any moment, writes Adam Peggs – and now has the potential to create powerful training initiatives, union links and party reform efforts
’We believe in you. We are with you. We will never forget.’ Grenfell solidarity sweeps East London in mass banner drops from housing estates
Michael Calderbank profiles Jeremy Corbyn's new supporters in parliament
The Democratic Republic of Congo (DRC) continues to witness devastating political violence, but the world refuses to act. Ishiaba Kasonga and Serge Egola Angbakodolo ask why?
When fire safety has become a privilege for the rich, it’s time to stop austerity and fund emergency mass works to raise standards immediately, writes Jane Shallice
Interview: Queer British Art
James O'Nions talks to author Alex Pilcher about the Tate’s Queer British Art exhibition and her book A Queer Little History of Art
Cable the enabler: new Lib Dem leader shows a party in crisis
Vince Cable's stale politics and collusion with the Conservatives belong in the dustbin of history, writes Adam Peggs
Anti-Corbyn groupthink and the media: how pundits called the election so wrong
Reporting based on the current consensus will always vastly underestimate the possibility of change, argues James Fox
Michael Cashman: Commander of the Blairite Empire
Lord Cashman, a candidate in Labour’s internal elections, claims to stand for Labour’s grassroots members. He is a phony, writes Cathy Cole
Contribute to Conter – the new cross-party platform linking Scottish socialists
Jonathan Rimmer, editor of Conter, says it’s time for a new non-sectarian space for Scottish anti-capitalists and invites you to take part
Editorial: Empire will eat itself
Ashish Ghadiali introduces the June/July issue of Red Pepper
Eddie Chambers: Black artists and the DIY aesthetic
Eddie Chambers, artist and art historian, speaks to Ashish Ghadiali about the cultural strategies that he, as founder of the Black Art Group, helped to define in the 1980s
Despite Erdogan, Turkey is still alive
With this year's referendum consolidating President Erdogan’s autocracy in Turkey, Nazim A argues that the way forward for democrats lies in a more radical approach
Red Pepper Race Section: open editorial meeting – 11 August in Leeds
The next open editorial meeting of the Red Pepper Race Section will take place between 3.30-5.30pm, Friday 11th August in Leeds.
Mogg-mentum? Thatcherite die-hard Jacob Rees-Mogg is no man of the people
Adam Peggs says Rees-Mogg is no joke – he is a living embodiment of Britain's repulsive ruling elite
Power to the renters: Turning the tide on our broken housing system
Heather Kennedy, from the Renters Power Project, argues it’s time to reject Thatcher’s dream of a 'property-owning democracy' and build renters' power instead
Your vote can help Corbyn supporters win these vital Labour Party positions
Left candidate Seema Chandwani speaks to Red Pepper ahead of ballot papers going out to all members for a crucial Labour committee
Join the Rolling Resistance to the frackers
Al Wilson invites you to take part in a month of anti-fracking action in Lancashire with Reclaim the Power
The Grenfell public inquiry must listen to the residents who have been ignored for so long
Councils handed housing over to obscure, unaccountable organisations, writes Anna Minton – now we must hear the voices they silenced
India: Modi’s ‘development model’ is built on violence and theft from the poorest
Development in India is at the expense of minorities and the poor, writes Gargi Battacharya
North Korea is just the start of potentially deadly tensions between the US and China
US-China relations have taken on a disturbing new dimension under Donald Trump, writes Dorothy Guerrero
The feminist army leading the fight against ISIS
Dilar Dirik salutes militant women-organised democracy in action in Rojava
France: The colonial republic
The roots of France’s ascendant racism lie as deep as the origins of the French republic itself, argues Yasser Louati
This is why it’s an important time to support Caroline Lucas
A vital voice of dissent in Parliament: Caroline Lucas explains why she is asking for your help
PLP committee elections: it seems like most Labour backbenchers still haven’t learned their lesson
Corbyn is riding high in the polls - so he can face down the secret malcontents among Labour MPs, writes Michael Calderbank
Going from a top BBC job to Tory spin chief should be banned – it’s that simple
This revolving door between the 'impartial' broadcaster and the Conservatives stinks, writes Louis Mendee – we need a different media
I read Gavin Barwell’s ‘marginal seat’ book and it was incredibly awkward
Gavin Barwell was mocked for writing a book called How to Win a Marginal Seat, then losing his. But what does the book itself reveal about Theresa May’s new top adviser? Matt Thompson reads it so you don’t have to
We can defeat this weak Tory government on the pay cap
With the government in chaos, this is our chance to lift the pay cap for everyone, writes Mark Serwotka, general secretary of public service workers’ union PCS
Corbyn supporters surge in Labour’s internal elections
A big rise in left nominations from constituency Labour parties suggests Corbynites are getting better organised, reports Michael Calderbank
Undercover policing – the need for a public inquiry for Scotland
Tilly Gifford, who exposed police efforts to recruit her as a paid informer, calls for the inquiry into undercover policing to extend to Scotland
Becoming a better ally: how to understand intersectionality
Intersectionality can provide the basis of our solidarity in this new age of empire, writes Peninah Wangari-Jones
The myth of the ‘white working class’ stops us seeing the working class as it really is
The right imagines a socially conservative working class while the left pines for the days of mass workplaces. Neither represent today's reality, argues Gargi Bhattacharyya
The government played the public for fools, and lost
The High Court has ruled that the government cannot veto local council investment decisions. This is a victory for local democracy and the BDS movement, and shows what can happen when we stand together, writes War on Want’s Ross Hemingway.
An ‘obscure’ party? I’m amazed at how little people in Britain know about the DUP
After the Tories' deal with the Democratic Unionists, Denis Burke asks why people in Britain weren't a bit more curious about Northern Ireland before now
The Tories’ deal with the DUP is outright bribery – but this government won’t last
Theresa May’s £1.5 billion bung to the DUP is the last nail in the coffin of the austerity myth, writes Louis Mendee