Financial Systems and Social Justice

[Lehman collapse, 15 September 2008 - headlines 16 Sep 2008]

Over the last quarter of a century something fundamental seems to have changed in the way in which capitalism works.

The tendency since 1970 has been towards greater geographical mobility of capital.

Rather than being a modest helper to the capital accumulation process, [finance] gradually turned into a driving force.

Speculative finance became a kind of secondary engine for growth given the weakness in the primary engine, productive investment.

94

Is there an alternative solution?

• The crisis gives an opportunity to disarm financial capital and regulate the markets

• The public sector should be used to damp the effects of the crisis and stabilise the economy

• A radical redistribution of wealth is necessary

• Only the trade union movement has the potential to push solutions in this direction

• Potential is one thing, practice something else – a formidable mobilisation will be necessary

95

Need agency and strategies

• We need alternatives, but not without also considering agency – who is going to carry out the struggles – social forces, alliances

• Wishful thinking and arm-chair theories, alternatives and models are easy to produce

• What is realistic, what is possible, how do we prioritise – and how to we get there (strategies)?

• This is too little discussed on the left today

96

Right wing populism/extremism

• The capitalist crisis creates a real basis for

alienation, exclusion, discontent and polarisation

• Workers feel betrayed by their ‘own’ politicians

• The extreme Right supports all discontent and channels it in perverted political directions

• The only alternative: A policy of the left which politicises the discontent and channels it into real fights for collective solutions

97

A strategy for the unions

• Alternative analyses – a system-critical view

• Building of new, broad social alliances

• Development of concrete alternatives

• Due to the party political misery, trade unions must take a broader political responsibility

• Develop solidarity across all borders

• Create democratic and action-oriented unions prepared for the confrontations which will come

98

Emancipation is our goal!

• The (positive) effects of a class compromise can never be more than a temporary achievement

• Emancipatory social policies presuppose a huge shift in the balance of power in society

• Today, we demand too little and accept too much

• As authoritarian rule and oppression increase, our response has to be bolder and more radical

• If the right to strike is restricted or banned, trade unions have to win back the right in practise