FOR A LABOUR GOVERNMENT The present collapse of the stock how far the British bosses are losing confidence I natcher. During the next period we can expect this political crisis to result in a boost Democratic Party, as the Tories stab one another in the back.
More and more the onpromoting bold socialist alternative to the working class movement.
All the empty calls for 'unity" and an end to conflict" the Labour Party are worthless, They amount to a call for the left to give up the long struggle Tor democracy, accountability and socialist policies, which is the only hope Socialist Challenge 1 October 1881 Page 2 not submit to their blackmail.
How should the left pursue its campaign in the CUTELIE months! First, there sions about where power in the British labour movement lies the deputy leadership campaign has demonstrated that vividly The key levers have been held by the rank and file of the giant industrial unions.
But while Benn's vote in the constituencies and among MPs was high, the vote for him in the unions was disappointing kcy task now is to build support for left and leaders inside the ma. jor unions.
Linking together the different wings movement over next months won't just be a question of campaigning for democracy, however.
As always, the decisive backdrop to the outcome o! the STEELE the unions and the labour movement will be the class the labour movement doesn't respond vigorously to rocketing unemployment and four рег cent ceiling on nublic pay. resulting demoralisation will only benefit the righ ving and the SDI in thai sense therefore there should be a "turning outwards towards these struggles. Doubtless, many left wing resolutions passed by the Labour conference.
But the next step for the Labour left incides oreanne action on disarmament, unemployment, pay, women rights, and so forth to make these victories more than symbolic.
The best chance of ensuring a Labour government committed to socialwould Do , out before the next general election.
But stepping up the action doesn't mean abandoning the fight inside the party. The selection of MP's hostile to party policy, and for new democratic demands including the direct election of the shadow cabinet by conference as well as for other socialist policies. such as on Ireland, should also CORELIC All this requires organisation. In the unions the new rise of Broad Left formations should be deepened. Inside the Labour Party itself it would be the height of foolishness to wind down such forma tions as the Rank and File Mobilising Committee or the grounds that their tash is now somehow completIn the heat of the b battles to come there wi be a temptation also to regard the debate on policy and strategy as secondary to securing the left's victory. This would be a big mistake.
The next general elec tion could produce a left Labour government. Even if it produces an SDP Ho The SDP it is certain that the has answers to the crisis. In this decade we are almost certainly going to see, for the first time, a Labour government led by the left win the Labour left must assume its responsibilities ensure that such a government omens up c way to socialism. system and for ordinary people?
Many causes have been put forward, including the slump on Wall St according to some the result of the predictions of an eccentric tipster) the increase in American interest rates, or a normal re-adjustment' due to the rise in share prices earlier in the sumevitable spin the me koran's the rest world's financial centres. But the essence of the matte more disturbing for British capitalism.
The stock market over the past two weeks has been registering its lack of contidence in the Thatcher government's economic policies. and deep depression both at the state of company profits and the future prospects of the economy.
Most observers fully expect that there will be recession in months time. The upshot is that fewer and lewet people have any confidence that thei investments will yield profits. and stock prices therefore slump.
The decline in stock market prices is closely linked to the rise in interest rates. This will mean more expensive credit facilities of every kind, including bank overdraughts and a sharp rise mortgage The latter is beginning to hit working class people particularly hard. ding to some reports the first wave mortgage defaults is beginning take place, and this deeply worrying for the building socieTies. likely to lead in the medium term to a drop in property values.
The slump is going to make things worse both for the government and in companies.
Lower-than-expected tax revenues will increase the government's need to borrow. That is going to push up interest rates even more and add to inflation. Pro mised tax cuts are not goIng to be macc The situation will for progressively worse companies. money even harder to come by.
Bank loans will be more expensive, and it will be much more difficult to depressed, stock market. Capital investment will decrease and more companies will go bankrupt.
Every capitalist crisis leads to attacks on workAs a result of his present decline in th stock market everyone is going to be worse Nothing could be more absurd, that the jobs and livelihood of millions is a the mercy of the moods and whims of a few , hundred bowler-hatted fools.
But that's the way capitalism works
for
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I Doubtless there is some truth in the point that US
OVER £20,000 has been wiped off share prices over the past week. What does it mean for the