May’s ‘Free’ market blather is anti Corbyn rhetoric

Photo by Thomas Charters on Unsplash

Theresa May is ‘frit’.

Jeremy Corbyn argued (September 2017) that the neoliberal model of capitalism is broken.

In response, May argues:

“A free market economy, operating under the right rules and regulations, is the greatest agent of collective human progress ever created.  It was the new combination which led societies out of darkness and stagnation and into the light of the modern age. It is unquestionably the best, and indeed the only sustainable, means of increasing the living standards of everyone in a country. And we should never forget that raising the living standards, and protecting the jobs, of ordinary working people is the central aim of all economic policy. Helping each generation to live longer, fuller, more secure lives than the one which went before them. Not serving an abstract doctrine or an ideological concept – but serving the real interests of the British people”.

Theresa May is not original of course in her praise of capitalism and in praise of the activities of the bourgeoisie:

It has accomplished wonders far surpassing Egyptian pyramids, Roman aqueducts, and Gothic cathedrals; it has conducted expeditions that put in the shade all former migrations of nations and crusades”.

So wrote Marx and Engels in the Communist Manifesto. Before anyone talked of ‘Globalisation’, and its discontents, Marx and Engels had this to say:

“The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country. To the great chagrin of reactionaries, it has drawn from under the feet of industry the national ground on which it stood. All old-established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries, whose introduction becomes a life and death question for all civilized nations, by industries that no longer work up indigenous raw material, but raw material drawn from the remotest zones; industries whose products are consumed, not only at home, but in every quarter of the globe. In place of the old wants, satisfied by the production of the country, we find new wants, requiring for their satisfaction the products of distant lands and climes. In place of the old local and national seclusion and selfsufficiency, we have intercourse in every direction, universal interdependence of nations. And as in material, so also in intellectual production. The intellectual creations of individual nations become common property. National one-sidedness and narrow-mindedness become more and more impossible, and from the numerous national and local literatures there arises a world literature”.

May is singing the praises of the ‘free market economy’ but with a very important caveat often missed in further elaboration and eulogising others. Look carefully, May is not talking about a free market at all, and as I have argued, this is rhetoric not reality for if we examine just how free market neoliberal capitalism actually is, we find it just is not.

May actually acknowledges this with the two words ‘rules and regulations’ which when actually examined sends shivers down the spines of free market ideologues. May’s government continues to spend 40% of GDP and subsidises industry. May even raises the spectre, if not of communism, but of industrial policy .  Perhaps she does so with an eye to China, a country whose interventions in key industries even the free market Economist appears to grudgingly accept has brought some successes. Marianna Mazzucato in ‘The Entrepreneurial State’ also clearly shows the role of the State in innovation as a rebuke to free market fundamentalism. I think May has also read this and understands the nature of the partnership between private and public sector.

As does Corbyn, difference between the two is neoliberalism. Both want State intervention, only one wants the interests of Labour to be taken into account. The other is in thrall to Capital. Neoliberalism in practice does not mean a free market (perish the thought!), it means State support for capital and withdrawl of state support for labour. Socialism for the rich, neoliberalism for the poor. May understands that many people are wise to this and thus fears their drift to Corbyn.

Hence this speech.


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