Globalism: the power of faith over facts
Closures and job-losses last month brought fresh warnings of imminent economic recession, with some financial commentators even predicting a slump of 1930's dimensions. The news in Britain was particularly distressing. On the heels of the shutdowns of the Siemens and Fujitsu microchip factories in the North East of England came losses of 434 jobs in three plants belonging to William Baird clothiers, more than 200 at Rosyth Dockyard in Fife, 130 at Fii footwear works in Stafford, 112 at British Steel in Rotherham and 70 at DuPont chemicals in Brockworth, Glos. The latter five layoffs occurred in the course of a single Friday: September 18th (1998). On top of them were 1,100 redundancies at Vickers tank factory in Leeds and the putting of 4,000 Ford car workers on a four-day week. Meanwhile Shell in London announced the dismissal of 200 staff. And these job losses are certain to be followed by several more before these words reach the reader.
But behind these obvious and painful symptoms of impending crisis there is a story of much longer and deeply rooted British industrial decline. Manufacturing, in which we once led the world and which was one of the main foundation-stones of national prosperity and power, now accounts for a bare fifth of Britain's economic output. The tendency, visible as far back as the 1960s, accelerated in the Thatcher years under the impetus of yet further exposure to the free market and globalisation. In sixteen months of New Labour, it has been demonstrated that no radical departure in economic policy is envisaged; what we are getting is just "more of the same."
In the face of the looming catastrophe, neither politicians nor media seem capable of coming up with any ideas, save to blame international economic trends together with the strength of the Pound. A leader in the Daily Mail last month (September 1998) put it in a nutshell: " Not all of the blame can be laid at the Government's door. Admittedly it has done nothing to stop the pound soaring, which makes our exports more expensive. But the real problem lies in areas beyond ministerial control: the downturn in the business cycle and the turmoil, which has engulfed Asia."
This, which fairly accurately represents the consensus of 'establishment' thinking on economic questions, is a counsel of despair and a confession of impotence. It also constitutes, as many a religious dogma has over the ages, a demonstration of the enduring power of blind faith over reality.
For the reality is that the global economic system is not working for Britain - and has not done so since the time, back in the 19th century, when our near monopoly of world trade in manufactured goods came to an end. A confrontation with this reality is the first requirement of any serious attempt to grapple with the present crisis.
For why should events in Asia necessarily lead to recession in Britain? Only because the feebleness of British policy has led to a situation in which the functioning of vital parts of the modern British economy is seen as inconceivable except by way of the import of investment from Asia to keep factories in Britain running. And why should a rise in the value of the Pound on World money markets lead to widespread redundancies in this country? Only because British industry, with its home market subject to massive foreign invasion, is forced to be overwhelmingly export-orientated to stand a chance of survival.
What is needed in the face of the current crisis is not a lot of futile shoulder shrugging about 'world conditions' but a firm decision to abandon a discredited international policy in favour of a national one. The first requirement is protection - a dire heresy in mainstream political party and media circles but a matter of plain common sense to the practical economist. Erect barriers, built up on a gradualist basis, against the importation from foreign sources of all goods that can be produced in Britain. Create the home industries to carry out this production by gripping hold of the financial institutions of this country and redirecting them from financial investment in a global free market to investment in British industry. Create additional financial power within Britain itself by interest-free credit issued by government in accordance with careful estimates of the additional economic energy and growth that that credit will release in this country. The result? With a vastly reduced dependence on imports - restricted to essentials, which cannot be produced at home - will come a vastly reduced need to export. Hence a correspondingly reduced effect of upwards movements in the value of the Pound abroad.
Such a policy will not, of course, be adopted because it goes against the economic religion of the times - to which all the parties at Westminster are enslaved. The 'flat earth' theory of British economic prosperity will continue to prevail - until a revolution in our political life sweeps away the cobwebs of superstition and sanity finally prevails. Of course, as with all religious dogmas, behind this one there are powerful interests, which are determined, for their own reasons, to resist change. To those politicians tempted to flirt with the dangerous idea that nationalism might be the cure for the crisis brought upon us by internationalism, their warning is clear: "Don't even think about it!" So for the foreseeable future the crisis will continue.
Webmaster's note: This article was originally published in 'Spearhead' magazine No.356, October 1998.
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