Cuts or nationalise banks

Cuts or nationalise banks, only compensating pension schemes

[While the message below is about UK politics, there are surely similar lessons to be drawn in other countries, with capitalist governments forced to make big cuts to make up for more generous public spending in the past...]

New Labour is now promising public spending cuts, like the Tories and Liberal Democrats. And with £175 billion of predicted borrowing this year, excluding bank bailouts, getting anywhere near balancing the books would require savage cuts and big tax rises, despite Labour and Tory claims that they wouldn't damage frontline services. The leaking of a document dated the day before this year's Budget showing Labour plans for 10% cuts means there's virtually no difference between them and the Tories. I'm a strong supporter of proportional representation, but the left will have a great opportunity at the 2010 general election if we adopt a bold socialist programme (and unite in some sort of federation to avoid standing against each other) with the mainstream parties taking votes off each other.

There has been a £1.3 trillion bailout of the banks in the UK alone, with $15 trillion in Europe and North America (according to Newsnight). Moody's credit ratings agency predicts further losses by British banks of at least £130 billion on top of the £110 billion written off in the credit crunch so far, so further bailouts may be necessary to maintain the capitalist system. And this will probably turn into a double dip recession or depression, even if Labour cling onto power and make cuts more slowly than the Tories would.

So what demands should socialists put forward? Nationalise all the banks, just compensating pension schemes, and run them democratically from below with most control in the hands of borrowers and savers! That way the bailout money already spent can be used for the benefit of all rather than for bankers' profits and bonuses!

With the hatred of mainstream politicians and bankers, such a transitional demand could be a great vote winner. Whereas I particularly advocate a democratic revolutionary socialist party putting forward the idea of socialism with proportional representation as well as participatory democracy and online referenda (if nobody advocates a revolution we'll never have one) I want more moderate left parties to do well too and the above is also advice for them.

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Steve Wallis (Manchester, England)