THATCHER'S policies aren't working; that much is obvious we enter 1981.
Britain's bosses, who went along. with Thatcher's policies, getting worried - they don't see the promised phoenix rising from the ashes, and they that only cinders will be left.
The prime minister's economic policies are part of a strategy which she's sticking to. The crude idea behind this 'monetarism Is to restrict the money supply and let market do But the inevitable result of restricting money supply is to provoke drop in economic activity: a slump. Gobble The aim of this strategy is to let competition do its work. Weak firms will be pushed to the wall, and stronger will gobble them up. Even the strong companies Have le take measures to produce more efficiently, by getting workers to produce more so that British capital can compete the market.
The flip-side of Thatcherism work are millions of workers thrown on the dole. Longer queues are intended weaker working organisatior push down wages, and thus remove ma jor obstacles to higher productivity.
This strategy is part of an historic attempt to deal with WOrK 7% GB 5%4%oles 3%2%the dole class 1970 71 '72 West Midlands "73 '74 75 °76 '79 '80 ture.
has cher's another blow to monetarism: the imposition of a si cent wage limit in the public wage limit introduces haDDy government It transforms has bargaining into a political af. Each claim can become a the and CYCL threatens to become a green light for other Heseltine has other pro , in the shape of such Labour councils hostile to his cuts. No wonder the bosses story for the Torrents bes the imposition of wage rises Socialist Challenge 1 January 1981 Page C well below the rate of inflation. The CBI's Pay Dave decline from 16 ses have . declined from trend con tinued through •Novembe Trend However, lew are con vinced that this is a perma nent trend. Moreover, this situation been translated into any significant 2.24m officiall miraculous if those in work weren't a bit cautious what is happening to workers' organisations, particularly at This will determine what will happen in any economic upturi the bosses be able to take the opportunity of an upturn crease in labour costs? Or wil without the workers be able to regain what they have lost?
The bosses are haunted by the fact that i organisation ir the workplace will I remain intact long enough for workers to claw back their losses, as they did after the last reces. sion in the mid-'70s The situation at BL Longbridge indicates тоир workers who have scen oaterea from Dilar t post by y one of the most far. sienter capitalist manage able to score gains only with the direct and sabotage the union leadership and the stewards, under the influence of the Communist Party.
Despite the smashing of the combine,
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Unemployment total climbs to record 2,162,874