60 years of capitalist decline in Britain.
It amounts to a recognition that only major reorganisation of production and a big defeat working class can start change the bosses' fortunes for the better. To push these measures through, a short-term decline in profits thought to be inevitable.
So far so good for the bosses. They understood Thatcher's plans and welcomed them. But things haven't worked out so well in practice.
High interest rates have attracted speculative funds Irom abroad, but are crushing British industry. As expected, there have been an historic number of bankruptcies. But even blue-chip high produc export-orientated companies like ICI have suffered catastrophic cuts in profits.
5-0 NET OF STOCK APPRECIATION SEASONALLY ADJUSTED 1-0 19RA 74 '75 :76 government's stated goal of 7-11 per cent The government claims inflation major story. But even threatened.
It has been the borrowing of the big companies been primarily responsible for the massive increase in the money supply. same bosses are calling more public expenditure cuts to control inflation.
While the wanted to limit the public sector borrowing requirement (the difference governmer income and expenditure) to £8.5 billion this year, it will in fact be billion. Total '77 '78 "79 This isn't because Thatcher's gang is wavering over plan success welfare state this That much is evident from Heseltine's nouncement of a 3.1 per cent cut in council house spending; in his vindictive of overspending' But these council house building. and his complete knocked oer course by the off course alive and housed! So what accounts for this £3 billion overshoot? between The first problem is that monetarist £11.5 says, the government has had JULD money 1973. '74 '75 '76 '77 '78 '79 . tionalised British Leyland and steel. dismantle far from it! bosses What they cerned about is public sector December anpay. Government plans have overshot by fibn here as well.
Tory cuts were
punishment different to Labour's; ban hit jobs. Yet the strength of public sector prevented bv the people to be kept the hard-fought gains won by the public sector in Labour's final days because of the théory nave put on especially Labour controlled into na- ones. So Ebn 5-0 industries like This isn't what annoys the Con- sector.
instability policy.
O De they fair. were to destroy services and BOYCHICH breakthrough Tory plans easily implemented. workers.
because blems, too, and secondly pressure they are nervou local councils. The one this led , the underlying combativity of BL workers remains intact.
Strike As soon as the Metro light the end of the tunnel, workers demanded a share of the action. There was a massive majority for strike action against the 8.2 per cent offer. Although the union leadership relused lo act on this mandate, a major strike defence rights is in the offing as 1981 opens.
Nothing has been finally decided between the bosse workers. Some major have registered. output levels have surpassed Michael Edwardes' projections. In Rover productivity increases of 30 per cent are be ing demanded.
This is not the general pic The Bank of England Bulletin reported December: It does not ap pear that productivity performance over the past year or so been significantly ferent than the mid-1970s In 1980, Margaret Thatgovernment thrown everything it has the working class. . She has created untold misery millions of working people But Britain's bosses are no Everything vicious government has done not been sufficien break the back of working class resistance.
Success guarantee sucoess.
further measures threaten to hit Britain's profitable industries irreparably. This is why Thatcher enters 1981 increasingly Talli and cut off from the realities of the political situation.
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GROSS TRADING PROFITS
FINANCIAL DEFICIT