Reformists, however, believe that it i possible to collaborate with the institutions of the State to tackle inflation. But 'the battle against inflation' is in fact the ideological eyewash of incomes policy and every attack on the living standards and jobs of the working class.
Last week Scanion deliberately stressed that "pay restraint and price control, in the eyes of the ordinary people of this country, go together. What he didn't add was the rub: while it's only too easy to control wages, it's virtually impossible to control prices - even if the Government wanted to.
Hand in hand But far from the Government and the State institutions acting as a 'neutral" referee with whom "fair deals' can be made, they work hand in hand with the monopolies to raise prices. Concrete proof of this is provided by the experlence ol the Labour Government's attempt to 'control prices' through such bodies as the Prices Commission.
The Prices Commission and the various bodies of the civil service which draw up information on prices have one thing in common: none have any interest in keeping down prices. On the con trary, in general they argue for price increases. On 17 May The Times was able to report:
The apparent acceptance by the Department of Prices and Consumer Protection of many of the arguments in favour or substantial relaxation (in price controls) would appear to dictate the next move by Mrs Williams.
Favours Some consumer protection' this, when the Department actively favours allowing firms more scope to put up prices.
But more pertinent still, given the way in which the right wing in the trade unions and Labour Party have rammed through wage restraint on the promise of lower prices, is whether such bodies ever have or con weic capabic or correllne onces Fach year an estimated three million price alterations take place. To follow these changes through the civil service machinery would take a staff of tens of nousands In fact the Prices Commission had precisely the following in 1974:
ition of the second round of wage controls I do not believe that one can force a large private sector to invest. Therefore one has a choice between a wholly controlled economy and a mixed economy.
"As for that part of the sector in the mixed economy which is private, one can lead a horse to water but one cannot make it drink. Therefore, one has to apply the necessary incentives to compel it to drink. As this party has always stood for a mixed cconomy and not for a totally controlled economy, that must be the basis upon which our economic policy proceeds" (quoted in Tribune 14 May).
It's the old, old story of the ship of reformism. As soon as it runs onto the rocks of the capitalist crisis it sinks with out a trace. In its place come standard Tory policies. The only alternative, the socialist alternative, would mean mounting a fundamental challenge to the capitalist system - rocks and all.
As even Harold Wilson was forced to write of a visit paid to him by the Governo of the Bank of Ingland in November 1964 during the middle of one of those convenient crises of the pound:
Claiming that our failure to act in accordance with his advice had precipitated the crisis, he was now demanding all round cuts in expenditure, regardless of social or even economic priorities...
Tasked him if this meant that it was impossible for any government, whatever its party label, whatever its manifesto or the policies on which it fought an election, to continue. unless it immediately reverted to full scale Tory policies. He had to admit that that was what his argument meant, because of the sheer compulsion of the economic dictation of those who exercised decisive Conome Dower The situation is no different on prices touay. Those like scanton who propose to bargain wage controls against price controls are either absurdly naive or ey nical traitors to the working class - for both of which they deserve to be kicked out of their present positions.
The State and the monopolies work hand in hand to create price increases, and it is the working class which carries the burden of them every time. Only the organised working class has the power and the interest to control prices. NEXT WEEK: More on the mechanisms of inflation - and how the working class can begin to fight back against it.