Labour Wrap: Same economic tune, different lyrics

All seem to agree that, both nationally and globally, we are in for a rough ride.

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Cape Town - As 2016 gets under way, most economists and commentators seem at last to be singing to the same economics tune, says Terry Bell in his latest Labour Wrap. All seem to agree that, both nationally and globally, we are in for a rough ride.

However, the lyrics being sung - the solutions offered - differ. Yet, says Bell, there are also similarities among those who appear to be on opposite sides of the debate. Scenario guru Clem Sunter, for example, calls for an “economic Codesa” to discuss the way forward. At the same time there is a call for a “workers’ summit” promoted by the National Union of Metalworkers (Numsa) to debate precisely the same thing. This may be staged in the next month or two.

But, says Bell, the similarities continue. Sunter supports an imagined future for laissez faire capitalism, which says Bell, amounts to “repairing the clapped-out vehicle of liberal economics”. At the same time, many supporters of the workers’ summit also seem to favour going back to the future. They tend to favour a nationalist vision of state welfare, regulation and control which they dub “socialism”.

This, Bell maintains, is merely a variation on the same capitalist theme, that, 130 years ago, Count Otto von Bismarck referred to as state socialism. It might more accurately be described, he thinks, as state capitalism.

He feels that what is needed now are new policies and a system that takes cognisance of 21st Century realities; of the fact that current policies and the system on which they are based are now well past their sell-by date and have become a danger to the planet itself. In the absence of this, there exists a great deal of confusion and the clinging to of myths.

* Add your voice to the big labour debate.

- Follow Terry on twitter @telbelsa.