Different revolutionary socialist organisations have two distinct theories about how to achieve socialism, which is reflected by their differing strategies on all sorts of issues including defeating austerity (cuts, the public sector pay cap and other attacks on the living standards of the masses):
Revolution happens (or starts) in one country first, which inspires the masses in other countries to rise up and overthrow their ruling classes too. This was the model pursued in Russia flowing from the October 1917 revolution, but a combination of factors meant it didn’t work – Russia being a semi-feudal country at the time, about 20 foreign armies invading to try to restore capitalism, naivety of the German Communist Party combined with the assassinations of Rosa Luxemburg and Karl Liebknecht preventing the revolution spreading, and the disastrous decision to abolish the Constituent Assembly (after campaigning for it when the capitalist Provisional Government that came to power in February 1917 refused to call any sort of elections). Some argue that it is necessary to wait until election time before changing governments, but many countries (including the USA and UK) have very undemocratic electoral systems (I advocate proportional representation under capitalism or in a future socialist society as explained in my About Steve Wallis page) and the mood of the masses may dissipate if forced to wait for months or years (with many suffering and even dying in the meantime).
Revolutionary movements happen more or less simultaneously, either due to a concerted mass movement initiated by the masses across the world (at a time of our choosing, such as International Workers’ Day aka May Day (1 May) or a summit of world leaders) – with the ability of workers to withdraw their labour, via general strikes or particularly mass strikes from below as advocated by Rosa Luxemburg, key (notwithstanding the power and courage of activists occupying public spaces, demonstrations and direct action) – or due to another massive global financial crisis (such as in the eurozone or a repeat of the 2007-8 credit crunch which led to many banks across the world being bailed out by capitalist governments). Nowadays, the high level of globalisation with interconnected multinationals cause economic crises to quickly spread, and activists using social media are able to cut across big business propaganda to quite a large extent (in countries where there is a reasonably low level of censorship at least).
MoneyWeek, which claims to be “the UK’s best-selling financial magazine” has been predicting “The End of Britain” in a slick and heavily funded advertising campaign, with the main objective of getting new readers and encouraging them to put some of their money in overseas “bolt-holes” (arguably to encourage tax avoidance as well as to guard against loss of investors’ money due to the “inevitable economic and social chaos” they predict in the UK). I wrote a critique of that video/letter on this blog in October 2013 at Is MoneyWeek’s “End of Britain” just fearmongering? What about US debt default? Is socialist revolution on the cards? Their main argument is that government debt is increasing rapidly, despite the “austerity” agenda, even when the interest rates they pay for government bonds (gilts) are around 2%, and that Britain would be “broke” and unable to pay them back if they reached a more normal level of about 5%.
[Incidentally, although “End of Britain” does not refer to the potential break-up of the country if the Scottish people vote “Yes” in the referendum later this year, Scottish National Party (SNP) leader Alex Salmond has recently remade an argument he put in May 2013 that if an independent Scotland was not allowed to share the pound that it would not pay a share of the national debt. This situation itself could exacerbate the crisis of capitalism and is in my view a major reason why virtually the entire political establishment (apart from the SNP of course) is opposed to Scottish independence. Apart from lack of control over interest rates etc., with Scotland not being truly independent if the Bank of England has power over the currency, this is another reason for the Radical Independence Campaign (which is arguing for a “Yes” vote on a much more left-wing basis to strongly argue for an independent currency.]
This blog entry is about a new web page (letter) by MoneyWeek called What Osborne didn’t tell Parliament (its web address looks temporary so do a web search for those words if that link doesn’t work). “The End of Britain” has been widely criticised because it was produced by MoneyWeek’s advertising department, and has biased graphs not adjusted for inflation or GDP, but this new letter is professional, written by financial experts and designed for serious investors. Its points are less controversial and difficult to argue against (with the propaganda against the welfare state omitted for example) although for those who believe in gradual reforms to capitalism to end up with some sort of “socialist” society, with such people often arguing that we are “the seventh richest country in the world” and that austerity is unnecessary, it is a massive wake-up call!