Where next for Occupy Wall Street? Conspiracy theory and the financial crisis

There has clearly been a concerted effort by a wealthy elite to bring us to our current state of pla

Conspiracy theorists have long said that the financial crisis is not a failure of regulation, of taking the eye off the ball, but rather a Machiavellian exercise that has been implemented over many years by free market liberal capitalists, wanting to erase the state and let the market work its wonders.

I want so badly to believe that it wasn't planned, that it was simply stupidity, lack of leadership and a too-big system out of control. But two events last week have finally brought me closer to believing the conspiracy brigade. First was the shocking admission from a City trader on the BBC that "Goldman Sachs rules the world", which rapidly went viral on the internet for its sheer bold-faced honesty. Even the conspiracy theorists thought it was a yes-men stunt, and couldn't possibly be true.

But the exposure of a secret letter from the European Central Bank to Berlusconi -- in which they press for action to privatise public services and overhaul the unions in order to "restore the confidence of the markets", was the final bit of evidence that convinced me.

Of course, I wasn't naïve. I knew that free marketeers were trying to dismantle the state and take over everything -- I just didn't think that it could be so well-mastered and designed, by campaign strategists of the highest order.

As a campaigner, I know when we plot a campaign strategy, its important to take the long-view. We design the opening up of political space through mobilisation and other tactics, and we build in opportunities to take advantage of key political moments. We make sure we identify and inform allies on the inside. And hopefully, after a few years, we will have won our case. But whereas the campaigns I have worked on are about fighting for human rights and the environment, the free marketeers' campaign was to overturn a system that values public goods over private enterprise, replacing it with one that values the wealthy and sees the poor as entirely expendable. Whereas the former might be based on a three or five year horizon, theirs had a 50 + year timeline. And it's finally coming to fruition on a global scale.

You can imagine Milton Friedman and a few other men sitting around a smoke-filled room at the Chicago School of Economics, back in the late 1960s, mapping out a political future with a severe global crisis at just the right moment, so that their dream of a state-free-future would become a reality. "Let's pick a country to start out with and learn some lessons," they might have said. So they started with Chile in the 1970s, pitching themselves as economic experts, and advising then dictator Pinochet to cut public spending and let the corporate sector takeover. No matter that the result was inflation of 375 per cent and 30 per cent unemployment, while eradicating the middle classes.

"This is the pain they have to endure" Friedman and his cronies said at the time. "We'll need a few more countries to strengthen our power," they might have strategised in the review a few years later, in the same, presumably smoke-filled room.

Throughout the 1980s, they worked their way through a few more developing countries as an experiment (for these colonial outposts were easy to sacrifice), as their disciples spread into the Bretton Woods institutions and beyond. They implemented their "lessons learned" (prioritise debt repayment, strip assets, privatise public services, increase wealth for the few).

"We'll need to have more influence," they would have agreed, as they infiltrated the right and the left alike -- the US Republicans and Democrats, the Conservative and Labour parties over here -- ensuring that their economic and policy advisors went through a constant revolving door with big business. They would put forward their advocates in every aspect of political and monetary policy. Now we see "expert" groups comprised of ex-Goldman Sachs bankers in Europe informing regulations on the finance sector.

And when they thought about mobilising, they could do no better than the Tea Party and its various incarnations, not to mention the long-standing think-tanks that celebrate "free enterprise", like the Adam Smith Institute or its US-based cousin, the American Enterprise Institute.

So, decades later, many of the original campaigners now long gone, you can see their offspring enjoying a whisky, a round of golf, a ride on their yacht, toasting their success. The master plan is finally taking hold in the US and Europe, the global economic crisis almost certainly a design of their cadre's original making.

Is it all a conspiracy? Chaos theory, of course, is a counter-balance to this line of thinking, but the point is, in fact, moot. There has clearly been a fairly concerted effort by the hands of a wealthy elite to bring us to our current state of play.

The question is, do we simply accept their interim victory as a fait accompli? Or can we learn from their lessons? Like any real campaigner, I'm not prepared to accept defeat, even one of this magnitude. I'm inspired by the Occupy Wall Street movement taking off in the US, but simply showing dissent isn't enough. Let's learn from the right. We now need to take a long-term, strategic view, mapping out not just what we don't like and want to change, but also who we need to influence, and precisely how.

This is not a short-term project. But the sooner we do this, the more likely we will, in our old age, still be enjoying public services, watching our children have access to education, drinking clean water under green trees and a clean sky, and looking back on a campaign well fought and well won.

Deborah Doane is the Director of the World Development Movement

Show Hide image

Taking back control... in the workplace

It’s time to reboot dignity and respect at work, says Frances O’Grady, general secretary of the TUC

Jess* lives in a small town in the north-west and is on a zero-hours contract. Some weeks she could work up to 50 hours, but others she works as few as 30. And when she got ill, her company refused to pay her sick pay. Sarah* is 38 and lives in a big city. She is employed through an agency and although she has worked more than 12 weeks for the same employer, she feels like she’ll never get the same status as permanent staff. She told the TUC: “I feel frustrated at the lack of permanent jobs in the market and how little control you have as an agency worker. Everything in my life feels temporary at the moment. My experience of agency working is that you are on the bottom rung. You can’t speak out or you won’t get work.”

Wherever you go in the UK, the story is the same. Too many working people are stuck in jobs that don’t offer enough pay or enough security to build a life on – in short, there’s not enough control. Working for the TUC, I hear these stories every week. Stories of workers who don’t know from one day to the next whether they’ll work that day. Working people in all sorts of jobs who can’t raise problems at work, because on today’s “flexible” contracts: the boss doesn’t need to sack you, he can just take away next week’s hours. Delivery drivers who have found themselves deactivated without warning. Warehouse pickers red-flagged by a gadget that decides they are too slow. And stories from careworkers whose work lives are governed by the ping of an app – but who never get enough time to meet their elderly clients’ needs.

This is the reality of work for too many people now. Isolated from colleagues and at the beck and call of their boss. Without the small measure of security granted by a permanent contract and some basic employment rights. It all leaves hard-working people with precious little dignity or control. The time is ripe for a new deal for working people – and that’s what must be on offer at this election. For a start, as we leave the European Union, every party must guarantee that our rights at work don’t go backwards. Hard-won rights such as holiday pay and protection from pregnancy discrimination came from the EU. We can’t afford to lose these rights after we leave – and we need to know that they can’t be watered down on the quiet by judges or by parliament.

And in the years to come we have to make sure that hard-working Brits won’t miss out on new protections that Dutch, Spanish and German workers get. That’s why the final Brexit deal has to include a level playing field on workers’ rights – making sure they will always be as good as or better than what’s on offer to the rest of the EU. Second, the rules to protect working people haven’t kept up with how working lives have changed. One in ten workers is already in insecure work – and if nothing changes, 290,000 more people will join them by the next general election in 2022. That’s the equivalent of 13 extra Sports Directs, or the entire working population of Sheffield.

These jobs don’t pay enough and they push all the risks on to the workers. Paying rent and bills can be a nightmare when you don’t know how much you’ve got coming in each month. Britain’s 900,000 zero-hours contract workers earn a third less per hour than the average worker. And every worker pushed into false self-employment loses their rights to sick pay and paid holiday. If Britain aspires to become a high-skill, high-productivity economy, the next government must drag the rules about work into the 21st century. Promising a review isn’t enough; every party must make real commitments to crack down on zero-hours contracts and bogus self-employment, and make sure agency workers always get the going rate for the job.

And Britain still needs a pay rise. Rising inflation and slow wage growth means a new living standards crisis is coming. And we’re still in the longest pay squeeze since Victorian times: workers are on average over £1,000 worse off each year in real terms than they were in 2008. Over the coming parliament, the minimum wage needs a serious boost, so that it reaches £10 per hour as soon  as possible. We need to get more people covered by collective bargaining agreements that raise wages and skill levels. And it’s time for the government to stop artificially holding down public servants’ pay. By 2020, midwives and nurses will have seen their real pay fall by over £3,000 – scarcely the right reward for years of dedicated public service.

Of course, the best way to raise wages is to bring great jobs to every corner of the country. In both 2014 and 2015, London’s growth was double that of the average across the rest of the UK. We still lag behind our competitors on the infrastructure we need to help the whole country – such as modern transport links and fast broadband. And our investment in infrastructure is the lowest in the OECD. More than ever we need an industrial strategy that delivers good jobs to the parts of the UK where they’re needed most. Improving the lives of ordinary working people and giving them back control of their rights – that’s what all of the major parties should be prioritising this election.

** Names have been altered to protect people’s anonymity.

Frances O'Grady is the General Secretary of the TUC. 

0800 7318496