The financialisation of everyday life must be confronted

Unless we can reverse this financialisation and create a healthier basis for growth, the prospects for working people look grim.

The debate about growth and economic restructuring in Britain ought to depart from the fundamental transformation of UK capitalism during the last four decades. Britain’s economy is now beholden to big finance. Or to put it more accurately, the UK has become financialised, as has the USA but also Japan and Germany. Financialisation is a deep underlying change, and no set of radical or socialist economic policies would make sense unless that was recognised.

The previous decade has cast light on the transformation:

Finance grew extraordinarily in terms of prices, profits, and volume of transactions, but also in terms of influence and arrogance. By the middle of the decade a vast bubble had been inflated in the USA and the UK, the bursting of which was likely to be devastating.

The expansion of finance represented much more than financial excess. Finance had become pivotal to economic activity and to determining economic policy, but also to organising everyday life. Mature capitalism had become financialised. 

In August 2007 the US money market had a heart attack, and in August-September 2008 the global financial system had a near-death experience. Deep recession followed across the world, and then in 2009-2012 the crisis took a further nasty turn. States had become perilously exposed to debt because recession had reduced tax revenues, while rescuing finance had imposed fresh costs on the exchequer. Austerity followed, causing loss of income for working people, unemployment and destruction of welfare. Things became bad enough in the UK, but the impact of austerity in the Eurozone has been catastrophic.

As I argue in my book, Profiting without Producing, published by Verso this November, the crisis has revealed three fundamental trends of financialisation:

First, industrial and commercial enterprises have become increasingly involved in financial operations, often undertaking financial transactions to earn profits. Big business, in particular, relies less on banks, while changing its organisation and investment practices. The ideology of ‘shareholder value’ has become prevalent among large enterprises.

Second, banks have turned toward open financial markets to make profits through financial trading rather than through outright borrowing and lending. They have further turned toward households as a source of profit, often combining trading in open markets with lending to households, or collecting household savings.

Third, households increasingly rely on the private financial system to facilitate access to vital goods and services, including housing, education and health, as well as to hold savings. Everyday life has become financialised.

Financialised capitalism is an economic system of weak and precarious growth, low wages, profound inequality, and deep instability. The ascendancy of finance has resulted in regular financial bubbles, which cause devastation when they burst. Finance first earns enormous profits, and then calls upon society to carry the costs of crisis. Events since 2008, including the imposition of austerity, reflect the enormous influence of financial interests over policy-making, and indicate that financialisation will persist.

On Saturday 2 November I will be speaking at the first conference for the Centre for Labour and Social Studies, where I will be discussing ways working people could oppose and reverse financialisation. This is a vital process but it is far from easy. For one thing, it would be necessary to introduce regulation that could prevent financial institutions from engaging in speculative activities. Such regulation must include direct controls on interest rates and on the lending practices of financial institutions, if it is to have an impact. Time is short as yet another bubble is gradually developing, not least in the UK.

But regulation alone would never be enough. Public property over financial institutions must also be introduced as private banks have failed repeatedly, thus causing enormous pain. The UK needs public banks with a fresh spirit of public service that would support investment as well as meeting the financial needs of working people.

More broadly, financialisation of everyday life must also be confronted by reversing the involvement of private financial institutions in housing, education, health and elsewhere. Imaginative, flexible and creative public provision across a range of goods and services would be vital to reversing financialisation.

If financialisation began to be reversed, a healthier basis could be created for pro-growth macroeconomic policies but also for required restructuring of the UK economy to provide secure income and employment. Otherwise, the prospects for working people look far from optimistic. 

Class Conference 2013 will take place on Saturday 2 November at TUC Congress House. Tickets can be purchased here

Britain’s economy is now beholden to big finance. Photo: Getty
Getty
Show Hide image

Levi Bellfield, Milly Dowler and the story of men’s violence against women and girls

Before she was so inextricably connected to the phone hacking scandal, Milly Dowler was one of many women maimed and killed by a violent man.

The name Milly Dowler has meant phone hacking since July 2011. The month before that, Levi Bellfield (already imprisoned for the murders of Marsha McDonnell and Amelie Delagrange, and the attempted murder of Kate Sheedy) had been convicted of killing her, nine years after her death. But almost immediately, she became the centrepiece of Nick Davies’s investigations into Fleet Street “dark arts”, when it was revealed that News of the World journalists had accessed her voicemail during the search for her.

Suddenly her peers were not McDonnell, Delagrange and Sheedy, but Hugh Grant, Leslie Ash, Sadie Frost, Jude Law. People she could only have known from TV, now her neighbours in newsprint. Victims of a common crime. She had attained a kind of awful fame, and remains much better known than McDonnell, Delagrange and Sheedy.

There is a reason for that: with Milly Dowler, there was hope of finding her alive. Weeks of it, the awful hope of not knowing, the dull months of probability weighing down, until finally, in September 2002, the body. McDonnell, Delagrange and Sheedy were attacked in public places and found before they were missed. It is not such an interesting story as the schoolgirl who vanishes from a street in daylight. Once there were some women, who were killed and maimed by a man. The end.

Even now that Bellfield has confessed to kidnapping, raping and killing Milly, it seems that some people would like to tell any story other than the one about the man who kidnaps, rapes, kills and maims girls and women. There is speculation about what could have made him the kind of monster he is. There must be some cause, and maybe that cause is female.

Detective Chief Inspector Colin Sutton (who worked on the McDonnell and Delagrange murders) has said insinuatingly that Bellfield “dotes on his mother and her on him. It's a troubling relationship.” But it was not Bellfield’s mother who kidnapped, raped, killed and maimed girls and women, of course. He did that, on his own, although he is not the first male killer to be extended the courtesy of blaming his female relatives.

Coverage of the Yorkshire Ripper accused his wife Sonia of driving him to murder. “I think when Sutcliffe attacked his 20 victims, he was attacking his wife 20 times in his head,” said a detective quoted in the Mirror, as if the crimes were not Sutcliffe’s responsibility but Sonia’s for dodging the violence properly due to her. Lady Lucan has been successfully cast by Lucan’s friends as “a nightmare” in order to foster sympathy for him – even though he systematically tried to drive her mad before he tried to kill her, and did kill their children’s nanny, Sandra Rivett. Cherchez la femme. Cherchez la mom.

I know little about Bellfield’s relationship with his mother, but one of his exes spoke about him earlier this year. Jo Colling told how he had terrorised her while they were together, and stalked her after she left. “When I knew he was with another woman and not coming home it was a relief, but now I know what he was capable of, I feel guilty,” she said. “I did get an injunction against him, but it only made him even angrier.”

Colling fears that she could have prevented Bellfield’s murders by going to the police with her suspicions earlier; but since the police couldn’t even protect her, it is hard to see what difference this could have made, besides exposing herself further to Bellfield’s rage. Once there was a woman who was raped, beaten and stalked by the man she lived with. The end. This is a dull story too: Colling’s victimisation is only considered worth telling because the man who victimised her also killed Milly Dowler. Apparently the torture of a woman is only really notable when the man who does it has committed an even more newsworthy crime.

Throughout his engagements with the legal system, Bellfield seems to have contrived to inflate his own importance. Excruciatingly, he withheld his confession to murdering Milly until last year, leaving her family in an agony of unknowing – and then drew the process out even further by implicating an accomplice, who turned out to have nothing at all to do with the crime. He appears to have made the performance into another way to exercise control over women, insisting that he would only speak to female officers about what he did to Milly.

It is good that there are answers for the Dowler family; it is terrible that getting them let Bellfield play at one more round of coercions. And for the rest of us, what does this new information tell us that shouldn’t already be obvious? The story of men’s violence against girls and women is too routine to catch our attention most of the time. One woman killed by a man every 2.9 days in the UK. 88,106 sexual offences in a year.

Once there were some girls and women, who were tortured, stalked, kidnapped, raped, killed and maimed by a man. Dowler, McDonnell, Delagrange, Sheedy, Colling. More, if new investigations lead to new convictions, as police think likely. All those girls and women, all victims of Levi Bellfield, all victims of a common crime that will not end until we pull the pieces together, and realise that the torture, the stalking, the kidnaps, the rapes, the killing and the maiming – all of them are connected by the same vicious logic of gender. Then, and only then, will be able to tell a different story. Then we will have a beginning.

Sarah Ditum is a journalist who writes regularly for the Guardian, New Statesman and others. Her website is here.