nationalization

By various - London Green Left Blog and Red Green Labor, June 10, 2022

This is the text of Ecosocialist Alliance leaflet which will be circulated on the TUC demo on Saturday18 June, 11am start, Portland Place, London, W1. Come along and support us if you can, look out for the banner pictured above. Ecosocialism not Extinction!

The media is full of headlines about crises: cost of living, energy prices, health and social care, pandemics - and, less frequently, climate collapse. Mainstream politicians see these as separate crises, while ecosocialists recognise these are interrelated crises of the capitalist system itself.

Insulate Britain activists have been jailed for trying to get the Westminster government to begin a massive programme to insulate homes and Just Stop Oil activists also face jail for their protests outside the Kingsbury oil depot.

Simple measures like insulation and renewable energy would take millions of people out of fuel poverty and would greatly reduce the numbers dying each year because they cannot afford to heat their homes. Britain has the worst record in Europe for this: in 2020, fuel poverty charities estimated such deaths as around 10,000 a year.

Government funded insulation programmes, combined with putting taxpayers' money into renewable energy, would greatly reduce our carbon emissions as well as create thousands of good green jobs.. In addition, our reliance on the profiteering and polluting fossilfuel giants – posting record profits, while continuing to drive the climate and ecological crises – would be massively reduced.

The Tories' record is appalling with millions of working families living below the poverty line. The hike in energy prices will see well over 25% of UK households – 15m people – in fuel poverty. Johnson and Sunak’s subsidies and rebates barely touch the sides.

The British government gives the fossil fuel industry £10 billion a year in tax breaks and subsidies.

The Tories finally bowed to pressure for a windfall tax on dirty fuel producers but we would go much further. All subsidies to oil and gas companies must end now and be switched to renewables. We must take energy companies and road and rail infrastructure into public ownership and rapidly de-carbonise the whole economy. We stand for a rapid ecosocialist transition led by, and in the interests of, working people.

Ecosocialist Alliance is a network of organisations and individuals. We campaign for ecosocialist and ecofeminist solutions to the multiple crises of the system. We are internationalist: the climate crisis will not be solved by any one country, but by collective global action.

We stand firmly with the global south in seeking ecological and social justice.

We reject green capitalist “solutions”, which are unworkable under a capitalist system of infinite growth and accumulation. The planet will only be saved by disposing of this system and replacing it with ecosocialism.

By Sean Sweeney, et. al. - Labor Network for Sustainability, May 31, 2022

Web Editor's Note: this webinar discussion focuses on TUED Working Paper #14. Some of the arguments made by the presenters seem to frame advocates of locally controlled, decentralized distributed energy as "unwittingly plaing into the hands of neoliberalism", which is a debatable position (and one that some of the other attendeees push back on). 

By Robert Pollin - American Prospect, April 8, 2022

Even as Vladimir Putin’s barbaric invasion of Ukraine proceeds and concerns over the subsequent high gas prices proliferate, we cannot forget that the climate crisis remains a dire emergency. The latest report of the U.N.’s Intergovernmental Panel on Climate Change (IPCC)—the most authoritative source on climate change research—could not be more explicit in reaching this conclusion. U.N. Secretary General António Guterres described the report as a “file of shame, cataloguing the empty pledges that put us firmly on track towards an unlivable world.” This follows several equally vehement studies in recent years, as well as those from other credible climate researchers.

If we are finally going to start taking the IPCC’s findings seriously, it follows that we must begin advancing far more aggressive climate stabilization solutions than anything that has been undertaken thus far, both within the U.S. and globally. Within the U.S., such measures should include at least putting on the table the idea of nationalizing the U.S. fossil fuel industry.

By staff - Trade Unions for Energy Democracy, April 5, 2022

At its recent 17th National Congress, South Africa’s National Union of Mineworkers (NUM) adopted a bold position in favor of keeping the country’s electrical power utility Eskom fully public.

Attended by roughly 750 delegates, the three-day congress — held in Boksburg, South Africa, from March 30th to April 1st, 2022 — adopted a report titled “Just Transition and the Energy Sector.” The report declares:

In recent years, NUM has worked alongside the National Union of Metalworkers of South Africa (NUMSA), TUED, AIDC and the Transnational Institute to repel government-led efforts to break up and privatize the national utility Eskom.

By Michael Kwet - ROARMag, April 4, 2022

In the space of a few years, the debate on how to rein in Big Tech has become mainstream, discussed across the political spectrum. Yet, so far the proposals to regulate largely fail to address the capitalist, imperialist and environmental dimensions of digital power, which together are deepening global inequality and pushing the planet closer to collapse. We urgently need to build a ecosocialist digital ecosystem, but what would that look like and how can we get there?

This essay aims to highlight some of the core elements of a digital socialist agenda — a Digital Tech Deal (DTD) — centered on principles of anti-imperialism, class abolition, reparations and degrowth that can transition us to a 21st century socialist economy. It draws on proposals for transformation as well as existing models that can be scaled up, and seeks to integrate those with other movements pushing for alternatives to capitalism, in particular the degrowth movement. The scale of needed transformation is massive, but we hope this attempt at outlining a socialist Digital Tech Deal provokes further brainstorming and debate over how an egalitarian digital ecosystem would look and the steps we might take to get there.

By Thomas Hanna, Johanna Bozuwa, and Raj Rao - The Climate and Community Project, April 2022

Publicly and cooperatively owned electric utilities (community utilities) have the potential to demonstrate what an equitable, clean energy system looks like in the United States. They could become powerful “anchor institutions” in their community by grounding their decisions in democratic governance and community partnership, affordable energy and community wealth building, and access to renewable energy.

The United States urgently needs to transition off of fossil fuels and onto clean sources of energy (especially renewable energy) to maintain a livable climate. As of 2020, only around 20% of US electricity generation is from renewable energy sources. Energy utilities – the companies that run our power systems – have enormous control over the scope and scale of the transition, but have often dragged their feet or even fought against clean energy. Not only does their inaction imperil the very future of humanity, but it directly harms families – often Black, Indigenous, low income, or otherwise marginalized – who live in the shadow of toxic power plants. The current US energy system is dirty and expensive. 31% of households in the country have to make the choice between buying groceries or paying their energy bills. In response, communities across the country are beginning to mobilize to demand an energy transition.

We have a powerful tool to accelerate the energy transition in a way that builds community wealth and energy justice in our communities: publicly and cooperatively- owned energy utilities. In this report, we refer to these types of utilities as “community utilities” because they are owned by the local community. Around thirty percent of households in the United States get their energy from community utilities. This is no small part of our energy system. As non-profit utilities without faraway shareholders that are ultimately accountable to the local community, these utilities have the potential to be an example for what an equitable, clean, and democratic energy system could look like. Collective action and organizing to push community utilities toward the intersections of clean/ renewable energy and community development can be more tractable than in corporate utility areas because community utilities’ mandate is to provide a public good, not to maximize profits for shareholders.

Community utilities and cooperatives have a radical history. In the early days of electrification one hundred years ago, residents across the country rose up against profiteering private utilities who provided poor (or nonexistent) service at high prices by creating their own publicly and cooperatively owned utilities. In the state of Nebraska, for instance, they kicked all private utilities out of the state for good. To this day, there are no private utilities providing electricity to Nebraskan homes. This cause was, in turn, taken up by national leaders. For instance, Franklin D. Roosevelt started the Rural Electrification Administration (REA) after rural communities pushed for access to light in their regions. Before that, corporate actors didn’t want to enter rural areas because they didn’t see how they could profit from such unpopulated land. The REA program took electrification from ten to ninety percent in ten years as groups of farmers banded together to start their own electric cooperatives, run on cooperative principles. However, today some community utilities have forgotten their past and are not living up to their potential. Many still rely on fossil fuel energy and some have even pushed back against important climate resiliency approaches like rooftop solar. In some places, democratic governance structures have deteriorated (or been manipulated by powerful interests) and residents don’t even know that they actually own their utility. It is time to reignite the radical history of community utilities to herald the transition to a genuinely democratic, equitable, and clean energy system.

Download a copy of this publication here (PDF).

By C.J. Polychroniou and Robert Pollin - Truthout, February 24, 2022

Since mid-2020, inflation has been rising, with the level of average prices going up at a faster rate than it has since the early 1980s. In January 2022, prices had increased by 7.5 percent compared to prices in January 2021, and it now looks like the U.S. may be stuck with higher inflation in 2022 and even beyond.

Why are prices rising so dramatically? Are we heading toward double-digit inflation? Can anything be done to curb inflation? How does inflation impact growth and unemployment? Renowned progressive economist Robert Pollin provides comprehensive responses to these questions in the exclusive interview for Truthout that follows. Pollin is distinguished professor of economics and co-director of the Political Economy Research Institute at the University of Massachusetts at Amherst.

C.J. Polychroniou: Back in the 1970s, inflation was the word that was on everybody’s lips. It was the longest stretch of inflation that the United States had experienced and seems to have been caused by a surge in oil prices. Since then, we’ve had a couple of other brief inflationary episodes, one in the late 1980s and another one in mid-2008, both of which were also caused by skyrocketing gas prices. Inflation returned with a vengeance in 2021, causing a lot of anxiety, and it’s quite possible that we could be stuck with it throughout 2022. What’s causing this inflation surge, and how likely is it that we could see a return to 1970s levels of inflation?

Robert Pollin: For the 12-month period ending this past January, inflation in the U.S economy was at 7.5 percent. This is the highest U.S. rate since 1981, when inflation was at 10.3 percent. Over the 30-year period from 1991 to 2020, U.S. inflation averaged 2.2 percent. The inflation rate for 2020 itself was 1.2 percent. Obviously, some new forces have come into play over the past year as the U.S. economy has been emerging out of the COVID-induced recession.

To understand these new forces, let’s first be clear on what exactly we mean by the term “inflation.” The 7.5 percent increase in inflation is measuring the average rise in prices for a broad basket of goods and services that a typical household will purchase over the course of a year. At least in principle, this includes everything — food, rent, medical expenses, child care, auto purchases and upkeep, gasoline, home heating fuel, phone services, internet connections and Netflix subscriptions.

In fact, prices for the individual items within this overall basket of goods and services have not all been rising at this average 7.5 percent rate. Rather, the 7.5 percent average figure includes big differences in price movements among individual components in the overall basket.

The biggest single factor driving up overall inflation rate is energy prices. Energy prices rose by 27 percent over the past year, and within the overall energy category, gasoline rose by 40 percent and heating oil by 46 percent. This spike in gasoline and heating oil prices, in turn, has fed into the total operating costs faced by nearly all businesses, since these businesses need gasoline and heating oil to function. Businesses therefore try to cover their increased gasoline and heating oil costs by raising their prices.

Adopted by Unanimous Vote: February 16, 2023

Whereas, rail infrastructure the world over is held publicly, as are the roads, bridges, canals, harbors, airports, and other transportation infrastructure; and

Whereas, numerous examples of rail infrastructure held publicly have operated successfully across North America for decades, usually in the form of local/ regional commuter operations and state-owned freight trackage; and

Whereas, due to their inability to effectively move the nation’s freight and passengers during WWI, the U.S. government effectively nationalized the private rail infrastructure in the U.S. for 26 months; and

Whereas, at that time it was agreed by shippers, passengers, and rail workers that the railroads were operated far more effectively and efficiently during that time span; and

Whereas, every rail union at that time supported continued public ownership (the “Plumb Plan”) once the war had ended; and

Whereas, specifically, when the rank & file rail workers were polled by their unions in Decem­ber 1918, the combined totals were 306,720 in favor of continued nationalization with just 1,466 in favor of a return to private ownership; and

Whereas, the entire labor movement at that time was in favor of basic industry being removed from private hands, with the delegates to the 1920 AFL Convention voting 29,159 to 8,349 in fa­vor, overruling the officialdom of the AFL and its conservative position; and

Whereas, in the face of today’s crumbling infrastructure, crowded and clogged highways and city streets, poor air quality, lack of transportation alternatives and deepening climate crisis, ex­panded rail transportation – for both freight and passenger - presents a solution to these social ills and problems; and

Whereas, the rail industry today however is contracting – rather than expanding – at a time when we need more trains, trackage, rail workers, and carloads, not fewer; and

Whereas, the private rail industry is moving 5 to 10% less freight than it did 16 years ago, and in recent years has shuttered diesel shops and classification yards, and has drastically reduced the number of employees; and

Whereas, the private rail freight industry is generally hostile to proposals to run any additional passenger trains on their tracks – despite having legal common carrier obligations to do so - making it difficult if not impossible to expand the nations’ passenger rail network; and

Whereas, the rail industry has come to focus solely on the “Operating Ratio” as a measure of their success, and in doing so have engaged in massive stock buybacks and other measures that deliver short-term gains for stockholders but at the expense of the long-term health and vitality of the industry; and

Whereas, the Class One carriers’ failures to move freight effectively have contributed greatly to the ongoing supply chain crisis, resulting in some of the highest inflation rates in many years; and

Whereas, these “Fortune 500” corporations have raked in record profits, in both “good” years and “bad”, right through the “Great Recession,” the pandemic, and otherwise, right up to the most recent Quarterly financial announcements; and

Whereas, during these years of record profits, these same Class One carries have:

• Failed to solicit nor accept new but “less profitable” freight traffic.
• Forwarded less freight than 16 years ago.
• Stonewalled practically every attempt by Amtrak and other agencies to add passenger ser­vice.
• Failed to run Amtrak passenger trains on time, despite regulation and law to do so.
• Downsized the infrastructure, physical plant, and capacity.
• Eliminated nearly a third of the workforce.
• Outraged shippers and their associations by jacking up prices, providing poor service, and
• assessing new demurrage charges.
• Thumbed their nose at state and federal governments.
• Blocked road crossing and increased derailments by the implementation of extremely long trains.
• Threatened and attempted at every turn to run trains with a single crew member.
• Opposed proposed safety measures, from Positive Train Control (PTC) to switch point indi­cators;
• the End-of-Train Device (EOT) to Electronically Controlled Pneumatic Brakes (ECP).
• Taken a hostile stance towards the myriad unions, refused the bargain in good faith, consist­ently demanding concessions, all the while expecting these “essential workers” to labor through the pandemic without a wage increase.

Therefore, be it Resolved that the ILWU NCDC supports the public ownership of the rail infrastructure of the U.S., Canada, and Mexico, to be operated henceforth in the public interest, placed at the service of the people of all three nations; and

Be it Further resolved that the ILWU NCDC urge all of its members to voice their support for this proposal; and

Be it Further Resolved that the ILWU NCDC urges all ILWU locals and IBU regions to take a similar stand; and

Be it finally Resolved that the ILWU NCDC urges all labor unions, environmental and com­munity groups, social justice organizations, rail advocacy groups and others to push for a mod­ern publicly owned rail system, one that serves the nation’s passengers, shippers, communities, and citizens.

By Marie-Sol Reindl - Open Democracy, February 11, 2022

Don’t be fooled by Shell’s green rebrand. The company is still deeply undemocratic and destroying the environment.

It has been a turbulent year for the oil and gas giant Shell.

Last May, Dutch courts ruled that Shell must drastically reduce its carbon emissions. In October, ABP, a major shareholder, divested from the company. The following month, the firm announced plans to move its headquarters from the Hague to London and drop its iconic prefix, ‘Royal Dutch’ (the company is now just Shell plc). And, in recent weeks, it has come under fire for its mammoth 14-fold increase in quarterly profits, having made $16.3bn (£12bn) pre-tax profit in the last quarter of 2021, while gas prices surged across Europe.

Now, as Shell presents itself as a global leader in the green energy transition, it is still actively investing in new oil and gas drilling.

But that is not the company’s only problem.

For a start, Shell’s profit-maximising business model is deeply undemocratic, benefitting top management and shareholders at the expense of communities around the world. The firm has also not reckoned with its colonial past and severe human rights violations, while its privileged access and influence over political decision-making processes are an obstacle towards building a democratic and green energy system. And, finally, its investment in ‘innovation’ is primarily dependent on gas and carbon capture, which keeps the world locked into a fossil fuel future.

While many agree that ending fossil fuel extraction is necessary, questions remain over how to dismantle oil and gas giants such as Shell. These companies will certainly not stop polluting of their own volition – so governments and civil society must take strategic action to force them to do so.

Can this be done via carbon pricing, bankruptcy, strategic litigation or nationalisation? When assessing these mechanisms, it’s critical to consider how – and if – they would reckon with the corporation’s colonial legacy and safeguard labour rights to build a fairer and regenerative energy system.

By Sean Sweeney, Richard Kozul-Wright, Rosa Pavanelli, Josua Mata, and David Gobé - Socialist Project, January 16, 2022