Brexit and Nationalisation: Reality and fiction
Overnight, with the flick of a switch, Jeremy Corbyn plans to nationalise every single utility company and railway services. Now, apart from the monies needed for such enterprise, who is going to run the said companies and who is going to work for the said companies? Will the top managers and the middle managers want to become state employees? Will the workers want to become state employees?
Will specialized individuals want to work receiving lower salaries? What about the shareholders' position in what looks like a massive expropriation process? We are talking about billons of Pound invested in shares in companies that are valued in the London Exchange. The financial sector is the hearbeat of Britain and anything that affects the heartbeat of Britain can have widespread repercussions.
This proposed nationalisation has little to do with improving services for the general public. It has more to do with increasing the power of the trade unions that was dramatically reduced. In past public companies were used by the Labour Party for political purposes. Governments of a different political persuasion had to contend with the reality that despite having won an election they were often kept hostage by Labour Party controlled trade unions.
It was Tony Blair that despite being the Leader of the Labour Party knew that unless he curbed the powers of some elements within the Trade Union Movement the then Labour Party as it was would be unelectable. So he set out to transform the trade unions. The first thing that he looked at, together with John Prescott, was Clause Four - block vote.
The only way to weaken the influence of the bosses of the trade unions was to implement the rule of "one member, one vote". Having done that, for thirteen years - the Labour government firstly led by Tony Blair and in the end by Gordon Brown, never nationalised any utility companies and didn't nationalise railway services. Why? Because they didn't want to become themselves hostages of the trade unions.
When Labour Party MPs and now former Labour Party MPs speak against Jeremy Corbyn and describing him as dangerous, they know very well that Jeremy Corbyn is trying to turn the clock back in the Labour Party and in the country as a whole. The whole agenda is about power and control. Those led by Jeremy Corbyn want total control and controlling mass media and social media and any form of communication is very much appropriate in a dictatorial regime.
They will also control education in Britain. The idea of abolishing private institutions and the idea of putting everything under the control of a single authority will ensure that those born and growing up in Britain will have to conform to the ideological dictats. We have already seen quite a few examples when people who have different ideas or beliefs are excluded by Student Unions, Colleges and Universities.
At every level, this Labour Party Leadership is leading the nation towards a dictatorial regime dressed as a democracy in which everything you do will be scrutinized by ideological zealots. With this Labour Leadership we are going back to the days before the fall of the Berlin Wall.
Massive tax increases, massive borrowing, loss of incentives for private investors, and in a country like the United Kingdom this will mean having to pay ever higher interest rates to attrack people willing to buy state bonds to manage the debt. The reality of low interest rates comes to an end and will go back to boom and bust that in the end will more bust than boom. The moment interests rates start rising homeowners that have mortgages will be hit hard and unable to make payments and we know what happens when this happen.
Wasn't the banking crisis caused by a crisis in the housing market in the USA when people could not afford to make mortgage payments and many lenders found themselves with massive debts and devalued housing stocks? This is called negative equity. The words was repossesion. Thousands upon thousands of homes repossessed and the state having to go out and rescue banking institutions to prevent total collapse of the economy.
And we will get to the moment when borrowing will not be borrowing to invest or to pay for public services. It will be borrowing to pay debts and for little else. At this stage, Britain becomes a Third World Country, no more the thriving economy of today, but a country at the mercy of foreign lenders. This is the cost of the approach proposed by the present Leaderdhip of the Labour Party.
For Jeremy Corbyn, Brexit is an unexpected issue to have to deal with. The real issue is the creation of a completey different kind of Britain. Some say that he is a secret supporter of Brexit because the enormity of the changes he plans to implement would not fit in in a free and democratic society. This is not just about Political Correctness. This is about Democratic Centralism and those who know the meaning of Democratic Centralism and the source of such expression will be horrified.
