The publication of this year’s Sunday Times Rich List 2012
has revealed a trend which has been going on for many years now – the rich are
just getting richer.
The publication of this year’s Sunday Times Rich List 2012
has revealed a trend which has been going on for many years now – the rich are
just getting richer. You might think this odd given that we are meant to be in
the age of austerity with firms going bust or laying off workers. But no, as
the opening article in the magazine explains:
‘The combined wealth of the 1,000 richest men and women in
Britain has reached Olympian heights in the past year, setting a Rich List
record of more than £414 billion. The figure represents a 4.7% rise on the 2011
total of £395.8 billion and surpasses the previous high of £412.8 billion
recorded in 2008, months before the financial crash from which the rest of the
British economy is yet to recover.’
How can this be explained? The UK has just officially
re-entered Recession although it could be asked, did we ever leave? Things are
certainly not good for those on low pay and benefits. The government has just
demanded another 5% be shaved off ministerial budgets. Yet things have never
looked better for the super-rich. The truth is that capitalism has made it
perfectly clear that they have no intention of taking the hit for the crisis
they caused.
Most of the biggest rises are to be found amongst the ranks
of the speculators rather than those in industry and retail who are obliged to
gain wealth by producing – or more to the point getting their workers to
produce – stuff. So we see the likes of David and Simon Reuben upping their
wealth by £907 million on the back of property deals and internet operations.
John Fredrikson has pocked another £400 million despite problems with his
shipping empire by virtue of oil speculation and property holdings. Joseph Lau
gained another £200 million thanks to property; the Duke of Westminster did
even better with his property holdings with £350 million being added last year
to his overall holdings of £7,350 million. Speculation, finance, wheeling and
dealing, and so on… The most
parasitic sections of capitalism have not so much weathered the storm as
totally avoided it.
Of course, this is the section of capitalism that most
captivates the thoughts of the Tory party. It is also the section of capitalism
most keen in the introduction of austerity cuts by the government. Industry and
production have tended towards the US option of throwing money at big business
to fund growth rather than the other option of ruthless cutting supported by
Osborne and Cameron – in reality a choice between defeat and losing. Both
options appeal to different sections of the ruling class but neither have the
advantage of actually working even from the point of view of capitalism.
Industry thinks they will do better with the funding option but finance capital
thinks not. Either way, the working class is the loser.
For decades
now, finance and speculation have dominated the ranks of British capitalism.
They are nothing more than casino capitalists gambling at our expense. This continued gross pocketing of wealth
at a time of cuts reveals just how rotten the system is and why we need
socialism
