Slump to Last

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I scale recession is ir way in Britain, accag to the latest survey ad out by the FinanTimes'. figures, and their intertion by this mouthpiece tish capitalism, serve * to expose the TUC of state pay laws protectbe Indeed the Financial ' main headline, "Pay. i has Failed to Boost Conте", , shows that the crisis fish capitalism goes much i than simply seeking to * pay cuts on the workCREDIT massive expansion of credit ¿ the "boom" period which ded the establishment of ¿ industries is now working ty through the capitalist a in the twin forms of mon-inflation and a continually I rate of profit. -acrease this rate of profit means that large quantities of capital, (now embodied in tactories, stocks and labour force) must be taken out of production, while the productivity of labour, the only source of profits, must be increased The Financial Times' survey shows that British capitalists are certain that the slump must deepen in the pursuit of profit by the fittest firms. Thus its subsidiary headlines announced:Industry is still pessimistic; The recession worsens; and Unemployment will increase.

Among those replying to the survey only 5% of companies expected their labour force to increase in the next 12 month while 45% expected it to drop (among building and construction firms 72% expected a drop in the number employed). In addtion to this 42% expected capital expend iture (new and replaced plant) to decrease, and 36% expected to run down their existing stocks of components and raw materials.

The gloom from the FT survey is almost matched by that of Phillips & Drew the brokers wh conservatively forecast a drop in workers' real earnings of 4 - 5% as a result of the pay laws, and anticipate a drop in consumer spending, while unemployment reaching a 1.5 million "peak' in 1976 will, they estimate, remain at around 900,000 until at least 1979.

DEEPENING The expected deepening of the slump is reflected in the mortal crisis of the British machine tool industry - a sure barometer of future growth. Hardly any of these companies are now working at more than 60% of capacity, and one major company did not receiv a single order from a British company last month. Only production for export has kept the industry going at all. = The case for socialist nationalisation as the only alternative to long-term slump can hardly be more clearly expressed.

Jenkins While many members of the white-collar union ASTMS may not be mourning the loss of Stalinist trainee officer Judy Cotter, her dismissal raises questions far more wide-reaching than the security of jobs of the other full-time ASTMS officials.

The fact that the contract for