In the Age of Austerity

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1 In the Age of Austerity Folie 1 Public Opinion and Workers Conciousness in Europa Espace Marx transform! europe Paris, July, 1 st

2 Surveys by Wissentransfer and ISF Munich Folie 2 15 group discussions and 32 interviews with 122 employees (m/f) in two periods: 2010 (crisis) and 2012 (recovery) employees, shop stewards and members of work councils (bottom line) from 45 companies in the metal, electro technics and textile industry and employees in social services: hospital nurses and kindergarten teachers

3 Folie 3 I. Threatened Paradise: Germany s exceptional position

4 Europe divided: double dip or 6 years of crisis Industrial Production in der Euro zone (2010=100) Folie 4

5 Unemployment: the German singularity Folie 5

6 Not effected by crisis but this might change Folie 6 Question: How much is your life effected by the crisis? 5/09 9/09 1/2010 2/2012 The crisis doesn t effect my life at all and will not Ii future Up to now it s not effected but I fear that this will change soon It effects a bit but not that much I m strongly effected (Source: Institut für Demoskopie Allensbach)

7 Folie 7»What do you think: is the economic performance of Germany better/the same/worse compared to the west european neighbours? Source: Bankenverband Juli 2013, representative opinion poll

8 The threatened paradies Folie 8»Many voters are proud and pleased that Germany was able to resist crisis up to now. Nevertheless there is a latent feeling of unease. Germany is regarded as a threatened paradies where fairness and justice are eroding. Future seems to be a gloomy threat. The nightmare of crisis lies in wait outside the borders. It should be banished there as long as possible. «(rheingold Institut, ; representative opinion poll)

9 Folie 9 II. Labour within a regime of financial repression

10 Financial markets and banks in focus Folie 10»During the last years financial markets and banks became a synonym for a source of danger They became associated with high profits, lacks of control, too much influence, exaggerated prices and exorbitant risk. 79% of the (German) population think that banks are hardly to control, 69% think, that their influence is to big Up to know citizens have little confidence in the so called self healing processes of financial markets. Only 23% are convinced that banks learned from what happened during the crisis Therefore the addiction of critizens for public controls and interventions of banks/financial markets is much bigger as it is in onther branches of the economy. «(Institut für Demoskopie, repräsentative Befragung, )

11 Non transparancy of financial markets Folie 11»Obligations, CDEs or CDAs, or whatever they are called this is nothing but coloured paper. If you strike a match ist all gone.it s only speculation, fictitious things but that might ruin a healthy business There have beeen years when Siemens earned more with speculation than production. Or Porsche they made more profits (with speculation) than than real sales. Absolutely crazy. Only by speculation.«(shop steward,»krise ohne Konflikt«, 2010)

12 1. a different type of crisis: corporate routine Folie 12 Corporate policy in a regime of finance led accumulation (and underlying overaccumulation) leads to permanent restructuring: out /insourcing, intensification of work, flexibilization of working time, pressure on budgets, working teams, wages etc. Double understanding of crisis: a.economic performance: not effected now but unsecure future b.labour performance:»we are always in the situation of crisis«when the economic crisis seems to be overcome shift from focus on jobs to the threats of work according to permanent restructuring

13 2. erosion of middle classes Folie 13»Especially in middle classes we find a significant sensibility about developments which could endanger their social status. This might provoke attitudes that other segments of the population are responsible for the loss of status. This will lead to spreading discrimination.«

14 3. right wing populism Folie 14 The shift from fordism and welfare state to finance market capitalism leads to deeper social decomposition und growing fear that the social status. Accordingly right wing populism has grown in almost all west european countries since the end of the 1970ies Three aspects are significant: increase of xenophobic, racist and at the end extreme right wing attitudes massive erosion of confidence in political institutions steadily decline of political participation (elections etc.) in underclasses Agenda of right wing populism: xenophobic (islamic countries, gypsies from Rumania etc.) social exclusion defending the national welfare state anti EU beaurocracy

15 Attitudes of right wing populism (Source: W. Heitmeyer: Deutsche Zustände, Bd. 9, Berlin 2010) Folie 15

16 »Social splitting of democracy«folie 16 Average turnout at the national elections Sept. 2013: 70% Turnout in bourgeois/higher middle class constituencies: more than 80%. Turnout in constituencies with precarious working and living conditions (high unemployment, low income, low educational level etc): +/ 50%. This gap is getting even bigger.»the background of the growing inequality of the turnouts in elections is the social splitting of the electorate. Germany has become an exclusive democracy for the higher two third of society... the middle an upper classes, while precarious surroundings are representeted to a much lower degree.«(source: Bertelsmann Stiftung/MPIfG: Prekäre Wahlen, 2013)

17 Folie 17 III. Social justice in a meritocratic society

18 More social injustice in the long run Folie 18 Question: Are the economic circumstances in Germany what the people own and earn more or less justified? red = not / blue = justified (Quelle: Institut für Demoskopie, repräsentative Befragung, 2013)

19 Folie 19 Social justice even during economic upswing Questition: Social justice did it increase or decrease? blue = increase / red = decrease (Source: Institut für Demoskopie, representative poll)

20 Folie 20 On the other hand: more confidence in»soziale Marktwirtschaft«(Quelle: Bankenverband Juli 2013, repräsentative Befragung)

21 What is regarded as»social justice«? Folie 21 aliving wage 91% equal opportunities in education 90% the state is responsible for basic needs 77% to be payed by results 70% families should be supported by state 66% state should rebalance too big income gaps by taxes 53% It is justified... that people with high performance earn much more 80% that unemployed get considerably less than employees 77% What is most important? (0 = unimportant; 10 = very important) equal opportunities 9.1 justice for families 8.3 adequate pay according to individual performance 8.3 Justified distribution of wealth 7,5 (Source: Institut für Demoskopie Allensbach 12/2012)

22 Folie 22 IV. Alternatives

23 Folie 23 Quelle: Gallup 2013

24 Folie 24 Quelle: Gallup 2013

25 Folie 25»Does politics guarantee more equality between poor and rich people or are politics responsible for a widening gap in the distribution of wealth?«

26 Findings in our surveys about the»political field«folie Primacy of the economy over politics the state is captured by powerful lobby groups ordinary people are without significant influence. Question:»Do we still live in a democracy?«answer:»it looks like. But behind our back other decisions are taken«2. The state is much less adressed to solve problems. Some basic needs and welfare infrastructure minimum wage, laws preventing precarization, education, health should be guaranteed. Background: three decades of neoliberal state intervention 3. Politicians are regarded as selfish, self seeking or corrupt, without real influence to change things. They are part of the problems not part of the solution. 4. Parties are ignorant»ordinary«people or tradeunionists are not reguarded as valuable members. 5. In the result: growing contradiction between the»reality«of the political system (as it is looked at) and the necessity of political solutions.

27 Findings in our surveys about counter power Folie More sensibility due to precarious work. Efforts to bridge the gap between employees with permanent contract and temporary workers. Background: a precarious workers have become a threat for the core workforce. 2. Financialization and market driven restructuring create similar problems in the industrial and service sector: shortages of workforce, cutting budgets, repressive working conditions, pressure to perform etc. This may be a source for joint action and class solidarity.»a joint strike that would be a fine idea which would impress politicians«. 3. Trade unions are not discredited als parties and politicians. They should take more political action without moving on the political field. 4. Systemic critique (»we are not pulling in the same boat«) but too little explanation (by the trade union about the reason for the crisis) and therefore helplessness concerning who is responsible and what has to be changed

28 Folie 28 V. New surveys

29 Folie We have to discuss Germany s singularity: what is specific (e.g.»jobs first«or»social justice«), which developments might be in common? 2. We spoke with members of the core workforce. But we know: we cannot leave out the precarious workers. 3. A big problem is the»compatibility of work and family«due to pressure in the working regime. That means: we cannot concentrate on»work«alone. 4. There is a distinction between class and personal character. This seems to be a main reason for the difference between the current situation and future prospects. We should think about it. 5. The linking of»xenophobia«and»welfare«how can it be delinked? 6. Europe: a case of ignorance, threat, critique and expectation?

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