Last week the news was full of reports of demonstrations in London, over the G20 summit conference out in the Docklands. And I, for one, was a bit puzzled. The protesters seemed to be something of a strange coalition.
Generally the demonstrators were summed up as “anti-capitalists”, as always happens at these events; probably because the Socialist Workers are always on hand to provide lots of placards in the hope of furthering the Trotskyite Revolution that they’re expecting, in true millennialist fashion, any day now. And there were plenty of such placards visible in the news reports. But that wasn’t the picture I gathered from the protesters who were actually interviewed on TV. They all seemed to be died-in-the-wool capitalists, people who truly believed in capitalism, people who were upset that their bankers had disappointed them.
These people were saying: “all our money has gone”. Because these were all people who had money, and had invested it. They had been living off their savings income,* and were protesting that the drop in interest rates has wiped that income out. Whether their capital is gone too, of course, depends where they’d invested it and how risky they were prepared to be. But risk is an inherent part of the system.
These people were well off, by any measure; at one time, at least. If they weren’t, then they wouldn’t have had money to invest to begin with. The vast majority of people, around the world, don’t have that complaint to make, because they’ve never been rich enough to save. You don’t have to worry about the return on your investment, or about the risk to your capital, if you’re in the great majority who don’t have any capital to invest. And if you’re an anti-capitalist, I’d have thought you’d be celebrating the failings of the capitalist system, trying to tell the world all about them. These people I’d class maybe as Voodoo Capitalists, people who assume that if they make an investment, they are guaranteed an income, because That’s Just How It Works. The value of their investments may go down as well as up, but that was buried in the small print, so they feel it’s their natural right that their money should keep on coming in. Not anti-capitalists, not Trotskyists, just overly-trusting people.
* A “private income”, to use the old-fashioned term