Summary: <br> <a rel="noreferrer noopener external" href="https://twitter.com/carthy_aubrey" target="_blank" data-wpel-link="external">Aubrey McCarthy</a> is the founder and chairman of <a href="https://www.tiglin.ie/" target="_blank" rel="noreferrer noopener external" data-wpel-link="external">Tiglin</a>, a charity that provides services to homeless people.<br> <br> <br> <br> <br> <br> <br> *****<br> <br> <br> <br> I listen to podcasts quite a bit in arrears. I’m not too worried about being current, I suppose, and I was just listening to a <a href="https://shows.acast.com/the-david-mcwilliams-podcast/episodes/us-politics-irish-banking-mismanagement" target="_blank" rel="noreferrer noopener external" data-wpel-link="external">David McWilliams podcast from August</a>, he was talking about the banks, not too surprising. And he touched on a topic that I’m surprised that more people don’t discuss.<br> <br> <br> <br> David McWilliams didn’t really discuss the topic I’m referring to, but he did kind of arrive at the topic. This goes all the way back to Marx, The Communist Manifesto and all that, and the workers seizing the means of production.<br> <br> <br> <br> Whatever about my other views, I think this misunderstands how economies work. Firstly, that whole thing about the workers seizing the means of production, whenever it has been put into effect, or even tried to be, it inevitably means the state seizing the means of production, nationalising industries.<br> <br> <br> <br> <br> <br> <br> <br> This was a cornerstone of left-wing policy up to about the 1970s, but became a bit taboo after that, not least because of how badly nationalised industries performed. When Mary Robinson was running for president in 1990, there were a few desperate Fianna Fáil attempts to throw back at her statements, that she had made in the 1960s, advocating nationalising the banks.<br> <br> <br> <br> So it was particularly ironic that another 20 years later in 2010, it was Fianna Fáil that ended up effectively nationalising the banks, and the Labour Party was the only party in the Dáil that voted against the bank bailout that led directly to that nationalisation. But history, or at least the observations of a pop economist is proving that … well, I suppose they were both right and wrong, but Fianna Fáil were right first.<br> <br> <br> <br> The bottom line is that the Irish public are being hosed by Irish banks. But hang on a minute, Irish banks were, and largely still are, nationalised. Haven’t the workers seized the means of production already.<br> <br> <br> <br> This exposes why the Marxist analysis doesn’t work.<br> <br> <br> <br> The government – the people – can regulate an industry, or they can own an industry, but they can’t do both. It is a fundamental conflict of interest.<br> <br> <br> <br> And the reality is that, yes, the state is the collective will of the people, but it is naïve to imagine that doesn’t have an independent existence of itself. Yes, there are people there who have the best interests of the people at heart most of the time, also there are people who only think of their own interests, but also, the state, like any other institution has a collective sense of self-preservation and promoting its own interests.<br> <br> <br> <br> And if the state owns a huge chunk of the banking sector, it is inevitable that the desire to accrue profits from that ownership comes into conflict with regulating that sector, protecting the consumers, the public, who need its services.<br> <br> <br> <br> And it’s pretty clear which side is winning in that conflict.<br> <br> <br> <br> And it isn’t just the savers who are getting ripped off.<br> <br> <br> <br> So when you hear about the record profits of Irish banks, don’t imagine that it’s some sort of business acumen, some sort of talent at running an enterprise that is making those profits. They make those profits because they have us over a barrel....
