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Lots of conjecture on what is behind the strikes, but not much in the way of solid evidence.

When people are outraged and fixate on the wrong cause for their anger the results are seldom good. In the most extreme cases we see genocide when an ethnic group is blamed for the ills of society.

In less extreme cases we see symbolic actions (such as rounding up law-abiding, employed, but "illegal" immigrants in the US and then suffering from labor shortages) which do more harm than good.

If civil unrest gets bad enough and force doesn't work (it hasn't been tried yet, but military escorts of essential commodities to cities seems a likely next step) then governments will throw some money at the protesters, or at least promise to do so.

It seems that most of the reasons posted for the protests point to small producers being in competition with big quasi-monopolies. Breaking up the monopolies would take too long and be doubtful anyway, putting in minimum prices for some services or commodities might be a short-term way to get the protesters back to work, but the bottom line still seems to be too many marginal producers with too little organizational power.

During the farm crisis of the 1870's in the US the railroads and grain mills put a squeeze on the growers. The result was the rise of the Populist movement and an attempt at political action aimed at breaking up the "trusts". It failed, but the ideas were now part of the public discourse and the effort succeeded under Teddy Roosevelt 35 years later. I don't think the truckers and fishermen are prepared to wait.

It would be wise if they formed some sort of political action group now to represent their interests. Since EU countries have more than the two parties of the US they might even be able to get some political power in the short term.

They seem to know the symptoms of the disease, but not the cause. A lack of what used to be called "political consciousness".

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Wed Jun 11th, 2008 at 04:30:44 PM EST
[ Parent ]
No evidence? Knock yourself out. We've said nothing to contradict the following.

"No estamos aquí por gusto" · ELPAÍS.com"We're not her for sport" - ElPais.com
LO QUE PIDE EL SECTOR EN HUELGAWHAT THE SECTOR ON STRIKE DEMANDS
- Las principales asociaciones empresariales que han convocado la huelga (Fenadismer y Confedetrans, representantes del 20% del sector) aseguran que no quieren "ayudas puntuales, sino medidas para que el sector pueda enfrentarse a la crisis".- The main business associations behind the strike (Fenadismer and Confedetrans, representing 20% of the sector) claim that they don't want "momentary measures, but measures for the sector to confront the crisis"
- Tarifa mínima. Las principales asociaciones convocantes aseguran que llevan meses trabajando por debajo de los costes. Piden que se establezca una tarifa mínima que obligue a todos a trabajar por un precio mínimo, y evitar así competencia desleal.- Minimal fee. The main associations [behind the strike] claim that they have been working below cost for months. They demand the establishment of a minimal fee requiring everyone to work of a minimal price and thus prevent unfair competition.
- Gasóleo profesional. Exigen un "verdadero gasóleo profesional", es decir, con impuestos reducidos, como el del transporte marítimo o aéreo.- Professional diesel. They demand a "true professional diese", that is, with reduced taxation like sea or air freight.
- Revisión de tarifas. Que sea obligatorio por Ley revisar las tarifas según las subidas del precio del petróleo.- Revision of fees. Legally mandated revision of fees to match oil price increases.
- Eliminación del céntimo sanitario. Que las comunidades autónomas que aplican este gravamen por litro de gasolina (de hasta 2,4 céntimos por litro) lo supriman. Se paga en la Comunidad de Madrid, Comunidad Valenciana, Cataluña, Asturias, Galicia y Castilla-La Mancha. Su recaudación se utiliza para financiar la sanidad.- Abolishing the "health care cent". That regional governments which apply this tax on fuel (up to €0.024 per litre) suppress it. It is paid in the Regions of Madrid, Valencia, Catalonia, Asturias and Galicia and Castilla-La Mancha. The revenue is used to fund health care.
- Medidas de reestructuración. Un paquete de medidas sociales, económicas y fiscales que "beneficien a autónomos y pymes del sector ante la actual situación de crisis económica".- Restructuring measures. A package of social, economic and fiscal measures "benefitting the self-employed and SMEs in the sector facing the current economic crisis"
- Los convocantes de la huelga consideran que las medidas presentadas por el Gobierno siguen sin garantizar que no se trabaje por debajo de costes.- The organizers of the strike believe that the measures presented by the Government still don't guarantee that there won't be work below costs.


When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Wed Jun 11th, 2008 at 04:45:20 PM EST
[ Parent ]
I take back my remark about lack of political consciousness. Now what they need is to figure out how to get their goals implemented in a hostile environment.

The canonical example of ineffective(?) action seems to be 1968 (1848?). Have activists learned anything since then? They certainly haven't in the US.

I don't want to sound like a social Darwinist, but subsidizing marginal producers is not a viable long-term strategy. It won't be effective and may even violate EU policies. If the real cause of price constraint is monopoly power then that's where the focus should be.

Of course when the cost of fish and transported food go up the riots will just shift to the supermarkets! (wink.)


Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Wed Jun 11th, 2008 at 05:08:05 PM EST
[ Parent ]
Now we're getting somewhere
subsidizing marginal producers is not a viable long-term strategy. It won't be effective
I did some research in 2004 about the failure of Spain's subsidies to coal mining and ship building. I should dig them up. That research convinced me that any money spent on direct subsidies is best spent on helping people switch to other areas of economic activity.
and may even violate EU policies.
I have posted in another comment a translation of a summary of the Spanish government's policy proposal. The truckers' demand for a "true professional diesel" (with different taxation) has been met by a promise to "push it at the EU", presumably (my best guess here) because it violates EU rules on State aid. If I remember correctly, there was some proposal by Sarkozy recently to eliminate VAT from fuel or something like that and it had to be done at EU level
If the real cause of price constraint is monopoly power then that's where the focus should be.
When the British hauliers protested last week it was pointed out that the reason they couldn't charge more was that supermarkets were using their monopsony power to squeeze the truckers' margins. In Spain it does appear as if a few companies representing 80% of the drivers are using their oligopoly position to squeeze the independent drivers. Definitely in both cases there's a case for the competition authorities to look into the matter. The Spanish government has promised to do that (see the same comment I referred to above).
Of course when the cost of fish and transported food go up the riots will just shift to the supermarkets! (wink.)
Nobody's disputing that things are going to get more expensive. Now the question is how to help people on low incomes who may get squeezed out of buying food.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Wed Jun 11th, 2008 at 05:20:19 PM EST
[ Parent ]

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