THE capitalist economy creates the situation in Wales — and every other country where it is dominant — in which significant numbers people within our society are condemned to live in poverty and deprivation.

For centuries now, capitalism has deliberately maintained a pool of impoverished unemployed people to act as a threat to working people, driving down wages through a false competition for jobs.

It is clear to those right across the political spectrum that the current system of universal credit, personal independence payments, the sanctions regime and discriminatory housing support are inhumane and unworkable.

Analysis undertaken by Landman Economics and Aubergine Analysis on behalf of the Equality and Human Rights Commission (EHRC), which was published in March 2018, summarises findings on the cumulative impact of British government tax and welfare reforms announced between May 2010 and January 2018 (and also includes the impact of the national living wage) on Wales.

The analysis concluded that “overall, these changes are regressive, with the largest impacts being felt by people on the lowest incomes.

“Households with children are estimated to experience much larger losses than households without children. This is especially the case for lone parents in Wales who lose around £3,720 a year on average, and also large families.

“Those families with three or more children in Wales lose around £4,110 a year on average. Relative child poverty in Wales is estimated to increase substantially, with the reforms pushing an extra 50,000 children into poverty by the time they are fully implemented.”

There is also a disproportionately negative impact on the incomes of several protected groups, including disabled people, certain ethnic groups and women — and particularly negative impacts on groups who experience multiple disadvantages (for example lone parents with disabled children).

The root of capitalist exploitation is of course in the workplace. In July 2019, Welsh First Minister Mark Drakeford committed the Welsh government to legislate to make Wales a “fair work nation” during its term of office, which means within the next two years.

This is set to involve implementing the key recommendations of the report, including: drawing up and implementing a strategy which promotes trade unionism and collective bargaining and working with unions, civil society organisations and employers to support and enhance the role of Britain-wide enforcement agencies in such matters as low pay, equality at work, trade union rights and health and safety.

The Welsh government’s commitment to fair work should be welcomed as a progressive advance which now needs to be turned into concrete action. However, major advances are required on two other fronts in order to transform the position in Wales as far as trade unionism, collective bargaining, low pay and fairness at work are concerned.

The first is the election of a left government at British level, with the powers and resources to implement the Charter for Workers’ Rights and restore the value of wages and pensions. The second lies in workers own hands as they engage in struggle to win, implement and extend these new rights on the ground.

While there are competing voices within Wales that condemn the tory cuts, the only viable option for immediate change is clear. The mass of the people of Wales would benefit from the policies of a left-led government at Westminster.

Labour’s manifesto pledged to boost state-led investment in productive industry, new technology, renewable energy and public services; to take railways and other vital sectors into public ownership; end austerity and privatisation; redistribute wealth; tax the super-rich and tackle tax avoidance; build more council and social housing; enhance workers’ and trade union rights; reduce military spending; extend support for small business and reform VAT, etc.

Make no mistake. the people of Wales deserve a vast extension of democracy. Much greater powers for politicians elected in Wales over the affairs of Wales.

A new “needs-based” fair funding settlement and enhanced power for the Welsh government to intervene directly in the economy. It is essential for Wales and the planet that we recognise the climate emergency and directly implement profound and wide-ranging measures to reduce carbon and combat climate change. But none of this will be possible under a Tory government at Westminster.

There are only two possible victors in this general election race. Clearly, the chances of Labour winning will be greatly reduced by any significant rise in the votes for the Lib Dems, Greens, SNP and Plaid Cymru. Yet the election of a majority left-led Labour government, combined with the growth of a powerful, militant extraparliamentary movement, could begin to transform political, economic and social conditions in Wales and Britain.

The only alternative will be a Tory or Tory-led coalition continuing the policies of austerity, attacking trade unions, privatisation and militarism. On the basis of this perspective, the attempts to build an anti-Brexit, anti-Labour electoral alliance in Wales and elsewhere are mistaken and reactionary.

There is only one path forward in Wales. The path that can be forged in partnership with a left-led Labour administration in Westminster.

David Morgan is a member of the Welsh committee of the Communist Party.