Labour didn’t fundamentally reform capitalism. Instead, capitalism reshaped Labour, gradually pulling it away from egalitarian ideals toward embracing profit-driven policies and business-friendly governance.

Originally formed in 1906 as a trade union pressure group in parliament, in 1918 the Labour Party adopted as its long-term aim a nationalised economy. This, together with a redistribution of wealth to create a less unequal society, was to be achieved gradually by measures taken by a succession of Labour governments.

This strategy — Labourism — failed, and how! Instead of Labour gradually changing capitalism, it was capitalism that gradually changed Labour. Learning from the experience of being in government, that the only way capitalism can run is as an economic system driven by profit-making and that this has to be given priority, Labour gradually evolved from an alleged labour party into an avowed capitalist party.

Here is how it happened.

Taken from the September 2025 edition of The Socialist Standard.

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