Category Archives: Economy
Broken Britain 3: ‘strong and stable government’: by the rich, for the rich, at the expense of the rest
Those who are ‘just about managing’ live in the only ‘big advanced economy’ in which wages contracted (2007-2015) while the economy expanded, the cost of living rose and multinational profits rocketed.
Pett lists the end goals which would benefit the 99% and the wreckers
As Eisenhower said, we need a humane government which would focus on the well-being of all, not the profits of the few and stop being complicit in slaughter . . .
and we should strengthen local/regional economies.
Close the global casino and the revolving door between big business and government
and offer all, especially superfluous managers and young commodity traders, socially beneficial work
An audience seriously considering the proposal
With thanks to the reader working in Uganda who sent the Hitchens link and remembering another who yesterday advocated ABC voting, ‘Anything But Conservative’.
Peter Hitchens insisted, some time ago, that a lot of people feel left out of the recovery we are supposed to be having, and they need a powerful voice in Parliament, adding:
“There is nothing good (or conservative) about low wages, insecure jobs and a mad housing market which offers nothing but cramped rooms and high rents to young families just when they need space, proper houses with gardens, and security . . .
“The truth is that both major parties have been taken over by the same cult, the Clinton-Blair fantasy that globalism, open borders and mass immigration will save the great nations of the West. It hasn’t worked. In the USA it has failed so badly that the infuriated, scorned, impoverished voters of Middle America are on the point of electing a fake-conservative yahoo businessman as President”.
Hitchens concludes that many Labour MPs have more in common with Mrs May than with Mr Corbyn and will ‘snuggle up beside her absurdly misnamed Conservative Party’.
He believes that the British public will at last see clearly that their only response is to form an alliance against the two big parties: “Impossible? Look how quickly this happened in Scotland”.
This Green House pamphlet with contributions from Molly Scott Cato MEP, Victor Anderson, Rupert Read, Jonathan Essex and Sara Parkin was written before the EU referendum and the economic and political turmoil which has followed but the authors believe its analysis and conclusions are still valid.
In her introduction, MEP Molly Scott Cato points out that a route to a more positive future offering hope to the majority of citizens is blocked by our archaic and unrepresentative electoral system which enables one party to control so much power with a minority of the votes cast. She continues:
“Our primary target is our electoral system. In the 2015 general election the Green Party received 1 million votes but only one parliamentary seat. By contrast the Scottish National Party received 1.5 million votes and 56 seats.
“This is the logic of first past the post . . . but as voters move into a multi-party future the system entrenches political stasis and blocks progressive change”. Later she cites Germany as the most striking example of a country that has benefited from Greens in power:
“Its industries are successful because Greens in government encouraged them to move into the new era of low carbon energy production before other European countries. Germany has turned its back on the nuclear age and is rapidly phasing out fossil fuels. Germany is the economy in Europe that is benefiting most from the energy transition that dangerous climate change requires of us. It is Greens in government who enabled this process”.
She, and other Green House members invite everyone who wants to see an alternative to continued Conservative government to join in the discussion about what that alternative can be.
“Labour is never going to be back on 44% in the opinion polls. The electorate is too fragmented for that, and above all Labour’s electoral base is too fractured for it ever to happen again”.
(Ed: we note that the British Labour Party is already one of the parties and organisations from over 90 countries which participate in the International Progressive Alliance network of social-democratic and progressive political parties.)
Gilbert continues: “Would you rather it happen now, while the Left retains the leadership of the party, or in five or ten years time, when the Right is back in control? Would you rather have a Progressive Alliance, or an alliance of revanchist Blairites, (May)ites and ‘Orange Book’ Liberal Democrats? Because if we do not seize the initiative now, then the latter is what we are going to get, soon enough. This is going to happen sooner or later”.
As tensions rise over North Korea, Steve Beauchampé writes in the Birmingham Press about the parallels between Britain and North Korea.
Generations of an elite have ruled this nation for as long as anyone can remember. Such is their power that if there is dissent it is effectively hidden from us, denied the oxygen of publicity. The Dear Leader and ministers live in numerous large, extravagantly furnished, decorative palaces, enjoying the trappings of vast wealth. Walk the streets of the capital and you will soon see monuments, statues and other references to the Dear Leader, their family and the country’s most heroic military endeavours adorning public squares, streets and buildings.
In recent years the country has taken an increasingly bellicose and belligerent tone, threatening to launch unprovoked attacks on other sovereign states, driving them back into the middle ages and forcing their governments from power in the process. it has been busy developing increasingly sophisticated long range missiles and a nuclear weapons capability designed to strike fear into its enemies and anyone else whom it perceives as a threat, vast military expenditure whilst rising numbers of the population survive in poverty, dependent on daily food handouts to eek out an existence
Its economy is increasingly kept afloat by the economic support of China. The modern high-rise residential blocks that have sprung up throughout the capital may give the impression of a modern, flourishing economy, but look closely and you will see that many are all but empty, whilst homelessness and a reliance on subsistence level housing grows.
Surveillance is at an historic high with spy cameras, and increasingly even microphones, installed in nearly all public places and with the state’s ability to track the population and follow their activities and conversations now at frighteningly sophisticated levels.
Tensions are rising across the border, where the neighbouring government has been pursuing a much more internationalist direction. Indeed, heightened divisions have been evident with most neighbouring countries since last summer, and talk of war with one of them over a territorial dispute briefly surfaced as recently as a fortnight ago.
Yes, welcome to Britain.
A reader from Bournville draws attention to an article by Jules Birch in Inside Housing, a weekly magazine for housing professionals. He focusses on a recent TV Panorama programme about the benefit cap that now leaves thousands of people with 50p a week towards their rent.
He noticed that roughly 95% of tweets with the hashtag #benefitcap (scroll down to April 7) were hostile to the people featured in the programme rather than the policy. The majority of people commenting on Twitter were seeing the undeserving individual instead: the stroppy single mother with a mobile phone and the couple with many children. He notes that exactly the same thing happened with Benefits Street, How to Get a Council House and a Dispatches documentary on the cap last month.
Part of the problem, he believes, lay with the way Panorama framed the issue. As Joe Halewood was quick to point out, the programme and its advance publicity seemed to assume that most people capped are unemployed and on Jobseeker’s Allowance, when in fact just 13% are.
The fact that the vast majority of people capped are either unable to work or not required to work was only raised tentatively halfway through the programme. Most of those capped are lone parents with young children who are not required to look for work, or people on Employment and Support Allowance who do not qualify for an exemption but are still not fit for work.
David Pipe explained the effects in a piece following the Dispatches documentary last month. 7,500 households across 370 local authority areas have lost their housing benefit and are now receiving just 50p a week to pay their rent. The cap leaves a nominal amount for housing benefit or Universal Credit once someone’s benefits total more than £20,000 (£23,000 in London). In effect it is imposed on top of the rest of the benefits system.
The latest budget highlighted cuts for the poorest 18-21-year-olds, who will no longer be entitled to help with their rent through Universal Credit from April 1.
For many, Discretionary Housing Payments (DHPs) are the only thing keeping them in their home and the effect over time will be rising rent arrears and evictions and allocations policies that make it less likely that people on benefits will get a tenancy in the first place. So where and how can the poorest people live? Even people in caravans are being capped, and what will the knock-on costs be in terms of homelessness and the impact on the children?
Meanwhile in Broken Britain, the May government continues the policies of its predecessors and makes decisions which seriously afflict the poorest and greatly benefit the richest: the arms traders, Big Pharma, the privatised utilities, large developers, car manufacturers, private health companies and expensive, inefficient outsourcers – Serco, G4s and Capita.
There was an outcry when the Chancellor Philip Hammond unveiled a National Insurance hike for self-employed workers in the Budget – now postponed. Some 4.6 million people, around 15% of the workforce, are now self-employed and data from the Office for National Statistics show that two thirds of new jobs in the UK created in recent years are down to self-employment.
Self employment, often insecure, low-paid, with no access to holidays, sick pay, maternity and paternity leave
Now sometimes known as ‘the precariat’, the self-employed, often work in service industries such as fast food, for security firms on temporary, even zero-hours contracts, or in the so-called ‘gig economy’. The precariat includes many workers who used to have skilled or semi-skilled but relatively well-paid and secure jobs, under-employed graduates, often working in insecure jobs requiring a much lower education level, migrant workers, and people from ethnic minority communities.
Well-informed readers explain that – as long as the self-employed have a contribution record established – they get the standard state retirement pension and older self-employed workers attaining pension age today have, in many cases, some pension accrued as employees for a number of years of their life which the present generation will not have. Benefits the self-employed cannot access relate to holidays, sick pay, maternity and paternity leave.
Earlier this month it was reported that Labour is to convene a summit to develop a new deal for self-employed workers and small businesses to develop Labour’s policy on self-employment. – recognising “that the world of work itself is changing”. John McDonnell, the shadow chancellor, said.
“The labour movement has risen to challenges like this in the past. It was born out of the struggle for decent pay and conditions when new technologies were ripping up existing ways of working . . . We need that same spirit and vision again. So I’ll be convening a summit next month of unions, the self-employed, and small businesses to develop Labour’s policy on self-employment”.
Some have been in the forefront, pressing for such action, including Pat Conaty, David Hookes and – for many years – Guy Standing. Pat writes: “The work of Professor Guy Standing at UCL SOAS and formerly at the ILO for 36 years on the Precariat Charter is superb”. See the links at the foot which include Standing’s 2011 Policy Network article.
Pat Conaty, Alex Bird and Philip Ross produced the Not Alone report that Co-operatives UK and the Wales Co-operative Centre have published with Unity Trust Bank – the trade union bank. It focusses on the needs of people in self-employment who face low income and social and economic insecurity – the ‘self-employed precariat’.
The executive summary records that there are now more self-employed workers than at any time since modern records began. Some 4.6 million people, around 15% of the workforce, are now self-employed and data from the Office for National Statistics show that two thirds of new jobs in the UK created in recent years are down to self-employment.
Many of the self-employed are among the lowest-paid workers in the country; their potential income is eroded by other costs such as agency fees and additional challenges relate to difficulties in not being paid on time and not having the right to a contract.
The report calls for the ‘cousins of the labour movement’ – co-operatives, trade unions and mutual organisations – to come together and help form cohesive institutions to unite the self-employed precariat, as illustrated in the model of a ‘solidarity economy’ partnership.
As Conaty says in correspondence: “God knows something has to be done for zero hour workers, growing ranks of exploited self-employed and those working all hours of the week in the gig economy to make ends meet”.
David Hookes: http://pcwww.liv.ac.uk/~dhookes/IWFA.pdf
In a recent post on this site, economist Martin Wolf (FT) was quoted, reminding readers of the words of Theresa May, the prime minister, in her speech to the Conservative party conference last year: “Our economy should work for everyone, but if your pay has stagnated for several years in a row and fixed items of spending keep going up, it doesn’t feel like it’s working for you.” She earnestly promised that this would change.
He continued: “Was Mrs May’s speech hypocritical? Yes”. (See MP Dawn Butler, 2nd paragraph)
In similar vein, Jenni Russell writes:
“The president’s actions are more important than his words, and they are a betrayal of his voters
“President Trump is brilliant at diversionary tactics, whether tweets, tantrums, or executive orders that may or may not mean anything in practical terms. His speech to Congress was another in his string of conjuror’s illusions.
“Breitbart and the Trump base adored it for its promises to put American workers first, improve their healthcare, incomes and education, cut their taxes, and protect them from danger abroad and immigrants at home. Trump’s liberal critics were momentarily dazzled to find that for at least an hour the president was capable of addressing the nation in a reasonable, conciliatory tone. But we now know that Trump’s public promises and assertions are so full of contradictions that they cannot be taken either literally or seriously.
“Instead we have to scrutinise the practical consequences of the policies his team is implementing. The effect of these won’t be to transform the lives of the people he swore to champion. They will make the rich much richer at the expense of the middle class and the poor”.
She notes that Trump’s tax plan is overwhelmingly skewed towards the wealthy:
- America’s Tax Policy Centre shows nearly half of the total tax cut will go to the top 1% of taxpayers.
- Almost a quarter will be spent on the richest 0.1%, households that earn above $3.7 million a year.
- The middle fifth of households, earning an average of $65,000, will gain just a thousand dollars.
- Less than 7% of the total cost of tax cuts will be spent on them.
- Because Trump intends to drop tax exemptions for children, some families earning less than $50,000 a year will actually see their taxes rise.
- The budgets for education, childcare and medical research will be slashed by at least 15% per cent.
- Trump proposes to end the state tax, which affects only the top 0.2 per cent of the population.
- His proposed cuts to corporation tax range from 35 to 20%
This surreptitious transfer cannot be what Trump supporters expected
Jenni continues: “Trump’s promise to create jobs through a vast infrastructure plan are equally tilted towards the rich. Investors will be offered tax breaks costing $137 billion to encourage them to invest a trillion dollars in projects that offer potential returns from fees or tolls. And far from bringing jobs to depressed regions, the projects will be skewed towards wealthier areas, because there will be no incentive to invest in areas where there’s no hope of a financial return, like the crumbling roads of the Appalachians”.
Still justified by demonstrably failed trickle down theory
Republicans defend this kind of unbalanced reward as they always have, arguing that the more money individuals keep, the more they will spend and the more everyone will benefit. These policies – in addition to the cuts Trump is demanding to pay for his boom in defence spending – will add huge sums to the deficit and drastically shrink the money available for public programmes. Jenni ends:
“Trump promised to protect his voters but the gulf between what he pledged and what he’s delivering is evident everywhere. His teams are busy dismantling consumer, financial and environmental regulations that prevented ordinary people being fleeced or having their land and water defiled. His supporters stubbornly believe in him but they are being betrayed. There can only be more fear and disillusion to come”.
Meanwhile Wall Street is soaring in anticipation, with the Dow Jones breaking the 21,000 barrier for the first time within hours of the speech. That extra money will overwhelmingly go into the bank accounts of those with the most shares – and the May government now turns from squeezing the disabled to the bereaved, successfully passing drastic cuts in payments for which national insurance contributions had been made and raising probate fees.
*Trumpton and Mayhem: first passing reference made on Our Birmingham website by architect David Heslop, moving towards employee ownership.
Edited extracts from an article by MP Dawn Butler, responding to a claim by Minister Liz Truss
Her message to Theresa May: you delivered a caring speech on the steps of 10 Downing Street, but it is clear that it was nothing more than rhetoric and spin. The few it governs for are certainly not the working class . . .
Rents have sky-rocketed to ridiculous levels, with my constituents, in the worst cases, spending 70% of their wages on rent alone, whilst drivers on modest incomes – who need their car to get to and from work – continue to face misery at the petrol pump. In Brent, we have two very busy foodbanks and several soup and bread kitchens. This 19th century scenario is the sad reality for the working class in 21st century Britain.
Wages for the majority of people have continued to fall in real terms, whilst those at the top have seen their salaries soar
Living conditions in the UK are now at their lowest levels for 60 years, with hundreds of thousands of families relying on food parcels just to get by. Our hospitals are in crisis, hate crime has rocketed and homelessness has doubled.
And to compound the struggle, this government has been cutting services, such as money for pupils, access to justice and policing
This means that when you are being discriminated against at work, you will be less likely to be able to take your employer to court. Tribunal cases have plummeted by 70%. To the government this number represents success, but to me, these are hard-working people who have had the rug pulled from underneath them when it comes to getting proper recompense for their grievances. These are the signs of a government destroying the working conditions and protections of those who need it most.
Nearly one million people are on zero hours contracts which means, from month to month, they are in a panic to know if they can pay their rent on time or at all.
This government is openly deceiving the general public by claiming to be something they’re so clearly not. Whether you call it “alt-facts” or “fake news”, if such untruths are peddled often enough, people soon start to believe it may be true.
Conservatives have tried to force the trade union bill through parliament to silence and, ultimately, destroy trade unions. Why would they want to do this unless they wanted also to destroy the voice of the working class and important workers’ rights? How about the workers’ rights bill? The Tories wouldn’t allow a discussion in parliament of a bill which sought to protect the rights of the working class after Brexit. Features like working 48 hour weeks, holiday pay and maternity and paternity rights are all at risk due to us leaving the EU. The government appear to be running roughshod over them.
Throughout our history in power we have championed the working man and woman in establishing great working class systems, from the NHS to the minimum wage, and all equality legislation, tenets that have now become the fibre that gives our country its unity, fairness and strength. We defended SME businesses, created through a movement of working class men women and trade unions, all with a common goal of helping the many and not just the few.
Dawn Butler is MP for Brent Central