Category Archives: Inequality
“The savage rules of the almighty Market have created the conditions that are speeding us to destruction”: Paul Halas
Paul Halas: “As we approach the 2020s there’s a growing awareness that we need change and we need change now. Running the country according to the savage rules of the almighty Market has created the conditions that are speeding us to destruction”.
In the Western Daily Press (26th April) Paul describes the Conservatives’ genius in persuading millions of long-suffering voters that the national economy operates like a household, so in order for the nation to “live within its means” we all have to tighten our belts.
But this concept – invented by Margaret Thatcher’s think tanks – was directed only at the 99% who always “suffer the destructive effects of austerity” as Halas points out.
The cuts to health, education, transport, disability benefits and other sectors go un-noticed by the I% who can afford to opt out of these systems – symbolised here by one of her ministers.
The household economics concept, Halas continues, ”echoed by every administration since . . . (is) easy to understand yet utterly meretricious”.
He refers us to sources such as the Office for Budget Responsibility, so the writer obediently found the latest report, which certainly did not confirm “the impression that everything in the garden is rosy”. Tax receipts have risen, but there is no indication that “lashings of money are flowing into the Treasury” as had been stated in the same column on 23rd April.
OBR: damned with faint praise?
- The economy ended 2018 growing a little less strongly than we expected in October. In recent weeks survey indicators of current activity have weakened materially, in part reflecting heightened uncertainty related to Brexit.
- The Government’s stated ‘fiscal objective’ is to balance the budget by 2025-26 and past forecast performance suggests that it now has a 40% chance of doing so by the end of our forecast in 2023-24.
- One risk to the public finance metrics that we do expect to crystallise over the coming months is an improvement in the accounting treatment of student loans . . . we estimate that it could increase the structural budget deficit by around £12 billion or 0.5 per cent of GDP in 2020-21.
- Net trade and private investment were markedly weaker than expected, weighed down by a slowing global economy and Brexit-related uncertainty. Business investment has fallen for four consecutive quarters – its longest continuous decline since the financial crisis.
Halas expands on tax issues and the misdirected quantitative easing adventure:
Although the prime function of tax is to regulate the economy and keep inflation under control, the failure of many of the richest individuals and corporations to pay their dues, thanks to absurdly flabby fiscal legislation, has helped fuel the UK’s runaway inequality and damaged society immeasurably.
It is estimated that 80% of new money created (by the government, via the banks) ends up into the coffers of the financial institutions and their clients, rather than funding investment and welfare as it should.
And ends: “The only sustainable way forward is to invest massively in greener forms of energy and greener transport, to create a greener infrastructure and a greener environment. This won’t be possible without a vast reduction in inequality, more public ownership, more localism, and a far more cooperative approach to economics – all policies the Labour Party is adopting. All those with vested interests will doubtless raise a billion objections, but the consequences of keeping our heads in the sand and trusting the Tories to come up with solutions would be catastrophic”.
Richard House draws attention to a letter by Ruth Steigman published in the Independent this week. She writes
In the 2017 general election, Labour gained 40% of the vote, and the largest increase in its share of the vote since the 1945 general election.
Jeremy Corbyn, who started the campaign 20 points behind in the polls, achieved this result following two years of attacks from all sides, and, in the words of the BBC, “in the face of a brutal onslaught from the print media”.
He had, again in the BBC’s words, “changed British politics” and “showed, amazingly, that Labour did not have to move to the centre to win votes but could do so from the unashamed left”.
Does this totally unexpected result explain the extraordinary escalation in the onslaught from the BBC and other establishment institutions since then?
Do the countless absurd smears stem from the fact that Jeremy Corbyn and his policies are now seen as a clear threat to the establishment in this country?
The Labour MPs opposing him see their power base in the party, established over the past 30 years, under attack, but know that with half a million party members behind him, a further challenge to his leadership would fail.
They do not understand that the era of submission to Thatcherite policies is over.
Anyone standing outside a polling station in May 2017 could see what these Labour MPs cannot: instead of the usual trickle of elderly voters, large groups of enthusiastic and optimistic young people turned out to demonstrate that they were not fooled by many of the unfounded smears of antisemitism, espionage etc, and that they understood the Labour leader was under attack from all sides because he stood outside the establishment, and because his policies threatened the political dogma that had prevailed since Margaret Thatcher won power 40 years ago.
Those who hold power naturally want the status quo to continue untroubled: power never cedes without a fight. But the people are eager for change, and want a government that serves the public, not powerful vested interests.
Jeremy Corbyn’s policies articulate their anger at the failed privatisations of public services, and widespread deregulation. Ordinary Labour Party members want MPs who will not undermine the party’s democratic processes, or sabotage their efforts to achieve a Labour government.
A Labour MP from the left of the party brought us our most treasured institution, the NHS.
Now that the country is suffering in every sphere under Tory austerity – from poverty to knife crime to slum housing – Labour has the policies to prove the BBC correct in their assessment that British politics has indeed changed, and moved, with the Labour Party, to the left.
This prompt led to the discovery of Ms Steigman’s signature below the following testimony in the Islington Tribune
2nd August: already has over 55,000 ‘views’; go to https://twitter.com/jeremycorbyn
Ten slides, ends:
Who is to blame for Labour’s current problems? Not Jeremy Corbyn, but selfish, self-indulgent right-wing New Labour MPs refusing to do their handsomely paid jobs and continually undermining him – fuelling the flagrant press and TV who are biassed against him, serving a privileged Establishment terrified at the prospect of a Corbyn victory putting an end to their greedy, tax-evading ways.
Blair and right-wing Labour MPs ‘took over’ the party’ in the 1990s, eventually rendering it indistinguishable from the Tories. Labour lost five million core voters – a major reason for the 2010 and 2015 defeats.
Corbyn in York, May 2017
Many are now returning to Labour as they see Corbyn bringing Labour back to the Party’s original values, in a forward-looking way. Corbyn has attracted at least 350,000 new members, which at approaching 600,000 makes Labour Europe’s largest political party.
He has inspired many people, young and old – people with no previous interest in politics, to whom he relates, unlike previous Labour leaders. All are far more likely to vote for a Corbyn-led party.
Non-voters, mostly the poorest in our society, felt the previous Labour Party would be of no help to them. Corbyn is determined that everyone should have a better life.
In Corbyn’s first nine months as leader, Labour provided strong and effective opposition, forcing numerous embarrassing U-turns, defeating the Tories at least 22 times and preventing some of their worst excesses.
A Corbyn-led Labour Party represents ordinary people, ‘the many’, the 99% and won’t give tax breaks to multi-millionaires whilst children go hungry and ever-more working people have to resort to food banks.
Wanda urges all to get behind him with all the support we can muster, to help this good man deliver his vision for a better, kinder, fairer and more equal society, where everyone has the opportunity to thrive.
Labour leadership candidate Jeremy Corbyn outside the Tyne Theatre and Opera House, Newcastle
In August 2015, the undersigned wrote:
“This is a moment of opportunity for the Labour party and the country.
“A new movement is emerging in British politics; party membership is growing rapidly, particularly among young people who had increasingly given up on politics and politicians.
“There is a possibility that academics who have always felt that their research – whether on social policy, public health, economics, sociology or other disciplines – was ignored by policymakers may now be more in tune with the leadership of the Labour party.
“And rather than a backward-looking “old Labour” approach to politics, this is about recognising the inspiring possibilities for a fairer and more equal society offered by an information economy in an interdependent world.
“We endorse Jeremy Corbyn’s candidature for leadership of the Labour party”.
Richard Wilkinson Emeritus professor, University of Nottingham
Kate Pickett Professor, University of York
Steve Keen Professor, Kingston University
Elizabeth Dore Emeritus professor, University of Southampton
John Weeks Emeritus professor, Soas, University of London
Prem Sikka Professor, University of Essex
Alfredo Saad Filho Professor, Soas, University of London
Guy Standing Professor, Soas, University of London
Ozlem Onaran Professor, University of Greenwich
Christopher Cramer Professor, Soas, University of London
Jeff Powell Senior lecturer, University of Greenwich
Christine Cooper Professor, University of Strathclyde
Lawrence King Professor, University of Cambridge
Marjorie Mayo Emeritus professor, Goldsmiths, University of London
Hugo Radice Life fellow, University of Leeds
Susan Newman Senior lecturer, University of the West of England
Elizabeth Wilson Professor emeritus, London Metropolitan University
Malcolm Sawyer Emeritus professor, University of Leeds
Jo Michell Senior lecturer, University of the West of England
Susan Himmelweit Emeritus professor, Open University
Simon Mohun Emeritus professor, Queen Mary, University of London
Diane Reay Professor, University of Cambridge
Andrew Cumbers Professor, Glasgow University
Simon Deakin Professor, University of Cambridge
Roger Seifert Professor, University of Wolverhampton
George Irvin Professor, Soas, University of London
Engelbert Stockhammer Professor of economics, Kingston University
And thoughtful contributions from readers:
Whoever wins the Labour leadership must not disappoint the thousands of party members, affiliates and supporters who have been energised and motivated by the election debate. There is a hunger for change within the party not just for a new vision for the future of the country but for a transformation of the way the party is organised and connects with its members and the electorate. The new leader should re-establish democracy within the party and build trust between members and the PLP. The party is strong when it operates as a community that shares ideas and builds policy from the ground up based on a full understanding of the issues that face all sections of society. There has never been a better opportunity to tap into the energy of new members and supporters and build a strong and successful political force. A leader who reverts back to the top-down focus group-tested soundbite politics of the Blair years will quickly find that the support they had will disappear and supporters will lose faith in politics.
There are two crucial points that your editorial (14 August) ignores. First, Jeremy Corbyn will prove to be an extremely popular and effective opponent of a government that most voters opposed. People will respect his straightforward, honest and principled exposure of Tory policies in practice. Second, unlike anyone who’s had power in the Labour party since Tony Blair, Corbyn is a true democrat. He’s not going to impose his policies on anyone. For the first time in decades members will be able to propose, debate, challenge and refine the party’s policies. And of course, “Events, dear boy, events” will play a major role in what transpires. If Corbyn can lead this collaboration of MPs and members, and withstand the onslaught from the media and from within the party, and if he still wants to be prime minister in 2020, the party will have strong policies and be electable. If he decides he shouldn’t be PM, another leader will emerge with policies that have been forged in the furnace of democratic debate by the membership. A better prospect, either way, than certain failure under any of the other three (unelectable) candidates.
With Blair and the rest of the Labour establishment yet again urging the membership to play catch up with the Tories, is it any wonder that members are flocking to support Jeremy Corbyn? At long, long last, they are being offered a real choice.
Vice-chair, Labour CND
Polls show that most UK voters reject Trident, not just in Scotland. Corbyn is the only leadership candidate to represent this majority view. As Labour leader, Corbyn’s firm anti-Trident stance would win support in Scotland – and in the rest of the country too. He can promise voters to scrap Trident and spend the £100bn on reversing some of the cuts. He’d be backed by the TUC, Unison and many other unions who oppose Trident. Corbyn represents the public’s view on Trident, just as he stood with the public on Iraq. Corbyn has the policies and qualities to win a general election.
The critics of Jeremy Corbyn in the Labour leadership election and, now, the Guardian (8 August), have argued that a leftwing programme, when Michael Foot was leader, led Labour in 1983 to “its worst result since universal franchise”. This is totally false.
In January 1981 Labour under Michael Foot was 13% ahead in the opinion polls and it was the launch of the Social Democratic party on 27 March 1981 by Roy Jenkins and three colleagues, followed by desertion by a section of rightwing Labour MPs, which destroyed Labour’s electoral lead. The behaviour of the left may not always have been faultless, but it was the disloyalty of a section of the right which was primarily responsible for our heavy defeat in 1983.
As for Gerald Kaufman’s smear at the 1983 Labour manifesto as “the longest suicide note in history”, it might be apposite for the critics to read it. It proposed “much closer control over bank lending” through the then publicly owned Bank of England, the need for which stood out in the 2008 crisis. It also proposed a plan to boost industry, improve training, enhance women’s rights, tackle the housing crisis and the balance of payments problem etc, etc. Was this wrong?
As one who lost my seat in the House of Commons in 1983, I am well attuned to the facts. If Jeremy is elected leader, as I hope, the lesson to be learned from the 1980s is that all sections of the Labour party should support him in that role.
Branch secretary of Bassa 1998-2012, Southampton
Labour supporting friends are perplexed why I should be voting for Jeremy Corbyn. Yes, it is conceivably true that “annihilation” could happen, but is the Labour party of today worth saving?
Just over five years ago I was one of the leaders of the British Airways cabin crew union (Bassa) which fought a truly bitter dispute with our employer. We were not seeking more money or better terms, just trying to hold on to certain conditions that made our jobs worthwhile. Under the leadership of Willie Walsh, strikers were sacked by BA (myself included, after 35 years), suspended and stripped of promotion. I was interviewed under caution by Heathrow police. It was a very foreboding time to lead a union in a dispute with a blue-chip company.
Against this backdrop, the usual suspects in the media blackened the reputations of union representatives, with lurid and exaggerated front-page stories to ensure, publicly, we had very few friends. It was a lonely place. There was also the 2010 general election looming, when you would have expected, or at least hoped, Labour leaders to keep a low profile, but far from it. In the days leading up to the first batch of strikes (which had been called on an 92% majority, with a massive turnout), I sat in the office of Tony Woodley, then leader of Unite, as he fielded – and to his credit rejected – a series of increasingly desperate phone calls from Labour to call off the dispute.
Perhaps naively, I was shocked at what the Labour party had become. So intent on middle-road power that they would even step on, or over, the very people they were created to protect and represent. There were a few Labour MPs who actively supported us, including, not surprisingly, John McDonnell and yes, Jeremy Corbyn. I will now gladly reciprocate that support given to us in our moment of need.
Do I care if the leader’s election destroys what the Labour party stands for in 2015, in its moribund, forgotten-its-roots, middle-ground-hugging persona? No, not any more. I backed Kinnock when he cleansed the party of its militancy, I supported Blair in those heady days of the late 90s, but any semblance of a decent, caring honourable party that caters for the underprivileged, has long been swallowed up by the unseemly, even sickening quest for power, irrespective of who gets trampled underfoot, on the way.
Three of many reasons for Jeremy Corbyn’s popularity:
- his care for the ‘ordinary person’,
- his ‘sufficient’ lifestyle
- and his freedom from the greed which leads many in the political landscape to ‘milk’ the system and promote decisions needed by moneyed interests.
It was retweeted by a friend and Greg Foxsmith neatly summarises: “Grayling is an MP who purports to want to cut public expenditure. However, when it comes to his own public expenditure, Chris likes to get as much of it as he can”.
Foxsmith refers readers to the Telegraph for more information. Grayling’s record on cutting access to legal aid and lack of concern about prison suicides adds charges of inhumane conduct to those of greed.
Apart from passing through the revolving door to industry and then returning to aid government’s decision-making process, civil servants feature in the news less frequently than MPs.
Award-winning investigative journalist David Hencke recently re-published information about top bonuses and pay rises for five of the most senior and well paid civil servants at the Department of Work and Pensions over the last two years, which appears in the annual report and accounts of the DWP released last month. Sir Robert Devereux, permanent secretary at the Department of Work and Pensions; Neil Couling, director general of universal credit; Jeremy Moore, director of strategy; Mayank Prakash, director general of digital technology and Andrew Rhodes, director of operations are all responsible in one way or another for the delivery of Universal Credit.
All but Andrew Rhodes are paid more than Theresa May, the PM, but are, nevertheless, receiving bonuses
This, even though their new Universal Credit programme is said to be in chaos – leaving some claimants without money for up to six weeks. MP Kevan Jones (Durham North) has described the bonuses of £10-20,000 as “a reward for failure”, based on its performance in the Newcastle-upon-Tyne pilot project.
Hencke ends, “What this shows to me is a growing disconnect between the people at the top – who are computer savvy, have nice centrally heated homes, no problems with bills, can afford expensive holidays, and can’t conceive of anyone not having a passport – designing a system for poor, dispossessed, desperate people without any understanding of how the world works for them.
“It was this disconnect between the elite and the poor in the USA that led to the rise of Donald Trump and I suspect this huge gulf between the Metropolitan elite (of which top Whitehall civil servants are part) and the provincial poor, is in the end going to propel Jeremy Corbyn into Downing Street”.
Many see the need for more MPs who have lived for the public good, even using their basic salaries to do this (such as former Coventry MP Dave Nellist). Ideally numbers would increase to such an extent that they will be able to transform the country. A beginning? Four MPs (three Labour and one Conservative) resigned from the advisory board at the University of Bath in protest against its vice-chancellor’s £451,000 pay package.
Britain’s next Prime Minister could be a 70-year old former winner of Beard of the Year who’s become a hit with young voters. Steve Beauchampé assesses Jeremy Corbyn’s chances.
My only surprise is that anyone was surprised. From the moment Jeremy Corbyn received sufficient nominations to qualify as a candidate in the Labour Party leadership contest, it was clear that here was someone who could articulate and represent the opinions of a considerable number of left leaning voters, both within the Labour Party and without. After two decades of Blairites, Blair lites and the worthy but unelectable Ed Milliband, Labour voters were being offered the choice of more Blair/Brown in the form of either Yvette Cooper or the unspeakably vapid Liz Kendall (strategy: ‘the Tories won the last two elections, so let’s adopt policies that are indistinguishable from theirs’) or decent, honest and likeable Andy Burnham, a slightly more radical version of Ed Milliband but without the geeky visage and voice.
That Corbyn has forged a sizeable and potentially decisive lead over his rivals under Labour’s new ‘one member one vote’ electoral system has caused a mixture of consternation and outrage amongst many of the party’s grandees (most of whom are backing either Cooper or Kendall) and demonstrates how disconnected with a large section of potential Labour voters they have become (the more so with opinion polls placing Burnham second). Meanwhile Corbyn, demonised and subjected to vitriolic attacks by some within his own party, and inaccurately dismissed as a 1980s throwback from the hard left of the political spectrum by Tories and most sections of the media, has fended off both the criticism and caricatures with ease, as befits a man with decades of experience of being outwith the political zeitgeist.
However, following several weeks of lazy, ignorant mis-characterisation of him across the press (not least by the BBC), a realisation finally seems to be dawning amongst the more thoughtful political commentators and scribes that Jeremy Corbyn is no joke candidate, no passing fad, but is instead a serious politician, and one with an agenda appealing to many voters previously disengaged from party politics. No cartoon firebrand Marxist he but a man of conviction and humility with a track record of being on the right side of the argument years before those in the ‘mainstream’ adopted the policies he espoused (Corbyn opposed Britain’s arming of Saddam Hussein in the late 1980s, supported Nelson Mandela and the ANC when the British Government was helping South Africa’s apartheid regime, held talks with the IRA nearly a decade or more before the Major and Blair governments did likewise, campaigned for gay rights when it was unfashionable to do so and voted against the invasion of Iraq in 2003).
And just as in Scotland, where the rise of the SNP, under the charismatic leaderships of first Alec Salmond and now Nicola Sturgeon, have helped invigorate politics, particularly amongst the young, so Corbyn’s leadership hustings have been passionate and at times electrifying affairs, populated by a sizeable number of youthful voters. A victory for Corbyn on September 12th could energise and transform British politics, providing a narrative with which a substantial number of the electorate – many of whom currently feel disenfranchised and perhaps don’t even bother to vote – can feel comfortable and might coalesce around. Because, with every media appearance, every public speaking engagement, all but the most politically jaundiced can see that Jeremy Corbyn is at least a man of integrity, putting an argument that has long been absent from mainstream British politics. Agree with him or not, but here is a politician to be respected and reckoned with, who is shifting the terms of the debate.
Thus those in the Conservative Party and its media cheerleaders who view a Corbyn victory as almost a guarantee of a third term in office may be in for a shock. Because, whilst the opprobrium directed at Corbyn from his opponents both outside and inside the Labour Party will only intensify if he becomes Labour leader, with a coherent and plausible genuine alternative to the Cameron/Osborne ideology and its attendant relentless tacking to the right of what constitutes the political centre ground, the Conservative’s agenda will be thrown into sharper definition in a way that a Labour Party offering merely a less extreme alternative to the Tories never can.
So could Jeremy Corbyn win a general election for Labour and become Prime Minister? Well, despite his current sizeable lead in opinion polls Corbyn’s campaign could be scuppered by Labour’s second preference voting system, whereby the second choices of the lowest ranked candidate (who drops out) are added to the cumulative totals of those remaining, this procedure being repeated until one candidate has over half of the votes cast, a system expected to benefit Burnham or Cooper the most.
If Corbyn can overcome that hurdle, and any subsequent move to oust him from the New Labour wing of the party, then don’t write Jeremy Corbyn off for Prime Minister. Few of life’s earthquake moments are ever foretold and by May 2020 who knows how bloodied and riven the Conservatives might be following the forthcoming EU referendum. Public appetite for the Tories and in particular George Osborne might have waned after two terms and ten years (and barely a quarter of the eligible electorate voted for them in 2015), with the Conservatives needing only to lose eight seats for there to be hung parliament. So a Corbyn prime ministership is not out of the question.
Perhaps the most likely – and intriguing – scenario to that coming to pass would be a coalition between a Corbyn-led Labour, the Liberal Democrats under the auspices of social democrat leftie Tim Farron, the SNP, Plaid Cymru and the Greens. Now that really would scare the Daily Mail readers!
August 5th 2015
Jeremy Corbyn’s policies include:
Re-introduction of a top rate 50% income tax
Tighter regulation of banks and the financial sector to prevent a repeat of the 2008 financial crisis (George Osborne is currently proposing to loosen these controls)
Substantial increase in the number of affordable homes being built
Re-introduction of rent controls to reduce the amount the state pays to private landlords
Support for Britain’s manufacturers rather than the financial services sector
The establishment of a National Investment Bank to pay for major public infrastructure programmes such as house building, improved rail, renewable energy projects and super fast broadband
The minimum wage to apply to apprentices
Removing all elements of privatisation from the NHS
Taking the railways, gas, water and electricity back into public ownership
Bringing Free Schools and Academies under the direct control of local authorities
Budget deficit reduction, but at a slower rate than that currently proposed
Scrapping Britain’s independent nuclear deterrent (Trident)
Support for significant devolution of power from London and opposition to unless voted for in a referendum
An elected second chamber
On the EU referendum, Corbyn has said that he is likely to vote to stay in, and then fight for change from inside.
Inside story: Corbyn’s campaign – the political shock of a generation
With thanks to the reader who sent this link.
Corbyn counters proposals which would mean marooned older people with lower incomes, spending more on heating
Today the Times reports that Jeremy Corbyn will reaffirm his party’s commitment to the concessionary travel scheme on his tour of marginal seats in Scotland.
The SNP has confirmed plans to raise the age at which Scots become eligible from 60 so that only those eligible for a state pension have a free pass – which is fine for those still employed . . . Ministers say it would protect the long-term viability of the scheme, which costs taxpayers £192 million a year.
Mr Corbyn plans to meet pensioners in Fife today and is expected to say: “Labour will protect pensioner incomes, by legislating to keep the triple lock, protecting the pensions of over one million Scottish pensioners . . . We’ll protect benefits like the free bus pass and the winter fuel allowance.”
An octogenarian reader who has an income slightly above the national average wage and uses only public transport, comments that her life would be adversely affected. As bus fares are so high she would limit journeys to two a week.
Millions of pensioners on lower incomes would be marooned in their locality most of the time – a locality which might or might not meet everyday needs as cuts close post offices and libraries.
How can affluent Conservative politicians (above, MP Kenneth Clarke) even contemplate such inhumane measures, whilst increasing capital gains and corporation tax relief to the affluent?