Category Archives: Poverty
In the Financial Times, noting that Conservatives and Labour are ‘neck and neck’ in the polls, Jim Pickard – formerly a severe critic of Jeremy Corbyn – wrote today “With British politics in a state of acute flux, there is increasing interest from business leaders about Labour’s policy proposals”.
At the launch of the annual Living Standards Audit by the Resolution Foundation, an independent think-tank that focuses on low pay, the Independent reports that shadow chancellor John McDonnell (right) will announce details of Labour’s commitment to ending in-work poverty over the course of the next parliament, due to cover the years 2022-27 unless brought forward by a snap election.
The Joseph Rowntree Foundation said last year that ‘in-work poverty is the problem of our times’ and McDonnell will make a commitment to ending this modern-day scourge, eliminating it by the end of Labour’s first full Parliamentary term.
In September it was reported here that the Financial Times appeared to have left the anti-Corbyn/McDonnell media caucus, somewhat warming to the shadow chancellor. Following Jim Pickard’s first respectful report on any aspect of Labour policy, an article, by Jim O’Neill, chair of the Chatham House think-tank and former Treasury minister, had the headline, “The UK opposition steps into an economic void left by a government grappling with Brexit”.
The second sign was the FT’s comment in a December article that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”.
As a paragraph in his address today says: “As Chancellor in the next Labour Government, I want you to judge me by how much we reduce poverty and how much we create a more equal society, by how much people’s lives change for the better. Because that is our number one goal.”
“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