Another Angry Voice on Why Tory Economic Policy Wants 2 Million People to be Unemployed

The Angry Yorkshireman once again demonstrates his excellent and profound knowledge of economic theory in this discussion of the Neo-Liberal attitude towards unemployment. Far from wishing to end it, Milton Friedman’s Chicago School actually wishes there to be a constant pool of around two million people. The article’s entitled ‘Equilibrium Unemployment and Tory Malice’ and begins

‘That many people would try to dismiss the idea that “capitalism needs a standing army of unemployed” as some kind of Marxist, anti-capitalist, loony-left conspiracy theory, is indicative of the level of widespread economic illiteracy these days.

The fact is, that under the current neoliberalism riddled economic system, these vast standing armies of unemployed do exist, and what is more, the ruling establishment believe them necessary in order for their pseudo-economic models to work properly (which they clearly don’t anyway). The term they like to use to describe their “standing army of unemployment” is the “equilibrium rate” of unemployment, which is credited to the ideological guru of Chicago school neoliberalism, Milton Friedman.’

More shockingly, the supposed economic need for this pool of unemployed workers is accepted and promoted by the Bank of England. The Irate Northerner states notes that according to the Old Lady of Threadneedle Street, optimal unemployment should be about 6.5 – 7 per cent.

The Angry One then makes the obvious point that if the economic theory demands that two million people should be unemployed, then this makes the various schemes that penalise them for being so nonsensical. The administrations and government ministers behind them are, in the Yorkshireman’s bluff and forthright description of them, complete ‘gits’. He also notes that once the economic theory demands that a high number of people should be unemployed, it therefore makes sense for the Tories to use them as cheap labour for their friends in business.

I have to say I found it absolutely shocking that any economic theory should actually promote unemployment. Yet this is what the Chicago School Neo-Liberalism now beloved of the three main parties does. This article should be read by everyone interested in the problems of unemployment. Moreover, it completely refutes the idea that the Tories actually want to bring it down. They don’t. They want to maintain or increase it. The article’s at http://anotherangryvoice.blogspot.co.uk/2013/09/equilibrium-unemployment.html#disqus_thread.

I have to say, that I believe the current Tory campaigns to vilify the unemployed as scroungers, sponging of the state responsible for their own inability to find a job is not simply gittery. It’s demanded by the sheer need for the Tories to stay in government. Few people are actually going to vote for a party, which explicitly intends to maintain or increase unemployment. So, in order for the economic policy to work, the government has to create a ‘false consciousness’ in Marx’s phrase amongst the workers that unemployment is somehow their fault, and all they have to do is work harder, in order to justify their exploitation.

The Angry One has written a number of great articles dissecting Neo-Liberal economic theory. This is one of them. Rember, if you vote Tory after reading this, you will be voting for people who actively want the people of this country to be unemployed.

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5 Responses to “Another Angry Voice on Why Tory Economic Policy Wants 2 Million People to be Unemployed”

  1. Mike Sivier Says:

    Reblogged this on Vox Political.

  2. chibipaul Says:

    Have been saying this for the last three and a half years
    Glad someone has backed it up
    Especially the point about penalising and stigmatising those kept unemployed by government policy as I have had plenty of arguments with right wing scum on this issue

    Thank you Angry Voice

  3. Steven Duckworth Says:

    Couldn’t agree more.

  4. hstorm Says:

    Tallies well with this little piece I wrote after Th*tcher died.

    http://thegreatcritique.wordpress.com/2013/04/17/how-thatcher-embodied-the-conservative-lie/

  5. rainbowwarriorlizzie Says:

    Reblogged this on HUMAN RIGHTS & POLITICAL JOURNAL.

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