Posts Tagged ‘Fred Goodwin’

Private Eye on the Connections between the Independent Group, Progress Centre and New Labour

March 6, 2019

This fortnight’s Private Eye for 8th -21st March 2019 has an article on the connections between Chuka Umunna’s Independent Group, the Blairite think tank Progress Centre and Gordon Brown and Peter Mandelson. It suggests that Paul Myners, who sits on the think tank’s advisory board, could be funding it. The article on page 7 runs

MYNERS STRIKE

AS WELL as launching “The Independent Group” (TIG) of MPs, Chuka Umunna also chairs a think-tank called Progressive Centre UK. Last August this “next generation ideas lab” gave him a £65,000-a-year (for 12 hours a month) chairing its advisory board.

As TIG launched, the Progressive Centre paid for polling that “shows real appetite for new party” – which was handy for TIG, as its PR people admitted it did not yet have the cash to fund its own polling. The Progressive Centre also published work by academic Steven Fielding arguing that “despite what many believe, the future of the Independent Group might be very bright indeed”.

The most heavyweight member of the Progressive Centre’s advisory board is Lord (Paul) Myners, Gordon Brown’s City minister from 2008 to 2010, and deeply involved in the bank bailouts during the financial crisis. Indeed, the Commons treasury committee criticised Myners over his “City background and naivety” for allowing the disgraced Fred Goodwin to escape from the bailed-out RBS with an £8m pension top-up.

Myners, who also chairs PR firm Edelman and is vice-chair of Peter Mandelson’s lobbying firm Global Counsel, gave Umunna £9,000 for office costs in 2016-17. This was when Umunna was believed to be raising funds for a leadership bid, which was called off when Jeremy Corbyn failed to crash adn burn in the 2017 election.

Could Myers be funding the Progressive Centre itself? The think-tank doesn’t say who funds it – but if he is backing it, it could at least get his name right. On its “People” page its website lists him as “Peter Myners”.

The Progress Centre sounds like a standard Blairite political faction. Myners is a banker and the head of a PR firm, and New Labour was notorious for its insistence on a light regulatory touch for the financial sector, as well as its connections to industry and banking. It was also notorious for PR and spin, instead of real policies. And like the Blairite faction in the Labour party, it’s trying to sound progressive and forward-thinking while in fact it’s just more of the same, shop-worn Thatcherism.

And the Progress Centre and the Independent Group also have another feature in common: they’re heading their financial backers.

As for the Independent Group’s prospects for the future, I think Fielding and his pollsters are being wildly optimistic. The mood of the public is moving left. Labour’s policies are massively popular with the public, unlike those of the Tories and Blairites, who aren’t offering anything except more privatisation and austerity.

As they are now, both the Progress Centre and the Independent Group are also a positive threat to democracy. They won’t reveal who their backers are, but following standard Blairite practice, it’s more than likely that they represent those backers’ interests, rather than that of the British public. They represent more Blairite and Conservative corporatism. And as six out of the eight Labour founders were members of Labour Friends of Israel, including Joan Ryan and her connections with Masot and the Israeli embassy, it’s likely that they’re also receiving money from them. And so they’ll also represent Israeli interests, rather than those of the constituents, who elected them.

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Vox Political: Bank of England Economist Says High Executive Pay Damages Economy

May 19, 2016

Mike over at Vox Political has posted a piece about the remarks by Andy Haldane, the Chief Economist at the Bank of England, that Britain’s economy is being damaged by exorbitantly high executive pay. An article in the Independent notes that the average pay of FTSE 100 bosses is now 150 times that of the average UK worker. The Indie then went on to say

This large and growing remuneration gap, Mr Haldane said, “drive[s] a wedge between management and employees…that in turn erodes social capital. A company, like a country, whose physical and social capital is being eroded is one whose wealth-creation capacity is being impaired.”

Social capital refers to trust and relationships in a society and Mr Haldane argued this matters “every bit as much to wealth and well-being” as financial capital such as stocks and shares and other such assets.

It also reported that there have been a number of shareholder rebellions against the high pay awarded to chief executives.

Mike comments

Trust between bosses and employees is at an all-time low – not helped by Conservative Government policies that trample on workers and try to reduce their rights and remuneration. Look at the junior doctors’ strike for an example.

Mr Haldane is saying the direct result of this is harm to the economy, and we can see that this is true.

Why would any worker want to provide a high-quality product for an employer who is ripping them off?

And if they lose their job, why would the next worker want to provide a high-quality product for an employer who is paying them less than the last worker (because they can)?

Go read Mike’s piece at http://voxpoliticalonline.com/2016/05/19/highly-paid-bosses-are-harming-the-economy-says-bank-of-england-bigwig/ for more information and his very relevant remarks.

Chang Capitalism Book pic

The Korean-born economist, Ha-Joon Chang tackles this problem in his book 23 Things They Don’t Tell You About Capitalism in the chapter ‘Thing 14 US Managers Are Over-Priced’. Chang concentrates on American managers because they are paid a whopping 300-400 times that of the average American blue-collar Jose or Josie. They are paid way more than the managers of comparable companies elsewhere in the world, including Japan. The chapter is an attack on the Neo-Liberal attitude that if the managers are paid so much more than their counterparts elsewhere in the world, and their workforce, it must be because their performance is somehow worth it in the market economy. Chang shows that this is not the case. He argues that US managers now are not more efficient and effective than they were a generation ago, when they were only paid 30 to 40 times more than their workers. And they certainly aren’t worth that money compared to their European and Japanese competitors, who are actually beating them.

Finally, he discusses the damage such executive pay actually does to the wider economy. He argues that the managerial class now has so much power through their contacts in government and their grossly inflated pay that even when they fail, they are not punished, but instead rewarded. They most they receive are extremely generous severance packages. And the people who have to suffer, ultimately, to pay for their bloated salaries are the workers and the taxpayers, who have had to bail out the banks. He writes

Despite this, little is done to check excessive and biased (in that failures are hardly punished) executive pay packages because the managerial classes in the US and Britain have become so powerful, not least because of the fat paycheques they have been getting over the last few decades. They have come to control the boardrooms, through interlocking directorship and manipulation of information that they provide to independent directors, and as a result few boards of directors question the level and the structure of executive pay set by the CEO. High and rising dividend payments also keep the shareholders happy. By flexing their economic muscle, the managerial classes have gained enormous influence over the political sphere, including the supposedly centre-left parties such as Britain’s New Labour and America’s Democratic Party. Especially in the US, many private sector CEOs end up running government departments. Most importantly, they have used their economic and political influence to spread the free-market ideology that says that whatever exists must be there because it the most efficient.

The power of this managerial class has been most vividly demonstrated by the aftermath of the 2008 financial crisis. When the American and the British governments injected astronomical sums of taxpayers’ money into troubled financial institutions in the autumn of 2008, few of the managers who were responsible for their institutions failure were punished. Yes, a small number of CEOs have lost their jobs, but few of those who have remained in their jobs have taken a serious pay cut and there has been an enormous, and effective, resistance to the attempt by the US Congress to put a cap on pay of the managers of financial firms receiving taxpayers’ money. The British government refused to do anything about the £15-20 million pensions payout (which gives him around £700,000 yearly income) to the disgraced former boss of the R.B.S. (Royal Bank of Scotland), Sir Fred Goodwin, although the intense negative publicity forced him subsequently to return £4 million. The fact that the British and the American taxpayers, who have become the shareholders of the bailed-out financial institutions, cannot even punish their now-employees for poor performance and force them to accept a more efficient compensation scheme shows the extent of power that the managerial class now possesses in these countries.

Markets weed out inefficient practices, but only when no one has sufficient power to manipulate them. Moreover, even if they are eventually weeded out, one-sided managerial compensation packages impose huge costs on the rest of the economy while they last. The workers have to be constantly squeezed through downward pressure on wages, casualization of employment and permanent downsizing, so that the managers can generate enough extra profits to distribute to the shareholders and keep them from raising issues with high executive pay (for more on this, see Thing 2). Having to maximise dividends to keep the shareholders quiet, investment is minimized, weakening the company’s long-term productive capabilities. When combined with excessive managerial pay, this puts the American and British firms at a disadvantage in international competition, eventually costing the workers their jobs. Finally, when things go wrong on a large scale, as in the 2008 financial crisis, taxpayers are forced to bail out the failed companies, while the managers who created the failure get off almost scot-free.

When the managerial classes in the US and, to a lesser extent Britain, possess such economic, political and ideological power that they can manipulate the market and pass on the negative consequences of their actions to other people, it is an illusion to think that executive pay is something whose optimal levels and structures are going to be, and should be, determined by the market. (pp. 155-6).

The War on Drugs, Racism and Eugenics in Modern America

January 29, 2016

There’s a particularly chilling passage in the chapter ‘The History of “Black Paranoia” in Cockburn and St. Clair’s End Times: The Death of the Fourth Estate, where they describe the revival and continuation of eugenics policies, including the use of castration and sterilisation, and the US government’s ‘war on drugs’. The chapter as a whole is intended to show that Black Americans have very good reason for not trusting the US government, considering the numerous policies that have been deliberately enacted against them. This has includes treating them as unwitting subjects for human experimentation, and the way crimes have been specifically framed by the legal authorities so that punishment bears down hardest on Blacks and other ethnic minorities. The various anti-drugs legislation is a case in point. Although middle class White Americans also used opium, marijuana and cocaine, the laws against them were formulated and promoted to specifically attack Blacks, Mexicans and Chinese, as a way of making them seem threateningly foreign. Cannabis was originally just called ‘hemp’. It was renamed ‘marijuana’ as a way of associating with Mexican workers, who were then competing with White workers in the Depression for jobs. It was associated with the racial threat supposedly posed by Black men, often using the crude imagery of school playground racial stereotype. One government headline screamed that ‘Negroes with Big Lips Lure White Women with Marijuana and Jazz.’ And all this was going on a mere few decades after one US cigarette manufacturer offered smokers cocaine-laced ciggies for their consumption.

The Destruction of Black Communities by the War on Drugs

Cockburn and St. Clair talk about the devastation wrought in downtown L.A. by the War on Drugs, which effectively turned poor Black neighbourhoods into war zones. Wards were walled off from each other, curfews imposed, and Black men were stopped and searched on the street. 89 per cent of those arrested were released without charge. Unemployment soared, as did the proportion of Blacks in US prisons. Poverty increased, and for the first in a century, the average Black life expectancy fell.

Fred Goodwin on Inner City Men Evolving Backwards

And as conditions in the inner cities deteriorated, there was a revival of eugenics. In 1992, Fred Goodwin, the director of ADAMHA, or the Alcohol, Drug Abuse and Mental Health Administration, declared that the increase in Black violence in the inner cities may well have been due to a gene for violence. He recommended that a national biomedical campaign should be launched to isolate the gene and treat the gene’s carriers. In February of that year he gave a speech to the National Mental Health Advisory Council, in which he explicitly stated that violence had increased, as individuals in the jungle conditions of the inner cities had reverted to more ‘natural’ behaviour. He stated:

There are discussion of “biological correlates” and “biological markers”. The individuals have defective brains with detectable prefrontal changes that may well be predictive of later violence. The individuals have impaired intelligence, in this case “cognitive deficit” … Now, one could say that if some of the loss of social structure in this society, and particularly within the high impact inner city areas, has removed some of the civilising evolutionary things that we have built up and that maybe it isn’t just the careless use of the word when people call certain areas of certain cities jungles, that we may have gone back to what might be more natural, without all of the social controls that we have imposed upon ourselves as a civilisation over thousands of years in our evolution.

Planting Electrodes in Brains to Control Violence

Cockburn and St. Clair link Goodwin’s attempt to find the genetic origins of violence and a medical treatment, with that of Lewis “Jolly” West, who presided over the neuropsychiatric institute at UCLA. In 1969 West announced his plan to plant electrodes in the brain of violent offenders, in order to control them. This caused such an outcry that he was forced to abandon his plans. There are shades here of the limiter in the BBC SF series, Blake’s 7. One of the early characters, Oleg Gan, had had a limiter – an electronic device designed to prevent him from killing anyone – implanted in his brain after he killed the Federation trooper, who’d raped his girlfriend. Blake’s 7 was a kind of ‘Dirty Dozen’ meets Star Wars, in which a motley crew of criminals led by the dissident Blake took on the totalitarian Federation. It was very much of its time, and strongly influenced by the medical abuse of psychiatry against dissidents in the former Soviet Union. West and his electrodes suggest that its creator, Terry Nation, the man, who gave children the world over the terrible joy of the Daleks, was also very much aware of the totalitarian tendencies in western science.

The Castration of the Violent

One of West’s own mentors was Dr Ernst Rodin, who was in charge of the Neurology department of Lafayette Clinic. He recommended neurosurgery and castration for the ‘dumb young males who riot’. His views were echoed by West after the Watts riots, but instead of surgery, West recommended sterilising them with cyproterone acetate. In 1972 he recommended that this should be carried out on the inmates in US prisons. This caused such an outcry that his funding was cut.

The Eugenic Sterilisation of the Unfit

Cockburn and St. Clair also cover the eugenics laws enacted in twelve US states in the first two decades of the last century. Between 1907 and 1964 about 63,678 people had been compulsorily sterilised in thirty states and one colony. But this was probably an underestimate of the true numbers of the policy’s victims. In 1974 Federal Judge Gerhard Gessell, reviewing the suit brought by them, declared that 100,000 to 150,000 people with low incomes had been sterilised annually over the past few years in federally funded programmes. Allan Chase, the author of a book on this, The Legacy of Malthus, states that this is comparable to the rate of the Nazis in their sterilisation campaign.

Such programmes were supposed to be voluntary, but Gessell ruled that an unknown number had been forced into it through the authorities threatening to take away their welfare benefits. Those most frequently targeted with this kind of pressure were women reliant on Medicaid to pay their bills for childbirth. One of the intended victims of this was Katie Relf, who successfully fought it off by locking herself into her room. Chase has estimated that by the end of the 1970s, the US was sterilising 200,000 citizens annually.

Winston Churchill, Eugenics, and the Bengal Famine

And the policy was not without its supporters over here. Winston Churchill also supported the policy, and wanted to see about 100,000 degenerates in the UK forcibly sterilised. This isn’t by far the most loathsome thing the great War Leader ever said or did. Last week, Secular Talk covered the story in the Independent that 40 per cent of Brits miss the Empire. The show covered a series of crimes against humanity committed by the Empire and its servants. These included the Amritsar Massacre, the incarceration of Afrikaaner women and children in concentration camps during the Boer War, and the Bengal Famine, in which 27 million people died of starvation. The wheat that could have fed them was diverted to British troops fighting in Europe in the Second World War. For the victims, Churchill had no sympathy. He said he hated Indians, and that it served them right for ‘breeding like rabbits’. He may have been the great leader who kept Europe free, but that doesn’t stop him from also being a moral slug.

Conclusion: Don’t Trust Those Who Claim to Have Found the Gene For Whatever

Apart from its main point – that American Blacks have every reason to be alienated and distrustful of the government and authorities, the chapter also shows how recently such racist attitudes were accepted by medical authorities, as well as the use of sterilisation against the poor generally. And it also provides very good reasons for being extremely distrustful of scientists when they claim to have found the gene for ‘X’. This includes the gene for schizophrenia, for homosexuality, and for violence. The latter surfaced yet again about a few months ago. Someone was claiming that extremely violent crims had a certain mutated chromosome. Then another biologist pointed out that roughly half of everybody also had the gene, and it didn’t make them into psychos. There’s a real danger here that if we pay too much attention to these scientists, we’ll be back with sterilisation and compulsory lobotomy. Just like the early 20th century and Nazis.