Posts Tagged ‘Investment Bank’

Owen Jones Talks to Rebecca Long-Bailey: Neoliberalism Has Fallen Apart

October 23, 2017

In this video, Owen Jones, the author of Chavs: The Demonisation of the Working Class and The Establishment, talks to Rebecca Long-Bailey, one of the people responsible for the Labour manifesto and close ally of Jeremy Corbyn. He states that she has been pretty central to the whole Corbyn project. And he particularly likes her because she’s a ‘scamp’ from Manchester like him.

He begins by stating that Clement Attlee established the post-War consensus of a strong welfare state, state intervention in industry and labour and trade union rights. This fell apart under Margaret Thatcher. He asks her if Thatcher’s neoliberalism is now falling apart in its turn.

She replies very positively that it definitely is, and that more orthodox economists are stating that we need a Keynsian approach to the economy. She says that when they began promoting Keynsianism, they were attacked as very much out of touch. Now the Financial Times and another major economic journal has come out and supported state interventionism. The FT even said that we need to renationalise water. This left her absolutely speechless with surprise when she read it, as it was a Labour idea.

She was the Shadow Minister in charge of business and industrial strategy. Jones notes that the hostile press would immediately attack Labour’s policies as destructive and compare them to Venezuela. He asks how she responds to that. She replies with a very clear answer: ‘Rubbish’. She points out that, under neoliberalism, Britain has become one of the least productive nations in the developed world. Indeed, productivity is at its lowest for 20 years. And thanks to wage restraint, wages are also lower than they were before the Crash of 2008.

She states we need an investment bank for England to encourage investment, as private industry won’t invest unless government does so. She also states that we need to reform industry so that it represents everyone involved in a firm, including workers and stakeholders. When Jones asks her what she considers socialism to be, she simply responds ‘Fairness’, and talks about giving employees rights at work, protecting their jobs. She also makes it clear that she believes it is very important to show people that voting Labour will make a difference to their lives. She wants to show people in the north that Labour will tackle homelessness, not just by building more homes, but by building more social housing, so that people, who can’t afford a house will get one. It will be a radical transformation of society, just like it was in the 1940s.

She also talks about how difficult it is being an MP. As a Member of Parliament, you just want to talk about your policies and the issues, but you have to be aware that every time you give an interview, the media are trying to lead you into a trap by getting you to say the wrong thing, or criticise a Labour colleague.

Long-Bailey clearly has a deep grasp not only of the abstract economic issues involved, but also of the personal dimension as people are driven in debt, misery and despair through neoliberalism’s destruction of the British economy for the enrichment of the small number of extremely rich and privileged. And she is inspired by the same ideas as those of Clement Attlee and the great labour politicians, who forged the post-War consensus and gave Britain it’s longest period of economic growth, as well as expanding opportunities for ordinary working women and men.

And it can only be brilliant that the FT, that great pillar of financial capitalism, has come on board to support a return to Keynsianism.

As for the pet Thatcherite policies of Monetarism and neoliberalism, Robin Ramsay has spoken of Monetarism that when he studied economics in the late 60s and ’70s, it was considered such as a nutty idea that his professors didn’t bother to argue against it. He has suggested that it’s possible the Tories, who embraced it also knew it to be a load of rubbish. But they adopted it because it provided an ideological justification for what they wanted to do anyway: privatise industry and smash the organised working class.

Now Thatcherite neoliberalism is falling apart very obviously, and the elite are panicking. Hence the non-story about Clive Lewis and his supposed ‘misogyny’, which is a complete non-story. It’s being used by the Tories to try to distract people from their continuing failures over Brexit, the privatisation of the health and education services. And, of course, the sheer mass of seething misogyny and racism in their own party.

Vox Political: Labour to Regulate Banking Sector and Create New Investment Bank

February 13, 2015

Open Hours Pic

Arkwright, Granville and Nurse Gladys Emmanuel from Open All Hours: The face of the British s-s-s-small businessman, who should benefit from a proper investment bank for their needs.

Mike over at Vox Political has today published this article, Labour’s bank reform plans, including bonus clawback and a British Investment Bank, announcing that Ed Balls and Labour’s Shadow Financial Secretary to the Treasury, Cathy Jamieson, will today announce the Labour Party’s plans to reform the banking industry. The new legislation will extend the amount of time in which the government can confiscate banker’s bonuses in the cases where they’ve broken the law. They also want to increase the levy on payday lenders to support alternative sources of credit and increase competition between banks. They also want to set up an investment bank, which will support investment in small and middle-sized businesses.

Mike’s article begins

Labour is today (Friday) publishing its plans to reform the banking sector so that it better supports growing businesses, economic growth and rising living standards.

Ed Balls MP, Labour’s Shadow Chancellor, and Cathy Jamieson, Labour’s Shadow Financial Secretary to the Treasury, will publish Labour’s banking reform paper after a visit to a business in Bedford.

The banking reform paper is part of Labour’s economic plan and sets out a series of measures the next Labour government will take, including:

· Extending clawback of bank bonuses that have already been paid in cases of inappropriate behaviour to at least 10 years and enacting legislation, passed by the last Labour government, to require banks to publish the number of employees earning more than £1 million.

· Creating a proper British Investment Bank to provide vital funding for small and medium-sized businesses. All funds raised from the planned increase in the licence fees for the mobile phone spectrum – estimated to be up to £1 billion in the next Parliament, subject to Ofcom consultation – will be allocated to the British Investment Bank.

· Introducing a one-off tax on bankers’ bonuses to help pay for Labour’s Compulsory Jobs Guarantee – a paid starter job for all young people out of work for 12 months or more, which people will have to take up or lose their benefits.

· Addressing the lack of competition in the sector. We welcome the Competition and Markets Authority inquiry which we called for and want to see at least two new challenger banks and a market share test to ensure the market stays competitive for the long term.

· Extending the levy on the profits of payday lenders to raise funding for alternative credit providers.

Mike quotes Ed Balls as recognising the importance of the banking industry to this country, but states that it needs to be better regulated in order to encourage and promote economic growth.

“Banks are essential to our economy, but we need them to work better for the businesses and working people who rely on them.

“We need much more action than this government has been prepared to take. So Labour’s banking reform paper sets out how we will change rules on bonuses, increase competition and get more lending to small and medium-sized businesses.”

He also quotes Cathy Jamieson on the importance of a proper source of investment for small and medium businesses:

“Bank lending to businesses has fallen year after year under this government. This just isn’t good enough. Without access to finance, SMEs cannot grow and create the high quality, well paid jobs we need to increase living standards. That’s why our plans will deliver more competition in our banking sector and a proper British Investment Bank too.”

The article’s at http://voxpoliticalonline.com/2015/02/13/labours-bank-reform-plans-including-bonus-clawback-and-a-british-investment-bank/. Go over there and read it. Mike wants to hear what his readers think.

The Importance of an Investment Bank

I have some problems with it, but I think in broad terms it is very much a step forward. It also marks a strong break with New Labour policies. Mike’s been arguing over on his blog that Ed Miliband is not the same as Tony Blair and Gordon Brown, whose time is long past. This provides further proof. Despite the rubbish that Cameron and the Tories have spewed about the banking collapse being due to over-regulation by Labour, the very opposite was true. New labour was strongly opposed to regulating the financial sector. Indeed, it played a major role in the City’s change of support from the Tory’s to Labour during Gordon Brown’s and Mo Mowlam’s ‘prawn cocktail offensive’ under Tony Blair. Brown repeatedly reassured the bankers that Labour would regulate them with a light touch. The massive collapse and gaping black holes in the banking industry that led to the recession was not created by too much regulation, but by Labour not watching what the bankers were doing closely enough.

The amount of money bankers have been allowed to pay themselves in bonuses while very efficiently wrecking the economy and ruining the livelihoods of everyone not a millionaire banker is nothing short of scandalous. Extending the amount of time available to confiscate bonuses in cases of illegal conduct is a good start, and should start to restore confidence in the industry.

British industry has also been in desperate need of a proper investment bank for a very, very long time. The authors of Socialist Enterprise and Neil Kinnock, before he dropped Socialism in favour of the free market, recognised that the City was not geared to providing inward investment, and certainly not to manufacturing industry. The major investment banks had been set up to channel investment to Britain’s colonies during the Empire. Even after that had gone the way of ancient Rome, Assyria and Egypt, the banks still preferred to invest overseas than domestically. British domestic investment lagged far behind our competitors in Japan and Germany.

The administrations of the last three decades, following Thatcher, have also been harshly indifferent, or even hostile, to the manufacturing sector. Quite apart from destroying British heavy industry in order to break the unions, Thatcher and her circle had strong links to the financial sector, and neither understood, nor were particularly interested in the needs of manufacturers. In one of their recent issues, Lobster carried a piece about a captain of industry, who did end up mixing with Thatcher and her cabinet. The particular industrialist was a staunch Tory, and so shared her views about crushing the unions and the importance of private enterprise and competition. He remarked, however, on how absolutely ignorant she and her chancellors were about basic economics. One of the obstacles for British exports was the strong pound. This particular businessman tried pointing out to Maggie that a strong pound discouraged countries from importing from Britain, as it made our goods expensive and therefore uncompetitive. Of course, Maggie didn’t want to hear about this, and pointed to Germany as a counter-example. Look at the Germans, she said. The Mark’s strong, and it hasn’t stopped people from buying German. To which the businessman tried telling her that the Mark was strong, because people were buying German goods. It was not a case of people buying German goods, because the Mark was strong. But this was too much for the Iron Lady and her sycophants and acolytes to grasp.

Britain’s manufacturing factor needs to be rebuilt. Unfortunately, Balls and Jamieson’s statement doesn’t recognise this, but the establishment of a proper investment bank will be a very good start.

As for increasing the levy on pay day lenders, I’d rather see them either shut down completely, or have their tariffs lowered even further, as well as promoting alternative forms of credit. Nevertheless, this is another good start.

I also have objections to using money levied on the bankers to set up the compulsory employment scheme. Johnny Void has already attacked the scheme earlier this week with a piece sharply criticising Rachel Reeves. I believe he’s right. The scheme does look like another version of workfare, just slightly better in its treatment of the people forced to take it. I believe the whole welfare-to-work industry needs to be scrapped totally.

Nevertheless, even with these caveats, I believe that Balls’ and Jamieson’s policies should be an excellent step forward. And a proper investment bank that provides support to the small and medium businessman should get the approval of aspiring Arkwrights up and down Britain. Even if it does come from the Socialists.