Posts Tagged ‘Medium Businesses’

Desperate Tories: Grant Shapps Attacks Miliband for not being Businessman

February 16, 2015

Mike over at Vox Political has this story about the Tories getting testy over Ed Miliband’s plans to boost small and medium businesses, Perhaps the Tories have all caught ‘foot in mouth’ disease at http://voxpoliticalonline.com/2015/02/16/perhaps-the-tories-have-all-caught-foot-in-mouth-disease/. Grant Shapps, the Tories’ chairman, has poured scorn on Ed Miliband’s ability to run the economy, because he has never run a business.

As Mike and the commenters on the BBC’s website have pointed out, this is a bit rich coming from Shapps. Shapps has indeed run his own business, but not necessarily under his own name. His trading names have included ‘Mr Green’ and ‘Mr Shepard’. This is, of course, fraud.

As George Osborne, before he was made Chancellor of the Exchequer, the scion of the Baronet of Ballymoney had the exciting, dynamic post of folding towels in Harrods.

So these two senior Conservatives ain’t prime examples of successful, reputable business then.

Obama Also Not Fit for Leadership, ‘Cause Not Businessman

As for the jibe, this isn’t original either. It first emerged, like much of the Tories’ vile policies, amongst the Republicans in America. It was a sneer aimed at Obama, when he ran against Rand Paul. The Repugs despised the Senator from Chicago because he was a ‘community organiser’. Rand Paul, on the other hand, was a businessman, and therefore far superior.

Social Darwinism and Class Prejudice

This actually tells you much about the Social Darwinist assumptions of modern American – and British – politics. The Nazis also praised and supported the business elites, as they were obviously biologically superior to the rest of the German population. Far below them were the biologically inferior, who included not only those considered racially inferior like Jews, Gypsies, Blacks, Poles and Russians, but also the disabled and the unemployed.

Now the British and American Social Darwinism of the late 19th and early 20th centuries did not recommend their extermination. It did, however, argue for the sterilisation of the disabled and mentally handicapped, as well as, at one point, the unemployed if they sought poor relief. The attitude was also used to block welfare and health and safety legislation by big businessmen, on the grounds that if workers suffered from illness or work-related sicknesses, it was down to poor heredity rather than the constitution of society.

The same attitude is very much on display here. Obama didn’t run a business – he just looked after deadbeats. Miliband can’t run the economy! He’s not a genetically superior member of the business class.

This Social Darwinist attitude to the inequalities of the British class system is very much alive. One of the most viewed pieces on this blog is a post I wrote about the weird eugenicist views of Maggie’s mentor, Sir Keith Joseph. Joseph looked set to become leader of the Tories until he caused a massive storm with a Social Darwinist rant about how unmarried mothers, and other members of the underclass, were a threat to the British national stock.

It was an extraordinarily offensive rant, made all the more surprising coming Joseph, who as a Jew should have been very well aware of the dangers of this kind of reductionist, pseudo-scientific biology.

The Biological Superiority of the House of Lords

The same class prejudices re-emerged again back in the 1990s when Blair was reforming the House of Lords. One of the reforms was the proposed abolition, or reduction in the number of hereditary peers. This produced a storm of outrage from Conservatives, one of whom argued that the hereditary peers should be left alone. They were, he argued, biologically superior to the rest of us proles and tradesmen, because centuries of breeding had prepared them for position in government, to which they were also best fitted through their education.

Now clearly, the good Tory, who made that argument, probably hadn’t seen, and certainly wouldn’t have liked, the 1970s British film, The Ruling Class. This starred Peter O’Toole as a mad lord, who believes he is Jesus. Toole’s character then becomes villainous when he is cured. At one point the character has an hallucination about going into the House of Lords. The members of the august House are shown as cheering, cobwebbed corpses and skeletons. It was an image that I can remember from my childhood, when it shown on Nationwide all those decades ago, when they were similarly debating the issue of the House of Lords.

Economy and Society Has Sectors, That Cannot Be Run for Profit

In fact, the argument about business leadership providing the best people for the government of the country falls down on simple facts that Adam Smith, the founder of modern laissez-faire capitalism, himself recognised. States provide services that are absolutely necessary, but don’t in themselves generate a profit. Like the judicial system and the transport network. You can’t run the courts like a business, no matter what bonkers Anarcho-individualists like Rothbard and the Libertarians believe. Nevertheless, you need judges, lawyers and courts to provide the security of property that makes business, and indeed civil society, possible.

It’s the same with roads. Roads were run for a profit at the time Smith was writing through the turnpike system. Nevertheless, Smith argued that roads could be a problem to run as a business, and therefore could be best left to the central government as the organisation best suited to maintain them. While they would be a drain on the nation’s resources, good roads were absolutely vital, and so the economy, and therefore British society as a whole, benefited.

Welfare Spending and Unemployment Relief Stimulate the Economy

Similarly, Obama may not have been a businessman, but his work as a community organiser clearly benefited his constituents, who had not been as well served by private enterprise as they needed. And by improving their material conditions through political action, the economy also benefits. This was one of the reasons FDR in the 1930s adopted the minimal provision of unemployment relief in America. If workers actually have enough money to help through unemployment, the amount they spend stimulates the economy still further and actually helps beat the recession.

The Nation of Shopkeepers, sacrificed to Big Business

Finally, you could also argue that Ed’s background outside of business actually makes him more, not less suitable to run the economy. It was Napoleon, who sneered at Britain as ‘the nation of shopkeepers’, and the retail sector is still one of the largest areas of the British economy. Thousands, if not millions, of Brits would love to run their own business. Maggie’s whole image as somehow ‘working class’, spurious as it was, was based on her being the daughter of a shopkeeper.

In sharp contrast to this, Tory policy has consistently favoured big business over the small businessman, making the dreams of hundreds of thousands of people, who aspire to be the next Arkwrights and Granvilles unrealisable.

Modern Big Business Practices Destructive

And the models the Tories have also adopted for big business have resulted in the destruction of much of the economy. Way back in the 1980s and 1990s, Private Eye ran a series about the multi-millionaires brought with much pomp to manage successful, blue chip companies, who then failed spectacularly. These superstar managers ran their businesses into the ground. In some cases, almost literally. Yet after decimating the companies and their share price, the managers were then given a golden handshake and sent packing. Only to be given a similar directorship at another company, and begin the whole process all over again.

As for privatised companies like the railways, they are now in receipt of vastly more public subsidies than British rail, and provide a worse service. The amount of rolling stock has been reduced and ticket prices increased, all so that a set of super-managers can enjoy a life-style of luxury, all while providing a service that is barely acceptable.

The scandals of the privately run care homes, which have been found guilty of appalling low standards of care, and the neglect and abuse of their elderly or handicapped residents, are also partly a product of the same commercial culture. Many were acquired by hedge fund companies, who have deliberately run up millions of pounds worth of debts for them as part of a tax dodge. The result has been a very parlous financial situation for the homes, resulting in little investment and bankruptcy.

Compared to this business culture, it could be said that Ed Miliband’s background outside it is a positive advantage, and gives him excellent credentials to run the economy.

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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.

Don’t Get Too Upset About UKIP’s Amjad Bashir

February 8, 2015

Amjad Bashir

Amjad Bashir: Former Kipper and Opponent of Giving Workers Rights.

There was a little bit of controversy a week or so ago when UKIP’s Amjad Bashir defected back to the Tories. Bashir was claiming he had been forced out, while UKIP instead claimed that they had suspended him following questions about possibly criminal or illegal conduct. The police had previously raided his restaurant, and there were allegations that he was employing illegal immigrants.

Bashir was one of the very few Black or Asian members of the party, and so gave it the illusion of being far more tolerant than it actually. Despite Farage’s claim that his is a ‘non-racist’, ‘non-sectarian party’, nearly every week there’s news of another racist comment, or links of yet another Kipper politico to the Fascist right. Regarding Bashir’s expulsion from UKIP, I don’t know which is right – him or his accusers.

What is clear is that Bashir deserves absolutely little sympathy for his treatment, as he is one of the many Kippers, who would like to repeal legislation granting workers rights.

In May last year Hope Not Hate ran an article on Bashir’s views, published on his website in April, on how workers’ rights stop businesses employing more people. The rights he particularly objected to are

1) Maternity leave.

2) Paternity leave.

3) Holiday entitlement.

4) Working time directive.

5) Minimum Wage

6) Flexible working directive.

7) Unfair dismissal (tribunals).

Bashir then deleted his comments about this issue, but they were retrieved using the Wayback Machine. At the time Bashhir was UKIP’s spokesman for Small and Medium Businesses. He isn’t alone in holding such views. Other, White Kippers have said pretty much the same thing. And no doubt Fuhrer Farage will deny that these are official Kipper policies, while not saying what the real policies in this area are. As usual.

So with his hostility to the rights British workers have struggled long and hard for over the past century, and which the Tories are doing their best to repeal at the rate of knots. I don’t have much sympathy for Bashir’s ejection from his party. Especially as he himself believes that workers shouldn’t have the right to sue for unfair dismissal.

The Hope Not Hate article is at: http://www.hopenothate.org.uk/ukip/ukip-business-spokesman-wants-to-abolish-workers-rights-3698