Posts Tagged ‘Rishi Sunak’

Rishi Sunak Goes Social Credit

July 6, 2020

Zelo Street put up another piece yesterday showing the glaring hypocrisy of the Tory party and their lapdog press. According to the Absurder, the Resolution Foundation had been in talks with chancellor Rishi Sunak to give everyone in Britain vouchers to spend in shops and businesses. Adults would receive vouchers worth £500, while children would get half the amount, £250. Sunak was being urged to accept the scheme as it would stimulate the economy, which has been badly hit by the lockdown. The Tory papers the Heil and the Scum also reported this, and thought it was a great idea.

This contrasts very strongly with their attitude last May, when Jeremy Corbyn also floated the idea of giving the British people free money in UBI – Universal Basic Income. The Scum claimed that if everyone was given £70 a week, then this would raise the welfare bill from £188 billion to £288 billion a year. The Heil reported that when the scheme was tried out in Finland, it made people happier but didn’t improve employment levels and would prove ‘unsustainable’.

But it isn’t just Finland that is experimenting with UBI. It was introduced in Spain a few weeks ago as Mike reported on his blog. Spain is a poorer country than Britain, but their willingness to try it contradicts the government’s excuse for not doing so, which is that Britain can’t afford it.

But now Rishi Sunak is considering it, and the Tory papers are praising him for it, whereas they vilified Corbyn. Zelo Street commented

‘Clearly, since May last year, a “free money” handout has stopped being a ghastly socialist aberration, and is now an excellent wheeze. Cos Rishi will be doing it.

The press will do anything to flog more papers. Including a little socialism.’

https://zelo-street.blogspot.com/2020/07/government-handouts-yeah-but-no-but.html

Of course, the reason the right-wing press are supporting Sunak whereas they condemned Corbyn, is because the two men have very different reasons for recommending it. In Corbyn’s case it was a desire to help empower ordinary people and stop the poverty the Tories have inflicted on them through low wages, job insecurity and the murderous system of benefit cuts and sanctions. The Tories, by contrast, heartily despise the poor. In the interest of maintaining healthy profits, they have always pursued low wages and punishing the poor, the sick, the disabled and the unemployed with minimal state welfare provision. This is now for many people below the amount needed to keep body and soul together. Where it is available at all, that is. That’s if people are able to get it after waiting five weeks for their first payment, and not getting sanctioned for the flimsiest excuse. This is all done to reduce the tax bill for the 1 per cent. Those able to work must be kept poor and desperate so that they will accept any job and won’t be able to demand higher wages. As for the long-term unemployed and the disabled, they are biologically inferior ‘useless eaters’, exactly as the Nazis viewed them, who should be allowed to starve to death.

Sunak’s motive for embracing UBI is so that the proles can spend it, thus keeping businesses afloat and maintaining or boosting profits. It’s socialism for the rich, as modern corporatism has been described. Just as welfare benefits are cut or completely removed for working people and the poor, so corporatism rewards business, and particularly big business, through a system of subsidies and tax breaks. It’s why one book attacking this system was titled Take the Rich Off Welfare.

Sunak’s version of UBI also harks back to a similar scheme founded in the 1920s by the British officer, Major C.H. Douglas. Aware of the widespread poverty of his day, Douglas argued that it was ‘poverty in the midst of plenty’. The goods were available to satisfy people’s needs, but they were unable to afford them. He therefore recommended that the government should issue vouchers to solve this problem and enable people to buy the goods they desperately needed.

The idea has never really taken off. It was included among the policies Oswald Mosley adopted for his New Party after it split from Labour in the late ’20s and early ’30s. There was also a Social Credit party in British Columbia in Canada, though I believe that’s an extreme right-wing, anti-immigrant party for Anglophone Whites which doesn’t actually support the Social Credit economic policy.

I’ve also seen something extremely similar to Social Credit used as the basis for an SF story. In Frederick Pohl 1950’s novella, ‘The Midas Plague’, the poor are bombarded with expensive goods and services which they must use and consume. They are punished if they don’t. As a result, in terms of material conditions the position of rich and poor is reversed: the poor live opulent lives, while the rich, who have to own their own possessions, live much more austerely. The whole point of this is to keep the economy booming and industry expanding.

We haven’t yet got to that point, and I don’t we ever will, if only because the wealthy ruling class, on whose behalf the Tories govern, are so against letting the poor get anything for free. Even when they need and deserve it. But unemployment is set to increase due to automation in the workplace. It’s been forecast that over the next 20 years about a 1/3 of jobs will be lost. 21st century Britain, and indeed much of the rest of the Developed World, could look like Judge Dredd’s MegaCity 1, where over 95 per cent of the population is unemployed and lives on welfare.

If that ever happens, then the government will need to implement something like Social Credit in order to give people both enough to live on and support business and industry.

Not that Sunak need go that far just yet. One of the reasons F.D. Roosevelt introduced state unemployment insurance for Americans as part of his New Deal was also to support industry. He, and liberal and socialist economists in Britain realized that if you give people money to support themselves during a recession, they will spend their way out of it. Both the poor, the unemployed and industry benefits. We could do the same now, by giving people a genuine living wage, raising unemployment and other benefits up to a level so that people can actually live on them and abolish the five-week waiting period and the sanctions system so that people don’t have to rely on food banks to save them from starvation.

But this would contradict the Tories’ favoured policies of keeping working people and the poor hungry and desperate.

Iain Duncan Smith Denounces Plan to Introduce Universal Basic Income

March 30, 2020

Universal Basic Income, the scheme by which governments give a specified guaranteed income to all their citizens regardless of personal wealth or employment, has been widely discussed in recent years. I think some countries may already have such schemes in place, and there might be a programme about it this week on Radio 4. It was also one of the ideas mooted to help people out of their financial difficulties caused by the Coronavirus lockdown. Ten days ago, on Friday, 20th of March 2020, Mike put up a piece reporting that Boris Johnson was then considering the idea. And not only that, the idea had the support of some British industrialists, like Liam Kelly, the chair of the Baltic Triangle group of companies. Kelly said that the scheme wasn’t quite as radical as dropping money from a helicopter, but was a plausible solution to the problem of the present crisis. He said “It will help stave off the unprecedented economic challenges we face and protect us from another. This is a sensible fiscal stimulus and it’s time it went directly to the people, not just to the banks.” This might be a reference to one of the criticisms of the government’s financial bailout of the 2008 banking crash. The money went to the banks, who have carried on as before. Some critics have said that what Brown should have done instead is given the money to the public, so that their spending would solve the crisis the bankers had created. Who would have to face the consequences of the massive financial bubble they had created, rather than expect everyone else to bear the costs imposed through austerity while they continued to enrich themselves.

One voice, however, spoke against this scheme: Iain Duncan Smith. The pandemic has had a profound personal effect on some people. It’s brought out the best in them, as friends and relatives rally round to look after those, who are too vulnerable to do things for themselves like go shopping. IDS, however, has remained untouched by this. He still remains a shabby, deplorable excuse for a human being. In an article in the Torygraph stuck behind a paywall – because the Tories don’t let the proles getting anything for free – IDS issued his criticisms of the scheme. He blandly stated that the scheme would make no difference to the financial problems of low-income households and would not alleviate poverty. For which he provided no evidence whatsoever. He also said that it would disincentive work, and cost an astronomic amount of money. This is despite the scheme being budgeted at £260 billion, which is £70 billion less than the £330 billion Rishi Sunak has already imposed.

Mike says of … Smith’s appalling attitudes that they come from a man, who seems to believe that the solution to poverty is killing the poor themselves. Why else, Mike asks, would he have imposed policies that have pushed the vulnerable so deeply into poverty that many have died.

Mike also makes the point that he’s also trying to protect his own political vanity projects, like the Bedroom Tax, Universal Credit, PIP and ESA assessments, which would all become redundant with the introduction of UBI. Mike concludes

And he wants to ensure that we do not get to see the beneficial effects of UBI, even if it is only brought in for a brief, experimental period.

It seems clear that, while the Tories are claiming to be doing what they can in the face of the crisis, the evil that motivates them remains as strong as it ever was.

See: https://voxpoliticalonline.com/2020/03/20/coronavirus-trust-iain-duncan-smith-to-try-to-wreck-our-chances-of-survival/

This is absolutely correct, though it can be added that the Gentleman Ranker isn’t afraid of seeing his own political legacy discarded, but the whole Tory attitude to poverty and the question of wealth redistribution. The Republicans in America and the Tories over here hate redistributive welfare policies. The rich, they believe, should be left to enjoy their wealth, ’cause they created it and its all theirs, and the poor should have to work for their money. If they can’t work, or are poor, it’s because of some fault of their own – they’re idle, or simply don’t have the qualities to prosper in the meritocratic society created by unfettered market capitalism. And since Maggie Thatcher, Tory and Blairite welfare policy is based on the assumption that a large percentage of people claiming disability or unemployment benefit are workshy scroungers. Hence the fitness to work tests, in which it has been claimed that the assessors are instructed to find a certain percentage fit, because Tory ideology demands that they do. Even if in reality they are severely disabled, terminally ill, or in some cases actually dead. This also applies to Jobseeker’s Allowance and Universal Credit, and the system of sanctions attached to them. It’s all the principle of less eligibility, by which the process of claiming benefit is meant to be as harsh, difficult and degrading as possible in order to deter people from doing it. It is designed to make them desperate for any job, no matter how low paid or degrading. Or if they cannot work, then they are expected to find some other way to support themselves or die. The death toll from benefit sanctions runs into hundreds, and the total death toll from Tory austerity is 120,000, or thereabouts. And many of these deaths are directly attributable to IDS’ wretched, murderous policies.

If Universal Basic Income were to be introduced and shown to be a success, it would effectively discredit Tory welfare policy. The idea that state welfare stops people from looking for work has been a Tory nostrum since before Thatcher. But with Thatcher came the belief that conditions for the poor should be made harder in order to make them try to do well for themselves. I can remember one Tory, or Tory supporter, actually saying that on the Beeb during Thatcher’s tenure of No. 10. But these ideas would be seriously damaged if UBI were successfully implemented. It would also help undermine the class system the Tories are so keen to preserve by closing the gap between rich and poor through state action, rather than market forces. Which, indeed, have never done anything of the sort and have only created glaring inequalities in wealth.

Iain Duncan Smith couldn’t bear to see this all discredited. And so to stop this, he blocked UBI, even though it offered a plausible solution to some of the financial difficulties people are suffering.

Which shows you exactly how despicable he is, and how devoted to the maintenance of a welfare system that has done nothing but push people into poverty, starvation and death.

 

 

Corbyn Warns that Fighting Against Corona Virus Will Be Harder Due to Tory Cuts

March 13, 2020

Yesterday the papers were falling over themselves to praise BoJob’s wretched budget to the rafters. It was the first populist budget since Maggie Thatcher! There would be more spending on the NHS to help it combat the corona virus. The Tories were now committed to spending more on the economy and the infrastructure. Boris was giving the public what they wanted. It was all A Very Good Thing indeed.

It seems it was only Jeremy Corbyn, who struck a more sober, realistic note. According to a piece in yesterday’s I, by Richard Wheeler and Sophie Morris, the former Labour leader warned that fighting back against the virus will be harder because of 10 years of cuts. The article ran

Jeremy Corbyn urged the Government to be straight with people about how the coronavirus response will be “much tougher” after 10 years of “deeply damaging” cuts.

The Labour leader welcomed Budget steps taken by Chancellor Rishi Sunak to head off the economic impact of the spread of Covid-18.

But the UK enters the crisis with its public services “on their knees” and with a “fundamentally weak” economy, Mr Corbyn added.

Replying to the Budget, the Opposition leader said: “The Chancellor shows not some but a lot of brass neck when he boasts that measures to deal with coronavirus are only possible because of his party’s management of the economy.

“Look outside – in the real world, we’re still living through the slowest economic recovery in a century. Our economy is fundamentally weak.”

He told the Commons: “The steps the Government has announced today to head off the economic impact of the coronavirus are obviously welcome, but I have some points I wish to raise.

“We have to be straight with people, it is going to be much tougher because of the last 10 years of deeply damaging and counterproductive cuts to all of our essential public services.”

He added the Budget “doesn’t come close” to delivering on the Government’s election promises to working-class communities.”

Bristol South Labour MP Karin Smyth on the Budget

I was at a meeting of the local Labour Party in south Bristol yesterday. Our MP, Karin Smyth was there to give her report to us all. And she was very scathing about the Budget and the Tory response to the coronavirus. She said first of all that the Tories should not be congratulated for doing something they’d destroyed. The money they promise to put back into the economy will not restore it to 2009/10 levels. And at the moment, it’s just headlines. The money has not been allocated and there is no infrastructure. She didn’t say it quite like this, but this is what is: guff. Empty, vapid guff and promises. She also said that it showed how far removed from the lives of ordinary people that they really didn’t understand how Statutory Sick Pay worked, or that people with the virus would have to go into work because otherwise, thanks to their cuts, they wouldn’t have any money.

Her comments on the state of the NHS and social care also bore out Corbyn’s comments. Before she became a local MP for Bristol, she was involved in the CCGs – the commissioning groups set up within the NHS by Tony Blair – in north Somerset and then in Bristol. She stated that Bristol was well placed to tackle the coronavirus, but this was only through the work of the local authority. The party’s LGBT officer stated that Bristol was also strongly placed to tackle the disease, as she worked in the virus labs. However, this was solely due to the local authority and NHS groups working to develop the machinery to deal with emergencies like the virus themselves. The Tories had destroyed the national machinery to deal with them with the introduction of Andrew Lansley’s pestilential Health and Social Care bill of 2012.

Tory NHS reforms and partial privatisation have damaged this country’s ability to respond to the coronavirus. 

I ended up talking about the coronavirus emergency with the taxi driver coming home. He too was mightily unimpressed with BoJob’s response. And he was furious at Johnson’s statement that people would die. Now I think Johnson meant it as a mere statement of fact, but the driver, and many others I’m sure, have taken it to mean that Johnson is completely indifferent to the deaths of the poor, the disabled and the elderly. Mike has commented to that effect. So has Zelo Street. And they’re right. Johnson’s government has repeatedly shown that they have no interested in preserving the lives of the vulnerable. Quite the opposite – they do seem to see the mass deaths they’ve inflicted through the work capability cuts and the benefit sanctions as ‘culling the herd’.  Which brings me back to another comment Smyth made – that the government’s welfare reforms means that the welfare safety no longer exists. And the effects will get worse towards the end of this government in 2024.

People are going to die because Johnson and the Tories hate the welfare state for keeping the poor and vulnerable alive and imposing taxes on the rich.

Private Eye Attacks the Tories’ Stupid and Damaging ‘Free Ports’ Policy

February 20, 2020

Eight days ago on 12th February 2020, Mike put up a piece criticising the Tories’ great new wheeze for invigorating Britain’s economy. They want to set up ten ‘free ports’ after Brexit, in which there will be no import/ export tariffs on goods if they aren’t moved offsite. No duty is paid, if these goods are re-exported, so long as they don’t come into the UK. Similarly, no duty will be paid on imported raw materials if they are processed into a finished product, provided that these aren’t then move to the rest of Britain.

Mike comments

No doubt the businesses involved in taking raw materials, processing them and re-exporting them would have their head office based in a tax haven.

So, who benefits? The UK economy won’t!

See: https://voxpoliticalonline.com/2020/02/12/who-will-profit-from-post-brexit-freeports/

This is exactly the same point made by Private Eye in its latest issue for 21st February to 5th March 2020. In its article, ‘Unsafe Havens’, the Eye says

Given Rishi Sunak’s background in offshore finance, it’s no surprise he will soon be turning parts of the UK into tax havens. Just three days before last week’s promotion, the eager-to-please Sunak launched hi spet policy for freeports around the UK.

He first pushed the plan as a relatively new MP in a 2016 paper for the right-wing Centre of Policy Studies. Now he has his hands on the tax controls and can do whatever it takes to entice major investment in the zones (ie big tax breaks and few questions asked).

At this point, warnings from the EU begin to sound ominous. Although Sunak claimed that freeports, which exempt imports from various taxes and tariffs in great secrecy, weren’t possible within the EU, there are in fact 82 of them. But the EU has found they do far more harm than good. And on the very day Sunak launched his consultation promising to “unleash the potential in our proud historic ports, boosting and regenerating communities across the UK as we level up”, the European Commission was clamping down on freeports yet further, pointing to a “high incidence of corruption, tax evasion, criminal activity”.

Even Sunak innocently asks in his consultation: “In your view, are there any particular tax policies that you think could increase the risk of tax avoidance or tax evasion activity being routed through a freeport?” To which the correct answer is: yes, the freeport policy itself.

I was immediately suspicious of this policy, because it looks like an attempt to copy the Chinese ‘Special Economic Zones’. These are islands of unrestricted capitalism in certain provinces, where there are very low taxes and, I believe, employment rights for workers. They have helped to turn the country into an economic superpower, but the cost is immense. There is massive worker exploitation, and there have been well-publicised cases of employees at various companies, who have committed suicide because of their ill-treatment. So much so that one company responsible for extremely poor working conditions put up suicide nets around one of its factories in order to catch staff trying to end their lives but jumping off. China’s an extremely authoritarian state, but there are rumblings of discontent from its impoverished and exploited workers and human rights activists.

Way back in the late 19th and very early 20th century a nasty term, ‘Chinese slavery’, was applied to conditions like this. Part of the impetus in the formation of the early Labour Party was the fear among British workers that the government was going to force them into similar conditions.

The Chinese shouldn’t have to work in such exploitative environments, and neither should Brits – who include people of Chinese descent, who have been here for generations. This is yet another nasty, exploitative idea from a nasty exploitative party, which feels that the workers, whether White, Black or Asian, should be forced into conditions of near slavery.

While they enjoy the profits funneled through tax havens.