Posts Tagged ‘Wealth Tax’

Vox Political: Real Wages Fall by Ten Per Cent Under Tories

July 30, 2016

Mike also published a piece last week on a report published on Wednesday by the TUC, which found that while wages had grown in real terms across the EU between 2007 and 2015, they had fallen in Britain by 10.4%. The average rise in wages across the EU was 6.7 per cent. In Poland, wages had risen by 23 per cent. In Germany wages rose by nearly 14 per cent, and in France by 10.5 per cent. The only countries across the OECD which suffered a fall in wages were Portugal, Britain and Greece.

Mike’s article has two illustrations – one is a graph showing the rise in real wages in various countries, while another is a meme showing the massive pay rises enjoyed by other, very privileged groups, in Britain. Like Bankers, whose pay has risen by 35%, directors of FTSE 100 companies, 14%, and MPs, whose pay has gone up by 11%.

Mike makes the point that New Labour must share some of the blame for this, as not only was Peter Mandelson and his chums very relaxed about people making money, they were also extremely relaxed about wages stagnating. He makes the point that the crash his the poorest the hardest, and the austerity launched by the Tories has been punishing and impoverishing the poor to bail out the bankers and the rich. He also makes the point that Owen Smith’s solutions are just cosmetic, and won’t do anything without concrete proposals for the redistribution of the extra money gained through the ‘wealth tax’ he proposes.

See the article: http://voxpoliticalonline.com/2016/07/27/real-wages-in-the-uk-have-fallen-by-more-than-10-per-cent-under-tories/

Mike’s right about New Labour being very relaxed about wages stagnating. In fact, wage restraint has been a major part of the neoliberal consensus ever since Maggie Thatcher took power in 1979. Keynsianism tolerated high inflation – and in the 1970s at times the inflation rate in Britain was truly eye-watering – as it was coupled to an expanding economy. Both Labour and the Tories attempted to keep pay rises within certain boundaries nevertheless. Thatcher’s Monetarism was much harder towards inflation. It saw this it as the major obstacle to economic growth, and so demanded that it be ruthlessly cut, even if this meant shedding jobs on a truly massive scale, accompanied by a fall in real wages, and the dismantlement of various welfare programmes. It also meant abandoning the Keynsian commitment, pursued over 40 years, to full employment.

Robin Ramsay in a piece on his ‘News from the Bridge’ column in Lobster, made the point that when he was studying economics at Uni in the 1970s, Monetarism as an economic theory was so poorly regarded by his lecturers that they left it to the undergrads to work out what was wrong with it. Which shows you it was known even then to be totally rubbish and useless. He argues that it was adopted by the Tory party because it gave them a rationale for doing what they wanted to do on other grounds – destroy organised labour, dismantle the welfare state, including the Health Service, and grind the working class into poverty.

Now a number of economists are pointing out that, despite the emphasis by the Tories on wage restraint and very low inflation rates, the economy is not growing. I think Han Joon Chang is one of these in his 23 Things They Don’t Tell You About Capitalism.

The comparison with Greece is particularly chilling. Greece has been ruthlessly punished by the Troika with very harsh austerity policies, partly because the Greeks dared to defy the Eurozone authorities and elected Syriza, a radical anti-austerity party. Counterpunch has attacked the economic despoliation of the country by mainly German banks as a form of economic warfare. Greece was one of the countries that suffered from the effective collapse of the Eurozone. The result has been grinding mass poverty for its people. One recent programme on the country’s plight showed children picking rubbish off dumps to sale, just as they do in Developing Nations. The presenter looked on, aghast, and made the point that he had never seen this before in what was supposed to be a developed, European country.

Is this what New Labour and the Tories have in store for us? One of the books I found in one of the secondhand bookshops in Cheltenham yesterday was about how Britain would have a ‘third world’ economy by 2014. Clearly the book was written a little while ago, and the timing’s out, but nevertheless, the appearance of third world conditions in Britain is a real possibility. There are already 3.7 million people living in ‘food poverty’, and hundreds of thousands facing off poverty only because of food banks. I also remember how this was predicted on a BBC Horizon programme, entitled, ‘Icon Earth’, twenty years ago. The programme was about how the image of the Earth in space, taken from the Moon by the Apollo astronauts, had affected global religious, political and economic perspectives. That image had stimulated people around the world to realise that everyone on Earth shared a common home. One result of this, so the programme claimed, was globalisation. It discussed the growing campaigns against migration from the developing world with an Indian anti-racism activist. She predicted that as globalisation progressed, pockets of the third world would appear in the first.

She’s right. This has happened with Greece, and it is occurring in Britain, thanks to the Tories and New Labour. But unlike Greece, we cannot blame the EU. We never joined the Eurozone, and the deterioration in wages and conditions will occur because of Brexit. The cause of this stagnation ultimately is three and half decades and more of Thatcherism.

Owen Smith Unveils His Policies, but None Are His Own

July 28, 2016

Mike yesterday put up a piece reporting that Owen Smith had finally unveiled 20 policies of his own, with which he hoped to challenged Jeremy Corbyn. They’re all good, as far as they go. The trouble is, none of them are his own. Mike reported that the Corbynistas have already pointed out that they were taken from the Institute of Employment Rights’ Manifesto for Labour Law, which Jeremy Corbyn had already adopted as the basis for future Labour policy last month. Mike quotes the response of the Jeremy Corbyn for Leader Campaign to Smith’s policies, who said that they welcomed Smiff’s support for policies announced in recent months by Jeremy Corbyn and John McDonnell. They pointed out that Smudger’s speech showed that Corbyn did possess true leadership, and that a Labour government led by Jeremy Corbyn would reverse the damage caused by the decline in manufacturing jobs due to the failed economic policies of the last thirty years. Northern communities, hard hit by industrial decline, would be a particular priority, and would be regenerated through economic devolution that would put people and jobs first.

Mike also points out that several of Smudger’s policies are vague. They just appear to be cosmetic, and don’t address the real, underlying problems. Such as his promise to concentrate on ‘equality of outcome, not equality of opportunity’. Mike makes the point that this is so confused as to be almost meaningless. He also makes the point that Smiff’s promise to increase spending on schools and libraries is fine, but he doesn’t promise to end private-sector involvement in schools, or reopen the libraries that have closed. His promise to reinstate the 50p top rate of tax is also cosmetic, and will be attacked as such by the Tories. His promises to reverse the cuts to the capital gains tax, corporation, inheritance tax and his plans to introduce a new wealth tax similarly look cosmetic. They’ll bring more money into the treasury, but he says nothing about how they’ll be spent. As for ‘ending fuel poverty by investing in efficient energy’ – this is notable because he does not promise to renationalise the electricity firms, thus meaning that we’re still going to be paying the foreign owners of our energy companies.

Mike concludes his article with the statement:

Smith makes a big deal of being able to deliver these policies – asking us to accept that Mr Corbyn can’t. How do we know either of those things? We don’t. In fact, it seems unlikely that this list is anything more than a catalogue of empty promises and he’ll go back to right-wing neoliberalism if he gets the chance.

It’s not enough. It’s painting a new face on New Labour. It’s reacting to Jeremy Corbyn.

And perhaps this is the biggest point to be made:

Why have Fake Corbyn when we can simply keep the real Corbyn?

See Mike’s article: http://voxpoliticalonline.com/2016/07/27/20-policy-proposals-from-owen-smith-but-how-many-are-his-own/

This is a very good point. Smudger is reacting to Corbyn, and while it’s welcome that Corbyn’s leadership of the party is forcing Smiff to embrace some left-wing policies, they aren’t as good as the full range of policies articulated by Jeremy Corbyn’s camp. And we have absolutely no guarantee that once in charge of the Labour party, Smiffy will carry out any of his policies. In fact, there’s a lot of evidence to the contrary. Smiff’s a New Labour, neoliberal privatiser. He left a job in the Labour party to work for Pfizer, and then returned to the Labour party. While at Pfizer, he pushed for the privatisation of the NHS. Back in the Labour party, he was part of the unit that maintained good relations with the company and the other private healthcare firms hoping to get a cut of NHS action. When questioned about his connection with Pfizer, Smudger lied about it, claiming that he worked for them before he joined the Labour party, thus hiding the fact that he was already working for the Labour party before he joined them. And while he has said that he doesn’t intend to privatise any more of the NHS, he hasn’t promised to renationalise what has already been sold off.

And his faction, New Labour in the form of Progress and Saving Labour, has a record of appalling mendacity. His rival, Angela Eagle, lied about having a brick thrown through her office window, just as she lied about being abused at a meeting for her sexuality. The anti-Corbyn camp have smeared and libelled decent people, many with a sincere and proud record of anti-racism and opposing anti-Semitism, as anti-Semites. This has included Jews and people of part-Jewish heritage. They have adopted the deceitful strategy of PR companies to try to present themselves as the victims in a concerted campaign to smear and discredit Jeremy Corbyn and his supporters. There was the ‘Eradicate Blairite Scum’ T-shirt, which was devised by a Blairite and her pet PR person. Mike has put up a piece today reporting that the elderly gentleman wearing that claims he was tricked by the two, and feels that he has also been smeared because of it. Then there was the letter by over 40 female Blairite MPs complaining that they had been abused in his name, when there is no evidence that anything of the sort had occurred. Quite apart from the staged heckling of Corbyn himself at a gay rights rally, done by another PR person from Portland, a company owned by Will Straw, the son of Jack Straw.

I also notice that he makes absolutely no proposal to tackle the New Labour and Tory welfare cuts, despite the fact that these have thrust millions into precarity and grinding poverty. The Work Capability Assessment has resulted in at least over a thousand seriously ill people dying after being found ‘fit for work’ by Atos and their successor, Maximus. In some areas, 80 per cent of those told they were fit for work had their judgements overturned on appeal. But the damage inflicted on very many vulnerable people through the stress of these tests is severe. It has made the mental health of nearly 300,000 people worse, sometimes seriously so. He hasn’t promised to end the system of benefit sanctions, despite the hardships and injustice these have caused. The blog ‘Diary of a Food Bank Helper’ has put up numerous cases of those working at the sharp end of poverty in the UK. Kitty S. Jones, Johnny Void and so many others have also put up their accounts of people, who’ve been thrown off benefit for often the flimsiest reasons. Like they’re turned up a few minutes late, because they had to arrange alternative means of getting their children to or from school. Or they were in hospital, and so couldn’t attend the interview. Or some other bullsh*t excuse.

I’m still haunted by some of these stories. Stilloaks on his blog put up the cases of some of the 590 people, who have died of hunger or through their own hands, after having their benefit stopped. This included a young mother, who leaped through an upper storey window, killing herself and her baby. There was an elderly couple, who committed suicide together, because they were starving and had come to the end. One of the accounts, not of a fatality, was of how members of the public came to comfort a young man, who broke down in tears outside the Jobcentre, weeping because they wouldn’t give him any money.

This is the kind of establishment bullying that had people marching in the streets back in the 1930s. It’s the casual abuse by the entitled privileged classes, that inspired the comrades of the National Union of the Unemployed to occupy the Ritz, leaving their patrons aghast because the proles had dared to show up! How dare they!

Some of these account of poverty were read out in parliament. It says everything you need to know about Cameron and IDS that they had a good chuckle about them, live on air. Yep, to the Tories, poverty and desperation are a damned good, jolly joke, provided those affected are just grammar school oik or the hoi polloi from the comprehensives and secondary moderns.

And from Owen Smith and New Labour – silence. Smudger abstained on the Tory welfare cuts. As did Eagle. Mind you, they couldn’t do anything else, as New Labour was responsible for introducing a fair part of the legislation on which they were based. Like the Work Capability Tests.

Giving people a decent wage is an excellent start. But it also needs to be coupled with policies that won’t lead to the starvation of those of on benefits. Smudger isn’t going to tackle this. And so whatever he says or does, he’s still content to see a fair chunk of the 3.7 million trapped in food poverty remain in it.

And then there is the authoritarian mindset behind these antics. Jeremy Corbyn is massively popular with grassroots Labour. And I’m confident that, if his parliamentary party actually bothered to take the trouble to represent their members and constituents, he’d be massively popular too with the electorate. After all, before the Tories shot into a 16 point lead ahead of Labour this week, there were only a single point ahead last week. And this despite all the abuse and smears.

But that’s too much for the Blairites. They can’t stand the idea that the neoliberal policies Tony Blair placed so much faith in as the electoral salvation of the Labour party, actually aren’t. And they definitely don’t see themselves as the ‘servants of the people’, as Andrew Rawnsley ironically titled his book on Blair and his coterie. They see themselves as the leaders, whom the grassroots members should automatically obey. And if they still persist, then they’re a Trotskyite hippy rabble wearing donkey jackets and smelling of patchouli, who should leave the party.

Smudger and his cohorts have an absolute contempt for ordinary people, who are to be sneered at, tricked and deceived. He and they have lied about Jeremy Corbyn. He will lie, and lie flagrantly, once he is in government. He and they cannot and should not be trusted with power. He will not restore the NHS. He will not renationalise the utilities, and he will not renationalise our failing railways. He’s a fake, and the genuinely progressive policies he’s adopted are their to disguise the privatising neoliberal underneath. And once he gets in power, it’s a fair bet that they’ll be forgotten, and he’ll carry on copying Tory policies as before. After all, it’s what Bliar did.