austerity

Error message

Deprecated function: The each() function is deprecated. This message will be suppressed on further calls in _menu_load_objects() (line 579 of /var/www/drupal-7.x/includes/menu.inc).

Zoom Conversation Tonight Between Rebecca Long Bailey and Grace Blakeley on the Recovery We Really Need

Published by Anonymous (not verified) on Thu, 22/10/2020 - 12:33am in

I meant to put news of this up several days ago. Labour Assembly Against Austerity are hosting a Zoom conversation tonight, Wednesday, October 21, at 7 pm. between Rebecca Long Bailey and Grace Blakeley, who will be discussing The Recovery We Need. Here’s the email I received from them giving the news and details about the event.

‘With the Tories making working people and the poorest pay of their crisis our event this Wednesday is a vital discussion for the movement – We’re therefore writing to ask if you can take 30 seconds to help spread the word by:

  • Retweeting this different tweet here
  • Sharing & inviting friends here
  • And of course registering yourself here


Many thanks and best wishes,
The Arise Volunteer Team.
 

Rebecca Long Bailey & Grace Blakeley in Conversation – The Recovery We Need
THIS Wednesday October 21, 7pm.
Register here // share & invite friends here // retweet here.


Rebecca Long Bailey & Grace Blakeley in conversation on the crisis, the Tories’ wrong priorities, and how we need to invest in our future, with plenty of time for Q&A and in-depth discussion.


Organised by the Labour Assembly Against Austerity in association with ‘Arise – A Festival of Labour’s Left Ideas.’

I’ve registered to see it, as I the Labour grassroots campaign and Labour Against Austerity are just about the only mainstream politicians, who have serious policies that will actually benefit this country and its working people. That’s a proper welfare state, properly funded, nationalised NHS, strong unions, worker’s rights and a mixed economy. It is definitely not more rehashed Thatcherism, that is destroying this country, and has already killed tens, if not thousands, of innocents through poverty due to austerity.

So I’m looking forward to seeing them.

Our choices today will define our humanity and our priorities.

Published by Anonymous (not verified) on Wed, 21/10/2020 - 6:50am in

People packing plastic bags of food at a food bankImage by Joel Munz on Unsplash

Overcoming poverty is not a task of charity, it is an act of justice. Like slavery and apartheid, poverty is not natural. It is manmade and can be overcome and eradicated by the actions of human beings.

Nelson Mandela

The health and well-being of human beings and the planet is still being pitted against an out of control capitalism defined by excessive consumption and unbridled growth compounded by the lie of balanced budgets and future tax burdens.

In this week’s news, the plight of many poor families struggling to feed their children has yet again come into the spotlight, in what has hitherto been one of the richest countries in the world. The increase in poverty and hunger demonstrated over a decade with the growing number of food banks and other charities has been noted on many occasions in previous MMT Lens blogs.

Covid-19 has exacerbated what was already a rising concern and has left many families stressed and under pressure. Back in July whilst Boris Johnson invited people to spend and spend some more, and Rishi Sunak offered his ‘eat out to help out scheme’ financed from the public purse, those already on limited incomes made worse by the current crisis had no such opportunity.

In the same month, the footballer Marcus Rashford raised public awareness of the plight of families struggling to feed their children and ran a successful campaign to force the government to provide funding for school meals during the summer holidays.

Following the government’s rejection of Rashford’s proposal this week to extend free school meals to holiday breaks including Christmas and Easter, he has pledged to continue his campaign.

He tweeted on 15th October:

It’s … not for food banks to feed millions of British children but here we are. 250% increase in food poverty and rising. […] For too long this conversation has been delayed. Child food poverty in the UK is not a result of Covid-19. We must act with urgency to stabilise the households of our vulnerable children.

His stark comments clearly point to government policies which have directly impacted on the lives of some of the poorest people in our communities, prior to and post-Covid and which, in the future, will affect a broader section of the working population as jobs are lost and the economy destabilises.

It has been estimated by the Food Foundation think tank that as many as 900,000 more children have applied for free school meals, adding to 1.4 million who have already claimed. This will most certainly be the tip of the iceberg over the coming months.

The picture that is increasingly emerging as the economy slows and with the prospect of more business closures and redundancies, should be a serious cause for concern in relation to the consequences for families and their children.

Earlier this week Channel 4 News covered a disturbing report about the rise in child poverty in the Midlands and the North of England where it is, according to figures just published, rising the fastest. Magic Breakfast, a national charity which shockingly provides 48,000 breakfasts nationally, says that demand has increased as a result of the pandemic.

With a particular focus on a breakfast club in a Birmingham school which is handing out breakfast parcels to children to take home, the headteacher said some struggling families had been unable to claim free school meals because they were not eligible for social security benefits and that others who had suffered cuts to household income could still not meet the threshold for free school meals. Commenting that school meals cost £45 a month per child which for many was a great deal of money she said that she had had cases where parents had come to the school with their household bills and bank statements to show that they can’t pay.

As the Channel 4 news reporter commented ‘Child poverty shamed Britain even before the pandemic.’

To highlight growing concerns in political circles a former advisor to the government on homelessness warned that the UK faces a ‘period of destitution’ in which ‘families can’t put shoes on children’. Dame Louise Casey indicated that the proposed reduced level of support would compound the problems faced by growing numbers of families. She criticised the government’s claim that its priority was to protect jobs and incomes saying that many people still risked ‘falling into poverty’.

Along with the threat that the uplift to Universal Credit and Working Tax Credit would not be extended beyond April 2020, the prospects for many families is potentially dire as many more people not able to cover essential bills fall into debt, thus putting further strain on their finances.

The question we should be posing is how has this situation arisen and what can be done to alleviate it? The trail leads always back to government.

While the government propaganda machine promotes Rishi Sunak’s generosity from an ivory tower of ministerial plenty and lauds its additional spending, it is in reality, a fraction of what it needs to do to protect citizens. Not just in the coming months but in the coming years, as the fallout from Covid-19 continues to play out on the economy and the lives of those affected not just by the pandemic but by the compounded consequences of years of austerity and employment policies which have allowed incomes and living standards to fall.

Whilst the government is certainly right to suggest that it should not be for schools to provide pupils with food during the school holidays, it has nothing to do, as the government keeps claiming, with its monetary generosity during these last few months (which one can most certainly take issue with).

The policymakers in Westminster have chosen not to acknowledge the impact of the political decisions which have led to this situation in the first place and well before the pandemic hit and indeed have tried to dress them up as successful outcomes.

Yes, we certainly need a long-term plan to combat hunger, but one that does not involve charitable organisations to fill the gap left by a deliberately negligent government or making people feel as if somehow it is their fault for the situation they find themselves in.

We must firmly reject the implied judgement on people who have fallen on bad times, not of their own making. For too long the blame game has allowed the government to divide the nation when the truth of the matter is that it is government itself which has failed citizens through its policy actions and spending decisions.

The cuts to public spending, the devastating consequences of reforms to social security, government’s ideological adherence to employment policies which allow business to exploit working people through controlling wages and insecure working practices have all played a role.

The rise in charitable food banks, community meal provision, homelessness and increasing private indebtedness is symptomatic of a government which has allowed this unnecessary and damaging state of affairs to exist.

The government’s justification for this truly repugnant state of affairs which has led the government to rule out giving more support to workers and businesses hit by this week’s new lockdowns in the north is because it claims it would cost too much. So once again we are in a situation where government ministers cynically use false narratives to explain their decisions.

The Communities secretary Robert Jenrick said earlier this week that the nation is in a ‘deep recession’, that the ‘the national debt is rising’ and therefore the government is limited in what it can do to protect jobs.

Once again this is a clear demonstration of the abdication of government responsibility for employment, social cohesion and economic well-being. People have become a secondary consideration to the corporate interests, politicians serve and benefit from through the revolving door.

It is regrettable, but understandable, that over a decade and more the nation has accepted the presence of food banks and other charitable organisations as an unavoidable and normal feature of British life, as if somehow the government had no other choice but to cut its spending. The public has up until now accepted the narrative that difficult decisions must be made to get the public finances in order.

After the huge rounds of public spending which challenge the ingrained public preconceptions of how the government spends, the shine of these fairy tale narratives is hopefully beginning to wear off – even as Rishi Sunak promises at the Conservatives virtual conference that the government can always be relied upon the ‘balance the books.’

It cannot be emphasised too strongly that the tragedy of hunger and poverty is one that is avoidable. The government could avert it with a simple instruction to the central bank to spend sufficient money into existence to alleviate that hunger and struggle at such a critical time. That it has been a choice not to, should be the point at which we stand up and argue for real change.

And yet, instead, the monetary reality of the government as the monopoly currency issuer is hidden behind a screen of smoke and mirrors which continued this week when the IFS (Institute of Fiscal Studies) suggested that taxes may have to rise at some point in the future given the huge spike in government ‘borrowing’ this year to deal with the economic fallout of the pandemic. Saying clearly and quite rightly that tax increases would be the wrong action at the moment, it then went on to reinforce the message that once the economy had been restored to health  the government would have to get the public finances back on track with a round of ‘fiscal tightening’.

And so, the active and deliberate reinforcement of a lie sets the scene at some time in the future for more unnecessary and damaging punishment which will not, in reality, be linked to whether it is monetarily affordable but the government’s political agenda in creating a flow of public money into private profit and the further destabilisation of public services.

After 10 years of fiscal tightening following the Global Financial Crash which has left our public infrastructure in tatters, have we learned nothing?

While the likes of the IFS and the IMF accept that we need to limit the economic damage caused by the virus and address poverty, unemployment and inequality through higher public spending, they always do so with false ‘borrowing cheaply’ narratives, pumping the belief that we are at the mercy of money lenders and the implication that with the exponential growth of public debt there will be a price to pay … but not quite yet.

Whilst there may be a sea change in economic thought occurring as governments spend to keep economies afloat, it is important that the work to raise public awareness of the real choices governments face continues. These are not linked to balance sheets they are ones related to real resources. In the words of the economist Ellis Winningham ‘, we will always have the ‘money’ to do whatever our real resources will allow us to do.’  That is the only constraint. And the challenge is both to match spending to available resources and determine how those resources will be distributed within the nation and for whose benefit.

Deborah Harrington, a member of GIMMS’ advisory board, also made it absolutely clear this week to those on the left who continue to tout the lie about taxpayers’ money on various social media sites that:

“Covid has demonstrated that the government does not need one penny of taxes to ‘pay for’ what it needs. It has neither raised taxes nor sold bonds to ‘finance’ its spending. The money has been created pure and simple. It wasn’t borrowed and it wasn’t collected in extra taxes – in fact, tax receipts have fallen, obviously, as incomes have dropped.

 

The whole story of tax and borrowing disguises this power at the heart of government. It makes people believe there’s a limited pot to dip into. That to pay Peter you have to rob Paul. It’s the driving argument behind austerity and if you continue to support it as an argument ‘we need tax rises/future generations will pay for it’ then you – yes, YOU, reading this – are giving your support to an agenda that destroys public services and leaves people in poverty and homelessness.

What we build society with and what we create goods and services with is our work. Government simply chooses how much money it will use in any given year to divert those resources, through its taxation and spending policies, to public purposes.”

 Whilst we seem a long way from it at the moment, creating a more equable, fair and environmentally sustainable world should be at the top of the political agenda. The only way of achieving those aims is a long-overdue public conversation about our political, economic and societal priorities, examined within the context of the constraints that exist to deliver them and how the share of finite resources should or could be redistributed to serve the public purpose.

The question always returns to what sort of society do we want to live in? One where excessive wealth in few hands dominates, where charity becomes the norm for delivery of services to a ‘deserving’ population and growth and consumption is the drug which drives the economy?

Or alternatively, a different but better world where people have the wherewithal to live comfortably and sustainably with hope for the future?

 

Join our mailing list

If you would like GIMMS to let you know about news and events, please click to sign up here

Support us

The Gower Initiative for Money Studies is run by volunteers and relies on donations to continue its work. If you would like to donate, please see our donations page here

 

Share

Tweet

Whatsapp

Messenger

Share

Email

reddit

Pinterest

tumblr

Viber icon
Viber

The post Our choices today will define our humanity and our priorities. appeared first on The Gower Initiative for Modern Money Studies.

IMF Seizes on Pandemic to Pave Way for Privatization in 81 Countries

Published by Anonymous (not verified) on Tue, 13/10/2020 - 3:43am in

The enormous economic dislocation caused by the COVID-19 pandemic offers a unique opportunity to fundamentally alter the structure of society, and the International Monetary Fund (IMF) if using the crisis to implement near-permanent austerity measures across the world.

76 of the 91 loans it has negotiated with 81 nations since the beginning of the worldwide pandemic in March have come attached with demands that countries adopt measures such as deep cuts to public services and pensions — measures that will undoubtedly entail privatization, wage freezes or cuts, or the firing of public sector workers like doctors, nurses, teachers and firefighters.

The principal cheerleader for neoliberal austerity measures across the globe for decades, the IMF has recently (quietly) begun admitting that these policies have not worked and generally make problems like poverty, uneven development, and inequality even worse. Furthermore, they have also failed even to bring the promised economic growth that was meant to counteract these negative effects. In 2016, it described its own policies as “oversold” and earlier summed up its experiments in Latin America as “all pain, no gain.” Thus, its own reports explicitly state its policies do not work.

“The IMF has sounded the alarm about a massive spike in inequality in the wake of the pandemic. Yet it is steering countries to pay for pandemic spending by making austerity cuts that will fuel poverty and inequality,” Chema Vera, Interim Executive Director of Oxfam International, said today.

These measures could leave millions of people without access to healthcare or income support while they search for work, and could thwart any hope of sustainable recovery. In taking this approach, the IMF is doing an injustice to its own research. Its head needs to start speaking to its hands.”

Oxfam has identified at least 14 countries that it expects will imminently freeze or cut public sector wages and jobs. Tunisia, for example, has only 13 doctors per 10,000 people. Any cuts to its already scant healthcare system would cripple it in its fight against the coronavirus. “If people can’t afford testing and care for COVID-19 and other health needs, the virus will continue to spread unchecked and more people will die. Out-of-pocket healthcare expenses were a tragedy before the pandemic, and now they are a death sentence,” Vera added.

 

An IMF case study

Ecuador is a perfect example of the consequences of IMF actions. Previously ruled by the radical administration of Rafael Correa, who made poverty reduction a priority, condemned the IMF and its sister organization the World Bank, and gave asylum to Western dissidents like Julian Assange, the country has been ruled by Lenin Moreno since 2017. Moreno immediately began unpicking Correa’s legacy, even attempting to prosecute him. In 2019, on orders from the IMF, Moreno slashed the country’s health budget by 36 percent in exchange for a $4.2 billion loan from the IMF, a move which provoked massive, nationwide protests that threatened to derail his administration.

The results were near-apocalyptic, as the country’s largest city, Guayaquil, became the worldwide hotspot for coronavirus, with bodies left to rot in the streets for days as services were overwhelmed. The city suffered more deaths than New York City at its height, and with far less infrastructure to deal with the problem. While the official number of cases in the country is low, the death rate has been among the highest in the world, suggesting that services have been completely overwhelmed.

Earlier this month, Moreno announced a new $6.5 billion deal with the IMF, who has advised his government to backtrack on emergency increases in health spending, stop cash transfers to those unable to work due to the virus and to cut fuel subsidies for the poor.

 

In crisis, opportunity

The IMF also directly interferes with the internal politics of sovereign nations. In March, it refused to lend to the Venezuelan government because of the “lack of clarity” about who was in charge, suggesting that the democratically-elected Nicolas Maduro would have to step down before they would consider lending to the country. At the same time, however, self-declared president and opposition figure Juan Guaidó announced that he had secured a $1.2 billion commitment from the organization on the proviso that Maduro resigns and allow an “emergency government” to take control of the country. A poll taken in the same month by a sympathetic pollster found that only three percent of Venezuelans backed Guaidó.

In crisis, there is always opportunity. For many, the pandemic is an opportunity to reorient the economy away from mass consumption and towards a more ecologically sustainable system. For the IMF, however, it is being used to push through more privatizations and austerity measures that invariably enrich the wealthy and weaken the poor and the powerless. It appears that, if the organization has its way, that it will be the poor who pay for the pandemic, while the rich prosper.

Feature photo | A demonstrator holds a banner against International Monetary Fund during a protest in Quito, Ecuador, May 18, 2020. Photo | Dolores Ochoa. Editing by MintPress News

Alan MacLeod is a Staff Writer for MintPress News. After completing his PhD in 2017 he published two books: Bad News From Venezuela: Twenty Years of Fake News and Misreporting and Propaganda in the Information Age: Still Manufacturing Consent. He has also contributed to Fairness and Accuracy in ReportingThe GuardianSalonThe GrayzoneJacobin MagazineCommon Dreams the American Herald Tribune and The Canary.

The post IMF Seizes on Pandemic to Pave Way for Privatization in 81 Countries appeared first on MintPress News.

What is the real burden that the government’s “hard choices” will pass on to future generations?

Instead of more political rhetoric and more of the same orthodox solutions dressed up as change, we need radical progressive action to pave the way for a kinder, more equable and sustainable future.

 

Planet Earth in handsImage by Anja from Pixabay

After this crisis, if anybody dares mention a ‘need’ for austerity or tax cuts for ‘wealth creators’ aka useless parasites, or calls for pointless fiscal retrenchment, then ridicule their rank stupidity, economic illiteracy, immorality and their inability to learn simple lessons.’

Phil Armstrong, GIMMS Associate.

 

The debt warriors are continuing their rear-guard action. In the hope that all is not lost in the battle for minds as people get wiser; the battle to keep people believing that the vital extra spending, which has in effect kept the economy afloat, is going to have to be paid for. Sustaining the illusion is vital for their purpose and the people need reminders and nudges to keep them in the dark and demonstrate that the government is fiscally responsible. Where have we heard this before? And look how that ended up. Ten years of punishing austerity and the killing off of our public services in the name of balanced books.

This week, the Conservative MP Harriet Baldwin said on BBC Politics Live.

‘It’s the right time to talk about [balancing the books] because we have to maintain the confidence of the bond market.’ We have a plan to bring the public finances under control’

This little gem suggesting that government is beholden to the bond markets (when it is not) followed Rishi Sunak who said in his conference speech earlier in the week that he had ‘a sacred duty’ to ‘leave the public finances strong’ hinting that there might be tax rises ahead. He continued by saying that ‘If… we argue there is no limit on what we can spend, that we can simply borrow our way out of any hole, what is the point in us?’

Hard choices would have to be made as he pledged to ‘balance the books’. He posited that the public would accept that taxes would have to rise given the size of public spending during the crisis and suggested that the government might have to break some of its manifesto pledges. Wait for it…it’s coming.

The implication is that those billions of pounds borrowed to keep the economy afloat and functioning will have to be paid for and that the burden, if not addressed, will pass to future generations in the form of higher taxes. Keeping the illusion going was further emphasised at the weekend when the government rejected extra support for workers in lockdown areas because ‘the national debt is rising’ and it would cost too much.

So deeply is the ‘tax pays for spending’ narrative embedded in the public consciousness that research published this week by Ipsos Mori suggested that of those responding almost half favoured raising taxes to fund public services in the context of Covid-19 with the most favoured option being a wealth tax for people earning over £500,000.

Still resolutely stuck in the ‘taxes fund spending’ mode, people implicitly understand that somewhere along the line they have lost out, not just personally but in terms of a public infrastructure which Covid has demonstrated is no longer fit for purpose due to cuts. And, quite rightly they want redress, as long as perhaps it’s not them that have to pay. Whilst there is a big difference in approving a concept and actually accepting it as the reality for one’s own pocket, the government is relying on that false narrative for it to get away yet again with murder.

In the light of monetary realities, knowledge of which is increasingly coming into the spotlight and challenging the status quo orthodoxy, in searching for answers the better questions to ask the public might have been:

Do you want the government to spend more on improving our public services in the interests of the nation?  

Do you want to restore those public services to publicly paid, managed and delivered provision?

For the truth is, that these decisions are political ones, not linked to taxes or borrowing or the state of the public finances.

At the other end of the political spectrum, this week on Double Down News Grace Blakely exposed, quite rightly, the increasing horrendous gap in wealth distribution and its damaging effects on society. However, she then went on to suggest that the billionaires should pay the costs.

At a time when the Swiss Bank UBS reported this week that billionaires increased their wealth by more than a quarter at the peak of the crisis when at the same time millions of people were losing their jobs or struggling to get by on furlough schemes and Universal Credit it might seem a just call to ask the extremely wealthy not only to pay what they owe but pay more. After all, over decades, working people have seen their living standards fall, as their share of productivity has ended up in the hands of ever fewer people so it is infuriating to see that the gap between the haves and have nots which was already huge, growing even more rapidly as billionaire’s wealth hits new highs. An increase in the pay of politicians announced late this week (the Tories having already rejected a pay increase for nurses) shows little solidarity with people’s struggles and it must surely start crossing people’s minds that something is seriously awry not just in terms of wealth distribution but also in the way they understand how power works and who pulls the strings.

But it is equally disheartening to note that we have left-wing economists and commentators reinforcing the mantra of ‘tax pays for government spending’ in the daily smoke of mirrors that suggests that state spending is like a household budget and that the solution is to get the filthy rich to pay more.

While our public infrastructure continues to crumble before our eyes and people suffer it’s time for the left to stop talking about getting the rich to pay for it, however much that appeals to a sense of fairness. Only by recognising how government really spends and using that knowledge to propose an alternative vision for the future can we win that battle. If it does not, then any plans that future progressive governments propose will always be constrained by this false narrative.

In the words of Deborah Harrington, who sits on GIMMS advisory board:

‘Billionaires can’t ‘pay for’ the coronavirus crisis. Only governments can. The left should stop promoting the neoliberal theory that we are all dependent on and beholden to the rich for our public services. They are cheering their support for Thatcher, May and all the others who claim the government has ‘no money, only taxpayers’ money’. Tax the rich because they are too rich. Tax the rich because inequality is damaging to a healthy society. Tax the rich because they use their disproportionately accumulated wealth to buy government policy that makes them even richer. Have the courage to say that the extremely wealthy are a drain, not a gain, for society. Stop trying to push the idea that if you could only persuade them to pay their taxes willingly everything would be just fine. Even better, have pre-distribution mechanisms that stop them accumulating so much in the first place.’

The question some might ask is have politicians on any side learned anything? Forty years of economic orthodoxy have left many economies around the world in poor shape and unable to address the crisis. And yet whilst Rishi Sunak considers disingenuously and publicly how he is going to ‘pay for‘ his fiscal injection (to keep the right narrative alive in the public mind) it most certainly will not stop money pouring into the bank balances of private corporations.

And given the Chancellor’s Conference speech it will on the other hand most likely mean that the public sector will once again be squeezed. It is a guise for delivering what they have always intended – to destroy the public sector as publicly funded, managed and delivered infrastructure that serves the public good with no profit motive, through the toxic ideology that business is more efficient. The lie of a so-called small state is smashed by the realities that it increasingly exists to serve global corporate interests.

Whilst government ministers laud their actions and monetary largesse, anyone following media reporting or previous GIMMS blogs will know that the real beneficiaries of public money have been large corporations who have failed to deliver the promised efficiency and worse without public accountability. The prospect of Westminster Plc draws ever nearer.

And the promised levelling up? It will likely be just one more casualty of a wretched economic system, and just more of the typical political rhetoric which politicians are so good at – on both sides.

In the wake of the Chancellor’s speech, the Guardian in its unexpected and timely editorial this week noted ‘it makes no sense to compare personal experience with the economics of a nation’. Quoting the late Labour MP Roy Jenkins who observed correctly that a family budget was not the same as a national budget and said that Margaret Thatcher had traded in ‘lousy economics’, it noted how much of the political economy had been conceded to the right and that the present Labour shadow chancellor still in orthodox mode could not match his ‘unapologetic Keynesianism’.

Sunak’s speech seems indicative of what to expect in the future. Yet more penny-pinching when it comes to our public infrastructure. It suits a carefully crafted narrative to suggest that such spending would bankrupt the economy or burden future taxpayers. A narrative the public continues to buy for now, at least as a reflection of how it believes that government spends.

While our imaginations are still stuck in Mikawber mode, the real threats to the future are being cynically put on the back burner when those threats are the ones that we need to be addressing urgently. It seems that, in political terms, ultimately the quest to balance the books is being made to appear a far more important objective than addressing climate change and politically created and unnecessary inequality. Our planet is to be sacrificed on the pyre of balanced budgets and big business gets to create a greenwashed world in its image – that of profit and greed.

As we watch the fires in South America continue to burn as a result of deforestation to make way for cattle pasture and soy plantations, and the tropical wetlands continue to burn in the Pantanal, a combination of a man-made arson and drought caused by the climate crisis, we need urgently to shift the narrative to one of sustainability and human and planetary health.

This year of environmental disasters – fires, drought, floods and Covid-19 – is a reflection of our failure to act and should be the wakeup call we need. Our leaders, for all their fine words, are complicit in this destruction. Some wilfully and openly ignore the threats, others indulge in ‘environmentally friendly’, rhetoric whilst doing very little, and at the same time global corporations some of the biggest polluters sell us their greenwashing propaganda.

Along with climate change, poverty and inequality continue to rise. It was reported this week by the charity Save the Children that living standards for the UK’s poorest had plunged during the pandemic. It noted that over a third of families on Universal Credit and Child Tax Credits have had to rely on help from charities for food or children’s clothes over the past two months and two-thirds had incurred debt to get by. Half of those surveyed said that they were in rent arrears or behind on household bills. Earlier research carried out by Save the Children and the Joseph Rowntree Foundation in June revealed that 70% of people had cut back on food and other essentials when the pandemic began and the charity warned that the winter will be more difficult for many families as heating and other household costs rise and the prospect of further job losses increase the pressure on overstretched household budgets. With the threat of a cut in Universal Credit next April, the future is looking even more uncertain for some of the poorest people in our communities.

And we cannot ignore the global situation. Save the Children also noted last month in a jointly authored report with UNICEF that the number of children living in multidimensional poverty (access education, healthcare, housing, nutrition, sanitation and water) across the world had soared to around 1.2 billion due to Covid. To put it starkly, an additional 150 million since the pandemic began in early 2020. It also noted that around 45% of children were severely deprived of one of the critical needs mentioned above before the pandemic and that the picture is likely to worsen in the months to come.

While the arguments rage about the size of government, its colossal spending and future tax burdens, the cost of such arguments on human lives and the planet seem of secondary concern as the government continues to pursue its market-driven dogma which is neither free nor fair.

The promised V-shape recovery has not materialised and left prospects bleak for the Covid generation whose employment prospects are quickly vanishing into the mist and threatening their future health, security and livelihoods.

Instead of real jobs with good pay and conditions, Rishi Sunak is offering people ‘job coaches’ to beef up their CVs or training to improve their future job prospects. Never mind that without government intervention in the form of adequate spending and other targeted measures to improve the economic outlook, those jobs will never materialise. Relying on business to find solutions will lead us to a dead end.

Or as earlier this week the Conservative MP Robert Jenrick called for ‘grassroots volunteering and ‘togetherness’. Where was the government when it was telling us austerity was necessary to get the public finances straight as it dismantled our infrastructure and other vital public services? A government that also promoted individualism, greed and selfishness, has overseen huge wealth inequalities and divided our communities. The word ‘togetherness’ doesn’t seem to fit the bill.

Instead of real solutions, the government is offering the usual toxic rhetoric painted as positive proposals for a so-called new normal which aims to consolidate the toxicity, not address it.

At a time when jobs are being lost, GIMMS repeats its question. Why not rebuild our public sector offering good wages and secure employment? Why not introduce a Job Guarantee that provides a living wage, training and good employment conditions to bridge the gap when times get tough and provide a transitional staging post into private sector employment when the economy improves?

Rethinking the sort of society, we would like to live in will be of paramount importance in the coming months. The old model is not fit for purpose and we and the planet deserve something better.

 

 

Upcoming Event

Phil Armstrong in Conversation with Warren Mosler – Online

October 17 @ 17:00 pm – 18:30 pm

GIMMS is delighted to present its second ‘in conversation’ event.

GIMMS’ Associate Member Phil Armstrong whose new book will be published in November (details below) will be talking to Warren Mosler. Warren, who is one of the founding proponents of MMT, has dedicated the last 25 years to bringing that knowledge to a wider audience across the world and authored ‘The Seven Deadly Innocent Frauds of Economic Policy, published in 2010. He also sits on GIMMS advisory board.

Register via Eventbrite

Event recording

Phil Armstrong in Conversation with Bill Mitchell

Bill Mitchell spoke to Bill Mitchell for GIMMS on 27th September 2020.

 

Join our mailing list

If you would like GIMMS to let you know about news and events, please click to sign up here

Support us

The Gower Initiative for Money Studies is run by volunteers and relies on donations to continue its work. If you would like to donate, please see our donations page here

 

Share

Tweet

Whatsapp

Messenger

Share

Email

reddit

Pinterest

tumblr

Viber icon
Viber

The post What is the real burden that the government’s “hard choices” will pass on to future generations? appeared first on The Gower Initiative for Modern Money Studies.

A Lesson from the 1980s Mitterand Government: Labour Needs to Keep to Socialist Values

I used to be a member of the Fabian Society in the 1980s, and still have a few of their pamphlets around. One of those is by the Labour MP Denis MacShane, French Lessons for Labour. This discusses Francois Mitterand’s Socialist Party government which was in office from 1981 to 1986, its positive achievements and failures, and why it lost the 1986. Even after thirty-four years, some of the points made by the pamphlet are still very relevant. And one is particularly so now that Keir Starmer is leader of the Labour party and trying to return it back to Blairite Thatcherism. Because of the reasons MacShane considers Mitterand’s government failed to get re-elected was because they didn’t govern according to traditional socialist values.

This is very clearly argued in the passage ‘The need for socialist values’ in the pamphlet’s final chapter, ‘Conclusion: What Lessons for Labour?’ This runs

The relative failure off the French Socialists to set the economy moving in the right direction or to develop a positive partnership with the unions may be related to their dropping of the ideas and values of socialism soon after the election. By the end of the five years’ government, Socialist ministers were openly saying that their main achievement had been to show that they could alternate with governments of the right. This may be so but it was a major scaling down of ambition and unlikely to mobilise mass support.

Mitterand’s and ministers’ assumptions of the “national” or “above party” mode so quickly after the 1981 election and thereafter until very shortly before the 1986 contest was more than a choice of language. It was a suspension of that part of the socialist project aimed at developing egalitarian values and practices in society. In country that attaches great importance to parole, headed by a Socialist president with an extraordinary command of the language the adoption of the discourse of “modernisation” , “flexibility”, “dynamism” is to dilute the reference to politics with the nostrums of the Wall Street Journal. The qualities listed above may be necessary but to emphasise them to the exclusion of other values that distinguish socialist from conservative governments is a mistake. On all French coins the three words “Liberty”, “Equality” and “Fraternity” are inscribed. They predate Marx but each is an important element of socialist values. Of thee, the concept least applied by Mitterand was equality. Studies of the last Labour Government in Britain also showed that inequalities widened and poverty increased. If a democratic socialist government is to lessen those inequalities then some sense of necessary austerity, some imposition of standards of citizenship will have to take place. There must be some link between sacrifice and equality – that, in addition to economic growth, is perhaps the beginnings of the modern socialist project. The call to equality, the call to sacrifice was not heard clearly throughout the five years of socialist government in France. They began by thinking they could please everyone and ended by being voted out. (pp. 33-4).

I realise that Blair adopted much the same policy when he took office. His government included former Conservative MPs like Chris Patten in a ‘Government Of All the Talents’. His first act in No. 10 was to invited Margaret Thatcher round to visit. He had also managed to get Clause IV, the passage in the Labour Party constitution committing it to nationalisation, dropped earlier in the 1980s. Instead of pursuing traditional socialist policies, Blair claimed his government instead had found a ‘Third Way’. In practice he followed Thatcherite orthodoxy by continuing privatisation, including that of the NHS, and dismantling the welfare state. Blair was intent on winning over swing voters in marginal constituencies and turned away from the party’s traditional working class base. In reward for this, he was supported by the Murdoch press and received donations from big businesses that had previously donated to the Tory party. New Labour stayed in power from 1997 to 2010, so it might be thought that his policy of simply becoming ‘Tory Lite’ is successful. However, Blair lost the support of traditional Labour voters and members. He won with a lower number of votes, I believe, than Jeremy Corbyn had when he lost the 2017 election. It’s been said that by 1997 the public were so sick of the Tories, that Blair simply didn’t need to adopt their policies. He could simply have carried on with the real, socialist, Labour party policies of nationalisation, a mixed economy, publicly owned and properly funded NHS and a welfare state that genuinely supported the sick, unemployed and disabled. Policies that this country desperately needs.

For all Corbyn’s personal unpopularity, created by a vicious, libellous media, his policies – which were and are those of the traditional Labour party – were very popular with the public. But Keir Starmer has turned away from them in order to return to those of Blair. He and his grotty supporters no doubt believe this will win votes and the next election. This will probably not be the case. Blair had the support of the Murdoch press, and the Tories were more unpopular than Labour. Boris’ popularity has massively declined due to his massive incompetence in tackling the Coronavirus and is currently below Starmer’s according to recent polls. But the Labour party is still less popular than the Tories despite the Blairites telling us all that with Corbyn gone, they’d be 20 points or so ahead.

Blair’s government notwithstanding, one of the lessons Mitterand’s government has to teach us on this side of La Manche is that the Labour party needs to govern, and be seen and heard to govern, according to the values of equality and fraternity. And we need to get rid of austerity for ordinary working people. We’ve had nothing but austerity for the past ten years, and the result is nothing but bloated pay rises for the obscenely rich, and starvation and misery for the poor. It’s about time this stopped, and a proper taxation policy imposed on the rich for the benefit of everyone in this great nation.

Standing at a crossroads in time

Published by Anonymous (not verified) on Mon, 05/10/2020 - 3:38am in
‘Democracy is not just a counting up of votes, it is a counting up of actions.’

Howard Zinn
Crossroads signpost with signs saying "possible" and "impossible"Image by Gerd Altmann from Pixabay

Do you remember when Andy Haldane, the Chief Economist at the Bank of England, insisted that Britain was enjoying a ‘V-shaped’ recovery way back in July? Since then much has happened but not a V-shaped recovery and the future is looking pretty bleak. Despite that, Haldane’s concern this week that ‘our pessimism is holding us back’ and that companies hiring and corporate investment were the ‘missing ingredient in the recovery’ leads one to wonder if the Chief Economist is living on a different planet.

The prospect of a rise in unemployment by the end of 2020, less generous government support than hitherto, people saving more than spending and a collapse in business investment would suggest that people are retrenching as a result of lack of confidence. Businesses will not invest while they are unsure whether that investment will repay itself in increased profits and people won’t spend whilst their lives are turned upside down and they have no idea whether they will have a job next week. It seems that Andy Haldane is stuck in some other world that does not exist for the majority of people.

A combination of government policy, cuts to public sector spending over the last 10 years which has left public infrastructure in tatters, combined with the uncertainty caused by Brexit and the final straw of Covid-19 has left the nation in a state of collective inertia wondering what will happen next. Tin hats are the order of the day, not party bunting and champagne. Glasses of confidence are in short supply!

We stand at a crossroads in time and Covid-19 has revealed in stark terms the putrid underbelly of an economic system which has predominated for decades. Rising poverty and inequality, huge social injustice, wealth distribution skewed in favour of those who already have more than sufficient and the ever-present elephant in the room, climate chaos, all the result of a toxic ideology and excessive consumption.

This week the Royal Botanic Gardens of Kew published its fourth report in the ‘State of the World’ series. Professor Antonelli, the Director of Science wrote in its introduction:

Never before has the biosphere, the thin layer of life we call home, been under such intensive and urgent threat. Deforestation rates have soared as we have cleared land to feed ever-more people, global emissions are disrupting the climate system, new pathogens threaten our crops and our health, illegal trade has eradicated entire plant populations, and non-native species are out-competing local floras. Biodiversity is being lost – locally, regionally and globally [……]

We share this planet with millions of other species, many of which existed long before us. Despite the fact that an exploitative view of nature has deep roots in our society, most people today would agree that we have no moral right to obliterate a species – even if it has no immediate benefit to us. Ultimately, the protection of biodiversity needs to embrace our ethical duty of care for this planet as well as our own needs.

Whilst 40% of all the world’s plant species are at risk of extinction according to a report published last month by the UN the world has failed to achieve in full any of the biodiversity targets agreed in Japan in 2010 and indeed this is the second consecutive decade that governments have not done so. The Global Biodiversity Outlook Report offered a convincing and authoritative overview of the state of nature indicating that the natural world is suffering badly.

According to Elizabeth Maruma Mrema, Executive Secretary of the Convention on Biological Diversity, it underlined that ‘humanity stands at a crossroads with regard to the legacy we wish to leave future generations’ and that ‘earth’s living systems as a whole are being compromised. And the more humanity exploits nature in unsustainable ways and undermines its contributions to people, the more we undermine our own well-being security and prosperity’. It outlined the need to shift away from ‘business as usual’ across a range of human activities.

The bottom line is that our own well-being and survival are dependent on rethinking our relationship with nature and each other.

Amidst the disturbing backdrop of the threat to the planet caused by failure to address these serious biodiversity losses and the growing evidence of the consequences of climate change across the world from devastating droughts, fires, storms and flooding, the consequences of government political decisions and spending policies continue to play out daily in people’s lives.

Evidence of both ignorance and wilful conduct by our elected politicians is shocking. Whilst a household budget description of the public finances continues to dominate in political and establishment circles, the potential for addressing the consequences of spending cuts or indeed the serious challenges we face will always curtail any action.

The reverse of the toxic climate coin is the huge wealth inequality and poverty which has done so much damage to economies around the world.

In the UK, as many more people turn to the social security system for support as a result of the ending of the job retention scheme, many will find out first-hand how far from generous those benefits are and have been for those living on lower incomes. The ‘lazy scrounger’ narrative which has done so much harm will increasingly come into the spotlight as the middle-class professionals find themselves relying on state support. The real-life daily realities of many low-income families in precarious employment or subsisting on less than adequate social security payments will begin to emerge to a section of society which has hitherto thought itself immune.

The effects on the economy as incomes have plunged over the last few months, particularly for those in receipt of Universal Credit, will be further highlighted as the redundancies pile up and living standards begin to fall. It will bring into sharp focus the policies which over more than a decade have sought to divide people and create a two-tier society of ‘haves’ and ‘have nots’ on the basis of the lies trotted out regularly that such public and social infrastructure is dependent on a tax/contribution paying nation and that it is the private sector which creates the wealth to allow that to happen.

The argument that contributions paid in relate to a pot of money put aside by the state on our behalf must be knocked on the head and replaced with the real description of how the UK government actually spends. That what is paid out is a political choice determined by an agenda and is unrelated to how much revenue the government has collected. Household budget descriptions of how money works serve only to deliver that pernicious agenda and do not represent monetary reality.

It was depressing, therefore, to hear Labour’s Lucy Powell reinforcing the narrative of affordability when she was asked about Labour’s commitment to the pension triple lock earlier this week. She suggested that it would be dependent on knowing ‘what income you have got coming in and what outgoings you need to make’ and that ‘the single biggest determination of that is the level of employment, and level of growth in our economy’.

Once again, the suggestion is clear; that the government can’t afford to protect the incomes of retired people for whom the state pension is their only source. She, like so many others, makes a false connection between the health of the economy and tax revenue by suggesting that pensions, other benefits or indeed essential public and social infrastructure are dependent on a healthy economy and people paying their tax. It is disheartening that such economic ignorance lives on and the health of the economy is reduced to monetary affordability.

This was again brought sharply into focus this week by a report published by the Labour Women’s Budget Group which called for a universal care service. As has already been previously noted, Covid19 has highlighted the existing inequalities in society and the failure to invest in health and social care which has led to many preventable deaths both before and during the pandemic. In the midst of a climate emergency as the Women’s Budget Group points out, the pandemic has revealed huge cracks in our public and social infrastructure along with wealth disparities and social and racial injustice. The group underlined that business profit and greed has in recent times come before a caring more equal society. It called for reforms to create a caring economy ‘a blueprint for a world where work and care can be shared harmoniously, where the economy is measured in well-being and sustainability’.

These are laudable objectives, but yet again we hear the household budget tropes put forward to justify such action. That it would be a good time to consider a universal care service because interest rates are at historic lows and research has shown that taxpayers would be happy to pay extra. Once again, a constraint is immediately revealed by the suggestion that the limits to spending are monetary. Putting aside for a minute the fact that the constraints are not monetary but related to real resources, there is a better reason to consider such action:

Because a civilised society takes care of its young and elderly.

And far from being unaffordable in monetary terms, the government as the currency issuer can, assuming the real resources are available, make a political choice to invest in the lives of its citizens to improve their lives and ensure a vibrant, healthy sustainable economy.

And whilst tax plays an important role in achieving government policies, not only is tax not required to make such an investment, but also in these difficult days raising them would at this point depress the economy even further and may indeed turn taxpayers against such an expenditure.

Such a care service should not only be paid for from public funds, it should be managed and delivered as a public service and not be in private hands.

If we want a caring and environmentally sustainable economy instead of yet more exploitation no matter how eco-friendly it is presented as, fundamental to that change is a government which puts people’s interests over and above the interests of capital. We need politicians that recognise both the value of a well-educated and trained workforce to address those challenges and the role a Job Guarantee might play to ensure a just transition for those most likely to lose out.

This week, the government announced a package of measures that will allow people to study at college paid for by a national skills fund and a more flexible higher education loan scheme. Reminiscent of New Labour’s ‘Life-Long Learning’ programme, Boris Johnson announced a ‘lifetime skills guarantee’ promising that the government would help people to get the skills they need to navigate this quickly changing world. On the face of it, this is a good plan. However, training and skills in themselves good and positive as they are, are no substitute for actual jobs if, as Warren Mosler has pointed out, you’ve still only got ‘nine bones for 10 dogs’ people will still remain unemployed.

While the government continues to see job creation as a private sector exercise and absolves itself from the responsibility of governing in the interests of the nation as a whole, those jobs won’t be created by a private sector without confidence that their investment will pay a return. That confidence only derives from the actions of government through its policies and spending decisions.

For ideological reasons, the government never mentions job creation in the public sector which is where we sorely need investment. As has been pointed out many times in previous MMT Lens blogs, it could address unemployment through an expansion of the public sector (which has over 10 years been starved of funding and adequate staffing levels) to create a public and social infrastructure that meets the needs of the economy and is fit for purpose. That could be supplemented by a permanent Job Guarantee to manage the cyclical ups and downs of the economy by providing work, training and skills for those who will be most affected by this very different world that is heading our way. It is ironic that this government has cut funding to education and training over the last 10 years making it more difficult for people to gain the skills they and society needs.

Worse, over decades, starting with New Labour, it has also made education a cost to the individual instead of being funded by public money. As if somehow it is only the individual that benefits, when in fact society and the economy gain positively from a well-trained, educated workforce whether in public or private sector employment.

So where do we go from here? Are we asking ourselves the right questions? And are we prepared to make some difficult decisions?

We are at a pivotal moment in history and the future will depend not just on government action but the public willingness to engage in a serious adult conversation. Engaging requires the facts about what is possible and what is not and about the change that is needed to ensure a viable future for humankind. It requires understanding how we have been led down an alley without an exit by those politicians serving the interests of a tiny section of society. Those same politicians and institutions which daily use false narratives to suggest that there is no alternative to more pain in the future if we are to dig ourselves out of the financial hole all this spending is causing.

The only hole we have to dig ourselves out of is the hole that has been created by this false narrative that saving the planet is unaffordable, that the economic crisis caused by Covid-19 has made it even more unaffordable and making people’s quality of life better is far too expensive. Challenging such notions should be top priority. Whilst it remains to be seen whether such a government is on the horizon there is no excuse for inaction. For ourselves and for future generations.

 

 

Upcoming Event

Phil Armstrong in Conversation with Warren Mosler – Online

October 17 @ 17:00 pm – 18:30 pm

GIMMS is delighted to present its second ‘in conversation’ event.

GIMMS’ Associate Member Phil Armstrong whose new book will be published in November (details below) will be talking to Warren Mosler. Warren, who is one of the founding proponents of MMT, has dedicated the last 25 years to bringing that knowledge to a wider audience across the world and authored ‘The Seven Deadly Innocent Frauds of Economic Policy, published in 2010. He also sits on GIMMS advisory board.

Register via Eventbrite

Join our mailing list

If you would like GIMMS to let you know about news and events, please click to sign up here

Support us

The Gower Initiative for Money Studies is run by volunteers and relies on donations to continue its work. If you would like to donate, please see our donations page here

 

Share

Tweet

Whatsapp

Messenger

Share

Email

reddit

Pinterest

tumblr

Viber icon
Viber

The post Standing at a crossroads in time appeared first on The Gower Initiative for Modern Money Studies.

Labour Assembly Against Austerity’s Petition against Rishi Sunak’s Recovery Plan

Published by Anonymous (not verified) on Fri, 25/09/2020 - 11:34pm in

A couple of hours ago I got an email from the Labour Assembly Against Austerity. They are petitioning against Sunak’s support package announced earlier this week on the grounds that it doesn’t go nearly far enough in giving people the help they need. They wrote

‘Urgently Needed – A Plan for the People


Rishi Sunak’s announcement this week was too little, too late, and will not prevent a massive increase in unemployment. We need to fight for every job and we need to fight for an economic plan for the people. As part of this campaigning, over 9000 people have now signed up in support of this plan to fight the Tories and put people first. Please help us get this up to 10,000 by taking 30 seconds to:

  • Retweet it here
  • Share & Like our Facebook video here
  • Add Your Name here

Let’s keep fighting the Tories and for a better future – for people and planet,

The Labour Assembly Against Austerity Volunteer Team.’

The text of the petition runs

A Post-Pandemic Plan for the People – #PeopleBeforeProfit. Add Your Name!The economic crisis we now face is set to be the worst any of us have experienced. We urgently need to transform our economy and society to ensure that people’s jobs, livelihoods and health come before private profit.

DEFEND LIVINGS STANDARDS AND JOBS – INVEST IN OUR FUTURE

The fight to prevent soaring unemployment is paramount. We need to build a movement that demands the Government takes the action needed to create full-employment with well-paid secure jobs for all.
This will need massive, sustained investment in our infrastructure, in council housing, transport, public services, industry and beyond.
We must eradicate financial insecurity through a minimum earnings guarantee at a decent level, ensure Statutory Sick Pay at living wage levels, support for renters, and build a Social Security System that is universal and not punitive.
The crisis has shown we need trade unions more than ever. Greater union rights and freedoms will help end the exploitative zero-hour and precarious contracts that dominate our economy, save jobs and give workers a proper say in their workplace.

REBUILDING TO TACKLE THE CLIMATE CATASTROPHE AND ACHIEVE SOCIAL JUSTICE:

We must rebuild in a way that tackles the existential threat of climate breakdown with ambitious, redistributive policies that put jobs, equality and improving people’s lives first. Research shows £85bn investment in green infrastructure could help create 1.24 million jobs in 2 years.
The state must urgently invest to create high-quality green jobs and technologies through a Green New Deal, providing a just, environmentally sustainable transition of our industries and infrastructure by safeguarding the employment of all.

UNIVERSAL, PUBLICLY-OWNED SERVICES:

Our public services provided the vital support needed during the pandemic. But this crisis also sharply exposed how a decade of austerity and privatisation has left them at breaking point. We need to rebuild them to be the world class services our communities deserve creating hundreds of thousands of socially useful jobs at the same time. Only public ownership and universality will ensure access to our public services.
Our transport system should be integrated and upgraded, with the railways and buses publicly owned and education properly funded and free for all. NHS under-funding, staff shortages and privatisation must end. We urgently need a public, universal social care service.

EQUALITY FOR ALL:

This pandemic has shone a spotlight on the deep structural inequalities in our society. Now is the time for real change. The dismantling of systematic inequality and liberation for all must be at the heart of how we rebuild better.
The Black Lives Matter movement has rightly pushed the structural racism to the top of the political agenda. Real government action, not just words, is now needed.
Women and disabled people have already seen a rolling back of equality gains under the Tories and these risk being further undermined, while LGBT+ people face a reactionary government which is not afraid to use the tactics of divide and rule. We must demand an end to the scapegoating of disabled people on benefits.

If you support it, please go over to their website and sign it, as I’ve done.

The environmental clock is still ticking onwards

Published by Anonymous (not verified) on Sun, 20/09/2020 - 5:25am in
We need a sustainable vision for the future and the political will to deliver it like never before

 

Orange sky over town in California duing 2020 wildfiresView from the top of the Humboldt County Courthouse with smoke from inland and Oregon fires covering the county. National Weather Service, Public Domain

 

“Have we fallen into a mesmerized state that makes us accept as inevitable that which is inferior or detrimental, as though having lost the will or the vision to demand that which is good?”
Rachel Carson, Silent Spring

 

Next month will be the anniversary of the launch of GIMMS and the first MMT Lens blog. In that blog, we covered the Economics of Climate Change following the comprehensive report published by the IPPC (Intergovernmental Panel on Climate Change) which warned that we only had 12 years left to half the worst effects of climate change.

Two years on, the battle to save our planet and ourselves continues, as the loss of biodiversity and human degradation persists. This week has been a depressing reminder that the clock is still ticking whilst many of our leaders still have their heads firmly stuck in the sinking sand.

This year we have witnessed devastating fires across the world. In states across Australia and its territories, the fire season has been unprecedented with an estimated 18 million hectares of fire destroying vast tracts of bush, an area greater than that of the average European country and over five times the size of blazes in the Amazon.

During the first seven months of 2020, more than 13,000 sq. km of Brazilian Amazon has been destroyed according to satellite data analysis. Fires in recent weeks of human origin in the race to expand meat production through vast deforestation have been exacerbated by the worst drought in 50 years.

And in the last few weeks, we have seen the on-going death and destruction wrought by the fires in California, Oregon and Washington states. The weather and warming climate with record temperatures, heatwaves and drought have played an important role in that devastation, as has human behaviour through poor land management and badly planned housing construction.

The consequences for a global environment under huge pressure and human health around the world will be, over time, devastating and has been made much worse by the incipient challenge presented by the Covid-19 pandemic which has both revealed how our behaviour has influenced viral threats and put real resources under severe pressure.

Alessandra Guató, a tribal leader in the Amazon wetlands, said of the destruction in her own backyard:

‘We are part of this nature we live with her day by day and it was all devastated.’

And yet her comment applies not just to the disaster that has befallen the Guató tribe which has left them without food and threatened their livelihoods it is also a warning to us all which we ignore at our peril.

This week, David Attenborough spelt out our potential fate in a sobering programme aired on the BBC ‘Extinction: The Facts’ which follows on from last year’s documentary ‘Climate Change: The Facts’. It focused, in an extremely hard-hitting way, on the existential threat posed by the loss of biodiversity. It showed clearly what that loss and extinction means, not just for the planet, but for the human species. And it demonstrated with icy clarity that human activity is driving that extinction and that we are at a critical point in our history.

David Attenborough’s documentary coincided with the fifth edition of the UN’s Global Biodiversity Outlook Report which noted the importance of biodiversity in addressing climate change and long-term food security. It concluded that action to protect it is essential to prevent future pandemics. Elizabeth Mrema, The Executive Director of the Convention on Biological Diversity said:

As nature degrades… new opportunities emerge for the spread to humans and animals of devastating diseases like this year’s coronavirus. The window of time available is short but the pandemic has also demonstrated that transformative changes are possible when they must be made.’

This is maybe our final wake-up call.

And yet, according to analysis by the RSPB (Royal Society for the Protection of Birds), the UK has failed to reach 17 out of 20 UN biodiversity targets agreed at the Convention on Biological Diversity in Nagoya, Japan in 2010.

Whilst the government claims a better record, Kate Jennings, at the RSPB commented that the government’s assessment was a rose-tinted interpretation with lots of positive rhetoric that was not borne out by action. The report suggested that the UK has gone backwards, and the government’s significant failures include insufficient funding for nature conservation. Jennings said ‘‘we’re fundamentally dependent on nature so God help the lot of us if we don’t make serious headway in the next decade … past performance doesn’t inspire confidence’.

In 2016, the WWF’s Living Planet Report warned that overall global vertebrate populations were on course to decline by an average of 67% from 1970s levels by the end of the decade unless urgent action was taken to reduce humanity’s impacts on species and ecosystems. It called on governments to fast-track action on conservation, climate change and sustainable development. Now, at the end of that decade, little seems to have been achieved despite the political rhetoric. In the words of Mike Davis in an article in the Red Flag, ‘our imaginations can barely encompass the speed or scale of the catastrophe.’ While we stand by and watch in horror, we should remember the dire warning that Mike Barrett from the WWF talking about the 2016 report when he said:

‘Humanity’s misuse of natural resources is threatening habitats, pushing irreplaceable species to the brink and threatening the stability of our climate.’

This week has been an opportunity to reappraise where we are. To examine our behaviour as a human species and to understand the stark reality that saving nature is about saving ourselves. We coexist with nature not apart from it.

It was, therefore, all the more surprising to hear a Cambridge Environmental Economist claim in an interview this week whilst discussing the environmental and biodiversity challenges we face that the reality was that governments were strapped for cash, as if somehow that was an impediment to action.

At the same time, David Cameron, in an updated foreword to his memoirs, suggested in a Daily Mirror article that austerity had ‘fixed the roof when the sun was shining’ adding that ‘Covid-19 was the rainy day we have been saving for’ and that their actions ‘meant that the next but one administration was able to offer an unprecedented package of measures to prop up the economy.’ This seems as usual to be the Tories re-writing history in the face of on-going disaster.

For anyone who knows something about how government really spends, this would be a moment to fall off one’s chair in astonishment, given that the consequences of cutting public spending have been disastrous in terms of the economy, people’s lives and the public and social infrastructure. It has left it barely able to manage the on-going challenges of Covid-19 and is now revealing serious fractures in society caused by economic decline, lack of investment in public infrastructure, low wages, hunger, destitution, and homelessness.

This is not the work of a government whose role should be to serve its nation with sound policies aimed at improving lives and addressing climate change for the benefit of future generations.

The same old tropes about how government action is constrained by lack of cash or the need to balance its public accounts should now be consigned to the dustbin of history. We have watched as the government has found no money shortage to deal with the crisis we are currently going through. We have watched as it has spent like there is no tomorrow on giving contracts to all and sundry with no checks or accountability. Remembering at the same time the same lack of scarcity when the banks needed bailing out in 2008.

At the same time as a means of exercising economic control, it has cynically put the fear of God into the mind of the public that there will be a future price to pay. That in itself should be our wakeup call that government spending is not dictated by the contents of the public purse but by government choice and the need to respond to both the economic, environmental and health threats we are facing.

With that in mind, it is sad to note that a Cambridge environmental economist who ought to know better is not acting as a good advert for his environmental concerns by suggesting that there is nothing to be done because the government is strapped for cash.

It isn’t!

A tweet from 2018 by Stephanie Kelton puts it simply in a few words.

How I imagine the conversation between the last two people on Earth.

“There were plans to save humanity, but they didn’t cost it out’

They should have learned #MMT’.

While we continue to think that cost is more important than saving the planet, we remain stuck in an economic paradigm which puts balancing the public accounts as being more important than a future for our children.

At the same time, with such arguments, we place similar constraints on our ability to ensure that our young people have the education and vital skills to challenge the existing narrative of ‘there is no alternative’ to create a better and more sustainable future and be in themselves a channel for the change we need.

According to the IFS in its 2020 report, state schools have suffered the biggest fall in funding since the 1980s and the promised additional expenditure by the government will not be able to reverse the cuts by 2023 leaving school spending 1% lower than in 2009/10.

This is absurdly the same IFS that whilst reporting on the dire state of our schools due to funding cuts at the same time bemoans the state of our public finances and worries about how government can pay for its huge round of public spending. A clear contradiction in terms.

As Mary Bousted, the joint secretary of the National Education Union, noted ‘It is a historic failure of the nation’s children’. All at a time when the government should be pulling out all the monetary stops to avoid the ensuing catastrophe both environmental and economic in terms of addressing climate change and levelling up society by dealing with the poverty and inequality. It is a bleak reminder of how government choices influence detrimentally the choices of others.

Our politicians, academics, unions and the public are caught in the glare of a toxic ideology which if not swept away will constrain the ability of the human race to build a better, more sustainable future for all.

The government has the means to manage these crises. It has the monetary tools to address climate change, unemployment poverty and inequality within the context of available real resources. It has the tools to implement a just transition towards a fairer, cleaner and more sustainable planet.

As the Reverend Delman Coates observed recently:

‘We must learn to see our government as a tool of empowerment for our communities, and demand it be deployed accordingly.’

It’s up to us to make that change happen.

 

 

Upcoming Event

Phil Armstrong in Conversation with Bill Mitchell – Online

September 27 @ 12:30 pm – 1:30 pm

GIMMS is delighted to present Phil Armstrong in conversation with Bill Mitchell. We invite you to join us for this informal event which we are sure will be both stimulating and insightful.

Register via Eventbrite

Join our mailing list

If you would like GIMMS to let you know about news and events, please click to sign up here

Support us

The Gower Initiative for Money Studies is run by volunteers and relies on donations to continue its work. If you would like to donate, please see our donations page here

 

Share

Tweet

Whatsapp

Messenger

Share

Email

reddit

Pinterest

tumblr

Viber icon
Viber

The post The environmental clock is still ticking onwards appeared first on The Gower Initiative for Modern Money Studies.

What’s the choice?

Do we accept there is no alternative to our rotten economic system or demand something different? Let’s re-examine our values and use our imaginations to redefine how we work and live.

Sign that says "imagine" fixed to a stone wallImage by Belinda Fewings on Unsplash

“We shall deal first with the reluctance of the ‘captains of industry’ to accept government intervention in the matter of employment. Every widening of state activity is looked upon by business with suspicion, but the creation of employment by government spending has a special aspect which makes the opposition particularly intense. Under a laissez-faire system, the level of employment depends to a great extent on the so-called state of confidence. If this deteriorates, private investment declines, which results in a fall of output and employment (both directly and through the secondary effect of the fall in incomes upon consumption and investment).
This gives the capitalists a powerful indirect control over government policy: everything which may shake the state of confidence must be carefully avoided because it would cause an economic crisis. But once the government learns the trick of increasing employment by its own purchases, this powerful controlling device loses its effectiveness. Hence budget deficits necessary to carry out government intervention must be regarded as perilous. The social function of the doctrine of ‘sound finance’ is to make the level of employment dependent on the state of confidence”.

(Michał Kalecki, 1943)

In 2010 Professor Michael Marmot published his independent review (commissioned in 2008 by the then Labour government) ‘Fair Society, Healthy Lives’ in which it was concluded that reducing health inequalities was a ‘matter of fairness and social justice’ and that ‘tackling social inequalities and tackling climate change must go together’. It recommended that reducing them would require action on six policy objectives:

  1. Give every child the best start in life
  2. Enable all children, young people and adults to maximise their capabilities and have control over their lives
  3. Create fair employment and good work for all
  4. Ensure healthy standard of living for all
  5. Create and develop healthy and sustainable places and communities
  6. Strengthen the role and impact of ill-health prevention.

The general election which the Conservatives won was premised on the illusion that Labour had spent too much and that it was necessary to restore the public finances to health. This, we were told, would necessitate a programme of austerity to cut public spending and balance the books. The government spent the next decade doing just that but at huge social cost as, a decade later, the evidence shows.

In February, just before Covid-19 began to take its toll both in lives and on the economy, The Institute of Health Equity published an update to mark 10 years from the 2010 report in which it highlighted the following:

  • People can expect to spend more of their lives in poor health
  • Improvements to life expectancy have stalled and declined for the poorest 10% of women
  • The health gap has grown between wealthy and deprived areas
  • Place matters – living in a deprived area of the North East is worse for your health than living in a similarly deprived area in London, to the extent that life expectancy is nearly five years less.

The comparison between the objectives in the original report and the current situation is stark. As Professor Marmot who is a director of the UCL Institute of Health noted:

‘This damage to the nation’s health need not, have happened … Austerity has taken a significant toll on equity and health, and it is likely to continue to do so. If you ask me if that is the reason for the worsening health picture, I’d say it is highly likely that is responsible for life expectancy flat-lining, people’s health deteriorating and the widening of health inequalities. Poverty has a grip on our nation’s health – it limits the options families have available to live a healthy life. Government health policies that focus on individual behaviours are not effective. Something has gone badly wrong.’

Addressing the Covid-19 pandemic and its on-going consequences has been made much more difficult as a result of the pursuit of unnecessary austerity driven by political aims and not financial necessity. Not only has our public and social infrastructure been devastated, but government policies have wrecked people’s lives – either through punishing social security reforms or wage policies designed to favour the interests of employers over employees. All being enabled by the lie that there was no money

Instead of prioritising the existing health inequalities that the original report revealed, the newly elected government chose, through its spending and employment policies, to purposefully ignore them. It pursued quite a different agenda which has proved to be more about reducing state intervention (with the incorrect narrative of unaffordability) whilst at the same time endlessly promoting the idea of personal responsibility and self-reliance.

Responsibility for the social determinants of health which should lie within the purview of government through its policies to ensure a healthy nation and economy, has thus been shifted downwards to citizens. The social and economic conditions in which people live determine both individual and national health and we have lost sight of the fact that the health of the nation is one of its most important assets. Poverty, poor wages and working conditions, the scourge of unemployment, a social security system unfit for purpose, poor housing, poor food, and a deficient education system are disturbing indicators that something is very wrong and demonstrate very clearly the toxic nature of market-driven policies deriving from neoliberal ideology.

At the same time, as a report published in February for the ONS (Office for National Statistics) ‘Social Capital 2020’ revealed, we are becoming an increasingly fragmented and divided society as trust in government has fallen and our sense of isolation and lack of community belonging has increased having a significantly deleterious effect on social cohesion.

So, when Boris Johnson and his cohorts began talking about levelling up, people began to feel hopeful that the government was beginning to take responsibility as a potential architect for restoring social cohesion through its spending and policy decisions to improve the lives of its citizens and create a society which understands collective obligation.

And yet to date, there has been little sign of government intervention on that score. In fact, the words ‘levelling up’ have yet to go beyond mere words. And indeed, as the debate about how the government’s vast fiscal injection will be paid for only this week, a Conservative MP suggested that the pandemic will make levelling up even harder, once again implying that scarcity of money will, in the end, put the brakes on further government action. It plays to our false understanding of how governments spend and allows the narrative of more taxes or perhaps another round of austerity to be justified.

The plain truth is that as we are increasingly learning government has become the agent of big business rather than the driver of social cohesion and well-being whilst at the same time acting as a cash cow for businesses, all without public accountability. Contracts being dished out left right and centre!

As has been noted in previous blogs the price we are paying is a heavy one. As voluntary organisations step in to bridge the gap whether it is university law students providing legal advice to plug the gap in access to justice, volunteers in the health service to support an overstretched NHS, or indeed those involved in food banks to keep hunger from the door of its many recipients we are being primed by an appeal to our goodwill to accept the idea that there is no alternative since public funds are we are told unavailable.

We are moving towards such goodwill actions becoming indispensable and the societal norm. Only last year the co-founder of Probonoeconomics Andy Haldane suggested that volunteering could help society and provide the NHS with skills which would otherwise cost ‘hundreds of pounds per hour’. At the same time, we have private residential care providers suggesting that robots could take the place of human contact in reducing loneliness amongst residents. When cutting costs and profit becomes the sole driver for human activity it is time to challenge such notions before it is too late.

Volunteering cannot become the default to plug those deliberately created gaps in health and social provision to serve a toxic market-driven ideology. Indeed, it could not fill those gaps adequately in the long term.

The implication that the government is financially embarrassed must be challenged. At every turn, we are treated to household budget narratives to defend government spending policy. And yet whilst the government can find billions for a test and trace service for Covid-19 (outsourced to private companies – Deloitte, Serco and G4S) it cannot find the money for publicly funded and delivered public service provision both at national and local level, a state-backed job guarantee or a basic living wage income to ensure that those who cannot work for any reason can live decently and without fear.

One of the key objectives of the 2010 report from the Institute of Health Equity mentioned at the beginning of this blog was to create fair employment and good work for all.

Good, well-paid employment either in the private or public sector is one of the vital ingredients for overall economic stability and a healthy society. The role of government therefore should be to ensure full employment as a policy objective to create stability both in normal and abnormal economic times such as these.

And yet whilst government continues to grapple with the economic fallout from Covid-19, which is not over by any means, its Chancellor seems to be sticking to his guns on closing the furlough scheme regardless of its implications and is supported by the Bank of England’s chief economist Andy Haldane who has warned against its extension on the basis that such a move would prevent a ‘necessary process of adjustment’ taking place.

On that basis, it would seem that rising unemployment will be in their eyes an acceptable price to pay for this shakeout whilst ignoring its damaging consequences on the economy and the knock-on effects on people’s financial stability and their health. Can we also suppose that it will likely be used to drive a further extension of a low wage, insecure employment economy?

The former Prime Minister, Gordon Brown at the same time has attacked the Bank of England for failing to place sufficient emphasis on job creation. As the architect of the supposed central bank independence he claimed would give it the freedom to control monetary policy. But this was, in reality, a convenient sham – a mechanism to sidestep government’s responsibility as an elected body to deliver economic stability. As Professor Bill Mitchell wrote in 2017 ‘The point is that central banks can never be independent of treasury departments and claims to the contrary were just part of the depoliticization of policy that accompanied neoliberalism’. The central bank is the servant, not the master.

Economic stability is in the hands of government through the policy choices it makes and its spending decisions. It alone has the power, through its currency sovereignty, to ensure full employment. Given the dire predictions for the economy in this obvious time of great change related to the pandemic and also the need to address climate change, we need a government committed to price stability through the implementation of a centrally funded and locally organised job guarantee to guide us through these difficult times. Whilst magic bullets don’t exist, it will be important to avoid a 1930s scenario of mass unemployment and ensure a just transition whilst the great climate change shakeout progresses. We need radical solutions, not next week, next month or next year we need them now.

And yet while Rishi Sunak talks about tax increases to pay for the coronavirus bailouts and the Treasury Committee suggests laying out a road map for the autumn budget for repairing the ‘hole in the public finances’ with a proposal for a temporary abandonment of the triple lock on pensions, the public are once again being primed for bad news. Whilst tax reform should be on the agenda, raising taxes at this juncture would be a foolish path to take which would do nothing to support the economy. And instead of repairing the ‘hole in the public finances’ a monetarily savvy government would be looking to repair the very real holes in the public and social infrastructure it alone has been responsible for over the last 10 years.

With the government we currently have in place, we might be whistling in the wind as it clearly has other objectives and other estates to serve. However, that does not mean that we, as an increasingly informed public through the power of civil movements, cannot force the sort of reset that would benefit ordinary people by redefining the role of government as a servant of the people rather than the rich and powerful global interests which currently influence policy and economic direction.

 

 

Join our mailing list

If you would like GIMMS to let you know about news and events, please click to sign up here

Support us

The Gower Initiative for Money Studies is run by volunteers and relies on donations to continue its work. If you would like to donate, please see our donations page here

 

Share

Tweet

Whatsapp

Messenger

Share

Email

reddit

Pinterest

tumblr

Viber icon
Viber

The post What’s the choice? appeared first on The Gower Initiative for Modern Money Studies.

Is the public purse empty?

The government wants you to believe that the public purse is empty and needs replenishing to set the finances straight. It’s not and it doesn’t. Time to challenge the lie or accept the inevitable economic consequences

 

Word cloud with the words tax, Challenge the lie, taxpayer, deficit, debt, government, prosperity, austerity, ideology, pandemic, Covid-19, coronavirus, treasury, money, spend, wealth,burden and recoveryOver the last few months, GIMMS has focused on the on-going impact of both politically derived austerity and the Covid-19 pandemic on the nation, along with the prospects for the economy in the future. Every week, we have aimed to build a picture of a nation where Covid-19 has revealed the stark nature of the consequences of economic ideology, government policies and spending decisions which have shaped our society over decades which has not only deprived many of economic stability in terms of employment and standards of living, but also skewed the distribution of wealth and resources towards an ever-smaller group of people. At the same time, we have continued to challenge the all-pervasive narrative that government spending is just like our own household budgets.

The two are intimately connected as political ideas and the usual explanation for why the government has to pull in its horns and reduce its spending. And yet in recent months as Rishi Sunak did what was necessary to keep the economy ticking over, bills paid and food on the table, people must surely be asking some difficult questions about why, if there was no money for public services in the 10 years leading up to the pandemic, that suddenly there is no shortage of it. How to explain this to the public? It seems contradictory to what we have been led to believe.

It has been encouraging to see that finally people are beginning to ask questions and that modern monetary realities are being discussed in the public domain. However, it would seem that as soon as a flicker of light at the end of the fiscal tunnel appears, the fiscal hawks get back onto their ideological saddles to keep the lie going that there will, in the end, be a price to pay.

Indeed, this week Philip Booth from the right-wing think tank the Institute of Economic Affairs claimed in an astonishing article in The Telegraph that young people should be just as concerned about rising public debt as climate change. He asked how can a young person be concerned about climate change and then complain about austerity but not be worried about increasing government debt that future generations will have to service?

Aside from the prospect of environmental decay and its human consequences – which surely must be a more pressing problem in terms of humanity’s future – in making an incorrect connection between an ageing population and a reduction in tax revenue, his words are aimed at creating more fear and preparing people in an endless repetition to accept there will be no alternative to tax increases to pay for it. While Mr Booth gets all hot and bothered at the thought of a £2 trillion debt noose which is more than 100% of GDP, he clearly missed the economic history lesson that after the second world war the debt to GDP ratio stood at 248% and yet we managed to build a successful economy alongside the public and social infrastructure that has provided a stable and secure framework for the nation’s overall health, until more recently that is.

Combining this fact with the monetary realities that sovereign currency-issuing governments like the UK’s have to spend first in order to collect any tax at all (which is exactly what the government has been doing even if it hides its action in the smoke and mirrors of ‘borrowing’) it is difficult to understand how in a sluggish or depressed economy such as will be likely maybe for years yet that the IEA would suggest increasing taxation. In an environment where demand is already suppressed as a result of Covid-19, that would be the most irresponsible action depriving working people of more of their income and forcing difficult decisions about their spending priorities – rent, bills, food or indeed discretionary items.

At the same time and in the same article, Paul Johnson from another right-wing think tank the IFS (Institute of Fiscal Studies) warned that the UK will have to compete for scarce finance as other countries run up ever-increasing deficits to fund their own Covid-19 recovery packages. The suggestion that money is scarce is just another distortion of monetary reality and fails to focus on the real challenge that all governments face – that of balancing the economy by matching their spending to available resources. There is no shortage of money, but it suits politicians and institutions to persuade us that there is.

The implication that rising debt poses a long-term threat to prosperity by imposing a debt burden on future taxpayers, or indeed that there is a scarcity of money, is just another irresponsible fear-inducing narrative aimed at restoring the household budget status quo which has suited and served the political, financial and corporate classes for too long. It suggests fear on their part that they are losing their grip and consequently a good time for a continuing challenge!

However, whilst the right-wing are preparing the ground to reinforce their political power, not just monetarily but through continuing with their long-held aim to destroy the last vestiges of democracy and our welfare state, the left-wing and other constituencies continue to shoot themselves in the foot, thus helping the right-wing to maintain the household budget illusions to serve their own interests.

The campaigning body 38 degrees sent a petition email to its supporters this week in which it said:

‘Rumours are swirling that [Rishi Sunak] is considering raising corporation tax to help pay for vital public services. It means companies will have to pay a little bit more tax, to help fund our schools and NHS and get out of this crisis.’

As already noted, this would be exactly the wrong time to increase taxes, but implying that such an action is needed to fund public services is just another example of how the household budget model reigns – not just in the minds of those in the political arena (even though one might question that they know perfectly well how the public money system operates) but also more broadly in the public consciousness, campaign groups included.

Let’s be clear at the risk of repetition: spending precedes taxation, therefore a sovereign, currency-issuing government neither needs to tax to spend or to borrow to cover its deficit. Once the monetary framework is understood, then it becomes clear that all spending decisions are political ones deriving from a political agenda. Who wins or loses out and how we want as a nation to see real resources distributed are the real question we should be asking; not mithering about the state of the public finances – that’s just part of the smoke and mirrors being perpetrated by government to serve their own agenda.

In this week’s Times, it was suggested that Treasury officials were planning to plug the ‘hole’ in the nation’s finances by raising corporation tax. At the same time, the left argues to increase it to pay for public services! As Professor L Randall Wray notes, ‘they compound their confusion – not only do they insist on being wrong about the purpose of taxes, but they also embrace one of the worst ones’. The stakes are high now in terms of the future of the economy so either argument is entirely based on the wrong premise that raising taxes will perform a specific function. However, the left wing’s focus on making the rich pay is as erroneous an argument as raising tax to get the finances back into balance is.

However, returning to the subject of corporation tax for a moment, whilst the government does not need tax to spend, it does need to implement tax reform within the context of creating a fairer distribution of wealth and resources – that being one of the real purposes of taxation.

The Covid-19 pandemic has revealed the already existing inequalities which have deepened over the last few months. Moreover, the economy over decades has been skewed towards benefiting those who are already some of the wealthiest at the expense of working people in terms of standards of living, well-paid employment and good terms and conditions.

George Osborne cut the corporation tax rate to one of the lowest in the world in the belief that wealth trickles down. Lower taxes mean businesses will invest more, employ more staff, increase wages or pass benefits onto customers in lower prices, or so the trickle-down mantra goes. What it does, in reality, is increase profits and any benefits that are accrued are passed directly onto shareholders, thus reinforcing the already existing inequalities.

However, it is important to note that tax reform will be but one of the ways of rebalancing these inequalities and should be combined with:

  • direct government action in the form of increased spending on the public and social infrastructure which supports a healthy economy and
  • a Job Guarantee to bring about a rebalancing of the power structures towards working people whose standards of living have been eroded by decades of wilfully created unemployment to suit the corporations.

In conclusion and with the question hanging in the air as to how this huge injection of public money will be paid for being raised daily, we point to Ari Rabin-Havt’s article in the Jacobin in which he notes that the ‘The government’s pantry isn’t bare – the people’s pantry is bare’ As he concludes:

We cannot simply be satisfied with making policy arguments against austerity and the serial exaggerations of fiscal warriors. We need to wipe from our lexicon their ignorant metaphors that equate government financing with household financing. When they are wielded as part of our policy debate it should be met with pure derision.”

 

 

Join our mailing list

If you would like GIMMS to let you know about news and events, please click to sign up here

Support us

The Gower Initiative for Money Studies is run by volunteers and relies on donations to continue its work. If you would like to donate, please see our donations page here

 

Share

Tweet

Whatsapp

Messenger

Share

Email

reddit

Pinterest

tumblr

Viber icon
Viber

The post Is the public purse empty? appeared first on The Gower Initiative for Modern Money Studies.

Pages