austerity

Book on Austerity as State Violence

The Violence of Austerity, Vickie Cooper and David Whyte, eds. (London: Pluto Press 2017).

Okay, I realise that this isn’t the kind of book most of us would choose to read at Christmas. We’d rather have something a bit more full of seasonal good cheer. I also realise that as it published nearly three years ago in 2017, it’s somewhat dated. But it, and books like it, are needed and still extremely topical now than 14 million people have been duped into electing Old Etonian Tory Boris Johnson.

I found the book in one of the many excellent secondhand bookshops in Cheltenham. I was particularly drawn to it because of its title, and the titles of the chapters it contains. It’s a collection of papers describing the Tories’ attack on the poor, the disabled, the marginalised, the unemployed, homeless and BAME communities, and particularly women of colour, as forms of violence. This isn’t mere hyperbole. The book discusses real instances of violence by the state and its officials, as well as landlords and private corporations and individuals. Mike in his articles on the Tories’ wretched benefits sanctions has argued time and again that this is a form of state violence against the disabled, and that it constitutes genocide through the sheer scale of the deaths it has caused: 130,000 at a conservative estimate. It’s therefore extremely interesting that others attacking and campaigning against austerity share the same view. The blurb for the book runs

Austerity, the government’s response to the aftermath of the financial crisis, continues to devastate contemporary Britain. Thius books brings together campaigners and writers including Danny Dorling, Mary O’Hara and Rizwaan Sabir to show that austerity is a form of systematic violence.

Covering notorious cases of institutional violence, including workfare, fracking and mental health scandals, the book argues that police attacks on the homeless, violent evictions in the rented sector, community violence and cuts to the regulation of the social protection are all being driven by reductions in public sector funding. The result is a shocking exposes of the ways in which austerity policies harm people in Britain.

One of the editors, Vickie Cooper, is a lecturer in Social Policy and Criminology at the Open University, while the other, David Whyte, is professor of Socio-Legal Studies at the University of Liverpool. He is also the editor of How Corrupt Is Britain, another scathing look at the UK under the Tories.

The book’s introduction by the editors is on the violence of austerity. After that it is divided into four sections, each on different aspects of austerity and its maltreatment of the poor.

Part 1, ‘Deadly Welfare’, contains the following chapters

  1. Mental Health and Suicide, by Mary O’Hara
  2. Austerity and Mortality, by Danny Dorling
  3. Welfare Reforms and the Attack on Disabled People, by John Pring
  4. The Violence of Workfare by Jon Burnett and David Whyte
  5. The Multiple Forms of Violence in the Asylum System by Victoria Canning
  6. The Degradation and Humiliation of Young People, by Emma Bond and Simon Hallsworth.

Part II, ‘Poverty Amplification’, has these

7. Child Maltreatment and Child Mortality, by Joanna Mack
8. Hunger and Food Poverty, by Rebecca O’Connell and Laura Hamilton
9. The Deadly Impact of Fuel Poverty, by Ruth London
10. The Violence of the Debtfare State, by David Ellis
11. Women of Colour’s Anti-Austerity Activism, by Akwugo Emejulu and Leah Bassel
12. Dismantling the Irish Peace Process, by Daniel Holder

Part III, ‘State Regulation’, includes

13. Undoing State Protection, by Steve Tombs
14. Health and Safety at the Frontline of Austerity, by Hilda Palmer and David Whyte
15. Environmental Degradation, by Charlotte Burns and Paul Tobin
16. Fracking and State Violence, by Will Jackson, Helen Monk and Joanna Gilmore
17. Domicide, Eviction and Repossession, by Kirsteen Paton and Vickie Cooper
18. Austerity’s Impact on Rough Sleeping and Violence, by Daniel McCulloch.

Part IV, ‘State Control’, has these chapters

19. Legalising the Violence of Austerity, by Robert Knox
20. The Failure to Protect Women in the Criminal Justice System, by Maureen Mansfield and Vickie Cooper
21. Austerity, Violence and Prisons, by Joe Sim
22. Evicting Manchester’s Street Homeless, by Steven Speed
23. Policing Anti-Austerity through the ‘War on Terror’ by Rizwaan Sabir
24. Austerity and the Production of Hate, by Jon Burnett.

These are all subjects that left-wing blogs like Vox Political, Another Angry Voice, Pride’s Purge have all covered and discussed. The last chapter, ‘Austerity and the Production of Hate’, is on a subject that Mike’s discussed several times in Vox Political: the way the Tory press and media justifies the savage attacks on the poor and disabled through stirring up hatred against them. Mike has published several articles on the way Tory propaganda has resulted in vicious attacks on the poor, particularly the homeless.

This violence and campaign of hatred isn’t going to stop after Boris’ victory, and his appeal for healing after the election is just rhetoric. He doesn’t want healing, he wants compliance and complacency. He doesn’t deserve them, and should not be given any, because from now on he and his party will only step up the attacks.

Don’t be taken in by establishment lies. Keep working to get him out!

Workers are Paying for the Bosses' Crisis

Published by Anonymous (not verified) on Mon, 16/12/2019 - 12:56am in

image/jpeg iconfoodbank.jpg

For years now the whole Brexit issue has diverted attention from the declining quality of life experienced by the working class in the aftermath of the financial crash. Now we have an election campaign where Labour and the Conservatives are vying to outdo each other as to how much they will increase state spending in order to end austerity. Labour's plans for a kind of soft nationalisation (a sort of John Lewis employee share scheme, “when the market will allow it”) and Boris' gob shite about the NHS (as the break-up continues) are not going to alter the fact that the working class is paying for capitalism's crisis.

...we don't believe any of the political parties' claims to have the formula for a better life because we know that today's world is the outcome of decades of capitalist crisis: a crisis which will not go away.

CWO-ICT

read more

#RethinkMoney – The Greatest Lie Ever Told (Probably)…#TaxAndSpend

GIMMS is delighted to have permission from blogger Duncan Poundcake to reblog his article which was originally posted here

 

So what have we learned from the General Election of 2019?

Mainly the familiar cry of:

”How will you pay for it?”

”Labour ‘broke the bank”…

”Labour left a note saying  – We have spent all the money”…

Nothing very new in that. We have heard it on a loop for nearly 10 years from many Politicians. Policy Makers, Think Tanks, Economists, The Press and RW influencers, that:

  • For Her Majesty’s Government (HMG) to spend is a very bad thing to do.
  • HMG is at the largesse of the Tax Payer and is unable to spend for public purpose. HMG must either – a: Tax and/or b: Borrow before it spends.

Why?

  • There is an undefined and finite amount of Sterling that can ever be available in the economy.
  • Once this Sterling threshold has been reached, HMG must borrow back this Sterling from the private sector, to fund its spending.

Even Labour, with its £400bn spending bill, tells us; Tax, Borrow and Spend is the order of the day.

Unfortunately, yet again, Labour miss an opportunity and tell us the polar opposite of the reality…

1. The UK has ALWAYS been a Sovereign Fiat Currency Issuer

HMG has ALWAYS been able to create £s at will but there have been numerous times where, by circumstance, or design, it has been limited as to how many Fiat £s it can create.

Since 1971, the UK has been a Sovereign Fiat Currency Issuer, without restriction – In laymans language, HMG:

  • Has the legal monopoly on the creation (Issue) of its OWN currency.
  • Can create (Issue) Sterling at will, from thin air, with zero impedance.
  • Everyone else is a Currency User.

So why does everyone tell you otherwise?

Time to travel in the Monetary TARDIS…

2. A little bit of History repeating – The Gold Standard (Again):

Image by PublicDomainPictures from Pixabay

 

Over much of the 20th Century, the UK, US and other developed nations have been on and off variations of the ‘Gold Standard’.
In stark comparison to the economics of the last 40 years, when the Americans and British created ‘The Gold Exchange Standard in 1944’, their focus was:

  • To avoid trade deals which impoverished lesser trade partners.
  • An attempt to control flows of speculative financial capital.

The latter, in particular, had wrecked the global economy prior to the Great Depression, the outcome of which was seared into their collective memories:

  • A global depression,
  • Mass unemployment.
  • The rise of Fascism in Europe and Communism as a response.
  • Global War.
  • Millions Dead.

Post-War planners aimed to prevent the repetition of previous competitive currency devaluations but engineered not to force debtor nations to reduce their industrial bases to attract financial speculators and keep interest rates high.

British economic sage, John Maynard Keynes…

John Maynard Keynes portrait© National Portrait Gallery, London
Image cropped from John Maynard Keynes, 1st Baron Keynes of Tilton; Lydia Lopokova by Walter Benington, for Elliott & Fry bromide print, 1920s Given by Bassano & Vandyk Studios, 1974 Photographs Collection NPG x90117

again fearful of repeating the mistakes that led to Great Depression and carnage that followed, was the primary mover behind Britain’s proposal that Trade Surplus nations should be forced to use their trade surplus for good, or lose it for good:

  • Either import from debtor nations
  • Build factories in debtor nations
  • Donate to debtor nations.

The U.S. opposed Keynes’ plan and proposed creating the International Monetary Fund (IMF) with enough financial clout to counteract destabilising flows of speculative finance. However, in contrast to the modern IMF, the fund would counteract these speculative flows automatically, no political strings or agendas. An honest broker.

History demonstrates that on almost every point where the USA objected, Keynes was to be proved right.

3. Bretton Woods… 

The U.S. Secretary of the Treasury, Henry Morgenthau, Jr., addresses the delegates to the Bretton Woods Monetary Conference, July 8, 1944The U.S. Secretary of the Treasury, Henry Morgenthau, Jr., addresses the delegates to the Bretton Woods Monetary Conference, July 8, 1944 (Credit: U.S. Office of War Information in the National Archives).

 

In 1944, at Bretton Woods, the Allies met to plan a Post-War world and as a result of the collective conventional wisdom of the time, the Allied nations preferred to do this by regulating a system of fixed exchange rates, indirectly disciplined, by binding the USD to Gold at a fixed price per ounce.
This  system relied on a regulated market economy with:

  • Strict controls on the values of currencies.
  • Flows of speculative international finance would be stopped by channelling them through Central Banks. #Capital Controls
  • The intention being to direct international flows of investment.
  • The focus on using capital to building useful things that created jobs or benefited the public purpose, rather than financial speculation on the markets.

Interestingly, it was US planners who coined the phrase ‘Economic Security’, surmising that a liberal international economic system would enhance post-war peace and keep Communism at bay. This came from a belief, that causes of both World Wars, was ‘Economic Discrimination’ and trade wars. The main culprits being trade and exchange controls of Nazi Germany and the ‘Imperial Preference System’, where members, or former, of the British Empire were given special trade status, resulting in a German, French, and American protectionist policies.

*US Planners were shrewd enough to recognise that to keep Capitalism popular, taxpayers and workers, needed to see a benefit from it and to feel their lives being improved, rather than risk the alternative, Communism. To ensure this, regulated Capitalism was the solution and the irony is, we have the Cold War to thank for this Golden Age.*

In stark contrast to today, Bretton Woods participants agreed that a liberal international economic system ALSO required governmental intervention.

Following the economic turmoil of the 1930s, the management of economies had become the main activity of governments, taking on increasing responsibility for the economic well-being of its citizens. This had proved to be largely successful and popular. Employment, stability, and growth were the order of the day. In turn, the role of government in the national economy would continue. The Welfare State, which grew out of the Great Depression, had created a popular appetite for governmental intervention in the economy, and it was Keynes who made it clear that Government intervention was required to counter market failures.

Enter the era of State Capitalism…

Members of the Gold Standard agreed to closely regulate the production of their currencies to maintain fixed exchange rates, with a bit of wiggle room either side. The express aim being to make international trade easier. This was the foundation of the U.S. vision of a post-war world, Free Trade:

  • Lowering tariffs
  • Maintaining a balance of trade via fixed exchange rates that assists Capitalism.
  • Reduce trade and capital flows.
  • Revive the Gold Standard (Again) using USD as the world’s reserve currency.
  • Prevent Governments messing around with their currency supply, as they had between the wars.
  • Governments would be required to monitor the production of their currency and would refrain from manipulating its price.

4. Tax & Spend & Borrowing…

It is important at this point, to remind ourselves, HMG was still a Fiat Currency issuer but, up until 1971, had voluntarily limited its ability to created its own currency.

So following Bretton Woods, from 1944 until 1971, Gold was ‘Convertible On Demand’ into Sterling. This required HMG to have lots of Gold stashed away at the Bank of England (BoE) just in case anyone wanted to convert their pot of Gold into Sterling. Indeed, once upon a time, you could walk into the Bank of England with Gold and they were obliged to accept it and pay you cash.

Like all liabilities, it was worked out on risk. HMG surmised that only a small percentage of the public would ever demand their gold to be converted into Sterling, at any given time, so it only had to have a limited amount of Gold in reserve, just-in-case. Fractional Gold Reserve Central Banking, if you will.

However, because of the rules of the Gold Standard, HMG Currency Issuing (Spending) would be constrained by the amount of gold in the BoE vault.

The other issue HMG was acutely aware of, was spending Sterling for Public Purpose was in reality, spending the Gold it had in the BoE. The Gold never left the BoE but with a promise of convertibility into £s:

  • Limited how many £s could be spent at any one time
  • How many £s cash could be spent at any one time was…dictated by how much Gold it had in reserve.

So if HMG wanted spend more, it had to:

  • Find more Gold to allow it to create more Fiat £s to
  • Or, recoup Fiat £s from the private sector i.e: TAXPAYERS – BEFORE it could spend more. Welcome to…‘Tax and to Spend’.

Now to protect all that Gold in the BoE from a profligate Government, just creating Fiat £s to spend, they had a few tricks up their sleeve…

How could a Sovereign Currency Issuing Government, such as HMG with a self-imposed brake (The Gold Standard) on how many £s it can create and issue, spend more £s than it was allowed to create?

The Solution?

BORROWING BACK Fiat £s from the taxpayers’ savings – to spend again – rather than creating and issuing additional new Fiat £s, which might exceed the back-up supply of Gold. The plan being:

  • Why not get taxpayers to exchange their £s savings, for Sovereign Gilts, Treasury Bonds OR similar, that pay interest.
  • Taxpayers still get to benefit from the HMGs spending MORE £s each year than it intends to collect back in tax. Thus allowing taxpayers to continue to build their wealth of £s.

ERNIE

*One ingenious demonstration of this, was the infamous ‘ERNIE’, invented by a Bletchley Park codebreaker in 1956 and Premium Bonds, offering taxpayers another way to save outside of banks or building societies. Which of course, was not its main purpose. Premium Bonds were just another way to recoup £ from taxpayers, without actually Taxing. Recycled Money.*

 

And this is exactly how HMG ran Government spending up until the point Richard Nixon suspended US involvement in the Gold Standard in 1971 – due to the spiraling cost of the Vietnam War. US Government spending was outstripping its Gold Supply – and became a Sovereign Fiat Currency Issuer, without restriction.

*As Keynes had predicted in 1944, eventually the USA found itself in the inherent paradox of the Gold Standard:

1. It was required to be the Worlds Reserve Currency and as per the Bretton Woods agreement, keep USD flowing outwards to keep global trade moving.

2. However, this put a restraint on its ability to spend inwards, domestically.

A large percentage of its Gold Reserves had to be set aside to cover outward flows of USDs, restricting  USDs available to be created for domestic Public Purpose – which at the time of Nixon was Johnson’s: ‘The Great Society’ project.

Between 1944 – 1971, the US saw its stash of total world Gold Reserves shrink from 65% to 22%. The market speculated that the US has so many USD out in circulation, it was unable to convert USD to Gold, due to these dwindling Gold Reserves. The dollar depreciated. Inflation went up, employment followed suite and due to the spending spiraling requirements of the Vietnam War, Nixon saw the solution as suspending convertibility to Gold and to go 100% Fiat. No restrictions to USD creation.*   

The Gold Standard was effectively dead. The US now no longer converted USD into Gold and other nations bailed out in 1973. The Gold Standard was officially buried in 1976. The UK followed suit. However, the system for creating and issuing HMG money, DID NOT CHANGE and as I write, in 2019 nearly 50 years later, the Government still operates its finances as if it were on the Gold Standard:

  • So the HMG continues to sell Gilts, Treasury Bonds, Premium Bonds
  • So it can ‘borrow back’ £s from taxpayers
  • To spend MORE than it collected in taxation.

The one upside of this was/is a form of Corporate Welfare exchanging £s for Government IOUs, with the interest received, adding to private savings and wealth.

So we have ended up where the reality of Money Creation since 1971, is that HMG is not revenue constrained when it comes to spending for Public Purpose but continues to use a Monetary system that claims to be still on the Gold Standard.

To reiterate, for clarity, Her Majesty’s Government:

1. Is No Longer on the Gold Standard.

2. Is Not required to convert £s into any commodity to spend.

3. Is Not required to use taxpayers £s to spend.

4. Does not need to borrow or recoup Taxpayers £s savings to spend.

Yet, NO Government since 1971, has changed the from Gold Standard System to reflect the powers of a Fiat Currency Issuer. So HMG continues to tell us that it needs to:

  • Sell Gilts, Treasury Bonds. Premium Bonds, The Lottery etc.
  • Use the proceeds – Taxpayers’ Private Savings & Wealth to allow it to spend more than it collects in Taxes.

Now the rub with this is the interest, or payouts HMG needs to make to holders of these, all of which is added to the National Debt. So to pay for this, the Government needs to issue even MORE Gilts & Treasury Bonds etc. to cover the interest payments. Ad Infinitum…

HOWEVER…

A quick reality check via Quantitative Easing (QE) has shown us, if you are lucky enough to have owned £454bn of Gilts and Corporate Bonds, HMG bought from you, then you have become very rich indeed…unlike HMG which is falling ever deeper into debt.

Which is a complete MYTH and has created 50 years of confusion and a convenient smokescreen for those who see Government as a problem.

Even the BoE concurs: “Read my lips. No new taxes”…Does the Bank of England print money? – YouTube

5. Enter, Stage Right…AUSTERITY:

Now if you believe all this unwittingly, or otherwise, there is a logic in thinking that an ever-increasing National Debt is unsustainable and the ONLY solution is to REDUCE, substantially Government spending and to pay down the debt.

However, knowing that Gold Standard limitations no longer apply, the HMG has created a solution, to a problem that does not exist and ironically, created a further problem to the original one, which never existed in the first place. Think IMF Crisis, 1976.

The National Debt and the convoluted machinations of issuing ‘debt’ and accounting for it, as a brake to stop HMG from issuing more Fiat £s than it could guarantee with Gold, is a relic of history. Some would consider this insistence on clinging onto an economic fossil, to be stupidity, or perhaps a sign of something far more deliberate…

It is of course a legal requirement and not unreasonable, to expect HMG to keep a track of its spending. The much-vaunted DEFICIT:

1. The gap between £s out and £s in.

2. A balance sheet of the Fiat £s HMG has decided to spend into the economy but not redeemed in taxation.

When the HMG spends, this allows taxpayers to keep £s. When the Government reduces spending, this forces taxpayers to use their savings to spend and REDUCES private wealth. The less the Government pays for, the more you have to use your savings and income.

Repeat after me…AUSTERITY REDUCES PRIVATE WEALTH…

Questions to be answered…

1. If HMG fell out of the Gold Standard in 1971…

2. Which resulted in the £ no longer being required to be convertible to Gold…

3. Why do we still account for fiat government spending for public purpose as if we were on the Gold Standard?

4. Is it just welfare for taxpayers to exchange their fiat £s into Government Savings Instruments, that pay interest?

As QE has shown us, HMG Debt Instruments are not distributed equally across all taxpayers but are bought by a wealthy private and corporate elite.

Perhaps the most mind-blowing for taxpayers to get their head around is the ability for HMG to PAY OFF – at ANY TIME – the National Debt by purchasing all Debt Instruments in exchange for Fiat £s. Hello Japan…

So far from being ‘Fiscally Prudent’ by reducing the Deficit and running Government Finances like a household, only spending what is received in Taxation – the real-world outcome is to impoverish taxpayers and their well-being.

6. The solution?

A fundamental shift and an education of all taxpayers and the political establishment, to understand that:

As long as labour and sustainable resources are available, Government Spending is not only a good and positive but absolutely essential for the economy and the democratisation of wealth.

The ONLY limitations HMG has to spending for Public Purpose are:

1. The physical resources available.

2. The labour available.

3. Its own aspirations.

4. The taxpayers’ willingness to learn, deconstruct and the 1% and their cheerleaders across politics, the media and society who have used the confusion around Government Money Creation spending and taxing for the purpose of wealth extraction and power.

History demonstrates that the Tax and Spend myth, has resulted in dire and far-reaching consequences.

Roberts

In 1976, when HMG went to the IMF claiming to have ‘run out of money’ and in return for $2bn, Healey was required to introduce Austerity measures – which were a precursor to the economics of Margaret Thatcher – latterly Neo-Liberalism.

There was an alternative proposed some 3 years before, yet thanks to Wilson, Healy & Callaghan’s refusal to listen to Tony Benn, history unfolded the way it did and Healy capitulated to Hayek and his Neo-Liberals, who have spent the following 42 years capturing the state, media and democracy in the UK – and beyond – for their own benefit.

Oh and by the way, Britain never did go ‘Bust’, no matter what Mr Roberts writes…

 

 

 

 

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The post #RethinkMoney – The Greatest Lie Ever Told (Probably)…#TaxAndSpend appeared first on The Gower Initiative for Modern Money Studies.

This is not a moment to give up; it’s a moment to resist. A moment to educate and rebuild. After the darkness will come the light.

Published by Anonymous (not verified) on Sun, 15/12/2019 - 1:15am in

shelf of books with letters on spines spelling the words Never Stop LearningImage by Gerd Altmann from Pixabay

After a Tory car crash of an election, the British voting public have made their choice. GIMMS will not be analysing the whys and wherefores or laying blame in this MMT lens. That is not our job. Suffice it to say that the team is deeply saddened by the results and its implications for the people of this country who have already suffered greatly at the hands of a government which relentlessly pursued household budget economics at the expense of national well-being. There was no alternative, they said, and the price of that lie has been a heavy one, not just for the vulnerable people who have suffered at the sharp end of cuts but also for our public services and the economy as a whole.

When we set up GIMMS 18 months ago our aims were three-fold; to demonstrate that the dominant economics of our day is deeply flawed, to provide the educational framework to challenge the orthodox narratives of how money works in the real world, and to show that a good economic system should consider the effects of policy as an integral part of its design and not as an afterthought.

Over the last year and more GIMMS has reported and discussed on a weekly basis the latest news using the lens of modern monetary reality. We have aimed, through our weekly blogs, both to relate the human dimension of what happens when governments fail to spend sufficiently to ensure full employment and support the public and social infrastructure upon which the economy relies, and to show how the economic and political ideology successive governments have pursued has left citizens without a voice, disenfranchised and impoverished. Those accounts should shame a rich nation and the politicians who made political choices to pursue austerity. Choices made not because there was a financial imperative to balance the public finances, but to deliver an ideological agenda; an agenda which has created a country of increasingly poverty-stricken citizens, generated huge inequalities in wealth and deliberately sowed division and hate.

The title of last week’s lens asked starkly ‘Which way from here?’ It is to be regretted that the consequences of the last 9 years of austerity were lost in the repetitive ‘Get Brexit done’ election broadcasts which provided the main focus for the Conservative election campaign. It is equally regrettable that the consequences of the Conservative win, whatever the public think they voted for, will be less about reclaiming national sovereignty and more about joining us at the hip to the United States in damaging free trade deals. The confusion remains and the future is even more uncertain.

What should we do next? After the heartache of the last few days and in the run-up to Christmas this is a moment to grieve and a moment to reflect on what has happened and why. But it is definitely not a moment to put our heads under the duvet and await the worst. Our values still stand – our belief that economies work best when they are fairer and more equitable; our determination to address social injustice and the encroaching climate crisis to ensure that there is a future for our children and our grandchildren, is still paramount.

At GIMMS we shall continue our work in educating the nation about how we can pay for our public services, how we can make our economy fairer and more equitable, how we can invest in the future for the benefit of future generations. Nothing has changed and there is still much to do.

Before concluding this last MMT lens of the year and in the light of the objectives which drove the formation of GIMMS we’d like to quote George Monbiot who wrote the day after the election:

 ‘A major part of this resistance, I believe, must be the reclamation of a culture of public learning. Acquiring useful knowledge requires determined study. Yet we have lost the habit of rigorous learning in adulthood, once seen crucial to social justice. This makes us vulnerable to every charlatan who stands for election, and every lie they amplify through the billionaire press and social media.

Those who govern us would love to keep us in ignorance. When they deride the ‘elites’ they don’t mean people like themselves – the rich and powerful. They mean teachers and intellectuals. They are creating an anti-intellectual culture to make people easier to manipulate. Let’s reinvigorate the workers ‘education’ movements. Let’s restore a rich public culture of self-improvement, open to everyone. Knowledge is the most powerful tool in politics.

GIMMS will continue, we hope, to play a part, however small, in reinvigorating that ‘culture of public learning’.

In the meantime, all that remains for us is to thank you all for your support and wish you a peaceful Christmas and New Year wherever you are.  The MMT Lens will return on 10th January, renewed and ready for battle!

 

 

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The post This is not a moment to give up; it’s a moment to resist. A moment to educate and rebuild. After the darkness will come the light. appeared first on The Gower Initiative for Modern Money Studies.

Get Out and Vote Labour for a Better Britain

Published by Anonymous (not verified) on Thu, 12/12/2019 - 8:39pm in

As I’m sure I don’t need to tell anyone, it’s the election today so get out and vote, and vote Labour! This is the opportunity we want to end a decade of Tory austerity and forty years of Thatcherism. During that period vital public services have been privatised, including parts of the NHS. The welfare state is also being destroyed and undermined. 130,000 people at least have died because of austerity. Travel by rail, and electricity and water would all be cheaper if they hadn’t been privatised, and prices needlessly inflated in order to give a dividend to shareholder and exorbitant pay and bonuses to directors. A quarter of a million people, including those in work, now have to rely on food banks to feed themselves thanks to wage freezes and the introduction of zero hours contracts. Employees are being put on ‘self-employed’ contracts so that their bosses don’t have to pay them sick and maternity pay, or give them holidays. And Tory privatisation means that hospital waiting times are getting long and conditions worse in order to prepare for the complete handover of the NHS to private healthcare companies.

We can stop this all today by voting Labour.

Do it!

Rapper Professor Green on Why the Tories Aren’t Getting his Vote

Mike put up this meme on his post about ordinary people’s reactions to BoJob’s comments on Sunday. It’s a quotation from the rapper Professor Green, and it succinctly states what the Tories have done for the ordinary people of this great country: zilch.

Absolutely. They’ve done nothing at all for the ordinary working man and woman, except push them further into poverty and despair. And their policy of austerity is responsible for the deaths of a minimum of 130,000 disabled and unemployed people. Professor Green was widely praised for one of his songs about mental illness as it affects men. There’s a real crisis here, as mental illness hasn’t received the attention it requires. And men especially try to repress their emotions when suffering from depression and try to carry on even they’re unable to cope. The Tories have made a great show of supporting the mentally ill, promising more funding and medical resources. But mental health is still critically underfunded and the provision of resources inadequate. And I don’t see that situation getting better under the Tories, no matter what lies Johnson makes about improving the NHS.

The Tories will continue cutting the NHS and privatising it, opening it up to American private healthcare companies just as Johnson, Fox and Hannam demanded last year when they set up the Institute for Free Trade in 2017. And so long as they are in power, people will be, as Professor Green says, ‘disengaged, disaffected, angry, upset, unhappy and hopeless’.

Which is why the Tories and their collaborators in the media hate Corbyn. He’s given people hope – genuine hope for change that can only come from the election of a properly socialist Labour party and the scrapping of Thatcher’s legacy of neoliberal economics, poverty and despair.

So please vote Labour tomorrow. 

See: https://voxpoliticalonline.com/2019/12/08/see-the-way-people-stop-supporting-boris-johnson-when-they-realise-what-hes-like/

 

Whatever the outcome of this election, we need to start thinking about where our society and economy are going

Published by Anonymous (not verified) on Wed, 11/12/2019 - 10:35pm in

In 1852, the troopship HMS Birkenhead was
wrecked off the South African coast. On board, aside from the soldiers
themselves, were many women and children. With limited lifeboats available, the
decision was made that those women and children should have first priority. At
the time, this was an astonishing decision – the usual rule being “every man
for himself.” And in spite of the huge loss of life in the wreck, the “Birkenhead
Drill” was a game changer – setting a standard that’s still the rule at sea
today.

The UK government, however, has conspicuously
failed to learn from this idea, especially when the economy is, well, at sea.
We’ve now had four decades of “every man for himself”; and when the financial
services sector hit the rocks in 2008, it was more a case of “money and banks
first”, with women and children – and indeed most men – coming a very poor
second.

Come the new year, we will have yet another new government, which will be faced – amongst other things – with the consequences of a decade’s worth of cuts to services that, one way or another, the majority of us rely on. This is despite the fact that the accepted view in macroeconomics always was that public spending cuts during a recession would lead to falling government income, making it impossible to reduce its debt.

Whilst there’s been much talk from most of the parties of a second industrial revolution based on green tech, there’s been remarkably little detail on what it is, how it would be made a reality, when we might see some results, or even exactly what “green” means. There’s even less detail on how to address the ballooning number of people reliant on food banks and other support services – much of it provided by charities instead of the state.

Whilst reliance on food banks is the result of
misguided spending cuts, rather than climate change and global warming, there’s
still a very large elephant in the room: What do the various Party manifestos
on offer suggest we should do about the effects of all that austerity?

The Conservatives, who, along with the Liberal
Democrats, gave us austerity in the first place, seem to have taken a “job done”
approach. Although the NHS and police appear to be in line for additional
resources, there’s no sign of any reversal of cuts to social support or indeed
significant modifications to Universal Credit – both of which make life much
harder for many, and busier for food banks. In other words, there probably
won’t be additional austerity – but we’ll still be stuck with the results of more
than a decade of cuts. Not very helpful.

Meanwhile, the Liberal Democrats appear to have been partying with Cameron and Osborne’s Kool Aid – promising us a budget surplus as a matter of course. Aside from the implications of this for yet more austerity, there is also the question of how they would in short order – as they promise – turn the UK into an exporting powerhouse, like Germany or the Netherlands, to achieve the necessary income. Like the Conservatives, they envision a “green” revolution, but appear equally short on ideas to make it happen. Two thirds of EU member countries currently run a deficit, and ours is one of the largest; but it could be worse if the UK eventually joins the Eurozone. The euro is managed by strict limits on both public deficits and national debt; and from what we’ve seen imposed on Greece, that can result in austerity that would make the UK’s experience look like a walk in the park. So, not much joy on the austerity front from the Lib Dems then, either.

Labour do seem to have at least realised that the damage caused by austerity needs to be reversed, rather than simply slowed or, in some cases, ignored or denied. They, too, see a second industrial revolution based on environmental technologies as the best hope for the UK economy; and their manifesto includes a National Investment Bank, with the resources to help make that happen. Universal Credit would also be scrapped and replaced by a different benefit structure; whilst it’s hard to see how a replacement could actually be worse than Universal Credit, we have still to see what that structure would look like. There is also the promise of an immediate £1.79 per hour increase in the minimum wage, although how much this would help those in parts of London, such as the people served by the Euston Food Bank, is somewhat of a moot point; a 2 bedroom flat in Euston costs at least £2,000 a month to rent, against a national average income of around £30,000 per year – which is why many living there are forced to prioritise rent over food, to avoid becoming homeless.

Whilst Labour offers some hope for those of us
who have been variously referred to as the “squeezed middle”, the “pinched
bottom” or even the “just about making its”, the main debate in the media and
elsewhere is still all about the money – not about what actually needs to be
done. People are still coming a very poor second, to money and banks. So
instead of demanding “where’s the money coming from?” the question we should
really be asking, is “where’s our society and economy going?”

The post Whatever the outcome of this election, we need to start thinking about where our society and economy are going appeared first on The Progressive Economy Forum.

Which way from here? That depends on where we want to go. Our choices now will determine our future.

Sign on a fence with and arrow logo and the word votePhoto via PxHere

We are in the last few days of the election campaign. An election which, without doubt, will be a defining one for the future of this country and possibly even the planet. It will determine whether we carry on with the economic and political status quo or whether we choose a different path towards a socially just and fairer economic system which also addresses as a matter of priority the challenges posed to the future survival of our species.  Growing political unrest caused by the last forty years of market-driven dogma has created huge wealth inequalities and is driving dangerous right-wing populism worldwide.

This might be just a national election, but the world is watching. Where we put our X in the voting booth this time around will be crucial. It matters as never before.

The ancient Greek philosopher Aristotle wrote:

“For the duty of the truly democratic politician is just to see that people are not destitute; for destitution is the cause of deterioration of democracy’

Of course, he lived in a time very different to our own, but he believed that the best form of democracy was one with a more equal income distribution and that greater economic equality would increase the stability of the state and thus that of citizens.

The State has a crucial role to play in serving the public purpose or in other words creating the fundamental frameworks for a healthy society and economy which benefits everyone.  However, for the last forty and more years, economic power has become increasingly concentrated in the hands of a few people. This has been facilitated by successive governments whose policies have been informed by an ideologically based dogma of privatisation, deregulation and an emphasis on ‘sound finance’ which, over the last nine years, has been at the heart of Conservative austerity.

It has also been enabled by politicians who have acted less in the service of the nation and more in the interests of corporations and excessively wealthy people who have influenced government policies in their favour through a network of lobbying and special advisors. Democracy has been undermined by those with the power and wealth to influence politicians and a media which continues to play a huge role in that subversion.

The ideological premise of trickle-down has been that the rich are the wealth creators, that tax cuts encourage investment in the economy and jobs which benefit working people and then, in their turn, brings in taxes to pay for our public services. We have been deceived with the lie trotted out over the years and even during this election campaign by Conservative ministers and even some on the progressive left that our public services are dependent on bringing in tax revenue. When in fact it is quite the reverse.

A healthy economy and all that means, from citizens having access to good education, quality healthcare and a protective welfare system, (not to mention other vital public services or businesses which rely on access to an educated and healthy workforce and the physical infrastructure for their businesses to flourish) depends on a government which has made a political decision to invest sufficiently in that public and social infrastructure to benefit both today’s and tomorrow’s citizens. It does not depend on a government checking on whether there is enough in the public purse to do so.

For well over a year now, GIMMS has charted the consequences of austerity in its MMT blogs. Yet, now we are now witnessing on a daily basis, like never before, its damaging effects on the very foundations of economic and social life.

Economic data published last month showed that the services sector slowed in the last quarter and the manufacturing and construction sectors contracted in November. The economy just avoided recession, with the weakest growth in a decade.  Whilst clearly the uncertainty over Brexit will have played a part, cuts in government spending over the last 9 years will have also played a significant role as businesses lose investment confidence and households tighten their belts due to rising household debt.

A study published by the Office for National Statistics on 5th December 2019 found that whilst Britain’s total wealth grew by 13% between 2016 and 2018, the wealth of the richest 10% increased four times faster than those of the poorest 10%. It also found that the poorest 10% of households had debts three times larger than their assets, compared with the richest 10% who have accumulated a stash of wealth which was 35 times larger than their total debts. The Wealth and Assets Survey carried out by the ONS also showed that in 2018 the top 10% finished up with 45% of national wealth while the poorest 10% held just 2%.

The shocking data underlines the growing wealth divide. A divide between those at the top who barely noticed the 2008 Global Financial Crash (or indeed profited from it) and those on low incomes whose real earnings have barely risen since the crash and who have seen their economic share of productivity decrease over decades. The very people who have paid the real price for austerity have, in fact, suffered a double whammy.  They not only are facing an enormous and increasing burden of household debt (putting huge stress on their finances exacerbated for those on low incomes and in precarious employment), but they are also reaping the consequences of brutal cuts to the public service sector.

Huge inequalities that have arisen as a result of the pursuit of this pernicious market-focused ideology along with a deceitful balanced public accounts narrative have not only driven a steam roller through our public services and vital welfare systems but have also impoverished millions leaving them floundering in insecure and low paid employment.

In the week that the Liberal Democrat leader Jo Swinson apologised for backing the Coalition’s austerity policies during the Coalition years and whose economic spokesman claimed in a speech very recently that they are the only party of ‘sound finance’ (which sounds very much like more of the same), the news has been ever more damning about its consequences for the lives of working people, families, children and the elderly and our public infrastructure.

Shelter’s ‘Generational Homeless’ report found that a child becomes homeless every eight minutes; that’s 183 children losing their homes every day. It found that at least 135,000 children will be living in temporary accommodation on Christmas day.

‘Life in a B&B is horrible. There’s no room to do anything. I’ve been told off … for running in the small corridor. You can’t do much, you can’t play much. I don’t get to play that much. Sometimes me and my little brother Harry fight for the one chair because we both want to sit at the table. I find it really hard to do my homework’ says Will whose family was made homeless and now lives in a single room in a bed and breakfast in Ilford.

A leading charity Action for Children warned this week that some of the youngest children are facing a childhood crisis as almost one million under 10s from low-income families face a bleak Christmas lacking basics such as a heated home, warm winter coat or fresh food.

Research from the charity shows that after a decade of austerity and ongoing problems with universal credit, parents below the breadline are able to spend just £2 a day per child on food and struggle to afford nutritious food which is vital for their health and development.

The Dispatches programme ‘Growing up Poor; Britain’s breadline kids’ which aired on Channel 4 earlier this week exemplified the shocking poverty that exists in one of the wealthiest countries in the world. Children sleeping in their coats in the middle of winter because they can’t afford heating; parents counting the pennies to see if there is enough money to feed the meter; a family living in Cambridge surviving on £5 a day in a wealthy city that houses eight of the 2000 food banks that have been set up across the UK in the last decade to alleviate hunger; and a teenager Danielle who is studying for her GCEs and self-harming housed with her family in a bedsit, with no savings and relying on a local soup kitchen and food bank to survive.

This is happening in 21st century Britain and yet it feels like we are being transported in Dr Who’s Tardis back to the streets of Dickensian times.  Our children are being denied a future by a government which has put balancing the public accounts above the health of the nation, its children who represent the future and the environment upon which they will depend for their survival.

At a hustings last week, the Conservative MP John Whittingdale was applauded by the audience when he claimed that Labour had left the economy in a perilous state and close to bankruptcy. Perpetuating the lie that austerity had been necessary to get the public finances in order, he said that careful economic management by the Conservatives meant that they could now spend on the NHS, policing and education. No acknowledgement was made about the damage that austerity had caused to our public services; those on low incomes and in insecure working; the huge rise in homelessness or the 73% increase in supplies being distributed in the 2000 food banks across the UK; the increasing numbers of hospital admissions for scurvy, vitamin D deficiency and other maladies associated with economy inequality and child food poverty; and no mention of the systemic problems with welfare reforms and the introduction of Universal Credit, along with a punitive assessment system which have led to many deaths.

We must continue to challenge the false assumptions about how modern monetary systems operate and demonstrate to the public that contrary to common belief government spending is not constrained by monetary resources.

Tackling existing and future inequality and saving the planet will not be constrained by the state of the public accounts or the national debt or whether government can raise sufficient tax or borrow on the markets but rather how it will manage the finite resources it has at its disposal to create the public frameworks and infrastructure to sustain a healthy economy and environment.

It is both a moral question about how a civilised nation should behave towards its neighbours near or far and how we organise our societies to create the optimum environment for all to live with dignity and without fear.

It is regrettable that creating fear and hate has been the modus operandi of governments, extreme political movements and the press. Without a fundamental shift in our attitudes we cannot hope to make the radical changes we need to create a fairer society and more importantly to survive.  A challenge to the political and economic status quo is vital if we care about our children’s future and that of many others around the world.

To reiterate the final paragraph in last week’s MMT Lens:

What are we so afraid of? A better future for our children? A more sustainable and fairer economy for all? Indeed, a planet for us to live and breathe on? What is not to like?

 

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The post Which way from here? That depends on where we want to go. Our choices now will determine our future. appeared first on The Gower Initiative for Modern Money Studies.

It’s Hammer Time! Cassetteboy’s Latest Video Against Boris Johnson

Mike put this up on his blog a few days ago, but it’s well worth repeating and publicising. Cassetteboy is another group of fun-filled pranksters like JOE, who produce satirical videos by carefully editing the speeches and actions of the great and not-so-good so that they appear stupid and nonsensical. They’ve done this yet again to our unfunny, murderous Prime Minister, Boris Johnson, to reveal how stupid, cruel and massively unjust his government and its policies are. They’ve edited it so that he’s reciting a description of his failings and injustices to the tune of MC Hammer’s ‘Can’t Touch This’. Which, due to Johnson’s own massive deceitfulness and mendacity, has been changed to the chorus ‘Can’t trust me’.

The video begins with Johnson repeatedly stammering out ‘My, my, my’ and then

‘My Brexit is so hard

Makes you say

“Oh my word.

What about my job security?

Sick pay, healthcare and the economy?”

These are the things

You need to discuss

When I say

“Brexit won’t hurt you much!”

Remember the lies on the side of a bus,

I am a guy who you can’t trust.’

There then appears the caption ‘Sacked by the Times for lying’.

He goes on, singing

‘Can’t trust me.

Then another caption ‘Sacked from the Shadow Cabinet for lying’.

Can’t trust me.

I promised thousands more police

But that’s less than we already cut.

If you trust me you must be off your nut.

I lied to the Queen to get Parliament shut.

I say the Tory party ‘Is the party of prosperity

But not for the 130,000 people killed by our austerity.

Nor for disabled people robbed of money and their dignity.

Or the millions of children our policies

Have left in child poverty.

Are those kids mine? probably not

But I won’t admit how many I’ve got’

Another caption here, ‘Wont admit how many kids he has’.

‘Can’t trust me’.

Then another caption: ‘Lied to the Queen to illegally shut down Parliament’.

‘Can’t trust me’.

‘The planet now is burning at a terrifying rate

And I don’t even turn up to the climate change debate.

And now let me say this, two of my biggest disgraces

Are of course that I’m homophobic and a racist.

Stop. Stammer time.’

The video then moves into footage of Johnson stuttering and stammering away, under which appears another caption, (Affected waffle, disguising genuine lack of preparation, competence and decency).

‘Stop. Stammer time.’

One more thing before this ends,

You don’t judge a man’, and the next voice is that of Donald Trump, completing the sentence, ‘by his friends’.

‘Our standards will fall with a bump as I align us all with Trump,

Allow the NHS to fail and off it to Trump for sale.

It will no longer belong to you though I say

That’s not what we’ll do.

Is that true? Here’s one way of proving if I’m lying

if my lips are moving.

Another caption: ‘Won’t apologist for racist and homophobic comments.’

‘Can’t trust me.’

And then the screen is filled with text showing his various failed and harmful policies.

‘Can’t trust me’.

The richest have tax loopholes

While schools can’t afford loo rolls.

We’ve failed the NHS and left the country in a mess and

To the best to fix it are myself and Rees-Mogg

Is like expecting dog shit to be cleaned up by the dog.’

The video ends with a black screen on which the slogan ‘Vote Boris Out’ is written in white text. There’s then the Cassetteboy jingle, the sound of someone sighing or snoozing, and a final scene of Johnson making a throat-cutting gesture at LBC.

The dialogue’s invented, but everything it says is true.

Vote him out!

Here’s the video.

 

 

 

Ten things to know about the 2019-20 Alberta budget

I’ve just written a ‘top 10’ overview of the recent Alberta budget. Points raised in the post include the following:

-The budget lays out a four-year strategy of spending cuts, letting population growth and inflation do much of the heavy lifting.

-After one accounts for both population growth and inflation, annual provincial spending in Alberta by 2022 is projected to be 16.2% lower than it was last year.

-Alberta remains Canada’s lowest-taxed province. It also remains the only province without a provincial sales tax.

The full blog post can be read here.

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