public services

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.

The time has come to talk of many things; of taxing and spending and an economic system that needs mending. 

Protest placard with a picture of the Earth in space and the slogan "One World"Photo by Markus Spiske on Unsplash

In the news, the Prime Minister tells millions of  WASPI women affected by the changes to the state pension age that he couldn’t promise to magic up the money for them despite having found lots in the magic money pot for Tory manifesto pledges; the Home Secretary, Priti Patel, whilst visiting a food bank, claims that the Tory government was not to blame for poverty in the UK and, shifting the blame onto local councils, forgets to mention that central government funding has been cut by nearly 50% since 2010/11.

After 9 years of austerity, the consequences couldn’t be starker for our public and local government services, however, it is UK citizens, families and their children who have borne the distressing costs of cuts to social security benefits, both on their health and financial well-being. It cannot be clearer that the steep cuts to tax credits, child and disability benefits, ESA and Incapacity benefit and housing along with the introduction of Universal Credit have been behind the increases in child malnutrition, food bank use, homelessness and suicide.

The IPPR this week published its report ‘Divided and Connected’ which reveals that the UK is more regionally divided than any comparable advanced economy.

In the same week, the Resolution Foundation published its report ‘The Shifting Shape of Social Security’ It notes in its analysis of the manifestos of the main parties that child poverty is set to continue rising under the Conservative Party’s social security plans, whilst Labour’s £9bn of extra spending would mean 550,000 fewer children in poverty, it would not reverse the effects of the £5bn benefits freeze and could still see more children living in poverty in 2023 than do today. It noted that major policy changes have reduced support for working-age households since 2010 resulting in overall spending in 2023-24 being around £34bn a year lower on current plans than if the 2010 benefit system had remained in place, and that the cuts in support had fallen almost entirely on low-to-middle income working age families. It also noted that the Conservatives’ 2019 manifesto makes no changes to existing policy and as a result child poverty risks reaching a 60-year high of 34%.

Although the conservatives are promising more spending on health and education, it seems clear that they intend to carry along the same policy paths they have followed since they came to power in 2010 which have involved cuts to benefits, conditionality, sanctions and welfare to work. Clearly, they have no intention either of reversing the already implemented cuts or reforms which have done so much damage and left a trail of devastation in many people’s lives. Priti Patel’s remark about who is to blame for poverty is indicative of Tory neoliberal credentials of denying governmental responsibility and passing the buck along to others, whether local government who have been firefighting for lack of funds or indeed shifting the blame onto citizens themselves. Her position has not changed much since 2015 when she said, ‘There is no robust evidence that directly links sanctions and food bank use.”

In the light of the very real consequences on people’s lives of government spending decisions and policies, it is all the more depressing to read the two analyses of the party manifestos by the Resolution Foundation and the IFS which instead of looking at the real effects of government spending policies on the lives of real people, examine them in purely financial terms and arbitrary fiscal rules which as we may now be realising bear no relationship with how money really works.

Hunkered down in household budget explanations, the IFS, rather than considering the spending promises of all three parties from the perspective of potential outcomes for the economy and its citizens, examines them in relation to the prospect of raising taxes or borrowing and the likely impact on the deficit and national debt.  As usual, the question, if not asked directly, is how will the parties pay for their spending plans? When, instead, they should be acknowledging that the real question is how will a future government manage existing resources to meet government goals? This will be the real constraint that any future government will face, however progressive that government may be. The resource balancing act will be key to maintaining spending within the productive capacity of the nation to deliver public purpose.

The Resolution Foundation summed it up depressingly in its conclusion in saying that:

‘The priority that both main parties have placed on credible fiscal frameworks in this campaign is laudable. Such rules are hugely important for the government’s overall economic priorities. In setting out new fiscal rules, it is vital that they provide a clear framework for sustainable public finances, constraining the temptation for policy makers to promise unfunded giveaways.’

Such institutions unsurprisingly have focused on the notion that it is the role of government to balance its budget rather than serving citizens and improving their economic and social well-being. It is regrettable that a recent poll has suggested that many people doubt whether such spending plans are affordable and yet given the reality of the consequences of not spending adequately how could we possibly afford not to?

The nation is now paying the price for politicians pedalling the lie of the last forty years that money is scarce, that there is no such thing as public money and that good government is about fiscal discipline. Even if changing that notion in the public consciousness will take time, in the light of the urgency of the challenges to address climate change and social inequality we need an urgent step change in economic thought on a planetary scale since it is our survival on this planet which is at stake.

This is not, however, a time to make compromises with an economic system which has already done such huge damage. The seeds of an alternative model are already being hijacked by companies cynically promoting their green credentials with one aim in mind: to create more growth to keep the profits rolling. Reducing our plastic use and buying electric cars will scarcely make a dent in the scale of the changes we need to implement. We may have a broad vision, but that now needs to be developed into concrete realities. It may be still a work in progress, but it is a vital one we must not ignore.

This is a time to reimagine the world. A fairer and more sustainable approach to replace the one of endless growth which currently defines our capitalist economic system and puts profit before people and the planet.

Progressives on the left are beginning to initiate a much-needed conversation about what we need to do to reverse the decades of social injustice and challenge the idea that we can maintain the engine of growth on a finite planet.

However, and most regrettably, politicians on the left are still trying to have that conversation stuck in old economic paradigms of how money works. When they are asked how they will pay for these vital programmes the response is always one of tax and spend or borrowing to invest. Raising corporation tax, bringing back the magic money tree from the Cayman Islands, taxing the rich until the pips squeak or borrowing on the markets because interest rates are low. Instead of talking about taxing the wealthy to redistribute wealth by removing their colossal purchasing power and ability to influence politicians, they talk about funding our public services with the proceeds.

Again, on the left some politicians are suggesting that the government is akin to a business and that renationalising transport, our utilities, mail and the NHS will allow the government to plough back the profits back into public services. Yes, we need to end the rip-off of privatisation which has not benefited citizens and has allowed public money to flow into private pockets for profit motives, but let’s not buy into the idea that the government resembles a large corporation with a profit and loss sheet. It doesn’t.

The government is the currency issuer and neither needs to tax nor borrow in order to spend and nor does it need the profits of renationalised industries for us to have public services.  It just needs the political will to deliver them.

The role of government is to create the framework for markets to exist and dictate through legislation how they will function and in whose benefit. It taxes the populace, not to fund its spending but to manage its economic policies, from the redistribution of wealth to expressing public policy and is one of the key tools it can use to manage inflationary or deflationary pressures.

Government not only has the power of the public purse to improve the lives of its citizens it also has the power to legislate to drive its political agenda. All a question of choices which are not dependent on the state of the public accounts. Indeed, not only does it have the power to spend for the public purpose, it has the power to change the rules of the game. For example, it might regulate the financial sector to ensure that when people’s savings of whatever kind are put to work it is done to shift our negative and damaging behaviours towards creating a positive impact on society and our environment instead.

Outcomes are the measure of any government’s success. With the political will it could:

  • create the framework for good quality universal public services provide a social security system which is both not punitive in its functioning but also ensures a decent standard of living for those unable to work through disability, sickness or old age,
  • pay for a just Green transition,
  • offer a Job Guarantee as standard to create price stability and act as an automatic stabiliser for the economy to give people the dignity of proper, well-paid employment when needed.

All of these things are fundamental to the good functioning of society.

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? So, when you hear interviewers berating left-wing politicians (who have not quite made the leap into monetary realities) about how they will pay for their progressive agenda ignore those questions and remember instead that a government’s economic record will be defined by how it serves the nation’s economy as a whole, improves the lives of its citizens and how it uses the resources it has at its disposal to achieve its agenda – not whether it balanced the budget.

 

For more in-depth information about how money really works, you can find all you need on our GIMMS website.

https://gimms.org.uk/

 

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The Three Photographs That Reveal the Real Reason for the Anti-Semitism Smears Against Labour

Mike and the great Jewish anti-racist, anti-Zionist activist Tony Greenstein have both extensively covered and refuted the anti-Semitism smears and witch-hunts against the Labour party. And as Chief Rabbi Ephraim Mirvis published his latest attempt to revive them, they have both put on their blogs a series of posts which very effectively demolish the smears and the Chief Rabbi’s pretence that he’s motivated by a genuine fear for the safety of Britain’s Jews.

Here’s a photo Mike put up on his blog, from a tweet by Mirvis congratulating him on gaining 10 Downing Street.

 

And this image, of Mirvis gurning next to Netanyahu, or, as I’ve heard him described by one Jewish academic, ‘that bastard Netanyahu’, was tweeted by Zoe Zeero.

Her caption reads

With predictable timing, the same week that Labour announces they would no longer continue to sell weapons to Israel and Saudi Arabia, out pops the Tory-donating, Netanyahu-supporting Rabbi to denounce Labour.

In 2015, not that long after the bombardment of Gaza which led to the loss of 2000 Palestinian lives including 500 children, Rabbi Mirvis wrote that ‘Israel would not survive without its weapons.

The rabbi, who used to live in Israel and is personal friend of both Boris Johnson as well as Netanyahu, has frequently defended Israel’s right to bomb Palestinians.

It is then followed by a series of internet addresses supporting her statement.

Here’s the real reason Chief Rabbi Mirvis attacked Jeremy Corbyn and Labour: he’s a TORY (and a racist, it seems)

And Tony Greenstein put up this photo of Marie van der Zyl, the current president of the Board of Deputies of British Jews, personally protesting against Chris Williamson speaking in Brighton.

See: http://azvsas.blogspot.com/2019/11/the-hypocrisy-of-ephraim-mirviss.html

Hold on! Wasn’t she down there protesting because the former Labour MP is a vicious anti-Semite? Well, ostensibly yes. Even though he isn’t a Jew-hater, as Greenstein, Mike, and Williamson’s many supporters, gentile and Jewish, have pointed out. Zyl, and the rest of the Board of Deputies, are Tories to a man and woman. They’re also arch-Zionists. It’s written into the Board’s constitution, so that anti-Zionist or simply Israel-critical Jews aren’t represented.

Mirvis and his predecessor as Chief Rabbi, R. Jonathan Sacks, and the Board and rest of the anti-Semitism smear merchants are Conservatives and ultra-Zionists. They hate and fear Corbyn and his supporters, left-wing, traditional Labour members and supporters like Ken Livingstone, Tony Greenstein, Jackie Walker, Marc Wadsworth, Mike, Martin Odoni and all the others, because they want to overturn four decades of Thatcherism. Four decades of our state industries, including the NHS, being sold off. Four decades of the unions being smashed, the poor, the unemployed and the disabled being demonised and denied proper state support. Four decades of racism against Blacks, Asians and now, most particularly, Muslims. Four decades of workers’ rights being eroded, and exploitative contracts introduced, all in the name of creating a fluid labour market. Four decades of poverty, misery, starvation, despair and death.

All for the profit of the very rich, the corporate giants donors giving money to Tory and New Labour coffers.

And let’s make it very clear: they certainly do not represent all of Britain’s Jews by any stretch of the imagination. I’ve blogged before about how unrepresentative the Chief Rabbinate and the Board are. They only represent the United Synagogue. They don’t represent secular Jews, who don’t attend worship, nor the Orthodox. And they really don’t represent the Haredi Jewish community, who have repeated written letters in support of Corbyn because Corbyn has always been a friend to Jews and defended their interests. In the case of the Haredi community, this was particularly demonstrated when he prevented a historic burial ground from being redeveloped.

David Rosenberg of the Jewish Socialist Group has particularly pointed out that they don’t represent the Jewish poor, Jewish single mothers and other Jewish peeps facing the same issues of poverty, marginalisation and disenfranchisement as the wider British public. They don’t represent the Jews, who work in and support our NHS and public services, or who depend on them for their healthcare and supplies of electricity and water. The ordinary people, who use buses and trains to get to and from work, the shops or school.

Mirvis, van der Zyl and the rest only represent their community’s rich elite. As Tony Greenstein has pointed out, they risk encouraging the very anti-Semitism they claim to condemn by appearing to show that the Jewish community is composed of nothing but rich capitalists determined to stamp out any movement that wishes to empower working people.

Their actions and attitudes conform to the anti-Semitic stereotype the real Jew-haters and Fascists have used to stir up resentment and hatred against the Jewish people.

And as ultra-Zionists, Chief Rabbis Sacks and Mirvis, and van der Zyl and the Board, have followed Israel’s lead in using spurious claims of anti-Semitism as a weapon against legitimate criticism of Israel for its barbarous maltreatment of the Palestinians. The Campaign Against Anti-Semitism and the Jewish Labour Movement were explicitly set up to counter criticism of Israel following its bombardment of Gaza. Corbyn has been attacked and vilified, not because he is a genuine anti-Semite, but because he wants a just peace between Israel and the Palestinians.

As do many Jews and Israelis, who have also been viciously smeared as anti-Semitic and self-hating, by people like Sacks, Mirvis and van der Zyl. 

Don’t be taken in by the Tory lies and ultra-Zionist propaganda. These three pictures show the real motivations behind the anti-Semitism accusations. They also show that the Tories have nothing really left to use against Corbyn and Labour except these fake accusations.

Vote them out, and Corbyn and Labour in! Because Corbyn, unlike the Tories, will make a better Britain and, as the Labour pledges on race and faith shows, he is serious about tackling racism.

And that has always included defending Jews, fighting anti-Semitism and fighting for all the British people’s poor.

£70 Bn Black Hole in Tory Spending Pledges

Published by Anonymous (not verified) on Fri, 29/11/2019 - 3:36am in

Despite all the Tory bluster, as Mike has pointed out Labour’s spending plans are properly costed and have the support of 163 leading economists. They have sent a letter to the Independent stating their support, saying

It seems clear to us that the Labour party has not only understood the deep problems we face, but has devised serious proposals for dealing with them.

We believe it deserves to form the next government.

Labour spending plans are backed by leading economists

The Tories, however, have always claimed that they are the party of proper fiscal responsibility, who truly understand economics. In contrast to profligate, spendthrift Labour, they can be trusted with wise, frugal expenditure.

So how do their manifesto pledges stand up?

Not well. According to an article in Tuesday’s I, they’ve got a black hole to the tune of £ 70 bn in theirs.

The article by Hugo Gye reads

The Conservatives face a £70bn black hole in their spending plans after making a string of manifesto promises without explaining how to pay for them.

Boris Johnson has pledged to build dozens of hospitals, create a new rail network and set up a hi-tech “gigafactory” to make electric cars. He is also promising national insurance cuts, a new system of social care and relief for indebted students. None of his policies is costed in the party manifesto revealed on Sunday. They add up to £52.2bn in added capital investment, and an extra £20.6bn on the annual bill for day-to-day spending, according to figures calculated by I.

The Conservative manifesto proposed a rise in day-to-day spending of £2.9 bn as well as £3.6bn in tax cuts. But it also contained a number of policies with no price tag attached.

The biggest is Northern Powerhouse Rail, a new network linking Liverpool to Hull via Manchester and Leeds, which will cost £39 bhn. Other promised capital projects not costed by the manifesto include building 40 new hospitals and the construction of a gigafactory to make eco-friendly vehicles.

Tory sources said future investment plans would be funded by a £100 bn pot of capital expenditure, only £22 bn of which has so far been allocated to specific projects. The shadow Chancellor John McDonnell said, “With no evidence behind any of their figures, it looks like the Conservatives’ fake news approach applies to their manifesto too.”

The deputy Liberal Democrat leader, Ed Davey, added: “Boris Johnson’s relationship with numbers has all the hallmarks of his relationship with the truth – nonexistent.”

That’s precisely how it seems to me.

The fact that these pledges are not costed suggests very strongly to me that, like his promise to build 40 new hospitals, they’re lies. The Tories have no intention of honouring them. They’re only interested in slashing welfare spending and privatising the NHS and anything else they can get their hands on for the benefit of their rich corporate donors, Donald Trump and the American private healthcare industry, and the hedge funds. And they are going to wreck this country to do so.

Don’t be fooled by them. Labour really stands for restoring the welfare state, public infrastructure and the NHS. And it’s all properly costed.

They are the party of economic sense. Not the loony, lying Tories.

Sad Ultra-Zionist Actress Claims to Have Left Labour Party Again

The election’s on, the Tories are clearly scared of Corbyn, as they’re lying and publishing fake news, and almost inevitably, they’re trying to revive the old anti-Semitism smears. According to Zelo Street, the Scum’s deputy political editor, Matt Dathan, published a piece claiming that ‘life-long Labour supporter’ Maureen Lipman has left the Labour party. Apparently she’s recorded a mock version of her adverts for BT, in which she attacks the Labour leader’s economic plans and accuses him of having an ‘ology’ in extremism. This isn’t news. Lipman left the Labour party way back in 2014 when its leader was Ed Miliband. Who was Jewish. She was furious at his backing for a symbolic vote in the Commons recognising Palestine as a state.

Tom London, who is Jewish, tweeted back a reply to Dathan putting him right:

“I remember Maureen Lipman very publicly protesting and leaving the Labour Party when it was led by (the Jewish) Ed Miliband, in protest over his policy on Israel/Palestine. This policy reflected Miliband’s absolutely proper concern for Palestinian human rights”.

Socialist Voice also reminded people how she had left the Labour party back then under Miliband, who was also himself the victim of anti-Semitic attacks in the Tory press.

And the tweeter Darius Faruz also pointed Lipman’s double standards in her attacks on Labour, while she was silent about the greater amount of racism rampant in the Tories:

“Maureen Lipman stays SILENT on the greater levels of antisemitism in the Tory party? Silent on the Conservative party of #Windrush, dog whistle racism … Silent on Johnson’s Islamophobia – letterbox / bank robbers, watermelon smiles, picaninnies”.

But she had the support of Mike Gapes, Michael Gove, the mainstream media and the Scum. Almost like the latter three were all connected, as another tweeter pointedly observed.

See: https://zelo-street.blogspot.com/2019/11/maureen-lipman-leaves-labour-again.html

There was a time when I liked and admired Maureen Lipman. She’s an extremely talented comic actor, and I’ve enjoyed her performances about another great British actor and comedian, Joyce Grenfell. But here she shows real moral squalor. She left the Labour party when Miliband moved slightly further left than the old Blair and Brown regime. Which means she’s quite happy seeing Britain’s public services delivering poor service in order to boost the profits of the private companies that own them. She’s quite happy to see the NHS, schools and colleges privatised, with students lumbered with crippling debt. With increasing numbers becoming homeless and house prices at unaffordable levels to create a ‘generation rent’. With wages so low the majority of people using food banks are actually in work. And a brutal sanctions regime that has seen tens, if not hundreds of thousands of people thrown into despair and poverty, because they’ve been declared ‘fit for work’ when they are anything but, or the Jobcentre decided they were going to cut of their jobseeker’s allowance on some flimsy excuse.

She’s ignored the way Corbyn has stood up for Britain’s Jewish community, and has enjoyed the support of many of its members. Like Jewdas, Jewish Voice for Labour, the Jewish Socialist Group and the Haredi community. No, he – and Ed Miliband before him – are terrible anti-Semites because they recognise the Palestinian people’s right to their own state. Or want to end the decades-long system of apartheid, land seizures and aggressive expropriation and colonisation in Israel itself. An apartheid which viewed the mizrahim – the indigenous Jews of the region – scarcely human.

She’s just another shabby ultra-Zionist, no different than the other fanatics and smear merchants. Zelo Street concluded their article about this sorry episode with

‘Maureen Lipman slagging off Labour is old news. And tediously predictable with it.’

Absolutely. And with her absolute lack of any genuine concern for Britain’s working people, and skewed hypocritical attitude on racism, I doubt many people miss her in the party either.

See: https://zelo-street.blogspot.com/2019/11/maureen-lipman-leaves-labour-again.html

We don’t need a perfect world; we need a fairer and more equitable one. Understanding how money works is the first step.

Published by Anonymous (not verified) on Sun, 24/11/2019 - 12:02am in

Person at the bottom of stairs climbing from darkness into the lightPhoto by Free To Use Sounds on Unsplash

As the election campaign rolls on and party leaders battle it out on our television screens, the Liberal Democrats commit themselves to more austerity and Paul Mason, left-wing journalist and former music teacher, indulges in some fantasy explanations of how money works. More on that later….

In yet another indication of how the austerity has not only done grave damage to those who least deserve it, but also to the economy, two more reports have been published to add to the already long list exposing the consequences of cuts to public spending.

The Scottish based Poverty Alliance organisation which published its report Righting the Wrongs: A manifesto to tackle poverty is urging the next Government to ‘put solving poverty at the heart of all that it does, including by creating a more compassionate social security system, [and] building a labour market that works for everyone….’

When confronted with the realities of people’s lives through their stories we can see the real tragedy behind the policy decisions and cuts to public spending of the current Conservative government.

Jamie from Glasgow struggling to raise a family on a low income described it as ‘like being stuck in the middle of a spider’s web with no escape route’ and Jackie, a community activist commenting for the Poverty Alliance report, said that ‘more and more people are being locked into poverty by jobs that are low paid and insecure. When people can barely afford to put food on the table and when parents working full-time are struggling to cope, there is something very wrong that we have to put right.

An analysis published by the TUC, also this week, has revealed that the number of children growing up in poverty in working households has risen by 38% over the last decade, bringing it to 800,000 since 2010.

The study also showed that government policies account for the majority of rises in child poverty, with more than 485,000 children (in working households) having been pushed below the breadline, not only as a direct result of the government’s in-work benefit cuts but also as a consequence of other major factors which include weak wage growth and insecure work. The report also noted that over the past decade workers have suffered the most severe wage squeeze in two centuries and although wages have just started to grow, weekly wages are still £14 below pre-crisis levels.

Frances O’Grady, the TUC General Secretary, commented about the report that no child in Britain should be growing up in poverty and cuts to in-work benefits have come at a terrible human cost.

Overall the poverty figures are shocking. As GIMMS reported earlier this year following a report by the Social Metrics Commission, there are now around 14.3 million people living in poverty, of which 8.3 million are working-age adults, 4.6 million children (of which around 2.9 million are in working households as identified in the later TUC report) and 1.3 million pension age adults.

Aside from these shocking statistics which represent avoidable and unnecessary human degradation, the combined effects of government policies and cuts to spending on public services have had a damaging effect not only on the lives of those caught in the austerity crossfire but also on the economy as a whole. A decaying public and social infrastructure and toxic welfare reforms have had a significant impact on poverty and inequality and show clearly in whose interests the government has been acting. The promotion of individualism and self-reliance, along with decreasing state intervention to replace our public infrastructure with private, profit-motivated services has been a long-standing agenda of successive neoliberally inspired governments.

Access to high-quality health and social care, education and training, well-paid secure work and good quality, affordable housing all play a vital role in the health of the nation and its economy. When people are denied those basic support systems it can only, in the end, lead to more deprivation, ill health, hunger, homelessness and increased crime, the consequences of which ripple into every part of society burdening it with both additional financial costs and societal breakdown.

As was reported by the BBC only this week more than 2 million adults are unable to see a dentist either because they can’t afford treatment, find an NHS dentist or get care where they live as a result of underfunding and recruitment problems. It is claimed that many people are being reduced to practising self-dentistry to alleviate the pain of rotten teeth which can cause all sorts of other problems like periodontal disease which can, in turn, lead to an increased risk of heart disease.

After nine years of cutting NHS spending in real terms, creating a pressured working environment for staff, capping their pay, stopping nursing bursaries and driving people away because of stress, senior NHS leaders are warning this week that hospitals are so understaffed lacking sufficient doctors, nurses and other health professionals to provide services that the ‘safety and quality of care are under threat.’ The latest figures show that the performance against key waiting times for A&E, cancer treatment and planned operations have fallen to their worst-ever level and that this could deteriorate even further as winter approaches.

NHS mental health services which have borne the brunt of cuts have become little more than a firefighting service to deal with the ever-growing numbers of people needing support.

Earlier this month the organisation State of Hunger published its report, drawn up in conjunction with Heriot-Watt University and the Trussell Trust. It revealed that more than half of households referred to foodbanks were affected by poor mental health, predominantly anxiety or depression, while 23% of people referred to foodbanks were homeless. The report gives a voice to those people who have paid the price for austerity and welfare reform – the worry about paying bills, keeping a roof over one’s head or having a job which pays enough.

“If I don’t pay my bills, then I’ll get the house taken off me. After paying arrears, I’ve got £8 a fortnight and that’s to pay for gas, electric, water. It’s just impossible, it really is. I go to bed at night wishing I won’t wake up in the morning.”

 

“I’ve used the food bank because I was on such a low income before I got my disability benefit… I had a mental breakdown because basically the amount they give me doesn’t cover the costs of my rent.”

 

Education joins health in forming the backbone of a functioning economy and societal well-being and yet, it too has suffered from crippling cuts to spending. Kevin Courtney, the joint general secretary of the NEU said this week that ‘The future of education hangs in the balance’.  Despite government promises of more money, the School Cuts Coalition made it clear only last week that four in five state schools will be financially worse off next year than they were in 2015 and this will affect schools in areas where there are already high levels of deprivation.

Even with the additional funding promised by government, there will still be a shortfall of £2.5bn in the year ahead after years of already damaging cuts. The consequences for schools are grim. More pupils per class, fewer teachers and support staff and reduced curriculums with subjects like music, language, art and design being cut as a result of the pressure, not to mention the reduction in capital expenditure on schools’ estate which has left it in a bad state of repair and not fit for purpose.

Our children represent the future and yet they are the ones that will bear the brunt of lack of adequate government spending and planning for an education and training system to meet the challenges they will face in the future.

A healthy economy demands a healthy and educated nation as a prerequisite. It demands quality housing, good secure jobs and pay. The last nine years of austerity and forty years of the pursuit of neoliberal dogma have pulled that rug from under people’s feet, leaving them in a world of increasing uncertainty.

It is regrettable in this respect that the notion that the state has a responsibility to ensure the health and well-being of all its citizens through the provision of universal services and other state-provided interventions is being mistaken for a ‘nanny state’ rather than acknowledging the value of such investment in society and its economy.

Whilst government has pursued its handbag economic strategy and ignored monetary realities for the lie of balanced budgets, it has failed in its duty as an elected body to serve the interests of citizens and the economy as a whole.

Whilst pursuing austerity, it has ignored the fundamentals of macroeconomics which it won’t hurt to repeat. Spending, wherever it comes from, creates income for someone else, whether that’s government which starts the ball rolling by creating the money into existence to pay for its needs which flows in turn right down to businesses, working people or even those having the misfortune to be involuntarily unemployed or coping with a disability or illness which prevents them from working. Through its obsession with austerity and lowering deficits at a time when it should have been spending more, it has weakened the economy and wilfully left people without the means to provide themselves with sufficient income to meet their daily needs.

As data from last year shows, it has left British households collectively supporting their spending through reducing savings (if indeed they had any) and taking on more debt. Quite simply government austerity has transferred the burden onto households which as private debt levels rise will prove unsustainable.

The fragile house of cards which represents the economy after nine years of government folly will either stagger on or fall into another recession unless the next government deficit spends sufficiently to promote full employment and serve the public purpose.

In the light of this, it is all the more incredible to note that after Ed Davey, deputy leader of the Lib Dems said earlier this month that Labour and the Tories were ‘writing promises on cheques that will bounce’ they have decided to make austerity their USP (unique selling point) for their election campaign. Yes, you read that right!

In his recent speech he positioned the Liberal Democrats as the ‘party of fiscal rectitude’ and the Conservatives and Labour as the ‘parties of fiscal incontinence’. Davey is proposing to adopt a fiscal rule for day to day spending aiming for current account surpluses in every year of their five-year costings.

With yet more household budget accounting and to meet its objective will require tax rises and yet more spending cuts. Furthermore, on the basis that achieving a surplus is not a saving and removes money from the economy and if our trading partners don’t spend all they earn thus taking even more out of our economy the net result will be a severe recession (as if we weren’t already heading in that direction). A bit of an own goal and a very foolish one at that!

And yet depressingly it has to be said another own goal was scored this week by the journalist and self-styled economist Paul Mason who presented a short promotional video for Novara Media explaining the deficit and debt in the language narrative of overdrafts, loans and mortgages along with that old ‘canard’ about paying for public services by taxing the very rich.

This is indeed ‘fantasy economics’ of the most damaging kind.

In response, the economist Professor Bill Mitchell explains it very succinctly and it is worth printing it here in its entirety:

‘This is the classic ‘soft’ mainstream macroeconomics that assumes the government is financially constrained and is thus not dissimilar to a household.

It is ‘soft’ because, unlike the hard-mainstream positions, it allows for deficits (‘funded’ by debt) to occur in a non-government downturn but proposes them to be offset by surpluses in an upturn, irrespective of the overall saving position of the non-government sector.

None of this framing or language is what I would call ‘progressive’.

It has the hallmarks of the way neoliberals construct the concepts and the narrative.

The inferences are also plainly false when applied to the British government.

  1. It is not financially constrained in its spending.

The constraints relate to real resource availability.

In terms of restaffing the NHS, for example, are there qualified labour resources available? What training would be required? Would this mean that British Labour is also going to be advocating open borders to ensure the staffing is available? [….]

  1. There is no meaningful knowledge that be gained by comparing a household with a home mortgage and a currency-issuing government spending its own currency.

The household is the currency user and the government is the currency issuer.

Totally different constraints apply.

  1. It is false to claim that it is virtuous to ‘tax the rich’ in order to fund essential health and welfare services.

This is one of the worst frames that the progressives now deploy.

The British government might want to tax the rich to reduce their power and influence (exercised via their spending habits) but it never has to do that in order to fund essential services.

The only constraint that exercise involves is the availability of real resources.’

  1. The British government does not have to issue debt to ‘fund’ its deficits. The capacity of the non-government sector to purchase the debt derives from past deficits that have not been taxed away yet.

Even if the government issues debt to match its investment in essential infrastructure to deliver better housing, transport health care, and engage in climate action etc, this investment is not linked at all to the current interest rates in place.

 

There is no meaning to the term “cheap” finance, when the spending does not need to be financed (in the currency the government issues).

The issuing of risk-free debt from a currency-issuing government really amounts to the provision of corporate welfare and no progressive should advocate its continuance.

  1. There is no meaning in saying the recurrent deficit is like an overdraft or the capital deficit is like a mortgage. Those terms gain meaning when applied to units that are financially constrained.

While left-wing progressive parties continue to frame their election campaigns in neoliberal terms and thus erect unnecessary financial barriers to spending that will prevent them from achieving their goals, the public will also remain in the dark about a subject which is of vital importance; how to answer the question about how government really spends, how its policies can be paid for and what  the real constraints are.

That said and despite the deliberate misleading of the public by Paul Mason, the UK needs a progressive government prepared to act in the public interest through investment in our public and social infrastructure and ready to take action to tackle social injustice, ensure a more equitable distribution of wealth and address the biggest challenge we face – climate change.

 

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The post We don’t need a perfect world; we need a fairer and more equitable one. Understanding how money works is the first step. appeared first on The Gower Initiative for Modern Money Studies.

Short Guardian Video of Corbyn’s Election Promises

Labour launched its manifesto yesterday, as did the Tories, and the newspapers and TV were full of it. The Guardian, however, produced this little video in which Corbyn presents the party’s manifesto promises in just a minute and a half.

The Labour leader says

‘Labour’s manifesto is a manifesto for hope. That is what this document is. We will unleash a record investment blitz. And it will rebuild our schools, our hospitals, care homes and the housing we so desperately need. Every town, every city and every region. So a Labour government will ensure that big oil and gas corporations that profit from heating up our planet will shoulder the burden and pay their fair share through a just transition tax. We’ll get Brexit sorted within six months. We will secure a sensible deal that protects manufacturing and the Good Friday Agreement. And then put it to a public vote alongside the option of remaining in the EU. And yes, be clear, we will scrap university tuition fees.’ 

At this point there is massive cheering from his audience. He goes on

‘We are going to give you the very fastest, full fiber broadband for free. That is real change. And Labour will scrap Universal Credit.’

More cheering and applause. Corbyn’s speech ends with

‘It’s time for real change. Thank you!’

The crowd rises to give him a standing ovation.

Okay, so this is a very short, very edited version of Corbyn’s speech, just giving the briefest outline of the party’s policies. But it shows that Corbyn’s policies offer real change after forty years of Thatcherism, which has decimated our schools, NHS and public services and destroyed people’s health and lives through savage welfare cuts intended to punish the poor so that the rich could profit. All of which was also carried out by the smarmy face of Blair’s New Labour, who tried presenting themselves as some kind of caring alternative to the Tories, while taking over their odious policies and actually going further.

And as Corbyn says, this is a manifesto of hope. Zelo Street has written a post comparing it with the radical changes that set up the welfare state by Clement Attlee’s 1940s Labour government and their manifesto, Let Us Face the Future. The Sage of Crewe describes how Attlee’s reforms, which set up the post-war consensus, were destroyed by Thatcher, leaving nothing but poverty and run-down, struggling public services, including the NHS, so that the rich 1% can get even richer.

But he writes

Today, Labour brought something to the General Election campaign that recalled the message of 1945, and that something was hope. Hope that students of whatever age would not be saddled with tens of thousands of Pounds of debt for years after graduating. Hope that the punitive benefit sanctions régime would no longer target the sick and disabled. Hope that a living wage really would be enough to live on.

Hope that those out-of-towners without cars would not be effectively trapped in their homes at weekends and in the evening because of public transport cuts. Hope that the NHS would be able to cope without leaving emergency admissions on trolleys in corridors. Hope that someone would, at last, take the Climate Emergency seriously. Hope that the scourge of Universal Credit would at last be consigned to the dustbin of history.

Hope that the victims of press abuse would finally see the long-overdue completion of the Leveson Inquiry, so shamelessly ducked by the Tories in exchange for favourable coverage. Hope that bad housing, and bad landlords, would finally become a thing of the past. Hope that the Police and Fire services will be able to cope, giving security and peace of mind to everyone. Hope of an end to homelessness.

Hope that education will be resourced properly, that teachers will be supported in their work, that pupils will not have to ask parents or guardians to help pay for what should be classroom essentials. Hope of real action to challenge racism in all its forms. Hope for 1950s women that pension injustice will be acknowledged – and tackled. Hope that the divisions caused by the 2016 EU referendum can finally be healed.

He goes on to predict how the people, who have profited from the poverty and misery Thatcherism, and particularly the austerity imposed by the Tories and Lib Dems over the past 9-10 years, will fight to prevent these hopes being realised. He points out that

that alone tells you whose interest is served by the decade of decay that has ravaged so many towns and cities across the country.

And concludes

‘Labour has promised us hope. Let Us Face The Future Once More.’

https://zelo-street.blogspot.com/2019/11/let-us-face-future-once-more.html

This is all precisely what we need, which is why the establishment will do everything they can to prevent ordinary people getting the government, a Labour government, that they deserve. Because, as the Galaxy’s dictator Servalan once said in the BBC SF series Blake’s 7, ‘Hope is very dangerous’.

 

 

The Rise of the Right

Published by Anonymous (not verified) on Thu, 21/11/2019 - 8:30am in

GIMMS is pleased to be able to present for our MMT Long Read two chapters of the book “The Rise of the Right – English nationalism and the transformation of working-class politics” by Professors of Criminology Simon Winlow, Steve Hall and James Treadwell.

“Throughout Europe right-wing populism has grown to the extent that we can now legitimately begin to think about the very real possibility of a fascist future. The new right-wing nationalism will not be a carbon copy of 20th-century European fascism, but fascism it will be, nonetheless. For years this seemed unthinkable…We must recognise that the adoption of hippy counter-culturalism was a colossal error, and then begin to repair some of the damage it has caused. The first step is to reconnect with the working class with a renewed order of grounded universal ethics and truthful symbolism comprehensible to all cultural groups…the left can be rehabilitated. Reconnecting with the working class and persuading them to believe in its project is a very difficult task, but it can be done.”

The Rise of the Right – English nationalism and the transformation of working-class politics

The Rise of the Right cover

Originally published by Policy Press in 2017.  Permission granted by the publisher to use this content.

https://policy.bristoluniversitypress.co.uk/the-rise-of-the-right

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It’s not balanced budgets that will save us. It’s the power of the public purse and our human values.

Person at a demonstration holding a placard with slogan "What lessens one of us lessens all of us"Photo by Micheile Henderson on Unsplash

Charles Dickens began his novel ‘Hard Times’ thus:

“NOW, what I want is, Facts. […]. Facts alone are wanted in life. Plant nothing else and root out everything else. You can only form the minds of reasoning animals upon Facts: nothing else will ever be of any service to them. [….] Stick to Facts, sir!”

Whilst one might dispute Dicken’s character Gradgrind with his miserable vision of human existence, facts can be very useful. They can trace the human misery caused by 9 years of austerity and the last forty years of a pernicious market-oriented ideology which has led to vast disparities in wealth distribution and caused huge damage to society by encouraging the pursuit of self-interest.  And yet it has to be said as the election campaign gears up, that in terms of monetary reality, of facts there seem to be very few to be had.

As political and economic commentators, not to mention politicians on all sides, emphasise daily their claims that the government finances are like a household budget, the public has largely remained stuck in the quagmire which is presented as monetary reality and distrustful of a political system which has failed them.

Looking at newspaper front pages this week you could be forgiven for thinking that we are headed for bankruptcy if Labour were to win the election or that their spending plans would cost UK households £43,000 each. A ‘reckless spendathon’ is in the offing according to a government spokesperson in a recent BBC television interview.

Aside from such narratives being a fallacy, they are designed to put the frighteners on people who are already suffering financial hardship caused by years of austerity and ideologically driven government policies. Those with a political agenda shore up those false beliefs that borrowing too much will lead to government insolvency. They cynically and callously terrify people that they will be asked to pay for those spending programmes when they will not. This is an establishment that is running scared that their reign of power is coming to an end. The means justify the ends!

It cannot be denied that if we are to escape the worst effects of a coming global downturn, an incoming government of whatever variety will need to implement adequate spending programmes and increasingly fiscal policy is becoming the ‘mot du jour’. However, the message is reinforced daily by all sides of the political spectrum that there are still financial limits to that spending.

Last week Ed Davey, deputy leader of the LibDems said of Labour and the Tories spending plans that they are ‘writing promises on cheques that will bounce’. The very same party that joined in with Tory austerity during the Coalition and voted for public spending cuts and welfare reforms.

In the same week, the Greens promised welcome public investment of £1trillion over 10 years to fight climate change, the money for which it said would come from ‘borrowing’ and ‘tax’ changes.

Then the Chancellor of the Exchequer in a ‘give with one hand take back with another’ message promised to increase borrowing to fund billions of pounds to pay for new infrastructure but then announced three new fiscal rules to ‘control borrowing, to control debt and to control debt interest’.

Stuck in household budget la-la land he said without a hint of jest:

‘like anyone who budgets whether it’s a household, or small business or large business, I know that we must keep track of what we are spending and what we bring in…. We can’t run an overdraft forever on day to day spending, so I can confirm that our first rule will be to have a balanced current budget. What we spend cannot exceed what we bring in.

Never mind that you can build as many hospitals as you like as part of an infrastructure spending programme but if you make up foolish rules about day to day spending those hospitals will remain empty of nurses and doctors and other health professionals to staff them.  And let’s not forget the bailing out of the banks or successive wars funded without a taxpayer in sight.

The same tired old tropes abound about taking advantage of ‘historically low borrowing rates’ and ‘living within our means’ remain the context for Conservative spending plans and figure in one way or another in the language narrative of other parties too.

In a similar vein this week, the shadow chancellor reinforced that same story when he tweeted:

‘The Tories can’t invest in the public services we need because unlike Labour they won’t raise taxes on the super-rich and take on the international tax dodgers’.

The implication being here that he will bring back the magic money tree from the Cayman Islands to pay for our public and social infrastructure.

Even the Leader of the Opposition has suggested that if they don’t tax the very rich, then Labour won’t be able to pay for public services.

As Professor Bill Mitchell commented in a blog in response:

‘The British government does not need to tax the rich to pay for first-class public services. It can do that at any time it can muster the real resources to accomplish that aspiration. It issues its own currency.

It might want to tax the rich because they have too much power but that is quite separate from justifying such an action because the government needs their ‘money’.

Although without doubt the proposals on the progressive left to tackle social inequality, rebuild public infrastructure and address climate change are laudable and indeed vital, it is to be regretted that the arguments for public spending programmes are being reduced to household budget frameworks of monetary affordability, where the money will come from and economic credibility. We have become fixated by the single idea that the country’s economic ‘health’ hangs on whether or not we run a deficit.

GIMMS will say it again. In reality, the only analysis that really counts when deciding which way to vote in any election is not a judgement based on a government’s financial record or whether it balanced the public accounts but what its economic record was.

We as citizens should be examining where the money was spent and who benefited. Did that spending ensure that its citizens were in secure employment and fairly paid, had decent housing and sufficient food in their bellies? Did it create a healthy and more equitable economy in which wealth was more fairly distributed? Did it ensure that the vital public and social infrastructure such as the NHS, social care, education and local government were adequately funded to serve the public purpose and not fill the coffers of private profit? Or was that public money sucked up by the private sector in a big free for all in which the state serves the interests of the corporations rather than the interests of its citizens?

And what about government policies on health, education, welfare spending and the environment? Did they create stable lives by improving the material, financial, physical and mental health of citizens? Did they ensure adequate investment to ensure that the nation can be as productive as possible through good education and training both for present and future generations? And finally, the environment – what actions did they take to address the climate crisis?

In other words, we should be examining what the real economic outcomes were.

After nine years of telling the public that there was no alternative to austerity and cuts to public spending because the coffers were bare, it’s amazing what the prospect of an election can do to turn the spending taps on. And yet the smoke and mirrors, lies and deception about how government spends just carries on relentlessly.

But now it’s all OK (for the moment) the Conservatives have found the magic money tree, cutting the deficit has apparently given them some savings and the fiscal ‘headroom’ to spend. For those that know, this narrative is a fairy tale of epic proportions. For those that don’t, it should be enough to arouse a cynical response by a public which has been at the sharp end of those tax and spend myths which have formed the basis for its policies.

Indeed, only this week the following headlines should serve as the wakeup call for the public about Conservative economic credibility.

‘UK suffers biggest fall in jobs in four years’

‘UK avoids recession but annual growth slowest in almost a decade.’

‘Wage growth slows’

We can blame it in part on the uncertainty caused by Brexit, but the reality is that behind the faceless employment figures published by the Office of National Statistics are the lives of real people who have been affected by the government’s policies and spending decisions over the last 9 years.

To put it in basic economic terms, when a government spends it creates income for the private sector which is then spent into the economy. When it imposes spending cuts it is removing money from people’s pockets leaving them with only three options: Use their savings if they have any, take out credit or go without.

All spending, whether from government or the private sector, equals income for someone. What happens when you take that away? That’s people who lost their jobs in the public sector as local government, the NHS and schools were forced to pare down their budgets as a consequence of public spending cuts. That’s people constrained by public sector pay caps and pay cuts. That’s people who ended up working two or three jobs on low pay to keep a roof over their head and food on the table. That’s people working in precarious employment in the zero-hours or gig economy with no guaranteed decent income or sick or holiday pay. That’s people affected by the reforms to welfare and the introduction of Universal Credit, from those who are unemployed left with insufficient financial resources to make ends meet and those in work but not earning enough to keep their heads above the water to those left struggling to cope because of chronic sickness or terminal illness.

In seeking the nirvana of balanced budgets by cutting spending the Conservative government has not created a healthy economy it has done the very opposite. The statistics are the proof.  Without adequate spending, the economy suffers, and people pay the price.

And yet as political parties present their spending plans and worry about how they will demonstrate their economic credibility the elephant in the room is crashing about trying to make itself noticed. On one note it is pathetic to see the Conservative party take issue with the opposition’s spending plans calling them reckless and unaffordable whilst promoting its own as being fiscally responsible. On another, in their rush to spend, neither party seems to have considered the real resource factor and how that will be managed.

The IFS for all its neoliberal sins ‘gets’ the elephant in the room and recognises that whoever wins on December 12th their spending plans will be dependent on whether they have the right resources at their disposal to deliver.

After 9 years of insufficient spending into the economy to prepare for the future, will there be sufficient people with the right skills to meet the government’s needs? Whether that’s engineers and construction workers to design and build the proposed infrastructure or homegrown nurses and doctors already trained up to service the planned spending on the NHS? Or in these days of climate crisis we might also be talking about the resources needed to deliver the Green New Deal and ensure a just transition not just for those in the rich west but those in the global south whose countries have already been plundered of raw materials and impoverished so that we can maintain our standard of living.

For progressive parties like Labour and the Green Party who wish to deliver a left-wing agenda what they have to do is decide their key priorities, consider the availability of resources and how they could be freed up to deliver a future government’s objectives efficiently and effectively. A case in point this week is Labour’s plan for free broadband which has much to recommend it in terms of bringing communities together in an inclusive and connected society. Journalists and others predictably have asked the question where will the money come from? They have missed the point entirely and should be asking instead how many workers would we need to deliver it?

Ultimately, all sovereign currency-issuing governments don’t need to match their plans to tax revenue or determine whether the markets can lend them the money. The role of government in this respect is not to balance the budget but to balance the economy.

The public needs to understand that it isn’t the government’s ability to tax the rich but its power to run a deficit which determines the health of an economy. As the sovereign currency issuer, the UK government has the power of the public purse to fund the public works necessary to tackle social and wealth inequalities, deal with the current global economic uncertainty, and fund the Green New Deal, should it choose to do so.

However, at home, our public and social infrastructure is in a shocking state of decay caused by 9 years of cuts to public spending and lack of planning. Reversing that decline is not something that just promising to spend can solve in the short term.  There are important issues to consider for the long term which may not fit the short-termism of the political five-year framework and many politicians who have become used to serving other interests.  That is the scale of the challenges we face.

When all is said and done even though the Labour party persists with the household budget myths John McDonnell has it right in terms of what is required not just to reverse the social injustices heaped upon global populations because of pernicious ‘free’ market ideology or the threat to the human species at our own hand. As he said not only must the scale of investment match the scale of the crises we face both in ecological and social terms, but also if we don’t make these investments our future generations will never forgive us.

Let’s leave the final words to Professor Bill Mitchell who wrote a while back:

“My ideological disposition tells me that the pursuit of human values is the only sustainable way of organising and running a world. The neoliberal era has severely undermined that pursuit.

That’s what we must change and urgently if we want half a chance to save ourselves and our children’s children from disaster.

 

Note: GIMMS has a very good resource section on our website which takes you through how money works. From FAQS to resources sheets and external websites, videos and academic papers for those who want to take it further. For an introduction to how money really works follow the link here.

 

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Double Down News Video: Ken Loach Explains Why People Need to Vote Labour

I found this excellent video from the socialist, radical film director Ken Loach. It’s from Double Down News, another online news agency that’s there to tell the world the truth about the Labour party and Jeremy Corbyn, ’cause the lamestream media won’t. Loach is the veteran director who made the films Dirty, Pretty Things, about the low-paid immigrant workers, who do the work we don’t want to, and I, Daniel Blake, about a man struggling with the obstructive, deliberately unhelpful bureaucracy of the Tories’ benefit system. He’s also another person they’ve tried to smear as an anti-Semite because he made a film a few years ago exposing the brutality of the Israeli state towards the Palestinians. However, Loach is demonstrably very far from anti-Semitic. I believe he made the film with an number of Jewish critics of Israel, and was given a rapturously welcome the other year when he appeared at a meeting of Jewish Voice for Labour. Despite what smear merchants like the Campaign AgainstAnti-Semitism, the Jewish Labour Movement, the Blairites, the Tories and the mendacious press would have you believe, Corbyn’s supporters are decent, self-respecting anti-racist people. The many Jews, who support him do so because they are, decent, self-respecting anti-racist people. They are not self-hating, and know that he has done much to support the Jewish community as he people from all racial, ethnic and religious groups in this countries. And so the folks at JVL would very definitely not give their applause to a genuine anti-Semite.

Loach begins the video by saying

The impact of Johnson is like the emperor has no clothes. We can see clearly what is amiss. Get out of Europe fast so that even the small protections that Europe provides in working conditions and the environment disappear, so that he can do deals with people like Trump, where it’ll open the door to the big American multinationals to take over our public services. And the biggest issue of all, climate change will be disregarded. If we care about the future for our kids, and grandchildren in my case, then that’s suicidal. Why are we destroying the planet? Why? Why do some areas of the country exist with nothing while other areas are overwhelmed with wealth? Why is the world like that? It doesn’t need to be like that. 

The Labour government of the past failed with its illegal wars, privatisations. We now have a chance with the beginnings of a policy that will regenerate our country, protect the environment, get rid of privatisation in the public services. Why should Richard Branson make a fortune out of the Health Service? It makes no sense. I mean, the questions are so obvious, of course young people will see it. And then they get confused with this fog of stupidity which you see in the press, broadcast every morning, so that politics becomes not the simple answer to simple questions, but becomes some arcane procedure in a tiny part of London by people, who speak a different language. Jeremy Corbyn, John McDonnell cut through that, that’s why they’re not allowed to speak. Empathy, solidarity, supporting each other, understanding each other – this is the essence of socialism. We’;re naturally good friends, we’re naturally neighbours, that’s the essence of our political system – it’s the opposite of their political system. 

The video ends with a statement by Loach about Double Down News, explaining that it’s an alternative news service, that doesn’t get funding from anyone except what it’s given. Even by old farts like him. He appeals to people to give to the organisation, offering them £20.

It’s a great video illustrated with some very pertinent images. This includes urban decay contrasted with the wealth of the City of London, Boris Johnson and Rees-Mogg in parliament, the arcane ceremony of the opening of parliament with Black Rod, the warmongers Bush and Blair together, Richard Branson toasting his good fortune, a collage formed by a newspaper photo of Osama bin Laden embracing a newspaper photo of Corbyn and the selection of tabloid front pages smearing the Labour leader. There’s also clips of Corbyn meeting ordinary members of the public, embracing a Muslim woman in a burqa, that’ll no doubt send Boris’ supporters bonkers, and writing messages of condolence to the people of Grenfell Tower.

This is an eloquent talk by one of Britain’s most gifted and critically acclaimed film-makers. He’s right, and especially about the way the concentration on the arcane ritual of parliament may be putting off young people. It certainly seems to me to be a way of dividing people into a politically-literate class of affluent people, who understand it and its jargon, and the rest of us.

Loach is getting on a bit, but he’s still active and his voice needs to be heard. We need to listen to him and organisations like DDN, and not to the lamestream media.

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