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What Is behind the Global Jump in Personal Saving during the Pandemic?

Published by Anonymous (not verified) on Wed, 14/04/2021 - 9:00pm in


employment, wages

Matthew Higgins and Thomas Klitgaard


Household saving has soared in the United States and other high-income countries during the COVID-19 pandemic, despite widespread declines in wages and other private income streams. This post highlights the role of fiscal policy in driving the saving boom, through stepped-up social benefits and other income support measures. Indeed, in the United States, Japan, and Canada, government assistance has pushed household income above its pre-pandemic trajectory. We argue that the larger scale of government assistance in these countries helps explain why saving in these countries has risen more strongly than in the euro area. Going forward, how freely households spend out of their newly accumulated savings will be a key factor determining the strength of economic recoveries.

The pandemic sent consumer spending into retreat, helping drive up saving

Consumer spending plummeted in the United States and other high-income economies with the arrival of the COVID-19 pandemic. The drop was sharpest in the second quarter of 2020, reflecting the strict lockdowns then in place. Spending picked up over the second half of the year, but the recovery was only partial. Consumption was still well below pre-pandemic levels at year-end.

A simple accounting identity can help clarify how changes in spending feed into saving. Since income is either spent or saved, changes in income must be matched by changes in spending and saving.

Change in Income = Change in Consumption + Change in Saving

If income is stagnant, a decline in consumption will result in an equal increase in saving. If income is growing, the same decline in consumption will translate into a larger increase in saving.

The chart below shows how this relationship has played out during the pandemic for the largest high-income economies: the United States, the euro area, Japan, the United Kingdom, and Canada. The triangles represent the percent change in personal disposable income—income after taxes and net transfers—comparing the first three quarters of 2020 with the first three quarters of 2019. The bars show how these changes in disposable income map into changes in consumption and saving, consistent with the identity above.

What Is behind the Global Jump in Personal Saving during the Pandemic?

While consumer spending weakened in all these economies, the magnitude of declines varied widely. U.S. spending held up best, dropping by the equivalent of 3 percent of pre-pandemic personal income. Spending in the United Kingdom fell the most, dropping by nearly 12 percent. Spending elsewhere was down 6 to 7 percent.

Household saving, in contrast, was up across the board, with increases ranging from 7 percent of pre-pandemic income in the euro area to 16½ percent in Canada. The counterparts to this increase varied widely. In the euro area and the United Kingdom, income stagnated, and higher saving came entirely from declines in consumption. In the United States and Canada, income grew strongly, and saving rose by more than twice the decline in consumption. In Japan, the increase in saving came about equally from lower consumption and new income.

Data through the end of 2020—available only for the United States and Canada—tell a similar story. Saving grew strongly, with the largest contribution from income, and a smaller but still sizeable contribution from lower consumption.

Notably, personal disposable income in the United States, Japan, and Canada grew by more than twice the average pace over the previous several years. The COVID-19 pandemic, of course, brought steep recessions to all high-income economies. This raises a natural question: Why did income growth hold up so well in the United States, Japan, and Canada?

Government support bolstered household incomes

Wages and other labor compensation account for the largest part of household income—more than 60 percent of income before taxes for the economies discussed here. The rest of income comes largely from private sources such as proprietors' earnings, rents, and investment returns. (The line between labor compensation and proprietors' income varies across countries, depending on differences in accounting practices and in how businesses are organized.) Net social benefits represent a final key category. This includes government-provided retirement benefits, unemployment insurance, income assistance, and similar programs, net of the taxes going to fund them. For some countries, net social benefits are typically a negative item for aggregate household income, with benefit-related taxes exceeding benefit payouts. What matters for our purposes, though, is how income streams changed over the course of the pandemic to yield the total change in household income.

The chart below provides a breakdown of disposable income growth, comparing the first three quarters of 2020 with the same period a year earlier. (As with our earlier chart, data through the end of 2020 are available only for the United States and Canada, and tell a similar story.) Again, the bars show contributions to this income growth. The gold bar labeled Earnings combines labor compensation, proprietors' earnings, rents, and investment returns. The blue bar shows the net contribution from social benefits. The small green bar labeled Net other largely consists of changes in income taxes and in private transfers such as workers' remittances.

What Is behind the Global Jump in Personal Saving during the Pandemic?

Nominal earnings growth was negligible in the United States and negative for all other economies—hardly a surprising development given steep recessions and the resulting sharp rise in unemployment and falloff in proprietors’ income. The positive outturn in the United States seems surprising, and can be traced at least in part to a less severe downturn: Real GDP for the Q1-Q3 period was down about 4 percent in the United States, compared to a decline of more than 6 percent elsewhere.

Higher net benefits made a meaningful contribution to income growth in all economies. But the magnitude of the contribution varied widely, ranging from just under 2 percentage points in the United Kingdom to more than 8 percentage points in the United States and roughly 10 percentage points in Canada. Absent the increase in benefits, disposable income growth would have been barely positive in the United States and Canada and negative elsewhere.

What would saving have been if there had not been these higher net benefits? It is impossible to say for sure. As an accounting matter, households could have maintained the same level of saving by making even sharper cutbacks in consumption spending. But consumption declines were already large and painful. More likely, the buildups in saving would have been substantially scaled back. Moreover, an attempt to maintain saving would be at least partly self-defeating. Deeper consumption cutbacks would have translated into steeper recessions, reducing incomes across the economy—and forcing further cutbacks in consumption or saving. The perverse feedback mechanism, whereby a general increase in saving makes everyone worse off, is known as the Paradox of Thrift.

Government support went beyond social benefits

Government pandemic assistance has gone beyond higher direct transfer payments. The United Kingdom, Japan, and some euro area countries have channeled wage subsidy payments to businesses rather than workers, which means these funds show up in household incomes as wages rather than social benefits. This arrangement helps explain why earnings declines have been small given the depth of recessions. Similarly, in the United States, Paycheck Protection Program funding shows up as proprietors' income or indirectly as wages, not as social benefits.

A look at the government accounts serves as a check on the scale of support for household incomes. Countries' integrated macroeconomic accounts show government outlays on subsidies to the business sector. These outlays have risen substantially—by roughly half as much as the increase in social benefit payouts in the United States, the euro area, and Canada, and by four times the increase in benefit payouts in the United Kingdom. No data are yet available for Japan, but indirect evidence indicates that the bulk of pandemic assistance there is captured in the household statistics.

Unfortunately, the data do not allow us to specify what fraction of these funds were eventually paid out to households. But the upshot is clear enough. Government support for household incomes and saving was larger than suggested by the increase in social benefits—dramatically so in the United Kingdom. The euro area continues to stand out for support that is large relative to history, but small relative to what has been enacted elsewhere.

Will households spend down “excess” saving?

How freely households spend out of their newly accumulated savings will be a key factor determining the strength of economic recoveries. Consumer spending would soar if households run down these funds aggressively when economies reopen. The potential upside is underscored by the fact that much of the buildup in savings is being held in easily spendable form. As the chart below shows, household deposit holdings for the five economies discussed here have risen by an amount equivalent to between 6.5 and 13.0 percent of annual disposable income.

What Is behind the Global Jump in Personal Saving during the Pandemic?

A recent Liberty Street Economics post, however, provides reasons for thinking that spending out of recent savings will be relatively modest based on how spending typically responds to an increase in the nation’s wealth. As noted in that post, goods consumption in the United States is already above its pre-pandemic trend. The same is true in other advanced economies. In addition, most consumer spending on services goes to essentials such as housing, utilities, education, and healthcare. There is only so much pop that pent-up demand for services such as travel, restaurant meals, and entertainment can deliver.

This isn’t to discount the upside potential for growth this year and next, particularly for the United States. Data in 2020 already place the scale of U.S. government support for households toward the upper end of the advanced economy range. The additional U.S. fiscal package passed in December boosted household incomes and savings starting in January, and the much larger package passed in March will add even more.

Matthew HigginsMatthew Higgins is a vice president in the Federal Reserve Bank of New York’s Research and Statistics Group.

Thomas KlitgaardThomas Klitgaard is a vice president in the Bank’s Research and Statistics Group.

How to cite this post:

Matthew Higgins and Thomas Klitgaard, “What Is behind the Global Jump in Personal Saving during the Pandemic?,” Federal Reserve Bank of New York Liberty Street Economics, April 14, 2021, https://libertystreeteconomics.newyorkfed.org/2021/04/what-is-behind-the...


The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.

Tory Flag-Waving Now Reaching Reaganite Proportions

Patriotism, someone once said, is the last refuge of the scoundrel. And the Tories have done their best to show how true this is, especially last week when it seemed that they wasted no opportunity to wave the flag. This also led them to generate more synthetic outrage towards the BBC. Charlie Stayt and Naga Munchetty raised Tory ire when Stayt joked about the relatively small size of the union flag on display during an interview with Matt Hancock or one of the other Tory ministers. This led to howls from the Tory press that the Beeb was sneering at the flag. They weren’t. They were laughing about the Tory’s sheer opportunistic use of it.

It’s no accident that they’ve started waving the flag in the weeks running up to the local elections. Their performance on health, the economy, Brexit and just about everything else has been dire. They’re still trying to privatise the health service by stealth, they insulted the nurses with a 2 per cent pay rise, which is in real terms a cut in their salaries, wages are still frozen, more people are being forced into real, grinding poverty, the queues at the food banks are as long as ever, or longer. The Brexit that Boris has been so desperate to ‘get done’ is spelling disaster for Britain’s manufacturing industry, and businesses dealing with the continent and ordinary Brits wishing to travel abroad are now faced with mountains of paperwork and bureaucracy. Bureaucracy which the Brexiteers blithely assured us wouldn’t happen. Hopefully this year will see us coming out of lockdown and the Coronavirus crisis. We’ve a far higher rate of peeps receiving the vaccine than the EU, but that shouldn’t distract attention from the colossal way the Tories have mismanaged the Covid crisis as a whole. As Mike’s pointed out in one of his articles, Tory bungling and corruption – they gave vital medical contracts to companies owned and run by their friends and supporters, rather than to firms that could actually deliver – that over 100,000 people have died of the disease. One of the good peeps on Twitter has shown how this compares to the numbers killed in some of the genocides and ethnic massacres that have plagued recent decades. And the report, which was supposed to show that Britain isn’t institutionally racist, has been torn to shreds with some of the academics cited claiming they were not properly consulted and seeking to distance themselves from it. And then there are the mass demonstrations up and down the land against their attempts to outlaw any demonstration or protest they don’t like under the guise that it would be a nuisance.

And so, with all this discontent, they’ve fallen back to Thatcher’s tactics of waving the flag at every opportunity. One of the hacks at the Absurder in the 1980s said that Britain had three parties – the patriotic party, who were the Tories, the loony party, which was Labour, and the sensible party, which was the SDP/Liberals. Which showed you the paper’s liberal bias even then. The SDP, Liberals and their successors, the Lib Dems. have sold out utterly, while after four decades of Thatcherism Michael Foot’s Labour party looks far less than loony. But the hack was right about the Tories and patriotism. Thatcher waved the flag as frantically as she could and constantly invoked the spirit of Winston Churchill and World War II. One particularly memorable example of this was the Tory 1987 election broadcast, which featured Spitfires zipping about the sky while an overexcited voice told the world ‘Man was born free’ and concluded ‘It’s great to be great again’.

Here’s another feature of Fascism that’s been adopted by the Tories to add to those on Mike’s checklist. Fascism is an ideology of national rebirth and revival. Thatcher was claiming she was making us great again, just as Donald Trump claimed he was doing for America. Just as Oswald Mosley called one of his wretched books The Greater Britain. And unfortunately, as Zelo Street has also pointed out, Fascists like the Nazis have also used people’s natural loyalty to their flag as a means of generating support for their repulsive regimes. British Fascism was no different. Mosley also made great use of the flag at his rallies, and this tactic was taken over by his successors in the National Front and BNP. This has been an embarrassment to ordinary, non-racist Brits, who simply like the flag. One of my friends at school was a mod. At the time, the union flag and British bulldog formed a large part of mod imagery without meaning that the person was a racist or White supremacist. During one of the art lessons my friend started painting a picture with those two elements – the union flag and bulldog. The teacher came over and politely asked him not to do so, as he was afraid people would like at it and come to the wrong conclusion. This was just after the 1981/2 race riots, so you can understand why. But it is frustrating and infuriating that ordinary expressions of reasonable patriotism or simple pop culture iconography have become suspect due to their appropriation by the Far Right.

But the real excesses of flag-waving were to be seen over the other side of the Pond in Reagan’s America. Reagan was wrecking his country with privatisation and an assault on what the country had in the way of a welfare state, while murdering the people of countries like El Salvador and Nicaragua by supporting Fascist dictators and their death squads. But, like Thatcher, he did everything he could to use the symbols of American nationhood. Like the Stars and Stripes. A Republican party political broadcast in 1984 or thereabouts showed the American flag being raised no less than 37 times. This was so bizarrely excessive that one of the Beeb’s foreign correspondents commented on it. As far as I am aware, no-one took him to task for sneering at it.

This flag-waving is part of the Tories attempts to present themselves as the preservers of British national identity, tradition and pride against the assaults of the left, particularly Black Lives Matter and their attacks on statues. I’m not impressed with the attacks on some of the monuments, like that of Winston Churchill, even though he was a racist. But in Bristol the only statue attacked was that of the slavery and philanthropist Edward Colston. None of the other statues in and around Bristol’s town centre of Edmund Burke, Queen Victoria, Neptune and the sailors who made my city a great port, were touched. And then there was the protest last week against the new school uniform policy at Pimlico Academy in London. This ruled out the wearing of large afro hair styles. So the students started protesting it was racist. The headmaster also raised the union flag, which led the statement from one of the students, Amna Mukhtar, that it weirdly felt like they were being colonised. And then some idiot burnt the flag in protest. The headmaster has now rescinded the school’s uniform code and taken the flag down. Now I gather that one of the Tories is now calling for every school to fly the union flag.

It all reminds me of the comments the late, great comedian Bill Hicks made when Reagan and his supporters were flying the flag and their outrage when a young member of the Communist party burned it. After making jokes about the Reaganite rage and hysteria, Hicks said that he didn’t want anyone to burn the flag, but burning wouldn’t take away freedom, because it’s freedom. Including the freedom to burn the flag.

Quite. And the Tories are wrecking our country and taking away our freedoms while cynically waving the flag.

So when they start spouting about it, use your scepticism and think of Hick’s comment instead. And vote for someone else.

Diane Abbott on Supporting the Teachers against a Premature Lifting of the Schools Lockdown

Published by Anonymous (not verified) on Sat, 27/02/2021 - 10:33pm in

The much maligned MP Diane Abbott has written a piece for Labour Outlook discussing the effectiveness of the vaccines and the continuing death toll from Covid 19. While the vaccines are a great success, they are not going to end this disease on their own. Other measures are needed. Schools are important vector for the disease, which is why Abbott supports the teachers against the government in maintaining that the schools lockdown should not be lifted too soon.

Abbott writes

Only a safe reopening is in all our interests. Support the teachers, head teachers & school workers against the Tories – Diane Abbott MP Exclusive

“The government is currently refusing to budge.  But we know this is a government which can be forced to U-turn.”

Diane Abbott MP.

Diane Abbott MP

Life in Britain, including political life is once more dominated by the spread of the Covid-19 virus and the government’s failures to halt it. 

On February 22nd the government published a ‘roadmap’ out of the lockdown we have all had to endure.  This lockdown, our third, is actually longer than many countries’ sole lockdown.  The countries that have successfully suppressed the virus include Australia, China, New Zealand, Thailand and Viet Nam all achieved that by having a both a much stricter, shorter regime and by having an effective system of testing, tracing and properly supported isolation. The government still does not have any of those in place.

So, the roadmap is itself seriously, potentially fatally flawed.  Just as the government was outlining its plans there were two other important pieces of news.  The first was that the average of new daily cases is over 11,000 and the average for new deaths is almost 500 per day.  There is a possibility that new cases will be as high coming out of this lockdown as they were at the peak of the first wave in April, 5,000 a day or more.

The second news item was that the minutes of the most recent SAGE meeting were publicised.  SAGE emphasised that it had “previously advised that the opening and closing of schools is likely to have an impact on transmission and R, and that policymakers need to consider the balance of risks and harms. The opening of primary and secondary schools is likely to increase effective R by a factor of 1.1 to 1.5 (10% to 50%) (medium confidence)”.

There are two risks from a premature relaxation of lockdown led by reopening of the schools.  The first is that, exactly as SAGE says, transmission and infection rates will go into reverse, having fallen from late January after lockdown was imposed.  The second risk is that, in the absence of a suppression strategy, the virus will freely circulate and then mutate once more into even more deadly strains.  Again, this is a risk identified with current policy by SAGE itself. The government has clearly ignored this advice.

SAGE also emphasises the global nature of this pandemic, which is important for the whole world, including this country. “Aside from the significant human and social costs around the world, ongoing transmission in other countries would continue to pose a threat to UK health even if the epidemic were under control in this country and a high proportion of the population were vaccinated”. 

Yet the epidemic here is clearly not under control, and only a minority of the population has received even a single jab.  Public Health England (PHE) has assessed the efficacy of single jabs and the recommended double-dose. PHE found that protection from a single jab rose after a number of weeks to just under 60%.  But the protection after just a few days for a second jab was around 96%.  These are great outcomes. 

Yet contrary to government ministers, there is no suggestion in the minutes that vaccines are or can be a magic bullet.  Two-fifths of all those receiving a single jab have no protection from the virus.  But they are all encouraged to believe and to act as if they have full protection. Once again the Government is not being straight with the public and is taking another gamble with public health.  

The crunch point ahead is the government plan to reopen all the schools in a ‘big bang’ on March 8th.  This flies in the face of its own expert advice, the policy of the administrations in the rest of the country, and our own bitter experience about the spread of the virus after schools reopened last September.

I would urge everyone to read and support the joint statement from nine unions in response to the government’s plans.  They describe those plans as reckless, and argue instead for a phased return to schools, with rotas, ‘blended learning’ and a number of simple but effective safety measures. 

The government is currently refusing to budge.  But we know this is a government which can be forced to U-turn. Unions showed that over the Chancellor’s plans to cut furlough pay to two-thirds of wages, and both Marcus Rashford and Jo Whiley can testify to it over free school meals and vaccines for the learning disabled respectively.

The key issue now is the unity of all those demanding a different course of action from the government in applying the maximum amount of pressure on this issue.  Those who work in schools care about themselves, their own loved ones and the pupils we entrust to them.  But in opposing a reckless reopening of schools now they are acting in all our interests.  They deserve our full support.


I realise that Abbott is hugely controversial and much reviled. About half of the abusive messages received by women MPs are actually directed at her. And the Tories have been trying to make her out to be stupid ever since she made a mistake about budget estimates a few years ago. Senior Tories have also made similar mistakes, but this is ignored and they are lauded as if they are mighty intellectuals. As this piece shows, Abbott is anything but stupid and she is exactly right to back the teachers. Contrary to what the Tories are shouting about teachers being lazy, they are not. Our mother was a primary school teacher for very many years, and I know exactly how hard they work. Most teachers I’m sure would love to be back in class, in front of blackboard, actually teaching. But they are also vulnerable to Covid-19 themselves and aware of the role contact in schools can play in its transmission. Children may not suffer particularly from it themselves, but they are able to spread it to adults, some of whom may be extremely vulnerable.

Abbott is right to urge for a cautious, phased reopening of schools and support our front line teaching staff. It’s what Starmer should have done from the start, but didn’t because he was too intent on chasing Tory votes.

See: Only a safe reopening is in all our interests. Support the teachers, head teachers & school workers against the Tories – Diane Abbott MP Exclusive – Labour Outlook

February Regional Business Surveys Find Widespread Supply Disruptions

Published by Anonymous (not verified) on Thu, 18/02/2021 - 12:30am in

Jason Bram and Richard Deitz


Business activity increased in the region’s manufacturing sector in recent weeks but continued to decline in the region’s service sector, continuing a divergent trend seen over the past several months, according to the Federal Reserve Bank of New York’s February regional business surveys. Looking ahead, however, businesses expressed widespread optimism about the near-term outlook, with service firms increasingly confident that the business climate will be better in six months. The surveys also found that supply disruptions were widespread, with manufacturing firms reporting longer delivery times and rising input costs, a likely consequence of such disruptions. Many firms also noted that minimum wage hikes implemented in January in both New York and New Jersey had affected their employment or compensation decisions.

Business activity grew modestly in the manufacturing sector but declined in the service sector, according to the latest Empire State Manufacturing Survey and Business Leaders Survey. Declines were particularly pronounced in the construction industry, as well as in leisure and hospitality, while activity in the retail and wholesale trade sectors held fairly steady. Employment rose modestly among manufacturers in the latest survey but continued to decline among service sector firms. Firms in both surveys were optimistic about future conditions, and on net expect activity to be higher in six months. Moreover, more service firms said they expect the general business climate to improve in the months ahead than at any point in the past three years.

Notably, recent months’ surveys point to a pickup in both input and selling price increases, particularly in the manufacturing sector, where input prices rose at the fastest clip in a decade over the past month; a number of manufacturers specifically noted steep escalation in metals prices. Supplier delivery times were longer for manufacturers, with further increases expected in the months ahead. This suggests it is taking longer for firms to get the supplies they need, an issue that was probed more deeply in supplemental questions about supply delays and disruptions. Specifically, the February Supplemental Survey Report indicates that roughly three in four manufacturers and half of service sector firms experienced at least some supply delays or disruptions in early 2021. Within the service sector, delays were particularly common among retail and distribution firms. When firms were asked about the source or reason behind these delays, the most widely cited was that domestic suppliers had either shut down or had had limited supplies themselves. It was also common for firms to see trucking delays and for manufacturers to see foreign supplier shutdowns and delays at the ports.

The February surveys also asked about effects of the latest phase of the minimum wage hike across New Jersey and New York (outside New York City), which took effect January 1. For context, New Jersey’s minimum wage rose $1 to $12, upstate New York’s rose $0.70 to $12.50, and downstate New York’s rose $1 to $14, except in New York City where it was left unchanged at $15. Around 55 percent of manufacturing firms and 40 percent of service firms reported that the increase has had at least some effect on their employment and/or compensation decisions, with about 10 percent of all firms reporting a significant effect. Within the service sector, however, there was a good deal of variation: not surprisingly, businesses in the leisure and hospitality sector— including restaurants, bars, and hotels—indicated the most widespread effects by far, followed distantly by businesses in the transportation and warehousing sector. Compared to this time last year when a prior minimum wage hike took effect in both states, fewer manufacturers reported an impact but there was little change in the share of service firms affected.

The wage hike did not solely affect workers whose wages had to be increased to the new minimum. On average, the hike caused manufacturers to raise wages more than they otherwise would have for about 16 percent of their workforce, and service firms to raise them more than they would have for about 11 percent.


Jason Bram is a research officer in the Federal Reserve Bank of New York’s Research and Statistics Group.

Deitz_richardRichard Deitz is an assistant vice president in the Bank’s Research and Statistics Group.

How to cite this post:

Jason Bram and Richard Deitz, “February Regional Business Surveys Find Widespread Supply Disruptions,” Federal Reserve Bank of New York Liberty Street Economics, February 17, 2021, https://libertystreeteconomics.newyorkfed.org/2021/02/february-regional-...

Related Reading

Finally, Some Signs of Improvement in the Regional Economy

New York Fed Surveys: Business Activity in the Region Sees Historic Plunge in April

Businesses in the Tri-State Region Struggling to Weather the Coronavirus Outbreak


The views expressed in this post are those of the author and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author.

Bristol South Labour Party Passes Motion of Solidarity with Indian Farmers

Bristol South CLP held its monthly meeting last Thursday, and passed a number of motions. Due to the Coronavirus, these are now held over Zoom, like many meetings up and down the country generally. A number of motions were debated and passed during the meeting, one of which was solidarity with the Indian farmers. Explaining the issues was a guest speaker, Dal Singh, from the Sikh community. According to Mr Singh, the central issue is the poverty caused by the BJP’s government’s privatisation of the state purchasing apparatus for agricultural goods. The Indian government had a state organisation that bought up the farmer’s produce, giving them a fair price. But now Modi is handing this process over to private entrepreneurs, who are paying starvation prices for the produce purchased. Singh said that as a result, the farmers are going to be in debt for the rest of their lives. The farmers affected and involved in the protests aren’t all Sikhs, but Sikhs form a majority of those affected. When asked what the attitude of the Sikh community was to it, Mr Singh seemed to indicate that they were more or less resigned to it. He called it a ‘genocide’ several times, and said that Sikhs regarded it as part of the long history of their people’s suffering going back to the horrors of the partition of India and the British occupation of the Punjab. He also described how the police and armed forces were being used by the Modi government to brutalize protesters and muzzle the press, with the arrest and beating of journalists covering the protests. As well as explaining the situation, Mr Singh also gave details of charities to which people could donate to help the affected farmers, though I’m afraid I’ve forgotten what they were.

I had absolutely no problem supporting the motion. Socialists are internationalists, as the Style Council song reminds us, and we have to stand in solidarity with working people around the world. ‘Workingmen of all countries, unite!’ as Marx and Engels said in their little Manifesto. I am very pleased that others agreed, and that the motion was passed.

Someone at the meeting commented that the Indian farmers were yet more victims of Neoliberalism. Absolutely. Around the world, working people are being pushed further and further into poverty as wages are slashed, hours increased, rights at work taken away, industries privatised and deregulated. The book Falling Off the Edge, which is a critical examination of this process, the poverty it’s causing, and the violence and terrorism that it engenders as a backlash, describes very clearly how its affecting the average Indian worker. And this poverty is the creation of Modi’s BJP Hindufascist government.

Hindufascist? Yes, absolutely. The BJP is a nationalist organisation, which actively persecutes non-Hindus like Christians, Sikhs and Muslims. One of Modi’s fellow BJP politicos was the governor of a province, which took absolutely no action when pogroms broke out against the Muslim population back in the 1990s. The BJP also have connections to the RSSS, a Hindu nationalist paramilitary outfit modelled on Mussolini’s Fascists. Not only has the BJP followed the standard Neoliberal policies of privatisation, deregulation and low wages, they’ve also been trying to abolish the affirmative action programmes intended to improve the conditions of the Dalits, the former ‘Untouchables’. Debt slavery was one of the forms of exploitation and servitude that afflicted many Indians, and Mr Singh’s comment that Modi’s privatisation will mean that farmers will not be able to get out of debt certainly makes you wonder if the scumbag is actively trying to bring it back.

It’s not only non-Hindus and the lower castes Modi is persecuting. The BJP, or at least parts of it, have a real, bitter hatred of Gandhi and his influence on Hinduism, because he preached tolerance and the inclusion of the Muslims rather than turning India into a Hindu state. The party also actively persecutes liberal Indian journalists and writers. Tony Greenstein, the long term campaigner against Zionism, racism and Fascism, has also rightly criticised Labour party leader Keir Starmer for supporting Modi. Yes, I know – India is now a global powerhouse. Yes, it’s a vital trade partner with this country. But the country’s prosperity should not come through the exploitation of its working people. Just like ours shouldn’t. But this seems lost on Starmer and the rest of the Blairites.

I am very glad, however, that my local Labour party has made this gesture of support for the Indian farmers, and hope this will give them strength in their struggle with a Fascistic, exploitative government.

Does Starmer’s ‘Pro-Business’ Mean ‘Anti-Workers?’

Published by Anonymous (not verified) on Thu, 11/02/2021 - 9:59pm in

Okay, I might be jumping the gun here, but I came across a video from the awesome Novara Media. I haven’t watched it, so this might be just me showing my prejudice. I just looked at the video’s title, which seemed to say everything. I can’t remember it precisely, but it was something on the lines of Starmer declaring that Labour would be ‘pro-business’.

This should set alarm bells ringing, because when a politico talks about being ‘pro-business’ he always, but always means the same thing: further tax cuts for the rich, deregulation and privatisation on the grounds that this will set the forces of private enterprise free and provide financial incentives for the rich to invest and expand their businesses and economy. For ordinary people it means low wages, more welfare cuts and the destruction of workers’ rights in order to get people off state support and making the labour market fluid, so employers can hire and fire at will without going through all the pesky business of negotiations with trade unions and industrial tribunals.

That’s what ‘pro-business’ meant under the Tories, and that’s what it was also under New Labour. With the addition that under New Labour, big business was further rewarded through the appointment of leading management to positions in government as part of the corporate capture of the state.

I might be wrong here, but if Starmer has made noises about being ‘pro-business’, it means he’s going back to the Blairite policies of awarding government posts to big business in exchange for corporate donations, and making the rich even richer at the expense of Britain’s working people.

Starmer’s Flag-Waving and Fixation on Celebrities Shows Hollowness of New Labour

I know this is another piece of old news, which Mike has commented on already but there are a few more things to say about it. A few days ago Mike posted up a piece about an idea from the Labour party about winning more members and votes. This new, exciting strategy for gaining the support of the British public was for Starmer to be seen more with the Union Jack. Yep, Starmer’s leadership, which is already determined to copy Tory economic policies, also wants to follow them and be seen as the party of flag-waving – some critics called it’ flag-shagging’ patriotism.

The Tories have been draping themselves in the flag and waving it at every opportunity just about since they emerged in the late 17th and 18th centuries. Their aggressive projection of themselves as the party of British patriotism became particularly acute under Maggie in the 1980s. Thatcher was deeply inspired by Winston Churchill’s heroic vision of the British people and their history, and so was constantly invoking his memory and legacy. Thus we had Torygraph headlines quoting the Leaderene, screaming ‘Don’t Call Them Booj-wah, Call Them British’, while the spirit of the Battle of Britain was invoked in the Tory 1987 election broadcast. This featured Spitfires zooming about the sky, while an excited voice intoned ‘We were born free. It’s our fundamental right’. It’s a misquotation of the great Swiss philosopher Jean-Jacques Rousseau. His book, The Social Contract, one of the first works advocating democracy and a major influence on the French Revolution, begins: ‘Man was born free, but everywhere he is in chains’. You can see why Thatcher didn’t want to include the second part of that sentence. Commenting on it on Radio 4’s News Quiz, the late Alan Coren drily called it ‘the Royal Conservative Airforce’ and made the point that all the servicemen, whose memory and sacrifice Thatcher was exploiting all came back and voted Labour. Now Starmer apparently wants to wave the flag as well in order to win over Tory voters.

The new strategy was proposed by a focus group, which were used by Blair’s New Labour to devise party policy, or put the rubber stamp on those the Dear Leader had already decided upon, when the grinning butcher of Iraq was in office. It was part of the Blairite’s centralisation of decision-making, their managerialism and their pointed determination to ignore the demands and recommendations of grassroots members. Now it seems we’re back to the same tired old attitudes and strategies.

Mike and the peeps on Twitter saw past this threadbare strategy immediately. They quoted Dr. Johnson, who said that ‘patriotism is the last refuge of the scoundrel’. But I remember Jon Downes, the frontman for the Devon band Jon Downes and the Amphibians from Outer Space making another observation: ‘a patriot is a man with nothing left to say’. This was in a song entitled ‘Land of Dopes and Tories’. It was a commented on Major’s Conservative party, which carried on the flag-waving while handing over vast tracts of Britain’s historic landscape to English Heritage, which promptly erected fences around them to keep the British public out, as at Stonehenge. Major’s Tories were ideologically bankrupt. It was Thatcherism with the nasty bits cut off and a marked paucity of ideas. His big notion for galvanising the British public behind his party was a ‘Cones Hotline’. This was a number you could call if you thought their were too many cones clogging up the roads. It’s hardly a grand vision, and was rightly ridiculed by Spitting Image and the rest of the media.

And Starmer’s leadership really doesn’t have any ideas. His policy so far has been to agree with the Tories, then criticise them in retrospect. He seems determined to copy their disastrous economic and social policies of privatisation, including that of the NHS, the destruction of the welfare state, and low wages, just like Blair. The only difference is that Blair and Starmer claimed that they would be able to carry out these Tory policies better than the Tories themselves.

Starmer really, really doesn’t have anything left to say. A fact also confirmed by another recommendation. This was that he should be seen with celebrities. Well, that was another feature of Blairite New Labour, which was also very relaxed, as Peter Mandelson put it, about people getting rich. Hence Blair’s desire to be seen with such celebrity businessmen as Beardie Branson and Alan Sugar. But Mike and the other Twitter peeps pointed out that, thanks to his attack on Corbyn, Starmer might find recruiting other celebs to endorse him difficult. Robert Webb apparently has torn up his Labour membership card.

I realise Angela Rayner also returned to make a speech claiming that Labour was still behind the policies laid out in last year’s election manifesto – nationalised public services and welfare state, strong unions, workers’ rights and so on, but Mike asked the pertinent question of whether you could trust her or him on this issue. And you can’t. They’ve shown repeatedly that they’re not prepared to honour the manifesto.

The flag-waving and celebrity-seeking isn’t going to win over traditional Labour voters, who will see past it. Some may even be repelled by it because of the way the Tories appropriated British patriotism and mixed it with aggressive imperialist nostalgia and xenophobia. And it isn’t going to win over Tories. There is a hard rump of extreme right-wing Tory types, who regard the Labour party as the enemies of Britain. The anti-immigrant YouTube channel, We Got A Problem, refers to asylum seekers and illegal immigrants as ‘imported Labour voters’. There are people who honestly believe the allegation that Blair deliberately encouraged mass non-White immigration to this country to destroy the largely White society at the heart of Tory visions of Britain. The same type of people, who believe that the Jews are also encouraging non-White immigration to destroy the White race, the Kalergi plan and the Great Replacement. These people aren’t going to be won over by Starmer waving the flag. They are, of course, probably not going to vote Labour anyway because of Labour’s avowed commitment of multiculturalism. Blair also waved the flag during ‘Cool Britannia’, but it also included Blacks and Asians along with more traditionally British images to project the view of a new, multicultural Britain. That was two decades ago, and while it impressed many, the super-patriotic right still regard it as some kind of betrayal of British identity through its inclusion of non-White culture. Starmer waving the flag won’t get them to change their political allegiances.

In fact, there is a sense that traditional Labour was and has always been the true party of patriotism. George Bernard Shaw pointed it out years ago in his book The Intelligent Woman’s Guide to Capitalism, Socialism, Fascism and Sovietism. He stated that socialists wanted money to be spent here, in Britain, developing its industries and aiding its working people. The Tories, on the other hand, allowed the idle rich to spend their wealth abroad, while undercutting domestic industry with products from the colonies, whose people could be exploited more cheaply. Just like under slavery.

Mike made the point that you could connect British patriotism to a desire for a fairer society where people were supported by a proper welfare state. You could also begin by presenting the Labour party as the party of true British patriotism by saying that it was opposed to the rich hiding their immense wealth away in offshore tax havens, as well as benefiting from tax cuts while the rest of the population have to shoulder the tax burden. Oh yes, and industries that, instead of being owned by the British people, were owned by multinational corporations which simply took their profits without reinvesting in them.

But that would be seen as horribly xenophobic and attacking the free trade and foreign investment the Neoliberals are trying to promote, and so would probably be denounced as horribly racist. Even as the Tories continue to demonise immigrants and asylum seekers.

Black and White Differences in the Labor Market Recovery from COVID-19

Published by Anonymous (not verified) on Wed, 10/02/2021 - 3:00am in

David Dam, Meghana Gaur, Fatih Karahan, Laura Pilossoph, and Will Schirmer


The ongoing COVID-19 pandemic and the various measures put in place to contain it caused a rapid deterioration in labor market conditions for many workers and plunged the nation into recession. The unemployment rate increased dramatically during the COVID recession, rising from 3.5 percent in February to 14.8 percent in April, accompanied by an almost three percentage point decline in labor force participation. While the subsequent labor market recovery in the aggregate has exceeded even some of the most optimistic scenarios put forth soon after this dramatic rise, the recovery has been markedly weaker for the Black population. In this post, we document several striking differences in labor market outcomes by race and use Current Population Survey (CPS) data to better understand them.

Recessions tend to have disproportionately adverse effects on the labor market outcomes of Black workers. For example, in the years leading up to the Great Recession of 2007-09, the unemployment gap between Black and white workers reached as low as 3.4 percentage points, but it peaked at 8.5 percentage points during the aftermath of the Great Recession. The COVID recession has been no outlier in this regard, as shown in the chart below. The unemployment rate rose significantly more for the Black population, pushing the Black-white unemployment gap from 3 percentage points in February to 5.4 percentage points in August. Similarly, while the long expansion following the Great Recession had narrowed the long-standing Black-white participation gap, the pandemic erased these gains. Participation fell more severely for the Black population at the onset of the pandemic and has since recovered more slowly.


The evolution of the unemployment and labor force participation rates is shaped by flows between employment, unemployment, and being “not in” the labor force. For example, the unemployment rate declines if more people find jobs or fewer workers are displaced. Given that a large share of the unemployed are currently classified as temporarily unemployed (namely, those who have been given a date to return to work or who expect to return to work within six months) and that temporarily and permanently unemployed workers tend to find jobs or drop out of the labor force at very different rates, we distinguish between these two groups in our analysis. We use data from the CPS on individuals age 16 and older, and we compute the rate at which Black and white workers transition between employment (E), temporary unemployment (TU), permanent unemployment (PU), and not in labor force (N).

The rate at which workers find jobs out of unemployment has declined for both Blacks and whites this year, with the level of job-finding significantly lower for Blacks until a recent reversal. Breaking down the job-finding rate into transitions from permanent and temporary unemployment clarifies the disparate experiences of Black and white workers (see chart below). Blacks have lower job-finding rates from both permanent and temporary unemployment but have seen a more gradual decline in job‑finding as the recession has progressed. In recent months, the white job-finding rates from both permanent and temporary unemployment have dropped below the corresponding Black job-finding rates. If the current job-finding rates were to continue, all else the same, we would expect a somewhat faster decline in the Black unemployment rate.

LSE_2021_COVID-recession_karahan_ch2-v2_Artboard 2

Black and white job loss rates have exhibited a similar pattern. For both Black and white workers, job loss resulting in temporary unemployment peaked in June before declining in recent months, as shown in the chart below. Job loss resulting in permanent unemployment similarly peaked in June. However, for employment loss resulting in both permanent and temporary unemployment, Black workers have experienced significantly higher rates than whites. The Black-white gap in job loss resulting in temporary unemployment widened at the peak of job loss resulting in temporary unemployment, while the gap in job loss resulting in permanent unemployment has been relatively stable throughout the recession.

LSE_2021_COVID-recession_karahan_ch3-v2_Artboard 2

An important feature of the U.S. labor market is that flows out of employment are not always to unemployment; a nonnegligible share of workers drop out of labor force each month. These flows are important determinants of the unemployment and labor force participation rates. Indeed, labor force exit from employment varies significantly for Black and white workers. Until June, the two groups exhibited similar trends as labor force exit from employment dropped. However, in recent months the labor force exit rate for white workers has reverted to pre-pandemic levels, while the labor force exit rate for Black workers has increased dramatically (see chart below). The divergence in Black and white labor force exit rates from employment in recent months suggests that labor force participation for the Black population may remain significantly depressed in the coming months while white labor force participation may recover more quickly, with this combination erasing the gains achieved during the long expansion following the Great Recession.

LSE_2021_COVID-recession_karahan_ch4-v2_Artboard 2

The COVID recession, like most post-war recessions, has had disproportionate effects on the Black population. We trace the rising and persistent Black-white unemployment and labor force participation gaps to the underlying flows between labor market states. For Black workers, a lower job-finding rate and a higher separation rate into unemployment have contributed to the larger increase and subsequent slower recovery of the unemployment rate. While the job-finding and job-loss rates for Black and white workers have converged recently, resulting in a narrowing of the Black-white unemployment gap, the transition rate from employment into nonparticipation for Black workers remains elevated. This relatively high rate of labor force exit for Black workers may lead to a persistently elevated Black-white labor force participation gap and an uneven labor market recovery.

Chart data


David Dam is a senior research analyst in the Federal Reserve Bank of New York’s Research and Statistics Group.


Meghana Gaur is a senior research analyst in the Research and Statistics Group.


Fatih Karahan is a senior economist in the Research and Statistics Group


Laura Pilossoph is an economist in the Research and Statistics Group.


Will Schirmer is a senior research analyst in the Research and Statistics Group.

How to cite this post:

David Dam, Meghana Gaur, Fatih Karahan, Laura Pilossoph, and Will Schirmer, “Black and White Differences in the Labor Market Recovery from COVID-19,” Federal Reserve Bank of New York Liberty Street Economics, February 9, 2021, https://libertystreeteconomics.newyorkfed.org/2021/02/black-and-white-di....

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The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.

Understanding the Racial and Income Gap in Commuting for Work Following COVID-19

Published by Anonymous (not verified) on Wed, 10/02/2021 - 3:00am in

Ruchi Avtar, Rajashri Chakrabarti, and Maxim Pinkovskiy

LSE_2021_Understanding the Racial and Income Gap in Commuting for Work Following COVID-19

The introduction of numerous social distancing policies across the United States, combined with voluntary pullbacks in activity as responses to the COVID-19 outbreak, resulted in differences emerging in the types of work that were done from home and those that were not. Workers at businesses more likely to require in-person work—for example, some, but not all, workers in healthcare, retail, agriculture and construction—continued to come in on a regular basis. In contrast, workers in many other businesses, such as IT and finance, were generally better able to switch to working from home rather than commuting daily to work. In this post, we aim to understand whether following the onset of the pandemic there was a wedge in the incidence of commuting for work across income and race. And how did this difference, if any, change as the economy slowly recovered? We take advantage of a unique data source, SafeGraph cell phone data, to identify workers who continued to commute to work in low income versus higher income and majority-minority (MM) versus other counties.

Data and Background

In line with an earlier Liberty Street Economics post, we use data on race and income composition at the county level from the 2014-18 waves of the American Community Survey to differentiate between low-income and higher income counties, and MM and other counties. We define low-income counties as those that fall in the lowest quartile of the population weighted distribution of median household income. We define MM counties as those in which at least half the population is Hispanic and/or non-Hispanic Black.

In order to capture differences in commuting to work behavior across counties, we make use of SafeGraph’s aggregated and anonymized cell phone mobility data. This data determines the typical nighttime location of each mobile device, which is referred to as the device’s “home.” The subsequent mobility that shows time spent away from home is then used to determine the full-time and part-time work behavior. For example, a device that leaves home at 8 a.m. on weekdays, goes to the same location each weekday and returns home at 6 p.m. is typically coded as belonging to a full-time worker, while a device that is seen to spend 3-4 hours during the workday at a location other than the home location is coded as belonging to a part-time worker. We look at variations in these measures across the different counties using data through January 9, 2021.

In the time leading up to the pandemic, we see that SafeGraph captures people going to work both full time and part time. This would include all types of work, both work that needed to be done in the workplace and work that could be done at home if needed. However, when COVID-19 struck, most U.S. states issued shelter-in-place and stay-at-home orders. Almost all occupations and industries that had the ability to work from home, switched immediately to such work-from-home postures. Industries that required in-person engagement, or had a very low work-from-home ability continued to have workers coming in for full-time or part-time work. SafeGraph’s cell phone data enables us to identify the work-from-home and commuting-to-work patterns across counties both before and after the onset of the pandemic. We leverage the differences of these patterns across low-income versus higher income and MM versus other counties in the analysis below.

Differences in Commuting to Work by Income

We now turn to look at the differences in commuting to work as captured by number of devices at work full time and part time, by income. In the graph below, we see no difference in number of devices at work full time between low-income and higher income counties in the pre-COVID period, and a drastic decline in all devices going to work starting in the week of March 15, 2020. However, we see that this decline is much higher for higher income counties, implying that more workers in such counties were able to shift to working from home. In contrast, lower income counties saw a perceptibly smaller decline in the devices at work, suggesting that these counties had a higher incidence of workers who could not transition to working from home and continued to travel to work.

Since our data draws on mobile data, workers voluntarily or involuntarily leaving jobs and staying at home are reflected in the dip in number of devices at home full time. It is noteworthy that high-wage employment declined considerably less than low-wage employment. So if this was the major factor driving the patterns we see below, we would see an opposite pattern. This suggests that the differences in the commuting-to-work patterns between low income and high income counties are more likely to be contributed by differences in abilities to transition to working from home.

Toward the end of April, as states started to reopen (beginning from April 24), we see a recovery in full-time workers who commuted to work, which is faster in the low-income counties. This suggests that workers residing in low-income counties are more dependent on occupations that required commuting to work. From late June onward, we see a slightly downward trend for both low income and higher income counties, before a sharp uptick near the holiday season. While we do not have definitive evidence, a potential explanation for this is that increased demand for retail and services during the holidays required more employees to be physically at work. Under this hypothesis, the larger uptick experienced in the higher income counties could have reflected a greater increase in demand in those counties. The subsequent drop corresponds to the return from the increased pace of activity during the holidays.


Looking at part-time work behavior, we see a similar trend. The differences between low-income counties and other counties only show up as the pandemic hits, with workers in higher income counties more likely to be able to work from home. It is interesting to note that there is a slight upward trend post recovery in both types of counties in part-time work, while the full-time work showed a slight downward trend from July onward. This may suggest a shift from commuting for full-time work to commuting for part-time jobs for some workers in the second half of the year. Relative to the full-time chart, the uptick and subsequent decline around the holiday season in part-time work are not as pronounced.


Difference in Commuting to Work by Race

Turning to the racial differences as shown below, we see less of an overall difference between both MM and other counties across the course of the pandemic. Even before the plunge in full-time work, we see a small gap between MM and other counties in the beginning of March, which is possibly attributable to the fact a lot of firms in majority-nonminority counties started transitioning into work from home even before the shutdowns were announced. MM counties are less likely to have seen such transitioning, and as the chart depicts, also show a smaller decline in the devices at work full-time. Both MM and other counties showed a similar pattern of recovery, although the return to work is higher for MM counties suggesting that jobs held by workers in these counties are more likely to be occupations that required commuting to work and less amenable to remote work. Similar to the chart earlier based on income, we see a sharp uptick and subsequent drop around the holidays that is starker for majority-nonminority counties. The holiday uptick temporarily reduces the gap between the two types of counties, with the gap reopening subsequently.


In comparison to the full-time results presented above, the part-time work shows much smaller differences between MM and other counties throughout the course of the pandemic.



This post aimed to provide a high-frequency analysis of differences in full-time and part-time work commuting behavior. We found important differences in these behaviors across counties that differ by income and demographics. Although all counties experienced a sharp decline in mobility consistent with a sharp decline in commuting to work at the onset of the pandemic, followed by a subsequent partial recovery, low-income and, to a smaller extent, MM counties experienced greater commuting for work in the pandemic period. The difference in commuting between these areas and the rest of the country temporarily narrowed during peak demand times of the year, such as the holiday season. Our results are consistent with low-income and Black and Hispanic-majority communities being less able to substitute work at home for work away from home, contributing to their very high levels of vulnerability to COVID 19.

Chart data

Ruchi Avtar is a senior research analyst in the Federal Reserve Bank of New York’s Research and Statistics Group.

Chakrabarti_rajashriRajashri Chakrabarti is a senior economist in the Bank’s Research and Statistics Group.

Pinkovskiy_maximMaxim Pinkovskiy is a senior economist in the Bank’s Research and Statistics Group.

How to cite this post:

Ruchi Avtar, Rajashri Chakrabarti, and Maxim Pinkovskiy, “Understanding the Racial and Income Gap in Commuting for Work Following COVID-19,” Federal Reserve Bank of New York Liberty Street Economics, February 9, 2021, https://libertystreeteconomics.newyorkfed.org/2021/02/understanding-the-....

Related Reading

Economic Inequality Research Series

Economic Inequality and Equitable Growth


The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.

Disaster Predicted for Labour in May Elections – Will They Blame the Left?

As if this question needs to be asked. Mike this morning put up a piece commenting on recent forecasts that Labour under Starmer’s leadership will actually lose seats in the local elections in May. Only 4 per cent of Tory voters are predicted to switch to Labour. This will be a disaster for Labour, and should be a catastrophe for Starmer as it shows that his policy of turning Labour into the alternative Tory party isn’t working. Starmer isn’t winning support for Labour because he has violated the first rule of an opposition party: this is to oppose. Instead, Starmer has offered support and ‘cautious criticism’. This has often come after Tory policies have been proven to be failures, so that Johnson ridiculed him from the Dispatch Box as ‘Captain Hindsight’. And his lack of any decisive alternative alternative vision to the wretched Tories also allowed Johnson to sneer at him as ‘General Indecision’.

Worse, Labour is losing its core voters thanks to Starmer’s own war on the left. He has scrapped Corbyn’s manifesto policies, which were genuinely popular despite the media’s and political establishment’s successful vilification of Corbyn himself. Starmer has carried on purging the left under the pretext of cracking down on anti-Semitism. He has alienated Labour’s traditional supporters in the Black and Asian communities by his half-hearted gestures of support for Black Lives Matter and his refusal to punish the real racists in the Labour Party, who bullied Diane Abbott and other Black MPs and activists. And it’s fairly obvious why. These racists are all from the right, the section of the party that supports him. He also has not punished the various conspirators who deliberately plotted to sabotage the party’s election campaign in 2017 and 2019. Again, these are all right-wingers, so safe from punishment for their misdeeds. And to make his and his faction’s grip on the party secure, David Evans has suspended members and constituency parties that have dared to criticise the Dear Leader and passed fresh regulations stipulating that electoral candidates must meet with his approval as suitable prospective MPs. Which means, as Mike’s pointed out, that no-one from the left will be accepted, even if they have the full backing of their local parties.

If the predicted electoral disaster does occur – and I’ve no doubt it will – then it should rightly be the end of Starmer and the Blairites. The Blairite tactic of triangulation – finding out what will appeal to Tory voters, donors and the media, and then doing it – isn’t working. The public has seen through the New Labour tactic of copying Tory policies while claiming that, once in power, Labour will be better at them. Tory voters are going to stick with the Tories, because why should they accept a pale imitation under Starmer? Johnson’s defeat should be an open goal. This week the number of people, who’ve died from the Coronavirus hit 100,000. This truly horrendous death toll is a direct result of Johnson’s selfish, inept and half-hearted policies, the corruption that has led him to award vital medical contracts to firms owned by his friends, which then catastrophically can’t fulfil them. And instead of the great, radiant victory for British independence, business and entrepreneurialism, Brexit is rapidly showing itself to be another disaster. It is hitting British business hard with extra bureaucracy and tariffs for trading with the EU. It is expected to decimate our already severely stricken manufacturing industry.

The fact that Starmer is losing to Johnson should mean that Starmer should vacate the Labour leadership following the May elections, assuming that Labour does as poorly as predicted. By I predict that won’t happen. That would leave the leadership open to someone from the real Labour centre. Someone determined to support Corbyn’s policies of a nationalised National Health Service, publicly owned utilities, a proper, functioning welfare state that the gives the support the poor, the unemployed, the long-term sick and disabled they really need, protects working people with proper employment rights and strong trade unions, and ends the wretched pay freezes and exploitative gig economy. These were all genuinely popular. But they frighten big business and the Tory and New Labour media. Hence the determination to bring down Labour by any means possible. Hence the smears of Corbyn and his supporters as Communists, Trotskyites and Jew-haters. And they’ll do it again.

The Blairites have shown through their electoral sabotage and their attempted coups that they mean to hang on to power whatever the cost. Even if it destroys the party. Thus I predict that if Labour does fail miserably in May’s elections, Starmer will stay. He and the media will claim that this was because the stain of anti-Semitism is still hanging over the party. More purges of the Corbynite left will be demanded and follow. And it won’t do a bit of good. The party will remain unpopular, possibly even more so.

But Starmer won’t care how unpopular it is, so long as he and the Blair have a secure grip on it. And at some point he’ll even be rewarded with a peerage just like the turncoats and plotters.

For further information, see: Labour isn’t winning back Tory voters by trying to be Tory. What will Starmer try next? | Vox Political (voxpoliticalonline.com)