Do YOU feel as prosperous as you were before the crisis?

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[Image: David Symonds for The Guardian, in February this year.]

Britain has returned to prosperity, with the economy finally nudging beyond its pre-crisis peak, according to official figures.

Well, that’s a relief, isn’t it? Next time you’re in the supermarket looking for bargains or mark-downs because you can’t afford the kind of groceries you had in 2008, you can at least console yourself that we’re all doing better than we were back then.

The hundreds of thousands of poor souls who have to scrape by on handouts from food banks will, no doubt, be bolstered by the knowledge that Britain is back on its feet.

And the relatives of those who did not survive Iain Duncan Smith’s brutal purge of benefit claimants can be comforted by the thought that they did not die in vain.

Right?

NO! Of course not! Gross domestic product might be up 3.1 per cent on last year but it’s got nothing to do with most of the population! In real terms, you’re £1,600 per year worse-off!

The Conservatives who have been running the economy since 2010 have re-balanced it, just as they said they would – but they lied about the way it would be re-balanced and as a result the money is going to the people who least deserve it; the super-rich and the bankers who caused the crash in the first place.

You can be sure that the mainstream media won’t be telling you that, though.

Even some of the figures they are prepare to use are enough to cast doubt on the whole process. The UK economy is forecast to be the fastest-growing among the G7 developed nations according to the IMF (as reported by the BBC) – but our export growth since 2010 puts us below all but one of the other G7 nations, according to Ed Balls in The Guardian.

And it is exports that should be fuelling the economy, according to JML chairman John Mills in the Huffington Post. He reckons the government needs to invest in manufacturing and achieve competitive exchange rates in order to improve our export ability.

“Since most international trade is in goods and not in services, once the proportion of the economy devoted to producing internationally tradable goods drops below about 15 per cent, it becomes more and more difficult to combine a reasonable rate of growth and full employment with a sustainable balance of payments position,” he writes.

“In the UK, the proportion of GDP coming from manufacturing is now barely above 10 per cent. Hardly surprising then that we have not had a foreign trade surplus balance since 1982 – over thirty years ago – while our share of world trade which was 10.7 per cent in 1950 had fallen by 2012 to no more than 2.6 per cent.”

All of this seems to be good business sense. It also runs contrary to successive governments’ economic policies for the past 35 years, ever since the neoliberal government of Margaret Thatcher took over in 1979.

As this blog has explained, Thatcher and her buddies Nicholas Ridley and Keith Joseph were determined to undermine the confidence then enjoyed by the people who actually worked for a living, because it was harming the ability of the idle rich – shareholders, bosses… bankers – to increase their own undeserved profits; improvements in working-class living standards were holding back their greed.

In order to hammer the workers back into the Stone Age, they deliberately destroyed the UK’s manufacturing and exporting capability and blamed it on the unions.

That is why we have had a foreign trade deficit since 1982. That is why our share of world trade is less than one-third of what it was in 1950 (under a Labour government, notice). That is why unemployment has rocketed, even though the true level goes unrecognised as governments have rigged the figures to suit themselves.

(The current wheeze has the government failing to count as unemployed anyone on Universal Credit, anyone on Workfare/Mandatory Work Activity and anyone who whose benefit has been sanctioned – among many other groups – for example.)

You may wish to argue that the economy is fine – after all, that’s what everybody is saying, including the Office for National Statistics.

Not according to Mr Mills: “The current improvement in our economic performance, based on buttressing consumer confidence by boosting asset values fuelled by yet more borrowing, is all to unlikely to last.”

(He means the housing bubble created by George Osborne’s ‘Help to Buy’ scheme will burst soon, and then the economy will be right up the creek because the whole edifice is based on more borrowing at a time when Osborne has been claiming he is paying down the deficit.)

Ed Balls has got the right idea – at least, on the face of it. In his Guardian article he states: “We are not going to deliver a balanced, investment-led recovery that benefits all working people with the same old Tory economics,” and he’s right.

“Hoping tax cuts at the very top will trickle down, a race to the bottom on wages, Treasury opposition to a proper industrial strategy, and flirting with exit from the European Union cannot be the right prescription for Britain.” Right again – although our contract with Europe must be renegotiated and the Transatlantic Trade and Investment Partnership agreement would be a disaster for the UK if we signed it.

But none of that affects you, does it? It’s all too far away, controlled by people we’ve never met. That’s why Balls focuses on what a Labour government would do for ordinary people: “expanding free childcare, introducing a lower 10p starting rate of tax, raising the minimum wage and ending the exploitative use of zero-hours contracts. We need to create more good jobs and ensure young people have the skills they need to succeed.”

And how do the people respond to these workmanlike proposals?

“You intend to continue the Tories’ destructive ‘austerity’ policies.”

“The economy isn’t fixed but you broke it.”

There was one comment suggesting that all the main parties are the same now, which – it has been suggested – was what Lynton Crosby told David Cameron to spread if he wanted to win the next election.

Very few of the comments under the Guardian piece have anything to do with what Balls actually wrote; they harp on about New Labour’s record (erroneously), they conflate Labour’s vow not to increase borrowing with an imaginary plan to continue Tory austerity policies… in fact they do all they can to discredit him.

Not because his information is wrong but because they have heard rumours about him that have put them off.

It’s as if people don’t want their situation to improve.

Until we can address that problem – which is one of perception – we’ll keep going around in circles while the exploiters laugh.

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Why D-Day and the victory over Nazism must be linked to the welfare state and the NHS

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2, Beveridge, D-Day, disease, Edward Heath, employment, equip, five giants, housing, idleness, ignorance, II, Jacob Rees-Mogg, jobs, Keith Joseph, Margaret Thatcher, National Health Service, Nazi, neoliberalism, NHS, Nicholas Ridley, nourish, Otto von Bismarck, report, Sir William, Social Insurance and Allied Services, squalor, The Labour Forum, train, want, welfare state, Winston Churchill, World War

A veteran’s view: Click on the image to read Harry Leslie Smith’s Guardian article.

I was disturbed, this morning, to read that parts of the media were trying to silence people who had created images and sites linking D-Day and its 70th anniversary with the National Health Service – its creation and current problems.

The comment was made by an organisation calling itself The Labour Forum and ran: “D-Day and the NHS have nothing to do with each other. Whatsoever. Any photos trying to link today’s political issues with D-Day are offensive and will be deleted immediately.”

This seems extremely strange to me because, from what I have read, the creation of the NHS and a ‘welfare state’ (the term did not actually enter the Oxford English Dictionary until 1955) were exactly what the soldiers at Normandy were fighting so steadfastly to ensure.

When Britain went to war in September 1939, it was woefully ill-prepared for the task. Our professional army was not a match for Germany’s well-nourished, well-trained and well-equipped war machine (Germany’s welfare state had been ushered in by Otto von Bismarck during the 19th century). Not only that, but the crop of recruits brought in by conscription was a step in the wrong direction, being untrained, in poor health and malnourished after 20 years of Conservative rule.

Yet these were the men who were going to win the war, supported by equally poorly-served women, youngsters, and pensioners on the Home Front.

We know the first few years of the war went badly for Britain. We were forced out of Europe and attempts to create a front in Africa found themselves on uneven ground.

Then came the Beveridge report, Social Insurance and Allied Services. It was written by the Liberal Sir William Beveridge, who had been tasked with carrying out the widest social survey yet undertaken – covering schemes of social insurance and – as stated – allied services.

He went far beyond this remit, instead calling for an end to poverty, disease and unemployment by fighting what he called the five giants on the road to reconstruction – Want, Disease, Ignorance, Squalor and Idleness – and claiming to supply the means to do so.

His plan dealt mainly with Want and Disease, proposing a system of social insurance against the interruption and destruction of earning power and a National Health Service for the prevention and cure of disease and disability, and for rehabilitation.

Winston Churchill (who was of course Prime Minister at the time) privately made clear his concern at the “dangerous optimism” created by the report’s proposals. In public, although he could not attend a debate on a Labour motion that – significantly – called for the early implementation of the plan as a test of Parliament’s sincerity, he sent a message saying it was “an essential part of any post-war scheme of national betterment”. But he refused to “tie the hands of future Parliaments” by starting any legislation to bring the plan into effect.

I quote now from The Welfare State, by Pauline Gregg (George S Harrap & Co, 1967): “To refuse its immediate acceptance, to refuse to make public any plan for its immediate post-War implementation, even if not for its implementation then and there, was to the people betrayal… You cannot refuse to welcome a saviour without being suspected of not wishing to be saved – or, at best, of being so blind that you do not know salvation when you see it!”

The social and economic questions that most troubled the electorate in 1944 were housing and jobs – as they should be today. But the wartime coalition broke over arguments about housing, and Churchill’s Conservatives refused to commit to full employment, as demanded by Beveridge. Instead it proposed that “a high and stable level of employment” should be one of its primary responsibilities, with no legislation planned on the grounds that employment could not be created by government alone.

This is why Labour won the 1945 election with such a landslide. The people expected the Tories to betray them when peace was restored, and they could not back Beveridge’s Liberals because they were afraid of half-measures.

And the people – both those who fought as soldiers and those who supported them at home – were determined that their war would mean something; that it would create a better future. They wanted Beveridge’s plan for social security and they absolutely demanded a national health service.

That is why they were prepared to fight so hard, and even die for their cause. Not the continuation of a British government that couldn’t care less about them until it needed cannon fodder – but the creation of a new system, in which every citizen had value and could rely on the support of their fellows.

It was a system that enjoyed success – albeit to varying degrees – right up to the early 1970s when Edward Health tried to replace it with neoliberalism. He failed but he paved the way for Margaret Thatcher, Nicholas Ridley and Keith Joseph to turn Britain into the mess it is today.

And here we sit, on the 70th anniversary of D-Day, facing exactly the same issues as our parents and grandparents did back then.

Do we want a National health service? Or are we content to allow a gang of money-worshipping bandits to turn it into a profit machine for their own enrichment while our health returns to pre-1939 conditions? Rickets and tuberculosis have already returned. What next?

Do we want a housing boom for the rich, while the workers and the poor lose the benefits that allowed them to keep a roof over their heads (pay having dropped below the level at which people can cover all their bills without help from the state)?

Do we want a job market that deliberately ensures a large amount of unemployment, in order to keep wages down and ensure that the lower echelons don’t forget that their place is to serve aristocrats like Jacob Rees-Mogg?

Or shall we remember the sacrifices made by our forefathers on D-Day and throughout the war, and demand better?

The choice is yours – and no ‘Labour Forum’ has the right to stop you discussing it.

(The latest Vox Political book collection – Health Warning: Government! – is now available. It is a cracking read and fantastic value for money. Only available via the Internet, it may be purchased here in print and eBook form, along with the previous VP release, Strong Words and Hard Times.)

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Labour has lost its ideals – now the Party of the People needs to find them again

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Conservative, Daily Mail, economy, Ed Balls, Ed Miliband, Facebook, fairness, focus group, Guardian, hard work, housing, ideal, insecurity, Keith Joseph, Labour, living standard, Margaret Thatcher, Mike Sivier, mikesivier, neoliberal, Nicholas Ridley, opportunity, Owen Jones, people, policies, policy, politics, poverty, promise, reactionary, right-wing, social, special adviser, Tory Lite, Tristram Hunt, UKIP, union, value, Vox Political, work, yvette cooper

Isn’t it desperately disappointing that, after the British people showed Ed Miliband in no uncertain terms that Labour is still going in the wrong direction, his first response was an appeal for us all to rally in support of his values, whatever they are.

No, Ed, no. It’s time the Labour Party gave up trying to force us to accept something we don’t want. It’s time you gave up being Tory Lite. It’s time – for crying out loud, this isn’t rocket science! – it’s time you gave us all a chance to believe you share our values!

Can you do that – you and your pseudo-socialist friends Ed Balls, and Yvette Cooper, and Tristram Hunt (and the rest)? If not, you need to make way for people who can – before it is too late.

The people’s response to Labour’s offer was written very clearly across ballot papers all over the country on Thursday: Too similar to the Conservatives! We won’t have either! In fact, we’ll support a party that is even more madly right-wing than either of you, just to show that we don’t want you.

And that’s just the response of those who voted. Those who didn’t were making an even plainer message: Why bother, when there isn’t a cigarette paper that can slide between any of you?

Look at this response from Terry Cook on the Vox Political Facebook page: “It [Labour] needs to prove it doesn’t share UKIP or Tory values; simple.”

Now look at the graph at the top of this article, showing that the public has lost faith in Labour every time it has supported reactionary, right-wing, Conservative, neoliberal policies – while announcements of policies that actually help people have restored support to the party.

The people don’t believe Labour should be having anything to do with anti-Socialist schemes. Here’s Alan Weir: “Labour lost my vote. They are no longer a socialist party and do not represent my views.”

He’s one of millions of potential Labour supporters, Ed! Why are you slinging them out wholesale in order to gain a handful of Daily Mail readers (a forlorn hope anyway)?

The evidence suggests increasing numbers of people are rebelling against Conservative control – but the lack of any credible alternative from Labour has left them with nowhere to go. In that sense, Labour may be said to be driving people away from democracy and into slavery in a complete U-turn – away from the principles on which the party was created.

Martin Williams: “He is totally ignoring the electorate because these people only do democracy when it suits them!”

Ros Jesson: “Some Labour people… on BBC’s coverage… their frustration with the leadership was almost palpable.”

Ed’s message highlighted his values of “hard work, fairness and opportunity”. What did people think of that?

“I am sick to death of ‘hard work’ being touted as a value, as if those desperate to find a job were of no value,” commented Pauline Vernon. “The Labour Party is still so determined to occupy the middle ground they are becoming indistinguishable from the Conservatives.”

Paula Wilcock: “Half hearted promises, no believable policies. I want to hear a realistic plan of what they are going to do to get voters like me… to go back to the Labour Party.”

Baz Poulton (who supplied the image), had this to say: “Why not actually stand up for Labour values and ideals instead of just subscribing to the same as the Tories? Labour’s support has been dwindling as they have become more and more right wing… Standing more in line with Labour’s original values sees an obvious climb in support, while their desperation to be more Tory than the Tories is seeing their support suffer.

“It’s obvious why that happens, and what they need to do to get the support of their traditional voters who are turning elsewhere now. Labour’s manifesto reads like the Tory one.”

The worst of it is that, looking at the historical context, this is what Labour wanted – from the New Labour days onward. Look at Owen Jones’ recent Guardian article: “For years the political elite has pursued policies that have left large swaths of Britain gripped by insecurity: five million people trapped on social housing waiting lists; middle-income skilled jobs stripped from the economy; the longest fall in living standards since the Victorian era, in a country where most people in poverty are also in work.”

That was exactly what Margaret Thatcher, Keith Joseph and Nicholas Ridley planned back in the 1970s, as revealed in The Impact of Thatcherism on Health and Well-Being in Britain: “Their view was that defeat of the movement that had forced Heath’s U-turn would require, not simply the disengagement of the state from industry, but the substantial destruction of Britain’s remaining industrial base. The full employment that had been sustained across most of the post-war period was seen, together with the broader security offered by the welfare state, to be at the root of an unprecedented self-confidence among working-class communities.

“Very large-scale unemployment would end the ‘cycle of rising expectations,’ [and] permit the historic defeat of the trade union movement.”

This is exactly what Owen Jones wrote about on Monday. Nicholas Ridley put these ideas forward in (for example) the Final Report of the Policy Group on the Nationalised Industries in – prepare to be shocked – 1977.

And Labour – in office – did nothing about it. This is part of the reason people don’t trust Labour now.

Let’s go back to Mr Jones: “For years Labour has pursued a strategy of professionalising its politicians: its upper ranks are dominated by privileged technocrats who have spent most of their lives in the Westminster bubble.

“The weakening of trade unions and local government has purged working-class voices from a party founded as the political wing of organised labour: just four per cent of all MPs come from a manual background.

“Special advisers are parachuted into constituencies they have never heard of.

“Policies are decided by focus groups; a language is spoken that is alien to the average punter, full of buzzwords and jargon such as ‘predistribution’ and ‘hard-working people better off’.”

All of these things are wrong. There’s no point in even going into the reasons; any right-thinking person will agree that an MP who has never had a proper job (working as a researcher for another MP doesn’t count) is infinitely less use than one who has had to work for a living.

What is Labour’s reaction to UKIP’s Euro win? “The likes of Ed Balls want to respond to the high tide of Farageism with a firmer immigration-bashing message.” In other words, following UKIP’s right-wing lead.

Owen is correct to say: “This is political suicide”. In fact, for Ed Balls, it should be a sacking offence. He’s got no business coming out with it and has embarrassed Labour and its supporters by doing so.

He is also right to say that Labour must be more strident about its policies. Not only that, these policies must address the problems that have been created by neoliberal Conservatism and reverse the trends. That doesn’t mean using the same tools, as New Labour tried – because when the electorate gets tired of Labour again, the Tories would be able to change everything back and hammer the poor like never before.

No – it means removing those tools altogether. A fresh approach to clean out the rot – and the vigilance required to ensure it does not return.

If Ed Miliband really wants to win next year’s election – and this is by no means certain at the moment – then Labour needs to rediscover the values of the British people.

And that means paying attention when we say what those values are.

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Inflation drop doesn’t mean wages will rise

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‘For the privileged few’: If you’re earning the average wage of £26,500 per year, or less, then nothing George Osborne says will be relevant to you.

Why are the mainstream media so keen to make you think falling inflation means your wages will rise?

There is absolutely no indication that this will happen.

If you are lucky, and the drop in inflation (to 1.7 per cent) affects things that make a difference to the pound in your pocket, like fuel prices, groceries and utility bills, then their prices are now outstripping your ability to pay for them at a slightly slower rate. Big deal.

The reports all say that private sector wages are on the way up – but this includes the salaries of fatcat company bosses along with the lowest-paid office cleaners.

FTSE-100 bosses all received more pay by January 8 than average workers earn in a year. Their average annual pay rise is 14 per cent. Bankers get 35 per cent. These are all included in the national private sector average of 1.7 per cent, which means you get a lot less than the figures suggest.

Occasional Chancellor George Osborne said: “These latest inflation numbers are welcome news for families.” Why? Because they aren’t sinking into debt quite as fast as they were last month? They’re great news for the fatcats mentioned above, along with MPs, who are in line to get an inflation-busting 11 per cent rise; but as far as families are concerned, rest assured he’s lying again.

“Lower inflation and rising job numbers show our long-term plan is working, and bringing greater economic security,” he had the cheek to add. Employment has risen, although we should probably discount a large proportion of the self-employed statistics as these are most likely people who’ve been encouraged to claim tax credits rather than unemployment benefits and will be hit with a huge overpayment bill once HMRC finds out (as discussed in many previous articles).

The problem is, Britain’s economic performance has not improved in line with the number of extra jobs. If we have more people in work now than ever before in this nation’s history, then the economy should be going gangbusters – surging ahead, meaning higher pay for everybody and a much bigger tax take for the government, solving its debt reduction problem and ensuring it can pay for our public services – right?

We all know that isn’t happening. It isn’t happening because the large employment figures are based on a mixture of lies and low wages. The economy can’t surge forward because ordinary people aren’t being paid enough – and ordinary working people are the ones who fuel national economies; from necessity they spend a far higher percentage of their earnings than the fatcats and it is the circulation of this money that generates profit, and tax revenues.

Osborne compounded his lies by adding: “There is still much more we need to do to build the resilient economy I spoke of at the Budget.” He has no intention of doing any such thing. He never had.

Conservative economic policy is twofold, it seems: Create widescale unemployment in order to depress wages for those who do the actual work and boost profits for bosses and shareholders; and cut the national tax take to ensure that they can tell us the UK cannot afford a welfare state, opening the door for privatised medicine and private health and income insurance firms.

This is why, as has been discussed very recently, leaders of the Margaret Thatcher era including Nicholas Ridley and Keith Joseph determined that the defeat of the workers would require “the substantial destruction of Britain’s remaining industrial base” (according to ‘The Impact of Thatcherism on Health and Well-Being in Britain’). It is, therefore, impossible for George Osborne to seek to build any “resilient economy” that will improve your lot, unless you are a company boss, banker, or shareholder.

The plan to starve the public sector, as has been repeated many times on this blog, has been named ‘Starving the Beast’ and involves ensuring that the tax take cannot sustain public services by keeping working wages so low that hardly any tax comes in (the Tory Democrat determination to raise the threshold at which takes is paid plays right into this scheme) and cutting taxes for the extremely well-paid (and we have seen this take place, from 50 per cent to 45. Corporation tax has also been cut by 25 per cent).

This is why Ed Balls is right to say that average earnings are £1,600 per year less than in May 2010, why Labour is right to point out that the economy is still performing well below its height under Labour…

… and why the government and the mainstream media are lying to you yet again.

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