Employers should never be allowed to dictate the minimum wage

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Here’s an interesting development: Ed Miliband announced today that a Labour government would link the minimum wage to average earnings, after the Low Pay Commission proved itself woefully inadequate for the job.

Employers’ organisation the Confederation of British Industry (CBI) immediately leapt up to scream that politicians should not set wages, completely missing the point that, under Miliband’s plan, politicians wouldn’t.

CBI chief policy director Katja Hall gave verbal evidence of her inability to understand a simple issue when she told Radio 4’s Today programme: “The system we have at the moment has been really successful and that system involves the setting of the minimum wage by an independent Low Pay Commission… They have done a really good job and we think it’s much better the job is left to them rather than given to politicians.”

… Really?

The Miliband plan would not give the job to politicians. It would make the minimum wage a percentage of the average wage.

Mr Miliband said it was a “basic right” that hard work should be rewarded with fair pay.

He also took time to talk to Today, saying: “This gets at what is a terrible scandal in this country… that we still have five million people in paid work, unable to make ends meet.”

Perhaps the reason the CBI doesn’t like this idea is the fact that the average wage includes its own members’ massively over-inflated salaries. Under the proposed scheme, every increase in their own paycheques would require a similar raise for the lowest-paid workers in the country.

There is no reasonable argument against that, but it is what they are arguing against, nonetheless.

Perhaps politicians’ next target should be the CBI itself.

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How can we force politicians to do what they say?

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One down: Patrick Mercer resigned because the weight of corruption allegations against him was too great. But what are the other 649 MPs hiding?

We need to talk about the culture of deception that is festering at the heart of the British political classes.

Every party is guilty of this to some degree – all of them. They have all made promises to the electorate and then, once in positions of power, they have done exactly whatever else they wanted.

On Tuesday, Patrick Mercer resigned as an MP rather than face suspension from the House of Commons over allegations that, rather than carrying out the will of his constituents, he had corruptly set up an All-Party Parliamentary Group to life Fiji’s suspension from the Commonwealth, after having been offered money to do so by undercover reporters.

His resignation came 11 months after he resigned from the Parliamentary Conservative Party, and this decision was made in the knowledge that a TV documentary was about to present the allegations to the country. Would he have taken these actions otherwise? It’s highly doubtful. Nobody resigns when they think they got away with it.

Nobody seems to be mentioning the fact that this allegedly corrupt MP managed to keep his seat in the Commons for 11 months after the allegations came out – that’s nearly one-fifth of a Parliamentary term when he was still drawing his taxpayer-funded salary. Is that reasonable?

Mercer is, of course, just one individual case. In the lifetime of this Parliament we have seen entire Parliamentary political parties turn on their electors in betrayal. It is to be hoped that nobody has forgotten Labour’s betrayal of the unemployed when it failed to oppose the Jobseekers (Back to Work Schemes) Act that retrospectively imposed penalties on people who refuse to take part in state-sponsored ‘slave labour’ schemes.

Labour’s front bench claimed it had negotiated important concessions, including an inquiry into the effectiveness of mandatory work activity – and when is that due to report? Around 30 Labour MPs are still entitled to hold their heads high, because they rebelled and voted against the legislation in any case.

Far worse is the behaviour of the Conservative Party, who promised that the National Health Service would be safe under a Tory government and then set in motion the wholesale upheaval that we have witnessed over the past few years, with funding squandered on reorganisation and privatisation of services that is intended to lead to the abolition of the publicly-funded health service in a few years’ time.

Pensions are going the same way; the Workplace Pension discourages employers from participation, meaning they are trying to push their workforces into taking up private schemes instead. Meanwhile the state pension has been ‘simplified’ in a way that means people have to work longer before receiving it. The intention is, eventually, to privatise pension provision altogether and ensure only those on higher pay can afford them.

And the Tories are busy abolishing the rest of the welfare state as well. The harsh regime of sanctions and slave-labour schemes run by the Department for Work and Pensions is intended to soften up the workforce – and potential workforce – for the introduction of privately-run schemes, into which you will be expected to pay to insure against the possibility of becoming jobless – the policies would provide your income during any such period (as long as you didn’t stay out of work for very long) instead of the government.

The problem with such proposals is that, if they are run along the same lines as certain health insurance schemes, they would be scams – as the conditions would be rigged to ensure that the companies running them never had to pay out. This is what we have learned from the fact that the criminal Unum Corporation has been advising the DWP on its policies.

And then, worst of all, we have the so-called Liberal Democrats, who promised to eradicate student fees in the run-up to the 2010 election and betrayed that pledge two months before the poll took place, in a backroom power-sharing deal with the Conservative Party.

The same organisation has gone on to support the Conservatives every step of the way to dismantling the welfare state and reducing the vast majority of the UK’s workforce to conditions we have not seen since the early 20th century at the latest.

Many of us have been dismayed at this apparent betrayal by an organisation that we all hoped would have put a brake on the more excessive Tory policies, but VP Facebook commenter John Elwyn Kimber has cast illumination on the reasons we were mistaken.

“19th-century Whiggery, ‘Orange’ or ‘Manchester’ Liberalism, call it what you like, was about the unfettered power of new money – hence identical to modern ‘Toryism’,” he wrote.

“Just as Eisenhower was the last civilised Republican president, traditional patrician Downton-Abbey-style Conservatism of the more socially-responsible sort finally departed British politics after the MacMillan government. Even the sitting-on-the-fence Heathites, the ‘Tory Wets’, were gleefully kicked out of the cabinet by Margaret Thatcher after the ‘Falklands election’ in 1983, with the exception of Whitelaw who was retained [though sidelined] as a sort of sop to the traditionalists.

“Since when, the political consensus has been for whiggery-pokery all the way up till now. So while the understanding of ‘Liberal’ by Lib Dem grass roots voters is a mid-twentieth-century one, all about tolerance and socially-progressive policies, it seems obvious that Clegg’s cabinet are only too happy to be rabid whigs nuzzled up to another lot of rabid whigs – the only difference is in the mood-music provided for the grass roots in each case.”

The message is that we were all deceived – again.

The problem is that there is almost nothing we can do about it that doesn’t take a lot of time – a commodity that is in short supply.

Historically, the UK does not carry a box on the ballot paper marked “None of the above”. This means there is no direct democratic way of refusing all the candidates for election to a particular constituency and demand better. Nor is there ever likely to be, because our corrupt politicians know that would be equivalent to turkeys voting for Christmas.

Alternatively, we can form new political parties and try to beat the corrupt old parties at their own game. The problem with this is one of traction; it takes new parties many years to gain enough recognition to become a serious force. UKIP is only beginning to gain such recognition now, after more than 20 years – and this is as a protest party against membership of the European Union. If that party’s supporters took a look at its other policies, they’d desert en masse.

Another possibility is similarly time-consuming: You actually join one of the main political parties and try to effect change from within. The problem here is that you would be fighting established members every step of the way. It has been done effectively in the past, though – look at the way Labour was transformed into New Labour by the influence of a few neoliberal infiltrators, and consider the damage that has done to the party’s reputation and effectiveness.

The worst option is the most popular: You do nothing. This is, of course, the wide and easy path to disaster – but so many people are feeling disaffected because of the barriers that the corrupt political classes have put up against democracy, that they honestly can’t see the point of voting.

This of course means our government will be elected by an ever-diminishing group of electors, and makes it all the more possible for our ever-more-elite group of corrupt politicians to argue for those who don’t vote to lose the right to take part in elections. You will be disenfranchised.

Then you really will have no power to change anything at all.

Is that what you want?

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Our entertainers give us facts while our politicians have nothing to say

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Speaking their mind: Rufus Hound and Kate Nash had the courage to voice their opinions about the NHS and education – but they don’t have enough influence to change government policy. What will it take to make that happen?

This could have been designed to follow my rant about politics being about perception: In response to a news report that NHS doctors’ surgeries have been found to be filthy, radio listeners were treated to a lengthy monologue on why the media are running down the health service to make it easier for the government to sell it out from under us.

This lesson was delivered, not by an eminent politician, but by the comedian Rufus Hound. He was speaking on Radio 4’s The News Quiz.

And he said: “Does this not scare anyone, though?

“There are a lot of stories coming out at the moment about all the ways that the NHS is failing. At the same time there is privatisation by stealth. Now, if you’re a conspiracy theorist, maybe those two things just resolve themselves. If you’re a normal person, you’ve got to become a conspiracy theorist, haven’t you?

“The number of contracts being put out to private companies has gone up through the roof. All of the pre-election promises of no privatisation of the NHS, and that the budget would be ring-fenced – it was ring-fenced but not in real terms, so it is a cut in the truest sense…

“The NHS is being sold out from under us, and yet all the stories that come out from the powerful oligarchs who run the media are either about how it’s failing and how much better off we’d be if it was privatised, or why privatisation can’t happen quickly enough for any one of a number of other reasons.

“The reason those surgeries are filthy is, there’s not enough investment to keep them clean and tidy. The argument isn’t ‘privatise’; the argument is ‘invest more’.

“In the Olympics, there was that big moment where they had ‘NHS’ and everybody stood up and applauded, and I think it was Norman Lamont who said, ‘The nearest thing the British people have to a religion is the NHS’ – and we’re just letting it go.

“People should be on the streets.

“And I realise that, for this to make the edit, it should have a punchline.”

He knew, you see. He knew that this great speech was in danger of being lost if it wasn’t sufficiently entertaining.

Thank goodness producer Sam Michell kept it in, but it should not be up to an entertainer like Rufus to tell us these things. Such matters are the province of politicians. The simple fact that our representatives aren’t “on the streets” with us about this says everything we need to know about them.

Here’s another example: Education. I was in the unfortunate position of having to sit through Andrew Neil’s This Week on Thursday evening. I’m not a fan of that show, but it meant I was lucky enough to see former pop starlet Kate Nash, there to talk about her film (The Powder Room) and modern manners, slip in a quick observation about education that undermines everything ever said by Michael ‘rote-learning-is-the-only-way’ Gove.

She said, “There are certain things we need to be addressing, that are being completely missed – and that’s to do with education being inspiring and interesting for young people, rather than just about purely passing tests and pressure.”

She hit the nail on the head without even looking; Gove couldn’t find it with a map and a guide.

Again, she is an entertainer; she should not be having to say these things, but we should be glad that she did. The moment was glossed over entirely in the BBC News website report of the debate. Perhaps we should be happy that they didn’t edit the comment out altogether (it starts around two minutes, 15 seconds into the video clip).

We are left with politicians who refuse to do their duty and defend our services from those who would destroy them, and celebrities who are left to pick up the slack – if, with a biased media, they can find a way to keep their words from ending up on the cutting-room floor.

What hope can we possibly have that anyone with any clout will defend our beloved, but beleaguered, taxpayer-funded services?

Worst of all is the fact that it falls to people like myself to even write about these matters, and we all have lives of our own. Rufus and Kate made their speeches on Thursday; it is now Sunday, and I could not have written this article any sooner.

We’ve all heard that a lie can travel around the world several times before the truth has got its boots on. This is because the liars own the media, and those of us who are interested in the truth have small voices, are easily ignored, or can be dismissed because “it’s only entertainment”.

At least high-profile figures have a better chance of being heard. There will be those telling Rufus and Kate and who knows who else to get back in their box and shut up, but I won’t be one of them. I think we should be “on the streets” with them.

I’m wondering if any more members of ‘The Great And The Good’ will have the bottle to speak their mind.

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Protesters clash with police on march against austerity

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[Picture: Huffington Post]

Violence marred the Million Mask March in London – with the clashes apparently started by British police.

But you should not expect to see the spectacle reported on the news as the BBC and other right-wing media seem to have put their heads in the (proverbial) sand and, once again, failed to report anything that might indicate the British people are not happy with their government.

Thousands of people took to the streets, many wearing what is now seen as the symbol of protest against austerity cuts imposed by the rich – the Guy Fawkes mask made famous by the graphic novel ‘V for Vendetta’.

[Picture: Million Mask March London Facebook page]

Comedian Russell Brand, who has called for non-violent revolution, was spotted at the London protest.

Inevitably, someone had to spoil it and it seems the police were the aggressors.

According to the Huffington Post, an eyewitness said: “They [the police] started shouting move back, move back, but we had nowhere to go. The police started pushing us, screaming ‘move back, move back’. There was a fire on the right hand side of the monument [the Victoria Memorial near Buckingham Palace] and people started throwing things.”

The HuffPost reported: “The event is part of a Million Mask March, with similar protests being held in cities around the world. A Facebook page promoting the protest called for Anonymous, WikiLeaks, the Pirate Party, and Occupy to “defend humanity”.

“‘Remember who your enemies are: Billionaires who own banks and corporations who corrupt politicians who enslave the people in injustice,’ it read.”

If any Vox Political readers were at the march – or at any of the many others around the world – please tell us about it. Let us know what the mainstream news reporters aren’t telling us.

The hellish legacy of Thatcher

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Martin Rowson’s Guardian cartoon of April 13 satirises the spectacle of Baroness Thatcher’s funeral, calling it as he sees it: A primitive tribal ritual.

“This is Hell, nor am I out of it.” – Mephistopheles, Doctor Faustus.

As I write these words, the funeral of Margaret Thatcher is taking place at St Paul’s Cathedral in London.

Unemployment stands at 2.56 million (7.9 per cent of the workforce).

The banks are not lending money.

More small firms are going out of business every day.

The economy is stagnant and the outlook for growth is bleak, according to the International Monetary Fund.

The rich elite prey on the poor – Britain’s highest-earners are billions better-off than in 2010, while wages for the lowest-earners are increased by so little that most of them are on benefit and sliding into debt (0.8 per cent rise in the year to February).

The cost of living has risen by around three per cent.

900,000 people have been out of work for more than a year.

The number of unemployed people aged 16-24 is up to 979,000 (21.6 per cent of all those in that age group).

Politicians lie to us, in order to win our support by deceit.

Assessment for disability benefits is on a model devised by an insurance company to avoid paying money to those who need it most.

Health services are being privatised, to make money for corporate shareholders rather than heal the sick.

Government policies have reinstated the ‘Poll Tax’ principle that everybody must pay taxation, no matter how poor they are.

Government policies mean child poverty will rise by 100,000 this year. It will not achieve the target of ending child poverty in the UK by 2020.

Government policies are ensuring that many thousands of people will soon be homeless, while social housing is being sold into the private sector.

And Legal Aid is being cut back, to ensure that the only people with access to justice are those who can pay for it.

This is Thatcher’s Britain, nor are we out of it.

She died; we went to hell.

Why we’ll never have full employment – even though we need it

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austerity, banker, Beveridge, construction, consumer, contract, disability, disabled, disposable, economy, employment, full, income, Mike Sivier, mikesivier, multiplier effect, National Health Service, NHS, politician, poor, rich, sick, society, state, unemployment, Vox Political, welfare

Today Vox Political is offering a guest blog, for your edification and education. Graeme Beard wrote the following in response to ‘Millionaire’s government will make paupers of us all’. It’s far too long for me to put in the ‘Comment’ section of that article but far too interesting to let it go unpublished. Therefore I am reproducing it as an article in its own right. If anyone else has anything they want to get off their chests, I’ll happily consider other submissions as well.

Over to Graeme:

OK – well let’s get something rather nasty out of the way first. Austerity for the masses is an extremely efficient and effective macro-economic device. Absolutely counter-productive and even destructive to a consumer based economy it is the best way by far, (apart from slavery) on a macro-economic level to shift money from the pockets of the poor to the pockets of the rich.

Make no mistake, the austerity measures being introduced are moving £Billions ‘upward’. None will come ‘downward’. The national debt will be paid off by the poor and the poorer. It will not, and is not being paid off by the rich and affluent. They are untouched and seem to be untouchable. In fact the rich and affluent are seeing their personal wealth increase at an incredible rate.

The following is a global perspective but it applies just as strongly to the UK. The rich are enjoying a boom time and for this particular conspiracy theorist I am of the opinion that it is a deliberate measure. They want it all.

Secondly, let’s state the ‘bleedin obvious’: We live in a consumer society. Like it or not – want to change it or not – it’s what we got, playmates. To that end we have to play the ‘consumer game’ cards in hand. There is no choice. It is a given.

A consumer society (be it local, national or global) depends almost entirely on consumers having a disposable income. That is, money above and beyond that which they need purely to survive. If they do not have a disposable income over and above that needed to satisfy their basic needs such as food, clothing, utility bills, shelter etc then, in many ways, they become what economists call ‘non-consumers’.

For instance, they can’t spend money on what some would consider to be luxury goods like new or used motor cars, or books, or education, or to replace a cooker or fridge that’s on its way out. They make-do, make-shift and mend. Their ‘extra’ spending on consumer goods (the very goods we need to be purchased by consumers in order for the economy not only to grow, but survive) is dead in the water. If they haven’t got it they can’t spend it. The more that have no – or diminishing – disposable income, the more the economy will contract.

It’s happening now and there’s more to come. Far more. People thrown out of work, because of slowing demand or even a demand crash in consumer goods they make or services they provide, or those that become disabled and draw state benefits, are a prime example. They do little more than survive and become non-consumers above subsistence in double quick time. Ergo they are lost to the consumer society. It is a downward spiral and the Multiplier Effect takes over in negative form. See below.

Now this is not rocket science and can plainly be seen repeatedly with only a cursory glance at macro-economic history. Don’t believe me? Look for yourself! To introduce and pursue measures of austerity for the mass of the population in an attempt to ‘heal’ a consumer economy is like trying to catch hold of the world by the arse and pull it uphill.

These austerity measures are either being pursued in ignorance (which I find very hard to believe) or as a deliberate measure to engorge the rich and affluent at the expense of the poor.

For 35 years, post-Second World War, the UK had full employment. Bankrupted by the conflict and in massive national debt, the population was fully employed; the NHS was introduced; the welfare system proposed by ‘The Report of the Inter-Departmental Committee on Social Insurance and Allied Services.’ (The Beveridge Report) was adopted and applied with vigour. People had jobs with disposable income; they consumed (and in quantity – demand for consumer goods went through the roof); tax incomes to the government went up enormously; numbers of people on benefits were minuscule (they had jobs); the construction industry went off ‘bang!’; etc etc. I’m sure you get the drift. John Maynard Keynes’ ‘Multiplier Effect’ in motion and this time in positive mode.

Bit of a problem though! Full employment came with a terrible cost. It gave those in employment power – mainly the power to withdraw their labour and expertise.

And that’s the reason we will never have full employment in the UK ever again.

It gives people at the bottom power and those at the top really don’t want that. They need the sticks of unemployment and poverty for them to sustain their lifestyles.   People on the breadline and/or in debt or under threat keep their heads down, live smaller and smaller, and consume less and less in the hope it will eventually, by some kind of magic, get better. It rarely does.

In concert with that, and at the very same time, those who feel insecure and threatened but are in decently-paid jobs and who could shut down their spending too and save more and more for their (maybe) ‘rainy day’ are also removed, if only in part, from the consumer society that we all depend on.

So, actually impoverishing consumers – the very consumers who could – and, history shows, would – drag this economy out of the faecal mess that the cretinous politicians and bankers put us in in the first place, means they are unable to do so – because they are struggling with ‘austerity measures’ and seeing their disposable income decrease alarmingly.

Full employment, as dangerous to those ‘above’ as it may be, is good for a consumer society. Taxes are paid alongside National Insurance contributions; welfare payments reduce exponentially because people have jobs; demand for consumer goods increases and, via the ‘multiplier effect’, more jobs come online and more money is made available to spend. It is an upward spiral.

If you want to heal a consumer economy, don’t introduce more disease. Austerity for the masses is exactly that – a disease – to a consumer society. Don’t believe me though – gawd forbid! Look around you, because it’s happening now, and happening just about everywhere apart from the more affluent areas of the UK.

And that, in part, is why our towns as a working example are full of charity shops, pawnbrokers, and people wanting to buy your surplus gold for two and a half buttons so they can get rich and you can eat or heat next week.

As an addendum: http://www.ted.com/talks/richard_wilkinson.html?utm_source=newsletter_weekly_2011-10-25&utm_campaign=newsletter_weekly&utm_medium=email

Living under the threat of welfare ‘reform’

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If I could force Conservative and Liberal Democrat MPs, politicians, and supporters to read what follows, I would. It was sent to me today in response to my article, Bedroom tax will put people on streets while homes go empty, and details exactly what the author – a fellow blogger going by the monicker Clarebelz – expects will happen to her after the bedroom tax and other so-called welfare ‘reforms’ come into effect, starting in April 2013.

This is not fiction.

It is what this person expects to become her reality.

While you are reading it, please ask yourself: Do you want to live in a society that treats its most vulnerable like this?

“I went shopping today to my local town with my carers. I only go a couple of times a year to get necessary things that are not available either online or at my local village. I had to pay for these things with a credit card.

“As the deadline for paying bedroom tax and council tax draws near I, along with others commenting here and elsewhere, are feeling ever more hopeless about the whole situation. I just wanted to go to bed when I came back, unable to face another day worrying about how the hell I’m going to manage when I’m hardly managing now.

“I pay back out of my DLA and ESA to the local authority £3,000 per year (it’s a myth that people with no assets pay nothing for care). My care plan has just been reduced by 25 per cent, the LA justifying that by saying, “We don’t fund that activity/job anymore”. Initially they wanted to cut it by 75 per cent, but I took advice and fought it. The activities/jobs that they won’t fund I still need, which will cost in the region of another £1,500 per year. When I next have a financial review, if they don’t reduce my contribution to take account of this, and I’m forced to pay rent and council tax, this will wipe out my food budget.

“And, if I lose out under Universal Credit, then I may as well just end it all because I am not going to be forced to go cap in hand to family or friends to survive; I couldn’t stand the humiliation after all I’ve been through both personally and physically, and such a situation makes you very vulnerable to abuse. A friend of mine had her DLA taken away and because of her mortgage costs she was left with £12 per week to live on (she daren’t apply for a flat anywhere as most are in horrible blocks that are drug/thief ridden). Her so-called friends offered help willingly at first, then they started bullying her and taking advantage of her. She got her DLA back, but she is still in a terrible psychological state because of the way people treated her. No thank you: I’m not going to go through that!

“Prior to complete destitution, I intend to demonstrate/beg on my street. I’m going to make large boards with my message on it, and get my carers to wheel me onto the main road to sit all day if necessary, so that the whole community can see what the government are doing to the vulnerable. I refuse to be hidden away like I was many times before when I used to go days or even a week at a time without heat, light or food. And whole winters without heat. No, this time I’m going to make sure that everyone knows. I’ll have nothing left to lose.

“This disgusting, despicable government has stolen the last two years from me through fear. I’ve just started painting again and doing other creative things that I used to, but it’s really hard to feel inspired when you’ve had the life sucked out of you, especially when your illness leaves you with little life left to do anything.

“I say that I’ll end it all, but really, we need to stick around so that the public can see our predicament. It’s just like others, it all feels so hopeless.

“By the way, my care plan assessor inquired about the bedroom tax for me from someone she knows at the DWP. The assessor said that the bedroom tax hits those of working age, which I knew anyway, but – interestingly – she said that the DWP person told her that the government has informed them that, once they have dealt with housing benefit in relation to people of working age, they will then move on to apply the same sanctions to pensioners, because many larger homes belong to pensioners who won’t move.

“So yet again the government are liars. Two years ago this autumn, Grant Shapps stated in a TV interview that the new rules would not apply to existing tenants; obviously not true. You can’t believe a word they say.

“Well, sorry to go on and on, but it’s been one of those days when I feel like, “What’s the point?” My home doesn’t even feel like my home any more; I have recurrent nightmares of my clothes and all my belongings strewn in the street, and my coming home to find a family have just moved in.

“It’s a horrible feeling.”